Name Roll no

Shonit Naralkar 2014172

Harjas Bakshi 2014148

Prathamesh Patil 2014159

The types of watches which were popular before swatch can be categorized according to their features:

• Digital display. • Functionality of Day and date of the week. • Timers, Calculators, Analog watches which mimicked the gold and silver plating of

Swiss watches.• Quartz technology.

Popular watches before swatch:

Difference between Rolex and Timex\ Seiko

• Rolex consisted of 100 different components assembled manually with great precision.

• It contained synthetic jewels to withstand the wear and tear.

• It was like a heirloom.

• Enclosed in beautiful castings and sold at upscale stores.

• Required after sales service.

• Highly priced

• On the other hand Timex had – simple design, cheap exterior material and it could not be opened. More like a disposable watch . Inexpensive and sold at discount stores.

• Based on electronics so more functionality. Fully automated manufacturing.

Evolution of watch industry

Till 1950 – Dominated by the Swiss Companies.

2500 Swiss watchmaking firms employing less than 50 people.

Accounted for 80% of the watch production.

All the watches were manually assembled.

Point of Sale : Jewelry store

Price point: Above $350

After sales service required

From 1951 – Emergence of Timex

Low cost alloy metals replaced the jewel as found in the Swiss watches

Enabled automated production.

Point of Sales: Discount Stores.

No after sales service required

From 1970 – Emergence of Quartz technology

Sophisticated functionality

Fully automated , high volume manufacturing

Very Low cost of movements

Price point less than $50

Design – Swatch had witty, outlandish designs and

used brash intense colors.

Higher no of models.

Moderately priced.

Difference between Swatch and earlier watches:

Reasons for success of Swatch:

Distribution

Non traditional point of purchase.

Ex: Veggie Swatch line was sold in fruit and vegetable markets.

Mini boutiques

Mono brand stores in high fashion districts.

Advertising

30% of Swatch’s retail price on advertising

which was double the industry average.

High profile advertising as opposed to

conventional classy newspaper ads.

BTL activities

Promotional stunts – Break dancing

sponsorships, celebrity endorsements

Ex : Giant Swatch outside the tallest

skyscraper in Frankfurt

Decentralized marketing:

• Management teams and organisations for all brands • Different message for each brand

Centralized Production

• Manufacturing and assembly only negotiated through SMH’s technology

Vertical integration in the company

• Build and assembled all the components of the watches

Elements of SMH’s overall business model have been most critical to the company’s success from 1983 to 1993

• This range repertories brands offering watches over 3000 francs

• Historical and prestigious brands with rich heritage in the watchmaking industry.

• Includes Breguet, Harry Winston, Blancpain, Glashütte Original, Jaquet Droz, Léon Hatot and Omega.

Luxury and Prestige range

• Prices from 900 to 3000 francs• Famous for their design, quality and technological innovation• Includes Longines, Rado and Union Glashütte

High range

Sufficient differentiation has been achieved with respect to each brand on the basis of Unique Brand, Message, Design and Categorization.

Swatch Group has 18 brands categorized into four ranges:

• Prices range from 250 to 900 francs• They are oriented more towards fashion and sport.• Includes Tissot, Calvin

Klein, Balmain, Certina, Mido and Hamilton Middle range

• The brands are very affordable with prices lower than 100€.

• There are just two brands in this range: Swatch and Flik Flak.

• Swatch offers original and trendy plastic watches for young people from 12 years old

• Flik Flak is positioned only on children watches market

Basic range

Apple iPhone

Before iPhone• Feature phones• Phones with buttons• Small screen size

After iPhone• Smartphones• App ecosystem

• Business• Utilities• Games and Entertainment (iTunes)

• Touch Screen• Superior User Experience• Large Screen Size