When Pearl Soft Shampoo was released by Clary Laboratories Inc. in the late 1970s, it was...

When Pearl Soft Shampoo was released by Clary Laboratories Inc. in the late 1970s, it was an innovative hair care concept because it repaired split ends. Even though the new product was an improved version of the previous ones, Clary Laboratories entered the market with low prices and dealer incentives. Discuss the possible reasons for this marketing strategy.

Solutions

Expert Solution

answer-

Clary laboratories used this marketing strategy of entering the market with low prices and dealer incentives having following reasons-

The first reason could be to gain competitive advantage over competitors. We learned porter's generic strategy in which company offer their product at low cost to gain competitive advantage over rival companies. This is why Clary laboratories offer low prices shampoo to market.

The second reason could be to increase demand for its shampoo. Marketing and promotion always focus on creating demand and brand awareness. Having a low price shampoo in the market will create demand and awareness of the brand.

The third reason could be to make good relationship with intermediaries like dealers who would try to increase their sales in order to get incentives from the Clary laboratories. This will help to have good and healthy relationship in supply chain.

The fourth reason is to increase profitability and customer base because when there are products with attractive price then customers will buy more and profit will increase.

so, these are some not limited to possible reasons for adopting this marketing strategy.

keosha answered 1 week ago

Next > < Previous

Related Solutions

In the late 1970s, there was a major controversy over a dam built by the Tennessee...

In the late 1970s, there was a major controversy over a dam built by the Tennessee Valley Authority called the Tellico Dam, which is located near the mouth of the Little Tennessee River. After construction was completed and almost all of the land purchases (or evictions) had been done, the Supreme Court ruled that it could not go on because of the presence in the Little Tennessee of a fish on the endangered species list called the Snail Darter. (Congress...

What are the characteristics of a company Merge & Acquisition of the late 1970s and early...

What are the characteristics of a company Merge & Acquisition of the late 1970s and early 1980s? What were the characteristics of a company Merge & Acquisition in the rest of the 1980s? to industry

1. What it the best description of the U.S. Economy in the late 1970s? a. Growing...

1. What it the best description of the U.S. Economy in the late 1970s? a. Growing at a stable rate with low inflation. b. Increasing nominal interest rates which the Fed could not reduce. c. experiencing rapid growth due to large tax cuts. d. In a recession with falling prices and output. 2. Which is the best description of the Monetarist Classical View about monetary policy? a. Since interest rates can not go blow 0%, fiscal policy is generally better...

During the late 1970s and the first part of the 1980s, the Fed seemed to react...

During the late 1970s and the first part of the 1980s, the Fed seemed to react in a counterintuitive manner to the 1970s oil shocks. Explain the reasoning behind the Fed's policy decisions and the effect that they had on the economy?

How does Fogelson's work on urban riots in the late 1960s and 1970s relate to the...

How does Fogelson's work on urban riots in the late 1960s and 1970s relate to the anti-police sentiments displayed around the country in the past few years? Provide some examples in your analysis. Have we learned anything in the past 50 years?

How does Fogelson's work on urban riots in the late 1960s and 1970s relate to the...

In the late 1970s, several countries in Latin America, notably Mexico, Brazil, and Argentina had accumulated...

In the late 1970s, several countries in Latin America, notably Mexico, Brazil, and Argentina had accumulated large external debt burdens. A significant share of this debt was denominated in U.S. dollars. The United States pursued contractionary monetary policy from 1979 to 1982, raising dollar interest rates. How would this affect the value of the Latin American currencies relative to the U.S. dollar? How would this affect their external debt in local currency terms? If these countries had wanted to prevent...

Imagine you are a psychiatrist in the late 1970s. You have heard about the upcoming DSM-III...

Imagine you are a psychiatrist in the late 1970s. You have heard about the upcoming DSM-III and seen drafts of the final copy. In at least 200 words discuss what you think are the benefits and/or problems with the way that this new manual approaches psychiatric disorders. You can discuss the upcoming DSM-III as a proponent of either the psychoanalytic or the descriptive psychology schools of psychiatry.

The United States has run persistent trade deficits since the late 1970s, while Germany has had...

The United States has run persistent trade deficits since the late 1970s, while Germany has had trade surpluses since the 1990s. Is either position inherently good or bad? Explain.

A process that produces bottles of shampoo, when operating correctly, produces bottles whose contents weigh, on...

A process that produces bottles of shampoo, when operating correctly, produces bottles whose contents weigh, on average 20 ounces. A random sample of nine bottles from a single production run yielded the following content weights (in ounces): 21.4 19.7 19.7 20.6 20.8 20.1 19.7 20.3 20.9 Assuming that the population distribution is normal, test at the 5% significance level against the two-sided alternative the null hypothesis that the process is operating correctly.

Subjects