Question

In: Operations Management

Answer the following questions: 1. - 3 separate answers. For the three options presented by the...

Answer the following questions:

1. - 3 separate answers. For the three options presented by the brothers, what are the pros and cons of each?

2. Which would you choose from #1 above and why?

--------------------

Bringing an Innovative Razor to the Masses By MICKEY MEECEAPRIL 28, 2010 L.P.I.

Consumer Productsmakes and distributes patented ShaveMateall-in-one razors that feature shaving cream dispensed from the handle. The company, which has been in business since 1987, has been developing its line of razors since 1997. Titan 6, for men, and Diva 6, for women, which have six in-line blades, are the newest products. The company employs four people and had revenue of about $2 million in 2009. THE CHALLENGETo crack the $2.6 billion United States razor and blade market, which is dominated by Gillette and Schick. THE BACKGROUNDLouis D. Tomassetti and Peter C. Tomassetti, known as “the inventor brothers” in Pompano Beach, Fla., created and sold a line of marine signaling devices under the Safety-Sport brand. More recently, they homed in on razors because they believed shaving was getting “complicated.” They concluded, Louis said, that “the common sense thing to do is to combine the shaving cream with the razor.” After years of research and development, engineering and patent work, the brothers took their razors to the military in 2002 because they had heard that soldiers in Iraq and Afghanistan were dry shaving. That first product was rugged and featured two blades, with the shaving cream in the handle. The military became a repeat customer. Still, the Tomassettis found American retailers reluctant to take shelf space from Gillette and Schick. Store managers encouraged the brothers to improve their product — add more blades, they suggested. So the Tomassettis did. With six blades, ShaveMate offers one more in-line blade than its competitors, and it is the only all-in-one razor on the market with shaving cream in the handle. Peter Tomassetti, left and his brother Louis invented ShaveMate razors, which dispense shaving cream from the handle. Credit John Van Beekum for The New York Times When Titan 6 and Diva 6 were in prototype, the brothers took the razors to trade shows. While retailers were intrigued, they said that ShaveMate lacked brand awareness. It became clear that the brothers needed to stimulate demand by building name recognition and educating consumers on the benefits of their razors. THE OPTIONSThe brothers thought they had three options: They could go head-to-head with Gillette and Schick with a national print, television and radio advertising campaign, supplemented by store promotions and coupons. Because the cost could easily exceed $150 million, the brothers dismissed this idea out of hand. They could market ShaveMate on their own through shavemate.comand specialty retailers like hotels, airport stores and cruise ships, using their tagline, “The future of shaving is here.” This was the most affordable option, costing an estimated $100,000 to produce razors for the initial stock, displays and promotions, but it would take a while to build the brand and increase sales. Finally, they could initiate a two-pronged marketing attack for about $1 million, looking for a big splash with a low-cost specific public relations effort to put ShaveMate in front of print editors and TV producers. Then they could begin a national, as-seen-on-TV campaign on cable channels to educate consumers via two-minute commercials on how their product could simplify shaving. The goal would be to have a well-known spokesman promote the razors.

Solutions

Expert Solution

1. Option 1- They could go head-to-head with Gillette and Schick with a national print, television and radio advertising campaign, supplemented by store promotions and coupons. Because the cost could easily exceed $150 million, the brothers dismissed this idea out of hand.

Pros- In the process of competing with other competitors, Gillette and Schick might increase the brand awareness for the product.

Cons- It requires huge investment such as $150 million which is a risk to the business itself because the revenue for the company itself is $2 million in 2009.

Option 2- They could market ShaveMate on their own through shavemate.com and specialty retailers like hotels, airport stores and cruise ships, using their tagline, “The future of shaving is here.” This was the most affordable option, costing an estimated $100,000 to produce razors for the initial stock, displays and promotions, but it would take a while to build the brand and increase sales.

Pros- It targets the niche market where competition would be less. Also, it is highly cost-effective when compared to the first option.

Cons- Brand building cannot happen over a night. It takes time and efforts to build strong brand images.

Option 3- They could initiate a two-pronged marketing attack for about $1 million, looking for a big splash with a low-cost specific public relations effort to put ShaveMate in front of print editors and TV producers. Then they could begin a national, as-seen-on-TV campaign on cable channels to educate consumers via two-minute commercials on how their product could simplify shaving. The goal would be to have a well-known spokesman promote the razors.

Pros- Since the promotional cost is just $1 million which is an affordable cost for the company (revenue is $2 million), it is a feasible option.

Cons- Choosing a well-known spokesman to promote the razors is a highly complex task. It is difficult for managers to decide to which spokesman the potential customers would listen to.

2. Personally speaking, I would choose option 3 because the promotional and advertising cost is within the company’s affordability. Since the revenue is $2 million, the company can do a onetime investment of $1 million for advertising and promoting its product. It is the best low-cost public relations effort for the company to increase the brand awareness when compared to option 1. Television is the best mode of advertising as it is viewed by almost all the people. A cable TV advertisement would have a wider reach within the community. A well-known spokesperson to describe the product is a good idea as people would be instigated to listen to what the spokesperson is about to say.

