Dermavascent Concise Outline
Soft and Silky Shaving Gel
I. Summary of Facts
A. Market – women’s shaving gel
1. Methods of shaving
a. 90 million shave with a blade and razor
b. 5 million with electric shaver
2. Factors for shaving
a. Time and season of the year
b. Frequency of shaving
3. Economic market - Monopolistic competition
B. Product
1. Dermavescent Laboratories Products
a. Soft and Silky shaving gels
b. Facial creams, hand and body lotions and women’s toiletries
2. Benefits
a. Core – helps with removing body hair for women
b. Helps prevent irritated skin after shaving by using moisturizer
c. Shaving is easier with shaving gel or cream
d. Scented gels gives the shaving experience a clean smell and feeling
3. PLC - Maturity
a. Slowed growth in sales
b. Increased competition
C. Price
1. Markup Costs
a. Retailers receive a 40% margin on the suggested retail selling price
b. Wholesalers receive a 20% margin on suggested retail price
2. Suggested retail prices
a. 5.5-ounce tube: $3.95
b. 5.5-ounce aerosol: $$3.50
c. 10-ounce aerosol: $4.25
3. Manufacturing Costs
a. 5.5-ounce aerosol: $0.24
b. 10-ounce aerosol: $0.29
4. Other costs
a. $10,000 one time setup fee for line and packaging
b. $35,000 on market research of consumers
c. $30,000 cost of the test market
5. Sales in 2005
a. $3,724,000
b. 1,960,000 unit volume
6. Elasticity - Relatively elastic
D. Promotion
1. Rack Jobbers sell product through drug and food store and drug stores
2. Positioned as a high-quality women’s shaving gel
3. In-store promotions and multipack deals were scheduled during the high seasons (summer)
4. Expansibility – highly expandable
E. Place
1. Drug and food stores
2. Drug stores
3. Channel: Dermavescent Laboratories – Manufacturer – Rack Jobbers – Retailers – Consumer
4. Other
a. Production developments
1. Strained manufacturing capacity from unit sales volume for Soft and Silky Shaving Gel
2. Hand and body lotions production strained production
I. Summary of Facts
A. Market – women’s shaving gel
1. Methods of shaving
a. 90 million shave with a blade and razor
b. 5 million with electric shaver
2. Factors for shaving
a. Time and season of the year
b. Frequency of shaving
3. Economic market - Monopolistic competition
B. Product
1. Dermavescent Laboratories Products
a. Soft and Silky shaving gels
b. Facial creams, hand and body lotions and women’s toiletries
2. Benefits
a. Core – helps with removing body hair for women
b. Helps prevent irritated skin after shaving by using moisturizer
c. Shaving is easier with shaving gel or cream
d. Scented gels gives the shaving experience a clean smell and feeling
3. PLC - Maturity
a. Slowed growth in sales
b. Increased competition
C. Price
1. Markup Costs
a. Retailers receive a 40% margin on the suggested retail selling price
b. Wholesalers receive a 20% margin on suggested retail price
2. Suggested retail prices
a. 5.5-ounce tube: $3.95
b. 5.5-ounce aerosol: $$3.50
c. 10-ounce aerosol: $4.25
3. Manufacturing Costs
a. 5.5-ounce aerosol: $0.24
b. 10-ounce aerosol: $0.29
4. Other costs
a. $10,000 one time setup fee for line and packaging
b. $35,000 on market research of consumers
c. $30,000 cost of the test market
5. Sales in 2005
a. $3,724,000
b. 1,960,000 unit volume
6. Elasticity - Relatively elastic
D. Promotion
1. Rack Jobbers sell product through drug and food store and drug stores
2. Positioned as a high-quality women’s shaving gel
3. In-store promotions and multipack deals were scheduled during the high seasons (summer)
4. Expansibility – highly expandable
E. Place
1. Drug and food stores
2. Drug stores
3. Channel: Dermavescent Laboratories – Manufacturer – Rack Jobbers – Retailers – Consumer
4. Other
a. Production developments
1. Strained manufacturing capacity from unit sales volume for Soft and Silky Shaving Gel
2. Hand and body lotions production strained production