York Town Finale

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YORKTOWN TECHNOLOGIES

PRESENTED BY:SITI MURNI MAT KHAIRI

NUZUL FARISYA AHMAD FADZILNURIZWA BAIZURA IZUDDINYANG IDURA MOHD YUSOFAYU SUHASNEY SUHAINI

BM770/2P

MKT 750

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INTRODUCTION The company was founded by Alan Blake and Richard Crockett in Nov

2001.

Both of them are co-founded that provided web sites for university professors.

The idea for Glofish originated when Crockett was studying a category of fluorescent protein in 2001

After makes some research, they concluded that its not possible because the fish already purpose for some research

In 2003 Yorktown technologies had announced that it would be marketing Glofish genetically modified tropical zebra fish.

The announcement of Glofish make the Yorktown technologies became the most highly publicized new company in the United States.

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PROBLEM DEFINITIONObjective

To find a marketing & distribution strategy that would help the company reach its revenue goals

• Independent pet stores• Chain stores• Kiosks • Internet

Distribution Alternatives???

• Asia market (compete with Taiwan)

• GloFish market at Australia, Canada, & European Union were essentially closed

• Issues with California

International marketing strategy??

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Issues Barrier by anti-biotechnology activist that has been:

- Spreading misinformation concerning the safety of GloFish to be sell in California market

Relationship with its suppliers, distributor & retailers being affected- Retailer refused to display the fish under optimal lighting & aquarium conditions- Major retail chain stores limited the number of fish to be sell

Yorktown face a regulatory obstacles in possessing, selling & transporting the genetically modified fishes

PROBLEM DEFINITION

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MARKETING MIX - ProductFreshwater Ornamental Fish

GloFish Starfire Red

GloFish Electric Green

GloFish Sunburst Orange

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MARKETING MIX - PricingTraditional Zebra Fish

Glofish Red Zebra Danios

Wholesalers 5 cents

Retailers 25 cents (including shipping)

$1.50

Consumers 75 cents - $1 $5

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MARKETING MIX - Place

C United State Market

WalMart PetSmart

PETCO

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MARKETING MIX - Place

KIOSKINTERNET MARKETIN

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CONSIDERING SELLING GLOFISH THROUGH

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MARKETING MIX - Promotion

To educate public about GloFish

To create demand for GloFish

Advertise in 2 ornamental fish trade magazines

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INDUSTRY ANALYSISBlake, CEO & co-founder of Yorktown Tech. was concerned about what marketing strategy to recommend to the company BOD

Specialized in the ornamental fish industry

Expected revenues $4 million (2002-2003)

But actual revenues only $500,000 (2004), expenses were $620,000 & operating loss of more than $120,000

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INDUSTRY ANALYSISCalifornia -> very important market for Yorktown due to population exceeding 33mill

Yorktown face a regulatory obstacles in marketing its GloFish, the genetically modified fishes

California Department of Fish &

Game

US Food & Drug

Administration

(FDA)

Fish & Game Commission

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SWOT ANALYSIS

STRENGTH1) Manage to raise additional capital to fund business

operations2) Having more than three dozen different investors.3) The first company launching the commercially available

biotech animal in US.4) Yorktown’ suppliers &distributors have been regular

suppliers of tropical fish to the 3 major retail chains.5) Has grab the attention of the media & news of the

upcoming Glo Fish launch was on the front pages of many famous magazines.

6) It was given exclusive rights to lines of red green, yellow and orange fluorescent zebra fish which provided the company with an effective barrier to entry against potential competitors.

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WEAKNESSES1) Loss and expenses amount is more than the

revenue received in 2004.2) Not enough money to support a national

advertising campaign.3) Unable to sell the Glo Fish in California

which is an important market with high population.

4) High demand but limited supply by the retailers.

5) Some countries are still not convinced with the sale of Glo Fish.

SWOT ANALYSIS

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SWOT ANALYSISOPPORTUNITIES1) California population consist of 33million with consumers who are

willing to buy innovative product.2) GloFish is an attractive fishes to the fish pet lovers which in return can

increase sales and revenue of Yorktown3) Benefits of free publicity advertising due to issues arise in selling the

GloFish

THREATS4) Anti-biotechnology activist will not stop to disrupt the sale of GloFish5) Threat from advertising, publicity on media and news spreading

inaccurate information about GloFish6) Relationship with its distributor&retailers is being affected by the

inaccurate news and issues that arise7) Uncertainty to enter world markets such as the Asian Market,

Taiwan as a competitors which offer ornamental fish at price below GloFish.

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STRATEGY – BCG MATRIX Build greater MARKET

SHARE

High market growth with low cash inflow, Low market share

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STRATEGY – BCG MATRIXQuestion Marks???

YorkTown currently didn’t make so much revenue /cash inflow due to they don’t have a large market share.

