Swatch
by Nicholas Martin,Johnson Liang,Joseph Pecora,Rasheequr Rahman,Kim Sion,Xihua Wang
Swatch History
• 1950’s - Specific craft of each watch• 1983 - First swatch made• 1993 - Swatch, best seller in history of watch making
(sales of over 100 million units)
Product Design and Product Line Management
Doubts and questions: Is it possible to manufacture in Switzerland?
• More than a watch: A strong message with an emotional connection
• Various bold colors and designs to choose from
What about the costs?
• Minimize labor and maximize automated production
• 91 to 51 individual parts; helped bring down costs to SFr 10
Pricing Strategy
• A Simple and Clean PriceFactors to Consider:• Objective• Market Share• Other Company Brands• Result
Swatch’s Fall
• In 1983, SSIH and ASUAG were losing millions of dollars
•Switzerland’ watch unit share fell to less than 15%
•Bankruptcy
How did Swatch overcome?
• These two companies merged
•Nicolas Hayek assigned as a CEO
•One profitable, growing, global brand in every segment-including the low end
→ This is the key strategy when introducing a new sub-category !
Smart Watch
•What is Smart Watch?
– A new category of watch that can be linked with Smart Phones and functions as MP3 player, camera, and other entertainment.
-But, it does not seem to be a big success.
What should Smart Watch companies do?
•Product marketing mix
- need a variety of designs
•Promotion marketing mix
- improved and unique advertising
What should Smart Watch companies do? Cont’d
•Pricing marketing mix
- affordable price
•Place marketing mix
- distribute it in the places where there are a lot of potential consumers. E.g. Big cities have a lot of smart phone users.
Swatch Concept (Question 2) • Public view started to change; prefered watches with quartz technology.
• Swatch concept received with mixed feelings. -Waste of resources-Hurt brand image
• Worked well as it increased revenue and brand popularity
Watch & Smartphone (Question 3)
• Both made for individuals
• Day by day uses
• Both benefiting from technology progress
• Both have a full-scale product line.
Smartphone
• Changed the way people interacted with technology and packed all-in-one products
- Not just talking and texting - Internet, media, camera, and education are all incorporated
Smartphone
Interactive TVHD ScreenFlat TVFrom CRT Televisions to Flat screensApp, such as weight control
Smartphone
• New designs and features - Tons of new features and looks of smartphones. - New collections, and color design, like Iphone.• From Luxury to a Standard - Different versions and levels of smartphones for customers to choose
Apple
• Apple makes smartphone to a whole new level. - Touching screen - Reformed the App Store - Leading and promoting the development of the smartphone industry - Changed the way people think about smartphones
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