GM614 Global Advertising
Professor Christin Walth
Jenessa Carder, Chia-Ying Chen, Fango Lin, Yi-Hsuan Su, Ya-Ling (Claire) Wang, Winette Yee
May 5, 2010
Swatch: The Global Watch
The IMC Plan in Brazil, Japan, and Switzerland
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Statement of Purpose
Swatch (‗Swiss‘ + ‗watch‘) watches, created under the management of Nicolas Hayek, are fashion statements and pop-culture icons. They feature witty, outlandish designs that use intense colors and are youthful, provocative, stylish, and unpredictable. The mission of the IMC campaign is to tie the brand image with creative art in order to tell the brand story, strengthen Swatch‘s brand identity among the target audience (young students or professionals, aged 18-25) globally, and consistently incorporate different and relevant mediums (print ad, website, MTV – user-generated content, and online communities) to reach the target audience.
The multi-country marketing analysis of The Swatch Group will aid in developing the IMC strategy and campaign for Swatch‘s CreArt (‗creativity‘ + ‗art‘) Collection in the following three countries: Brazil, Japan and Switzerland. When reading this, please be aware that Swatch did not impose an integrated marketing campaign in Brazil; rather, they only held one event and communicated to customers through Twitter. Therefore, the Brazil section is composed mostly of what The Swatch Group should do in order to meet their objectives. Furthermore, the cultural dimensions and components that will affect consumers shopping intention in each country will also be analyzed. Finally, based on the differences or similarities among the three countries, recommendations, including the cost-efficiency of adopting a standardized or localized IMC strategies in each country, will be given.
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Contents
Statement of Purpose .................................................................................................................................... 1
Company and Products ................................................................................................................................. 7
Company Background ............................................................................................................................... 7
The Swatch Group Brands and Companies.............................................................................................. 9
Watches and Jewelry ............................................................................................................................ 9
Production (of watches, watch components, and jewelry) .................................................................... 9
Electronic System .................................................................................................................................. 9
Corporate............................................................................................................................................... 9
Distribution........................................................................................................................................... 10
Landmarks ........................................................................................................................................... 10
Recent Campaigns .................................................................................................................................. 11
Colour Codes ...................................................................................................................................... 11
Swatch Snowpass / Access ................................................................................................................ 12
CreArt .................................................................................................................................................. 13
Street Club........................................................................................................................................... 14
MTV Playground .................................................................................................................................. 15
Outlaws ................................................................................................................................................ 15
Manish Arora ....................................................................................................................................... 16
TTR Snowboard .................................................................................................................................. 16
IMC History: CreArt Collection .................................................................................................................... 17
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The IMC Flowchart .................................................................................................................................. 17
IMC Mission ......................................................................................................................................... 17
Situation Analysis ................................................................................................................................ 17
Competition ......................................................................................................................................... 29
IMC Objectives .................................................................................................................................... 32
Budget ................................................................................................................................................. 32
IMC Strategy........................................................................................................................................ 34
IMC Tactics.......................................................................................................................................... 35
Integrated Campaign Plan/Calendar (Global) ..................................................................................... 38
Evaluation ............................................................................................................................................ 39
Target .......................................................................................................................................................... 48
Appeals.................................................................................................................................................... 48
Frameworks ............................................................................................................................................. 48
Media ....................................................................................................................................................... 48
Country Analysis and Pre-Launch Audit ..................................................................................................... 52
Brazil ........................................................................................................................................................ 52
Present: Swatch Group in Brazil ......................................................................................................... 52
Past: Older Campaigns from Swatch Group in Brazil ......................................................................... 54
Target Audience: within Brazil ............................................................................................................. 54
Relationship with social institutions ..................................................................................................... 54
Subcultures.......................................................................................................................................... 55
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Elements of culture: Values based on Hofstede Dimensions ............................................................. 57
Meaning of Communication ................................................................................................................. 60
Consumption decisions and behavior ................................................................................................. 60
Culture and Media ............................................................................................................................... 62
Recommendations .............................................................................................................................. 65
Japan ....................................................................................................................................................... 72
Present: Swatch Group in Japan......................................................................................................... 72
Past: Marketing History from Swatch Group in Japan ........................................................................ 72
Target Audience: within Japan ............................................................................................................ 73
Relationship with social institutions ..................................................................................................... 73
Subcultures.......................................................................................................................................... 74
Elements of Culture: Values based on Hofstede Dimensions ............................................................ 76
Meaning of Communication ................................................................................................................. 78
Consumption decisions and behavior ................................................................................................. 78
Culture and Media ............................................................................................................................... 79
Recommendations .............................................................................................................................. 82
Switzerland .............................................................................................................................................. 84
Present: Swatch Group in Switzerland ................................................................................................ 84
Past: Older Campaigns from Swatch Group in Switzerland ............................................................... 84
Target Audience within Switzerland .................................................................................................... 86
Relationship with social institutions ..................................................................................................... 86
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Subcultures.......................................................................................................................................... 87
Elements of Culture: Values based on Hofstede Dimensions ............................................................ 88
Meaning of Communication ................................................................................................................. 90
Consumption decisions and behavior ................................................................................................. 91
Culture and Media ............................................................................................................................... 91
Recommendations .............................................................................................................................. 93
Overall Recommendation: Standardize or Localize? .................................................................................. 95
Appendix ................................................................................................................................................... 100
Competitors – Brands ............................................................................................................................ 100
The Swatch Group ............................................................................................................................ 100
Citizen Holdings Co., Ltd. .................................................................................................................. 104
Compagnie Financiere Richemont SA .............................................................................................. 107
Seiko Holdings Corporation............................................................................................................... 108
Evaluation .............................................................................................................................................. 112
Swatch MTV Playground and Swatch Website ................................................................................. 112
Facebook ........................................................................................................................................... 112
Twitter ................................................................................................................................................ 113
Google Analytics Metrics ................................................................................................................... 114
Cultural Analysis .................................................................................................................................... 115
Brazil .................................................................................................................................................. 115
Japan ................................................................................................................................................. 121
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Switzerland ........................................................................................................................................ 125
Marketing Campaign/Program Brief .......................................................................................................... 130
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Company and Products
Company Background
Under the leadership of Nicolas G. Hayek, The Swatch Group has become one of the world‘s largest watchmakers. In the 1970s, the Switzerland watch industry faced fierce competition from low-cost watches and Japanese watch manufacturers, who specialized in quartz technology. At that time, the Swiss watch industry was dominated by ASUAG, a holding company consisting of 100 companies, and SSIH, a private watch company that controlled brands such as Omega. Both of these companies were losing money. Nicolas Hayek, the CEO of the Zurich-based consulting firm, Hayek Engineering, recommended that the companies merge. He became the CEO of this merged entity and renamed it SMH (Swiss Corporation for Microelectronics and Watchmaking Industries Ltd.) in 1983. This company was renamed The Swatch Group in 1998.1
Hayek‘s next step was to launch a low-cost, high-tech, artistic and emotional watch in order to compete in the low end of the watch market. He wanted to offer a watch with a personal culture and message, believing that emotional products that offered a strong, exciting, distinct, and authentic message that tells others who you are and why you do what you do, were most successful. This quartz watch was named Swatch (‗Swiss‘ + ‗watch‘). In 1983, the watch was introduced, amid some resistance that it would ruin the Swiss image of makers of high-quality, premium-priced watches. However, Swatch watches became fashion statements and pop-culture icons. The watches featured witty, outlandish designs that used brash, intense colors and were youthful, provocative, stylish, and unpredictable.
1The Swatch Group, History, http://www.swatchgroup.com/en/group_profile/history/, 2010
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These models were designed in the Swatch Design Lab in Milan under the guidance of Franco Bosisio. Collections are replaced rapidly, created by an assortment of artists, architects and industrial designs. There are no repeated production runs, so new models hit the market on an ongoing basis. As a result, consumers who buy one Swatch from one collection tend to buy another from another collection. The icing on the cake is the low price tag, which makes it easier for consumers to purchase Swatches on impulse. The following are examples of prices for Swatch watches in different countries: $40 in the United States, SFr50 in Switzerland, GM60 in Germany, and Y7, 000 in Japan.
In terms of advertising, all of The Swatch Group‘s efforts are on a global basis and produced in a centralized in-house agency. The general approach is to spend 30% of Swatch‘s retail price on advertising. The company also promotes the product through notorious and unorthodox promotional stunts, special events, product placement, and a Swatch Collectors Club. Members of the Collectors Club receive an exclusive collector‘s Swatch each year and subscription to the Swatch Street Journal, a magazine about the latest Swatch news and pop culture trends. The Swatch Group‘s Omega brand has also been the official timekeeper of the Olympic Games since 1932. The Swatch Group sponsors and time keeps other event such as the SWATCH FIVB Beach Volleyball World Tour, SWATCH Ticket to Ride (TTR) World Snowboard Tour, Red Bull X-Fighters, UCI BMX Supercross World Tour, Swatch O‘Neill Big Mountain Pro, O‘Neill Highland Open by Swatch, Swatch Free4Style, and Swatch Snow Mobile. Swatch also has successful athletes who are members of their Swatch ProTeam.2
In terms of distribution, the company has an unconventional retail approach. For example, The Swatch Group utilizes shop-in-shop systems and mini-boutiques that focuses exclusively on the brand and has many freestanding monobrand Swatch stores located in exclusive, high-fashion districts. The Swatch Group sells watches to 15,000 retailers worldwide, more than 500 Swatch stores, more than 1,000 shop-in-shops, and some 140 kiosks.
Today, The Swatch Group continues to invest heavily in research and development and is strongly committed to a strategy of vertical integration, decentralized marketing, centralized manufacturing, and portfolio management. Nicolas G. Hayek‘s son, Nicolas Hayek Jr., is now the CEO.3
2 The Swatch Group, Omega to continue as Official Olympic Timekeeper, http://www.swatchgroup.com/en/services/archive/2009/omega_to_continue_as_official_olympic_timekeeper, 2009
3 The Birth of Swatch, Harvard Business School, November 22, 2004
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The Swatch Group Brands and Companies4
The Swatch Group is a diversified multinational holding company, with ventures in the following businesses and industries: watches and jewelry, production, electronic systems, corporate, distribution and landmarks.
Watches and Jewelry
The Swatch Group‘s nineteen watch brands address every market segment.
Prestige and Luxury Range
High Range
Middle Range
Basic Range
Private Label
 Breguet
 Blancpain
 Glashutte Original
 Jaquet Droz
 Leon Hatot
 Omega
 Tiffany and Co.
 Longines
 Rado
 Union Glashutte
 Tissot
 Ck watch and jewelry
 Balmain
 Certina
 Mido
 Hamilton
 Swatch
 Flik Flak
 Endura
Production (of watches, watch components, and jewelry)
With 156 production centers, The Swatch Group is the world‘s largest watch producer and ―occupies a major position in the production and supply of watches, movements and components.‖5 The following are The Swatch Group‘s production companies: Dress Your Body, ETA, Frederic Piguet, Nivarox-FAR, Valdar, Francois Golay, Comadur, Rubattel and Weyermann, MOM Le Prelet, Deutsche Zifferblatt, Manufaktur, Universo, Favre et Perret, Manufacture Ruedin, Lascor, Meco and Swatch Group Assembly.
Electronic System
The Swatch Group owns six electronic components and systems companies (EM Microelectronic, Micro Crystal, Renata, Microcomponents, Oscilloquartz, and Lasag). These corporations address common markets such as automotive, consumer or industrial electronics. Swiss Timing, a leader in accurate timing, applies its expertise to timing sporting events.
Corporate
The Swatch Group has several general corporate companies, which are in charge of R&D, design and construction of products, patent applications, etc. They are the Swatch Group Research and
4 The Swatch Group, Brands and Companies, http://www.swatchgroup.com/en/brands_and_companies, March 2010
5 The Swatch Group, Brands and Companies, http://www.swatchgroup.com/en/brands_and_companies, March 2010
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Development, ICB, Swatch Group Quality Management, Swatch Group Distribution, Swatch Group Corporate Customer Service, and Swatch Group Real Estate.
Distribution
To maintain a direct link with end consumers, The Swatch Group created a retail section that develops global retail strategies and new approaches to consumer market. The distribution channels that they have strongly focused on are Tourbillion Boutiques, Tech-Airports, selected Boutiques, and worldwide distribution.
Landmarks
There are four Swatch Group buildings around the world. They are La Cite du Temps, Geneva, N.G. Hayek Center, Tokyo, Swatch Art Peace Hotel, Shanghai, and German Watch Museum Glashutte
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Recent Campaigns6
The following campaigns were recently pushed specifically for Swatch watches.
Colour Codes
This collection is a ‗80s throwback to the Swatch watch history. The products are monochromatic, but come in multiple colors. Fashion magazine designers, such as those employed by Nylon, I.D, and Wallpaper, were asked to participate in a contest, which asked them to design spreads to promote the product line with the theme ‗How do you wear it.‘ Consumers are currently voting for the best spread. In addition, a Facebook campaign, in which consumers upload pictures of themselves wearing Swatch watches, allows one winner to win all 20 Colour Code watches. This campaign is currently accessible to each country detailed in this report. A 30 second television spot and the MTV Playground website also leverage this campaign. This campaign specifically targets young women in Brazil with fashion shows depicting various methods the watch can be used as a fashion accessory.
6 The Swatch Group, http://www.swatchgroup.com/, March 2010
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Swatch Snowpass / Access
This campaign was created under the partnership of Swatch and Skidata. The Snowpass watch has a time indication and RFID chip. Each skipass is uniquely coded—consumers are able to upload their Snowpass code online to access over 700 ski equipped areas (mostly in Europe). The Snowpass also allows consumers to access leisure activities such as water parks. No commercials or collateral materials support this campaign, other than a few technical flyers. Swatch Access has the same premise as the Snowpass; however, the chip is for non-skiing activities. For example, consumers might load tickets for a concert, hotel room key, and public transportation onto the watch. The Swatch Access watch is only available in David Lloyd, Belgium, Kindercity, Switzerland, Seoul, Republic of Korea, Stade de Suisse Bern, Switzerland, and Taipei, Republic of China. Shoot My Ride sponsored snow and bike parks this past winter and is part of the Snowpass/Access campaign. Any ‗Freestyler‘ can record and broadcast his or her run at the park, and post it onto the Swatch website for others to view.
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CreArt
This collection launched in 2009 in Venice, Italy, and is inspired by Urban Art (also known as graffiti). This 2009 CreArt Collection campaign connects Swatch with artists from around the world. It is the manifestation of a long-term collaboration between Swatch and the arts. With Venice in mind, Swatch challenged four artists to create new work for ‗the world‘s smallest canvas.‘ These artists, Billy the Artist, Ted Scapa, Matthew Langille and Grems have each created new Swatch watches for the Swatch 2009 CreArt Collection. Promotions combine events such as concerts with performance art from the artists that designed the watches. Currently, there are four television spots, each unique to the artist. This campaign also utilizes a partnership with MTV‘s Playground website.
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Street Club
Swatch has an online community. Those who participate in this forum can buy a special ‗Street Club‘ watch and apparel, as well as receive a twice-yearly copy of Voice Magazine, the Swatch Club member magazine. Voice Magazine breathes the ‗creative and emotional spirit‘ of the Swatch brand by profiling art and extreme sports. Participants also receive special invitations to events, such as a sports competitions or product launches. These events are mostly held in Europe. Only seven events were held in 2009. One event, scheduled for the beginning of May begins the 2010 push for fusing the fields of fashion, art, and Swatch. This event will be held in London and leverages the graphics for the Colour Codes campaign. However, the event is also leveraging multiple artists, Ivan Navarro, Cassette, Playa, Manish Arora, and Enki Bilal, similar to the CreArt campaign‘s strategy.
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MTV Playground
This is a partnership with MTV and the Behance network. It is a social media website where artists can collaborate, connecting creative talent from around the world with contents, tutorials, and a social network. The CreArt and Colour Codes campaigns both leverage this media outlet.
Outlaws
This is a team of professional athletes that Swatch sponsors. The athletes compete in extreme sports such as BMX, Freeski, FMX, Snowboarding, and Surfing.
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Manish Arora
This campaign focuses on combining Swatch styles with inspiration from an Indian fashion designer. The campaign‘s style relies heavily on the sparkle and color of Bollywood. This specialty-designed line is supported by commercial and print ads.
TTR Snowboard
Swatch sponsors the TTR World Snowboarding Championship. With this online push, Swatch asks participants to design a trophy to be used as the award for the competition.
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IMC History: CreArt Collection
The IMC Flowchart
IMC Mission
The overall IMC mission of the 2009 CreArt Collection campaign is to create a connection between Swatch and art in order to increase sales.
Situation Analysis
How well are we known or recognized right now? The Swatch Group is the world's second-largest watchmaker. It has 19 watch brands, ranging from low-priced Swatch and Flik Flak to high-priced Blancpain, Brequet, and Omega. The Swatch Group sells watches to 15,000 retailers globally, more than 500 Swatch stores, more than 1,000 shop-in-shops, and some 140 kiosks.7
After the market declined in late 2008 and early 2009 due to a worldwide recession, most markets recovered in the second half of the year, ―with clear signs of market normalization and increased consumer confidence.‖ 8 The watch industry is one example of this. Consumers value brand awareness, tradition, history, and high-quality products more than ever. The Swatch Group, with its wide range of products covering all price segments, has been able to enlarge its market share in most markets and regions.9
7 HOOVERS, The Swatch Group Ltd., http://www.hoovers.com/company/The_Swatch_Group_Ltd/srssti-1.html, 2010.
8 Swatch Group enjoys rebound in second half of 2009, http://www.ngoinfo.com/Luxury-Replica-Watches/Swatch-Group-Enjoys-Rebound-in-Second-Half-of-2009.html, January,2010
9 Swatch Group enjoys rebound in second half of 2009, http://www.ngoinfo.com/Luxury-Replica-Watches/Swatch-Group-Enjoys-Rebound-in-Second-Half-of-2009.html, January,2010
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Campaign Products: CreArt watches (creativity and art)
Inspired from graffiti, the CreArt Collection was launched in Venice in 2009 (pictures above). Four internationally known artists Billy, Ted Scapa, Matthew Langille, and Grem designed twelve CreArt watches, to create works on the world‘s smallest canvas: a Swatch watch.
Price: $55.00-$65.00 (USD)
Place: The CreArt Collection is sold in 40 countries, including USA, Switzerland, Brazil, Japan, South Korea, China, Taiwan, France, Italy, etc.
Promotion: CreArt combines events, live music, and monumental video projections with contemporary performance art. Currently, there are four television spots, each unique to the four artists who are highlighted in this campaign. This campaign also utilizes a partnership with MTV‘s Playground website, among other elements that are further discussed in IMC Tactics.
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The following are the posters and brochures used in this campaign:
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The following are storyboard frames for a Grems and Billy the Artist commerical. The artists unified the different watches into one over-arching idea with one concept – the Art Machine, a crazy, fast moving mechanical-looking device that creates art and spits out watches, while working to a time-related beat. Each artist was in charge of creating one commerical.
Grems Commerical
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The frame above is the leverage point – this is when the viewer realizes that all of these gadgets are coming together to form a watch.
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Billy the Artist Commerical
25
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The frame above is the leverage point – this is when the viewer realizes that all of these gadgets are coming together to form a watch.
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Product:
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What is going on in the target market right now?
The Swatch watch has a global target: young students or professionals, aged 18-25. The target embodies youthful, provocative, stylish, and artistic traits. The wearable art is suitable for this target and any casual and joyful moment they might experience. Based on VALs, these people are Experiencers and Strivers. Experiencers are motivated by self-expression and are avid consumers who spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having ‗cool‘ stuff. Meanwhile, Strivers are trendy and fun loving. They favor stylish products that emulate the purchases of people with greater material wealth.10
Competition
Watch
The top three competitors are Seiko, Citizen and Richemont.
Overall Revenue ($, millions)
2006
2007
2008
2009
The Swatch Group
4,568.10
5,350.93
5, 380.74
4,873.79
Citizen Holdings Co., Ltd.
3,601.90
3,607.22
3,180.51
N/A
Compagnie Financiere Richemont SA
5,845.86
6,550.13
7,178.65
7,352.35
Seiko Holdings Corporation
2,289.85
2,240.86
2,292.42
1,864.56
Watch Revenue ($, millions)
2006
2007
2008
2009
The Swatch Group*
3,706.07
4,462.06
4,307.64
3,966.59
Citizen Holdings Co., Ltd.
1,424.81
1,499.79
1,419.75
N/A
Compagnie Financiere Richemont SA
2785.97
3,070.61
3,466.82
3,485.81
Seiko Holdings Corporation
1,153.88
1,222.94
1,255.66
1,002.63
*Swatch includes Jewelry in their Watch segment.
 Seiko Holdings, based in Tokyo, is best known for wristwatches, clocks and precision timing devices for athletic events. The Hattori family owns the company, and the first watch was produced in 1924. Recognized as a leader in timekeeping accuracy and advanced technology, Seiko products are often used as the official timekeepers of major sporting events, including the FIFA World Cup. Prices range from $45US to $554,000US. Seiko does not release all of its watch lines in every region. Subsidiaries are Seiko Watch Corporation, Seiko Clock Inc., Seiko Service Co., Ltd., Seiko Time Systems Inc.,
10 Strategic Business Insights, VALS Types, http://www.sric-bi.com/vals/ustypes.shtml, January 2010
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Seiko Sports Life Co., Ltd, Seiko Precision Inc., Seiko Jewelry Co., Ltd., and Seiko Optical Products Co., Ltd., Seiko NPC Corporation, Seiko Instruments Inc., Wako Co., Ltd., Cronos Inc., Seiko Business Services Inc., and Ohara Inc. Seiko Holdings' total sales fell nearly 19% in fiscal 2009 in comparison to the earlier period due to the global recession, and competition from mass merchandisers and discount eyewear chains; the company, however, plans to increase the number of SEIKO Boutiques in Asia.11
 Citizen's Holding LTD (Tokyo) is known for its public clocks in major cities worldwide, and also makes watches for pilots, divers, and sailors, and Eco-Drive light-powered watches for men and women. The company struggled in 2008 due to the recession, stalled consumer spending, limited credit, and decreased demand for printers and calculators. They have been the official timekeeper and watch of the US Open since 1993. Subsidiaries include Citizen Watch Co., Ltd., Japan CBM Corporation, Citizen Systems Co., Ltd., Citizen Miyota Co., Ltd., Citizen Fine Tech Co., Ltd., and Citizen Seimitsu Co., Ltd.12
 Found in 1988 by South African businessman, Anton Rupert, Compagnie Financière Richemont (Swiss), the world‘s second largest luxury goods firm, has four main business areas: jewelry, watches, writing instruments, and clothing. This company sells nine watches: Cartier, Van Cleef and Arpels, Piaget, Vacheron Constantin, A. Lange and Sohne, Officine Panerai, International Watch Co., Baume et Mercier, and Roger Dubuis.13
Other competitors include Rolex, Timex, Benetton, Bulgari, CASIO COMPUTER, Armitron, Fossil, Inc., Guess, Hermes, LVMH, Movado Group, and Tiffany and Co.
Cellular Phone
People carry cellular phone not only to make phone calls, but also to tell the time; thereby substituting a watch‘s function. Thus, a cellular phone is included in competition context for Swatch watches. The following are the major cellular phone competitors to Swatch:
 Nokia Corporation, the world's largest maker of cell phones, is engaged manufacturing mobile devices. The price of mobile phones range from $65 to $549.The company‘s new N-Series has the potential to boost brand ownership by making Nokia more cutting edge, appealing to the 12-24 age bracket and technophiles.14
11 Seiko Holdings Corporation, Investor Relations, http://www.seiko.co.jp/en/index.php, 2010
12 Citizen Holdings Company, Investors, http://www.citizen.co.jp/english/, 2010
13 Richmont, Investor Relations, http://www.richemont.com/, 2010
14 Hoover’s Company Record, Nokia Corporation, ProQuest Web, March 2010
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 The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. Samsung develops handsets for all levels of the phone market. In 2008, the company debutted a smartphone called Instinct to compete with Apple's iPhone. It also launched a slider phone, exclusive to the AT&T network, called Propel. Featuring a QWERTY keyboard, the Propel is designed primarily as a messaging phone.15
 Motorola, Inc. is still a top choice for mobile phone users worldwide despite flagging sales. The company is the third maker of cell phones and also sells wireless network equipment such as cellular transmitters and amplifiers.16
Who is our competition at an event level? During 2009, Citizen launched a campaign entitled ‗Unstoppable‘ for its Eco-Drive watches. Instead of fashionable, artistic design, the company emphasized the functions of its Eco-Drive technology. The technology is fueled by light, and therefore, does not need a battery. The campaign invited celebrities as endorsers for the watch collection globally. Advertisements included TV commercials and print ads. 17
In August 2009, SEIKO launched a new communication campaign that focused on the new SEIKO Ananta Collection. This campaign told SEIKO‘s story and of the SEIKO‘s expertise of the watchmaker‘s art in every aspect. The campaign appeared in traditional and digital media globally. This campaign conveyed message to consumers that SEIKO is ‗a manufacturer of prestige watches‘. 18
Who is our competition at an organizational level?
The top three competitors are Seiko, Citizen and Richemont. For photos of the competitor campaigns, please refer to the Appendix.
15 Hoover’s Company Record, Samsung Telecommunications America, L.L.C,ProQuest Web, March 2010
16 Mintel, Mobile Phones - US - September 2008 - Leading Companies, September 2008
17 CITIZEN WATCH.com, http://www.citizenwatch.com/COA/English/home.asp, 2010
18 Watch-ID.com, http://www.watch-id.com/latest/news/091104/seiko-launches-a-new-global-campaign-to-tell-the-seiko-story.html, 2009
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IMC Objectives
Global
 Introduce and promote awareness of the CreArt campaign, which focuses on integrating creativity and art in a wearable form.
Brazil
 Target younger consumers (18-25) and encourage purchase of inexpensive models to wear as fashion accessories rather than for the purpose of telling time.
 Increase interest in Swatch watches through reaching the target audience through different mediums, and by leveraging and liking aspects of the Brazilian culture to the Swatch brand.
Japan
 Increase annual sales in Japan‘s market to reverse the negative gross income growth of –2.6%19.
 Expand awareness by increasing the number of Swatch The Club members by 10% (by 5,000 members).
 Introduce mainstream buyers to the world of abstract creativity by making art ‗wearable‘20.
Switzerland Since Swatch watches are widely known in Switzerland & contribute to significantly to the worldwide sales, the objectives are to:
 Maintain current loyal customers.
 Extend target consumers to teenagers.
 Entice customers to wear two Swatch watches (‗80s tradition).
 Improve sales from -7.7% (Swatch global 2009 sales) to 3% (Swatch global 2010 sales goal).
