Soft and Silky Marketing Strategy Target Market - women aged 25-45 Marketing Strategy - Price Leader: Soft and Silky is a price leader in its category ( women's shaving gel) Marketing Objectives - Projected sales with cannibalization significantly higher than the cost difference to produce the 5 oz or 10 oz gel containers Product: 5.5 oz and 10 oz aerosol shaving gel for women Product Strategy - Product Development - if you consider Soft and Silky's offerings new, but this is an existing market Product Goals: Customer satisfaction by providing a shaving gel that has a lotion scent, reduces skin irritation, moisturizes and a CFC-free spray can Product Tactics: During the summer months, when shaving is more popular because women wear shorts/skirts, etc. in warmer weather, we will employ packaging tactics to sell more gel from one pack) Pricing – It is competitive for the 5.5 oz aerosol and tube ($3.50 and $3.95 respectively) and the 5.5 oz aerosol 10 ounces ($4.25). Pricing Strategy – Soft and Silky has a premium pricing strategy and they are doing it well, but over the last four years or so sales have tapered off. Price Targets – Sales are up 3-5%, but we believe we can do better; also maintain margins. Pricing Tactics – 20% margin for retailer and 40% margin for manufacturer, keep same margin, take away from net sales. Promotion – Advertising Promotional Strategy – Newspaper advertising, in-store displays Promotion Objectives – Encourage women to try new style Promotional Tactics: Pull strategy will be used because we are spending a lot on advertising to increase consumer demand with the new spray can. The push strategy is used to gain and maintain shelf space in a particular business. Increase advertising up to 35% of sales. Channel – Indirect Channel Strategy – Shaving gel is a must buy product for most women and they do not treat it as a convenience product. Adaptability is also a key, we need to place the aerosol gel where consumers can find it easily to purchase the product. Channel Objectives - To have an intermediary (resellers) to distribute our product. Channel Tactics - Contact our primary shipper and maintain business with them ProblemSoft and Silky need to figure out whether to use shaving gels in 5.5 oz spray cans or 10 oz spray cans instead of the current tube gels. Alternatives#1 – Pursue 5.5oz Aerosol #1 2 - Pursue 10oz aerosols