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  • Skimming

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    Sugandha Das
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    Reebok follows a market skimming pricing strategy where they set high initial prices for new products that are gradually lowered over time to limit demand and maximize profits. In 2006, facing competition from Puma and Nike, Reebok adopted a "destroyer pricing policy" setting prices so low that competitors could not match them, allowing Reebok to gain significant market share through higher sales volume. Reebok also uses special promotional pricing for certain events to attract customers.

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    Reebok follows a market skimming pricing strategy where they set high initial prices for new products that are gradually lowered over time to limit demand and maximize profits. In 2006, facing competition from Puma and Nike, Reebok adopted a "destroyer pricing policy" setting prices so low that competitors could not match them, allowing Reebok to gain significant market share through higher sales volume. Reebok also uses special promotional pricing for certain events to attract customers.

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    32 views1 page

    Skimming

    Uploaded by

    Sugandha Das
    Reebok follows a market skimming pricing strategy where they set high initial prices for new products that are gradually lowered over time to limit demand and maximize profits. In 2006, facing competition from Puma and Nike, Reebok adopted a "destroyer pricing policy" setting prices so low that competitors could not match them, allowing Reebok to gain significant market share through higher sales volume. Reebok also uses special promotional pricing for certain events to attract customers.

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    of 1

    Skimming - Reebok follows 

    market skimming strategy. Every time


    Reebok introduces a new technology to the market, they set a high
    price. Initially, reebok sets high prices for certain products before
    gradually lowering them over time. Reebok sets their prices high in
    order to limit demand, make a larger profit, and convince customers
    that the product is superior by conveying to them that there are
    enough customers for the product whenever it is introduced.

    Value added -

    Destroyer – In the Year 2006, Reebok developed a novel pricing


    strategy known as the destroyer pricing policy to compete with
    the growing popularity of Puma and Nike. They intentionally
    made prices so low that competitors in the market couldn't
    compete with them. This led them to sell more products and
    gained a large market share. The company deliberately
    established exceptionally low prices that no other companies
    could meet. As a result, they were able to grow their sales volume
    and take a large market share as a result.

    Special event – Reebok c

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