The Swatch

Group-11

Overview
Creation of the
Swatch

Product: high
quality, low price,
fashion design,
fully mounting
automatic process
Price: >50 dollars
Promotion:
massive
advertising, no
sales at
drugstores but at
chic boutiques
and jewelry shops
Positioning:
associating the
brand name with
positive emotions
as fun;
vacation, high
fashion accessory,
for people
between 18 and
30

Characteristics

No marketing
departments
High levels of
hierarchy
Rigidity of the
process of the
fabrication
Traditional
perception of
engineers that
avoid innovation
Industry
dominated by
engineers

Style of leadership

Strategy control

Mr. Thomke was

known to be
autocratic because he
took very important
decisions himself ,
and he had different
vision than other
engineers but he

After the creation of

the Swatch Mr.
Thomke thought of a
possibility to develop
a range of swatch
accessory to
associate the product
at a life style and to
create a brand
identity => they have
to control the risk of
failed ( failure of the
positioning and
misunderstanding of
the positioning by the
consumers )

Encourages
innovation
Develops a
marketing team
Consults
professionals
Reduces the
hierarchical levels
Encourages the
employees to
participate

Dr. Thomkes Strategy-The project delirium

Objectives :
Step 1: boost the morale of employees

Change the strategy of ETA

Step 2: change the organizational culture and structure

Encourage idea of employees

Communication across departments
Stress hierarchical levels

Step 3: defining a revolutionary product in the medium /low price

category

Control 50% instead of 10 % of the market share

Sales target: 10 million pieces in 3 years
Control costs with high quality: shock water- resistant

Step 4: developing marketing, built new marketing team.

The new concept- Objectives

1. Price: Quartz-analogue watch, retailing for no more than SFr. 50

2. Sales Target: 10 million pieces during 1st 3 years
3. Manufacturing costs: Continued expansion in order to decrease
estimated cost per watch
4. Quality: Standardized parts, high quality, waterproof, shock
resistant etc.