Analyzing of Pricing Strategy: Nike

Analyzing of Pricing Strategy: Nike  Term Paper example
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The company is one of the leading players in the world’s sports equipment industry, and its business mainly focuses on athletic shoes and apparel. Financial reports indicate that the Nike attained annual revenue in excess of $18.6 billion for the financial year ended in 2008 despite the difficulties associated with the global financial crisis.


The well structured marketing mix assists the Nike to create value for its market segments. Firstly, the company has a broader line of products including athletic shoes, apparel, and sports equipments. Since modern consumers are eager to get access to a wide variety of collections, this product strategy would greatly assist the company to effectively meet customer satisfaction. The company mainly practices skimming pricing strategy and product line pricing strategy so as to create value for its different market segments. Skimming pricing is a pricing strategy by which a marketer fixes a relatively higher price for its product or service and eventually lowers the price as the level of market competition increases. Such a pricing strategy allows the Nike to recover its sunk costs immediately after the products are launched into the market. In contrast, the product line pricing strategy is employed to market different products in the same product category at different price rates on the ground of the relative features or benefits. By using this pricing strategy, Nike can effectively meet the tastes and specifications of different classes of people. Finally, the improved promotion strategy also extremely benefits the firm to add value to its various market segments. Nike follows advertising, direct marketing (through e-shop), and public relations as part of its production promotion efforts. For instance, the sponsorship of Manchester United has made the Nike popular across the United Kingdom. ...
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