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9 views5 pagesSwatch Marketing Strategy Analysis
This document presents a case on the Swatch watch brand. It analyzes Swatch's competitive strategy, including its focus on product differentiation, price leadership, and distinctive skills. It also examines the market segmentation of watches and the strategies followed by other brands to compete with Swatch.
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0% found this document useful (0 votes)
9 views5 pagesSwatch Marketing Strategy Analysis
This document presents a case on the Swatch watch brand. It analyzes Swatch's competitive strategy, including its focus on product differentiation, price leadership, and distinctive skills. It also examines the market segmentation of watches and the strategies followed by other brands to compete with Swatch.
Translated by
ScribdTranslationsCopyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
Laica University Eloy Alfaro of Manabi
FACULTY OF ADMINISTRATIVE SCIENCES
SCHOOL OF MARKETING
NOMBRE
NAPA MENDOZA ANGIE
COURSE:
3 'A' MARKETING
SUBJECT:
SALES STRATEGY
TEACHER:
ENG. JACQUELINE LOOR
THEME:
SWATCH CASE
ACADEMIC YEAR:
2017 (1)
SWATCH CASE
1. From a marketing point of view, what is it that really
Do you sell Swatch?
What really sells are costume jewelry, fashion accessories and
an attractive decoration.
2. Analyze the product by identifying the symbolic, the physical, and the
economic. What characteristics support each one? What
What unites them logically?
From the physics of showing a quality product with an incredible
variety of materials, such as plastic, stainless steel among others.
Perfect for large-scale production, affordable for everyone
and available in a wide variety of designs and colors.
From the symbolic, it is a jewel recognized more as an accessory,
It has elegant, emotional, provocative, seductive attitudes
and in accordance with current guidelines.
And the logic that unites them is the components of multiple forms and
sizes, colors randomly selected from a wide range and
mounted in combinations that make each watch unique; the
different styles that convey so many emotions and their prices that
they captivate the middle and upper class.
3. Detail the competitive strategy implemented by Swatch. What is it?
What competitive advantages were based on? What skills?
distinguishing features?
It was based on the following advantages and skills:
Differentiation: Turning the watch into a fashion accessory,
especially seductive due to its characteristics in general, incorporate
intangibles closely linked to the emotional.
Its aim was to develop an affordable watch, based on technology
ASUAG's integrated system that reduced the number of parts. He decided to use
A successful advertising strategy opened 61 of its own stores.
Price Leadership: Since its beginnings, Swatch had the need to
create a low-cost watch that would allow for regaining market share
lost in the market, for this it was essential to innovate in the design, the
manufacturing and distribution achieving international positioning and
product line extensions.
4. Apply segmentation by product attributes to carry out
a mapping of the watch market. Choose the relevant variables for your
understand and create the chart.
This segmentation involves assessing the motivations that impact.
in the purchasing decision, as well as the aspects that at the time
they can limit or condition, in this case it will be due to the attributes
sought by the different types of clients: design, technology, high
quality, price, functionality, brand prestige, and adaptability. For
to be effective, two tasks must be performed. First, the company must
to be able to identify the benefits that the audience seeks in the
product or service (sensory aspect; social aspect, other aspects)
once these individual benefits are determined, the second task
it consists of describing the demographic variables and characteristics,
psychographic, behavioral, and socio-economic characteristics of the members of
each segment. And so the seller finds themselves in a position to launch a
product and a marketing program to reach the target segment
selected. To conclude, we can affirm that what determines the
Market segments are the differences in criteria or importance.
relative that each person attributes to them, but always keeping in mind
that there are other internal and external variables to the individual that
they intervene in the choice of a brand. From this point of view, the
the usefulness of this segmentation is mainly oriented towards the
marketing-mix activities trying to get manufacturers and/or the
dealers emphasize those attributes according to the type of
subject with whom one is dealing.
5. What were the competitive strategies followed by the others?
brands?
The competitive strategies followed by the other brands have been
all the ones applied by Swatch since, as the reading rightly mentions,
Swatch has been the 'flagship', each brand has its own
organization, its own strategy, and even its own building. All this
due to the interests of brand-loving consumers. They
they prefer an environment where the product is not alongside other brands.
6. On what 4 points was the logic of the Swatch launch based?
1983?
Price.-Swatch enters the market with a quartz watch at a price
incomparable and lower than that of the competition.
Quality.-Despite the purchase prices of Swatch watches
sold high-quality products comparable to those of
higher prices.
Innovation.-With its designs and colors, it ventures into markets
juveniles and turns it into an object of innovation in terms of its designs,
materials and colors.
Adaptable style products.-At the moment of innovating with the
manufacturing of the clock the organization turns into more than an object of
to observe the time as an accessory that would be related to the
fashion trends and turns it into a fashion and
variable functionality.
7. What ideas does Swatch base its communication strategy on?
The communication strategy is based on the originality of the product or
better said, the value proposition and the message I wanted to deliver, one
important and passionate, distinctive and authentic, which made the
people felt identified and aligned with the culture
Swatch staff
8. From the point of view of positioning theory, what
What gap did Hayek find? Justify.
Another of the important critical elements for success was the
the positioning of watches, as people felt and believed that
if the watches were Swiss made, they were the best in the world with the
best existing quality, for which Hayek had the advantage of a
positioning and belonging to the low-priced watch group, it
what made him more attractive and of course with his striking styles, his
various designs and creations.
9. Analyze the Swatch product portfolio. Could you divide the line
of products into subsets?
Considering the wide portfolio of this organization and its
structuring is difficult to create subsets or subdivisions in your
products, as they already have established as a fashion accessory
various lines of products, whether by fashion, genders, materials, styles
of life.
It is interesting that its subdivision is mainly based on the
fashion trends and their designs, as it focuses more on being a
an accessory that is just a watch that tells the time.
10. Within the same corporate group coexist brands that apply
different competitive strategies How is this possible?
SHM was responsible for producing different products where each
one was entitled to a private label, this was the strategy that was
applied. Rado, Tissot, Certina, Hamilton. Each of these brands
it delivered a different message and corresponds to a different segment
in the market, for example, Omega was in the segment of the
expensive watches and was meant for successful people in
different fields, important people. Extension was also applied
from the Swatch brand, which was Flick Flack, aimed at the children's sector.