Swatch is a highly successful Swiss watch company known for its colorful, affordable watches. Founded in 1983, Swatch revitalized the struggling Swiss watch industry through fun designs, low prices made possible by mass production techniques, and targeting of young consumers. Swatch utilized strategies like frequent new product launches, global retail presence, and portraying its watches as affordable luxury items from Switzerland, known for watchmaking quality. This helped make Swatch the most popular wristwatch brand worldwide with over 600 stores.

1. Time of what you make it

2. 1. Story of time: Swatch brand
- Swatch is a Swiss watch company (Swiss
+ watch)
- First went on sale in 1983
- Has been called the most successful
wristwatch of all time
- There are over 600 Swatch stores world
wide

3. 2. Swatch’s evolution
- Swiss Behavior: Proud/Arrogant of watch “Made in
Switzerland” of quality watch.
- Earlier 1980, Swiss watch industry witnessed dropped sales
due to fierce competitions.
- The founder Nick Hayek reconstruct bad companies
(ASUAG and SSH) to Swatch with repositioning the brand.
Value:
- Provocative: use bold designs and colours – never used
before
- Joy of life: selling emotional products
- Personal culture

4. 3. Swatch’s marketing strategy
integrated in local market
- Broad market presence: one profitable brand
in every segments, low price initially.
- Vertical Integration – build and assemble the
low priced quartz watch in Switzerland
- Collections were replaced rapidly, no repeat
production runs
- Due to high cost of craftsmanship, their
strategy of low cost: use cheap plastic, mass
production in a fully automated way with
fewer parts.

5. 4. Swatch’s marketing strategy
integrated in international market
- Target customer: teenager 15-35 year-olds
- Positioning: Swiss watch with high quality and low price
4Ps:
- Product: Colorful design to match the need of youngsters,
high frequent of launching new products
- Price: Generally lower for teenagers to afford buying
- Place: Swiss shops, Department stores, Retail store in
shopping malls.
- Promotion: Appear in fashion magazine to attract
entrance of youngsters.

6. 5. SWOT of Swatch
- Low price Swiss-made
- Diversified product
variance, Customized
offerings
- Vertical integration
Strength Weakness
Opportunity Threat
- Low reaction among
watchmaking in
digital trend
- Joint-venture with
Tourneau
- Counterfeit goods.
- Countined price
increase of raw
material
- Vulnerable to
customer trend/mood
- Limited presence in
US.

7. 6. Competitive Mapping vs
world/Swiss brands*
Technique
Design
Prestige
Accessible luxury

8. 7. Reflection of country culture
lead to Swiss excellence
-- Logo: use Swiss flag to show Swiss quality
- Brand name: Swiss + watch
- They realised that at similar prices,
customers would identify Swiss watches
as higher quality than the competitors

9. 8. Level of Swiss excellence
compared to German’s
-
- Historical contributions:
Swiss watch industry supplied parts for Germany’s watch industry.
German found some famous Swiss such as Rolex, Chopard.
- Market relevance:
around year 2000 the Germany industry can reach Swiss expertise
level
German watchmaking focused on in-house manufacturing and
movement making
Swiss watchmaking – Jewel like
- Watch making competency:
high volume - 20.9billion CHF (Swiss) compare to 1.7billion euro
(German). Swiss industry is more structured/concentrated.

10. 9. Country-of-origin perception
between Swiss and German
-
- Swiss perception:
prestige with long industry’s historical liveliness
Detailed, sophisticated
Country manufacturing brand – watch
- German perception:
concentrates on accuracy and reliability creating solid practical
time machines
Country manufacturing branding – car, machinery, precise tool