GloFish,LLC
Final Report
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賈儒慶(Chief)
曹思漢
黃敬琮
林鴻儒
鄭鈞瑋
姚文宜
Executive Summary
 Define the problem:
 GloFish will have a meeting with the Board of
Directors.
 Goldfish Financial situation:
 Blank had raised $500,000 from local investors in 2002 and 2003.
 Company would generate $4,000,000 in profit in 2004.
 However, company revenues in 2004 were a disappointing $500,000
and expenses were $620,000
 Producing an operating loss of more than $120,000.
 Target
 CEO knew that if GloFish were to be successful, the board of
directors would need to approve key changes in the firm’s marketing
strategy.
 Distribution was the key to market success.
Summary
 Answer
 GloFish shall choose independent store and
Cain stores as their distribution channels.
 PET’sMART stated the were considering to carry the
fish(PET’sMART: 700+ stores, 41million sales =$3.4billion x 40%
(Fish market shares) X 3% (Goldfish opportunity)
 A Majority of freshwater ornamental fish sold in the US are
purchased from these chain stores. (Like Wal-Mart)
Market share of categories
Reptiles
5%
Small animals
50%
Fish
40%
Fish
Birds
Small animals
Birds
5%
Reptiles
Additional explanations:
Assumption of Glofish market share
Categories
fish
Marketing Share
Independent
PETsMart
(3.4 billion)
“3%”
Chain Store
War-Mart
(285 billion)
“0.05%”
Total sales
Milion
Glofish
3%
1.224
1.71
2.934
others
97%
39.576
55.29
94.866
40%
birds
5%
5.1
2.7
7.8
reptiles
5%
5.1
2.7
7.8
small animals
30%
30.6
16.2
46.8
Other Conclusion
 Internet market isn’t suitable for GlodFish.
 Delivery cost will be higher than price of fish.
 Kiosks market isn’t suitable for GloFish base.
 Base on risk/cost concept and no professional selling to
promote the fish.
 International market is not to take right now.
 The regulation and law is not clear for selling the fish
 GloFish’s market share is only 1% in US(4M/365.4M)
 To cultivate US market first is suggested.
Teaching Note
◎Recognizing that numbers routes to buyer exists, three
questions need to be addressed when choosing a
marketing channel and intermediaries.
 Which channel and intermediaries will provide the best
coverage of the target market?
• Intensive distribution at the retail level means that manager
attempts to distribute the organization’s offerings through as many
retails outlets as possible.
• Exclusive distribution is the opposite of intensive distribution in that
typically one retail outlet in a geographic area.
• Selective distribution is between these two extremes.
Teaching Note
 Which channel and intermediaries will best satisfy the
buying requirement of the target market?
• Information
• Convenience
• Variety
• Attendant services
 Which channel and intermediaries will be the most
profitable?
• Each Channel cost (includes distribution, ad, selling expense…)
• Margins earned (Revenues – Cost)
GloFish,LLC
SWOT
Analysis
Strengths
Independent
1.
The majority retailers (there are 5000 retailers in US). These stores serve
both true freshwater ornamental fish lovers and they are convenient to
purchase.
2.
The Total sales increasing 7% (2004 1.75m)
1.
A majority of the freshwater ornamental fish sold in the US are from
three major retail chain
2.
The GloFish’s suppliers and distributors have been the chains stores’
regular suppliers of tropical fish.
3.
The profit of GloFish’s fluorescent fish is higher than traditional one.
Pet Stores
Chains Stores
Risk/$
Kiosks
Risk/$
Internet
1.
2.
store.
1.
There are numerous dotcom firms that marketed tropical over the
internet
1.
The company could sterilize its fish to prevent illegal breeding in areas
where it could not otherwise control its intellectual property
Risk/$
International
Zebra danios are easy to sale on Kiosk.
Same distribution with Independent pet
Weaknesses
1.
The number of pet stores is declining at an annual rate of 2%.
1.
The GloFish does not have experiences to work with chains stores,
especially the negotiation of the price and the shelf placement.
2.
The production and financing capacity of GloFish is relative weak,
therefore, it is difficult to meet the delivery requirement of a big order
from a chains stores.
Risk/$
1.
2.
3.
The environment is not so elegant to show the beauty of the fish.
Without any sale experience on Kiosk, Lack of Glofish Kiosk
Machine maintenance skill.
Internet
1.
The delivery cost will be higher than price of fish.
Risk/$
2.
Sales the fish in the internet (including delivery cost fee $40 or more).
International
1.
European Union was essentially closed with low opportunity.
2.
Some countries prohibit GloFish ,they don’t have agency in other
countries.
Independent
Pet Stores
Chains Stores
Risk/$
Kiosks
Opportunities
Independent
1.
Total sales of
Pet Stores
2.
They hoped to have new fluorescent red zebra fish available in retail
stores in 2005.
Chains Stores
1.
They sell a lot of aquarium kits to people who are the first time for fresh
water ornamental fish. It means the potential growth
2.
Chains stores are major distributions of freshwater ornamental fish
which is capable for Glofish to make big revenue.
3.
Wal-Mart($285b in 2004): not only the world largest retailer in the world
but also the leading retailer of fresh ornamental fish in the U.S
4.
PETsMART($3.4b in 2004)
5.
PETCO($1.8b in 2004)
1.
2.
Kiosks have enjoyed explosive growth in numbers and revenue.
They can sale Glofish-branded tanks and supplies, fish food and
water conditioner.
People love to buy cute thing one Kiosk once they saw zebra danios
on Kiosk.
Risk/$
Kiosks
Risk/$
3.
Internet
pet stores are increasing at an annual rate of 7%.
1.
Some tropical fish were even being marketed on eBay.
1.
The most lucrative foreign market appeared to be in Asia.
Risk/$
International
Threats
Independent
1.
The number of pet stores is declining at an annual rate of 2%.
Pet Stores
2.
The total sales of pet stores is influenced by the large chain stores.
Chains Stores
1.
None of the major chains stores agree to carry the GloFish products
because of the concern of genetically modified fish.
2.
The major customers of chains stores are price-sensitive, it means lower
margin for GloFish.
3.
The major customers of chains stores are not fish enthusiasts, they are
not particularly attracted by the fluorescent fish.
1.
2.
Competitors can also sale their products on Kiosk.
Fish in Kiosk may die easily if no people can not take care them any
time.
Internet
1.
The price of goldfish were competitive.
Risk/$
2.
Easy to argue with customer if fish is dead on delivery way
International
1.
The regulation and law is not clear for selling the fish.
2.
Asia countries also have their ownornamental fish.
Risk/$
Kiosks
Risk/$