There are numerous ways to draw in consumers to acquire products, for example, price, advertising, word of mouth, branding, etc. However, before appealing to customers to consume, the considerations that companies have to attain have found the right customers, aiming at the right market and using correct strategies and solutions to review and promote their products.
The market nowadays is not homogenous but diversified. Competition is also not only within a country but global credited to immediate and easy copy of information. In order to compete with various opponents and match what customers demand, companies should pay more attention to their approaches for marketing. From marketing content material books, we can find lots of strategies and methods to help companies to distinguish their marketplace, for example macro and micro environment research, SWOT examination, marketing mixture and STP strategy, etc. Enterprises will benefit from using these ideas and increase market talk about or revenue.
In the next research, the marketing strategies and features will be specified and identified with regards to the brand OMEGA in the Swatch Group, which is one of the best-known brands in the watch industry.
OMEGA is one of the brands of the Swatch Group which is a well-known manufacturer in the watch market. A couple of 19 watch brands in the group, and each brand has different price categories in order to match with different segments of customers. In each year, the group produces thousands of watches and these watches are sent to the group's worldwide network of distribution organization making their products well-organized and assigned to the market.
OMEGA has a more than 160 year history in watch market. The brand was actually founded by Louis Brandt in 1848 in Switzerland. After Louis Brandt passed away, his business then handed down to his sons, Louis-Paul and Cesar, who shifted the production from a traditional workshop to mechanized development. In 1892, the Brandt brothers made the first watch (Minute-repeater) which can screen hours, quarter time and minutes. And in the entire year 1894, the 19-collection caliber watch was offered, and used the image as the brand to present to the public. Since then, the brand has taken an important role in watchmaking advancement, technology innovations and development making OMEGA a leading brand in the watch market industry. Furthermore, excellent marketing strategies also have made it an extended enduring brand. (OMEGA, 2010)
Different industrial contexts have different market characteristics. To investigate customers' needs, find aim for markets, evaluate actual and potential rivals or even study the talents and weakness of a posture on the market are not as effortless as you might think. Marketers want to do a great deal of research otherwise the wrong decision may lead to failure. Whenever a company chooses to enter their products in to the market, the business environment is the first component a company should examine.
Generally, marketers will give attention to a macro-environment and micro-environments when studying the business enterprise environment. The macro-environment, also called external environment can be explained as "the uncontrollable elements outside of an organization that could affect its performance either positively or adversely. " (Solomon et al. , 2003:34). Infestation namely, Politics, Economic, Community / Cultural and Technological are the key factors which can be used to keep an eye on macro-environment. For instance, as a politics factor, regarding to BBC media record (Anon. , 2010), VAT will increase from 17. 5% to 20% next year, the year 2011, in the UK which might have a wide-spread effect on utilization patterns. People still earn the same money but the expense will be increased due to the increasing of taxes. In this example, OMEGA may face a significant effect in the sales market because a watch is a durable product and consumers may spend less money on items they already have especially luxury ones.
Looking at the economical aspect, the M-shape society in UK changes the consumption level of customers. Based on the book which compiled by Ohmae Kenichi (2001), M-shape population is the theory that the middle class can be assimilated into rich or poor, and the rich can be richer and poor can be poorer. Before, consumers in the middle class might have been willing to save money to purchase an extravagance watch or other items since it is affordable to them. However now they are either in a position to buy luxury items or find it impossible to spend money on high cost products. OMEGA also considers the exchange rate throughout the market sector when advertising their products to UK, because the fluctuation of exchange rate may cause profits or reduction when selling the products outside Switzerland.
In the socio-cultural factor, OMEGA looks deep into the customers' lifestyle and their view of value in the sales area. For example, there is absolutely no question that OMEGA may have better sales volumes in developed countries in comparison to those in growing or undeveloped countries scheduled to different level of use. Quite simply, customers in UK, especially in big locations such as London or Manchester may become more willing to get expensive items, appreciate on luxury brands, pay more attention to fashion and become willing to spend money to enhance themselves according to their better living standards.
