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Erox Corp.: Leverage Marketing
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Erox Corp. is a biotechnology start-up that creates products containing synthetic human pheromones. It was founded in 1989, went public in 1993, and brought in a turnaround team in 1994. Sales ramped from $110,000 in 1993 to over $1 million in 1994, with prospects for continued hypergrowth. Pheromones are odorless biochemical cues secreted by people and animals to influence the behavior of others of the same species. Biotechnologists have discovered human pheromones, and Erox has patents protecting its use of synthetic human pheromones for men and women in cosmetic products such as perfumes, colognes, and body lotions. Realm is preparing a national U.S. retail launch of its fragrance product lines: Real for women and Realm for Men. Michael Stern, VP marketing and sales, has developed a successful direct-marketing campaign using a 30-minute infomercial. His challenge is to develop a leveraged marketing communications campaign to support the launch of Realm in Bloomingdales.