Espíritu Del 69

PRICE STRATEGY

For our pricing strategy, we must first observe a series of values as the lead in market share, leadership in quality parameters of our products, maximizing current profits and survival of the products on the market. Given that this strategy should be tied to design decisions, distribution and promotion.

Also, it should be an analysis of external factors: first, analysis ofcompetition, where we find that a few vendors are very sensitive to pricing strategies to implement its competitors, and secondly, the issue of demand, we can conclude that it has an elastic demand, since it undergoes a major change to vary the price.

Regarding that the products that we introduce in the Colombian market are not yet present in the same, the tactics we are using in the launchphase is that of skimming, using this tactic we will put a relatively high initial price for these products in relation to the expected price range of the target market, thus, the price is set at the highest level possible for interested consumers to pay for these new products. Taking into account that initially the products will be priced high relative to prices of competitive products, as productsmove through their life cycle, the company can reduce its price to reach segments successfully larger market.

Thus, through this strategy will set a high initial price of these new products to be purchased by those buyers who really want and have the financial means to obtain it.

The purposes of this strategy are to provide healthy profit margins so as to achieve cost recovery research anddevelopment, likewise, entering the market with this strategy; sell consumers an idea of high quality, restrict the demand to levels that do not exceed the production capabilities of the company and provide flexibility to the company.

In reaching this conclusion we took into account various aspects such as: the benefits offered by products that attract buyers and that they are willing to pay, thenumber of potential customers willing to buy products immediately at the price initially imposed is sufficient for profitable sales, demand is fairly inelastic, customers interpreted as indicating the high price of equally high quality.

Now, we will consider a price differentiation as follows:

On the one hand, considering that these are complementary products, the price will be looking fora profit all with the possibility of having a price lower than the individual sum of each product if you get together, this So we integrate various products under an attractive price to induce consumers to buy products that otherwise would do without, as the aggregate of all cost is lower.

On the other hand, as pola cosmetics is based only in Bogota, we will use a pricing strategy of deliveryareas, so the domestic market will be divided into geographical areas and within each will be establish a uniform delivered price.

Finally, to make a projection about the behavior of the competition, our products will continue the trend of others that the company develops products in the Colombian market since it will use the strategy of differentiation from competitors with higher prices, as wehad mentioned earlier, the main idea of this pricing strategy is to convey an image of quality and exclusivity in order to capture the more affluent segments, so that we can not only continue to strengthen the quality image of the company but also to have highly differentiated products the consumer group will have the perception that no products completely substitutes. It involves the adoption ofa price index, which looks for a certain level of sales in a set of consumers who are characterized by being willing to pay a high price for the perceived value of the product.

COMMUNICATION STRATEGY

To sell is not enough to offer a product at an attractive price through a well structured distribution channel also must disclose the offer, to highlight its distinctive qualities with the...