Parvaderm Corporation is a manufacturer of women’s personal-care products. The company’s line of products includes facial creams, hand and body lotions, and a full line of women toiletries sold under different brand names. Products are sold by drug and food-and-drugstores through rack jobbers. Rack jobbers are actually wholesales that set up and merchandise retail displays.
Soft and silky shaving gel was introduced in the spring of 1991. The product was viewed as a logical extension of the company’s soft and silky brand of hand and body lotions and required few changes in packaging and manufacturing. The unique dimension of the introduction was that soft and silky shaving gel was …show more content…
* The company’s shipping records indicated that the product’s fill rate had dropped, leading to out of stock situations and lost sales.
* They have no manufacturing capacity extension plans for the coming 3 years.
* The company does not have the technology to produce aerosol containers.
* Aerosol packaging had become the dominant design for women’s shaving cream and gel.
Vulnerable to competitor
Increased pressure because of technology advance
CONSIDER RELEVANT INFORMATION
IV. Objective: IN Short Term:
* To introduce the new package design to the market via market test
* To make the aerosol container as their new packaging design
* To cannibalize the tube packaging
* To increase their overall sales
In Long Term:
* To be the leading company worldwide that offers women’s shaving products
ALTERNATIVE 1 - introduce a 5.5-ounce aerosol container to the current product line
ALTERNATIVE 2 - introduce a 10-ounce aerosol container to the current product line
ALTERNATIVE 3 – Test Market Plan
IDENTIFY THE BEST ALTERNATIVE
Recommendations for Ms-Tique Corporation:
• Do not introduce proposed new products at proposed prices because they are projected to be way less profitable than your existing one.
• Produce the aerosol 5.5 oz package at a higher price, $3.95. Results of the research did not show that