INTRODUCTION

It is early $2014.$ A leading global skincare manufacturer,

Health & Beauty Co$.($HBC$),$ has been losing market share in

the hand and body lotion market. While the firm still leads its

competitors in market share in this segment of personal care,

it seeks to stem further share erosion and, to that end, has

recently developed a strategy to recover market share through

rebranding, advertising, and repackaging. The situation is

especially critical since a large competitor is believed to be

launching a new skincare product in the near future.

Your task as senior financial analyst is to draft the capital

expenditure proposal related to the new packaging proposal.

Information to support you in this task follows. You should

complete the firm$$s capital expenditure template included in

Appendix $1.$

BACKGROUND:

The U$.$S$.$ skincare market has been growing at an average

rate of $4\%$ over the past three years and is estimated to reach

$$11$ billion in $2018.$ This market includes facial, body, and

hair care, as well as other makeup segments. HBC holds

a leadership position in the hand and body lotion market

but needs to evolve to meet consumers$$ growing needs and

compete with an ever$-$increasing number of competitors.

Recent market research by HBC revealed that consumers

perceive the current packaging as outdated: old, generic,

Section $4$: Ethical considerations

Identify ethics issues of repackaging$/$rebranding a product without improving it$.$ Also, consider if it is ethical to in$-$

crease the price without improving the product