Piaget Altiplano Watches

2531 Words Jul 13th, 2018 11 Pages
1.0. Situation Analysis/Current Marketing Mix

1.1 Current Product
The characteristics of Piaget Altiplano are the thinness, generously - sized dials, automatic and infinitely small. The benefits of Piaget Altiplano are its value and satisfying the female consumer esteem needs. According to Maslow’s hierarchy of needs, esteem is defined as the individual’s need to be recognized and respected by others such as by owning a prestigious watch like a Piaget Altiplano. This may contribute to satisfying the female’s esteem needs (Elliot, Rundle-Thiele, and Waller 2012, 129). There are extra services that the consumers get from purchasing Piaget Altiplano such as customer service, warranty, guarantee, care and maintenance. Piaget Altiplano
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This is known as demand inelastic. Inelastic demand defined as an increase or decrease in price will not significantly affect demand (Hubbard et al. 2013, 93). The business costs are important when they determine the price for Piaget Altiplano. The business costs are variable and fixed cost. Variable cost is cost that vary directly with changes in the volume of production or sales; for example, packaging (Elliot, Rundle-Thiele, and Waller 2012, 269). Fixed cost is costs that do not vary with changes in the volume of production or sales; office rent payment (Elliot, Rundle-Thiele, and Waller 2012, 268). The current price is about the same as competitors’ price, because Piaget Altiplano does not compete with the price but with the design. The competitors identified are Rolex, Cartier and Audemars Piguet. In summary, the fellow competitors are adopting price skimming. Price skimming defined as charging the highest price that customers who most desire the product are willing to pay, and then lowering the price to bring in larger numbers of buyers (Elliot, Rundle-Thiele, and Waller 2012, 284). Piaget Altiplano uses a prestige pricing method. The consumer cannot objectively evaluate the quality of Piaget Altiplano. The consumer also wanted to feel satisfaction after owning Piaget Altiplano. Some of the consumers believe that when the price is higher, the products tend to have a better quality. However, some seek for a lower price for greater value. Therefore the

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