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Business And ONLINE MARKETING STRATEGY For Swatch Marketing Essay

Swatch is one of the most successful brands of the Swatch Group. Its first line of plastic material quartz analog range was launched in 1983, and went to become a global phenomenon. It is a cost effective, classic wristwatch, produced in endless bright, appealing designs, and even became a cult collectors' item.

Swatch has loved this success because of its innovative design and quality, with a perfect online marketing strategy for its target audience. It is a hot collectable fashion accessory, that could be attached to clothes and also used as a ponytail music group.

However, due to the recent financial downturn coupled with changing tastes and culture of the target market, most of the wristwatch companies have been hit hard like the parent company Swatch Group.

SWATCH as a brand has been executing well in these changing environment. However in order to remain before this competitive market, SWATCH must work on its R&D with a combination of new marketing strategies.

This is an academically oriented article targeted at recommending a far more innovative strategy for 'SWATCH'. This could enable them to improve their brand personal information, which may help them to endure amongst extreme competition and improve the earnings of its parent company


The Global watch market reached US$31. 5 Billion in 2010 2010. (Global Industry Experts, Inc)

Spending on valuable and collectibles has gone upward scheduled to increase in disposable income.

However, there has been a substantial change credited to pursuing factors:

Economic slump in the major developed countries

Product and price competitiveness

Fashion and culture changes

Increased product and brand awareness

Swatch was created to the market in Switzerland in 1983. It really is area of the famous Swatch Group a Swiss conglomerate. It really is one of the most affordable, progressive and trendy lines. It is a breakthrough innovation of analog Quartz with 51 parts as opposed to the original 91 parts so that it is 80% cheaper to produce by a fully automated assembly. It is targeted at people with a thrilling lifestyle who enjoy a very fashionable and affordable procedure. This success was greatly pioneered by Dr Nicholas Hayek, powered by unrivalled, progressive marketing strategies and brand setting transformed the whole Swatch Group and gave them a new position in the market over its competition.

However, in an ever before changing market Swatch has to work its way up by launching different online marketing strategy to keep it market brand faithful and attract clients with impressive ideas, remember the ever-changing fashion.

In this Survey, I am analysing the online marketing strategy by assessing the inner and exterior market situation by using, SWOT and also differential advantages analysis.

Following this, I will recommend new approaches for producing their market segmentation and positioning tactics using SMART aims and goals with the aid of the marketing mix 4P's approach, all of which will represent the Swatch mission statement.

Situational Analysis

This involves analysis of current market situation and the factors effecting the internal and exterior environment of Swatch. These factors will be analysed by using SWOT and differential Advantage.

SWOT Evaluation.

This technique is specially made to help identify suited marketing approaches for the company to follow. (hollensen 2007)


Swatch likes consumer loyalty. This is further enhanced with the launch of Swatch Users Club. It really is a collectable, which has proven to be a hot asset and has lifted high prices at auctions.

It enjoys an esteemed brand position on earth market as being one of the most successful brands of the Swiss Conglomerate Swatch Group.

It has a variety of product lines, including Bijoux Jewelleries: which has new designs for each season with a mixture of fashion, art and sports activities.


The watch market is now very fragmented making the campaign of the brand difficult.

Swatch has been facing an extremely low turnover of its investments compared to its competitor's mother or father company.

The production per worker is vulnerable hence affecting the financial revenue of the parent or guardian company. The production of Swatch Group is $0. 2Million In comparison to $0. 3 Million of its competitor's Seiko.


Improved economic condition in expanding countries like China and India is increasing people's disposable income.

As growing countries are more westernised; Swatch could gain a competitive border in these growing marketplaces with an assortment of its innovative design and creative approach.

The recent monetary downturn has improved the spending ability of the consumer. They are switching from luxurious to affordable goods.

The ground breaking change in the e-commerce and retail sector provides direct exposure to market its product.


Threats from the counterfeit watch market is growing matter been. This results in loss of brand and its own reputation. Recent accounts show that, the counterfeit watch industry triggers loss of over $1 Billion each year.

Swatch customers are metropolitan trendsetters who favor changes and are unstable. So if swatch does not produce innovate style it can make huge damage on its sales.

Europe is currently the largest market for Swatch wrist watches, however because of the economic recession and price fixation its position is threatened.

Plastic and metallic is the main raw material for Swatch wrist watches. Recent price increase in crude petrol and steel is making the fresh materials expensive and creation cost very high which leaves an extremely low margin for profit.

Differential Advantage

While differentiating something it is necessary for the marketing consultancy to keep in mind that it will not eliminate the primary appeals and features which the customers needs from the merchandise. (John J. Burrnett 2007)

A strategy predicated on style tends to become common, as a result of which the business must constantly innovate in-order to maintain its differential benefits. Its must turn to other aspects such as key use function, that could give it a competitive advantage that is not easily replicable. Attractive style and state-of-the-art technology offers Swatch its global brand image. Fossils, Timex, Titan and Figure are its immediate competition, but swatch has prevailed in surviving this fierce competition in this competitive market.

