Company Background

D'HERBS Holding (M) was established in September 2010 which operates only
in lot 2 storey shop with an employee only and has 4 main product that is basic
powder, slimming products, health drinks female, lipstick and lip treatments. And now
D'Herbs have been moving forward with producing 90 new product lines with a total
of 35 workers who helped launch the company's development.
Starting with operations in level 2, D'herbs have been moved under the shop lots
and lots of shops to hire two more launches and facilitate business partnership deal,
now d; herbs has become a brand that captured the hearts of consumers either in
Malaysia, Singapore, and Brunei and operates D'Herbs are exclusive in the guest
house in Kota Damansara and is determined to become one of the famous cosmetics
in Malaysia and neighboring countries and the goal D'Herbs up around the world.
Year 2012 was the peak year for D'Herbs products where they have been under
the label of private limited companies and develop their business 4-storey building
belonging to more strategic and comfortable. With this move, the company is able
convinces all stockiest and distributors for marketing its products more widely and
thrive.
They also opened a number of subsidiaries of Megah Perawan Sdn Bhd which
produces and sells cosmetic products and a concept of Diman Megah Perawan Sdn
Bhd used is only deal with stockiest sole appointed and will be responsible for the
marketing of products Megah Perawan Sdn Bhd in Malaysia and so far demand this
product is very encouraging and well received by consumers-users throughout
Malaysia.
D'Herbs also have opened a company named AliffHerbs Manufacturing Sdn Bhd
which is a company dedicated to the manufacture of health and beauty products and
they also open up opportunities for other companies interested in producing products
under this company.
In addition, he set his company's vision to be their goal. Primary vision of
DHerbs is to be a single level that produces health and beauty products with an open
concept that is easier and simpler at the same time have the best system in terms of

management, effectiveness, quality and reasonable price that is affordable for all
groups at the same time can generate revenue and benefits for both - the two parties,
namely producers and traders.
In addition, there are also companies that explored the company mission that is to
assist women and men who suffer from health problems both internal and external to
appear more confident and stylish. Besides helping them earn more lucrative to sell
products from DHerbs.

Example Product of D Herbs

BEDAK AURA PESONA BINTANG

Make up last longer and not oily on the skin even when used over 8 hours.
SPF25 acting as agent filter solar rays for skin problems wrinkled, dry,
pigmentation and dull.

BEDAK HERBAL LUNAS

Benefit
In order to beautify the skin.
For the multiple effect use with full cream sinusitis.

COKLAT PINTAR IBNU SINAR

Boost the immune system

Improve memory and concentration of mind
Suitable for children from age 2 years and above, adolescents examination.
Adults ( Parents) who are forgetful
Has a high antioxidant prevents free radicals attack cells badan.
100% natural has no fat, cholesterol and sugar. Suitable for diabetics.

We can see that DHERBS make sales and promotion by giving discounts to their
distributor agent.
Pros:
1. Increasing sales because distributor will buy a lot to get the promotion
given.
2. Attract newcomers to become DHERBS distributor.
3. Help save money. (reduce old stock)
4. Keep places frees by selling fast old stock.
Cons:
1. Big distributor will catch this promotion because they have big capital
while small distributor with small capital will get small chances.
2. The promotions only open to the distributor.
3. Small target market.

DHERBS doing their sales and promotion via media like using TV programs,
advertising on TV and radio, sponsor TV programs, advertise on newspaper and
others ways of sales and promotion. From what we can see, DHERBS fully utilizes
their channel for promoting their product and further developing business not only in
Malaysia but going abroad.
Who is DHERBS target market?
For sure their main target markets are woman. Most of their product based on
health and beauty products where it is related to woman. DHERBS has large vision
on how they can sell their product and make their product most popular among user.
From the main target market, DHERBS expanding their market with new target
market where they found it is most realistic with the product. The new target market is
group of family. They producing product where all family member can use it.
We can see how they found out their target market. How they promoting their
product. We also can see market flow that DHERBS does. From the distributor to the
customer. All these groups are main target market where DHERBS took care of their
customer by giving special price and promotion.

