The Lux Company
The Lux Company targets trendy customers for its imagery cream (product). The product is augmented with additional touch, to make it more attractive to customers, than the other brands of Lux soap. The Lux Company understands that product positioning plays a significant role in improving sales, profits and revenues. Therefore, it encourages better product attributes. For instance, it employs marketing mix elements and strategies to ensure that it gains a competitive advantage against its competitors. The Lux Company offers high quality products at affordable prices. It also integrates high branding to help it obtain a good position in the minds of consumers.
Proposed pricing for the Lux imagery cream
Based on the market analysis, the Lux Company should employ penetration pricing for its product (Imagery cream). Penetration pricing is a pricing strategy, whereby a company starts by setting low prices in order to increase its sales and market share (Smith, 2012). Once the company captures the market share, it can go ahead and increase the price of the product. Considering that the Lux Imagery Cream is new in the market, it is wise for the marketers of the Lux Company to start by selling it at a lower price, and increase it after capturing the market share.
This pricing strategy will help the Lux Company to attract many customers to try the product because of its affordable price. Once they try the product (Imagery cream) and get satisfied with it, these customers will prefer using the product because it satisfies their needs. The Lux Company will take advantage of this and increase the price of the product, after it proves to be successful in the market. Potential customers pursue products and services that meet their needs. Therefore, even if the company decides to increase the price for the imagery cream, the customers will not seek for alternative products. This confirms the need for the penetration pricing strategy for the Lux imagery cream.
Proposed promotion mix
Promotional mix plays a significant role in creating a good image of a brand in the minds of consumers (Wolfe & Twedt, 1970). The Lux Company should incorporate promotional mix tools to create awareness, educate, and influence potential customers. These promotional mix tools include advertising, personal selling, sales promotion, publicity, direct marketing, and internet-based marketing (Burrow & Bosiljevac, 2012). Basing on these tools, the Lux Company should use (internet based marketing tools) social media interfaces such as Facebook, Twitter, Blackberry Messenger and WhatsApp, in marketing the imagery cream. It should also employ advertising campaigns through radio and TV commercials, print media (newspapers, magazines, and brochures), and billboards. The Lux Company should also use the world’s renowned female celebrities in its adverts. This will influence the target audience to try the product. It should organize contests, trade shows, and exhibitions in its sales promotion to create awareness of the brand.
The marketers of the Lux imagery cream should pursue other ways to persuade individuals to purchase the product. These may include using (personal selling) sales presentations, organizing sales meetings, and telemarketing. They can also integrate direct marketing, whereby marketers communicate directly with potential customers employing advertising techniques such as the mobile SMS, emails, online display adverts, and promotional letters. The Lux Company should also consider participating in community activities such as charitable contributions, education sponsorships, and finding solutions to issues surrounding communities. All these can help the company increase sales, profits, and revenues.
References
Burrow, J., & Bosiljevac, J. (2012). Marketing. Mason, Ohio: South-Western Cengage Learning.
Smith, T. J. (2012). Pricing strategy: Setting price levels, managing price discounts, & establishing price structures. Mason, OH: South-Western Cengage Learning.
Wolfe, H. D., & Twedt, D. W. (1970). Essentials of the promotional mix. Tarrytown, NY: Appleton-Century-Crofts.