In the face of rampant inflation, the CEO of omnichannel cosmetics firm e.l.f. Beauty says the company chose not to increase prices on roughly one-third of its least expensive entry-level items, while simultaneously raising them on higher cost merchandise.
Click here to read the story at pymnts.com.
Discussion Questions:
- What is pricing?
- Why is pricing an important component of the marketing mix?
- What is inflation?
- How does inflation impact consumers?
- How does inflation impact cosmetics brands or other brands in the fashion industry?
- What is positioning?
- How do you think e.l.f. is positioning the brand by keeping the price of its popular lipstick product the same?
- Why do you think they chose to raise the price on higher-priced products?
- What is discretionary spending?
- According to research discussed in this news story, how has inflation impacted consumer spending on discretionary retail purchases?
- How might that impact e.l.f. or competing beauty brands, based on information from this news story?
