The North Face Case Analysis

805 Words 4 Pages
A. How does your company’s prices compare to competitors who sell the same or similar products? Overall, does your company’s price seem high or low?

The North Face is one of the leading outdoor lifestyle companies. The brand prides itself for great fabrics and materials. The company delivers technically advanced products for climbers, snow sport athletes and explorers as well as high performance outdoor gear and apparel for those who like innovative, high quality products. The North Face targets affluent customers and people who don’t mind to spend more money to get a high quality product.
The North Face prices are higher than their competitors. The company guarantees not only quality but also durability and innovation. The brand’s commitment
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There are many people involved in the process of making The North Face product superior to their competitors. Their products go through many tests and innovation processes in the lab and are later tried out by professional athletes who go on expeditions around the world. Designers, researchers, engineers and fabric technician’s work together to ensure The North Face products can be used in the most severe weather conditions. The North Face uses value-added pricing as the brand puts a lot of effort to differentiate their products from their competitors (Pearson Learning Solution, 2014). Their constant work on innovation and development of new technologies to make their products better than any others lets The North Face put a higher price on their products. The strong brand image plays a big role in product pricing as well. It allows the brand to use skimming strategy. Those familiar with the brand will pay any price for their new products. The North Face sometimes uses decoy pricing. Once a customer is in the brand’s store trying to choose between two options, he/she selects a third option and ends up paying more than initially planned (D’Antonio, …show more content…
This strategy doesn’t use rounded numbers and customers may be more likely to buy the product. Some customers seem not to notice the .99 ending. Follow pricing sets the price similar to the one of the biggest competitors. The price can be changed according to the competitor’s actions. This strategy proves useful if the company that uses it doesn’t offer a product that has no “distinguishing features” (Paley, 2006).
The North Face tends to use psychological pricing strategy. Their jackets are often priced at $99 or $159 etc. Although their customers are willing to pay a higher price for their products, the not rounded prices lure them to buy even more. It helps The North Face boosts sales and it doesn’t harm the customer as The North face products always guarantee high quality.
The North Face is very proud of their company and brand and would select prestige pricing to help sell their products. Prestige pricing is part of the physiological pricing strategy used to create the perception of quality through high price (D’Antonio, 2012). For a company like The North Face to focus on a certain market using prestige pricing they can capture a small but free spending market segment. This strategy sets the price high and is based on quality to attract a certain class of people. Based on the quality of The North Face they are able to continue to keep their prices higher as

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