Firstly swatch capitalized on the market using its unique advertising position of:

High-tech watches with a number of parts; reduced from traditional 91 to 51

A fashion item, which means style and innovation

Quartz analog technology at a low price

Swatch uses artist and designers to make some innovate design with use of different shades and styles, which is appealing and new. Swatch Membership gives it an international image as well as the customization of the wristwatches for its loyal club members shows an exclusive nature over its rivals.

As perfectly referred to by Nicholas Hayek "25 years of Vinyl Provocation"


Marketing Strategy

Below is the Recommended ONLINE MARKETING STRATEGY for swatch to keep up its market position and attract new customer.

Mission Statement

Produce top quality, Yet affordable designer watches with Synthetic Materials.

Marketing Objective

To built a brand image as the utmost stylish, creative yet affordable timepiece

To Lead the market as a worldwide brand

To increase its brand understanding as the most innovative watch of the time

Market Segmentation

Market segmentation is the procedure of dividing market into distinct sets of buyers with similar necessity. Goods no longer be produced or sold without considering and understanding customer needs and knowing the heterogeneity of these needs. (Michel Wedel 2000).

Steps involved in market segmentation, targeting market and market positioning follows;

Segmentation in the B2C Market

Sociodemographic, Behivourstic, and Psychographic variables are used to identify the market Portion.

Sociodemographic Variables

This divides the group into time, gender, gender, geography, and family life cycle, income, education, occasions, religion and social class.

Swatch product line is for men and women between the time of 15-19, 20-24 and 25-34 who belongs to and income group varying from 12000 to 45000. Maybe it's students, professional, home makers and group of stylish people who like creative and innovative approach.

Figures from Kidd 2007 claim that the group from 24-35 have the highest spending power in the market. And also women in UK are more and more purchasing watches on their behalf self and for their partners.

Behaviouristic Variables

Ability to experience brand loyalty and innovative group.

Swatch product line is suitable for people who want to try something innovative and also experience their creative design of watches for every day use and a bit of collectable.

Psychographic Variables

This segmentation on lifestyle and personality, group's consumer on the basis of their activities, interest's and thoughts and opinions.

Swatch products has a complete combination of activities line and also it is the official keeper of the Olympic time. It is involved with a whole lot of adventurous sport sponsorship in European countries and Scandinavian countries. . It uses designer from different countries to describe the design of their watches to stand for its fashion and culture.

Targeting Market

Once the company has recognized its marketplace it must be in a position to decide which one to focus on.

With the aforementioned Market Segmentation we've discovered that Swatch can focus on anyone between your years of 15- 34 that like creative, classy and innovative timepiece equipment with an active lifestyle.

Market Positioning

Once the segmentation process gives a clear picture of the marketplace and the target marketing strategy has been chosen, the positioning approach can be developed.

Above market and aim for position Swatch should market its position for the Junior years of 15-34 who has a strong purchasing power. It will create trend setting watches with a dynamic lifestyle approach. It could present as a 'Must Have' equipment.

Marketing Mix Decision

When marketing their product, companies need to make a successful combination of

the right product

sold at the right price

in the right place

Using the most suitable promotion

Selecting the most effective promotional channel

Two main reasons for the Success of Swatch compared to its ASIA opponents are its marketing strategy, quality and design of their watches. No matter how good the product is but it does need to be marketed effectively. With marketing mix of product, price, place and campaign we should be able to suggest the near future strategy to maintain its number 1 position on the market.


Swatch has diversified its original cult clear plastic design by offering different range from

Metal-bodied watches, diving watches (the Scuba series), slender and chiseled bodied watches and also internet watch. To boost its product appearance and differentiate itself on the market Swatch can market individualized watches where customers reach choose their color and design. This can help Swatch to develop its brands variety and offering to the mark audience.


Pricing is the one Part of the Marketing Combination to help create the revenue. Charges sends a very powerful message, it is extremely important that they reveal the client value the business delivers. To find the technique to balance its prices Swatch can identify its product line on the basis of pricing. It could divide into economy, standard and superior variants which will help them to protect against the rivals and to globally gain the marketplace talk about especially in BRIC countries were Swatch Group is exhibiting a tremendous expansion.

Demographic claim that the prospective market of Swatch is the adult between age group of 15-34. Taking this in mind I would recommend it to provide special prices to students and a discount on customization of the watch if signed up with Swatch Club Membership.