That is why DHERBS are the most popular products among user and their sales
and promotion are hard to beatable by other competitor because DHERBS has their
own strategy.
Creating a good relationship between customers:
Information collected
Dherbs recognize their customer right to confidentiality and are committed to
protecting their privacy. They use the information that they collect on the web sites to
provide them with a superior shopping experience, and to communicate with them
about products, services, and promotions.
Customer's account
When their customers place an order, they will ask them to set up my account,
which includes their name, e-mail address, mailing address, credit card number, and
expiration date as well as other information needed when they order product. Using
that account information, Dherbs will send them communications that they believe are
relevant to them, such as refill and renewal reminders, newsletters, and emails. If they
prefer not to receive optional emails, or other communications from Dherbs, they may
adjust their account to prevent such communications by clicking on subscriptions
within my account. If they would like to review or revise the information Dherbs
have stored in their account, they may access such information by clicking on the my
account link on any screen.
Customer reviews
Dherbs are pleased to hear from their customers, and welcome them comments
regarding their various compounds and formulas. Customer Reviews allow other
customers the ability to see what they think about a compound or formula that they
have listed on the site. Dherbs allow them the option of sharing their reviews
anonymously by selecting Anonymous when submitting the review.

Information from third parties

If Dherbs receive updated account information from third parties, they may revise
their customer account on their behalf, and without their consent, so that Dherbs can
efficiently process the orders, deliver the packages, or otherwise communicate with
them. For example, Dherbs may receive customer information from the shippers, or
from other third parties organizations with which we operate co-branded businesses
(such as AdvancePCS). In addition, Dherbs may acquire customer names, email
addresses and mailing addresses for select mailings from third parties.
Security
When customer place an order online or use the Dherbs Health Emporium, Inc., their
personal information and credit card or debit card information are encrypted using
SSL encryption technology before being sent over the Internet, Dherbs use SSL
technology to prevent their customer information from being stolen or intercepted
while being transferred to the company. Their credit card information is always stored
in encrypted form in a restricted-access database that is away from the web site
database so it isnt connected to the Internet, to keep it safe from hackers.

Strategy Pricing Orientation

Pricing is the single greatest lever have to improve profitability, and company
profits will increase further when company price strategically. Strategic pricing is
about proactively creating the conditions under which better and more-profitable
pricing outcomes are the natural result.
Some define Strategic Pricing as value creation. Some define it as being
competitively aware. Others will use it to describe establishing a companys price
levels and bands. There are therefore a number of definitions and slight differences in
opinion but generally strategic pricing incorporates best practices in pricing and
ensures that pricing strategies, analytics and pricing processes complement business
strategy.

Strategic pricing sets a product's price based on the product's value to the
customer, or on competitive strategy, rather than on the cost of production. This
approach recognizes that people often make purchasing decisions based more on
psychology than on logic, and that what is most valuable to the customer may not be
what's most expensive to produce. By creating strategic pricing policies, analytics,
and processes, D'herbs can directly capture customer value and turn that value into
shareholder value.
For example, Dherbs using competition-based pricing strategies focus solely on
what the competition is charging, and strive to meet or beat those prices. Sometimes
this strategy is referred to as a rock-bottom pricing strategy, or a low price leader
strategy. The goal is to best your biggest competitors based on pricing alone. As Web
Marketing Today exhibits, the competition-based pricing strategy is used by many
large retailers on the Internet. Because the same products are available from multiple
sources, the consumer buying decision is simply to select the retailer with the lowest
price. This pricing strategy is a difficult one for small businesses to maintain, because
it provides very narrow profit margins that make it challenging for the business to
achieve enough momentum to grow.

