Case 2 Analysis
Swatch Watch U.S.A.: Creative Market Strategy
TABLE OF CONTENTS
ABSTRACT 3
BACKGROUND 4
SWATCH® ANALYSIS 5
Marketing Strategies 5
CONCLUSIONS AND RECOMMENDATIONS 7
REFERENCES 9
ABSTRACT
Switzerland was an industry leader in the watch market up until the 1970’s when the digital watch was introduces to consumers. The digital watch was inexpensive to manufacture and could be produced in mass. It created a whole new market by making watches inexpensive enough for all classes of people. The Swiss did not respond to this new competition and began to lose their market share. The Swiss watchmakers still produced high end watches for the wealthy, but did not compete for the lower end market.
In the 1980’s the Swiss watchmakers began to realize they needed to change their business model to fit in to the new global market place. They needed to not only change their views of the market but the infrastructure of watch manufacturing. In order to compete on a global level they needed to improve their technology, design products that would appeal to new markets and be able to compete with other companies both in quality and cost.
The development of Swatch® allowed one company, the Swiss Corporation for Microelectronics and Watchmaking Industries (SMN), to do just that. SMN developed a product that was appealing to a younger target market. Their new design, distribution and production strategies created a niche market that became popular worldwide. The company developed an advertising campaign that was new to the watch industry and was strongly directed at a younger audience.
BACKGROUND
For years the Swiss watch industry had a competitive advantage on the watch market, in fact they had little or no competition and often had waiting lists for their watches. In fact, in the 1950’s the Swiss held an estimated eighty percent of the free-market share (Keegan, p 219). Their product was of high quality and held great appeal to their target market. Despite their success they only had a small corner of the potential market as the majority of the world’s population could not afford a Swiss watch. In the 1970’s electronic watches were introduced to the market. In...
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...rch expanding their market in regards to their targeted age group. As their customers mature, SMN could expand their product line to include fashions that while still trendy, are designed more for the professional setting. In addition they need to insure that their value to cost ratio is equal to or better than their competition.
Developing alliances with global companies would enable SMN to enter new markets by using the other company’s trademark. For example, Swatch® could develop an alliance with a major shoe manufacturer like Nike® or even a soft drink company such as Coke® and joint advertising would benefit both companies and allow them greater access to world markets. The main goal would be to develop alliances with companies that had the same overall feel. Swatch® is fun and hip therefore an alliance with a company that produces fax machines would not be mutually beneficial.
By implementing new strategies and continuing to produce quality merchandise at reasonable prices Swatch® will continue to be a frontrunner in the fashion accessory and apparel industry.
REFERENCES
Keegan, W. J. Global Marketing Management. Prentice Hall. Seventh Edition, 2002, pages 219-227
These expertly-crafted watches, created by world-renowned watchmakers such as Chopard, Breguet and Patek Phillippe, are some of the most valuable timepieces in the world. The intricacy of the design, the level of detail and the inclusion of diamonds and precious stones means that these watches each cost a couple of million dollars.
The Target Corporation prides itself on their department store roots with a constant obligation to great prices and stylish originality. The main focus of every Target store is the customer, whom the corporation refers to as a "guest", making them feel more personal. Each guest can expect to walk into a clean, organized, and easy to navigate store with "high quality, stylishly designed items plus all the essentials for his or her life".1 The company also has a significant focus on design. The company employs a "design for all" strategy that says great design is for everyone to enjoy, everyday. The product designers know how to create products you will "love to live with and low prices you can't live without".1 The commitment to design has become a key technique of attracting and keeping their shoppers coming back.
Clocky’s marketing strategy was very powerful in stirring interest and eventually sales, yet Nanda failed to fulfill several branding goals in launching her product. Clocky’s physical design made it a distinctive and set it apart from traditional alarm clocks. This was a calculated move by Nanda to emphasize the cute feeling the object provides, nevertheless the design has had a love it or hate it effect on consumers. It is an achievement for a product to stir such feelings in consumers minds, this strong response fueled Clocky’s success and lead to eight thousand people to join their mailing list. On the other hand consumer dislike for Clocky’s has lead some to post youtube videos mocking it and even when appearing on Good Morning America TV show ...
