The team has been charged with reviewing quarterly results for the LusterLast moisturizing shampoo, called SatinSmooth. The
Question:
The team has been charged with reviewing quarterly results for the LusterLast moisturizing shampoo, called SatinSmooth. The product is new to the line and is sold mostly in drugstores and grocery stores. The product that has been on store shelves for a year has kept pace with movement through the product life cycle, and though the category is in the introductory phase, it has shown a profit, but little increase in customer selection through the year.
The shampoo's claim to fame is its formulation of shea butter from Senegal that strengthens hair follicles and Brazilian oil emollients that deep condition the hair after shampooing leaving the hair thick, shiny, and easy to manage. No other product on the market has these ingredients, and it is predicted that the company has another year before competitors decide to offer their version of the product and solicit the attention of the target customer segment, which at this time are women between the age of 16 to 75, who are image-conscious, not particularly price-sensitive, and shop at their local drugstore. Further, they tend to rely on friends, family, and their hairdresser to recommend health and beauty aids.
The brand's closest competitive rival is BetterHair with their product: ShineStyle does not have a shampoo with the shea butter, but they do have a product that addresses weakened hair and maintenance ease. Nonetheless, their shampoo does not have natural ingredients. The active ingredients in ShineStyle? are synthetic, that is, manmade. The ingredients in their formula most often highlighted in their advertising are patented. They are NutraFeed? and ShineHold?.
Take a look at the provided numbers, calculate the below, and offer recommendations as to what the company should do.
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