Basic marketing analysis for Swatch

1. Principles of Marketing
for
BY
Arnav Rana
Lili Chan
Mina Lee

2. Contents
 Managing Profitable customer relationship
 Company and Marketing Strategy
 Marketing Environment
 Buyer’s Behavior
 Customer Driven Marketing Strategy
 Product, Services and Branding Strategy
 Pricing Products

3. Marketing Process
 Failed to understand market place and
consumer need and wants
 Marketing Myopia
 Led to bankruptcy
 Tried to differentiate and position itself

4. Focused on ….
 Production concept
 Reduction of number of movement
parts from 90→51
 40% reduction in cost in assembles
 Parts were 0.002 mm

5. Strategic planning
Mission
 To come out from the loss
Objective & Goal
 To design low price analog
 To compete with digital watch
Design business portfolio
 Product development
 High class to all

6. Marketing Mix
Product
-0.1mm analog watch
-Different colors and designs
Price
$40
Promotion
-Swatch
-Giant Swatch clock
Place
Swatch

7. Micro environment

8. Macro environment

9. Factors Affecting
Consumer Behavior
 Social Factors
 Personal Factors
 Economic Situations
 Psychological Factors
Variety-Seeking Buying
Behavior

10. Steps to Create Value for
Target Customers
Segmentatio
n
- Demographic
-Psychographic
-Behavioral
Differentiation
-More for less
-High quality
-low price
Targeting
-Teens and 20s’
-Lower Class and above
Positioning
-Reliability
-Craftsmanship
-stylish
Create
value

11. Product Decisions
 Shopping product
 Quality- reliability & craftsmanship
 Features – 1mm thick and water proof
 Style and Design –different colors and
plastic case
Branding Development Strategy
NEW BRAND

12. Value based pricing
 Customer : everyone
↓
 Value : style , different colors, water
proof
↓
 Price : $40
↓
 Cost : $6.65
↓
 Product : watch
Monopolistic Market

13. Pricing Strategy
Market Penetration Pricing