Ms-Tique Corporation

Paper Summary:

This paper explains that packaging plays two important functions: To be attractive to the consumer and communicate the right brand messages to be functional. The author presents a consumer cost-per-ounce argument and concludes that the 10 oz. aerosol can is the best consumer value. The paper stresses that the cost of producing aerosol cans is lower than that for tubes.

Table of Contents
Economics of Three Options
Incremental Contribution
Test Marketing

From the Paper:

"The three items, 5 oz tube (x), 5 oz aerosol can (Y) and 10 oz aerosol can (Z) will be available at the price of $3.95, $3.50 and $4.25 respectively. The company is deciding to set this price for the three items and it is therefore important to see which options would prove to be most feasible in the long run at the current price level. For this reason, we shall calculate the contribution that will be made by each item if they go into the market with this price tag. It appears from general study of prices that there exists a small gap of $0.75 between Y and Z while the oz difference is quite wide and this will only urge the customers to opt for Z instead of Y."

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