Analysis Of Swatch

Swatch Touch Zero One Report

Swatch as a watch manufacture company was established 1983 by Nicolas Hayek, and their main products are quartz watches, also sell some mechanical watches. Until 2014, it already hold 18.3% of market share. (Tesla, 2014) But with the development of new technologies, smartwatch has become more popular than traditional watch. As a watch manufacturer, they have to stick with science and technology development, and understand what consumers interested in. (Sharp, 2013, p.186,187) Therefore，in August this year, Swatch as one of the watch leading industry has launched their first smartwatch in US, China and Switzerland, which is called touch zero one. Hence, this report will explain this marketing issues by micro and macro environment, segment marketing, advertising and marketing research to explain this marketing issue.

Compared with mass marketing, targeting marketing exists a huge risk, because it underplays the real heterogeneity within the market and can lead to marketing plans that fail to reach many of the brand’s current and potential buyers. (Sharp, 2013, p.56) The Swiss company uses target marketing which focused marketing communications on speaking directly on sport segment, and its strategy is ‘’appears primarily to revolve around including individual technological features in different models’’ rather than going head to head with Apple to create all-in-one smartwatches combining many functions. It is obvious that Swatch lose majority of customers, because Touch Zero One buyer are minority of beach volleyball player. In order to lower risk, Swatch must identify the importance of market partitions and develop a series of functional difference products. Sport market also regularly includes sub-markets that are functionally different, such as beach volleyball versus basketball versus other sports