YorkTown Technologies
Andrew Hoffritz
MK 4900
09/20/16
1. Situation Analysis
a. Industry
i. Ornamental Freshwater Fish ii. 200 Million sold in United States iii. United Sates industry sold $700 million with a 7% annual growth rate iv. $2 billion sold (Worldwide)
b. Company
i. Yorktown Technologies
1. 2 Main fish distributers ii. Operated loss of $120,000 - 2004 iii. Market share set at 0.57% in United States – Year 2008 iv. Market share set at 0.2% internationally (Appendix A)
c. Trends
i. Pet stores showed a 2% annual depreciation ii. 7% annual enlargement among sales in Pet Stores iii. Sales in United States increased 9% yearly
2. Problem Definition
a. Anticipated revenue for Yorktown Industries were $4,000,000. The amount acquired was $500,000. $620,000 was the overhead cost…show more content… No shipping cost. iv. Chain stores have regulations on selling the “GloFish”
1. FDA already stated the fluorescent zebra fish is an environmentally safe fish.
v. Proper Display
1. Will engage the customers more due to the attraction and look of the fish
4. Recommendation and Justification
a. Focus on endeavoring toward chain stores
i. Efforts toward the chain stores make everything easier and more approachable. The net worth among chain stores is very high already. They already serve a large target audience. With the proper schooling and exhibit of the GloFish, there would be a substantial amount of earnings toward Yorktown Industries. Revenue objectives to gain +$120,000 to break-even could easily be achieved.
Appendix A. United States Market share: $4 million/ $700 million = 0.0057 = 0.57% Market Share Internationally: $4 million/$2 billion = .002% = 0.2% B. Breakeven for Kiosk: cost of kiosk = Average of $24,000. SP= $5 VC= $1.50 $24,000/(5-1.5)= 6858 units * $5 = $34,285.71 C. Delivery Markup %: SP $43 – UC $7 = $36, $36/$7 = 5.1429 = 514.3% D. Chain Store Break-even with goal of $120,000: $120,000/ (5-1.5) = 34,286 fish * $5 =
