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NAME:
INSTUCTOR:
DATE:
Assignment 1
Product Development & Operations – Category Manager
Analysis
Due Date: Week 3
Note: While representative of possible situations faced by
Alikay Naturals, all scenarios in this assignment are fictional.
Real Business
Let’s roll up our sleeves and use what we’ve learned this week
in a real-life business situation. Each week, you’ll encounter a
scenario where you will assume the role of a business person
who works with or at a national discount retail store, like a
Walmart or Target. These companies provide important,
everyday staples for millions of people across the country and
have become very successful businesses in the process.
Discount retail stores have locations in communities across the
country. They often have strong and recognizable brands that
are household names. We will explore how business works
throughout this course by taking on a few of the many different
roles at successful companies like these.
Your Role
This week, you’ll assume the role of a Category Manager for the
Beauty Products category at a national discount retail store.
What Is a Category Manager?
Category Managers are responsible for related groups of
products (for example, baseball equipment or laundry
detergents) for a retail business. They use research, information
and insights about the category to change shopper behavior and
increase sales of the products in the category. They also work
with the suppliers of the products in their category to ensure
that good products and services are available to customers.
As a Category Manager, part of your role is to analyze data and
information about how well a product is selling to help the
maker of that product improve the product and consider
introducing new products. Rochelle and her team at Alikay
Naturals have asked you, the Beauty Products Category
Manager, to review one of their products and determine where it
lies in the product life cycle. Additionally, they have asked you
to recommend ways to improve the product in order to increase
sales.
Instructions
Step 1: Product Life Cycle
Read the Product Report for Alikay Naturals Moisturizing Black
Soap Shampoo. The Product Report contains important
information that will help you to identify where the product
stands in the Product Life Cycle and give you clues about what
changes customers might like to see.
Respond to Rochelle and her team at Alikay Naturals based on
the information in the Product Report.
· Identify where Moisturizing Black Soap Shampoo is currently
positioned in the product life cycle.
Underline your selection:
Introduction
Maturity
Growth
Decline
Describe the rationale for your position.
· Compose 3 questions that Rochelle should pose to her team to
better understand the product’s positioning and potential at this
particular stage in its life cycle. (E.g., if you have determined
the product is in the Introduction Phase, you might suggest the
question: How have competitors priced similar products?)
Step 2: Product Changes
Based on what you’ve learned:
· What recommendation(s) do you have for Alikay Naturals to
improve or replace Moisturizing Black Soap Shampoo?
Step 3: New Product Development
Read the New Product Proposal, which contains three examples
of possible products that could be developed to replace
Moisturizing Black Soap Shampoo. Based on the information in
this proposal and the customer feedback in the Product Report:
If you had to recommend one product, which product would you
recommend they create? Underline your selection:
Organic Bloom Shampoo
Moisturizing Black Soap Shampoo with Dandruff Control
Coconut Protein Shampoo and Conditioner
Explain your decision.
Determine which type of innovation this represents from among
the four main types discussed this week. Underline your
selection:
Sustainable (eco-friendly)
Frugal
Sustaining
Disruptive
Briefly explain why you chose that type of innovation.
Note: You should complete Steps 4 & 5 after reading the
material in Week 3.
Step 4: Production Methods
Based on your understanding of Alikay’s position in the product
life cycle and expected sales volume:
Which production method do you think Alikay is using for the
Black Soap Shampoo? Explain your rationale.
If Alikay chose to keep the Moisturizing Black Soap Shampoo
and launch your recommended product as a “limited time only”
trial, what production method should Alikay use for the test
market product? Why?
Step 5: Real-WORLD APPLICATION
Choose a product at your company or one that you are familiar
with that is in the mature stage of the product life cycle. Briefly
describe the product, why you believe it is in this phase, and
what improvements could be made to change its current path.
1 BUS508: CONTEMPORARY BUSINESS
Scaffolded TOK essay planning template
TOK prescribed title:
Possible knowledge claims and knowledge questions:
What does this title ask you to discuss? How will you
go about approaching the question?
Which knowledge questions have you selected and why?
Explain/show how they will contribute to the
development of the discussion.
Which areas of knowledge/ways of knowing will be included in
your discussion? Explain how they will
contribute to the development of the discussion.
