Swatch Case Study Essay Example for Free

S train Case Study EssayAfter Hayek took over as chief executive officer of Societe Suisse de Microelectronique et dHorlogerie (SMH), he realized that the comp some(prenominal)s watch making process needed to be looked at and reanalyzed. No more could they reject the lowest merchandise segment of watches as it was proving to be the intimately highly profitable, so they decided to introduce the Swatch. The product would be marketed as a watch that was low-priced but still carried the prestige of a Swiss watch. Most of all, this new product line was to be innovative- nothing like any other watch on the market. Along with this, Hayek wanted the Swatch to have nitty-gritty and sensation, because influencing the customers emotion can lead to spontaneity which will positively affect their market demand. This was the intimately critical element to the brands success as these unique design concepts and emotion based marketing strategies, such as hanging the giant watch in Frankfurt , intrigued the younger coevals and the demand for these watches exploded around the world and helped SMH cement its place in the lower segment of the watch market. Without this, they probably would not have been able to separate themselves from their competitors spelling doom for the company.Before the Swatch or any other inexpensive watch, people wore watches as a sign of wealth. Most watches were built through badly manual labor and had rubies and other expensive materials making it difficult for an average Joe to purchase it. alone later on the world war, the Timex was released and this changed everything as these mass produced disposable watches were priced very economically. Sales boomed for the product and the lower segment flourished. But for the wealthy, companies like Rolex still existed to offer a luxurious product for a very premium price, and the most important element for these customers was the prestige of the watch maker and Rolex was just that.Omega, SMHs most e xclusive brand, was in like manner facing failure till the resurgence of Swatch. Success in another market gave Hayek the ability to redevelop Omega as a brand, and restore the prestige that came with the name before the company got greedy and staring(a) the market with them and by doing so damaged the brands image and for customers who are in more expensive markets, that is a deal breaker. When it came to cheaper watches though, consumers were more interested in its novelty than prestige.