Slanket Essay

986 Words Sep 11th, 2011 4 Pages
Slanket Case

Slanket is the market pioneer of sleeved blankets, and by the third year since its product launch, Slanket was able to generate $5 million revenues. Slanket had first pick of marketing channels, and there was no direct competitor with Slanket in the first few years of its product arrival. Thus, in this period of time, Slanket had no limit to how to expand its product line and to which customers they wanted to target. It chose innovators as primary demand and used the price skimming strategy. It didn’t even have any marketing costs (which is excellent because most new products have heavy promotion costs), but was able to make money and get rid of inventory quickly, selling each Slanket at the price of $64.95. Slanket has
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However, Slanket used more than a high price to signal quality to the consumer; the actual materials were of a high grade too. According to Exhibit 3, the fabric used on the Slanket was 100% machine-washable, given an anti-pilling treatment, and had a weight of 240 grams per square meter. Also, with every purchase Gary Clegg included a “handwritten note…thanking customers for purchasing the product,” which added a personal touch and also makes the consumer feel special (3). Additionally, giving back was a big part of the Slanket organization and they donated to a multitude of causes and charities with each Slanket purchased – also an act done by a higher quality company; consumers could equate their positive feelings for the company and then transfer them to the Slanket product. With the combination of all these qualities, the Slanket is targeting niche users of blanket products which constitute older, more sophisticated consumers who are actually using the Slanket for warmth and convenience, not as a fashion or social statement.
To promote the Slanket, the Cleggs relied on word of mouth marketing. This involved cold-calling radio stations and newspapers, contacting bloggers and product reviewers, as well as offering Slanket giveaways (2). The cost savings of these marketing activities is one of the factors that allowed the Slanket to have high profit margins. Slanket also had

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