         


Related Solutions

Select three (3) of the five questions to answer. You must type your answers and your...
Select three (3) of the five questions to answer. You must type your answers and your responses to each question should be no more than 500 words per question (1,500 total). Reference/cite the content in the relevant modules to support your answers/argument - no external sources or group work. Protest movements can have an illusion of victory. Sometimes they maintain a state of balance between opposing forces or actions, an equilibrium (i.e., gained something here, but lost something there). Use...
In the following separate cases, answer the questions independently. 1. In the year 2018, a director...
In the following separate cases, answer the questions independently. 1. In the year 2018, a director was dismissed and he commenced an action against the company claiming substantial damages for wrongful dismissal. The company's lawyer advised that the ex-director was likely to succeed with his claim estimated to be $1,000,000. In 2019, this case was still unsettled and the company has just found some new evidence showing that the possibility of success of the ex-director's claim was lower, around 30%...
two separate questions and I need two separate answers please... 1-Separation of the fly embryo into...
two separate questions and I need two separate answers please... 1-Separation of the fly embryo into segments and separation of neuroblasts into different types are both dependent on transcriptional cascades. What is a transcriptional cascade (1 sentence)? Explain what is different (conceptually) in the transcriptional cascades in the two developmental scenarios (1 sentence). 2) In your opinion, is lateral inhibition similar or different from induction? State and support your argument in 1-2 sentences.
Answer 2 of the following questions and relate your answer with other students’ answers: 1. If...
Answer 2 of the following questions and relate your answer with other students’ answers: 1. If your incomes increases by 20 percent, how much would your quantity demanded change per month on average? Estimate your income elasticity and explain your answer. 2. What is the cross-elasticity of supply of one of the goods or services that your company provides? Why? How does your answer relate with another student answer? 3. Gridlock in Toronto already costs the region $6 billion a...
Part I. Answer the following three (3) questions. Copy and paste the questions into the Text...
Part I. Answer the following three (3) questions. Copy and paste the questions into the Text Submission box (below), then type your answers directly below each question.   Q1. What is feedback? How can verbal feedback affect customer encounters? A. Q2. Give some examples of nonverbal feedback and explain how they complement the verbal message and how they can affect customer interactions. A. Q3. What are the four spatial distances observed in Western cultures, and for which people or situations is...
Part I. Answer the following three (3) questions. Copy and paste the questions into the Text...
Part I. Answer the following three (3) questions. Copy and paste the questions into the Text Submission box (below), then type your answers directly below each question. Q1. What is feedback? How can verbal feedback affect customer encounters? A. Q2. Give some examples of nonverbal feedback and explain how they complement the verbal message and how they can affect customer interactions. A. Q3. What are the four spatial distances observed in Western cultures, and for which people or situations is...
Use the following data to answer questions 1-3: There are three industrial firms in Happy Valley:...
Use the following data to answer questions 1-3: There are three industrial firms in Happy Valley: Firm A       Pollution Level = 70 units     Cost to Reduce Pollution = $20 / Unit Firm B       Pollution Level = 80 units     Cost to Reduce Pollution = $25 / Unit Firm C       Pollution Level = 50 units     Cost to Reduce Pollution = $10 / Unit The government is considering options to reduce the pollution level to 90 total units. Suppose they decide to impose...
Answer any three (3) of the following questions. Be sure to mark the number of the...
Answer any three (3) of the following questions. Be sure to mark the number of the question you are answering. 1. Distinguish between global and multi-domestic strategies. Under what industry conditions will each be appropriate? 2. Why is strategic control important in the strategic management process? 3. What are the advantages and disadvantages of vertical integration for a firm? 4. Why are effective reward and incentive programs important for the modern corporation? Give reasons for your answer. 5. Describe three...
Answer the following questions based on the reaction below. Report all answers to three significant figures....
Answer the following questions based on the reaction below. Report all answers to three significant figures. K2SO4(aq) + Sr(NO3)2(aq) → SrSO4(s) + 2KNO3(aq) The concentration of K2SO4 is 0.222 M at the start of the reaction, and 0.135 M after 122 seconds. The initial concentrations of the products are zero. 1. What is the average rate of reaction (in M/min) over this time period? 2. What is the average rate of change (in M/min) of K2SO4 in the first 122...
Answer each of the following questions. Answers should typically be no more than 2-3 sentences in...
Answer each of the following questions. Answers should typically be no more than 2-3 sentences in length. 1. In the Keynesian cross analysis, explain in your own words why the tax multiplier is smaller (in absolute value) than the government spending multiplier. 2. Explain why the IS curve is downward-sloping using the loanable funds market approach.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT