(A) the price strategy of the investment period (new product pricing strategy)
The price strategy of investment period is also called new product pricing strategy. When the new product was first put on the market, the sales volume was very low because consumers didn't understand it. Therefore, the pricing of new products is one of the keys to whether new products can enter the market smoothly and succeed. When pricing new products, we must consider the nature of cosmetics, the situation of substitutes, the buying habits of consumers, the elasticity of demand and the reaction of competitors, as well as the development trend of cosmetics and so on. The general principle of new product pricing is that the stipulated price must be accepted by the market, which can promote the development of new product market, bring enough profits to enterprises, make up for the cost and high cost of new products during the investment period, and help enterprises expand production and operation in the future. There are several options for the price strategy of new cosmetics.
1. skimming pricing strategy skimming pricing strategy is actually a new product pricing with high price first and then low price. We must consider the nature of cosmetics, the situation of substitutes, the buying habits of consumers, the elasticity of demand and the reaction of competitors, as well as the development trend of cosmetics and so on. The general principle of new product pricing is that the stipulated price must be accepted by the market, which can promote the development of new product market, bring enough profits to enterprises, make up for the cost and high cost of new products during the investment period, and help enterprises expand production and operation in the future. There are several options for the price strategy of new cosmetics.
1. skimming pricing strategy skimming pricing strategy is actually a pricing strategy of high price first and then low price.
Pricing strategy of price. That is, when the product is just listed, it is sold at a high price to recover the investment as soon as possible, and then the price is reduced in stages with the evolution of the life cycle. By adopting this strategy, enterprises can get as much profit as possible in a short time. Skimming the price usually causes the price to fall. With the expansion of production capacity in the high-income market and the saturation of some demand, we will turn to new markets while reducing prices. At the same time, the product life cycle is also going backwards. This product must be unique, competitors can't copy it in a short time, and consumers are not very sensitive to price. If the enterprise is not clear about the market demand, it can also use this pricing strategy to explore the road. Pay a high price first, and then reduce the price when the customer can't accept it. This is much better than using low prices to cause the market to be out of stock first, and then raising prices, leaving a much better impression on consumers. The disadvantage is that the new product has just been put on the market. If the publicity can't keep up, the high price is often not conducive to opening up the market, and it will also attract competitors to join.
2. Infiltration price strategy Infiltration price strategy is just the opposite of the above method, adopting the strategy of low price first and then price increase. That is, in the early stage of new products entering the market, the price should be set as low as possible, with little profit or no profit, so as to fully mobilize commodities, enter the market at the fastest speed, seize market share, gain market dominance as soon as possible, prevent competitors from entering the market, and gradually raise prices after opening the market. Therefore, it is also called "market intrusion pricing method". The purpose of this is to compete with existing products and attract buyers through cheap prices. So as to quickly invade the market, gain the highest market share, walk in the forefront of competitors and establish the upper hand of enterprises in brand and quantity. This method must have the characteristics of great market potential, many potential competitors and great price elasticity. Advantages: products can quickly open the market, expand market share, reduce competitors, and make too many enterprises daunting because of low prices and low profits. So it is also called "don't come in" or "stay outside" strategy. Disadvantages: Low pricing is not conducive to enterprises to recover their investment as soon as possible, and even makes consumers doubt the quality of products. When the product's position in the market is consolidated, it is not easy to raise the price successfully.
The life-stage price strategy of cosmetics investment products is a price strategy that enterprises adopt different price measures and pricing methods according to the production and sales volume, capital, supply and demand, market conditions and product characteristics in different stages of the life cycle of cosmetics market, so as to increase the competitiveness of cosmetics and seek the best economic benefits for enterprises. The price set by adopting the stage pricing strategy of product life cycle is called stage price. Because there are great differences between quality and cost, the degree of market competition, consumers' evaluation and demand in different stages of product market life cycle, the price decision of enterprises can make their prices correctly reflect the relationship between value and supply and demand by using stage price strategy.
(A) the price strategy of the investment period (new product pricing strategy)
The price strategy of investment period is also called new product pricing strategy. When the new product was first put on the market, the sales volume was very low because consumers didn't understand it. Therefore, the pricing of new products is one of the keys to whether new products can enter the market smoothly and succeed. That is, when the product is just listed, it is sold at a high price to recover the investment as soon as possible, and then the price is reduced in stages with the evolution of the life cycle. By adopting this strategy, enterprises can get as much profit as possible in a short time. Skimming the price usually causes the price to fall. With the expansion of production capacity in the high-income market and the saturation of some demand, we will turn to new markets while reducing prices. At the same time, the product life cycle is also going backwards. This product must be unique, competitors can't copy it in a short time, and consumers are not very sensitive to price. If the enterprise is not clear about the market demand, it can also use this pricing strategy to explore the road. Pay a high price first, and then reduce the price when the customer can't accept it. This is much better than using low prices to cause the market to be out of stock first, and then raising prices, leaving a much better impression on consumers. The disadvantage is that the new product has just been put on the market. If the publicity can't keep up, the high price is often not conducive to opening up the market, and it will also attract competitors to join.
