Swatch Report

After a successful launch of the LG Watch Phone in Europe, LG Electronics Canada, Inc. is preparing to introduce The Watch Phone to Canada. As an assistant marketing manager I will aid in the development and execution of a niche marketing plan that blends with LG’s 51 years of brand equity while increasing market share in consumer electronics. No other watch phone currently exists in the Canadian market. The market is saturated with mobile phones and portable electronic devices that have 3G capability, a touch screen interface, MP3 player and video calling. LG must entice consumers to switch from their handsets to the LG Watch Phone and generate sales from new markets. Potential customers for this product will be

| Raymond Weil, a European manufacturer of premium watches, is trying to compete in the U.S. market with other fine watch brands. Its corporate website contains the following notice: "RAYMOND WEIL products are sold by official dealers only. The RAYMOND WEIL International Guarantee is offered exclusively to consumers in possession of a watch purchased from an official dealer…." In the United States, Raymond Weil watches are not available in every jewelry or department store. For example, in large cities such as Boston, Washington, D.C., and San Francisco, there are only three retailers in each city that are official Raymond Weil dealers. Raymond Weil seems to be using:

When Banneker was 22, he borrowed a pocket watch from a neighbor, took it apart, drew a picture of each component, put it back together, and then returned it. Banneker then proceeded to carve, out of wood, enlarged replicas of each part. Figuring out the proper number of teeth for each gear and the necessary relationships between the gears, he made a working wooden clock that kept accurate time and struck the hours for over 40 years until it was destroyed in a house fire.

The organizational culture of Bremont, is influenced by the communications. Communications in this case, influence Bremont, through the events that have happened in both of the brothers lives, and a love for aviation to inspire the interest of making luxury wrist watches. The brothers since had a career, in restoring vintage aircraft. They were inspired, by their father’s passion of engineering and watches. These things all tied together, and the fact that the wristwatch was invented for pilots, influence the culture and background for Bremont, making wristwatches, also with airplane parts. What could be taken from this is that, aviation had influence the behavior of this business to start making wristwatches, particularly those watches made with certain airplane parts.

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

The clock had two parts; one for the minutes and the other for seconds. Not only did it have the minutes and seconds it also kept track of the moon phases. It worked by gears and weights so it would function correctly. He also added rocks and diamonds to give it some flare.

3. These fashionable brand watches are known to be tough and this is the third reason why consumers obtain branded watches. It is a considerable aspect to be aware of

In the Jura Mountains village, Switzerland, George Edourd Piaget created the Earl brand in 1874. He sketched the first strokes of what, decades later, was to become an inimitable signature in the world of luxury and fine watchmaking (Piaget, 2016). Piaget began his work on his family farm and provided top of the line jewelry with his designs. His son Timothée assisted the company as George began to grow older, nonetheless, he still continued to carry on the tradition of quality watchmaking. It was 1943, when the brand was registered which helped shape the company into what it is today. If Piaget would have decided not to register the label, it would not have become as successful as it is. In 1957, the Manufacture introduced the famous ultra-thin

Timex has been the industry leader since 1960. In fact, Timex’s share of the Canadian and US watch market was 50 percent by the late

The firm does not have to deal with the pressure of shareholders who require short term benefits in order to show a profit from their investments through the redistribution of dividends. On the contrary, Rolex got the opportunity to reinvest the benefits in the company to improve distribution and after-sale services and to increase research and development. Rolex employs about 6000 people worldwide of whom 3300 employees are based in Geneva, setting Rolex as one of the main employers and tax payers of Geneva. They are selling around 750000 watches each year for an estimated turnover included between 2.5 and 3 billions, Rolex is the first brand of the luxury watch industry in term of sales (factory price). Moreover, Rolex possesses 22 subsidiaries companies spread all over the

The Swatch logo incorporates the swiss flag which signifies the country of the watchmaker. There are three main colours to the Swatch logo which are black, red and white. Those three colours are often seen as something important which should get your attention in a way it shows it’s dominance, excellence and powerful reputation. By studying the logo it incorporates a custom typeface which is simple and bold. The logo is powerful enough without making it to

The launch of the Apple Watch fits a similar mold. The concept of the “smartwatch” had existed long before Apple introduced it, from the very early forays of wearable manufacturers Fitbit and Pebble, to later Android Wear products like the Samsung Gear and the Motorola 360.

technology such as Swiss movement. These watches are models that make a great investment and

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.

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