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Situation Analysis

1.1Introduction

Swatchisawristwatchmanufacturer,originatedfromSwitzerland.Swatchiswellknownontheuniquenessand
the varieties of their designs, as well as becoming a brand which follows current trends and styles. Since the brand was

introducedin1983,byplacingitselfundertheparentcompanySwatchGroup,Swatchhasbeenoneofthelargestandwell
known watch manufacturers in the world. Swatch is known for their simple and stylish designs, which attract a lot of
consumerespeciallyyoungpeoplewhoarepassionateandconcernabouttheirappearanceandstyle.

Swatchproductsareclassifiedindifferentgroups,whichareSwatchOriginals,SwatchIrony,SwatchSkin,Swatch
Beat,andSwatchBijoux.AllthesegroupsarethemainrangesoftheSwatchproducts,eachofthegrouphavetheirsub
familieswhichincludedifferentdesignsanddifferentchoiceofcolors.

TheSwatchOriginalsarethefirstandthemaindesignofSwatch.Thewatchesaremadewithplasticmaterials
anditcomeswithalotofdifferentcolors,sizes,anddesigns.TheSwatchOriginalsarethemostfamiliargroupofSwatch
anditrepresentsthemainimageofthebrand.TheSwatchIronyisthewatchesthataremetalcased,thewatchesdesigns

areprofessionalandcanbeusedinformaloccasions.TheSwatchSkinisthethinnerversionoftheSwatchOriginals,the
Skinfamilycurrentlyholdingaworldrecordofthinnestwatchwhichmeasuredat3.9millimeters.TheSwatchBeatisa
decimal time concepts, the watch has digital display and the time is set to international time zone. The Swatch Bijoux

howeverisnotawatchproductline,itisthejewelryproductsmadebySwatchandtheirpartner,Swarovski.
InthisSituationAnalysis,thefocuswillbeontheSwatchOriginalsproductline.ThisisrelevantastheSwatch

OriginalsgivesdirectbrandimageofSwatchanditisthemostfamiliarSwatchproductlineamongtheaudience.

1.2ProblemStatement
Swatchisalreadyanestablishedbrandinthemarket.Theyhavebeenintheindustriesforover20yearsandhave
beenknownfromallaroundtheworld.HoweverinMalaysia,peoplemayhavedifferentandnegativeperspectivetoward

thebrand.

Swatchisknownfortheirsimplicityandstylishness,andtheirwatchesareknownforusingplasticelementasthe
main material. For that, people tend to believe that the price of Swatch watches are unreasonable and expensive, most

people would compare the high price of Swatch with those cheap watches in night market that look almost the same,

regardlessofthehighqualityofSwatchwatches.TheotherproblemisthatSwatchislessknownforthequalityoftheir
products,thisisbecausetheyemphasizemainlyonthedesignoftheirwatches.So,peoplewouldquestionabouttheprice

oftheirproduct.
 1.3ObjectivesandAims
Objectives

Emphasizeonthequalityoftheproductsthroughadvertisement

Bringthebrandclosertothepeoplebyorganizingexhibitionsandcontests

Changethewayofapproachingpeopleusingthebrandimage

Aims

TohavepeoplerealizethequalitywiseofSwatchproducts

Tobalancetheproductimagebetweenthedesignandqualitywise

Tochangepeople'sperspectivetowardthepriceoftheproducts

2.1ProductName
TheSwatchOriginalsfamilies

2.2ProductClassification
SwatchOriginalsisthemaindesignofSwatchwatcheswhichusesplasticasthemainmaterial.

2.3ProductCharacteristics

Packaging:CoreCollection(Rebel)
Pricing:RM280
Unit:1watch,SwatchClubRegistrationform,warrantycard,manual

Packaging:BicolouredCollection
Pricing:RM165
Unit:1watch,SwatchClubRegistrationform,warrantycard,manual

 Packaging:NewGentLacqueredCollection
Pricing:RM280
Unit:1watch,SwatchClubRegistrationform,warranty
card,manual

2.4ProductRange
Product:CoreCollection(Rebel)
Colors:black,brown,warm,blue,white,

Product:BicolouredCollection
Colors:pinkngrey,greennviolet,orangenpetrol,cobaltnpink,yellownbrown

Product:NewGentLacqueredCollection
Colors:red,orangish,yellow,green,blue,black,pink,white,indigo,purple

2.5Distribution
SwatchproductsaredistributeddirectlyinMalaysia.Althoughtheproductsarenotmanufacturedlocally,butthe
products are distributed directly through the parent company called The Swatch Group. There are currently 10 official

SwatchoutletsinMalaysia,with5ofthemalonelocatedinSelangor,andeachinPulauPinang,Melaka,Sabah,Johor,and

Perak.TheSwatchGroupSubsidiariesOfficeislocatedinWismaGoldhill,KualaLumpur.

