Pricing Strategy Payless Shoesource: Paying Less for Fashion
Case Study 3
Pricing Strategy Payless Shoesource: Paying less for fashion
Table of Contents
BACKGROUND…………………………………………………... 3
OBJECTIVE……………………………………………………….. 3
PROCEDURES……………………………………………………. 4
SUMMARY OF FINDINGS………………………………………. 4
CASE STUDY QUESTION: 1…………………………………….. 4
CASE STUDY QUESTION: 2 …………………………………….. 5
CASE STUDY QUESTION: 3……………………………………... 6
CASE STUDY QUESTION: 4 …………………………………….. 6
CONCLUSIONS………...........…………………………………….. 7
BIBLIOGRAPHY…………………………………………………... 8
BACKGROUND When we study on the Payless Shoesource case, we might wonder how this low-price corporation could ever place stores on New York’s Fifth Avenue, these kind of high-end avenues of luxury retailing. However, after reading the whole context in the book and doing the rearch on Payless, the clue seems pretty clear that by using the unique product mix pricing strategies, Payless successfully launched its brand into different segments of customers and went through the great recession when the economic was bad. Transforming from only selling the low-price shoes boringly to the masses in the past twenty years, Payless positioned itself to another path combining with the concept “Collective Brands”, which is implemented by hiring the top-end designers from other luxury brands to work for Payless. In attempt to realize the “democratize fashion”, which is to make truly fashionable products more accessible by applying its cost-effective model to a product portfolio infused with well-known brand labels and some of the hottest hight-end designers in the business, Payless not only get back a lot of old customers since the impact of economic recession, but also aim to attract more new customers as well. As a result, it did. Using the four major components to realize the strategic plan, which including
Pricing Strategy Payless Shoesource: Paying less for fashion
Table of Contents
BACKGROUND…………………………………………………... 3
OBJECTIVE……………………………………………………….. 3
PROCEDURES……………………………………………………. 4
SUMMARY OF FINDINGS………………………………………. 4
CASE STUDY QUESTION: 1…………………………………….. 4
CASE STUDY QUESTION: 2 …………………………………….. 5
CASE STUDY QUESTION: 3……………………………………... 6
CASE STUDY QUESTION: 4 …………………………………….. 6
CONCLUSIONS………...........…………………………………….. 7
BIBLIOGRAPHY…………………………………………………... 8
BACKGROUND When we study on the Payless Shoesource case, we might wonder how this low-price corporation could ever place stores on New York’s Fifth Avenue, these kind of high-end avenues of luxury retailing. However, after reading the whole context in the book and doing the rearch on Payless, the clue seems pretty clear that by using the unique product mix pricing strategies, Payless successfully launched its brand into different segments of customers and went through the great recession when the economic was bad. Transforming from only selling the low-price shoes boringly to the masses in the past twenty years, Payless positioned itself to another path combining with the concept “Collective Brands”, which is implemented by hiring the top-end designers from other luxury brands to work for Payless. In attempt to realize the “democratize fashion”, which is to make truly fashionable products more accessible by applying its cost-effective model to a product portfolio infused with well-known brand labels and some of the hottest hight-end designers in the business, Payless not only get back a lot of old customers since the impact of economic recession, but also aim to attract more new customers as well. As a result, it did. Using the four major components to realize the strategic plan, which including
Bibliography: Kotler, Philip & Armstrong, Gary. “Principle of Marketing” 14th edition, Copyright © 2012, 2010, 2008, and 2006 by Pearson Education, Inc. publishing as Prentice Hall, One Lake Street, Upper Saddle River, New Jersey 07458. Collective Brands. Inc. “Collective Brands Hosts Annual Institutional Investor Conference, Provides progress report on new business model and key strategies for Growth.” http://www.docstoc.com/docs/72164226/Is-Payless-Uses-a-by-Product-Pricing-Strategy-Collective-Brands-Hosts-Annual-Institutional-Investor-Conference-Provides Oct. 07, 2009