Swatch is a unique success story. Why has the company been so successful? Was it important

that the Swiss watch industry recapture the lower end of the market? Why? Why not?

            The Swatch watch was originally intended to re-capture the entry level market share lost by Swiss

manufacturers during the aggressive growth of Japanese watch companies such as Seiko in the 1960s

and 1970s, and to re-popularize analog watches at the time when digital watches had achieved wide

popularity. The launch of the new Swatch brand in 1983 was marked by bold new styling and design. The

quartz watch was redesigned for manufacturing efficiency and fewer parts. This combination of marketing

and manufacturing expertise restored Switzerland as a major player in the world wristwatch market (

            The two primary reasons for the success of Swatch is the perfect marketing strategy of the

company and the quality and the design of each and every watch they are launching. The company has

different varieties of watches for different age of their target customer, and because of the quality of the

product, Swatch watch is no longer just a simple everyday watch but one of the hot collectible items in the

world today. The company also makes sure that they have a series of new watches with different styles

for every season, every special occasion and every event in the world.

            The design of the watch is also remarkable, because of the talented designers the company hires.

A customer can choose from a variety of designs that fits his/ her moods and even culture. That is the

reason why the Swatch watch is not only popular in the United State but in the whole world. The watch

designers are making sure that every design of every series will meet the expectation of the customers.

            Fine watches were more than great accessories: They are investments that can become

heirlooms. As one watch manufacturer’s advertising slogan states, you never actually own it; “you merely

look after it for the next generation.” That’s why after-sale servicing of the timepieces is critical to its

longevity ( 2003). That is the reason why those first edition and series of Swatch watches are now worthy

and rare. 

            Before, Swatches are available in every store and available in affordable price, but now, it is the

opposite. This is due to more than one factor including the artistic design of the Swatch watches like new

innovations, marketing strategies and strategic distributions system set up by Swatch Inc. Swatch

capitalized on the idea of product line extensions and variations like no other company has. Swatch, Inc.

knew that in order to keep its interest up beyond the 80s craze it had to make some changes (

            It was important that the Swiss watch industry recaptured the lower end of the market. By doing

this, the sales and the industry of the Swiss watch will not die and it will still be visible and available in

different stores, and ordinary people with the average income can still experience and use the quality and

fashion of the Swiss watch, but if we are going to talk about Swatch recapturing the lower end of the

market that will be a far cry from now.

           

2. Do you see any parallels between the decline of the Swiss watch industry and other Western

industries?

            Asia is becoming active in manufacturing and exporting of their products. China who is now

involved in the global manufacturing market and she is beginning to establish and create the image as the

World’s manufacturer. Technology is also part of the expertise of Asia; Japan is now one of the most

advanced countries in terms of machines and different infrastructures. Most of the products of China are

now available in different parts of the globe in very low prices, almost half of the price of products from

other countries.  However the quality is another topic.

            Example of this is the decline of the shoe industry in America in 1992. This is because of the

North American Free Trade Area. Mexico, now, can offer cheaper shoe ware. Because of this, the

production of shoes in America declined about 2 percent from 182 million pairs a year. Slippers declined

by 4 percent to 32.6 million pairs; men’s footwear by 3 percent to 42.2 million pairs; and women’s

footwear by 3 percent to 59.8 million pairs (Byron, 1992). Because of the low-cost shoe wear from

Mexico, the shoe industry in America decline. This is just like the current situation of the Philippines.

Because of cheap shoes from Korea and China, the shoe industry here began to decline. Most of the

time, the consequence of low-cost products is low-quality, because most of the raw material used is of

low-quality. Other examples are the textile and clothing industry, and if not because of the use of

technology and marketing strategy, these two industries will never recover.

 

 

3. Evaluate the cultural dimension of the Swatch story, taking into account such practices as the

willingness of taking into account such practices as the willingness to bring in people from other

industries, to delegate authority to younger executives, and to employ new media such as rock

concerts and music videos.

            Swatch is also connected to events that will convince the people specially the youth to be in sport

as well as to promote the culture of a certain place and the people in that place. A great example of this is

the connection of Swatch to Olympics. Swatch was the official timekeeper of Olympics 1996, 2000 and

20004. Swatch is also launching new designs of swatch watch every Olympics. This will not only promote

the world event, but also promote the culture and the history of the Olympics. This will also show the unity

of the world and how the world gathers to promote sport in the world.

            Swatch is also into entertainment and music, in partnership with MTV. They are giving different

contests like the latest one which is the MTV’s best shows ever. This is a contest for the MTV viewers that

will measure the creativity and sense of humor of the viewer to create the craziest and wackiest ping-

pong obstacle. The winner will receive a brand new kaleidoscopic Swatch Puzzle Motion watch .  This will

not only help the MTV channel gain more viewer but also help the viewers to see the lighter side of life, by

joining in a somewhat useless contest but enjoying it and using their talent on it.

