The Birth of Swatch Case Analysis - 1595 Words

Today we will present you the analysis of the case  «The birth of swatch ». First we willl give you the information about the background of the problem, then we will define the problem of the case and finally we will present you our recommendations. So, let’s start with the background. In the 1940s the Swiss dominated the watch industry in large part because of their centuries-long history of jewelry-making expertise. Watchmaking was a source of national pride, and the â€Å"Made in Switzerland† label was a global seal of quality, status, and prestige. Around the world, the general public consensus was that the only â€Å"good† watches were Swiss watches. , the Swiss accounted for 80% of the world’s total watch production and 99% of all U.S.†¦show more content†¦From the start, it was clear that Swatches were unlike any other traditional timekeeping instrument on the market. Although they were made out of plastic, they featured witty, sometim es outlandish designs that used brash, intense colors; no watch brand had ever used such bold designs and colors to such effect before. There were dozens and dozens of models to choose from, models for every occasion, for every whim. Swatch customers were unlike the buyers of any other watch brand. Intensely loyal, they were always on the lookout for intriguing new designs. Of course, one of the elements that made the Swatch so popular among these consumers was its price, just $40 in the United States. This low price tag made it easy for consumers to purchase Swatches on impulse. SMH’s general approach to promotion was to spend roughly 30% of the Swatch’s retail price on advertising. In Europe, Swatch’s ad spend was roughly close to $28 million in 1992. This ranked Swatch among the top 100 advertisers on European television (it was ranked 56); no other watch brand ranked on this list. Swatch’s marketing plan was also unique in the watch industry in its emphasis on below-the-line activities. The company had become notorious for unorthodox promotional stunts—everything from break-dancing sponsorships to celebrity endorsements. The company also used special events and product placements to promote the Swatch brand. For example, - the giant Swatch built in Germany. ItShow MoreRelatedselling to india Essay2794 Words   |  12 Pagesare all working professionals who come to class for discussion and debate, not sermons. Case studies are the perfect teaching tool for this audience; there is plenty of room for debate and analysis. Layer in expansion into high-growth economies, and class attendance soars. The class favorite case study is  Silvio Napoli at Schindler India (A),  available from Harvard Business Online  here. 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