It is early 2014. A leading global skincare manufacturer,
Health & Beauty Co. (HBC), has been losing market share in
the hand and body lotion market. While the firm still leads its
competitors in market share in this segment of personal care,
it seeks to stem further share erosion and, to that end, has
recently developed a strategy to recover market share through
rebranding, advertising, and repackaging. The situation is
especially critical since a large competitor is believed to be
launching a new skincare product in the near future.
Your task as senior financial analyst is to draft the capital
expenditure proposal related to the new packaging proposal.
Information to support you in this task follows. You should
complete the firm’s capital expenditure template included in
Appendix 1.