Nike's Price And Pricing Strategies: Nike

 Price and Pricing Strategies:

NIKE uses Price Leadership strategy and value based pricing. This is when a company sets its price based on the value the consumer places on the product. NIKE has spent a lot of money to promote their brand as top of the range. Customers buy the product for the NIKE symbol and are willing to pay high prices regardless of the product’s actual value.

A product‘s price has strong connections with its point in the life cycle. In the introduction phase, a skimming or a penetration price might be used; in the maturity phase, promotional and discount prices may be used; and in the decline phase, sale, or mark-down prices may be used to get rid of unwanted stock. NIKE Free, NIKE Air Max, NIKE Shox, NIKE Air Jordan,

Often, the NIKE Air Max is priced differently in a Lady NIKE Store or Multi-brand Shop versus a regular NIKE Store. So based on whether the Air Max is found in a Lady NIKE Store or a regular NIKE Store or a multi-brand Store, the price can vary.

 Place and Location Strategies

Channels and distribution are important factors to be considered when talking about the place. Nike is a highly centralized and extremely focused company. Management has concentrated on a few core corporate functions, such as brand building and supply chain management. In addition a dedicated sales force has sold Nike products to retailors or, in a limited number of countries, to distributors.

Nike has relocated production of its footwear and clothing to 600+ contract factories in 40 countries. Nike has a phenomenal creation centre in Montabelluna, Italy, where craftsmanship is a king. Nike has taken their learning and shared them with their manufacturing partners in Asia, and fundamentally changed the game and raised the bar of what it means to deliver incredible sportswear products in the athletic industry.

Nike uses different Market Expansion strategies such as:

1)Shared distribution channels among varied product lines lowering cost

2)Large Size provides opportunity for more leverage against

They also looked for players who were expressive and embodied a fast, attacking brand of soccer -- in contrast to the methodical, defensive style called German football. An early coup was the signing of Brazil's Ronaldo, who helped NIKE design the Mercurial Vapor shoe.

In March 2002, NIKE began an estimated $100 million worldwide marketing campaign built around what it called the "Secret Tournament." The 'tease' phase of the campaign began in March with ads featuring little more than a pair of soccer cleats and a scorpion - a symbol of "the quick and deadly style of play" with which NIKE wanted to be identified. For the curious, there was a reference to nikefootball.com, where visitors could play video games and learn in 12 languages.

The tournament's 'Excite' phase began in April, with a series of dark, edgy commercials evoking the post-Apocalyptic Australia of the movie Mad Max. The "Involve" phase of the campaign was launched in June, when NIKE opened parks in Mexico City, Tokyo, Rome and 10 other cities to host tournaments for young players. Nearly two million players participated. By the time of the 2002 World Cup in summer, NIKE had made its presence felt in the soccer world. Eight of the 32 finalists wore NIKE uniforms, including Brazil, which won the Cup for a record fifth