SWOT analysis, PEST analysis, 4P marketing mix, company analysis and competitor analysis.

1. Marketing Case
Study

2.  Swatch’s Microenvironment
Environment
Analysis

3. The Company: Swatch
Group
 Chairman and CEO of
Swatch: Nicholas G. Hayek
(Passed away). Revived
Swiss watch industry in the
1980s when it was under
threat from mass-production
of time piece.
 Swatch Group have various
watch product lines, such
as Omega for Luxury market,
Tissot for Medium-end brand,
and Swatch for Low-end
market.
 In countries where the Swatch
Group has no actual distribution
subsidiary, it is represented by
retail dealers. In Hong Kong, is
The Swatch Group (Hong
Kong) Limited.

4. Customers
 Swatch group target at
different range of customer
with different brands.
 Swatch watch target at
basic range customer.
 Example of Prestige and
Luxury Range: Breguet,
Omega, Tiffany & Co.; High
Range: Longines, Rado;
Middle Range: Tissot, CK
watch & jewelry

5. Competitors
 Swatch group’s
competitors are mainly
Rolex Group
Richemont Group,
LVMH Group, Citizen
Group and Seiko
Group.
 For Swatch watch, it’s
main competitor is
Casio

6. Publics

7. Environment
Analysis Swatch’s
Macroenvironment

8. Political Economic
Social Technologi
cal

9. Political
 No foreign exchange control policies
(Law of HKSAR)
 No restrictions on repatriation of
capital and profits
-- Capital Movement is free
 Open market policy
 Government’s control – minimal
 Minimal capitalization requirements
 Individual Visit Scheme

10. Economic
 Membership of the World Trade
Organization, APEC and other
international economic organizations.
 Laissez faire
 Free economic system
 Financial services exports
 Fixed HK$ against US Dollar
(HK$7.8/US$1)
-- sometimes depends ( floating
exchange rate)
 About three-quarters of the world's
100 largest banks have a presence
here

11. Social
 Advertisement can be done by
cantonese
 High Educational level
 Age structure
-- 0-14 years: 11.6% (male
431,728/female 394,898)
-- 15-64 years: 74.8% (male
2,573,929/female 2,757,095)
-- 65 years and over: 13.5% (male
452,278/female 512,580) (2011
est.)
 The shift in labour demand
towards workers with better
knowledge and skills
 Media influence
 Idol effect
 High buying power

12. Technological
 Broadband connectivity
 High online population
 Telecommunications hub in the
region
 Technology collaboration and
exchange programmes between
the Mainland and Hong Kong
 Innovation and Technology
Commission (ITC)
 Technological Infrastructure
 Intellectual Property Protection
 Commercial satellite-earth station
 Information technology (IT)

13. Company Analysis
- Company Background
& Mission
- Target Market
- Targeting Strategy
- Positioning

14. Company Background
& Mission
Company Background
 Swatch was a brand of Swatch
group Ltd.
 5 production lines: Swatch
Originals, Swatch Irony, Swatch
Skin, Swatch Beat, Swatch
Bijoux
 Launched in 1983 and it has
now spread the market almost
to the whole world.

15. Target Market
 Major target customers: teenagers
and young adults (aged around 15-
35)
 price range is relatively low so that
they can affort
 Swatch products are colourful and
plastic made, which are more
attractive to youngers
 Secondary target customers:
collectors
 special editions for collection, prices

16. Positioning
 Competitive position: market
leader
 Swatch are fighting to
increase market share
 Competitive advantage:
Offering relatively low price
and high quality products

17. Company Analysis
Current 4 P: Product, Price, Place and Promotion

18. Product
 Its design mainly mixed with
dazzling and colourful style. It
caters the needs of
youngsters.
 High frequent of launching
new products, e.g.: special
events such as Olympic
games.
 Limited number of design
version to ensures the
scarcity of the products which
satisfy the needs from
different customers.
Collectors may love the rare
products, which represent
their tastes.
Swatch for Olympic games
Special edition: 777 box
worldwide

19. Price
 Price is generally lower;
Teenagers may afford to buy
Swatch. Price range is around
$300-700.
 Some special limited version of
the products trigger the
customer’s buying desire,
some of it may cost 10,000
above.

