Introduction
The clock industry has changed significantly since the introduction of clocks in the 14th century. First, the clock industry developed mechanical clocks, which then evolved to pendulums in the late 1650s. Interestingly, the first wristwatch was developed in the late 1860s as a gift to a countess in Germany. For a decade thereafter, watches were designed purely as gifts for women. Today, there are various smartwatches that have incorporated technology to further advance the industry.
Importantly, the field has been affected by various factors, such as the introduction of mobile phones. Sonawane (2018) notes that since mobile phones have the ability to tell time, people no longer rely on wristwatches. Luxury watch brands have ensured people do not use watches purely for telling time but also as outfit accessories. The survival of the industry has been significantly supported by other industries such as mobile phones and even yachts. This essay presents a marketing plan for a luxury wristwatch known as Reggie’s Luxury Wrist Watch.
The Product
As mentioned, Reggie’s Luxury Wrist Watch is a classy high-end wristwatch. The watch has several attractive features. First, it has Bluetooth and allows connections with both android and iOS. Darmwal (2015) notes that luxury watches today only connect to one of the two software. Thus, mobile phone companies have had the upper hand in designing luxury watches that pair with their high-end mobile devices. Reggie’s Luxury Wrist Watch will bridge the gap, allowing the company to target a wider market. It is important to also note that the Bluetooth connection can also be paired with Windows and Mac laptops and computers. Again, this broadens the market the company is trying to reach. Critically, users can play their music and even share documents and other materials using their luxury watch.
A second feature that makes this product unique is its mechanical movement. Ali and Frahat (2017) reveal that the first clocks and wristwatches had mechanical movements. This made them significantly expensive. To ensure that middle and lower-class families could afford wristwatches, companies began to use the quartz movement (Ali & Frahat, 2017). Arguably, although watches that have been made using the quartz movement are affordable, they rarely last as long as watches that have been made using mechanical movements.
It is also important to state that the mechanical movements used to require time and precision. Thus, the manufacturing of these watches takes a longer time than those of the quartz movement. Although the movements are outsourced, the company takes time to modify them to ensure they are unique and original. The process of modification is highly guarded to ensure that clients can also easily identify fake and original Reggie’s Luxury Wrist Watches.
Notably, the watch is made of grade 5 titanium. This is the highest level of Titanium in the market. There are two reasons why the material was selected for the product. First, the material is expensive and hard to purchase. This makes it harder for people to make duplicate fake Reggie’s Luxury Wrist Watches and deliver them to the market. Such an event would not only ensure that the targeted market distrusts the company due to the poor quality the fake watches would have, but it would also negatively affect sales and profits. Secondly, the material is very stable, strong, and hard. This feature is important for any luxury brand as it ensures durability. Uggla (2015) explains that the amount of money used to both produce and buy luxury wristwatches should ensure that the watches last for a long time.
As mentioned, people use wristwatches as accessories these days. Due to this, the brand has several colors that the target market can choose from based on their preferences. Additionally, the availability of different colors ensures loyal consumers can buy different colors of the same brand. The available colors are red, black, gold, blue, grey, and silver. The colors were decided based on market research that was done among the target market to understand what they wanted in a watch. Other factors that were considered during the launching of this specific brand include the price, decoration, crystal, and strap. It suffices to note that the watch has both male and female versions, and the straps have been designed with gender in mind. Both straps, however, are light and medium width.
Situational Analysis
SWOT Analysis
The SWOT analysis comprises a discussion of the strengths, weaknesses, opportunities, and threats of the suggested product.
Strengths
The brand has several strengths. The first is the fact that Reggie’s Luxury Wrist Watch can connect to both android and iOS phones using Bluetooth. This is important as it allows the owner to leave other devices at a secured place and use only the wristwatch. For instance, if the users are going to the gym or on the run, they can still answer their phone, check their messages and listen to music through the watch.
As mentioned previously, the watch can also connect to both Windows and Mac computers. Additionally, the mechanical movements of the watch can be described as a strength as it ensures the watch lasts for a long time. The durability of the watch is a strength as it is a critical element used to attract clients. Uggla (2015) explains that people who buy luxurious watches also desire to own a collection of such pieces. The durability angle ensures Reggie’s Luxury Wrist Watch lasts in such collections.
Notably, the uniqueness of the watch makes it a crucial product for many people in the target market. As stated, the company buys the movements from a supplier but then modifies them to make them original and unique. This strength ensures that clients can easily confirm whether a purchase they want to make is genuine. It is difficult for any person to copy the modified version of the movements as the formula is kept secret. The uniqueness of the watches also makes them special. This is because there are very few companies that use modified movements in their products. Critically, the strengths discussed can be exploited to ensure the company gets as many clients as possible. This will, in turn, raise the company’s profits and popularity among the target market.
