The Swatch is one of the well known brand in the world which is a joint venture of Swiss watch company and American Watch Company.It is seen that Swatch has become one of the best marketing strategies model of B2B and B2C with high prolific concentration.
INTRODUCTION OF SWATCH MARKETING :-
Central to the marketing strategy of the swatch watch is the notion of the watch as a fashion accessory.This is a novel approach in that it is typically used as a selling point for gold and diamond studded watches at the higher end of the market.Swatch on the other hand describes its target market as “fashion-oriented12-to-24 year olds.”One trend that worked in swatch’s favor from the start is that,during the period 1976-1986, more and more people boughtwatches. No longer was the watch primarily a gift item and no longer was it only the rich who owned more than one. In 1976,240 watches per 1,000 inhabitants were sold in America.Ten years later the fingure was 425 watches per 1,000 inhabitants.About 90% of sales were composed of inexpensive electronic watches of various styles and brands.Of course,swatch never would have been able to take advantage of this trend without a sound marketing strategy.According to Imgruth his company’s strategy is divided into three elements:(1)Design,(2) Distribution,and (3)production.
(1) DESIGN OF SWATCH MARKETING :–
(2) DISTRIBUTION OF SWATCH MARKETING :-
Distribution was originally limited to fashion outlets and now includes upscale department stores such as Bloomingdale’s saks Fifth Avenue,Macy’s etc. Such stores never used to handle Swiss watches and still only account for 10% of all watches sold.Imgruth scrupulously avoids distributing through drugstores and mass merchandisers such as Sears and J.C. penney,even though these are the usual paths for watches priced under $100.As one Swatch executive puts it:”you have to control distribution and not flood the market or people lose their hunger for the product.”
(3) PRODUCTION UNIT OF SWATCH :-
The production process described above makes the design strategy possible.The flexibility that Swatch enjoys is unknown elsewhere in the industry.Design changes for other watch makers typically require a substantial capital investment where as Swatch can make changes without adding cost.Such flexibility is absolutely essential because of Swatch’s product strategy.Without it,design runs of three months would be out of the question.