The Apple Watch is already a great product in its own right, but it still needs a number of improvements to become a more prominent and a better product. Regardless, it's still a first-generation device and Apple can use the mistakes it committed - along with the users' complaints - to introduce a better smartwatch next
The complex parts and orderly nature of the watch are integral elements of its function. Because the watch has a specific use, we are able to in turn assess its functionality: it either works or it doesn’t. In saying that something does or does not “work,” we are implying that some sort of goal has or has not been met. This goal is the purpose of the watch’s
Furthermore, Under Armour’s goal is to expand their wearable watches and bracelets into built-in sensors that go into the clothing they create. This product will allow consumers to be accessory free and still will be able to track their activity levels. This innovative idea will surely bring in consumers, and provide Under Armour with the push they need to directly compete
Since the late 1980s, improving economies in Asia have translated into more disposable income and an appetite for the status symbols that accompany it. Tommy Armour Golf Co., already in every Asian market, anticipates that its strongest growth will co...
This case study is about “Specialized Bicycle Components Inc.” known as Ride the Red “S”. Specialized was founded in 1974 by Mike Sinyard. According to Chris Murphy, director of marketing for Red “S”, specialized is for serious riders. He says, “The customer is buying the ride from us, not just the bike.” The company began to produce its own bike parts by 1976, and introduced the first major production mountain bike in the world in 1980. Specialized now has an extensive global distribution network of 5000 retailers in 35 countries in Asia, North America, South America, and Australia. They maintained a reputation as the technological leader in the bike and bike accessories. The formal mission is still the same since they established the company “To give everyone the best ride of their life.”
Through innovation, high quality design and production, along with effective branding, European companies have an advantage - the ability to sell products at a premium price. Europe makes it, fake it then east is how much business would phrase it. This is about ...
Target exploits this segment buy offering styles of cloths in a variety of colors, sizes while including different designs to relate to different ages. For example a person in their 70’s might like a color scheme of socks, but a younger person might want a more modern color, with designs. This allows Target to advertise, market and sell one clothing line but with different styles meeting the wants and needs of a segment that hold a large number of their consumers. Target marketing strategy is currently based off its brand imagine for their customers to “expect more, pay less”. This and the age related segment allows for target to remain firm with their image while also allowing them to be able to sell a single clothing line to all ages simply by changing the color. Their approach take advantage of this segment, why allowing them to make consistent product changes at a low
Still in privately owned as well as operated, their founding ideology and principle still stays at the center of all Invicta manufactures. In setting a criterion for outstanding standards, Invicta preserves their objective of productively satisfying buyers as well as collectors similar at any cost point. Their watches are obtainable at junglee.com</p><p><b> Product Features</p><p><b> Clear-cut Swiss-Quartz movement</p><p> Hard-wearing flame-fusion gemstone; Black Ion-Coated stainless steel case as well as bracelet.</p><p>24 hour as well as month subdials.</p> <p> Black dial in the company of luminous hands, hour indications in addition to arabic numerals 3 plus 9.</p><p> Water unwilling to 330 feet (100 M): appropriate for snorkeling, and swimming, however not diving.</p> <p><b> Product Details</p><p><b> Maker: Invitca</p><p> Brand: Invitca</p><p> Product Number: 0367</p><p> Color: Black</p><p> Target Crowd: Men</p><p> Watch Movemnet: Swiss- Quartz</p><p> Watch Display : Analog</p><p><b> Technical Specification</p><p><b> Batteries Incorportaed: Yes</p><p><b> Dimension as well as Weight</p><p><b> Item Measuremnet: 15cm x 15 cm x 15
Before the alliance the two firms were in totally different market and they were also in different country but the industry was of same type. Both of the firms were aware about their future plan and lacking.
The topic under review is strategic alliances. This particular form of non-equity alliance between firms in the same industry (competitors) is becoming an increasingly popular way of conducting business in the global environment. Many different reasons of why such alliances are occurring have been recognized. These include: the increasing globalization of the world's economy resulting in intensified global competition, the proliferation and disbursement of technology, and the shortening of product life-cycles. This critique will use Kenichi Ohmae's viewpoint on strategic alliances as a benchmark for comparison. Firstly, a summary of Ohmae's article will be provided. Secondly, in order to critique Ohmae's opinion, it will be necessary to review other literature on the topic. Thirdly, a discussion of the various viewpoints and studies, that have hence arisen, will be discussed in detail. Finally, conclusions will be drawn with implications for companies operating in today's global environment, together with suggestions for future research on strategic alliances.
Co-Branding;- co-branding is when two companies together, another word two brand becoming partnership of goods and services.(Investopedia.come.2013) the advantages of co-branding companies is to increase sales and cash flow, expanding customers and joined advertising. The potential disadvantages are disagreement on decision making, might fall if the two products have different market and customer trust issues. Co-branding would not work for Holland and Barrette because it might create confusing as they have huge customers and are familiar with brand. The risk going to co-branding is loss of control; lose customers because single advertising might not cover the entire category.
in this segment are often brand conscious and enjoy the latest fads and trends. They...