Skin-Tique Corporation Case
1. Skin-Tique Corporation manufactures women’s personal care products. The products consist of; facial creams, hand and body lotions, and a full line of women’s toiletries. Soft and Silky was positioned as a high-quality women’s shaving gel since its introduction in 1988. However Soft and Silky’s unit sales volume have slowed and plateau in the recent years. If we do nothing, sales forecast shows a .32 percent decrease in unit sales for the following year. Manufacturing is at capacity, due to the growth in the entire line of hand and body lotions also the Soft and Silky’s shaving gel sales. There aren’t plans to increase manufacturing capacity for the next three years.
Skin-Tique’s market share is in a state of decline due to unit sales of Soft & Silky shaving gel slowing and then maintaining a plateau over the past few years, while the category is still growing. Sales of Soft & Silky shaving gel have overburdened production capacity and scheduling, leading to the inability to supply stock quantities requested by retailers, which in-turn led to out-of-stock situations and lost sales for all supply chain partners. A new offering into the existing market is likely to address the problem of reducing market share. The aerosol can is dominant packaging design as of 2000. The results of the focus group found that ¼ of the non-customers would switch over to the aerosol can. That 20 percent of Soft and Silky Shaving Gel customers said they would convert to the 10-ounce can and 25 percent said they would convert to the 51/2 –ounce can. The focus group found that customers and non-customers both favored the aerosol can. The pricing was acceptable and actually favored by current customers and non-customer ...