Herbal cosmetic Products- Increasing Marketability
Being “Socially Responsible” is the buzz word these days. When majority are focusing on sophistication, indentifying themselves with brands they use rather than their names, very few are conscious about aligning their life style with nature and using products that keeps its contribution to environmental degradation to lower extent. Of these conscious citizens, how many of them who start to respect nature continue to do so? What could be reason for not to continue? Are they being made available to the consumers at affordable prices? What are the medium through which the herbal product manufacturers try to reach customers? How can reach consumers better thereby achieving their goals? We’ll try to analyze answers for these questions in this article I happened to visit one of the NGOs that manufacture herbal products with help of tribal women. Not to criticize any of the practices, I was actually taken aback when I heard the prices of the products. I agree that neither I never thought of using pure herbal cosmetics nor inquired any information about them so far. To my surprise, a single 75mg soap cake is priced at Rs100 and I also came to know that actual prices charged by other vendors reach as high as Rs300 per 75mg of soap. Not only the soaps, almost all the cosmetics, including shampoos, body wash, face creams etc. are charged at a premium. Investigating further the reason for charging so high when compared to the usual products, it was found that the raw material cost accounts for 40% of price, 30% of the price has been given as discount and another 20% for inventory and supply chain, leaving behind only 10% margin on each soap. Further discussion with the producers revealed that reason behind giving flat 30% discount to retailers is just to promote the product and increase the sales. But is that the only solution? The problem of marketing these products is much more complex than that. Majority of the Herbal...
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