Pricing Strategy, Research Paper Example

Product: New skin care product in the UK market. This product is slated to appeal to both young and old consumers.

According to Mahoney (2008), skincare products are the cosmetic’s industry’s best sellers. The significance of the new skin care product in the marketplace hinges on the target UK market, which consists of the young consumers (who are attracted to the product’s brand to include its packaging and price), and the older consumers (who are interested in the product’s anti-aging properties) (Dayan & Kromidas, 2011). In addition, the younger consumers are also attracted to skin enhancing qualities of the product because they want clearer skin, as they may suffer from acne and spots on the skin (Dayan & Kromidas, 2011). These features serve as the value propositions to the consumers.

Product positioning for our product is facilitated by the demand for the product with its natural ingredients and anti-aging claims. This goes over well with health- and beauty-conscious consumers (Mahoney, 2008). In addition, the open opportunity in the UK market and the popularity of celebrity endorsements of cosmetics, in general, put our product in a good light.

Pricing Strategy: The pricing objectives I would consider center around catering to consumer trend behavior in the UK market, which is health and wellness associated with beauty. Today’s consumers look for products that are natural and organic (Mahoney, 2008). As a core strategy, I would price the product with an introductory price during a promotional period, and I would highlight the fact that our product works as well as some of the existing products in the market that are endorsed by the celebrities, but costs much less. My promotion would let the consumers know that we don’t pay celebrities to market the product, and that is why we are able to pass the savings on to them and also make them beautiful with products made from natural ingredients. This also sets our product apart from the competition by strategic positioning by providing transparency about our organic and synthetic ingredient distributions in the product as well (Charleson, 2003).

References

Charleson, M. (2003, May 6-12). Successful companies define core, supporting strategies. Business in Vancouver, 706.

Dayan, N., & Kromidas, L. (2011). Formulating, Packaging, and Marketing of Natural Cosmetic Products. London: John Willey & sons.

Mahoney, S. (2008, February 1). IRI Report: Health And Wellness Driving Beauty Trends. Retrieved from Media Post News: http://www.mediapost.com/publications/article/75574/iri-report-health-and-wellness-driving-beauty-tre.html#axzz2M319Q8YD