Parvaderm Case Analysis

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Case Number 1: Parvaderm Corporation Case analysis by Skyler Mandel Soft and Silky Shaving Gel is marketed by the Parvaderm Corportation. This company manufactures women’s personal-care products with sales of $258 million in the year o 2004. In 2005, Phoebe Masters was announced as the newly appointed product manager for hand and body lotions. The company as well as the new product manager have a major decision at hand to deal with that will determine the future for Parvaderm. The decision must be made whether a 5 ½ ounce or a 10 ounce aerosol container should be introduced and whether funds for a test market should be approved for one of these choices. The products of Parvaderm are sold in drug and food retailers through rack jobbers. The rack jobbers receive a 20% margin of the retailer’s price. Retailers will gain a 40% margin on the suggested retail price. The company has been selling is popular brand of women’s shaving gel named “Soft and Silky Shaving Gel” in tube form since 1991. Sales of the shaving gel were $3,724,000 in 2004 equaling 1,960,000 units. Earlier on in the company’s history, they could not afford to put aerosol technology with their soft and silky shaving gel and now have to opportunity to do so. Aerosol is becoming a prominent container form for shaving gels and it is a way for the company to stay competitive as it is known as one of the top players in the marketplace. Marketing research was done to find out how effective adding a new product line aerosol would be for the company. One major question is would the current and new customers be positively receptive to the new package? Both groups were unanimously in favor of the introduction of an aerosol can and the 10 oz. was favored over a 5 ½ because it would require fewer purchases for the consumer. Another question asked was at what rate would current customers convert

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