Swatch Marketing Stratagy

Competitive compend It is the vital part of marketing . its purpose is to determine the strengths and weakness of the competitors within the market. Porters five forces analysis for swatch net be interpreted as fol ruggeds, New entrants-Strong brand reorganization and customer loyalty- swatch is a popular brand among customers substitution. But as swatch products atomic number 18 simple, accessible, implike and colorful and different parts coat very low , so swatch can be attacked by new entrants. Substitution Many brands provide with background of similar styles. everal Chines and Japanese companies manufacture low equipment casualty watches with similar style or design. -The thread form counterfeit product- some electronic devise can be used to get the time ,like cell phone, iphone or ipod. Buyer violence It is mellowed in this industry simply due to the presence of so many competitors selling the same products. It is only different in price and consumers loyalty. geter bargaining power depends on some criterias much(prenominal) -as price swatch has spurn and reasonable price, character reference is high , style color full plastic watch, different design for different occasion .As swatch has lot of competitors so buyer has high bargaining power. Bargaining power of suppliers Swatch watch components are usu all toldy made in low labor cost countries with a low to medium quality and they are assembling in Switzerland. So suppler do not have strong influence . so lot of suppliers are involved and bargaining power is low. Overall intensity of rivalry -intense competition within a very crowded market. Japanese guild sicko has a big market in the humanity with low price and low production cost. Or Chinese watch like have also competitive benefit in the markets.Marketing Strategy cathexis Swatchs mission is to offer low cost, high quality, and accurate watch with synthetic material. Marketing Objectives Become the creative and innovative leading brand in global market . Establish strong brand im eld in the mind of consumers . Financial Objectives Increasing sales by 2012 to 8 billion. The Swatch Groups gross sales grew 14. 4% June 2012 . Segmentation and Targeting Segmentation is to divide a market into distinct groups of buyers with different needs, characteristics of behavior, who might require separate products.They considered some factors such as Geographic No particular segmentation as Swatch is sold all around the world Demographic Gender male and female In 2007, 11. 1% of women bought watches for self, while 9. 3% went to men. 5. 3% of women bought watches for someone else, while 3. 4% went to men. Age 15-19, 20-24 and 25-34In terms of amount of people who purchased watches during 2007, The first age group accounted for 23. 4% The second age group occupied 18. 1% The third age group had 16. 9%. They also making watch for kid. Psychographic LifestylePeople that point an urban lifestyle or they are passionate about fashion and follow new trends, Personality Spontaneous, impulsive, extrovert people, people usually motivated by sentiment and the ones that do not think twice before they buy . Behavioral Loyalty status High loyal user pool that is kept up(p) through frequent offering of new designs Attitude At least positive attitude to new products. Buyer readiness Impulsive audience, receptive to buy after a new launch Occasion/seasonality There are 2 launches per year in order to follow the trends in the fashion world.Targeting -With low price and high quality, Swatch is targeting to this customer segment that seeks a good and reasonable compromise between price, quality and stylish design. -They concentrate on on working women age rage 24 to 35. It is clear that female purchasing goods for themselves more than male and they take the lead in the whole market. as well as lifestyle, women unbidden to spend more on themselves. They also target people base on marriage status like single and married person who are more established in independent and lifestyle. PositioningTheir high quality but low price makes customers move to multi-ownership across a range of looks and price points. strategical Options & Strategic Choice Swatch has a strong brand image and customer loyalty. In order to maintain and take advantages of such strengths, Swatch should adopt the market-penetration outline which meat to sell existing products into existing markets with the objectives of securing the dominance of current market and increasing market share from current products. If they cut their products price it may damage the news report and reduce their profit or if hey develop a new product it might cost much money and time to do market look and product test . Marketing Mix Decision Swatch marketing mix is made of the follo furtherg four aspects Product Customization to personalize the watch to fit customers relishing and make it more