Case Study: Swatch and the Global Watch Industry International business, repositioning strategies, marketing, management issues, and recommendations for growth.

The background of this paper we need to mention is that West Coast Fashions, Inc. (WCF), a large designer and marketer of branded apparel announced a strategic reorganization calling for a divestiture of certain assets, and one of the divisions it intended to shed was Mercury Athletic, its wholly owned footwear subsidiary. John Liedtke, the head of business development for Active Gear, Inc. (AGI), a privately held athletic and casual footwear company, contemplated an acquisition opportunity of Mercury that would significantly improve his business. So, he wanted to evaluate this opportunity.

CleanSpritz, a subsidiary of MJ Brenner is a manufacturer of cleaning supplies whose target market is threefold. The three industries are as follows: industrial products, home cleaning products, and auto cleaning products. Stateside revenue for their product line reached $53.76 million in 2011. However, since 2008, annual sales have been on the decline by an average of 7.5% annually (Gold, 2015). As a result of their declining sales, MJ Brenner VP of strategy gave CleanSpritz’ marketing team, led by Claire Beaton, six months to devise a plan to revive their sales strategy. Next, we will review a SWOT analysis of

The push/pull strategy involves creating demand from two aspects; push strategy involves the demand being created by the manufacturer’s distributers, and pull relates to the manufacturer creating demand via their own promotion techniques (Frazier and Summers, 2011). The brand will follow a pull strategy because it is envisioned that demand will be created through advertising and an effective, unique selling point. This is good because through a push strategy, it is sometimes required to distribute a higher volume of goods, which is better related to a mobile phone industry with a larger audience, unlike the niche, disabled market. Another benefit of this is that because the developing brand is unheard of an unproven; preventing stock piling of products if they are not sold, saving money. Although, a pull strategy will require a large investment for advertising, it is estimated that the cost of production and potential stock piling outweighs this in fiscal terms. Relating to the objectives, the pull strategy will aid the

One of the primary change in strategies would require pruning Omega’s product lines to make it more coherent and to eliminate any potential intra-firm competition. Typically, the lower end models need to be pruned so that it could be positioned as a more effective Luxurious Brand to compete directly against other Luxury Brand watches. The prevention of any overlapping with sub-brands will ensure that there is no potential risk to the dilution of brand image as well as reduce the risk of cannibalization of the current product lines. This will also help in uplifting the overall brand image of the Omega brand by withdrawing a number of Omega’s low-priced models thereby boosting the band profitability which will ensure that there is enough opportunity for the improvement on brand margins - a key factor in reducing the price differences with Rolex. Another underlying argument is that this process will enable the exclusivity

​Wrist Wearables are a fairly new market segment and they are mostly only marketed to a niche audience. With less than half the U.S. population with any knowledge of the existence of smart wearables and half of that population even considering buying one, the marketability for this technology appears slim. Although, the potential for brand awareness, along with customer loyalty, is huge and a beneficial opportunity for any company to get their hands on.

In the 2nd stage of the report the branding strategy of SWATCH & TISSOT watches on the basis of their Store Operations Management have discussed. The store design, display, assortment, ambience etc have discussed.

Burberry need to scan their market segments in order to gain the most competitive advantage. Pestle analysis looks at the political, economic, social, technological, legal and environmental factors that affect an organisation providing a ‘comprehensive list of influences on the possible success or failure of strategies’ (Johnson, Whittington, Scholes, 2011). However, the three main changes that focused on in this essay are Economic, Social and Environmental factors. The economy within China is currently very stable; being a part of the 4 fastest growing economies in the world (BRIC: Brazil, Russia, India, China), it has made large strides in recent years in the business and industrial sector. , the country

In essence, branding is all about differentiation and consistency. It always has been able to effectively establish an emotional relationship with customers. They compete with each other with the quality of watches that they make for example; Rolex provides a variety of choice for their customers and provides their wants and desires. This includes; by making their watches handcrafted, and putting diamonds into their watches to make it more luxurious etc. Another way for them competing is level of service provided. If a customer comes to Rolex they will ensure that they provide insurance and great level of customer service. This will increase repeat-purchase and brand loyalty among their customers. Rolex is considered untouchable in its position as the world’s leading luxury watch brand both in terms of industry prestige and its

In the 2006 the current CEO Angela Ahrendts joins the company replacing Rose Maria Bravo, who managed to greatly expand the Burberry market share in the US.[6] Ahrendts modernizes every aspect of the company’s behaviour and positioning itself on the market having chosen an innovative five year strategic business plan.

team designed watches with focused distribution in specialty surf, skate, snow, and fashion stores. It

Luxottica Group are the world’s largest eyewear company, based in Milan, Italy. Their long-term corporate strategy is to create the best possible eyewear to satisfy its clients, and expand their market share by growing its various businesses, whether organically or through acquisitions1. The Company will continue to focus on the following strategic pillars: vertical integration, design and technological innovation, brand portfolio management, market expansion, financial discipline and the development of talented and committed employees1. Building strong brands that create enduring relationships with consumers is key to how Luxottica plans to sustain its business in the future.

What is interesting in this market is that there are no clear leaders. Even though each company’s goal is to make the more profit as possible, we can’t define any leader since they have different strategies and objectives.8 [ (Tower) ] For example, Patek Philippe’s core ideology is to have the most prestigious brand and to make the most expensive watch as possible, and target the most prestigious people which is a really niche market. In comparison, Rolex’s purpose is to be a more accessible luxury brand and make the most sales as possible. It is difficult to compare them in terms of success, Rolex sells more but Patek has a much higher reputation.

Middle class is booming worldwide and with prosperity comes consumers ' desire to show that they are doing well, therefore super brands like Danish Pandora and British Signet also called “category killers”, has stormed the global jewellery market where there is money to fight for. Pandora competes in affordable luxury segment, which in 2009 totalled 83 billion USD, equivalent to approx. 57% of the total market for fine jewellery. Affordable luxury still gives consumers the feel of stardust.

Those strategies helped Swatch lead this market in the watch industry, selling 26 million swatches in 1992 and reversing SMH’s fortunes. Despite its success, there are some concerns whether the success of the Swatch would continue. Still, the world watch market was highly fragmented except Citizen, Seiko, and SMH. There were numerous watch competitors in Switzerland, Asia, and Unite states. The market share of Swatch was still relatively low in the single digits due to

Samsung is one of the world’s premium electronics manufactures. The estimated value of Samsung brand had risen from US$6.37 billion in 2001 to US$10.85 billion in 2003. A major factor behind this impressive growth had been Samsung’s effort to redefine itself as a vendor of cutting-edge, “gee-whiz” consumer technology. Samsung believed that repositioning the brand is a vital to the company’s future success.