The Birth of Swatch Essay

Decent Essays

The Birth of the Swatch

The Swatch was well-known watch in the history of the watch industry. When it came out at first, it was quite sensational, resulting in more sales than it expected. Since the Swatch had grown strong in the watch industry, it could maintain its reputation and there were more opportunities to success in this industry. In order to find out its success strategies or factors, the following shows its Strengths and opportunities. In addition, its weaknesses and threats could reflect considerations on this future forward.
SWOT analysis

Strengths | Weaknesses | * High Consumer loyalty * A clean price * Unique designs * Innovations in automation and assembly * Promising designers were adopted * …show more content…

Swatch spent approximately 30% of the retail price of its watches on advertising as its marketing plan. This was about two times high compared with the industry average. They also were able to use unique marketing events and advertising schemes to promote Swatch, emphasizing on below-the line activities. It also had decentralized marketing and centralized manufacturing systems.
Additionally, the company created the Swatch collectors Club for its loyal consumers. The Swatch street journal, a magazine that included all information about Swatch in trends, was produced. It also chose a nontraditional retail approach, creating unexpected points of purchase. For example, it launched the Veggie Swatch line in fruit and vegetable market. SMH pursued shop-in-shop systems or miniboutiques so that consumers could only focus on the Swatch products, not displaying its products with other watches.
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

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