Question

While most cosmetic brands sell their products in specialty stores or departmental stores, Snowbird Inc. is the only cosmetic brand that uses direct marketing as a means to reach its customers. However, it prices its products close to that of its competitors. Hence, the company has carved a differential advantage typically in terms of its _____ strategy.

A. People.
B. Place.
C. Product.
D. Pricing.

Answer 1

Snowbird Inc.'s differential advantage comes from its unique direct marketing distribution strategy, representing a 'Place' strategy. It differentiates its offerings not by product features, price, or people, but by how and where the products are sold to consumers.

Step-by-step explanation:

Snowbird Inc. has carved a differential advantage in its distribution by opting for direct marketing to reach its customers. Since the pricing of Snowbird Inc.'s products is similar to that of its competitors, the differentiation does not lie in the product pricing. Instead, their strategy is characterized by the place of distribution — direct marketing as opposed to selling through specialty or departmental stores.

Firms can differentiate their products in various ways, including the physical aspects of the product, the location from which it sells the product, intangible aspects, and perceptions of the product. Given that Snowbird Inc. uses a unique method to reach customers directly, their differentiated products thus boast a distinct advantage in terms of place.