Skin Tique

SUMMARY Skin-Tique Corporation manufactures women’s personal care products. The products consist of; facial creams, hand and body lotions, and a full line of women’s toiletries. Soft and Silky was positioned as a high-quality women’s shaving gel since its introduction in 1988. Phoebe Masters, the newly appointed Product Manager for hand and body lotions at Skin-Tique, recognized that they face some problems. Also Heather Court right, the Soft and Silky Brand assistant suggested them it is time for new packaging. These factors made them think about producing a new kind of packaging. But she is not sure whether to introduce a new package design which is aerosol package (5-1/2 ounce or 10-ounce) alongside the existing tube container for the company’s Soft and Silky Shaving Gel product or not. If they decide to introduce the new design, the manager needs to decide if a test market is necessary to evaluate the new packaging to enhance their decision making capabilities. SkinTique could choose to continue only offering their current non-aerosol product. This decision would remove some uncertainty from their decision making process, but would result in numerous negative consequences. Skin-Tique’s market research has shown that many consumers prefer an aerosol product. If they fail to meet consumer expectations, they may face problem in acquiring new market share, also they may lose current market share.

There are 3 primary problems have been identified for this case study. First problem was whether to introduce a new aerosol package design instead of tube for company’s Soft and Silky Shaving Gel. Second is the decision to introduce a 5 ½ounce shaving gel or a 10 ounce for new aerosol package. Third is to decide whether they should commission a test market further. Retailers received a 40% margin on the suggested retail selling price selling for $3.95 per 5 ½ ounce tubes. Rack jobbers receive a margin of 20% off the sales price to the retailers. The sales were