Questions below refer to the
following report.
Catherine
Cosmetics Company
Sales
Department Meeting Report March 29,
We
reviewed the sales figures for the past quarter. We are currently experiencing
a significant drop in sales in our hair care products. This has been going on
since the beginning of the year when we introduced the improved version of our
top-selling hair care line, Catherine's Curls. Our advertising has not been
successful in convincing more consumers to buy these products. We know there is
a market for products such as these manufactured with 100% natural ingredients
and no testing on animals. In fact, our competitors are doing quite well in
this area and have been for a number of years. We know from our research that
the popularity of all-natural cosmetic products is more than just a passing
fad, and this is why we decided to branch out into this area. We have carefully
compared our products to those of our three largest competitors. We have looked
at product ingredients, packaging, target consumers, pricing, and sales
strategies. Our product is similar, or even better, in all ways but one. Our
packaging is significantly less eye-catching than that of our competitors, and
it does not convey the important aspects of the products to the consumer, that
is, that these products are entirely made with natural ingredients. Therefore,
in order to attract more customers, we recommend employing a new designer to
create better packaging for the Catherine's Curb line of products.