Organic Cleansing Conditioner
In the beauty industry, customers buy products that suit their needs best. According to Technavio (2015), customers are seeking hair products based on the problems they need to solve. Holfbaum (2009) states that the overall pace of life has increased by 10% if compared to the mid-90s. Consequently, people appreciate convenience and doing things faster to correspond with the lifestyle. People are therefore looking for conditioners that cleanse their hair using organic gathered products and products that save their time and function.
Dove organic cleansing conditioner will help consumers, who want their hair to be healthy and nutritious, replace the normal shampoo organic hair conditioner that reduces the time of hair cleaning and also keeps hair clean for a long time. This paper will focus on measurement of performance of the Dove organic cleansing conditioner, its predicted lifecycle as compared to other products in the company, and analyzing the product in ethical, social, and environmental aspects.
It is very important to design products performance indicators. This helps the company to understand the amount of revenue a given products brings on the market as compared to other products (Croll & Yoskovitz 2013). The key terms that should be mentioned in the products performance are:
- Revenue: the total amount of dollars that Dove organic cleansing conditioner (DOCC) will have generated within a given period of time;
- Units sold: the total number of Dove organic cleansing conditioner containers that Unilever will have sold;
- Purchase Value: the total purchase value for each dollar generated from the purchase order of Dove organic cleansing conditioner.
After designing the key factors, the key success indicators will be:
- Increase in sales revenue of Unilever Company;
- Increased in the number of units sold;
- Increase in the average dollar value generated in every purchase order.
In order to have practical key performance indicators (KPIs), it is important to state business goals of the product. The goal of Dove organic cleansing conditioner is to meet the needs of the customers, provide hair conditioners that are organically generated, save time, and have a cleansing effect. The table below indicates the vision the board wants to meet using Dove organic cleansing conditioner.
The Product Vision Board
Vision: manufacture products that meet customers’ needs
To make the goals measurable hence having appropriate KPIs, the company will have to use ratios and ranges. According to Croll and Yoskovitz (2013), instead of quoting the exact amount of revenue to be generated, a company should state the percentage of revenue expected after a given year/period. For Dove Company, the expected revenue increase from selling the organic cleansing conditioner is 10% within one year of launching. If the revenue increase falls to the level of 5 to 10%, it will indicate that the product is doing well on the market. If the revenue increase is below 5%, it means that the goal has not been achieved yet.
Another idea of measuring performance of organic cleansing conditioner is using quantitative and qualitative KPIs. In quantitative measurements, Unilever will measure:
- Number of customers buying Dove organic cleansing conditioner daily;
- The amount of revenue generated daily from the organic cleansing conditioner;
- Number of consumers requiring customer services of the product.
On the other hand, qualitative measurement will involve:
- Getting feedback from consumers;
- Checking the rates of advertisements online;
The two types of indicators will help the board understand how the product is doing. Additionally, this will help reduce ignorance of the most important factors of the product success.
Lagging and leading indicators will play a key role in performance measurements. Lagging indicators are like revenue, cost, and profit. These indicators will tell the management about the outcomes of the past actions and the focus based on the new product. Leading indicators, on the contrary, will help the management understand whether the new product meets the goals (Bhatti, Awan, & Razaq 2013). There is an increase in customers demanding healthy, nutritious, and time-saving products. If Dove organic cleansing conditioner will satisfy the customers’ needs, it will indicate that the company has met the customers’ demand and the goals will be reachable.
Financial and customer indicators are very important factors for measuring products performance. However, if the customers are satisfied and the revenue and profits are improving but the team motivation is deteriorating, there will be a danger in future performance of the product. If the team is not motivated, it will be very difficult for a product to achieve the successes of the product in future. Therefore, focusing on financial and customers’ indicators will be very important.Lastly, the product’s scorecard will be used to measure its performance. A balanced scorecard of the product should contain the business goal, financial, customer, process, product, and people sections (The Balanced Scorecard 2016) indicted in the table below:
Product lifecycle is the process of examining the inputs and outputs of materials and amount of environmental impacts associated with a given product or service (The Global Development Research Center 2016). The process involves:
- Making an inventory of outputs and inputs associated with the product;
- Assessing the potential environmental impacts of the given inputs and outputs;
- Understanding results of the inventory and impacts in association with the objectives of the board.
There are various models of predicting the lifecycle of a product. To understand the lifecycle of Dove organic cleansing conditioner, managing product to maximize success (Mindtools 2016) model will be applied. There are four phases of the model:
Just like the graph indicated below, the initial stage of Dove organic cleansing conditioner will use many resources for the revenue. This cost will be received from production and promotion of the conditioners. The advertising will shift from other products to the Dove organic cleansing conditioner. The amount used will come from the sales of other Dove products. In addition, during the introduction stage, the organic conditioner will be sold at a low price for the intension of promotion, which will allow it to adapt to the new market.
