Brand Mantra, Core Brand Values & Brand Identity
Swatch Group is repositioning and rebranding its products due to the vast competition that it is facing from other dealers worldwide, by doing so Swatch group is trying to recover its customers and retain the market share. Swatch Group should start more programs that will see other products not only its primary product i.e. watch, but other products such as developing more automobile accessories and telephones. To regain its marketing capabilities Swatch group should partner wit5h other like-minded companies which will assist in this endeavor. This partnership should involve more developments in automotive accessories that will enhance technological development in its systems and also increase profitability (Aaker and Joachimsthaler, 6). Many people feel that the brands which are produced by Swatch Group are flashy and they befit every occasion and by improving on the brands that are already there the company will be inclining to the customers’ point of view. By introducing the smart car in the industry the company will be seeking new market targets, but this is not enough the company should do more in rebranding its products. Swatch group should also introduce more features on watches so that the brand can appeal more to customers. The brands produced by Swatch have from time to time appealed to its customers due to the connection they have to them but the company should invoke more features on the watches. The brands always have the name of the company and this gives the customer a sense of ownership and they are always ready to promote the company but to be able to connect to the customers the company should provide a unification process for the brands.
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Research shows that women and youngsters prefer flashy accessories and fashion that is why Swatch should capitalize on this perception. The group should reposition its marketing structure to capture these upcoming markets. It is very essential for Swatch group to consider investing in countries like the United Kingdom where the market is dominated by youngsters. For Swatch to increase its market share, reduction of prices in some of its products is paramount. Price reduction attracts impulse buyers and by using this strategy some of the impulse buyers will love the products being offered and become the company’s clients. Moreover, by reducing the prices of some of these brands the company will be attracting more youngsters who do not have large sources of income (Kotler and Waldemar, 47). Swatch should also target the fashion designers since they are always in the look for new features and tastes of products and that is why the company should rebrand its products. In venturing into other industries such as the car industry and phone industry the group should target the affluent people in the society who can purchase some of these products such as the smart car. By targeting these groups of consumers Swatch Group will eventually regain its market share.
Nature of Competition
Swatch Group has many competitors; this has been precipitated by the fact that many companies are now venturing in this business of watch production. There is a stiff competition from other segments of the same industry due to the production of low cost watches. Even though Swatch Group produces a wide range of watches ranging from high priced to lower priced ones, which is not enough to counter the competition that is there. This is why the company should restructure its manufacturing processes in order to reduce the cost of the products. Competitors are overcoming the market base because they have low cost processes of manufacturing thus making the cost of the watches to go down below the price list of Swatch Group. Another issue that Swatch should consider on doing in order to regain its market capabilities is brand unification, this is being done by its competitors (Aaker and Joachimsthaler, 4). The group should come up with proper marketing strategies such as promotions and advertisements. Through such marketing strategies the company will be able to reach out to more customers and be able to reach out to other clients. Furthermore, the company should consider offering discounts which other competitors are not doing and in doing so it will have overcome the competition.
Points of Parity & Points of Difference
The points of similarity of the watch brands being focused or targeted for markets all over the world is the functionality and reliability of these machines, furthermore the necessity of the machines to the daily life of customers is also of importance to Swatch and other competitors. Swatch Group should improve on these features in order to beat the competitors and gain more market base. The Group should improve on its products and brands in order to fit in these brackets otherwise they will end up loosing their market share. The company should also improve the efficiency of the watches and also the durability, with such additional features the customers will be satisfied and willing to increase their sales (Kotler and Waldema, 74). The company should not only insist on the fashion and elegance of the machines but it should also improve on the quality of its brand and by so doing customers will stream back to the company thereby increasing the sales.
Aaker, David and Joachimsthaler, Erich, Brand Leadership: New York: The Free Press. (2000). pp. 1–6. Web.
Kotler, Philip and Waldema, Pfoertsch, Brand Management, Springer, 2006.