Dermavescent Laboratories, Inc. Case Study
Group Case Study from Text
Strategic Marketing Problems, 13e
Summary of Facts
1) Two Primary Distribution Channels (Retailers & “Rack Jobbers”) a) Drug stores
b) Food & Drug stores
c) Rack jobbers
2) Dermavescent Laboratories, Inc.
a) Sales of $258 million (2005)
b) Sales for Soft & Silky Shaving Gel in 2005 was $3,724,000 (1,960,000 units) 3) Soft & Silky Shaving Gel introduced in 1991
4) Other women’s products such as facial creams, hand body lotion, and a full line of women’s toiletries sold under different brand names. 5) Maturity/Decline – unit sales volume for Soft & Silky Shaving Gel have slowed and then plateaued. 6) Consumer demand and price are interrelated.
7) Positioned as high-quality women’s shaving gel.
8) Added moisturizer emphasized on packages and in-store promotions and media advertising 9) Rack jobbers (wholesalers) that set up and merchandise retail displays 10) Premium priced at $3.95 for 5 ½ ounce tube
11) Sold by drug and food-and-drug stores through rack jobbers with product placement in the women’s personal-care section minimizing direct price comparison a) Retailers receive a 40% markup on the S.R.S.P (Suggested retail selling price) b) Rack jobbers receive a margin of 20% off the S.R.S.P.
Phoebe Masters, new product manager, “has to decide whether to introduce a new package design for the company’s Soft and Silky Shaving Gel. Timing for the decision is critical because frequency of women’s shaving products usage increases during the spring and summer seasons. The major questions were whether a 5.5 ounce or 10 ounce aerosol container should be introduced and whether she would approve additional funds for a market test.” The idea for the new package design is a result of the following reasons: 1) Unit sales for Soft and Silky Shaving Gel had slowed and plateaued in recent years. 2) Soft and Silky Shaving Gel sales had grown and were a strain on...
References: Kerin, R. A. (2013). Case Study Dermavescent Laboratories, Inc. In R. A. Peterson, Strategic Marketing Problems Thirteenth Edition (pp. 210-217). Boston: Pearson.
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