Swarovski
A crystal and jewelry maker.
Where Swarovski comes up1 book
- 1Surveyed over 20 countries2013 survey of what buyers valued
- 2Found segments paying moreFive to six times more for cuts
- 3Set five price tiersTiers spanned 650 percent
- 4Stopped steep discountingMargins rose
From Ramanujam and Tacke's Simon-Kucher book (secondhand)
What was said about Swarovski
Swarovski priced to segments that valued sophisticated cuts, not to one average buyer. A 2013 survey in over 20 countries found some segments would pay five to six times more for sophisticated cuts. Swarovski then set five tiers spanning 650 percent.
It also stopped steep discounting, and margins rose. The case is told in a book by Madhavan Ramanujam and Georg Tacke about Simon-Kucher, so it is a secondhand account.
Monetizing Innovation: How Smart Companies Design the Product Around the Price
Its 2013 survey in over 20 countries found some segments would pay five to six times more for sophisticated cuts. It set five tiers spanning 650 percent, stopped steep discounting and saw margins rise.
Swarovski priced to segments that valued sophisticated cuts, not to one average buyer. A 2013 survey in over 20 countries found some segments would pay five to six times more for sophisticated cuts. Swarovski then set five tiers spanning 650 percent.
It also stopped steep discounting, and margins rose. The case is told in a book by Madhavan Ramanujam and Georg Tacke about Simon-Kucher, so it is a secondhand account.
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