Cocoa Brown Tan Analysis

The product I have selected for this assignment is Cocoa Brown tan – created by Marissa Carter. I am a loyal customer of this tan since I was fourteen and feel it is high quality while being affordable at the same time.

Products;

A product is anything that can be offered to a market that might satisfy a want or need. In retail, products are called merchandise. In manufacturing, products are purchased as raw materials and sold as finished goods. Cocoa Brown One Hour Tan is a tangible, non-durable product that can be bought in pharmacies nationwide as well as Penneys. The tan is foaming mousse, dark in colour and light in smell. It’s dispersed from a white plastic nozzle and a steel canister. However, it is not water resistant on the skin once

Pricing is difficult and must reflect supply and demand relationship. Pricing a product too high or too low could mean lost sales for the organisation. Price is defined as a value that will purchase a finite quantity, weight, or other measure of a good or service. As consideration is given in exchange for transfer of ownership, price forms the essential basis of commercial transactions. It may be fixed by a contract, left to be determined by an agreed upon formula at a future date, or discovered or negotiated during the course of dealings between the parties involved. In commerce, price is determined by what a buyer is willing to pay, a seller is willing to accept, and the competition is allowing to be charged. With product, promotion, and place of marketing mix, it is one of the business variables over which organizations can exercise some degree of control. (Business Dictionary, 2017) A distinct part of the Cocoa Brown brand is that it is affordable. The Cocoa Brown products are sold in Penneys – a stereotypically cheap and affordable retailer. The cost of a bottle of the One Hour Tan is €7.00, which compared to most other tans on the market, is a steal. This ensures that every socio-economical class and group can purchase the tan, causing the profits to be higher than many other products. The attractive price can cause people to purchase one or more as they feel it is a bargain.

• Pricing objectives;

Sales-oriented pricing objectives seek to boost volume or market share. A volume increase is measured against a company 's own sales across specific time periods. A company 's market share measures its sales against the sales of other companies in the industry. Volume and market share are independent of each other, as a change in one doesn 't necessarily spur a change in the other.

• Cost based pricing

• Economy