Time of what you make it

1. Story of time: Swatch brand

- Swatch is a Swiss watch company (Swiss + watch)

- First went on sale in 1983- Has been called the most successful

wristwatch of all time- There are over 600 Swatch stores world

wide

2. Swatch’s evolution

- Swiss Behavior: Proud/Arrogant of watch “Made in Switzerland” of quality watch.

- Earlier 1980, Swiss watch industry witnessed dropped sales due to fierce competitions.

- The founder Nick Hayek reconstruct bad companies (ASUAG and SSH) to Swatch with repositioning the brand.

Value: - Provocative: use bold designs and colours – never used

before- Joy of life: selling emotional products- Personal culture

3. Swatch’s marketing strategy integrated in local market

- Broad market presence: one profitable brand in every segments, low price initially.

- Vertical Integration – build and assemble the low priced quartz watch in Switzerland

- Collections were replaced rapidly, no repeat production runs

- Due to high cost of craftsmanship, their strategy of low cost: use cheap plastic, mass production in a fully automated way with fewer parts.

4. Swatch’s marketing strategy integrated in international market

- Target customer: teenager 15-35 year-olds- Positioning: Swiss watch with high quality and low price

4Ps: - Product: Colorful design to match the need of youngsters,

high frequent of launching new products- Price: Generally lower for teenagers to afford buying- Place: Swiss shops, Department stores, Retail store in

shopping malls.- Promotion: Appear in fashion magazine to attract

entrance of youngsters.

5. SWOT of Swatch

- Low price Swiss-made- Diversified product

variance, Customized offerings

- Vertical integration

Strength Weakness

Opportunity Threat- Low reaction among

watchmaking in digital trend

- Joint-venture with Tourneau

- Counterfeit goods. - Countined price

increase of raw material

- Vulnerable to customer trend/mood

- Limited presence in US.

6. Competitive Mapping vsworld/Swiss brands*

Technique

Design

Prestige

Accessible luxury

7. Reflection of country culture lead to Swiss excellence

-- Logo: use Swiss flag to show Swiss quality

- Brand name: Swiss + watch

- They realised that at similar prices, customers would identify Swiss watches as higher quality than the competitors

8. Level of Swiss excellence compared to German’s

-- Historical contributions:

Swiss watch industry supplied parts for Germany’s watch industry. German found some famous Swiss such as Rolex, Chopard.

- Market relevance: around year 2000 the Germany industry can reach Swiss expertise levelGerman watchmaking focused on in-house manufacturing and movement makingSwiss watchmaking – Jewel like

- Watch making competency: high volume - 20.9billion CHF (Swiss) compare to 1.7billion euro (German). Swiss industry is more structured/concentrated.

9. Country-of-origin perception between Swiss and German

-- Swiss perception:

prestige with long industry’s historical livelinessDetailed, sophisticatedCountry manufacturing brand – watch

- German perception: concentrates on accuracy and reliability creating solid practical time machines Country manufacturing branding – car, machinery, precise tool