Prof.Dan

NSTRUCTIONS

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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 and 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? Explain your decision.

• Determine which type of innovation this represents from among the four main types discussed this week. Briefly explain why you chose that type of innovation.

Note: You should complete Step 4 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 only͟ 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.

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  ASSIGNMENT

  Product Development and Operations Category Manager Analysis

  DUE DATE

  Week 3

  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.

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  STRAYER UNIVERSITY | COPYRIGHT © 2016. ALL RIGHTS RESERVED.

  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%