Weaknesses
One of the weaknesses of the product is that it takes a long time to manufacture. This is due to the overall design of the watch. For example, the modification of the movements takes a significant amount of time. Additionally, the placement of the different elements and the final casing using Titanium grade 5 also take significant periods. Currently, the company has not put in strategies to make this process last a shorter time. This is because the company has few clients at the moment.
A change in strategy that will ensure more people know about these luxury watches can, however, increase the clientele. It is arguable that such a strategic move to add more clients will also prove difficult due to the time needed to make these watches. Oakley (2015) explains that people who shop for luxury watches often prefer to pre-order. Using this strategy of pre-ordering will make it easy for the company to tackle this weakness.
The second weakness of Reggie’s Luxury Wrist Watches is its use of titanium grade 5. Titanium is mined from the earth’s core, and there have been debates on the impact of mining on the environment. One reason why mining has been deemed harmful to the environment is the fact that it increases the level of high metal on the upper soil (Darmwal, 2015). In turn, the metals pollute rivers and lakes when it rains (Darmwal, 2015). Additionally, this affects the ability of the land to be used for agricultural purposes. A second reason why mining is shunned is the fact that the disposal of by-products that are also collected during mining has been ineffective, leading to more pollution.
Opportunities
Despite the weaknesses identified, the company has a lot of opportunities tied to Reggie’s Luxury Wrist Watch. One opportunity is to incorporate more technology in the product, particularly GPS. Currently, this is not a feature in any of the company’s watches. An advantage of having GPS on the watches is that the user can be able to tell the location at any time. Additionally, the link the watches already have with phones and laptops through Bluetooth can enhance the GPS app as users can easily share their location from their watches. On the same note, the company has an opportunity to introduce other relevant apps and technologies to the watch. For instance, goal fitness apps, mileage apps, and even self-locator apps can be accommodated in the software of the watch. It is important to note that the apps add value to the wristwatch, therefore, can be used to attract more clients.
A second opportunity is the use of silicone instead of titanium on the watches. Sonawane (2018) explains that environmentalists have agreed that silicone is much safer for the environment than plastic. The main ingredient of the material, silicon, is made from sand. It is arguable that sand mining does not have as much effect on the environment as titanium mining. Additionally, the sand that is used is very little compared to the amount of titanium that is often mined. Despite this being an opportunity, the company should still consider other materials for use. It is arguable that the swap from titanium to silicone will not affect the quality of the product. Indeed, as Uggla (2015) notes, some of the world’s most expensive watches are made from silicone.
Threats
The mentioned issue of environmental concern over mining is a threat to the company. A majority of the materials that are used in the outer cover of watches are mined. Even the suggested sand has to be mined in order to get the silicon. Environmentalists are also not fully convinced that silicon is the better option, even though they agree that it is better than plastic. Additionally, the manufacturing of the final product, regardless of whether the material used is silicone or titanium, is not friendly to the environment. There have been many concerns shared over the years on proper disposal of waste in factories, such as the ones that make the silicon or titanium grade 5. The company will be held liable for the environmental degradation based on its association with the companies that mine their materials.
Another threat to the company is the fast growth of the mobile phone industry. Currently, there are several companies that already have these smartwatches. The growth of the industry has also encouraged competition, with more mobile phone companies seeking ways and investments of getting smartwatches. This is a threat due to the fact that Reggie’s Luxury Wrist Watch also aims to partner with mobile phone companies. However, this might be a challenge considering that many will soon have their own smartwatches. One way the company can curb this threat is through value addition.
The company can convince mobile phone corporations to partner instead of making their own watches due to the aesthetics, classy design, and additional apps that their clients will have access to. Secondly, the company can target consumers directly by showing them that the watch can pair up with different brands. This means that if one has an Apple phone and a Windows computer, their luxury watch will still be able to sync and pair with the two.
PEST Analysis
Political
One of the main political concerns that affect the watch industry is uncertainty in regard to political goodwill. Currently, the leading country in terms of imports of any kind of watch is Europe (Sonawane, 2018). However, due to the Brexit issue that is yet to be resolved, many people in the target market are focused on other things. This is expected to continue for the next two years as countries make political decisions regarding the issue. Political goodwill is needed anywhere in the world for the business to succeed. It has proven difficult for the company to also set up different location stores in some countries due to lack of the mentioned goodwill.
For instance, a plausible target market would be UAE, as a significant number of clients looking for luxury watches lives there. However, getting into the UAE is difficult due to the measures put in by the governments in those countries in regards to international businesses.
