Clean & Brite New Toothpaste Brand Launch - Assesmemnt Answer

Introduction

The Clean & Brite product manager is debating whether or not to launch a new toothpaste brand. There is a chance that the new product will bomb. The report evaluates the new product's chances of success and failure and its impact on Clean & Brite's bottom line.

Clean & Brite, a toothpaste manufacturer, aims to introduce a new brand of toothpaste to consumers. The Clean & Brite Ltd.product manager is unsure if releasing a new toothpaste would be profitable. The future of the new toothpaste product is uncertain. In order to make a well-informed choice, it is crucial to investigate the expected market value of each potential outcome. This report calculates the chances that Clean & Brite Ltd.Company's new toothpaste brand will be a hit or a flop. The research report also evaluates the new toothpaste's potential for financial success. To clean decks, fences, logs,siding,as well as masonry surfaces without using harmful bleach, nothing beats Clean & Brite. This outdoor cleaner is safe for the environment and does an excellent job [1].

One-step cleaning is easy with Clean & Brite. Due to the need for extensive rinsing after use, this concentrated gel is best left to the great outdoors. It is a combination of phosphoric acid as well as mild detergents and additives. The concentrate should be diluted with water at a ratio of 3:5–10:1, depending on the desired final strength. Apply the solution generously, wait 30–40 minutes for it to activate, and then scrub as well as pressure wash it off, making sure to thoroughly rinse the area. Unless the paint, stain, or sealant is already loose, flaking, or peeling, it will not remove it. Our two-step C&Bformula is ideal for heavily weathered or stained wood, as well as wood that needs the removal of failed oil-based finishes.

The most efficient and fruitful product strategies: Do a lot of research on your intended audience. The product team needs to be kept on track and in harmony. Facilitate feature prioritisation and resource allocation for PMs. A company's product strategy is its overarching goal for the product and its intended means of achieving that goal.

A marketing strategy is aset of coordinated actions designed to increase a company's target market share. Marketing methods include, for instance, using online resources like social media and search engines to raise brand recognition [2]. Product strategies help users understand what they should do to contribute to the company's objectives. Developing a comprehensive plan for the product is essential for meeting deadlines and maximising productivity.

Background

Clean & Brite estimates that future profits from sales of the new product will be $1,800,000 if the product is a success. However, the business stands to lose $750,000 if the newly launched item is a bust. However, if C&B fails to advertise the freshly launched brand, it will see no change in revenue from its current product lines. If the launch goes well for the new product, Clean & Brite stands to make $1.8 million in profit. If the product launch is unsuccessful, C&B Ltd Company will lose $750,000.

Table 1: Predictions’ probability

Max Profit Strategy (QA)

C&B is on the lookout for a way to increase the company's bottom line. Only after calculating the likelihood of the success or failure of the newly introduced item and evaluating it against expected profit will the manager at C&B be able to make a decision.

First, the anticipated earnings are calculated beforehand, before any of the extra data is known. The manager at C&B thinks the product will sell 35% of the time [3].

Second, the additional marketing data is used to calculate the anticipated profit. Using the marketing firm's data and the product's actual 0.35 success probability, we can estimate that their prediction of success for the newly introduced item is 47.50 per cent. They estimate a 52.50 per cent chance of failure for the new product [5].

From this information, the decision tree's posterior probabilities can be estimated. Table 3 below displays the posterior probabilities.

Table 2: Predictions of posterior probability

All of the potential outcomes for the product's success or failure are mapped using the decision tree. The choices facing Clean & Brite are depicted in Diagram 1. Please see the Q.A. section of the attached spreadsheet for the full analysis [4].

Given the p=0.35 for the performance of the product, it is clear from Diagram 1 that the company's expected profit will rise if it purchases the extra information. Without any additional data, the predicted profit is $142,000. After factoring in the additional expense of information, the anticipated profit with the new data is $227,750.

