Lip Stick

The Lipstick Indicator Products, Services, and Prices in the Free Market Economy Learning police squad C Susie Rookard University of texas MM 501 Professor Owen Smith June 7, 2010 The Lipstick Indicator bloody shame Kay cosmetics founded in 1963 by Mary Kay Ash. She used her whole life savings of $5000 and the mount of her son to start up the business. Mary Kay is one of the largest strike sellers of skin care and color cosmetics in the world, employing roughly 500,000 people. Although Mary Kay has been a leader in the cosmetics industry the caller-up has had their pct of downfall. Mary Kay had to think outside the box to keep her company sales up even though the economy is non at its best, they want to make sure that their revenue goes up to continue to profit as they did in 2009 when profit of 2.5 billion. In this paper we will attempt to describe the determinants of Price pushover of Demand, show how we could addition the companys revenue victimization worth elasticity and luxury versus necessity. Elasticity of Price It is often utter that beauty has a price.

They are correct. It costs thirteen dollars for a tube of Mary Kay lipstick/gloss. Research has introduced strong yard to support how important lipstick really is in a bad economy. If the lipstick index, which says that cosmetics sales go up in a bad economy, is accurate and that sales affix extends to brands like Mary Kay, then thats a uprising demand. The problem is supply rises as more people construction to direct sales as new careers or to accessory their income. (Brunelli, 2009, p. 1). Keeping this in mind and take advantage of the increase in the overall cosmetics market, Mary Kay Cosmetics is going to increase the price of lipstick from its current price of $13 to $14.50. This will be accomplished by instituting the trend of consultant selling. advisor selling occurs when a... If you want to get a full essay, hostelry it on our website: Ordercustompaper.com

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