At the growth stage, advertising Dove organic cleansing conditioner will focus on expanding the market and introduction of new segments. The level of advertisement will be relatively lower than at the introduction stage. There will be a balance between the advertisements of Dove organic cleansing conditioner and those of other Dove products.
From growth to maturity stage, we expect the product to reap considerable amount of revenue for Unilever Company. The product advertisements will now concentrate on differentiating it from other competitive products. The marketing activities will however be less than on the initial stage of the lifecycle. Finally, if the products’ sales decline, the management will have an option of withdrawing the product from the market (Mindtools 2016). The amount of sales will be the main measurement of Dove organic cleansing conditioner’s success. If the sales and revenue are lower than the time and resources employed in production, then the product will have to leave the market.
The advantage of the model is the fact that it gives management the chance to control the lifecycle of a product until the maturity stage. In Dove case, it will be able to control amount of promotion and production of Dove organic cleansing conditioner as compared to other products. However, the model has its shortcomings. One of them is that it does not estimate the length of each stage. It becomes risky if the initial stage tales a longer period than the maturity stage. This means that the product will have less time to bring profit than the company had to promote the product. In addition, the model advocates exiting the market at the decline stage. Therefore, it gives the board a chance to accept failure which would have rather be controlled in the maturity stage.
Consideration of ethical, social, and environmental aspects
There are so many factors that are taken into consideration when introducing new or promoting the existing products. Ethical issues are important aspects that organizations cannot ignore (Ethical Realism 2016). Ethical aspects need to be considered in:
- Responsibility of the company to the consumers
- Dove will focus on giving customers what they pay for;
- The information on the product will be genuine;
- Dove organic cleansing conditioner will concentrate on harming no one, not even employees or consumers;
- Product safety
- Dove organic cleansing conditioner will comply with the “caveat emptor” (Ethical Realism 2016), which encourages business to make buyers aware of what they are buying;
- Dove and Unilever, through the new product, will ensure that the public is protected from injuries, bans or any other risk associated with Dove organic cleansing conditioner production;
- Dove will give priority to safety, not to money generation;
- Dove will monitor the manufacturing process for safety of employees;
- Labelling and packaging will be the main source of information about the product;
- The goal of advertisement will be conveying correct information and not deception or unfair advertisements;
- Dove organic cleansing conditioner will correspond to the needs of healthy, nutritious, and time-saving hair conditioner;
- Dove will comply with the Federal Trade Commission’s Role (Ethical Realism 2016).
Environmental issues are other issues that affect the business either positively or negatively (Smallbusiness 2016). Dove will ensure the protection of environment through:
- Waste management;
- Sustainable development of raw materials;
- Minimization of emissions.
From the social aspect, any business has social responsibility (Branch 2016). Some of the key social issues, that Dove organic cleansing conditioner will consider, include:
- Health and safety at workplace;
- Protection of employees’ rights;
- Avoiding discrimination;
- Shared growth on economy;
- Shareholders involvement;
- Community development.
When creating Dove organic cleansing conditioner, the management must have policies that govern production of the new product. These policies include:
- Pricing policies;
- Branding policies;
- Manufacturing policies;
- Safety polices.
Branding policies can be negotiated by the management. The management may decide to reduce branding on consumer choice, increasing non-branded information on consumer choice, and use branding of its other products. All these choices have a consequence (Truong et al. 2016). For instance, reduction of branding of packaging will have a negative effect on the company, since most consumers will pay their attention to the brand. On the other hand, increased non-branding strategies, such as placing larger labels on nutrition information, attract more consumers who are nutrition driven, which is the purpose of Dove organic cleansing conditioner. Lastly, ‘copycat’ branding may result in consumers buying the initial products rather than the new product. Therefore, branding will affect the sales of a product.
Dove organic cleansing conditioner is a new product that focuses on the health, nutrition, and tame-saving of customers. After introducing the product into the market, Dove will look at the performance of the product especially from the customers’ feedback, the profit, and amount of value addition. Although the company is concentrating on increasing the sales and meeting the needs of the customers, Dove has to predict the lifecycle of the new product.
The model proposed is the one that monitors introduction, growth, maturity, and decline stages. Each stage will help the management understand whether the product is meeting the required goals. Besides, the company has social, ethical, and environmental responsibility towards its consumers and the society. All activities that take place in the production, promotion, and selling of Dove organic cleansing conditioner should consider the three factors of its success. Branding, on the other hand, is a method of creating awareness. However, the way a company creates brands for its product will determine the impacts of these products on the consumers’ choices and buying power.