The sales of Smooth-E Baby Face Foam grew impressively since its launch in 1994; however, the growth has decelerated and the sales have stagnated over the past few years. Despite many attempts through advertising and sales promotions, the overall sales trend has proven irreversible. Smooth-E Co., Ltd. wishes to know why this is happening and looks forward to our model forecasts and recommendations. Through our research and model simulations, it was found that the company has been looking at the problem from a small scope over the past decade. This paper suggests an overall (bigger) picture of the operations and, therefore, helps broaden the view of the problem. We have found that the problem was caused by the depleting population of the customers' base due to product maturity in its product-life cycle. Expanding customers' base appears to be the most important policy while price cutting may not work with a depleting customer base. Recommendations are made on various means and ways to expand customers' base in order to boost the sales of this product in the future. Exporting to neighboring countries is one of the best solutions to help expand the size of the customers' population.
Worcester Polytechnic Institute
Management Information Systems
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Social Science and Policy Studies