The product is wrist watch – one with simple utilitarian job to be done. We sure all need some version of it and there are many versions available at our disposal. And there are non utilitarian jobs – hedonistic and even conspicuous consumption. Not all segments have these second level jobs but some do.
We are willing to pay a price based on the job we hire the product for. It is under brand’s control to choose the segment with certain high paying jobs and positioning the product with a price to go with it.
Let us look at the positioning of luxury watch makers to see what job they want their customers to hire their product for.
Breitling – Instruments for Professionals
Nothing about time here and the other instrument often associated with the watch? Airplane! And a price to match those private jets.
Patek Philippe – You never really own a Patek. You merely look after it for the next generation.
And you don’t buy it to tell time either. It is a investment for generation and hence the price.
Rolex – The Crown of Achievement
No mincing words about conspicuous consumption. Nor are they giving any utilitarian rationalization reasons. It is about targeting those with achievement to flaunt.
Sure these watches tell time and there are billions of customers who have that job. But there are many other candidates for that job and no one is willing to pay much for that job. Hence these brands chose the small segment with the second level jobs and have the wherewithal to pay for the job.
That is some positioning, telling select segment of customers exactly what job the product is applying for and setting a price based on that.