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ASSIGNMENT Product Development and Operations Category Manager Analysis D U E DAT E Week 3 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE 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.

1 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. 2015 2016 Q1 Q2 Q3 Q4 Q1 Q2 Units Sold 381,009 365,775 366,008 338,990 296,9 9 0 27 5 ,7 76 Revenue $ 4,572,108 $4,389,300 $4,392,096 $ 4 , 0 67, 8 8 0 $3,563,880 $3,309,312 Turnover (Avg. days on shelf) 3.1 2 .9 3.2 3.6 3.9 4.1 Sales Report: QUICK DEFINITIONS QUARTERS The financial world splits the year into four quar ters, each 3 months long Q1: Quar ter 1, January – March Q2: Quar ter 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 TU RNOVE R The average number of days individual products sat on store shelves waiting to be sold in a given time period 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. 2 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. ALIK AY NATURALS MOISTURIZING BLACK SOAP SHAMPOO USERS (%) Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree My hair looks and feels better af ter two weeks of using Moisturizing Black Soap Shampoo 8 10 32 34 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 34 25 18 1 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 32 22 15 12 19 Moisturizing Black Soap Shampoo will be the only shampoo in my shower in one month 15 33 8 38 6 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 something I can put on my hand versus directly on my scalp”; “While it cleans ef fectively and dries out my scalp less than others, I wish it would treat dandruf f ”; “Seems like the quality has declined since I first tried it ”; “I wish it had a more appealing smell”; “This shampoo doesn’ t have the same thick consistency as other shampoos” User Survey Summary (cont’d):

3 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 absorb essential nutrients to promote growth and nurture fresh, new, shiny hair. Our product includes 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 Moisturizing Black Soap Shampoo with Dandruff Control Our original Moisturizing 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. 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 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 provide hydration and balance. This thick formula is fortified with Prunus Amygdalus Dulcis (Sweet Almond) Oil, a natural protein that envelops your 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. STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D.

4 STR AYE R U N IVE RSIT Y | COPYRIGHT © 2016. ALL RIGHTS RESE RVE D. NON-USERS, IN TARGET MARKET (%) Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree Having an organic shampoo with all natural ingredients is impor tant 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 35 29 18 12 6 I use anti-dandruf f shampoo only under a doctor’s recommen - dation 16 48 18 12 6 In my opinion, sham - poos with protein conditioners can not be used on color-treated hair 14 31 32 11 12 Assuming equal qual - ity, I prefer a shampoo + conditioner in one versus two dif ferent products 12 6 34 38 10 The scent of a shampoo is just as impor tant as its ef fectiveness 12 16 15 37 20 Keratin and soy proteins give a better shine to hair than ar tificial foaming agents and synthetic colors 3 7 15 45 30 I value an all-natural shampoo that reduces dandruf f 3 18 8 40 31 Non-User Survey Summary (cont’d):

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