SWATCH CASE ANALYSIS

Group 4
 Question1- About Swatch

They were making profits because they reduced their resource cost by cutting individual parts
from 92 to 51
Why Swatch
was Successful?
They had various unique qualities because of which people wanted to buy it

They had Swatch collector club for their customers, it helped them to retain their customers

They used unorthodox promotions campaigns, and they spent a very big amount on their
promotional stunts

They used unconventional stores for their distribution and selling part
Question 2- How Swatch was different from other watches?

Technology- Swiss were pioneer

Manufacturing basis- They were
manufacturing their watches in
Switzerland which has high
labor cost
in Quartz technology too but
they belief that electronic Design- They sold products with
watches were unreliable, witty design
unsophisticated, and beneath
Swiss quality standards.

Innovation- They were the first

Sale- They were selling limited manufacturers of see-through
edition of 120 watches watches and also first one to
introduced scented watches
 Question 3- History of watch industry
Before Swatch
 By 1945,the Swiss accounted for
80% of the world’s total watch
production and 99% of all U.S.
imports
 In 1951, a company called U.S.
Time introduced a line of
disposable watches bearing the
Timex brand name
 By the end of the 1950s, one out
of every three watches bought in
the United States was a Timex
 By the end of the 1950s, one out
of every three watches bought in
the United States was a Timex
Rolex Vs Timex
 Timex watches were very simply
designed and used cheap exterior
materials that gave the devices a
strictly functional appearance
 Rolex was high-end Swiss brand
and sold luxury products
 Rolex used real metal to make
watches and were priced as a
premium product for niche market
Consumers buying
Decisions
 People preferred Swiss
brand as a show of luxury. It
had 8 million unit sales
 With coming up of quartz
technology people sifted
towards affordable watches
with sales of 450 million unit
sales
 People were looking for
affordable choices for use
which were provided by
Japanese companies
4
Question 4-Product who created a different perspective about it’s
product category

 Hush Puppies
 Founded in 1958 for use US military
 Sales in 1994 was 30,000 pairs
 In 1994, Men’s footwear GM Owen S. Baxter redesigned and
repositioned the brand
 In 1995, the company sold 430,000 pairs
 Both brands experimented with colours and unorthodox products
 Both brands targeted young people
 Both brands were highly respected in fashion industry
Question5- Past and present of Watch Industry:

Watch Power Watch

Category Watch Display Watch Style Watch Movement
Source Functionality
Pertains on Pertains to what
What you can see the overall What drives the What powers the watch can do
Description
on the watch face visual appeal watch to move the watches aside from telling
of the watch time
Chronograph
GMT
Quartz
Calendar and
Analog Mechanical
Casual Moonphase
Digital Automatic Solar
Dress Day and Night
Types Hybrid Solar Quartz
Fashion Dive
Tactile Kinetic Smartwatch
Luxury Pilot
Touchscreen Chronometer
Field
Spring Drive
Tool
Smartwatch
Question 6-If you had to create a new sub-category of watch, what
would it be?
 Swatch need to target a different
segment instead of competing wi
th smartwatches by Apple and
Google
 They need to target very sensitive
part of human life: Health
 Focusing more on innovation and
technology rather than only on
design and craftsmanship
 Swatch has high competitive
advantage to leverage upon the
name that they have
already made
Product: A watch that can keep
eye of health and tell us
requirements of nutrients
by body at particular time
Price: Premium pricing: As
parents spend on health of
children, also tier 1 and 2 cities
residents have high disposable
income. Can use skimming
pricing initially
Place (Market): Target people of
age above 30: health conscious
segments (Tier 1 and Tier 2
cities), Children of age below
15: Target parents of these
children as they are concerned
about the growth of their kids
Promotion: Promote with
emotional message: “We care
for you”.
Communication channels: Social
media, TV ads, collaborate with
schools, hospitals and health
centers. Promotional
Marathon events etc.
Question 7- What does it take for the Swatch brand to compete
successfully in the watch category today, compared to in 1993

• Swatch is a Swiss brand that stands for excellent quality and design
• Known for High quality, accuracy, durability
• Watches are known for their distinct identity and vibrant colors
• Diverse brand portfolio of 18 watch brands
• Swatch operates in 50 countries with majority of its sales in Europe
and Asia
• Positioned as a luxury segment brand
• Well recognized brand with heritage and history
• Excellent advertising and brand image of the company
Thank You