Sales and selling strategy analysis: Prestige Watch – Omega Watch Hong Kong
Over the past decades, wearing prestige watch has been a sign of being successful and wealthy, together with wearing jewelries and riding luxury vehicles. Omega watch, being one of the most representative prestige watch brands under the world’s top watch manufacturing group, Swatch Group, this article discussed the current sales approaches, forces and difficulties. It concluded with appropriate actions and future direction in selling for the company.
Direct selling is dominated sales strategy for Prestige Watch industry with distributions in their own brand retailers, watch shops, or watch and jewelries exhibitions.
Customers buying luxury watches looking at overall value represented by the product, include durability, design, functionality, uniqueness and most importantly, the image that represented. The product is tangible but it is very difficult to measure as there are various factors and most of them are very subjective and personal. Therefore, selling of luxury watches are usually delivered face to face directly between salespeople and customer. Customers and distributors usually visit retail shops or product expos or relevant exhibitions to choose. Sometimes, salespeople will visit customers with selected products, usually for privileged or customers with more buying records.
On the other hand, indirect sells such as internet or phone selling is not very likely to happen in prestige watch industry.
Marketing communication plays an important role in building and maintaining stakeholder relationships, where retaining of customer relationship is the main focus of companies having a relationship marketing orientation. In the prestige watch industry, is only moderately relationship marketing oriented. The industry is very concerned in quality and customer commitment, however, its majority is not focused on account based selling to customize and fulfill customer’s need on individual basis.
Salespeople usually provide response towards customer’s request, whilst, seldom contact customers proactively without any request.
Due to economical changes, there’s a very steady upscale of sales in the industry over the past decades. The global economical problem of 2 extremes riches and poor has revealed the fact that there are more rich men globally and the demand of luxury watches has climbing up over the past years. In the single year of 2006, Swatch group has recorded an increase of gross sale by +12.3% from the previous year to 5.050 billion Swiss francs, net profit by +33.7% to CHF 830 million.
Behavioral factor changes also drive future changes in the sales practices.
Among the rich people, there is a change in the age structure that there are more young millionaires. Successful of young IT professionals and financial analysts could be sources of those young riches. As observed by director of watch distributor, Mr Ying, the average age of customers has dropped from 50 to 35 over the past decade.
Current luxury watches buyers, especially those young professionals, are often more well educated and have a stronger knowledge in wealth management.
All these forces and changes will be illustrated in more details in following sections.
The Company and Selling Strategy
Omega was founded at La Chaux-de-Fonds, Switzerland in 1848 by Louis Brandt. With its first series-produced calibers in 1894, Omega has paved the way of its marketing success being one of the most prestigious brands under Swatch Group, the top watch producer in the world.
Omega watch is a typical prestige brand that may not listed as one of the top 10 luxury watches, but the brand is very well known especially for its achievement of being the first watch wear by first astronaut landed on the moon. As there are different sales approaches adapted and forces faced in different markets, we focus on Omega Watches...
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