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Boundies Case Summary

Decent Essays

I. FACTUAL SUMMARY
• The introduction of the new product “ Nundies” by Advanced Materials Inc. is a transition from a foam fabricator manufacturing business to a proprietary medical and consumer products.
• Nundies is a true departure from the ordinary product offered by Advanced Materials, Inc. Thinking outside the box is not always best, as the new product “Nundies” will lead the company into a field where they lack experience. AMI is not great or experienced at selling, marketing, or logistic control.
• Nundies is a one-time use, panty less panty that adheres to the inside inseam of a woman’s pants. The value proposition of Nundies is represented by ultra-thin nylon and lycra liners designated for women who dislike panty lines and …show more content…

CASE PROBLEM/OPPORTUNITY
The company believes that new initiatives are necessary to bolster unit volume and especially reorders. I believe Advanced Materials lacks coherent strategy for Nundies to effectively appraise the financial worth of product service offerings. The managers must reduce the spending on order getting costs because they cannot increase their output to the capped limit of 100,000 liners. Other issues are whether or not the distribution approach currently used by the company will help reach profitability, and whether or not the company effectively reaches the target market.

SWOT ANALYSIS
Strengths
• Competitive advantage - Nundies is an innovative product which provides an alternative to visible panty lines; no other company produces the same type of product
• Low production costs - cost of good sold represents 23 percent of selling price
• Hygienic product - Nundies is a one-time use, disposable product
Weakness
• Low product capacity - the company is restrained to 100,000 liners per year
• High selling price restricts the target market toward upscale stores
• Uncertainty regarding the marketing, merchandising, and sales for retail partners
• Low brand awareness -, Advanced Materials Inc. needs a strong financial effort to make prospective customers familiar with the brand
• Customers are unsure how to use the

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