Evergreen Cosmetics is planning to launch a new range of 'anti-wrinkle creams' in the Indian market. They conducted a market survey and found potential competition from Remain Young. Since they are targeting the higher strata of society, the cream is being priced much higher than their competitors. They plan to use the television as a media to advertise this anti-wrinkle cream as opposed to print media which is largely used by them for their other products. Officials at Evergreen Cosmetics feel that with the correct style of promotion they could easily be successful in the market.

(a) Identify and explain the pricing strategy that is being used by Evergreen Cosmetics.

(b) Describe any two qualities that a salesman selling this product should possess.

(c) Explain any two tools of sales promotion that can be used here.

(a) Pricing Strategy — Skimming Pricing

Evergreen Cosmetics is using Skimming Pricing. Under this strategy, a very high price is set so that in the initial stages the cream of demand may be skimmed and the investment made in the product is quickly realised. The aim is to 'sell to the classes'. Since the company is targeting the higher strata of society and pricing the product much higher than its competitors, this matches skimming pricing.

(b) Two qualities a salesman should possess:

1. Good communication skills — The salesman should be able to clearly explain the unique features and benefits of the anti-wrinkle cream to convince the affluent target customer of its value and exclusivity.
2. Product knowledge — The salesman should have thorough knowledge of the product's ingredients, benefits, and how it compares with competitors like Remain Young, so that customer queries can be confidently answered.

(c) Two tools of sales promotion that can be used:

1. Free samples — Small sample packs of the anti-wrinkle cream can be distributed to potential customers (especially women in the higher income group) to allow them to try the product before purchase. This builds trust and encourages future purchases.
2. Demonstrations — Demonstrations can be organised at premium beauty salons, malls and exclusive stores where beauty experts apply and demonstrate the cream on customers.