Wednesday, July 31, 2019
Swatch Marketing Stratagy
Competitive analysis It is the vital part of marketing . its purpose is to determine the strengths and weakness of the competitors within the market. Porterââ¬â¢s five forces analysis for swatch can be interpreted as follows, New entrants-Strong brand reorganization and customer loyalty- swatch is a popular brand among customers substitution. But as swatch products are simple, accessible, playful and colorful and different parts coat very low , so swatch can be attacked by new entrants. Substitution ââ¬â Many brands provide with range of similar styles. everal Chines and Japanese companies manufacture low price watches with similar style or design. -The thread form counterfeit product- some electronic devise can be used to get the time ,like cell phone, iphone or ipod. Buyer power ââ¬â It is high in this industry simply due to the presence of so many competitors selling the same products. It is only different in price and consumers loyalty. buyer bargaining power depends o n some criterias such -as price ââ¬â swatch has lower and reasonable price, quality is high , styleââ¬â color full plastic watch, different design for different occasion .As swatch has lot of competitors so buyer has high bargaining power. Bargaining power of suppliers Swatch watch components are usually made in low labor cost countries with a low to medium quality and they are assembling in Switzerland. So suppler do not have strong influence . so lot of suppliers are involved and bargaining power is low. Overall intensity of rivalryââ¬â -intense competition within a very crowded market. Japanese company sicko has a big market in the world with low price and low production cost. Or Chinese watch like have also competitive benefit in the markets.Marketing Strategy Mission Swatchââ¬â¢s mission is to offer low cost, high quality, and accurate watch with synthetic material. Marketing Objectives ââ¬â Become the creative and innovative leading brand in global market . ââ¬â Establish strong brand image in the mind of consumers . Financial Objectives ââ¬â Increasing sales by 2012 to 8 billion. ââ¬â The Swatch Groupââ¬â¢s gross sales grew 14. 4% June 2012 . Segmentation and Targeting Segmentation is to divide a market into distinct groups of buyers with different needs, characteristics of behavior, who might require separate products.They considered some factors such as Geographic: No particular segmentation as Swatch is sold all around the world Demographic: Gender: male and female In 2007, 11. 1% of women bought watches for self, while 9. 3% went to men. 5. 3% of women bought watches for someone else, while 3. 4% went to men. Age: 15-19, 20-24 and 25-34In terms of amount of people who purchased watches during 2007, The first age group accounted for 23. 4%; The second age group occupied 18. 1%; The third age group had 16. 9%. They also making watch for kid. Psychographic: Lifestyle:People that exhibit an urban lifestyle or they are p assionate about fashion and follow new trends, Personality Spontaneous, impulsive, extrovert people, people usually motivated by sentiment and the ones that do not think twice before they buy . Behavioral: Loyalty status: High loyal user pool that is maintained through frequent offering of new designs ââ¬â Attitude: At least positive attitude to new products. Buyer readiness: Impulsive audience, receptive to buy after a new launch ââ¬â Occasion/seasonality: There are 2 launches per year in order to follow the trends in the fashion world.Targeting -With low price and high quality, Swatch is targeting to this customer segment that seeks a good and reasonable compromise between price, quality and stylish design. -They focus on working women age rage 24 to 35. It is clear that female purchasing goods for themselves more than male and they take the lead in the whole market. as well as lifestyle, women willing to spend more on themselves. ââ¬â They also target people base on m arriage status like single and married person who are more established in independent and lifestyle. PositioningTheir high quality but low price makes customers move to multi-ownership across a range of looks and price points. Strategic Options & Strategic Choice Swatch has a strong brand image and customer loyalty. In order to maintain and take advantages of such strengths, Swatch should adopt the market-penetration strategy which means to sell existing products into existing markets with the objectives of securing the dominance of current market and increasing market share from current products. If they cut their products price it may damage the reputation and reduce their profit or if hey develop a new product it might cost much money and time to do market research and product test . Marketing Mix Decision Swatch marketing mix is made of the following four aspects: Product ââ¬â Customization ââ¬â to personalize the watch to fit customers taste and make it more unique â⠬â Special features emphasize more special and limited