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Product pricing and strategies
Product pricing and strategies
Principles of marketing pricing strategy
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Soft and Silky Marketing Strategy
Target Market - females age 25-45
Marketing Strategy - Price leader Soft and Silky is the leader in price in their category (women's shaving gels)
Marketing Objectives Projected sales with cannibalization to be significantly higher than the difference in cost to produce the 5 oz or 10 oz gel containers
Product 5.5 oz and 10 oz aerosol shaving gels for women
Product Strategy Product Development if one considers Soft and Silky's offerings new, but it is an existing market
Product Objectives - customer satisfaction by providing a shaving gel that has a lotion scent, reduces skin irritation, moisturizes, and an aerosol can with no CFCs
Product Tactics during the summer months, when shaving is more popular because women are wearing shorts/skirts, etc. in the warmer weather, we will have packaging tactics to sell more gel from one packages)
Pricing Is competitive for the 5.5 oz aerosol and tube ($3.50 and $3.95 respectively), and the 10 oz aerosol ($4.25).
Pricing Strategy Soft and Silky has a premium pricing strategy and they have been doing well, but they have tapered in the last four or so years in sales.
Pricing Objectives Sales was increasing 3-5%, but we believe we can do better; also maintain margins.
Pricing Tactic 20% margin for retailer and 40% margin for the manufacturer, keep margin the same, take away from net sales.
Promotion Advertising
Promotion Strategy Advertising in newspapers, in-store displays
Promotion Objectives - Encourage women to try new style
Promotion Tactics - Pull strategy will be used because we are spending a lot on advertising to build up consumer demand with the new aerosol can. Push strategy is being used to get and maintain shelf space in a particular business. Increase advertising to 35% of sales.
Channel - Indirect
Channel Strategy Shaving gel is a shopping product for most women and they will not treat it as a convenience product. Adaptability is also a key, we need to place the aerosol gel where consumers can find easily to purchase the product.
Channel Objectives Have one intermediary (retailers) to distribute our product.
Channel Tactics Contacting our main shipper and maintaining business with them
Problem
Soft and Silky needs to figure out if they should pursue shaving gels in 5.5 oz aerosol cans or 10 oz aerosol cans instead of their current tube gels.
Alternatives
#1 - Pursue 5.5 oz aerosol
#2 - Pursue 10 oz aerosol
In particular, promotions should target consumer who use paper-products and foams. Leveraging the company's highly trained sales personnel, relative benefits and long-term cost savings afforded by superior bubble product should be stressed. Additional promotional efforts should include direct mailings to potential clients in the US and Europe. Importantly, all promotional efforts must target packaging engineers.
As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.
As discussed earlier, Baldwin products are priced with the competition in mind. Management is not concerned with setting high prices to signal unattainable cutting edge products, nor is it pursuing to achieve the goals of matching low prices by selling higher quantities of products. In lieu, value pricing is practiced so that our customers feel comfortable purchasing our products and so they feel comfortable coming back.
Women and men have similar needs when it comes to hygiene, including items such as razors, deodorants, toothbrushes, etc. Recently, the removal of something called the Pink Tax has been gaining a tremendous amount of support in the last few years. The Pink Tax is an increased price on women’s hygienic items that seem incredibly similar to men’s hygienic items. The most compared item is a pack of razors that are essentially the same thing in the men’s and women’s section of the respective aisle. Throughout the history of marketing, men and women have been targeted through the use of certain colors and patterns, but drug stores seem to be putting that marketing to a new extreme and only increasing the price of women’s products. One woman
For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).
Setting prices too high would discourage purchasing and setting prices too low negatively affects revenue. While several pricing strategies exist, the use of a value-based pricing system, as implemented at Cabela’s, offers an optimal strategy that meet both customer expectations and company requirements.
As a result of financial constraints from buyers, Gillette is limited in what they are able to
We are using October 2006 as the base for our forecasted sales due to the many changes that have occurred in the last year. Several product lines have been ... ... middle of paper ... ...to a large hotel and in a tourist destination. Associate behaviors and tenure impacts sales as well.
Product mix is the most essential element of marketing strategies of a company. Interface is well known as the global best provider of commercial carpet tiles. The organization deals with selling and leasing carpet tiles. Due to the recent poor performance by Interface, its product determination should be integrated to form part of its marketing strategy. The marketing department of ESA should mainly focus on the market segmentation as per the department requirements of the potential ...
Due to the incredible strength of L 'Oreal 's brand, the company has been able to utilize market penetration on an annual basis by creating an association between L 'Oreal and Christmas or Mother 's Day, Dad 's Day. By offering boxes composed of a multitude of products and promotion, the company allows to introduce its products to its customers or consumers. It offers them several products in the kit so that they can buy them later. Also, she must support the product through innovation and communication with to continue to stand out from the
By following the strategy that I have given, we can monitor the sale of our product. Once we see an increase in revenue, we can increase our advertising campaign to directly penetrate household markets through TV and/or radio. All of these numbers and strategies seem to line up for a successful product.
Pricing is an important aspect of every business. Chief Financial Officer’s (CFO) use pricing to create financial projections, establish a break-even point, and calculate profit and loss margins (Power Point, 2005). It is the only element in the marketing mix that produces revenue. Price is also one of the most flexible elements of the marketing mix as it can be changed very quickly. This is usually done to beat competitor prices in an attempt to fix the product’s market value position very low (Anderson & Bailey, 1998). After all, high prices make it difficult to become the market share leader. The leading US retailer, Wal-Mart, is an expert at low product pricing as evident in 2004 with $250 billion dollars in sales to their 138 million weekly shoppers. However, they are also responsible for reducing prices so low that it drives specialty stores out of business. This is the effect Wal-mart has had on many toy stores and has almost closed the doors of the famous toy store Toys “R” Us Inc.
Nowadays, people attach great importance to appearance. In order to meet different customer needs, each company in cosmetic retailer industry provides various beauty products to customers. Skincare, make-up, hair care products, body care products, perfumes, health and beauty supplements are included.
The product will have an introductory price of $xx wholesale/ $4 retail price (24 RMB). For the second year we expect to lower the price by acquiring local suppliers and expanding our product line. We hope to reflect the impact of the strategy by acquiring market share from other companies with other alternatives.
· The Right Marketing Mix – Is the product right?, Is it sold in the