List and explain your real-life examples. How and why have
you selected them? How will they contribute to the
development of the discussion?
What are the counter-claims and different perspectives to your
discussion? Show how you will consider these
in your discussion.
What conclusions have you reached about your knowledge
question(s)? What are the implications of this
conclusion?
What are my academic honesty requirements for this essay? List
the references below that require citation or
checking.
Theory of knowledge prescribed titles
© International Baccalaureate Organization 20182 pages
Instructions to candidates
Your theory of knowledge essay for examination must be
submitted to your teacher for
authentication. It must be written on one of the six titles
(questions) provided overleaf. You may
choose any title, but are recommended to consult with your
teacher. Your essay will be marked
according to the assessment instrument published in the theory
of knowledge guide. The focus
of your essay should be on knowledge questions. Where
appropriate, refer to other parts of your
IB programme and to your experiences as a knower. Always
justify your statements and provide
relevant examples to illustrate your arguments. Pay attention to
the implications of your arguments,
and remember to consider what can be said against them. If you
use external sources, cite them
according to a recognized convention.
Note that statements in quotations in these titles are not
necessarily authentic: they present a real
point of view but may not be direct quotes. It is appropriate to
analyse them but it is unnecessary,
even unwise, to spend time on researching a context for them.
Examiners mark essays against the title as set. Respond to the
title exactly as given; do not alter it
in any way.
Your essay must have a maximum of 1600 words.
May 2019 examination session
– 2 –
1. “The quality of knowledge is best measured by how many
people accept it.” Discuss this claim with
reference to two areas of knowledge.
2. “The production of knowledge is always a collaborative task
and never solely a product of the
individual.” Discuss this statement with reference to two areas
of knowledge.
3. Do good explanations have to be true?
4. “Disinterestedness is essential in the pursuit of knowledge.”
Discuss this claim with reference to
two areas of knowledge.
5. “The production of knowledge requires accepting conclusions
that go beyond the evidence for
them.” Discuss this claim.
6. “One way to assure the health of a discipline is to nurture
contrasting perspectives.” Discuss this
claim.
ASSIGNM E NT
Product Development and Operations
Category Manager Analysis
1
DU E DATE
Week 3
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D.
PRODUCT REPORT FOR ALIKAY NATURALS
MOISTURIZING BLACK SOAP SHAMPOO
Product Description:
Finally, a way to get your hair and scalp truly clean with natural
ingredients. Traditional cleansers tend to strip your hair
of its natural moisture, leaving your scalp dry and itchy. This
sulfate - free shampoo cleanses and moisturizes at the
same time. Made from natural Raw Black Soap, it gets deep
down into the scalp to remove product buildup. The tropically -
scented blend contains a natural mix of Coco Seed Powder,
Plantain Skins, and Tea Tree Oil to protect and moisturize the
hair from scalp to root. No artificial thickening agents have
been added, but don’t be fooled by the watery texture. This
shampoo gets the job done. This product is 100% natural
and 100% organic.
Product Background:
The Moisturizing Black Soap Shampoo product was launched in
2014, with the majority of
sales coming from national retail stores. The product has not
undergone any significant
changes or improvements, with the exception of its packaging.
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D. 2
Sales Report:
2015 2016
Q1 Q2 Q3 Q4 Q1 Q2
Units Sold 381,0 0 9 36 5,775 366,0 0 8 338,9 9 0 296,9 9 0
275,776
Revenue $ 4,572,10 8 $ 4,389,30 0 $ 4,392,0 96 $ 4,0 67,88 0
$3,563,88 0 $3,30 9,312
Turnover
(Avg. days on shelf)
3.1 2.9 3.2 3.6 3.9 4.1
Market Share
(% of total discount retail
store shampoo sales)
3.8% 3.7% 3.7% 3.4% 3.0% 2.8%
Q U I C K D E F I N ITI O N S
QUARTERS
The financial world splits the year into four quarters, each 3
months long
Q1: Quarter 1, January – March
Q2: Quarter 2, April – June
Q3: Quarter 3, July – September
Q4: Quarter 4, October – December
UNITS SOLD
The number of total products sold in a given time period
REVENUE
The money received by a business for the sales of its products
in a given
time period
TURNOVER
The average number of days individual products sat on store
shelves
waiting to be sold in a given time period
MARKET SHARE
A company’s market share is its portion of total sales in relation
to
the market it operates within. For example, if a company sells
$100 million
worth of tractors a year domestically, and the total tractors sold
in the
United States is $200 million, the company’s US market share
for tractors
would be 50%.
