Name

Roll no

Shonit Naralkar

2014172

Harjas Bakshi

2014148

Prathamesh Patil

2014159

Popular watches before swatch:

The types of watches which were popular before swatch can be categorized
according to their features:
Digital display.
Functionality of Day and date of the week.
Timers, Calculators, Analog watches which mimicked the gold and silver plating of
Swiss watches.
Quartz technology.

Difference between Rolex and

Timex\ Seiko

Rolex consisted of 100 different components assembled manually with great precision.

It contained synthetic jewels to withstand the wear and tear.

It was like a heirloom.

Enclosed in beautiful castings and sold at upscale stores.

Required after sales service.

Highly priced

On the other hand Timex had simple design, cheap exterior material and it could not
be opened. More like a disposable watch . Inexpensive and sold at discount stores.

Based on electronics so more functionality. Fully automated manufacturing.

Evolution
Evolution of
of watch
watch industry
industry
Till
Till 1950
1950 Dominated
Dominated by
by the
the
Swiss
Companies.
Swiss Companies.

From
From 1951
1951 Emergence
Emergence of
of
Timex
Timex

From
From 1970
1970 Emergence
Emergence of
of
Quartz
technology
Quartz technology

2500
2500 Swiss
Swiss watchmaking
watchmaking firms
firms
employing
employing less
less than
than 50
50 people.
people.

Low
Low cost
cost alloy
alloy metals
metals replaced
replaced the
the
jewel
jewel as
as found
found in
in the
the Swiss
Swiss watches
watches

Sophisticated
Sophisticated functionality
functionality

Accounted
Accounted for
for 80%
80% of
of the
the watch
watch
production.
production.

Enabled
Enabled automated
automated production.
production.

Fully
automated ,, high
Fully automated
high volume
volume
manufacturing
manufacturing

All
watches were
All the
the watches
were manually
manually
assembled.
assembled.

Point
Point of
of Sales:
Sales: Discount
Discount Stores.
Stores.

Very
Very Low
Low cost
cost of
of movements
movements

Point
Point of
of Sale
Sale :: Jewelry
Jewelry store
store

No
No after
after sales
sales service
service required
required

Price
Price point
point less
less than
than $50
$50

Price
Price point:
point: Above
Above $350
$350
After
After sales
sales service
service required
required

erence between Swatch and earlier watches:

Design Swatch had witty,

outlandish designs and
used brash intense colors.

Higher no of models.

Moderately priced.

Reasons for success of Swatch:

Distributio
n

Advertisin
g

Non traditional point of

purchase.

30% of Swatchs retail

price on advertising
which was double the
industry average.

Promotional stunts
Break dancing
sponsorships, celebrity
endorsements

Ex: Veggie Swatch line

was sold in fruit and
vegetable markets.

High profile advertising

as opposed to
conventional classy
newspaper ads.

Ex : Giant Swatch
outside the tallest
skyscraper in Frankfurt

Mini boutiques

Mono brand stores in

high fashion districts.

BTL
activities

Elements of SMHs overall business model have

been most critical to the companys success from
1983 to 1993
Decentralized marketing:
Management teams and organisations for all brands
Different message for each brand
Centralized Production
Manufacturing and assembly only negotiated through SMHs technology

Vertical integration in the company

Build and assembled all the components of the watches

Sufficient differentiation has been achieved with respect to each

brand on the basis of Unique Brand, Message, Design
and Categorization.
Swatch Group has 18 brands categorized into four ranges:

Luxury and
Prestige range

High range

This range repertories brands offering watches over

3000 francs
Historical and prestigious brands with rich heritage
in the watchmaking industry.
Includes Breguet,Harry
Winston,Blancpain,Glashtte Original,Jaquet
Droz,Lon Hatotand Omega.

Prices from 900 to 3000 francs

Famous for their design, quality and technological
innovation
Includes Longines,RadoandUnion Glashtte

Middle range

Basic range

Prices range from 250 to 900 francs

They are oriented more towards fashion and
sport.
Includes Tissot,Calvin
Klein,Balmain,Certina,MidoandHamilto
n

The brands are very affordable with prices

lower than 100.
There are just two brands in this
range:Swatch and Flik Flak.
Swatch offers original and trendy plastic
watches for young people from 12 years old
Flik Flak is positioned only on children watches
market

Apple iPhone
Before iPhone
Feature phones
Phones with buttons
Small screen size

After iPhone
Smartphones
App ecosystem
Business
Utilities
Games and Entertainment (iTunes)
Touch Screen
Superior User Experience
Large Screen Size