Tactical Pricing Orientation

Dherbs prices are different levels depend on the implementation the first one
is based on their objective on using strategic pricing which isthe highest level in the
account for a long-term interests of the organization's. The next layer is an optimized
price to take account of short-term market dynamics, including the impact of changes
in demand and price competitiveness and foregoing which are called tactical pricing.
There are three categories which involve in tactical pricing which are cost driven
pricing, customer driven pricing and competitor driven pricing.
To further explain, cost driven pricing is very financially practical price as
itmay not capture all the value toward the market, but it able to obtain the target
product revenue exceeds of it total cost. For better understanding it is to pricing the
product based on what it costs for DherbsCompany to make a product.Costs of the

product are a function of sales, which make it into a purpose of prices. Dherbs is well
known for its originality of raw material and its slogan terlajaklaris which mean
their product is at best selling availability. Other than that is customer driven pricing
method is determined by what the seller is able to justify customers willingness to
pay. Prices that are customer-driven can reflect the value of goods and services from a
consumer point of view. Pricing has effect in a transaction made by customer to
justify their purchase decisions. For Dherbs they will be able to obtain their
customer-driven on the value that offer many beneficial in the effectiveness towardthe
use of skin care product, healthy drinks, slimming product and make up for both man
and women.
Finally, there is competitor driven pricing happen when a company place a
price for its good based on what competitors are selling which are similar product to
the company. Price competition has led to the high market share and profitability
which is to always achieve more competitive prices but to use this tactics. If Dherbs
competitor which is Vida Beauty will possibly lower prices and the pricing of its
products, it is all up toDherbs whether they will increase or lower price of their
products accordingly.Based on the all of the above the best tactics for the Dherbs to
use is customer driven pricing because pricing reflect the market condition and to
satisfy customer which promote the value toward the product.Charming customers is
the main goal of most public-facing businesses such as Dherbs, since it is the
customer who makes demand for the goods and services.
Value creation
The wide range of pricing strategy pyramid showed layers and corrosion make
the basis for pricing to maximize revenue. For values which are generated to form the
base of the pyramid is a deep understanding of how to create value for products and
services to customers is the key input to the development of the pricing structure to
determine their willingness to pay and the ability to gain knowledge of the current
market. The lowest layer of the pyramid Strategic Pricing is based on the unique value
creation in the product or service. It show the economic values which are included in
the client, the client features and advantages of the product or service satisfaction.
Dherbs would be able to interact easily with the consumer and customer to gain the

current information on the market trend toward beauty and health product. It is the
best exposure and they will engage lower prices to attract their buyers. As for example
from bellow it shows that their products is original and have many advantages toward
the user of the product and it is affordable.

Price and offer structure

Price offer structure is the tactics for pricing differently across segment.
Market segmentation is the process of dividing the various markets several types of
common features consisting of existing and potential customers and consumers. The
market researchers generally divided or split of the common interests of the common
requirements, as well as to find the common features, such as lifestyle or a similar
demographic profile. The best pricing strategy that Dherbshas uses is price fences
which aremeans to charge different prices to different customers. Fences price is fixed
based on the customers need to meet in order to qualify for an affordable price.
Values are easy to use because it contains different "expressions" to convert other

features and benefits, as they are between the economic value customer segments.
There are examples from their flyers that they use buyer identification fences for
example, membership and purchase quantity fences for example, order discount,
volume discount or step discount.

Value communication
In terms of the value of the benefit provided to a successful pricing strategy
should justify the price that is charged. One of the most difficult tasks for Dherbs is
to produce variety kinds of products, marketing and communication vehicle to
develop the communication of price and value. Value contents of the message are
changed according to the situation of the kind of product purchases. On the other
hand, if the product is purchased as opposed to the messaging experience, complex
products, such as its value proposition it provides the advantage to create guarantees
that emphasize a particular point of differentiation. Likewise, the value of the contents
of this message should be considered whether the benefits of psychological or
monetary are in the nature. Price and value messages need to also be improved for the
customer's buying context. Eventually the goal of marketing is to get the right
message to the right people at the right point in the purchase process. Dherbs clearly

shows these values through all of the detailed information of each beauty and health
product have been given and this shows that they applied the use of value
communication.