User Survey Summary:
Consumers who purchased the Alikay Naturals Moisturizing
Black Soap Shampoo at any
one of the national discount retail stores were asked to complete
a survey. 2,000 consumers
responded.
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D. 3
ALIKAY NATURALS MOISTURIZING BLACK SOAP
SHAMPOO USERS (%)
Strongly
Disagree
Disagree
Neither
Agree
or Disagree
Agree
Strongly
Agree
My hair looks and feels
better after two weeks
of using Moisturizing
Black Soap Shampoo
8 22 32 22 16
I like the density and
consistency of Moisturizing
Black Soap Shampoo
relative to other shampoos
22 41 16 12 9
Moisturizing Black Soap
Shampoo leaves my
hair more hydrated
than other shampoos
6 26 18 21 29
Alikay Naturals leaves
my hair smelling
great relative to other
shampoos
22 31 20 18 9
Moisturizing Black Soap
Shampoo gives my
scalp a deeper clean
than other shampoos
2 8 18 43 29
Moisturizing Black Soap
Shampoo prevents
my scalp from feeling
dry and flaky
31 14 23 12 19
Moisturizing Black Soap
Shampoo will be the
only shampoo in my
shower in one month
32 14 23 12 19
I’d be more likely to
continue regular use of
Moisturizing Black Soap
Shampoo if it were
available at a lower
price point
4 22 44 18 12
What suggestions do
you have to improve
Moisturizing Black Soap
Shampoo?
“Too watery”; “Have to use too much to do the job”; “While I
feel
like the product works, I’m not a fan of the scent”; “I’d like
some-
thing I can put on my hand versus directly on my scalp”; “While
it
cleans effectively and dries out my scalp less than other sham-
poos, I wish it would treat dandruff”; “Seems like the quality
has
declined since I first tried it”
User Survey Summary (cont’d):
4
NEW PRODUCT PROPOSALS
Alikay Naturals Organic Bloom Shampoo
This custom product is designed to clean and moisturize hair
while stimulating significant
hair growth without residue buildup. This all-natural, organic
blend includes 14 of the best
essential oils and herbs that strengthen the hair at its
foundation. Hair follicles absorbes-
sential nutrients to promote growth and nurture fresh, new,
shiny hair. Our product in-
cludes many botanicals, such as Olea Europaea (Olive) Fruit
Oil, Simmondsia Chinensis
(Jojoba) Seed Oil, and the rare Emu Oil, which regrows hair by
increasing cellular activity at
the scalp. This one-of-a-kind product helps customers’ hair
bloom and flourish, leading to
impressive and almost unbelievable results.Some testers have
even seen up to four inches
of hair growth within ten weeks.
Alikay Naturals Moist Black Soap Shampoo with Dandruff
Control
Our original Moist Black Soap Shampoo is renewed and
improved to promote a healthy
scalp. Melaleuca alternifolia (Tea Tree) Oil prevents dandruff
by reducing scalp infections,
fungus and inflammation, and Horsetail Powder, a plant powder,
reduces dandruff due to
its silica content.These essentials break down undesirable
residue at the roots to support a
clean and moisturized scalp.This product may be ordered online
with custom scents mixed
according to your preference.This new twist on a classic
favorite is bound to revive hair and
scalp.
Alikay Naturals Coconut Protein Shampoo and Conditioner
Indulge your senses with this exclusive blend of organic
coconut milk to nourish your hair,
hydrolyzed keratin to add strength and elasticity, and weightless
coconut oils to add hydra-
tion and balance. This thick formula is fortified with Prunus
Amygdalus Dulcis (Sweet
Almond) Oil, a natural protein that envelops the hair shaft to
build strength and elasticity,
add softness, reduce frizz, and revitalize incredible shine. This
tropically-scented shampoo
will make your hair look, feel and smell great.
