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

GLORIA LIPSTICKS

PREFACE
This presentation illustrates the Pricing Strategy implied by GLORIA Lipstick, the product of Diva International Ltd.

BY DIVA INTERNATIONAL LTD.

CONTENTS
Introduction Pricing Strategies for New Product Market Analysis

GLORIA LIPSTICKS

SWOT Analysis
Marketing Strategy and Marketing Mix

Pricing Objectives
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INTRODUCTION
The Diva International Inc is a French company,

GLORIA LIPSTICKS

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.
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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.

GLORIA LIPSTICKS

Diva has future plans to increase itsBY DIVA INTERNATIONAL LTD. product line in cosmetics & toiletries.

PRICING STRATEGY FOR OUR NEW PRODUCT IN THE NEW MARKET Penetration Pricing
Low price to secure High Volumes

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Price set to penetrate the market & to capture the market share. Useful when launching into a new market with new product.
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BRAND AMBASSADOR: ACTRESS ASIN

GLORIA LIPSTICKS

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MARKET ANALYSIS
Market Research Due to Globalization & Commercialization the cosmetic Industry has grown up to Rs. 5000 Million.

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Market Segmentation - Target College students, working Ladies and Models in Urban areas. Competitors Analysis Comparison and Evaluation with our Competitors like Lakme, Revlon, Loreal, Maybelline.

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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.

GLORIA LIPSTICKS

Threats Price Competition, Resistance from Consumers, Low profit BY DIVA INTERNATIONAL LTD. margins.

MARKETING MIX
Product Unique combination of Flowers & Herbs. Price Economical Pricing Strategy. Promotion Push Strategy. Place Supermarkets, Malls, Stores, Beauty Parlours, Hypermarkets.

GLORIA LIPSTICKS

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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.

COMPETITORS PRICE & MARKET SHARE GLORIA LIPSTICKS COMPARISON

Brand Lakme Revlon Maybelline Gloria Price 200/180/170/150/Market Share 40% 19% 14% Target 12%
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FINANCIAL ANALYSIS
Particulars Brand Ambassador Print Media Electronic Media Promotional Visit Production Expenses Total Total Cost 5,00,000 30,00,000 1,00,00,000 10,00,000 1,00,00,000 2,45,00,000

GLORIA LIPSTICKS

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TARGET PRICING

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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. Markup = Profit/Cost X 100
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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.

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.

MAKE YOUR SMILE MORE ATTRACTIVE WITH GLORIA LIPSTICKS

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