Therefore, the idea of outsourcing the new product line makes sense. Alternatively, either Masters could decide against doing the test marketing research altogether and instead introduce the 5.
Exhibit 6 Once this cost is sunk, and Transcended can monitor demand for the new package and aerosol product, they can gauge introduction of the 5. The existing Soft and Silky Shaving customers have proven loyal to the brand.
Tan Soup would recommend the product launch prior to the peak shaving season; further the 10 ounce aerosol provides the highest margin and return on investment for the company. Additionally, only 25 percent of the non-customers said that they would switch to Soft and Silky with the introduction of new packaging.
Study group Tan Soup has reviewed the current situation, analysis, alternatives, and recommendations in this case report.
Exhibit 4 Lastly, Masters could choose to change nothing and continue to maintain production on their original packaging and leave the option to introduce new packaging for a later time. After a review of the alternative courses of action, we recommend the introduction of the of the 10 ounce aerosol can.
While there may be some centralization of those users, the effect would be minimal to the overall profitability of the product line.
Continued use of rack Jobbers would be necessary to place their products effectively in the stores. The existing production line has been maxed out, and no plan to modify existing machines or add to the production line to increase capacity.
The recommended alternative would require proper product placement, utilizing the rack Jobbers. Since the product has a unique niche, it has been profitable since its inception and has a vast brand loyal following.
Kerri, Given the market research and study, newly appointed product manager Phoebe Masters must choose what size and test market to deploy the new design for Soft and Silky Gel.
Soft and Silky is promoted as a premium product; therefore the cost is higher than its competitors. The only issue is that if they continue to overburden the production line and cause the gel to be out of stock, the ewe product may usurp the old product line.
Kerri, With 77 percent of the manufacturers sales going toward razors and only 23 percent toward shaving gels and creams, there is still much room for growth in the shave gel and cream sector. Kerri, Whatever choices and decisions, it must continue to provide the quality product that brand loyal customers seek.
Should Masters decide to introduce, the 5. The product has been on the market for over 14 years and has enjoyed brand loyalty and success in this specialized segment of the shaving industry. The analysis means that the other 55 percent would still purchase the original packaging.
Some cannibalism is expected, but not enough to obliterate the old product completely. This option would mean introducing the new packaging in a test market situation where they would separate the 5. Additionally, marketing in female focused magazines and cooperatives with local newspapers would provide a buzz around the new product size and features.
They were successful with the launch of their Soft and Silky Shaving Gel; they should have every expectation that they would be able to market this product as well. They are women who currently use shave gels and creams and those using soap and water.
Kerri, Masters will need to look at the alternative options in order to determine if implementing in the test market is in the best interest of the product line. Exhibit 7 Considering the finding from the test market analysis, only 45 percent of current Soft and Silky customers would consider switching to the new packaging.Dermavescent Laboratories, Inc.
Creating & Sustaining Superior Performance. New Package Initiatives. Review & Recommendations. May Soft & Silky Shaving Gel – A Case Study Alex Cochran i killarney10mile.com i Table of Contents marketing and financial arsenal. SC Johnson has been active in the marketplace.
Case Study prepared for NMU's MKT Strategic Marketing Seminar. You can thank me later for all this hard group work with a hearty beer downtown marquette if your're thinking about. Dermavescent Laboratories, Inc. Marketing Management Case Study Problem Identification Phoebe Masters, new product manager, “has to decide whether to introduce a new package design for the company’s Soft and Silky Shaving Gel.
Some product management team Furthermore, the manufacturing and marketing of four sizes could stretch the production capacity, increase inventory, and challenge Frito-Lay sales personnel Dermavescent Laboratories, Inc.
Case This case was prepared by Professor Roger A. Kerin, of the Edwin L. Cox School of Business, Southern.Download