vPRICING POLICY:

STEPS IN SETTING A PRICING POLICY:-

   1)Selecting the Pricing Objective: : Maybelline is the world largest selling mass market cosmetics and owns 7.4% of cosmetics market share worldwide. Since, the product is in introduction stage of ILC so; its profit is not so high.

     2)Determining Demand: Price is a very important factor of any product.

   According to the law of demand, the higher the price, the lower and the demand and vice versa. In the case of my product, the product is new so the price is not so high and demand is increasing.  When you search for Maybelline COLOR BLOOM on Google, the reviews are there. It shows the hike in demand.

  3)Estimating Cost: Cost depends on various factors like Variable cost, Total cost, & Average cost.

   Variable Cost: it varies directly with the production level. So in my product, production is in bulk because it is new and demand is increasing. As of now, there is no variable cost.

    Total Cost:  total cost consists if the sum of the fixed and variable costs for any level of given production.

     Average Costs: It equals total costs divided by production.

  4)Analyzing Competitors’ Costs, Prices, and Offers: Maybelline set the price of COLOR BLOOM according to its competitors like Nivea lip balm, Elle 18 lip balm, Himalayas lip balm, etc. All these lip balms are priced from Rs. 100/- to Rs. 150/- and color bloom is priced Rs. 125/-.

   5)Selecting A Pricing Method: There are 3 methods of selecting a pricing method: A)   Mark-up Pricing, B) Target-Return Pricing, C) Perceived-Value Pricing.

   According to my product i.e., Maybelline Color Bloom, the suitable method would be the Perceived-Value Pricing because Maybelline is a very famous and trustworthy brand. Before the color bloom, Maybelline has launched many products and they all gained reputation for the company. Since it is a New York based company and very famous as well, people will use it for their esteem.