Ipod nano, pricing strategy

436 mots 2 pages
International Marketing : Ipod Nano

1) Which factors impact Ipod Nano pricing ?

Many factors can impact Ipod Nano price:
• currency fluctuations : Ipod is an american group, that means that the money of reference for their products is the dollar. the price of the Nano is more expensive in Europe because the euro is becoming stronger against the dollar, which means that the price is below in the U.S. than in countries of the eurozone, for example

• Government controls : Apple Nano has government controls and regulations in France. Indeed, MP3 players are confronted to a tax for private copy. This tax increases the Nano’s price. The VAT has also an influence on the Ipod Nano price. Indeed, the VAT in very high in scandinavian countries, around 25%. On the contrary in Japan, the VAT rate is approximately 10%, that's why the price is lower.

• Competitive behaviour : Ipod Nano is the leader in the MP3 player, it means they do not need to lower their prices, competitors are generally well below the price of Nano.

• Strategy : Ipod Nano ranges are quite diverse, it is found in several storage sizes and various colors. there is a concrete example of the law of supply and demand: it is not uncommon for a buyer to be present in a distribution warehouse in France to choose a specific model and being directed to another model, as the desired model is not available. time delivery desired model can sometimes be more than a month. The demand exceeding supply, Apple can afford to set prices relatively high.

• Global sourcing Apple buys those components in China principally, which is a very low prices market. They produce the Ipod Nano in China too. the only factor that can influence the price in relation to the distance it is carried to the delivery point.

• purcharsing power : Ipod Nano has a skimming strategy, the prices are quite high compared to competition, usually the buyers have a high purchasing

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