BMRK231 Marketing

Introduction

In this report, the major focus is to design the pricing strategy for the sports clothing industry with the best and effective marketing approach regarding the business and brands that are already established in Canadian market in Vancouver (Nieborg & Poell, 2018). Furthermore, there are so many clothing brands in Canada that offers sportswear clothes for the sports, yoga and workout purpose such as RYU, Karma Athletics, Public Myth, Free Label, Lululemon, etc. The discussion is based on the number of pricing strategy that clothing industry of Canada has been using and what the other brands should use to move towards the path of success and growth.

Pricing Strategies used by Sports Clothing Industry of Canada

There are different types of pricing strategies that are used by the clothing industry of Canada, some of them are described below in a detailed manner.

Budget Pricing Strategy

When shopping for clothing, many shoppers are looking for affordable pricing. This category may generate a substantial volume of sales at the cost of lesser profitability per unit. Concentrate on cost management with this pricing approach to constantly reduce costs over time. Using economy of scale, generated by the comparatively large volume of low-income pricing schemes, tiny earnings per unit may be reduced (Silva et.al., 2017).

Luxury Pricing Strategy

In the luxurious market level, the pricing power of customers generally correlates more strongly with the reputation of a company even than underlying quality of product and market worth (Style Democracy, 2021). The items of clothing are directly affected by self and social position in the thoughts of customers, thus customers in this sector frequently care more about the social image than their quality of materials. The key drivers of price structure are advertising and brand positioning.

Value Pricing Strategy

Anywhere between budget and premium sectors is the value - based pricing approach. The secret to value is to establish a cost-quality balance. Value buyers don't want to forego quality at very cheap rates, but they also don't want to spend more than clothing is worth just for a popular brand logo (Bolton & Shankar, 2018). In this area, people are opting for apparel and accessories that endure for years or longer so this makes the longevity of material a priority.

Pricing Promotion

Price promotion is a recognized way to make money and brand loyalty, particularly e-commerce, to the pricing strategy in this business. In combination with price discounts print and digital advertisements and bloggers may fast move more clothes off of the shelf. Examples of pricing marketing methods includes deals on Festive Season, countdown clocks, back-to-school deals, vacation and off-season events.

Therefore, after having a deep discussion about the number of pricing strategies that are used by the sports clothing industry of Canada, it can become clearer by the application of some example of sportswear clothing brands and companies of Canada, in Vancouver city (Nieborg et.al., 2020). In addition to it, there are still some other pricing strategies like penetration pricing strategy, Price skimming strategy, Premium pricing strategy, etc. that are used by many of the common companies that are also described below in a detailed manner.

1. Pricing Strategy used by RYU

Respect Your Universe is an athletic apparel brand that usually focuses on being beautifully tough. They have produced designs intentionally for training and recuperation in basic colours. They make a wonderful gym bag as well (Suppy.ca., 2021). They are using the penetration pricing strategy to gather the market coverage and by offering the services and products with low cost as compare to other competitors in the Canadian Market.

2. Pricing Strategy used Karma Athletics

As a hot yoga business, Karma Athletics developed to become one of the most genuine activity wear companies in Canada in 2011. This economical company is domestically created and is great for people who desire a budget and contemporary simplicity from their gym apparel. So, the company is using Budget pricing strategy while targeting their customers who are looking for the affordable pricing strategy. And this can be done by reducing cost over time.

3. Pricing Strategy used by Public Myth

This sports clothing business from Vancouver has been established since 2007 and is perfect for the yogi who likes to wear covered in audacious designs. Public Myth provides a broad range of vibrant designs, which may be used with other apparel for a multifunctional fitness centre. Recently, the company is using sales promotion tool as their marketing pricing approach in by way of launching a sale on their products and giving by 50% for the clearance of their stock and to increase their customer base by using such strategy (Style Democracy, 2021).

4. Pricing Strategy used by Free Label

Free Label is created in Toronto and Vancouver using custom-melted material just for this brand in Toronto. Is not only healthy, but also assures that Free Label excellence controls sustainability and smooth feel. Even the container stuff is 100% biodegradable, so people can feel really good about shopping at this firm (Nieborg et.al., 2020). Therefore, Free Label is using a premium pricing strategy for their products and services by charging a little bit high prices for offering compostable and organic packaging material with a smooth and soft stuff which is their best quality to attract the large number of customers towards themselves.

5. Pricing Strategy used by Lululemon

Lululemon is possibly the company that placed yoga pants on the map and wear post-class trousers. The company started in Vancouver is now globally renowned and has outlets all over the globe. In regard to its famed yoga pants, we have other kinds of active apparel from workout clothes, swimwear, sweatshirts, sports arms, and more available at Lululemon. As a result, after researching about the pricing strategy that is adopted by Lululemon, then it has been found that the company is using value pricing strategy by way of charging some extra money for the customer value but giving free shipping services to them as well (Heroux, 2017).

References

Bolton, R. N., & Shankar, V. (2018). Emerging retailer pricing trends and practices. In Handbook of research on retailing. Edward Elgar Publishing.

Da Silva, E. C., & Las Casas, A. L. (2017). Sports marketing plan: an alternative framework for sports club. International Journal of Marketing Studies, 9(4), 15-28.

Heroux, L. (2017). Comparative marketing strategies of fitness clubs in the United States and Canada. Economics World, 5(6), 529-538.

Nieborg, D. B., & Poell, T. (2018). The platformization of cultural production: Theorizing the contingent cultural commodity. New media & society, 20(11), 4275-4292.

Nieborg, D. B., Young, C. J., & Joseph, D. (2020). App imperialism: The political economy of the Canadian app store. Social Media+ Society, 6(2), 2056305120933293.

Style Democracy. (2021). 15 Canadian Workout Brands That Will Have You Sweating In Style. Style Democracy. Retrieved 27 October 2020, from https://www.styledemocracy.com/15-canadian-activewear.

Suppy.ca. (2021). 10 of Our Favourite Canadian Athletic Brands (That You Won't Find in a Department Store). Suppy.ca. Retrieved 8 January 2019, from https://suppy.ca/blogs/news/10-of-our-favourite-canadian-athletic-brands.

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