Soft and Silky Shaving Gel Essay

1894 Words Oct 30th, 2005 8 Pages
Problem The Product Manager, Phoebe Masters, at Ms.-Tique Corporation must decide if and how the company will introduce an aerosol can package for its Soft and Silky Shaving Gel, including a determination of product size (5.5 or 10 oz.) and location (personal care or toiletries). Furthermore, the manager needs to decide if a test market is necessary to evaluate the new packaging.
Strategic Issues
Product – Soft and Silky Shaving Gel (SSSG), a women's shaving product that contains moisturizers, is currently packaged in a 5.5 oz. plastic tube and is located in the women's personal-care section of drug and food-and-drug stores. Most competitors (men and women shaving products) package their products in aerosol cans and offer them in the
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Recommendation Alternative 2 is the suggested recommendation. An aerosol package should be introduced for Softy and Silky shaving Gel since a sizable portion of customers demand it, current product life is maturing, in-house production capacity of tube configuration is limited, and the unit cost and per ounce cost for the aerosol product is lower than the tube packaging. The 10 oz. aerosol can should be offered in the toiletry section of stores along side competitor brand. This product will be competitively prices at $0.43 per ounce and will be located in a section of the store where new customers expect it to be. Also, it is reasonable to believe that customers will use slightly more product per application if they are dispensing it from a large container (10 oz. versus 5.5 oz.), thus potentially increasing sales volume. The 5.5 oz. tube should continue to be offered in the personal care section of the store since existing customers are extremely loyal to this product and expect to find it there. By continuing to offer the tube configuration in a different section of the store from the aerosol can, the product may retain its premium image. Furthermore, the 5.5 oz. tube maintains the highest per ounce contribution and offering it side-by-side with the aerosol can would allow for easier price comparison. With this strategy, there will be low relative cannibalization of the 5.5 oz. tube and high adoption of the 10 oz. aerosol can by non-customers. Of the

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