I think that Guess Inc uses price skimming . They charge the highest prices for their clothes/accessories to the people that can afford it and are into having the newest and most fashionable things. Then after a little bit, Guess lowers their prices to capture the rest of the market. However, the prices don't ever become real low because Guess' positioning is higher prices for high quality and trendier clothes/accessories.
I think two things that would be beneficial in regards to effective pricing would be Psychological Pricing and lowering prices for toddler clothing. Since Guess has high prices, psychological pricing would benefit them in my opinion. Since they are already high priced, someone may be more likely pay 49.99 rather than 50.00. Of course Guess has to maintain its high prices, but I think 46.50 is too expensive for infant clothing. Another thing that would be beneficial would be lower prices for infant clothing. At the link below, a infant outfit is 46.50. Just because an adult pays more for higher quality clothing and to looks well put together, doesn't mean that they are very likely to pay 46.50 for an outfit that their child may out grow in a month or so. http://shop.nordstrom.com/SR?KeyWord=guess&searchorigin=KeywordSearch


Guess has selective distribution. They sell their merchandise through their own Guess outlets, but also in retail and department stores like Lord and Taylor, Nordstrom, and Macy's. The link below shows Guess merchandise in Macy's and Lord and Taylor. When thinking about where they are going to sell their clothing/accessories, they have to keep in mind the positioning of the potential department store and the quality of products they sell. For example, Guess wouldn't choose Wal-mart as their distributor since Wal-mart doesn't sell expensive clothing and they are focused on being very affordable. The last link on the page goes into depth with the history of Guess and the steps taken to get the company where it is now. It touches on distribution as well. "At the end of 2002, Guess operated a total of 249 stores in the United States and Canada, consisting of 171 full-price retail stores, 11 kids stores and 67 factory outlet stores."

http://www1.macys.com/search/index.ognc?SearchTarget=*&Keyword=guess&KEYWORD_GO_BUTTON.x=0&KEYWORD_GO_BUTTON.y=0&KEYWORD_GO_BUTTON=KEYWORD_GO_BUTTON

http://www.lordandtaylor.com/eng/search/EntireSite-guess

http://www.fundinguniverse.com/company-histories/Guess-Inc-Company-History.html

3 Target Markets

http://www.businessweek.com/magazine/content/06_51/b4014079.htm

Found on this website are descriptions of the Guess consumer. Christopher Palmeri provides descriptions of the consumer. "The Guess girl is edgy, sexy, confident," he says. "And she loves to be looked at." Guess has had females like Paris Hilton model for them. She is within the range of the target market that they are trying to sell to.
Three target markets of Guess seem to be teenage girls, young college women (or just out of college) in their 20's and women in their early 30's. Demographically, these three markets can look very different and the same. They can be of various nationalities, races, religions, family sizes, ages, and from different locations. Generally their income is similar; upper-middle class and up. Consumers in the same demographic groups can be very different psychographically. Psychographics are based on social class, lifestyles, and personality characteristics. The psychographics of the Guess target markets may be that they are middle to upper class, they have very social lifestyles, are adventurous, sexy, and stylish. Woman in their 20's or 30's may also be different from teenagers psychographically because they may have full time jobs, or be working moms. Behavioral segmentation focuses on the different benefits that the consumer seeks from the product and uses. So for example, the teenager consumer from Guess may be looking for a boost in their status and popularity. While the woman in her 30's may be looking to remain stylish and young. The teenagers may buy from Guess frequently, while a woman in her 20's or 30's may buy more regularly and be more loyal because she may have a full time job.

http://www.rather-be-shopping.com/guess-coupons.htm
A review of the G for Guess website is provided at this website. The reviewer breifly says that their clothing is quite hip and fashionable with a target market of 18-28 year olds.