Segmentation Analysis
Essay by geardingr1 • October 30, 2012 • Case Study • 423 Words (2 Pages) • 1,570 Views
Segmentation Analysis
Insecticide Market
The insecticide market is divided into two segments, the consumer market and the professional pest control market. Insecticides that are sold in the consumer market are produced in do-it-yourself, easy-to-use packaging. These products are sold predominately through supermarkets. The professional pest control market sells diluted insecticides to professional applicators.
Consumer Pest Control Market:
The annual sales for all consumer sold insecticides in 1985 were $400 million. The consumer sales were divided into 3 major outlets:
-Supermarkets had 70% of consumer sales which equals $280,000,000
-Drugstores had 9% of sales which equals $36,000,000
- An assortment of other retailers including home improvement centers, and house and garden centers accounted for 21% of sales, which equals $84,000,000
There are also three main types of packaging of consumer insecticide:
-Aerosol sprays which had a "quick kill" aspect were the most popular form of insecticides sold to consumer. They accounted for 74% of retail sales, which is $290,000,000
- Liquid sprays gave the consumer residual control, and had a total of 14% of sales or $56,000,000
- Solids, strips, pastes, traps, and bait were sold to consumer who preferred a high margin of safety when using insecticide. They accounted for 12% of sales, which equals $48,000,000.
The insecticides sold in the consumer market were also divided into insect-specific segments : 40% or $160,000,000 were ant and roach killers, 20% or $80,000,000 were flying insect killers, 11% or $44,000,000 were flea killers and 29% or $116,000,000 were other inspect specific products.
The insecticide sales in the consumer market varied by season and geographic location. 75% or $300,000,000 in sales of the consumer market, were sold between May and October. The other 25% of sales were sold through the remaining six months of the years. Also, the Southern states accounted for half of the consumer market sales. The consumer market also had an average gross profit of 55%.
Professional Pest Control Market:
In 1985 the professional pest control market had annual sales of $2,500,000,000, with an annuals gross profit of 51%. The professional pest control market can be subdivided into three main groups:
-insect control, used for cockroaches, fleas, ants, etc. accounted for 52% or $1,300,000,000 of sales.
-termite control was 21% of sales which equals $525,000,000
-specialty pest control used for rodents accounted for
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