The various and ever growing brands being manufactured may seem not to cater for the specific customer needs and requirements creating higher supply then demand especially in the US. Though this may seem to work, there may be pitfalls in that the management strategy of one country may not suit another country. Different countries have different manufacturing and branding preferences and needs hence one managers experience in one country may not apply in another country. In England buyers put fashion first, in America buyers put price first.
The Swatch Group would have to work with each market segmentation preference to succeed. Alternative 2: The other alternative is for the Swatch Group to have an overall Swatch brand look and message/logo and stick to them. This would be a successful strategy that would ensure that people would know what the company is all about and associate products to it. This would then mean that most would trust the brand when buying its brand products hence the company would attain brand loyalty from its customers. By doing this it would create generations brand sales.
However, market trends changes as generations change and the anticipated brand loyalty may not be maintained for long of preferences change with each generation. The company will then have to come up with other marketing strategies that would suit any current market and market flexibility. Alternative 3: Market segmentation, market specific branding and staffing would be one other alternative that would ensure that the Swatch group catered for each markets needs. Each country had different purchasing cultures and needs.
It would be profitable and cost effective to ensure that the companys products were manufactured according to the specific market needs and purchase culture. Markets such as the US went for price first and not fashion. This saw the Swatch Groups marketing strategy of associating its watches to fashion flop in the American market. Pricing, branding and marketing its products according to the market trends would suit the customers needs and wants, Swatch would be able to cater for each market segments needs, increase sales and ensure the company gets back its market leadership position. Alternatives evaluation criteria
The qualitative and quantitative criteria were used. Qualitatively, satisfaction of each market segment would be the ultimate success point for the Swatch Group. Passing on a clear company message and ensuring value for money for the customers would sell the company profile and image. Quantitatively the company would go with the current production in mass and risk try to create products that the company feels would suit the market. The last alternative of market segmentation would be best suited to ensure customer satisfaction.
Reavis, Cate (1999). The Swatch Group: On Internet Time. Boston: Harvard Business School Publishing.