...of disaster when the Swatch had been introduced 10 years ago; the phenomenal success of the Swatch was considered by many to have been a key factor in its resurgence. At the management level, much of the credit for the turnaround had been directed toward Nicolas Hayek, CEO of the Societe Suisse de Microelectronique et d’Horlogerie (SMH), which controlled nine global Swiss brands including Swatch. Over the past 10 years, Hayek had led the way for the success of the Swatch by committing SMH to a business strategy that in many ways defied industry wisdom about how global watch companies should be run. This strategy was based on a strict commitment to vertical integration (the company assembled all of the watches it sold and built most of the components for the watches it assembled), decentralized marketing (each of SMH’s nine brands had total authority over product designs and marketing), and portfolio management (SMH’s goal was to have a competitive brand in every price segment in the market). Industry Background Prior to the 1950s, watchmaking was a craft that required the skills of...
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...significant role in supervising the merger and in helping to lead the newly-formed company forward. With the formalities of the merger completed, in December 1983, the new company and its consultants were confronted with a number of new issues. The company faced restructuring challenges and management shifts. But more importantly, it still faced the foreign competition that had decimated the Swiss presence in the inexpensive and middle-range watch segments—the Swiss no longer accounted for any of the inexpensive segment and continued to lose what remained of their share in the mid-range—now less than 10% of the world market. The consultants’ comeback strategy hinged on two things: first, on a revitalization of flagship brands like Omega, which were being used to prop up the Swiss position in the middle-range market segment. Second,...
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...The Swiss accounted for 80% of the world’s total watch production and 99% of all U.S. imports. 1951-Emergence of Low Cost Competition. U.S. Time introduced a line of disposable watches bearing the Timex brand name. Timex was selling its watches through a variety of low-priced outlets such as drugstores and discount houses. By the end of the 1950s, one out of every three watches bought in the United States was a Timex, 1970 –By 1970’sTimex was selling more watches than any other manufacturer in the world. 1970’s- During the same time, several Japanese companies like Hattori-Seiko and Citizen—had taken over the Asian market and were trying to cover up Europe and North America. As a result, the Swiss share of the global market declined, from 80% in 1946 to just 42% in 1970. The Introduction of Quartz Technology * Made use of quartz and integrated circuits * Provided Accuracy, more sophisticated functionality, more features like day & time·, Digital display, Analog watches. * Cheaper in cost of manufacturing. * A wide Price range, starting from $8 to $20, today even below $5. * Introduction of analog watches that used gold or silver plating to mimic the traditional appearance of their more expensive, Swiss-made mechanical counterparts * By 1984, more than three-fourths of the watches sold around the world were based on quartz technology. * By 1986, Citizen had become the overall global leader in both movement and finished watch production volumes The Swiss...
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...BELJOHN SEBASTIAN THOMAS HISTORY OF WATCHES 1485-Leonardo-da-vinci sketches a fuse for a clock. 1500’s-Germeny-Peter Henlein creates the first pocket watch. Early 1600’s-Forms watches became popular. 1735-watch makers began using enamel on the dials. 1820-Thomas prest registers a patent for self winding watch. 1914-Eterna introduces the first wrist watch with an alarm. 1929-First anti magnetic watch created by Tissot. 1999-Casio innovates with the first wrist watch with a built in global Positioning system. Before wrist watches become popular in the 1920’s, most watches were pocket watches, which often had covers and were carried in a pocket and attached to a watch chain or watch fob. Indian watch Industry began in the year 1961 by HMT (Hindustan machine tools ltd). INDIAN WATCH INDUSTRY @ GLANCE The first Watch model manufactured by HMT was JANATA Model. HMT was the leader in the market till TITAN Came. Indian Watch Buyers are very price sensitive. The major barrier to the entry to Indian watch market is to build a brand image and price competitively. SEGMENTATION OF WATCH INDUSTRY SEGMENTATION BASED ON PRICE OF WATCH Mass (Rs.350-600), INDUSTRY Popular (Rs.600-900), Premium (Rs.900-1500), Super-premium (Rs.1500-8000) Connoisseur segments (above Rs.8000) BASED ON USER CATEGORY SEGMENTATION (Cont…) Men’s watches Women’s watches Youth watches Kids watches Sports watches Titan INDIAN BRANDS MAJOR PLAYERS...
