PRICING: 

Price is not a just a number on a tag. It comes in various forms and performs various functions. Pricing strategy have changed significantly. Internet allows sellers to discriminate between buyers and buyers to discriminate between sellers. Companies such as Hindustan Unilever Ltd. target different customer groups with different value propositions.

Lakme sunscreen do their pricing following certain steps which are basically required for setting prices for any product are as follows:

1. Setting the Pricing objective:  Objective of the lakme sunscreen pricing is obviously maximizing profits but also by providing satisfaction through its product. Also staying in the market by stabilizing prices.

                                                                 

2. Determining demand: Price elasticity of the product is determined. The probable quantities it will sell at each possible price. 

3. Estimating costs:  Company estimates how its costs vary at different levels of accumulated production experience and for differentiated marketing offers.

4. Analyzing competitors Costs, Prices, and Offers: They usually set not a single price, but rather pricing structure that reflects variations in geographical demand and costs, order levels, purchase timings. 

5. Selecting a pricing Method: There are various methods of pricing a product. Markup pricing, target-return pricing, perceived value pricing, value pricing, going rate pricing and auction-type pricing are the methods of pricing.

6. Selecting the Final price: Lakme sunscreen finalize its price considering the competition in the market, the profits, and most importantly customers satisfaction.