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Dermavescent Laboratories

In: Other Topics

Submitted By jper007
Words 455
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Memorandum

From: James Perry
To: Steven Clinton
Date: February 11, 2014

Recommendation: The introduction of a 5.5-ounce aerosol can is the best choice. It will provide Dermavescent Laboratories Inc. with the highest contribution per ounce of $.262.

Problem Statement: Should Dermavescent Laboratories Inc, a manufacturer of women’s shaving gels, introduce a new package design in the form of a 5.5-ounce or 10-ounce aerosol can in addition to the existing 5.5-ounce tube?

Facts: * Brand Information * Dermavescent Laboratires Inc had total sales of $258 million in 2005. Of these sales, $3,724,000 of which came from Soft and Silky Shaving Gel. * They offer facial creams, hand and body lotions and women’s toiletries. * Soft and Silky was introduced in 1991, offering a high quality shaving gel for women. * They are distinguished from men’s shaving gel allowing for no direct price comparison. * Their current price for a 5.5-ounce tube is $3.95. * Research and Attitudes Toward Shaving * Soap and water is the most popular way to remove hair followed by: shaving creams/gels and electric razors. * Women desire a product that moisturizes, reduces irritation and makes shaving easier when shopping for a shaving gel. This led Soft and Silky to add 3 moisturizers in 1995. * It is estimated that there are 90 million blade users with only 5 million electric shaver users. * Eighty percent of women shave once a week. They also shave 9 times the amount of skin than men do. * Women perceive shaving as a necessary evil. * Market Size and Competitive Products * The total market size of wet shaving products in the USA in 2005 was $550 million. There has been a growth from 3-5% yearly from 2000. * In 1999 many new products were introduced as “women’s only” products. Major…...

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