ASSIGNMENT
DUE DATE
Product Development and Operations
Category Manager Analysis
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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1
Sales Report:
2015
Units Sold
Revenue
Turnover
(Avg. days on shelf)
2016
Q1
Q2
Q3
Q4
Q1
Q2
381,0 09
365,775
366,0 08
338,990
296,990
275,776
$4,572,108
$4,389,30 0
$4,392,096
$4,067,880
$3,563,880
$3,309,312
3.1
2.9
3.2
3.6
3.9
4.1
QUICK DEFINITIONS
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
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.
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User Survey Summary (cont’d):
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
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 effectively and dries out my scalp less than
others, I wish it would treat dandruff”; “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”
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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.
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Non-User Survey Summary (cont’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
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
35
29
18
12
6
I use anti-dandruff
shampoo only under
a doctor’s recommendation
16
48
18
12
6
In my opinion, shampoos with protein
conditioners can not be
used on color-treated
hair
14
31
32
11
12
Assuming equal quality, I prefer a shampoo
+ conditioner in one
versus two different
products
12
6
34
38
10
The scent of a shampoo
is just as important as
its effectiveness
12
16
15
37
20
Keratin and soy proteins
give a better shine
to hair than artificial
foaming agents and
synthetic colors
3
7
15
45
30
I value an all-natural
shampoo that reduces
dandruff
3
18
8
40
31
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5
NAME:
INSTRUCTOR:
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.
1
BUS100: INTRODUCTION TO BUSINESS
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
Please describe the rationale for your position.
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BUS100: INTRODUCTION TO BUSINESS
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? Please support your recommendation(s).
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. Provide examples of the customer feedback that informed your choice.
• Determine which type of innovation this represents from among the four main types discussed this week.
Underline your selection:
3
BUS100: INTRODUCTION TO BUSINESS
•
•
•
•
Sustainable (eco-friendly)
Frugal
Sustaining
Disruptive
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 the product you chose in Step 3:
• Determine which production method is most appropriate for the production of this product. Explain your
decision.
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BUS100: INTRODUCTION TO BUSINESS
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