Cosmetics. Cosmetics are substances used to enhance the appearance or odor of the human body. Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and toe nail polish, eye and facial makeup, towelettes (wet wipe), permanent waves, colored contact lenses, hair colors, hair sprays and gels, deodorants, hand sanitizer, baby products, bath oils, bubble baths, bath salts, butters and many other types of products. A subset of cosmetics is called “make-up” which refers primarily to colored products intended to alter the user’s appearance. Cosmetics makers put a new face on competitive pricing strategies.
Today’s consumers want more out of the products they buy, and cosmetics are no exception. To help meet that demand, value and budget cosmetics manufacturers are ramping up efforts with more upscale packaging, enhanced formulas and improved merchandising units. Such efforts are not just aimed at better serving current buyers of value and budget cosmetics, but, perhaps more important, also at attracting new consumers. Manufacturers are hoping that the moves will further bolster sales of cosmetics, a category that, according to some industry observers, has lacked innovation and excitement.
Competition Based Pricing. In cosmetics field most effective pricing strategy is competition based pricing. Setting the price based upon prices of the similar competitor products. Competitive pricing is based on three types of competitive product: Products have lasting distinctiveness from competitor’s product. Here we can assume * The product has low price elasticity. * The product has low cross elasticity. * The demand of the product will rise. * Products have perishable distinctiveness from competitor’s product, assuming the product features are medium distinctiveness.
Products have little distinctiveness from competitor’s product, assuming that: * The product has high price elasticity. * The product has some cross elasticity. * No expectation that demand of the product will rise. The value product: This concept explains about the features of product which are adding value to its consumer. Giving more and more features are not working nowadays in cosmetic field. Providing core benefit to customer using lesser feature’s in product. Example 1. If you want to be a bad product manager, try to deliver as many features as possible.
The more features you have, the more likely you are to have the things that any individual customer cares about. Customers expect products to keep getting better, and the way a product keeps getting better is by adding more features. Plus, adding a whole bunch of smaller features will be just as good — if not better — than adding that one big important enhancement. More is always better, right? If you want to be a good product manager, try to deliver the fewest features which will provide the most value. Customers buy products because of the needs that the product fulfills and the problems the product solves.
Features in and of themselves are useless — they exist to fill a need. Customers will find product features valuable only if those features satisfy a need and if the act of filling that need is something which is valuable to the customer. Example 2. Jane & Co “There is a core middle [consumer] who is very potent and much unaddressed,” said Lisa Yarnell, president and chief executive officer of Jane & Co. , who, along with a partner, acquired the Jane mass cosmetics brand from Estee Lauder about a year ago. “The value segment is important and missed by manufacturers. Since acquiring the brand, Yarnell said she has been working to bring Jane back to its roots, targeting not necessarily the teen market, but repositioning Jane as a “M. A. C. for mass” for fashion-conscious women seeking a value product. Yarnell is looking to broaden distribution and said the brand eventually could expand into other categories, such as apparel and accessories. The changes include cleaner, more upscale packaging and a string of new products, including Max Lash2 mascara for $4. 99, Color Sticks Lip and Eye Crayons for $3. 99 each, and the Party of Five Lip gloss Collection for $5. 99.