Syndet and Peggy Thomas
John M. Legge
published: 2006 | Case Study | Small Business/Entrepreneurship
Subject Area: Small Business/Entrepreneurship; Marketing
Key Issues: Entrepreneurial Motivation and Capacity; Promotion; "Better Mousetrap"
Case Description: By 2001 Peggy Thomas had become, without any formal plan, the owner and manager of a small factory making superior "syndet" personal cleansing bars for suppliers to the Australian pharmacy (drugstore) trade. Her product, while expensive compared to soap bars, was both more attractive and less expensive to produce than the products of her direct competitors, a result of her unique combination of artistic flair and chemical and manufacturing skill. Her friend David urged her to support his proposed venture to launch a supermarket version of her product. Peggy, aware of the difficulty of establishing a new brand in consumer markets as well as the pressures such a move might place on her, hesitated. Peggy was concerned that precipitate growth might damage her business; and in spite of her affection and admiration for David, feared that his venture may have been more difficult than he realized.
# Case Pages: 12
Case Number: 060042-23-4
Teaching Note: Yes
revised May 24/06