Is Nike's pricing strategy smart? Why or why not?
I think that Nike's strategy is brilliant. Nike produced the Lebron X shoes for people who value the Nike products. The quality of the shoes is way much better than the other shoes that Nike has ever produced. The quality qualifies the shoes to be the most expensive. Some people value the product and not the price.
The shoes are unique, and the prices may raise Nike's profit margins, but is it insensitive to the mass market that can't afford them?
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There is a huge market of people that would pay the $315 for shoes. I would even pay it if they were extremely comfortable and last a long time. Nike is a business organization which has provided cheap shoes before. Lebron X was meant for those who can afford the price which I think is not insensitive for the consumers who cannot afford them.
Is there a way to be sensitive to those who can't afford the top tier shoe model?
The video does state that the actual sale price of these shoes will be $180. This is the method Nike used to be sensitive to those with a smaller budget. I do not think that this was a necessary step for the product to be successful, although the quantity sold will likely be more than double, as the market value is much higher than the sale price. The product was created to appeal to those who can afford a higher quality product; it is not Nike's problem that consumers are outraged by the price. If you cannot afford it, do not buy it.
How would you handle the public relations backlash that is occurring?
I will provide buyers with the reasons why the price has been double. For Nike situation is the quality of the shoes had been improved. Nike should produce a product which will be of less quality for the low class who cannot afford the expensive brand (Tony 2012).
References
b/60. ( 22 Aug 2012). LeBron X Sneakers Most Expensive in Nike History https://www.youtube.com/watch?v=RNr-eEU5Y3w
Tony Manfred. (2012). “Why Nike Is Charging Up To $315 For The New LeBron James Sneakers.” Bussiness Insider. Retrieved on 7 th June, 2019 from https://www.businessinsider.com/nike-lebron-x-price-2012-8?IR=T
