The company chosen here for the pricing strategy analysis is “Givenchy” which is a world renowned firm for perfumes and luxury goods. This company has maintained its market value and product quality since years and their pricing strategy is well balanced with their customer demand and need. The customers are the life of any business and their needs and demands are evaluated by studying the market segmentation and their value attribution. The Company’s pricing strategy is entirely formulated with the aim of delivering highly qualitative products which can be identified as the status symbol of wealthy people. The company has different product line as perfumes, clothes, jewellery and other fashion accessories. The company has a phenomenal product value among the world wide consumers and for the very same reason it does not compromise much on its pricing. This is because the price of the product is which conveys the consumers about the value and quality of the product.
Market segment is a sub set of consumer market, which caters to the profitability of a firm. A company creates value for a market segment by adding advantages and benefits to their products in accordance with customer tastes. Givenchy is an international firm which manufactures branded goods and luxury items and hence its customers are mainly aristocrats and wealthy population. Here the value for products is given by attributing quality and uniqueness to product they sell. ...Show more