RelEVE increased its price five percent from the original list price. This was done to reach $***millions to be spent to promote brand awareness. Mrs. Bowing stated that she could not tell me RelEVE's monetary goal because the information was deemed proprietary. Mrs. Bowing states that the increase in price will not deter consumers from purchasing their products because previous product research indicates that consumers perceive Gynofem as a premium priced product. RelEVE is currently focusing on utilizing a niche marketing strategy to increase brand awareness. According to Kotler, niche marketing is targeted to those individuals who are willing pay a premium price for a product (Kotler, 257).
What Distribution or Pricing Changes do you (as the Marketing Consultant) have Recommend?
I think the current pricing of Gynofem is appropriate. This product focuses on niche marketing and should be priced accordingly because otherwise, it would undermine the reputation that Gynofem has as a premium priced product. Since RelEVE has just raised its' prices, further increases now may alienate current consumers. As mentioned earlier, I suggest RelEVE take actions that will facilitated profits by moving the plant and use cheaper materials. The only thing additional I might recommend about their distribution is to offer Gynofem in larger or bulk quantities for those who would rather purchase it in mass quantities to avoid going to the store as often.
