2.2 Pricing Strategy
2.2.1Factors affecting pricing decisions (Types of market)
The internal factor that affects the pricing decision of Dove is based on marketing strategy, objectives and mix. The Dove Company mostly is working on the market of women’s personal care. Dove has a large range of products from soap to hair shampoo. The company strategy and objective is to have a high level of segmentation to answer to the many needs of the women’s personal care market and to widening stereotype view of beauty in younger generation, pre-teen and teenager girls. Besides, the market mix strategy is the price decisions must be coordinates with product design, distribution, and promotion decisions to form a consistent and effective marketing program. Pricing Strategy of Dove hair shampoo is largely determined by the decisions on Market Positioning of product differentiation. So, Dove has been positioned as a product fulfilling the needs of high end consumer class. Dove Company is constantly upgrading time to time to meet the customer needs, such as Dove Straight & Silky Therapy, Daily Shine Therapy, Dandruff Therapy, and Intense Damage Therapy with the affordable price. In addition, the external factor that affects the pricing decision of Dove is based on the market and demand. Dove Company is under the Monopolistic Competition market because there have a lot of buyers and sellers of differentiated products. Dove Company also is the product differentiation that are selling different product for the same purpose such as Pantene, Sunsilk , Rejoice, and so on. Besides, Dove is also price maker and spends a lot of money in advertisements to convince their customers. Last but not least is the competitor’s strategies and price. The competitors of Dove are Sunsilk, Rejoice, Pantene, L’Oreal and so on. According our survey that doing at Kampar area, the competitors are offering the lower price if compare to Dove. For example, Sunsilk 700ml is offering their shampoo...
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