Slanket Goes Abroad

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I. Situational Analysis With the entry of the Snuggie to the sleeved blanket market in 2008, Slanket found itself facing direct competition, backed by a $10 million marketing budget. Snuggie launched an aggressive direct-response advertising campaign. Slanket had virtually no marketing plan or strategy to compete. The company watched the rise of the Snuggie and did little to combat it, or even to take advantage of its popularity. How can Slanket re-capture some of the market that the Snuggie has taken away? The Snuggie has captured a specific market segment and established itself as a price leader in the sleeved blanket industry. Snuggie has used several means of marketing to promote direct traffic and sales to its website, where it sells directly to the customer for a higher profit margin. Slanket has product placement agreements with Sky Mall and QVC and sells direct on its website. II. Apparent Issue Some of the issues Slanket is faced with include, a lack of sales channels and visibility to a broad target market. In 2008 Slanket had a $2000 marketing budget and was promoting the Slanket through local radio, newspapers, and giveaways. In 2008, Slanket sold only 30,000 units out of 240,000 sold, on its direct sale website, where it realizes a 74% profit margin vs. QVC, at 37%. (Deighton & Kornfeld, 2010) III. Relevant Facts Relevant Facts Evaluation 2006 - Slanket’s initial distribution channel is an e-commerce website - Slanket would make the highest profit margin selling direct through website sales. +/- 2006 – Slanket broke even the first day the website went live - Slanket realized its early sales due to a post on, an online community where members can share content. (Deighton & Kornfeld, p.2, 2010) + 2006 – Slanket began promoting the product through online word-of-mouth with a zero marketing budget - Hours were spent compiling mailing

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