YOU DECIDE
Scenario Analysis

YOU DECIDE
Scenario Analysis

1.
Analysis of the Consumer Products Proposal, in my opinion is nothing more than a ploy to confuse and deceive the consumer into thinking they are getting something new when in reality it is the same product with a definition of the ingredients that cannot be proven or supported. Federal Trade Commission (FTC) guidelines are very specific in the requirements for environmental marketing claims. There must be qualifications and disclosures as well as a distinction between the benefits of the product, packaging, and service. Therefore, developing a new product line that will be promoted as safe, effective, and eco-friendly and priced at one and one-half times the current price may be too risky a plan to pursue. While this approach may provide a substantial net profit increase; it must be considered that it could also provide a much larger downside without further research and development to ensure compliance with the FTC’s guideline for environmental claims. Development of a private label for sale by Wal-Mart, K-Mart, and other selected outlets would definitely be a good approach to expanding the market that would conceivably increase market share and net profits with the appropriate marketing strategy and implementation of the marketing plan. This label, in my opinion, could very well include an upholstery cleaner that would fit very well in the marketing plan for carpet cleaning products.
The consumer plan, as described here, will work well for a short period of time. The reason I say this is because the plan is described as a plan that implies a new product when in reality, it is the same product with the description and labeling altered in an attempt to fool the consumer into believing it is a newly developed product. The expansion of the market into