Nike Pricing Strategy

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Pricing is company selling a product or service. The product price can set to a highest profit for every single product sold in the market or from the market. The price can be control by the organization to benefit their consumer needs and wants depending consumer behavior and the market. (THEECONIMICTIMES, 2013)

In NIKE Company there is two pricing strategy and the first strategy will be everyday low price (EDLP) and high-low (HI-LO). The definition of EDLP, the NIKE Company will cut down their company expenses from advertising and some operation expenses. Besides that, NIKE Company will ensure every consumer is affordable to purchase his or her product by giving up lowest price. Because of this strategy, it will give the organization having a better supply chain management. For example, NIKE Company will not occur out of stock because in the price strategy it will make sure higher inventory turns and this pricing strategy will not stock outs. Apart from that, NIKE company use the cost-oriented of pricing strategies to target the customers who are in middle-income of customers by setting low price with the intention to attract customer’s attention to reap more profits.
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The topic that we choose is Nike’s company which is the big company and lots of competitor in marketing such as Adidas and Puma. Nike’s company does have a lot of loyal consumer and because their company have a good communication mix in marketing. First of all, limitation is one of the communication mix. Consumer may just wait the incentives for example like on time delivery. Other than that, consumer may diminish image of the firm, represent decline in the product quality. Nike also will reduces profit margins, customers may stock up during the promotion. Shift focus away from the product itself to secondary factors, therefore no product differential

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