Huburt Watches Case Study

Topics: LVMH, Branding, Luxury good Pages: 9 (2904 words) Published: August 5, 2013
Course Name: Market Management

Student Number: 2014104

Purpose of the paper

This paper will highlight how Hublot watches use the elements of the marketing mix to target its position and to achieve its competitive force. The essay is composed of two main parts. The first part includes the analysis of the segmentation and target of Hublot watches and its major competitors. The second part is adopting marketing mix (4P) to illustrate how the company differentiate itself from competitors to satisfy costumers, then to enhance its market share percent and sales.


Currently, luxury product can be found everywhere and the demand of them is high (Kapferer and Bastien, 2008: 311). Each company wants its products to be positioned as luxury. The concept of luxury should be attractive and fashionable, especially the Luxury watches, which take up a significant part of luxury brands, such as Rolex, Omega, Cartier. In the 1970’s, nearly 1000 watches companies and 55’000 place of work vanished, many analysts recognized that the Swiss luxury watch-making industry was dead because that it lost the electrical revolution and failed tough competition from cheaper Japanese watches as well. Nevertheless, by means of the development and application of new technology and materials, luxury watch industry reborn, and lots of new brands has been created. Hublort watch is one of them which was found in 1980, then being famous as the watch of European royalty.

The positioning of Hublot watches is clear since it was founded, which focuses on the high-end luxury market (LVMH PRESS RELEASES, 2008). Hublot is one of the most significant symbols of modern luxury that not only owes its success in traditional watchmaking, but also in a daring which may have seemed unthinkable: the first level of luxury watches with the rubber bracelet. Luxury also possesses the ability to break codes and to transcend accepted concepts. It is a young luxury brand but as well an innovation brand in luxury watches market. Hublot started its business by producing the top level watches which made of natural rubber in the watch making history (LVMH annual report, 2008: 44). In that period, other luxury watch brands (Rolex, Omega, etc) were using the gold or leather as the major materials. Therefore, this material innovation was not only catching customers’ attention, but also differentiate Hublot from other brands. Furthermore, the innovative and unique products allow Hoblot to sell at a very high price. In fact, the average price of Hublot watches should be $27,283 which is much higher than Omega and Tag Heuer. In the mid-90s, rubber became the favorite material by renowned watch making companies as the creations of the time. Hublot watches followed this creation and reinforced this status as the great classics. As to Hublot, instead of a fashion phenomenon, rubber ideally represented a life style, a philosophy and a brand image. Currently, Hublot provides kinds of watches with excellent quality which are innovative, differential and combining fusions of materials like natural rubber, ceramics, technological metals, precious metals and diamonds (LVMH PRESS RELEASES, 2008). The famous Big Bang collection involves models equipped with technical complexity, integrating traditional metals and automatic movements (ibid). Besides, Hublot launched a new Big Bang collection for female which was issued at the last Basel watch fair with great success. Although the new product line develops well, Hublot does not give up the traditional product line that has been recently redesigned by using rubber, gold, ceramics and natural zircon. Due to its innovative and unique products, Hublot became more and more popular in luxury watch market. There is a research which shows that Hublot is the luxury watch brand with its own Facebook page with most fans.

Market segmentation is of great importance and is highly respected by managers because that the selection of the...
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