Question

Case study 4

Three companies were dominant in the skincare market in Oman, battling for the "driver's seat". To get the upper hand the companies followed and implemented many strategies to attract customers and grow in the market.

Manar Professional Skincare Company offered 50% more for the same price for their product 'Bright and Glow's. The company also decided to provide 5% offer on every purchase of the product during summer. Manar Professional Skincare Company offered more quantity than before for the same price.

Latafa Organic Company attracted its customers by providing herbal care. Herbal care was deemed to be healthier by giving good results to skincare and fairness. This increased the trust and loyalty of the customers. The company always focused on the need and want of the customers by conducting regular surveys .The Company introduced new herbal facial creams in three different flavours, like Papaya, Mint and Neem. For each 50 gram of Papaya herbal facial cream the company fixed the price as OMR .999 baiza.

Rayan Beauty Company attracted customers by launching a whole new soap product category that results in healthier and fairer skin. They decided to reach the customers by giving the best quality with a high price. This strategy helped because the soaps were considered to be less harmful than fairness creams. The Rayan Beauty Company‟s motive was to always satisfy the customers.

Question 4

i.

ii.

Comment on the various pricing strategies followed by the Manar Professional Skincare

Company & Rayan Beauty Company in the above case.                              (4 Marks–100 /125 words)

Analyse whether Latafa Organic Company can be successful with its pricing strategy.

(3 Marks–75 / 100 words)

iii.   Did Latafa Organic Company and Rayan Beauty Company follow any evolution of marketing

concepts? Justify your answer with the various stages.                                    (3 Marks–75 / 100 words)

Answer 1

ANS 1

The pricing strategy used by Manar Professional Skincare Company who offered 50% more for the same price for their product is the penetration pricing, in this pricing strategy the supplier decides to enter in the compitition and gain the most of the market demand with the help of low pricing and also with additional offers. This helps a firm to get habitual potential customers and then firm increases the price afterwards.  Rayan Beauty Company which attracted customers by launching a whole new soap product category is using the premium prricing strategy because it is selling the product at high price ,it helps a firm to target a section of the society and also develops a better brand image in the market.

ANS 2

Latafa Organic Company which attracted its customers by providing herbal care has a pricing strategy which can be successful in the long run. This company is selling the cream at fair price that is for each 50 gram of Papaya herbal facial cream price is OMR .999 baiza and the fact is it is focusing more on the societal trend that is of using herbal products and this can help the firm to gain most of the profits because people are very careful regarding the skincare ,it has also developed 3 new product lines and this will help the firm to generate more profits in the future and in the long run.

ANS 3

Yes ,Latafa Organic Company and Rayan Beauty Company followed the concept of evolution of marketing . They launched the new product line by thinking of the changes in the society in which Latafa Organic Company launched the soap for skin care as the cream was more harmful and Rayan Beauty Company launched the new line of herbal products in which it also intriduced three new variations as the society expects the herbal product to be safer . They follow societal marketing concept of evolution of marketing and they also decide the price according to this concept andd with value based pricing when Rayan Beauty Company fixed its price at high standard and produced high quality soaps