Reebok Prices example essay topic

Marketing AssignmentProductThe product I am going to design and develop is a brand extension of REEBOK. I am going to design and develop a REEBOK. Mini-disc player. It will aim at 18-26 year olds. I have chosen this certain age group because of the research carried out. From my research I can conclude that the age groups are interested in owning a mini disk player because of many reasons e.g. style, size, price etc.

I have chosen REEBOK. because they are quite popular among the target market I have chosen to aim. REEBOK are among one the well known brands in the world, shortly after NIKE. Consumers are interested to REEBOK products because of their designs, quality and logs. Reebok prices tend to be a little cheaper then their main competitors Nike, Adidas and Puma. You can see this from the research table below: LOGO PRICE Reebok lb 25-lb 56 Nike lb 46-lb 150 Puma lb 28- lb 60 Adidas lb 35-lb 55 We can clearly see that Reebok set a price just below the main competitors, this is because they know consumers will want to buy products but still at a cheaper price and still have the satisfaction of buying a good brand name product. Brief history on Reebok Reebok's United Kingdom-based ancestor company was founded for one of the best reasons possible: athletes wanted to run faster.

Therefore, in the 1890's, Joseph William Foster made some of the first known running shoes with spikes in them. By 1895, he was in business making shoes by hand for top runners; and before long his fledgling company, J.W. Foster and Sons developed an international clientele of distinguished athletes. In 1958, two of the founder's grandsons started a companion company that came to be known as Reebok, named for an African gazelle. In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok (R) shoes at an international trade show. He negotiated for the North American distribution license and introduced three running shoes in the U.S. that year. At $60, they were the most expensive running shoes on the market.

By 1981, Reebok's sales exceeded $1.5 million, but a dramatic move was planned for the next year. Reebok would introduce the first athletic shoe designed especially for women; a shoe for a hot new fitness exercise called aerobic dance. The shoe was called the FreestyleTM, and with it Reebok anticipated and encouraged three major trends that transformed the athletic footwear industry: the aerobic exercise movement, the influx of women into sports and exercise and the acceptance of well-designed athletic footwear by adults for street and casual wear. Explosive growth followed, which Reebok fuel led with product extensions -- new categories in which it also became a leader.

The Freestyle is now a 'Classic' and is the best selling athletic shoe of all In 1979, Paul Fireman, a partner in an outdoor sporting goods distributorship, spotted Reebok (R) shoes at an international trade show. The Freestyle is now a 'Classic' and is the best selling athletic shoe of all. Reebok sells active sports apparel covering bags and items. Reebok also sell sport balls, watches, eye wear, skates and other equipment's designed for sporting activities. I have chosen Reebok because they are potential market leaders and have a consumer demand My mini disk will have the following features: Built in Am / Fm tuner G- Protection Jog Proof Disc memory Displayable mode Long lasting battery life Digital recording LCD remote control Reebok logo Consumers will be attracted towards the logo, as this will be the first time Reebok would have produced an electrical good. Promotion Reebok advertise through all kinds of media.

They sponsor professional footballers and basketball players. This is a good way of reaching out to your audience because young people see the professionals, then they see the clothes or whatever they are promoting, and almost immediately, the viewer wants to purchase the product. I will promote the disk player by means of magazines such as Football extra, shoot, cricket weekly, swimmers monthly, I have decided to target sport magazines as the potential viewers will be interested in Rebook as it is a leisure related Communication plays a vital role in my promotion. The aim of it is to persuade customers to buy the product. Promotion should be Reassuring Informative Persuasive I am going to promote my product through television with professional players promoting my product. It meets the target market because of the sport and music.

I have based this accordingly to my results. I will distribute my MD player in Currys catalogues. My product will be similar to the diagram below. Price: lb 152.99 Features: Displayable mode Lasting battery life Digital recording LCD remote controlLooksAs my target, market is the age range of 18-26 year olds and the surveys I have carried out I have decided to go with the Reebok logo displayed on my mini disc player. It will consist of the colours red, white and blue.

I believe there is a definite niche in the market for this kind of product as this is the first MD player designed by Reebok so there will be expectations to be met. Price Pricing strategy's can play a large part in the business as through this the company can create desirability about its products or its self. This can also bring new business to the company. For a reason there are many different pricing strategies which all should be taken in to consideration". Market led pricing", this where the company sets its prices in a hope to make a profit but is still low enough to create sufficient demand for the products...

"One off pricing", is where each product is at a different price this is usually use where job production is in process, not relevant to this company... "Cost-plus pricing", is where the price of the products is calculated by working out the cost of the services and then either adding a flat rate amount or a percentage increase. As the company has set up in an area in which there is computation form similar shops an larger retailers, the only option is to use market led pricing this is because the market is already established and so a radical new scheme would end in a loss of profit. What also adds to this is the fact that the products already exist in other shops as they are branded clothes made by manufactures so the pricing has to conform with other shops as the customers would go and purchase their goods at another out let. My main competitors will be Sony, Panasonic and Sharp. I would have to consider their products and compare them with mine.

I have done research to show this: Sony CDX M 610 lb 329.99 Power output 4 x 27 watt RMS. 2 prs-outs FM / MW/LW digital tuner 30 per-sets. RDS / Eon Cd player display text if used with text encoded CDs Bass / treble /D-bass Revolving active black panel dot matrix display Display dimmer Security Code IDO connected 24 hour clock IR remote controlSonyCDX CA 650 lb 199.99 Power output 4 x 26 watt RMS. RDS / Eon Cd player display text if used with text encoded CDs Bass / treble control EQ 7-7 band sound equalizer Removable faceplate Telephone attenuate IDO connected 24 hour clockSonyMDX CA 580 lb 199.99 Power output 4 x 26 watt RMS. RDS / Eon Mini Disc with 10 second shock resistant memory, repeat, shuffle play Mini Discs title scroll if used with text encoded Mini Disc Bass / treble control Drop down removable faceplate Telephone attenuate IDO connected 24-hour clockKenwoodKDC 509 DRl b 229.99 Power output 4 x 32 watt RMS. 2 prs-outs FM / MW/LW digital tuner 24 per-sets.

RDS / Eon CD with repeat random, scan Dual CD changer control option 6 pre set tone control bass / treble D-mask removable / reversible faceplate CDR / RW playback 2 way telephone mute IDO connected Kenwood Radio / cassette + CD auto changer lb 259.99 Power output 4 x 26 watt RMS. 1 pre-out FM / MW/LW digital tuner 24 per-sets. RDS / Eon 6 Disc Auto changer Bass / Treble/Tone Removable faceplate CDR / RW playback 2 way telephone mute IDO connect erAs Sony are the market leaders in MD players they are most likely to sell more products then there nearest competitors. Therefore Reebok will have to try and compete with these two companies there are a number of ways this could happen The factor of Place is not on such a large scale, the outlet is the shop and although products may be offered by post most of the transactions will take place at the shop. However, the customers must in a position in which to offer its services well and easily access the shop. For example, there must be plenty of car parking near by so that the customers can easily access the shop, it should be available to as many customers as possible.

The different sorts of sales promotion are I could come up with, if I feel my product is not doing well are: 1. Buy one get one free - this can also be buy one and get something else free. 2. Discounts. - where products are reduced in an effort to sell more. 3. Competitions - used to get people interested in he shop and products.

4. Free gifts - another way to pursued people to buy products. 5. Product trials - allows people to try the products before they buy. 6.

Point of sale displays - special displays to promote the products and gain customer awareness. Here is a detailed map of where I am going to place my MD for sale. Sony Centre: Argos: Dixon:.