PRICING

Dove Deep Pure face wash

Pricing a product in market affects the demand to a great extent. Often marketers follow a price setting policy to price a particular product in the market.

1957 – Dove cream bar or soap was launched in markets. It was promoted as quick solution to dry caused by ordinary soap. The brand claimed that it has 1/4^th cleansing moisturizer.

At that time the product was priced at Rs. 50/-. Customers found it overpriced as far as the value for money was concerned.  Many would recall buying a Dove cream bar and using it only for washing their face and using a normal soap bar for bathing. The reason behind it was pricing.

Even people with higher income did not consider it worth buying. So, Dove decreased the price to Rs. 28 to target upper middle class customers.

2003- Dove has changed the way it promoted its products. It became a beauty brand and price was as per the new strategy.

Dove has always priced its products as premium products compared to other brands in the market. Similar, is the case with Dove Deep Pure face wash which is available in market at a price of Rs.90/- for 50g.

The pricing policy followed can be explained as follows:

• Selecting the Price Objective

The objective here is to promote Dove Deep Pure face wash as a beauty product. Thus, price would be as per the guidelines that Dove followed: premium product, higher price, and high income customer segmentation.

• Determining Demand

The demand for the product arose from the growing awareness among working women about beauty and skin care. They always want to look great be it at office or at home. Thus, the need for a beauty product like Dove deep pure face wash could easily be gauged.

•  Estimating costs

This includes the costs incurred by the company in manufacturing, packaging and promoting the product. A portion of the costs goes into the MRP.

•   Analysing competitors costs, prices and offers

Here, other beauty face wash brands like Olay, Ponds white beauty come into picture. A clear comparison among prices can be made as follows:

Face wash brand                                 Price   (Quantity : 50g)
Dove Deep pure                                  Rs. 90/-
Olay                                                     Rs. 70/-
Ponds white beauty                             Rs. 75/-
Lakme                                                 Rs.99/-

Evident from the above chart Dove has been towards the higher end of the price scale.

•     Selecting a pricing method
  
  

  

  Market Skimming through Price
  

For Dove deep pure the pricing method can be maximum market skimming. The product is placed at a higher price. Currently, it has hit its maturity stage. There might be introduction of certain variants or the price may drop keeping in mind the laggards that will contribute to profits in such a stage.

•    Selection of final price

Keeping in mind the above mentioned factors, the final MRP is decided. In this case R. 90/- per 50g.