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The SwatchGroup-11

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Creation of the Swatch

Characteristics

• No marketing departments

• High levels of hierarchy

• Rigidity of the process of the fabrication

• Traditional perception of engineers that avoid innovation

• Industry dominated by engineers

• Product: high quality, low price, fashion design, fully mounting automatic process

• Price: >50 dollars • Promotion:

massive advertising, no sales at drugstores but at chic boutiques and jewelry shops

• Positioning: associating the brand name with positive emotions as “fun”; ”vacation”, high fashion accessory, for people between 18 and 30

Overview

Style of leadership Strategy control

Mr. Thomke was known to be autocratic because he took very important decisions himself , and he had different vision than other engineers but he

•Encourages innovation •Develops a marketing team •Consults professionals •Reduces the hierarchical levels •Encourages the employees to participate

After the creation of the Swatch Mr. Thomke thought of a possibility to develop a range of swatch accessory to associate the product at a life style and to create a brand identity => they have to control the risk of failed ( failure of the positioning and misunderstanding of the positioning by the consumers )

Dr. Thomke’s Strategy-The project delirium

• Objectives : • Step 1: boost the morale of employees

– Change the strategy of ETA

• Step 2: change the organizational culture and structure – Encourage idea of employees – Communication across departments – Stress hierarchical levels

• Step 3: defining a revolutionary product in the medium /low price category

– Control 50% instead of 10 % of the market share – Sales target: 10 million pieces in 3 years – Control costs with high quality: shock water- resistant

• Step 4: developing marketing, built new marketing team.

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The new concept- Objectives

• 1. Price: Quartz-analogue watch, retailing for no more than SFr. 50• 2. Sales Target: 10 million pieces during 1st 3 years• 3. Manufacturing costs: Continued expansion in order to decrease

estimated cost per watch• 4. Quality: Standardized parts, high quality, waterproof, shock

resistant etc.

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