Revlonis one of the leading companies in the manufacturing and marketing ofcosmetics products. In determining the prices for its products,Revlon employs the price lining strategy. While determining priceusing this approach, the focus is on the value that a customer placeson a particular product. There are products of the company classifiedas high-end and are of a higher quality. These products are targetedto specific customers, and the company sells them at a high price.The prices for mass consumers of the company’s products such aslarge chain stores are reasonable. Retailers who buy products inlarge volumes from the firm do so at a discounted price. Revlon iscompetitive in its pricing within the cosmetic industry. Thevariation in prices based on the brands makes the pricing strategy ofthe company to outshine that of its competitors. There are also lowlypriced products being sold by the company some of the brands cost aslow as $5 (Haas, 2014).
Apartfrom the competitive strategy while selling products to retailers andconsumer, Revlon is also good on pricing at the product developmentlife cycle. From the manufacturing to the marketing and distributionprocesses, the company strives to cut down on costs. Revlon allocatesresources strategically to cut down on the cost of production. Thereis also the efficient management of the company’s working capital.Optimal utilization of the raw materials also ensures that the priceof production is low. The company uses both the electronic and printmedia to promote its products. This way, it is possible to reach alarge number of consumers while ensuring that minimal promotion costsare incurred. The reason for reason for using the pricing strategiesin production is to lower costs (Haas, 2014).
Haas,J. J. (2014). Corporatefinance.St.Paul, MN: West Academic Publishing
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