1) Does Cath Kidston s pricing strategy truly differentiate it from the competition? 2. Has Cath Kidston executed value-based pricing, cost-based pricing, or competition-based pricing? Explain. 3. Could Cath Kidston have been successful as a design-focused product marketer had it employed a low-price strategy? Explain. 4. Is Cath Kidston s pricing strategy sustainable? Explain. This case study examines the pricing strategy of Cath Kidston, one UK-based company that sells furnishings, home and personal accessories as well as clothes, operating mainly in the UK, Europe and Asia regions. How much are you willing to pay for a key ring? The market price charges just a bit more than $1. But would you pay $2 for a comparable product? How about $7? A low-price strategy is often used by companies if their products are not well differentiated. Although a low-price strategy might seem attractive, especially in an economic downturn, some companies are focusing on creating value for customers and adopting customer-valueadded pricing strategy. Cath Kidston Ltd is one UK-based company that understands that sometimes it pays to charge more. Cath Kidston s key rings sells for roughly $7 to $9.50, whereas the market price charges less than a third of that. To understand how Cath Kidston has succeeded with this pricing strategy, let s look at what makes the brand so special. The cheery colors and fun patterns Cath Kidston created allows it not to focus on price-sensitive market segm

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