, Greener Pastures The Launch of StaGreen by HydroCan - Case Study Example

Case study, "Greener Pastures" The Launch of StaGreen by HydroCan Having just started, Stone Age Marketing Consultants had small start-up and medium sized companies (seeking to expand their operations) for their clients. With this regard, they had an immense burden of considerably widening their client base by effectively broadening their marketing grip. With this regard they opted to arrange for a meeting with its newest client HydroCan so as to discuss and address their distinct market analysis outcomes.

Having been a new startup business within the American market, HydroCan constituted of one financial accountant and four agricultural engineers and direly needed marketing advice regarding StaGreen, their new product. This newly created product is said to have been unable to retain water for long once applied on several grass types hence cutting down on the desire for frequent advertising and extra water (MacKenzie 96). However, despite their anxiety to launch their product into the market, they direly needed adequate answers to a variety of questions e.g. the type of segment to set its target, the way to position this new product and the type of strategy for launching the product.

The marketing consultants effectively made an analysis of the communication options, prices, costs and markets. Their eventual task was to come up with a comprehensive strategy in order for the new firm to launch its newly designed product.After a comprehensive analysis of this product, it was deduced that the product was extremely beneficial and had the same appearance other fertilizers although it had a significant impact on most common grass types’ root systems. This product also had the ability to reduce the desire for manual watering processes up on most grass types by almost up to 40 percent thus rendering the product to be of considerably high demand (MacKenzie 96).

The key issue that needed to be addressed is the type of market to be initially targeted for this new product. There had been a variety of clashing views regarding the target market segment; this firm’s CEO intended to make its initial market segment target as garden market and consumer lawn while Mr. Humphreys preferred the target to be directed to garden market and commercial lawn. Because the two markets needed an extremely different launch strategy, choosing an appropriate segment had been the principal concern.

Since both leaders possessed entirely biased positions, the consultants were aware that they had a difficult task of presenting strong, viable reasons to support all their recommendations. In order to render the task manageable, they opted to split the analysis and research along the following perspectives: Karen Jonestone had to research about the commercial launch’s viability, Robert Sommerstone had to acquire all the appropriate financial information and Cari Clarkstone had to research about the consumer launch’s viability (MacKenzie 96).

Although findings reveal that the least amount of cash is often spent by consumers in making lawn maintenance, it is a considerably seasonal business having about 70 percent of the entire sales occurring within the 2nd and 3rd fiscal quarters. From Cari’s research, it is clear that in case HydroCan has to target such a segment, it would undergo a primary competition with fertilizers, yet this market has been regarded as a highly competitive one with the two distinctly top firms, Ortho Chemicals and Scotts Co.

managing to control about half of the entire consumer market. Both companies are centered within America and both of them possess extensive international operations, making it difficult for HydroCan to penetrate the market.On the other hand, comprehensive market research has revealed that about four over ten customers within this market do not possess concrete brand preferences; they entirely depend on in-store adverts together with sales staff for recommendations and information. Several consumers might not be capable of recalling fertilizers’ brand names or even manufacturer.

Other consumers prefer discount stores, which have effectively sprouted in order to attract such customers. These stores are said to control about 89 percent of the entire sales within the Canadian market making it hard to penetrate.Commercial markets primarily comprises of Canada’s 1800 golf courses although it also includes other commercial properties e.g. office complexes together with apartment buildings. Golf courses, however, appear to be the most rigid and lucrative market. As a result of frequent fertilizer levels used to maintain the green color of grass, most owners have been known to actively look for ways of cutting down on both fertilizer and water usage.

An average of almost 300000 dollars is often spent by course owners to maintain these golf courses all through the year, in which 42 percent represents water utilization and 24 percent represents fertilized purchases. Since the new product might considerably cut down on the amount of water spent, it would stand a chance within the market (MacKenzie 92).Since HydroCan was a small startup enterprise having limited financial resources, they are not capable of increasing their capacity of production for more than two years.

In case they intend to attain expansion capital in order to increase their entire capacity, they ought to have a profit margin early enough. A creative solution was determined by Cari targeting a number of selected sections of commercial and/or consumer markets. Before this group could commence the process of assessing the new product’s viability, they needed to come up with a viable strategy of marketing for launching (MacKenzie 96).Eventually, due to fact that lawn maintenance would plunge the firm into considerable competition against the key industry players, it would not be effective as a target.

On the other hand, since commercial market would place the product at a higher rank due to its effective benefit of preserving water, it would enjoy consumer demand thus being viable. Works citedMacKenzie, H. F. Contemporary Canadian Marketing Cases. Toronto: Pearson Prentice-Hall, 2004. Print.