Should Masters decide to introduce, the 5. 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. After a review of the alternative courses of action, we recommend the introduction of the of the 10 ounce aerosol can.
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. 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.
Some cannibalism is expected, but not enough to obliterate the old product completely. Since the product has a unique niche, it has been profitable since its inception and has a vast brand loyal following.
They are women who currently use shave gels and creams and those using soap and water. 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 production line has been maxed out, and no plan to modify existing machines or add to the production line to increase capacity. The existing Soft and Silky Shaving customers have proven loyal to the brand.
Transcended should also consider going into the aerosol can business because it sounds like they have enough unique product identifiers to launch it, thereby setting themselves apart from their competitors.
Study group Tan Soup has reviewed the current situation, analysis, alternatives, and recommendations in this case report. The recommended alternative would require proper product placement, utilizing the rack Jobbers.
Recommendation and Discussion There are many factors that go into considering a new or extended product launch. 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.
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.
Alternatively, either Masters could decide against doing the test marketing research altogether and instead introduce the 5. Kerri, Whatever choices and decisions, it must continue to provide the quality product that brand loyal customers seek.
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. Kerri, Transcended knows based upon historical data and research that women look for shave gels that make it easier to shave and commonly seek products that provide moisture and reduce irritation from shaving.
While there may be some centralization of those users, the effect would be minimal to the overall profitability of the product line. Therefore, the idea of outsourcing the new product line makes sense. Soft and Silky is promoted as a premium product; therefore the cost is higher than its competitors.
Continued use of rack Jobbers would be necessary to place their products effectively in the stores. 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.
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.
The company is looking at whether or not to add to their product line of shaving gels with a shaving cream. 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.
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.
Additionally, only 25 percent of the non-customers said that they would switch to Soft and Silky with the introduction of new packaging. The analysis means that the other 55 percent would still purchase the original packaging.
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