Marketing Management: Skin-Tique Corporation
Marketing Management
Skin-Tique Case
SKIN-TIQUE CORPORATION Synopsis In January 2003, Phoebe Masters, the newly appointed product manager for hand and body lotions at Skin-Tique Corporation, is faced with the decision whether to add a 5-1/2 ounce or 10-ounce aerosol package alongside the existing tube container of the firm’s Soft and Silky brand of women’s shaving gel. The apparent decision involves the determination of whether to conduct a market test on the two aerosol packages to determine which package will be most profitable when sold with the tube container. However, as the case unfolds, the whole matter of an aerosol container being a viable line extension at all emerges to cloud the decision.
Marketing Management
Skin-Tique Case
A. Based on Soft and Silky’s sales performance through 2002, results from the focus group studies, and the performance of analogous products, should the aerosol container concept be pursued further? 1. YES 1. S&S’s unit sales volume plateaued growth suggests that the brand might be in the mature stage of its cycle. Perhaps a packaging change is necessary to stimulate growth since aerosols have become so popular and the women’s shaving market is growing at a rate of 3 to 5 percent annually since 1994. But, from where will the source of volume growth come? Former users of soap and water; S&S; or users of competitor creams and gels? Focus group studies indicate that shaving cream users like the aerosol can — 1/4 said they would switch over to S&S’s aerosol can, irrespective of can size. It is unlikely that current S&S users will purchase more (at least there is no data to support a counter-argument). A marketing research firm studied case studies in which marketers of men’s shaving cream had introduced a new package. As shown in case Exhibit 5, the research firm projected a unit (ounces) increase in sales volume for the S&S brand (S&S was projected to sell 1,953,668 5-1/2 ounce tubes in 2003 or 10,745,174 ounces. All
Skin-Tique Case
SKIN-TIQUE CORPORATION Synopsis In January 2003, Phoebe Masters, the newly appointed product manager for hand and body lotions at Skin-Tique Corporation, is faced with the decision whether to add a 5-1/2 ounce or 10-ounce aerosol package alongside the existing tube container of the firm’s Soft and Silky brand of women’s shaving gel. The apparent decision involves the determination of whether to conduct a market test on the two aerosol packages to determine which package will be most profitable when sold with the tube container. However, as the case unfolds, the whole matter of an aerosol container being a viable line extension at all emerges to cloud the decision.
Marketing Management
Skin-Tique Case
A. Based on Soft and Silky’s sales performance through 2002, results from the focus group studies, and the performance of analogous products, should the aerosol container concept be pursued further? 1. YES 1. S&S’s unit sales volume plateaued growth suggests that the brand might be in the mature stage of its cycle. Perhaps a packaging change is necessary to stimulate growth since aerosols have become so popular and the women’s shaving market is growing at a rate of 3 to 5 percent annually since 1994. But, from where will the source of volume growth come? Former users of soap and water; S&S; or users of competitor creams and gels? Focus group studies indicate that shaving cream users like the aerosol can — 1/4 said they would switch over to S&S’s aerosol can, irrespective of can size. It is unlikely that current S&S users will purchase more (at least there is no data to support a counter-argument). A marketing research firm studied case studies in which marketers of men’s shaving cream had introduced a new package. As shown in case Exhibit 5, the research firm projected a unit (ounces) increase in sales volume for the S&S brand (S&S was projected to sell 1,953,668 5-1/2 ounce tubes in 2003 or 10,745,174 ounces. All