2) Summary of the key points from the case (approx. 4-5 key points)
-Snuggie’s pricing methodology and viral infomercial marketing (“comfort food of the clothing line”) has overcome its lower-quality product and enthralled the public as well as purchase influencing reference groups and opinion leaders.
-Clegg’s business model was well-defined in its early stages; consistent CSR to African clean-water initiative, personalized and customer-oriented service (handwritten note),
-In the long-term, Slanket’s sustainability is ensured by official partnerships (NFL, MLB, Skymall), with market leaders in various industries that complement Slanket’s positioning.
-However, Snuggie’s popularity has been projected as the whimsical impulse purchase of consumers in a bad economy (fad) and subjected to mockery of TV idols (Bill Maher).
- Clegg refuses to put trust in infomercial marketing model and the concept of costs hidden in shipping charges, but he can emulate Snuggie’s strategy of creating foot traffic in social media.
3) First mover in a market has the opportunity to capture market share and gain economies of scale, effectively dominate their pioneered niche. Second movers enter the market having observed and learned from mistakes of the first-mover. They hold a myriad of opportunity to differentiate themselves from the existing perceived ‘monopoly’ through the likes of price point, ease of distribution, or stellar client service relationships. Second-movers also don’t have to incur high R&D costs, and their marketing is focussed more on differentiators from the first-mover, rather than educating consumers about the product