SWATCH GROUP A Timeless Success Dhiego Lopes, Tanvir Taher, Vikas Kumar, Abhijit Dhoipode ( ) Telfer School of Management 1
Swatch - What Comes to Mind 2 Statement Swiss Craftsmanship Innovative Timelessness Independent Class
Highlights 3 Where Swatch wants to Go The Opportunity & Challanges Industry Context Option Analysis Recommendations Implementation & Timeline The Future of the Swatch Legacy
4 Leading Swiss watchmaker top 3 worldwide in the luxury segment Swiss Craftsmanship / Timelessness / A Brand of Success Positive entrance into the smartwatch market (SMART Touch Zero One, Bellamy, TISSOT) Survived multiple trends / Dynamic / Innovative Global Influence / 50 Countries / 36 000 Employees / 18 Watch Brands
Where Swatch Wants to Go 5 Continue Watch and Jeweler Dominance Acquire New Market Share & Growth Smartwatch Innovation and Market Differentiators Segmentation (Aspire to Different Markets)
A Game Changer 6 Smartwatch Wearables Maintaining a Brand Identity in Times of Constant Change Competing with GIANTS
Opportunities 7 New Market Being Developed Capture New Marketshare Grow Sales and Profits Further Propel the Brand Consumer Desire
Industry Context 8 > $23B industry World leaders include: Swatch Group, Richemont, and Rolex China is the largest exporter of watches Apple successfully penetrated the watch market via smartwatches
Option #1: Ride Out the Trend 9 Pros Strong understanding of the current TRADITIONAL market No need to shift manpower or resources to smartwatch division Keep to the status quo Cons Fall behind on the trends and lose ground Lack of innovation is detrimental to Swatch s growth
Option #2: Segmentation 10 Pros Focus and target specific Market Segments Marketing initiatives made easier as a result Diversification reduces Risk Cons Limited specific market potential and growth
Option #3: Smartwatch Focus 11 Pros Market for smartwatches Capture the Trend (early adopter phase) Specific Focus Cons Will lose out on a large customer base by shifting focus from traditional watches Risk of Failure
Option #4: Build the Fort 12 Pros Solidifying the brand Name and Values Promote Quality and Craftsmanship Focus on Marketing and Consumer Desire Cons Resources may be stretched too thin Potential loss of Market trends and Opportunities
Decision Criteria (Good, Better, Best)13 Options Market Share Smartwatch Market Brand Identity Competition w/ Giants! Ride Out the Trend Good Fail Better Fail Segmentation Good Good Good Best Smartwatch Focus Fail Best Fail Good Build the Fort Best Fail Best Good
Hybrid Model 14 Options Market Share Smartwatch Market Brand Identity Competition w/ Giants! Ride Out the Trend Segmentation Best Smartwatch Focus Best Build the Fort Best Best HYBRID Best Best Best Best
IMPLEMENTATION & TIMELINE Hybrid Model 15
Implementation Solidify the foundation in key market segments Swatch Traditional Watches Youth/Everyday Rough/Explorers Luxury
Implementation Youth/Everyday Rough/Explorers Luxury Basic Design Customizable at end user Tough watches for the people on-the-go Classy Design Choose your own style
When to do it? 2016 2017 2018 2019.. Continue. with the roots
Implementations Diversify to keep adept Swatch Smartwatches Youth/Everyday Rough/Explorers Luxury
Implementations Youth/Everyday Rough/Explorers Luxury Water, sand and shock resistant Tough Build Classy legacy design Colored changeable band accessories Rescue Functionality Smartwatch functionalities Fitness activities Relevant travel information (altimeter, air pressure and others
When to do it? 2016 2017 2018 2019.. Continue. with the legacy
Implementations Youth/Everyday Rough/Explorers Luxury Water, sand and shock resistant Tough Build Classy legacy design Colored changeable band accessories Rescue Functionality Smartwatch functionalities Fitness activities Relevant travel information (altimeter, air pressure and others $75 - $500 $200 - $1000 $2000+
When to do it? 2016 2017 2018 2019.. Stay adept. with the consumer demands
Who are we targeting? Youth/Everyday Rough/Explorers Luxury Asia: China, India, Japan, South Korea Scandinavian Countries Europe: UK, France, Germany, Italy, Spain Europe: UK, France, Germany, Italy, Spain, Holland and a few East European nations Russia North America: US, Canada North America Canada Australia and South Africa
Marketing Plan and Budget Projected Marketing Budget 4500 4000 CHF in thousands 3500 3000 2500 2000 1500 1000 500 0 2016 2017 2018 2019 2020 Year On-line marketing (YouTube, social media etc.) Celebrity Endorsements Guerilla marketing (Subways station digital screens) Traditional Marketing (Magazines, billboards etc.)
Marketing Plan! Sponsor big-event countdowns New Years Eve, Olympics (worldwide) Superbowl (US) Canada 150 (Canada) Spread the word! Billboards Graphical advertising and not textual Key-Location Kiosks
Marketing Plan! Online Campaigns YouTube videos Facebook, Pinterest, Twitter, Instagram Spread the word! Targeted advertisements Google AdWords, Guerilla Marketing
Reinvigorate the net income
Don t forget Old is gold Year Type Percentage of Revenue Sales (Billion USD) 2012 Small Watch 94 22.9 Others 6 1.46
Expected Market Growth in Smart Watches Expected Market Growth 80 70 Expected Market Growth 60 50 40 30 20 10 0 2015 2016 2017 Year
Future Focus 31 Enhance B2B partners relationship Powered by Swatch Expand B2B Customer Base
The Future Ahead 32 Timelessness Values Brand Desire Swiss Craftsmanship Market Leader
THANK YOU 33