Nu Skin: Go-to-Market Pricing Recommendation for Spanish Market

This report provides a strategic marketing analysis for Nu Skin Enterprise's toothpaste launch in the Spanish market. It begins with an introduction to Nu Skin and its business model, followed by an analysis of the Spanish market, including its cultural nuances, regional variations, and consumer behavior. The report emphasizes the importance of understanding local preferences for maintaining professional relationships and the conservative buying habits of Spanish consumers who favor branded products. It recommends a go-to-market pricing strategy that considers market factors, competitor pricing, and the financial value of the product, with an initial low pricing strategy to gain market share, followed by a gradual price increase. The report also explores various pricing tactics, such as product differentiation, collaboration with dental specialists, and advertising across multiple media channels. It also covers specific tactics like 'buy one get one free' offers, charm pricing, and framing prices with nine-ending numbers to influence consumer perception and drive sales. The report concludes that the Spanish market is highly feasible for the product launch, emphasizing the importance of a flexible and adaptive pricing strategy to respond to market changes.

Running head: SMART MARKETING
SMART MARKETING
Student’s Name
University Name
Author note

1SMART 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

2SMART 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

3SMART MARKETING
credibility of the company and the brand and influence sales positively. The strategy that can be
adopted by the company is product differentiation, collaborating with the Dental care specialists,
promote and advertise the product on several media channels, exploring the retail marketing
channels will provide the company with advertising opportunity for the toothpaste.
The pricing strategy of a particular product is highly complex and intense in nature, as it
requires high amount of research work, risks taking ability, understand the competitors’ pricing,
understanding the Spanish market and the consumers (Den Boer and Arnoud V). The
management of the company before launching a particular product needs to consider the market
place, as well as the other marketing strategy, the value of the product, the ability of the
consumers to pay, the market conditions, the competitors and the profit margin of the company.
The pricing strategy is the way of finding the competitive price of the product to be sold in the
market (Hinterhuber et al.). The ultimate goal of the company is to increase the profit and
revenue of the company and attain sustainability in the market. To determine the price of the
product, it needs to analyze the financial value and cost of manufacturing the product as well as
the profit margin of the company. Since toothpaste is an optional product, and there is high level
of competition in the market, the company can implement a general pricing approach. It is
recommended that the company must lower the price of the product during the initial launch of
the product as there are other available options to the customers (McGuigan et al.). After the
company has established a dominant position in the market, it can slightly increase the price of
the product. However, during the initial stage of launching the product in a new market, it will be
beneficial to keep the price low to be competitive in the market.

4SMART MARKETING
Various pricing tactics and strategy can be adapted by the company so sell the product at
high volume and at a lower price. This pricing strategy requires certain pricing tactics which
would make the product seem to be affordable and at the same time have greater value. This
tactics can make the company’s product luxury (Hinterhuber, Andreas and Stephan Liozu eds.).
It needs to establish itself as generic brand. The other tactics that can be implemented by the
company is ‘Buy one get one free’ tactics. The price of the product can be displayed into non-
rounded figures. The charm pricing tactics is used by many large organizations; it involves the
use of displaying the products that is not rounded (Chaves-Ávila and Fernandes). It ends with
‘’9’’ and ‘’99’’. This would encourage reliance on cognition and are less fluently processed.
Further, the company can also offer the product by displaying ‘Buying one and get 25% off on
the next purchase’. The company can also provide free gifts along with discounts so as to
initially generate sales and it needs to fully maximize the strategy. The message must be
communicated to the potential customers with creatively so that it gains the attention of the
customers and they take action to purchase the product (Pandiella and Alberto González).
Broad differentiation strategy can be implemented by the company to set the business
apart; they can showcase the unique attributes of the product and indicate the superiority of the
product. The company is recommended the broad market as it is a necessary commodity and
used by all consumers (Den Boer and Arnoud V). However, the product offered to the customers
must focus of unique and specific attributes. The pricing strategy needs to be flexible and
adaptive to the changing environment of the market. This is required as the business environment
keeps changing and if the pricing strategy needs to be updated from time to time to boast sales.
Initially as discussed earlier, the pricing needs to the set lowest so as to initiate sales (Chaves-
Ávila and Fernandes). It must ensure that it uses the mentioned pricing tactics such as discounts

5SMART MARKETING
in various ways, to increase its sales such as ‘Buy one get one free’, price cuts, free gifts and
offers. This will further induce the customers to make a purchase on the particular product sold
by the company. The framing and presentation of the price is recommended to reflect in nine
ended numbers, this psychology pricing lowers the perception of price in the mind of the
customers thereby leading to substantial increase in the sales of the company (Pandiella and
Alberto González). The nine-ending pricing tactic strengthens the effectiveness of the message
and the overall advertising efficacy.
Conclusion
Therefore, from the above analysis it has been identified that the Spanish market is highly
feasible for the product to be launched. The market analysis conducted, identifies that the
regional market of the country including two hubs. In the country, the price and value of the
product is given paramount importance by the local customers. Therefore, the pricing policy to
be set by the company requires careful analysis and research. The competitors pricing policy
needs to be paid attention to. The local consumers of the market prefer after sale service.
However, tooth does not require any after sale service, but it can take feedback from the
customers. The pricing policy to be adapted by the company has been described in the essay. It
has been mentioned that the pricing of the toothpaste must be kept below the price of the
competitor products in order to generate more sales. The pricing tactics, discounts, freebies,
framing and presentation of the product has been discussed in the essay.

6SMART MARKETING
References
Chaves-Ávila, J. P., and C. Fernandes. "The Spanish intraday market design: A successful
solution to balance renewable generation?." Renewable Energy 74 (2015): 422-432.
Danzon, Patricia, Adrian Towse, and Jorge Mestre‐Ferrandiz. "Value‐based differential pricing:
Efficient prices for drugs in a global context." Health economics 24.3 (2015): 294-301.
den Boer, Arnoud V. "Dynamic pricing and learning: historical origins, current research, and
new directions." Surveys in operations research and management science 20.1 (2015): 1-18.
Hanna, Nessim, and H. Robert Dodge. Pricing: policies and procedures. Macmillan
International Higher Education, 2017.
Hinterhuber, Andreas, and Stephan Liozu, eds. Innovation in pricing: Contemporary theories
and best practices. Routledge, 2013.
Hinterhuber, Andreas, and Stephan M. Liozu. "Is innovation in pricing your next source of
competitive advantage?." Business Horizons 57.3 (2014): 413-423.
Liozu, Stephan M., and Andreas Hinterhuber. "Pricing orientation, pricing capabilities, and firm
performance." Management Decision 51.3 (2013): 594-614.

7SMART MARKETING
Martín-Peña, María Luz, Eloísa Díaz-Garrido, and José María Sánchez-López. "Analysis of
benefits and difficulties associated with firms' Environmental Management Systems: the case of
the Spanish automotive industry." Journal of Cleaner Production 70 (2014): 220-230.
McGuigan, James R., R. Charles Moyer, and Frederick H. deB Harris. Managerial economics:
applications, strategies and tactics. Nelson Education, 2013.
Nagle, Thomas T., and Georg Müller. The strategy and tactics of pricing: A guide to growing
more profitably. Routledge, 2017.
Pandiella, Alberto González. "A constant market share analysis of Spanish goods exports."
(2015).
Utrero-González, Natalia, and Francisco J. Callado-Muñoz. "Do investors react to corporate
governance news? An empirical analysis for the Spanish market." BRQ Business Research
Quarterly 19.1 (2016): 13-25.