Price

PRODUCT

The Acne Studios ‘Mock black jacket’ is a biker style jacket that retails at £1200. The actual product is a slim fitting leather jacket with an asymmetrical exposed zip offered in European sizes 32 to 42. The outer part of the jacket is crafted from 100% lamb leather, with the inside lining made from 52% viscose and 48% cotton with tonal stitching. The high-quality nature of the materials in the jacket is emphasised by the fact that it requires specialist leather cleaning. In relation to the actual product (Levitt, 1980), the jacket features distinct design features of the traditional asymmetrical zip fastening with three functioning pockets as well as a buckled belt. These features add to the functionality of the garment as well as the aesthetics as it allows the wearer to adjust the garment to suit their body shape and achieve a more tailored affect.

In terms of the total product offered alongside the jacket, Acne Studios provides a dust bag, which is considered to be part of the product. Additionally, complimentary express delivery and shipping is offered to all customers (Acne Studios, 2020). Acne Studios also offers a full refund or exchange if the unwanted item is shipped/postmarked within the 14 days of being delivered to the customers home. However, due to the luxury status of the brand, Acne Studios only offer a full refund if the item is “returned in its original condition with original labels and packaging” (Acne Studios, 2020). In addition to the tangible product, Acne Studios also offers intangible associations in relation to assistance on size guides and other product queries through a direct phone line, live chat or by email as well as a 12-month warranty on items. These intangible offerings are evidently linked to Levitt’s total product concept, whereby the augmented product offerings elevate the product and give it a competitive advantage (Levitt, 1980)(appendix F).

PRICE

The Acne Studios ‘Mock black jacket’ retails at £1200, meaning it fits within the luxury price bracket. The brand, like other luxury retailers, use a customer-based pricing strategy as it is recognised to be the most “effective approach to pricing for companies wishing to achieve profitability and sustained success” (Hinterhuber A, 2008). This means the price points is set in accordance with what the customer is willing to pay. Due to the high-quality materials used in the jacket, alongside the luxury status of Acne Studios, the customer is willing to pay more for the garment. In terms of the price architecture of Acne Studios, a wide range of items is offered from those considered to be more affordable to higher-end garments. The price begins with the lowest, entry level pricing of a beanie for at £100 to exit level of £2000 for a Landscape-painting trench coat. Evidently, Acne Studios has a larger price architecture than Topshop. Unlike other luxury retailers, Acne Studios does utilise sales promotion strategies that dramatically reduce the prices of garments to move older stock. One such example of this is Acne Studios being sold on the website The Outnet, where the majority of items have 40-55% off the original selling price. This is unusual for luxury retailers as most do not use sales promotions as the price reduction can lead to customers feeling “cheated if a prestige brand is offered at well below the normal high price” (Jackson T and Shaw D, 2009, p133). However, Acne Studios fan base is “diverse and inclusive” therefore the pricing reflects this (Tribute To, 2018). ).