Pricing Policy
Pricing policy refers to the way a company sets the prices of its services and
products basing on their value, demand, cost of production and the market
competition. Pricing policy is essential for all companies as it provides a guideline for
creating profits and areas that bring in losses.
Establishing a pricing policy enables business managers to create pricing
strategies depending on the pricing goals of the company. Examples of pricing goals
set out by companies include fighting competition, increasing profits, increasing the
companys cash flow and stabilizing the product prices. Pricing strategies are
necessary when setting pricing policies. Companies consider the prevailing market
conditions to determine the right prices of their products as per the state of the market.
Other important factors considered when developing pricing policies include
competition, costs, different market segments and the customers.
Development of pricing policies begins with considering the pricing based on
the production costs. The second consideration is the value of the products followed
by pricing according to the current demand of the products and services. Additionally,
the pricing factor varies according to the age of the company in the market. New
entrants offer lower prices to attract customers whereas the incumbent firms vary. The
old firms that fear the influence of the new entrants can lower their prices in a bid to
retain a larger share of the market. Other firms resort to improving service and
enhancing customer loyalty. These factors determine the strategies and policies taken
by managers when determining the prices of their products.
For example , DHerbs uses price reductions are most likely to occur
when the increase in transparency allows customers to shop around more efficiently,
and competition prevents suppliers from increasing their prices. Price increases are
more likely to occur in markets where suppliers have some degree of market power.
When there are relatively few suppliers, the mostprofitable strategy for a low-cost
supplier may well be to price up to the levels charged elsewhere.

PRICE SETTING
Price Setting is the amount of money charged for a product/service or Total
sum value of exchange the consumer offers for using a product/service. Price is one of
the main factors which affect the consumers buying decision. Particularly in price
sensitive segments proper price setting plays a major role in the success of the product
or the service offered. High price will make the buyer to look for other options. On
the other side low price might give an impression that the product might be of low
quality. So marketers must be very careful in setting the correct price.
THE PROCESS OF PRICE SETTING

The first step in price setting is to identify the firms pricing objective. The
objective of the firms could be to increase the profit or to maximize the market share.
In the first case the pricing could be premium where as in the latter case the focus is
on increasing volume by offering low prices. Five major objectives of the companies
are
1. Survival
2. Maximum current profit
3. Maximum Market share
4. Maximum market skimming
5. Product-quality Leadership
Example: DHerbs uses market skimming prices

CONCLUSION
DHerbs does not come as easy as that. Actually Dato Aliff Syukri started
selling other peoples jamu and health products from his 16. Humble enough just by
selling at local farmers market at various locations. He is no genius in study, from
poor family, yet he determined for success. Selling at farmers market was hard, but
with less cost to maintain, he able to collect and save money. With time comes
experience, by support from friends and family, Aliff Syukri later on started DHerbs
with his own saving money. However, his first start is kind of big gamble of all or
nothing.
Dato Aliff Syukri has the ability to perceive or understand his customers well. He
organized road shows across Malaysia and Singapore to meet customers. The focus of
the road tour is not limited to big cities but also extends to small towns and villages.
By having such road shows, he believes that people are more willing to try his
products when they see someone else using them or teaching them how to use them as
they are less likely to believe in advertisements.
As a conclusion, we can state that the entrepreneur is someone who takes risks
begin or establish a business or company and work it. Someone has to start a business
or buy a business that was started by another person also known as entrepreneurs.
Once the DHerbs objective is determined the demand for the product need to be
analysed as different pricing the demand will vary. Estimating the demand will help in
understanding the price sensitivity of the market and the demand curve. Demand
analyses help us to arrive at the price ceiling. Cost estimation will give the price floor.
To set proper prices the management should know how different production level
affects the total costs. Knowing the cost and price of the competitors will help in
positioning the product better in terms of price.