Theproductsaremostlyavailableattheofficialoutlets.However,Swatchstillusescertainretailersandwholesalers

todistributetheirproduct,butthenumberofretailersandwholesalersarerestrictedandonlyuptosomeextentduetothe

requirement of specialized services for the products. This has classified the products to be distributed in a selective
distribution.

2.6ProductLifeCycle

2.7TheBrand
Swatch was introduced in 1983 by a small team of watch

engineersfromSwitzerland.Thename'Swatch'derivedfromtheterm
'second watch' which indirectly means the new concept and style of watch. Swatch is under the parent company called

SwatchGroup,whichisoneofthelargestwatchcompaniesintheworld,withbrandssuchasTissot,Omega,andCalvin

KleinplacedundertheSwatchGroup.ThefirstcollectionofSwatchwasproducedinMarch1983,thebrandinstantlygain

popularityamongconsumersastheirwatchesare80%morecosteffectiveanduselessassemblypartsfortheirproductions.

Since then Swatch has become famous especially for the young people, this is mainly because Swatch's main idea is to

createabrandthatemphasizesonstyle,simplicityandtrendy.
 Swatchisfamousfortheirtrendyanduptodatedesigns,themanufactureralwayskeepsupwiththelatestfashion

styleandtriestobeascreativeaspossibletostandoutfromtheircompetitors.Swatchcanbeclassifiedasatrendsetter

ratherthanjustanordinarywatchmanufacturer.

2.8BrandImageandImplication
Thebrandiscurrentlyonthegrowthstateintheproductlifecyclegraphasitstillgainingcustomerloyaltyin

Malaysia,thisisbecauseSwatchisafairlynewproductintheMalaysianmarket,withpenetrationfocusedonthedesign

andtrend.Swatchiscurrentlynotinthetoppartofthemarketshare,withthemarketsharedominatedbythelikesofRolex,

Omega, and Tag Heuer. So, Swatch is still in the phase of gaining their local strategic target audience in order to fully

specifytheirmissionandvision.

2.9StrengthandWeakness
Strengths

Comesinavarietyofcolors

Attractivedesigns

Lightweightmaterials

Durableandreliablequality

Accuratetimeconsistency

Glowinthedarknumbers

Waterresistant

Easytocleanmaterials

Weaknesses

Plasticmaterialsmayscratcheasily

Thebackofthewatchtrapdirteasily

Exposedbatterydesignmaycauseinternalproblems

Thepinsthatconnectthewatchtothestrapgetlooseeasily

Therubberstrapmaybeuncomfortableforsomepeople

2.10AdvantagesandDisadvantages
Advantages

Customerswillbeabletochoosecolortomatchtheirclothingappearance

Thewatchisabletobeoneofthefashionstyleinuser'sappearance

Easyandcomfortabletowearduetolightweightmaterials

Theuserscanwearthewatchinanydailyactivities

Userswillnothavetoworryabouttimeinconsistencyoftheirwatch

Thewatchcanbeseeninthedarkeasilybecauseoftheglowinthedarkmaterial

Userswillnothavetoworryaboutthewatchbeingexposedtowater
Userswillnothavetoworryaboutthewatchgettingdirty

Disadvantages

Userswillhavetobecarefulnottohavethewatchscratchingwithotherthings

Userswillhavetocleanthetrappeddirtregularly

Userswillhavetoavoiddirtgettingthroughtheexposedbattery

Usershavetobecarefulnottolosetheconnectingpinsbetweenthewatchandthestrap

Usersmayeventuallystopwearingthewatchbecausetheyarenotcomfortablewiththerubberstrap

2.11UniqueSellingProposition(USP)
Swatchisabrandthatfollowspeople'scurrenttrendsandfashions.

2.12PromotionalHistoryandAdvertisingSchedule
1113thNovember2011SwatchTouchContest

14thDecember2011TheArtofGiftingwithSwatch

30thDecember2011SwatcherWishContest

825thJune2012Daddy'sFavouriteColourCampaign

2.13PositioningStatement
Swatchisanestablishedwatchbrandthatemphasizeondesignwiseanditistargetedtoyoungpeople.

3.1CompanyOverview
Swatchisunderitsparentcompany,TheSwatchGroup.SwatchGroupwasformed1983throughthemergingof

twoSwisswatchmanufacturers,ASUAGandSSIH.TheCompanyiscurrentlyledbyG.NicolasHayek,Jr.,sonofthelate

cofounderandchairmanNicolasHayek.TherearealotofbrandsundertheSwatchGroup,forexampleOmega,Calvin

Klein,andTissot.Sinceitscreation,TheSwatchGrouphasbeenoneofthebiggestwatchmanufacturersandhasspread

theirlegacyfromaroundtheworld.

