Pricing Strategy and Distribution
Nature Beauty Price strategy will be the penetration theory for my product. Penetration is pricing low to stimulate the sales, encourage trail, and trigger by word of mouth. Nature Beauty’s mineral powder foundation will not be a new product that no company has similar to. We will need to start by gaining the trust of the consumers by word of mouth and different marketing strategies to the targeted customers. This way once the product has some buzz and customers appreciate the products value, we can price the mineral powder foundation at higher price do to the demand of the product. The competing cosmetic company has a similar product that claims help the skin improve. This company will be established in the cosmetic industry and customers will have trust in them. We at Nature Beauty are striving to become a powerhouse cosmetic line so we can price according the value we believe we hold. Penetration strategy is the best the company because there are a lot of other producst that compliments the mineral powder foundation and other general everyday hygiene use type of products that want to bring out. With this strategy we can price the other products low as well and hopefully with the trust of Nature Beauty mineral powder foundation gains it will help us introduce them. Even though Nature Beauty can be considered a luxury cosmetic, we also want it to become a necessity to the consumers as well. We want the demand for it increases by making the consumers feel like this product is a need and want them to live by this Brand.
Penetration strategy will also work with medium pricing range. Medium is a competitive approach. Pricing the mineral powder foundation could be slightly price above or slightly price below. Nature Beauty picks slightly below. This goes into the theory for starting off low in and gaining value to price higher. We want the customers to perceive this product as safe and efficient and more valuable compared to the leading cosmetic competitor. I believe
Penetration strategy will also work with medium pricing range. Medium is a competitive approach. Pricing the mineral powder foundation could be slightly price above or slightly price below. Nature Beauty picks slightly below. This goes into the theory for starting off low in and gaining value to price higher. We want the customers to perceive this product as safe and efficient and more valuable compared to the leading cosmetic competitor. I believe
References: "What Is Marketing Channel? Definition and Meaning." BusinessDictionary.com - Online Business Dictionary. Web. 05 Aug. 2011. . Article Source: http://EzineArticles.com/1341499