The Birth of the Swatch - HBR Case Study. 1. IE EMBA – S2 – Raffy Karamanian– Oct 2015 The Birth of the Swatch Sales & Marketing Management – IE S2 IE EMBA – S2 – Raffy Karamanian – Oct 2015. IE EMBA – S2 – Raffy Karamanian– Oct 2015 Success & Differentiation Why was Swatch so successful? In what way was the Swatch different then any watch the industry had ever seen? Product Quality ProductPrice Luxury Product.

• The Birth Of Swatch

The Birth Of Swatch Pdf Files. Other Files Available to Download. Birth position swatch guide was funded through this partnership. The Birth Of Swatch Pdf Writer. Blofeld`s cat a Persian. On Her Majesty`s Secret Service. Telly Savalas. On Her Majesty's Secret Service (1.

Swatch delivered a innovative product. Delivered a new perception to watches. High quality product with low / fixed pricing. Large collection – became fashion item.

Large network of distribution. Leveraging on Swiss skills Mass Product. 2,500 Swiss Watchmakers (Luxury). Considered luxury & financial investment. 1945 – held 90% of world market share.

Sold through jewellers & up-scale stores Nicolas Hayek “I decided, we could retreat no longer. We needed at least one profitable, growing, global brand in every segment – including the low end.”. Low priced watches (mass market). Considered almost disposable. 1983 – Held 85% market share (units). Sold through low priced outlets, etc. The information on the slide has been obtained from HBS ‘The Birth of Swatch Case’.

The visual representation of the companies in term of price vs quality is not accurate and has been placed for presentation purpose only and to reflect Swatch’s adopted strategy. RolexBeume & Mercier Omega Longines Piaget Movado The Traditional Swiss Watch makers Times Hattori- Seiko Citizen Casio Seiko The American, Japanese, Hong Kong, etc. Efficient Strategy Swatch Competitive pricing & Larger target segment Leveraging on the quality of the Swiss Unique Message & Genuine Emotion Swatch – (Swiss + Watch) Price Focused Non Strategic Direction (low quality vs high price) The following quadrant reflects product offering based on Price vs Quality. This representation visualizes the strategic direction adopted by Swatch, their key success factors and reflects its differentiation points from other watch manufacturer worldwide.

Q1. IE EMBA – S2 – Raffy Karamanian– Oct 2015 The Marketing Mix What elements of the original Swatch marketing plan were most critical to the brand´s success? Do you agree with the original product strategy? The channel strategy? The promotional strategy? What about the pricing strategy - what does Franco Bosisio mean when he says that the Swatch is sold at a “clean price”? Given the huge demand for Swatches (particularly for certain models), did the company make a mistake in not raising the price for some of its styles?.

The information on the slide has been obtained from HBS ‘The Birth of Swatch Case’. Swatch picture has been obtained from google images. Product Strategy. High quality.

Low price. Fashionable Items. Large collection of choices Channel Strategy. Shop in Shop.

Mini boutiques. Non traditional POS (limited). Free standing mono-brand location (flagships ) Promotion Strategy. 30% - double the industry average on advertising. Unique style / fashion / trendy / etc. Unconventional methods (ex. Germany).

Joy of life Pricing Strategy. Very competitive in market. Fixed and ‘Clean’. Rounded figures and no fluctuation based on demand. Low priced in comparison to product coming for Swiss The ‘Swatch’ strategy is certainly positioned as innovative plan. (1) Leveraged on Swiss standards. (2) It holds a unique message and genuine emotion.

(3) Its delivery of unconventional promotional campaigns backed by a strong distribution strategy (available in almost every country in the world). (4) Crafting a pricing strategy against the basic fundamentals of economics (supply vs demand) can be considered a ‘Clean’ Pricing Strategy Masterpiece Q2. IE EMBA – S2 – Raffy Karamanian– Oct 2015 Differentiation & Purchasing Behavior Prior to the introduction of the Swatch, what kinds of watches were popular among consumers? In what way was a Rolex different from a Timex, or from a gold-plated Seiko? How did consumers make buying decisions?.

The information on the slide has been obtained from HBS ‘The Birth of Swatch Case’. Luxury Product Mass Product. High end Swiss made watch holding (legacy, history, and craftsmanship). Limited quantity handmade piece of jewellery; built with care and precision.

A luxury product and statement. Distributed through luxurious channels / department stores – jewellery stores. Passed on from generation to generation. RolexBeume & Mercier Omega Longines Piaget Movado Luxury Products (e.g. Rolex) Times Hattori- Seiko Citizen Casio Seiko. A functional watch / seasonal watch – no cultural / historical legacy. Mass produced, affordable, and targets everyone.

Daily usage – non-luxury. Distributed through variety of outlets and stores. (No high end jewellers).

Disposable Mass Products (e.g. Timex, Seiko Gold) VS. Buying Decision.

Price of jewellery. Luxury product / statement.

Belongingness to the prestige segment. Financial Investment. Timekeeping instrument. Affordable and functional.

Disposable items. Trendy and fashionable Until the 1945, with 2,500 firms, the Swiss dominated 80% of the world’s watch production. Following 1951, affordable mass produced watches penetrated the market mainly from the US, Japan and Hong Kong. In 1983, the Swiss re-joined the market through Swatch.

Q3 Product Quality ProductPrice Efficient Strategy Swatch Price Focused Non Strategic Direction (low quality vs high price). IE EMBA – S2 – Raffy Karamanian– Oct 2015 Changing Thoughts – Other Products In many ways, the Swatch forced people to think about watches in a way they had never thought before. Can you think of other products in other product categories that have done the same thing?.

Pictures obtained from google images Ford – Model T The I phone IKEA Apple Watch I resemble it to Ford due to its affordable pricing strategy, unique message, and genuine emotion I resemble it the I-Phone by introducing innovation, quality, and design, to the mobile industry. I resemble it to IKEA by delivering minimalistic concept, high quality vs low price from a relatively expensive country (Sweden) I resemble it, because I feel history is trying to repeat itself. It feels like its gonna be the next Swatch. Wide product variety.

#Price #Message #Emotion #Design #Quality #Innovation #Fashion #Price #Quality #Swedish #Variety #Fashion #Design Q4 I have not identified a single product holding Swatch’s revolutionary strategy (as a complete package); However, I have listed 4 products from different industries that share similarities in their approach to consumers similar to Swatch’s disruptive direction. IE EMBA – S2 – Raffy Karamanian– Oct 2015 What will be your next Model? Thank You – EMBA – S2 – Raffy Karamanian.

Access to case studies expires six months after purchase date. Publication Date: June 08, 2004 In 1993, the Swatch is the best-selling watch in history. Traces the history of the watch industry up to the early 1980s, when the Swatch was introduced. Describes the various elements that made the Swatch different from any watch the industry had ever seen. Also includes a discussion of SMH, which controls Swatch, exploring how the company has managed the Swatch brand in the context of its brand portfolio (nine global watch brands in total.). When you place your first order on HBR.org and enter your credit card information and shipping address, 'Speed-Pay' ordering is enabled.

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The Birth Of Swatch

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