Presentation on theme: "Re-capturing the market"— Presentation transcript:
1 Re-capturing the market The SWATCH caseRe-capturing the market
2 The firmCompany name : SWATCH SAHead Office : Jackob-Stämpflistrasse CH – Biel 4 SwitzerlandProduct : watches, jewelleryWebsite :Mission :to reveal to others who we are and why we are doing what we are doing through a watch
3 Watch market : the crisis during the 70’s CAUSES : wrong production and selling choicesthe Swiss decide not to adopt quartz technology that themselves had invented Japan and Hong Kong produce great quantities of quartz low cost watchesSOLUTION : the merger between the two main watch swiss companies Ssih (Omega) and Asuag (Rado, Longines and Ebauches ) SMH - Swiss Corporation for Microelectronics and Watchmaking Industries Ltdrenamed in The Swatch Group
4 Watch market : sales volumes at merger time Total sales volume : about 500 million units Segments of the market (million units) :
5 SMH : mission and strategies Corporate VISIONto bring the swiss watch industry back toa leadership position in the marketFirm MISSIONto go back to produce profits through increasing salesSTRATEGIES :rearrangement of organizationcreation of a specific product for the market’s low sectionreplacement of already existing brandsTARGETto have a leading brand for each sector
6 The SWATCH watch history - 1 At the BIRTH : an injection molding plastic watch with a quartz movement, destined to a low level market’s segment an ugly and boring collection with dull and dark colours a FLOP !!! The EVOLUTION : the watch as a new visual message revealing “who you are and why you do what you do”
7 The SWATCH watch history - 2 The elements that built up the “Swatch message “ high quality, low price, provocation, lust for life a success ! Launch in Italy : 1986 Present production : around 140 different models a year a great part designed in Swatch design lab in Milan Models : classical, scubas, chronos, automatic models, metal case watches
8 Production and strategic choices The choice of verticalization in order to preserve strategic independence and freedom .The Swatch Groupcentralizes its production in Switzerlandproduces components required to manufacture a watchis the world’s biggest finished watch producerResearch of electronic movements, their production and assembly are exclusively carried out by ETA - Manufacture Horologère Suisse ETA SA entirely owned by The Swatch GroupThe business organization is otherwise the moredecentralized as possible :each brand has its own organization , its ownmanagement and holds total control of design,marketing and communication
9 Organizational choices Top management :CEO - Chief Executive Officerwho fits straight and openly in the whole firm groupOrganization of work : is based on PROJECT TEAMEnlarged Group Management BoardFormed by 16 membersExecutivesdirectly responsible for all Business UnitsRestricted Group Management Boardthe highest management authority of Swatch Group
10 The marketing mixPackaging a simple transparent plastic box Promotion campaign on television and on printed matter, creation of events , presentation of peculiar models in places destined to different use, sponsoring highly technological and ecological matter initiatives Distribution through one brand shops and usual sale channels (jeweller’s shops, department stores) Market segmentation traditional clients (including metal case watches and chronographs) and greater attention to female public creating smaller models (the Lady Lady collection), diversifying packaging according to models
11 The market share Low cost high quality product Considering the product life cyclethe Swatch watch is going through amaturity phaseTo the Swatch Group swatch watchrepresents a real cash cow
12 TrendsThe most characterizing feature of Swatch watch is its evolution: born as a simple coloured plastic quartz watch made out of 51 pieces, it acquired more functions with time: chronograph and alarm including, underwater and wall watches, up to models that have nothing to do with the initial technologies but refer to the most famous swiss watch-making traditions. Swatch Group is now showing a greater attention to different world cultures. Artists from all over the world were asked to work for its collection dedicated to art: Australia, Africa, China, United States, Europe and Russia. This lead Swatch to become an expression of messages coming from different and far away cultures. These market’s trends will probably lead the swatch evolution in the upcoming years.
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