Swatch Marketing Stratagy

Competitive analysis It is the vital take off of commercialiseing . its purpose is to determine the strengths and weakness of the competitors within the market place. Porters five forces analysis for s anticipate can be interpreted as fol starting times, virgin entrants-Strong brand reorganization and customer loyalty- s continue is a popular brand among customers substitution. tho as s delay overlaps be simple, accessible, playful and subterfugeful and different parts cake very graduation exercise base , so swatch can be attacked by untested-fangled entrants. Substitution Many brands provide with range of similar styles. everal Chines and Japanese companies represent low price watches with similar style or design. -The thread cause counterfeit product- both(prenominal) electronic devise can be utilize to get the time , alike cell phone, iphone or ipod. Buyer power It is superior in this industry simply due to the presence of so umteen competitors transmiting th e same products. It is only different in price and consumers loyalty. emptor bargaining power depends on nearly criterias such -as price swatch has abase and reasonable price, flavour is high , style color full shaping watch, different design for different occasion .As swatch has lot of competitors so leverager has high bargaining power. Bargaining power of suppliers Swatch watch components be unremarkably made in low labor cost countries with a low to medium quality and they atomic number 18 assembling in Switzerland. So suppler do not arrest strong influence . so lot of suppliers are involved and bargaining power is low. Overall intensity of rivalry -intense contest within a very crowded market. Japanese company sicko has a big market in the adult male with low price and low production cost. Or Chinese watch like have similarly competitive benefit in the markets. merchandise Strategy Mission Swatchs care is to offer low cost, high quality, and accurate watch with synthetic material. Marketing Objectives Be come ab fall out the creative and innovative leading brand in global market . Establish strong brand image in the spirit of consumers . Financial Objectives Increasing gross revenue by 2012 to 8 billion. The Swatch Groups gross sales grew 14. 4% June 2012 . Segmentation and Targeting Segmentation is to divide a market into distinct separates of secureers 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 manlike 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 mortal 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 employed 18. 1% The third age group had 16. 9% . They similarly inventing watch for kid. Psychographic LifestylePeople that exhibit an urban lifestyle or they are passionate about invent and follow naked trends, spirit Spontaneous, impulsive, extrovert people, people usually motivated by sentiment and the ones that do not think twice before they buy . Behavioral obedience status High loyal user pool that is maintained through with(predicate) frequent offering of new designs Attitude At least confirmative attitude to new products. Buyer readiness Impulsive audience, receptive to buy after a new launch Occasion/seasonality There are 2 launches per year in show 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 practised and reasonable compromise between price, quality and stylish design. -They focus on working women age rage 24 to 35. It is clear that female acquire goods for themselves more than male and they take the lead i n the whole market. as well as lifestyle, women willing to spend more on themselves. They in addition target people base on marriage status like hit and married person who are more established in independent and lifestyle. PositioningTheir high quality but low price makes customers start to multi-ownership across a range of looks and price points. Strategic Options & Strategic prime(prenominal) 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 spirit 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 selling mix is made of the follo wing four aspects Product Customization to personalize the watch to fit customers taste and make it more unique Special features accentuate more special and limited edition for a youthful, innovative and provoke look. Price Premium price 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. celebrity endorsement to invite Leona Lewis and use her image -Advertising Print and broadcast ads/Posters and leaflets/Billboards learn & Interactive marketing E-mails/mobile messages/ Web sites and iPhone or iPad apps to watch their new appeal and new events. Sponsorship big sporting events such as the surpassings. -They provided online sales in different countries- London, mala. To put banner on the Internet such as Face Book To increase brand awareness and criterion of selling capability they cause up T ech-Airport Company to display its miscellanea brands in air port, k outright as tax free stores. alike international airport in France. Omega was the official timekeeper of the Olympic Games in London and also feature in the new pack Bond named-SKY FALL. Recent campaigns Following campaigns were recently pushed specifically for swatch watches Color CodesThis 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 how do you wear it. Consumer started voting for the best spread. Additionally facebook campaign in which consumers uploaded pictures of themselves have on swatch watches, allow a winner to win all 20 color Code watches. There are other campaigns called Swatch Snowpass/ access, CreArt Street rules of order. Distribution channel- Swatch group created independent distribu tion channels , its distributors are spread widely in Europe, Americas , Oceania, ,Asia, Middle East and Africa ..Retailing strategy 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 capital of Red China , 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 spacious tour million boutique in Beijing in China. around 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 swatchs 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 capacities, approxim ately 50% toward new production technologies and new products, and approximately 10% toward the replacement of existing capacities. world(prenominal) market To lead the golbl market company follow some stratagees -Must have style -Must be priced competitive -Must be cheap to make -Be stable 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 centerThey 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 in(China), (Malaysia), (Germany), and in Miami(United States).There is also a federation arrangement with the British School of Matchmakingin Manchester. CUSTOMER Swatch group severe 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 ask 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. Consumers opinion and consumers find swatch has spacious quality, cool, timeless and durable. For some people swatch watches bring back memories 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 trio different models.