Upload
dinhque
View
219
Download
0
Embed Size (px)
Citation preview
What was the answer?
• A low-cost, high-quality plastic watch – low cost means high volume
– high volume permits economical automation
– automation reduces labor costs (<10% of total costs)
– with low labor costs Swiss can produce the entire product themselves (vertical integration)
– do not have to outsource for parts, they can maintain strategic independence
j brands
W n Attributes
10 10
i (b) Inexpensive 6 9
SWi =1 i = 1
S i = 1
Wi Xij
Importance eight Swatch Timex
(a) Tells Time
(c)
i = n
i = nAttitude (j) =
The SMH ("Swatch group") product line
Breguet Blancpain Glashutte Original
Jaquet Droz
Leon Hatot Omega Rado Longines
Union Balmain cK Tissot
Hamilton Certina Endura Mido
Flik Flak Swatch CY3 Les Boutiques
Brand identity and brand image
• What was the brand image Swatch intends to portray? –
–
–
–
• What image do you have of Swatch watches? –
–
–
–
• Brand extensions? –
–
Psychographic segmentation of U.S. consumers
• 6-10 Consider it "cool", because big kids have it (42% awareness!)
• 11 –15 ("teeny boppers") provides sense of identity
• 11 –15 ("young rockers") high awareness, but represents t.b. lifestyle
• 11- 15 ("students") Swatch too wild for them, but they might buy it to fit in
• 16 –22 ("rockers") like the price, but dislike the male model geeks
• 16 –22 ("preppies") prefer a dressier watch
• 16- 22 ("trendies") hate it; "fast food of time pieces" (73% wear no watch)
• 22 –32 ("transitionaries") like its durability, disposability, price
• 22 –43 ("older casuals") watches are used to tell time (4% awareness!)
• 33- 43 ("weekend hippies") teen image (high awareness, but 43% have never seen a Swatch in real life
Market Segments
• Swatch was part of a multi-segment strategy 8
42
450
> $400
> $75
Omega Longines
Swatch
millions pricesold
per year