MKT 8035 WORKSHEET # 8 PRICE STRATEGY

TEAM # ____7_____
SEC # _____1_______

Discussion among all group members should take place and answer the following questions

What is your teams’ pricing strategy for your product(s)/ services going Global? Ie: Price Skimming, Loss
Leader, Premium, Prestige, Discount, Price Leader)

Also Answer: Why this strategy? Taking into consideration the Purchasing Power of your Target Market.

We will be using the premium price strategy as our product is 100 percent organic as there is
a wave of natural products going around the world (Research and markets, 2022), consumers will be
willing to pay a premium price for high-quality organic hair oil. However, considering the purchasing
power of the target market, which is useful for men and women of age 15 years and above, a discount
pricing strategy would be effective at the starting level as it will be an entry-level product launch with
discount prices which can help to attract customers and help to know about feedback which helps to
build loyal customers which are helping to generate buzz. This will help us gain the company’s market
share and build brand awareness in the Canadian market.
As we consider the purchase price parity of Canada in 2021 to be $1.236 and India’s PPP is
$23.138 ((PPP), n.d.). So we can clearly see the huge price and currency difference in both countries.
For this reason, we are using purchasing power parity calculator to understand what the entry
product price of Mamaearth’s hair oil will be.
We are Increasing the price of our product because we have to keep in mind the market in
which we are making an entry , As mentioned in the class, If we are going to enter a developing or
undeveloped country we have to keep the size and price of the product according to that so in that
same case if we are going to enter a developed country whose GDP ,PPP are way more than the home
country of the Company than we have to keep in mind the price point of the product , and the rising
cost is also the result of the expense which will be needed as the company will be entering , expenses
like office, tie-ups, and many other. So this will raise the costing of the product and we also have to be
in that middle spot where neither it is too expensive or too affordable to at least make an image of
the product in front of the customer.
So professor , keeping your review in mind we changed the pricing so that its not that
expensive plus we kept in mind the customers , we will be focusing on two types of packing in
starting. A small bottle of 100ml and than a bigger bottle of 250 ml as In Canada customers buy things
in bulk, and that 100ml bottle will be for attracting new customers to try out our product without
spending that much.
Research your price comparison (with Exchange rate) and place it into a Chart. You may want to also
research your competition to ensure your Pricing Strategy is in line with your Overall Market Strategy.

Current Home Country Price Global Price

Onion Hair oil {Mama earth Indian Price} = Canadian price entry point {Mama Earth} =
$7/150ml $15/100ml (PPP, n.d.)
$10/250ml (Mamaearth, 23) (Incl. of all taxes) $35/250ml

Hair growth oil {Organic house} (Organic House,

n.d.) = $20/60ml
Nourishing Hair Oil {Soul tree} (Soul tree, n.d.) =
$22/120ml

References:

www.organichousecanada.com

www.Soultreecanada.com

www.Mamaearthindia.com

Canada Hair Care Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
 (researchandmarkets.com)

Canada vs India Economy Stats Compared (nationmaster.com)

Works Cited
(PPP), P. p. (n.d.). Purchasing power parities (PPP) Index. Retrieved from OECD:
https://data.oecd.org/conversion/purchasing-power-parities-ppp.htm

Mamaearth. (23, 03 20). Onion Shampoo with Onion and Plant Keratin for Hair Fall Control - 250ml.
Retrieved from Mamaearth.in: https://mamaearth.in/product/mamaearth-onion-shampoo-for-
hair-growth-hair-fall-control-with-onion-oil-plant-keratin-250-ml

Organic House. (n.d.). Retrieved from organichousecanada.com

PPP. (n.d.). Purchasing Power Parity. Retrieved from https://www.chrislross.com/PPPConverter/

Research and markets. (2022, june). Retrieved from

https://www.researchandmarkets.com/reports/5458977/canada-hair-care-market-growth-
trends-covid#:~:text=Growing%20Demand%20for%20Organic%20Hair%20Care%20Products
%20The,and%20aluminium%20compounds%20present%20in%20hair%20care%20products.

Soul tree. (n.d.). Retrieved from soultree.com