This is a straightforward product launch case that tests basic financial analysis and market research interpretation. The key insight is recognizing that despite superior profit margins on the in-house brand, the target customer demographic (under 30) overwhelmingly prefers the Vibrants brand, combined with the tight 90-day timeline making new product development risky. Strong candidates will balance the financial attractiveness of higher margins against customer preference and execution risk.
Your client, a national drug-store, is adding a new type of hair dye to its retail offering. “Highlights Dye” allows customers to comb in small amounts of various color to hair rather than the traditional method of dying the whole head. The client is considering launching it’s own in-house brand or carrying an existing recognized brand-name – “Vibrants”.
Should the drugstore carry Vibrants over the in-store brand?