This document discusses the history and strategies of Swatch, a Swiss watch company. It summarizes that Swatch was founded in 1983 and became the best-selling watch brand of all time, selling over 100 million units by 1993. To lower costs, Swatch minimized parts from 91 to 51, allowing automated production in Switzerland. The document also discusses Swatch's pricing strategy of keeping prices simple and affordable, as well as its turnaround from near bankruptcy in the 1980s by merging with another company and focusing on all market segments. Finally, it provides recommendations for smartwatch companies regarding product design, promotion, pricing, and distribution.

1. Swatch
by Nicholas Martin,
Johnson Liang,
Joseph Pecora,
Rasheequr Rahman,
Kim Sion,
Xihua Wang

2. Swatch History
• 1950’s - Specific craft of each watch
• 1983 - First swatch made
• 1993 - Swatch, best seller in history of watch making
(sales of over 100 million units)

3. Product Design and Product Line Management
Doubts and questions: Is it possible to manufacture in Switzerland?
• More than a watch: A strong message with an emotional connection
• Various bold colors and designs to choose from
What about the costs?
• Minimize labor and maximize automated production
• 91 to 51 individual parts; helped bring down costs to SFr 10

4. Pricing Strategy
• A Simple and Clean Price
Factors to Consider:
• Objective
• Market Share
• Other Company Brands
• Result

5. Swatch’s Fall
• In 1983, SSIH and ASUAG were losing millions of
dollars
•Switzerland’ watch unit share fell to less than 15%
•Bankruptcy

6. How did Swatch overcome?
• These two companies merged
•Nicolas Hayek assigned as a CEO
•One profitable, growing, global brand in every segment-
including the low end
→ This is the key strategy when introducing a new
sub-category !

7. Smart Watch
•What is Smart Watch?
– A new category of watch that can be linked with Smart
Phones and functions as MP3 player, camera, and other
entertainment.
-But, it does not seem to be a big success.

8. What should Smart Watch companies do?
•Product marketing mix
- need a variety of designs
•Promotion marketing mix
- improved and unique advertising

9. What should Smart Watch companies do?
Cont’d
•Pricing marketing mix
- affordable price
•Place marketing mix
- distribute it in the places where there are a lot of
potential consumers. E.g. Big cities have a lot of smart
phone users.

10. Swatch Concept (Question 2)
• Public view started to change; prefered watches with quartz technology.
• Swatch concept received with mixed feelings.
-Waste of resources
-Hurt brand image
• Worked well as it increased revenue and brand popularity

11. Watch & Smartphone (Question 3)
• Both made for individuals
• Day by day uses
• Both benefiting from technology progress
• Both have a full-scale product line.

12. Smartphone
• Changed the way people interacted with technology
and packed all-in-one products
- Not just talking and texting
- Internet, media, camera, and education are all
incorporated

13. Smartphone
Interactive TV
HD Screen
Flat TV
From CRT Televisions to Flat screens
App, such as weight control

14. Smartphone
• New designs and features
- Tons of new features and looks of smartphones.
- New collections, and color design, like Iphone.
• From Luxury to a Standard
- Different versions and levels of smartphones for
customers to choose

15. Apple
• Apple makes smartphone to a whole new level.
- Touching screen
- Reformed the App Store
- Leading and promoting the development of the
smartphone industry
- Changed the way people think about smartphones