SWATCH Presentation (2)

SWATCHSwiss

Presented by:

-Zriouilat Ali-Ben houssaine Marouane-Berrada Abdelhak

Outline• Introduction • History of the company • The different brands of the company • Different competitors • Position of swatch • Questionnaire analysis • General marketing strategy• Swatch’s strategy• Competitive analysis• Swot analysis• Marketing strategy • Marketing mix decision• Recommendations

Introduction• The Swatch Group Ltd is based in Switzerland and the

world’s largest watchmaker. It owns 19 watch brands, such as Omega, Rado, Longines and launches its products over 50 locations, including France, Germany, Italy, USA, the Virgin Islands, Thailand, Malaysia, and China, with its main facility in Switzerland. Swatch is one of the brand owned by this company, who is very famous for its slim plastic watches. As it is stated that, Swatch has uniquely pioneered the low cost watch market by combining style, and Swiss technology, and it sells watches, various accessories and apparel primarily to teens and young adults in the world.

History of the company

• The Swatch Group Ltd : is a Swiss company and the biggest watch manufacturer in the world.

• It was formed in 1983 through the merging of the two Swiss watch manufacturers ASUAG and SSIH

• In 1994, Swatch entered into a joint venture with Germany's Daimler AG to produce the Smart Car, but they later withdrew from this project.

• In 1998, Swatch invented "Swatch Internet Time", intended as a global timesystem, which divides the day into 1000 "beats" in a single worldwide timezone.

• In October 2004, Swatch introduced its first smart watch• In 2007, gross sales were 5.94 billion CHF

The different brands of the company

• Prestige and Luxury Range: Breguet, Blancpain, Jaquet Droz, Glashütte Original, Léon Hatot, Omega SA, Tiffany & Co.

• High Range: Union Glashütte, Rado, Longines• Middle Range: Tissot, Calvin Klein, Certina,

Mido, Pierre Balmain, Hamilton• Basic Range: Swatch, Flik Flak• Private Label: Endura

Overview:

The position of the 19 brands

Swatch product’s secret

• Product Quality (quality, accuracy, water and shock resistant…)

• Manufacturing excellence (dramatic reduction of parts from 91 to 51)

• Design and image ( swatch is a fashion accessory for the masses) : a bridge to the world of high-fashion with a technology twist.

Different competitors

• Prestige and luxury: Richemont, Rolex, Seiko.

• Innovation competitor: Citizen, Casio.

• Digital and electronics: Timex, Fossil

Position of swatch

Sales situation

Questionnaire analysis

1. What is the first brand of watch which spontaneously occurs you?

2. What are the brands that you know?

3-Have you ever bought a SWATCH?

4. If yes, in which place?

6. Choose a characteristic defining this brand of watch:

7. How did you know the brand SWATCH?

8. How do you find the prices proposed by SWATCH?

9. What price will you be ready to spend when buying a SWATCH?

10. How do you find the advertising strategy of SWATCH?

11. What type of watches do you prefer the most?

12. Do you think that the numbers of points of sell are sufficient?

Identification sheet

General market strategy

• Centralised production strategy produce cheap watches in high cost switzerland.

• Vertical integration strategy strategic independence and freedom of manœuvre in the market.

• Acquisition strategy control over 19 brands.

• Diversification offring strategy present in all market segment and price categories.

Swatch’s strategy

• Market penetration strategy entering the market with a high quality product low-priced.

• Sponsorship strategy Sports events and timekeeping.

• Cost leadership strategy offring added-value at the lowest competitive price.

Competitive analysis

Competitive analysis is a vital part of a marketing plan. Its purpose is to determine the strengths and weaknesses of the competitors within the market. Porter’s Five Forces analysis for Swatch can be interpreted as follows:

New Entrants• Strong brand recognition and customer loyalty --- Swatch is a popular

brand among customersSubstitution• Many brands provide with range of similar styles• Threat from counterfeit productsBuyer Power• Buyer power is high in this industry simply due to the presence of so

many competitors selling the same products. It is only differentiated in price and consumer loyalty

Overall Intensity of Rivalry• Intense competition within a very crowded market

Swot analysis

Strengths:

- Strong brand positioning- Repositioning into the fashion market- A wide range of products with different designs across all

price points- Swatch has: lowest + highest prices in markets- All swiss production- Cover all the market segments- Swatch = contemporay style + traditional knowledge- Swatch watch : Short product lifecycle

Weaknesses:- Lack of diversification.- Few point of sell.- Lack of advertising.

Opportunities:- E-commerce offers trading opportunities.

Threats:- Counterfeit products.- Intense competition betweendifferent companies

within a crowed market.- Current economic recession and policy of price fixing

decrease the sales.

Marketing strategy

MissionSwatch’s 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 image in the mind of consumers.Finacial objectives

• Increase the profit by 10% annually• Increase sales to 21.7% over the next 2 years

Marketing mix decision

Swatch’s marketing mix is comprised of the following four aspects:Product

• Customization --- to personalize the watch to fit customers’ taste 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 Menara Marrakech airport and in Carrefour in Marrakech --- or in the train station of Marrakech

• To put banner on the Internet such as Facebook.Promotion

• 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

The Nicolas G. Hayek Watchmaking School

• The Swatch Group started offering their first class for aspiring watchmakers in September 2005. This school is based out of Miami, Florida. Another school is located in Okmulgee, Oklahoma. Other watchmaker schools outside the US are situated in Glashütte (Germany), Pforzheim (Germany), Kuala Lumpur (Malaysia) and Shanghai (China).

Recommendations

• Diversification of the products.• To open more points of sell.• To promote the advertising efficiency.

Thanks for your attention