Price- Nike

The Marketing Mix-Price

Setting a price point is one of the biggest decisions a business has because, ultimately, customers react to this variable more the any other. Businesses need to be aware of their target market, cost of goods, competitors pricing as well as many other things when deciding on price point. A large majority of companies, mainly manufacturers, will typically calculate their costs and then add a standard mark-up to achieve a specific ROI (MacLeod, 2015).

Nike-Price

Being able to charge higher prices for its products is one of the key differentiators for NIKE. Over the past few years, the company has clocked in selling price increases in most markets and categories as it pushes the boundaries of brand premiums ever further (Soni, 2014).

Selling Prices

The chart below shows Nike selling prices and unit sales increases for footwear and apparel from 2013-2015.

Pricing Strategy

As of February 2015, Nike uses a premium pricing strategy in which it continues to raise its prices despite other companies in the market lowering theirs, and it is considered a customer value-driven model. This strong brand is able to use premium price points because customers see its products as dominant in the market. Therefore, customers are willing to pay more for Nike's products because of loyalty to the brand (MacLeod, 2015).

Selling Price

Martin (2014) defines the selling price charged for products and services as important because it is an income source and unlike the other elements of the marketing mix it is not a cost. It determines how much profit a company makes. The challenge is to set the right price for the product and ensure that the price strategy does not lose the company customers.

Footwear Selling Price

Nike’s the global market leader in athletic footwear. Footwear is also Nike’s largest product category, accounting for 58.4% of the company’s revenue (Anthony, 2016).

Nikes strategy has looked at innovative products to drive demand. Nike has several technologies targeting footwear for different sports, including running and basketball (its top two categories). Major technologies include Nike Free, Max Air, Lunar, Zoom Air, and Flyknit.

Nike’s also targeting a push towards premiumization. It’s looking at selling more higher-priced models and marquee, limited-edition brands. This approach creates consumer demand, resulting in both higher unit sales and higher product prices (Barrie, 2014).

The image below displays the most valuable shoes with Nike being number one.

Nikes self lacing trainers (Image below) are their highest price shoe retailing for around $720.

Apparel Selling Price

According to Forbes (2014) apparel is Nike’s second-largest product category, accounting for 29.4% of the company’s revenue. Nike has less pricing power in apparel than it does in footwear. Although Nike is continuing to extend its innovative approach to apparel design, it doesn’t enjoy the dominance in this segment that it does in footwear.


I think that as a global successful brand Nike can basically sell at whatever price they want within reason as people are willing to pay for the brand. After having a look on their online store it is apparent that their prices vary. The average price for trainers is around £60. Although they do have lower prices from around £40 and they can range right up to around £150. It all depends on the individual and what they would be willing to pay. As Nike is a well known brand a lot of people may feel wearing the brand makes them look 'cool' and 'trendy' no matter what the price tag.