Non-User Survey Summary:
An online survey was conducted asking consumers that 1)
frequent any one of the national
discount retail stores and 2) have never used the Alikay
Naturals Moisturizing Black Soap
Shampoo about their shampoo preferences. 4,000 consumers
responded.
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D.
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D. 5
NON-USE RS, IN TARGET MARKET (%)
Strongly
Disagree
Disagree
Neither
Agree
or Disagree
Agree
Strongly
Agree
Having an organic
shampoo with all
natural ingredients is
important to me
2 9 14 52 23
I prefer a thicker
shampoo that is heavy
on proteins to revitalize
my hair
8 9 17 43 23
Most natural shampoos
I use are not rich in
proteins and don’t
provide additional
nutrition to the scalp
12 16 23 32 17
A daily dose of proteins
can strip out the
nutrients and therefore
is unsafe and unhealthy
for the hair
33 29 18 12 6
I use anti-dandruff
shampoo only under
a doctor’s recommen-
dation
16 48 18 12 6
Men and women should
have different hair-care
products
32 22 14 18 14
In my opinion,
shampoos with protein
conditioners cannot
be used on color-
treated hair
14 31 32 11 12
Assuming equal qual-
ity, I prefer a shampoo
+ conditioner in one
versus two different
products
12 6 54 18 10
I’d be willing to pay a
premium for a shampoo
that stimulates hair
growth
6 9 16 34 35
Non-User Survey Summary (cont’d):
S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0
1 6 . A L L R I G H TS R E S E RV E D. 6
NON-USE RS, IN TARGET MARKET (%)
Strongly
Disagree
Disagree
Neither
Agree
or Disagree
Agree
Strongly
Agree
I feel herbal shampoos
tend to be watery and
need to be used in large
amounts to create a
good lather
12 14 28 19 27
I choose my shampoo
based on its specific
function
12 7 22 30 29
The scent of a shampoo
is just as important as
its effectiveness
19 22 15 24 20
Keratin and soy proteins
give a better shine
to hair than artificial
foaming agents and
synthetic colors
3 7 15 45 30
Dandruff shampoo
effectively prevents
a dry, itchy scalp and
flakes
12 10 9 44 25
The shampoo industry
is already flooded with
too many effective
options
22 32 23 14 9
I am willing to pay more
for high-quality,
effective hair products
8 18 12 37 25
I value an all-natural
shampoo that reduces
dandruff
3 18 8 40 31
Non-User Survey Summary (cont’d):

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NAME INSTUCTORDATEAssignment 1Product Development.docx

  • 1. NAME: INSTUCTOR: DATE: Assignment 1 Product Development & Operations – Category Manager Analysis Due Date: Week 3 Note: While representative of possible situations faced by Alikay Naturals, all scenarios in this assignment are fictional. Real Business Let’s roll up our sleeves and use what we’ve learned this week in a real-life business situation. Each week, you’ll encounter a scenario where you will assume the role of a business person who works with or at a national discount retail store, like a Walmart or Target. These companies provide important, everyday staples for millions of people across the country and have become very successful businesses in the process. Discount retail stores have locations in communities across the country. They often have strong and recognizable brands that are household names. We will explore how business works throughout this course by taking on a few of the many different roles at successful companies like these. Your Role This week, you’ll assume the role of a Category Manager for the Beauty Products category at a national discount retail store. What Is a Category Manager?
  • 2. Category Managers are responsible for related groups of products (for example, baseball equipment or laundry detergents) for a retail business. They use research, information and insights about the category to change shopper behavior and increase sales of the products in the category. They also work with the suppliers of the products in their category to ensure that good products and services are available to customers. As a Category Manager, part of your role is to analyze data and information about how well a product is selling to help the maker of that product improve the product and consider introducing new products. Rochelle and her team at Alikay Naturals have asked you, the Beauty Products Category Manager, to review one of their products and determine where it lies in the product life cycle. Additionally, they have asked you to recommend ways to improve the product in order to increase sales. Instructions Step 1: Product Life Cycle Read the Product Report for Alikay Naturals Moisturizing Black Soap Shampoo. The Product Report contains important information that will help you to identify where the product stands in the Product Life Cycle and give you clues about what changes customers might like to see. Respond to Rochelle and her team at Alikay Naturals based on the information in the Product Report. · Identify where Moisturizing Black Soap Shampoo is currently positioned in the product life cycle. Underline your selection: Introduction Maturity Growth Decline Describe the rationale for your position.
