Tuesday 21 October 2008

Question 10

Question 10 - EasyClean

EasyClean has been involved in the production of a range of cleaning products since the early 1970s, with the aim of producing affordable, high quality goods. Over the years, EasyClean has developed a wide product range in response to changing consumer demands.

CreamClean is the oldest product in the range and is a multi-purpose, no frills cleaner. In attempt to boost flagging sales in the early eighties, the product was repackaged and two new fragrances were added. Sales levels improved a little, but over the last ten years, demand for CreamClean has steadily dropped.

HandyClean range was initially launched just over ten years ago and comprises of a kitchen and bathroom cleaner, both packaged in an easy to use spray bottle. HandyClean was an instant success and sales still remain high.

FoamClean is a relatively new foam-based product that has not been as successful as EasyClean had hoped. Although initial demand for the timesaving product was high, to EasyClean’s surprise, sales have recently started to fall.

AntiBacClean is a hugely successful product, which entered the market just over two years ago. Since then, sales have steadily increased and show little sign of slowing down.

QuickClean simply requires the user to spray the product and leave it to clean. It is the latest product to be launched onto the market and demand is still low.

ProtectClean, a product that contains an active protective ingredient to prevent staining, is currently undergoing development. The development process is becoming very costly but the managers at EasyClean are determined to continue with it. In the competitive market of cleaning products, innovation and product development is a key way to protect market share.

Questions

1. a) Describe the stages of the product life-cycle. (2 marks)

b) At what stage of the product life-cycle are EasyClean’s products? (4 marks)

c) Comment on the balance of EasyClean’s product portfolio. (4 marks)

2 a) Explain what you understand by the term ‘extension strategy’. (3 marks)

b) Explain the reasons for the failure of the extension strategy used for CreamClean.

(4 marks)

3. Evaluate the likely success of ProtectClean. (8 marks)


No comments: