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IIM-I • INTERNATIONAL WATCH BRANDS • FREDERIQUE CONSTANT
3 billion in 2011. in this case called a 'manufacture'. the Swiss watch and clock industry has always had a specialized horizontal structure in which suppliers. Frederique Constant positions itself in the Accessible Luxury segment.000 watches. breaking its own records in exporting each year and going from 4. It is this wide variety and its worldwide vocation which together have ensured the survival of the industry over the course of centuries.FREDERIQUE CONSTANT CASE STUDY Frederique Constant in India: Aletta Stas-Bax. with most of its watches selling at CHF 1.000-5. but we seem not to have found the 'sweet spot' in our marketing mix to set the development on a steady long-term growth path.000 in 1984. was sitting in her Geneva office in preparation of her visit to India. what should we do to realize a similar success for Frederique Constant in India compared with the success we are realizing in. Better still. for example. However. Frederique Constant has grown into one of the larger Swiss watch manufacturers. as in 1970. Background Frederique Constant: Frederique Constant SA is a manufacture of luxury wrist watches based in Plan-les-Ouates. doubling in size every three years. The company was established in its current form in 1988 by Aletta Bax and Peter Stas. Switzerland's third largest exporter after the machine and chemical industries. . But what is the situation now. has only one market : The World. to suit all pockets. having missed out the electronic revolution and being strongly affected by the economic crisis. And. who put the final product together. as it was yesterday.600 in 1970 to about 600 now. COO of watch manufacturer Frederique Constant. during the last five or six years. what is no less surprising. China? The potential in India is vast. The great majority of watch companies are small sized companies (employing less than 100 people) while a very little number (less than 10) are each employing over 500 people.000 retail. The company is expected to continue its annual 25% growth. to a lesser extent. craftsmen and sub-contractors supply movements and external parts to assemblers called 'établisseurs'. Historically. While Frederique Constant was active in the country. Geneva. thirty years later? Having successfully completed its structural reconversion. The average number of employees per company has remained constant. the watch industry is today.700 points of sale in 100+ countries around the globe. or almost so : from quartz fashion watches for a modest price to mechanical masterpieces. See tables in annex for detailed figures on the Swiss Watch Industry. it has taken the leading position amongst the country's most successful industries. technological upheavals (appearance of the quartz technology) and the difficult economic situation resulted in a reduction in the size of the industry : the number of employees fell from some 90. The Swiss Watch Industry: The watch and clock industry.000 in 1970 to a little over 30. the Swiss watch industry was moribund in the middle of the 1970s. She asked herself.3 billion francs in 1986 to 19. In 2012. results were trailing those realized in other Asian countries. at just under 70 people per company in 2004. costing several million francs. production reached over 12. one of the brightest stars in the Swiss economic firmament. the industry has also developed a vertically integrated structure in which watches and clocks are sometimes made entirely by the same company. made of gold and decorated with precious stones. According to a number of economic analysts.000 employees in 2004) while the number of companies decreased from about 1. Swiss made timepieces are to be found in all the countries of the globe. During the 1970s and early 1980s. a figure which has remained stable over the last thirteen years (40. sold in over 2.
founder and CEO of Marcolini Chocolatier and Mme. these first names were also the middle names of the founders: Aletta Francoise Frederique StasBax and Peter Constant Stas. smart development and unparalleled attention to detail. Passion definitely shows through the company's craftsmanship. Live Your Passion: “Live your passion. However. Helaine Baruch of the American Heart Association. the company created the 'Frederique Constant Passion Awards' to celebrate the passion that is fundamental to success. co-founder of TomTom. allowing for a high quality timepiece each and every time. but changed in 2001 to the more direct 'Live your passion'. Frederique Constant creates beautiful watches with precision design that are assembled by hand. high quality. This technology was primarily used to produce etched print plates. Passion Awards: To emphasize the true passion behind Frederique Constant. The winning companies or organizations are offered a Business Case Study by Professor Dominique Turpin of IMD Lausanne on a strategic issue of choice. Early in the 1990s. founder of the Paint-a-Smile Foundation. Frederique Constant developed its first Heart Beat watch. Laura Cotton. Heart Beat: In 1994. These charities include those related to the heart and children. The purpose of the Heart Beat development was to show the mechanical nature of our watches. Geneva. • Passion for latest technology to develop exciting watch calibres. Incidentally.FREDERIQUE CONSTANT CASE STUDY History of Frederique Constant: Frederique Constant was created from the first names of the great-grandparents of the founders: Frederique Schreiner and Constant Stas. Pierre Marcolini. creativity. • Passion for the success of the company. • Passion for entrepreneurship and business innovations • challenging conventional wisdom. The company is also known for our delicate rounded cases that require many hours of hand polishing. as well as the company's charitable donations. Heart Beat watches have an aperture at the position of the balance wheel to show that the movement of the watch is mechanical. Perceived value is important. Frederique Constant's signature is the Heart Beat. it was a tradition in both families to name children after their great-grandparents. innovation and exceptional value. The company is now involved in all stages of watch production. Frederique Constant is still an independent family-owned watch manufacturer based in Plan-les-Ouates. Frederique Constant is associated with the core values and competences of passion. Behind it is an extensive creative process that involves an inspired design. • Passion for smart component applications and processes to create watches at sensible prices. Dr. Passion means to the company: • Passion for the creation of beautiful watch designs. suppliers and customers. The Financial Times is the official media partner. Mme. Passion: Frederique Constant's slogan is “Live your passion”. from initial design to final assembly and quality control. Initially. Constant Stas founded his own Lithography Company in 1904.” reflects the spirit of Frederique Constant's watchmakers. Creativity: A Frederique Constant watch is more than a luxurious timepiece. PeterFrans Pauwels. with $50 from each watch sold in the Double Heart Beat Collection donated to various charities. the Frederique Constant crest is inspired by the Stas family crest. as well as a solid gold Frederique Constant Manufacture wristwatch. Winners were Mr. William Novick of the International Children's Heart Foundation. automatic mechanical watches were slowly making their . Lastly. Please notice the fine engravings and printing on Frederique Constant dials. it was also used to produce clock dials for the burgeoning Friesche Klokken industry. so the company knows that quality must be consistent and is vital to it's success. Frederique Constant is equally as passionate about charity. the slogan was 'Live life with passion'.
Frederique Constant opened a new manufacture in Plan-les-Ouates. Manufacture in Plan-les-Ouates: In 2006. offering an attractive working environment for the company's watchmakers in the sectors of movement component production. On quartz watches. However. encouraging frank and open feedback. the company's main customers are asked for their opinion. Caliber and watch assembly.FREDERIQUE CONSTANT CASE STUDY comeback after the quartz crisis of the 1970-1980s. These are not just 'paper' rules. watch assembly. • After above machine exposures. a patent could have been secured. The balance wheel rotates clockwise and counterclockwise on its axes in a large ruby jewel. as well as state-of-the-art quality control. Swiss Customs regularly make random checks of export shipments. a watch must be assembled and inspected by the Canton of Geneva and at least 50% of its value must be added in the Canton. the company reserves the right to make the final decision on many details in order to maintain the unique character and style of the Frederique Constant collections. nine new Frederique Constant Manufacture calibers have been developed. Others changed the shape of the Heart Beat. Watchmakers need extensive training and experience to be able to assemble the fine components that are required to manufacture a high quality watch. It only took one year before the first Heart Beat copies started to appear. which constantly coils and uncoils. The Heart Beat has become the iconic signature of the Frederique Constant brand. Each and every watch passes through the following quality control tests: • A fast tumbler exposing the watch to a strong rotation force. Its rotation is controlled by the hairspring. Instead. In addition. Without an internal legal department and sufficient management attention. the most prestigious region for Swiss watch making. the first Frederique Constant Heart Beat watches were introduced in the market without any registration. In 1994. After the production of second and third round prototypes. Frederique Constant timepieces are made in Genève. Watches are assembled in a dust-free and air-controlled atelier with various proprietary and custom-made machines. and extensive quality control. In a mechanical watch. divided over four floors. but inherently still copied the Heart Beat design feature. Numerically controlled machines of the latest generation are located in a large atelier in the basement. Typically. particles and discoloration. caliber assembly. these mechanical watches looked similar to quartz watches. • Timing accuracy test in three to five positions. where all component manufacturing is concentrated. except that the second hand moved continuously. a full manual functionality check. • Water resistance test with the revolutionary Deltarox testing device. Geneva. Some competitors plainly copied the Heart Beat dial aperture in their watches. • A custom-made rotation device that simulates the movement of the wrist. one-by-one. The culmination of decades of experience and ingenuity around the world ensures the success of the Frederique Constant collection. Innovation: Since 2001. Made in Genève: Frederique Constant watches are Swiss Made. the second hand makes 60 steps per minute. Frederique Constant considered it important to highlight the difference between mechanical and quartz watches visually. produced and introduced in the market. With the introduction of the Heart Beat Manufacture. Care for Quality: All Frederique Constant watches are assembled by hand. Frederique Constant has become a member of the small and .800 times per hour. Possibly. as can be seen through the dial aperture of the Heart Beat watches. Frederique Constant as a company was growing fast but was still relatively small. an important seal for quality watches. To have Genève on the dial. while extensive input from our customers is appreciated. are primarily organized on the first floor of the new Frederique Constant building. • Extensive visual inspection for miniscule scratches. a beginner's mistake was made: The Heart Beat feature should have been deposited as a design registration. the balance wheel beats 28. Cooperation: The creative process is a collective effort by Frederique Constant and its distributors. The manufacture measures 3200 square meters.
Frederique Constant kept them largely the same.FREDERIQUE CONSTANT CASE STUDY exclusive group of Swiss watch manufacturers that produce their own calibers. Since then. their high quality. four new Frederique Constant Manufacture calibers have been developed. In Basel 2007. Frederique Constant has a no-nonsense open company culture emphasizing integrity. International auction houses now successfully sell Frederique Constant timepieces. Learning from the company's previous mistake. This confirms belief in the original concept. Frederique Constant developed its Tourbillon fully in-house with a number of unique features: • Silicium Escapement Wheel and Lever • Smart Weight Balancing • Fast Oscillation at 28. Tourbillon: In 2009. The Heart Beat Movement was developed by a Frederique Constant team collaborating with eight specialists from the École d'Horlogerie de Genève. cost could be kept under control. the foundation and conviction to deliver on a consumer-centric philosophy. It is important to point out that Frederique Constant has not changed its concept and positioning. The lower weight silicium escapement wheel has lower inertia. Frederique Constant proudly presented the new Heart Beat Manufacture Caliber at Baselworld 2004. . • Lower inertia. Heart Beat Manufacture: After three years of development. the company proudly introduced this first implementation of new high-tech materials to create even better. Upon completion of the development. A Manufacture caliber is the ultimate achievement in the Art of Horology. Frederique Constant worked passionately on the application of a silicium escapement wheel for the Heart Beat Manufacture caliber. The benefits of a Silicium escapement wheel are: • Lubricant-free running: Age-related thinning and drying of lubrication of the escapement wheel will no longer occur. produced and introduced in the market. Frederique Constant introduced a World Premiere: a Tourbillon watch with Silicium Escapement Wheel and Lever moonphase Date 24. the company gained an enormous insight by working together with these experienced professionals. hence the energy requirement for the caliber is lower. The company's business model is designed to keep costs down. increasing energy efficiency. By working closely with these institutions. the core collection ranges from 500 . respect. but also their value as a longterm investment.2500 Euro for a high-quality Swiss watch. Frederique Constant secured various patents for its manufacture calibers. all the designs for the Heart Beat Manufacture caliber were properly registered before going to market. Based on its award-winning Heart Beat Manufacture Caliber. Heart Beat Silicium: During two years. increasing energy efficiency: The escapement wheel is accelerated and stopped at each tick and tock of the watch. resulting efficiency gains are fully passed on to the final consumer.800 BpH • Tourbillon Cage individually numbered Exceptional Value: Frederique Constant watches are sold in the 'Accessible Luxury' price segment. more precise and more reliable mechanical watches. Moreover. imagination and passion. Frederique Constant hired three additional full-time watchmakers. • Better friction properties: Lower friction increases accuracy. An escapement wheel without oiling avoids the risk that oil spreads to other parts of the movement. It also reduces loss of energy. the École d'Ingénieurs de Genève and the Horloge Vakschool Zadkine. confirming not just their aesthetic appeal. Collector's Value: Frederique Constant timepieces are in increasing demand by collectors. While other brands substantially increased their prices.
