The Birth of Swatch Case Analysing

Only available on StudyMode
  • Download(s) : 549
  • Published : June 6, 2013
Open Document
Text Preview
| | | | | | |The birth of the Swatch | |Harvard Business Case | | | | | | | | | | |

1. In what ways was Swatch different than other watches on the market at the time of introduction? What were the “product forms” within the watch “category” prior to Swatch? Before the 1950’s, The Swiss dominated the watch industry, the Swiss watches represented the quality, status and prestige. Then the low cost competitors appeared and became so popular which meant a threat to the Swiss watches. The Swatch (“Swiss” + “watch”) was the best result for this problem, which was a mass-market product, a low-end quartz watch. But the Swatch was different than other low-end products, because it had a unique message. Swatch was an emotional product, an important part of the customer’s self-image. They could add genuine emotion to this product, attacked the low-end competitors with this strong emotional message that is why they could succeed. In the watch market, there were low-priced, mid priced and high-priced watches. Before the Swatch, Swiss watches had been only in the high-end category. But the Swatch competed with the low-priced quartz watches, like the Timex or the Japanese companies such as Hattori-Seiko and Citizien.

2. Explain how each of the elements of the marketing mix was utilized to create the brand. Include: Product design, Product line mgt and training, Promotion (media, designers, advertising---traditional vs.non traditional.) Retail strategy, Brand associations, Pricing strategy What positioning strategy did Swatch use? How was it created? The product design of the Swatch watches was unique, and although they were made of plastic they featured specially designed in a youthful, provocative, stylish and sometimes unpredictable style that used brash, intense colors. Costumers had a wide range of choice, models for every occasion, for every taste and personality. The design of the product represented the emotional message, that the Swatch watch was important part of the customers’ selves-images. The Swatch Design Lab is designed 2 collections per year with watches in 70 different styles per collections. The 2 collections per year meant that the products were changed so rapidly and new models hit the market on an ongoing basis. For example in Italy where people are keen on fashion, the market exploded. In order to selling popular designed product, the company hired artists, architects and industrial designers to create them. They rotated the designers through the lab, and they usually stayed at least 6 month to 2years in order to guarantee the variety and creativity and to avoid to be getting tired. Sometimes they produced limited editions (like the Veggie line)...
tracking img