It is the vital part of marketing .its purpose is to determine the strengths and weakness of the competitors within the market. Porter’s five forces analysis for swatch can be interpreted as follows,
New entrants-Strong brand reorganization and customer loyalty- swatch is a popular brand among customers substitution. But as swatch products are simple, accessible, playful and colorful and different parts coat very low , so swatch can be attacked by new entrants.
- Many brands provide with range of similar styles. several Chines and Japanese companies manufacture low price watches with similar style or design.
-The thread form counterfeit product- some electronic devise can be used to get the time ,like cell phone, iphone or ipod.
- It is high in this industry simply due to the presence of so many competitors selling the same products. It is only different in price and consumers loyalty. buyer bargaining power depends on some criterias such -as price – swatch has lower and reasonable price, quality is high , style--- color full plastic watch, different design for different occasion . As swatch has lot of competitors so buyer has high bargaining power.
Bargaining power of suppliers
Swatch watch components are usually made in low labor cost countries with a low to medium quality and they are assembling in Switzerland. So suppler do not have strong influence .so lot of suppliers are involved and bargaining power is low.
Overall intensity of rivalry—
-intense competition within a very crowded market. Japanese company sicko has a big market in the world with low price and low production cost. Or Chinese watch like have also competitive benefit in the markets.
Swatch’s mission is to offer low cost, high quality, and accurate watch with synthetic material.
- Become the creative and innovative leading brand in global market . - Establish strong brand image in the mind of consumers .
- Increasing sales by 2012 to 8 billion.
- The Swatch Group’s gross sales grew 14.4% June 2012 .
Segmentation and Targeting
Segmentation is to divide a market into distinct groups of buyers with different needs, characteristics of behavior, who might require separate products. They considered some factors such as Geographic: No particular segmentation as Swatch is sold all around the world Demographic:
Gender: male and female
In 2007, 11.1% of women bought watches for self, while 9.3% went to men. 5.3% of women bought watches for someone else, while 3.4% went to men.
15-19, 20-24 and 25-34In terms of amount of people who purchased watches during 2007, The first age group accounted for 23.4%;
The second age group occupied 18.1%;
The third age group had 16.9%.
They also making watch for kid.
People that exhibit an urban lifestyle or they are passionate about fashion and follow new trends, Personality Spontaneous, impulsive, extrovert people, people usually motivated by sentiment and the ones that do not think twice before they buy . Behavioral:
Loyalty status: High loyal user pool that is maintained through frequent offering of new designs – Attitude: At least positive attitude to new products. Buyer readiness: Impulsive audience, receptive to buy after a new launch – Occasion/seasonality: There are 2 launches per year in order to follow the trends in the fashion world. Targeting
-With low price and high quality, Swatch is targeting to this customer segment that seeks a good and reasonable compromise between price, quality and stylish design. -They focus on working women age rage 24 to 35. It is clear that female purchasing goods for themselves more than male and they take the lead in the whole market. as well as lifestyle, women willing to spend more on themselves. - They also target people base on marriage status...