To maintain a competitive advantage, L’ Oreal ensures that they are able to reach their markets using their experienced marketers. In addition, the company has diverse ways of service delivery to reach all the global markets where their competitors operate. L’ Oreal ensures that they produce two new products every year that means their consumers are kept to date with other products. This gives L’ Oreal an advantage since there are a number of options for the consumers depending on their preferences. L’ Oreal ensures that quality is maintained in all the products they produce.
In addition, the marketing campaigns are always intense hence reaching a good range of consumers. This keeps the company at a good profitability level to cater for the operations and wins over their competitors. Question 4: Give 3 reasons why a company chooses to move first in a given market? 1.-A company may choose to move first in a given market in order to let the population know of their products. This is one of the marketing strategies that most companies will make use of in order to maximize sales.
2. To lock out the competitors. When a company reaches a certain market before the competitors, it becomes easier to remain relevant for a long time regardless of other companies operating in the same field coming on board. 3.- To learn about consumers’ needs. When a company enters a new market, it becomes possible for the marketers to engage with the consumers and learn about what the population actually wants. Regarding beauty and skin products, consumers will always have specifications about what they need hence giving an opportunity to the company to produce such a product.
Question 5: Would you say that L’ Oreal acquisitions are Horizontal or Vertical based strategies? Explain The L’ Oreal acquisitions are vertically based strategies. L’ Oreal operates under three key strategies that include broadening on their customer base, changing functions and operations and increasing research and development through advertising and promotion. L’ Oreal gets involved in new aspects of business operations, which enable the company to expand and reach other markets comfortably.
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