Swatch marketing analysis
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This document discusses marketing principles and strategies used by Swatch watches. It covers Swatch's history of bankruptcy in the 1980s due to a focus on production over customers. Swatch redesigned its watches to be thinner, cheaper to produce, and offered in diverse styles and colors. Its marketing mix included $40 watches promoted through unique advertising. Swatch targeted teens and young adults with reliable, stylish watches at a lower price point than competitors, positioning itself for success.
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Swatch presentation
The Swiss watch industry lost market share from 80% to 42% due to problems with strategy, structure, management, price, and technology. Hayek decided the industry could no longer retreat and spearheaded a turnaround. Hayek's strategy included broad market presence across price segments and developing the Swatch brand - a low-cost quartz watch marketed as an "emotional product" through unique design, frequent collections, and guerrilla marketing. This approach was a success, making Swatch the best-selling watch in history. Currently, Swatch ensures relevance through continued innovation across synergistic brands and a focus on the consumer decision journey with digital marketing.
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Swatch marketing analysis
- 1. Principles of Marketing for BY Arnav Rana Lili Chan Mina Lee
- 2. Contents Managing Profitable customer relationship Company and Marketing Strategy Marketing Environment Buyer’s Behavior Customer Driven Marketing Strategy Product, Services and Branding Strategy Pricing Products
- 3. Marketing Process Failed to understand market place and consumer need and wants Marketing Myopia Led to bankruptcy Tried to differentiate and position itself
- 4. Focused on …. Production concept Reduction of number of movement parts from 90→51 40% reduction in cost in assembles Parts were 0.002 mm
- 5. Strategic planning Mission To come out from the loss Objective & Goal To design low price analog To compete with digital watch Design business portfolio Product development High class to all
- 6. Marketing Mix Product -0.1mm analog watch -Different colors and designs Price $40 Promotion -Swatch -Giant Swatch clock Place Swatch
- 9. Factors Affecting Consumer Behavior Social Factors Personal Factors Economic Situations Psychological Factors Variety-Seeking Buying Behavior
- 10. Steps to Create Value for Target Customers Segmentatio n - Demographic -Psychographic -Behavioral Differentiation -More for less -High quality -low price Targeting -Teens and 20s’ -Lower Class and above Positioning -Reliability -Craftsmanship -stylish Create value
- 11. Product Decisions Shopping product Quality- reliability & craftsmanship Features – 1mm thick and water proof Style and Design –different colors and plastic case Branding Development Strategy NEW BRAND
- 12. Value based pricing Customer : everyone ↓ Value : style , different colors, water proof ↓ Price : $40 ↓ Cost : $6.65 ↓ Product : watch Monopolistic Market
- 13. Pricing Strategy Market Penetration Pricing
Editor's Notes
- 성공적인 마케팅 전략을 통하여 발전해 나가고 있는 스와치만의 마케팅 전약 요소에 대한 분석 특히 스와치의 아크스페셜 제품을 통한 아트 마케팅의 그 영향 고가의 시장에 치우쳐 있던 시계 브랜드 폭을 넓히고 저가 시장에 뀌어 들어 시장 경쟁력을 확보
- Ch1 1970년대에 값싼 일본 전자시계에 밀려서 도산 위기를 맞는다. 고가라인, 중가라인,저가라인의 브랜드화 시켜서 별도의 회사로 나누어서 운영하도록 했다.
- ch1
- Ch2
- Ch2 Product -0.1mm analog watch -Different design -Unlimited …….. Price - $40 (fixes cost) Promotion -Name changed -Tower in Germany Place SWATCH의 차별화된 성공전략 분석 1) Product전략 분석 부자데 패키지 디자인 (역발상의 디자인) 감성 메세지를 강조 2) Price전략 분석 : clean price 저가격 전략 제품 피라미드 이익모형 추구 3) Place전략 분석 : 독특한 유통전략 유통구조 개선 플래그쉽 스토어의 사용 4) Promotion 전략분석 시계에 디자인의 개념을 도입 과감한 PR의 이용
- ch3
- ch3
- ch5
- Conclude : Positioning statement
- ch8
- Ch10 Price 를 ch5 와 좀 연관지어서 사람들이 그 브랜드를 선호해서 사는게 아니라 브랜드를 사기 쉬우니까 컨비니언트 하니까 사는거일수도… 그렇기 위해서는 differentiation 을 해야함 - 새로운 색상들과 디자인에 변화를 주었다 plastic cased watches - available in various sizes, shapes and designs. EDLP: everyday low price
- ch11