QUESTION

For many years, a number of Swiss watch manufacturers dominated the watch markets
throughout the world. Their standard marketing mix was a range of good quality, well-
designed watches that were primarily sold through jewellery stores at premium prices.
However, the emergence of cheap digital technology severely cut into their marketing
success. Today, a key part of the watch market belongs to low-priced ($10 or less),
unbranded digital watches (which can even be bought at convenience stores).
• As a competitive response, a number of these Swiss watch manufacturers decided to
introduce their own range of cheap digital watches. To protect their brand name, they
produced these new products under a new brand name. And to be able to distribute
cheaply, they decided that they would utilize their traditional jewellery store distribution
channel.
• Discuss the Decision in light of Branding Strategy if this is a good move or not & why.

THE POSSIBLE ANSWER

 First, the target market of the Swiss premium watch’s companies and cheap digital
watches companies was different.
 So, if the company who render the premium services to the one specific target
market, taking that specific Brand recognition and image for another target market
may be dangerous in terms of losing the customer satisfaction via disruption of the
social status and recognition and niche Target market
 The SWISS company we can say the RADO wants to enter the cheap digital watch
market, have to establish the sub-brand.

To achieve the customer value in the positive number, RADO can set up the sub-brand for
cheap digital watches.
The inclusion of the RADO name for the advertisement is useful in terms of creating the
sense of the premium Ness and quality products, one can take the example of the
Hasselblad camera. They are very expensive and the niche focused company, but now to
target the more market via diversified business they had collaborate with the Oneplus
phones. To innovate & design the camera for the Phone. Oneplus Uses the high social
recognition of the Hasselblad to convince the customer.

The reason they had not gone for the sub brand is that Hasselblad in his Industry focus the
upper class of the society, same goes with the Oneplus, they also focus the upper section of
the society. Due to this imagery and judgements of the Hassle Bald doesn’t Detroit.
Suppose if Hasselblad goes with Realme and Nikon Goes with APPLE for their camera.
Did after that Hasselblad be able to sustain their same brand image as before?
Brand imagery will always flow in the synchronization with the Perception of the Audience.

NIMITZ-
BRAND NAME: - Nimitz
TAGLINE: - “Engineered by RADO”
TA: - Economical class.

Current market products and services: -

 Cheap price
 Low quality.
 High chances of default products due to less operational excellences.
 Less after sales services available.
If RADO as a Nimitz wants to enter in this market: -
They had to achieve the positive customer value
 Reasonable price
 Recognition of the RADO under Nimitz
 Low chances of the default products due to RADO’s operational excellences.
 High after sales services by RADO had to give.

Even in this Target market, RADO cannot follow the low-cost leadership strategy as they can
do it easily but they had to think about their Brand premium Ness that through the
marketing audience had perceived. (AS IT WILL DETRIOT THE BRAND IMAGERY).
RADO should set the price above all those cheap brands but near to those brands to create
the Consciousness of the premiums of the RADO via Nimitz and the Space to give company
to render the high-quality services to sustain in the market for the long term in the field of
cost management.
 CBBE MODEL OF NIMITZ

POINT OF PARITY

 Quality.
 Durability.
 Convenient Services.
 Value of money.

POINT OF DIFFERENTIATION: -

 Elegant design.
 Boldness and Masculine as a Brand personality.
 Social Status.
 Community attachment.
 High performance watches.
 What is left
brand association
 Distribution channel.