Currently,thereare10officialstoresinMalaysiaandoneSwatchGroupHeadOffice,locatedinWismaGoldhill,

KualaLumpur.

3.2BusinessDescription
TheSwatchGroupaimstoputitselfacrossonaleadingwatchmanufacturingcompany,SwatchGrouphasinvolved

in a lot of technologies developments during the years, and currently still continuing their legacy as an established

company.ExamplesoftheirtechnologiesaretheHamiltonElectricwatchandBulovaAccutrontuningforkwatch.

Thelaunchedofthebrand"Swatch"markedSwatchGroup'srevolutionarymoveintoaneweraofwatchdesign.
IntroducedbyengineerErnstThomkeandhisyoungteamofdesigners,Swatchhasmadeaboldmovetowardnewstyling

anddesign.Thewatchwasredesignedtomaketheproductioneasier,forexampleSwatchwatchesuselesspartscompared

to previous watches during the era. Swatch offers unique and fashionable appearance, which mainly attracted young

generationsintoexperiencingthenewworkofart.
3.3CompanyHistory
SwatchisawatchmanufacturingcompanybasedfromSwitzerland,foundedbyanengineerErnstThomkewithhis

youngdesignersin1983.Swatchismanagedunderitsparentcompany,TheSwatchGroup,whichwasalsoestablishedin
thesameyear,1983,bythemergingoftwowatchmanufacturers,ASUAGandSSIH.TheCompanyiscurrentlyledbyG.

NicolasHayek,Jr.,sonofthelatecofounderandchairmanNicolasHayek.

3.4KeyPeople
CEO,SwatchGroupNickHayek
ChairoftheBoardofDirectorsDr.h.c.NaylaHayek
ViceChairmanoftheBoardofDirectorsErnstTanner
CompanySecretaryRolandBloch

3.5LocationandSubsidiaries
TheSwatchGroup(Malaysia)SdnBhd
Level22WismaGoldhill
67,JalanRajaChulan
MY50200KualaLumpur

StoreLocations:
KLCC
C23,ConcourseFloor,
SuriaKLCC,KualaLumpurCityCentre,
50088KualaLumpur.

PavilionKL
4.35,Level4,
PavilionKL,168,
JalanBukitBintang,
55100KualaLumpur

JalanBukitBintang,
G037A,GroundFloorMidValleyMegamall,
MidValleyCity,58000KualaLumpur.

1Utama
LG341,LowerGroundFloor,
1UtamaShoppingCentre,
No.1,LebuhBandarUtama,
47800PetalingJaya.

AlamandaPutrajaya
LG53B,LowerGroundFloor,
AlamandaPutrajayaShoppingCentre,
JalanAlamanda,Precint1,
62000Putrajaya,WilayahPersekutuan.

QueensbayMall
GF33A,QueensbayMall,
100,PersiaranBayanIndah,
11900BayanLepas,
PulauPinang.
 CitySquare
M105,Level1,
JohorBahruCitySquare,
106108,JalanWongAhFook,
80000JohorBahru.

SuriaSabah
G47,GroundFloor,
SuriaSabahShoppingMall,
JalanTunFuadStephens,
KotaKinabalu88000.

AEONIpoh
LotG16A,
AEONIpohStation18ShoppingCentre,
No.2,SusuranStesen18,
tesen18,31650IpohPerak.

3.6Brands,MajorProductsandServices
TheSwatchGroupisawatchmanufacturerandhasbeenintheindustryforalongtime,SwatchGrouphascreatedand

establishedalotofsuccessfulbrandsinthemarket,thebrandsundertheSwatchGroupare:
Breguet
Blancpain
GlashutteOriginal
JaquetDroz
LeonHatot
Omega
Longines
Rado
UnionGlashutte
Tissot
CalvinKlein
Certina
Mido
Hamilton
Swatch
FlikFlak
Endura
Tourbillon

3.7CorporateVision
Tobecomethebiggestwatchmanufacturerintheworld
Tobecomeaniconinfashionappearance
Tostrivetoleadtheglobalintimatesmarkettoachieveprofitablegrowth

3.8CorporateMission
Tohavestrongbrandimage&identity
Tobecomethefashiontrendamongconsumers
Togainlocalcustomerloyalty

3.9Company'sCurrentPromotionalStrategy
SwatchSkiersCup,19September2012inChile
GermanyRedBullXFighter,11thAugust2012
AustraliaRedBullXFighter,6thOctober2012
FIVBBeachVolleyballTour,1319August2012inPoland
ThereiscurrentlynopromotionalstrategyinMalaysiaasofAugust2012.
 3.10ProductSalesHistory
AccordingtoSwatchGroup2011financialreview,overallsaleof2011hasincreasedinvaluecomparedto2010.

