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Karen Lock Organic Hampers - Essay Example

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This essay presents the strategic plan for Karen Lock Organic Hampers. The writer of this essay suggests that Karen Lock can take advantage of the differentiation aspect of their business to counter the effect of the customers bargaining power in the UK market…
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Karen Lock Organic Hampers
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Download file to see previous pages Organic food retailers and health food shops have experienced a significant growth in sales volumes of organic product over the last one decade. Much of this growth is advocated the Food Supplements Directive in the UK, which asserted that Organic food retailers and health food shops have to reduce their vitamins & food supplement ranges in order to create space for natural personal care products. The natural products also found their way to the shelves of department stores, chemists, spas, beauty shops, and hair salons.
Hair care and skin care are the most popular of all the organic personal care products in the UK. In each of the two categories, there are more than 50 brands, making the market in the UK highly congested and competitive. Organic oral care products have also been observed to be highly popular in the UK, with many people starting to prefer them over those with chemical products. Despite the fact that organic cosmetics have not shared the same level of success with organic oral products, they are projected to experience the highest rate of increase in demand over the next five years.
Previously, there were very few players in the organic personal care industry in the UK. However, as the popularity of these products continued to grow, the demand grew too. As a result, many investors saw the industry as a promising one, thus invested in it. At the moment it can be said that the industry is highly congested due to the fact that there are many investors who have opted to invest in this industry. This can easily mean that there are high levels of competition in the industry. As a result, there is an increase in the consumer bargaining power in the UK. ...Download file to see next pagesRead More
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