  • 3. · Compose 3 questions that Rochelle should pose to her team to better understand the product’s positioning and potential at this particular stage in its life cycle. (E.g., if you have determined the product is in the Introduction Phase, you might suggest the question: How have competitors priced similar products?) Step 2: Product Changes Based on what you’ve learned: · What recommendation(s) do you have for Alikay Naturals to improve or replace Moisturizing Black Soap Shampoo? Step 3: New Product Development Read the New Product Proposal, which contains three examples of possible products that could be developed to replace Moisturizing Black Soap Shampoo. Based on the information in this proposal and the customer feedback in the Product Report: If you had to recommend one product, which product would you recommend they create? Underline your selection: Organic Bloom Shampoo Moisturizing Black Soap Shampoo with Dandruff Control Coconut Protein Shampoo and Conditioner Explain your decision. Determine which type of innovation this represents from among the four main types discussed this week. Underline your selection: Sustainable (eco-friendly)
  • 4. Frugal Sustaining Disruptive Briefly explain why you chose that type of innovation. Note: You should complete Steps 4 & 5 after reading the material in Week 3. Step 4: Production Methods Based on your understanding of Alikay’s position in the product life cycle and expected sales volume: Which production method do you think Alikay is using for the Black Soap Shampoo? Explain your rationale. If Alikay chose to keep the Moisturizing Black Soap Shampoo and launch your recommended product as a “limited time only” trial, what production method should Alikay use for the test market product? Why? Step 5: Real-WORLD APPLICATION Choose a product at your company or one that you are familiar with that is in the mature stage of the product life cycle. Briefly describe the product, why you believe it is in this phase, and what improvements could be made to change its current path.
  • 5. 1 BUS508: CONTEMPORARY BUSINESS Scaffolded TOK essay planning template TOK prescribed title: Possible knowledge claims and knowledge questions: What does this title ask you to discuss? How will you go about approaching the question? Which knowledge questions have you selected and why? Explain/show how they will contribute to the development of the discussion. Which areas of knowledge/ways of knowing will be included in your discussion? Explain how they will contribute to the development of the discussion.
  • 6. List and explain your real-life examples. How and why have you selected them? How will they contribute to the development of the discussion? What are the counter-claims and different perspectives to your discussion? Show how you will consider these in your discussion. What conclusions have you reached about your knowledge question(s)? What are the implications of this conclusion? What are my academic honesty requirements for this essay? List the references below that require citation or checking.
  • 7. Theory of knowledge prescribed titles © International Baccalaureate Organization 20182 pages Instructions to candidates Your theory of knowledge essay for examination must be submitted to your teacher for authentication. It must be written on one of the six titles (questions) provided overleaf. You may choose any title, but are recommended to consult with your teacher. Your essay will be marked according to the assessment instrument published in the theory of knowledge guide. The focus of your essay should be on knowledge questions. Where appropriate, refer to other parts of your IB programme and to your experiences as a knower. Always justify your statements and provide relevant examples to illustrate your arguments. Pay attention to the implications of your arguments, and remember to consider what can be said against them. If you use external sources, cite them according to a recognized convention. Note that statements in quotations in these titles are not necessarily authentic: they present a real point of view but may not be direct quotes. It is appropriate to
