EverGlad Body Care Case Study Solution

Problem 1: The brand might fall short of claims due to no standardization and result in failure 

Though EveryGlad intends and aims to provide the all-natural, organic and ethically manufactured body care products to their customers, but after all, they are new to this business. Such products are usually not manufactured by big conglomerates, not because they don’t have resources, but because such products are complex to produce, it is very difficult to sustain their shelf life and the raw material sourcing is very uncertain as it is mainly based on natural and climatic conditions. Furthermore, if they even succeed in proving their claim and attracting the customer base, which will purchase their products , it will be another challenge for them to sustain the quality. The manufacturers, who are working with natural and organic ingredients find it very difficult to maintain quality , tastes, fragrances and colour etc.  

Solution: They should create sustainable and reliable backward supply chain of suppliers, who can help them in continuous and standardized supply of ingredients, which can help them in producing products which ensure customer satisfactions, recurring sales and expanding customer base. 

Problem 2: The company cannot support fast growth and invite competition

Sometime companies underestimate the potential of their products and hence do not prepare for any sort of hyper growth in demand and customer base. If after launch this becomes the scenario for EverGlad Body Care, they might not be able to coup up with it because large volume production requires more capital, bigger plants, faster and larger supply chain and better demand planning. If EverGlad fails to meet the exponential growth of demand, they might invite in the competition, most probably those firms which are already in this business with much more resources and flexibility of capacity and market reach. For instance, if a brand like Body Shop sense the success of EverGlad and also sense their failure to meet customer demand, they might jump in with better promotional and distribution strategy to cater unfulfilled demand in the market, may be at cheaper price or with better quality. 

Solution: They should plan an outsourcing strategy, where they can outsource production to companies with similar manufacturing philosophy , at least until they enhance their own manufacturing capabilities. This will also be advantageous for them because if the sales are just a trend or a fad, they might save on their manufacturing setup in case of future decline in sales. Moreover they can divert their resources towards better integrated communication and more promising product development.