They also do not face the same pollution issues that Golf course owners face. For those companies that do not want to participate, estimates will still be created for these businesses. One of the main advantages is the cost savings that the company can offer with their new products.
The two major fertilizer companies do not have competing products that would compete against StaGreen in this segment of the market. This is mostly because of the amount of water that is needed to maintain the condition of the grass and the frequent use of fertilizers.
The savings will be calculated per square foot. The process will involve contacting golf courses, apartment complexes, and other commercial facilities to try and get a copy of their fertilizer expense and water expense estimates.
The overall commercial market is much smaller than the consumer market. The company would emphasize how the companies will spend less money on the fertilizer and therefore save money.
For the retail segment, rebates can be given to retailers who reach high sales of the products. Analysis The analysis will separate the two markets to analyze each markets strengths, weaknesses, opportunities, and threats associated with each.
Additionally, the cost savings on fertilizer and water alone add another benefit that the company can capitalize on. This is an enormous difference.
Marketing Strategy For the short term, Stranger should Max its monthly production tokeg to be able to produce orders to fulfill the large discount retailers, and golf courses that he sales rep for each, 7 for the discount retailer, and 12 for the commercial side will begin to accomplish locking in.
That is the problem faced. They tend to purchase lawn care products in bulk because they are not used nearly as much as Golf courses. StaGreen is again very different from conventional golf course fertilizers as it allows the grass to retain water longer, reducing the costs of watering the courses, and fertilizing.
If StaGreen is not initially received well by the commercial market they will have no opportunity to recover. They would have to prove that the groundwater is less polluted with their fertilizer, instead of solely relying on the fact that using less fertilizer is better for the environment.
Advertising is substantially less in this market because of this. Both factors would work to benefit StaGreen and help them differentiate themselves in the market.
The idea that most consumers do not know the brand name of their lawn care products shows that they do not have a high rate of brand loyalty and will easily be persuaded by a good deal. Lastly Hydrocarbon at this time only has one product that they are bringing to market which not only limits its potential future growth for the short term, but puts tremendous pressure for the one product to generate revenues and create cash flow for the equines.
Should it be the consumer market? Since, the product is completely new, there is no trust built for its success. Nu-Gro Corporation is another large wholesaler in the golfing industry that will be a competitor for StaGreen. Analysis will look at the financial barriers for each, including market growth and potential of each.
The overall commercial market is much smaller than the consumer market. The next market strategy for Hydrocarbon would be to solely focus on selling to the commercial market which is comprised of primarily golf courses, and commercial housing complexes.
With the offering of less water use and less fertilizer use per year, they will understand the overall benefits of making the switch. However, with the growing number of golf courses that are expected to be created, they may decide to aim towards catering to new businesses.
After this, a marketing strategy will be compiled for the short term and viable long term of HydroCan and its chemical fertilizer StaGreen.
The seasonal aspect of lawn care related purchasing still peak in the summer months but out of season sales levels will be sustained at a higher level than projected in the consumer market.
The biggest threat in entering the consumer market is that Hydrocarbon will have to compete against two companies that have had great historical success in the fertilizer market, Scoots and Roth Chemical. These two companies control half of the entire fertilizer market, and are able to outpoured Hydrocarbon, and outspend them in advertising.
While there is less direct competition from the two major companies, there are smaller independent companies that sell directly to this market.
There will always be competition from other sales teams attempting to coach current clients away from golf courses who may be using Stranger.
This is the stronger of the two strategies for HydroCan, however, it puts extreme pressure on the sales reps to be able to convince golf courses to buy and use StaGreen. They need to ensure that the consumer understands that the product is the same cost as the alternatives, but that they need less of it, so the overall costs are less per year.
To market the product to the commercial market, they will sell the product in 50 kg bottles that will produce around 3, treatments per month.
The advertisements and cold calls will utilize this potential savings amount and offer a free estimate and evaluation report. Stranger is their only product and with so few buyers if even one initial buyer is left feeling like the product was of poor quality their influence on the market will likely result in the loss of current customers and future ones.Greener Pastures: The Launch of StaGreen HydroCan is a start-up company that has just received a patent for their new lawn care product in both the United States and Canada.
The new product “StaGreen” is revolutionary, because it will allow the root system to retain water longer for most grass types. Case Study: Greener Pastures: The. The newly innovative fertilizer like product created by Hydrocarbon called Stranger brings to the market a new type of fertilizer like product that is different from the conventional leading fertilizers on the market.
Free Essay: StaGreen by HydroCan Case Analysis Introduction The newly innovative fertilizer like product created by HydroCan called StaGreen brings to the. StaGreen by HydroCan Case Analysis Introduction The newly innovative fertilizer like product created by HydroCan called StaGreen brings to the market a new type of fertilizer like product that is different from the conventional leading fertilizers on the market.
Hydrocan Case This Course Note Hydrocan Case and other 64,+ term papers, HydroCan would like to introduce to the market new, innovative, generating savings, the new generation of fertilizer StaGreen.
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