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1.0 ADIDAS PRICING STRATEGY
Pricing strategy is an account segments, the ability to pay by customers, the market conditions,
competitor action on product pricing and many more. Firstly, analyze what kind of pricing
strategy need to apply and analyze the current market whether it is suitable or the right time to
enter the market with the pricing strategy that has been set. The value of the product is depend on
the price. Normally, companies base the price of the product on production, labor, and
advertising expenses and add on a certain percentage to make a profit. Pricing strategy which is
Prices to Build Brand Equity.
1.1 PRICES TO BUILD BRAND EQUITY
Build brand equity is important to Adidas because it is the power of the brand which is different
with other brand, have their own value that drives customer perception. A pricing strategy build
brand equity based on the setting current prices and the promotion or discount used.
1.2.1 Premium Pricing
Adidas adopt a premium pricing strategy in contrast to its competition. High price is used as a
defining criterion. Such pricing strategies work in segments and industries where a strong
competitive advantage exists. Adidas using this premium pricing strategy to gives customers
more incentive to buy Adidas product , over its competition like Nike, Puma and many more.
Adidas product design quite interesting, unique, added with high quality of the material used
and the performance technology as well. This kind of specialties tells the customer it is
worthwhile to purchase the product with higher price. Adidas can charge premium prices as it
offers a different, higher-end ‘lifestyle’ than its competitors. For example, the Men's Adizero
Aegis 3 Shoes is the latest sport shoes by Adidas and the price is RM 450.00.
A foot-cradling geometric design stabilizes without any
excess. Fast and light. These men's running shoes are