The company revenues was only $500,000 in 2004 out of $4,000,000 sales projection

Obstacles came from California game & Fish Commission and US Food and Drugs Administration where they claim the fishes are UNSAFE

Not much retailers are willing to sell their product line do to the inaccurate information

There are opportunity to make more revenue/cash since GloFish potential market growth are relatively high

This is due to the product attractiveness factors – ability to glow in different colors in a completely dark room

Opportunity to use the fish in determining a contaminated waterways

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Stars

YorkTown needs to increase their MARKET SHARE proposition by increasing the amount of investment Prove their product are SAFE to the environment by

getting recognition from California Fish and Game Commission

They need to invest their time, money and effort required to produce a comprehensive report to satisfy the government

By doing so, they could expand their market to a larger capacity and improve consumers confidence especially in the US itself and other markets like California

STRATEGY – BCG MATRIX

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RECOMMENDATION & IMPLEMENTATION PLAN

Promotion

Communication program with distributor & retailers

Educate retailers on display tips & procedure to

keeping the fish

Develop logo & branding or

core message

Products

Variety the current

product line

Continue with its R&D

Distribution Channel

Market via chain stores (3

Major retail stores)

Encourage suppliers (5-D Tropical & Segrest) to promote GloFish to retailers

Internet : Direct

contact with customers

International Strategy

Market study to

cater Asian consumer needs of choice

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Promotion

Build strong relationship with its distributor, retailers through communication program

Educate retailers on tips to display the fish & keep the GloFish safe

Develop logo & branding or core message to convince retailers in marketing the GloFish & to develop confidence among consumers

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Products

Offer more than a single product to be successful in long term period with continuous study in product development

Example: GloFish with various color (purple, blue &etc.)

Each product come out with its own ‘trademark’. Example: Starfire


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Distribution Channel

Independent pet stores

Advantages Sales of pet stores are increasing at 7% annual rate Convenient place to purchase freshwater ornamental fish with

affordable price

Disadvantages No of pet stores is declining at 2% annual rate Not a strong channel to market GloFish for future long term period Total average sales by pet stores about $1.7mill - Sales is being

inflated, compete by very large chain pet stores


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Chain stores

• US market exceeds $700,000million (9% growth rate p/year)• Worldwide market is approaching $2billion p/year• In US, 3 major retail chain stores (Wal Mart, PetSmart & Petco)

Disadvantages Require high effort to make GloFish as the most attractive pets

than the other fishes available in the market May decrease the GloFish value due to ‘chain stores’ is an

intensive distribution method (only found in specialty store) instead of exclusive method.


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Chain stores

Advantages

The most popular place for buying the freshwater ornamental fish Allow GloFish to reach more customers and expand geographic borders

of market. The chosen place for first time customer & price-sensitive customers Marketing of Yorktown’s GloFish is gaining acceptance and was being

tested by Wal Mart & Petco. Strong relationship has been established by Yorktown’s suppliers (5-D

Tropical & Segrest) with the 3 major chain stores The best channel to market the GloFish with an expected higher return

on revenue

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Kiosks

• Generated sales about $10 billion annually• Seasonal sales occur s in Nov & Dec (40% from revenue)• Sells variety of products other then pets

Advantages Explosive growth on shopping mall kiosks

Disadvantages High cost of production may incur on branded tanks, supplies,

fish food and water condition High cost of leased space in shopping mall Selling price is expected to be higher


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Internet

• Has launched its own website www.glofish.com

Advantages Directly connect to customer Feedback & comments directly from customers can be used as a

measure for improvement product planning

Disadvantages Selling price is expected to be higher and competitive Delivery costs were several times higher than the price of the fish Have to think of the best delivery method to deliver the fish to

customer No real display of fish via the Internet


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International market

Advantages Fish can mainly be sold in Asia market as the most lucrative

foreign market The company could sterilize its fish to prevent illegal breeding in

areas where it could not otherwise control its intellectual property

Disadvantages The regulation and law is not clear for selling the fish. Asia countries also have their own ornamental fish. Facing big challenges of competitors (Taiwan) for Asia market Some countries prohibit of selling GloFish (Australia, Canada, &

European Union)


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KEY DECISION

The best marketing strategy:

Chain Stores

&

Internet

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TODAY’S SCENARIO OF YORKTOWN GLOFISH

Internet is being used as one of its marketing strategy

Via Internet, information is provide to customer on:GloFish® fluorescent fish ethical principlesGloFish® fluorescent fish science (data on research, articles, data

from independent experts)Fish Display tips & fish care tipsPurchasing is available at a nearest store.

Five stunningly beautiful colors - Starfire Red®, Electric Green®, Sunburst Orange®, and the all new Cosmic Blue™ and Galactic Purple™.

Fish are not available in California due to the State's regulations.

Also not available anywhere outside of the United States.

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THE END….

York Town Finale

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