Nike’s Pricing Strategy

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Nike’s Pricing Strategy
Pricing strategy should take a wide range of aspects into perspective. For instance, the input costs, trade margins, competitor actions, market conditions and ability to pay (Nagle and Georg 22). Nike’s pricing strategy for Lebron X basketball shoes is a smart strategy as it has taken several aspects into consideration. The shoe could be regarded as a luxury product just like any other good meant for the high-income earners. The built-in electronics are the major aspects that are considered unique when compared to the earlier versions of the shoe. This strategy could not only market the Lebron X shoes but could create an illusion among the consumers that the earlier versions of the products are cheap therefore increasing their consumer base.
The public relations department could deem the prevailing rivalry as malicious since the choice to purchase the product is as per the consumers’ willingness to utilize a product the measures their performance. In this perspective, a less costly shoe is readily available for those who might have lower amounts of capital to acquire the Lebron X. However, the strategy could be limited with regard to the fact that the shoes are being marketed to a population that doesn’t seem to have the willingness to purchase. This is because most of these individuals may not be in apposition to afford the product. The two major factors that deter the price of a product from increasing to infinity is the ability to pay and people’s willingness to pay.

Conclusively, this a smart marketing strategy which relates to that of luxury products. If the company intends to increase the sales for this brand, the marketing should, however, be directed to all segments especially those who have the ability to purchase the Lebron X shoes.

Works Cited
Nagle, Thomas T., and Georg Müller. The strategy and tactics of pricing: A guide to growing more profitably. Routledge, 2017.