Pricing Strategy and Distribution Essay

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 we will have to start out as an alternative cosmetic and show that we are just as good or a better brand. Also with the feedback from the customer’s feedback and response to our product, can determine the value of its offering. The leading competitor pricing strategy are mostly medium or high leaning towards the Skimming theory. You have companies like Revlon, Cover Girl who are well known, easy, and are very accessible to the consumer at your local drug store or even supermarkets. They put off a new product and it is the priced high and after a while you will see the product come down then maintain at lower price. Nature Beauty is pricing tactics is Value pricing. According to EZine articles. com, Value pricing is a strategy that businesses with a high value product or service use. The strategy is to sell the high value product or service at a low, value price. Note: this price is not to be below cost but at what the customer would perceive to be a low price. Nature Beauty believes this a good fit for its product because all of the products are really good, safe, and highly effective. Also Ezine articles mentioned that â€Å"Customers’ perceptions are influenced by the value they perceive in the relationship between the attributes of the product or service and the price they will have to pay for that product or service. Customers also are influenced by price comparison amongst similar products or services†. Nature Beauty provides a product that conceals the unwanted blemishes, scars, tattoos, and gives you a even flawless skin tone while with the alone extracts, and organic ingredients helps improve your skin for a softer and clearer skin. We believe if the consumers see the attributes that this product have and also trust the other product that compliments the mineral powder foundation, we will price higher to the true value of the product. Even though we are using the Value pricing tactic, Nature Beauty believes we are a good brand and want the consumers to believe that we are high quality with a good price. In the psychology of pricing the â€Å"price is a clear, tangible cue, higher the price set the highest expectation. However, even though it’s easier to start high and lower prices later down the line, depending on sales of the products, we don’t want to jump the broom on the price set. We believe that we meet the expectation for a higher price and will strive to become a brand that can set a premium price like it leading competitors. Nature Beauty does want to use the theory framing on the products that compliments the mineral powder foundation. Framing is pricing higher prices and then discount to make the consumers feel better. There will be promotions that will give consumers the chance to try these products such lotion, facial cleanser, beauty bar soap, make-up remover wipes, and future idea products for free or at a discounted price. But they will not always be on sale. Nature beauty will push these products out individually starting out high then discounting them after we introduced the new and latest product.