When promoting a new product, companies must be attentive to price setting, advertising, and developing cooperation with sellers. The peculiarity of the cream case is that the company received a significant competitive advantage thanks to research and development. Wrinkle cream with high efficiency will be popular among consumers. Therefore, I will follow the demand-based pricing policy for the product. Such a policy involves considering how much consumers are ready to pay and the profit the company wants to get to set the price (Nickels et al., 2019). Since this product is new to the market and has a unique effect, I am sure that skimming is a suitable strategy. Following this, the company should set a high price for more significant profit while there is little competition (Nickels et al., 2019). Despite the advantage that allows high prices, it is crucial to invest resources in marketing and cooperation to retain the company’s position.
To choose a marketing approach, I need to determine the product category of the wrinkle cream. This product belongs to the consumer and not the industrial market, but the case does not indicate the brand’s popularity, making it challenging to choose a category. The unique characteristic and the well-known brand would allow the product to be classified as specialty goods and services, but if the brand is unknown, then the product is closer to shopping goods and services. Considering the specialty category, I will use the marketing approach focusing on advertising to reach particular market segments. For shopping for goods, the strategy should contemplate a combination of price, services, and quality (Nickels et al., 2019). Since the effectiveness of the cream in the case is unique, I will recommend the company direct efforts to raise brand awareness and match the specialty products category.
Cooperation with wholesalers is necessary for efficient distribution and delivery of goods to retailers for subsequent sale. I will treat wholesalers respectfully and establish professional relations because they know the market and retailers. At the initial stage of promoting goods, I will focus on selective distribution. It implies working only with some wholesalers and retailers present on the market (Nickels et al., 2019). The proposed measures will help the company get the most out of the developed wrinkle cream.
Reference
Nickels, W. G., McHugh, J. M., & McHugh, S. M. (2019). Understanding business (12th ed.). McGraw-Hill Education.