Bioskin has undertaken extensive research into the aging of skin. While trying to find a serum to reduce wrinkles, it instead discovered a serum that safely scars and stretch marks. It is deemed a scientific breakthrough, and will be patented. Fortunately, as a topical serum, FDA approval is not required.

When this serum is initially used, the scars disappear after 7 days. With ongoing use, just once each week, the underlying damaged skin cells structure are eventually restored to healthy cells. There are other products that claim to reduce the appearance of scars, but they only conceal the scar for a short time period, and they do not heal the damaged skin.

Bioskins serum is relatively inexpensive to produce with a total variable production cost of 50 cents per ounce. The question becomes one of marketing and pricing. The firm is uncertain which pricing strategy to follow, as each option has its pros and cons. It also realizes that pricing decisions affect other decisions of distribution and promotion.

If the product is handled correctly, it could easily become the most profitable product in the company.

Assume that you are the brand manager for Biogens new serum. Answer the following questions, and justify your recommendations.

1.What pricing policy will you recommend and why?

2.What retail distribution strategy could you use? Where would you place the product? How will you treat your wholesalers and retail partners?

3.What would be included in your promotional mix? Explain 4 specific tools that you would use and why.