Budget The overall marketing budget for Swatch and the CreArt campaign was created via a Top Down method. By utilizing this method, the upper management of The Swatch Group determined the goals of the campaign and budget across the board, and imposed this upon lower layers. The campaign is leveraging the Swatch partnership with MTV, who will share in the cost of this campaign.
Five million dollars from Swatch + Two million dollars from MTV = Total: Seven million dollars
19 Swatch Group, Swatch Group Half-year Report 2009, http://www.swatchgroup.com/en/services/archive/2009/swatch_group_half_year_report_2009,2009 20 Killahbeez, Billy the artist for swatch creArt collection, http://www.killahbeez.com/2009/07/07/billy-the-artist-for-swatch-creart-collection/, 2009
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To include the creative time, production, and media placement of the following deliverables:
 Campaign brand guidelines and logo for entire campaign.
 Logo for each artist leveraged in product creation of Swatch‘s new collection.
 Four downloadable :30 commercials produced for the web (Dubbed in different languages, if applicable).
 Four :30 commercials produced for TV (Dubbed in different languages, if applicable).
 A downloadable brochure for online (Delivered in different languages).
 A brochure for in-store purposes (Delivered in different languages).
 Online promotional campaign leveraging the partnership with MTV and artists apart of Swatch‘s new collection (Delivered in different languages).
 An addition to Swatch's corporate website format (Delivered in different languages).
Also to include:
 Pre-Market testing, to identify any cultural sensitivities.
 Post-Market testing, including focus groups in each country, to evaluate performance of campaign against campaign objectives.
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IMC Strategy
Global
 Strengthen the Swatch brand identity and create liking and awareness of the CreArt Collection and other Swatch products among young professionals (18-25) globally by stressing that Swatch is about color, creativity, and art.
 Incorporate different mediums (print ad, website, MTV – user-generated content, online communities) into a cohesive campaign.
Brazil
 Remind consumers Swatch is a fashionable brand with a fun personality.
 Leverage partnerships with Brazilian artists that align with Swatch‘s personality, in addition to Swatch‘s MTV partnership.
 Leverage Brazilian heritage through the use of color symbolism.
Japan
 Focus on the young Japanese target market, who likes to be regarded as fashionable and stylish.
 Increase the target audience‘s interest in Swatch by associating Swatch with fashion and art.
 Increase awareness of the CreArt Collection among young people through the Swatch Club and by introducing a series of art themed watches through multiple mediums.
Switzerland
 Introduce the CreArt Collection by emphasizing the strong correlation between the Swiss and Swatch watches.
 Position the CreArt Collection as a valuable and collectable series for enthusiastic Swatch collectors.
 Emphasize and promote the CreArt Collection as a joyful wearable art suitable for both children and adults.
 Incorporate a variety of media into the marketing mix to promote the CreArt Collection.
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IMC Tactics Brazil Though Brazil sells Swatch watches, the CreArt Collection did not receive a huge advertising push in this country. Overall, a pull tactic was implemented, where if customers were interested in the CreArt Collection, the consumers themselves would have to search for this information online. The marketing that was implemented in Brazil consisted of:
Events
 Fashion Night Out, an event promoting fashion, creativity, street art and shopping at the Sao Paulo Iguatemi.
Publicity/PR
 Write-ups in popular fashion magazines and blogs, such as RG Vouge and glamurama about the CreArt campaign and artists.
Cyber Marketing
 Leverage the Social Media, mostly Twitter, to engage consumers online.
However, to better reach their target market, the following is what they should have done or should do in the future:
Advertising
 Newspapers.
 TV.
 Mobile.
 Social Media.
Personal Selling
 Investigate adding music in stores via a Swatch Radio station.
Sales Promotions
 Develop loyalty cards.
 Create a Swatch Radio station that can be heard on mobile phones or on the internet.
 Place commercials on the internet virally and on television.
 Associate Swatch with gift giving occasions.
Direct Market
 Create fashionable posters and brochures that the target market will want to keep forever.
Cyber Marketing
 Leverage the Swatch website.
 Leverage MTV Playground.
 Leverage social media (Twitter, Facebook, Orkut).
Publicity/PR
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 Sponsorships with Brazilian artists.
 Sponsorships with 2016 Olympic athletes.
(To read more, view the Brazil Recommendations section)
Japan
Direct Marketing
 A print ad and catalog of the CreArt Collection were mailed to members of Swatch The Club. The catalog included a special section covering the high profile press conference in Venice that introduced the creation of each CreArt watch.
Advertising
 During the Christmas and New Year season, the biggest sales season, gift discounts were offered on the CreArt Collection to increase purchase intention.
 An online advertising video entitled, ‗Spot Swatch 09‘-CreArt‘ (see Appendix).21
 A CreArt print ad was printed in magazines relating to the arts, extreme sports, and beauty.
Cyber Marketing
 MTV Playground Website is a web-based community in 19 languages that enables artists and designers to display and discuss their artwork, as well as participate in design competitions.
 Swatch watch‘s Facebook fanpage was also used to interactively communicate to fans about contests and events, and show photos and videos.
 An Apple partnership allowed for downloading an application to iPhones. This application allowed consumers to see and access artwork.
Publicity/PR
 Swatch Art Collection events were held worldwide from August 14 – 15, 2009. One event in Japan took place in the Nicolas G. Hayek Center in Ginza. Four contestants from the Vantan Design Institute battled against each other in a themed art battle called ‗Travelling in Time‘. The panel of judges consisted of Ogata Yoshimi san from Swatch Japan, Alan Swart from MTV Japan, and special guest judges, TENKI san, known for their creation of fashion and art in unique ways. Visitors could also browse artwork and create their very own unique art show with mood-enhancing lights.
Sales Promotion
 Membership to the online community was free of charge. Fans could form groups, upload photos, and create blogs. If someone was a member of the Swatch Club, he or she could have additional features such as a magazine subscription, contests, and event updates, available at cost.
21 Online Advertising video: Spot swatch 09’-creArt http://www.youtube.com/watch?v=Ocj7ObDwJTwandfeature=player_embedded 37
Switzerland
Advertising
 Online Advertising video: Spot Swatch 09‘-CreArt‘ (see Appendix).22
 TV Commercials tied together the entire campaign by unifying the different watches into one overarching idea, tone, and look. There were four commercials that introduced the four international artists and served to inform and excite the audience about the CreArt Collection.
 The Swatch MTV Playgound incorporated colorful graphics and product-oriented visuals for print and outdoor ads, a TV spot, and strong online integration with Swatch partners. This campaign supported the launch of CreArt.23
Cyber Marketing
 MTV Playground Website was a web-based community in 19 languages created to enable artists and designers to display and discuss their artwork and participate in design competitions.
 Twitter and Facebook: Twitter was utilized to carry an one on one conversation with Twitter followers, in addition to inform them of commercials, new collections, and contests. Facebook‘s Swatch watches fanpage was also used to interactively communicate to fans about contests and events, and show photos and videos.
Publicity/PR
 The first Swatch MTV Playground event, known as the Swatch Art Collection event, happened at the 2009 Blue Balls Festival from August 14 -15, 2009 at KKL in Luzern. This event included nine art battles where audience members selected the winner. At the event, there was also a Swatch MTV Playground booth, where visitors could create their own art show by selecting images they wanted to see.24
22 Online Advertising video: Spot swatch 09’-creArt http://www.youtube.com/watch?v=Ocj7ObDwJTwandfeature=player_embedded 23 Swatch Group, Annual Report, 2009.
24 Swatch MTV Playground, http://www.swatchmtvplayground.com/en-TV/events/detail/1, 2009
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Integrated Campaign Plan/Calendar (Global)
Overall, the entire Integrated Campaign began on June 30,, 2009, the launch date of the collection in Venice, and cumulated in March 2010, the global release of Colour Codes and Swatch + Art, among other campaigns.
2009
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Campaign: CreArt Collection
Swatch website
MTV Playground Website and Events
Facebook
Twitter
2010
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec Campaign: CreArt Collection
New Campaigns include: Colour Codes, Street Club, Outllaws, Swatch + Art, Manish Arora Swatch website Facebook Twitter
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Evaluation The following explains how The Swatch Group could have measured their success in all of the countries at the conclusion of this campaign. These tactics allowed The Swatch Group to understand their current positioning in the mind of the consumer, evaluate the best benchmark for each measurement, whether or not the campaign achieved objectives, and the best tactic to reach the target audience for future reference.
Brazil
The following are IMC strategies that The Swatch Group could have evaluated:
Events
 Brazil‘s Fashion Night Out event could be measured by calculating the number of event attendees and publicity that was generated from the event. The benchmark was 100 attendees.
Social Media  Twitter: The Swatch.br group, which was created in June 2009, and has 230 followers as of today. The goal was to increase the number of users by 15% (by 15 people) during the campaign. This was an easy benchmark since the penetration of Brazilian internet users visit Twitter surpasses richer countries like the US. Metrics will include engagement measurements, reach measurements, and trend measurements. These will measure the number of tweets, retweets, followers, among other measurements. Progress can also be tracked via TwitterGrader.com‘s online tools.
The following are evaluations based on tactics that they could have implemented:
Mobile and Internet (see measurement terminology in Appendix)
 Click-Through Rates: The click-through rate would have measure what percentage of people clicked on a CreArt Campaign text message to enter a Swatch website, MTV Playground website, or social media site centered on this campaign. In terms of the internet, the click-through rate would have been measured by the percentage of people who clicked on an online advertisement or Swatch-related website to enter a Swatch website, MTV Playground website, or the Swatch.br Twitter page. Products such as Google AdWords will have been helpful in determining where to place appropriate and relevant ads. The benchmark for a click-through rate in Brazil should be .5 since over 90% of Brazilians (178,865,342 million people) prefer to use mobile telephones.
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground should have been measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, downloaded a gallery widget, viewed videos of events footage and expert tutorials, voted on featured artwork in the gallery, joined the Swatch MTV Playground community, signed up for the newsletter, or participated in a research project exploring global attitudes about art (via a questionnaire). Both the Swatch website and Swatch MTV Playground
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website could have been measured by the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce rates, exit pages, entrance pages and value per visit.25 The goal should have been to increase total unique visitors by 20% (or to around 500 unique visitor a day).
 Facebook: This should have been measured with the Facebook Insights, which aggregates information over seven days. This would have indicated to Swatch the interactions per week, post quality, and page data, as well as provided fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. Currently, there are 113,069 fans, globally. The goal could have been to increase this number by 10% of Brazilian citizens, especially since only 4.5% (about 8.9 million) of Brazilians use Facebook, which is a small percentage. A 10% increase would be equivalent to 124,376 users.
 Overall, Google Analytics would have also helpful in providing online metrics.
Personal Selling
 In-store: To calculate the difference between foot traffic before, during, and after the campaign, salespeople at the cash register could have calculated (1) how many people entered the store and (2) how many of those people purchased a product. This could have been calculated every two weeks. Another way to measure if there was an increase in interest in Swatch watches and the demographics of those to buy Swatch watches would have been to ask a customer if they would like to sign up for a loyalty card after he or she has purchased a Swatch product; if the customer agreed, he or she would be required to fill out an application form. The benchmark for this could have been 50 filled out application forms per month.
Sales Promotion
 Ratings: Since commercials were placed on the Internet virally, one way to measure engagement is if viewers provided comments on the commercials and rated the commercials.
 Backlinks: The number of backlinks to the commercial, or links to the commercial content, not placed by Swatch, is another method of tracking the penetration and success of the campaign.
 Coupons: If Swatch decided to place coupons in newspapers, they could have measures interest based on the number of customers who redeemed the coupon.
Post-Mortem
In Brazil, there should have been two main focuses for the post-mortem audit: focus groups of the target market and feedback from the stores and salesforce.
 Feedback from the stores and salesforce about the effectiveness of the campaign should have been important, because of the significance of direct selling to the Brazilian culture. The information in the
25 See terminology in Appendix
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feedback that should have been most desired related to if the stores saw a lift in traffic, and if consumers sought engagement with the CreArt Collection.
 Focus groups could have focused on the target audience. This would have helped judge how effectively the marketing tactics delivered the marketing messages. The focus groups could have also delivered valuable feedback that could have been applied to future marketing campaigns in Brazil.
Corrective Actions: Recommendations
If The Swatch Group could reconfigure this campaign experience, they should have a stronger push for the CreArt Collection and campaign in Brazil. While The Swatch Group held events, such as art shows in many countries, yet Brazil did not host an event. It is apparent that The Swatch Group did not invest enough time, money, and effort in Brazil for the CreArt Collection. The Fashion Night Out and Twitter page were the only IMC tactics that were visible. Fashion Night Out generated buzz from fashion magazines and had over 100 event attendees, therefore, this event was considered successful. The Twitter page was created in June 2009 (this is about the time the CreArt Collection was released). As of today, there are about 230 followers—if calculated, this means that the Twitter page acquired 23 followers a month. The Swatch Group has exceeded the expectation of increasing the number of followers by 15% on Twitter. If the budget was larger, the Brazilian target audience might have paid more attention to Swatch watches overall, thereby, increasing interest in the brand and perhaps, building long term brand loyalty and higher sales numbers.
Japan
Mobile and Internet (see measurement terminology in Appendix)
 Click-Through Rate: The click-through rate would have measure what percentage of people clicked on a CreArt Campaign text message to enter a Swatch website, MTV Playground website, or social media site centered on this campaign. In terms of the internet, the click-through rate would have been measured by the percentage of people who clicked on an online advertisement or Swatch-related website to enter a Swatch website, MTV Playground website, or the Swatch.br Twitter page. Products such as Google AdWords will have been helpful in determining where to place appropriate and relevant ads. The benchmark for the website click-through rate in Japan should have been 0.5, since over 80% of Japanese (about 101.6 million) prefer to use mobile telephones.
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground should have been measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, downloaded a gallery widget, viewed videos of events footage and expert tutorials, voted on featured artwork in the gallery, joined the Swatch MTV Playground community, signed up for the newsletter, or participated in a research project exploring global attitudes about art (via a questionnaire). Both the Swatch website and Swatch MTV Playground
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website could have been measured by the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce rates, exit pages, entrance pages and value per visit.26 The goal is to increase total unique visitors by 20% (or to around 500 unique visitor a day).
 Facebook: This should have been measured with the Facebook Insights, which aggregates information over seven days. This would have indicated to Swatch the interactions per week, post quality, and page data, as well as provided fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. Currently, there are 113,069 fans, globally. The goal should have been to increase this number 10% (about 11,000 people) by leveraging the Japanese citizens. This number would have been within reach since Facebook recently entered Japan in 2008, and therefore, was still in the early stages of adoption and growing rapidly.
Personal Selling
 The traffic and the transactions: To confirm the effectiveness of the advertising campaign, Swatch could have compared the number of customers and transactions in the periods before, during, and after the campaign by calculating the foot traffic in each of the Swatch stores. This would have been calculated two weeks before broadcasting, during the broadcasting and two weeks after broadcasting. The goal was to increase in-store traffic by 20%, each store with a different number for the 20% benchmark. In addition, based on the transactions, Swatch should have analyzed which CreArt product was selling the best and modified the lead product in the Japanese market based on that diagnosis. There should be a 2% overall sales growth in 2010 (per individual store), as a result of these measurements.
Sales Promotion
 Online Coupons: Swatch could have measured the effectiveness of online coupons by providing customers a unique promotion code for online coupons on the official website, Facebook or Twitter. Then, Swatch would be able to identify the number of customers who used the online coupon, the total purchase amount, and what online shopping channels they chose to purchase from. The goal should have been to receive a 2% redemption rate (based on the amount of online coupons issued for the year) for the coupons in 2010.
 Online Ratings: Consumer engagement should have been measured through ratings and comments on the commercials on the Internet. From this, Swatch would be able to understand the customers‘ commercial preference, and properly judge which commercial to run.
 Print Ad Coupons: If Swatch decides in the future to place coupons with a promotion code in printed ads, like newspapers and magazines, they could understand which consumers are interested in the promotional codes based on the number of customers who redeem the coupon. The Coupons would
26 See terminology in Appendix
43
shed insight on consumer behavior though the total of the purchase amount and where the purchase was made, in Swatch stores or department stores, for example. The goal would be to have 1% of consumers using these coupons in 2010 (based on the amount of online coupons issued for the year).
Post-Mortem
In Japan, there should have been three main focuses for the post-mortem audit: focus groups of the target market, questionnaires, and year to year sales.
 By conducting focus groups post-mortem, Swatch could have found out the strengths and weaknesses of the campaign and its products. Focus groups would have also be useful in measuring the effectiveness of the advertising tactics.
 Swatch should have sent out questionnaires to customers who purchased at least one CreArt product. Sample questions that could have appeared on the questionnaire include:
 What specific products styles did you purchase?
 Why do you like the CreArt Collection?
 How did you become aware of the CreArt product?
 How much did you spend on the Collection?
 Where did you purchase these watch(es)?
 What media outlets reach you effectively?
Swatch could have then analyzed these insights to modify the lead watch featured in the advertising campaign and properly plan future media placement in the Japanese market.
 Year to year sales: By comparing the current and previous year‘s data (post-campaign) of net sales, gross income, and the number of club members, Swatch could have evaluated the effectiveness of the annual development. The net income and net sales growth rate should have a 2% increase at the conclusion of the 2010 fiscal year.
Corrective Actions: Recommendations  Swatch should connect the company‘s philosophy of creative art, featured in the CreArt Collection, to Japan‘s culture. For example, a limited edition collection that commemorates special occasions like the Cherry Blossom Festival could be created and become a part of the CreArt Collection in order to reach the Japanese target.  Swatch could have done better in the Japanese market if the budget was increased. For example, with more money, Swatch would be able to host more traditional events or sponsor activities, like the Cherry Blossom Festival, to attract more consumers and encourage them to join Swatch the Club.
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Switzerland
The overall IMC effort in Switzerland was evaluated at the end of the 2009 fiscal year (January, 2010). The following are the measurements Swatch should have used to evaluate the success of CreArt campaign in Switzerland. These tactics would have allowed The Swatch Group to understand whether the campaign achieved the objectives.
Mobile and Internet (see measurement terminology in Appendix)
 Click-Through Rates
 Mobile text message: The click-through rate would have measured the percentage of people that clicked on a CreArt Campaign text message to enter campaign related websites.
 Internet: The click-through rate would have been measured by the percentage of people that landed on a Swatch-related website and social media site and the duration in which they stayed.
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground would have been measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, downloaded a gallery widget, viewed videos of events footage and expert tutorials, voted on featured artwork in the gallery, joined the Swatch MTV Playground community, or signed up for the newsletter. Both the Swatch website and Swatch MTV Playground website should have measured the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce rates, exit pages, entrance pages and value per visit.27
 Facebook: This should have been measured with Facebook Insights, which aggregates information over seven days. This would have indicated the quantity and quality of interactions per week, post quality, page data, and provide fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. In 2009, there were 1.7 million Swiss Facebook users, which is 25% of the total population. The goal should have been to capture 2%, or 34,000 individual Swiss fans.
 Twitter: The goal should have been to generate 100 conversations about the MTV Playground events and CreArt products on a daily basis.
 Skyrock.com and Blogger.com: 2,000 click-throughs per week for each post would have been an attainable benchmark.
Sales Promotion
 Swatch Switzerland should have evaluated the number of CreArt purchases during two sales seasons. Ideally, this number should have shown an increase and contributed to a change from -7.7% (global 2009 sales) to 3% (global 2010 goal) over the year.
Publicity/PR
27 See terminology in Appendix
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 The media coverage should have been examined based on the following media outlets.28 The success of the IMC strategy should have been determined based on whether the campaign elements were covered in the press clippings and mentions.
 The press o Neue Zürcher Zeitung - Zurich-based daily (national). o Tages-Anzeiger - Zurich-based daily(national). o Le Temps - Geneva-based daily (regional). o La Tribune de Geneve - daily (regional). o Corriere del Ticino - Lugano-based daily (regional).
 The benchmark should have been to have at least 1000 patronages visit the MTV Playground booth during the Blue Balls Festival. To calculate the foot traffic, Swatch should prepared at least 1700 postcards and give away these postcards for free to every visitor at the entrance of the festival.
Traditional Advertising
 Television
 SF-DRS - German-language public broadcaster, operates three channels.
 RTSI- Italian-language public broadcaster, operates two channels.
 TSR - French-language public broadcaster, operates two channels.
 Print Advertisements
 Magazine-General interest.
 Inside Switzerland.
 L'Hebdo.
 Schweizerzeit.
 Swiss News.
 Tachles.
 Magazine- Fashion and beauty
 Annabelle.
 Elle Girl.
 Bolero/ Bolero Men.
 Edelweiss.
Post-Mortem
There should have been three main areas of focus for the post-mortem audit: focus groups with loyal customers and new target customers, feedback from the stores and salesforce, and year-to-year sales.
28 BBC News country profile , Switzerland, http://news.bbc.co.uk/2/hi/europe/country_profiles/1035212.stm#media, 2010
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 By conducting focus groups, specifically those aged from 12-25, Swatch could have discovered the strengths and weaknesses of the campaign. Furthermore, Swatch could have acquired loyal customers and teenagers‘ attitudes toward Swatch. Since Swatch has maintained a unique Swiss identity in a mature watch market, the opinion from respondents should have been positive.
 Feedback from the stores and salesforce about the effectiveness of the campaign would have been important. The information in the feedback would have reflected consumers‘ attitudes toward CreArt watches.
 Year to year sales: By comparing the current (post-campaign) and previous year‘s data of net sales, Swatch could have evaluated the effectiveness of the annual development. Because Switzerland is a market leader for Swatch, positive sales in Switzerland, should result in positive sales globally. The net sales growth rate should increase from -7.7% (Swatch Group 2009 global sales) to 3% (Swatch Group global sales) in 2010.
Corrective Actions: Recommendations
Advertising
 The CreArt Collection could have been promoted in magazines related to the arts, extreme sports, and beauty, in addition to free newspapers like 20 Minuten and Heute.
 The CreArt product launch and MTV Playground event could have also been promoted through main regional and national radio stations channels.
Sales Promotion
The objective was to increase sales volume.
 The CreArt Collection was launched during the summer. The Swiss usually has 20 to 25 vacation days in July and August. 29 Therefore, a series of sales discounts or a free gift with purchase ploy could have been implemented to lift the sales volume of this collection.
 During the Christmas and New Year season, the biggest sales season, gift discounts on the CreArt Collection could have increased the purchase intention.
Direct Marketing
The objective was to inform customers about this collection and the MTV playground event.
 A print ad and catalog of CreArt Collection could have been mailed to members of Swatch the Club. The catalog could have included a special section detailing the high-profile press conference in Venice, as well as introduced the creation of each watch.
 An invitation to the MTV Playground event held at the 2009 Blue Balls Festival at the KKL in Luzern could have been mailed to members of the Swatch Club.
PR/Publicity
29 Bering Guides : Business Travel in Switzerland, 2003.
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The goal was to inform consumers about the four watches from the CreArt artists.
 A press release of the MTV Playground event should have been delivered to both mainstream local and regional newspapers and TV Networks.
 Radio, TV, and newspaper media interviews should have been arranged for the artists to convey their creative message on the four watches. These could have been featured in these different media channels.
 Editorial articles in magazines could have covered the stories of these four artists and their creation of CreArt watches.
Internet and mobile marketing
Cyber marketing currently plays a role in generating attendance and increasing buzz among young Swiss social media users.
 Skyrock.com and Blogger.com are among the top 20 most visited websites. Traditional blogging is more prevalent than micro-blogging, such as Twitter, in Switzerland. Therefore, Swatch should have also created a blog introducing the CreArt Collection.
 Switzerland has one of the highest household penetration rates of mobile phones.30 The Swatch Group should have utilized text messaging, to inform customers about the CreArt Collection and MTV Playground events.
30 Euromonitor International, Technogy, Communcation and Media—Switzerland, February, 2010
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Target
Swatch watch has a global target: young students or professionals, aged 18 – 25. The target embodies a youthful, provocative, stylish, and artistic. Based on VALs, these people are Experiencers and Strivers. Experiencers are motivated by self-expression and are avid consumers who spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having ‗cool‘ stuff. Meanwhile, Strivers are trendy and fun loving. They favor stylish products that emulate the purchases of people with greater material wealth.31
Appeals
 Scarcity: There is a quick turnover of watches because Swatch is positioned as an inexpensive fashion oriented brand. Just as fashion trends change with the season, Swatch users keep pace with changing watch trends. The inexpensive nature of the product reinforces this behavior. Furthermore, because many Swatch watches have limited production times, as is the case with the CreArt watches, they are also collectible. This further promotes the scarcity appeal.
 Emotions: Swatch watches represent a community, a feeling of belonging. They offer a personal culture, and are emotional products that offer a strong, exciting, distinct, authentic message that tell others who you are and why you do what you do. Typecasted as fashion statement watches, the Swatch watches express your soul.
Frameworks
 Association Transfer: This watch is a fashion statement. It indicates that you are artistic, free-spirited and creative.
 Slice of Life: This affordable watch is the solution to your problem. The problem? A way to express yourself.
 Animation: This is the style of the television commercials during this campaign. Through this appeal, the fashion and design of the CreArt watches are promoted.
Media
 Swatch Art Collection events were held worldwide. All of the events centered on art battles. These were live-art competitions where artists created work side-by-side in front of live audiences.
 Switzerland: July 17 – 25 2009: The first Swatch MTV Playground event kicked off at the 2009 Blue Balls Festival at the KKL in Luzern. This event included nine art battles where the audience
31 Strategic Business Insights, VALS Types, http://www.sric-bi.com/vals/ustypes.shtml, January 2010
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members selected the winner. There was also a Swatch MTV Playground booth, where visitors could create their own art show by selecting images they wanted to see.
 Japan: August 14 – 15, 2009: This event took place in the Nicolas G Hayek Center in Ginza. Four contestants from the Vantan Design Institute battled against each other in a themed art battle called ‗Traveling in Time‘. The panel of judges consisted of Ogata Yoshimi san from Swatch Japan, Alan Swart from MTV Japan and special guest judges, TENKI san, known for their creation of fashion and art in unique ways. Visitors could also browse artwork and create their own unique art show with mood-enhancing lights.
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 Brazil did not host a Swatch Art Collection event. Instead, in its place, an event entitled: ―Fashion Night Out‖ promoted fashion, creativity, street art, and shopping at Sao Paulo Iguatemi.
 Events also took place in China, Netherlands, Korea, and Germany from July to October.
 MTV Playground Website is a web-based community in nineteen languages created to enable artists and designers to display and discuss their artwork, as well as participate in design competitions. Previously, the best artwork was exhibited at Swatch MTV Playground events and Swatch stores around the world. This website also included downloadable posters and computer wallpaper, commercials, widgets, ability to view events on a smartphone, video talks between Adam Levine and Jonas Akerlund, and contest information. This website has strengthened Swatch‘s relationship to art and fashion through its 2009 partnership with MTV in Europe and Asia.
