Being a well-known skincare and cosmetics brand, The Body Shop promises “inspired by nature” and quality products for its customers. This commitment and its concern to always provide fair deals to the primary producers and suppliers affect The Body Shop’s pricing approach.
The Body Shop carries a wide variety and assortment of products ranging from S$2.90 to S$54.90. Some of its best selling items include All-In-One Face Base, Retractable Blusher Brush, Vitamin E Eye and Moisture Cream despite having no markdowns throughout the year.
Over the last 2 years, there have been major inflationary pressures on many of the suppliers due to increasing oil price, overwhelming demand for bio-diesel crops and animal feed as well as change in climatic conditions. Despite the fact, The Body Shop continues to ensure reasonable income for the producers and maintain stable price for all products.
The followings are pricing approaches taken by The Body Shop:
High/Low Pricing
The Body Shop sets a high retail selling price to every product. Below chart shows price comparison with another skincare brand:
Over the last 2 years, there have been major inflationary pressures on many of the suppliers due to increasing oil price, overwhelming demand for bio-diesel crops and animal feed as well as change in climatic conditions. Despite the fact, The Body Shop continues to ensure reasonable income for the producers and maintain stable price for all products.
The followings are pricing approaches taken by The Body Shop:
High/Low Pricing
The Body Shop sets a high retail selling price to every product. Below chart shows price comparison with another skincare brand:
To stimulate purchase excitement and increase profits, The Body Shop frequently introduces period promotions, usually up to 50% discount, for members and non-members. However, promotional offers are limited to no more than 10 of each product per customer. Members are eligible to get a new launched product at a discount during the promotional period.
Odd/Psychological Pricing & Price Lining
In order to influence customers’ perception of the high selling price, The Body Shop adopts odd pricing in which price ends in an odd number, as shown above. Different selling prices on similar items also determine the different quality and perceived benefits to customers. For instance, the price of Double Intensity Mascara is higher by S$2.00 as compared to Define Lengthen Mascara due to the different result each product gives to customers.Zone Pricing
The Body Shop also practices price discrimination in the form of zone pricing as it charge different prices in different regions. The Economic Times mentioned that there is a price markdown for India as The Body Shop cut a massive percentage (up to 35%, only in India) of the prices of about 800 products. This allows The Body Shop to speed up its growth in the profitable market of India without having to invest heavily on advertisements, which is in line with its global policy. Indeed, this aggressive strategy earns an incredible market share in India for The Body Shop.
Done by: Fickey
No comments:
Post a Comment