Swatch Case Executive Summary And Recommendation
The concept of Swatch as an affordable fashion accessory and a statement versus a traditional watch that is merely its function will be key in the years ahead. Maintaining our competitive edge while growing sales and developing a long-term strategy needs to be addressed. Reviewing the image statements of Swatch data, the same top 5 appear in both the US and European markets: Sports watch, continuously introducing new models, mainly for young people, highly fashionable watch, and reasonably priced. Capitalizing on our consistent image across markets will be key to future success.
Continuing to build out the sports connection and image by promoting events and tying in a line of watches to particular sports, events, or even teams will emphasis that connection. Looking at Exhibit 18, children are a segment that do not make sense for most of our competitors but would fall in line with our plan. By promoting a children’s line of watches with popular characters, we can gain customer loyalty from a younger age. Protection from some of the less expensive brands will be gained through licensing agreements. More counterfeits are a possibility with this approach.
Keeping the 6 design cycles will align with the fashion industry, allowing Swatch to continue to be seen as a fashion accessory. Working with artists or other designers in the fashion industry will help promotion and allow Swatch to stay in sync with trends. Partner with fashion shows and other events that incorporate Swatch into their accessories. Drop the apparel line. Our position should be aligned with fashion, not trying to drive it. Create exclusive lines that sell in certain regions, such as Europe or the US based on the design taste in those areas. Limited numbers and limited distribution of certain pieces fosters the feeling of uniqueness and encourages people to collect them before they are gone.
Swatch should add its own catalog to its distribution to encourage multiple purchases.
Continuing to build out the sports connection and image by promoting events and tying in a line of watches to particular sports, events, or even teams will emphasis that connection. Looking at Exhibit 18, children are a segment that do not make sense for most of our competitors but would fall in line with our plan. By promoting a children’s line of watches with popular characters, we can gain customer loyalty from a younger age. Protection from some of the less expensive brands will be gained through licensing agreements. More counterfeits are a possibility with this approach.
Keeping the 6 design cycles will align with the fashion industry, allowing Swatch to continue to be seen as a fashion accessory. Working with artists or other designers in the fashion industry will help promotion and allow Swatch to stay in sync with trends. Partner with fashion shows and other events that incorporate Swatch into their accessories. Drop the apparel line. Our position should be aligned with fashion, not trying to drive it. Create exclusive lines that sell in certain regions, such as Europe or the US based on the design taste in those areas. Limited numbers and limited distribution of certain pieces fosters the feeling of uniqueness and encourages people to collect them before they are gone.
Swatch should add its own catalog to its distribution to encourage multiple purchases.