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...Prepared by Batch Ref. No. Prepared on Manohar M. M. Iyer XMBA – 19 VAS2010XMBA15P005 December 20, 2012 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 2 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand Contents 1. Disclaimer note: ........................................................................................................................................4 2. Introduction ..............................................................................................................................................5 3. Brief understanding of the case study .......................................................................................................6 4. Analysis of Indian Consumer Behaviour & Premium watch purchase decision ...........................................7 5. Building the XYLYS brand in India...............................................................................................................8 6. End note: ..................................................................................................................................................9 Prepared by: Manohar M. M. Iyer, VAS2010XMBA15P005 Page 3 Indian Consumer Behavior & Premium watch purchase decision: Gist of Case study on XYLYS Brand 1. Disclaimer note: This document is prepared purely...
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...Ref. No.: BRM0011 Watches are available in different varieties with most of them performing multiple functions. There are analogue watches, digital watches, LCD watches, quartz watches, LED watches, mechanical watches, jewel watches and diving watches. Stream Watches (Stream) is one of the most popular diving watches sold across India. Currently, Stream is very much concerned about its ability to retain its position in the face of strong competition from other national brands. Even though the watches manufactured by Stream are of high quality with a wide variety of functions and reasonable prices, they are not able to make as much profit as they should. Moreover, the weak economy and emergence of severe competition from several large brands has directly affected Stream’s profits. This case study was written by RagaSravanthi Vemulavada under the direction of Dr. V. Srinivas, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was prepared from generalised experiences. © 2009, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. Do No t Watches designed for underwater diving are popularly known as diving watches, which can remain water resistant with a depth range of 50 metres–300 metres as indicated on the dial. Generally...
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...Brand association: It means what resides in the customer’s deepest mind. Brand association is anything which is deep seated in customer’s mind about the brand. Brand should be associated with something positive so that the customers relate your brand to being positive. Brand associations are the attributes of brand which come into consumers mind when the brand is talked about. It is related with the implicit and explicit meanings which a consumer relates/associates with a specific brand name. About Rolex, if we consider the upper portion then the brand association will be: 1. Watch. 2. People. 3. Sports. 4. Successful. 5. Highest quality. 6. Reliability. 7. Durability. 8. Serviceability. 9. Convenient. 10. Unique. 11. Prestige. 12. Word of mouth publicity. 13. Price. 14. Luxury. 1. Watch: If any customer think about the brand Rolex, the picture will be spotted in his or her mind is watch, which represents aristocracy. It is being fixed in their brain or even soul, because the brand Rolex is representing themselves as a brand of watch for many year. 2. People: Different types of people use it to reflect their strength. Top athletes are wearing it to show their toughness, robustness and skill. Rich and high class people wear it to show their wealth and class. Man also use it to show their manliness. 3. Sports: Rolex are associated with different kind of sports like Golf, Sailing etc. So, customers also think...
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...Introduction: Smartwatches will be the new technology that changes the world. The biggest thing is that it is wearable and the first of its kind. It’ll be one of the first affordable wearable smart devices. It will also change the way we communicate in many ways. There are several impacts of new technology and smart devices, smartwatches are changing the world as we know it. Summary of Key Findings: Smartwatches are one of the first series of smart devices that is wearable. It’s not big or heavy like other devices. Most devices are hand-held or bigger, but with smart watches you can wear them on your wrist and it is no bigger than a watch. This can free your hands and still carry on a conversation. Smartwatches are going to change the way we communicate. You can make phone calls from your wrist and you can send premade texts and talk just like a phone. With smartwatches you can call anyone from your wrist. You can take pictures and save them to your devices from the smartwatch. You can also do video calling all from this little wrist watch. It’s changing the way we can communicate and it cost effective. Smartwatches are one of the first affordable wearable smart devices. Most smart devices run from $400.00 or more. The smartwatch is very reasonable it starts from $100 to $300. You can get them from most electronic stores like Best Buy. It is small, affordable, and caries most of the same features as your phone. Conclusion: Smartwatches are changing the world...
