Case | HBS Case Collection | August 2009 (Revised August 2010)

Slanket: Responding to Snuggie's Market Entry

by John A. Deighton and Leora Kornfeld

Abstract

How does a pioneer in a new product category deal with the runaway success of a follower? Can search engine marketing and social media help? In 2008 Slanket CEO, Gary Clegg, found that his product, a blanket with sleeves, had been eclipsed by The Snuggie, another sleeved blanket. Snuggie made a brazen entry into the market with a $10 million spend on television infomercials. The Snuggie quickly became a pop culture phenomenon, talked about on popular television programs such as Oprah and The Tonight Show with Jay Leno, and paid mock tribute to on web sites such as YouTube, where hundreds of video parodies could be found. Clegg had been counting on building his Slanket brand. Will the coming of Snuggie mean the end of Slanket?

Keywords: Online Advertising; Brands and Branding; Product Launch; Market Entry and Exit; Social and Collaborative Networks; Search Technology;

Citation:

Deighton, John A., and Leora Kornfeld. "Slanket: Responding to Snuggie's Market Entry." Harvard Business School Case 510-034, August 2009. (Revised August 2010.)