Swiss Army Case Study

Topics: Marketing, Swiss Army knife, Brand Pages: 33 (10161 words) Published: January 31, 2010

1.1 Background of the company

Swiss Army is an illustration of a company that has developed by basing its product expansion on established brand equity. The brand has its roots in its history of knife development from the 1800s. The knife became wildly accepted in the United States when soldiers brought the knives back at the end of World War II. Swiss Army has a strong worldwide reputation built on quality and reliability with 92% brand awareness in the United States alone.

Leveraging the success of the knife, the company expanded into apparel, travel gear, and other product categories. The launch of the Swiss watch was an overnight success; and now 1 out of 5 watches under $500 in the United States is Swiss. The company enjoyed similar success with its travel gear and expects to do the same with apparel. In addition to building on an established brand, Swiss executives believe in building a long and lasting relationship with its customers. Before any product development occurs, the company talks to its customers to understand what values and attributes they associate with Swiss Army products. Armed with this information, Swiss Army develops products that reflect the values its customers hold about the brand. This has allowed a century-old company to grow with the times without growing old. Teams can separately analyze the website, promotional plans, new product and brand extensions and Swiss Army stores to analyse the current status of Swiss Army stores and new marketing developments.

1.2 Mission of the PBL

To analyze current status of the Swiss Army’s marketing development to retain and expand its international standard brand equity.

1.3 Objective of the PBL

To identify how Swiss Army retain its brand equity and expand it through product line expansion by using strategic distribution channels and effective advertisement methods.

1.4 Marketing tools used to analyze Swiss Army

We have used SWOT analysis and Ansoff Matrix as a mean to assist us in our Problem Based Leaning Case Study.

1.5 Learning Issues
1. Brand equity
Brand equity refers to the marketing effects or outcomes that accrue to a product with its brand name compared with those that would accrue if the same product did not have the brand name And, at the root of these marketing effects is consumers' knowledge. In other words, consumers' knowledge about a brand makes manufacturers/advertisers respond differently or adopt appropriately adept measures for the marketing of the brand The study of brand equity is increasingly popular as some marketing researchers have concluded that brands are one of the most valuable assets that a company has. Brand equity is one of the factors which can increase the financial value of a brand to the brand owner, although not the only one. There are many ways to measure a brand. Some measurements approaches are at the firm level, some at the product level and still others are at the consumer level. Firm Level: Firm level approaches measure the brand as a financial asset. In short, a calculation is made regarding how much the brand is worth as an intangible asset. For example, if you were to take the value of the firm, as derived by its market capitalization and then subtract tangible assets and "measurable" intangible assets- the residual would be the brand equity. One high profile firm level approach is by the consulting firm Interbrand. To do its calculation, Interbrand estimates brand value on the basis of projected profits discounted to a present value. The discount rate is a subjective rate determined by Interbrand and Wall Street equity specialists and reflects the risk profile, market leadership, stability and global reach of the brand.

Product Level: The classic product level brand measurement example is to compare the price of a no-name or private label product to an "equivalent" branded product. The difference in price, assuming all things equal, is due to the...

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