Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Nike pricing strategy

18/11/2020 Client: arwaabdullah Deadline: 3 days

1

2

Price and Channel Strategy

Price and Channel Strategy
Nike continues preparing a marketing plan for its new sportswear apparel products with price and place strategies. Nike strategizes its product pricing addressing dynamic and static pricing strategies along with daily, promotion, and list pricing techniques. Nike also completes place strategizing through channel distribution, mass, selective, exclusive, and positioning tactics.

Price and Place/Distribution

Dynamic/Static Pricing Strategies

Nike uses dynamic or discriminatory sportswear product pricing as its primary pricing strategy to support its short-term and long-run objectives. Dynamic pricing is where the product price is established but not set in stone for the life of the product, and the price fluctuates within the stages of the product life-cycle and other mitigating circumstances such as geographical locations economies. Nike’s customers historically support its dynamic pricing strategy and enjoy its products brand value.

Static pricing is when a product price is created and sustained for the product over lengthy time periods. Nike does not use the static pricing strategy because it is not practical to set standard prices for sportswear that has many versions for different product lines. Although, Nike does establish prices that are consistent with new and existing products assuring consumers that there is an average price point to expect.

Daily, Promotion, and List Pricing

Nike sets its sportswear products daily prices at the high, medium and low price points. Nike has a pricing department that is dedicated to establishing product prices. Sportswear prices are elastic and will endure change. Daily pricing supports the company penetrating the market, determining its standing, earning profit and market share, creating competitive advantage, and adjusting prices as necessary to sustain growth.

Nike uses promotion pricing versus the EDLP as other competitors. Promotions allow the company flexibility to maximize its profits and exemplify its high revenue sportswear apparel products. Promotions may be factory direct or retail endorsed for reasoning or seasoning sales. “Three prominent retail pricing strategies are frequency discounting, where retailers offer frequent but small discounts; depth discounting, where retailers offer infrequent large discounts; and everyday low pricing (EDLP), where retailers offer products at a constant low regular price” (Danziger, Hadar & Morwitz, 2014, p. 761).

List price is a skimming technique where Nike sets its newly introduced sportswear products at higher prices and then lowers them over time. Nike has to maximize its revenue from its innovative products before competitors match their technology and flood the market. List pricing along with daily is especially important for its global market pricing aspect.

Distribution Strategies

Nike will use marketing channels of not only the consumer but also the industry to distribute its sportswear apparel. “A marketing channel refers to “a set of interdependent organizations involved in the process of making a product or service available for use or consumption” (Watson, Worm, Palmatier & Ganesan, 2015, p. 547). Nike has a robust marketing channel system in place to distribute at all four levels from the manufacturer directly to the consumer and the manufacturer through various partnerships to customers, (see below fig. 17.3). Nike also uses both the vertical and horizontal marketing systems by embracing different levels of partnerships to maximize its product placement. These partnerships are especially crucial within the global market because Nike does not have the same control abroad as within the domestic market.

Channels, Mass, Selective, and Exclusive

Nike uses exclusive distribution when channeling from manufacturer directly to the consumer. Nike has mastered this channel using digital online to its technological limits. Reducing the middle-man enhances company revenue immensely and provides customer value with limited interruptions.

Selective distribution is used by Nike in full force. Nike has many factory outlet stores and retail stores that are close and trusted partners that sell their sportswear within their terms. Nike supports the aspect of maintaining a manageable number of intermediates for the proper placement and distribution of its product and limiting conflict.

Nike also uses the intensive distribution strategy and places its sportswear apparel products with wholesalers and retailers for sale to consumers. Nike not only uses this intensive placement domestically but also globally. The intensive global distribution is crucial in Nike expanding the global market, gaining market share and expanding its global footprint.

Positioning Within Channels

Nike has different product distribution channels to ensure customers are reached, satisfied and loyal. “By monitoring their environment and harnessing technological advances, retailers can (1) remain more in touch with consumer preferences, (2) take advantage of opportunities created by new consumer preferences, and (3) enhance the value they offer to consumers” (Grewal, Roggeveen, Compeau & Levy, 2012, p. 1). Proper positioning ensures products are where they need to be when they are needed. Nike also positions itself to stay one step ahead of competitors and create competitive advantage. Nike ensures that competent and trusted intermediaries are part of their market channel system and value network.

Conclusion

Nike has planned for its sportswear apparel products pricing and distribution strategies. Nike has a dedicated pricing department that uses dynamic pricing within daily, promotion, and list pricing to accomplish company sales objectives. Nike also has robust distribution strategies using exclusive, selective, and intensive channeling with crucial positioning to meet company strategic plans.

References

Danziger, S., Hadar, L., & Morwitz, V. G. (2014). Retailer pricing strategy and consumer choice under price uncertainty. Journal of Consumer Research, 41(3), 761-774. doi:10.1086/677313. Retrieved from The University of Phoenix MKT571 website.

