105882823 ppt-diva-lipstick-final

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  • Psychological Pricing : Used to play on consumer perceptions
    Classic example – Rs. 150 instead of Rs.170!
    Links with value pricing – high value goods priced according to what consumers THINK should be the price
  • Price Elastic:
    % change in quantity demanded > % change in price
    e.g. A 4% rise in price would lead to sales falling by something more than 4%
    Revenue would fall
    A 9% fall in price would lead to a rise in sales of something more than 9%
    Revenue would rise
  • 105882823 ppt-diva-lipstick-final

    1. 1. PRESENTATION ON NEW PRODUCT ‘S PRICING STRATEGY PRODUCT : GLORIA LIPSTICKS (PRODUCT OF DIVA INTERNATIONAL LTD.) GROUP MEMBERS : Sonal Kadam – H1112104 Krutika Kondgekar – H1112105 Santosh Mane – H1112106 Mukund Mohite – H1112107 Mayura More – H1112108 Nayan Patade – H1112109 Jyoti Patil – H1112110 Pallavi Patil – H1112111 Neeta Pilankar – H1112112 Renju Joseph – H1112113
    2. 2. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD. PREFACE This presentation illustrates the “Pricing Strategy” implied by “GLORIA” Lipstick, the product of Diva International Ltd.
    3. 3. CONTENTS Introduction Pricing Strategies for New Product Market Analysis SWOT Analysis Marketing Strategy and Marketing Mix Pricing Objectives GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    4. 4. INTRODUCTION  The Diva International Inc is a French company, which has 5 yrs history in the industry of cosmetics. Diva International Inc Paris was incorporated on 2nd November 2006.  It has very wide product line which includes Lipsticks, Perfumes, Face Wash and long list of toiletries. Now it has started its operations in India. Diva International Ltd, India is under license from Diva International Paris. The company is planning to launch “GLORIA” Lipsticks. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    5. 5. INTRODUCTION…. CONTD……. The company has set up its plant in Gujarat, Silvassa. The plant is fully automatic and works under robotic supervision and produces high quality products. It has imported all the machineries from France. The company has invested 10 million rupees in this project and plans to generate at least 12% market share this year and 5% customer base every year. Diva has future plans to increase its product line in cosmetics & toiletries. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    6. 6. PRICING STRATEGY FOR OUR NEW PRODUCT IN THE NEW MARKET Penetration Pricing ‘Low price’ to secure ‘High Volumes’ Price set to “penetrate the market” & to capture the market share. Useful when launching into a new market with new product. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    7. 7. RAND AMBASSADOR: ACTRESS ASIN GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    8. 8. MARKET ANALYSIS Market Research – Due to Globalization & Commercialization the cosmetic Industry has grown up to Rs. 5000 Million. Market Segmentation - Target College students, working Ladies and Models in Urban areas. Competitors Analysis – Comparison and Evaluation with our Competitors like Lakme, Revlon, L’oreal, Maybelline. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    9. 9. SWOT ANALYSIS Strengths – Brand Name, Competitive Pricing Strategy, Effective Distribution Channel, Global Technology. Weaknesses – Required Aggressive Promotion, High Service Costs. Opportunities – Future Diversification, Capture New Markets, Develop Brand. Threats – Price Competition, Resistance from Consumers, Low profit margins. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    10. 10. MARKETING MIX Product – Unique combination of Flowers & Herbs. Price – Economical Pricing Strategy. Promotion – Push Strategy. Place – Supermarkets, Malls, Stores, Beauty Parlours, Hypermarkets. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    11. 11. PRICING Economy Pricing Strategy – Set low price to penetrate into Lipstick market and maximize profit in the long run. Pricing Method – Psychological Pricing. Price Discounts – Promotional Discount to stimulate sales. Trade Discount to Retailers. GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    12. 12. COMPETITORS PRICE & MARKET SHARE COMPARISON GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    13. 13. FINANCIAL ANALYSIS GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    14. 14. TARGET PRICING  Setting price to ‘target’ a specified profit level. Estimates of the cost & potential revenue at different prices, and thus the break even have to be made, to determine the mark up.  Mark–up = Profit/Cost X 100 GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    15. 15. BREAK EVEN ANALYSIS Total Expenses / Price Per Unit 2,45,00,000 / 150 = 163333.333 Units Break even point = 163333.333 Units on selling Returns on Investment 24,00,00,000 - 2,45,00,000 = 21,55,00,000 GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    16. 16. CONCLUSION  Once we become stable with our new product in new market, then our pricing decision will be based on influence of Elasticity. The degree of price elasticity impacts on the level of sales and hence revenue.  Elasticity focuses on proportionate (percentage) changes. PED=% Change in Quantity demanded/ % Change in Price GLORIA LIPSTICKS BY DIVA INTERNATIONAL LTD.
    17. 17. MAKE YOUR SMILE MORE ATTRACTIVE WITH GLORIA LIPSTICKS THANK YOU!!!!

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