Question

Estee Lauder owns different cosmetics brands such as Estee Lauder, Clinique, Origins, MAC, La Mer, Aveda, etc. Estee Lauder uses the different brands to pursue:

A. Brand extension
B. Market penetration
C. Market diversification
D. Brand differentiation

Answer 1

Estee Lauder uses various cosmetics brands to pursue market diversification and brand differentiation.

Step-by-step explanation:

Estee Lauder uses various cosmetics brands such as Estee Lauder, Clinique, Origins, MAC, La Mer, Aveda, etc, to pursue market diversification.

Market diversification refers to a business strategy where a company expands its product portfolio or enters new markets with the aim of reducing risk and maximizing growth opportunities. Estee Lauder's use of different brands allows them to cater to different market segments and target a wider customer base, thus diversifying their market.

By offering a range of brands, Estee Lauder is also able to differentiate their products and position themselves as leaders in different segments of the cosmetics market.