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 strengthen the case for Stardust 'n' Clay to begin developing organic beauty products?
A) Retailers report a consumer preference for inexpensive skin-care and beauty products that do a better job than the ones currently available.
B) Organic raw materials sourced from economically weak countries provide a source of livelihood for the local population.
C) Organic raw materials for such products can be sourced from developing countries at a lower cost.
D) The first mover in this industry is witnessing reasonable growth.
E) A growing number of women 18-34 consider the health impact of chemicals found in a beauty product when making a cosmetics purchase decision.

Question

Quizplus · Accepted Answer

The growing concern of women aged 18-34 regarding the health impact of chemicals found in beauty products provides a potential market for organic beauty products. This strengthens the case for Stardust 'n' Clay to develop organic beauty products as it shows that there is a demand for such products. Option A weakens the case as it suggests that consumers prefer inexpensive beauty products rather than high-end ones. Option B is not relevant to the argument. Option C may be a benefit for sourcing raw materials but does not address the demand for the products. Option D is also not relevant to the argument.

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