CASE STUDY

ON
swatch watch

Starting from the birth of swatch. The ups and downs
came to it. And about an changing era. And a
mighty heart to tackle with this changes.



A case study swatch watch
-Sudhir Talekar (M13-49)
Biggest watch manufacturer in the world.
Formed in 1983
Founded by Nicolas Hayek,led by
G.Nicolas
Hayek(son of Nicolas Hayek)
Gross sales 6.14 billion CHF
Swatch Group has around 25000
employees.
HISTORY
Swiss dominated the watch industry because of their centuries
long history of jewelry making expertise.
MADE IN SWITZERLAND lable was a global seal of a quality,
status and prestige.
During 1945, Swiss accounted for 80% of the worlds total watch
production and 99% of US imports.
During 1951, the introduction of TIMEX launched low cost
mechanical watches that used hard alloy metals instead of
expensive jewels.
TIMEX watches were available with the price ranging between
$6.95 and $7.95. And the watches were disposable type.
During 1970s Japanese manufacturers like SEIKO, CITIZENES
expanded over the Asia and tried to cover Europe and North
America also. Which declined the share of swatch from 80% in
1946 to just 42% in 1970.

INTRODUCTION OF NEW QUARTZ TECHNOLOGY
Made use of quartz and integrated circuits
Provided Accuracy, more sophisticated
functionality, more features like day & time, Digital
display, Analog watches.
Cheaper in cost of manufacturing.
A wide Price range, starting from $8 to $20, today
even below $5.

FREE FALL OF SWATCH
Swatch was only concentrating on production of high end mechanical
watches and was not interested in adopting quartz technology, because
swatch was of the view that this technology was unreliable,
unsophisticated and not up to Swiss standards.
Japan watchmakers captured whole global market with quartz watches
at rock bottom prices and Swiss watches found itself unable to
compete.
Year
Growth
Rate
1983 33%
1984 33%
1985 100%
1986 50%
1987 4%
1988 0%
1989 0%
HAYEKS STRATAGES
Take over of SSIH and ASUAG
Concentrated on adopting new technology and to create a new
range of pricing.
Focused on the Italian Customers who were crazy for fashion and
looking for something innovative.
Appointed artists, architects, designers. Proposed more than
3000 designs. Introduced different designs for different segments
of customers.
First watch to introduce see-through watch and scented watches
Introduced a new range of price in three price segments.
Created a swatch collectors club for its fans.
Adopted world class distribution strategy. Introduce an
unconventional retail approach that created many non-traditional
points of purchase.



ANALYSIS


In the Mid-seventies, the Swiss
watch industry was in the midst of its
worst crisis ever.
Why ?

Major problem with swatch was rise of Quartz
technology. Japanese companies like CITIZEN got
floded over whole of the market with this technology.
Marketing strategy were not up to the mark with
customers need and value for the money.
No artistic designs.
High range of price.
This lead to a big free fall of swatch group.

SUCCESS STORY
Unique Adds campaigns.
World class designs, explores 140 designs every
year.
Aggressive & penetrating strategy.
Watches for everyone.
Different R & D and Technology.
Swiss club.
Radical innovations in design, automation and
assembly as well as marketing and
communication.
Runs 24 x 7
Efficient designers were adopted.
Considered consumers approach .




CONCLUSIONS
IN BUSINESS YOU HAVE TO KEEP ALL
OPTIONS OPEN
TECHNOLOGY ADOPTION FOR QUALITY
AND PRICE IS MUST.
BUSINESS STRATEGIES SHOULD BE
REVIEWED EVERY QUARTER
COMPETITIORS HAVE TO BE TAKEN
CARE OF
WIDER CUSTOMER BASE IS IMPORTANT
THE WATCHES NEEDED TO BE
ATTRACTIVE, CHEEKY AND GOOD FUN,
DARING IN DESIGN AND
AGGRESSIVELY PRICED, WITH HIGH
QUALITY AND INNOVATIVE FLAIR. THE
SWATCH WATCHES WERE HIGH-TECH
AND CAME IN A VARIETY OF FASHION
AND ART DESIGN.