Case Detail

Case Summary

Dry Goods

Case Number: 5-210-263, Year Published: 2010

HBS Number: KEL509

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Authors: James B. Shein; Tim Joyce; Brandon Cornuke

Key Concepts

Contract Manufacturing, New Product Development, Consumer Products, Personal Care Products

Abstract

MBA students Tim Joyce and Brandon Cornuke had what they believed was a great product concept: a body powder that could be delivered in an aerosol spray. Current market-leading powders such as Gold Bond and Johnson’s Baby Powder involved messy application, as they were only available in “dump-on” form. Worse, because powders deposited on top of the skin didn’t adhere to it, they tended not to last long. Joyce and Cornuke believed an aerosol powder spray would solve these problems. They called their product concept Dry Goods.

However, taking Dry Goods from idea to reality presented some serious challenges. How would two students without access to a lab be able to research and develop a complex chemical/physical process like aerosol delivery, let alone manufacture it once they had a proven prototype? To address these problems, the two entrepreneurs sought out a contract manufacturing partner. After identifying a number of options, Joyce and Cornuke had to decide which partner offered them the best chances of success, given their goals and financial constraints.

Learning Objectives

Students will learn about the process of hiring a contract manufacturing partner to produce a new packaged good for a startup.

Number of Pages: 8

Extended Case Information

Teaching Areas: Entrepreneurship, Finance, Manufacturing, Operations

Teaching Note Available: Yes

Geographic: Chicago, Illinois, United States

Industry: Personal Care Products

Organization Name: Joyce Labs, LLC (Dry Goods)

Organization Size: Small

Decision Maker Position: Founders

Decision Maker Gender: Male

Year of Case: 2009