Case Study Of Estee Lauder

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Estée Lauder Advanced Night Repair Serum has different volume and that lead to different price. The volume of the serum has 1 ounce and 1.7 ounce for customers to choose in size. The 1 ounce is smaller and easy to carry as a travel size which provide convenience, and the 1.7 ounce is more value for people who use the serum daily; 1 oz. for $65, 1.7 oz. for $95 and two 1.7 oz. with selling price $165 (Estee Lauder company, 2017).
Estée Lauder company uses prestige pricing strategy which is the company count on the idea that “expensive” is perceived by customer as “high quality”. The prestige pricing strategic is particularly targeted customers who associate high prices with superior quality, and by owing a high-end, expensive product make customer fulfill the desire of higher social status. As the result, Estée Lauder company must invest heavily in marketing and brand building exercises which would be part of promotion. In addition, Estée Lauder company determines the product price base on cost which include labor cost, materials cost, manufacturing cost, advertisement cost, research and development cost, export fee, and miscellaneous expense. However, Estée Lauder company participate in international trading, so the price would vary upon the advertising
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All those retailers sell premium and exclusive products and usually attract middle to upper class customers, that is the main reason Estée Lauder company choose them as indirect distribution channels. Usually, a retailer set up the skin care product section base on brand. For premium brands with exclusive products will be placed on the top of shell and middle-class products will be placed at the middle or lower shell. So, Estée Lauder Advanced Night Repair Serum would display at the top shell of the premium skin care section to make it easy to seem by

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