Pricing in the marketing mix of Adidas.
Adidas, because of its style, design and promotions uses skimming prices as well as competitive pricing. For run of the mill products, Adidas uses competitive pricing keeping in mind competitors like Nike, Reebok and Puma. But for products which are newly introduced in the market and are uniquely designed, Adidas uses skimming price.
Apparel’s of Adidas constantly use skimming price and are higher priced due to brand equity of Adidas in the apparel’s market. The target customer for Adidas is the upper middle class as well as high end customers. Adidas never uses penetrative pricing because that will affect the brand equity of Adidas. In fact, the higher price point helps in the price quality approach and psychologically, customers think that a higher price will mean better quality as well. Thus, Adidas rarely drops its prices.