Question (3): (8 marks) The XYZ organization is a recognized global producer of
ID: 348641 • Letter: Q
Question
Question (3): (8 marks) The XYZ organization is a recognized global producer of a number of hair care prodacts for both men and women. Their products are available in most major supermarkets around the world but they have yet to enter UAE market. Mariam is the Marketing Manager of The XYZ organization and wants to shampoos and conditioners for women in the UAE the introduce a line of Answer the following questions based on this information A) What pricing strategy should Mariam use for her shampoos and condit ioners? Justify your e hoic (2 Marks) B) Which distribution strategy would be most effective for Mariam use for the new Shampoos and Conditioners? Explain your answer (2 marks) C) Which of Porters' three competitive strategies should the XYZ organization pursue to gain and maintain a competitive advantage in the UAE market? Justify your answer. (4 Marks)Explanation / Answer
3.
A.
The XYZ company present in different international markets and produce global brands. So, the company should go with the value based pricing. The reason behind opting for the value based pricing is, the different nature of shampoos and conditioners either for Men or Women, produced and sold by the company. It means that for different issues, there is a different shampoo to cure the issue. So, each customer values these products differently. Hence, value based pricing will be most suitable where each product will be priced on the basis of value proposition among the target audience.
B.
The company should go with multiple distribution channels to move the products in the market. The first distribution channel should be the multi-brand retail outlets to display the product and reach the target audience. The second distribution channel should be the online store or web portal dedicated or multi-brand outlet (online) to showcase the product. It will help the company to sell the products at lower prices and or at discounts. It will help the company to target audiences present in different parts of the UAE. Though, it also requires tie-up with the logistics.
C.
The company should follow differentiation strategy to gain competitive advantage and succeed in the market of UAE. The products like Shampoos, fall under the category of FMCG goods and come in huge varieties such as hair fall control, smooth & silky hair, and dandruff shampoo among the other specialties. Such variations can only be catered by product differentiation and it will be the best strategy where the company can create its own competitive advantage and market share.