Assignment: Brand Case Analysis: Parvaderm Corporation
Assignment: Brand Case Analysis: Parvaderm Corporation
Overview
Parvaderm Corporation is a manufacturer of women’s personal care products. Their full line of products would include hand and body lotions, facial creams, and a full line of women’s toiletries that are sold under different brand names. The company’s products are currently sold in drug and drug-and-food retailers through rack jobbers (wholesalers that market and set up the product displays in the stores). These rack jobbers receive a 20% margin of the retailer’s price. Retailers receive a 40% margin on the suggested retail price.
The product itself is marketed as a high quality women’s shaving gel. As such, the product includes some value added components such as aloe (original component), lanolin, and vitamin E (added in 1995 due to market input).
The company has been selling is popular brand of women’s shaving gel named “Soft and Silky Shaving Gel” (in tube form) since 1991. Sales of the shaving gel were $3,724,000 in 2004; equaling 1,960,000 units.
A new packaging of the company’s shaving gel into an aerosol container (in either a 5.5 oz. or 10 oz. can) has been suggested by an assistant to the current marketing manager due to the following reasons: * Current product sales figures show that the Soft and Silky Shaving Gel is in the maturation and saturation stage of its product life cycle. * The growth over the years of Soft and Silky Shaving Gel and its other products have strained the company’s capacity maintain adequate stock levels to satisfy demand. This situation has led to out of stock situations and lost sales. * The company has no plans to expand production capabilities over the next 3 years. * The market indicates that the aerosol packaging of women’s shave gel had become the popular and therefore the most dominate design.
The question facing the firm is whether or not to introduce the new packaging of its long time popular product; Soft and Silky Shaving Gel. The
Overview
Parvaderm Corporation is a manufacturer of women’s personal care products. Their full line of products would include hand and body lotions, facial creams, and a full line of women’s toiletries that are sold under different brand names. The company’s products are currently sold in drug and drug-and-food retailers through rack jobbers (wholesalers that market and set up the product displays in the stores). These rack jobbers receive a 20% margin of the retailer’s price. Retailers receive a 40% margin on the suggested retail price.
The product itself is marketed as a high quality women’s shaving gel. As such, the product includes some value added components such as aloe (original component), lanolin, and vitamin E (added in 1995 due to market input).
The company has been selling is popular brand of women’s shaving gel named “Soft and Silky Shaving Gel” (in tube form) since 1991. Sales of the shaving gel were $3,724,000 in 2004; equaling 1,960,000 units.
A new packaging of the company’s shaving gel into an aerosol container (in either a 5.5 oz. or 10 oz. can) has been suggested by an assistant to the current marketing manager due to the following reasons: * Current product sales figures show that the Soft and Silky Shaving Gel is in the maturation and saturation stage of its product life cycle. * The growth over the years of Soft and Silky Shaving Gel and its other products have strained the company’s capacity maintain adequate stock levels to satisfy demand. This situation has led to out of stock situations and lost sales. * The company has no plans to expand production capabilities over the next 3 years. * The market indicates that the aerosol packaging of women’s shave gel had become the popular and therefore the most dominate design.
The question facing the firm is whether or not to introduce the new packaging of its long time popular product; Soft and Silky Shaving Gel. The
Cited: Kerin, Roger A., and Robert A. Peterson. Strategic marketing problems: cases and comments. 12th ed. Alexandria, VA: Prentice Hall, 2010. Print. First in Show Pet Foods, IncPage 118