It is important to note that Frederique Constant still has exactly the same concept and positioning. . Vintage Rally Frederique Constant is involved in various classic car events around the world in past years. It confirms the company's belief in the original concept and business model. Aletta and Peter Stas were their own target consumer. These beautiful wooden boats can still be found today. Still. and beautiful detailing. At the same time. these fine mechanical timepieces have been developed with passion to reflect the values and aspirations of today's women. Hence. Pure style for pure passion! Ladies Automatic The Frederique Constant Ladies Automatic Collections have been designed by women for women. this collection represents Frederique Constant's passionate involvement in Runabout events such as Helice Classique on Lake Geneva (Switzerland) and the Concours d'Elegance on Lake Tahoe (USA). Classic and elegant. an exciting limited edition Vintage Rally time pieces was introduced. With a team of highly skilled watch making specialists. the brand started this development back in 2001. Classic Frederique Constant is known for its classical and refined timepieces of exceptional value. but there was no way they could afford a 15'000 CHF watch. Frederique Constant Key Collections: Manufacture The Manufacture Collection is built entirely around the proprietary movements developed in-house by Frederique Constant. This collection has various watches with classical designs. hand-polished shapes. For each of these events. Aletta and Peter Stas were in their early 30's. just married and practically without any assets. more than ten years later. sexy in every detail. various 'Healey' Challenges and La Carrera Panamericana. they were very interested in beautiful and high quality Swiss timepieces. Lake Tahoe and Lake Como. The Runabout Collection is designed to express the classical elegance of the Runabout boats through rounded. gracing the waters of places such as Lake Geneva. Frederique Constant has eleven calibers.FREDERIQUE CONSTANT CASE STUDY Concept & Positioning: From the beginning. Frederique Constant decided to create Swiss classical watches at attractive prices. Now. Runabout Frederique Constant celebrates the legendary Runabout gentlemen's sports boats -first introduced during the Roaring Twenties.by offering an attractive series of limited edition timepieces named 'Runabout'. feminine and sophisticated. No complaints about their salaries. In recent years Frederique Constant was the Official Timekeeper of 'Peking to Paris'.
Keep proportion similar on movements used in our watches between Sellita (60%). Helice Nautique. Love. a passionate organization that brings skills. Supermodel Inés Sastre became global Frederique Constant Ambassador in 2013. Small Complication Chrono and Automatic with rally logo Chocolate Double Heart Beat Automatic. including those related to the heart and children. Frederique Constant is partner of the Only Watch activity to create truly exceptional and one-off pieces to raise funds for scientific and medical research on neuromuscular diseases in general and Duchenne muscular dystrophy in particular. Brand Ambassadors: Frederique Constant is represented in Greater China by brand ambassador Shu Qi. Manufacture (15%) and Ronda (25%) 4.000 (in 2011) to the International Children's Heart Foundation. Eva Longoria and Frederique Constant teamed up for Par Coeur in 2010 in Paris.000 cheque to the American Heart Association during its 2010 Passion Awards for Charity in New York. Slimline. Chrono. Frederique Constant has donated two cheques in the value of US$50. Miss Earth 2010 Nicole Faria is the global brand ambassador for Frederique Constant. patent smart balancing TB. Future Developments: Frederique Constant will continue to expand its main strategies: 1. technology and knowledge to diagnose and care for children with congenital heart disease to developing countries. Experiment on new technologies like silicium or ceramic to learn and have a story to press . Peking 2 Paris. The company donated a US$50.000 (in 2008) and US$75.FREDERIQUE CONSTANT CASE STUDY Frederique Constant Focus: Key Focus Manufacture Uniqueness Since 2001 own caliber development. The company partners with the World Heart Federation on the 'Hearts of Children' campaign as well as a multi-national survey conducted in Brazil. patent HBM. Amour Beautiful Swiss classical models at accessible prices. Focus on beautiful designs and highest quality at sensible prices 2. Other Complications Index case. Her role as global brand ambassador for the Swiss watch brought her to various countries. UK and the USA by the World Heart Federation confirming Half of people incorrectly believe we should wait until age 30 or older before taking action to prevent heart disease and stroke. India. Keep our strategy 'Accessible Luxury' and continue to push for growth 3. value for money Product Heart Beat Manufacture Maxime Manufacture. Venice Healey. Tourbillon. Lake Tahoe. Index. Business Timer Visual Car Driver Runabout Vintage Racing Ladies Automatic Classics Runabout Car Driver Nicole Faria Car Driver Charities: Frederique Constant donates US$50 from each watch sold in its Double Heart Beat Collection to various charities. Panamericana Double Heart Beat. Freebeat Advertising Visual. CIM anker.