Grewal, D., Roggeveen, A. L., Compeau, L. D., & Levy, M. (2012). Retail value-based pricing strategies: New times, new technologies, new consumers. Journal of Retailing, 88(1), 1-6. doi:10.1016/j.jretai.2011.12.001. Retrieved from The University of Phoenix MKT571 website.

Kotler, P. & Keller, K. L. (2016). Marketing Management (15th ed.). Retrieved from The University of Phoenix eBook Collection database.

Watson, G. F., Worm, S., Palmatier, R. W., & Ganesan, S. (2015). The evolution of marketing channels: Trends and research directions. Journal of Retailing, 91(4), 546-568. doi:10.1016/j.jretai.2015.04.002. Retrieved from The University of Phoenix MKT571 website.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Buy Coursework Help
Helping Hand
Quality Homework Helper
Top Essay Tutor
Top Quality Assignments
Writer Writer Name Offer Chat
Buy Coursework Help

ONLINE

Buy Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$60 Chat With Writer
Quality Homework Helper

ONLINE

Quality Homework Helper

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$65 Chat With Writer
Top Quality Assignments

ONLINE

Top Quality Assignments

Hey, I have gone through your job posting and become very much interested in working with you.I can deliver professional content as per your requirements. I am a multi-skilled person with sound proficiency in the English language for being a native writer who worked on several similar projects of content writing and can deliver quality content to tight deadlines. I am available for both online and offline writing jobs with the promise of offering an incredibly responsive and supreme level of customer service. Thanks!

$55 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Usa patriot act powerpoint presentation - Good morning in sign language bsl - Saini v all saints haque centre - Tay fm cash register - Analyze how forgiveness is utilized for both intrapersonal characteristics and interpersonal relations improvements. - Is longchamp a luxury brand - Thesis final draft - Scheme of work example - Monash uni health service - Beat the flood stem challenge - Needed in 6 hours - Vacon nxp application manual - Phone calls arrive at the rate of - 330ml rtd with 5.5 alcohol volume - Patient liaison officer job description - Midmark iq manager download - Ain t ia woman cicely tyson - Fries & bridges headspin ghetto mix - What milestones is starbucks known for - Making ethical decisions test answers - Windows file auditing software - Living the sweet life - Business Ethics - Cueing hierarchy for articulation - Halo spherical e14 28 35w bulb - Sun west mortgage payment - New century wellness group case study answers - Jones new york charging pouch instructions - What functions can companies improve by using wikis for collaboration - Difference between positivism and constructivism - Lab 1 introduction to science exercise 1 data interpretation - Speckled band snake india - Why is more than one accurate titration carried out - .edmodo.com - Essential cell biology 2010 - Brilliant Answers - Size 4 us baby shoes age - Cleanliness is next to fordliness - Integumentary case study - Commanding heights youtube - Moreton bay pd online - Andrea yates cognitive perspective - What can go wrong when failing to acquire morals - Tired swimmer case study answer key - Physics Set - Utilizing pharmacy automation robots quizlet cvs - Frosted flakes marketing strategy - Contemporary asian america a multidisciplinary reader 3rd edition pdf - What does colpodynia mean - How to play scene it dvd game - Chain smoking whiskey drinkin sob - Allsp cdu - Ford motor company competitive advantage - Child development stages chart 0-16 years - Explain the differences you saw between the two websites you observed in Wireshark. What were the differences you noticed when you did the trace? You should write about 250 words or more . - Business model canvas healthcare example - Nicholson metabolic pathways chart - Sphl720bk1 - National budget simulation game - Angle between 2 lines - Brisbane city council fees and charges - 956a appointment or withdrawal of an authorised recipient - Deutsch crimper snap on - Yvette's brave battle answer key - Advertising campaign assignment - Evaluate information systems and communication processes - Arthur j keown financial management pdf - Braun clarke thematic analysis - English - Different roles that people play in the design, development, and use of information systems. - Utm swiss 721 black condensed - Walmart recruiting store sales forecasting - Solubility of benzoic acid in diethyl ether - How to remove music from windows movie maker project - Ambulance victoria radio frequencies - Arm span compared to height - Siop observation form - Chap. 6 Q HR - Dundee city council planning - Multimedia - Coach boone gettysburg speech - Why is nitrogen used in scuba tanks - Prefix and suffix basketball games - Arabian peninsula geography worksheet - ASSIGNMENT 5 - Walmart near grand canyon university - Dr pepper snapple group competitive advantage - Information deficiency problems in business - Elements of a feature story - Deliverable 5 - Using Ethics in Visual Communication - Essay correction. - Pharmasim how to win - Schedules of reinforcement quizlet - The hound of the baskervilles chapter 6 questions and answers - Lloydslink commercial banking online - During forbearance interest will still accrue on your loans - The handsomest drowned man in the world full text - Parts of speech guide - Nursing - Reading Summary