A UK based cosmetics brand that prides itself in women empowerment with a mission to deliver affordable beauty products to middle to lower income women. They had a large following of loyal customers and consistently had over 50% of their orders from repeated customers.
The client had launched a series of products but sales performance were significantly poorer than their best selling category - lipsticks. They experimented with various strategies like bundle sets and additional Gifts with Purchases but it only helped sell-through marginally.
The client sought to analyse the pricing structures by using Omnilytics’ Price Analysis solutions. They were able to compare prices by categories across retailers and markets and confirmed that their lipsticks were priced in line with the mass segment. On the other hand, they discovered that their highlighters and single eyeshadows were priced higher than competitor brands. Although their product sizes were larger than the market average, it wasn’t something customers took notice of during their purchase consideration.
The client downsized their products considerably to meet average market size and reduced retail prices slightly to reflect the market rate. As a result, they were able to capture a surplus of customers with their new pricing strategy.