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Andrew Hurst Daynor Chemical Company S- * Large supplier of MDA
W- * Hazardous containers
* Containers aren't biodegradable
O- * No successful dry product
* Multichemical failed in the past
T- * Multichemical has equal market share
* Changes come about slowly in market MDA powder formulation
other 10% Daynor Chemical Company specializes in chemicals that are diluted with water and sprayed on crops.
- Plastic containers
- Hazardous disposal
-Requires rinse cycle
New powdered MDA:
- Water soluble packs
- No container disposal * USA uses 330,000 tons of pesticides yearly
* AI= active ingredient. scaled on per lb basis
* Small tobacco farms. 20 acres max.
* Potato farms are large enough to dispense pesticides by plane * Multichemical had market breakthrough with the first dry product with failure as a result. Daynor Chemical CaSE Introduction Getting to know Daynor Chemical Industry Daynor Rivals SWOT Analysis * Advantages:
- Save capital investment money
- 2 overpacks cater to tobacco and potato markets
- If soluble pack is too big, tobacco farmers wont buy
- If soluble pack is too small, potato farmers wont buy One size water soluble pack (2.5 lbs. AI), to fit both markets, with two sizes of overpacks (10 & 15 pack). * Advantages:
- Reach optimal portion of market
- Package more product per minute with larger packs
- Smaller packs are more expensive to package
- Capital investment increases $150,000 (6 x $25,000) Two size water-soluble packs (1.125 lbs. AI and 2.25 lbs. AI), with two overpack sizes (1.125 lbs.- 5 & 10 pack/ 2.25 lbs.- 10 & 20 pack) for each. * Advantages:
- Reach large potato farm owners
- Large packaging sizes will save money on production
- Wont duplicate inventory
- Miss out on entire tobacco market
- Tobacco market will feel neglected One large size water soluble pack (2.5 ibs. AI), and one overpack of fifty. * Advantages:
- Reach largest market (tobacco)
- Save on tooling cost
- Better customer relations with tobacco farmers
- Miss out on entire potato market
- Potato market will feel neglected One small size water-soluble pack (1.125 lbs. AI), and one overpack of ten. Possible Strategies We would recommend strategy number 2. What we think Do you believe sales/revenue is the most important aspect in a successful business? Why or why not? If not, what is? In-Class Assignment Possible Strategies 1 2 3 4 Price: Moderate Price: Low Price: Moderately high Price: Extremely high