2. Penetration of price strategy
The direct price strategy is just the opposite of the above method, which adopts the strategy of putting in low price first and then raising the price. That is, in the early stage of new products entering the market, the price should be set as low as possible, with little profit or no profit, so as to fully mobilize commodities, enter the market at the fastest speed, seize market share, gain market dominance as soon as possible, prevent competitors from entering the market, and gradually raise prices after opening the market. Therefore, it is also called "market intrusion pricing method". The purpose of this is to compete with existing products and attract buyers through cheap prices. So as to quickly invade the market, gain the highest market share, walk in the forefront of competitors and establish the upper hand of enterprises in brand and quantity. This method must have the characteristics of great market potential, many potential competitors and great price elasticity. Advantages: products can quickly open the market, expand market share, reduce competitors, and make too many enterprises daunting because of low prices and low profits. So it is also called "don't come in" or "stay outside" strategy. Disadvantages: Low pricing is not conducive to enterprises to recover their investment as soon as possible, and even makes consumers doubt the quality of products. When the product's position in the market is consolidated, it is not easy to raise the price successfully.
3 .
Reverse pricing strategy is between the above two methods. Its pricing is moderate and fair, which is conducive to expanding sales. In real life, the general pricing method is the "cost-oriented method", that is, the upward price increase method. And "anti" is to work out the sales price that can be accepted by the market through market research, and then calculate the money and sales expenses. In other words, before the product is produced, the enterprise has already determined the market sales price. Such a price is acceptable to consumers, and the production enterprises will also get enough profits. In today's international market, although new products emerge one after another, the mortality rate is as high as 80%-90%. In order to make new products go on the market smoothly and seek the survival and development of enterprises, this pricing method has also attracted much attention.
(B) the price strategy in the growth period
After a period of promotion and sales, new products are gradually accepted by the market, and market sales have increased. The stage price strategy adopted by enterprises in this period is the target price strategy. Target price is the price strategy that an enterprise formulates to achieve a certain profit target. Enterprises should take advantage of the favorable opportunity in the growth period to appropriately raise the level of profit targets and accelerate the realization of enterprise profits. When the products enter the difficult period of sales, enterprises will have the guarantee and potential of price reduction and promotion, thus ensuring the realization of the production and operation objectives of enterprises.
(C) a mature pricing strategy
The sign of the product entering maturity is the influx of competitors and the slowdown and decline of sales growth. The price strategy at this stage focuses on competition, maintaining and expanding the market share of enterprise products, maintaining the upper hand of competition and stable profit income. Therefore, the common price strategy is to reduce the price. Of course, the condition of price reduction is the reduction of production costs. Usually, the lower the cost, the stronger the price competitiveness and the greater the possibility of winning in the price competition. What enterprises should pay attention to in price reduction is to grasp the range of price reduction according to the price elasticity of product demand: the maximum target cost of products manufactured by enterprises cannot be determined by calculating the prices of each link.
Too small, too small to attract the attention of consumers, the threat to competitors is too small; Of course, it can't be too big. Too big may make the enterprise unprofitable. (IV) Price strategy in recession The price of an enterprise in the product recession period should try to make the enterprise sell all the products on the basis of maintaining low profit, avoid accumulation, and give full play to the ultimate contribution of the products to the enterprise. Therefore, this stage mainly adopts the strategy of maintaining the price or expelling the price.
1. Maintaining the price strategy Maintaining the price refers to the strategy of basically maintaining the original price level without substantially reducing the price when the product enters the recession period. Doing so will not worsen the image in the eyes of consumers, but also maximize the economic contribution of the product in the final stage.
2. Expel price strategy Expel price, also known as annihilation price, refers to the strategy of using the lowest price to prevent the decline of product sales and drive competitors out of the market after the product enters the recession period. The expulsion price generally does not include profit, and sometimes it can be priced directly with the uniform variable cost as the lowest economic limit.
Fourth, the price strategy of related products.
Related products refer to products that are interrelated in terms of end use and consumer purchase behavior. Enterprises that manufacture or operate two kinds of L products can take advantage of this feature and comprehensively consider the pricing of enterprise products.
1. Complementary product price strategy Complementary goods refer to goods with two (or more) functions that depend on each other and need to be used together. Complementary commodity price strategy is a pricing method and skill adopted by enterprises to adjust consumers' demand for complementary products and expand sales in an all-round way by using prices.
The specific way is to set the prices of main parts with high prices and low purchase rate lower, and relatively raise the prices of goods with high purchase frequency.
2. Substitution commodity price strategy Substitution commodity refers to products with basically the same function and use, which can be substituted for each other in the consumption process. The price strategy of substitute products is a pricing measure adopted by enterprises to realize the established marketing objectives and consciously arrange the relationship between substitute products. If an enterprise produces or manages these two or more products with substitution relationship, the market sales volume of these two products will often change, which is closely related to the level of commodity prices. Enterprises actively use this law to implement the combination price strategy. If you are interested in raising the price of "hot-selling" products in the market, and appropriately reducing the price of cold substitutes, you can grasp the profitability of the enterprise as a whole.