Yorktown Technologies

Executive Summary:

The Problem

        In 2003, Yorktown technologies had projected quick growth and profits of $4-million for 2004. They not only missed this mark but as of 2008 they were still far short of where they had forecasted they could reach; they were below $1.2-million in revenue. Despite a unique product, distribution and marketing flaws are holding the company from reaching its full potential and it’s time to make a decision on the correct course of action to start reaching the growth originally forecasted.

The Answer

        Increased sales will begin with better control of the displays in existing stores. After correcting the display issue, opening an on-line sales and informational presence will generate new, well informed customers. Finally, a kiosk pilot program will place GloFish and GloFish accessories in front of the millions of shoppers who sped $10-billion annually at shopping mall kiosks.

Rationale

        Sales are being missed today because customers don’t have the opportunity to see GloFish in their most brilliant state. This lack of attention to detail within the displays is detrimental to our business and is the low hanging fruit that can’t be left unpicked. An on-line presence will educate potential customers and provide a more convenient method of purchase for many. Prices can be carefully controlled in order to prevent disrupting sales at our retailers with whom Yorktown technologies has established strong relationships, and in many cases, the educational aspects of the website will generate new customers for these retailers, customers who prefer to shop in person. Shopping mall kiosks will begin in a pilot phase due to the instability in the shopping mall market at this time. With a growing trend to purchase items on-line, there are questions as to how long the shopping mall model will last. Fortunately, kiosks operate on an annual lease basis, and we can test the waters with a handful of carefully placed kiosks. Kiosks, and the internet both have the added benefit of being advertisements as much as retail centers. Since the initial buzz resulting from questions of ethics in genetic engineering, we have lacked the exposure we desire to grow sales. Kiosks and a web page, combined with targeting marketing on line can move Yorktown technologies to its lofty goals.

Situation Analysis:

Facts of the Case

Alan Blake, CEO and founder of Yorktown Technologies understands that for his firm to be successful, they need to make key changes in their marketing strategy. The companies’ initial product, a glowing Red Zebra Danio, was released in 2003 amid a swarm of press coverage due to its slightly controversial nature. The fish is genetically modified to have a fluorescent glow under certain lighting and this genetic modification of the fish created widespread interest in how this product would be received by the public and whether it was safe and ethically correct to create such a fish. After placating the necessary authorities, the fish became saleable in all states but California and sales benefited from the media coverage. Sales quickly tapered off after the initial release of the Red Zebra Danio. In fact, one quarter of 2014 sales took place in January.