Swatch

Marketing Strategy

Segmentation

• Geographic: No particular segmentation as Swatch is sold all around the world

• Demographic: Mostly targeting towards younger segments, primarily because of its youngish style. However this does not preclude people from other ages who may appreciate the characteristics of such a type of design. Due to their affordable prices aiming at the lower end of the marker, the Swatch watches are mostly addressing lower to mid-level incomes. Also, if trying to identify the generation that Swatch comes closer to, we could argue that this is Generation Y due to its edgy, urban style that has an overlap with the style that the Swatch brand promotes.

• Psychometric: Personality: Spontaneous, impulsive, extrovert people, people usually motivated by sentiment and the ones that do not think twice before they buy – Lifestyle: People that exhibit an urban lifestyle or they are passionate about fashion and follow new trends, and people that appreciate style in various aspects of their lives.

• Behavioral: Loyalty status: High loyal user pool that is maintained through frequent offering of new designs – Attitude: Enthusiastic or 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

The two basic customer needs that the Swatch management wanted to fulfill is the low price and high quality and that was eventually the ultimate essence of the Swatch message. Thus if we would like to visualize this, we could consider a 2 dimensional, perceptual map, having “Price” and “Quality” as its main dimensions. Swatch is targeting to this customer segment that seeks a good and reasonable compromise between price, quality and stylish design. Thus Swatch targeting is basically towards the upper left of the perceptual map.

Positioning

• Target Segment: Quality seeking, price...