We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Net-a-Porter - Case Study Example

Comments (0)
Summary
Net-a-Porter Contents Introduction 3 What are the considerations that need to underpin decisions on the pricing strategy? 3 What are the advantages and disadvantages in establishing theoutnet.com as a discounted distribution channel? 6 Net-a-Porter launched a new venture - Mr Porter – offering fashion clothing for men…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Net-a-Porter

Download file to see previous pages... Since its launch in the year 2000, the company Net-A-Porter have been able to successfully establish itself as a premium luxury brand selling online designer fashion clothing for women. Net-A-Porter with its innovation strategy along with highly developed offering have been able to achieve huge success and had also won award for the best shop at “British Fashion Week” and the best e-retailer in “UK Fashion Export Awards.” The online fashion retailer sells more than 150 top luxury fashionable brands and offers express delivery throughout the globe and delivery the items on the same day in Manhattan and London (Net-A-Porter, “About Us”). The paper aims to discuss the case study on Net-A-Porter and answer to some of its question in relation to the brand and its strategy. Therefore below are the answers to the questions asked for in the case study “Net-a-Porter.” What are the considerations that need to underpin decisions on the pricing strategy? Pricing is one of the 4ps that a marketer needs to take into consideration before deciding on the strategy. It is an important aspect of marketing and also for branding strategy as it tends to be one of the first indicators of brand positioning for the consumers and also regarded as the most flexible Ps. It has been seen that prestige and luxury brands adopts the premium pricing strategy in order to emphasise the strength of the brand, high quality associated with luxury goods which also helps them to differentiate from mass fashion brands. The target audience for the luxury brand are comparatively less price sensitive and actually expects that luxury products to be highly priced rather than to be priced economically. Pricing tends to form branding process as the consumer tends to judge the position of the respective brand and its value through the adopted pricing strategy. In addition, luxury brands are those brands whose ratio of functionality towards price is low and the ratio towards situational utility and intangibility with respect to price seems to be high. This indicates that price of premium products is relatively higher as compared to the price of products having similar kind of tangible features but with high intangible quality along with associated benefits of premium products teds to justify the high price (Okonkwo 140). In addition to the above consideration while deciding on the pricing strategy, Net-A-Porter is an online luxury brand and thus online pricing premium strategy is also a consideration for the brand. The premium pricing strategy involves setting a higher price as compared to similar products. The premium pricing strategy also referred to as skimming pricing strategy as it is an attempt to “skim the cream” from the market. Based on the above definition Net-A-Porter premium pricing strategy will help it to maximise profit in areas where the customers are willing to pay more for the desired product. In the process of adopting the premium pricing strategy, price quality signaling is also an important and essential factor. With the premium pricing strategy Net-A-Porter can use to improve its brand identity in the specific given market. The higher price the brand demands signifies highest quality product and thus it will be convenient for the brand to charge high price. The next consideration is the level of competition among the brands in the same product segment. Premium pricing is a short term strategy; the longer ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Income Statement Case Study
The principle of revenue recognition requires that an entity recognizes revenue only when there has been the occurrence of a critical condition and that the identified amount of revenue can be measured (Porter and Norton, 2009). The principle of revenue recognition is significant in ensuring that business entities report their revenue amounts in the appropriate manner.
3 Pages(750 words)Case Study
Talent Management: The Case Study of Porter Novelli
The process was led by the firm’s CEO and the new vision entailed a new approach in planning of the client’s accounts, a customer focused structure and fostering operating interdependences among its offices distributed globally. The three initiatives were considered as strategies that would enhance the ability of the company to attract the complex and dispersed customers and support the marketing strategy of the firm (Waldron, 2010).
5 Pages(1250 words)Case Study
Cash Flow
Panera Bread Company and its subsidiaries are popularly referred to as “Panera” or “Panera Bread”. The company is a national bakery cafe that owns over 1450 companies and also operates with franchises in bakery. The company has dominant presence in Columbia and Ontario, Canada where it operates in 40 states.
3 Pages(750 words)Case Study
Strategic Management: Deutsche Post World Net (DPWN)
Having experienced a successful turn around from a loss making state owned organization to a privatization oriented profit generating enterprise on its home grounds in Germany, DPWN has the experience and resource to make path breaking forays on its home ground and the rest of Europe.
15 Pages(3750 words)Case Study
Strategic growth of ethical fashion in the luxury market
With people becoming more conscious of the environment and the human factor the industry has become more adaptable to the change. In this paper we will look into the entire evolution of the fashion industry. The little flame of the idea of ethical issues implanted in the fashion industry, started in early 80s, by Katharine Hamnett; a British designer who has first introduced the idea of ethical issues into fashion with the launch of her first t-shirts with printed slogans, which are sold with a percentage going to charity.
25 Pages(6250 words)Case Study
Mini Case
For instance, in the past three years, it has pursued operational excellence strategies in customer service, increased the speed of delivery, order accuracy and has in turn reduced the employee turnover. This has
3 Pages(750 words)Case Study
A Full Strategic Appraisal of NETFLIX
Netflix provides a full scope of entertainment for its users as the subscribers have the option of pausing and resuming the programs as and when required without any interruption by commercials (Netflix Inc., “Overview”). The report will outline a strategic
14 Pages(3500 words)Case Study
Online shopping players
The products need to have the right features in that it not only looks good but also works well. The product has to have the right price and consumers have to buy in large numbers for any profits to be realized. Most importantly, the products must be in the right
2 Pages(500 words)Case Study
SWOT
Vionnet is in the segment of women who desire custom fit clothes having a high purchasing power requiring an exceptional design with a contemporary feel. Vionnet targets young as well as middle-aged women in the upper
1 Pages(250 words)Case Study
Let us find you another Case Study on topic Net-a-Porter for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us