Slanket: Responding to Snuggie’s Market Entry
Slanket: Responding to Snuggie’s Market Entry Case Study and Marketing Analysis
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Introduction In 2003, Gary Clegg decided to start “a little project where he could make some money,” (Deighton & Kornfeld, 2010, p. 1) and began selling a wearable blanket with sleeves called “the Slanket”. Utilizing television and print marketing channels such as QVC, an at-home shopping network, and SkyMall, a retail catalog exclusive to airlines, the Slanket became a success with $5 million in sales by its third year of operation. Projections for increased revenues and profitability for the 2008 holiday seemed promising until a new competitor, “the Snuggie” entered the market in October and gained instant popularity.
The Snuggie’s $10 million advertising budget allowed for a slew of late-night infomercials resulting in instantaneous brand awareness. Social Media websites such as Facebook and Twitter, as well as video-sharing websites, such as YouTube, were all displaying and ranting about this new phenomenon. Celebrities, college students and the general population were seen wearing the Snuggie, plastering the airwaves and internet in creative new ways and showcasing the product’s wear-ability in various social venues and environments. The Slanket fell short in comparison to the overwhelming demand of the Snuggie and consumers were undoubtedly more likely to associate the “wearable blanket” with the Snuggie.
It became apparent if the Slanket was going to survive the major disruption of this new competitor, Gary Clegg and his company needed to revamp their current marketing strategy. This case study will reflect the relevant issues and facts regarding the Slanket, a market analysis, and marketing plan options and
“I submit this paper is entirely my own work and agree it may be submitted to Turnitin for the purpose of checking for plagiarism and further it may be maintained on the Turnitin database in order to check for future plagiarism.”
Introduction In 2003, Gary Clegg decided to start “a little project where he could make some money,” (Deighton & Kornfeld, 2010, p. 1) and began selling a wearable blanket with sleeves called “the Slanket”. Utilizing television and print marketing channels such as QVC, an at-home shopping network, and SkyMall, a retail catalog exclusive to airlines, the Slanket became a success with $5 million in sales by its third year of operation. Projections for increased revenues and profitability for the 2008 holiday seemed promising until a new competitor, “the Snuggie” entered the market in October and gained instant popularity.
The Snuggie’s $10 million advertising budget allowed for a slew of late-night infomercials resulting in instantaneous brand awareness. Social Media websites such as Facebook and Twitter, as well as video-sharing websites, such as YouTube, were all displaying and ranting about this new phenomenon. Celebrities, college students and the general population were seen wearing the Snuggie, plastering the airwaves and internet in creative new ways and showcasing the product’s wear-ability in various social venues and environments. The Slanket fell short in comparison to the overwhelming demand of the Snuggie and consumers were undoubtedly more likely to associate the “wearable blanket” with the Snuggie.
It became apparent if the Slanket was going to survive the major disruption of this new competitor, Gary Clegg and his company needed to revamp their current marketing strategy. This case study will reflect the relevant issues and facts regarding the Slanket, a market analysis, and marketing plan options and
References: Burnham, E. (2009, November 20). . Slanket Inventor Gets Cozy With Success. Retrieved from www.bangordailynews.com Deighton, J., & Kornfeld, L. (2010). Slanket: Responding to Snuggie’s Market Entry. Boston, MA: Harvard Business School Publishing. Newman, A. A. (2009, February 26). Snuggie Rode Silly Ads to Stardom Over Rivals. The New York Times. Retrieved from http://www.nytimes.com www.compete.com. (n.d.). www.compete.com www.consumersearch.com/as-seen-on-tv/the-slanket. (n.d.). www.consumersearch.com www.skymall.com/shopping/detail.htm.pid=102531784. (n.d.).