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 • 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 Birth of the Swatch During the 1980s. Birth of the Swatch Case Solution. Home / Harvard Case Study Analysis Solutions / Birth of the Swatch. 504096-PDF-ENG Birth of the Swatch HBR case solution.

A J Cronin The Citadel Pdf Merge more. Dell Windows 7 Recovery Disk Isolator. 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. Dark Souls Gfwl Keygen on this page. 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).