Sanders MKT 3301 Unit 8 PP

MARKETING PLAN 4

Marketing Plan

JaKeria Sanders

Columbia Southern

05/23/2022

Product

Adidas is a fashion company that is designed to get athletes moving, winning, and living life to the fullest by designing sports apparel and workout clothes. The company offers its clients the best sporting goods, styles, and clothing that match their athletic needs while ensuring sustainability. The company’s mission is to support creators, improve their games, and impact the whole world positively. Adidas company will provide smart customized running sneakers for athletes. This sportswear will be fitted with motion sensors to detect the movement and pace of the players to help them improve their speed.

The product will be classified under consumer products since they will be purchased by the final consumers. The products will be high priced and consumers will require to spend more effort and time in gathering information about the product. The company’s marketing team will play a great role in availing information about the products’ price, quality, features, and durability. Moreover, the products will be classified under high-involvement goods. The consumer will not just walk into the shop and buy like a packet of salt. The consumer will use time and effort in searching for the brand that fits their preference. The consumer will require to be informed about the product features, durability, and price. This will command a high level of marketing to create brand awareness and loyalty. The products will also be highly durable to last for at least three years. The products will be designed to withstand rough, rocky, or slippery terrains to ensure the safety of the athletes and avoid wear and tear.

The company’s product will fall under the introduction stage of the product life cycle. The company will provide substantial investment in advertising and marketing campaigns. The company is focused on creating brand awareness and its benefits (Carol, 2020).

Pricing

Adidas employs a premium pricing strategy that targets high-end customers who are willing to pay more for high-quality products. Adidas products do deserve the expensive price tag to the quality, durability, and sustainability offered. Moreover, the high prices reassure the high-end consumers that the products purchased are worth the price and of high quality. There are various key determinants of the pricing strategy employed by the company. Pricing refers to attaching value to a product. One of the factors is the cost of the product. The high input cost is spent on raw materials, wages, advertisements, and salaries. The production of unique products, the added features, and the durability of the products also facilitate the high pricing. Price is also affected by the demand and supply of the products and the competition from other firms.

Two types of pricing methods include cost-oriented pricing methods and market-oriented pricing methods. The initial method calculates the production cost and adds a certain percentage as the profit. Market-oriented pricing method relies on the trends and research of the market to determine the price. This method provides flexibility and may change depending on the target consumers, time, and area.

A firm’s base price strategy establishes the initial price and sets possible price ranges for the product throughout its product life cycle. The initial price is essential for initiating success and maintaining potential profit over a long period. The base price can be fine-tuned with the price-adjustment strategies through price skimming after the launch of the product, price penetration to maximize sales and to gain a large market share and acceptance, and prestige pricing to develop an image of exclusivity and superior quality than the competitors (Eco, 2016).

References

Carol M. Kopp (December 27, 2020). Product Life Cycle. https://www.investopedia.com/terms/p/product-life-cycle.asp

Eco (September 14, 2016). Base pricing strategies and adjusting the base price. Site Economics. https://siteeconomics.blogspot.com/2016/09/base-pricing-strategies-and-adjusting.html