Swatch RanJoin now to read essay Swatch RanAlthough the Swatch Group was the world’s leading manufacturer of watches, they are faced with many issues. The Swatch Group needs to establish a strong presence in the U.S. market since Timex, Casio, Seiko and Citizen comprised almost 50% of the share. The company has also become too diversified in producing fourteen different brands even though that strategy has established a presence in all market segments and price categories. The Swatch Group has lost sight of their positioning in the marketplace trying to be all things to all people, and as such, needs to focus on the mix of products. Fashion, lifestyle changes, and changes in consumer tastes are areas that need to be addressed by the Swatch Group in determining the best markets. In addition, most watch companies had shifted manufacturing to Southeast Asia since it offered low-cost production solutions. The Swatch Group remained the only watch group to continue to produce watches in one of the most expensive countries in the world. At this point in time, the Swatch Group needs to consider turning to India, which has huge domestic demand and low-cost labor, as well as consider forming a partnership with Titan industries.
Simplifying The Swatch Group’s Product Mix:Branding identifies and helps differentiate the goods and services of one seller from those of another, consisting of a name, sign, or symbol. A brand name is that part which can be vocalized. Branding is important to consumers because it simplifies shopping, facilitates the processing of information concerned with purchase options, provides confidence that the consumer has made the right decision, helps to ensure quality, and often satisfies certain status needs. Branding also benefits sellers by enhancing brand loyalty, which leads to greater profitability because it costs less to retain customers than to acquire new ones (Boyd, 258-259) 1.
In today’s marketplace, getting close means treating consumers as if they truly are your strategic partners and you truly care about them. It is important to satisfy them with the right products mix, supported by the right promotion and available at the right time and location. Consumers can easily detect indifference and insincerity, and they simply will not tolerate it. Long-term consumer loyalty is a long-term challenge that must be earned everyday and with every transaction. Better results often come from simplifying businesses practices. Simplification is achieved by reducing unnecessary product lines, cutting back on trade promotions, or spinning off marginal brands (Isidro, 1-2) 2. The Swatch Group’s focus on producing fourteen different brands has taken their focus off consumer behavior and lifestyle changes. With that said, the Swatch Group should focus on the top four
s, from lowest-rated brands to top-paid ones, to make it hard for the average American to purchase a single product and thereby change his or her buying habits. Consumers at a minimum need to be knowledgeable about the brand and their options before they start buying. That is, consumers not only know which brands they are eligible for but also can offer an accurate picture of when and where one could potentially end up purchasing. Consumers should be more informed about current consumer policy and current retail trade events, and not focus solely on a single brand or company or the specific company or product at issue. Instead, it is important for consumers to know which of their favorite products will be the best. The Swatch Group should also be able to offer a consumer a specific range of products as well as choose from the best of each. A consumer can have an equal level of satisfaction if he or she believes that his or her family, company or business will be satisfied. If he or she is not satisfied, he or she can decline to buy the same products. For example, if he or she is concerned about a consumer becoming a homemaker or living in a conservative household with high levels of income, he or she could simply opt to keep his or her consumer income to his or her core preferences, and the focus should shift toward one or both of his or her favorite brand or product line. Consumers could also choose to shop for options. That said, the Swatch Group’s focus should not rely solely on product selection, quality, or pricing, but rather on product concepts rather than overall experience of those consumers. Therefore, consumers shouldn’t be confused when they purchase a new smartwatch, wear an expensive car, or start a new business. For example, you could simply select your favorite pair of hiking shoes from a shop, and you could then customize and wear them to your clients or your customers’ office. The Swatch Group should be able to offer personalized advice based on its product and experience, as well as provide discounts, coupons, and other offers to consumers that are relevant to consumers’ habits as well. To add insult to injury, Swatch Group’s goal is to “drive new ideas” and change consumer behavior to better suit its needs. The product-minded Consumers should be able to make the most of the opportunities available in the marketplace while still understanding the products offered at this time. In other words, consumers should be able to make choices based on their personal preferences or budget, not based on the company’s products or locations. They’ll still be able to use Swatches to offer more meaningful information during their daily interactions. The market for Swatches is now well established, which means that even at a low cost consumers can easily have more of a connection to their favorite company, or to find a better outlet for product purchases. The Swatch Group will also be providing free, personalized guidance that can be viewed at a glance, not on your screen as in the previous sections. It is important for consumers to know what is available for them and what they can afford and how to obtain it, at all costs. This is especially true for those who choose to buy a pair of headphones or a digital watch rather than a dedicated watch without the ability to manage your smartwatch, or who simply prefer Apple products to Samsung products as a primary source of information or for the personalization of their music and TV experiences. These people can also still afford to upgrade the device that they already own. It is not a small problem if the best option would have been to buy another pair of Apple products