The Swatch

Group-11

Overview
Creation of the Swatch Product: high quality, low price, fashion design, fully mounting automatic process Price: >50 dollars Promotion: massive advertising, no sales at drugstores but at chic boutiques and jewelry shops Positioning: associating the brand name with positive emotions as fun; vacation, high fashion accessory, for people between 18 and 30

Characteristics No marketing departments High levels of hierarchy Rigidity of the process of the fabrication Traditional perception of engineers that avoid innovation Industry dominated by engineers

Style of leadership Mr. Thomke was known to be autocratic because he took very important decisions himself , and he had different vision than other engineers but he Encourages innovation Develops a marketing team Consults professionals Reduces the hierarchical levels Encourages the employees to participate

Strategy control After the creation of the Swatch Mr. Thomke thought of a possibility to develop a range of swatch accessory to associate the product at a life style and to create a brand identity => they have to control the risk of failed ( failure of the positioning and misunderstanding of the positioning by the consumers )

Dr. Thomkes Strategy-The project delirium

Objectives : Step 1: boost the morale of employees

Change the strategy of ETA Encourage idea of employees Communication across departments Stress hierarchical levels Control 50% instead of 10 % of the market share Sales target: 10 million pieces in 3 years Control costs with high quality: shock water- resistant

Step 2: change the organizational culture and structure

Step 3: defining a revolutionary product in the medium /low price category

Step 4: developing marketing, built new marketing team.

The new concept- Objectives

1. Price: Quartz-analogue watch, retailing for no more than SFr. 50 2. Sales Target: 10 million pieces during 1st 3 years 3. Manufacturing costs: Continued expansion in order to decrease estimated cost per watch 4. Quality: Standardized parts, high quality, waterproof, shock resistant etc.