Veronika HesováRóbert KováčikVáclav Outrata

1. Introduction

2. History

3. Products and Services

4. Main Competitors

5. Main Consumers

6. Competitive Advantages

7. SWOT Analysis of PRIM Watches

8. PEST – Market Analysis

9. Foreign Market Expansion

Content

• ELTON hodinářská, a.s. is the manufacturer of traditional PRIM brand czech watches

• Established in 1949

• Seat of the company: Nové Město nad Metují

• Since 1949, the watch factory has produced 14 million PRIM wristwatches

• The capacity of annual production varies from 3000 to 5000 wristwatches

Introduction

• Market share: app. 2 %

• The main export markets are United Kingdom and United States

• Nowadays, the PRIM brand is considered as the family silver of the Czech Republic

• Today, ELTON hodinářská, a.s. is one of the few watchmaking factories in the world, which are able to manufacture mechanical watches using their own parts

Introduction

• Gustav Becker’s company established a branch in Broumov to manufacture clocks. In 1889

• In 1930 it was bought out by Junghans company.

• 1948 - it became part of the Chronotechna national enterprise

• A branch of the Chronotechna national enterprise was opened in Nové Město nad Metují in 1949

• Commissioned with introduction of production of Czech wristwatches.

History

• Original products were sold under the Spartak brand, until 1958.

• Since 1958, the products of the national enterprise Chronotechna were presented under the PRIM brand.

• 1969 - Branch of Chronotechna in Nové Město nad Metují became an independent enterprise. It‘s name is Elton hodinářská.

History

• Different way of production than in the past

• The company is focused on short-run production or almost unit production

• The majority of production is constituted by the luxury products:• Standard collections• Exclusive limited series• Custom-built wristwatches

Products & Services

The most used materials:• Stainless steel• Damascus steel• Carat gold • Platinum

The range of goods:• Retro style• Classic• Sports• Style•Wristwatches for extreme load

Products & Services

DIPLOMAT Series

Diplomat 40 C Diplomat 34 C

Diplomat 40 C – the limited edition OG London 2012

PAVOUK Series

Pavouk 40 C Pavouk 40 C

SPARTAK Series

SPARTAK 40

SPARTAK 40

SPARTAK 40

SPARTAK 43

LINEA Series

Adam 40 Linea 36 Linea 36Kupka 40

Linea 40 Svatováclavské 36Svatováclavské 40

ELEGANT Series

Elegant 39 C Elegant 39 C

SPORT Series

IGEN 38 IGEN 38 IGEN 45 ORLÍK II – C

IGEN 45 – the limitededition OG London 2012

ORLÍK II – V RIDER II 52 TIGER 45

SPORT Series

Angels of Viktoria – the limited edition for football players FC Viktoria Plzeň

ARTEAU Series

Bea 41 Q

Bea 41 Q

Coupé R 40 Coupé R 40Cylinder 40

Lorelei II 24 Sphere 40 Sphere 40

SPECIALS Series

Tycho Brahe II Tycho Brahe II

Beata 36 (Q) Caerus

1. Customization

2. Unit production of the wristwatches according to individual specialization

3. The program of lifelong assistance

Services

• Swatch group – Tissot, Omega, Certina, Breguet, Glasshutte

• Richemont heritage - Vacheron Constantin, Jaeger – Le Coultre, IWC, A. Lange & Söhne;

• Rolex – symbol of luxury, Arnold Swarzenegger

• Audemars Piguet – Tom Cruise

• Patek Philippe – Vladimir Putin

• Small manufactures which made only 100 watches per year

Main Competitors

• higher income group (businessmen,

politicians, managers…)

• companies (gifts for business partners, loyal

employees…)

• unique gift for family relatives

• watch collectors

Main consumers

• The main competitive advantage is the offer of wristwatches together with range of services

• Difference from competition:• Price Policy• Promotion• Distribution• Services

• The strategy is valid for more luxurious watches

Competitive advantages

SWOT Analysis of PRIM WatchesStrongpoints:• purely Czech brand• all components come from

Nové Město nad Metují• unique services• long history

Weaknesses:• low brand awareness• lot of foreign competitors• long waiting time for a unique

model• old fashioned design?

Oportunities:• rising popularity of Czech

brands• rising demand for

mechanical watches• cooperation with Czech

celebrities when promoting the brand

Threats:• narrow target segment• possibility of plagiarism

PEST - Market Analysis

P

• stable political environment• support of czech brands

E

• economic recession affects Czech companies

• higher value added taxes

S

• influence of demographics is very low• only 60 permanent employees

T

• mechanical technology• all components from Nové Město nad

Metují

• Apart from the mentioned foreign territories, focus on geographically and historically closer countries that are aware of Czech quality manufacturing – Slovakia, Poland, Ukraine

• Use the high-end immigrant sector of population to spread further their awareness about Czech luxury goods – Russia

• Endorsing through succesful representatives of Czech business, sport, culture etc. abroad – Conferences, major sporting events

• Multi-lingual e-shop, search engine optimalization, connection to foreign equivalents of heureka.cz or zbozi.cz

Foreign market expansion

• Advantages:• Geographical proximity – simpler logistics• Traditional brand• Connected population, cultural similarities

• Build on the existing brand legacy

• Highlight the status of regionally produced luxury goods

• Use their sentimental value

Central/Eastern Europe

• „Natural viral marketing“

• Marketing the highest valued pieces to the most demanding Russian clientele in ČR

• Meeting their expectations communication channel to the East

• Strong emphasis on premium material, custom manufacture and above standard services

• Possible logistic difficulties

• Need of an exclusive sales representative

Russia

International presentation

• Necessity of an e-shop and effective internet placement in the targeted regions

• Presentation of a luxury brand appretiated by the elites as a symbol of technical excelence to be proud of globally

• Main goal – establishing PRIM as a well-renowned and proven manufacturer on its way conquer the european (global) market of scarce technological and designer wonders

Electronic efforts

• Highly competitive market requires thorough risk management

• Major risk limiter – DIVERSIFICATION

• Just as the nature of PRIM production, designated export territories should cover a wide range of demanding and solvent customers in such regions

„So, what exactly is THE strategy?“

Thank you for your attention