There are several things that can be done to lower the risks associated with the mentioned political issues. First, the company can begin targeting other countries that have more stable policies and steady political goodwill. The focus on Europe should be minimized as there is not much the company can do about the Brexit situation. However, this does not mean that the market in Europe should be ignored. Secondly, the company has to consider all political situations in regards to entering new markets and prepare strategic plans for each market. This will help in attracting more clients despite the challenges posed by individual governments. Issues of new market entry should be planned accordingly to also avoid any backlash from the targeted governments.
Economic
Despite the steady growth of the industry, it is arguable that the target market is significantly small compared to the larger population that loves watches. The target community of Reggie’s Luxury Wrist Watch is wealthy, with a strong preference for a certain type of class. Notably, the largest majority of the world population is not wealthy. This means that the company is not tapping into the larger population that would also have loved simpler and more affordable designs.
Arguably, the economic crisis in many of the countries today also affects the industry, thus, the company (Uggla, 2015). The political angle ties to the economic one in the sense that many countries that are either unstable or in the war due to politics cannot be targeted at the moment. Additionally, issues such as the previously mentioned Brexit have affected economies of the target market.
Again, there are several suggestions that can be made in regards to how the company should deal with the mentioned economic issues. First, the company can consider targeting the larger population with affordable pieces. This can be done through the creation of a different line for the new target market. Affordability can be enhanced through the use of cheaper materials and movements. It is crucial that the company brand the two product lines differently and effectively in order to maintain its high-end clientele.
The issue of affordability should also be considered in regards to the new markets. It is arguable that some markets are harder to penetrate due to the high costs of the product. The management has to consider issues such as taxes when setting up shops in these new markets. Partnerships with locals can help lower taxes and also encourage people to buy the watches.
Social
One of the main social concerns for the product is the availability of its raw materials. As explained, there are several critics who have argued that the clock industry is contributing negatively to the fight against global warming. This social aspect ties very closely to the environmental one. The argument is based on the fact that the current raw materials the watches are made of are mined. Such groups of environmentalists and lobbyists can impact country policies on both the mining of precious minerals and the uptake of products with the minerals in their markets.
Despite the challenge, it is arguable that the number of people looking for classy and timeless wristwatch pieces is growing. As stated previously, the industry has seen steady growth over the last few years. More people have started appreciating having unique pieces that they can also pass down to younger generations. Additionally, the uniqueness of products has boosted market clientele as they see their wristwatches as special compared to other competitor’s watches.
Reggie’s Luxury Wrist Watch should take advantage of the positive social element to gain more clients across the world. This can be done through highly targeted marketing. The use of digital platforms can make marketing of the product efficient in different parts of the world. Additionally, the company can curb the challenges of the social element using positive corporate social responsibility activities. For example, the company can support the proper disposal of titanium after its mining so as to reduce the harm the process causes to the environment. All these activities have to be done as part of preserving the core business of the company.
Technological
The growth of e-Commerce can negatively affect the sale of Reggie’s Luxury Wrist Watch. The company does not currently have a website or webshop that clients can go to and order. This is a deliberate decision as the majority of the company’s clients are reached through email and personal calls to introduce new pieces. There are several benefits that the company will get with the set-up of a webshop. First, the company will be able to easily advertise its products.
Social media and other digital platforms have made marketing much easier for companies. Additionally, digital marketing is cheaper compared to the traditional marketing that the company is currently using. The company will be able to save more money as the operating costs associated with marketing will be reduced. It is also crucial that the company sets up a webshop as it will allow new clients the time to browse through the company’s pieces at their own pace.
Additionally, technology changes fast, and the fact that the company uses different techs on the watch makes it very costly to keep changing. Whereas this provides an opportunity for the company to design and manufacture new watches constantly, it can negatively affect the relationship the company has with its clients. One way of curbing this is through the use of updates. Allowing the applications used in the watches to keep updating themselves will ensure that clients are not bothered by the outdated technologies in their new watches. Additionally, the company has to ensure that the security levels of the watches are up-to-date to ensure that pieces cannot be hacked. A breach in the security of the pieces can be catastrophic as they are constantly linked with the users’ other private devices.
Identifying the Segment
There are several factors that the management of Reggie’s Luxury Wrist Watch has to consider when trying to identify the market segments. First, the company has to develop a list of the possible market segments. These segments can be characterized by lifestyle, desire to buy classy watches, interest in new things, and even availability. The list should be as comprehensive as possible to ensure that the final segments cater to all types of possible clients. Secondly, the company should filter the list to the ones who are most likely to purchase Reggie’s Luxury Wrist Watches. Ideally, the other segments should not be discarded, but a different discussion on how to tap into those markets should be held to ensure the company gets maximum profits. This can be done through the design and development of new product lines that specifically target the needs of the segments that were filtered out.
