mkt402 week 1 discussion 2 AND response

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Week 1 Discussion 2

COLLAPSE

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” Strategic Pricing” Please respond to the following:

  • Select a company that you are familiar with or interested in. Use the Internet and/or Strayer Library to find that company’s pricing strategy.
    • Briefly summarize the pricing strategy of the company you researched.

    AND RESPOND TO THIS POST:

  • Henry
    RE: Week 1 Discussion 2
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    Hello All,The brand Gucci uses a premium pricing strategy. Although they do offer items made with quality metal and leather products, they also depend on a premium approach to maximize their profits. They have been able to successfully position the high value to their customers for years and are very profitable doing so. This is in contrast to other brands such as Michael Kors or Kate Spade, which also sell leather goods but at a more affordable price. In turn, there is no sort of competition between brands like these. Lower-end brand such as Kate Spade sell more units but make less of a profit from each sale. In 2018, Kate Spade profited $1 billion, where as Gucci profited almost $4 billion.Jasmine Henryhttps://www.retailtimes.co.uk/product-pricing-strategies-luxury-brands-revealed-new-report-contactlab-exane-bnp-paribas/

    https://www.themds.com/companies/gucci-keeps-boosting-kering-profits-double-in-2018.html

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