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The SWATCH Project: A Case Report
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Candidates
Zhang Xingquan, Guo Jun, Xiao Jie, Zhang Yingying, Kong Lingxiang
2006 World Economics, Faculty of Business
Hubei University
Jun 12th 2008
This report details analyzing the market situation and marketing mix of Swatch. Possible marketing strategies, and benefits and risks, are explored. Finally, the type "C" Swatch should price under $30, and an exclusive distributorship should be adopted, are concluded. Furthermore, to enlarge Swatch's global market share and to achieve the economies of scale are recommended.
The Swatch project was made by ETA, which produced a full range of watch movements and was known as the creator of ultra-thin movements used in expensive watches. This new watch would come in a variety of colored plastic cases and bracelets with an analog face, and ETA had designed an entire production process for Swatch.
As the market share of Swiss watches shrunk sharply in the global market, ETA had faced a more and more difficult circumstance. The Swatch project under the code name “Popularius” aimed at rediscovering what the market wanted and then to supply and gain it. While problems were how to gain the potential market and how to adopt different marketing strategies to distribute and promote the new watch.
The Swatch project concerned the investigation of Swatch’s potential markets and the feasibility of different marketing mix of Swatch watches and watch movements. The marketing mix of one company generally refers to product, price, promotion and place, which known as the "4Ps". This report would mainly analyze the price and place strategy of Swatch.
Product and Price:
Types of watches Before 1970s, mechanical watch was popular in the world. The energy 1 systems of these watches were series of gears, and the watch hands were attached on these gears. And Swiss were world renowned

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