Business and Management
Submitted By CKY0505
The price of the body shop is based on the price of courses offered by cosmetics companies such as Estee Launder because they are the direct competitors. Course price from beauty companies(indirect competitors) such as Beauty Tech is ignored because their purpose of offering courses and the length of courses are different from the body shop.
This is because the image of Body Shop is natural rather than professional cosmetics. The images of competitors are more professional in makeup than the Body Shop. But those who want to take makeup courses are looking for professional teaching. Therefore customer perceived value about Body Shop cosmetics is a bit lower than competitors. As a result, we need to set a price lower than competitors.
Even if the brand offers products based on natural ingredients sourced through the Community Fair Trade Program, the high quality skin and beauty products are sold at low-medium prices.
The Body Shop gains sustainable competitive advantage through pricing their product with a green and natural concept, which stressed the statement of Nimer and Monroe that the price of a product or service should be based on the customers’ perception of the value, rather than the costs for producing and selling the offer. Consumers seem to accept the price smoothly and there is no respondent of our survey think the price is too high. For those who care about if the company is green or responsible to sells the merchandise, the product of The Body Shop can meet their need for the green and natural since the price is low compared with other company. Richard Welford has demonstrated that the extra money caused by social and environmental protection measures can be passing on to the consumer. Consumers have no consciousness about this kind of problems. Further, the price is also regard as 27 an indicator of socially and environmentally responsible business.…...