The rational use of 4P elements.Product target market transfer: from only high-end watches to the middle and low-end market, and extends to the production and sales of fashion watch accessories. When Hayek took office, the Swiss watch industry accounted for 97 per cent of the world’s market share in the high-end consumer market, at the expense of the middle and low-end markets — watches that were below $100 were not produced at all.
Due to the impact of low price watches in Japan and Hong Kong, the high-end market is gradually shrinking. Hayek followed suit, boldly going into the low end of the market and producing a fashion watch that cost less than $40. Swatch in the low-end market segmentation of target market (consumer groups positioning for 18 to 35 years old young man), main young, fashionable brand, through the production of high quality, advanced design, colorful, contracted and not simple structure, material, modified processes simplified packaging, high automation level and the low cost way to implement product differentiation, rapidly gain a foothold in the low-end market.Price (Price), made in Switzerland, cheap and fine quality Swatch shells are all made of synthetic materials, machine directly from the positive load and no longer need to keep watch back cover, watches became both thin and light, can enter the flow line production, ensure that the low Price sale on the market, from a few dollars to hundreds of dollars, no matter in any country, the Price of the consumers in the acceptable range. These products are of good quality and light weight, and have many functions (such as waterproof, shockproof, etc.).
They are bright, bold and diverse, full of youthful vigor and vitality. The company insists on improving the production process in Switzerland, reducing the labor cost and reducing the quality of the parts without compromising the quality.The Place Swatch has adopted an anti-traditional retail channel, eschewing jewellery shops and watch shops, but has created a lot of anti-traditional sales.
For example, a vegetarian swatch series, which sells watches in a fruit and vegetable store; In department stores, SMH also tends to keep the swatch away from the jewelry counter, opting for a sub-store system or a swatch franchise. The Swatch also runs a number of independent franchises that are licensed and operated in upscale fashion districts. Each store costs about $1.5 million and sells limited edition Swatch.
As a result, they are often crowded with customers eager to get a limited edition of swatch. By 1992, the swatch had opened 27 such stores around the world. These distribution methods enable Swatch to better realize its marketing plan, better understand local customers’ needs and better develop new products.Promotion (Promotion)1, emotional marketing: Swatch for consumers a souvenir, a piece of history, a handicraft, the network marketing is a kind of to consumers as the focus of competition, win customers, retain customers, expanding customer base, establish a close relationship with customers, customer demand, to create a customer demand analysis.2, hunger marketing: Swatch broke the watch simple timer function, the new interpretation of the concept of time is not only design, but also by limiting production, collection value and appreciation potential, regular auction, VIP club system control the appearance of demand and supply, manufacturing in short supply, maintain the high price of goods and profit margins, etc.3, publicity and promotion media: SMH promotion way of Swatch is used for advertising, about 30% of the retail revenue is twice the industry average, through television advertising, outdoor exhibition, sponsored street dance activities to invite celebrities to promote, founded the club and so on, highlight its brand positioning, communicate to consumers the young, fashion, vitality and spirit connotation.