In cases where the brand has launched a 

new product in the market, Reebok first

follows the market strategy of skimming policy. Under this, they set high prices
for their superior products. As the consumers associate this brand with quality,
the value-added pricing system helps them to make fast revenues. The company
cashes on the loyalty of its consumer base to communicate that quality is the
reason for higher prices. It then starts slowly dropping the prices under the name
of various schemes and discounts.

In the year 2006, To tackle the rising popularity of Puma and Nike, Reebok
came up with an unusual strategy of destroyer pricing policy . They deliberately
set very low prices that the other companies were unable to match. This led them
to higher volume of sales and capturing of a large market share. The organization
purposefully established extremely cheap pricing that other businesses were
unable to match. As a result, they were able to increase their sales volume and
gain a significant market share.