Greener Pastures
Decision to be made
Stone Age Marketing Consultants must assess the viability of HydroCan and its product, StaGreen, and determine which market to target and how to position StaGreen in that market, while developing a viable marketing strategy for the launch year.
Situation Analysis
Problem
HydroCan is a start-up company that is obtaining patents in both the United States and Canada for a new type of lawn care, and is in need of marketing advice concerning its new product, StaGreen. HydroCan has approached Stone Age Marketing Consultants to help determine which segment to target, how to position its new product, and what type of launch strategy it should use. Considering the launch must take place in February, just …show more content…
Lawn care products are mainly sold by three distinct types of retailers: discount stores, specialty stores, and home improvement stores. The most lucrative of the three are discount stores because it is estimated that 60% of all consumer fertilizer sales are made in discount stores. This is a large comparison to 30% in specialty stores, and 10% in home improvement stores. Lawn care, however, is a highly seasonal business, with 70% of sales occurring in April to September.
Commercial Market Segment Analysis
The commercial market consists primarily of golf courses, but also includes commercial properties such as office complexes and apartment buildings. Golf is expected to see an estimated increase of 22% of playership in the next five years. Golf course owners spend, on average, $300,000 to maintain their golf course during the year with 24% representing fertilizer purchases. Course owners purchase their fertilizer through wholesalers who specialize in products uniquely designed for the type of grasses used because they know that the condition of the course is the most important attribute in a consumer’s selection of a course to play. However, golf courses are being blamed for groundwater pollution leaving course owners looking for new ways to reduce this problem. Manufacturers tend to be small firms or divisions of larger companies with two main competitors acting as market share leaders. Each competitor maintains their respective market share within