20. Place
 Swatch products can be
found in department stores,
watch shops and swatch’s
retail store in shopping
malls.
 Watches placed in watch
shops are mixed with other
brands, making it difficult to
highlight its characteristic,
lower its competitiveness.

21. Promotion
 Its products appear in
fashion magazines. It can
attract the attention of
teenagers.
 Addition to fixed new
products, Swatch has its
series collection to
encourage the customers
to collect it.

22. Consumer Analysis
Market Segments

23. Teens and young aged Teens
and young adult aged 15 – 25
(G1)
 Lower income/ middle
income group
 wide variety of unique
designs and colors (e.g.
Chrono Plastic series)
 Innovative design mixed
with new technology( E.g.
Swatch Touch series )

24. Working adult aged 25- 35
(G2)
 Mature designs for
professionals (e.g. full-
blooded thundering collection)
 Unique designs suit for variety
working fields and personality
(e.g. skin collection)

25. Collectors (G3)
 Limited editions during occasions (e.g. Olympics
series in 2008)
 Art collections and special editions collaborated
with designers artists (e.g. Artists collection 2009)

26. Athlete (G4)
 Sponsored and provided sports collection for
athletes
 Special promotion with athletes

27. Consumer Analysis
Buying behavior and characteristics

28. Culture Factors
 Culture: Pursuit of creative
design by renowned artists
 Culture: Accompany with
the trend of new
technology (e.g. touch
monitor)
 Social classes: Lower or
middle class, who cannot
afford high priced brand
name watches

29. Social Factors
 Groups and networks: buying
watches due to aspirational
groups and trend setters like
idols
 Social Roles and Status: To
define character with
watches (e.g. Using Limited
Designer watch)

30. Personal Factors
 Age and life-cycle stages: Watches materials used for
different ages’ tastes
 Occupation: To meet occupation needs or sponsor from
company
 Economic situation: Cheaper choice for lower or average
income workers
 Lifestyle: Customers AIOs towards watches (e.g. appreciation
towards design, functions, and comparison to watches)
(especially G3)
 Personality and self- concept: watches indicate personality
 Brand personality: Aspiration towards company (e.g. collector
of Swatches)

31. Psychological Factors
 Motivation: Actual uses vs.
Promotion of company
 Perception: Learning,
Belief and Attitudes

32. Competitor
Analysis• Identifying Competitor- Industry
Perspective
• Competitor’s Mission
• Strength and Weakness of Competitor-
Casio
• Competitor’s 4P
• Gallery of Competitor’s product

33. Identifying
Competitors- Industry
Perspective
Provide Similar
Product/
Service
Same
Customer
Similar Prices
- Yes
Casio and Swatch
both provide watch.
- Yes
Target to youngsters.
- Yes
Cheaper price
compared to Rolex
watches, more
affordable by
youngsters.
Swatch VS Casio

34. Casio- Major
Competitor of Swatch
Casio’s Missions
 Creating totally
original product
 Bring fun and
convenience to
daily life users

35. Strength and Weakness of
Casio
Strength Weakness
-Sub brands, such as G-shock, baby
G and Pathfinders are targeted for
different groups and marketed
accordingly.
-Good Brand image for technology
advance and sponsor for sports
event
-Value for money
-Innovation: the first to design LCD
watch with full-auto calendar
-Advertising: TV ads,
newspaper/magazines ads are
-Smaller scale than Swatch
-Recent economic downturn
reduced the company sales
-Some series are designed with
advanced function that are too
heavy, which is not user-friendly
(e.g. ProTrek, DataBank )

36. Product
 Developed watch with GPS
service, act as a calculator, serve
as a data storage device, and
even control your TV
Place
 Online sales services-ShopCasio
 Major electronic retail shop
 Department store
 Retailing giants Macy's, Sears,
and Best Buy
Price
 Reasonably priced consumers
for value
 Limited edition run slightly high
 G shocks are targeted for
youngsters to standout from their
peers
Promotion
 G Shocks series are promoted in
fashion magazines, outdoor
magazines
 introduce their new products to
the market in a fun and cool
way(use the rap music to
promote products)
Casio’s 4P

