Question
What is a good response to the underlined information below The company that I am going to be choosing is a makeup company, Anastasia Beverly
What is a good response to the underlined information below
The company that I am going to be choosing is a makeup company, Anastasia Beverly Hills. They have reported to be down 24% in sales in 2019, (Nylon) which could be a result of their priced makeup. A pricing strategy that could help is bundle pricing or competition-based pricing.Bundle pricing is when multiple products are sold as bundle for one price. The total of the bundle is usually priced lower than the cost of the items sold individually. If this company followed this pricing strategy, consumers will take advantage of the prices, as not everyone can afford the highly expensive brand; competitors of this brand are often partaking in these pricing strategies. This makeup brand currently focusing more on Premium pricing strategy, which gives consumers the idea that they are a luxury brand. However, the brand should follow up on makeup consumers now, because premium makeup is not trending. If they want higher sales, the need to focus on their target market and plan a new pricing strategy like bundle pricing or competition-based pricing.
Price positioning and branding influences how consumers view the value of the product in the company. For instance, usually generic brands are priced using bundle pricing and value-based pricing, which can have consumers be under the impression that it is "cheaply made" or "doesn't compare to the competition." ; simply because of the low price and the way it looks. However, when certain brands are positioned high in price, they may be seen as luxurious, simply because of it's price.
A pricing that could have a negative impact and make customers feel like the company is trying to cheat is when companies use new product pricing strategies. For instance, skimming price may have this effect because at first products are set at a very high price, then it is gradually lowered as they oversee the demand for the product. Consumers who bought the product as it was at a high price and see that later on it is available for a low price may have them feel that they were tricked into buying the product at such a high cost.
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