SK-II is known as the one of the most expensive skin care or beauty brands in Asia and the world. To keep up global brands status and able to compete better than competitors, SK-II has used product line pricing strategy. (UKESSAYS.com n.d.)
Most of the normal type of SK-II products are pricing from RM80 until RM150, while the luxury type of SK-II products are pricing from RM150 until RM300. (UKESSAYS.com n.d.) Although SK-II products are mostly expensive, but it works well for the consumers, so they can accept this expensive price. (Guo 15 May 2013)
There has two factors that cause the pricing of SK-II products, those are internal and external factors. The first internal factor is goal and objectives. Company will shifts the price of the products to increase sales and maintain its market position so that goals and objectives which are to maintain market share of SK-II and to survive in the market can be achived. The second internal factor is cost aspects. The price of the products depend on the cost of production which includes cost of raw materials, packaging, import SK-II products and its promotional advertisements. If the cost of production increases, the price of SK-II products will also increases or inversely. The third internal factor is organizational consideration. P&G Brand Director, SK-II marketing managers, SK-II brand managers and both companies’ activation managers are taken to make decisions on the pricing of SK-II products. (UKESSAYS.com n.d.)
One of the external factors that affects pricing of SK-II products is market and demand. The pricing of the SK-II products are due to the competitors which has same level of branding. The current global interest in eco-friendly products has risen the demand towards natural skin care products. Therefore, the sales of SK-II products have escalated because of all SK-II products are made mostly from natural ingredients. Next external factor is competitors’ pricing strategy. The pricing strategies...
Please join StudyMode to read the full document