Marketing Management Dermavescent Essay Example

new packaging. This means that the remaining 55 percent would still purchase the original packaging. Additionally, only 25 percent of non-customers stated that they would switch to Soft and Silky with the introduction of the new packaging (Kerri, 2009). Based on these results, Masters needs to explore alternative options to determine if implementing the test market is in the best interest of the product line.

Alternatively, Masters could choose not to conduct the test market research at all. Instead, she could introduce either the 5.5 ounce can or the 10 ounce can while continuing to produce the 5.5 ounce tube of Soft and Silky gel. The 70/30 probability forecast analysis from the market search study provides insights into these options. If Masters decides to introduce the 5.5 ounce can while continuing production of the 5.5 ounce tubes, she can expect a certain outcome. If she decides to introduce the 10 ounce can while continuing production of the 5.5 ounce tubes, another outcome can be anticipated.The text suggests that by introducing a 10 ounce aerosol can, Translucent can expect a net financial increase of approximately $86,244.6 (Exhibit 4). However, they also have the option to continue production on their original packaging and introduce new packaging later. The anticipated gross profit for this option is over $2.9 million (Exhibit 5). Courtship's proposal is summarized in Exhibit 7. After considering different courses of action, it is recommended to introduce the 10 ounce aerosol can as it provides the highest financial impact with minimal variable costs of $10,000 for supplier setup (Exhibit 6). Translucent can then monitor demand and potentially introduce a 5.5 ounce product within 12 to 18 months.

Proper product placement using rack Jobbers and marketing in female-focused magazines and local newspapers can generate excitement around the new product size and features. The existing Soft and Silky Shaving customers have shown brand loyalty.According to Tan Soup, the centralization of users would have minimal impact on the overall profitability of the product line. They suggest launching the product before the peak shaving season and highlight that the 10 ounce aerosol offers the highest margin and return on investment for the company (Kerri, 2009).