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Daily Defense Shampoo

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by

Danielle Sherman

on 5 May 2014

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Transcript of Daily Defense Shampoo

Daily Defense Shampoo
Market Strategy
Our focus will be to re-introduce our product.

Complete product package makeover
label re-design
color change
bottle shape
upgrade our current shampoo formula
Re-position from the value market to a mid-range markets.
Expanding our distribution to direct retailers and salons.

Marketing Strategy
Price
Price comparable to competitors

Increase in price to compensate for volume increase & pure argan oil

Wholesalers $1.87

Retailers approximately $3.14

$0.50 rebate first 6 months and every 6 months following for the 2 years
Product
By: Dustin Avery, Abel Johnson, Lindsey Flora, Danielle Sherman, and Leeta Love
Current Situation Analysis

This year we are projecting a $50,000 loss
No advertising or promotions
Argan oil currently being used is not pure.
Value product positioned only in Dollar Stores.

Distribution
Sales/Revenue
Expenses
Breakeven Points
Fixed Cost stayed the same -$250,000
Variable Cost
Adding all promotion and advertising expenses = $106,000.
Positioning Fee = $26,000
Recyclable Materials saves 20% on Packaging and bottling expenses.
20% of the distribution expenses now used for salary to distribute the product.
Inventory holding cost increased with increase of internet sales
Miscellaneous increased to accommodate the changes in productions.
Wholesalers 790802 Units at $0.96 per unit = $759,170
Internet 40,360 Units at $1.49 per unit = $60,136
Warehouse holding (internet) 40,360 Units ($0.50) = ($20,180)

Total 831,162 Units Total Sales $799,126

60% to Wholesalers 425,000 units at $1.87 = $794,750
20% over the Internet 105,000 units at $2.37= $248,850
Warehouse holding (internet) 105,000 ($0.50) = ($52,500)
20% to Direct Retailers 110,000 units at $2.24=$246,400

Total 640,000 Units Total Sales 2015 $1,237,500

Break-Even Point (units) = 235,849 Break-Even Point ($'s) = $441,038

Total Fixed Costs TFC = $250,000
Variable Cost per Unit VCU = $0.81
Sales Price per Unit SPU = $1.87

Formulas:
BEP (units) = TFC/(SPU-VCU)
BEP ($'s) = BEP (units) * SPU

Intensive-Wholesalers
Selective-Contract Distributors
Exclusive- Specialty Stores
Promotion
Discount
Coupons
One year's worth of shampoo
Donation

Conclusion
By launching
Bottle re-design
Increasing volume
100% argan oil
New label
This will increase our market position
Make us comparable with competitors
Increase our product sales
Increase bottle size to 28 ounces to compete with competitors
Bottle will be ribbed on the center
Square bottom so less likely to be dropped & maximize shipping capacity
100% argan oil

Redesign Label
Greenish blue
Argan tree to differentiate our shampoo from other shampoos
Value Proposition
For:
our customers world wide who want to re-hydrate, repair and control their hair
Who:
upon buying and using our shampoo, customers will achieve their short term goal of repairing their hair and we will gain a long term relationship
Our:
customers will in fact come to see that our product works and they will be satisfied
Unlike:
our competitors such as L`Oreal, our shampoo contains very minimal additives. Our product contains oils and purities to make hair strong. Our competitors have more additives than purities. Our shampoo also comes at a cheaper price.



Positioning
Promotions will include: coupons,rebates, discounts and product samples.

Price increase to our whole sellers
Full transcript