Casio Watches - Market Analysis, Research Methodology and Customers

4318 Words Sep 13th, 2012 18 Pages
CASIO IN LUXARY WATCH INDUSTRY
Market Analysis

The mission of Casio's product development is to create something where there was nothing before - what Casio calls going from "0" to "1." By creating totally original products, Casio strongly believes that they add fun and convenience to daily life and pioneers new cultural trends. "Demand-creating" products, which Casio’s opinion will create markets of their own, produce economic and technological ripple effects. Strategic advantages of Casio in product development are realized by focusing on the following two core areas: 1. Superb product planning driven by accurate assessments of people's needs 2. Superior technologies to make products that meet those needs

Competitive
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Casio also developed the world's first watch with a module that is able to receive radio waves from six transmitters located all around the world.

Casio follows multi-brand strategy and conducts campaigns worldwide to promote G-SHOCK brand and EDIFICE metal watch brands. Women’s watches, Baby-G casual wristwatch for teenagers and young women, and SHEEN metal watches are also actively promoted. All the lineup of watches is constantly enhanced with wide range of designs, from casual to elegant models and unique technological expertise to differentiate products from Casio’s competitors are heavily leveraged. Though CASIO leads the watch industry in technology and innovation, it lacks the capabilities to compete with top luxury brands in fashion, design and premium brand value.

Market Segmentation: Luxury brands are defined as “those whose ratio of functional utility to price is low while the ratio of intangible and situational utility is high.” Pictet report (Nov. 2003) clarifies what luxury watches mean in terms of price. The report distinguishes four different segments: (a) exclusive luxury, (b) accessible luxury, (c) mid-price and (d) low-price as in the table below. Definition | Technology* | Brand Examples | ‘Exclusively Luxury’ Segment | M | Patek Philippe, Breguet | ‘Accessible Luxury’ Segment | M/Q | Rado, Zenith, IWC | Mid-priced Segment |