Stardust 'N' Clay Is a Manufacturer and Mass Marketer of Personal

Multiple Choice

Stardust 'n' Clay is a manufacturer and mass marketer of personal care products and nutritional supplements. The company plans to launch a line of organic beauty products that are made entirely from mineral pigments and organic plant extracts. These products, though expensive to process, offer much higher margins than the company's current lines of beauty products. The market for organic beauty products is relatively untapped, with just a handful of players. Which of the following, if true, would weaken the argument for developing organic beauty products?

A) Few companies have obtained patents for their organic product innovations.
B) Competitors in this segment are quick to copy any new product innovation and mimic product design.
C) Organic offerings have a shorter shelf-life compared to synthetic products.
D) Customers need to be educated about the relative benefits offered by organic products.
E) Financial analysis shows that it would take the company 1.5 years to recover its initial investment.