Operating profit increased by 12.4% in 2011 compared to previous years. This shows that Swatch is still a growing

companyandhasyettoreachitspeakstatus.ThegrowthofconsumersinselectingSwatchproductswillproportionally

increasethesalesofSwatchinthefuture.

3.11CurrentMarketingObjective
Shorttermmarketingobjectives
Togainlocalcustomerloyalty
Toberecognizedasuniqueandtrendybrand

Longtermmarketingobjectives
Tobecometrendsetterinfashionappearanceamongthepeople
Tobecomethebiggestwatchmanufacturerintheindustry

3.12MediaExpenditure
Swatchhasbeenreliantonalotofmediatopromotetheirproducts.Internationally,theyhaveusedTVcommercial,

billboards, print ads, and social media. Here in Malaysia, the company has been reliant mostly on social media, social

mediaistheeasiestandthemoreeffectivewaytogettothecustomernowadays.Swatchoftenorganizedandpromotestheir

activitiesonfacebookandtwitter,forexampletheDaddy'sFavouriteColourCampaign,theaudienceareaskedtosimply

upload their pictures into facebook and Swatch will choose the best as the winner, the prize were given by post to the

winner.ThisishowwellandefficientSwatch'sstrategyisinusingsocialmedia.

Swatchalsohasitsownyoutubechannelfortheviewers,theyoftenuploadthereviewoftheiractivitiesaswellas

promotionalvideoonthechannel.Locally,Swatchhasbeenreliantsomuchontheuseofsocialmedia.

4.1CurrentConsumer'sCharacteristics
4.1.1Demographics

Age:1050yearsold

Gender:MaleandFemale

Education:Schooltohighereducation

Occupation:Studentstoyoungworkingadults

IncomeRange:RM500RM20000

Race&Ethnicity:Allraces

GeographicLocation:UrbanandSuburban

4.1.2Psychographics

Perception:Varietiesofdesigntochoosefrombutexpensiveprice
Learning:Friends&Families,Newspaper&Magazines,Internet,
Advertisements.
 Motivation&Needs:Theneedofwatchfortimeaccess,attractedbytheappearance
ofthewatch,buyingtheproductasgift,buyingwatchas
collectionandfashionaccessories

Attitude&Personality:Consumerswhohavegoodtasteindesignandhaveinterest
towardfashionandtrends.

Lifestyle:Trendyandfashionable

4.2StakeholdersCharacteristics
4.2.1Primary
ManagingDirector
Directingandguidingtheemployeesinorderforthecompanytorunsmoothly.
Employees
Contributetothecompanyinexchangeforwages.
Consumers
Spendingmoneyfortheproductsdistributedbythecompanywhichcontributestothecompany'srevenue

Investor
Investingmoneyduringthestartupofthecompanywithinterestofsharingprofit.

4.2.2Secondary
Bank
Provideloanandfundingbackupmoneyincaseoffinancialcrisis.
Courier
Helpsdistributetheproductstothenecessarylocationsinexchangeforthewages.
Media
Helpsadvertisethebrandandproductsandcreateawarenessamongtheconsumers.

5.1TheIndustry
5.1.1Definitionoftheindustry

Clothing&Apparelindustryconstitutesofunitsinvolvedindesigning,manufacturing,marketing,anddistribution

of clothing, footwear, makeup, and accessories. These are the everyday things that involve both needs and desire of the

consumers. Clothing and footwear are the most significant in the fashion & apparel industry, these are the factors that

involvepeople'sappearanceaswellaspersonality.Accessoriescategoryintheotherhandincludesseveralthingssuchas

jewelry,caps,glasses,andwatches.

5.1.2ShapeoftheIndustry

Thegrowingneedsoftheconsumersaredrivingthelatestinnovationsandcreationsintheconsumerclothing&

apparel industry. Looking at today's market, there are rapid growth of the fashion needs and trend development from

consumers,whichresultedmanufacturerstocompeteagainsteachotherinordertofulfillconsumer'sneeds,thesehighlevel

ofcompetitiongivesgreatadvantagetotheconsumersastheynowhavemorechoiceofproducts.