Promotion is the process whereby marketers inform, educate, persuade, remind and strengthen through communication. It's important for Swatch to capture target audience to generate sales and income. Swatch has been an active sponsor of Western european athletics and also the official time keeper of Olympic which includes helped it to get the international attention and market a global culture. In addition, it had its palm on the entertainment industry through collaboration with MTV by jogging different competition within the shows. It also has a relationship with World Volley Ball federation which helps to promote the sport internationally and also helped Swatch to market itself as a company with open public interest

Currently the fads of interpersonal networking website are in great stipulate. Figures of people being able to access these sites are on a massive go up. Also, demographic implies that Swatch market are the youth and they are very well linked through these cultural networking sites. Swatch already has a supporter pursuing of 3, 20, 102 on face e book which is increasing daily. This page also provides an usage of Twitter, Swatch Membership and the Swatch website. . It is suggested Swatch should use these social networking websites like face book, Bebo, Twitter My space etc with some Membership Pop-up banner via advertisement words.

This could increase its brand awareness and also alert its market about the uniqueness with their product. Facebook is one of the, most successful public network website. Swatch comes with an exceedingly good chance to get new customers. Additionally, it may run competition and competition like it does on MTV on these sociable networking sites.

It also needs to participate in university or college based social occasions which can help gain popularity with the children who will be the tendency setters of today's modern culture. Due to the economic down turn companies have made huge lessen their marketing costs and also to cash upon this Swatch should increase its promotional marketing activity will help Swatch increase its market share.


Choosing the right route of distribution is vital for a company. It's famously said 'Source Creates Demand'.

If we research the current market section and can also increase competition in the watch industry I recommend Swatch should use multiple route strategy where the product is available through multiple programs of circulation such as Internet, salesforce, call centre, shop, departmental store and immediate email. But to keeping the brand id and exclusivity of its product Swatch can sell its personalised and limited collection only through its Swatch Account club which can help maintain the exclusivity of their watches. In this manner different customer with different buying behavior will seek channels that best provide their needs


Short Term

Prices of vinyl and steel are on quick increases that are the main fresh materials used for creation of the Swatch watches. Climb in the crude oil price boost the cost of plastic. This makes the creation cost high and makes it less profitable for the parent or guardian company. Research and Development should work on finding some new material which may be friendly to the environment and in the line of their Swatch 25 years old Plastic material culture should be satisfactory to the marketplace as Swatch aim has always reflected innovation however you like.

Counterfeit goods are essentially available in every market of the united states. This causes huge loss of Brand reputation and the earnings. To deal with this in a more effective way as shown in the marketing blend Swatch could try coming into this market with dividing their product with a costing strategy. It can divide into Current economic climate, Standard and Superior Versions which will help visitors to get a superior quality and original product at a value price.

Swatch has always absent beyond doors to market its brand with labelling and sponsoring different sports in European countries and Scandinavian countries which is the biggest market for Swatch. Recently another biggest market for Swatch has been the BRIC countries. Swatch has been making its occurrence in these countries by using strong PR occurrence and artist to design the culture oriented time piece. But to increase its brand awareness with the people and capture a higher market share with the domestic rival, Swatch could open up its arm for sponsoring popular sporting event in these countries with which they can reach a mass market.

Long Term

. Swatch rivals like Donna Karen New York or DKNY who from being a popular garment brand functioned its way up and tired it side on bags, watches, shoes or boots perfume, glasses etc. Its product cater women and men and it's vary can be vast. Swatch market is the age group of trendy urban trendsetter from 15 - 34 who always look for a change. Swatch as already launched its Swatch Bijoux Jewellery and using its brand setting it can move its market to present different product on the market like Stylish Eyewear frames, This is achieved by utilizing a strong PR existence and promotional activity which may be an asset and money in-flow because of its company. As everybody knows Business is a matter of experimenting and learning.

Swatch could try jv in its international market with a favorite local brand. As this assists to gain access of local damage channels and increase its sales and brand existence with a reduce risk


Swatch is a classic exemplory case of marketing success. The grade of its product, style and technology of its time piece are the main reason of its success. But as customers always looks for a change with style and development there is always a risk of losing the market from the competition.

There is a huge market for Swatch due to globalisation and its strong brand position.

If Swatch sets the aforementioned discusses marketing strategy and tips into practice, further brand expansion may be accomplished.


hollensen, Svend. marketing managment. prentice hall, 2007.

John J. Burrnett. "Product Differentiation. " In Nonprofit Marketing GUIDELINES, by John J. Burrnett. John Wiley & Sons Inc. , Hoboken, New Jersey, 2007.

Michel Wedel. "Historical Development of the Market Segmentation Principle. " In Market Segmentation: Conceptual and methodological foundations, by Wagner Antonio Kamakura Michel Wedel, 3-5. Norwell, USA: Kluwer Academics Publisher, 2000.

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