 The Swatch Group primarily uses two social media outlets: Twitter and Facebook. Twitter is utilized to carry on a one-on-one conversation with Twitter followers, in addition to informing the followers of commercials, new collections, and contests. Facebook‘s Swatch watches fanpage is used to interactively communicate to fans about contests and events, and show photos and videos.
 The mobile element was created with the help of Apple—a consumer could download a MTV Playground application, which allowed him or her access to view MTV playground artwork on his or her phone. The following are iPhone screenshots:
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 The artists collaborated together to create a campaign unifying the twelve watches into one over-arching idea, which is the Art Machine. The Art Machine is a fast moving mechanical-looking device that creates art and spits out watches. Traditional media outlets featuring the Art Machine included print, billboard, and commercial advertisements. Print ads were placed in magazines related to arts, sports, and beauty.
 In Japan, a print ad and catalog of the CreArt Collection were mailed to members of Swatch the Club. The catalog included a special section, covering the high profile press conference in Venice introducing the creation of each CreArt watch.
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Country Analysis and Pre-Launch Audit
Brazil
Present: Swatch Group in Brazil
Within the Brazilian market, The Swatch Group strongly pushes their luxury, higher and middle-end priced watches. These higher end product lines include, Breguet, Omega, Longines, Rado, Tissot, Calvin Klein watch and jewelry, and Mido. Particular emphasis is placed on the Mido and Tissot brands, both of which have a brand image of prestige and tradition. As for basic, watches promoted in Brazil, emphasis is placed on Swatch and Flik Flak. Though these watches are sold in Brazil, the Swatch or Flik Flak brands receive little emphasis in comparison to the attention the luxury brand watches receive. However, Swatch currently maintains a presence in Brazil through marketing. Recently campaigns, such as the Chronos Automatic and Colour Codes campaigns, have been promoted through Twitter. Additionally, Swatch hosts special events, such as the Fashion Night Out. Additionally, notable Brazilian fashion related blogs and magazines have recently featured Swatch campaigns, like CreArt.
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Elements of the present marketing mix in Brazil include: sponsorship of the FIVB Beach Volleyball Tournament, Motorcycle Grand Prix, Pan-American Games, Para-Games, and X-Fighters. Swatch also sponsors Brazilian athletes within each of these sports. These sponsorships are tied in with global Swatch campaigns including the Swatch Access, Shoot my Ride, and Outlaw campaigns. As the official timekeeper for these events, Swatch broadcasts live up-to-date score and time information on its website.32 Football is the most popular sport in Brazil, while volleyball is the second most popular sport. In fact, in the 2008 Beijing Olympics, the Brazilian women's team won gold in indoor volleyball and the men's team won silver33 and Swatch sponsors many of the athletes.
32 The Swatch Group, Annual Reports, http://www.swatchgroup.com/en/investor_relations/annual_and_half_year_reports, 2010 33 Embassy of Brazil in London, Sport, http://www.brazil.org.uk/culture/sport.html, 2010
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Past: Older Campaigns from Swatch Group in Brazil
In August of 2006, Mido led a campaign entitled ‗Reflecting on time‘ encouraging consumers to think about the value of time and the art of timekeeping. In November of the same year, a ‗Think Time‘ exhibition organized by the Federation of the Swiss Watch Industry FH, visited the two major Brazilian cities, Curitiba and São Paulo. This helped to lend exactly the right tone to the appeal and prestige that Swatch brands have for the public. Additionally, in the movie Caisno Royale, James Bond proved to be a strong spokesperson for Omega. This communications platform was labeled a success at an event in December of 2006, after impacting both journalists and consumers alike. Also in 2006, dogs were gathered together to celebrate the Swatch Special watch Gou Lai Su, dedicated to the Chinese New Year, the Year of the Dog.34
Target Audience: within Brazil
The target in Brazil remains the same as the global target for Swatch watch. The target embodies a youthful, provocative, stylish, and unpredictable.
Relationship with social institutions
National Holidays:
Holidays are often associated with gift-giving in the Brazilian culture. Important holidays include:
 The Feast of Three Kings, January 6, is celebrates the three kings who delivered gifts to the baby Jesus and concludes the Christmas celebrations. This holiday is mostly celebrated today in rural areas as children move from door to door singing songs and requesting gifts.35
 The ‗National Party,‘ is held 40 days before Easter, at the start of the Lenten season (or a season of abstinence from pleasure), four days prior to Ash Wednesday. The festivities include parades, samba, music, and costumes. The most popular celebrations occur in the larger more urban environments, such as Rio de Janeiro, São Paulo, Recife, Olinda, and Salvador. 36
 Brazilian Independence Day is September 7. Brazilians take pride in flying their national flag, particularly on this day, as it represents the ‗greatest democracy, most successful, and largest country in South America‘.37
Business Relationships and Etiquette: It is common to have middlemen working on behalf of both parties in a business situation.38 Knowing the right people will minimize any frustrations one might experience doing business in Brazil.39 Additionally,
34 The Swatch Group, Annual Reports, http://www.swatchgroup.com/en/investor_relations/annual_and_half_year_reports, 2010
35 Go Currency, Holiday Celebrations: Brazil, http://www.gocurrency.com/articles/holiday-brazil.htm, 2010
36 Just Brazil, Brazil Carnival, http://www.justbrazil.org/brazil/brazil-carnaval.asp, 2010
37 123 Independence Day, Independence Day in Brazil, http://www.123independenceday.com/brazil/, 2010
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gifts, such as jewelry and watches are not given in a business situation. They are reserved for more relaxed and personal encounters. However, gifts portraying sports teams are widely appreciated, especially among children.40
Household: Living in Brazil41 There are four variations of households.  Single people households are showing growth within the country, after a period of decline, as independence among young adults increases. These individuals are price sensitive and regularly consume value-added services and products, in particular those in the leisure and beauty industries. In addition, this segment of the Brazilian marketplace is less likely to be brand loyal. This is due to the lack of children, as a result, their disposable income is fairly high.  Couples without children are another consistently growing segment, due to lower birth rates. Again, due to lack of children, this demographic has a higher disposable income, and are less likely to be excessively price sensitive. These couples demand products that are differentiated and trendy.  The largest market share, couples with children, represents over 50% of total households (about 25 million). Predictably, this demographic segment is less likely to spend on luxury and superfluous items.  Single-parent families are also on the rise. This demographic is the most likely to purchase private labels. Higher income families in Brazil are also less likely to suffer any stigma from purchasing generic products as their social status is secure.
Subcultures42
Race: Demographics within Brazil The majority of Brazilians are white, while a significant majority identify as mulatto, or mixed white and black. Additional demographics present include Black, Japanese, Arab, and Amerindian.
Religion: Demographics within Brazil Nearly three-quarters of the population practice Roman Catholicism, while a significant minority identify as Protestant.
38 Doing Business in Brazil, http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Brazil.pdf, 2007
39 Doing Business in Brazil, http://www.communicaid.com/access/pdf/library/culture/doing-business-in/Doing%20Business%20in%20Brazil.pdf, 2007
40 1 World Global Gifts, International Gift Giving Etiquette – Brazil, http://www.1worldglobalgifts.com/brazilgiftgivingetiquette.htm, 2009
41 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
42 CIA world Factbook, Brazil, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, 2010
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Age: Demographics within Brazil The significant majority of the population, more than 80% (about 159 million people), is under the age of 64. Those between the ages of 15-64, measure the most voluminous (about 135 million people), with females slightly out numbering males. 43
Geography: Demographics within Brazil44 The people of Brazil are fragmented by geographic location. The most heavily populated areas are urban cities, such as San Paulo, Rio de Janero, Belo Horizonte, Recife, Salvador, and Porto Alegere. 84% (about 167 million people) of the total population lives in these areas.  In the Northeast, such as Fortalaza, the greatest proportions of people are of African descent. Northeast region is currently undergoing a growth spurt and is the focus of expansion for many manufacturers and retailers  In the South and Southeast, close to San Paulo, and Rio de Janero, Brazilians are generally of European (Italy, Germany, and Spain) and Japanese ancestry.  In the North and Central-West regions, like Manaus, the people are generally indigenous peoples or descendants of the indigenous peoples.45
Population: Demographics within Brazil46 The population in Brazil is around 198 million, according to the census in 2000. This makes the country, the sixth largest population in the world after China, India, the US, Indonesia, and the Russian Federation.
43 CIA world Factbook, Brazi, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, 2010
44 Everyculture, Countries and their cultures: Brazil, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
45 Euromonitor International, Top 10 Consumer Trends – Brazil, October 2008
46 CIA world Factbook, Brazi, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, 2010
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The nation is also the fifth largest in landmass in the entire world. Brazilians feel an affinity for the Motherland, and display a love for the flag, and ‗union,‘ which serve to unify the country.47
Language: Demographics within Brazil48 As a nation, Brazil is monolingual, speaking Portuguese, despite popular belief that many speak Spanish. However, many middle-class and elite Brazilians study English and to a lesser extent Spanish, French, and German.
Social Infrastructure: Demographics within Brazil The Sudeste region has the biggest potential market size accounting for 55.5% of all household expenditure (equivalent to US$358 billion) in Brazil in 2006. This averages US$15,583 per household in 2006, almost a quarter more than the national average.49
Elements of culture: Values based on Hofstede Dimensions50
47 123 Independence Day, Independence Day in Brazil, http://www.123independenceday.com/brazil/, 2010
48 Everyculture, Countries and their cultures: Brazil, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
49 Euromonitor International, Top 10 Consumer Trends – Brazil, October 2008
50 De Mooij, Marieke, Global Market and Advertising, 2005
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High Long Term Orientation:51 For Brazilians, having a long-term orientation means that the mother often cares for children, children develop thrifty spending habits, and added emphasis is placed on the past and tradition. The future is a guide to present action, but the past is looked to for inspiration. Time is also circular and conceived as a line of sequential events. Combined with the collectivism dimension, Brazilians value family ties, long-term thinking, filial piety, and paternalism. High Uncertainty Avoidance Index: 52 Brazilians have a higher level of anxiety and tension, which must be released by showing emotions, talking loudly, and using hands while speaking. Brazilians are less open to change and innovation. For example, conflict and competition are seen as threats. There is a need for implicit rules rooted in tradition and formality to structure life, which translates into the search for truth and a belief in experts. ―The expert must be a real expert with degrees in specialized areas in order to be called an expert.‖ 53 Low Masculinity Index: 54 Brazil is a feminine and people-oriented society, where the citizens care for others and the quality of life. For example, children feel sympathic for the underdog at a young age. Sex roles are also interpretted more fluidly; greater value is placed on cooperative efforts and services—males can take female jobs without being seen as sissy. Although all Brazilians enjoy wearing vivid, vibrant, bright colors, a core value is modesty.
High Power Distance Index: 55 Brazilians respect authority, and a hierarchical order remains in society. As a result, acceptance and giving of authority comes naturally. One‘s social status must be clear so that others can show proper
51 De Mooij, Marieke, Global Market and Advertising, 2005
52 De Mooij, Marieke, Global Market and Advertising, 2005
53 De Mooij, Marieke, Global Market and Advertising, 2005
54 De Mooij, Marieke, Global Market and Advertising, 2005
55 De Mooij, Marieke, Global Market and Advertising, 2005
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respect. People are well groomed, in particular when in public; the clothes you wear, your shoes, your posture, and your makeup define your position in the social hierarchy. In addition, being the number one brand is important. A brand that has entered the market early and is viewed as number one brand will remain so more easily than in low power distance cultures. Low Individualism Index: 56 Low Individual indicates that Brazil is a collective country. The family, which tends to be large and close-knit, is the center of the social structure, providing members security and connections. Brazilians belonging to the same in-groups look after each other in exchange for loyalty. The social norms of the in-group are favored over individual pleasure. Relationships with people have priority over other things in life. Brazilians enjoy meeting friends in public places like bars, cafes, and restaurants. Though they are particularistic, Brazilians accept that different groups have different values. In terms of business, during the sales process, it is necessary to first build a relationship and trust between parties. This is reflected in advertising and direct selling, and allows consumers to feel apart of the group. The Brazilian culture pays attention to relationships between objects—the parent brand is viewed in terms of overall reputation. Thus, corporate brands are favored over product brands. Brazilians will also perceive a higher degree of brand extension fit for extensions in product categories far from those associated with the parent brand. There is not a consistent relationship between attitude and future behavior, and no sure mechanism of predicting consumer behavior.
Culture, In General:  Brazilians are expressive, gravitate towards emotions and feelings, and are very keen on acquiring ‗happiness‘ through what they buy.  They prefer face-to-face meetings more than written communication.57  As one‘s guest, the rule is to bring the hostess flowers or a small gift.58  Colors have different meanings. Purple and black are mourning colors. 59,60 White is essential and signifies gift-giving time. Fiery orange and yellow means the birds of the Brazilian rainforest. Red is a cheerful color. Green is reminiscence of the jungle and color of life and wealth of the Colombian emeralds. Blue is connected to the ocean and a source of travel, food, ambitions and hope for greatness.61
56 De Mooij, Marieke, Global Market and Advertising, 2005
57 Communicaid, Doing Business in Brazil: Brazilian Social and Business Culture, 2007
58 Kwinteseential, Brazil: Language, Culture, Customs, and Etiquette, 2010
59 Everyculture, Countries and their cultures: Brazil, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
60 EveryJoe, Color Meanings Around the World, http://www.everyjoe.com/articles/color-meanings-around-the-world/, 2007
61 Living Arts Originals, Color Symbolism in Global Graphic Design, http://www.livingartsoriginals.com/infocolorsymbolism.htm, 2010
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 Music plays an important role in culture, and Brazilians are best known for Samba and the Bossa Nova styles of music that is filled with passion, joy, and rhythm. 62  São Paulois is generally considered the center of inspiration for many graffiti artists worldwide; the most popular artist is Tristan Monco.63
Meaning of Communication
Nonverbal Communication: High Context  Brazilians prefer implicit language, and derive information from indirect verbal interaction and non-verbal cues. Information is followed more easily between members of the group and there is less need for explicit communication.64  Brazilians also place emphasis on touch. Common interactions include long handshakes, kissing greetings, and expressive gestures. The average personal distance is three to four inches closer than in the US.65
Time Orientation:  Brazil is a polychromic culture. Polychronic people are multi-taskers. However, the Southeast is more time-conscious than the slower paced of life of the interior or the northeast.66  Brazilians stand out as one of the most disoriented people in the world. Time has flexibility, therefore punctuality and precise plans are not common.  Time also differs based on location: In Sao Paulo and Brasilia, it is important to arrive on time for meetings, while in Rio de Janeiro, it is acceptable to arrive a few minutes late.67
Consumption decisions and behavior  The richest 10% of households each have a disposable income of US$72,932. This group is comprised of 20.2 million people, most of them professionals with postgraduate degrees and businessmen.68  The following chart indicates disposable income by education and age. ―Secondary school graduates experienced an increase in mean annual disposable income levels that exceed those with higher education degrees, but new laws regulating different occupations may negatively impact the growth of
62 Everyculture, Countries and their cultures: Brazil, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
63 Everyculture, Countries and their cultures: Brazil, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
64 De Mooij, Marieke, Global Market and Advertising, 2005
65 Doing Business in Brazil, http://www.referenceforbusiness.com/encyclopedia/Assem-Braz/Brazil-Doing-Business-in.html, 2010
66 Doing Business in Brazil, http://www.referenceforbusiness.com/encyclopedia/Assem-Braz/Brazil-Doing-Business-in.html, 2010
67 Euromonitor International, Brazil: Country Pulse, January 2010
68 Euromonitor International, Top 10 Consumer Trends – Brazil, October 2008
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secondary schooling income levels, as these individual may have to obtain university degrees to continue practicing in their distinct professions.‖69 Meanwhile, income levels based on gender differ drastically. While most men hold senior executive and management positions, and most females have lower-level positions, yet, female wages have increased at a faster rate. This is consistent with female lifestyle changes, such as waiting to have children in order to establish a career.
How frequently do you shop? Buy?  Both men and women value appearance. They dress conservatively and are highly fashion-conscious, more so than other emerging countries. Local celebrities shape fashion trends.70  Brazilians are buying more personal and travel goods, such as watches. These items are commonly purchased as gifts on special occasions and available at many price points and in a variety of distribution channels. Watch replacement cycles have accelerated, particularly among younger consumers who tend to purchase inexpensive models to wear as fashion accessories rather than specifically as a means of telling the time. A trend towards selling ladies watches due to their rising disposable income has also emerged.71 Consumers tend to look for watches that reflect their own fashion, lifestyle and status.72  Key distribution channels are shopping centers and specialist independent shops. The rapid growth of multi-product hypermarkets is driving sales of inexpensive personal items, displacing sales among specialty retailers, such as watch retailers.73
69 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
70 Euromonitor International, Brazilian consumers in 2020: A look into the future, October 2009
71 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
72 Euromonitor International, Watches – Brazil, August 2006
73 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
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 Neo-consumers, a new type of consumer, are visiting brick and mortar stores and researching through other media channels, such as magazines, interactive, digital, television, the internet, and mobile phones to aid with the buying decision. Seventy-three percent of Brazilians (145 million people) use the internet to decide which brand to buy, compared to world average of 52% of a country‘s population.
Culture and Media
Home Connectivity:  Internet: The total number of internet subscribers has grown at an average annual rate of 25.5%, and reached a penetration of 11.4 million users. Broadband represents 88.6% of the total connections, but penetrates only 13% of the households (6.5 million households).74  TV: 3.15% of households (1.575 million households) have satellite TV with Sky/DirecTV commanding more than 90% of the market, 5.99% of households (about 3 million) have cable TV, and 1.8% (900,000 households) have digital cable.75 A global survey on advertising found that Brazilians still have relatively high levels of trust in advertising (67%, or 132.6 million people).76 In addition, Brazilians like and admire advertising, especially if it is entertaining. Most television programs are sponsored, and, thus, accompanying advertisements play an important role in constructing common values, desires, and lifestyles in Brazil. Product placement is a familiar and highly successful marketing device, especially during soap operas.77  Household possessions of digital equipment differ by annual disposable income. Overall, across all income levels, an internet enabled computer is owned in most households. Followed by cable TV, and lastly satellitte TV systems. The most valuable income level is Decile10 (US$72,944), because this household owns more digital equipment in comparison to other income levels (53.6% have Internet enabled computers, 32.1% have cable TV, and 20.2% have satellite TV systems). 78
74 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
75 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
76 Euromonitor International, Brazil: Country Pulse, January 2010
77 Advertising Educational Foundation, ADText: Advertising Curriculum, http://www.aef.com/on_campus/adtext/adtext_unit/16, March 2010
78 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
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79  Brazilian households are forecasted to have a high penetration of mobile telephones and broadband enabled computers from 2008 to 2020. This presents an opportunity for Swatch to invest in advertising online and on mobile phones. In 2020, 95% of households (47.5 million households) are forecasted to have mobile telephones, 50% of households (25 million households) are forecasted to have broadcast enabled computer, 40% of households (20 million households) are forecasted to have telephones, 10% of households (5 million households) are forecasted to have cable TV, and 5% of households (2.5 million households) are forecasted to have satellite TV systems. 80
79 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
80 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
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Mobile Advertising:  Mobile web traffic is concentrated in southeast Brazil; and around major cities such as Sao Paulo, Rio de Janeiro, Minas Gerais, Espirito Santo, Brasilia and Goiania. Although 12 million Brazilians (six percent of the population) regularly access the web using their mobile phones, people are still learning how to use the mobile Web. Over 80% of mobile phones are prepaid (120 million phones).81  90% of Brazilians surveyed in December 2008 expressed their preference for mobile telephones featuring functions like digital cameras, mp3 players or video cameras.82
Publishing:  There are 52 premium publishers including three top Brazilian newspapers: O Globo, Estadao, Folha; Rolling Stone Brazil, Caras Magazine, Webmotors, Guia da Semana, IDG Now, Nintendo World, Valor, Meio and Mensagem.83
Internet/Social Media:  Internet cafes (cybercafes, or ‗lanhouses‘ as they are called in Brazil) are very popular.  Consumers prefer computers to television and spend more time, on average, reading newspapers or watching TV than their peers in other countries like the USA, Japan, the UK or Germany.84 Six percent (3.8 million) of the country's Internet users go online for news and 19 percent (12.3 million) for entertainment.85  The social media user base is young, with almost two thirds of users below the age of 35. Blogging sites are very popular. Internet users have a hunger for multimedia content, socializing and entertainment, although low broadband penetration limits the market for this particular segment.  15% (9.7 million) of Brazilian internet users use Twitter; this surpasses richer countries like the US in percent of penetration, where users of the service amount to 10.7% (23 million) of all internet users.  Brazilians prefer content that is presented in their native language, with local entertainment websites ranking among those most visited overall.86
81 The insider’s guide to mobile marketing in Brazil, http://mobithinking.com/interview-transcripts/the-insider-s-guide-mobile-marketing-brazil, April 2009
82 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
83 The MobiThinking Guide to mobile advertising networks 2010: Premium networks, http://mobithinking.com/mobile-ad-network-guide/premium, 2010
84 Euromonitor International, Brazilian consumers in 2020: A look into the future, October 2009
85 Twitter Usage: Brazil Takes The Lead, http://www.india-server.com/news/twitter-usage-brazil-takes-the-lead-10112.html, August 2008
86 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
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Recommendations There are many things that the CreArt campaign is doing right when it comes to marketing in Brazil. However, with the implementation of the recommendations below, as well as adjusting the global campaign for local tendencies, Swatch can better target the Brazilian market.
Work with a Local Ad agency It is essential Swatch work with a local advertising agency to create, develop, and distribute any marketing material for the CreArt campaign. Swatch, as a global company has expertise in its product, but certainly not in the Brazilian culture. By utilizing the guidance of an agency, Swatch‘s efforts may be received positively and publicized widely. Swatch salesforce should develop strong bonds with their retailers in Brazil. This would give an advantage to Swatch over other brands in terms of product placement and marketing push. Swatch might also choose to set up a corporate headquarters in Brazil if it wants to pursue the market heavily.
Continue targeting Experiencers and Strivers
Swatch should promote its‘ message of being a youthful, provocative, stylish, and unpredictable, but affordable watch.
This means that the most lucrative target is the educated couple with no kids, due to the double income resulting in high disposable income. These individuals are receptive to the trendy fashion and seasonal orientation offerings of Swatch. There are, however, fewer of these individuals in Brazil, which limits target audience potential on the surface.
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Already positioned globally as a less expensive watch, Swatch thereby appeals to those who desire quality and fashion yet may not have the funds to purchase top brands. This appeal speaks to younger couples with children who seek high quality, fashionable, expressive, yet inexpensive watches.
Swatch should also mull over whether targeting only young women is appropriate. Though they have increased disposable income, they may or may not fit the profile of a Swatch user. It is most appropriate to target both genders, as the graffiti can appeal to both genders. Additional campaigns running along side the CreArt campaign, such as the Colour Code campaign, should target specific genders‘ desires.
Associate Swatch with gift giving occasions
The watches must be associated with gift giving occasions, as a youthful, intelligent, and long-lasting gift a parent might enjoy giving his or her child. To do this, the campaign‘s timing should peak before and around certain gift giving holidays (which are often Catholic in nature). To tie holidays with the Brazilian sense of fashion, changing seasons, and limited edition, the CreArt Collection should also change with the holiday seasons. The imagery featured should promote these values.
Promote Brazilian pride
Brazil, or the motherland, as Brazilians affectionately call it, will become the first South American country to host the Olympics—the city of Rio de Janeiro was chosen to host the 2016 Games. This provides an opportunity for Swatch. For example, Swatch could officially sponsor a sport, like volleyball. It is also fair to say that Brazilians and tourists will be drawn to the fun, bright colors found in Swatch watches, as well as any commemorative Olympic memorabilia.
During the time leading up to the 2016 Olympics, Swatch should leverage and solicit local artists to create Brazilian pride themed Olympic CreArt watches. Brazilian athletes, particularly from volleyball (which Swatch already sponsors), could also design a Brazilian pride CreArt watch.
Appeal by using Brazilian values
A popular appeal is prestige. Because the power distribution affects not only workplace environments, but walking down the street and how people look, this is important for Swatch. Swatch has the opportunity to align its brand with a social status. Essentially, if you have a Swatch watch, it means you‘re fashionable and brand conscious, you care about your looks, and yet you‘re thrifty.
Advertisements should depict style, sensuality, and satisfaction, as the Brazilians are emotional consumers.
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Brazil prefers indirect and implicit advertising styles that use drama and metaphors. The drama style is soft and metaphorical stories are used to place the product in a context that provides meaning. Communication should allude to shared experiences and employ high context communication to convey a wide range of emotional responses, and work on building an emotional relationship between the brand and consumer. Ideas to expand this relationship and create a dialogue include the Internet and guerrilla marketing, such as a pop-up store or viral marketing through social networks.
One example of a pop-up store that Swatch has implemented and could bring to Brazil is the Swatch Instant Store concept. This idea is fresh and innovative because the store can be easily set up and dismantled. One benefit of this is that a Swatch Instant Store could make an appearance in any major city, with a different inside and outside layout. Another perk is that the Instant Store could be erected to coincide with a festival or event. This element of surprise captivates customers and raises awareness of Swatch watches, which is what The Swatch Group needs to do with the CreArt Swatch watches in Brazil in particular.87
The following are photos of Swatch Instant Stores in various cities.
Montreux, Switzerland, July 3, 2005
Madrid, Spain, Preciados, September 6, 2005 – October 2, 2005
Paris, France, Rue Rivoli, April 26, 2006 – August 4, 2006
87 Swatch Instant, http://www.swatchinstant.com/htmlsite.php?store=6, April 2010
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Amsterdam, Netherlands, Schiphol II Airport, November 1, 2006 – December 31, 2006
Leipzig, Germany, Promenaden Hauptbahnhof, September 15, 2007 – October 15, 2007
Berne, Switzerland, Hauptbahnhof, May 17, 2008 – July 17, 2009
Swatch should implement the ‗slice of life‘ framework to tie together metaphors and the emotion of consuming both pre-purchase and post-purchase. Since Brazilians are very disoriented, the CreArt Swatch watch should be shown as a solution to this problem. This is a shift from what the CreArt campaign has focused on by using animated spots.
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Leverage music that contains elements of passion, joy, and rhythm in the commercial elements of a campaign, or as background noise to the website or store to appeal to the Brazilian‘s love of music.
