Pricing Strategy For A Backpack

Athletics Supreme’s sportswear prices are affordable when compared to higher priced competitors like Walmart Stores and Dick’s Sporting Goods with a pricing strategy designed and employed to offer competition to its rival companies. The company does not compromise on its quality craftsmanhip while still offering low prices because it is confident of its loyal consumers. The company’s pricing methodology is flexible and depends generally on the economic trends that might influence buyer behavior in targeted segments focusing on total customer satisfaction as a way of encouraging brand loyalty in a highly competitive

American Eagle is defying a slump in teen retail, with sales rising 11% in the most recent quarter. The retailer has been taking several steps to avoid slipping sales, Phil Wahba of Fortune reports. A crucial component of this is avoiding heavily discounted clothing — a trend that's hurting competitors Abercrombie & Fitch and Aeropostale. While shoppers love discounts and good sales, too many of them can be detrimental for retailers. Constant heavy discounts can condition consumers to not want to pay full price.

The three main competitive strategies are cost leadership, differentiation, and price strategy. Cost leadership focuses on acquiring raw material of the highest quality at the lowest price. In return this company can lower production cost with the goal of being the company with the lowest production cost in the industry. Differentiation strategies allow companies to make their products stand out from the others. Differentiation can be actual or perceived. Actual differentiation occurs when the company creates products that are not available elsewhere. Perceived differentiation takes a lot of marketing and advertisement to convince the consumer that this company’s product is superior. Price strategy includes a variety of strategies that cause a particular product to be marketed at the lowest price possible. Price strategy includes skimming where companies set a high initial price only to turn around and lower it. Bundle pricing occurs when several products are offered for one price. Promotional pricing allows other incentives to buy such as buy one get one half off. Using the pricing strategies causes many consumers to actually purchase more believing that they are receiving a “deal” while the company is still profiting. Competitive strategies are always used by companies and are often used together. Companies that understand how to combine competitive strategies fare much

when launching a new product there will be less competition in the marketplace. Skimming involves setting as reasonably high initial returns from those consumers willing to buy the new product.

Companies can choose many ways to set prices, skimming price strategy where a company sets a higher price than normal and a penetrating price where low initial price is set. “Pricing

Pricing is important when marketing a product. The determining factor for the pricing is the material, time to make, amount spent on marketing and promotion of the product. The goal in providing such a product that is moderately

Price: a price gives value to a product. Adidas use different types of pricing strategy as they sell different varieties of products, however the most common used pricing strategy is the skimming strategy , where products are sold at a high price because of they have a unique product.The price of the product is always displayed with the product however the price might change if discount or delivery cost is included.

The service learning activity that has been the most meaningful to me is the Backpack Program. Over the past four years, I have been involved with the Beta Club which is a big contributor to the program. The reason this activity is so meaningful to me is because if affects the peers in my schools who are in need. Every year we are told a story about a student who was receiving items from the program. One afternoon while selecting items, he picked some bananas and stated "My little sister will be exited about these. We have not had fresh fruit at house in over a year." Every time I here that story, it motivates me to help out my fellow Chase High Students. Not only do I bring food, but I bring necessities that someone would need to maintain

This strategy guarantees that the company does not loose out on the venture by covering their fundamental costs of operation. This allows them to keep the price low enough to entice consumers while simultaneously hedging themselves from the risk of losing money on each item sold. This is basis for a market penetration strategy.

First of all, penetration pricing is the major determinant of the price and that is employed when the product managers have to give most of the value to the customers and keeps a small margin. Chatime decided use penetration pricing where set a lower price of milk tea than the eventual market price to attract

The second pricing strategy is the penetration pricing where the product enters newly into the market. To gain some consumer base from the competitors, the seller initially charges a lower price than the competitors. For example the ticket prices initially charged for IPL, Indian Premier League, matches were lower than the ticket price of the competition ICL matches. On the contrary, price skimming strategy is to grab the financially top class of the market and to do this, the seller charges high prices. The effectiveness of this strategy is based upon

Costs play an important role in setting international prices. Travelers abroad are often surprised to find that goods that are relatively inexpensive at home may carry outrageously higher price tags in other countries. Besides, such price escalation may result from differences in selling strategies or market conditions. In most instances, however, it is simply a result of the higher costs of selling in foreign markets such as the additional costs of modifying and packaging the product, higher shipping and insurance costs, import tariffs and taxes, costs associated with exchange rate fluctuations and higher channel and physical distribution costs. Futhermore, Milo also adopted Promotional Pricing strategy. Selling products is challenging when shelves are lined with similar-quality products, and customers are bombarded with advertising messages. Promotional pricing helps differentiate Milo’s product with its competitor and leverage a potential customer's attention long enough to purchase the Milo products. Promotional pricing involves lowering the price of a product, distributing coupons or offering specials, such as buy-one-get-one-free offers. For example, Milo offer promotional pricing for its product in weekly catalogue to create excitement and a sense of

This strategy will eliminate the risk of discounting and losing potential profits because the product will be marked up initially and "discounted" upon the arrival of competition and the growth stage of the products life cycle. Because prices of competitive products are priced high, using a skimming strategy will not pose a threat instead could prove to be more advantageous in the long run.

The strategy for setting a product’s price often has to be changed when the product is part of a product mix. In this case, the firm looks for a set of prices that maximizes its profits on the total product mix. Pricing is difficult because the various products have related demand and costs and face different degrees of competition.

Keeping these realities in mind, it is very much obvious that for this market, we choose and follow a value based pricing and do not keep the price of the product too high. It is advisable rather to follow an average pricing and let the consumers build some enthusiasm around the product.