Smart Marketing: Pricing Strategy for Toothpaste in the Spanish Market
Added on 2023-01-04
8 Pages2144 Words45 Views
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Running head: SMART MARKETING
SMART MARKETING
Student’s Name
University Name
Author note
SMART MARKETING
Student’s Name
University Name
Author note
1
SMART MARKETING
Introduction
The company Nu Skin Enterprise operates and manages its business activities to act as a
force for good all across the world. Nu Skin Enterprise is one of the largest multilevel marketing
firms in the world. The company uses and sells variety of skin and hair care products, cosmetics,
botanical products, oral care, weight management products, nutritional items and products. The
company also offers Internet services and other communication products through the Big Planet
division (Den Boer and Arnoud V). The purpose of this essay is to provide recommendation of
the go to market price for toothpaste from the company Nu Skin Enterprise. It aims to introduce
the toothpaste in the Spanish market. The essay considers the pricing strategy and the pricing
tactics that can be implemented to introduce the selected product in the market of Spain.
Discussion
As per the market analysis of Spain, there are 17 autonomous communities with different
degree of the cultural identity and varying degrees of autonomy. The regional markets of the
country are attached by two hubs including Madrid and Barcelona which makes up the entire
market of the Spain (Hinterhuber et al.). Majority of the business operators, agents, distributors,
government controlled entities and foreign subsidies operate in two hubs in the country.
According to the Spanish market analysis, it has been identified that the Spanish commercial
procedures are similar with that of the rest of Western Europe, the price of the products and their
value remains paramount. However, there are certain market factors considered by the local
marketers such as the terms of credit, the marketing assistance as well as the after sales service.
These factors are taken into considered in the local purchase decisions (Liozu, Stephan and
Andreas Hinterhuber). The consumers widely use credit to purchase the consumer goods. This is
SMART MARKETING
Introduction
The company Nu Skin Enterprise operates and manages its business activities to act as a
force for good all across the world. Nu Skin Enterprise is one of the largest multilevel marketing
firms in the world. The company uses and sells variety of skin and hair care products, cosmetics,
botanical products, oral care, weight management products, nutritional items and products. The
company also offers Internet services and other communication products through the Big Planet
division (Den Boer and Arnoud V). The purpose of this essay is to provide recommendation of
the go to market price for toothpaste from the company Nu Skin Enterprise. It aims to introduce
the toothpaste in the Spanish market. The essay considers the pricing strategy and the pricing
tactics that can be implemented to introduce the selected product in the market of Spain.
Discussion
As per the market analysis of Spain, there are 17 autonomous communities with different
degree of the cultural identity and varying degrees of autonomy. The regional markets of the
country are attached by two hubs including Madrid and Barcelona which makes up the entire
market of the Spain (Hinterhuber et al.). Majority of the business operators, agents, distributors,
government controlled entities and foreign subsidies operate in two hubs in the country.
According to the Spanish market analysis, it has been identified that the Spanish commercial
procedures are similar with that of the rest of Western Europe, the price of the products and their
value remains paramount. However, there are certain market factors considered by the local
marketers such as the terms of credit, the marketing assistance as well as the after sales service.
These factors are taken into considered in the local purchase decisions (Liozu, Stephan and
Andreas Hinterhuber). The consumers widely use credit to purchase the consumer goods. This is
2
SMART MARKETING
widely used in the cities where the banks compete to offer coverage. The Spanish government
highly encourages foreign firms and investments with investment incentives in order to reward
the investors for operating in the less developed areas. The labor costs in Spain have fallen in the
past years, which make it suitable for launching toothpaste of Nu Skin Enterprise. Furthermore,
the laws and legislation of the country remains comparatively inflexible. The Spanish market
prefers to be more formal in maintaining personal relations (McGuigan et al.). Therefore it is
recommended to maintain professional attire while dealing with the local consumers.
In order to launch toothpaste in the local market of Spain, it is recommended that the
company conduct a face to face meeting with the Spanish business agents or representatives. It is
suggested to maintain a professional relationship with the business agents, suppliers and partners,
as it has been determined that the local regional people prefer formal relationships. It is difficult
for the company launching its product in Spanish market to elicit a response in the initial
communication through mediums like phone and e-mail. The language of the local people can be
challenging as well in the country (Hinterhuber, Andreas and Stephan Liozu eds.). The buying
trend and habits of the Spanish local people are highly conservative. They mainly prefer to
purchase branded products. The well recognized brands, large government enterprises perform
well in the market. The large Public and private sector customers are comfortable in dealing with
the other government companies (Chaves-Ávila and Fernandes).
Toothpaste is a daily, essential product therefore, it requires rigorous strategic marketing.
The company needs to undertake and make use of effective tools and technique to make an
effective marketing. It needs to be purposeful of the strategy implemented by the company and
evaluate the marketing initiative (Pandiella and Alberto González). This in turn will enhance the
SMART MARKETING
widely used in the cities where the banks compete to offer coverage. The Spanish government
highly encourages foreign firms and investments with investment incentives in order to reward
the investors for operating in the less developed areas. The labor costs in Spain have fallen in the
past years, which make it suitable for launching toothpaste of Nu Skin Enterprise. Furthermore,
the laws and legislation of the country remains comparatively inflexible. The Spanish market
prefers to be more formal in maintaining personal relations (McGuigan et al.). Therefore it is
recommended to maintain professional attire while dealing with the local consumers.
In order to launch toothpaste in the local market of Spain, it is recommended that the
company conduct a face to face meeting with the Spanish business agents or representatives. It is
suggested to maintain a professional relationship with the business agents, suppliers and partners,
as it has been determined that the local regional people prefer formal relationships. It is difficult
for the company launching its product in Spanish market to elicit a response in the initial
communication through mediums like phone and e-mail. The language of the local people can be
challenging as well in the country (Hinterhuber, Andreas and Stephan Liozu eds.). The buying
trend and habits of the Spanish local people are highly conservative. They mainly prefer to
purchase branded products. The well recognized brands, large government enterprises perform
well in the market. The large Public and private sector customers are comfortable in dealing with
the other government companies (Chaves-Ávila and Fernandes).
Toothpaste is a daily, essential product therefore, it requires rigorous strategic marketing.
The company needs to undertake and make use of effective tools and technique to make an
effective marketing. It needs to be purposeful of the strategy implemented by the company and
evaluate the marketing initiative (Pandiella and Alberto González). This in turn will enhance the
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