Question

Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion, they could easily be successful in the market.

1. Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.
2. Describe any two qualities that a salesman selling this product should possess.
3. Explain any two tools of sales promotion that can be used here.

Answer 1

1. Pricing Strategy: Evergreen Cosmetics is using a premium pricing strategy for its new range of 'anti-wrinkle creams'. This strategy involves setting the price of a product higher than competitors to create a perception of exclusivity and high quality. By targeting the higher strata of society, Evergreen Cosmetics aims to position their product as a luxury item that offers superior benefits and justifies the higher price.
2. Qualities a Salesman:
   1. Product Knowledge: A salesperson selling this premium anti-wrinkle cream must have thorough knowledge about the product, including its ingredients and benefits, to differentiate it from competitors.
   2. Good selling skills: A salesperson selling the cream should possess strong selling skills, such as effective communication and patience, to attract customers and encourage them to purchase the cream. 
3. Two promotional Tools:
   1. Telemarketing: The product is extensively advertised on TV, and customers who find the advertisements appealing can place orders via telephone, mail, or fax.
   2. Online Marketing: This is the newest approach to street selling, offering great convenience. Customers can order products 24 hours a day from anywhere, without needing to visit a store or shop.