Typically, shampoos marketed by large packaged-goods manufacturers (e.g., P&G) contain detergents to help clean oil from the

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Question:

Typically, shampoos marketed by large packaged-goods manufacturers (e.g., P&G) contain detergents to help clean oil from the follicles of hair. There may also be other ingredients to accomplish specific outcomes, such as reducing dandruff. As you know, there is a growing fringe movement of a few consumers who eschew the use of branded hair shampoos in favor of home remedies. Suppose an entrepreneur invents a "natural" hair-care product that has egg yolks and rice water as ingredients instead of the typical detergent in shampoo. Besides testing the product on himself, the entrepreneur has also conscripted many of his friends and family members to test his new product. The verdict: The product works well, but it takes about 2 weeks for the benefits of using it to appear. Prior to that, the product tends to leave the hair a bit matted until it adapts to the new formulation. However, given the success of the product and the burgeoning demand for natural hair care products, the entrepreneur invests $100,000 of his money buying supplies and getting suitable equipment to produce the new shampoo. Also, there is no other natural shampoo like his currently on the market. To start, he decides to approach natural health care stores (e.g., Nature's Market) to get his new product on the shelves. His long-term goal is to get widespread distribution of his product (e.g., Whole Foods). In the meantime, for his initial communication program, he is considering two approaches, both directed at the end-user:

(a) One is to offer small single-use sample-size packets for 99 cents.

(b) The other approach is to offer a coupon with a face value of $2.00 for a bottle of the shampoo that retails for $16.99.

Which approach do you recommend, (a) or (b)?

Assume the financial implications of the options are similar. In your analysis, focus on the communication aspects of the options. Begin your answer with the approach you recommend, either A or B, then briefly justify your recommendation. Be sure to explain why your recommended approach is superior to the other approach.