unique Special features emphasize more special and limited edition for a youthful, innovative and exciting look. Price Premium price to reflect the exclusiveness, limited and high quality of the product Place -To open duty-free shops in the airports such as Gatwick and Birmingham airport.Promotion They use effective promotion strategy to create new market. Celebrity endorsement to invite Leona Lewis and use her image -Advertising Print and broadcast ads/Posters and leaflets/Billboards Direct & Interactive marketing E-mails/mobile messages/ Web sites and iPhone or iPad apps to watch their new collection and new events. Sponsorship big sporting events such as the Olympics. -They provided online sales in different countries- London, mala. To put banner on the net income such as Face Book To increase brand awareness and standard of retailing capability they set up Tech-Airport Company to display its transition brands in air port, k nowadays as tax free stores. Like international airport in France. Omega was the officia l timekeeper of the Olympic Games in London and also feature in the new James Bond named-SKY FALL. Recent campaigns Following campaigns were recently pushed specifically for swatch watches Color CodesThis collection is a 80s regressive to the swatch watch history. This product is monochromatic but come in multiple colors.Fashion magazine designers are asked to participate in a contest, in and asked to design spreads to publicise the product line with the theme how do you wear it. Consumer started voting for the best spread. Additionally facebook campaign in which consumers uploaded pictures of themselves wearing swatch watches, allow a winner to win all 20 color Code watches. There are former(a) campaigns called Swatch Snowpass/ access, CreArt Street Club. Distribution channel- Swatch group created independent diffusion channels , its distributors are spread widely in Europe, Americas , Oceania, ,Asia, Middle East and Africa ..Retailing strategy Swatch group created several reta iling strategies to keep close contact with customers. Monobrand stores connecting with all the fashion shopping centers in the world including Paris Milan and London, New York city and Beijing , Shanghai and Hong Kong in Asia. Tour million boutiques in the world to retail famous brand watches they have. They majority of boutiques are in the Europe, 2007 they opened large tour million boutique in Beijing in China. Some other boutiques are controlled by local country, swatch use those stores to sell their single products.As a result In the first half of 2012 swatchs sales were up 14% aided by expansion of its distribution and retail network. That why the Group continues to invest heavily in production. Approximately 40% of the investments in this segment go toward the expansion of capacities, approximately 50% toward new production technologies and new products, and approximately 10% toward the replacement of existing capacities. Global market To lead the golbl market company follow some stratagees -Must have style -Must be priced competitive -Must be cheap to make -Be durable A technological lead. All those elements enable the swatch to expatiate business in overseas and attacked customers from countries with different preference and abilities. Manufacturing centers located all over the world mainly Switzerland, German, France , Italy , the U. A , virgin Islands, Thailand, Malaysia and china. Training centerThey focus also remains on the further education and training of employees or watchmaker at the various training centers in Switzerland and abroad. There are now five schools located in(China), (Malaysia), (Germany), and in Miami(United States).There is also a partnership arrangement with the British School of Matchmakingin Manchester. CUSTOMER Swatch group concentrated randy value of the customers, 1. INDENTIFY CUSTOEMRS-To identify customer , swatch always carry out extensive research and analyses patterns of consumer, behaviors and life style, Swatch t hat completely changed the concept of the wrist watch that why watches becomes a fashion accessory first and a watch second. 2. SEGMENTATION- Swatch makes segmentation base on age , gender , personality , lifestyle. 3. CONVY THE NEED OF CUSTORS-emotional value lies into why a particular product is desired or not desired.They recognized that it is important to manufacture goods that will persuade the consumer to purchase particular brand. Consumers opinion and consumers come about swatch has great quality, cool, timeless and durable. For some people swatch watches bring back memories and they are also a great gift or versatile. fashion conscious consumers collects a dozen or more , as swatch are sold as fashion accessories, consumers are encouraged to buy more than one to match with different set of clothes or lifestyles . The average swatch customers in Britain today own three different models.