CASE ANALYSIS: JADE SHAMPOO (A) Harvard Case Solution & Analysis



Jade shampoo was known as a pioneer brand in the industry of health and beauty aid (HBA).The shampoo was known as the leading shampoo all over the industry capturing a market share of almost 5% which was expected to grow at a same steady rate however; the market of shampoo was highly volatile. Moreover, the brand was making its position in over 200 categories of shampoos and the members of the industry were facing high variation in the sales and profits of Branded shampoo because of the volatility and the changing needs and trends of the market and customers.

Moreover, it was also noted that the customers nowadays were more focused and dependent on the purchase of that shampoo which was easy and convenient to use.The factors for convenience included the easy of washing the bottle, the process of squeezing the shampoo from the bottle etc. however, it was also noted that customers were preferring those shampoos which were convenient to use as per the criteria which has discussed above.
The company was also focusing towards the change in its brand physical composition in order to increases its sales and profits, and in order to do so it tested a market and found some surprising results which would be discussed in the problem statement. However, the company did research and found that those competitors,who have changed their bottles’ shapes and made them more convenient,are enjoying higher growth and profits.The problems which the company was facing while considering the idea of changing the shape of the bottle and to implement the new and advanced product to the market will be discussed in the next section.Moreover, the cost and benefits associated with these changes will be also discussed in the case analysis later on.

Problem Statement

The company was considering the idea to change the shape of the bottle cap of the shampoo in order to make it more convenient for the customers and to grow its brand recognition and reputation however, the company was also seeking to increase its brand’s market share and its profits in order to compete with the rivals as well as to maintain their brand’s image in the market.
In order to do so the company considered to change the tradition twisting cap of its shampoo with the dispenser cap which would lower the chances of leakages, falling of the shampoo and will make use of the shampoo more convenient for the consumers. The assistant production manager,Kennedy,conducted a market survey and found that why the sales of the Jade Shampoo was declining. The reason she found the decline in sales was the inconvenient shape of the bottle of Jade and therefore, the rivals were growing since they have changed their cap shapes.
In order to get more precise and perfect results she took permission from the management for free sampling of the Jade bottles with the existing and the new cap and she asked customers to test the shampoo for two weeks, in the first week the customers used the old traditional bottle and then the new bottle. Kennedy called the customers at the end of the second week and asked what difference they found in both the bottles, and majority of the consumers said there was no difference in the product but the cap was different of both the shampoos and the shampoo which they used in the second week was more convenient.................

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