Implications of Pricing Decisions in the Luxury Sector: The Mulberry Case

Implications of Pricing Decisions in the Luxury Sector: The Mulberry Case

  • Case
  • Teaching Notes
Abstract

This case study focuses on Somerset-based luxury fashion brand Mulberry. The case study describes how Mulberry alienated its middle-class British customer base by increasing the prices of its products by almost 50% to make them attractive to wealthy Asian and Middle Eastern shoppers. The case also discusses how Mulberry has succesfully attempted to reposition its brand as affordable luxury. The case study is particularly pertinent for companies operating in the luxury market as it helps explain the risks inherent in pricing strategies adopted to enter new target segments. However, several open questions still remain, such as when and why should affordable luxury brands consider positioning themselves as prestigious luxury brands? Is this strategy always beneficial?

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