VALUE BASED PRICING FOR SWIFTER APPAREL PRODUCT

• Main Author: Marsya
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/43509
• Institution: Institut Teknologi Bandung

Swifter is one of the small businesses that sell woman’s clothing products in Indonesia. The products offered by Swifter are made of thick and high quality materials. The main raw material used for more than 80% of Swifter product is fleece fabric. This type of fabric was chosen because it has the character desired by Swifetr which is durable, made from natural fibers, and thick. Currently, fleece fabric prices have increased by 27% from the initial price at all Swifter suppliers. As the main raw material, this increasing price affects Swifter’s production cost significantly. This increase in production costs has an impact on the gross profit gained by Swifter. Swifter owners want to increase prices on their product, especially for those that have fleece fabric as theiw raw material. However, Swfter owners are still worried that there will be significant decrease un sales if there is an increase i prices. Therefore, the problem formulation on this research is to formulate prices based on customer’s perceived value and customer’s willingness to pay. The research method used is the customer value map and price sensitivity meter. The customer value map provides information about customer’s perceived value receives and the position of Swifter against it main competitors, namely Vanilla Hijab dan May Outfit. Customer’s perceived value is measured using product performance, service performance, and company reputation performance. Price sensitivity meter are used to get price range of hypotethical customer’s willingness to pay. By combining the two methos, a price recommendation of Rp.134.000,00-Rp.164.000,00 is obtained for suits products, and Rp.165.000,00-Rp.244.000,00 for dress products.