Product, Price, Promotion, and Place

Product, Price, Promotion, and Place

Product Decisions

PRODUCT INTRODUCTION:

The product we have designed is an organic boxed hair dye, named Botanical Hair Colour. Botanical Hair Colour is a product of the reputable beauty brand, Palette by Nature. What makes this product special is that it uses an all natural, plant-based formula which allows it to be carcinogen free, ammonia free, paraben free, resorcinol free, and PPD free. It is also hypoallergenic, and does not use animal testing. This fully organic hair dye is available for sale at all major locations where boxed hair-dye is sold and offers the same affordability as its competitors, with even more quality.

CORE CUSTOMER VALUE:

The core customer value of our product is that it offers women the right to freedom of expression, with the accompanied feeling of reassurance. Botanical Hair Colour offers women the right to change their hair how they please, whether it is to feel beautiful, increase their confidence, or express their creativity, all with the knowledge that they are doing so safely, without harming the environment or their health.

ACTUAL PRODUCT:

Botanical Hair Colour is an organic, all natural, chemical free, boxed hair dye, derived from a plant-based formula. It consists of a wide range of 20 different shades and colours, and therefore offers something for every woman. Botanical Hair Colour is the result of extensive scientific research and testing, which has revolutionized the at-home hair colouring market. Our complex, organic, plant-based formula offers the same colour saturation and lasting power of the leading boxed hair dye, without the harmful chemicals. What makes Botanical Hair Colour even more outstanding is that it was created by the renowned Palette by Nature beauty brand, which is known for revolutionizing the women’s beauty market by creating organic and environmentally safe beauty products. Botanical Hair Colour will be offered in the same sleek, simple, recyclable packaging as the rest of its beauty products, to adhere to its all-natural, environmentally friendly image.

AUGEMENTED PRODUCT:

When a consumer purchases Botanical Hair Colour they will find that the product will offer a full list of all its ingredients, as well as an instruction manual on how to properly use the product. It will also include the tools necessary for using the product: plastic gloves, a mixing dish, and a mixing tool. As well, Palette by Nature offers a toll-free number and a website where consumers are able to contact representatives if they have any questions, complaints, concerns, or even positive feedback about the product. Because Palette by Nature believes so strongly in Botanical Hair Colour, it offers a money back guarantee if consumers are not happy with the product.

DIFFERENTIATION:

Botanical Hair Colour is a unique product of its kind, as it fills a consumer need in the at-home hair colouring market. Although there are other organic boxed hair dyes on the market, Botanical Hair Colour is the first to offer colour in the form of a plant-based formula. As well, it is the only one to offer completely recyclable, environmentally friendly packing, while omitting the use of ALL commonly used hair colouring chemicals and animal testing. Finally, it is the only organic boxed hair dye that can compete with the high quality results and lasting power of non-organic hair dye, all at a competitive price.

Pricing Decisions

PRICING STRATEGIES:

The current Canadian consumer market is fueled by a diversified economy, which can still be considered relatively stable due to the low dollar fostering moderate growth. However, it is also full of consumers with conscientious spending habits, as a result of the 2008 recession. Consumers are looking for value marketing-products that offer great value at a fair price. Botanical Hair Colour is a product marketed to all ages of women 14 and up whom take pride in their appearance, whether that means keeping up with the latest hair colour trends or keeping their aging grey hair youthful, while also caring about their health, the environment, and the safety of the products they use. Therefore, Botanical Hair Colour will be marketed to income levels varying from the lower middle class to the upper class. We know that women of all wealth classes are willing to allocate their disposable income to beauty products, based on the $38 billion hair-care industry (The Economist, 2003), therefore we feel confident that our highly value-added product will be successful in the majority of income levels.

PRODUCT PRICE:

Although our general competition is essentially all boxed hair dyes on the market, our product is marketed to the environmentally and health conscious consumer, therefore our true competition is other “organic” boxed hair dyes on the market.

Other organic hair dyes such as, Herbatint or Color me Naturally by Aubrey range from $10-$16 (Good Housekeeping, 2008), therefore we will price our product at $14. Although this price is at the higher range of our competition, we believe it is still competitive as it offers the highest value to our customers in terms of environmental and health benefits, as well as actual colouring results. Because our product is targeted to such a wide demographic, we are not able to offer the exclusivity of high mark-ups, or the low mark-ups of everyday low pricing. However, we would consider the “high-low” pricing strategy with the hopes of attracting more customers and increasing sales at certain times.