37. Gallery of Competitor-
Casio

38. SWOT Analysis

39. Strength
Product
High- quality, accuracy and durability
Wide range of products with different designs across all
price points with youthful and innovative look
Distinct identity with its plastic body and vibrant colors
High quality services are provided
Company
Strong brand and market leader
Swatch Club Membership Strengthen customer Loyalty
Popular around the world
Good reputation and brand image
Repositioning into in the fashion market
Weakness
Imitations and replicas.
Plastic watchstrap are easily wear and tear
Higher prices compared to other competitors
Fancy design does not suit everyone
Lack of access to distribution channels
Less and Ineffective promotion and
advertisement
Advertisement are mainly on trend magazine
which can attract youngster only
Opportunity
e-commerce
gradually expanding market for expensive
products
Absents of a monopoly in the expensive watch
category
emerging markets and expansion abroad
Further development that diversifying in different
product categories in young brand industry
Threat
Youth prefers digital watches
Primarily all rangers of swatch have dials
Counterfeit products
Intense competition in crowded market
New competitors
Current economic recession
SWOT
Analysis

40. Strength
Product
• High- quality, accuracy and durability
• Wide range of products with different designs across all
price points with youthful and innovative look
• Distinct identity with its plastic body and vibrant colors
• High quality services are provided
Company
• Strong brand and market leader
• Swatch Club Membership Strengthen customer Loyalty
• Popular around the world
• Good reputation and brand image
• Repositioning into in the fashion market

41. Weakness
•Imitations and replicas.
•Plastic watchstrap are easily wear and tear
•Higher prices compared to other competitors
•Fancy design does not suit everyone
•Lack of access to distribution channels
•Less and Ineffective promotion and advertisement
•Advertisement are mainly on trend magazine which can attract
youngster only

42. Opportunity
•e-commerce
•gradually expanding market for expensive products
•Absents of a monopoly in the expensive watch category
•emerging markets and expansion abroad
•Further development that diversifying in different product
categories in young brand industry

43. Threat
•Youth prefers digital watches
•Primarily all rangers of swatch have dials
•Counterfeit products
•Intense competition in crowded market
•New competitors
•Current economic recession

44. Recommendation• Marketing Objective
• Marketing Strategy
• Marketing Mix: 4P
• Marketing Calendar

45. Marketing Objective
 Increase the sales volume
in Hong Kong market by
$500,000 before Jun 2013.
Specific Measurabl
e
Achievabl
e
Realistic Timed
Yes
Increase the
sales volume
Yes
Increased by
$500,000
Unknown Unknown Yes
Before June
2013

46. Marketing Strategy
Targeting
Target will be slightly change. Previously the
major segment the company attract the
segment of “juvenile aged 15-30”, so the
target segment will be more diversified to
other ages, like middle aged or even elderly.

47. Product
• Larger wording, sound
technology watch for elderly
• More wearable design
• Idol- designed product as
gimmick
• DIY Product
Price
• Value for price
• Higher price for Idol-designed
watch
• Lower price for elderly watch
Promotion
• Idol advertise at their designed
watch
• Frequent advertisement other
than magazines
• Special event promotion:
Chinese New year, Valentine’s
day
• Swatch watch exhibition
• Hold Inter-University Swatch
Design Competition
Place
• Provide DIY watch
in Hong Kong
• Online shopping
and booking
4P

48. Market Calendar
Jan Feb Mar Apr May June
Idol Designed
watch
Search idol
for design
TV Ads Launch
Elderly Watch Design Launch
Occasion
Promotion
Chinese New Year and
Valentine’s day
University
Competition
Swatch
Design
Competitio
n
Appreciation
of Competition
Launch
DIY Campaign Launch
Online
Shopping
Available in Website
Exhibition Preparation of
Exhibition
Exhibition