. Dermavescent Laboratories I.C.Summary of Facts A. Market - Women's personal-care products 1. Methods of shaving a. Electric shavers b. Blade and razor shavers 2. Factors of shaving a. Seasons of the year b. Frequency of shaving 3. Trends in shaving a. Attitudes towards shaving b. Market size 4. Economic market a. Monopolistic Competition b. Many sellers with a range of prices B. Product 1. Dermavescent Laboratories Products a. Soft and Silky shaving gels b. Hand/Body lotions, facial creams and women’s toiletries 2. Benefits a. Core - Assist with removing hair b. Protection against skin problems and razor bumps c. Limits dry skin by using moisturizer d. Makes shaving easier by using a sticky thick cream e. Some gels are scented, which allows for a clean smell and feel 3. PLC a. Maturity Stage b. Slowed growth in sales with intensified competition Price 1. Retailers receive a 40% margin on the suggested retail selling price a. 5.5-ounce tube: $3.95 * 40% = $1.58 ($3.95 - $1.58 = $2.37) b. 5.5-ounce aerosol: $3.50 * 40% = $1.40 ($3.50 - $1.40 = $2.10) c. 10-ounce aerosol: $4.25 * 40% = $1.70 ($4.25 - $1.70 = $2.55) 2. Wholesalers receive a 20% margin on suggested retail price a. 5.5-ounce tube: $3.95 * 20% =$0 .79 ($3.95 - $.79 = $3.16) b. 5.5-ounce aerosol: $3.50 * 20% = $0.70 ($3.50 - $.70 = $2.80) c. 10-ounce aerosol: $4.25 * 20% =$0.85 ($4.25 - $.85 = $3.40) 3. Variable Costs a. 5.5-ounce tube suggested retail price: $3.95 b. 5.5-ounce aerosol suggested retail price: $3.50 c. 10-ounce aerosol suggested retail price: $4.25 4. Allocated costs a. $35,000 on market research focus groups b. $10,000 one time setup fee for line and package costs c. $30,000 costs on test market 5. Manufacturing Costs
2. a. 5.5-ounce aerosol: $0.24 b. 10-ounce aerosol: $0.29 6. Sales of $3,724,000 in 2005 with a 1,960,000 unit volume 7. Elasticity a. Relatively Elastic b. Customers settle for the lowest price D. Promotion 1. Product placement from rack jobbers 2. In-store...