The Dress Watch Company's 'Standpoint' marketing plan aims to capture a 4% market share in the luxury watch segment, targeting consumers aged 18-40. The innovative 'Standpoint' watch will retail at $945, supported by extensive advertising and distribution strategies to compete against established brands like Rolex and Cartier. Financially, the company anticipates $1.5 million in sales in the first year and plans to break-even by 2016.

1.
Dress Watch Company
Brian Hayward and Chantay Crawford
“STANDPOINT” WATCH
MARKETING PLAN
SUMMARY
By Dress Watch Company

2.
“STANDPOINT” WATCH
MARKETING PLAN
SUMMARY
By Dress Watch Company
Based on our strengths and an evaluation of the luxury watch market. Dress
Watch Company introduces “The Dress Luxury Watch”.
SITUATION ANALYSIS
Buyers between the age of 18 and 40 are the only purchasers of branded
luxury watches. More watches per capita are purchased by this group than older
buyers and this our main segment of the market. Northeast and Midwest
consumers are usually purchases of watches. Strong point-of-purchase support
is required because many purchases will be an impulse purchase only when
walking pass the jewelry case. Over 80 percent of the market is Concentrated
with strong competition from Rolex, Piaget, Louis Vuiton, Breitling, and Cartier.
We are permitted to offer the consumer value in a branded luxury fashion watch
because we have extensive know-how in the manufacture of precision, high
quality, technical timing devices. Our distribution channels cover every outlet for
branded luxury watches.

3.
OBJECTIVES
• We have established a 4% market share in the first year allowed by the
combination of cost-effective luxury design and unique watch shape.
• The Dress Watch Company will break-even in 2016.
MARKETING STRATEGIES
Dress Watch Company will introduce a new product; the innovative
“Standpoint” watch in order to increase our revenues and growth rate, Dress
Watch will use extensive advertising, expanded distribution and penetration
pricing.
ACTION PLAN
Compared to current market offerings, The “Standpoint” watch has strong
product benefits. We will offer our unique watch to achieve our objectives, in two
designs at a suggested retail price of $945. Over 85 percent of the market, is
covered by our current distribution. To access the jewelry store retail channel we
will not expand our distribution. We will add a sales trainer to support for our
market plan and we will add to our sales force by 7 people. Print and point-of-
purchase displays will account for the one million dollars in advertising.
Two-thirds in the first six months of the campaign will be used to schedule
television advertising. Our advertising voice share will be considerably higher
than that of the four market leaders to achieve consumer awareness in the first
year.

4.
FINANCIAL ANALYSIS AND
EXPECTED RESULTS
Sales of 1.5 million dollars and in the first year our advertising campaign will
break even.
CONTINGENCY PLANS
If our sales are less than we expected, or if our competition increases
advertising, we will add $450,000 to our advertising budget and we are
prepared to do so.

5.
“STANDPOINT” WATCH - THE MARKET PLAN
SITUATION ANALYSIS
Dress Watch Company’s core business is luxury consumer clocks, based
on manufacturing high quality Gold, platinum, diamond and precious metal
casings. Based on providing consumers with high quality, innovative, luxury
watches is what we base this market plan on. Only 8.5 percent of our 2014
profits are represented by our 27 million dollars in net revenue. Sales growth has
slowed to a current level of 6 percent annually. Limitations are expected based
on the growth in current markets. This Standpoint Watch Project will improve
Dress Watch Company’s growth rate tremendously.
Market Analysis
Our competition will be several other branded luxury fashion watches. A forecast
to be $724 million retail dollars in 2007, growing to $1.21 billion by 2014 is the
current market size.
Consumer Behavior
Rolex has changed watch-buying patterns by encouraging
ownership of one high-priced, carefully designed luxury branded
fashion watch. Assuming availability, brand switching and testing
by consumers is hard for high priced watches, assuming
availability. Department stores account for the majority of branded
luxury fashion watches purchases.
Competitive Analysis
Rolex have few extensive networks of distribution but strong name
recognition in luxury watch fashion. Cartier and Breitling are strong at the
higher price lines.

6.
SWOT Analysis
Strengths
· The potential for New Designs can be facilitated by new innovative production
methods.
· Well equipped in timepiece distribution
Weaknesses
· Lack of Distribution lack of experience
· Lack of experience in marketing fashion products
Opportunities
· Huge market
· Sales growing slower than the current market
· A demand for innovative products created by consumer demand for luxury
fashion watches
Threats
· Concentrated market shares have strong market share
· New market entries highly possible
OBJECTIVES
⁃ We have established a 4% market share in the first year allowed by the
combination of cost-effective luxury design and unique watch shape.
• The Dress Watch Company will break-even in 2016.
MARKETING STRATEGIES
Dress Watch Company will introduce a new product, the innovative “Standpoint”
watch. in order to increase our revenues and growth rate, Dress Watch will use
extensive advertising, expanded distribution and penetration pricing.

7.
ACTION PLAN
Product
We will introduce 2 different designs in the first year. They will be offered on their own
display like Rolex.These are targeted at consumers 35 and over.
Price
The Standpoint watch will be sold for a suggested retail price of $1945. We believe that
we have product feature advantages, encouraging the use of a price slightly exceeding the
base price Cartier wrist watch.
Distribution
We will sell to the national market after introducing The “Standpoint Watch” in the
northeast within the first year.

8.
Promotion
Five new sales representatives that we added will support the development of new
distribution outlets. Our sales trainer will train a sales force in the new product. This will
be within our $500,000 sales support budget based on an average salary and benefits cost
of $100,000 for each position.
Table 1

10.
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Chapter 8 Marketing Research MIS
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11.
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