Marketing Numdies

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The introduction of the new product “ Nundies” by Advanced Materials Inc. is a transition from a foam fabricator manufacturing business to a proprietary medical and consumer products. •Nundies is a true departure from the ordinary product offered by Advanced Materials, Inc. Thinking outside the box is not always best, as the new product “Nundies” will lead the company into a field where they lack experience. AMI is not great or experienced at selling, marketing, or logistic control. •Nundies is a one-time use, panty less panty that adheres to the inside inseam of a woman’s pants. The value proposition of Nundies is represented by ultra-thin nylon and lycra liners designated for women who dislike panty lines and do not like to wear panties or thongs. The new product helps women maintain a degree of protection when they decide not to wear underwear. •Six percent of women 18 years of age and older in the United States would prefer to wear no underwear at all; they represent a market of 960 million dollars per year; •Nundies is a contemporary concept and does not face any direct competition; however there are no-seam panties and panty smoothers which represent competition from substitutes. We cannot use market share complements (sales volume) as an indicator of performance. •The target market of Nundies is represented by women between the ages of 15 and 6o years old, which represents 0.23 percent of the total population; important to notice is 80.83 percent of this population is concentrated between the ages of 25 and 54. •The two important factors in this case are production restraints (20,000 packages annually) and the very high marketing expenses necessary to move the products off the shelf. •The cost for product development, marketing and launching was $800,000. The return on investment after the first year is 2.49 percent. Advanced Materials Inc. (Nundies)

Income Statement
For month ended December 31, 2007
Sales$7,00 *11098$...
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