Birth of the Swatch Case Solution

Case Solution

In 1993, the Bit of fabric may be the finest-selling watch ever. Traces a history in the watch industry around the very first eighties, when the Bit of fabric was introduced. Describes the various factors that made the Bit of fabric totally different from any watch the saw. Includes legal representative of SMH, which controls Bit of fabric, exploring the way the organization has handled the Bit of fabric brand poor its brand portfolio (nine global watch brands in general.)

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Questions Covered

1. Why was Swatch so successful? In what way was the Swatch different then any watch the industry had ever seen?

2. What elements of the original Swatch marketing plan were most critical to the brand´s success? Do you agree with the original product strategy? The channel strategy? The promotional strategy? What about the pricing strategy - what does Franco Bosisio mean when he says that the Swatch is sold at a “clean price”? Given the huge demand for Swatches (particularly for certain models), did the company make a mistake in not raising the price for some of its styles?

3. Prior to the introduction of the Swatch, what kinds of watches were popular among consumers? In what way was a Rolex different from a Timex, or from a gold-plated Seiko? How did consumers make buying decisions?

4. In many ways, the Swatch forced people to think about watches in a way they had never thought before. Can you think of other products in other product categories that have done the same thing?