Question1Why was the Swatch so successful? In what ways was the Swatch different than any watch the industry had ever seen? First, swatch is different from other watch industries because their production process is in Switzerland, where labor costs are very high. To solve this problem, direct labor costs are less than 10% of the total cost of manufacturing. In addition, they reduced the number of individuals from 92 to 51 in three major changes in their production technology, which reduced costs. Another difference is that the sealing device, which is made of cheap plastic that has created a controversy, because the Swiss watch industry has always been know of the highest quality materials used, the design is very different from other watches industry, they sell the design of the product with a witty, use strong colors, arrogance, this is because a lot of other brands of a change to distinguish between traditional watches with soft color C. The design is numerous, four times they have to collect the need, so in these elections they choose the best model, which is much better for other companies. From traditional differentiation is their sales limited edition of 120 watch watch industry, carry the same price, and ´ T achieve highly profitable at the same time, brought a lot of great publicity in the media. They look at first production and introduce incense to the first. Price is the competitive advantage of other brands, not because it is cheap, but it has the same price over ten years of production. Increase, the price is relatively cheap, considering this is a Swiss watch. The news of the swatch is different because they use unorthodoxpromotional stunt, they spend on swatch ´ advertising 30% of retail prices. They also have a swatch collectors’ club, where the exclusive collector does not read each year.The retail approach is different, too. They avoid traditional watch shops and are always jewelry stores. Instead, they tend to product it ´ gauge store fruit market or miniboutiques focus on brand. This last store has increased a lot, from 1992 to 27stores worldwide. Also different is its marketing ´ dispersion and concentration of manufacturing. Finally, more important is the difference between a ´ unique information, they have. They try to sell emotional products. Their advantage is that it is a product that can live with customers. Question2Prior to the introduction of the Swatch, what kinds of watches were popular among consumers? In what ways was Swatch different from a Timex, or from Seiko? How did consumers make buying decisions? The Swiss watch industry has the ancient tradition, in the world market for decades, meet a series of consumer demand, from precision to design, from luxury to grade, watch price range from $ 100 to $ 500000. But in half a century, there has been been little change in the design of the Swiss watchmaker. It is still aimed at conservative, affluent consumers,But in the 1970s and 1980s, a storm swept through the Swiss watchmaking industry. The $ 10 billion watch market has shifted from traditional Swiss companies to new businesses represented by Timex, Citizen, Seiko and Casio. Especially the development of digital watches.The hawk took office, the premium consumer market was shrinking. The Swiss watch industry, which accounts for 90 per cent of the market, has lost its growing mid-range market. As for the low market, Swiss watches under 100 Swiss francs are not produced at all.Swiss watch.It’s style and style. Instead of worrying about making cheap watches, he asked consumers what they expected of them.Therefore, to design a unique product, it delivers unique information to consumers: “high quality, low cost, excitement, and life interest.” He began to inject emotion into his watch, making it not only a high-quality product, but also a flavorful, likeable ornament, like an earring or a tie.Manufacturers and sellers are doing their best to make swatch a real part of people’s lives.It has the outstanding advantages of waterproof, shockproof, accurate timing and reasonable price. The watch is especially suitable for mass production and has rich color selection. Swatch, a young, innovative wristwatch made exclusively in Switzerland, has become the perfect symbol of passion, excitement and life.Swatch keeps rolling out new watches every year, designing creative ads to stimulate consumer interest so much that people are anxiously waiting for new products to emerge. Many people have more than one swatch watch because they want to wear a different color watch at different times and on different occasions. Swatch’s strategy has led many interested customers to flock to new fashion watches.For consumers, a swatch watch is a souvenir, a piece of history, a piece of art. Fashion is for an its fashion focus on consumers. Fashion is fashion, because no one is trying to develop its meaning further. the consumer, and then it constantly updated the concept of the fashion watch. Question3What elements of the original Swatch marketing plan were most critical to the brand’s success?Do you agree with the original product/channel/promotion/price strategy?Given the huge demand for Swatches (particularly for certain models), did the company make a mistake in not raising the price for some of its styles? 4P elements of the rational useProduct: Target Market Shift From high-end watches only to full-scale mid-to-low end markets and to the production and sale of fashion watch accessories. When Hayek took over, the Swiss watch industry accounted for 97% of the global market for high-end consumer goods, at the expense of the lower and mid-market – less than $ 100 in watches. Due to the impact of low-priced watches in Japan and Hong Kong, the high-end market is gradually shrinking. Subsequently, Hayek follow-up strategy to go boldly into the low-end market, producing fashion watches for less than $ 40. Swatch segments the target markets in the low-end market (targeting 18-35 year-olds as consumers), targeting young and trendy brands through high quality, advanced design, vibrant colors, simple structure and not simple, Materials, simplified packaging, high level of automation, low cost implementation of product differentiation, a firm foothold in the low-end market.Price : Cheap- Made in Switzerland, the Swatch shell is made entirely of synthetic material, the movement is loaded directly from the front of the watch without the need to retain the back cover, the watch becomes thin and light, and can enter the assembly line Mass production ensures low-cost sales on the market, ranging from tens of dollars to hundreds of dollars, and in any country, the price is within the acceptable range of consumers. These 5 products are of good quality, light weight, and have a variety of functions (such as waterproof, shockproof, etc.), bright colors, bold, diverse, full of youthful vigor and vitality. ? adhere to the local assembly in Switzerland ? improve production processes, reduce labor costs ? simplify components without compromising quality ? use of cheap plastic packaging ? high quality standards, strict quality controlPlace: Swatch has taken an anti-traditional approach to retailing, bypassing jewelery stores and watch stores, but has created many anti-traditional sales craze. For example, the series of vegetarian swatch, the watch on the sale of fruits and vegetables store; in the department store, SMH also tend to swatch away from the jewelry counter place, and choose the store system or Swatch franchise stores. Swatch also opened a number of independent franchise stores, these stores are licensed franchise, are set up in the high-end fashion blocks. The operating costs of each store are about 1.5 million US dollars, selling a limited edition Swatch. As a result, these stores are often packed with customers who are eager to get a limited edition swatch. By 1992, swatch opened 27 such franchises throughout the world. These distribution methods allow Swatch to better implement its marketing plan, better understand local customer needs and better develop new products.PromotionEmotional marketing: Swatch For consumers, a souvenir, a history, a handicraft, its network marketing is a consumer-focused competition form, for customers, retain customers, expand customer base, establish intimacy Customer relationship, analysis of customer needs, create customer needs.Hunger marketing: Swatch broke the watch’s simple timing function, a new interpretation of the concept of time, not only in style, but also by limiting production, collectible value and appreciation potential, regular auction, membership club system regulation supply and demand, manufacturing demand The illusion of maintaining the high price of goods and profit margins.Propaganda and Promotion Media: SMH promotes Swatch by spending about 30% of its retail revenue on advertisements, which is twice the industry average. Through TV commercials, outdoor shows and street dance events, it invites celebrities to promote and create Clubs and other ways, highlighting its brand positioning, to communicate with consumers its young, fashion, vitality and other spiritual content.