Decision
Keeler should make a decision for introducing new package design. This decision is informed by commissioned market research findings, changing consumer preferences for consumption form (in favor of aerosol over gel) and, not least, increasing adoption of women shaving products as more and more women join workforce. The decision is also informed by maintaining a work-politics balance by opting for a project initiated and developed by a subordinate whose future collaboration is necessary in order to avoid possible conflict over power status at workplace.
Analysis
In opting for new product design, Keeler does not only adopt confirmed findings reported by commissioned market research but also caters for internal workplace politics at Queen of Shaves. Given a comparative plateauing of (and more recent decline in) sales volumes of Silky Smooth Shaving Gel, Keeler is increasingly under pressure to lift sales volumes anew. This "lift" can be performed by introducing a new value proposition to Silky Smooth Shaving Gel in addition to products present one. Moreover, given Keeler's recent promotion, her power status as a new manager at Queen of Shaves is at stake. Therefore, in order to assert Silky Smooth Shaving Gel's brand as a product of renewable value proposition and herself as a new manager, Keeler needs to make a decision opting for a new package design.
On flipside, introducing a new package design – and, for that matter, a whole new product – is a decidedly unpredictable process. True, prior market research, preliminary partial introduction and, not least, initial success might be good indictors of a future, full-scale market entry. However, unpredictable market forces are always a constant. For current case, Silky Smooth Shaving Gel represents an example of a "luxury" product conveniently disposed of either for availability of alternatives or during economic crises. As explained in current case, Silky Smooth Shaving Gel is used more by working women compared to non-working ones. Given how a basic razor-and-water-and-soap alternative can be used by non-working women, let alone a lower price product offered by competitors, introducing Silky Smooth Shaving Gel can be a risky effort.
In balance, benefits of a new package design far outweigh downsides, particularly in medium- and long ranges. As smaller, aerosol packages are shown to suit women, particularly during summers, maintaining a personal stock of Silky Smooth Shaving Gel handy remains a growing consumption pattern both for working and non-working women of younger age brackets.
Recommendations
In opting for a new package design, Queen of Shaves is advised to follow up on Johnson's negotiations on contractor's proposal. Specifically, by re-negotiating new package design offering both on contractor's side (by increasing volume of offered units in return for more competitive price) and merchandiser's side (by supplying more new package units in return for more competitive sales volume sharing deal), Queen of Shaves should be better positioned to buffer against initial declines in sales volumes.
Further, after finalizing re-negotiation conditions, Queen of Shaves is advised to prepare customers, existing and potential, for a final replacement of conventional package design by new package design by crafting well planned marketing and promotion plan. This can be implemented by emphasizing a message of permanency (against a conventional one of disposability) showcasing enduring benefits of using Silky Smooth Shaving Gel in new package design, particularly in more practical (e.g. workplace) and hectic (e.g. summer) contexts. The campaign should, moreover, be implemented using social media platforms since an increasing number of consumers of women shaving options falls into younger age bracket, a customer group confirmed by recurring research as heaviest in using social media platforms and applications.
