The cosmetics and body care industry in Egypt is booming with new Egyptian startups that are

flooding the market with products that meet every taste and style. Lotus, the famous Egyptian

cosmetics startup, differentiates itself by offering products that are all naturally made and

environmentally sustainable, starting from the ingredients of the product up till its packaging.

The company also prides itself on their great after sale services, including their delivery,

payment options and their youtube channel where tutorials and other interesting interviews are

included. Their range of products includes lip, eye, hair and nail products that are categorized

under cosmetics and body care. A lot of people would argue that their product ranges are a little

overpriced, but the owners explain that their use of natural and environmental sustainable

ingredients and techniques are appealing to their customers, and their customers are happy to pay

as much.

Lotuss original work started with a range of lip cosmetics that were made from essential oils and

cared for lips as much as beautified them. However, this line has been making lower sales than

most categories and the company have been thinking of creating a marketing campaign to remind

its customers about the benefits and features of their lip cosmetics in order to save the product

line.

With the summer of 2021 approaching, the product planners of Lotus have decided to surprise

their loyal customers with a one-of-a-kind limited edition Lotus perfume, Fleurs du Ciel. What is different about their perfume is the use of a rare flower scent in their blend that blooms

only in the icy hills of Saint Catherine. Also, the bottles in which the perfume will be bottled in

are handmade in Dahab to suit the style and aroma of the perfume.

Please answer the following questions:

1) Explain the product levels of Lotus. (3 marks)

2) What kind of product category does Lotus belong to? Why? (3 marks)

3) Outline Lotuss original product mix. (3 marks)

4) On what basis does Lotus price their products? (3 marks)

5) What kind of pricing strategy can Lotus use to price their new perfume? (3 marks)

6) At what stage of the product life cycle does the lip product line belong to? Explain how

the marketing strategies of the marketing mix should look like. (5 marks)

Bonus question (3 marks):

What should be Lotuss marketing objective towards their new perfume?