View
1.451
Download
1
Category
Preview:
DESCRIPTION
Citation preview
Dermavescent Laboratories, Inc.
Overview of Presentation● Brief history of company● Market● Product● Price● Promotion● Place● Other● Problem/Opportunity● Recommended Actions● Plan of Action● Plausible Alternatives● Supportive Argument for the Recommended Plan
History of the Company
● Dermavecent Laboratories, Inc. is a manufacturer of women’s personal-care products
● Soft and Silky is the product brand name for the company
● Soft and Silky Shaving Gel was introduced in the spring of 1991
● Soft and Silky Shaving Gel was introduced as a high-quality shaving gel
Market
Market - Women's personal-care products● Methods of shaving● Factors of shaving● Trends in shaving● Economic market
Monopolistic Competition
ProductDermavescent Laboratories Products:
● Soft and Silky shaving creams/gels● Hand and body lotions● Facial creams● Women’s toiletries
Product Life Cycle:● Maturity Stage
Product Benefits
● Core - Assist with removing hair● Provides protection for skin
problems and razor bumps● Limits dry skin with moisturizer● Makes shaving easier by using a
sticky thick cream● Some gels are scented, which
allows for a clean smell and feel
Price
1. Retailers receive a 40% margin 5.5-ounce tube: $3.95 * 40% = 1.58 5.5-ounce aerosol: $3.50 * 40% = 1.40
10-ounce aerosol: $4.25 * 40% = 1.70 2. Wholesalers receive a 20% margin
5.5-ounce tube: $3.95 * 20% = .79 5.5-ounce aerosol: $3.50 * 20% = .70 10-ounce aerosol: $4.25 * 20% = .85
3. Variable Costs 5.5-ounce tube price: $3.95 5.5-ounce aerosol price: $3.50 10-ounce aerosol price: $4.25
Price
4. Allocated costs a. $35,000 on market research focus groups
b. $10,000 one time setup fee c. $30,000 costs on test market5. Manufacturing Costs
5.5-ounce aerosol: $0.24 10-ounce aerosol: $0.29
6. Sales of $3,724,000 in 2005 with a 1,960,000 unit volume7. Elasticity
a. Relatively Elastic
Promotion
● Product placement from rack jobbers● In-store promotions ● Multi-pack deals● Media advertising● Market test using newspaper ads and
point-of-purchase displays● Expansibility
● Relatively High
Place
● Drug stores● Food-and-drug stores ● Channel: Dermavescent Laboratories -
Rack Jobbers-Retailers- Consumers
Other
●Production issues●New packaging design●Potential outsourcing●Competition
Problem/Opportunity
● Primary – Whether to introduce an aerosol container
● Secondary○ Production issues○ Aerosol container size○ Future of the tube package design
Recommended Actions
● Primary – Introduce aerosol containers
● Secondary1. Outsource production to a manufacturing company2. Introduce both sizes' of the container3. Stop producing tube packaging
Plan of Action
● Introduce aerosol containers● Do not do a market test● Outsource production to a manufacturing
company● Introduce both sizes' of the container● Stop producing tube packaging● Put market testing budget towards
marketing and advertising efforts
Plausible Alternatives
● Do nothing ● Put a larger emphasis on their other
products● Keep tube packaging and introduce
only one size of aerosol container● Expand on their own
production/manufacturing facility● Do a market test on the shaving gel● Merge with another top competitor
Supporting Argument ○ Extremely loyal customers○ Aerosol container is main reason noncustomers
don’t use the product○ Focus group showed: 20% of customers said they would convert
to the 10-ounce style and 25% would convert to the 5.5-ounce container
○ Outsourcing would be environmentally friendly and cost effective
○ No market test because the cost is $30,000 and introducing both products
○ Increase marketing and advertising with:social media with a focus on Pinterest, email marketing with product coupons and advertisements in magazines and newspapers.
Any Questions?
Recommended