The two discussed steps should help the company come up with one market segment that they want to capture. This can then be further narrowed down to a potential client. This would be the ideal client that the product is made for and who would not mind buying the watch. Although the wider segment is crucial, it is important for the company to identify the potential client in order to shape the marketing plan accordingly.
Notably, after the exercise has been done, the company should carry out comprehensive market research to ensure the right segment was selected. The market research will also help the company identify potential opportunities and challenges that might have been overlooked during the internal identification of the market segment. Thus, one can argue that the market segment of Reggie’s Luxury Wrist Watch is extremely wealthy people interested in watches.
Identifying the Target Market
Defining a target market will help the company come up with the right advertising strategies, additionally, it allows the company to reach out to the right client with the potential of buying the product. In order to do this, the company has to first start by analyzing its current customer base. This is important due to two main reasons. The first is that the analysis will help the company identify the characteristics of its potential client. Secondly, the company will also be able to understand the marketing needs of their potential client. It is arguable that the process will identify gaps in the client base that can be addressed by comprehensive target market research.
After this step, the company has to consider the target market its competitors are concentrating on. This can be done easily through digital platforms. Although the management might not get highly detailed reports on the target market its competitors are concentrating on, the information is still relevant to ensure they have captured a majority of the clients.
A deeper analysis of the product and what it seeks to communicate and achieve is also critical in ensuring the right target market is captured. The analysis should also include any future opportunities the project has to expand the target market. Additionally, specific demographics should be used to identify the target market. Using these steps, one can argue that the target market is interested persons who place high value in timeless wristwatch collections and who have disposable income easily to purchase the pieces.
Identifying the Positioning
The analysis done on the competitor’s target market opens up the idea of market positioning. This is an important element in the marketing plan as it allows the company to put down strategies to set it apart from its competitors. It is important that the company choose one point of reference for this activity to ensure the management does not get distracted. Arguably, there are very many direct and indirect competitors in the watch industry.
Arguably, the company should only focus on the closest rival to make the best positioning statement and report. After this, the company has to determine the section of clients that have had the best experience with their products. This brings in the importance of proper documentation of the processes and also feedback from the clients. The identification of the best-served clients should notify the company of things they have to change in regards to consumer relations as well.
Additionally, the management has to find a general spot in the competitive landscape. The analyses done up to this point are enough for the company to determine how it places compared to its competitors. An evaluation of the decision reached should then be done to ensure that everything has been captured correctly. The evaluation can also include market research to validate the findings that have been realized.
The Four P’s
Product
As mentioned previously, the product has several features that make it unique. For instance, it uses a durable and attractive material for the outer casing. Additionally, the strap and size of the watch are designed for both men and women. The use of durable material is critical in the industry of luxury watches as clients prefer watches that last a long time. As stated earlier, this preference arises from the fact that many luxury watch owners also have personal collections of wristwatches they have had over time. It is important to note that the material used by competitors is also highly durable. However, the titanium grade 5 that the company uses is aesthetically easy to manipulate as well. This makes the watch durable and highly attractive. The use of this precious metal also sets the company apart from competitors who use other materials.
The product also incorporates the use of technology. It can be linked to other personal devices owned by the user at all times. This link can be done through Bluetooth. Therefore, the user can answer his or her phone, check emails and messages and even send out invoices from the watch. The additional fact that the watch can be paired with any type of device sets it apart from the rest in the market. This means that the owner can have different brands of personal devices but still operate them through this wristwatch. The product allows the installation of various applications that the client might desire as well.
Price
The retail price of one Reggie’s Luxury Wrist Watch is set at $6,000. It is important to note that there are several issues that are connected to the price of a product. This price was arrived at due to the amount of money used in the manufacturing of the watch, the marketing costs, and the general look and feel of the piece. Arguably, the watch is expensive for many people. However, the target market and segment are able to afford it due to their own desire to collect and wear such a piece. The issue of cost used to manufacture the product is very important as it also communicates how much value the company puts on the watch. From the titanium case to the modified movements, the company ensures that the piece is not only timeless but also irreplaceable. It is this factor that makes the watch expensive.
The issue of marketing also affects the price of the watch as the company currently uses a lot of money to reach the target audience. Indeed, this marketing plan suggests that the company start relying on digital advertising to lower the overall marketing costs. This will ideally affect the retail price of the watch as well. In fact, the pieces might become slightly more affordable if the marketing costs are reduced. The company does not currently offer a wholesale price for the pieces. This is due to the fact that it is yet to partner with any distributors who might require such prices. Indeed, currently, the company sells directly to the client.