Animportantpartinclothing&apparelindustryisthefashionjournalism.Fashionjournalismplaysabigpartinthe

development of the industry as they are providing critique, guidelines and commentary in media such as magazines,
 television,socialnetworks,andinfashionwebsites.Throughthesemediaoutlets,readersandviewersallovertheworld

can learn about fashion, making it very accessible. One of the examples is Vogue magazine, who has been the longest

lastingandmostsuccessfulofthehundredsoffashionmagazines.So,Mediadoesplayaverybigpartintheclothing&

apparelindustry.

Theproblemfacedwiththeindustryisthelackintechnicalexperts,andtiedtoavailabilityoffunds.Thesefactors

havedeterredthesmallandmediumsizelocalplayersfromengagingindesignanddevelopmentactivitiesintheindustry.

Unlike the major fashion centers such as Hong Kong, Shanghai and Singapore, Malaysia has limited number of design

housesanddesigners.

5.1.3DevelopmentoftheIndustry

Clothing&Apparelarebasicconsumptionitemsfortheconsumers,inbothdevelopedanddevelopingcountries.

Theindustry,especiallyclothing,islaborintensiveandrequiresrelativelymodestcapitaltostartupandoperate.Therefore,

developing economies such as China, India, Malaysia, Cambodia, and others, that have pool of low wage rates labors,

appealtothecompaniesseekingoffshoreproductionwithcostadvantagethanthedevelopedcountries.

ThegrowthofMalaysia'sclothing&apparelindustryacceleratedintheearly1970s,whenthecountrywasonthe
courseofexportorientedindustrialization.Malaysianexportsofclothing&apparelhaveincreasedsignificantlyoverthe

yearsdrivenbyafewfactorsincreasedmarketaccessafterthephasingoutoftheexportquotasystem.

Althoughtheindustryispresentlyincreasingbutitstillconsideredyoungcomparedtohighfashioncountrieslike

ParisandUnitedKingdom.ThisisbecauseofthecultureandthinkingwayofMalaysian,clothing&apparelarelinkedto

luxury,whichisunnecessary.Therefore,warehousesakesandannualmegasaleshelpstosolvethisproblem.

5.2TheMarketplace
5.2.1CurrentConditionoftheMarketplace

ThemarketofWatchesiscurrentlyinanintensivecompetitionwherebyeachbrandstrivestocomeupwithbetter

productsinordertobeingdifferentandbetterthantheircompetitors,especiallywhentherearealotofcompetingbrandsin

themarket.

Currently,watchesmarkethasbeendominatedbythreegiants,whichareOmega,Rolex,andTagHeuer.Withthe

rapidgrowthoffashion&apparelindustry,therearecurrentlymanybrandsthatarecompetingtobeontopofthemarket,

suchasTissot,Longines,andRado.

In order to survive in this fierce competition, the watches brand keep coming out with latest innovative

improvementintermofdesignandthefunctionality.StrongUnitSellingPropositionisimportantforthecompanytostand

outagainstothercompetitors.

5.2.2ChangesinMarketplace

Positive
Moremarketcompetitionresultedincompaniestoproducebetterproductsfortheconsumers.

Theindustrywillgrowrapidlyastheconsumerdemandincreases

Negative
Toomuchcompetitionwillleavebehindsomecompanies,thusmayleadtounbalancedcompetitioninthemarket.

Morecompetitioncouldleadinprofitlossandmarketsharereductioniffailedtomeetthepar
6.1DirectCompetitors
CasioGshock
Casioisanestablishedelectronicmanufacturerandhasbeenintheindustryforaverylongtime.Casiowas
introducedin1946inJapanbyanengineerspecializinginfabricationtechnology.Sincethen,Casiohasbeenasuccessful
companyandagiantnameintheindustry.TheGshockisawatchlineupproducedbyCasio,thewatchesareknownfor
theextremedesignandthedurability.AlthoughGshockismadeforadventurousandextremeuse,ithassetafashiontrend
amongtheconsumers,mostpeopleespeciallyyoungstersbuythewatchbecauseofthestyleandvarietyofdesigns,which
iswhyGshockisamaincompetitorforSwatch.

Nixon
NixonisanAmericanaccessoriescompanyfoundedbyAndyLaats&ChadDiNenna.Introducedin1997,Nixon

beganwithasmalllineofcustombuiltwatcheswithfocuseddistributioninspecialtysurf,skate,snow,andfashion.Since
then,Nixonhasgrownrapidlyandhasmarketedintoover80countries.Nixonhaslargerangeofproducts,fromsimpleand
casualdesignstowatchesforextremeandadventurousconditions.SimilartoSwatch,Nixonhassimpleandtrendywatches
withvariousdesignsandcolorstochoosefrom.

