Ppt Diva Lipstick _ Final

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PRESENTATION ON NEW PRODUCT ‘S PRICING STRATEGY PRODUCT : GLORIA LIPSTICKS (PRODUCT OF DIVA INTERNATIONAL LTD.) GROUP MEMBERS : Sonal Kadam – H1112104 Krutika Kondgekar – H1112105 Santosh Mane – H1112106 Mukund Mohite – H1112107 Mayura More – H1112108 Nayan Patade – H1112109 Jyoti Patil – H1112110 Pallavi Patil – H1112111 Neeta Pilankar – H1112112 Renju Joseph – H1112113

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Presentation on Pricing Strategy

Transcript of Ppt Diva Lipstick _ Final

Page 1: Ppt Diva Lipstick _ Final

PRESENTATION ON NEW PRODUCT ‘S PRICING STRATEGYPRODUCT : GLORIA LIPSTICKS(PRODUCT OF DIVA INTERNATIONAL LTD.)GROUP MEMBERS : Sonal Kadam – H1112104Krutika Kondgekar – H1112105Santosh Mane – H1112106Mukund Mohite – H1112107Mayura More – H1112108Nayan Patade – H1112109Jyoti Patil – H1112110Pallavi Patil – H1112111Neeta Pilankar – H1112112Renju Joseph – H1112113

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GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

PREFACE This presentation illustrates the “Pricing Strategy” implied by “GLORIA” Lipstick, the product of Diva International Ltd.

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CONTENTSIntroductionPricing Strategies for New ProductMarket AnalysisSWOT AnalysisMarketing Strategy and Marketing MixPricing Objectives

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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INTRODUCTION The Diva International Inc is a French company, which has 5 yrs history in the industry of cosmetics. Diva International Inc Paris was incorporated on 2nd November 2006. It has very wide product line which includes Lipsticks, Perfumes, Face Wash and long list of toiletries. Now it has started its operations in India. Diva International Ltd, India is under license from Diva International Paris. The company is planning to launch “GLORIA” Lipsticks.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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INTRODUCTION…. CONTD…….The company has set up its plant in Gujarat, Silvassa. The plant is fully automatic and works under robotic supervision and produces high quality products. It has imported all the machineries from France. The company has invested 10 million rupees in this project and plans to generate at least 12% market share this year and 5% customer base every year. Diva has future plans to increase its product line in cosmetics & toiletries.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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PRICING STRATEGY FOR OUR NEW PRODUCT IN THE NEW MARKETPenetration Pricing ‘Low price’ to secure ‘High Volumes’Price set to “penetrate the market” & to capture the market share.Useful when launching into a new market with new product.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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BRAND AMBASSADOR: ACTRESS ASINGLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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MARKET ANALYSISMarket Research – Due to Globalization & Commercialization the cosmetic Industry has grown up to Rs. 5000 Million.Market Segmentation - Target College students, working Ladies and Models in Urban areas.Competitors Analysis – Comparison and Evaluation with our Competitors like Lakme, Revlon, L’oreal, Maybelline.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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SWOT ANALYSISStrengths – Brand Name, Competitive Pricing Strategy, Effective Distribution Channel, Global Technology.Weaknesses – Required Aggressive Promotion, High Service Costs.Opportunities – Future Diversification, Capture New Markets, Develop Brand.Threats – Price Competition, Resistance from Consumers, Low profit margins.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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MARKETING MIX Product – Unique combination of Flowers & Herbs.Price – Economical Pricing Strategy.Promotion – Push Strategy.Place – Supermarkets, Malls, Stores, Beauty Parlours, Hypermarkets.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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PRICINGEconomy Pricing Strategy – Set low price to penetrate into Lipstick market and maximize profit in the long run.Pricing Method – Psychological Pricing.Price Discounts – Promotional Discount to stimulate sales.Trade Discount to Retailers.

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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COMPETITORS PRICE & MARKET SHARE COMPARISONBrand Price Market ShareLakme 200/- 40%Revlon 180/- 19%Maybelline 170/- 14%Gloria 150/- Target –12%

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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FINANCIAL ANALYSISParticulars Total CostBrand Ambassador 5,00,000Print Media 30,00,000Electronic Media 1,00,00,000Promotional Visit 10,00,000Production Expenses 1,00,00,000Total 2,45,00,000

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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TARGET PRICING Setting price to ‘target’ a specified profit level.Estimates of the cost & potential revenue at different prices, and thus the break even have to be made, to determine the mark up. Mark–up = Profit/Cost X 100

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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BREAK EVEN ANALYSISTotal Expenses / Price Per Unit 2,45,00,000 / 150 = 163333.333 UnitsBreak even point = 163333.333 Units on sellingReturns on Investment 24,00,00,000 - 2,45,00,000 = 21,55,00,000

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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CONCLUSION Once we become stable with our new product in new market, then our pricing decision will be based on influence of Elasticity.The degree of price elasticity impacts on the level of sales and hence revenue. Elasticity focuses on proportionate (percentage) changes.PED=% Change in Quantity demanded/ % Change in Price

GLORIA LIPSTICKS

BY DIVA INTERNATIONAL LTD.

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MAKE YOUR SMILE MORE ATTRACTIVE WITH GLORIA LIPSTICKS

THANK YOU!!!!