(Case Study)
I. Time Context: January 5, 2001
II. View Point: Phoebe Masters, the newly appointed Product Manager for hand and body lotions at Ms. Tique Corporation.
III. Central Problem: The introduction of 5 ½ ounce or 10 ounce aerosol container and approval of its additional funds for the market test.
Causes: * Unit sales volume for Soft and Silky Shaving Gel had slowed and then plateaued in recent years. * The growth of Soft and Silky Shaving Gel sales had overburdened production capacity and scheduling. * The Company had no manufacturing capacity expansion for the coming 3 years. * Aerosol packaging had become the dominant design for women’s shaving creams and gel.
Effect: *
IV. Objective: Short Term: * To introduce the new package design to the market via market test * To make the aerosol container as their new packaging design * To cannibalize the tube packaging * To increase their overall sales Long Term: * To be the leading company worldwide that offers women’s shaving products *
V. Areas of Consideration: Strengths * Soft and Silky Shaving Gel was positioned as a high quality women’s shaving gel. * The company’s positioning strategy was successful in differentiating its product from existing men’s and women’s shaving gel (1986). * The positioning strategy also minimized direct price comparison which is an advantage for the company since Soft and Silky Shaving Gel was premium priced.
Weaknesses: * The company’s shipping records indicated that the product’s fill rate had dropped, leading to out of stock situations and lost sales. * They have no manufacturing capacity extension plans for the coming 3 years. * The company does not have the technology to produce aerosol containers.
Opportunities: * Aerosol packaging had become the dominant design for women’s shaving cream and gel.
Threats: * The market for