Media mix should include: TV, Newspaper, Mobile, and Social Media
Currently the CreArt campaign heavily relies on TV commercials and online mediums. Both these mediums are strong vehicles to targeting the Brazilian consumer, yet mobile and newspaper advertising should be added. Considering much of Swatch‘s global integrated communication is through the digital online media worldwide, leveraging events, mobile, stores, and print mediums more heavily in areas where the cost of internet services are prohibitive, such as in suburban areas, may be more effective. When planning the digital elements to the campaign, it should be assumed that the message will only reach the most urban and wealthy areas. In addition, when designing the promotional elements, the rules for the promotions should be accessible as well as enforced to relax Brazilian consumer‘s worries. As watching TV is a common pastime among all social classes, Swatch should invest in commercials to reach a wide audience and raise awareness of its brand. These advertisements must be engaging. For television it is also suggested for Swatch to sponsor television programs and product placements during soap operas, for example. Newspaper advertisements are also a strong option as Brazilians enjoy reading newspapers. These advertisements could utilize some of CreArt‘s current MTV playhouse content, by encouraging participation through voting on different artists. Mobile advertising is increasing in popularity. More feature-rich devices have stimulated the growth of mobile internet usage and paved way for feature-rich mobile advertising. Yet, this medium should only be a portion of the media mix and serve to drive consumers to other mediums or advertise for events. With the popularity of internet cafes, Swatch could create an internet café landmark, just as they‘ve created a Swatch Art Peace Hotel. This would reach their target market and create buzz in Brazil.
Social media is an absolute ―must‖ to reach the younger audience. This content should engage, inform, and entertain. More importantly, it should be relevant and interactive. Perhaps, Swatch could introduce a blogging site about cool and new upcoming art (art, as in artists, designers, industrial design, web design, etc.), or take suggestions for new CreArt artists. Brazilians should also have the option of viewing the information in their native tongue via a toggle switch. Possible sites include Orkut (the most popular social networking site in Brazil), Microsoft Network, and Facebook.
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Continue to build a community around the CreArt campaign
For Swatch, recognizing the connectedness of the culture is key, meaning building relationships in-store, and a community online. The notion of toting two Swatch watches, while popular in some higher masculinity cultures, like the United States, would be seen as showing off an not modest to the in-group. Therefore, this should not be a campaign objective for consumers in Brazil. Incorporating elements of ‗zest for life,‘ such as the bright colors, would appeal to the culture. Since Swatch is not promoted as widely as other Swatch Group brands in Brazil, Swatch might appear to the younger audience as an underdog in which they can champion. This is also important for a Swatch spokesperson.
Having a well-known spokesperson, like a Brazilian celebrity or athlete endorser (who designed a CreArt watch) appeals to the collectivist nature. People tend to describe themselves in relation to other people and may prefer to associate brands in relation to real people they view as a role model and trend-setter.
In addition, developing a community, such as the MTV Playground and Swatch the Club associates the Swatch brand with a community of brand lovers and modernizes it by using social media tools. This can focus on the in-group benefits of harmony and family. Because these two Swatch marketing assets are leveraged by multiple campaigns for multiple products, they are more largely associated with the brand, Swatch, as whole rather than specific products.
Leverage Distribution Channels: Retail Stores
Because much of the population, and the target market, live in centralized urban environments, Swatch retail locations are prime consumer touch points. Leveraging and incorporating the mainly urban retail locations into the marketing mix is key. Brazilians buy via emotional consumption, and while 82% of Brazilians are literate (about 162 million people), they prefer face-to-face meetings than written communications. Therefore, better personal selling could be employed in stores. The salesperson should carry a conversation with prospective customers and allow them to touch and try on the Swatch watches. There could also be training and incentives for each retailer who is able to pass a sales benchmark. Also at this location, point of sale marketing pieces, such as CreArt posters, brochures, driving sign ups for loyalty cards, or even televisions running a loop of the commercials, would enhance the emotional consumption. By focusing on retail locations, Swatch can drive awareness for the CreArt campaign in store.
As for specific retail locations, the Northeast region‘s population is growing rapidly and is the focus of expansion for many manufacturers and retailers; therefore, Swatch should consider investing stores in this location. Swatch could also consider selling products in multi-product hypermarkets and leverage their distribution business to develop strategic global retail locations.
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Use Portuguese for Communication
Though most Brazilians understand Portuguese, few comprehend English enough for marketing materials to communicate effectively. CreArt‘s global campaign currently is mostly visual, but the website and promotional print materials are all in English. Simply adding a toggle button on the website to switch from English to Portuguese as well as printing the materials in Portuguese would remedy this.
Leverage Swatch’s Brand Heritage
Because the best watches worldwide are associated with Switzerland and Swatch is a Swiss company, this is opportunity to promote the authoritarian or expert-like image on watches. This authority gives credit to the brand in Brazil. Promoting more corporate communications, such as press releases and press conferences related to the CreArt marketing campaigns will increase authority as well.
Leverage Color and Music Swatch should also be wary of what colors the product exhibits. For example, purple and black may not be acceptable as popular colors, but red, blood and green may be. For the CreArt campaign, this is a notable consideration, as the campaign logo is black. Having a versatile logo, that appears in a spectrum of colors, and is flexible to the situation and specific culture, similar to the Google logo, might create a more positive reaction.
In regards to music, the CreArt Swatch campaign can leverage music of similar personality traits as the Swatch brand, as this is an art form as well. This music can be delivered to the consumer in the form of Internet radio, or radio via consumers‘ mobile devices. In addition, to enhance the consumer experience, the Swatch store can reinforce the in-store experience with the CreArt Swatch music.
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Japan
Present: Swatch Group in Japan
Swatch Group (Japan) KK‘s brands represent all product categories, from the high-end Prestige and Luxury Range, to the low price Basic Range. With high quality and reliable products, Swatch is able to meet the needs of the most demanding and sophisticated customers.88
The Swatch Group (Japan) KK seeks to offer the highest-quality products fashioned with both cutting-edge technology and carefully-observed, traditional Swiss craftsmanship. At its facilities, Swatch strives to adopt the same approach to post-purchase services that is employed by the craftsmen.
Current Swatch campaigns running in Japan include:
 Snowboard Championships: Swatch sponsors the TTR World Snowboard Tour in Japan.
 Beach Volleyball: SWATCH delivers reliable time-stamped results for each of the 20 events via the SWATCH FIVB World Tour 2009.
 Colour Code Swatch watches: Swatch released 20 different Swatch watches as its Colour code collection and promoted it through commercials, posters, and brochures.
 The Club watch: This watch, exclusive to Swatch the Club members was launched on the April 1,2008, and is currently being sold to club members.
Past: Marketing History from Swatch Group in Japan
 70s of last century: During this time, the Swiss watch making industry was severely damaged by competitors from the Japanese matchmaking industry such as Casio, Seiko, and Citizen. These watches were for low-income consumers needing a digital timekeeping solution, and were produced using low-cost manufacturing, and promoted through large-scale marketing.89
 Restructure: As a reaction to the Japanese watch making industry, Swatch restructured the target audience to focus on the young generation, who was influenced less by traditional culture. Swatch shifted form the ‗economic model watch‘ into the ‗style fashion model‘ for the low-end market segment targeting consumers aged 18-30 years old. These young people did not have much money to buy high-end watches, but needed a fashionable watch that could be personalized.
 Slowly and Softly: Although Swatch‘s unique image and message of ‗fashion, fun, high-quality, low-cost‘ catered to young people successfully, Swatch avoided trying to expand in Japan too quickly. It
88 About us: Company outline, Japan swatch group, http://www.swatchgroup.jp/about/outline_en.html, 2010
89 Business and Company Recourse Center, Times change, the swatch hits Japan, 1994
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developed slowly and methodically, building the trust of Japanese customers and the trade. The Japanese are known to be critical of brands, but once they accept a brand, they are among the most loyal in the world. Swatch limited its distribution to Tokyo and Osaka, where the watches were sold through leading department stores, and marketed with an approach that was compatible with the Japanese character.
 Recession-proof prices: An additional factor that helped to promote Japanese sales is that Swatch watches, despite their quality, were low-priced. Additionally studies showed that Japanese consumers were relatively accepting of Swiss watches‘ slightly more expensive price (than other low-end Japanese competitors). Therefore, the relatively modest price tag along with the high-quality and value, helped Swatch withstand the 80s recession.
Target Audience: within Japan
In Japan, swatch retains the same target as global target, targeting young people who are youthful, provocative, and fashionable with distinctive taste, bold, and fearless pioneer spirit.
Relationship with social institutions
Personal and Business Relationships and Etiquette:
 In Japan gifts are expected, as they are important in both business and personal gifts. The exchange of gifts is strongly rooted in tradition, where the gracious style used to present and receive them is emphasized.
 Gift giving is an art form, representing friendship, respect, and gratitude. The gift-exchange ceremony is important. The gift is always in a gift box, or beautifully wrapped in quality paper, and given with great respect. Because this symbolism is what‘s important, the actual gift may be modest.
 There‘s an expectation that a gift will be offered upon the first meeting, and gifts will continue to be part of your business dealings. It is a gesture that you are looking forward to a long lasting relationship.
 Usually, a gift should be half the value of a gift received. If your gift is too expensive, it could create an awkward situation.90
National Holidays:
There are two ‗gift-giving‘ seasons each year. One is mid-summer (O-Chugen) and the other at the end of the year (O-Seibo). A gift should be given during each of these seasons.91 These main gift-giving seasons
90 International Business Center supporting global business, International Business Meetings and Gift Giving, http://www.internationalbusinesscenter.org/international_business_gifts_greetings.html, 2007
91 International Business Center supporting global business, International Business Meetings and Gift Giving, http://www.internationalbusinesscenter.org/international_business_gifts_greetings.html, 2007
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focus on the presents that one gives to other people in appreciation of the help and kindness that they have shown you during the year. These gifts are an expression of gratitude.92 The people which these gifts are given include: friends, relatives, neighbors, colleagues, supervisors and clients. During the seasons promotional TV spots, special packaging, and special placements occur to sell gifts.
Subcultures
Population: Demographics within Japan
With a population of over 128 million and an overall area slightly smaller than California, Japan is one of the most densely populated nations in the world. 93
Geography: Demographics within Japan94
The mountainous character of Japan causes the population to concentrate within limited plains and lowland area such as Tokyo, Yokohama and Osaka.
Ethnicity: Demographics within Japan95
The Japanese, representing 99% of the population in Japan (126.72 million people), regard themselves as a single, homogenous, ethnic group. Other than people of Japanese ancestry, there are a few groups of minorities in Japan, including: the Koreans, who represent 1% of the population, Chinese, Brazilians, Filipinos, people of Okinawan origin, and the indigenous Ainu. A small number of foreign residents from Europe and North America also take up residence in Japan.
Religion: Demographics within Japan
Shintoism and Buddhism are the major religions in Japan. 83.9% practice Shintoism (103 million people), 71.4% practice Buddhism (91 million people), 2% practice Christianity (2.5 million people), and 7.8% (about 10 million people) practice other religions. Because many people belong to both Shintoism and Buddhism, total adherents exceed 100%.96 Buddhism has a strong influence in Japan's fine arts, social institutions, and philosophy. Most Japanese observe Buddhism and Shinto rituals, the former for funerals and the latter for births, marriages and other occasions.97
Age: Demographics within Japan
According to the 2005 census, Japan had a greater proportion of elderly people than anywhere else in the world. Those that are 65 years-old and over, represents 21% of the total population (about ,27 million
92 Tokyo Work Life, What is ‘O-chugen’? What is ‘O-seibo’?, http://www.tokyoworklife.com/manners/what-is-ochugen-and-oseibo.html,
93 CIA World Factbook, Japan, https://www.cia.gov/library/publications/the-world-factbook/geos/japan.html, 2010
94 CIA World Factbook, Japan, https://www.cia.gov/library/publications/the-world-factbook/geos/japan.html, 2010
95 Country Watch, Japan, http://www.countrywatch.com.proxy.emerson.edu/cw_topic.aspx?type=textandvcountry=86andtopic=CLPEO, 2010
96 Central Intelligence Agency, The World Factbook --Japan, https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html, 2005
97 Country Watch, Japan, http://www.countrywatch.com.proxy.emerson.edu/cw_topic.aspx?type=textandvcountry=86andtopic=CLPEO, 2010
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people), while the percentage of children under 15 ranked lower than anywhere else, globally. The aging and decreasing youth of the population presents a serious long-term challenge to the country.98
Language: Demographics within Japan
Japanese is the only language in Japan. The rate of literacy is 99% of the population (126.72 million people).99
Etiquette: Dress and accessories in Japan
Dress is Japan is important, and some experts suggest that some Japanese would rather spend their money on clothing rather than food. Fine clothing and accessories from esteemed fashion houses are popular in certain urban Japanese circles. 100
Lifestyles:
Pursuing work-life balance
 The pursuit of a greater work-life balance has also led to many young Japanese to make a break with the traditional family-centric lifestyle of Japan. Under the trend of pursuing work-life, Japanese young people are prone to identify themselves separately from the older generations. This has led to an increased consumption of recreational and leisure goods and services among this younger demographic.
 A current trend towards higher rates of consumption on relatively expensive home entertainment equipment, such as videogames, MP3 devices and high-definition (HD) televisions, and an increased propensity to spend on fashion and cosmetic retail currently prevails throughout Japan.
Growing e-commerce
 Japan is the considered a front-runner for internet enabled economic growth, in particular e-commerce (electronic commerce). The most basic type of electronic commerce is smartcards, which act as either pre-paid or a directly debited form of payment. This method has been gained popularity for transportation purposes, such as over-ground and underground trains.
 Increased usage of the internet and of mobile devices among the younger and older customers, as well as the increasing confidence in online payment security, has resulted in heavier investment in the development of online retail spaces. Thus, online grocery shopping, payment of utility bills, and travel and ticketing, are all gaining popularity in Japan.
Ageing population
 The nation‘s population of over-60s holds three-fifths of the total household savings.101
98 Country Watch, Japan, http://www.countrywatch.com.proxy.emerson.edu/cw_topic.aspx?type=textandvcountry=86andtopic=CLPEO, 2010
99 Central Intelligence Agency, The World Factbook --Japan,https://www.cia.gov/library/publications/the-world-factbook/geos/ja.html, 2002
100 Country Watch, Japan, http://www.countrywatch.com.proxy.emerson.edu/cw_topic.aspx?type=textandvcountry=86andtopic=CLETQ,Cultural Etiquette, 2010
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Elements of Culture: Values based on Hofstede Dimensions102
Average Power Distance Index:
To the Japanese, behavior that recognizes hierarchy is as natural as breathing. It means, ‗everything has its place‘. In Japan, every greeting, every contact must specify the kind and degree of social distance between individuals.
 One‘s social status must be clear so that others can show proper respect. Global brands help define one‘s social status.
 Being the ‗number one‘ brand is important. A brand that has entered markets early and is viewed as the number one will retain that position more easily that it would in low power distance cultures where challengers are favored with ‗we try harder‘ approaches.
 In high power distance cultures, older people are important due to a respect for old age.
 Strong dependent relationships between parents and children, boss and subordinates, professors and students, master and learners exist.
Low Individualism Index:
Japanese people belong to in-groups that look after each other in exchange for loyalty.
 In collectivism cultures like Japan, people are ‗we‘-conscious. Their identity is based on the social system to which they belong, and avoiding loss face is important. Collectivism cultures are also ‗shame‘ societies. When one has done something wrong, it reflects not on oneself but on the group to which one belongs, and one therefore feels shame. Collectivism cultures are high-context cultures.
 Members of collectivistic cultures emphasize the goals, needs, and views of the in-group over those of the individual. The social norms of the in-group are favored over an individual‘s pleasure and shared in-group beliefs are treasured over unique individual beliefs. The type and rank-order of importance of in-group varies from the extended family to the large community such as the
101 Euromonitor International, Consumer Lifestyles in Japan, February 2009
102 De Mooij, Marieke, The Global Marketing and Advertising, 2005
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occupational unit in Japan. Modernization in Japan has made the occupational unit more important than kinship links.
 ―We‘re finding that teenagers are teenagers everywhere and they tend to emulate U.S. teenagers.‖
 The Japanese feel so unique that they cannot and will not imagine that Westerners will ever be able to adopt their values and behaviors.
 In collectivistic cultures, corporate brands are favored over products. You can build a relationship between the company and consumers better than between an abstract brand and consumers. People are more interested in concrete product features than in the abstract brand.
High Masculinity Index:
The dominant values in a masculine society, such as Japan, are achievement and success.
 In masculine societies, performance and achievement are important. Achievement must be demonstrated; therefore status brands are key to showing one‘s success. Essentially, bigger and faster are more beautiful.
 Being a ‗winner‘ is positive in masculine societies, and children learn to admire the strong.
High Uncertainly Avoidance Index: This index can be defined as the extent to which people feel threatened by uncertainty and ambiguity and try to avoid these situations.
 In a culture of strong uncertainty avoidances, there is a need for rules and to structure life. This translates into the search for truth and a belief in experts. Communication is formal, and conflict and competition are threatening. People generally have a high level of anxiety and tension, which must be released. This is done in various ways, by showing emotions, talking loudly, using hands while talking, driving cars more aggressively, and embracing more emotionally.
 The expert in strong uncertainty avoidance cultures must be a real expert, qualified with degree in specialized areas.
 The Japanese feel the need to structure reality. Combined with their collectivist nature and power distance, rules are external, implicit, and rooted in tradition.
High Long Term Orientation Index:
The extent to which a society, such as Japan, exhibits a pragmatic future-oriented perspective rather than a conventional historic or short-term point of view defines the characteristic of long or short-term orientation.
 The Japanese value perseverance, thrift, and having a sense of shame. They also order relationships by status and observe this order.
 The combination of long-term orientation and collectivism results in family ties, long-term thinking, and other elements of the Confucian philosophy such as filial piety and paternalism. This is reflected in the popular practice of family entrepreneurship. Pragmatism is an important aspect of most East Asia
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cultures. They adapt to other cultures in such a way that Westerners are often fooled and think they are Westernizing.
 A strong value in long-term orientation cultures is reverence for nature. This is also related to the Japanese collectivist nature. The harmony of man and nature is particularly important, and plays a strong role in people‘s lives. Nature and symbols are important elements of advertising in Japan.
Meaning of Communication103
Nonverbal Communication: high context
 In a high-context communication or message, most of the information is part of the context or internalized within the person; very little is made explicit as part of the message.
 In collectivistic cultures, information flows easily between members of the group, and there is less need for explicit communication than in individualistic cultures.
 Japan is often referred to as a ‗high-context culture‘ where even the smallest gesture carries great meaning. Therefore, one should avoid expansive arm and hand movements, unusual facial expressions, or dramatic gestures of any kind. In the realm of paralanguage, note that pointing with the index finger is impolite. Instead, one should wave one's hand, palm up, toward the object being indicated. Direct eye contact is not the norm; lowering one's eyes is a sign of respect.104
Consumption decisions and behavior
Harmonizing consumption:105
Increased income disparity stems from two causes: the growing age of the population of Japan and the effects of the long-term recession in Japan‘s labor market. These trends have lead to the Japanese watch market split into two categories: a low-priced, budget sector, and a premium, value-added sector.
Many consumers are increasingly eager to spend heavily on items they desire most and economize in other areas, creating a harmony between luxury and economy. Retailers are seeing an increased demand in watches, particularly from the younger generation. Domestic players will eventually lose their dominant share of the market as more consumers opt for foreign brands, such as Swatch.106
103 De Mooij, Marieke, The Global Marketing and Advertising, 2005.
104 Country Watch, Japan, http://www.countrywatch.com.proxy.emerson.edu/cw_topic.aspx?type=textandvcountry=86andtopic=CLETQ,Cultural Etiquette, 2010
105 Euromonitor International, Consumer Lifestyles in Japan, February 2009
106 Euromonitor International, Watches in Japan, 2006
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Culture and Media107
With a highly efficient infrastructure, the markets of the technology, communications and media (TCM) industries are growing in Japan. Mobile phones and the internet are widely used among Japanese consumers, especially among the youth market currently drives the Japanese market.
Mobile Connectivity:
 Japan's mobile communications market is highly competitive. NTT DoCoMo, KDDI and SoftBank Mobile are the three largest mobile phone service operators, and altogether represent more than 90% of the market. In 2009, the rate of household108 penetration of mobile phones reached 92.5% (about 118.4 million households), and revenues from Japan's mobile sector accounted for 80.0% (US$142.6 billion) of total telecom revenues.
 Japan's mobile phone operators have been focused on cutting-edge technologies and value-added services. Japan has led the world in almost all innovations in the mobile phone industry such as emails, music downloading, mobile payments, as well as third and fourth generation mobile phone technologies.
 Japanese mobile phone users commonly access the mobile internet to send emails, read news, play online games, watch mobile TV, chat, or write blogs. The development of mobile internet in Japan provides opportunities for mobile online commerce, paid services, and mobile advertising.
Home Connectivity:
 The competition of Japanese home telecommunications market is extremely tough, split between three operators NTT, KDDI, and Softbank Telecom. However, due to strong competition from the mobile phone sector, Japan's fixed communications market has been shrinking.
 Although the prices of ADSL services have been falling rapidly, more customers choose the higher speed FTTH (fiber optics to the home) services Of Internet connections, broadband accounted for 79.1% (71.1 million households), an increase from previous years, and dial-up Internet saw a decrease from 46.1% (41.1 million households) to 20.9% (about 18 million households) in 2009. With this penetration rate, Japan placed 15th in the world's ranking of broadband penetration in 2009.
 In terms of television broadcasting, the penetration rate of cable TV rose to 631 households per 1,000 color TV households and the penetration rate of satellite TV reached 403 households per 1,000 color TV households in 2009. In addition to cable and satellite, Internet protocol TV (IPTV) in the home and over mobile devices is also common in Japan. On-demand and catch-up television services offered online are popular among young Japanese, as they allow for viewing favorite programs in a flexible way.
107 Euromonitor International, Technology, Communications and Media: Japan, March 2009
108 Japan Statistics Bureau, Population Census, http://www.stat.go.jp/english/data/kokusei/2005/kihon1/00/04.htm, 2009
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Public Connectivity:
 The popularity of accessing the internet in public places in Japan is reflected in the fact that the number of internet subscribers was smaller than the number of internet users.
 UQ Communications, a company backed by KDDI and Intel, launched WiMAX network recently in Japan. This service has been available in Tokyo and its neighboring cities, Kawasaki and Yokohama, and makes wireless emails and internet surfing available from more places at a higher speed than Wi-Fi.
 Wi-Fi services have been available on Japan's high-speed trains linking the country's two biggest cities Tokyo and Osaka. Some people use Wi-Fi hotspots in public places, while others, go to Internet cafes to surf the Internet, play online games, or read manga, (Japanese graphic comics). Other channels for public internet connectivity include public libraries and post offices.
Consumers:
 The economic recession has negatively affected telecommunications spending since 2008. The Japanese households spent on average ¥203,515 (US$2,178) on telecommunications services, resulting in a modest growth of 0.4% during 2008.
 In 2009, only 42.8% of the poorest 10% of Japanese households (49 million households) had a cable television system, while 21.9% of the poorest 10% (28 million households) owned an Internet enabled computer. However, the respective adoption rates among the richest segment rose to 74.0% and 94.3% in the same years.
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 The Japanese are known as technology-savvy people who are interested in telecommunications, media products, and services. Japanese young people, including teenagers and young professionals, nevertheless are the main consumers that drive the TCM market. They are keen on updating to the most feature-rich handsets and laptops as well as using innovative services such as multimedia messaging, music downloading, and browsing the Internet.
Digital and Social Media:
Japan’s Top 10 websites: January 2010110
Ranking
Internet Site
Description
1
Yahoo!
Search engine, instant messaging, emails, news
2
Google.co.jp
Search engine
3
Fc2.com
Blog, video sharing, free website
4
YouTube
Video sharing
5
Rakuten.co.jp
E-commerce
6
Ameblo.jp
Blog
7
Livedoor.com
Search engine, news, blog
8
Mixi.jp
Entertainment, social networking
9
Wikipedia.org
Online encyclopedia
10
Google.com
Search engine
 Social networking is a popular online activity of the Japanese youth. According to a ComScore study, Mixi.jp had 12.7 million unique visitors in June 2008. Although Facebook introduced a Japanese language version in 2008 and is growing in popularity, it has not been able to compete to date with domestic social networking sites due to a lack of localized applications.
 Blogging is also common among Japanese Internet users. A survey showed that blogging was the most used application on social networking sites in August 2009. While the traditional forms of
109 Euromonitor International, Technology, Communications, and Media: Japan, March 2009
110 Euromonitor International, Technology, Communications, and Media: Japan, March 2009
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blogging with lengthy posts remain popular, micro blogging on sites such as Twitter and Myspace are growing. Video sharing sites, such as YouTube and Fc2, is also common among the Japanese online society. YouTube had 21.7 million unique visitors in February 2009.
 Based on a high mobile internet penetration rate, the digital media sector is expanding in Japan. This includes music and movie downloading to computers and mobile phones through internet sites such as Yahoo! Music, Sony Connect, iTunes and Mora.jp.
Recommendations
Maintain the character of Swatch when promoting to young people
The average power distance index rate in Japan, promotes the idea that everything has its place. At the same time, due to the trend of pursuing work-life, young Japanese are prone to identify themselves by separating from the older generation. Young people prefer to regard themselves as fashionable and stylish.
Build Japanese version of Swatch The Club to attract more customers
Japanese are collectivist and share the in-group beliefs over unique individual beliefs, thus, building membership system, such as Swatch the Club, would help the youth to share in-group beliefs. It would promote similar points of view and allow fashion information to be shared with each other. In addition, corporate brands are favored over products, and building a relationship between the company and consumers is important. The Club can work to connect and build solid relationships with customers. After brand image is built among customers, brand loyalty can be developed through The Club, because Japan has a low individualism.
Maintain different styles of watches
In masculine societies, like Japan, performance and achievement are important. Social status is a symbol that evokes success and is appreciated. Therefore, Swatch should emphasize the career or social status to arouse positive feelings and favorable attitudes toward the Swatch brand.
Utilize experts in-store
In a culture of strong uncertainty avoidances, people are prone to trust an authority or expert and familiar people. Swatch could regularly use local celebrity, public figure, or familiar character as the spokesman to build a trust and reliable relationship. Since Swatch has successfully positioned itself as affordable
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fashion and high quality, it should maintain this image and reinforce it to increase the brand loyalty of consumers.
Utilize a main picture instead of words
Since Japan is a high-context culture, most of the information is part of the context and very little is made explicit as part of the message. Swatch should continue to communicate with consumers by utilizing campaigns that feature a visual of the lead watch and as few words possible. A main picture can tell the core value of Swatch‘s story, fashion, to consumer. The target audiences does not rely words in advertising, however occasionally, the need for words might arise. At which point, these should be in Japanese.
