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Daily Defense Shampoo
Transcript of Daily Defense Shampoo
Our focus will be to re-introduce our product.
Complete product package makeover
upgrade our current shampoo formula
Re-position from the value market to a mid-range markets.
Expanding our distribution to direct retailers and salons.
Price comparable to competitors
Increase in price to compensate for volume increase & pure argan oil
Retailers approximately $3.14
$0.50 rebate first 6 months and every 6 months following for the 2 years
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.
Fixed Cost stayed the same -$250,000
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 = $1.87
BEP (units) = TFC/(SPU-VCU)
BEP ($'s) = BEP (units) * SPU
Exclusive- Specialty Stores
One year's worth of shampoo
100% argan oil
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
Argan tree to differentiate our shampoo from other shampoos
our customers world wide who want to re-hydrate, repair and control their hair
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
customers will in fact come to see that our product works and they will be satisfied
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.
Promotions will include: coupons,rebates, discounts and product samples.
Price increase to our whole sellers