Zudio vs Mamaearth vs mCaffeine: Same products & different price tags

Before we begin the discussion on Zudio vs Mamaearth vs mCaffeine, I would like to bring your attention to a mind-blowing fact! 

Just type the Zudio manufacturing plant or Mamaearth manufacturing plant into Google and see the results. They don’t have any manufacturing facilities!

Sounds quite shocking… Isn’t it? Well, that’s true because these are brand-oriented companies rather than product-oriented companies. Moreover, the products of all these brands are quite similar yet they have shockingly different price tags!

Why so? Go through this article and you’ll find out…

Zudio vs Mamaearth vs mCaffeine: A Brief Overview of the Product Prices

First of all, let’s go through the price comparison of various products of these brands-

Can you see the price difference in all these three brands? That may be because Mamaearth is the most famous brand in all three and mCaffeine is known for its skin care products hence its serum is the costliest here. 

These reasons are nothing but a superficial layer. Let me tell you why in the next sections. 

Note: We have already discussed Mamaearth business model and Zudio business model in detail. You can go through the article for detailed information.

Why is the product the same despite different branding?

Do you know many brands share the same contract manufacturers and that too for the same products? If you don’t believe then check the info given in the following table-

That’s not all. The list is quite long and includes the following contract manufacturers as well-

• Indo Herbals
• N.G. Electro
• RSH Global
• Anapure Biocos
• Reve Pharma
• Stella Industries Limited
• Ananya Herbal Pvt. Ltd

Thus, various products have the same quality irrespective of different branding. 

Reasons Behind Shockingly Different Price Tags of Same Product

You’ve probably noticed that two beauty products with the same ingredients, produced by the same contract manufacturer, have drastically different price tags. You might wonder why this happens if the quality remains the same. 

Well, the answer lies in perception, marketing strategies, and the brands’ positioning. Let’s break it down step by step-

1. Perception of Premium Quality

One of the biggest reasons for the price difference is how brands want you to perceive their products. Imagine walking into a store and seeing two moisturizers. One has sleek packaging, a high price tag, and is marketed as luxurious. The other is more basic in appearance and costs much less. Although both might have the same ingredients, the higher-priced one is designed to appear premium. 

As consumers, we tend to equate higher prices with better quality, even when the products are identical. Hence, the majority of the folks opt for expensive products.

OrigoCosmeceuticals, a skincare contract manufacturer, offers valuable insight into this. They emphasize targeting aspirational consumers—people who want to feel like they’re buying something exclusive or high-end. 

One of their executives said, “Don’t sell to the poor folks; sell to people like yourself.” Essentially, brands create an illusion of luxury to cater to people who desire prestige, and this is reflected in their pricing.

2. The Power of Brand Identity

Brand identity plays a crucial role in determining the price of a product. Some brands invest heavily in creating a unique image that resonates with their target audience. They use celebrities, influencers, and top-notch advertisements to build their identity, making you feel connected to the brand.

For example, direct-to-consumer (D2C) personal-care brands often set high Maximum Retail Prices (MRPs) to give their products a premium feel. But here comes a plot twist- Bizarre Discounts!

3. Strategic Discounts and Offers

Another tactic used by brands is offering eye-catching discounts and deals. It might seem counterintuitive, but many companies deliberately keep the MRP high so that they can slash prices later in promotional sales. This strategy makes consumers feel like they’re getting a premium product at a bargain price.

Just look at the following offbeat promotions from different beauty and personal care products-

• mCaffeine: Buy 3 for Rs.999
• Wow Skin Science: Buy 8 @ Rs.1000
• Organic Harvest: Try a Pack of 8 at Rs.898 Rs.1
• Beardo: Limited period offer Rs.3397 Rs.1099 60% OFF
• St.Botanica: Buy @ just Rs.779 Rs.1 
• Body Cupid: Buy 8 @ Rs.999

Brands like Mcaffeine, Wow Skin Science, and Organic Harvest engage in the practice of setting high MRPs but offering seemingly large discounts.

By creating a strong brand identity, these companies can justify their higher prices even though the actual product quality may not differ from a cheaper brand.

However, some brands, like Tata’s Zudio Beauty, take a different approach. Zudio recently launched with low but fixed prices, bucking the trend of high MRP and steep discounts. Their strategy is to offer affordable products from the get-go, appealing to price-conscious consumers without the need for flash sales.

4. Marketing and Distribution Costs

Higher prices are also influenced by the cost of marketing and distribution. How? Just look at the glossy ads of D2C brands. They will literally make you feel as if you are a family member of the brand and hold much more value than a customer. 

Also, other types of ads like social media campaigns and influencer marketing also cost a huge chunk of money. Hence, these expenses are added up and ultimately passed on to the consumer through higher prices.

In contrast, smaller or more direct brands can keep their prices lower by minimizing marketing spend and relying on word-of-mouth or online-only sales channels.

5. The Psychology of Price Anchoring

Price anchoring is another technique used by brands to manipulate how you perceive value. It works like this- when you see a product priced at Rs.3,000 next to a similar product priced at Rs.1,500; the second one feels like a bargain- even if both products are overpriced to begin with!

Brands often anchor their prices high to make their discounted or mid-range products seem more attractive. This psychological trick helps companies maintain the illusion of offering better value, even when the actual production cost remains low!

6. The Exclusivity Factor

Some brands aim to be exclusive, which drives up their price points. When a product is marketed as a rare or limited edition, it instantly becomes more desirable, even if its quality is the same as a mass-market product. Consumers are willing to pay more for the feeling of owning something special or unique.

Luxury brands excel at this. By limiting the availability of certain products or collections, they create a sense of urgency and exclusivity, allowing them to charge much more than their competitors.

Ending Note

As a consumer, it’s important to recognize these tactics and make informed decisions. It is not only about Zudio vs Mamaearth vs mCaffeine. But more about the other marketing-centric beauty and skincare brands. 

Sometimes, paying more doesn’t necessarily mean you’re getting a better product—it could just be that you’re buying into a brand’s carefully crafted image.

What do you think about this? Don’t forget to share your thoughts in the comment section!