Increase marketing tactics in social media, mobile devices, and TV
Since the internet and mobile devices are the most popular media in Japan, Swatch should utilize these as their communication vehicles. Additionally, given the increase in e-commerce, Swatch should utilize more online communication and promotion tools, such as Twitter, Myspace, Fc2.com, YouTube, and various blogs. To tap into this e-commerce trend, Swatch could create a CreArt custom digital storefront, organized with campaign specific watches arranged by gender, metal, and strap. This organization for the avid on-line or mobile shopper would ensure browsing is easy on both mobile device WAP (wireless application protocol) pages and web-enabled computers.
Connect Swatch with Japanese traditional event
Japan is a country that admires and is pound of its own traditional culture. Therefore, Swatch could produce a special watch to honor traditional events with a limited production run. For example, during the Cherry Blossom Festival, which occurs from January to June, Swatch could introduce and promote a watch with the theme of cherries. For the consumer of this product, the watch is a souvenir, a piece of history, and an arts and craft of a special culture. This would also appeal to the growing Japanese demand for limited-run luxury products.
Cooperate with Local Ad agency
Although Swatch adopts a global campaign, it needs to be executed locally. With the help of a Japanese AD and PR agency, Swatch can conduct its global messaging strategy successfully, while utilizing the Japanese language properly and understanding Japan‘s culture and core values.
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Switzerland
Present: Swatch Group in Switzerland111
2010
 Artist Specials 2010: A new Swatch artist collection consisting of five watches will be released later this year. Four watches are designed by UK set designer / illustrator Gary Card. The fifth watch is a 24 hour Swatch called Fluo, designed by UK fashion designer Carri Munden.
 Verbier Xtreme special: From 18 to 21 March, the traditional Verbier Xtreme contest was held in Verbier, Switzerland. Swatch the Club invited club members for a brunch with Swatch ProTeam members Xavier de la Rue, Kaj Zackrisson, and others. Fifteen club members participated and received the watch of the Freeride World Tour 2010.
 Colour Code Swatch watches: Swatch released 20 different Swatch watches apart of its Colour Code collection.
 Swatch TTR 2010 special: Swatch is sponsoring the TTR World Snowboard Tour. A special Swatch Chrono Plastic TTR World Snowboard Tour 2010 is currently available.
2009
 Chrono Automatic: The Chrono Automatic product line was launched in September in Geneva, Switzerland.
 Shoot My Ride: Swatch and the Snow Park teamed up with five resorts in Laax, Livigno, Solden, Tignes and Verbier to launch Shoot My Ride. The skier or snowboarder made a run down the Swatch Snow Park and had his or her jump recorded by video cameras. Performer‘s movies were played back on a giant screen and then posted on the Swatch website. More than 140, 000 movies were uploaded to Swatch.com, shared, and enjoyed on community websites such as Twitter and Facebook.
 MTV Playground: To strengthen its relationship to art and fashion, Swatch formed partnership with MTV in Europe and Asia. More than 50,000 artworks were uploaded globally and the best were shared at Swatch MTV Playground events and inside Swatch store throughout China, Germany, Greece, Japan, Korea, the Netherlands and Switzerland. Swatch MTV Playground also supported the launch of CreArt and Manish Arora collections.112
Past: Older Campaigns from Swatch Group in Switzerland113
Swatch watch, originally from Switzerland, has high brand recognition, recall, and identity in the country. In addition to holding global campaigns and sponsoring worldwide events, by launching localized
111 Stay Tune on Swatch, http://www.stay-tuned-to-sw.de/swatch.html, 2010.
112 Swatch Group Annual Report, 2009.
113 Stay Tune on Swatch, http://www.stay-tuned-to-sw.de/swatch_old.html, 2008.
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campaigns and sponsoring local events, Swatch watch has enhanced its Swiss brand image in Swiss consumers‘ minds.
2008: Swatch celebrated its 25th anniversary both globally and locally.
 Swatch The Club presents the first Club Art Collection: Swatch sponsored the Young Illustrators
Award 2008. The 20 winners were shown in a separate section at the Illustrative, the international festival for contemporary graphic and illustrative art in Zurich, Switzerland. The winner of the first prize was given the chance to create one new limited edition
Swatch that was integrated into international distribution. A collection of three limited edition Swatch watches called Club'Art: The Graphics Collection was designed by young artists, and launched during the club event. The watches were limited to 3,333 pieces each and only Swatch the Club Members were allowed to purchase them.
 Swatch sponsors Swiss music festival: Swatch sponsored the Swiss music festival Blue Balls Festival in July. A special Swatch called Blue Flying Provocacy was launched at a press conference.
 Bern Wirkt Wunder special: A special Swatch related to the Euro 2008 soccer championship in Switzerland and Austria was released in June. The swatch is called Bern Wirkt Wunder (‗Berne works wonders‘).
 CollectoMania 2008 event: The CollectoMania event took place in Bern,
Switzerland. During the event, collectors were able to enlarge their collection with limited merchandising and event branding material.
 Swatch ‘Family Celebration’ event: In February, Swatch hosted a
‗Family Celebration‘ event at the Kindercity in Volketswil near Zurich in
Switzerland. During the event, the new Spring / Summer 2008 Swatch
Watch and Bijoux collections were presented. Participants could bring their kids to enjoy special activities. Nicolas G. Hayek and his wife, Melanie
Winiger (ex Miss Switzerland), Anastacia (MTV presenter from Germany), and Martin Laciga (Swiss Beach Volleyball player) showed up. To commemorate the event, a special access Swatch ‗Family Celebration‘ Watch was given to participants.
 A huge Swatch in Grenchen: Grenchen, the ‗Swatch town‘ in Switzerland, is one of the places where Swatch watches are produced. At the center of the new Monbijou roundabout in Grenchen, a tower with a seven-meter Swatch Shake was built.
2007
 FIVB 2007 specials: As in the last years, Swatch released two watches for the Swatch FIVB
Beachvolley World Tour 2007. The third beach volleyball special was released in Switzerland only at the end of May for the Swatch FIVB 2007 World Championships in Gstaad, Switzerland.
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 ‘Be Swiss’ Club event: In late July, Swatch the Club held a Club event called Be Swiss. About 50 collectors from all over Europe came to the 'heart' of Swatch, Switzerland. They enjoyed several typical Swiss activities and a visit to the Swatch FIVB 2007 World Championships in Gstaad,
Switzerland. The participants received a Be Swiss package and other goodies, including a unique self-made Swatch bell.
 Caprices Music Festival special: Swatch sponsored Caprices Music
Festival and a special Jelly watch was released for the festival in Crans-
Montana, Switzerland, granting special access to the festival.
2006
 Swatch Museum in Geneva: The Swatch Group opened four exposition rooms next to each other, called City of Time (Cité du temps) in Geneva, Switzerland in April. One of the show rooms contained an exhibition with almost all the Swatch watches ever produced. A thick
Swatch collection book was available at the Swatch Museum; which showed all the Swatch watches in 1:1 scale
 Lugano Splashtival Event: SPLASHTIVAL is the name of the spectacle in Lugano, Switzerland, to which Swatch invited everyone on 1st June to celebrate its 333 millionth watch and its new product line called Swatch Jelly in Jelly. This collection reunited Swatch with art, by featuring the world-famous Blue Man Group. The eleventh model Swatch Blue was presented at the launch event in Lugano, and the twelfth, an individually numbered, limited-edition (3,333 pieces) model was created live during this event by the Blue Man Group.
Target Audience within Switzerland
Because of the mature and saturated market, the target in Switzerland is younger than the global target for Swatch watch. The target is between 12 to 25 years old and embodies youthful, provocative, stylish, and artistic traits.
Relationship with social institutions
National Holidays:114
 Advent and Christmas: Advent is the period beginning on the fourth Sunday before Christmas Eve, and is historically seen as the preparation of the arrival of Christ. The Swiss usually have big sales on December 26— the boxing. Similar to the United States, Christmas is a gift holiday in Switzerland.
114 Euromonitor International, Consumer Lifestyles in Switzerland, 2007
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 National Day: August 1st, the Swiss national day is only just over a century old. It was only in 1993 that the hardworking Swiss agreed that they could all take the day off, but the event it commemorates took place 700 years ago. The Swiss usually have 20 to 25 vacation days in July and August.115 Correlating with this holiday, a series of sales discounts from retails appear.
Subcultures
Race: Demographics within Switzerland
 Yugoslavia Immigrant116: The Balkan states consists the largest former Yugoslavian immigrants. These immigrants have greatly influenced the behavior of Swiss teens. For example, Swiss teens sometimes speak fake Yugoslavian accents to be ‗cool‘..
 One in three Zurich residents is a foreigner117. Highly skilled financial posts in Zurich are increasingly being filled by foreigners, many of them German. Germans have overtaken Italians as the largest foreign community in Switzerland's largest city and financial center.
Language: Demographics within Switzerland118
Switzerland has four national languages, but they vary in the number of speakers.
 German is the most widely spoken language in Switzerland: 17 of the 26 cantons are monolingual in German.
 French is spoken in the western part of the country, the ‗Suisse Romande.‘ Four cantons are French-speaking: Geneva, Jura, Neuchâtel and Vaud. Three cantons are bilingual: in Bern, Fribourg and Valais both French and German are spoken.
 Italian is spoken in Ticino and four southern valleys of Canton Graubünden.
 Rhaeto-Rumantsch (Rumantsch) is spoken in the only trilingual canton, Graubünden. Rumantsch, like Italian and French, is a language with Latin roots. It is spoken by just 0.5% of the total Swiss population (35,000 people).
 Other languages include: Serbian/Croatian are the largest foreign language group, with 1.4% of the population (98,000). 1% of Swiss (70,000 people) speak English natively, but most understand it.
 Language on the Packaging: Most products in the stores are labeled in German, French and Italian, or at least in German and French. Money is spent on translations in both the public and private sectors.
115 Bering Guides : Business Travel in Switzerland, 2003.
116 Euromonitor International, Consumer Lifestyles in Switzerland, 2007
117Swissinfo.ch, Almost one in three Zurich residents is foreign, http://www.swissinfo.ch/eng/index/Almost_one_in_three_Zurich_residents_is_foreign.html?cid=5337026, 2006
118 Swiss World, Language Distribution, http://www.swissworld.org/en/people/language/language_distribution/, 2010
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 Advertising in English: The advantage to the advertisers is not only is English a prestige language - and one with youth appeal - the same posters can be used nation-wide. English is widely understood in Switzerland, especially in the German-speaking part and in Geneva. The Swiss are so fond of English that many advertisements are in English, doubling advantage of appearing hip and of avoiding the need to translate marketing materials three times.
Elements of Culture: Values based on Hofstede Dimensions
Low Power Distance:
Swiss population has a relatively equal distribution of power across the population's societal structure. There is an expectation by the general population that power and control of the society shall be more equally distributed among all the members of the society.
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High Individualism Index:
The Swiss population is independent nature. People tend to take care of themselves and their close family, but tend not to 'meddle' in the matters of others.
High Masculinity Index:
The high Masculinity Index indicates a higher polarization between the values of Swiss men and women. Male population is competitive and assertive relative to the female population. However, this relationship fosters a greater assertiveness in the female population as well.
Low Uncertainly Avoidance Index:
The Swiss are more accepting of unique and unusual situations and ideas, and have a greater tolerance of divergent points of view. In addition, the Swiss society tends to have fewer rules and regulations. An additional reflection of Swiss‘ low uncertainty avoidance is the appearance of conveying less emotion, which may appear as apathy. The Swiss might also appear introspective nature.
Thought Processes and Virtues
National Identity:
―Swiss national pride does not show itself in military parades and demonstrations of international supremacy, but rather in the quiet conviction that Y’en a point comme nous (There are none like us). This superiority complex is reinforced by most statistics and observations from foreign visitors.‖119
Love of Nature and Traditions: 120
The Swiss population is said to have a ‗rural‘ mentality. ‗Rural‘ refers to the love of the land, nature and traditions.
Foresight:121
―In the past, the long winters and the rugged climate forced people to think ahead and make provisions.‖ 122 Mountains are no longer obstacles now, but the ability to anticipate and plan ahead is considered a virtue among the Swiss to this day.
Moderate and Thrifty: 123
The land had to be worked, constantly and diligently in the earlier society. There were many riches under the ground and only a limited amount of arable land in the valleys. This scarcity has contributed to the Swiss characteristics: moderate and thrifty.

Diligence and Reliability:124
119Is Yours, Swiss National Identity and Pride, http://www.isyours.com/e/swiss-business-guide/national-identity.html, 2010
120Is Yours, Swiss Culture, http://www.isyours.com/e/swiss-business-guide/swiss-cultures.html, 2010
121Swissworld, People and Landscape: Switzerland, http://www.swissworld.org/en/culture/swissness/people_and_landscape/, 2010
122Swissworld, People and Landscape: Switzerland, http://www.swissworld.org/en/culture/swissness/people_and_landscape/, 2010
123 Swissworld, People and Landscape: Switzerland, http://www.swissworld.org/en/culture/swissness/people_and_landscape/, 2010
124 Is Yours, Swiss Culture, http://www.isyours.com/e/swiss-business-guide/swiss-cultures.html, 2010
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Hard work is appreciated as the Swiss like useful things. They also take care of what they have and making sure that everything is in good order. Children are taught to be virtuous and reliable, instead of brilliant and original. They aren‘t particularly keen on extravagance. The Swiss seek out a consensus and compromise.
Honesty: 125
Honesty is the rule among the Swiss and being dishonest can hurt a reputation. The moral of self-interest can thus explain to a certain extent why most Swiss are scrupulous about their behavior and speech. The Swiss are always on time: 126
The one value shared by all the Swiss is punctuality. Clocks are ubiquitous in the train stations. Trains arrive on time, likewise the payment of bills, and people arrive early. For example, Swiss people will arrive 15 minutes early to be sure they arrive on time.
Leisure and Interest: 127
Swiss like spending time with friends. Reading and going for walks are among the most popular pastimes. In December 2009, the economic crisis has had its effect on tourism in Switzerland, with more Swiss consumers deciding to stay at home or with relatives. The Swiss appreciate both traditional and modern arts. Many Swiss artists have made their names with absurd and playful works of art. Swiss also like to exercise. More than half the population engages in some kind of sports activity at least once a week. Attending a course and playing a musical instrument were among the least perused activities among the Swiss people. Some research suggests that a favorite pastime of the Swiss is watching television.
Meaning of Communication128
Verbal Communication: low context
The Swiss rely on the literal and precise meaning of the words and prefer explicit conversations. Conversational etiquette is quite similar as in the United States. To be a good listener, keep off topics such as religion, politics and personal finances. Nature and the outdoors, sporting activities, and family life are safe topics.
Nonverbal Communication:
When talking, the Swiss will not be excited and will rarely show large gestures. Quietness, does not translate into a lack of enthusiasm. However, there are not enormous differences between body language
125 Is Yours, Religion in Switzerland, http://www.isyours.com/e/swiss-business-guide/religion.html, 2010
126Is Yours, Are the Swiss obsessed with punctuality? Are they always on time?, http://www.isyours.com/e/swiss-business-guide/punctuality.html, 2008
127 Swissworld, Time off –Switzerland –Information, http://www.swissworld.org/en/leisure/relaxation/time_off/, 2010
128 Bering Guides : Business Travel in Switzerland, 2003
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in Switzerland and the United States. The Swiss are somewhat more reserved and less likely to touch one another, even with friendly pats on the back or light brushes of the arm.
Time: Monochromic129
The Swiss do one thing at a time and are always on time. They take time commitments seriously and seldom borrow or lend.
Consumption decisions and behavior130
 Parents are having fewer children, and therefore spending more of their disposable income on the fewer children they do have.
 Tweenagers like to stay at home watching TV, playing video games, or using computer instead of doing exercise. They are more aware of current fashions and brands of clothing and footwear. These children decide what their parents purchase for them.
 Teens are powerful consumers. They are technologically savvy and are comfortable with digital and electronics products. They often collect global trends from the internet. Teens spend a large portion of their disposable income on mobile phones and services, clothing, footwear and computer games. Brand image is important to them. Specifically, hip hop music has dominated the fashions for them for a long time. Teens are associated with sports like snowboarding, skating and downhill biking. Many companies sponsor events to reach this group of young but powerful consumers.
 Students, like teens, usually do not have much disposable income. Most students are supported by their family. This group is still considered a relatively strong consumer group that influences taste and trends. They are technologically savvy and they spend on up-to-date products such as the latest mobile phones, laptop computers, and portable consumer electronics.
 People in their twenties are a major target market for technology products like mobile phones, TVs, and video games. Members of this group are also more comfortable purchasing products online than older age groups. They enjoy the moment. Marketers thus promote products like portable consumer electronics, music and books, or products that deliver convenience like prepared and packaged foods.
 The Swiss are brand-oriented and follow western dress styles. Fashion is strongly influenced by the media such as films, TV, music, and fashion magazines. Specifically, fashion becoming more crucial for young Swiss men.
Culture and Media131
129 Passport Switzerland: Your Pocket Guide to Swiss Business, Customs and Etiquette
130 Euromonitor International, Consumer Lifestyles -Switzerland, February, 2010
131 Technology, Communications, and Media: Switzerland, February, 2010
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Mobile Phones:
 Mobile phone population grew from 6% (526,800 people) in 1995 to 92% (about 7 million) in 2008.132 In 2009, it grew to 94.1% (about 7.2 million) compared to 88.5% in the EU. Switzerland has one of the highest household penetration rates of mobile phones in Europe, which has led mobile operators to increasingly depend on new value-added services, such as mobile TV, mobile Internet and multimedia messaging, for growth.
TV, Cable, and Satellite:
 A survey found that the favorite pastime of the Swiss in 2004 was watching television, listening to the radio and reading the newspapers.133
 Cable and satellite TV services have high household penetration rates. Cable grew from 75% (about 2.1 million households) in 1995 to 88% (about 2.5 million households) by 2008. Satellite TV systems grew from 7% (about 196,000 households) in 1995 to 17% (about 476,000 households) in 2008.134 Switzerland has a competitive TV market and various choices of TV access methods. Cable TV is the preferred TV access method in Switzerland. In 2009, 87.9% of Swiss households (about 2.5 million households) received television signals via cable, while only 16.8% of households (about 470,800 households) receiving TV signals via satellite.
Printed Media:
 Traditional newspapers see competition from free newspapers such as 20 Minuten which profiting from paid advertising. The newspapers are easy to read when people are commuting on trains or buses.135 For example, Tages-Anzeiger is most widely distributed daily newspaper. It has readership at 500,000 people per day in 2009,136 approximately 6.6% of the total 7,604,427 Swiss population. However, the newspaper, Sonntags Blick, has a weekly newspaper readership of 600,000 to 900,000, approximately from 7.9% to 11.8% of the total population.137 The most read free daily newspaper is 20 Minuten with 1,365,000 readerships per day, approximately 18% of the total population.138
Digital and Social Media:
 Social networking, particularly for younger groups, is a popular online activity in Switzerland. Facebook.com is the most popular social media site with 1.7 million unique visitors in February 2009.
132 Euromonitor International, Consumer Lifestyles -Switzerland, February, 2010
133 Swissinfo.ch, Swiss talk and read away their free time, http://www.swissinfo.ch/eng/Swiss_talk_and_read_away_their_free_time.html?cid=4586196, 2005
134 Euromonitor International, Consumer Lifestyles -Switzerland, February, 2010
135 Euromonitor International, Consumer Lifestyles -Switzerland, February, 2010
136 Tages-Anzeiger, http://informationarchitects.jp/projects/tagesanzeiger/, 2009.
137 4International, Media& Newspapers, Sonntags Blick, http://www.4imn.com/reviews/17332.htm, January 2010.
138 Newspaper Innovation, http://www.newspaperinnovation.com/index.php/2010/03/23/20-minuten-loses-readers-for-first-time/, 2010.
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It experienced a 499% growth over 2008.
 Skyrock.com and Blogger.com were among the top 20 most visited websites in January 2010, while Twitter was ranked in 23rd place. This indicates that traditional blogging is more prevalent than micro-blogging activities.
 Teenagers are important drivers of media growth. Based on national statistics from the OFS (Office Fédéral de la Statistique), 92% of the population aged 14-19 (about 500,000 people) use the Internet regularly compared to 70% of those aged 50-59 (about 340,000 people) and 18% of those aged 70 and above (about 147,000 people).
 Public internet access is available via Wi-Fi hotspots, public libraries, and community centers. However, most internet users are connected from home due to the high broadband Internet penetration rate at 74.2% of households (2 million households) in 2009. Household possession of PCs reaching 81.4% (2.2 million households) in 2009.
Recommendations
Use English for Communication
Because English is a prestige language with youth appeal and can be understood nationwide, Swatch Watch does not have to translate everything into the three main languages. It will save not only the time but also save the budget for Swatch watch to adopt a standardized advertising strategy by using English as the campaign language.
Advertising Appeals by using Swiss Values
To appeal to the highly independent Swiss, the ads can be performed in a direct and personalized way. Also, the ads should show the individual benefits and personal success. Swatch should emphasize the independent and unique spirits of street art of CreArt series. In addition, CreArt ads should imply that wearing a CreArt watch (or two) is stylish and make the Swiss people unique.
The Swiss respect people who stand out and are successful. They also have strong need to dominate, win, and be successful. Therefore, Swatch can promote the idea that wearing the CreArt watch will make one stand out. Taking the individualism dimension into consideration, Swatch could sponsor successful Swiss athletes in the sport activities that the Swiss population appreciates, such as European football and winter sports. The tone of the CreArt commercial should be persuasive and feature a hyperbole.
The CreArt Campaign could also further tap into the Swiss love of snow sports. Since Swatch has sponsored X-sports, Swatch could work with the athletes to print the pictures of CreArt watches on their snowboards and other ski equipment to attract young Swiss.
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Leverage Nationality Identification of Switzerland and Swatch watches
The Swatch brand has associated itself with Swiss nationality through the use of the Swiss flag in the Swatch logo. To reinforce the brand through CreArt Collection, Swatch should stress the tradition of the Swatch watch and the Swiss-made heritage.
Leverage Thoughts Process and Virtues
To attract the Swiss who value thrift, punctuality, and tradition of the Swiss watch making craft, Swatch should emphasize the fact that their products are Swiss-made affordable timepieces. The tone of advertising should be sincere and credible in order to persuade the honest-valuing Swiss. Videos should highlight the creative process of the diligent artists. These would appeal to the Swiss value of hard work.
The Swiss‘ appreciation of arts is an advantage for Swatch when promoting the CreArt Collection. By emphasizing the artistic design and promoting the watches as unique gifts for families and friends, the sales volume should increase.
Channels for Launching CreArt Collection
 As watching TV is a common behavior among all societies, Swatch should invest commercials to raise awareness of CreArt Collection.
 Because Switzerland has one of the highest household penetration rates of mobile phones in Europe, calling or texting message is also an efficient way to also reach audience.
 Social media should be employed to reach the younger audience. This content should engage, inform, and entertain. Swatch should take advantage of social media especially Facebook and bloggers to inform and create the buzz.
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Overall Recommendation: Standardize or Localize?
The Swatch Group currently has a global standardized message and local media delivered through a global in-house department. This route should continue to be followed, with a few adjustments. ―If a country has a reputation for producing high-quality goods of a certain type or in a specific field, those goods may well be sold via global advertising messages.‖139 Such an example is the Swatch watch brand. The standard appeal (scarcity and emotions) and framework (association transfer and slice of life) creates a single brand image – youthful, provocative, stylish, and unpredictable, has already been widely established for Swatch. Standardizing a message also recognizing homogenous characteristics among cultures such as product usage and creates a cohesive community centered around a brand.
However, The Swatch Group should not only utilize localize media, but also localize advertising since Japan, Switzerland and Brazil utilize different media in their day-to-day life and cultural and social factors affect the type of advertising which entices the different audiences. Although this requires spending more money on localization, this is the best tactic to implement to accomplish the stated objectives and reach consumers by relevant means while delivering relevant content.
The following information enforces why Swatch should localize media and advertising.
Brazil
Market characteristics
The market characteristics that affect Swatch watches are income, along with social and cultural factors. Since Brazil has an income disparity and Swatch watches are fairly inexpensive, this provides an opportunity for Swatch to appeal as the value based, high quality, fashionable, yet inexpensive alternative to other watch offerings in Brazil.
In addition, Brazil has a gift-giving culture; thus, some Swatch watches should be positioned as gifts. Brazilians also are nationally prideful—using the Graffiti of Brazilian artists to create designs will increase interest in the watches. Since Brazilians are not as time-sensitive, this could pose a problem or opportunity for Swatch: problem in terms of the Brazilians are not as conscientious of time, but opportunity since Swatch watches could focus on being fashionable and a ‗slice of life.‘
139 Muller, Barbara, Dynamics of International Advertising, 2004
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Industry Conditions
As for industry conditions, watches are in a mature market in Brazil, where sales increase at a slower pace and competition is fierce. In terms of the marketing lifecycle, Swatch watches must increase interest. The Brazilian preference of luxury watches poses a threat for Swatch.
Currently, Swatch is only sold in e-stores, Swatch stores, and kiosks.
Choices: Local ad agency
It is essential for Swatch to work with a local advertising agency to create, develop, and distribute any marketing material for the CreArt campaign. If other organizations find it imperative to use a guide when navigating business deals, Swatch, as a global company, has expertise in its products, but certainly not in the local culture & habits in Brazil. Therefore, utilizing the guidance of an agency will help reinforce Swatch‘s efforts. Swatch businessmen should also develop strong bonds with their retailers in Brazil to build an advantage over other brands in terms of product placement and marketing push.
Media
In terms of media, the CreArt Swatch watch should be advertised through TV, print mediums such as newspapers, mobile, and social media. As watching TV is a common pastime among all social classes, so much so Brazilians watch more than most other countries. Swatch should invest in commercials to reach a wide audience and raise awareness of its brand. It is key for these advertisements to be engaging. So, for TV, it is suggested to sponsor television programs and product placements, such as during soap operas.
Newspaper advertisements are also a viable option, as Brazilians read enjoy reading newspapers. Currently, there are 52 premium publishers. These advertisements could utilize some of CreArt‘s current MTV playhouse content, by encouraging participation through voting on different artists.
Mobile advertising is increasing in popularity. More feature-rich devices will stimulate the future growth of mobile internet usage and mobile advertising. Yet, this medium should only be a portion of the media mix and serve to drive consumers to other mediums or events.
With the popularity of Internet cafes, Swatch could create an internet café landmark, just as they‘ve created the Swatch Art Peace Hotel. This would reach their target market and create buzz in Brazil.
