Your SlideShare is downloading. ×
0
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Dermavescent Laboratories
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Dermavescent Laboratories

2,096

Published on

Published in: Business, Lifestyle
0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
2,096
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
21
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Dermavescent Laboratories, Inc.
  • 2. 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
  • 3. 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
  • 4. Market Market - Women's personal-care products ● Methods of shaving ● Factors of shaving ● Trends in shaving ● Economic market Monopolistic Competition
  • 5. Product Dermavescent Laboratories Products: ● Soft and Silky shaving creams/gels ● Hand and body lotions ● Facial creams ● Women’s toiletries Product Life Cycle: ● Maturity Stage
  • 6. 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
  • 7. 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
  • 8. 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 market 5. 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 volume 7. Elasticity a. Relatively Elastic
  • 9. 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
  • 10. Place ● Drug stores ● Food-and-drug stores ● Channel: Dermavescent Laboratories - Rack Jobbers-Retailers- Consumers
  • 11. Other ● Production issues ● New packaging design ● Potential outsourcing ● Competition
  • 12. Problem/Opportunity ● Primary – Whether to introduce an aerosol container ● Secondary ○ Production issues ○ Aerosol container size ○ Future of the tube package design
  • 13. Recommended Actions ● Primary – Introduce aerosol containers ● Secondary 1. Outsource production to a manufacturing company 2. Introduce both sizes' of the container 3. Stop producing tube packaging
  • 14. 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
  • 15. 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
  • 16. 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.
  • 17. Any Questions?

×