Yashesh parekh Pg 2012-14 1st sem Nl dalmia college

Switzerland is well know for its high end watches. But with SWATCH, Switzerland will step in low and middle price market- Dr Ernst ThomkePresident of ETA. Franz Sprecher, project marketing consultant, stepped in to help launch ETA SWATCH, which was still unnamed and handmade watch

Asuag is the parent company ETA being subsidy of Ebaush and SWATCH being a brand of ETA. Asuag founded in 1931. Swiss government decided to collaborate all the small watch makers in Switzerland It was a rational to consolidate a highly fragmented industry More over the watch industry was suffering from ill effects of world war 1 and global depression.

By 1981 Asuag had become the largest watch company in Switzerland. Asuag was worlds third largest watch making company after SEIKO and CITIZEN. Asuag employed a total of 14499 employees,83% of whom worked in Switzerland Asuag accounted for about one third of all Swiss watch exports, which were estimated at Swiss Franks 3.1 billion in 1980

Comparison of Watch Industry

1960
Units Switzerland Japan Hongkong 43% 7.2 43% 13.7 32% 14 18.40% 22.5

1970

1975

1980

Exports in SFr Switzerland Japan Hongkong 1159 16 2383 399 63 2764 835 246 3106 1911 1855

LEADING WATCHMAKERS Percentage of worldwide unit production

switzerland japan hong kong

43%

42%

32%

23% 19% 18% 14% 14%

7%
0% 1960 0% 1970 0% 1975 1980

Transfer pricing policies of asuag Loose consortium of companies Fully integrated Japanese watch makers Low overhead of Hong-kong assemblers

STRENGTHS: High reputation and customer loyalty. Present in all market segments and price categories. Powerful research and innovation ability(high number of skilled technicians).

Did not have distribution channels in the global market. Did not take their competitors seriously.

Swiss Govt. is providing financial support to the watch industry. The Swiss had a long tradition in watchmaking. Official timekeeper in many games.

Strong Competitors Counterfeit products New emerging technologies Declining prices

INTRODUCTION OF A NEW WATCH

Use of quartz technology-accuracy within 1 second per day Waterproof Shock-proof 3 year warranty Theoretical life of 30 years 1 year guarantee

Weight- 20 gms Dial thickness 8mm Durable matted plastic strap Aesthetic enhancements- colour and face design Ultrasonic welding DELERIUM Technical abilities

Large mans watch

25% smaller versions for women and children Positioned with fashioned and sports image Emphasized Swiss origin For young and who stays young

4 Ps strategy Product
Popularius (SWATCH)

Price
Aggresive

Place and Promotion

US target market Switzerland UK and Germany

Distribution within ETA Retailer and Wholeseller Duracell proposal Timex Proposal McCann-Ericksons Ben Hammond