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Faliboga Tiberiu

Ilinca Andrei
Marketing 939

Cath Kidston case study


Q1: Does Cath Kidstons pricing strategy truly
differentiate it from the competition?
A:
I do believe the companys pricing strategy has manages to differentiate itself
from the competition. The main reason is the quality of its products, the company
chose to a quality approach; even though customers pay considerably more, they
get what they paid for as Cath Kidston main advantage is its unique product
identity, an aspect which competitors find hard to achieve.

Q2: Has Cath Kidston executed value-based pricing, costbased pricing, or competition-based pricing? Explain
A:
The company clearly uses a value-based pricing. As most of its products appear
basic, they are not, and can even be defined as part of a niche market. Personality
is the key element in their pricing strategy using customers emotions to justify the
high prices, the same way a fashion brand works.

Q3: Could Cath Kidston have been successful as a designfocused product marketer had it employed a low-price
strategy? Explain.
A:
I believe the company would not have been as successful if a low-price strategy
would be implemented. The main reason for that is target demographics, the
company has certain expectations from their costumers and the relationship works
vice-versa. As the targeted costumers expect a certain quality and appeal from their
products, low prices would not help sales at all. As I said before Cath Kidston works
the same way as a fashion brand, we, as observers expect rather high prices from

Faliboga Tiberiu
Ilinca Andrei
Marketing 939
quality products which inspire individuality, thus, cheap products would most likely
ruin the companys image.

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