Slanket: Responding to Snuggie’s Market Entry

Topics: Marketing, Marketing research, Strategic management Pages: 8 (2430 words) Published: April 4, 2012
Slanket: Responding to Snuggie’s Market Entry
Case Study and Marketing Analysis

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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 recommendations to increase brand awareness, market share and revenue. Apparent Issues

Based on analysis of the case study, the following are the apparent issues (symptoms ) which contribute to the real (main) issue: * Competition: The Slanket is experiencing decreased sales due to the Snuggie’s entry into the market in October 2008 (Deighton & Kornfeld, 2010). * Pricing: Pricing of the Slanket is considerably more than the Snuggie and consumers perceive the value of the Slanket out of line with the price * $32.99 flat rate price for an adult Slanket on SkyMall * $9.99-$19.99 variable price for a Snuggie on their official website * Product: Perception of the Slanket by consumers is it is an imitator of the Snuggie when in fact it was the original. “By November 2008, Snuggie, not Slanket had become the brand consumers associated with sleeved blankets (Deighton & Kornfeld, 2010, p. 1). * Promotion: As a small company with a lean marketing budget was responsible for less brand awareness and their competitor, the Snuggie was able to gain market share through expensive, Direct-Response Television (DRTV) advertising (Deighton & Kornfeld, 2010, p. 4). * Placement: Limited infiltration into the market, utilizing only select print advertisements (SkyMall Magazine) and QVC (At-home shopping television network) left valuable market share to be taken by competitors(Deighton & Kornfeld, 2010, p. 3). 10 Most Important Facts

Relevant Facts

FACTS| +/- or ?|
The Snuggie is viewed as the trailblazer and the Slanket is viewed as a knock-off (Newman, 2009)(ny times). | -| Consumers perceive the quality and comfort of the Slanket to be superior to the Snuggie (, n.d.).| +| Steadily increasing revenue since inception with sales over $7 Million in 2009 (Burnham, 2009)| +| AllStar Marketing Group, a...

References: Burnham, E. (2009, November 20). . Slanket Inventor Gets Cozy With Success. Retrieved from
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 (n.d.). (n.d.). (n.d.).
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