Social media is essential to reaching the younger audience. This content should engage, inform, and entertain. More importantly, it should be relevant and interactive. Perhaps, Swatch could introduce a
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blogging site about cool and new upcoming art (art, as in artists, designers, industrial design, web design, etc.), or suggestions for new CreArt artists. Brazilians should also have the option of viewing the information in their native tongue via a toggle switch. Possible sites include Orkut, Microsoft Network, and Facebook.
As for advertising, Swatch should use Portuguese on marketing materials as the majority of Brazilians speak this language.
They should ask local artists or athletes to create Brazilian pride themed Olympic CreArt watches, in anticipation of the 2016 Olympics. A well-known spokesperson, like a Brazilian celebrity or athlete endorser would appeal to the collectivist nature as people tend to describe themselves in relation to other people and may prefer to associate brands in relation to real people they view as a role model.
Lastly, personal selling should be highlighted. Brazilians buy via emotional consumption, and while 82% (about 168 million people) of Brazilians are literate, they prefer face-to-face meetings than written communications. Therefore, better personal selling could be employed in stores. Also at this location, point of sale marketing pieces, such as CreArt posters, brochures, or even televisions running a loop of the commercials, would enhance the emotional consumption.
Japan
Language
The Japanese and the Japanese traditional culture are quite different than the European culture. Although Swatch is currently conducting the global strategy, this messaging should be implemented locally. Additionally, Japanese citizens typically have high disposable income, and the low-price position of Swatch could trigger consumption in economic recession. A special localized strategy could leverage situational conditions such as the higher disposable income of the Japanese.
Repurchase
Swatch entered in Japanese market successfully in 1983, and currently maintain a dominant status in the Japanese watch industry. Watches are in a mature market in Japan. Thus, the market objective for Swatch is to encourage repurchase. In the past, Swatch promoted itself carefully in the department stores to build its brand image. But, at present, Swatch is expanding into the luxury field, to obtain additional market share and profit. Swatch built a Swatch flagship store Shigeru Ban in Tokyo's Ginza district. This store stands out from the surrounding high-end fashion boutiques on the most glamorous street of world.
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Local Ad agency
It is recommended that Swatch partner with a local ad agency, due to the distinctive culture of the Japanese. The local agency can maintain consistent global image and marketing communication with consumers, but adapt it to fit the Japanese market.
Media
 Online: Social networking is a popular online activity of the Japanese youth. Blogging was the most used application on social networking sites in August 2009. Micro blogging sites, such as Twitter and Myspace, are also growing. Video sharing, such as YouTube with 21.7 million unique visitors, and Fc2, are also popular. Thus, these provide Swatch the opportunity to connect with the Japanese young audience and in-groups who share opinions with each other.
 Mobile: Because the rate of household possession of mobile phones reached 92.5% (118.4 million households) and revenues from Japan's mobile sector accounted for 80.0% of total telecom revenues in 2009, it provides Swatch with a great opportunity to reach the target audience with mobile e-commerce and mobile advertising.
 TV: Because the penetration rate of cable TV represents 631 households per 1,000 color TV households and satellite TV represents 403 households per 1,000 color TV households reaches most households, Swatch can take advantage of high reach and coverage to reach the public and air the visually based CreArt commercials.
Switzerland
Market characteristics140
The proportion of households with disposable income over US$75,000 increased to 53% compared to 33% in 1995. As disposable income levels have risen, so have sales of a wide range of consumer products and services. The number of teens in Switzerland increased from 557,000 in 1995 to 624,000 in 2008, at an increase of 12%. The number of students went from 88,000 in 1995 to 121,000 in 2008, at an increase of 37.5%. Spending on accessories and personal goods, such as watches, jewelry, clocks, and other items saw healthy growth, as the per capita spending increased from US$245 in 2000 to US$355 in 2008. Spending habits for accessories and personal goods changed in Switzerland as more affordable goods, many imported, became increasingly available. This drove higher volume sales. Young Swiss men have also become increasingly more fashion conscious, and now spend more money on fashion items than Swiss men from previous generations.
140 Euromonitor International, Consumer Lifestyles: Switzerland, February, 2010.
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Industry Conditions
The watch industry is a mature market, and Swatch watches, in particular, are prevalent in Switzerland. Consumers are in the repurchase stage, that is, they purchase more than one Swatch watch to fit the current trend or buy Swatch watches as apart of a collection.
Consumers can purchase Swatch watches in Swatch stores, shop-in-shops, e-stores, and kiosks.
Choices: Local in-house
The Swatch Group stresses the correlation between Swatch watches and the Swiss. The Swatch watch brand utilizes the Swiss flag into its logo, associating itself with the Swiss nationality. Therefore, The Swatch Group should use a local in-house team to customize the events under the global campaign.
Media
Swatch‘s potential consumers, Swiss tweenagers, prefer to stay home and watch television than play outside. Switzerland also has high household penetration rates for cable and satellite TV services. Watching TV is a common activity for the Swiss. As a result, Swatch should invest in TV commercials. Switzerland also has one of the highest household penetration rates of mobile phones in Europe. Hence, texting message is an efficient media for Swatch to reach the audience. Overall, the Swiss are computer savvy and feel comfortable using the internet, especially tweenagers, who are more likely to sit in front of a computer. Therefore, social media is a viable platform for Swatch to interact with the younger audience.
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Appendix
Competitors – Brands
The Swatch Group
Since The Swatch Group owns more than 20 watches, Swatch watches also compete with other watches under their parent brand. These competitors include Omega, Flik Flak and Tissot.
Omega
Advertisement
Advertisement
101
Advertisement
Website
102
Flik Flak
Website
Advertisement
103
Tissot
Website
Advertisement
104
Citizen Holdings Co., Ltd.
Eco-Drive Campaign
Print Ads
105
Commercial
106
Website
107
Compagnie Financiere Richemont SA
Advertisement
Website
108
Seiko Holdings Corporation
Ananta Campaign
Print Advertisements
Ananta Website
109
Ananta Commercial
110
111
Seiko Website
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Evaluation
Swatch MTV Playground and Swatch Website
Name of Metric System
What does it do/show?
Total Unique Visitors
Number of people that visit your website everyday
Traffic sources
Where traffic comes from
Visitor‘s Location
Insight into visitor‘s location
Keywords
Effective keywords
Behavioral Metrics
Example: Most Viewed Pages, Time Spent On Site, Navigation Path and Common Search Terms
Bounce Rate
How many leave your website right after they arrive
Exit Pages
The last page of your website people visit before leaving
Entrance Pages
Through what content people found the website
Value per Visit
How much each visitor is worth
Facebook
Name of Metric System
What does it do/show?
Facebook Insights (applications aggregate over seven days)
Interactions This Week
Post Quality: Calculates how engaging each post is with a five star rating system
Fan Interaction Graphs: Interactions, Interactions Per Post, Post Quality, Posts, Page Views, Stream CTR/ETR, Media Consumption, Discussion Posts, Reviews
Fan Dashboard Graph: Trends in Fan Acquisition and News Feed Content Distribution through (1) Total Fans/ Unsubscribe, (2) New/Removed Fans, and (3) Unsubscribe/ Re-subscribes
Fan Geographic and Demographic Data: Only able to receive this if there is a significant number of fans in each statistical category
PageData
View which Pages are gaining and losing the most fans, the leading pages in any size category, and historical growth charts for Facebook Pages
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Twitter
Name of Metric System
What does it do/show?
Engagement Measurements
Retweet Ratio: # of Retweets/Total # of Tweets
Retweetist: Retweeted news
Reply Ratio: # of Replies/ Total # of Tweets
TweetVolume: Volume of a word
TweetRush: Total volume
Search.twitter.com: Check noise of company and competitors
Reach Measurements
Effective Reach: # of Followers * (1+Retweet Ratio)
Twitterrank: Calculates how engaged, interesting and prominent is each Twitter user
Twinfluence.com: Shows Reach, Velocity and Social Capital of leading Tweeters
TwitClicks: Shortens URL and tracks everybody who clicks on it, their browser, location, and IP address and estimates which Twitter user clicked on the link
Twitalyzer: Evaluates a Twitter users‘ activity and reports the relative influence, signal-to-noise ratio, generosity, velocity, and clout
Trend Measurements
Retweetradar: Finds ‗retweet‘ed trends
TwitterGrader: Measures Twitter rank
Tweetlists: Shows Popular conversations
Hashtag #: Shows who is talking about your product
Twitterholic: Track accounts popularity
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Google Analytics Metrics
Name of Metric System
What does it do/show?
Advertising ROI
AdWords
AdSense
Tracking capabilities
Ecommerce reporting
Cross Channel and Multimedia Tracking
Internal Site Search
Benchmarking
Flash, video and social network application tracking
Visualizing Data
Motion Charts
Funnels
Geo Targeting
Spark lines
Score cards
Customized Reporting
Advanced Segmentation
Custom Reports
Dashboards
API and developer platform
Date range slider
Multiline graphing
Data Export
Sharing and Communicating
Email reports
Sophisticated administrator and user controls
Google Integration and Reliability
1st party cookie
Google data center and collection methodology
Tie to Facebook
Google Analytics can measure how many clicked on the link from Facebook to arrive on the Swatch page
Tie to Twitter
Combine Twitalyzer and Google Analytics to gather data about traffic to your site from Twitter
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Cultural Analysis
Brazil
Other Holidays:  Festas Junias occurs in June and is a series of celebrations for Roman Catholic saints. These festivities are ‗marked by huge bonfires, traditional foods and games, square dancing, and parties for children‘141  During New Years, Brazillians wear white for good luck, and on the day of, they jump into the ocean to jump seven waves while throwing flowers142
Education:  Private universities rose by 67% in 5 years to 2,022. Public universities totaled 248 in 2006.  Brazilian education is compulsory between the ages of 7-14.  Brazilian state and federal universities are among the best in the country.  25% of federal university enrollments must be from children whose household income levels total up to 1.5 minimum wages (or R$622.50 per month) and the remaining 25% must be reserved for students of African, Latin and indigenous heritage.  Only 3% of university undergraduates extend their education further (excluding students obtaining graduate degrees abroad) to earn masters, doctorates and professionalisation degrees.  Though more students are enrolling in top private universities, Brazil has one of the lowest undergraduate enrolment rates in Latin America, and few students go on to earn postgraduate degrees. Many students begin to drop out of school after the age of 14 to help with household expenses, thereby decreasing their disposable income. However, the workforce is seeing an increase in the amount of educated young women.143
Government:  16 to 24-years-old consumers spend more time in cyberspace than watching TV. Almost half (48%) reduced their consumption of television for internet usage, according to EIAA.net.  The Brazilian tax is the highest taxt (also known as cost tax).  The objective of the ‗Communications Public Policy‘ is to universalise telecommunications by providing fair prices, in order to promote social inclusion. The government aims to guarantee Internet access to the entire population. Even if technology accessibility increases, it is difficult for the majority of the population to become heavy spenders on categories that are relatively expensive, such as broadband. \ The government is set up as a democracy, making business regulations less of a
141 Everyculture Brazil, Countries and their cultures, http://www.everyculture.com/Bo-Co/Brazil.html, 2010
142 Go Currency, Holiday Celebrations: Brazil,http://www.gocurrency.com/articles/holiday-brazil.htm, 2010
143 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
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barrier.144 The Brazilian government also values the Internet, seeking to make the digital space accessible for all generations and all income levels, by invoking social programs such as, ‗Internet for the oldest.‘ Regardless of the government‘s efforts, the rapid development of technology and the cost, in particular high taxes, are prohibitive to the elderly and the poor creating a digital gap in the society. This large gap has contributed to the low education levels and higher piracy levels than other regions.145
Religion146 About 74% of the population practices Roman Catholic traditions. As a result, many of Brazil‘s main holidays and iconography are centered on the Roman Catholic religion.
Demographics:  White 53.7%, mulatto (mixed white and black) 38.5%, black 6.2%, other (includes Japanese, Arab, Amerindian) 0.9%, unspecified 0.7% (2000 census)  Roman Catholic (nominal) 73.6%, Protestant 15.4%, Spiritualist 1.3%, Bantu/voodoo 0.3%, other 1.8%, unspecified 0.2%, none 7.4% (2000 census)  0-14 years: 26.7% (male 27,092,880/female 26,062,244)  15-64 years: 66.8% (male 65,804,108/female 67,047,725)  65 years and over: 6.4% (male 5,374,230/female 7,358,082) (2009) Political Parties:147  Brazilian Democratic Movement Party or PMDB [Federal Deputy Michel TEMER]  Brazilian Labor Party or PTB [Roberto JEFFERSON]  Brazilian Renewal Labor Party or PRTB [Jose Levy FIDELIX da Cruz]  Brazilian Republican Party or PRB [Vitor Paulo Araujo DOS SANTOS]  Brazilian Social Democracy Party or PSDB [Senator Sergio GUERRA]  Brazilian Socialist Party or PSB [Governor Eduardo Henrique Accioly CAMPOS]  Christian Labor Party or PTC [Daniel TOURINHO]  Communist Party of Brazil or PCdoB [Jose Renato RABELO]  Democratic Labor Party or PDT [Carlos Roberto LUPI]  the Democrats or DEM (formerly Liberal Front Party or PFL) [Federal Deputy Rodrigo MAIA]  Freedom and Socialism Party or PSOL [Heloisa HELENA]  Green Party or PV [Jose Luiz de Franca PENNA]
144 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
145 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
146 CIA world Factbook, Brazil, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, 2010
147 CIA World Factbook, Brazil, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, 2010
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 Humanist Party of Solidarity or PHS [Paulo Roberto MATOS]  Labor Party of Brazil or PTdoB [Luis Henrique de Oliveira RESENDE]  Liberal Front Party or PFL (now known as the Democrats or DEM)  National Mobilization Party or PMN [Oscar Noronha FILHO]  Party of the Republic or PR [Sergio TAMER]  Popular Socialist Party or PPS [Federal Deputy Fernando CORUJA]  Progressive Party or PP [Francisco DORNELLES]  Social Christian Party or PSC [Vitor Jorge Abdala NOSSEIS]  Workers' Party or PT [Ricardo Jose Ribeiro BERZOINI]
Travel:  Miami, Orlando, or New York are popular international travel destinations for middle-class and wealthy families.
Population:  Expansion of urban areas has lead to a shift to employment in the industrial industry. The construction industry has benefited the most as there is a need for homes, schools, and infrastructures.
Low Individualism Index:  Family members will often be found working for the same company.
Low Masculinity Index:  The need for togetherness makes people less inclined to spend nights in hotels for pleasure than those cultures with a high masculinity
High Power Distance Index:  Older people are more important because of respect for old age.  There are strong dependency relationships between parents and children, bosses and subordinates, etc.  Children play more with each other. Thought Processes: Locus of Control:148  In collectivistic cultures, powerholders make the decisions and people are more inclined to express buying intention. Culture in General:149  In terms of gift giving, • Orchids are considered a nice gift, but not purple ones. • Handkerchiefs are associated with funerals, so they do not make good gifts.
148 De Mooij, Marieke, Global Market and Advertising, 2005
149 Everyculture, Brazilians and their culture, http://www.everyculture.com/multi/A-Br/Brazilian-Americans.html, 2010
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• Gifts are opened when received. • White is an essential, gift giving color.  It is considered acceptable to interrupt someone who is speaking.  It is important that one does not do anything to embarrass a Brazilian.  There is a desire for convenience. 150  Large quantities of soft drinks are consumed due to the warm climate. Fruit juices are widespread as a result of the abundance of fresh fruit. Ice-cold beer is also very popular. Coffee is the leading hot drink, by virtue of Brazil's position as a leading coffee producer.
Time Orientation:151
 A majority of respondents confessed to having missed an appointment due to getting lost. About 8% could not make it to a wedding, a romantic date, or a family anniversary celebration for this reason, and 31% had to ask for directions or consult a map. Brazilians also do various tasks at the same time.
Consumption decisions and behavior:  Most shops and government services are open Monday to Friday (9am - 6pm) and Saturday (9am - 1pm); shopping malls are open Monday to Saturday until 10pm, and sometimes Sunday (3pm to 9pm); restaurants tend to open from noon until 2:30pm and from 6pm until 10pm; and banks are generally open from 9am or 10am to 2pm or 3pm Monday to Friday.152 Fridays and Saturdays represent 41% of overall expenditure.153  Some of the leading watch companies in Brazil include Timex Corp., Seiko Epson Corporation of Japan, Fossil Inc. and Bulova Corp.  Key distribution channels for personal goods are shopping centers, including major retailers such as Pao de Acucar, Wal-Mart, and Bompreco, and specialist independent shops. The rapid growth of multi-product hypermarkets and their one-stop shopping convenience drive sales of inexpensive personal items, displacing sales among specialty retailers. Watch retailers are expected to disappear as a result of this rising competition.  Middle-class households increased their participation in consumer spending from 26.2% in 2001 to 27.2% in 2005. Today, their primary objective is to purchase well-known luxury brands to elevate social status.154  Single and 2-person households are gaining ground, while households of five and more have shown static growth from 1995 to 2007. The growing presence of women in the workforce and increased life
150 Euromonitor International, Brazil Growth in 2020, 2010
151 Euromonitor International, Brazil Growth in 2020, 2010
152 Lonely Planet, Brazil Work and Study, http://www.lonelyplanet.com/brazil/work-study-volunteering/work, 2010
153 Euromonitor International, Brazil Consumer Lifestyles, 2009
154 Euromonitor International, Brazil Consumer Lifestyles, 2009
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expectancies aid this decline. Shrinking household sizes are changing the way products are marketed, including smaller portions and convenient packaging formats, such as resalable options. 155  Young women belonging to the mid-low and lower social economic strata are boosting growth in various markets. This happens because these women are more interested in studying at school than their parents. These C Type women are also more interested in obtaining a good job versus their wealthier peers. In addition, 30% of households are lead by women156  The average annual disposable income levels in Brazil rose dramatically from 2000-2007. Female wages grew by 92%, while male wages grew by 78%.157 Young women belonging to the mid-low and lower social economic strata are boosting growth in various markets. In addition, 30% of households are lead by women.158
Culture and Media Facts:  There are 138 TV broadcast stations, and 1,365AM, 296FM broadcasting Radio Stations. Brazil is also has 4,000 airports (second in the world), is tenth in the world for the amount of railways, fourth for roadways and third for waterways.159
Home Connectivity:  Telephone: Four companies share 93.7% of the market as of October 2009: Oi (33.1%), Telefonica (27.6%), Brasil Telecom (19.3%) and Embratel (13.9%) and divided into three broad service regions
Mobile Advertising:  12 million Brazilians regularly access the web using their mobile phones. The potential for the mobile Internet is huge: there are already three times more mobile phones than PCs. Text-to-win is the most popular format, but mobile websites and mobile advertising are popular as well. Usually mobile is an integrated part of a bigger campaign, but there are also standalone promotional efforts.  A large percentage of mobile is prepaid phone (more than 80%). Brazil is a very interesting market as advertising could be a way to subsidize telecom costs. Since this is a personal device, there‘s a greater potential for carriers to enrich the customer experience with information services and tailored messages that are both relevant and valuable.160
155 Euromonitor International, Brazil Consumer Lifestyles, 2009
156 Euromonitor International, Brazil: Country Pulse, January 2010
157 Euromonitor International, Consumer Lifestyles –Brazil, February 2009
158 Euromonitor International, Brazil: Country Pulse, January 2010
159 The World Factbook, https://www.cia.gov/library/publications/the-world-factbook/geos/br.html, March 2010
160 Mobithinking, The insider’s guide to mobile marketing in Brazil, http://mobithinking.com/interview-transcripts/the-insider-s-guide-mobile-marketing-brazil, 2009
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Internet/Social Media:  Brazilians are intensive consumers of telecommunications and media, which they use mainly for socializing and entertainment.161  Alternative connectivity channels are friends' houses (22.0%), the workplace (21.0%), schools/universities (14.0%), and the government's public connectivity centres/‘Telecentros‘ (4.0%). As of November 2009, there were almost 4,000 public hotspots in the country, although around 70.0% of them were concentrated in the cities of Sao Paulo and Rio de Janeiro.162
161 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
162 Euromonitor International, Technology, Communications, and Media: Brazil, December 2009
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Japan163
Culture In General:
 Compared to the Asia and the world average, Japan is high in MAS, UAI and LTO.
 The cultural dimensions of Japan are as follows: P-time culture, circular time concept, high context, above average power distance, collectivistic, masculine, strong uncertainty avoidance, and long term orientation.
 Japan has the following cultural characteristics:
 Pressure on every Japanese person to know his or her place, to behave like his or her neighbors, not to shame his or her family, and to avoid jolting social harmony.
 Dependence
 Private opinions not expressed
 Status is important to show power and success, but avoid standing out in a crowd: ‗the nail that sticks out will be hammered down.‘
 Long-term thinking
 A cash culture, not a credit card culture
 Thrift, perseverance
 Strong role differentiation
 Education is not based on teaching students to be critical: The very meaning of ‗to think‘ is differently understood. In Japanese culture, it means something like to find an answer that can be shared by others. Students ask ‗how‘ instead of ‗why.‘ Education has an intrinsic value, which cannot be measured purely in terms of the labor market.
 ‗Now‘ is accepted as a collective necessity, but basically the Japanese do not like change.
 Obsession with cleanliness, purity
 Harmony with nature rather than conquest over nature
The followeing are characteristics of long-term orientation and collectivism.
163 De Mooij, Marieke, Global Market and Advertising, 2005
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 Harmony / Harmony with fellow human beings: One of the most important basic Japanese values is harmony: walk together, think together, and dine together. This is related to empathy, respect for age, and honesty.
 Nature / Harmony with nature: When the Japanese speak of the providence of nature, they refer to a natural order that they believe to be the foundation of all existence. In Japan, human beings seek comfort by attempting to immerse themselves in nature. The Japanese also turn to nature because there is something unsatisfying in the way that they deal with human relations, where the surface is always glossed over and conflict is kept in the shadows.
The 12 Japanese core values:
1. ‗To keep friends is very important.‘ The word friend means the number of people in the in-group. It does not relate to the Western concept of friendship, but to ‗correct behavior versus the others in your group.‘
2. ‗Want to refresh from a tired brain or body.‘ This statement is related to stability.
3. ‗Want to learn knowledge faster than other people.‘ Values in this statement are related to change.
4. ‗Identity of myself is important.‘ This relates to freedom and fits with individuality. It is an example of a value that is emphasized because it is lacking in society.
5. ‗Have a happy time with friends and family.‘ The Japanese word is danran, which has no equivalent in English. It means having a happy time, enjoying open-hearted conversation with your family and good friends. This statement is related to participation.
6. ‗To live without fear – safety.‘ This statement is also related to stability.
7. ‗To create something and upgrade my ability.‘ This statement is related to change. This reflects the Japanese value of ‗continuous improvement.‘
8. ‗Live easy, I do not create about my surroundings.‘ This me-ism, wanting to be yourself outside the group, emphasizes freedom.
9. ‗Do well with all people around me.‘ This reflects social life and participation.
10. ‗Want to be healthy.‘ This statement is also related to stability.
11. ‗To live in loneliness, have a lonely time.‘ This related to voluntary solitude and freedom.
12. ‗Want to have stimulation, change in my life, diversion, new things.‘ This is related to change.
Sector Trends:164
 Mechanical watches occupied the largest share of the market by volume in 2005, at 54.7%, followed by the quartz analogue with 23.1% and quartz digital with 22.2%. The share of mechanical watches has declined after 2005, with retailers seeing an increase in demand for high-quality well-known watches.
164 Euromonitor International, Watches in Japan, 2006
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 The Generation Y members are active purchasers of watches. When limited supplies of models are available, customers are unwilling to purchase alternatives when these are out of stock.
 Catalogues and websites are the best sources of information from which consumers choose their preferred models. Magazines are influential in encouraging both genders to choose their preferred models.
Competitive Landscape:
 Key domestic players include Citizen Watch Co Ltd, Casio Computer Co Ltd, Seiko Corporation and Swatch AG (Japan). The market is largely dominated by foreign brands, which hold a market share of almost 60%. These include Swatch AG, Omega, Rado, TAG Heuer, Baume, and Mercier.
 Competition is expected to become fiercer, with many brands launching products with value-added features and technologically advanced gadgets designed to attract a larger consumer base.
 Citizen Watch has introduced new designs for its Campanola, The Citizen, Exceed, Attesa, Promaster, XC, Forma, Cletia, Stiletto, Alterna, Reguno, and Wicca models.
 To compete with Swiss brands, Citizen Watch Co. intensified sales by marketing radio-controlled watches. These pick up the radio signals sent by two transmission stations operated by the National Institute of Information and Communications Technology.
 Casio introduced a new line of wristwatches, including Protrek, Oceanus, and G-shock, which were used as the official watches for the 2006 World Cup. It also presented its Lovers Collection 2005 with a black-and-white design under its G-shock brand.
 Seiko celebrated its partnership with B-A-R Honda by launching the new Seiko Sportura range.
 Swatch Japan introduced its ‗Swatch Irony Petite Seconde‘ model, which proved highly popular among fashion-conscious consumers. It also introduced the ‗Happy Joe Sumi‘ and ‗Happy Jenny Sumi‘ brands.
Sector Outlook
 The market for watches is expected to reach more than ¥578 billion in 2010.
 Wealthier consumers will continue to prefer foreign brands on account of their up-market image.
 Fashionable watches with up-market images will gain market share, aided by powerful advertising campaigns designed to widen the customer base.
 The market for mechanical watches will continue to decline due to competition from other watches, especially the quartz digital segment. It is expected that some 2.2 million units sold in 2010 will be of the digital variety.
 Domestic players will eventually lose their dominant share of the market as more consumers opt for foreign brands.
 The total watch market is expected to decline over the forecast period, at an annual average rate of 1%, on account of falling demand for mechanical and quartz analogue watches.
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Work-life Balance
 Recently, Japanese have lawmakers pushed to transform the Japanese society into a leisurely and lifestyle based society by attempting to increase expenditure on leisure pursuits. Because of this, the development of more varied leisure complexes, museums, theatres, and exhibition centers across Japan has been heavily promoted.
