One thing to know about Derangement's competitors' is that they offer a more manned form of packaging (aerosol), but they are unable to position their product as premium product.
Alternative Courses of Action With the many problems that Transcended is facing, a couple alternate courses of action that they can take are: 1) They should in fact introduce the 5 h ounce aerosol container. 2) They should choose to adopt the test market proposal 3) They should maintain status quo Transcended Laboratories, Inc. Has located a supplier who can produce aerosol cans with no chlorofluorocarbons (CIFS) and a rustproof foundation.A 5 h ounce container could be produced at $0. 24 per ounce with a retail price of $3. 50.
However, a minimum order of 100,000 containers would be required for the supplier to produce the new package design. The supplier is also requiring a one-time establishment fee of $10,000. We feel that Transcended should adopt the test market proposal because it will produce actual results compared to the preliminary test results, which included sales projections, surveys from customers and uncustomary, and forecasted centralization effects on sales.Transcended can continue producing shaving cream and gel in a tube container as well as introducing the 5 h ounce aerosol container which will get the sales out of a plateau and back into making more net profit. As well, the company can sell this product at a premium price and continue to view a plateau in sales volume.
(as shown in exhibit 4 chart) Recommendation/Discussion References Kerri.
