THE SWATCH

Group 1 Section B
19063-Abilash
19068-Anat C Thomas
19078-Emani Nagi Reddy
19080- Hari Priya Gadiraju
19082- Impana D P
19104-Rohith N
19113-Sowmya CH
 INTRODUCTION
• Switzerland has always dominated the watch market especially the luxury
segment. But what push the Swiss to restructure their industry is the
middle segment with the apparition of new technologies of the electronic
watch that costs less to produce. 
• The Swiss market position changed dramatically with the of many
manufactures in the USA, Japan & Hong Kong that begin to gain share
market especially with the electronic watch.
• 1967: The Swiss were the first to introduce a model of an electronic watch,
but they dismiss this technology because all the industry was programmed
on the mechanical model.
 
• The begin of crisis in the Swiss watch industry causes by the
competitiveness from the far in 1980,The market share of the Swiss
company fallen from 56% in 1952 to 20% in 1980.
• Swiss dominated the watch segments based on older technologies, at the
same time the electronic watch gained widespread acceptance.
• In 1979 the first watch was launched with Delirium movement and ETA
had its first success in a long time.
• Thomke decided to focus on the top and the bottom segments and leave
the middle market for Seiko and citizen.
• Technologies like CAD/CAM, robotics was used which was most
advanced in the world. The watch was positioned as a high-fashioned
accessory and  company introduced ladies’ line of watches with 12 models.
SWATCH
MARKETING MIX
 SWOT

Strength Weakness
Dominated in luxury segment. Dependency on older technology.

Opportunities Threats
Growth in global markets. Global competition
NEW PRODUCT DEVELOPMENT

Phase 1: Opportunity Identification and Selection

• World watch production had grown from 61 million to 320 million pieces and movements
annually.
Phase 2: Concept generation
• High value with low cost
Phase 3: Concept evaluation
• Formulated Delirium project with objective to create worlds thinnest analogue quart
Phase 4: Development
• Technical: The new product design and production technology reduced the cost significantly and
raised product quality above watches in the same price category produced by conventional technology
• Commercial: First in a long time by selling 5000 pieces at an average price of $4,700 with top model
retailing for $16,000.
Phase 5: Launch
• The swatch was officially introduced in Switzerland on 1st March 1983.
• During the first four months 25,000 Swatch pieces were sold and around 70,000 pieces were sold for
the first 12 months.
 PRODUCT INNOVATION CHARTER
Background –
Eta was at an all-time low due to the prolonged period of market share losses and continue
dismissals of personnel. Global competition and weakened position of the swiss led to
series of failure. Ernst Thomke and his team working for successful turnaround.
Focus- Delirium project was formulated to produce high quality products with low price and
product innovation( capture the higher and lower market segments).
Goals-
-To boost the employee morale.
- To bring cost under control and sustain in the market.
Guidelines
-Innovation- To produce world’s thinnest analog quartz movement.
-Encourage employees to express their ideas.
RECOMMENDATIONS
VALUE CREATION