37 times by each human living on earth. The brand is potentially seen 1. 9% 8% 36% 7% 5% 34% Global Classic Media Plan 2013: Frederique Constant deploys an international advertising in various media. Spend in 2013 is estimated to be +36% compared to 2012.FREDERIQUE CONSTANT CASE STUDY Global Sales: Frederique Constant intentionally aims to spread its sales worldwide. Below spread is based on turnover 2012. Please see an overview of media covered: .
Watches in India: The watch industry is one of the oldest industries in India and has a rich heritage to boast about. and expand its digital activities worldwide and in Asia Pacific markets in particular. around 60% of the market by value is controlled by organized players like Titan. Please see the Digital Strategy Framework in the annex. By Value around 60% of the market is controlled by organized players. Maxima. American and Japanese brands.FREDERIQUE CONSTANT CASE STUDY Media Type Billboards Campaign Inflight Lifestyle Newspaper Online Watch Magazine Watch supplement # Media 43 5 45 15 20 35 12 175 # Ads 195 15 110 60 60 50 12 502 Reached Audience 36'800'000 1'114'500 10'986'000 9'225'255 9'000'000 1'230'000 5'303'333 Total Audience 7'176'000'000 16'717'500 1'208'460'000 553'515'300 540'000'000 61'500'000 63'639'996 9'619'832'796 Digital Media: Social Media is becoming a powerful mainstream media that needs to be harnessed by professionals in-house. Over the years the growth rate of the watch market has been modest and the penetration level at 27% is still very low. The unorganized players usually operate in the sub 500 price range and distribute their goods through small watch retailer and repairers. Remaining 40% is where unorganized and grey market players operate. Many organized players from India have introduced their own brands/sub-brands in low price segment to counter the challenges from the cheap watches in grey market. Frederique Constant has employed experienced managers in Geneva and Far East to strengthen its regional understanding. HMT and many Swiss. The structure of the market is that of a pyramid with mass segment having the largest contribution. the market is expected to become like an inverted pyramid as the luxury and prestige watch segments are growing faster mirroring the trends in most international developed markets. However the future prospects of the watch industry looks bright driven by favorable demographics and a gradual change from a functional or utilitarian product to a lifestyle one. Currently. Fake watches too form part of the unorganized market and are distributed through popular markets where imported goods are sold. However in the coming years. . Timex.
