Now named as the number one manufacture of watches in the world The Swatch Group has come long way since their initial struggles in the mid scars against Japanese watch companies who dominated the market with cheap yet effective Imports that consumers snatched up; however the Swatch Watch placed Switzerland on the map as economic leaders in wristwatches. Due to the growing demand for watches that were market and stylish in appearance as well as affordable Swatch began to cater to the market and found their grounding becoming a highly successful watch manufactures now reaching all corners of the world.
The watch market in Australia s highly competitive with Swatch one of the top competitors. In 2012 Swatch Group Australia led the watch market “with a 14% retail value share” (Remuneration International, Watches in Australia, March 2014). Competitors such as Omega, Longings and Testis all have their strengths one being “high positioning brand” in the Australian market. The Australian watch industry has posted a rising growth in watch industry revenue in the last five years and according to industry research by FISHBOWLS will continue to produce. Positioning strategy -?
Current market positioning of Swatch watches – Swatch Watches current target customers can be presumed to be demographically speaking predominantly young or those whom have a youthful spirit. This is assumed through their products aesthetics including vibrant colors and patterns as well as trendy and timeless appearance. Many older consumers appreciate a more demure and classic watch and often wear It like a piece of Jewelry rather than a colorful accessory. Swatches existing position settles around youth as it is affordable and therefore accessible to every target market.
We believe that Swatch do focus on the right target audience however it can be more specific in order to increase sales and customer satisfaction with Swatch watches. Selection and justification of (re)positioning basal/bases- We believe that Swatch would do well to split their target market between two key age groups in terms of maximizing their purchasing power by creating two different lines to suit the two different desires. 15 to 25 year olds are known as young adults and those who care about their appearances are trying to find their place and style therefore making hem the fashion followers of the older trend setters.
Although followers themselves they carry an Influence and trending power over a younger market group. Group and therefore like to copy the trends set by groups in their late teens as it is a safe and cool to follow fashion movements set by more experiences consumers. With a high school mentality younger crowds see the older crowd’s social status as superior and consequently copy anything that can be connected with this status such as clothing and accessories. The true trend setters and the 25 to 30 year olds, they re established adults but not old enough to become uncoil in the social sphere.
By 25 a style has been established and therefore wearing a product is a bold statement, this is currently a key age band sitting in the middle of two dominant generations and still manages to set the standards and stand out. Consumers in their ass and above may tend to look to groups in their twenties for style inspiration as this age bracket often has an infatuation with their formative years and will follow something that lets them hold onto a piece of it while still maintaining an age appropriate and p to date appearance.
Perceptual Map – Positioning Statement – To accommodate the style fuelled Fashion followers and trend setters Swatch watches need to stay ahead of the fashion movements. These two target groups are driven by staying ahead of the crowd in terms of the newest things in the world of fashion. Swatch watches new and innovative styles will bring an aesthetic of vibrancy and excitement to the watch market pulling in the trend setters and fashion followers with the next big thing in wrist accessories.