Marketing

The company must factor in that each of their customers has lifetime value, a greater value than a small gain made on first sales. With competition in their sector, more penetration pricing would be appropriate. The penetrating pricing strategy would only make sense to retain customers; the pricing strategy must realize lifetime value, (University of Phoenix, 2011).

Some studies results show that the customers are willing to pay even more for Rose’s new brand than it was suggested to them. So the company has the possibility to increase the price by 6-7% at their new products in order to cover the expenses with advertising.

Companies can choose many ways to set prices, skimming price strategy where a company sets a higher price than normal and a penetrating price where low initial price is set. “Pricing

Will implement price penetration to gain the market share. Price penetration is where a business sets the price low with the goals of attracting customers and gaining market share. The price is raised once the market share is gained.

CVS needs to think through numerous elements impacting its’ business. Pricing strategies, rivals and their current products, consumer demands and suppliers are examples of these elements. For pricing strategies, CVS should consider closeouts, discounts, product bundle pricing, penetration pricing, geographical pricing, and membership or trade pricing.   For non-pricing strategies, options comprise: enhanced service quality, longer opening hours, advertising, and extended warranties (Kimmons, n.d.). By pricing similar products in a different way they must focus on regional demographics because geographic pricing enables the maximization of profit. For promoting unique or new products at provisional price drops, penetration pricing is the most effective.   Finally, bundle pricing and closeouts can be engaged when several

Further reactions from competitors could be to provide cheaper alternatives that may appear similar to the offering provided by the Vigor brand. The result of this could be possible price wars to obtain market

This strategy guarantees that the company does not loose out on the venture by covering their fundamental costs of operation. This allows them to keep the price low enough to entice consumers while simultaneously hedging themselves from the risk of losing money on each item sold. This is basis for a market penetration strategy.

There is a famous saying that ‘cosmetics are not selling product but beauty.’ Therefore, it is important to keep planning and developing product to meet the needs of customers who pursue beauty. In line

The second pricing strategy is the penetration pricing where the product enters newly into the market. To gain some consumer base from the competitors, the seller initially charges a lower price than the competitors. For example the ticket prices initially charged for IPL, Indian Premier League, matches were lower than the ticket price of the competition ICL matches. On the contrary, price skimming strategy is to grab the financially top class of the market and to do this, the seller charges high prices. The effectiveness of this strategy is based upon

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

Nature Care products recognizes the unique expectations from individual consumers and have developed its niche product lines, such as make up, perfume, body deodorant, nail polishing, lipsticks, hair dyes, etc. These products intend to solve customers’ skin problems with the quality to offer specific therapy and cosmetics solutions. With the demands of various consumers Nature Care products main marketing objective is to provide a product range in each niche to fit various customers ' needs.

Competitive pricing: because HN has a large share of the market they are “price leaders” and other businesses follow them

The definition of Premium pricing strategy is, using a high price where there is uniqueness about the product or service. This approach is used where a substantial competitive advantage exists. Such high prices are charge for luxuries, free delivery-pick- up service, service quality, special chemical free products and prestigious presentation.

Cosmetics fall into their own marketing arena. It is the only other product, besides food, that consumers are in constant need of because cosmetics are used in our everyday lives. Cosmetics, in order to have any type of customer base, are made with great quality in mind. With all these different brands offering the same types and qualities of products, Dove had to branch out into another important segment of this cosmetics market. Cosmetics are being used just as much by men as they are used by women, and it is important that a cosmetics product line can compete in the market of men’s products as well. Dove’s main competitors, Nivea, L’Oreal, and Garnier, have not crossed into making men’s products. The lack of men’s products gives Dove a competitive advantage in their arena. Dove has dominated in this category through their marketing and different direction.

A good pricing strategy can help you determine the price point that maximizes your profit when you sell your product or service. Although the customer does not buy goods that are too expensive, if the store's commodity price is too low to bear all the commercial costs, then it will bring a loss.