Levi Price Recommendation

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Levi Pricing Recommendation – Eva Fong When Levi launched their personal jeans, they should be aware of the price set. Price will give consumer first impression about their new product. Higher price product may give customer the impression that the product is premium, but at the same time it may drive away price sensitive customers. Lower price product will give vice versa result. Making profit should come first when considering the setting of price, Levi should set the personal jeans price above their cost of making the jeans, including all raw material, delivery, labor, advertising, kiosk, training cost etc. As the cost of making a personal pair jeans is higher than their traditional products, so the price set should be higher than the traditional jeans. Cost-based pricing strategy is important for every company to survive. Secondly, Levi has to do market research and understand their target customers before setting the price. Value-based pricing strategy is important for setting price. Levi needs to know how customer think of and value “Personal Pair Jeans”, as this is a new product line for Levi. Levi can undergo market testing and observe the market response. For example, Levi can invite some Levi customers, dividing into several groups for testing, For example: loyal customer, occasional customers, regular switching customers. Then Levi can try selling the personal pair jeans to them and test their response. Through testing different segments of customers, Levi may get more accurate prediction on the price range their target customers can accept. Besides, Levi can also do attribute testing to see what features customers will need and what they value most for a pair jeans. By understand what customers value most and putting them in their product, this can help Levi satisfy their customer more, thus customer will be more willing to spend more

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