SWOT Analysis Overview
Strength
In 2010, the Swatch Group has managed to introduce $ 10 billion of sales through presentation of 19 brands meeting the demands of the established market segments (Deshpander et al. 3). In addition, the company’s success was due to the revival of famous brand Omega confronting Rolex. Finally, introducing advanced Co-Axial technologies has allowed the company to sustain a competitive advantage successfully.
Weakness
Despite the success of the company and focus on multi-brand development, the company experienced a serious financial recession in 2009. Apparently, the decline was due to the establishment of high-cost monopolized boutiques that were less competitive as compared to those offering multiple brands. Time-sensitivity was another issue that the Swatch Group had to face.
Opportunity
In order to follow the company mission to introduce value as a priority for product promotion, it was highly important to cooperate with the leading manufacturers of the watch parts, such as Nivarox (Deshpander et al. 5). In addition, the CEO of the Swatch Group, Nick Hayek, has introduced a new communication strategy focusing on developing brands and inviting such celebrities as Daniel Craig and George Clooney as sponsors.
Threat
A narrow-focused approach on branding campaign can limit the competitiveness of the company and introduce potential threat on the part of other competing businesses.
Analysis
With regard to the SWOT analysis, it is possible to highlight a range of brand strategies that a company has introduced to meet the customer demands. In particular, Hayek has introduced a multi-brand concept development that allowed to stay afloat and face all possible risks at losing a certain brand.
Focus on brand development, on the one hand, might lead to the loss of certain consumers due to the inability of the producers to predict the needs and preferences. On the other hand, developing brand families based on innovation management is a step forward toward penetrating to an international market. Finally, maintaining a monopoly in brand development, which can lead to a less attractive image of the company’s product.
Recommended Action
Despite a well-organized and consistent strategy of promoting brand image through advancement of technology, development of brand families, and improving communication techniques, the company should still pay attention to the threat of their monopolized brand development.
Promoting a single brand to various markets can increase profitability, but for a short period because it is impossible to expand customer base endlessly. Therefore, the Swatch Group should work on expanding their customer segments, but not on developing the concept of the Marketing Mix.
Focus on product development and quality improvement should be a priority for the company to meet consumers’ fast-changing demands. Exploring new possibilities for enhancing product functionality is much more beneficial because it can change the fixed costs, as well as the controlling variables.
Emphasis placed on technology innovation is relevant because it contributes to the development of new products and brands. However, the watch manufacturers should strike the balance between quality and functionality to meet the demands of broader market segments.
Marketing Plan
The marketing strategy of the Swatch Group should pay attention to high quality, low costs, and accurate watch materials. The main objective of the company consists in achieving innovation and creativity, which leads to expansion of the international market, as well as establishment of a strong brand loyalty among the consumers.
The company’s marketing mix concept should consist of the following aspects:
Target Market
The target consumers of the Swatch Group involve those who are interested in exclusivity and exceptional quality. However, this segment is too narrow for the company to increase its revenues. The focus on uniqueness is beneficial, but the unique products can be sold at much lower prices. Such a strategy can expand the customer base significantly.
Product
The company provides greater opportunities for developing a wide range of products. However, creating a broad range of watches can lead to increased cost, which does not contribute to company’s profitability and performance.
Pricing
The pricing strategy should be limited to the exclusiveness of the product and emphasize its high quality. Therefore, all products offered by the company are of premium price. Apart from this strategy, the Swatch Group should also develop the strategy that would propose moderate prices to middle-class consumers.
Promotion
Interactive and direct promotion is possible through Internet because it can reach larger amounts of target customers. Therefore, the Swatch Group can introduce its advertisement on various websites.
Distribution/Place
Promotion strategy should be connected with strengthening the positions that have already been established. This strategy can increase the popularity of the brand and provide new opportunities for company’s development.
Measurement
In order to measure the outcomes, it is necessary to take control of the customer’s feedback placed on the websites, as well as the sales growth rates. In addition, the company can spend some time on research and development activities to define which segment of the market is the most active one and which one is passive. The latter can be identified as a weakness that can further be improved by the above-identified strategies.
Works Cited
Deshpander, Rohit, Karol Misztal, and Daniela Beyersdorfer. “The Swatch Group”. Harvard Business School. (2012): 1-25.