125
Switzerland
Culture and Media Switzerland Newspapers and News Media - National and Foreign Switzerland - Broadcast News Media
National National National National National National National
DRS RSI RSR RTR SF Teletext TSR
BC BC BC BC BC BC BC
GI GI GI GI GI GI GI
DEU ITA FRA ROH DEU DEU FRA
Radio Radio TV Radio Radio TV TV Teletext TV Switzerland - Internet News Media
National National National National National National Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign
Cosmopolis Edicom Google Google News Swisster Big News Network EIN News Expatica Index Mundi Inside Europe Moreover News Now One World Swiss Daily Topix Yahoo Yahoo
IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN IN
GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI
DEU FRA DEU FRA DEU ENG ENG ENG ENG ENG ENG ENG ENG ENG ENG ENG ENG FRA
Switzerland - Magazine News Media
National National National National National National National National Foreign
Beobachter Bilanz Facts Inside Switzerland L'Hebdo Schweizerzeit Swiss News Tachles Economist
MG MG MG MG MG MG MG MG MG
GI BU GI GI GI GI GI RL GI
DEU DEU DEU ENG FRA DEU ENG DEU ENG
Jewish Switzerland - Newspaper News Media
National National National National National National
Blick Cash Die Weltwoche Neue Zurcher Zeitung Sonntags Zeitung Tages Anzeiger
NP NP NP NP NP NP
GI BU GI GI GI GI
DEU DEU DEU DEU DEU DEU
Switzerland - Press Agency News Media
National National National National
Pressetext Schweiz SDA ATS SDA ATS SDA ATS
PA PA PA PA
BU GI GI GI
DEU DEU FRA ITA
Switzerland Newspapers and News Media - Local
126
Aargau
Aargau Brugg Zofingen
Aargauer Zeitung General Anzeiger Zofinger Tagblatt
NP NP NP
GI GI GI
DEU DEU DEU
Appenzell Ausserrhoden
Herisau Herisau
Appenzeller Zeitung Herisauer Zeitung
NP NP
GI GI
DEU DEU
Basel Landschaft
Binningen Liestal
Binninger Anzeiger Basellandschaftliche Zeitung
NP NP
GI GI
DEU DEU
Basel Stadt
Basel Basel Riehen
Basler Zeitung Baslerstab Riehener Zeitung
NP NP NP
GI GI GI
DEU DEU DEU
Bern
Bern Bern Bern Bern Biel Biel - Bienne Brienz Grindelwald Interlaken Langenthal Langenthal Langnau Meiringen Spiez Thun
Bauern Zeitung Berner Rundschau Berner Zeitung Der Bund Bieler Tagblatt Le Journal du Jura Der Brienzer Echo von Grindelwald Jungfrau Zeitung Langenthaler Tagblatt Neue Oberaargauer Zeitung Wochen Zeitung Der Oberhasler Berner Oberlander Thuner Tagblatt
NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP
AG GI GI GI GI GI GI GI GI GI GI GI GI GI GI
DEU DEU DEU DEU DEU FRA DEU DEU DEU DEU DEU DEU DEU DEU DEU
Fribourg
Bulle Fribourg - Freiburg Fribourg Fribourg
La Gruyere Freiburger Nachrichten La Liberte L'Objectif
NP NP NP NP
GI GI GI GI
FRA DEU FRA FRA
Geneve
Geneve Geneve - Geneva Geneve - Geneva Geneve Geneve Geneve
Agefi Geneva Lunch Geneva Times Le Courrier Le Temps Tribune de Geneve
NP IN MG NP NP NP
BU GI GI GI GI GI
FRA ENG ENG FRA FRA FRA
Glarus
Glarus
Fridolin
NP
GI
DEU
Graubunden
Chur Chur Chur Ruschein Schiers St. Moritz
Bunder Tagblatt Die Sudostschweiz La Quotidiana Punts Prattigauer und Herrschaftler Engadiner Post
NP NP NP MG NP NP
GI GI GI GI GI GI
DEU DEU ROH ROH DEU DEU
Jura
Delemont
Le Quotidien Jurassien
NP
GI
FRA
127
Luzern
Luzern Luzern Luzern Luzern Schupfheim Sempach
Die Selezione Gazeta Lusofona Neue Luzerner Zeitung Zisch Entlebucher Anzeiger Sempacher Woche
IN NP NP IN NP NP
GI ET GI GI GI GI
DEU POR DEU DEU DEU DEU
Portuguese
Neuchatel - Neuenburg
La Chaux de Fonds Neuchatel
L'Impartial L'Express
NP NP
GI GI
FRA FRA
Nidwalden
Stans
Neue Nidwaldner Zeitung
NP
GI
DEU
Obwalden
Sarnen Sarnen
Aktuell Informationsblatt Obwalden Neue Obwaldner Zeitung
NP NP
GI GI
DEU DEU
Schaffhausen
Schaffhausen
Schaffhauser Nachrichten
NP
GI
DEU
Schwyz
Lachen March Schwyz Schwyz Wollerau
March Anzeiger Zurichsee Zeitung Bote der Urschweiz Neue Schwyzer Zeitung Hofner Volksblatt
NP NP NP NP NP
GI GI GI GI GI
DEU DEU DEU DEU DEU
Solothurn
Olten Olten Solothurn Solothurn
Neue Oltner Zeitung Oltner Tagblatt Solothurner Woche Solothurner Zeitung
NP NP NP NP
GI GI GI GI
DEU DEU DEU DEU
St. Gallen
Alstatten Berneck Buchs Ebnat Kappel Rapperswil St. Gallen St. Gallen Wattwill Zuzwil
Rheintalische Volkszeitung Der Rheintaler Werdenberger und Obertoggenburger Toggenburger Nachrichten Linth Zeitung Anzeiger St. Galler Tagblatt Toggenburger Tagblatt Info Wil
NP NP NP NP NP NP NP NP IN
GI GI GI GI GI GI GI GI GI
DEU DEU DEU DEU DEU DEU DEU DEU DEU
Thurgau
Eschlikon Frauenfeld
Regional Zeitung Thurgauer Zeitung
NP NP
GI GI
DEU DEU
Ticino
Locarno Lugano Lugano Lugano
Tessiner Zeitung Corriere del Ticino Giornale del Popolo La Regione Ticino
NP NP NP NP
GI GI GI GI
DEU ITA ITA ITA
Uri
Altdorf Altdorf
Neue Urner Zeitung Urner Wochenblatt
NP NP
GI GI
DEU DEU
Valais
Brig Fully
Rhone Zeitung Journal de Fully
NP NP
GI GI
DEU FRA
128
Sion Visp
Le Nouvelliste Radio Rottu Oberwallis
NP BC
GI GI
FRA DEU
Radio
Vaud
Lausanne Lausanne Lausanne Lausanne Montreux Morges Mur Mur Nyon Nyon Yverdon
24 Heures 24 Heures L'Agefi Le Matin 24 Heures Journal de Morges Le Lac Le Lac 24 Heures La Cote 24 Heures
IN NP NP NP NP NP NP NP NP NP NP
GI GI BU GI GI GI GI GI GI GI GI
FRA FRA FRA FRA FRA FRA DEU FRA FRA FRA FRA
Zug
Zug
Neue Zuger Zeitung
NP
GI
DEU
Zurich
Adliswil Bulach Dielsdorf Dubendorf Ebmatingen Elgg Horgen Kloten Meilen Regensdorf Stafa Stafa Thalheim Thalwil Winterthur Winterthur Winterthur Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich Zurich (Nord)
Sihltaler Neues Bulacher Tageblatt Rumlanger Glattaler Maurmer Post Elgger Zeitung Zurichsee Zeitung Anzeiger der Stadt Kloten Meilener Anzeiger Furttaler Zurichsee Zeitung Zurichsee Zeitung Die Dorfposcht Thalheim Gutighausen Thalwiler Anzeiger Der Landbote Winterthur Winterthurer Stadtanzeiger 20 Minuten Blick Blick am Abend Cash Die Weltwoche Die Wochenzeitung Finanz und Wirtschaft Handelszeitung Neue Zurcher Zeitung Quartier Echo Sonntags Blick Sonntags Zeitung Tages Anzeiger Zeit Fragen Zurich News Die Vorstadt
NP NP NP NP NP NP NP NP NP NP IN NP NP NP NP IN NP NP NP NP NP NP NP NP NP NP NP NP NP NP NP IN NP
GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI GI BU GI GI BU BU GI GI GI GI GI GI GI GI
DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU DEU ENG DEU
129
Media Distribution165
Brazil
Japan
Switzerland
US
TV – 42.8% Radio – 5.1% Print – 47.0 % Outdoor/Transit – 5.1% Cinema – 0%
TV – 58.4% Radio – 5.1% Print – 36.5 % Outdoor/Transit – 0% Cinema – 0%
TV – 13.2% Radio – 3.3% Print – 68.8 % Outdoor/Transit – 13.7% Cinema – 1%
TV – 36.7% Radio – 13.6% Print – 46.1 % Outdoor/Transit – 3.6% Cinema – 0%
Newspapers, Televisions, and Radios per 1,000 Inhabitants (2002)166
Brazil
Japan
Switzerland
US
43 Newspapers
433 Radio Receivers
343 Television Receivers
578 Newspapers
956 Radio Receivers
725 Television Receivers
369 Newspapers
1,002 Radio Receivers
548 Television Receivers TV
213 Newspapers 2,118 Radio Receivers
185 Television Receivers
165 Muller, Barbara, Dynamics of International Advertising, 2004
166 Muller, Barbara, Dynamics of International Advertising, 2004
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Marketing Campaign/Program Brief Section I: Campaign Overview Campaign Name: CreArt Campaign Campaign Description: This 2009 CreArt Collection campaign connects Swatch with artists from around the world. It is the manifestation of a long-term collaboration between Swatch and the arts. With Venice in mind, Swatch challenged four artists to create new work for ‗the world‘s smallest canvas.‘ These artists, Billy The Artist, Ted Scapa, Matthew Langille and Grems have each created new Swatch watches for the Swatch 2009 CreArt Collection.
Broad Objective(s):
 Introduce and promote awareness of the CreArt Campaign that focuses on integrating creativity and art in a wearable form.
 Strengthen the Swatch brand identity and create liking and awareness of the CreArt Collection and other Swatch products among young students (18-25) globally by stressing that Swatch is about color, creativity, and art.
 Incorporate different mediums (print ad, website, MTV – user-generated content, online communities)
 Remind consumers Swatch is a fashionable brand with a fun personality.
 Leverage partnerships with artists that align with Swatch‘s personality in addition to Swatch‘s MTV partnership.
Brazil
 Target younger consumers (18-25) and encourage purchase of inexpensive models to wear as fashion accessories rather than for the purpose of telling time.
 Increase interest in Swatch watches through reaching the target audience through different mediums, by leveraging and liking aspects of the Brazilian culture to the Swatch brand.
Japan
 Increase annual sales in Japan‘s market to reverse the negative gross income growth (–2.6%).167
 Expand awareness by increasing the number of members by 10%.
 Introduce 20% of current buyers to the world of abstract creativity by making art ‗wearable‘.168
Switzerland
Since Swatch watches are widely known in Switzerland, the objectives are to:
 Maintain current customers.
 Extend target consumers to teenagers.
 Entice customers to wear two Swatch watches (‗80s tradition).
 Increase sales from -7.7% (2009) to 3%.
Specific Success Metric(s):
Global
 Have over 600 Twitter Users and 100,000 Facebook fans.
 Increase customer engagement of the brand via interactive mediums across multiple platforms (total length of time spent engaging with the brand).
 Increase consumption of the watch for the current target market.
167 Swatch Group, Swatch Group Half-year Report 2009, http://www.swatchgroup.com/en/services/archive/2009/swatch_group_half_year_report_2009,2009 168 Killahbeez, Billy the artist for swatch creArt collection, http://www.killahbeez.com/2009/07/07/billy-the-artist-for-swatch-creart-collection/, 2009
131
Brazil
 Increase the number of Twitter followers by 15%.
 Have more than 100 event attendees for Fashion‘s Night Out.
If CreArt Campaign was pushed in Brazil, the following meaurements should be implemented:
 Have a click-through rate of 0.5, since over 90% of Brazilians prefer to use mobile telephones.
 Increase total unique visitors to Swatch MTV Playground and Swatch website by 20%.
 Increase number of Facebook fans by 10%, especially since only 4.5% of Brazilians use Facebook. Currently, there are 113,069 fans; an increase would equal to 124,376 users.
 Increase of number of loyalty card carriers (the benchmark is 50 filled application forms a month).
 Create a benchmark based on how many individuals use promotional coupons placed in the CreArt Campaign newspaper advertising.
Japan
 Have a click-through rate in Japan of 0.5, since over 80% of Japanese prefer to use mobile telephones.
 Increase total unique visitors to Swatch MTV Playground and Swatch website by 20%.
 Increase the number of Facebook fans by 20% since Facebook recently entered Japan in 2008.
 Compared the previous year, aim the net income and net sale growth rate to grow by 2%.
 Increase the in-store foot traffic by 20% and increase the transaction (conversion) rate by 2%.
 Grow of the amount of customers redeeming online coupons by 2%.
 Grow of the amount of customers redeeming print ad coupons by 1% of the total coupons sent out.
Switzerland
 Have at least 1,000 unique visits to the MTV Playground booth at the Blue Balls Festival.
 Receive coverage in over 5 national and regional newspapers, 3 television channels, 5 general interest magazines, and 4 fashion and beauty magazines.
 Generate 100 conversations about the MTV Playground event and CreArt products on a daily basis on Twitter.
 Have more then 50 videos post by fans on the Facebook fan page of MTV Playground.
Budget and PO#:
5 million from Swatch
2 million from MTV
Total: 7 million
To include the creative time, production, and media placement of the following deliverables, dubbed or translated to (English, Japanese):
 Campaign brand guidelines and logo for entire campaign.
 Logo for each artist leveraged in product creation of Swatch‘s new collection.
 4 Downloadable :30 commercials produced for the web.
 4 :30 commercials produced for TV.
 A downloadable brochure for online.
 A brochure for in-store purposes.
 Online promotional campaign leveraging the partnership with MTV and artists apart of Swatch‘s new collection.
 An addition to Swatch's corporate website format.
Also to include:
 Pre-Market testing, to identify any cultural sensitivities.
 Post-Market testing, including focus groups, to evaluate performance of campaign against campaign objectives.
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Timing:
 June 30,, 2009: Lanunch in Venice with a press conference and art show on the Piazza San Marco
 July – October 2009: big push for watches due to receiving above average sales during this time period and seasonal nature of watch segment. Seasonal nature = watch brands are offered at discounts under standard retail value to promote their products during certain seasonal sale.
 October 2009-March 2010: Showcase the CreArt watches and campaign on the Swatch website, Facebook and Twitter.
2009
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
Campaign: CreArt Collection
Swatch website
MTV Playground Website and Events
Facebook
Twitter
2010
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec Campaign: CreArt Collection
New Campaigns include: Colour Codes, Street Club, Outllaws, Swatch + Art, Manish Arora Swatch website Facebook Twitter
Section II: Situation Analysis
Market Situation and Competitive:
How well are we known or recognized right now?
The Swatch Group is the world's second-largest watchmaker. It includes 19 watch brands, ranging from low-priced Swatch and Flik Flak to high-priced Blancpain, Brequet, and Omega. The Swatch Group sells watches to 15,000 retailers worldwide, more than 500 Swatch stores, more than 1,000 shop-in-shops, and some 140 kiosks.
After the market declined in late 2008 and early 2009 due to a worldwide recession, most markets recovered in the second half of the year, ‗with clear signs of market normalization and increased consumer confidence‘. The watch industry is an exact example. Consumers value brand awareness, tradition, history, and high-quality products more than ever. The Swatch Group, with its wide range of products covering all price segments, has enlarged its market share in most markets and regions.
Economic Factors (Globally):
According to the Federation of the Swiss Watch Industry, overall there was a 22.3% drop in sales for the Swiss watch in 2009. Swatch reported net profits fell 8.9% in 2009. The group's operating margin fell to 17.6% in 2009 from 21.2% the previous year, due to the demand wilt and declining consumer confidence during the recession from 2008.169
169 Diderich, Joelle, WWD, 2010
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Brazil:
Market Size: Population 198,739,269
Potential Growth (Watch Industry):
 Average annual disposable income levels in Brazil rose dramatically 2000-2007. Female wages grew by 92%, while male wages grew by 78% over the period.
 Watches are widespread and available at many price points in a variety of distribution channels. Mechanical watches, along with quartz digital models, are very popular choices. However, despite a strong sales forecast, watches should be wary of competition from other products, such as personal computers and cell phones. The proactive role being taken by suppliers to develop seasonal collections, create brand extensions, and boost market share will retain interest in the market and encourage higher-value transactions.
 As watch replacement cycles have accelerated, younger consumers are purchasing inexpensive models to wear as fashion accessories. The watch market will polarize in the future between cheap, fashion models targeted at the watch as fashion accessories, and expensive mechanical models that appeal to middle and upper classes.170
Japan:
Market Size: Population 127,078,679
Potential Growth (Watch Industry):
 Wealthier consumers continue to prefer foreign brands on account of their up-market image, thus domestic players will lose their dominant share of the market. In addition, fashionable watches with an up-market image will gain market share, aided by powerful advertising campaigns designed to widen the customer base.
 The total market for watches is expected to decline, at an annual average rate of 1%, on account of falling demand for mechanical and quartz analogue watches.171
Switzerland:
Market Size: Population 7,604,467
Potential Growth (Watch Industry):
 The wider availability of inexpensive accessories has changed the way the young Swiss shop for such items. In the past, consumers tended to buy few items of high quality. Now, consumers buy less expensive items so that they can keep up with current fashions.172
 Exports in the Swiss watch sector decreased more than 22% last year, but business began to rebound in November and December, led by activities in Asia, with the upturn continuing into 2010.173
Watch
The top three competitors are Seiko, Citizen and Richemont.
Overall Revenue ($, millions)
2006
2007
2008
2009
The Swatch Group
4,568.10
5,350.93
5, 380.74
4,873.79
Citizen Holdings Co., Ltd.
3,601.90
3,607.22
3,180.51
N/A
Compagnie Financiere Richemont SA
5,845.86
6,550.13
7,178.65
7,352.35
Seiko Holdings Corporation
2,289.85
2,240.86
2,292.42
1,864.56
170 Euromonitor International, Country Sector Briefing, 2006
171 Euromonitor International, Country Sector Briefing, 2006
172 Euromonitor International, Consumer Lifestyles-Switzerland, February, 2010
173 Swissinfo.ch, http://www.swissinfo.ch/eng/business/Optimism_returns_in_watch_sector_.html?cid=8556890, 2010
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Watch Revenue ($, millions)
2006
2007
2008
2009
The Swatch Group*
3,706.07
4,462.06
4,307.64
3,966.59
Citizen Holdings Co., Ltd.
1,424.81
1,499.79
1,419.75
N/A
Compagnie Financiere Richemont SA
2785.97
3,070.61
3,466.82
3,485.81
Seiko Holdings Corporation
1,153.88
1,222.94
1,255.66
1,002.63
*Swatch includes Jewelry in their Watch segment.
 Seiko Holdings, based in Tokyo, is best known for wristwatches, clocks and precision timing devices for athletic events. The Hattori family owns the company, and the first watch was produced in 1924. Recognized as a leader in timekeeping accuracy and advanced technology, Seiko products are often used as the official timekeepers of major sporting events, including the FIFA World Cup editions. Prices range from $45US to $554,000US. Seiko does not release all of its watch lines in every region. Subsidiaries are Seiko Watch Corporation, Seiko Clock Inc., Seiko Service Co., Ltd., Seiko Time Systems Inc., Seiko Sports Life Co., Ltd, Seiko Precision Inc., Seiko Jewelry Co., Ltd., and Seiko Optical Products Co., Ltd., Seiko NPC Corporation, Seiko Instruments Inc., Wako Co., Ltd., Cronos Inc., Seiko Business Services Inc., and Ohara Inc. Seiko Holdings' total sales fell nearly 19% in fiscal 2009 in comparison to the earlier period due to the global recession, and competition from mass merchandisers and discount eyewear chains; the company, however, plans to increase the number of SEIKO Boutiques in Asia.174
 Citizen's Holding LTD (Tokyo) is known for its public clocks in major cities worldwide, and also makes watches for pilots, divers, and sailors, and Eco-Drive light-powered watches for men and women. The company struggled in 2008 due to the recession, stalled consumer spending, limited credit, and decreased demand for printers and calculators. They have been the official timekeeper and watch of the US Open since 1993. Subsidiaries include Citizen Watch Co., Ltd., Japan CBM Corporation, Citizen Systems Co., Ltd., Citizen Miyota Co., Ltd., Citizen Fine Tech Co., Ltd., and Citizen Seimitsu Co., Ltd.175
 Found in 1988 by South African businessman, Anton Rupert, Compagnie Financière Richemont (Swiss), the world‘s second largest luxury goods firm, has four main business areas: jewelry, watches, writing instruments and clothing. This company sells nine watches: Cartier, Van Cleef and Arpels, Piaget, Vacheron Constantin, A. Lange and Sohne, Officine Panerai, International Watch Co., Baume et Mercier, and Roger Dubuis.176
Other competitors include Rolex, Timex, Benetton, Bulgari, CASIO COMPUTER, Armitron, Fossil, Inc., Guess, Hermes, LVMH, Movado Group, and Tiffany and Co.
Cellular Phone
 Nokia Corporation, the world's largest maker of cell phones, is engaged in the manufacturing of mobile devices. The price of mobile phones range from $65 to $549.The company‘s new N-Series has the potential to boost brand ownership by making Nokia more cutting edge, appealing to the 12-24 age bracket and technophiles.177
 The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. Samsung continues to develop handsets for all levels of the phone market. In 2008, the company debutted a smartphone called Instinct to compete with Apple's iPhone. It also
174 Seiko Holdings Corporation, Investor Relations, http://www.seiko.co.jp/en/index.php, 2010
175 Citizen Holdings Company, Investors, http://www.citizen.co.jp/english/, 2010
176 Richmont, Investor Relations, http://www.richemont.com/, 2010
177 Hoover’s Company Record, Nokia Corporation, ProQuest Web, March 2010
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launched a slider phone, exclusive to the ATandT network, called Propel. Featuring a QWERTY keyboard, the Propel is designed primarily as a messaging phone.178
 Motorola, Inc. is still a top choice for mobile phone users worldwide despite flagging sales. The company is the third maker of cell phones and also sells wireless network equipment such as cellular transmitters and amplifiers.179
Who is our competition at an event level? Set up 2009, Citizen launched a campaign entitled ‗Unstoppable‘ for its Eco-Drive watches. Instead of fashionable, artistic design, the company emphasized the functions of its Eco-Drive technology. The technology is fueled by light, and therefore, does not need a battery. The campaign invited celebrities as endorsers for the watch collection globally. Advertisements include TV commercials and print ads.
In August, 2009, SEIKO launched a new communication campaign. Focused on the new SEIKO Ananta Collection, this campaign told SEIKO‘s story and of the SEIKO‘s expertise of the watchmaker‘s art in every aspect. The campaign appeared in traditional and digital media globally. This campaign conveyed message to consumers that SEIKO is ‗a manufacturer of prestige watches‘.
Who is our competition at an organizational level?
The top three competitors are Seiko, Citizen and Richemont. For photos of the competitor campaigns, please refer to the Appendix.
Section III: Campaign Specifics
Target Audience:
Taxonomy:
Industry, titles, role in purchase decisions; what other ways are they involved with the product (users/product deployment).
N/A
Demographics, Firmographics, Psychographics:
Geography, SIC, lifestyle variables, such as activities, interests, and opinions
The Swatch watch has a global target: young students or professionals, aged 18-25. The target embodies a youthful, provocative, stylish, and artistic. The wearable art is suitable for this target and any casual and joyful moment they might experience. Based on VALs, these people are Experiencers and Strivers. Experiencers are motivated by self-expression and are avid consumers who spend a comparatively high proportion of their income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having ‗cool‘ stuff. Meanwhile, Strivers are trendy and fun loving. They favor stylish products that emulate the purchases of people with greater material wealth.180
Audience Mindset:
Their current overall pains, concerns, challenges; what their familiarity is with this offering?
 This global audience is becoming more independent in their choices. They have a wide variety of resources to gather information about items that they are planning to purchase. The world is literally at their fingertips. They are also more connected to the world and defined by the technology that they use. These people are also optimistic about their future and believe that they
178 Hoover’s Company Record, Samsung Telecommunications America, L.L.C,ProQuest Web, March 2010
179 Mintel, Mobile Phones - US - September 2008 - Leading Companies, September 2008
180 Strategic Business Insights, VALS Types, http://www.sric-bi.com/vals/ustypes.shtml, January 2010
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will make about $100,000 by the time they turn 30. However, they are worried about saving money and getting good deals on long lasting products.
 This audience knows that Swatch is a unique, provocative and stylish brand. They also understand that Swtch is closely associated to art and is sold in limited quanitites.
 In Brazil, the younger generation is wearing affordable watches as fashion accessories. The watch market will polarize in the future between cheap, fashion models targeted at the watch as fashion accessories, and expensive mechanical models that appeal to middle and upper classes.181 In Japan, Swatch is one of the top brands. While in Switzerland, young Swiss men have become increasingly more fashion conscious, and now spend more money on fashionable items.
Benefits of Product/Solution/Service Being Offered:
Product: Watch
Point of Parity is the function: the watch tells time
The selling points: artistic, affordable, trendy
Offer Description:
Wear a Swatch watch and become engaged with the brand
 Customers will be interested in the story behind the artists and visit the official website and engage with social media and PR events.
 The four artists are in different art fields (urban pop painter, graphic artist, and designer), which will appeal to customers who admire a specific art field.
 The artistic watches designed by different artists will encourage customers to buy more watches to complete their CreArt Collection.
 The customers‘ brand identity through the association with art will be enhanced.
Incentive(s) to Act/Respond:
 Free CreArt Badge with any purchase of a CreArt Watch.
 Contest winner‘s art will be displayed on the MTV Playground Gallery.
 MTV Playground Membership: Member‘s portfolio will be showcased to a worldwide audience. Membership is by invitation only.
 MTV Events: receive free stuff, buy affordable art, watch art battles.
 Limited edition Swatch watch.
Possible Roadblocks:
 Fierce Competition.
 Some countries may not value street art.
 Economic Recession.
 Persona of Swatch being too cheap.
 Multiple Swatch campaigns running within one year.
181 Euromonitor International, Country Sector Briefing, 2006
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Fix this by:
 Understanding the consumer culture.
 Changing the campaign style (emphasize different artists).
 Target fashionable, artistic, and creative individuals over other edgy sports promotions target.
Call to Action:
Visit these websites:
 <http://www.swatch.com/zz_en/artistcollection.html> CREART BY SWATCH: Introducing four designers Billy the Artist, Grems, Matthew Langille and Ted Scapa and the watches they designed.
 <http://www.swatchmtvplayground.com/en-TV/events> Swatch MTV Playground: Introducing worldwide Swatch events and each event offers the audience a chance to involve in.
 <http://www.facebook.com/Swatch#!/Swatch?v=wall>Facebook of Swatch watches. Learning and sharing information for fans and Swatch watches.
 <http://twitter.com/SwatchUS>Twitter of SwatchUS Official.
 <http://twitter.com/mtvplayground>MTV playground on Twitter.