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...outstanding success of a Swiss watch manufacturer during the 1980s was the result of a careful and well-executed marketing plan, brought on by necessity. For years the Swiss were world leaders in the watch industry. In 1974 their worldwide market share was 30%. Then the Japanese actively began to produce and market quartz watches, which the Swiss viewed as a passing fashion. Quartz digital watches were, however, no fad and by 1983 the Swiss share of world markets for watches had fallen dramatically to 9%. The Swiss manufacturer SMH carried out extensive research in its watch markets and carefully analysed patterns of consumer behaviour. Marketing experts advised the company that a turnaround was possible if an inexpensive, good-quality quartz analog watch could be developed, since the market was saturated with digitals. Gradually, a marketing plan was devised and implemented resulting in the introduction of the Swatch in 1984, which has since revolutionised the world watch industry. Based on their extensive analysis of consumer behaviour and lifestyle, SMH adopted a strategy that completely changed the concept of a wrist watch. Watches were to be a fashion accessory first and a watch second. They would also be analog rather than digital. Product planning developed a distinctive quartz analog watch in a wide range of fashionable colours and designs. New models were introduced rapidly and older ones quickly dropped. Because Swatches were sold as fashion accessories...
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...9 -5 1 2 -0 5 2 REV: FEBRUARY 10, 2012 ROHIT DESHPANDÉ KAROL MISZTAL DANIELA BEYERSDORFER The Swatch Group Most people of my age would probably never have bought an Omega. Their father would wear one, and their son would own one. We have therefore lost part of this generation, definitely. — Stephen Urquhart, President, Omega In 2006, when I told the press before the Olympic Games in Turin that the objective of Omega is to overtake Rolex, its natural competitor, people were smiling and saying that Rolex is in a different league, up there. But this positioned Omega, inside and outside, totally. — Nick Hayek, CEO, Swatch Group On the afternoon of March 15, 2011, the only day closed for visitors during Baselworld, the major global watch and jewelry trade show held in Basel, Switzerland, Nick Hayek, the CEO of the leading Swiss watch manufacturer Swatch Group, completed a series of informal meetings with his watchmaking counterparts. After all that had been said behind the glamorously showcased watch collections, Hayek lit a cigar to reflect on the discussions’ impact on his watchmaking empire. The late Nicolas G. Hayek (hereafter Hayek Sr.), the charismatic founder of the Swatch Group (and Nick Hayek’s father) who passed away nine months ago, would have applauded the group’s exceptional 2010 results which encouraged the company to set a sales goal of 10 billion Swiss Francs (CHF) within the next four to five years (see Exhibit 1 for the group’s key financials)...
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...HISTORY The forerunner of Omega was founded at La Chaux-de-Fonds, Switzerland in 1848 by 23-year-old Louis Brandt, who assembled key-wound precision pocket watches from parts supplied by local craftsmen. He sold his watches from Italy to Scandinavia by way of England, his chief market. After Louis Brandt's death in 1879, his two sons Louis-Paul and César, troubled by irregular deliveries of questionable quality, abandoned the unsatisfactory assembly workshop system in favour of in-house manufacturing and total production control. Relocation Due to the greater supply of manpower, communications and energy in Biel/Bienne, the enterprise moved into a small factory in January 1880, then bought the entire building in December. Two years later the company moved into a converted spinning-factory in the Gurzelen area of Biel/Bienne, where its headquarters are still situated today. Their first series-produced calibres, Labrador and Gurzelen, as well as the famous Omega calibre of 1894, would ensure the brand's marketing success. Merger Louis-Paul and César Brandt both died in 1903, leaving one of Switzerland's largest watch companies — with 240,000 watches produced annually and employing 800 people — in the hands of four young people, the oldest of whom, Paul-Emile Brandt, was not yet 24. Brandt was the great architect and builder of Omega.[5] His influence would be felt over the next half-century. The economic difficulties brought on by the First World War would lead him to work...
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...Brand and Business Overview of Omega Watch Makers There are many ways to attract consumers to purchase products, for example, price, advertising, word of mouth, branding, etc. However, before attracting customers to consume, the important things that companies have to achieve are finding the right purchasers, aiming at the correct market and using precise strategies and methods to analyze and promote their products. The market nowadays is not homogenous but diversified. Competition is also not just within a country but global due to rapid and easy transfer of information. In order to compete with various competitors and match what customers demand, companies should pay more attention to their strategies for marketing. From marketing text books, we can find plenty of strategies and methods to help companies to distinguish their target market, for example macro and micro environment analysis, SWOT analysis, marketing mix and STP strategy, etc. Enterprises will benefit from using these theories and increase market share or profit. In the following research, the marketing strategies and features will be outlined and identified with regards to the brand OMEGA in the Swatch Group, which is one of the best-known brands in the watch industry. Brand Overview OMEGA is one of the brands of the Swatch Group which is a well-known manufacturer in the watch market. There are 19 watch brands in the group, and each brand has different price categories in order to fit with different segments...
