SCENARIO QUESTION:
You are tasked by your Marketing VP to recommend a strategic approach. What would you recommend Merit Enterprises do with DEFENSE Deodorant? Defend your strategic decision and demonstrate comprehension of strategic decision making within the marketing environment.
DEFENSE DEODORANT SCENARIO:
Suppose you are the marketing manager for DEFENSE Deodorant, a product that is manufactured by your company, Merit Enterprises. Merit markets a line of consumer personal care products, e.g., Hair-So-Soft Shampoo, Awesome Hair Conditioner, Glisten Toothpaste, Abracadabra Mouthwash, and other similar products. Each product has its own marketing manager and there are a total of 13 products in the corporation's product line, one of which is DEFENSE.
DEFENSE deodorant was introduced in 1993 with the typical corporate fanfare that marks the introduction of a new product. The product never really took off, however; yet, it does have a contingent of seemingly loyal DEFENSE users. Overall corporate sales are $6.3B with DEFENSE contributing sales of $68M in 2011. Gross profitability of DEFENSE in 2011 was $4.4M. DEFENSE in this current year in 2012 has about 2.1% of the total U.S. deodorant market, down from 2.4% in 2007.
Marketing research done by your department within the past three months suggested that those outside the DEFENSE user base see DEFENSE as simply "just another deodorant" in a market that is already brimming with competitive products (e.g., Sure, Mennon, Axe, Right Guard).