Heirship’s chief competitor is a celebrated company, established in 1979. This company, Dakine, is similar to Heirship but offers more than casual attire. Dakine tenders products for surfing, skating, skiing, windsurfing, kites, and bikes. Dakine sponsors many professional surfers, skaters, and snowboarders. Permitting, Heirship might secure popularity by promoting events or sponsoring professional athletes. Organizations sponsor professionals and events to gain recognition and promote products and services.
Pricing products, especially during the product’s introductory phase (cycle) is exceptionally important. Heirship will spoor competitor pricing of similar goods, including those using marketing’s prestige pricing strategy like Coach. The first step will be to develop pricing objectives. Among the objectives, increase unit sales. Thereafter, Heirship must estimate product demands. Upon my research and interaction, I have discovered that many people are willing to dress in a brand as long as is trendy, and looks and feels good. Even though many clothing brands occupy the market, the demand for “the new” is omnipresent. Heirship plans to tender quality products from resources demanding low to moderate cash outflow. A decision whether to outsource production or operate independently must be rendered. In the early stages, I believe the best method will be to hire a small group of professionals to assist in operations. As customer demand blooms, I might consider outsourcing production or seek co-branding opportunities. Another phase in price planning is to evaluate the pricing environment.