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...CONTENTS SWATCH GROUP: AN INTRODUCTION KEY PRODUCTS AND SERVICES BRANDS: WATCH SEGMENT SWATCH: WORLD MARKET SWATCH GROUP IN FIGURES PRODUCTION STRATEGY SEGMENTATION TARGETING POSITIONING PROMOTION SWOT ANALYSIS 3 3 3 4 4 5 6 10 10 10 10 Page | 2 SWATCH GROUP SWATCH GROUP: AN INTRODUCTION The Swatch Group (or just ‘SWATCH’) is a manufacturer and distributor of watches, movements, components and other products. The group also manufactures mechanical and quartz movements, and is active in the design, production and marketing of electronic components. Swatch has subsidiaries and distributors worldwide. It is headquartered in Biel, Switzerland and employs about 28,000 people. KEY PRODUCTS AND SERVICES The key products and services that constitute the group are as follows – 1. 2. 3. 4. WATCHES RETAILING PRODUCTION ELECTRONIC SYSTEMS Our basic concern in this report will be on the Watch Segment. BRANDS: WATCH SEGMENT The following are the various brands that comprise the Watch Segment of the Swatch Group1: Prestige and Luxury Range Breguet Blancpain Glashutte Original Jacquet Droz Tiffany and Co. Leon Hatot Omega High-Price Range Longines Rado Union Glashutte Middle-Price Range Tissot Balmain Certina Hamilton ck Watch and Jewellery Basic Range Swatch Flik Flak 1 Info as in the Annual Report 2011 published by Swatch Group Page | 3 SWATCH GROUP SWATCH: WORLD MARKET Swatch Group in the world2 – Europe – Austria, Belgium, Denmark, Finland, France, Germany, Greece, Italy...
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...Swatch Group 1 Professor: Rolf Butz 10/28/2008 International Business BADM 455 Section 2 Swatch Group 2 Table of Contents Executive Summary .............................................................................................................. 1 Introduction ......................................................................................................................... 5 History ................................................................................................................................. 5 Industry Analysis .................................................................................................................. 7 Company & SWOT Analysis ................................................................................................ 11 Current Situation &Global Market ..................................................................................... 17 Competitor Analysis ........................................................................................................... 23 Recommendation............................................................................................................... 26 Conclusion ......................................................................................................................... 29 Methodology ...
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...*RETAIL stores *CORPORATIONS -- Growth WRIST watches Geographic Terms: JAPAN Company/Entity: SWATCH Group Ltd. DUNS Number: : 103286126 Abstract: This article reports on a megastore that was opened by swatch company Swatch Group in Japan. The company joined other companies that have opened in Japan including Gucci, Bulgari, and Bottega Veneta. Seven main brands--Swatch, Omega, Blancpain, Glashutte, Breguet, Jaquet Droz and Leon Hatot--have their showrooms and boutiques at the Nicholas G. Hayek Center in Ginza, Tokyo, Japan, as well as the Swatch Group Japan office and an event space for exhibitions and receptions. Full Text Word Count: 797 ISSN: 01495380 Accession Number: 25449031 Database: Business Source Complete Translate Full Text: HTML Full Text ------------------------------------------------- Going Bigger in Tokyo: Swatch Group Is Latest In Rush for Megastores Listen | Download MP3 Help | | | Dateline: TOKYO Swatch Group is the latest luxury player to place a big bet on Tokyo. The world's largest watch firm has joined the rush of companies opening megastores in the Japanese capital, which, in the last nine months alone, has included Gucci, Bulgari and Bottega Veneta. And at a reported cost of $140 million, the store represents Swatch's largest single investment outside of Switzerland. Seven main brands - Swatch, Omega, Blancpain, Glashutte, Breguet, Jaquet Droz and...
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