Trap-Ease Case Fall 2003

Trap-Ease America: The Big Cheese of Mousetraps One April morning, Martha House, president of Trap-Ease America, entered
her office in Costa Mesa, California. She paused for a moment to contemplate the Ralph Waldo Emerson quote which she had framed and hung near her desk. If a man [can]make a better mousetrap than his neighborthe world will make a beaten path to his door. Perhaps, she mused, Emerson knew something that she didnt. She had the better mousetrap Trap-Ease but the world didnt seem all that excited about it. Martha had just returned from the National Hardware Show in Chicago. Standing in the trade show display booth for long hours and answering the same questions hundreds of times had been tiring. Yet, this show had excited her. Each year, National Hardware Show officials held a contest to select the best new product introduced at the show. Of the more than 300 new products introduced at that years show, her mousetrap had won first place. Such notoriety was not new for the Trap-Ease mousetrap. People magazine had written about the mousetrap in an article, and numerous talk shows and trade publications had featured it. Despite all of this attention, however, the expected demand for the trap had not materialized. Martha hoped that this award might stimulate increased interest and sales. A group of investors who had obtained worldwide rights to market the innovative mousetrap had formed Trap-Ease America in January. In return for marketing rights, the group agreed to pay the inventor and patent holder, a retired rancher, a royalty fee for each trap sold. The group then hired Martha to serve as president and to develop and manage the Trap-Ease America organization. The Trap-Ease, a simple yet clever device, is manufactured by a plastics firm under contract with Trap-Ease America. It consists of a square, plastic tube measuring about 6 inches long and 1 inches square. The tube bends in the middle at a 30 degrees angle, so that when the front part of the tube rests on a flat surface, the other end is elevated. The elevated ends holds a removable cap into which the user places bait (cheese, dog food, or some other tidbit). A hinged door is attached to the front end of the tube. When the trap is open, this door rests on two narrow stilts attached to the two bottom corners of the door. The trap works with simple efficiency. A mouse, smelling the bait, enters the tube through the open end. As it walks up the angled bottom toward the bait, its weight makes the elevated end of the trap drop downward. This elevates the open end, allowing the hinged door to swing closed, trapping the mouse. Small teeth on the ends of the stilts catch in a groove on the bottom of the trap, locking the door closed. The mouse can be disposed of live, or it can be left alone for a few hours to suffocate in the trap. Martha felt the trap had many advantages for the consumer when compared with traditional spring-loaded traps or poisons. Consumers can use it safely and
easily with no risk of catching their fingers while loading it. It poses no injury or poisoning threat to children or pets. Furthermore, with Trap-Ease, consumers can avoid the unpleasant "mess" they encounter with the violent spring-loaded traps-it creates no "clean-up" problem. Finally, the consumer can reuse the trap or simply throw it away. Martha's early research suggested that women are the best target market for the Trap-Ease. Men, it seems, are more willing to buy and use the traditional, spring-loaded trap. The targeted women, however, do not like the traditional trap. They often stay at home and take care of their children. Thus, they want a means of dealing with the mouse problem that avoids the unpleasantness and risks that the standard trap creates in the home. To reach this target market, Martha decided to distribute Trap-Ease through national grocery, hardware, and drug chains such as Safeway, Kmart, Hechingers, and CB Drug. She sold the trap directly to these large retailers, avoiding any wholesalers or other middlemen. The traps sold in packages of two, with a suggested retail price of $2.49. Although this price made the Trap-Ease about five to ten times more expensive than smaller, standard traps, consumers appeared to offer little initial price resistance. The manufacturing cost for the Trap-Ease, including freight and packaging costs, was about 31 cents per unit. The company paid an additional 8.2 cents per unit in royalty fees. Martha priced the traps to retailers at 99 cents per unit and estimated that, after sales and volume discounts, Trap-Ease, would realize net revenues from retailers of 75 cents per unit. To promote the product, Martha had budgeted approximately $60,000 for the first year. She planned to Use $50,000 of this amount for travel costs to visit trade shows and to make sales calls on retailers. She would use the remaining S 1 0,000 for advertising. So far, however, because the mousetrap had generated so much publicity, she had not felt that she needed to do much advertising. Still, she had placed advertising in Good Housekeeping and in other "home and shelter" magazines. Martha was the company's only "salesperson," but she intended to hire more salespeople soon. Martha had initially forecasted Trap-Ease's first year sales at five million units. Through April, however, the company had sold only several hundred thousand units. Martha wondered if most new products got off to such a slow start, or if she was doing something wrong. She had detected some problems although none seemed overly serious. For one, there had not been enough repeat buying. For another, she had noted that many of the retailers on whom she called kept their sample mousetraps on their desks as conversation pieces-she wanted the traps to be used and demonstrated. Martha wondered if consumers were also buying the traps as novelties rather than as solutions to their mouse problems. Martha knew that the investor group believed that Trap-Ease America had a "once-in-a-lifetime chance" with its innovative mousetrap. She sensed the group's impatience. She had budgeted approximately $250,000 in administrative and fixed costs for the first year (not including marketing costs). To keep the investors happy, the company needed to sell enough traps to cover those costs
and make a reasonable profit. In these first few months, Martha had learned that marketing a new product is not an easy task. For example, one national retailer had placed a large order with instructions that the order was to be delivered to the loading dock at one of its warehouses between 1:00 and 3:00 P.M. on a specified day. When the truck delivering the order had arrived late, the retailer had refused to accept the shipment. The retailer had told Martha it would be a year before she got another chance. Perhaps, Martha thought, she should send the retailer and other customers a copy of Emerson's famous quote. QUESTIONS: 1. 2. 3. Give Martha a grade (i.e., A to F) on how well she has executed the marketing concept. Explain why you assigned this grade. Evaluate the firms marketing strategy elements. What do you think of Marthas choice of market segments? What do you like or dislike about her marketing mix choices and execution? Visit a local retailer that sells mouse traps. Write a very brief description of each choice available for the consumer including its price, packaging qualities, what benefits it purports to offer, etc.

Trap-Ease Case Fall 2003

Uploaded by

Copyright:

Available Formats

Trap-Ease Case Fall 2003

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Trap-Ease Case Fall 2003

Uploaded by

Copyright:

Available Formats

Trap-Ease America: The Big Cheese of Mousetraps One April morning, Martha House, president of Trap-Ease America, entered

You might also like