Swatch Ran
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Although the Swatch Group was the worlds 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 Groups 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 todays 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 Groups 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