Timex
Timexisanestablishedandwellknownwatchmanufacturerinthemarket.Timexisthecurrentdaysuccessorofthe
Waterbury Clock Company, founded in 1854. The initial purpose of Timex was to produce watches that simply work,
especiallywhentheyproducedwatchesforthemilitaryduringtheworldwar.Astimepasses,Timexhasbeenoneofthe
largestandmostfamouswatchmanufacturerintheworld,theirwatchesemphasizeondesignaswellasquality.Timexnow
produceswiderangeofwatches,whichhassetthemtobecomeatrend,especiallyamongtheyoungadults.

6.2IndirectCompetitors
Seiko
Seiko is a watch manufacturer founded in 1881, originated from Japan. Seiko is famous for the luxurious and
classiness of their products, which is why their watches can be considered as high end products. Unlike Swatch, Seiko's
maintargetaudiencesareworkingprofessionalswhocareaboutluxuryandformality,whichmadeSeikoasoneofSwatch
indirectcompetitors.

Adidas
Adidasisasportsclothingmanufacturer,basedinGerman.Sinceitsfoundationin1948,Adidashasbeenoneofthe
biggestsportsclothingmanufacturerintheworld,oftenbeingcomparedwithitsfiercecompetitor,Nike.Apartfromsports
clothing,Adidashasalsoproducewatchesasoneoftheirminorproducts,theirwatchesareknownforsportyandextreme
design,targetedtoyoungadultsespeciallyathletes.AdidascanbeconsideredasSwatch'sindirectcompetitorastheirminor
productscouldsomehowcompetewithSwatchproducts.

Pandora

PandoraisaJewelrymanufacturerfromDenmark,startedin1982.Theiraccessoriesincludebracelets,earrings,

rings,andwatches.Famousforthesilvermaterialsused,theyalsoproducedaccessoriesmadeofgoldandgems.AsSwatch
productsareoftenseenasfashionaccessories,Pandoracanbeconsideredasitsindirectcompetitorastheyareproducing

thesamekindofneeds,butwithdifferentapproach.

 7.1Strengths 7.2Weaknesses

Strongcompanybase LimitedproductsavailabilityoutsideSelangor
Uniquebrandimage Plasticbasedproductscanbedamagedeasily
Goodexperienceinthemarket (scratch,snap,etc)
Attractiveproductdesign Brandlackemphasisonqualitywise
Goodqualityofproducts Pressureonbeingoneofthebiggest
Officialstoresavailability manufacturer
Strongcustomerloyalty Lackofmainstreamactivitiesinvolvementin
Varietyofproductdesign Malaysia
Availabilityonoutsideretailers NomanufacturingprocessinMalaysia,incaseof
warrantyvoidorproductproblems.
BasedinSwitzerland,wellknownforwatch
manufacturing

7.3Opportunities 7.4Threats

Highinterestofpeopletowardfashionbased Publicperceptiontowardqualityofplasticbased
products products
Peopleconsiderwatchesaspartoffashion Youngstersmaynotbeabletoaffordthe
accessories products
Peoplebehaviorofswitchingbrands Peoplemayreasonabilityoftheprice
Watchesandaccessoriesareoftenusedasgifts Uncertaintaxchargeforimportedproducts
Modernpeoplebehaviorofkeepingthemselves Highcompetitioninfashionbasedproducts
uptodatewithtrends Peoplerefusetowearwatchbecauseofthe
availabilitytoaccesstimefromotherdevices
(phones,tablets)

8.1ProposedPrimaryTargetAudience
Demographics

Age:1824yearsold

Gender:MaleandFemale

Education:Schoolandhighereducation

Occupation:Students

AllowanceRange:RM500RM1500

Race&Ethnicity:Allraces

GeographicLocation:UrbanandSuburban

Psychographics

Perception:Stylishandtrendydesignsofproducts

Learning:Friends&Families,Newspaper&Magazines,Internet
Motivation&Needs:Consumersareattractedbytheappearanceofthewatch,
whichistheattractivedesignsandtheabilitytochoose
colorsfromdifferentvarieties.

Attitude&Personality:Consumerswhohavegoodtasteindesignandhaveinterest
 towardfashionandtrends.

Lifestyle:Trendyandfashionable

8.2ProposedSecondaryTargetAudience
Demographics

Age:2530yearsold

Gender:MaleandFemale

Education:Schoolandhighereducation

Occupation:Workingprofessionals

IncomeRange:RM1500RM4000

Race&Ethnicity:Allraces

GeographicLocation:Urban

Psychographics

Perception:Stylishandtrendydesignsofproducts

Learning:Friends&Families,Newspaper&Magazines,Internet
Motivation&Needs:Theneedofwatchforcasualoccasions,buyingwatchasgift
toothers,buyingwatchascollection

Attitude&Personality:Havegoodtasteindesignandfashion,careaboutself
appearance.

