Pricing strategy

Price is one of the main factors that influence the purchasing behavior. That is why it was important for us to determine the range of prices in the Russian cosmetics mass market. For this purpose we compared prices of different mass and luxury brands. The results are presented below.

Competitor	Price, RUR
L'Oreal	220
Garnier	215
Vichy	580
Clinique	1000
La Roche-Posay	620
Lierac	820
Yves Rocher	350
Natura Siberica	140
Baikal Herbals	135
Clean and Clear	70
Clearasil	160
Himalaya Herbals	170
The Body Shop	380
SkinFood	460
Clarince	1180
Nivea	110
Sto reseptov krasoti	60
Chistaya linia	55

In the table you can see average prices of the competitive cleansers; average is because the deviation of 20-30 RUR is possible in both sides, depending on the average retailer. According to this findings, the average price of the mass cleanser is about 177,5 RUR, whereas of the luxury one – 880 RUR. We would keep this fact in mind when we will count the price for Neutrogena WAVE in Russia.

Furthermore, it is necessary to say the Neutrogena WAVE pricing strategy is the same for all markets, and there is a rationale for that. Neutrogena is considered to be the mass market brand, however, it is a bit higher than mass market. There is a strong association with high quality, dermatologists’ participation, pharmacies, etc. Therefore, it is unlikely for Neutrogena to establish low prices. Taking into account all the characteristics and perception of the brand, we decided that Neutrogena WAVE pricing strategy in Russia would be standardized.

You will be able to read about the Neutrogena WAVE price in Russia in the following posts.