Yorktown Tech Case Study
Case Recap Yorktown Technologies is a fairly new company that is marketing and introducing GloFish into the market. In 2002 Yorktown raised $500,000 fro investors under the projection that it would have $4,000,000 in profits in 2004. Sadly the company only had $500,000 in revenues and had an outstanding $620,000 in expenses leaving the company $120,000 in the red (Roger A. Kerin, 2010). Alan Blake of Yorktown Technologies is searching for what to tell the board of directors in the next board meeting. Major changes are needed in order for Yorktown to turn around and become profitable. Problem Identification The largest problem that plagues Yorktown is negative media attention …show more content…
Blake believes that the presentation of their product is lacking and thus not exhibiting the true nature and potential of their product. The GloFish are best displayed under black lighting and dark rooms. None of the retailers are displaying the fish in such an environment, which is diminishing the potential sales of the fish.
Evaluation of Alternatives and Recommendations Several alternatives and solutions have been considered by Yorktown. The first is the direct internet marketing to the consumer, however this is a difficult task because competitors are selling similar product for far cheaper than Yorktown’s cost including shipping and taxes.
There has also been discussion about a kiosk in the shopping mall. This is a fairly good option because it would give Yorktown the freedom to display the fish in the best possible environment as well as sell the proper kits as well as the fish. This is a great opportunity with the only downfall being discussed as the price of the lease of space. Another alternative is to begin increasing marketing to the smaller independent pet stores, as well as other chain stores. This alternative will produce some increase in sales but has the potential to run into the same problems Yorktown has had with the big three distributors. The negative media that has been received may affect his alternative. The biggest problem according to Blake is the refusal of distributors to show the fish properly and showcase the