Lifestyle:Outgoing,active,andtrendy

9.1MarketplaceResearch
IhavevisitedfewSwatchstoresinKualaLumpurtoobservetheproductsaswellastostudyaboutthetargetaudience.

Thereare10officialSwatchstoresinMalaysia,ihavemanagedtovisittwoofthemwhichareinOneUtamaDamansara

andAlamandaPutrajaya.

Swatchdisplaystheirproductsindifferentanduniquewayscomparedtoothertypicalwatchstores.

Theydisplayeachandeverycolorofwatchessothecustomerswillnotneedmuchassistancewhilebrowsingtheproducts.

9.2MarketObservation

IhavemadeanobservationaboutthemarketduringmyvisittotheSwatchstores.Ididfindsomespotnearthestore
andsitforoneandahalfhourandobservethepeoplewhovisittheshop.Hereistheresultofmyobservation.

Most of the people who visit the store are young couples, followed by teenagers, and parents who bring their

families.Swatcharegoodindisplayingtheirproducts,theywillusuallyhavethenewproductslineatthemostfrontofthe
shop,sopeoplewhopassbywilleventuallystopbytohavealook.Alotofthepeoplewhovisitedthestoredonotintend

tobuytheproduct,mostofthemareattractedbythecolorfulwatchesdisplayedintheshop.Outofoneandahalfhour,i

canonlyidentifiedonepersonoutboughtSwatchproduct.

TherearealsoparentswhobroughttheirkidstotheSwatchshoptohavealookattheproducts,butmostofthem

justwalkedawayemptyhanded.Inmyobservation,mostpeoplewhovisitedarejustpeoplewhowerewindowshopping

and never intended to buy anything, the price of the products might as well be the reason they refuse to buy Swatch

products.

Photosshowtypeofpeoplewhovisitedthestore,therewereparentswiththeirkidsandyoungcouples.Attimes,theshop

wouldbefilledwithalotofvisitors.

9.3OnlineSurvey
The online survey was conducted to study about the target audience, the survey has been answered by 50

participants.Theaimofthissurveyistodeterminethebehaviorandtheawarenessofpeopleaboutthebrand.Thesearethe

resultsofthesurvey:

Question1Whatisyourgender?

Thisquestionwasmadetoidentifythegenderoftheparticipants.Thechartshows52%ofparticipantsaremalefollowed

byfemaleat48%.

Question2Whatisyourage?

Thisquestionwasmadetodeterminetheageoftheparticipants.Theresultshowsthedominantoftheagegroup1821by

68%,followedbyagegroup2225by28%,agegroup2629by4%and0%for'17andbelow'and'30andabove'.This

resultishelpfulasthemajorityageofparticipantsbelongtotheagegroupofthetargetaudience.
Question3Whatisyourmonthlyincome/allowancerange?

Thisquestionwasmadetodeterminethemonthlyincomeorallowanceoftheparticipants.Theresultshows56%ofthe

participantsgainbelowRM500,30%gainRM500RM1000,8%gainRM1000RM1500,4%gainRM2000RM2500,2%

gainaboveRM3000,and0%forothers.

Question4Doyounormallywearwristwatch?

This question was made to determine whether the participants are familiar with wrist watch. The result is equal, 50%

answeredYesand50%answeredNo.Thisisimportanttogettheinformationonwhetherthetargetaudiencefindswrist

watchimportanttothemorotherwise.

Question5Whatbrandofwatchdoyoupreferthemost?

Thisquestionwasmadetodetermineparticipants'preferredwatchbrand.Asitturnedout,34%ofparticipantspreferred

Swatch,followedbyFossil,Casio,Seiko,Guess,Timex,andotherbrand.Thisshowsthatmostpeoplewithinthetargetage

grouppreferSwatchoveranyotherbrands,thiscanbeduetotheyoungandstylishlookoftheSwatchproducts.

Question6Howmuchareyouwillingtospendonawatch?

This question was made to determine how much people are willing to spend for their watch. The result shows that 36%

peoplearewillingtospendRM200,followedbybelowRM100at32%,RM300at14%,aboveRM500at10%,andRM400

at8%.Thisshowsparticipantsatthegivenagegrouparenotwillingtospendtoomuchfortheirwatch,duetothembeing

studentanddonothavetheirownsalary.

Question7Whichofthefollowingfactorsdoyouconsiderthemostwhenpurchasingyour
watch?
This question was made to determine the factor people consider the most when choosing their watch. Result shows that

most of them prefer the design of the watch, followed by quality, price, brand, trend, and other. This shows that young

peoplearemoreawareandcareaboutthelookoftheproductstheychoose.

