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Article

Marketing pricing policy in the cosmetic business of Ukraine: Analysis of the activities of L’Oreal Ukraine LLC

Halyna Plysenko Inna Lavrenchuk
Abstract

The relevance of the study is determined by the need for effective pricing in conditions of growing competition and economic instability in the Ukrainian cosmetics market. The aim of the study was to evaluate the effectiveness of the marketing pricing policy of L’Oréal Ukraine LLC in the premium segment and to determine optimal pricing approaches, considering consumer behaviour. Using methods of comparative analysis, evaluation, determination of price elasticity of demand, product life cycle analysis, and pricing strategy analysis, the pricing approaches of L’Oréal Group (Ukraine) in 2020-2023 were investigated. A comparison of financial indicators, price dynamics, and characteristics of premium lipsticks from various brands was conducted. The products of the Lancôme brand, specifically L’Absolu Rouge Drama Ink and Lip Idôle Butterglow lipsticks, were thoroughly analysed, including an assessment of their cost, positioning, consumer value, and competitive environment. To determine an appropriate price level for Lip Idôle Butterglow, the value-based pricing method was applied, which allowed for substantiating the approximate optimal price as one that corresponds to the average market indicators of the premium segment and ensures profit maximisation. The influence of psychological perception, seasonality, sales format (online, retail, pharmacies) and consumer type (mass, professional, collectible) on pricing policy was determined. Optimal positioning was justified, taking into account the product life cycle stage. An algorithm for calculating the optimal price of a new product in the premium cosmetics market in Ukraine is proposed. A combined approach to assessing the effectiveness of pricing strategy is developed, combining financial indicators, consumer behaviour and elements of behavioural economics. The results of the study can be used to develop effective approaches to product positioning, increasing profitability and consumer loyalty in conditions of competition and economic instability

Keywords

strategy; pricing; market; demand elasticity; consumer behaviour

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Received 24.06.2025, Revised 20.11.2025, Accepted 23.12.2025 Published 29.12.2025

Retrieved from Vol. 12, No. 2, 2025

Suggested citation

Plysenko, H., & Lavrenchuk, I. (2025). Marketing pricing policy in the cosmetic business of Ukraine: Analysis of the activities of L’Oreal Ukraine LLC. Economics, Entrepreneurship, Management, 12(2), 41-49. https://doi.org/10.56318/eem2025.02.041

https://doi.org/10.56318/eem2025.02.041

Pages 41-49

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