In next 5-10 years. The attached annexure gives some details of the advertising budgets of various international brands in India. Many of these high end watches are often gold plated. 10% of international brands 20% of Swiss watch market.P also operate in this segment. IWC. was appointed as India Representatives for . Ulysse Nardin. These consumers consider watch brands as a reflection of their own personality. but it had to be re-built since it had been away for a long time. Guess. Frederique Constant. Dior. This structure will mirror most international developed watch markets Swiss watch exports to India were ~USD 35. Tag Heuer.USD 2000 USD 1000 to USD 4000 USD 2000 to USD 6000 USD 600 to USD 4000 USD 50 to USD 100 USD 300 to USD 600 USD 200 to USD 400 USD 4000 to USD 10000 USD 4000 and above 70% market share of the non Swiss watch segment 20% of Swiss watch market. the leading brands are Rolex. One needs to understand that a large percentage of premium and luxury purchases in India are made as gifts for various occasions.000-8. Ltd. There is a huge presence of unorganized players in this segment. since it had been in the country earlier. in 2009 sales grew at an annualized rate of 25% valued at around USD 250 million. Indian consumers have a great need to buy what their peers can recognize. Harry Winston.6 million in 2009. Rado. and not for personal use. designer labels that operate in this segment are Diesel. V. Actually the brand was not new to the retailers. Brands here. the purchaser wants the gift to be recognized for its value. diamond studded and used as left arm jewellery. and a few months later. Few regional brands such as Rochee.000 range. Esprit. the process of brand management started. Omega and Tag Heuer. Omega.FREDERIQUE CONSTANT CASE STUDY Mass Segment: This segment caters to the sub 1. It is obvious that the Indian market is driven by advertising. National players. which appeals to the customer more on the aesthetics and brand association front rather than technology advancement. Tissot. Top 10 Brands in India (as per retailer feedback): Retail Price Range Titan Tag Heuer Omega Longines Casio Seiko Citizen Rolex Audemars Piguet. Breitling. Few fashion brands.000 range of watches. and this has a direct correlation to brand awareness. They use Indian brand ambassadors. examples are. Xylys. Frederique Constant's publicity budget is limited and it is a challenge to stretch the budget. Mid Segment: Brands such as Titan. Retail Interface Pvt. and even have their messages in local languages.I. Cartier. Guess Collection. India is still seen as a small market for Swiss watches. Timex and Citizen that used to cater to the mass segment have increased their offering in the higher price range and thus moved to the mid-segment. Titan and PA Time Industries from the organized market with their brands Sonata and Maxima respectively cater to sub 500 watches within the mass segment. Giordano. affordable luxury to prestige price bands. Obviously. JLC. and are now considered “Indian”. This segment also includes fashion watches in 3. it does have a significant grey market in the luxury and prestige segment. In this situation. Omega and Tag Heuer have modified their advertising to the extent that they have almost no international messages. Patek Philippe. the market is expected to move towards an inverted pyramid as the value share of premium segment will be the highest. Breitling and Breguet USD10 . Police etc. Kenneth Cole. After convincing Watches of Switzerland in Mumbai to accept the brand. Premium Segment: The segment caters to consumers who want to get associated with a brand name that signifies growth and prosperity. Although this segment is largely driven by brands. Montblanc. 10% of international brands 5% of Swiss watch market 30% of International watch brands market 10% of international watch brands market 20% of international watch brands market 20% of Swiss watch market and 10% of international watch market Collectively approx 10% of the Swiss watch market Among the Swiss watches. and therefore the brands that advertise the most normally sell the most. Rolex etc. Tommy Hilfiger. Longines. Frederique Constant in India: It is into this scenario that Frederique Constant entered India in Dec 2009 to try and convince the Indian watch trade to accept this new brand. Analysts expect Indian market to grow to USD 1 billion market over the next 10 years. Seiko. These brands have been in India for close to 20 years. Fossil. range from premium.
Royapettah HYDERABAD Ethos.100 POS (unlikely to be selling Swiss watches) Frederique Constant is currently present in Metro Cities only in 23 POS with plans to grow to 30 POS in 2014 and 40 POS in 2015.Satellite Chennai Helvetica . Sanatacruz Watches of Switzerland. Khar DELHI Ethos Summit. Nariman Point The Collective. Current POS are: MUMBAI Ethos Summit. Lulu Mall Ahmedabad The Golden Time . Madhapur CHANDIGARH Ethos. the brand is today on display at the best retailers in 23 POS (Points of Sale) in 8 metro cities. POS in India: Following shows current situation for Points of Sale in India: 8 Metro Cities . Malleswaram Ethos. Talks are in progress for another 10 POS to be opened in the coming year.CG Road The Golden Time . Ambience Mall. Vasant Kunj Ethos. Worli Helios. The attached annexure gives the names and locations of these POS. Phoenix Mills Popley La Classique. Ambience Mall. Linking Rd. BIAL CHENNAI Zimson. IG International Airport BANGALORE Ethos Summit. It was a slow process but with a lot of persistence.Phoenix Market City Ethos . Select Citywalk. Linking Road. Bandra Swiss Boulevard. UB City Zimson Time.45 POS 25 State capitals . CR2 Mall. Inorbit Mall. Grand Hyatt.50 POS 100 other towns .FREDERIQUE CONSTANT CASE STUDY the brand. Gurgaon Ethos .The Forum Mall Surat The Golden Time . Orion Mall. Express Avenue Mall. Saket The Collective. Atria Mall. Terminal 3. Sector 8C KOCHI Swiss Watch Boutique. Palladium. Mantri Mall Ethos.
