Marketing Strategy and Plan for Nyassa: Pricing and VEL Analysis

This report analyzes Nyassa's marketing strategy, focusing on the three pricing approaches: cost-based, buyer-based, and competition-based. It recommends price skimming for entering the ultra-premium segment and competitor-based pricing to maintain a premium edge. The report also explores the use of reusable packaging to enhance product value and address environmental concerns. Furthermore, it discusses Nyassa's positioning on the Value Equivalence Line (VEL) and suggests strategies such as incorporating philanthropy, premium product positioning, and exclusivity to gain a competitive advantage. The analysis is based on the case study of Nyassa Retail Private Limited, considering its unique fragrance and healthy ingredients. The report provides a comprehensive overview of marketing strategies, competitive analysis, and brand positioning for Nyassa.

Running head: MARKETING STRATEGY AND PLAN
MARKETING STRATEGY AND PLAN
Name of the Student
Name of the University
Author Note

1MARKETING STRATEGY AND PLAN
Response to question 1: Pricing strategy
Businesses uses various pricing approaches and strategies while selling products or
services. Pricing decisions are taken for maximizing profitability of businesses in regards
with each sold unit. The three types of pricing approaches are as follows:
 Cost Based Pricing Approach- In this approach the cost regarding a product or
services are added with the proportion of mark-up for the purpose of earning profit. In
cost based pricing, both seller and buyer remain at profit as the price structure does
not fluctuate in case of experiencing higher demand (Hinterhuber & Liozu, 2017).
 Buyer Based Pricing Approach- In this approach, perceived values of the buyers are
given importance for setting the price structure. Customers’ perceived values acts as a
guideline for setting price before the process of production (Hinterhuber & Liozu,
2017). The expected price and value of products and services acts as a base for
designing the cost of production and sourcing.
 Competition Based Pricing Approach- In this approach, the pricing structure is
planned based on competitor’s prices. The competitors’ prices are considered as a
benchmark for setting a structure below or above the benchmark pricing (Hinterhuber
& Liozu, 2017).
The pricing strategy which can enable Nyassa to enter into an ultra-premium segment
can be Price skimming. In this strategy, initial pricing is structured at a higher range, then
price structure are lowered. This pricing strategy depicts the temporary version of the price
discrimination. This strategy can help the brand is introducing the revolutionary product
ranges by creating a premium consumer perception. Moreover, it will cover the initial
promotional cost of Nyassa, which can be store decoration or participation in events.

2MARKETING STRATEGY AND PLAN
Another pricing strategy will can be used after the price skimming or at the initial
stage is competitors based pricing which can help the brand gain a premium edge and help
responding to the competing factors of the niche segment.
Reusable packaging can be used for enabling the factors of premiumness as it will
develop a value perception in consumer’s mind. It will add to the value of product offerings.
Moreover, it will act as a response for the environmental issues arising due to product
packaging.
Response to Question 2: Value Equivalence Line (VEL)
C- Crabtree & Evelyn
FE- Forest Essentials
B- The Body Shop
N- Nyassa present position
N1- Nyassa new desired position
Nyassa can adopt following strategies for achieving a strategic position in the VEL among
the other available competitors:
C
FE
B
N1
N

3MARKETING STRATEGY AND PLAN
 Adding the value of Philanthropy- Consumers preferability can be attracted by a
brand which is attached with a societal or environmental cause. In this case, even
premium pricing structures will be justified by the association criteria of Nyassa. The
perceived value of helping something/someone by purchasing a quality product will
result in an increase value of price and benefits. Moreover, the strategy of
implementing reusable packaging can act as an influencing factor for developing the
consumer perceived value as it is a positive response towards environmental concerns
and consumer usability.
 Positioning the product line in the premium/niche segment- Positioning the Nyassa
product line by creating premium associations can help with the increasing rate of
consumer perceived value. It can be achieved by selective brand communication and
by developing a premium experience in the process of buying. It will result in positive
consumer perception.
 Exclusivity- Scarcity is the answer for increased perceived values. Nyassa can make
the product line availability exclusive by selective place and promotion strategy.

4MARKETING STRATEGY AND PLAN
References:
Hinterhuber, A., & Liozu, S. M. (2017). Innovation in pricing: Introduction. In Innovation in
pricing (pp. 3-10). Routledge.
nyassabathandbody.com (2019). Buy Body Care Products Online at Best Prices on Nyassa.
[Online] Retrieved from http://nyassabathandbody.com/