            Another is the Swatch FIVB 2007 World Championship, in partnership with the International

Volleyball Federation. Through this project, Swatch supports the growth of public and media interest in

beach volleyball, appreciated worldwide as one of the most rapidly developing summer sports

            Swatch is also doing alternatives Olympics featuring crazy and unique entertaining sports events

against the clock that will take place in three Asian cities at busy citadels

            With the help of Swatch to other organization in improving their technological capability, Swatch

helps each organization to improve the performance of that organization to do better about the activity or

objective and to meet their goal in serving the world.

4. Swatch created a new market – can they continue to expand the market? What must they do to

defend their position to the market?

            Swatch was the savior of the Swiss swatch industry and the most successful wristwatch of all

time. It had survived from a very difficult economic problem and become the pioneer of the Swiss watch

industry in the world again. From 1983, it’s already 24 years of existence, and the fact that the company is

still here, Swatch watches are still in the collection items of the collectors and still in the wrist of other

users, then Swatch will continue to grow and expand.

            Swatch has diversified its offerings from one kind of watch. It now sells more than a dozen

different types of watches, including the Irony series that features metal-bodied watches; the Scuba series

that features diving watches; and the Skin family, thin and flat bodied watches. The company even offer

an Internet-connected watch that can download stock quotes, news headlines, weather reports and other

data. This is belong to the Paparazzi series. In addition to that, Swatch is now offering Flik-Flak for

children and diamond-decorated Swatches for grown-ups.

            Swatch must continue their performance and work. They must continue to surprise the customer

to maintain the excitement factor that will catch the attention of the customer. The company must continue

to research about their target market and must use new and latest technology that will fit the taste, the

needs and wants, the climate and other geographical factor of the target customer. They must maintain

the quality of the timepieces where they were known before up to now.

            The company must continue on what they have started and continue to maintain the study of

change and the factors that will affect the taste and needs of their target customer.

 

 

5. What do you think of Swatch’s chances for success as a total fashion enterprise? Do you agree

with the management’s extension of the swatch brand name to other products? Why? Why not?

            The plan of the Swatch to become a total fashion enterprise is a 50/50 situation. Because swatch

was known as a Swiss swatch company for a very long time, it will be hard for the customer to adopt the

idea that Swatch is now a total fashion enterprise. There will be questions that will ask if the quality of the

new line of products is as good as the watches, because the people are used to the thinking that Swatch

is for Swiss watches only. Also, the competition of the product that they want to plunge to is fierce,

because there are already lots of names that are well-known in the sports wear clothes and eyewear. It

will be hard to compete with these giant names such as the Adidas.  

            I agree with the management’s extension of the swatch brand because it will only mean that the

company is expanding and they are doing this for the satisfaction of their customer. This will also mean

improvement to the part of the company and it will add asset and money in-flow to the company.

            This management’s extension will also help the company to advertise their timepieces using their

planned extension product such as notebooks, pen, eyewear and other sports wear. It will also add

publicity because product like this will not cost much, this will serve as a vital advertisement.

            Business is a matter of experimenting and learning, the company will never know if this will click if

they will not try it, and most of successful businesses has all started in slow sales and then bloom. The

same way as, it will surely hit the financial status of the company if the extension will flop, but at least

there is always a lesson learned. The company may apply what they have learned in that mistake and

apply it for their future decision-making and future plans.         

6. Swatch is a classic example of marketing success through creativity. What lessons can be

learned from their experience?

            The first lesson that other companies can learn from the example of the Swatch is the quality of

the product. The quality of the product is always the main reason why customers buy what they need and

what they want. That is the basis why most of them are looking and buying their goods and product from

a known and trusted name in industry. Just like Swatch that built a quality impression to customers, up to

now, their customers are expecting for quality timepieces. Another reason is that the company uses a well

planned marketing strategy by grouping well their target market and giving each group different approach.

The company also hired talented artists to design their products in accordance to the wants and needs of

the target market. Also all the designs are up-to-date and will surely catch the attention of the customers,

making it not only a collectible expensive watches but also watches that will match the mood of the

customer and the mood of the world. No wonder that it became a fashion hit during 80s up until now.

Another is the use of modern technology and art in one. Just like the Internet watch that will be connected

to the Internet to get important data like the weather as well as the internet time. This will not only catch

the attention of the previous Swatch users but also those computer and Internet enthusiasts and

technology-thirsty-individual.

            The continuous change and launching of different products is also one of the most important

activities of any company. This is to ensure that the customer is still seeing something new that will urge

them to continue to support the products.

            Advertising is also one of the factors of success of the Swatch watch. According to  of Orion

Pictures, “it is the thing you look for, ache for.”  Advertisement serves as an attention caller of the product.

This will help the company to show and introduce the product to the target market. By the use of colorful

and animated advertisement of Swatch, it became successful.