This document discusses a marketing case study on the Swiss watch brand Swatch. It examines Swatch's unconventional product positioning strategies that disrupted the watch industry. Prior to Swatch, the watch industry catered to an older demographic and watches were seen as luxury items. Swatch was successful due to its innovative $12 plastic watch that appealed to younger consumers. It positioned watches as fashion accessories rather than just timepieces. Swatch's low price, colorful designs, and diverse product lines expanded the market. The case study guides discussion on how Swatch influenced consumer behavior and transformed the watch industry to be more youthful and affordable.

1. MARK4210, 2014 Spring, L1/L2
MARK4210: Strategic Marketing
2014 Spring, Section L1/L2
[Class #10]
Product Strategies –
The Birth of Swatch

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MARK4210, 2014 Spring, L1/L2
Case Learning Objectives
Examine unconventional product positioning strategies
 Recognize potential underlying conditions
 Recognize keys to increase probability of success
 Explore how aggressive positioning can lead to
significant evolution of a category (even mature
markets)

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MARK4210, 2014 Spring, L1/L2
Guide Questions: The Birth of
Swatch
1. Prior to Swatch, what was the watch industry like in various
historical stages (prior to 1950s, between 1950s-1970s,
1970s-1980s)? Consider various aspects of the category
(e.g., the positioning of the category, marketing mix, and
consumer behavior).
2. Why did Swatch became a success, what are the key
elements of their marketing plan (positioning, marketing
mix) that contributed to their success?
3. How has Swatch influenced/impacted the watch industry in
terms of how people view the category and consumer
behavior

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MARK4210, 2014 Spring, L1/L2
1.(a) Prior to Swatch, what was the
watch industry like prior to 1950s?

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MARK4210, 2014 Spring, L1/L2
1.(b) Prior to Swatch, what was the
watch industry like in 1950s to 70s?

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MARK4210, 2014 Spring, L1/L2
1.(c) Prior to Swatch, what was the
watch industry like in 1970s-80s?

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MARK4210, 2014 Spring, L1/L2
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Industry Product Positioning (pre-
Swatch)

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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so
successful? Positioning
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MARK4210, 2014 Spring, L1/L2
Watch Category Positioning after
Swatch
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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so successful?
Marketing Mix: Product
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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so successful?
Marketing Mix: Product Lines
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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so
successful? Marketing Mix: Price
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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so successful?
Marketing Mix: Place (Retail)
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MARK4210, 2014 Spring, L1/L2
2. Why was the Swatch so successful?
Marketing Mix: Promotion
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MARK4210, 2014 Spring, L1/L2
3. How has Swatch impacted the watch
industry?
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MARK4210, 2014 Spring, L1/L2
Why was the Swatch so successful?
Key Implications & Learnings
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