Therefore, C&B's Marketing Manager needs to acquire the supplementary data. Expected profit is shown to be highest if the product is released based on the prediction that it will succeed in additional information rather than the prediction of failure.

Table 3: Recommendation by C&B

EVI to this problem of decision with p = 0.35 (QB)

Table 4: EVI (i.e. expected value of prediction)

Based on the data presented above, it is clear that investing in research pays off only when the product's true chance of success is higher than 25%.

With a p-value of 0.15, the EVSI is negative $105,250. Information has a negative expected value if the probability has become less than 25%. As a result, there is a negative value-to-cost ratio associated with information. The price of data is factored into the EVSI. For the specified probability, see Table 5 below for the EVSI.

With a p-value of 0.15, the EVSI is negative $105,250. Information has a negative expected value if the probability has become less than 25%. As a result, there is a negative value-to-cost ratio associated with information. The price of data is factored into the EVSI. For the specified probability, see Table 4 below for the EVSI.

Figure 1: EVI chart

Table 5: EVSI (EVI of s)

There are inaccuracies in the data provided by the advertising firm. The data is only applicable within a certain probability range. In contrast, C&B would benefit more from the data if the marketing firm provided flawless information. Taking into account that all of the data is correct and that the product's success or failure can be predicted with absolute certainty in every scenario. At p = 0.35, the EVPI is $487.5k as shown below.

Where EVPI doesn’t include the information of costing i.e. $130000.

Conclusion

Thus, Clean & Brite's product has a greater than 25% but less than 45% chance of being successful, they should pay the marketing firm for more data. The information costwill not be optimal if the probability lies outside this interval. The Clean & Brite company's product manager is considering introducing a different type of toothpaste. The chances of either success or failure, as well as their effect on Clean & Brite'sbottom line, are analysed in this report. Clean & Brite is a fantastic outdoor cleaner that doesn't harm the ecosystem. Phosphoric acid, mild laundry detergent, as well as additives, make up this solution, which should be diluted 3:5-10:1 with water. It works great on wood that has been heavily weathered or stained, or on wood that needs to have failed oil-based finishes removed.

Product strategies consist of investigating the target demographic, helping product managers prioritise features and allocate resources, and so on. Deadline-keeping and output improvement both benefit greatly from well-thought-out product strategies. If the new product is successful, Clean & Brite predicts annual sales of $1,800,000; if it fails, the company could lose as much as $750,000. The marketing firm's data as well as the product's actual 0.35 achievement probability are used to estimate a decision tree's posterior probabilities. The updated profit forecast is $227,750 after accounting for the higher information costs.

In order to gauge the potential of C&B's product, the Marketing Manager requires more information. Research is profitable only when a product's real chance of being profitable is greater than 25%. For probabilities below 25%, the EVSI is -105,250 dollars. Because the information cost is not optimal outside this interval, C&B ought to reimburse the advertising company for more data if the product's likelihood of success is greater compared to 25% but below 45%.

References

Yew, J.L.K., 2021. Family Firms, Enterprise Development and Tacit Knowledge Transformation: Small and Medium Enterprises (SMEs) Innovation in Malaysia.Global Business Review, p.09721509211047648.

Kara, S., Gunasti, K. and Ross, W.T., 2020. My brand identity lies in the brand name: Personified suggestive brand names.Journal of Brand Management,27, pp.607-621.

Nhamo, G., 2020. Higher education and the energy sustainable development goal: policies and projects from University of South Africa.Sustainable development goals and institutions of higher education, pp.31-48.

Hao, W., Forster, H., Belisle, R.J. and Adaskaveg, J., 2022. New Preharvest Treatments and Strategies in Managing Phytophthora Brown Rot of Citrus in California.Plant Disease, (ja).

Wible, E., Agarwal, M., Altun, S., Ramir, T., Viana, G., Evans, C., Lukic, H., Megremis, S. and Atsawasuwan, P., 2019. Long-term effects of various cleaning methods on polypropylene/ethylene copolymer retainer material.The Angle Orthodontist,89(3), pp.432-437.

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