  • 8. analyse them but it is unnecessary, even unwise, to spend time on researching a context for them. Examiners mark essays against the title as set. Respond to the title exactly as given; do not alter it in any way. Your essay must have a maximum of 1600 words. May 2019 examination session – 2 – 1. “The quality of knowledge is best measured by how many people accept it.” Discuss this claim with reference to two areas of knowledge. 2. “The production of knowledge is always a collaborative task and never solely a product of the individual.” Discuss this statement with reference to two areas of knowledge. 3. Do good explanations have to be true? 4. “Disinterestedness is essential in the pursuit of knowledge.” Discuss this claim with reference to two areas of knowledge. 5. “The production of knowledge requires accepting conclusions that go beyond the evidence for them.” Discuss this claim. 6. “One way to assure the health of a discipline is to nurture contrasting perspectives.” Discuss this
  • 9. claim. ASSIGNM E NT Product Development and Operations Category Manager Analysis 1 DU E DATE Week 3 S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D. PRODUCT REPORT FOR ALIKAY NATURALS MOISTURIZING BLACK SOAP SHAMPOO Product Description: Finally, a way to get your hair and scalp truly clean with natural ingredients. Traditional cleansers tend to strip your hair of its natural moisture, leaving your scalp dry and itchy. This sulfate - free shampoo cleanses and moisturizes at the same time. Made from natural Raw Black Soap, it gets deep down into the scalp to remove product buildup. The tropically - scented blend contains a natural mix of Coco Seed Powder, Plantain Skins, and Tea Tree Oil to protect and moisturize the hair from scalp to root. No artificial thickening agents have been added, but don’t be fooled by the watery texture. This shampoo gets the job done. This product is 100% natural
  • 10. and 100% organic. Product Background: The Moisturizing Black Soap Shampoo product was launched in 2014, with the majority of sales coming from national retail stores. The product has not undergone any significant changes or improvements, with the exception of its packaging. S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D. 2 Sales Report: 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Units Sold 381,0 0 9 36 5,775 366,0 0 8 338,9 9 0 296,9 9 0 275,776 Revenue $ 4,572,10 8 $ 4,389,30 0 $ 4,392,0 96 $ 4,0 67,88 0 $3,563,88 0 $3,30 9,312 Turnover (Avg. days on shelf) 3.1 2.9 3.2 3.6 3.9 4.1 Market Share
  • 11. (% of total discount retail store shampoo sales) 3.8% 3.7% 3.7% 3.4% 3.0% 2.8% Q U I C K D E F I N ITI O N S QUARTERS The financial world splits the year into four quarters, each 3 months long Q1: Quarter 1, January – March Q2: Quarter 2, April – June Q3: Quarter 3, July – September Q4: Quarter 4, October – December UNITS SOLD The number of total products sold in a given time period REVENUE The money received by a business for the sales of its products in a given time period TURNOVER The average number of days individual products sat on store shelves waiting to be sold in a given time period MARKET SHARE A company’s market share is its portion of total sales in relation to the market it operates within. For example, if a company sells $100 million worth of tractors a year domestically, and the total tractors sold in the
  • 12. United States is $200 million, the company’s US market share for tractors would be 50%. User Survey Summary: Consumers who purchased the Alikay Naturals Moisturizing Black Soap Shampoo at any one of the national discount retail stores were asked to complete a survey. 2,000 consumers responded. S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D. 3 ALIKAY NATURALS MOISTURIZING BLACK SOAP SHAMPOO USERS (%) Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree My hair looks and feels better after two weeks of using Moisturizing
  • 13. Black Soap Shampoo 8 22 32 22 16 I like the density and consistency of Moisturizing Black Soap Shampoo relative to other shampoos 22 41 16 12 9 Moisturizing Black Soap Shampoo leaves my hair more hydrated than other shampoos 6 26 18 21 29 Alikay Naturals leaves my hair smelling great relative to other shampoos 22 31 20 18 9 Moisturizing Black Soap Shampoo gives my scalp a deeper clean than other shampoos 2 8 18 43 29 Moisturizing Black Soap Shampoo prevents my scalp from feeling dry and flaky
  • 14. 31 14 23 12 19 Moisturizing Black Soap Shampoo will be the only shampoo in my shower in one month 32 14 23 12 19 I’d be more likely to continue regular use of Moisturizing Black Soap Shampoo if it were available at a lower price point 4 22 44 18 12 What suggestions do you have to improve Moisturizing Black Soap Shampoo? “Too watery”; “Have to use too much to do the job”; “While I feel like the product works, I’m not a fan of the scent”; “I’d like some- thing I can put on my hand versus directly on my scalp”; “While it cleans effectively and dries out my scalp less than other sham- poos, I wish it would treat dandruff”; “Seems like the quality has declined since I first tried it” User Survey Summary (cont’d):
