Naturel: New Product Pricing Strategy

New Product Pricing Strategy

After a lot of research, we found that market penetration pricing strategy can make our business more success. Normally a new product always face a strong competition with other similar company, therefore market penetration pricing strategy is very suitable for our company. Naturel is a company that produces a skin care product, it is in the price sensitive market category. When starting a business, attract customers as many as possible is our first goal. One of the fastest ways is setting our product price lower than other competitors. By lowering the price, consumers will start focus on our product as they found that our product is cheaper than others company. More customers purchase our product, more sales we

The key to success for a manufacturer of shopping products is to gain access to the relevant retailers. Naturel is selling through retailer to the customers. The retailer provides a way to let the end user to buy it. They may not directly buy from us. By using this kind of place strategy, it benefits all sides of people. To the customers, they can directly collect the information from the retailer, they do not need to email us or writing a letter to asking a easy question. They can directly get the product from the retail shop, if they directly purchase the product form the manufacture, they need to wait for few day to few weeks to get the product. When using retailer to sell product, customer may not lost their things when sending mail. Customers can gain a lot of service from the retailer, like the retailer can demonstrate to them how to use it or direct show the effect of our skin care

Advantage of demographic segmentation is customer retention and loyalty. When we spend time focusing on its customers and their wants and needs, customers will typically come back for repeat business. Demographic segmentation is one of the ways to target a specific group of consumers Different groups of customer behave differently, this is relating to the consumer age, gender and so on.

Women are the main users of skin care product, they generate 70% revenue of the world. They have been aware of their appearance for long times. They always maintain and take care of their physical image for being attractive and staying competitive in this society. In our business, madam and missus is our main segmentation target, but we also aim at small segment of gentlemen. We targeted women who have economic independence, thus they can afford to buy our product more often. Women actually will loving their parents, and try to buy all the things they feel is good to them. So they always buy some skin care product to their parent and hope that they will look younger. Many of the madam own many skin care product and are ensure they stay young and beautiful. Since our product is not very expensive, most of the missus still can afford. The Missus segment consists of younger women who have considerable disposable income, but they will still spend their money in buying skin care