Download material from Swatch.com
Section IV: Creative and Messaging
Marketing Vehicle(s):
i. The worldwide launch of the Swatch CreArt 2009 Collection was held in the Piazza San Marco in Venice, Italy. Billy the Artist painted, while musicians played the role of his muse. Earlier in the day, a press conference was held at the Venetian opera house, La Fenice. Swatch‘s cultural partnership with the City of Venice helped ensure the success of this unprecedented event. ii. MTV Playground Website is a web-based community in nineteen languages created to enable artists and designers to display and discuss their artwork and participate in design competitions. In particular, the best artwork was exhibited at Swatch MTV Playground events and Swatch stores around the world. This website also includes downloadable posters and computer wallpaper, commercials, widgets, ability to view events on a smartphone, video talks between Adam Levine and Jonas Akerlund, and contest information. This website has strengthened Swatch‘s relationship to art and fashion through its 2009 partnership with MTV in Europe and Asia. iii. Swatch Art Collection events worldwide centered on art battles, featuring a live-art competition where artists create work side-by-side in front of a live audience. iv. Switzerland: July 17 – 25 2009
 The first Swatch MTV Playground event kicked off at the 2009 Blue Balls Festival at the KKL in Luzern. This event included nine full-on Art battles where the audience members selected the winner. There was also a Swatch MTV Playground booth, where visitors could create their own art show by selecting images they wanted to see.
 Japan: August 14 – 15, 2009
 This event took place in the Nicolas G Hayek Center in Ginza. Four contestants from the Vantan Design Institute battled against each other in a themed art battle called ‗Traveling in Time‘. The panel of judges consisted of Ogata Yoshimi san from Swatch Japan, Alan Swart from MTV Japan and special guest judges, TENKI san, known for their creation of fashion and art in their unique ways. Visitors could also browse artwork and create their very own unique art show with mood-enhancing lights. Events also took place in China, Netherlands, Korea and Germany from July to October
 The Swatch Group primarily uses two social media outlets: Twitter and Facebook. Twitter is utilized to carry on a one on one conversation with Twitter followers, in addition to informing them of commercials, new collections, and contests. Swatch‘s Facebook fanpage is also used to interactively communicate to fans about contests and events, and show photos and videos.
 Traditional media outlets included print, billboard, and commercial advertisements.
 The artists collaborated together to create a campaign unifying the different watches into one over-arching idea, which is the Art Machine, a fast moving mechanical-looking device that creates art and spits out watches. This was viral. These commercials can be viewed in websites such as Vimeo,
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Behanced, and http://www.thankyou.dk/2009/06/swatch-3/.
2009 Annual Report, March 2010 http://twitter.com/swatch http://www.facebook.com/Swatch http://www.swatchmtvplayground.com/en-TV/events Creative Requirements:
Mandatory:
All creative should have the CreArt Swatch and Swatch logos. (The CreArt Logo will be developed as a part of this campaign.) The CreArt logo should include the Swatch logo. If the CreArt logo is used, it contains the Swatch logo, and therefore the Swatch logo does not need to be independently present as well.
All creative should adhere to both the CreArt branding guidelines (to be established by a creative who develops chosen CreArt logo), as well as the Swatch corporate brand standards:
 Logos should have at least .25 inches of negative (white space on all sides of logo)
 Logos should appear only with designated colors.
 Swatch must appear in 100% black, while RGB red is R 248, G 15, B 10, CMYK Red is C 0, M 99, Y 100, K 0, and the hexadecimal red is f80f08.
 The CreArt banner must only appear in 100% black, with the exception of the red for the swiss flag icon.
 Logos may not be tilted, rotated, or skewed on any other axis. The C in the CreArt logo and the word Swatch in the Swatch logo must be parallel to a 90 degree horizontal line.
 The kerning for swatch may not be adjusted or manipulated.
 Swatch logo may not appear in a format without the red Swiss flag icon.
All creative should feature a CreArt Swatch image. The lead product will be the Germs and Billy the Artist Watch for this campaign. Use the artists‘ watches as inspiration for the campaign graphics.
Tone for this campaign is creative, energetic, innovative, fun, imaginative, inspiring, handmade, and modern.
Deliverables should include:
 Set of graphics for use on campaign materials
 Logo for entire CreArt campaign including the Swatch brand logo.
 An individual logo for each artist: Billy the Artist, Ted Scapa, Matthew Langille, and Germs created logos that complimented the CreArt campaign, but represented each artist‘s unique style.
 Must be 100% black, vector .eps file.
 A set of decorative images that can be used independently throughout the campaign‘s materials
 An addition to Swatch's corporate website format
 Leverage the layout already existing while maintaining a consistent the look and feel of the CreArt campaign (as based off of the logo to be developed off the tone for the campaign).
 See image below for format. Final image must be a .giff or .jpeg file, 72 dpi, and exactly 722 x 625 pixels.
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 Four Downloadable :30 commercials produced for the web
 Show at least one full image of the new watch products and one close up of a Swatch CreArt watch.
 Animated.
 Last seven seconds close up on Swatch CreArt watch, including CreArt logo specific to artist.
 Each commercial must be specific to only one artist and one CreArt watch.
 Maintain creative tone established with logo and website materials.
 Utilize supporting CreArt graphical elements throughout to commercial to reinforce campaign look.
 Four :30 commercials produced for TV.
 The last frame of these should include the CreArt logo as well as a CreArt watch, for 7 seconds.
 Show at least one full image of the new watch products and one close up of a Swatch CreArt watch.
 Animated.
 Each commercial must be specific to only one artist and one CreArt watch.
 Maintain creative tone established with logo and website materials.
 Utilize supporting CreArt graphical elements throughout to commercial to reinforce campaign look.
 A downloadable brochure for online (delivered in reader‘s spreads).
 Eight pages in length.
 Must highlight all CreArt watch artists and watches.
 Maintain creative tone established with logo and website materials.
 Utilize supporting CreArt graphical elements throughout to commercial to reinforce campaign look.
 RGB color, PDF format.
 A brochure for in-store purposes (delivered printed, scored, and folded).
 Eight pages in length.
 Four color, offset printing, .tiff format, reader‘s spreads.
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 Online promotional campaign leveraging the partnership with MTV.
 A separate microsite if needed for this promotion.
 Work with MTV‘s creative team to establish technical guidelines.
 Must highlight all CreArt watch artists and watches.
 Maintain creative tone established with logo and website materials.
 Utilize supporting CreArt graphical elements throughout to commercial to reinforce campaign look.
 Promotional events.
 Across target market geography.
 Necessary supporting marketing material including signage, badges, posters, and environmental graphics.
 Live TV production and recording will be required at all events to document the event for PR.
 Must highlight all CreArt watch artists and watches (can be done at different events).
 Maintain creative tone established with logo and website materials.
 Utilize supporting CreArt graphical elements throughout to commercial to reinforce campaign look. Section V: Integrated Marketing Efforts
Follow-up Contacts:
In the date of purchase,
 Customers can get a warranty card for the Swatch watch for a period of twenty-four (24) months from the date of purchase under the terms and conditions of the warranty.
 After the date of purchase,
 Customers will receive catalogues introducing new models of Swatch watches.
 Swatch can announce the news of new products in social media, such as Twitter and Facebook.
Other Marketing Efforts to Support This Campaign:
Brazil Brazil sells Swatch watches, but the CreArt Collection did not receive a huge advertising push in this country. They mostly implemented a pull tactic, where if customers were interested in the CreArt Collection, the consumers would be the ones to go onto websites, such as MTV Playground, to scour for information. The marketing that Swatch did implement for the CreArt campaign in Brazil consisted of:
Events
 Fashion Night Out - promoting Fashion, Creativity, Street Art and Shopping at the Sao Paulo Iguatemi
Publicity/PR
 Write-ups in popular fashion magazines and blogs, such as RG Vouge and glamurama about CreArt campaign and artists.
 Sponsorships of the FIVB Beach Volleyball Tournament, Motorcycle Grand Prix, Pan-American Games, Para-Games, and X-Fighters.
Cyber Marketing
 Leverage the Social Media (Twitter).
However, to better reach their target market, the following is what they should have done or should do in the future:
Advertising
 Newspapers.
 TV.
 Mobile.
 Social Media.
Personal Selling
 Investigate adding music in stores via a Swatch Radio station.
Sales Promotions
 Introduce loyalty cards.
 Create a Swatch Radio station that can be heard on mobile phones or on the Internet.
 Place commercials on the Internet virally and on television.
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 Associate Swatch with gift giving occasions.
Direct Market
 Create fashionable posters and brochures that the target market will want to keep forever.
Cyber Marketing
 Leverage the Swatch website.
 Leverage MTV Playground.
 Leverage social media (Twitter, Facebook, Orkut).
Publicity/PR
 Sponsorships with Brazilian artists.
 Sponsorships with 2016 Olympic athletes.
(To read more, view the Brazil Recommendations section)
Japan
Direct Marketing
 A print ad and catalog of the CreArt Collection were mailed to members of Swatch The Club. The catalog includeed a special section covering the high profile press conference in Venice introducing the creation of each CreArt watch.
Advertising
 During the Christmas and New Year period, the biggest sales season, gift discounts were offered on CreArt Collection to increase the purchase intention.
 An online advertising video entitled, ‗Spot swatch 09‘-creArt‘ (see Appendix).182
 A CreArt print ad was printed in magazines relating to the arts, X-sports, and beauty.
Cyber Marketing
 MTV Playground Website is a web-based community in nineteen languages that enables artists and designers to display and discuss their artwork, as well as participate in design competitions.
 Swatch Watch‘s Facebook fanpage was also used to interactively communicate to fans about contests and events, and show photos and videos.
 An Apple partnership allowed for downloading an application to iphones, allowing consumers to see and access artwork.
Publicity/PR
 Swatch Art Collection events were held worldwide from August 14 – 15, 2009. This event, in Japan, took place in the Nicolas G Hayek Center in Ginza. Four contestants from the Vantan Design Institute battled against each other in a themed art battle called ‗Traveling in Time‘. The panel of judges consisted of Ogata Yoshimi san from Swatch Japan, Alan Swart from MTV Japan and special guest judges, TENKI san, known for their creation of fashion and art in their unique ways. Visitors could also browse artwork and create their very own unique art show with mood-enhancing lights.
Switzerland
Advertising
 Online Advertising video: Spot swatch 09‘-creArt.
 TV Commercials: Tie together the entire campaign by unifying the different watches into one over-arching idea, tone, and look. There are four commercials that introduce the four international artists and the watches they designed and serve to inform and excite the audience about the CreArt collection.
 The Swatch MTV Playgound incorporates colorful graphics and product-oriented visuals for print and outdoor ads, a TV spot, and includes an online integration with Swatch partners. This campaign supported the launch of CreArt.
Cyber Marketing
 The MTV Playground Website is a web-based community in nineteen languages created to enable artists and designers to display and discuss their artwork and participate in design competitions.
 Twitter and Facebook. Twitter is utilized to carry on a one on one conversation with Twitter followers, in addition to informing them of commercials, new collections, and contests. Swatch‘s Facebook
182 Online Advertising video: Spot swatch 09’-creArt, http://www.youtube.com/watch?v=Ocj7ObDwJTwandfeature=player_embedded
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fanpage is also used to interactively communicate to fans about contests and events, and show photos and videos.
Publicity/PR
 Swatch Art Collection events were held worldwide from August 14 -15, 2009. The first Swatch MTV Playground event kicked off at the 2009 Blue Balls Festival at the KKL in Luzern. This event included nine Art battles where audience members selected the winner. At the event, there was also a Swatch MTV Playground booth, where visitors could create their own art show by selecting images they wanted to see.
However, to better reach their target market, the following is what Swatch should have done or should do in the future:
Advertising
 The CreArt Collection could promote in magazines related to the arts, X-sports, and beauty, in addition to free newspapers like 20 Minuten and Heute.
 The CreArt product launch and MTV playground event could have been promoted through mainstream regional and national radio stations channels.
Sales Promotion
The objective on was to increase sales volume.
 At the time CreArt Collection launch, during in summer season, the Swiss usually have 20 to 25 vacation days in July and August. Therefore, a series of sales discounts or free gift with purchase could be emplyed to lift sales volume of this collection.
 In the Christmas and New Year period, the biggest sales season, gift discounts on the CreArt Collection to increase the purchase intention.
Direct Marketing
The objective was to inform customers of the new collection and the MTV playground event, ultimately serving to increase their purchase intent.
 A print ad and catalog of CreArt Collection mailed to members of The Club (Swatch‘s online membership community). The catalog would include a special section detailing the high-profile press conference in Venice, as well as introduce the creation of each watch.
 An invitation to the MTV Playground event at the 2009 Blue Balls Festival at the KKL in Luzern mailed to members of The Club.
PR/Publicity
The goal was to inform the consumers about the four watches from the CreArt artists.
 Deliver a press release of the MTV Playground event to both mainstream local and regional newspapers and TV Networks.
 Arrange a radio/TV/newspaper media interview for the artists to convey their creative message of the four watches and feature this in different media channels.
 Arrange editorial articles for magazines to cover the stories of the four artists and their creation of CreArt watches.
Internet and mobile marketing
Cyber marketing plays a role of generating attendance and increasing buzz among young social media users.
 Skyrock.com and Blogger.com are among the top 20 most visited websites. Traditional blogging is more prevalent than micro-blogging, such as Twitter, in Switzerland. Therefore, Swatch should also create a blog introducing CreArt Collection.
 Switzerland has one of the highest household penetration rates of mobile phones. Swatch can text message customers to inform them about the CreArt Collection and MTV Playground events.
Other Marketing Efforts Targeted to this Audience at the same time:
Swatch has partnered with GREMS to create ‗Street Club,‘ the club watch for 2009-10 and latest product of the Swatch + Art connection. Both Swatch and street art celebrate street-level creativity and are products of imagination, an ever-changing expression of non-stop urban culture. On April 2, Swatch launched the new Club Watch 2009 ‗Street Club‘ in Paris, with a street art exhibit and party. CreArt targets young people who are interested in fashion, art and creativity, and the Street Club campaign
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focuses on street culture and art.
Less confusion with differentiating messages for Swatch Group products:
1. Design: Different watches and package designs emphasize different styles.
2. Communication tool: Different models use different communication tools, such print ad and point-of-sale.
3. Event: Different events target different set of consumer's interest.
4. Vehicle: Different communication tools require different vehicles.
6. Price: Different prices of Swatch collections distinguish different groups.
7. Place: According to different cultures, Swatch sets up different distribution for different areas.
Section VI: Data and Analytic Plan
Lists:
Converse shoppers, Nike shoppers, Forever 21 shoppers, mobile phone accessories shoppers, HandM shoppers, and Zara shoppers, Bebe shoppers, FCUK shoppers, American Apparel shoppers, Diesel shoppers, extreme sports pursuers, art store shoppers, and art major students, magazine lists
Measurement and Reporting:
Brazil
Events
 Brazil‘s Fashion Night Out event can be measured by calculating the number of event attendees and publicity that is generated from the event.
Social Media  Twitter: Metrics will include engagement measurements, reach measurements, and trend measurements. These will measure the number of tweets, retweets, followers, among other measurements. Progress can be tracked via TwitterGrader.com‘s online tools.
The following are evaluations based on tactics that they could have implemented:
Mobile and Internet (see measurement terminology in Appendix)
 Click-Through Rates: The click-through rate will be measured by the percentage of people clicked through an online advertisement or Swatch-related website to enter a Swatch website, MTV Playground website, or social media site centered on this campaign. Products such as Google AdWords will be helpful in determining where to place appropriate and relevant ads.
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground will be measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, get a gallery widget, view videos of events footage and expert tutorials, vote on featured artwork in the gallery, join the Swatch MTV Playground community, sign up for the newsletter, take part in a research project exploring global attitudes about art (via a questionnaire). Meanwhile, both the Swatch website and the Swatch MTV Playground website will be measured by the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce right, exit pages, entrance pages and value per visit.
 Facebook: This should be measured with the Facebook Insights, which aggregates information over seven days. This will indicate to Swatch the interactions per week, post quality, and page data, and provide fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. More specifically, if fans interact with the Facebook wall, like comments, add photos, and attend events.
 Overall, Google Analytics will be helpful in providing metrics.
Personal Selling
 In-store: To calculate if foot traffic has increased prior to the campaign, salespeople at the cash register will calculate (1) how many people enter the store and (2) how many visitors purchase a product. This will be calculated every two weeks. Another way to measure if there is an increase in interest in Swatch watches and the demographics of those to buy Swatch watches. After a customer purchases a Swatch product, a salesperson will ask if the customer wants to sign up for a loyalty
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card; if the customer agrees, she or he must fill out an application form.
Sales Promotion
 Ratings: Since commercials are placed on the Internet virally, one way to measure engagement is if viewers provide comments on the commercials and rate the commercials.
 Backlinks: The amount of backlinks to the commercial, or links to the commercial content, not placed by Swatch, is another method of tracking the penetration and success of the campaign.
 Coupons: If Swatch decides to place coupons in newspapers, they can measure interest based on the number of customers who utilize the coupon.
Japan
Mobile and Internet
 Click-through Rate: The click-through rate will measure what percentage of people clicked on a CreArt Campaign text message to enter a Swatch website, MTV Playground website, or social media site centered on this campaign. In terms of the Internet, the click-through rate will be measured by the percentage of people clicked through an online advertisement or Swatch-related website to enter a Swatch website, MTV Playground website, or social media site centered on this campaign. Products such as Google AdWords will be helpful in determining where to place appropriate and relevant ads.
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground will be measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, get a gallery widget, view videos of events footage and expert tutorials, vote on featured artwork in the gallery, join the Swatch MTV Playground community, sign up for the newsletter, take part in a research project exploring global attitudes about art (via a questionnaire). Meanwhile, both the Swatch website and the Swatch MTV Playground website will be measured by the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce right, exit pages, entrance pages and value per visit.
 Facebook: This should be measured with the Facebook Insights, which aggregates information over seven days. This will indicate to Swatch the interactions per week, post quality, and page data, and provide fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. More specifically, if fans interact with the Facebook wall, like comments, add photos, and attend events.
Revenue
 Year to year sales: By comparing the current (post-campaign) and previous year‘s data of net sales, gross income, and the number of club members, Swatch can evaluate the effectiveness of the annual development. The net income and net sales growth rate should be positive in 2010.
Personal Selling
 The traffic and the transactions: To confirm the effectiveness of the advertising campaign, Swatch can compare the amount of customers and transactions in the periods of before, during, and after broadcasting by calculating the foot traffic in each of the Swatch stores. This will be calculated two weeks before broadcasting, during the broadcasting, and two weeks after broadcasting. Also based on the transactions, Swatch can analyze what product of the CreArt Collection is selling best and can modify the lead product in the media of the Japanese market.
Sales Promotion
 Online Coupons: Swatch can measure the effectiveness of the online coupons by providing customers a promotion code for online coupons on the official website, Facebook, or Twitter. Swatch then will know the number of customers who use the online coupons, the total purchase amount, and what online shopping channels they chose to purchase from, such as Swatch‘s official site, Amazon, or Yahoo! Shopping.
 Online Ratings: Consumer engagement can be measured through ratings and comments on the commercials on the Internet. Swatch then can understand the customers‘ commercial preference, and properly judge which commercial to run.
 Print Ad Coupons: If Swatch decides to place coupons with a promotion code in printed ads, like newspapers and magazines, they could measure interest based on the number of customers who redeem the coupon, the total of the purchase, where they purchase, such as in Swatch stores or department stores.
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Switzerland
Evaluation of Metrics
The overall IMC effort in Switzerland will be evaluated at the end of the 2009 fiscal year (January, 2010). The following are the measurements for Swatch to evaluate the success of CreArt campaign in Switzerland. These tactics will allow The Swatch Group to understand whether the campaign achieved the objectives.
PR
 At least 1,000 patronages visit the MTV Playground booth at the Blue Balls Festival. To calculate the foot traffic, Swatch should prepare at least 1,700 postcards and give free postcards to every visitor in the booth.
Publicity
 The media coverage will be examined with the following media outlets in each medium. The success of the IMC strategy will be determined on whether the news is covered in the main media.
The press
 Neue Zürcher Zeitung - Zurich-based daily (national)
 Tages-Anzeiger - Zurich-based daily(national)
 Le Temps - Geneva-based daily (regional)
 La Tribune de Geneve - daily (regional)
 Corriere del Ticino - Lugano-based daily (regional)
Television
 SF-DRS - German-language public broadcaster, operates three channels
 RTSI- Italian-language public broadcaster, operates two channels
 TSR - French-language public broadcaster, operates two channels
Magazine-General interest
 Inside Switzerland
 L'Hebdo
 Schweizerzeit
 Swiss News
 Tachles
Magazine- Fashion and beauty
 Annabelle
 Elle Girl
 Bolero/ Bolero Men
 Edelweiss
Cyber Marketing
Click-Through Rates
 Mobile text message: The click-through rate will measure the percentage of people that clicked on a CreArt Campaign text message to enter campaign related websites.
 Internet: The click-through rate will be measured by the percentage of people that landed on a Swatch-related website and social media site and the duration in which they stayed.
Social Media
 Swatch MTV Playground and Swatch website: The Swatch MTV Playground will be measured by the number of participants who upload their artwork onto the website, download the ‗Swatch MTV Playground gallery‘ iPhone application, get a gallery widget, view videos of events footage and expert tutorials, vote on featured artwork in the gallery, join the Swatch MTV Playground community, and sign up for the newsletter. Meanwhile, both the Swatch website and Swatch MTV Playground website will be measured by the number of total unique visitors, traffic sources, visitor‘s location, behavioral metrics, bounce right, exit pages, entrance pages, and value per visit.
 Facebook: This should be measured with the Facebook Insights, which aggregates information over seven days. This will indicate to Swatch the interactions per week, post quality, and page data, and provide fan interaction graphs, fan dashboard graphs, and fan geographic and demographic data. More specifically, if fans interact with the Facebook wall, like comments, add photos, and attend events. In 2009, the Swiss Facebook users are 1.7 million, which is 25% of the total population. The
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goal is to increase this number by 5%. More than 50 videos post by fans on the Facebook fan page of MTV Playground.
 Twitter: Generate 100 conversations about the MTV Playground events and CreArt products on a daily basis.
 Skyrock.com and Blogger.com: 2,000 click-throughs per week for each post.
Sales Promotion
 Evaluate the number of CreArt purchases during the two sales seasons, and ultimately increase sales from -7.7% to 3% over the year.
Data Capture Requirements:
 Capture users‘ demographic data such as age, gender, disposable income, frequency of buying watches, types of watches bought, average price spent on a watch, and image/impression of Swatch
 The information will be collected from websites such as Facebook or Twitter or SurveyMonkey, and by phone, survey, and in-store questionnaires. The information will be analyzed with help from Google Analytics.
 These tactics will allow The Swatch Group to understand their current positioning in the mind of the consumer, evaluate the best benchmark for each measurement, whether or not the campaign achieved objectives, and the best tactic to reach the target audience for future reference.
Section VII: Campaign Results
Objectives/Metrics:
Brazil
 Twitter has 230 followers, which indicates that the Twitter page acquired 23 followers a month. The Swatch Group has exceeded the expectation of increasing the number of followers by 15%on Twitter.
 Fashion Night Out generated a lot of buzz from fashion magazines and had over 100 event attendees, thereby, this event was successful.
 As for the goal of targeting younger consumer and interesting interest in Swatch watches through different mediums, it is believed that the former is true based on the scan of event attendees and demographics of Twitter followers; and the latter is true as visibly seen by the increase in Twitter followers, event attendees for Fashion Night Out and publicity generated from youth and fashion magazines.
Japan
 In terms of annual sales, Swatch did not reach the objective of increase annual sales in Japan, since Swatch‘s gross income growth was -2.6% in 2009. Thus, Swatch in Japan market did not meet the objective by reserving the negative gross income trend in recent quarterly reports.
 However, by establishing and expanding member club, Swatch increased the number of its members successfully. The number of Swatch the Club members registered in Facebook increased dramatically, by nearly 10%, since 2008.
 Swatch also met the objective of introducing the mainstream buyers to the world of abstract creativity by making art ‗wearable‘. It was estimated that around 20% of the mainstream buyers signed up to become a member of Swatch CreArt club.
Switzerland
 The Swatch Group has recorded the third-best year in its history with sales of $5.2 billion in 2009 and it sees healthy growth for 2010.183 Therefore, the yearly objective of increasing net sales from -7.7% (2009) to 3% is on track to be achieved.
 Facebook.com was the most popular social media site in Switzerland, with 1.7 million unique visitors in February 2009. It cited a 499% growth since 2008. The goal of increasing this number by 5% to 118,722 continues to prove reachable.
183 Swissinfo.ch, Optimism returns in watch sector, 2010.
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 Since Skyrock.com and Blogger.com were (and still are) the largest blog platforms for the younger generation in Switzerland, Swatch succeeded in creating buzz among younger generation.
Budget:
Total: 7 million. The Swatch Group adequately spent the whole budget. However, this budget was limited since The Swatch Group was unable to fully invest time, money, and effort in some countries. A larger budget would have enabled this to happen.
Lessons Learned:
Brazil
If The Swatch Group could reconfigure this campaign experience, they should have a stronger push for the CreArt Collection and campaign in Brazil. While The Swatch Group held events, such as art shows in many countries, Brazil did not host an event. It is apparent that The Swatch Group did not invest enough time, money and effort in Brazil for the Swatch collection. If the budget was larger, the Brazilian target audience might have paid more attention to Swatch watches overall, thereby, increasing interest in the brand and perhaps, building long term brand loyalty.
Japan
The CreArt campaign mostly focused on pushing in-store promotions, events, and the MTV playhouse. However, because of the e-commerce trend in Japan, Swatch should invest in a custom digital storefront in the future. This could be better organized with campaign specific watches arranged by gender, metal, and strap, and would ensure browsing is easy for the virtual customer. In addition, heritage and tradition are important to the culture. These were also elements omitted in the original CreArt Campaign. With additional budget, specific limited edition items, to appeal to the growing Japanese demand for limited-run luxury products, themed around Japanese tradition would help build long-term loyalty.
Switzerland
Swatch watches owns unique brand position and positive brand image in Swiss consumers‘ mind. In addition, Swatch watches the brand is regarded as fashion, stylish, affordable, and collectible. Therefore, the CreArt campaign was successful in Switzerland. In the future, in order to access to younger consumers effectively, Swatch watches should become more involved in online social platform such as Skyrock.com and Blogger.com. If the budget was larger, the Swatch brand & the CreArt Campaign could expand to tap into the Swiss love of snow sports. Since Swatch has sponsored X-sports, Swatch could work with the athletes to print the pictures of CreArt watches on their snowboards, ski equipment to attract young Swiss.