To consider the technological environment, OMEGA is facing a change of technology. For instance, before 10 years, mobile phones have become a necessary product for customers who may use their mobile phone as a wrist watch to keep time or check enough time. This is a major influence in the watch market all together and obviously have an impact on OMEGA.
On the other side, in business environment, not only macro-environment should be analyzed but micro-environment also needs to be considered. Generally, marketers will concentrate on their competitors while analyzing the micro-environment. For OMEGA, there are three levels of competition can be considered. Is form competition the other is industry competition and another is brand competition. As stated earlier, along with the new technology, OMEGA is facing the proper execution competition-mobile phones that happen to be substituting the functions of watch and the price is cheaper than an OMEGA watch. Furthermore, OMEGA is also confronting with the industry competition. RADO, Resident, LONGINES, etc are the competition of OMEGA, and these brands are about the same characteristics but with lower prices. Furthermore, there are a few opponents at the same level, luxury and prestige, as OMEGA. For example, Rolex, Chopard, IWC and Cartier are the strong ones and these brands are also striving hard to talk about the marketplace which OMEGA focuses on. The following table gives more info about the opponents of OMEGA in watch market.
A. Lange Sohne
(Modified World Wrist Watch Online, 2010)
STP strategy denotes of Market Segmentation, Market Targeting and Product Positioning strategies. "Marketing segmentation refers to the section of market into distinct groups of buyers with different needs, characteristics or patterns, who might require different products or marketing mixes" (Kotler et al, 2002 cited by Bihani, 2004:14). Sarabia (1996) also claims "Market segmentation consists of detecting, evaluating and selecting homogeneous groups of individuals, whether they are consumers or not, with the goal of designing and directing competitive strategies towards them. " Different age group, income and interpersonal class may have an impact on customers' tastes or their decision to get. OMEGA segmented the brand itself into sporting and pioneering soul, in the blissful luxury and prestige range. And for the customer, the brand focuses firstly on demographic segmentation. The product is not only for both genders but also for those who are in highly successful business level such as professionals or organization owners. Since OMEGA set up the brand image as a sporting and pioneering nature, customers who are enthusiastic about sports and value the technology and features of a wrist watch will fall to their customer market.
Upon determining segmentation, targeting is the next phase to gauge the attractiveness of an potential segment. Corresponding to Solomon et al. (2009), marketers will need action to invest resources in an organization, and with the aim of turning the group into customers. OMEGA used a differentiated targeting strategy meaning they divided their selections into five series such as Constellation, Seamaster, Speedmaster, De Ville and Specialities series. The various series are for customers with different demands. For example, in the Constellation series, hours are decorated with diamonds instead of quantities which is ideal for customers who follow position and style. Seamaster and Speedmaster series are targeted to customers who like outdoor activities. Customers who favor understated luxury may prefer De Ville series. And for many who like to accumulate special design and limited quantity watches, the Specialities series must be the first choice.
With perfect segmentation and focusing on, the position level would be the a key point to launch into the market. Kotler (2003:308) stated that "Setting is the take action of designing the company's offering and image to take up a distinctive put in place the mind of the target market. " Apart from celebrities or wealthy people who want to wear a particular watch to show their position, the functions of a wrist watch are almost the same and there is no big difference between your watch itself. So it is important to show the brand image or unique features making the brand into a special item. OMEGA creates the image that when customers wear their watch, they could feel they are really in an improved social class, with stylish and on-trend flavour. Also the initial feature such as Seamaster series of OMEGA is manufactured as a specialist diving watch, which is well suited for customers who love diving activities. Furthermore, co-axial chronograph is an exclusive technology that OMEGA has which makes the product unique and special. Because placement is linked mainly with the factor of marketing combination (Park, Jaworksi & MacInnis, 1986, cited by Muhlbacher, Dreher & Ritter, 1994, cited by Bihani, 2004:32), it's important to ensure that the marketing mix is well set in place. And this will be described further in the next section.
