PRODUCT PRICING
Matrix is a brand which focuses mainly on hair care and hair styling products mainly targeting the beauty conscious female segment of the society. They broadly comprise of two ranges of products that are the core range and the advanced range. My product falls under the first category.Their pricing strategies for this particular product are the following :
- Maximum Market Skimming and Product-Quality Leadership Pricing Objectives
The Matrix Biolage launched a core range of products at a slightly higher price than most of its competitors to check whether their product is accepted in the market. Surprisingly they could reach their targets but their profits were not upto the level of their brand image in the market. So they started following the Going Price strategy and price the Matrix Biolage Deep Smoothing Serum at a price almost equal to the others in the market.
They even focused on providing good experience to customers and satisfy them with this product. So they followed the Product-Quality Leadership Pricing Objective by making the product absolutely unique and harmless for any kind of hair thus enhancing brand image for their customers. This is the first 6-in-1 hair serum which can solve six major hair problems.
- Determining Demand
As there are many competitors in the Hair Care and Hair Styling Products Market the Demand curve of the product reflects that its price sensitivity is medium as it has many competitors and even the product is in its development stage of the PLC. Its Demand analysis have been done through many surveys through social networking sites.
- Estimating Costs
As this product is not much old in the market Matrix is following Target Costing Estimations at present as it is just in the development stage and they are experimenting new prices to observe and analyse the reaction of the customers.
- Analyzing Competitors' Costs , Prices and Offers
As it follows the Going Rate pricing objective it analyses its competitors' costs, prices as well as offers and discounts regularly and thus set their price or changes the price of the product accordingly.
- Selecting a Pricing Method
The product is on the initial sub stage of development stage of the PLC and so the Company is mainly focusing on Target- Return Pricing Strategy.
They determine the price that yields its target rate of return on investment.
- Selecting The Final Price
Finally the company selects the price of the product which must be consistent with the company pricing policies and should follow certain terms and conditions.
- Determining Demand
As there are many competitors in the Hair Care and Hair Styling Products Market the Demand curve of the product reflects that its price sensitivity is medium as it has many competitors and even the product is in its development stage of the PLC. Its Demand analysis have been done through many surveys through social networking sites.
- Estimating Costs
As this product is not much old in the market Matrix is following Target Costing Estimations at present as it is just in the development stage and they are experimenting new prices to observe and analyse the reaction of the customers.
- Analyzing Competitors' Costs , Prices and Offers
As it follows the Going Rate pricing objective it analyses its competitors' costs, prices as well as offers and discounts regularly and thus set their price or changes the price of the product accordingly.
- Selecting a Pricing Method
The product is on the initial sub stage of development stage of the PLC and so the Company is mainly focusing on Target- Return Pricing Strategy.
They determine the price that yields its target rate of return on investment.
- Selecting The Final Price
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