Glofish Llc

Before the January 5, 2004 launch date for the GloFish Red Zebra Danio, Alan Blake and Richard Crockett had many obstacles to overcome. The United States' first genetically altered tropical fish was a very contradictory issue. Conservationalists argue from an ethical standpoint that the blending of DNA from two completely different species that could not possibly mate in nature is wrong. These people do not approve of combining genes from a zebra fish with those of either a jellyfish or sea anemone. There was also concern that one of this transgenic fish would get out into the wild and breed with another species of tropical fish possibly posing threats to the environment. There was also very little regulation of these GloFish with the only agency providing any regulation being the Food and Drug Administration.

Alan Blake believed that there was a market for biotech, freshwater ornamental fish, and he was disappointed in the performance of GloFish and the failure to break even for the company. In 2004, the freshwater ornamental fish market produced and sold 200 million fish in the United States; the consumer market for freshwater ornamental fish and related products is $700 million with an annual growth rate of 10 percent. In hopes of increasing sales from the $4,000,000 that GloFish held in 2004, or .57% market share, Blake is considering four methods of distribution: independent pet stores, chain pet stores, mall kiosks, and the Internet. Analysis of these four methods follows.

If independent pet stores, such as exotic specialty stores, are chosen to distribute GloFish, the fish would seem more valuable and I think that the consumer would be more willing to pay a greater price for these exotic fluorescent fish. This is due mainly to the fact that the majority of customers walking into an exotic pet store are going to be a niche of customers who are looking specifically for these exotic species and not just everyday pets. However, advertising would be more difficult and would have to be much more local than other methods. It is also harder for these independent stores to build up a good reputation than a chain store which is already well-known in other areas.

Chain pet stores would allow GloFish to reach more customers and expand geographic borders of their market. This option is also promising because the necessary relationship with suppliers is already established for the company. It would also facilitate advertising as it is much less local than the independent stores. However, with many more fish to choose from in the stores, GloFish would have to increase efforts of making their fish stand out against the other fish in the aquariums. If sold in a chain retailer, the GloFish may seem to be of decreased value because this is more of an intensive distribution method as opposed to the exclusive method of distribution in which the fish are