Essays on Strategic Marketing: Pixie Cosmetics Case Study

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The paper "Strategic Marketing: Pixie Cosmetics " is an outstanding example of a marketing case study. Pixie Cosmetics is a new entrant to the market with a capitalization of less than $1 million. The company’ s product portfolio is categorized into three major product lines – hair care, color and makeup, and skincare – and is marketed under brand name Blush. The target market for this brand includes the price-sensitive The long term objectives of the company are to be able to hold at least 2% of the Australian market in the next 5 years and to become a $10 million company in the next 15 years.

The short term objectives of the company are to be able to differentiate its product from the rest of the competition and to strategically position its brands to increase its market share. To be able to do this, the company needs to understand the internal and external environments that could influence the achievement of its short term and long term objectives. Marketing Mix For the first 12 months, the company’ s three major product lines will follow a uniform marketing strategy.

Changes in the strategic marketing strategy will depend on the need for separate marketing schemes and market reception. Product Pixie Cosmetics is confident that it would be able to achieve its goals and objectives within the projected time frame because of its brand’ s core competencies. First, the company has very advanced research and medical team that ensures that its products are safe to use and promotes overall wellness and well-being of its users. Second, the products are made from 100% organic materials. Lastly, the products are sold for a competitive price that is slightly higher than other competing brands but is reasonably lower than leading brands in the market. The actual product for each of the product lines are the following: hair care – Blush natural shampoo and Blush conditioner, Blush hair color, and Blush hair spray; color and makeup – Blush lipstick and Blush mascara; and skincare – Blush body lotion and Blush face powder.

Because the product is organic, the cost drivers are mainly the research and product development, production, and supply chain. Price The mark-up limit for the product is from 8.5% to 30% of the cost of goods or within the range set by the company benchmark or by industry standards.

The pricing strategy that the company will pursue a combination of value pricing, promotional pricing, and bundle pricing. The company will employ promotional pricing in the first six months of the product launch in order to encourage the market to try the product. In 24 months that would follow, depending on the market reception of the product, the company will utilize value pricing, highlighting various core competencies of the product ranging from the cutting-edge technology used in producing it to the 100% natural ingredients used. Place In order to differentiate the product from both local and international competitors, the company will pursue a strategic partnership with speciality skin and body care boutiques like Body Shop and Cosmetics Club for product consignment.

The strategy will also consider consignment with leading convenience stores and malls in Australia for greater exposure. Depending on the reception of the market to the product, the company might consider online marketing as well as wholesale distribution to shopping malls.


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