[ANSWER] product life cycle |Business & Finance

product life cycle |Business & Finance

Read the Product Report for Alikay Naturals Moisturizing Black Soap Shampoo (SEE ATTACHMENT).

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 The Alikay Management 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:

· Introduction

· Maturity

· Growth

· Decline

Once you have identified the position and provided a rationale for your position, compose 3 questions that Alikay Management should pose to their 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?

· Organic Bloom Shampoo

· Moisturizing Black Soap Shampoo with Dandruff Control

· Coconut Protein Shampoo and Conditioner

Once you have identified an alternative product for them to create, explain why you chose that particular product.

Next, determine which type of innovation this represents from among the four main types of innovation discussed thus far:

· Sustainable (eco-friendly)

· Frugal

· Sustaining

· Disruptive

Once you have made your determination, briefly explain why you chose that type of innovation.


Response to each step in this assignment should be no more than a couple of paragraphs in length.

Assignment should also follow APA guidelines with proper citations using Times New Roman double spaces, a cover page, a reference page etc


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.


Sales Report:

2015 2016

Q1 Q2 Q3 Q4 Q1 Q2

Units Sold 381,009 365,775 366,008 338,990 296,990 275,776

Revenue $4,572,108 $4,389,300 $4,392,096 $4,067,880 $3,563,880 $3,309,312

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%


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.



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):



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.




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):



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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