A SWOT analysis reveals that Swatchs main strengths are its ripe design, quick collection turnover time and customer loyalty. At the same time there is a big threat from current competition entering the market, copying their designs, and offering disdain prices and better features. Physiographic segmentation identifies the opportunity to improve the product visit (exhibit 18) while remaining extrovert-oriented and a demand for a higher(prenominal) quality product.
Our proposeation is to discontinue the line extension and think on their core production line: innovative watches. We recommend a two fold strategy to maintain market look at leadership and reach new consumers: 1) Create a new more classic line of watches and 2) Focus on foot and promotion for the current basic line.
In response to the threats and opportunities identified, we recommend launching a new classic line targeting the Preppies (exhibit 16). Swatch should bring innovation to the shape/construction of the watch. The new classic line should be offered at a premium price.
This line should eat up the empty space left by the discontinued lines and unalike ads should be created for this segment.
For the existing line, we recommend a disproportionate reduce on product and promotion. This can be achieved by change magnitude resources to better understand consumer needs and design accordingly. While a bigger percentage of the communication budget should be allocated to the topical anesthetic markets in order to better meet the local consumer needs. (As the regional Manager from France suggested).
By focusing their resources on the core business and extending their product range, they will be able to reach to a new segment of consumers and continue to grow while upgrading their number and...If you want to get a full essay, order it on our website: Orderessay
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