You've had a good run as manager for a leading brand of leave-in conditioner. The product performs better than competition in taming frizzy hair, and
You’ve had a good run as manager for a leading brand of leave-in conditioner. The product performs better than competition in taming frizzy hair, and has commanded a premium price for many years. But now you’re nervous. There’s been a gradual but steady decline in sales over the past three quarters. While the reason is unclear, regular MIS reports have pinpointed two possibilities. First, customer comments on your website suggest that people are shifting to free-flowing, natural styles and prefer conditioners that don’t leave a residue on their hair. Second, competitive tracking reveals that new market entrants are significantly undercutting your price. Denise reminds you that an exploratory focus group homed in on the styling change. Of course, focus groups – while not representative of the buying population — are useful for providing consumer insights. But she’s new to the company, and may not know that recent groups have had problems with participants who seem more interested in their stipends than in the product. Also, focus group research on your brand has frequently proved unreliable. The price factor has been highlighted by your firm’s customer advisory board. Like a focus group, the board is small and does not represent a true cross-section of buyers. However, it is made up of loyal customers who feel connected to the company and invested in its success. Moreover, the board has a track record of offering reliable feedback. Neither source is perfect, and the information you have is far from conclusive. But there’s nothing else to go on for now. Top management is under pressure from investors and anxious to take action, but wants to make sure the company is set up for long term success. You can’t effectively address both issues at once, so you must decide which one is more likely to be causing the sales decrease
*You’re ready to dig deeper into the planning process. In this assignment, you’ll consider how to gather information to answer specific marketing questions, such as what customers expect from a product such as yours and how they view competing products
