BUA417 Marketing Management Dermavescent Laboratories Case Study

1814 WordsMar 7, 20158 Pages
Dermavescent Laboratories, Inc. Case Study Analysis BUA 417 Marketing Management Date 2015 Abstract A manufacturer of women’s shaving gel, Dermavescent Laboratories has enjoyed market success since the spring of 1991. In 2005, their sales were over $3 million, and according to market research and studies, a potential size change and package update could provide additional income opportunity. Study group Tan Soup has reviewed the current situation, analysis, alternatives, and recommendations in this case report. (Kerin, 2009) Keywords: Dermavescent Dermavescent Laboratories, Inc. Case Study Analysis Strategic Issues and Problems Dermavescent Laboratories manufacturers a woman’s shaving gel known as Soft and Silky Gel. The product…show more content…
Alternatively, either Masters could decide against doing the test marketing research altogether and instead introduce the 5.5 ounce can or the 10 ounce can while continuing to produce the 5.5 ounce tube of the Soft and Silky gel. The 70/30 probability forecast analysis from the market research study indicates the following: Should Masters decide to introduce, the 5.5 ounce can while continuing to produce the 5.5 ounce tubes she could expect an approximate net financial increase of $80,270.06~. (Exhibit 3) Conversely, if Masters decided to introduce the 10 ounce can while continuing to produce the 5.5 ounce tube of gel she could expect an approximate net financial increase of $86,244.36~. (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. The anticipated gross profit is over $2.9 million. (Exhibit 5) Courtwright’s proposal has been summarized in Exhibit 7. Recommendation and Discussion There are many factors that go into considering a new or extended product launch. The market research and surveys have provided an excellent indication as to consumer’s preferences. After a review of the alternative courses of action, we recommend the introduction of the of the 10

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