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Dermavescent Laboratories, Inc. Case Study
Group Case Study from Text
Strategic Marketing Problems

Dermavescent Laboratories, Inc. Marketing Management Case Study
Problem Identification
Phoebe Masters, new product manager, “has to decide whether to introduce a new package design for the company’s Soft and Silky Shaving Gel. The major questions were whether a 5.5 ounce or 10 ounce aerosol container should be introduced and whether she would approve additional funds for a market test.” (pg. 210) “Timing is critical because the incidence of women’s shaving would increase during the spring months and reach its peak during the summer months.” (pg. 210) The idea for the new package design is a result of the following reasons: 1) unit sales for Soft and Silky Shaving Gel had slowed and plateaued in recent years. 2) Soft and Silky Shaving Gel sales had grown and were a strain on manufacturing capacity. (All Soft and Silky product line products have grown—stressing manufacturing capacity.) 3) Dermavescent Laboratories, Inc. had no manufacturing capacity expansion plans for the next three years. 4) Aerosol packaging had become the dominant design for women’s shaving creams and gels.
Industry, Market, and Buyer Analysis
The market for women’s shaving cream and gels has been small compared to men’s shaving cream and gels. Industry sources estimate the U.S. dollar value of women’s “wet shaving” products to be about $550 million in 2005, at manufacturers’ prices and sales growth has been between 3 and 5 percent per year since 2000. Moreover, razors and blades account for 77 percent of women’s wet shaving products and shaving creams and gels account for 23 percent of annual sales. Historically, there were few women-only shaving products—but, since 1999, women’s shaving implements have taken a new place on the market, with improved advertising, promotion,

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