Pricing Strategies of SPF-65 Sunscreen Cream

MANAGEMENT

1. Pricing strategies of SPF-65 sunscreen cream
While pricing SPF 65 sunscreen cream of Mehta Skin care that has been offered to the age
group of 22-40 years, it is important to consider that this product is offered to middle and
high-income level females that will help in pricing the product. Currently, SPF sunscreen has
become a need for the professional women, as it is likely to offer a level of protection to the
skin from the exposure of deliberate UV rays. An efficient pricing strategy helps in
determining the point price at which you can maximise profits. Some of the important pricing
strategies are pricing at premium, competitive pricing (pricing for market penetration),
economical pricing, price skimming, and bundle pricing (cost-based pricing). Premium
pricing set by the organisation is much higher than the competitor`s price. The main objective
of penetration strategies is to attract the buyers by offering low priced goods. For SPF-65
sunscreen cream, the pricing strategies will be chosen in the light of few reasons such as SPF
-65 is new in the market. As the segmentation considers middle and high level
income, quality is the most important factor that can satisfy them. The Mehta skin care
should use premium pricing for SPF-65 sunscreen cream. The Mehta skin care will offer its
product at higher price from its competitors. The pricing for different quantity tubes is below-
Quantity Pricing ($)
SPF-65 sunscreen cream (safe sun) 60 g 7
SPF-65 sunblock 150 g 10
SPF-65 daily safe multi-functional 200 g 13
Before paying for a product, a customer always look for the characteristics that the
product offers. SPF-65 will provide intense UVA and UVB protection, lightens the skin
tone, prevents sunburn and tan, reduce lines and wrinkles, and prevents pigmentation and
brown spots.
2. Type of market and re-pricing
Undoubtedly, SPF 65 sunscreen cream operates in a monopolistic market structure. The
pricing strategies also depend on the type of market in which the organisation works in.
Premium priced SPF-65 will be priced higher because of its unique branding approach that
ensures that it provides a competitive advantage for the manufacturer. SPF-65 sunscreen is
identified as luxurious and sophisticated as it is offered to middle and high-income level. For
repricing, monopolistic market is most feasible as the seller offers differentiated products. In
the scenario when the product “SPF-65 sunscreen” is offered to Amazon, Flip kart, EBay,
and shop clues, the concept of re-pricing is applied. For instance- elegance and highly
fashionable is priced much higher, high quality is priced high, exclusive product is priced at
very high price, and cheerful and cheap is priced at low price. This product keeps its own
brand value products that includes basic packaging, prices, and 25% below the major-brand
goods. In monopolistic market, a combination of premium and economy pricing is used for
SPF-65. While launching this new product, the company`s price adjustment is also known as
price protection, which is a retail practise in USA.

(Source: Toppr, 2019)
3. Brand pricing strategy
In order to establish a brand pricing strategy, Mehta skin care has to win trust among the
customers that can induce them to purchase the same product repeatedly and also promote
through word of mouth. To attract more customers, the company can provide a leverage to
regular customers that they can access the product even after partial refund of purchase price
especially when they can show it on sale even at a lower price in a fixed period (Compare the
cloud, 2018). Especially B2B, discounts is a common adjustment strategy that includes the
supply chain from manufacturer to wholesaler to retailer. The company will adjust the basic
price to reward its customers for the responses in such a way that early payment of bills and
off-season buying (Compare the cloud, 2018).
4. Price adjustment strategies
There are several price adjustment strategies such as dynamic pricing, geographical pricing,
promotional pricing, psychological pricing, segmented pricing, and international pricing.
Companies often adjust basic pricing so that it can allow some differences in products,
locations, and customers. In segmentation pricing, the company sells a product at distinct
prices in several segments even when price-difference is not only based on differences in
costs. Under customer, pricing, different customers pay distinct prices for the same product.
While determining the price adjustment strategy for SPF-65, it can be said that a combination
of psychological pricing and promotional pricing will be applied. As SPF-65 is offered to
working middle and high class where customer satisfaction is very much above than
economical.
For example- theatres and museums charge lower admission form senior citizen and students.
Another when it comes to ecommerce product pricing and pacing e-commerce sales,