Slanket Case from Harvard Business Review by John Deighton - Essay Example

A slanket’s body length makes it convenient to use in the comfort of a sofa or even while studying. Some customers send slankets to their loved ones as gifts during feasts and festivals, such as Christmas and Halloween. It saves money that could otherwise be spent on thermostats during winter. Its use is further promoted by consumers when watching movies and during long car journeys. Distribution Situation Gary Clegg ensured the effective delivery of the product to customers’ doorsteps. Every time an online order was made, the details of the client were noted and responded to online.

Gary accompanied these deliveries with a personal note, thanking the customer for purchasing the product. He also built a supply chain that helped source the product from China, in partnership with a North Carolina company. Competitive Situation The main competitor of the Slanket Organization came in October, 2008, by the name Allstar Marketing Group (AMG). Based in Hawthorne, New York, the firm was a Direct-Response Television (DRTV). This was a highly successful marketing firm that was previously credited with the production of Aqua Globe, a self-watering system for house plants, and Big City Sliders, a device that produced miniature hamburgers.

As an infomercial marketer, the Allstar Marketing Group produced a cheaper version of the Slanket, dubbed “snuggie”. . However, there is uncertainty in this industry as it is not known whether other consumer trends may occur or which other company may enter and invest in the industry. SWOT Analysis of the Slanket Business Strengths To begin with, the Slanket Business had quite a diligent and industrious pair of managers. Gary Clegg researched on patents, found a textiles supplier and oversaw production.

Despite the discouragement from lawyers concerning the impossibility of obtaining a patent of their work, due to the difficulty in distinguishing the design from a bathrobe, hospital gown, stylized shawl or poncho, Gary persisted and would not let go of the business. Gary’s elder brother, Jeff Clegg, was also important in the success of the business in its earlier years. He set up the infrastructure for a web-based business. On day one of their business, he worked tirelessly for 14 hours on the screen, answering emails and filling orders.

These two brothers further cooperated in effectively managing the staff and the transaction operations of the Slanket Organization. The Slanket Business had an upper hand in ensuring product awareness. The on-line word of mouth promotion was also strength to the business. At Digg.com and the Daily Candy, an email newsletter and insider guide that appeared in one million subscribers’ inboxes daily, Gary and Jeff could reach over a vast proportion of potential clients each day. Exclusive contracts went as far as having Gary host live sales for the slanket on the QVC Channel, a televised home-shopping network.

This was an added strength in getting more customers, ensuring more sales. For instance, by the end of 2007, QVC had sold over 30 000 units (Deighton & Kornfeld, 2010). Another contract was made with an airline