There are numerous tools open to gain a competitive border in the prospective market, however the most popular in marketing studies are the marketing mixture, the 4Ps, specifically product, place, price and promotion. Product is a tangible or intangible item that a company offers with their customers and it is also an important component when starting a marketing action. It is not good enough to have an excellent marketing strategy; the product itself also needs to be desired and attractive. Furthermore, the brand will need its own features or speciality to allure customers' motivation to get. OMEGA is one of the brands which specialised in design and is well known for the quality of creation. Its orientation as the scientific innovator, remarkable quality, and the participation in sports activities and design also makes OMEGA a clearly recognizable brand in the watch market. The sense of fashion and style can even be attributed to OMEGA which is one of the very most familiar watch brands at the blissful luxury and high-end range of market. Moreover, consideration to customers is also of great importance to the brand. The global warrant of watches makes OMEGA's service unrestricted by region.
Solomon et al. (2003) describe that price is the products' value which retailers wish to earn from the clients in trade for the product. More often than not, price is a significant and essential aspect when a customer is selecting a product. But it doesn't mean that marketers are always using good deal strategy to encourage customers to get. Sometimes, they will give you a higher price to point out the features and design of the merchandise or even demarcate the status of the clients. For the brand OMEGA, it is allocated in the prestige and luxury range in the Swatch Group; however, just a few specific models are as expensive as Breguet, Blancpain, Glashutte Original, Jaquet Droz, Leon Hatot, Tiffany & Co in the same selection of the group (Swatch Group 2010). For others, the purchase price is set as an increased price however, not the highest making customers feel they are having the best quality products but with an increase of value for money.
Promotion, corresponding to Solomon et al. (2003), can be an action to inform customers or clients about goods, services, or ideas, in order to persuade them to buy the products. To market a product or brand, the business must utilize different programs to get hold of with customers. As many watch companies does, OMEGA publicized its watch in various categories of publications but focusing mainly on famous, high-reputation and professional level viewers' ones. In addition, holding seminars to introduce new products or giving general public releases are the most typical methods when promoting products. Along with the most valuable is that OMEGA sometimes turns up their brand names in international athletics games, such as the Olympic Game titles, as an official timekeeper to promote and state the quality of their brands. In addition they invite stars as their ambassadors to establish their brand image. For example, male stars and athletes-George Clooney and Sergio Garcia, etc are the reps of OMEGA Seamaster series. And for the Constellation series, they invite actresses and female sportsmen, Nicole Kidman, Cindy Crawford and Michelle Wei, etc as ambassadors of the products. Furthermore, the Speedmaster series is represented by astronauts due to the fact that watch was the first worn on the moon. Finally, product positioning in movies such as 007 or multimedia is also a promotion method which the brand often used (OMEGA, 2010).
Place is discovered as "The option of the product to the client at the required time and location. " (Solomon et al. , 2003:14). The parents company of OMEGA, the Swatch Group, has a global supply string management system which makes OMEGA with the capacity of sales to the many international subsidiaries, that happen to be over 200 providers, providing them with up to date home elevators sales and inventories and wide open orders. And there are over 10, 000 vendors throughout the world located in shops, airports, some decided on boutiques and growing cities providing customers easy access with their products.
In marketing related works, evaluation of the business enterprise environment and demonstration of marketing strategies are always the initial steps to spotting the possibilities of making profit from the merchandise. Accurate research and adding into practice the marketing strategies will lead to successful performance on the market.
As we have seen, OMEGA will not only face competitors in the watch market, but additionally it is experiencing a fresh technology impact, the mobile phone, which substitutes the capability of a watch and with more functions. Due to these reasons, OMEGA is trying hard to explain their concentrate on customers, analyzing the competition market, using accurate strategies and also accumulating the brand reputation to capture consumers' eye.
By taking part in national sports with high subjection rate or even the exclusive space project, OMEGA demonstrates that the accuracy and reliability and quality with their products are matchless. In addition, by using a series of superstars as ambassador, advertising on magazines, and product position in James Relationship series movies, OMEGA made the promotion lively and the brand image explicit and strengthened. Last but not least, regarding to my analysis of the study of the result, OMEGA does well in the advertising part of the marketing blend and that is the reason why OMEGA can stand erect in the watch market for a long period to come.