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Vivian NguyenMarketing 489

W 19:00 21:45February 22, 2012

Parvaderm Corporation

I. Summary of Facts

A. Market1. Retailersa. Drugstoresb. Grocery stores

2. Consumersa. Women that cares about their hygiene, skin, and looks

3. Economic Marketa. Perfect Competitionb. There are many buyers and sellers, plenty of substitutes

B. Product1. High-quality womens shaving gel

a. Tubed to aerosol shaving get

b. Womens personal care products2. Benefitsa. Core- Hygieneb. Secondary-

1.) Hair removal2.) Skin moisturizing and nourishment3.) Improve self-image

3. PLC-a. Growthb. New competitors/ peak profit margins

C. Price1. Premium-priced2. Retail- $3.95 per 5 ounces3. $3,724,00 sales in 2004 with a 1,960,000 unit volume4. Cost of goods sold(including sales): $784,0005. Assignable costs (Brand contribution)

a. Advertising and promotion costs: $1,154,540b. Overhead and administrative costs: $421,560

6. Elasticity relatively elastic to relatively inelasticD. Promotion

1. Customer franchise2. value added features

a. no chlorofluorocarbons that is harmful for the ozoneb. no rust bottom of container

3. Package design4. Newspaper advertising5. Media advertising6. In-store promotions7. Point of purchase display8. Expansibility- expansible

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E. Place1. United States2. Channel: Producer-> Wholesalers -> Retailers -> Consumers

F. Other1. Over 80% of women shave at least once per week

2. Approximately 90 million women (age 13 and over) shave with a blade and razor3. Soft and Silky Shaving Gel ingredients include : lanolin, vitamin, aloe, vitamin E

II. Problem/OpportunityA. Primary What type of changes should be made to the productB. Secondary

1. Whether or not Parvaderm should implement new changes to the package design2. Should they have a 5 oz or 10oz aerosol container3. Should they put additional funds to market testing4. There is a large market for womens hair removal

III. Recommended ActionA. Primary According to the preliminary market test findings ( although people liked the new

changes) This is a large investment so it is recommended that they do further market testing todetermine whether the new design would be profitable

B. Secondary1. Use market testing results for advantages in decision making of changes to the current

product