Phoebe Masters is faced with a decision to introduce a new package design and package size for Dermavescent Laboratories. Inc. The following recommendations are suggested as possible options for Masters.
1. Introduce 5 ½ ounce aerosol container with no test market while producing 5/1/2 tubes.
2. Introduce 10-ounce aerosol container with no test market while producing 10 tubes.
3. Use the suggested test market
4. Continue producing the product in tubes.
Recommendation #1
Introducing the 5 ½ aerosol container alongside of the product in tubes without a test market can encourage a lower retail price for consumers of about $3.50. Cannibalization can occur and we believe that nearly 25% of current users would convert to 5.5 ounce …show more content…
Consumers prefer aerosol containers and competitors have already adopted the aerosol containers.
Important Facts
Before making a strategic recommendation, it is important to consider the following facts:
1. Competitors: SSSG competitors use aerosol containers for similar products. This is important to consider because SSSG already has a small share of the market therefore, it is important that they are staying ahead of the updates in the market in order increase sales.
2. Innovative: SSSG has modified their ingredient formulation in 1995 to meet consumer’s demand. This is important because it show’s consumer that Dermavescent is listening to their demands.
3. Expand Product Size: SSSG has the opportunity to expand their product size with the 10 oz containers. This can be very convenience and cost effective consumers.
4. Industry Growth: The industry is growing between 3 to 5 percent each year. This is important to consider because with the annual growth, new advances should be considered to meet the needs and wants of the …show more content…
Stable Market: 80% of women shave at least once a week and average 11 shaves per month. There is a demand for shaving products for women so companies will have business if they market and position their products correctly.
7. Customers Demand: Customers prefer aerosol containers compared to tube or plastic bottles. This is important to consider because customers are being open about what they want. As a business, it’s SSSG’s job to adjust to meet the demands of the customer.
8. Customer Loyalty: SSSG has loyal customers and if they introduce aerosol containers in an effective manner, it’s very possible that customers will like the change therefore, increasing sales and customer satisfaction.
9. Existed since 1991: SSSG is an existing brand that consumers are familiar with. With their 15-year history, they are seen as a trusted brand. This is important to consider because in their history the developed a strong customer loyalty who will provide support to the brand.
10. Pricing: The products of SSSG are premium priced. This is important when making a decision because it’s not logical to price products high with outdated packaging. The tube is considered as an outdated type of packaging and with 5 ½ ounces in a tube, consumers are likely to notice that different as they start to compare with