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2. Determine overall size and scope of market within the company’s niche:

Industry Overview (non-niche detergent industry): market size---> $11 billion as of 2008

Ruby Moon's products are mainly powder detergents. Powder detergent market size is $850

The market size for green cleaners (includes companies that produce ‘green’ household
cleaning products) is $557 million. Because Ruby Moon sells mainly laundry detergent the
market the company belongs to is much smaller. Retail sales of ‘green’ laundry detergents
totaled $218 million in 2009, which is the most appropriate estimate of the size of market in
which Ruby Moon belongs.

Define Ruby Moon's current share of the market:

        Ruby Moon is in its second year of operation, which has been too short of a time period
for the company to accurately track and forecast sales. Although Ruby Moon was unable to
supply us with any dollar amount of sales, we were told the company sold 500 to 800 bags of
their laundry detergent last year. From this we can estimate the company’s market share. If
we multiply the number of bags sold by the average cost per bag (800*$11.25), we find that
Ruby Moon sold $9,000 worth of detergent last year. This doesn’t factor in the sales of the
company’s other products, but this is somewhat compensated by using the higher end of the
spectrum of bags sold (800). The size of the green laundry market in which Ruby Moon is
categorized is $218 million. From that we can estimate Ruby Moons market share to be well
below 1%.

4. Research industry and identify potential opportunities:

         Liquid detergents currently dominate the detergent market, representing nearly 75% of
sales. A few of the companies (competitors) that produce "green" liquid detergent ranked
highest by consumers include: Seventh Generation, Mrs. Meyer's Clean Day, and Arm and
Hammer. These companies’ products can be found in most grocery stores (Hannaford, Shaw’s,
Wal-Mart, etc.), ranging anywhere from $10 to $50. Some companies are also using minimal
packaging, which could be attractive to consumers concerned about their impact on the
environment. Two companies I’ve found that use minimal packaging are Dropps Laundry
Detergent and Method Liquid Laundry Detergent. Some grocery stores like Whole Foods are
very strict about the packaging used for the products sold in their stores. There may be an
opportunity for Ruby Moon to increase sales by adding a liquid detergent to their product line,
and also changing their packaging in order to have their products sold in more retail stores as
well as appeal to more “eco-minded” consumers.
        It may be beneficial for Ruby Moon to target different markets (segmented by city)
where powder detergents are more widely distributed. Cities in the US that rank the highest in
powder detergent sales are as follows (as a percent of region); NY City 20.42%, LA 7.39%,
Chicago 6.79%, Houston 3.95%, Philadelphia 3.51%, Dallas 2.5%, San Francisco 2.44%. The total
sales of powder detergents in the United States relative to the entire market is 22%. China also
appears to be a larger market in consumption of powdered detergents. Ruby Moon already
distributes its products in areas like Texas; it would appear to be beneficial for the company to
distribute its products through retail stores in these cities/regions.

4. Outsourcing production


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