Swatch Marketing Strategy & Marketing Mix (4Ps)
Marketing Strategy of Swatch analyzes the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). These business strategies, based on Swatch marketing mix, help the brand succeed in the market. Let us start the Swatch Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Quick Glance:
Swatch Product Strategy:
The product strategy and mix in Swatch marketing strategy can be explained as follows:
Swatch is one of the leading brands renowned to make luxury watches. Swatch group has different businesses from watch production to services to hotels as well. The brand is serving in the different segment with a different product line of watches and sunglasses with division into men’s, women’s and kids product segment. Few years back, Swatch launched new product in watch category called Sistem51 which was the world's first mechanical watch, which was entirely automated assembled using movement of 51 components. Swatch is into fully automated manufacturing production in which all the production is purely swiss made. The company also follows the tradition of loyal customers club where company give special discounts to loyal customers.
The company is continuously focusing on new product design with new fashion trends in the global market and domestic market like India. The swatch brand also has a product line of eyewear like sunglasses. The exclusive collection of the brand only produces for their niche segment customers. Following are some categories in the marketing mix product portfolio of Swatch brand.
• Novelties
• Design your own
• Core Collection
• Specials
• Bijoux
• Sunglasses
• Watches
Image: pixabay
Swatch Price/Pricing Strategy:
Below is the pricing strategy in Swatch marketing strategy:
Swatch being the exclusive product brand, the company charges a premium for its products. The exclusive product line made the company as brand for executive segment of the society.
Sunglasses and other accessories are also of exclusive collection. The company has a history of launching limited products for their exclusive customer base with such premium pricing marketing mix strategies. The demand of the exclusive watches has been increasing globally since last decade. With main competition with various brands like Fossil and Police, the Swatch brand has focused more on its better quality and high engineering with exclusive prices. Operational cost is also one of the important challenges to maintain its cost pricing strategy for swatch outlets. The pricing strategy of the brand changes with the geography depending on taxations as well.
Read more about Swatch
Swatch Place & Distribution Strategy:
Following is the distribution strategy in the Swatch marketing mix:
Swatch has the presence overall developed countries and nowadays they are focusing on developing nations like China and India. The Swatch group is serving in most of the outlets with services for all exclusive customers. The company has outlets at exclusive places like big shopping malls and exclusive area of the cities where target segment is located. The company is also targeting its exclusive collection to its limited stores. Now the brand is also targeting with fast-growing e–commerce platforms like Alibaba, Amazon and Flipkart in India.
The company has good supply chain network in India and globally as well.
Swatch Promotion & Advertising Strategy:
The promotional and advertising strategy in the Swatch marketing strategy is as follows:
Swatch has implemented and changed a various way to market their products. Advertisements in print media like newspaper, magazines and hoardings. Swatch also organises or sponsors different events to reach to more customers. After sales services is another most important factor of the brands especially in watch type of commodity. More discounts on application-based ordering, distributing discount coupons during the first watch purchase and for the second visit will give loyalty points and benefits of loyalty club of customers will help to generate more customer base. Special events for special edition watches and exclusive treatment of their customers is among the strategies to brand the product. Digital marking is now emerging promotional strategy for the brands. Customer analytics helps swatch to strategized its marketing to reach the targeted customer. Swatch is also publicizing their products digitally using SME and other techniques to reach the mass. Hence this completes the Swatch marketing mix strategy.
About Swatch:
Swatch is a Swiss watchmaker and subsidiary of The Swatch Group whose founder is Nicolas Hayek. The company has headquarters Switzerland hence swatch brand. The company started producing watches to compete with the US and Asian produced watches. The Combination of marketing and manufacturing expertise by Switzerland made it as a major player in wristwatch market globally.
Synthetic materials had been part of production and special edition watchcases had ultra-sonic welding process and assembly technology. With more accuracy the company, the number of components was reduced from 91 or more to 51 without making any changes in the performance.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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