BUS 100 Assignment 3 Product Life Cycle 2

19 May No Comments

BUS 100 Assignment 1 Week 3


In looking at the Product life cycle of the Moisturizing Black Soap Shampoo, I have determined that it is at a decline. I say this because when I look at the sales from Q1 of 2015 and compare them to the sale of Q1 of 2016 there have been many changes. There has been a decline in units sold- 105,233; drop in revenue-$1,262,796; and a raise in turn over- 1. This shows that the product is on the state of decline because it is not holding steady or improving numbers.

The moisturizing Black Soap Shampoo could be a better product to have the numbers improve if there could be some changes. In reading the reports from the customers, if there are some small changes this could be a better product and possibly attract new customers. Some of the concerns or changes that could be made is the consistency if the shampoo, if it could be thicker. If the product could help with dandruff control, dry scalp and smelled more appealing, it would be a popular in the sales again.

After reviewing the customers feedback and the new product line review there can be a positive change. I would suggest that replacing the Moisturizing Black Soap Shampoo with the Coconut Protein Shampoo and Conditioner. I say this because some of the complaints of the customers were that they would like a thicker or better consistency of a shampoo. They also stated that a more appealing smell was important. In attracting new customers, they would like to have a shampoo and conditioner mixed shampoo, great smelling, and all natural.

This type of change would be considered as disruptive innovation. I say this because we are changing the product altogether. This is a product that the customers have never seen before and will appeal to a larger market.

To start the process, I think that batch production would be the best fit. Looking at the sales of the Moisturizing Black Soap Shampoo units could be made this way. Yes, we are looking to sell much more, but we would need to be cost effective and see reports of the sales before we move on to flow production. In Q1 of 2015 the Moisturizing Black Soap Shampoo sold 381,009 units and at Q2 of 2016 sold 275,776 units. I feel that this could be done in batch and that there is no need for an assembly line.

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