Pricing Strategy and Distribution

1275 Words Feb 25th, 2012 6 Pages
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 …show more content…
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.
Legal issues and Ethical issues in pricing tactics are very slim. We are pricing competitively against our competitors. Nature Beauty is not pricing to high and pricing to low. We believe that we are taking a competitive approach against the leading competition. There shouldn’t be any ethical issues with the pricing either.
The Distribution Channel is a path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction