... 2000 Rebirth of the Swiss Watch Industry, 1980–1992 (A) “Time is fast running out for the ailing Swiss watch industry.”1 —The Globe and Mail By the end of 1983, Hayek Engineering, a Swiss consulting firm founded by chairman and CEO Nicolas Hayek, was becoming increasingly involved in solving the mounting problems facing the Swiss watch industry, which was on the brink of disaster. Hayek Engineering had initially been recruited by the creditors of the two largest Swiss watchmakers, ASUAG (Allgemeine Schweizerische Uhrenindustrie AG) and SSIH (Societe Suisse pour L’Industrie Horlogere), to formulate a strategy to deal with changing market conditions in 1981. Since then the firm’s involvement with the industry had grown steadily. The firm’s influence had also been increasing since earlier that year, when the banks had agreed with its recommendation that SSIH and ASUAG merge. Although Hayek Engineering was acting as a consultant, Nicolas Hayek, its CEO, would come to have a 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...
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...“SWATCH CASE STUDY ANALYSIS” By Rahul Garhwal “SWATCH CASE STUDY ANALYSIS” How did consumers make buying decisions prior to the introduction of the Swatch? What kinds of watches were popular among customers, and what was their brand positioning? The market was dominated by Timex, Hattori-Seiki, Citizen and Swiss manufacturers before the introduction of Swatch. Each brand had their unique brand positioning in the market because of the different product attributes and value proposition offered and thus were popular among different category of customers. Watches above 350$ SWISS COMPANIES Watches between 50$ - 350$ HATTORI - SEIKO Watches below 50$ TIMEX Market positioning of various watch brands – Early 1980s SWISS WATCHES Prior to 1950s the meticulously crafted Swiss watches with mechanical movement dominated the market. The main value proposition offered to the customers was quality. The watches were high end and attracted rich affluent customers. Swiss watches were considered as financial investments. These were passed from one generation to another in a family and thus created an emotional bond among customers. The target market was global. They accounted for 80% of the global watch production and 99% of all U.S. imports. The competition was primarily among the Swiss manufacturers themselves with no major foreign competitor. Swiss watches enjoyed high positioning because of the various products attributes offered by them. Swiss had century’s long...
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...which was nice, but no at all his style. Imgruth had recently guided his company through a fast paced and, some would say, controversial diversification program. Having already achieved spectacular success with the Swatch watch, Imgruth spearheaded a plan to establish Swatch as a total fashion enterprise. This move was accompanied by a good deal of skepticism from colleague and competitor alike. His next objective was to make sure that this year’s # 1 marketing executive did not become one of the decade’s more memorable disappointments.1 BACKGROUND-THE SWISS WATCH INDUSTRY 1985 was a good year for the Swiss watch industry. The number of finished watches shipped abroad rose 41 percent to 25.1 million and the value of watch exports increased by 12.2 percent. Luxury watches still comprised the backbone of the Swiss watch trade, accounting for only 2.1 percent of total shipments but 41.8 percent of total earnings. In 1985, the Swiss raised their share of the world market to 10 percent by volume (number of units sold) and 45 percent by value (Exhibits 1-3). For the first time in 15 years, an increase in employment was...
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...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 as an educational project assignment to be submitted as...
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...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).1 Given how well the Swatch Group had weathered the recent difficult years for the industry, Hayek was not surprised by the 2010 numbers. He attributed this success partly to the group’s vast range of 19 watch brands serving all consumer segments, and to its solid Swiss industrial base which allowed the group to feed the latest technology into its timepieces. The company’s results had...
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...SWISS WATCHES - Industry Analysis - Student: Calin Mihai - Daniel Master: MBAE AIA E Course Title: Strategic Management Course Instructor: Popescu Cristian Introduction Country Economic Overview Switzerland is a standout amongst the most well off, macroeconomically steady and exceedingly aggressive nations on the planet. The nation has accomplished its aggressiveness in spite of a landlocked area, absence of normal assets and a little residential business sector. Stable political establishments, gradualist strategy changes and financial mix with the EU27 are at the center of Swiss macroeconomic aggressiveness. Swiss microeconomic intensity is driven by an exceptionally solid national business environment over the jewel, and 4 very creative, send out orientated, co-found bunches: Financial Services, Precision Engineering (counting watchmaking), Biopharmaceuticals, and Medical Technology. These bunches have however created notwithstanding a nonattendance of deliberate government group arrangements. To support and update its national intensity, we prescribe the Swiss government execute an incorporated bunch procedure, facilitate its scattered monetary policymakers around an arrangement of national financial destinations, lessen non-duty boundaries to exchange, establish changes to make beginning up and slowing down organizations less demanding, and fit business, assessment and speculator insurance direction...
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...product. But the team overcame the resistance and got the job done. — Nicolas Hayek1 In 1993, Swatch was the best-selling watch in the history of the watch industry. In 1992 alone, it sold 27 million units, while cumulative sales surpassed 100 million units (see Exhibit 1). In addition, it was widely acknowledged that the entire Swiss watch industry had been on the brink 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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...INDUSTRY OVERVIEW 1.1. WRIST WATCH INDUSTRY Wrist Watches form an integral part of the personality of individuals in the present era. Earlier seen as a luxury item, they are now witnessing a fundamental change in perception, and are now gaining respect as an essential utility item. For the watch industry, time seems in its favour what with the liberalization of the Indian market coupled with the rising purchasing power of the young and consumerist Indians. Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators once upon a time!), and has now left the pioneers far behind or nowhere in market by private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign entities jostling for display space in the smallest of shops selling these products. Before the establishment of HMT as the dominant player in the Indian markets initially, the country was solely dependent on imports to meet the internal demand. However, establishment of HMT as the leading player in the wrist watch segment in the 1960’s, changed the scenario. In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Fréderique Constant, Mont Blanc, Swatch, and many others. Many watch makers have made significant inroads in the industry and others are in the process of establishing themselves...
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...some would say, scalper, and sold enough hard-to-get tickets to sporting events and concerts to build his savings to over $200,000. In 1984, at the age of 24 and not looking forward to a future as a ticket scalper, he sold out to his partner and began a search for new opportunities. Tom’s older brother, Kosta, 31 at the time, was a merchandise executive at a large Dallas department store chain, Sanger Harris. Kosta had noted the recent success of Swatch fashion watches and was aware that watches and other goods could be imported from the Far East at very low cost. On a visit to Hong Kong, Tom studied a number of potential products for import including toys and stuffed animals before following Kosta’s advice and returned to the U.S. to develop a watch import business. Enlisting the aid of two friends, Lynne Stafford for her sense of design and Alan Moore who had a master’s degree in accounting, he invested his savings of $200,000 to found Fossil as a Texas corporation in 1984. Fossil’s initial purchase of watches from a Hong Kong manufacturer included some retro and jumbo designs that Macy’s thought were “hot,” and...
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...Premium Watches in the Indian Context BACKGROUND op yo Manoj Chakravarti, Senior Advisor, Titan Industries reflected on his 28 years in the watch industry, both in India and abroad, and contemplated about Xylys, Titan’s premium watch brand, and its foray into the Indian market. He had formulated several aspects of marketing mix strategies in the past to face diverse kinds of challenges. For Chakravarti, any challenge in the watch industry, especially in an emerging market such as India, was something he looked forward to, as it gave him immense satisfaction when he was able to find some insights. Xylys was a premium watch brand launched by Titan a few years ago; the brand was aimed at creating a unique perception among consumers. The challenge was to create and shape a perception unique to the brand, since premium watches in India were associated with the Swiss brands Omega and Rolex, or Tag Heuer and other similar brands, which were more contemporary in nature. There were several interesting possibilities for Chakravarti to consider. Would a conventional-positioning approach be sufficient? Was it necessary to obtain some insights regarding the application of the uniqueness aspect to the self-perception of consumers? How were such aspects of uniqueness related to other established brands? How important was the “Swiss-made” label? Did the buyers and prospective buyers of premium watches hold any specific stereotypical images of such watches? The case delved...
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...Swatch Group Ltd. Have a minute? Course: International Marketing Lecturer: Dr. J.T. Bouma Case: Swatch Group Ltd. Date: March 16th, 2010 Group: 13.3 Students: Dennis Hesling, S1892444 Rikke Nielsen, S1939882 Jan Oestmann, S1956140 Arjen Hofman, S1873083 Table of contents 1. Introduction p. 1 1.1 Abstract p. 1 1.2 Introduction to the company p. 1 2. Analysis of the company and its market p. 2 2.1 Market p. 2 2.2 Performance analysis p. 2 2.3 Product adaptation p. 4 3. Environmental analysis p. 4 3.1 External environmental analysis p. 4 3.2 PEST-analysis p. 4 3.3 Opportunities and threats p. 5 3.4 Internal environmental analysis p. 6 3.5 Strengths and weaknesses p. 6 4. Marketing analysis p. 8 4.1 Segmentation p. 8 4.2 Targeting p. 9 4.3 Positioning p. 9 4.4 Product strategy p. 9 4.5 Promotion strategy p. 10 4.6 Market entry, pricing and distribution p. 11 5. Conclusion p. 12 Bibliography p. 12 Appendix 1. Introduction 1.1. Abstract This report will be centred around the watch manufacturing branch of Swatch. Swatch has been highly successful throughout its existence and therefore it is particularly interesting to know how they achieved this considerable success. The main purpose of this report is to analyze the company of Swatch from a marketing perspective. This analysis is based on the theories from the...
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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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...Product, Pricing, and Channels Paper Charles Butler, April Molley, Jon Walter, and William Stewart MKT/421 Marketing April 6, 2015 Anil Agarwal Features of the Apple Watch and the Needs of Target Market This product is one of the best ideas invented since the tablets hit the market. You now have a cell phone, tablet, and your wallet all in one on your wrist. The benefits from this product will help many Americans keep better track of their health, personal information, and communication. The reminders and schedules are going to be more visible to the eyes. No need to look at your cell phone to see who is calling or sending a text both devices will be sync together. The Apple watch is created with the function that you will be able to use Apple pay to pay for purchases everywhere. One of the best features that are going to be very helpful is the fitness activity app. The Apple watch is designed to learn your daily activity and then turn that into ways to improve your physical health. It will suggest personalized all-day activity goals also provide reminders when to do them and when there has been no activity in a while. Apple Watch tracks movement, estimates calories burn, and monitors heart rate and will sync your information through the application to your Apple IPhone (Apple, 2015). So it is like having a personal trainer by your side all day to help with keeping you on the track of your goals. Some people in foreign countries or even in America...
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...The Swiss Luxury Watchmaking Industry A general overview and a closer look at the celebrity endorsement and sponsorship communication strategy used by the leaders. Karine Gautschi January 2005 HEC Lausanne – Hautes Etudes Commerciales, MIM – Master of International Management Thesis Director, MIM: Professor Stéphane Garelli Expert, Omega: Jean-Pascal Perret Table of Contents 1 2 INTRODUCTION .............................................................................................................. 1 LUXURY WATCH INDUSTRY: A SHORT OVERVIEW .................................................. 3 2.1 2.2 3 DEFINITION AND PRICE SEGMENTATION ........................................................................ 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS .........................................
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...INTRODUCTION Theory & Concept “A business has two – and only two – basic functions: marketing and innovation.” -Peter Drucker The rapid pace of change and intense competitive pressure in today’s marketplace demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position. In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand. Brand repositioning has received little attention in the marketing literature and has mostly been treated as a variation of brand positioning. Biel, for example, has defined brand positioning as “building (or rebuilding) an image for a brand”. The goal of positioning and repositioning strategies relates to the management of consumers’ perceptions. However, positioning focuses on the creation of band association – consumers’ perceptions of the attributes that differentiate the brand from competitive offers – while repositioning also implies managing existing brand associations. The unique challenge of a repositioning strategy thus lies in rejuvenating the brand image to make it relevant in an evolving environment, while honoring the brand equity heritage. Repositioning can be required as the market changes and new opportunities occur. Through repositioning the company can reach customers they...
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