and The Frederique Constant Polo Cup. MensWorld. Do a SWOT for Frederique Constant as an International Watch brand in the highly segmented Indian market and state its current positioning and brand equity.Retailers were advised of the publications in which the advertising would be done and their recommendations were also taken for local advertising. India Representative • arun@relationshipsworld. and has circulated an invitation to brands based in the city to become title sponsors for 5 years. This resulted in a dual visibility for the brand. How best could this initiative be leveraged. Polo in India is sponsored by JaegerLeCoultre. 2. This is also a function of Frederique Constant's limited marketing spend. POS promotions . which attracted a very exclusive segment of owners of large corporations. Is there merit in Frederique Constant's clear segmentation strategy to focus on the corporate sector? What attributes should Frederique Constant emphasise to build its brand equity in this sector? 3. and even members of some of India's royal families. The India Polo Association has recently declared Bangalore as a center for polo. With higher advertising spend. Omega and Tag Heuer. Arun Dsilva. The plan is to have another service center in Delhi which will be operational in a few months. and retailers are more than willing to pay. The overall strategy was to address the India Corporate Sector. sales will improve. and no other watch brand is specifically addressing this segment.Frederique Constant has a service center located in Bangalore which is currently adequate for the volume of service needed. Mentor: Mr. Business executives in India have a high purchasing power. Following this. 2. Service Center . 6. The Frederique Constant ranges of classical timepieces are ideally suited for office and business situations. Retailer involvement in marketing.These were selected based on the rates offered and the coverage in the local markets.these were the Chevrolet Golf Challenge which attracts participants for the Indian companies.com . Advertising in leading newspapers . Frederique Constant's objective was to develop a Swiss watch for India .. and also gave the brand an exclusivity which attracted the discerning corporate customers. read by corporate executives. Frederique Constant India Strategy: It was a conscious decision to use influence and innovation rather than money to attract attention in the market. Longines. 5.every newspaper and magazine was advised that Frederique Constant will advertise with them only if they first published a significant amount of PR content. To sponsor some high visibility events . Outlook. and for the first time there is a watch made in Switzerland with indexes written in the Hindi “Devanagiri script”.The magazines chosen were Fortune. all these brands sponsor polo in Delhi and Mumbai. What other options can you recommend to Frederique Constant? 4. Rolex for example collects money in advance. The luxury watch industry is dependent on high budget advertising campaigns. and are very brand conscious.this was unprecedented. Very significantly.FREDERIQUE CONSTANT CASE STUDY Collection: It is a challenge to collect money. This is a significant segment of the consumer base. The LIME Challenge: 1. 7. 4. 3. Advertising in leading corporate magazines .this was unprecedented. 8.Nicole Faria was taken to inaugurate new POS in Hyderabad and Mumbai and also for the finals of the polo tournament in Bangalore. the tactical initiatives are: 1. All leading publications in India.promotions and personalities. Robb's Report. To develop a Swiss watch for India . Retailers in India keep holding money as their cash flow is mostly committed to the larger and stronger brands. and Elle. and for the first time there is a watch made in Switzerland with indexes written in the Hindi “Devanagiri script”. To make advertising conditional with PR .
0 1.FREDERIQUE CONSTANT CASE STUDY Annexure Section: BRANDWISE ADVERTISING SPENDS IN 2012 (Rs 1 Cr = Chf 180000) Brand ROLEX Omega Tag Heur Hublot Breguet Breitling Raymond Weil Louis Vitton Harry Winston Ulysse Nardin Piaget Vacheron Constantin Blancpain Spends (Rs Cr) 30.0 15.0 2.5 5.0 4.0 2.5 6.0 27.0 .4 3.8 2.5 16.0 2.
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