Question8HaveyouheardofthebrandSwatch?

Thisquestionwasmadetodeterminethebrandawarenessamongtheparticipants.Asitshows,985oftheparticipantshave

heard of the brand and only 2% of participants never heard of Swatch. This shows how Swatch has been an established

brandinthemarket.

Question9Ifyes,wheredidyouheardofthebrandfrom?

Thisquestionwasmadetodeterminewheredidpeopleheardofthebrand.Mostpeoplearebeinginformedthroughfriends

&families,followedbynewspapers&magazines,internet,tv&radio,andothers.

Question10HaveyoueverownSwatchproduct?

ThisquestionwasmadetodeterminewhethertheparticipantseverownSwatchproduct.Theresultshowsalmostequalof

percentage,with46%haveownedSwatchproduct,and54%neverownedSwatchproduct.Thisshowsthatmostpeopleare

alreadyfamiliarwithSwatchbrand.

Question11HaveyoueverbeentoanySwatchstoresinMalaysia?
This question was made to determine how many participants have been to local Swatch store. The result shows 88% of

participantshavevisitedSwatchstorebeforeandonly12%otherwise.

Question11WhatdoyouthinkofthepriceofSwatchwatches?

ThisquestionwasmadetodeterminepeopleperceptiontowardthepriceofSwatchwatches.Asisturnedout,48%think

thatthepriceisexpensive,followedby36%whothinkitisreasonable,and16%havenoideaaboutthepricing.Thisisin

factduetothedifferentamountofincomereceivedbyeachperson.

Question12HaveyouevercomeacrossanyactivitiesorcampaignsorganizedbySwatch?

ThisquestionwasmadetodeterminewhetherpeoplearefamiliarorhaveencounteredanyactivitiesorganizedbySwatch.

Theresultshowsthatonly10%ofparticipantshadcameacrossactivitiesbySwatchwhiletherestarenot.

Question13WhatareyouexpectingfromSwatchinthefuture?

This question was made to determine people's expectation from Swatch in the near future. Most people wanted a lower

price range for the products, followed by variety of product designs, quality of products, more local stores, and more

contestsandcampaigns.

9.4Interview
Intheprocessofcompletingtheresearch,iwashavingsomedifficultiesatfindingsomeinformationaboutthe
company, so i had decided to email the local Swatch management to get the information needed as well as having an

appointmentsessionforaninterview.

Unfortunately,therewasnoresponsefromthem.Fromthereon,ihavedoubledmyresearcheffortontheinternetas

wellasinfieldobservationinordertogettheinformationneededforthisSituationAnalysis.

10.1AdvertisingStrategy

SwatchTouchContest


 Daddy'sFavouriteColourCampaign

SwatcherWishContest

Swatchnewspaperandmagazineadvertisements
 Swatchadvertisementfortheirwaterresistantproduct

Promotionalposterfortheir30%discountproduct

PromotionalposterfortheKid'sCollection

10.2PrecedentStudies
 Webdesignconcepts

PromotionalPosterconcepts

Billboardconcepts

References
SwatchOfficialWebsite
Retrievedfromhttp://www.swatch.com/my_ms/home.html

Swatch.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Swatch

SwatchMalaysia.Facebook
Retrievedfromhttp://www.facebook.com/swatchMY

WorldWatchReport2011
Retrievedfromhttp://www.slideshare.net/IC_Agency/worldwatchreport2011mediakit

TheSwatchGroup.OfficialWebsite
Retrievedfromhttp://www.swatchgroup.com/intro_en

TheSwatchGroup.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/The_Swatch_Group

FashionApparelIndustry.FashionProduct
Retrievedfromhttp://www.fashionproducts.com/fashionappareloverview.html

Fashion.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Fashion_industry

ASwatchChronology.AlwaysSurprising
Retrievedfromhttp://en.wikipedia.org/wiki/Fashion_industry

Casio.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Casio

CasioGShock.OfficialWebsite
Retrievedfromhttp://www.gshock.com/

TimexMalaysia.Facebook
Retrievedfromhttp://www.facebook.com/timex.malaysia

Nixon.OfficialWebsite
Retrievedfromhttp://www.nixon.com/mens/

NixonWatches.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Nixon_Watches

Seiko.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Seiko

Adidas.OfficialWebsite
Retrievedfromhttp://www.adidas.com.my/

Adidas.Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Adidas

Pandora.OfficialWebsite
Retrievedfromhttp://www.pandora.net/enmy/

Pandora(Jewelry).Wikipedia,thefreeencyclopedia
Retrievedfromhttp://en.wikipedia.org/wiki/Pandora_Jewelry

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