Summary of Current Situation
As an effort to assist Phoebe Masters with making a decision regarding the future of the Soft and Silky Shaving Gel brand (SSSG), a report was created to provide a detailed analysis on the important decisions. After analyzing the Women’s Shaving market, we found that women use a variety of methods for hair removal. While the most popular method is simply shaving with razors and soap and water, an increase in shaving with razors and shaving creams and gel is starting to take over the market. SSSG is faced with a big decision that can have a positive or negative impact on the growth of the company.
SSSG is marketed by Dermavescent Laboratories, Inc., which is a manufacturer of women’s personal-care products with
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dollar value of women’s “wet shaving” products were estimated to be about $550 million at manufacturer’s prices. Since 2000, sales growth has been between 3 to 5 percent per year. Razors and blades accounted for 77 percent of women’s “wet shaving” products. While shaving creams and gels accounted for 23 percent of annual sales. On average, women spend about $12.50 for razors, blades, and shaving preparations per year.
Women who used shaving cream or gels had few women-only products to choose from. However, due to new-product activity, the shaving cream and gel category had emerged in 1999. This led to an increase in advertising and promotion, and improved shaving technology. Industry analysts cited improvements in the quality for shaving creams and gels for women and increased advertising. Advertising and promotion for Soft and Silky Shaving Gel had responded to the increase in competition. Looking at the table below, we can see the representative brands, sizes, forms and typical retail prices for
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Looking at sales in 2006 in comparison to 2005, there will be a total loss in sales of about $12,030.80. A loss in COGS of about $2,532.80 with a loss in gross profit of $9,498. While advertising & promotion expenses and overhead & administrative expenses with stay the same, we will continue to see a decrease in brand contribution by $9,498, a loss in unit sales of 6,332 and a loss in ounces sold by 34,826.
If we assume there to be a 2% decrease in sales, we will see the following decreases from 2005 to 2006.
Looking at the table above, we see a total loss in sale of $74,480 with a loss of $15,680 in COGS. Additionally, a loss in gross profit and brand contribution of about $58,800 with a decrease in unit sales by $39,200 and a decrease in units sold of about
Compare and contrast the two media campaigns from a historical perspective. How are they alike? How are they different?
7. Sales had dropped in 1993 but operating profit margins increased due to increase in
Table C projects the break even analysis in both units and dollars as a basis for further projections. As seen in Table C substantially larger sales are required to break even.
Sally Beauty has a heritage as the first choice for professional cosmetologists and consumers alike because of the broad range of products. Their international presence offers Sally Beauty / BSG insight into fashion and beauty trends. It gives buyers and merchandisers a head start on obtaining the tools and products salon professionals need to create the latest fashion looks, as well as the products consumers use to maintain the look between salon visits. Beauty Systems Group stores, along with its outside sales consultants, sell up to 9,500
The transition to modern consumerism involved not just the introduction of responsible product formulation, but fundamental transformations of social behavior. Women were at the heart of this development in the cosmetic industry, and we will consider the contributions of two of them: Annie Turnbo Malone and Madame C. J. Walker. These women and their contemporaries paved the way for Estee Lauder and Mary Kay Ash in our time.
The 3 percent decline in sales causing a 21 percent decline in profits can be attributed to the identification of the accounting concept of operating leverage. Operating leverage is what business managers apply to boost small changes in revenue into sizable changes in profitability. Fixed cost is the force managers use to attain disproportionate changes between revenue and profitability. Therefore, when all costs are fixed every sales dollar contributes one dollar toward the potential profitability of a project. Once sales dollars cover fixed costs, each additional sales dollar represents pure profit. A small change in sales volume can significantly affect profitability (Edmonds, Tsay, & Olds, 2011). So, therefore, if sales volume increases,
Total operating expenses show to be the highest in 2009 at 102.2 and at the lowest at 86.6 in 2012. Along with the decrease in expenses, operating income shows to have increased significantly from 2009 to 2012. Starbucks restructured its business increasing sales growth while cutting operating and overhead costs. As shown on the financial statement, total operating expenses as a percentage of total net revenues has declined from 102.2% to 86.6% resulting in the increased percentage of net earnings from 3.2% to 10.4%. They have reduced store operating expenses by 5.5% (35% to 29.5%), depreciation and amortization expenses by 1.4% (5.5% to 4.1%), and restructuring charges by 3.4%(3.4% to 0%). The decrease of store operating expenses as a percentage of total net revenues was also due to increased Channel Development and licensed store revenues. Along with the decrease in store operating expenses, we can see that interest expense slightly decreases. This decrease in interest expense may be another reason behind the increase in net earnings. And also, income from equity investees was increased due to the increase in income from global partnership and joint venture
Abortion has been a choice for people who have unwanted pregnancies for the last four decades. There is an error in this because abortion is murder. Many people have called for Planned Parenthood to be defunded by the government. Many say that if we defund Planned Parenthood that those in need of an abortion or other care, whether because of rape, incest, or simply an unwanted pregnancy would not be able to get the help. Those who support abortion are under the belief that abortion is not murder because they believe that life does not begin until after birth. But I do not agree with this, life begins at conception. If Planned Parenthood were to be defunded by the government it would not mean that abortions would become illegal again, unless Roe v. Wade were reversed, abortion would still be legal. All that would happen is that Planned Parenthood would need to raise
Women and men have similar needs when it comes to hygiene, including items such as razors, deodorants, toothbrushes, etc. Recently, the removal of something called the Pink Tax has been gaining a tremendous amount of support in the last few years. The Pink Tax is an increased price on women’s hygienic items that seem incredibly similar to men’s hygienic items. The most compared item is a pack of razors that are essentially the same thing in the men’s and women’s section of the respective aisle. Throughout the history of marketing, men and women have been targeted through the use of certain colors and patterns, but drug stores seem to be putting that marketing to a new extreme and only increasing the price of women’s products. One woman
Analysis of the “Dollar Shares” table combined with the “Moisturizer Units Sold” table (on page 309) shows that Plenitude actually leads in the “treatment” category. On the other hand, they are only third when it comes to the “daily” category (see appendix). This all contributes to the fact that Plenitude does not have the mass-market appeal which it needed for the “class of the mass” strategy to work. People viewed L’Oreal as a high-end, a step-up, more expensive and only for older women.
The inventory turnover decreased from 3.8 to 3.59. This is explained by the higher increase in the average inventory (37%) than the increase in cost of sales (29%) during 2005. This means that the rate at which inventory is sold is dropping
Sales fell in 1994 fell to $34.6 billion from $37.7 billion in 1993; a loss
After studying the cosmetic market we can identify a series of needs in this market:
Chiang, C.-T., & Yu, W.-C. (2010). Research of Female Consumer Behavior in Cosmetics Market Case Study of Female Consumers in Hsinchu Area Taiwan. iBusiness, 2, 348-353.
Beauty product can be defined as cosmetics; materials and devices made and sold for the purpose of enhancing the physical attractiveness of users or in other words, as any product, especially a cream or lotion, intended to improve a person's appearance . We live in society where people nowadays are very obsessed with beauty and spending so much money on beauty products. Since we were children, the society taught us that beauty is happiness, wellness and everything. This creates a mindset that only attractive physical appearance is beauty, even though ‘beauty’ is a very subjective word where it can apply to many things. It is a rare sight these days to