  • 15. 4 NEW PRODUCT PROPOSALS Alikay Naturals Organic Bloom Shampoo This custom product is designed to clean and moisturize hair while stimulating significant hair growth without residue buildup. This all-natural, organic blend includes 14 of the best essential oils and herbs that strengthen the hair at its foundation. Hair follicles absorbes- sential nutrients to promote growth and nurture fresh, new, shiny hair. Our product in- cludes many botanicals, such as Olea Europaea (Olive) Fruit Oil, Simmondsia Chinensis (Jojoba) Seed Oil, and the rare Emu Oil, which regrows hair by increasing cellular activity at the scalp. This one-of-a-kind product helps customers’ hair bloom and flourish, leading to impressive and almost unbelievable results.Some testers have even seen up to four inches of hair growth within ten weeks. Alikay Naturals Moist Black Soap Shampoo with Dandruff Control Our original Moist Black Soap Shampoo is renewed and improved to promote a healthy scalp. Melaleuca alternifolia (Tea Tree) Oil prevents dandruff by reducing scalp infections, fungus and inflammation, and Horsetail Powder, a plant powder,
  • 16. reduces dandruff due to its silica content.These essentials break down undesirable residue at the roots to support a clean and moisturized scalp.This product may be ordered online with custom scents mixed according to your preference.This new twist on a classic favorite is bound to revive hair and scalp. Alikay Naturals Coconut Protein Shampoo and Conditioner Indulge your senses with this exclusive blend of organic coconut milk to nourish your hair, hydrolyzed keratin to add strength and elasticity, and weightless coconut oils to add hydra- tion and balance. This thick formula is fortified with Prunus Amygdalus Dulcis (Sweet Almond) Oil, a natural protein that envelops the hair shaft to build strength and elasticity, add softness, reduce frizz, and revitalize incredible shine. This tropically-scented shampoo will make your hair look, feel and smell great. Non-User Survey Summary: An online survey was conducted asking consumers that 1) frequent any one of the national discount retail stores and 2) have never used the Alikay Naturals Moisturizing Black Soap Shampoo about their shampoo preferences. 4,000 consumers responded. S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D.
  • 17. S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D. 5 NON-USE RS, IN TARGET MARKET (%) Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree Having an organic shampoo with all natural ingredients is important to me 2 9 14 52 23 I prefer a thicker shampoo that is heavy on proteins to revitalize my hair 8 9 17 43 23 Most natural shampoos
  • 18. I use are not rich in proteins and don’t provide additional nutrition to the scalp 12 16 23 32 17 A daily dose of proteins can strip out the nutrients and therefore is unsafe and unhealthy for the hair 33 29 18 12 6 I use anti-dandruff shampoo only under a doctor’s recommen- dation 16 48 18 12 6 Men and women should have different hair-care products 32 22 14 18 14 In my opinion, shampoos with protein conditioners cannot be used on color- treated hair 14 31 32 11 12
  • 19. Assuming equal qual- ity, I prefer a shampoo + conditioner in one versus two different products 12 6 54 18 10 I’d be willing to pay a premium for a shampoo that stimulates hair growth 6 9 16 34 35 Non-User Survey Summary (cont’d): S T R AY E R U N I V E RS I T Y | CO PY R I G H T © 2 0 1 6 . A L L R I G H TS R E S E RV E D. 6 NON-USE RS, IN TARGET MARKET (%) Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree
  • 20. I feel herbal shampoos tend to be watery and need to be used in large amounts to create a good lather 12 14 28 19 27 I choose my shampoo based on its specific function 12 7 22 30 29 The scent of a shampoo is just as important as its effectiveness 19 22 15 24 20 Keratin and soy proteins give a better shine to hair than artificial foaming agents and synthetic colors 3 7 15 45 30 Dandruff shampoo effectively prevents a dry, itchy scalp and flakes 12 10 9 44 25
  • 21. The shampoo industry is already flooded with too many effective options 22 32 23 14 9 I am willing to pay more for high-quality, effective hair products 8 18 12 37 25 I value an all-natural shampoo that reduces dandruff 3 18 8 40 31 Non-User Survey Summary (cont’d):