edition for a youthful, innovative and exciting look. Price ââ¬â Premium price ââ¬â to reflect the exclusiveness, limited and high quality of the product; Place -To open duty-free shops in the airports such as Gatwick and Birmingham airport.Promotion They use effective promotion strategy to create new market. ââ¬â Celebrity endorsement ââ¬â to invite Leona Lewis and use her image -Advertising ââ¬â Print and broadcast ads/Posters and leaflets/Billboards ââ¬â Direct & Interactive marketing ââ¬â E-mails/mobile messages/ Web sites and ââ¬â iPhone or iPad apps to watch their new collection and new events. ââ¬â Sponsorship big sporting events such as the Olympics. -They provided online sales in different countries- London, mala. ââ¬â To put banner on the Internet such as Face Book To increase brand awareness and standard of retailing capability they set up Tech-Airport Company to display its v ariety brands in air port, know as tax free stores. Like international airport in France. ââ¬â Omega was the official timekeeper of the Olympic Games in London and also feature in the new James Bond named-SKY FALL. Recent campaigns Following campaigns were recently pushed specifically for swatch watches Color Codesââ¬âThis collection is a 80s throwback to the swatch watch history. This product is monochromatic but come in multiple colors.Fashion magazine designers are asked to participate in a contest, in and asked to design spreads to promote the product line with the theme ââ¬Å"how do you wear itâ⬠. Consumer started voting for the best spread. Additionally facebook campaign in which consumers uploaded pictures of themselves wearing swatch watches, allow a winner to win all 20 color Code watches. There are other campaigns called ââ¬Å"Swatch Snowpass/ accessâ⬠, ââ¬Å"CreArtâ⬠ââ¬Å" Street Clubâ⬠. Distribution channelââ¬â- Swatch group created i ndependent distribution channels , its distributors are spread widely in Europe, Americas , Oceania, ,Asia, Middle East and Africa ..Retailing strategyââ¬â Swatch group created several retailing strategies to keep close contact with customers. Monobrand stores connecting with all the fashion shopping centers in the world including Paris Milan and London, New York city and Beijing , Shanghai and Hong Kong in Asia. Tour million boutiques in the world to retail famous brand watches they have. They majority of boutiques are in the Europe, 2007 they opened large tour million boutique in Beijing in China. Some other boutiques are controlled by local country, swatch use those stores to sell their single products.As a result In the first half of 2012 swatchââ¬â¢s sales were up 14% aided by expansion of its distribution and retail network. That why the Group continues to invest heavily in production. Approximately 40% of the investments in this segment go toward the expansion of capac ities, approximately 50% toward new production technologies and new products, and approximately 10% toward the replacement of existing capacities. Global market To lead the golbl market company follow some stratageesââ¬â -Must have style -Must be priced competitive -Must be cheap to make -Be durable A technological lead. All those elements enable the swatch to expand business in overseas and attacked customers from countries with different preference and abilities. Manufacturing centers located all over the world mainly Switzerland, German, France , Italy , the U. A , virgin Islands, Thailand, Malaysia and china. Training centerââ¬âThey focus also remains on the further education and training of employees or watchmaker at the various training centers in Switzerland and abroad. There are now five schools located inà (China), à (Malaysia), (Germany), and in Miamià (United States).There is also a partnership arrangement with the British School of Matchmakingà in Manches ter. CUSTOMER Swatch group concentrated emotional value of the customers, 1. INDENTIFY CUSTOEMRS-To identify customer , swatch always carry out extensive research and analyses patterns of consumer, behaviors and life style, Swatch that completely changed the concept of the wrist watch that why watches becomes a fashion accessory first and a watch second. 2. SEGMENTATION- Swatch makes segmentation base on age , gender , personality , lifestyle. 3. CONVY THE NEED OF CUSTORS-emotional value lies into why a particular product is desired or not desired.They recognized that it is important to manufacture goods that will persuade the consumer to purchase particular brand. Consumerââ¬â¢s opinion and consumers find swatch has ââ¬Å"great quality, cool, timeless and durable. For some people swatch watches ââ¬Å"bring back memoriesâ⬠and they are also a great gift or versatile. fashion conscious consumers collects a dozen or more , as swatch are sold as fashion accessories, consumers are encouraged to buy more than one to match with different set of clothes or lifestyles . The average swatch customers in Britain today own three different models.
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