Parvaderm Corporation
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Parvaderm Corporation
Key Information:
Timing: womens 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 womens shaving gel
Rack jobbers were able to obtain product placement in the womens 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
Companys 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:
80% shave at least once per week
Average woman shaves 11 times per month (man shave 2 times per month )
Shaves 9 times more skin than men in shaving occasion
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