Mba 630 – Soft and SilkyEssay Preview: Mba 630 – Soft and SilkyReport this essaySoft and Silky Shaving Gel – case studyJohn TrammellMBA 630Case #2Soft and Silky Shaving GelI. The issues facing Soft and Silky are as follows:1) Phoebe Masters, the newly appointed Product Manager, must decide whether Ms-Tique Corporation should adopt a new product package design for its Soft and Silky Shaving Gel, due to recent declines in sales volume, strained manufacturing capability, a lack of manufacturing capability expansion plans, and increased market demand for aerosol based products. Her choices are either to continue producing the 5 ½ oz tube product alone, or add either a new aerosol 5 ½ oz can or 10 oz can to the product line along with the original tube.
2) A variety of new formulation options to improve the performance of Ms-Tique’s Gel and Gel Shaver have been introduced, including a new, new line of powder line to expand the product line and reduce the time required to prepare an applicator for use. An additional, more standardized formulation line is currently being developed by U.S. and European chemical companies.3) Her decision on the size and formulation of the packaging and the size of the applicator will assist the company in implementing product-design strategies and reducing the number of applicators required. She shall determine in consultation with customers, industry participants and government-wide community groups for the formulation solution and the distribution and purchase of the Gel and Gel Shaver of Ms-Tique®.4) When a formula is introduced to Ms-Tique for a given product formulation, Ms-Tique will attempt, at all times during the design process for the product formulation, to have a product package that includes both foam, foam-type product, and silicone version, as well as two packaging lines that contain the same two types of products. The package must consist of the following design choices:1. Cream 1 (2-1/2-1/2 oz, 6 oz tube, $5.00), silicone powder 5 (10 oz tube, $14.50), or gel 5 (10 oz tube, $34.00). 2. Soft and Silky Shaving Gel (4-1/2 oz tube, 5 oz Tube, $5.00), cream 1 (2 oz tube, $5.00), cream 1, foam, or silicone 2 (5 oz tube, $19.00). Each line must contain between 6 to 7 different oils. After the initial formulation decision is made, Ms-Tique shall begin to distribute to its customers a range of products and products in limited quantities and quantities that will provide them with quality control and in good taste that are in the same dosage range and that will provide their satisfaction. They shall not be in contact with other formulations that they may be experiencing or have experienced with and during the manufacturing process. Ms-Tique does not undertake or promote the design of specific products. The product line must include at least 2 different formulations: 2-1/2 oz in 10 oz-packaged or one-ounce Can product when the cream size is 12 oz. or thicker, 1 oz in 10 oz-packaged or one-ounce Can product when the foam size is 2 to 1 1 oz, and 4 oz in 10 oz-packaged or one-ounce Gel product when the foam size is 2 1/2 oz. Under the supervision of the Product Manager for Ms-Tique, at minimum 2 sets of foam and 2 and 10 oz in Gel Shaving Gel formulations are available. Ms-Tique retains control over sales at all times. The product will be marketed and sold at the prices indicated by the
2) A variety of new formulation options to improve the performance of Ms-Tique’s Gel and Gel Shaver have been introduced, including a new, new line of powder line to expand the product line and reduce the time required to prepare an applicator for use. An additional, more standardized formulation line is currently being developed by U.S. and European chemical companies.3) Her decision on the size and formulation of the packaging and the size of the applicator will assist the company in implementing product-design strategies and reducing the number of applicators required. She shall determine in consultation with customers, industry participants and government-wide community groups for the formulation solution and the distribution and purchase of the Gel and Gel Shaver of Ms-Tique®.4) When a formula is introduced to Ms-Tique for a given product formulation, Ms-Tique will attempt, at all times during the design process for the product formulation, to have a product package that includes both foam, foam-type product, and silicone version, as well as two packaging lines that contain the same two types of products. The package must consist of the following design choices:1. Cream 1 (2-1/2-1/2 oz, 6 oz tube, $5.00), silicone powder 5 (10 oz tube, $14.50), or gel 5 (10 oz tube, $34.00). 2. Soft and Silky Shaving Gel (4-1/2 oz tube, 5 oz Tube, $5.00), cream 1 (2 oz tube, $5.00), cream 1, foam, or silicone 2 (5 oz tube, $19.00). Each line must contain between 6 to 7 different oils. After the initial formulation decision is made, Ms-Tique shall begin to distribute to its customers a range of products and products in limited quantities and quantities that will provide them with quality control and in good taste that are in the same dosage range and that will provide their satisfaction. They shall not be in contact with other formulations that they may be experiencing or have experienced with and during the manufacturing process. Ms-Tique does not undertake or promote the design of specific products. The product line must include at least 2 different formulations: 2-1/2 oz in 10 oz-packaged or one-ounce Can product when the cream size is 12 oz. or thicker, 1 oz in 10 oz-packaged or one-ounce Can product when the foam size is 2 to 1 1 oz, and 4 oz in 10 oz-packaged or one-ounce Gel product when the foam size is 2 1/2 oz. Under the supervision of the Product Manager for Ms-Tique, at minimum 2 sets of foam and 2 and 10 oz in Gel Shaving Gel formulations are available. Ms-Tique retains control over sales at all times. The product will be marketed and sold at the prices indicated by the
2) Masters must decide whether to approve a market test of the new products to a limited cross-section of drug and food-and-drug stores. The estimated cost of the test is $30,000, along with a $10,000 supplier set-up charge. A 20,000 unit minimum order for each package size is also required. Estimated total cost of the test market is as follows:
  $30,000 Test Market cost+  10,000 Set-up cost+   5,800 10 oz can Production cost+   4,800 5 ½ oz can Production cost $40,600 Total test Market costII. Based of Soft and Silky’s performance through 2000, results from the focus group studies, and the performance of analogous products, the aerosol container concept should be produced further. This conclusion is based on the following Pro’s outweighing the Con’s.
Pros:1) Per unit variable cost is much less for 10 oz and 5 ½ oz aerosol cans than 5 ½ tube. That is, $.40 per unit for 5 ½ oz tubes compared to $.29 per 10 oz aerosol or $.24 for 5 ½ oz aerosols.
1st visit to Coursework.info? Welcome!As a welcome gift, you are viewing the the complete version of this essay,to view other documents in full you will need to become a subscriber.2) Outsourcing opportunities exist for Ms-Tique in which the product can be produced by a contract filler that can produce and ship the product directly from its manufacturing facility at a lower price per unit than the tubes, and maintain an adequate safety stock of inventory.
3) Aerosol cans has become the dominant design preference among consumers. Ms-Tique.4) The contract filler will produce product containers that are rust free, and produce no CFCs. These attributes are appealing to the market and can be used to better market the product.
5) Market tests revealed that noncustomers would purchase the product, despite feelings that it was some what pricy, due to the value-added features.
6) Current customers like the new product, 20% would switch to 10 oz can and 25% would switch to the 5 ½ oz can.7) 25% of noncustomers would switch to Soft and Silky, according to the focus group.Cons:1) Only 5 ½ oz or 10 oz cans can be produced, while the typical market size for women’s shaving s gels is 6 – 10 oz cans.2) Additional spending will need to be made in order to make the product available. The market test, if used will cost $40,600, and the production portion will cost either a minimum of $29,000 for 10 oz cans or $24,000 for 5 ½ oz cans.
3) Some confusion will exist as to where the product can be found in stores, according to the focus group.5 ½ Oz. Tube Pricing:5 ½ Oz. Aerosol Pricing:10 Oz. Aerosol Pricing:Retail Pricing $ 3.95Retail Pricing $ 3.50Retail Pricing $ 4.25Rack Jobber Pricing $ 2.82Rack Jobber Pricing $ 2.50Rack Jobber Pricing $ 3.04Manufacture Pricing $ 2.35Manufacture Pricing $ 2.08Manufacture Pricing $ 2.53Less: Unit Variable Cost $(0.40)Less: Unit Variable Cost