Place
As mentioned earlier, the company has several physical locations where current and potential clients can visit and sample their pieces. Additionally, the company has a factory where modifications of the movements and the assembling of the watches are done. The physical locations are made up of offices and storage units for the watches. Due to the high value of the pieces, the locations with storage units are highly secured to ensure no issues of security are experienced. It is important to note that the company is actively seeking to expand to other markets around the world. This will mean that more physical locations will be set up when these markets are penetrated.
As stated earlier, the company does not have a webshop. This is a disadvantage considering the fact that e-Commerce has significantly grown over the years. A webshop has several advantages the company is currently missing out on due to lack of the same. First, it makes advertising easier and cheaper. Digital marketing can help reduce marketing costs associated with the pieces. Additionally, through the webshop, digital marketing can reach a wider target market across the world. Additionally, the webshop makes it easier for clients to browse through the pieces offered by the company. It is notable that a majority of the people who buy luxury watches also desire to trust the company they are buying from. They can do this easily by going through the company’s official website and webshop.
Promotion
There are several activities that can be done to enhance the promotion of the product. First, the company can offer a discount to both new and returning clients. The discount allows the target market to own the quality pieces at a lower price. It is crucial that the two discounts be different yet still valuable to the clients. For example, a 10% discount can be awarded to return clients as part of appreciating their business.
On the other hand, a 15% discount can be awarded to new clients as a means to encourage them to buy the pieces. A new client will, thus, not only be encouraged to buy a piece but also go back and buy another one in order to get a new discount. Also important to note is that there are seasons that are associated with higher sales of the product. The festive season at the end of the year presents the company a unique opportunity to push these discounts and gain more loyal clients.
It is important to stress that the use of promotions can be used to both gain new clients and maintain the old ones. Uggla (2015) argues that many companies normally focus on new clients only. However, the older clients are more stable in regards to purchasing pieces frequently as they not only love the brand but also trust the company that makes their favorite brands. The promotions can be communicated through targeted digital advertising, email advertising, postal mail, and personal phone calls to loyal clients. Indeed, it is arguable that for the promotion to be successful and achieve its objective, it has to be communicated effectively and on time.
Implementation and Control of the Marketing Plan
The company has to implement, control, and evaluate the marketing plan in order to measure its success and come up with better strategies to help sell the products. In implementing the strategy, the company has to set up a team that unpacks the information shared. This has to be done in relation to the mission and vision of the company. Different teams can be tasked with handling different parts of the plan to ensure effectiveness. Additionally, the implementation phase should be led by the company’s employees so that they have a sense of ownership of the plan. The plan has been designed to be flexible, and this gives the different teams assigned freedom to come up with creative ideas on how to implement the plan.
Arguably, the plan has to be controlled by the management through the marketing director. This task ensures that all relevant activities are implemented on time to get the best results possible. The controller of the plan also has to ensure that any challenges and loopholes experienced during the process are properly documented for future learning and also addressed in a timely manner to help boost the company’s profits and consumer relations. The same department has to be tasked with the internal monitoring of the implementation of the plan. Additionally, an external partner can be used to monitor and evaluate the implementation process from time to time. This is important to erase any bias that might be associated with the internal monitoring.
Conclusion
In conclusion, Reggie’s Luxury Wrist Watch is a classic and highly valuable watch. Priced at $6000, it targets a high-value target market from different parts of the world. The marketing plan lays down strategies that can help the company expand its clientele and make a profit at the same time. One of the key factors highlighted in the SWOT analysis is the use of titanium grade 5 in the manufacturing of the watch. The PEST analysis highlighted the impact of political goodwill on the profitability of the company as well. Overall, the company has the potential to grow bigger, but several things have to consider including the establishment of a webshop and digital marketing of the products.
References
Ali, M., & Frahat, K. (2017). Antecedents of attitude toward counterfeit wrist watches. Pakistan Business Review, 19(1), 251-166.
Darmwal, R. (2015). Wrist wars: Smart watches vs traditional watches. Telecom Business Review, 8(1), 69-79.
Oakley, P. (2015). Ticking boxes: (Re)constructing the wristwatch as a luxury object. History, Culture, Consumption, 2(1), 41-60.
Sonawane, R. S. (2018). Shift of time keeping of wrist watches to status symbol and fashion. Journal of Applied Management, 10(2), 1-12.
Uggla, H. (2015). The price of luxury. In R. Darmwal. Wrist wars: Smart watches vs traditional watches. Telecom Business Review, 8(1), 69-79.