download n make ur presentations easy

1. PRESENTATION ON
NEW PRODUCT ‘S PRICING STRATEGY
PRODUCT : GLORIA LIPSTICKS
(PRODUCT OF DIVA INTERNATIONAL LTD.)
GROUP MEMBERS :
Sonal Kadam – H1112104
Krutika Kondgekar – H1112105
Santosh Mane – H1112106
Mukund Mohite – H1112107
Mayura More – H1112108
Nayan Patade – H1112109
Jyoti Patil – H1112110
Pallavi Patil – H1112111
Neeta Pilankar – H1112112
Renju Joseph – H1112113

2. GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.
PREFACE
This presentation illustrates
the “Pricing Strategy” implied
by “GLORIA” Lipstick, the
product of Diva International
Ltd.

3. CONTENTS
Introduction
Pricing Strategies for New Product
Market Analysis
SWOT Analysis
Marketing Strategy and
Marketing Mix
Pricing Objectives
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

4. INTRODUCTION
 The Diva International Inc is a French company,
which has 5 yrs history in the industry of cosmetics.
Diva International Inc Paris was incorporated on 2nd
November 2006.
 It has very wide product line which includes
Lipsticks, Perfumes, Face Wash and long list of
toiletries.
Now it has started its operations in India. Diva
International Ltd, India is under license from Diva
International Paris. The company is planning to launch
“GLORIA” Lipsticks.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

5. INTRODUCTION…. CONTD…….
The company has set up its plant in
Gujarat, Silvassa. The plant is fully
automatic and works under robotic
supervision and produces high quality
products. It has imported all the
machineries from France.
The company has invested 10 million
rupees in this project and plans to generate
at least 12% market share this year and
5% customer base every year.
Diva has future plans to increase its
product line in cosmetics & toiletries.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

6. PRICING STRATEGY FOR OUR
NEW PRODUCT IN THE NEW
MARKET
Penetration Pricing
‘Low price’ to secure ‘High Volumes’
Price set to “penetrate the market” &
to capture the market share.
Useful when launching into a new
market with new product.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

7. RAND AMBASSADOR: ACTRESS ASIN GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

8. MARKET ANALYSIS
Market Research – Due to
Globalization & Commercialization
the cosmetic Industry has grown up
to Rs. 5000 Million.
Market Segmentation - Target
College students, working Ladies and
Models in Urban areas.
Competitors Analysis –
Comparison and Evaluation with our
Competitors like Lakme, Revlon,
L’oreal, Maybelline.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

9. SWOT ANALYSIS
Strengths – Brand Name,
Competitive Pricing Strategy, Effective
Distribution Channel, Global
Technology.
Weaknesses – Required Aggressive
Promotion, High Service Costs.
Opportunities – Future
Diversification, Capture New Markets,
Develop Brand.
Threats – Price Competition,
Resistance from Consumers, Low profit
margins.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

10. MARKETING MIX
Product – Unique combination of
Flowers & Herbs.
Price – Economical Pricing Strategy.
Promotion – Push Strategy.
Place – Supermarkets, Malls, Stores,
Beauty Parlours, Hypermarkets.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

11. PRICING
Economy Pricing Strategy – Set
low price to penetrate into Lipstick
market and maximize profit in the long
run.
Pricing Method – Psychological
Pricing.
Price Discounts – Promotional
Discount to stimulate sales.
Trade Discount to Retailers.
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

12. COMPETITORS PRICE & MARKET
SHARE COMPARISON
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

13. FINANCIAL ANALYSIS
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

14. TARGET PRICING
 Setting price to ‘target’ a specified
profit level.
Estimates of the cost & potential
revenue at different prices, and thus
the break even have to be made, to
determine the mark up.
 Mark–up = Profit/Cost X 100
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

15. BREAK EVEN ANALYSIS
Total Expenses / Price Per Unit
2,45,00,000 / 150 = 163333.333 Units
Break even point = 163333.333
Units on selling
Returns on Investment
24,00,00,000 - 2,45,00,000 =
21,55,00,000
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

16. CONCLUSION
 Once we become stable with our new
product in new market, then our
pricing decision will be based on
influence of Elasticity.
The degree of price elasticity impacts
on the level of sales and hence revenue.
 Elasticity focuses on proportionate
(percentage) changes.
PED=% Change in Quantity
demanded/ % Change in Price
GLORIA
LIPSTICKS
BY DIVA INTERNATIONAL LTD.

17. MAKE YOUR SMILE MORE ATTRACTIVE
WITH
GLORIA LIPSTICKS
THANK YOU!!!!