4P elements of the rational useProduct Target Market Shift: From high-end watches only to full-scale mid-to-low end markets and to the production and sale of fashion watch accessories. When Hayek took over, the Swiss watch industry accounted for 97% of the global market for high-end consumer goods, at the expense of the lower and mid-market – less than $ 100 in watches. Due to the impact of low-priced watches in Japan and Hong Kong, the high-end market is gradually shrinking. Subsequently, Hayek follow-up strategy to go boldly into the low-end market, producing fashion watches for less than $ 40. Swatch segments the target markets in the low-end market (targeting 18-35 year-olds as consumers), targeting young and trendy brands through high quality, advanced design, vibrant colors, simple structure and not simple, Materials, simplified packaging, high level of automation, low cost implementation of product differentiation, a firm foothold in the low-end market.Price Cheap – Made in Switzerland, the Swatch shell is made entirely of synthetic material, the movement is loaded directly from the front of the watch without the need to retain the back cover, the watch becomes thin and light, and can enter the assembly line Mass production ensures low-cost sales on the market, ranging from tens of dollars to hundreds of dollars, and in any country, the price is within the acceptable range of consumers. These 5 products are of good quality, light weight, and have a variety of functions (such as waterproof, shockproof, etc.
), bright colors, bold, diverse, full of youthful vigor and vitality. ? adhere to the local assembly in Switzerland ? improve production processes, reduce labor costs ? simplify components without compromising quality ? use of cheap plastic packaging ? high quality standards, strict quality controlPlace Swatch has taken an anti-traditional approach to retailing, bypassing jewelery stores and watch stores, but has created many anti-traditional sales craze. For example, the series of vegetarian swatch, the watch on the sale of fruits and vegetables store; in the department store, SMH also tend to swatch away from the jewelry counter place, and choose the store system or Swatch franchise stores. Swatch also opened a number of independent franchise stores, these stores are licensed franchise, are set up in the high-end fashion blocks. The operating costs of each store are about 1.5 million US dollars, selling a limited edition Swatch. As a result, these stores are often packed with customers who are eager to get a limited edition swatch.
By 1992, swatch opened 27 such franchises throughout the world. These distribution methods allow Swatch to better implement its marketing plan, better understand local customer needs and better develop new products.Promotion1, emotional marketing: Swatch For consumers, a souvenir, a history, a handicraft, its network marketing is a consumer-focused competition form, for customers, retain customers, expand customer base, establish intimacy Customer relationship, analysis of customer needs, create customer needs.
2, hunger marketing: Swatch broke the watch’s simple timing function, a new interpretation of the concept of time, not only in style, but also by limiting production, collectible value and appreciation potential, regular auction, membership club system regulation supply and demand, manufacturing demand The illusion of maintaining the high price of goods and profit margins.3. Propaganda and Promotion Media: SMH promotes Swatch by spending about 30% of its retail revenue on advertisements, which is twice the industry average. Through TV commercials, outdoor shows and street dance events, it invites celebrities to promote and create Clubs and other ways, highlighting its brand positioning, to communicate with consumers its young, fashion, vitality and other spiritual content.