Parvaderm Corporation

Parvaderm Corporation

Key Information:

* Timing: women's shaving would increase during the spring months and reach its peaks during the summer months.

* Sales in 2005 equals $258 million

* Products are sold under different brand names

* Product is sold by drug and food-and-drug stores through rack jobbers

* Rack jobber = wholesalers that set up and merchandise retail displays. They receive 20% off the sales price to retailers

* Soft and Silky Shaving Gel is an extension of Soft and Silky brand, with a slight change in packaging and manufacturing

* Positioned as a high quality women's shaving gel

* Rack jobbers were able to obtain product placement in the women's personal care section of drug and food-and-drug stores

* Placement minimized direct price competitors

* It was premium-priced - $3, 95 per 5 ½ ounce. Retailer received 40% margin on the suggested retail selling price

* Company's manufacturing policy is to utilize existing production capacity whenever possible. All products sold by the company were packaged in tubes, bottle or jars

* Positioning - unique product for a feminine woman who considers herself special

* Sales of 2004 = $ 3,724,000; 1,960,000 units

* Gel is 3rd most used method of shaving

* 90 million woman (age 13 and above) use blade and razor, 5 million women use electric shavers

* Shaving Statistics:

1. 80% shave at least once per week

2. Average woman shaves 11 times per month (man shave 2 times per month )

3. Shaves 9 times more skin than men in shaving occasion

4. Shaving varies by season - summer is the greatest

* Women need a product including moisturizer. 4 out of 5 women uses moisturizer after shaving

* 1995 Soft and Silky product added moisturizers: Aloe + Lanolin + Vitamin E (these ingredients were emphasized a lot)

* "Wt Shaving" products dollar value = $550 million in 2004 manufacturers prices

* 3%-5% sales growth since 1999

* Razors and blades = 77% of "Wet Shaving"

* Shaving Creams and Gels = 23% of "Wet Shaving"

* Average woman spends $12.50 for razor, blades and shaving preparations per year

* Expenditures had increased since 1995 reaching 31% of sales in 2004

* By