The Solar Feeder
11 April 2012
Analysis of Business
Bo Haeberle and Ed Welsh created a "squirrel proof" solar energy bird feeders simply called "solar feeder." Bo and Ed created the Squirrel Defense, Inc. (SDI) company and opened a small store in Greensboro to start producing the solar feeder for mass production. The solar feeder is a unique twist on the typical bird feeder, which resembles a typical birdhouse, but it has feed instead. The solar feeder uses new solar powered technology, which is to prevent squirrels from stealing birdseed with an electronic shock. After reviewing solar feeders' financial statements in exhibit 9 and 10 we can see that the company is not breaking even and is losing money. The solar company needs to implement a plan to increase sales and production while reducing its overall cost.
Company recognition of product and received awards for "best new product" in the bird feeder community.
Good relationship with the distributor.
The product is highly demanded.
Superior product than competitors.
Little market research done.
Price is too expensive, production is slow and solar feeder is unable to create enough units to keep up with the amount of demand.
Does not have a business plan.
Does not have marketing or management expertise.
High demand of the product
Potential of investment
Gain a large share of the market
Competition is offering similar products for a cheaper price
SDI is getting negative feedback about the electrical shock feature that squirrels receive when trying to get into the birdfeed from animal groups.
The selling price of the solar feeder is $300 and is too expensive; the price of the feeder needs to be at or below $150-$160.
Production cost is too high and the production rate is too low.
Owners did little research before creating the solar feeder product and did not zone in on their target market which is birds enthusiast particularly women 30 years and older. Also men between 40 and 60 years old with an annual average income of $60,000.
Advertisement that is getting negative feedback from animal groups.
SDI does not have a clear strategy.
Financial statements show negative net income and cash flow.
The owners do not know the amount of units or cost of product to break even.
Website is not user friendly.