Branding and Positioning Cross examination of branded watches in the market

The world population is anticipated to grow at an alarming rate of 1.2% which will translate into 700 million customers from the upcoming markets and third world countries (Buchanan, 2007). The global population grossed seven billion in 2011 (Kunzig, 2011). This global population growth will surely drive the industries and their products. With this surging population growth in third world countries and new markets, the watchmakers are full of new prospects and opportunities. The competition will heat up in such markets as the watchmakers will be flogging to take charge of newer markets with their technologies.

The brand bonanza is a huge step forward in this worldwide watch market which entails all of the luxury brands and companies existing in the industry. The luxury markets are cut throat in terms of price wars because the niche markets are multiple and customers are in abundance. The watchmaking companies have purchased luxury brands at the expense of huge sums of money. For instance in 1999, LVMH took over Tag Heur for a price of $750 million. Then in 2000, Vendome purchased three luxury brands in one go:

Jaeger-Le Coultre

IWC Schaffhausen

A Lange & Sohne

The total acquisition cost around $1.7 billion (Buchanan, 2009). Some other acquisitions range from $30 million-$300 million. In case of a healthy and flourishing economy, the watch industry will keep its chin up and will soon be a subject to M&A's on the basis of value chains, technologies and reputable brands. This can subsequently change the industry profile for the best while it's is a pure indicative of price wars and domination of the market by a handful of watch corporations. The future of the watchmaking companies lies in these developing nations where vacancy is still available.

Section 2: Swatch is a reputable watch corporation. What strategies should Swatch use to fortify and strengthen brand equity in order to make is competent to rival new products such as iPod nano watch as well as paralleling fashion/designer labels such as LV and Superdry?

Concentrating on company-specific fortes

The marketing strengths and operations assist in assisting firms value superficial operations...

They are critical to the survival of a corporation. In case of corporate efficiency and marketing operations, Swatch Group is a diversified company with a portfolio exceptional and showcases unique brand visibility. Brand equity plays a pivotal role. In its nascent history, the Swatch Group managed to acquire multiple traits which commenced the "Swatch phenomenon" and diversify the Swiss watch company. The induced strategy process (it's vital for penetrating the core business opportunities) and the autonomous strategy process (examining new growth areas) (Burgelman & Grove, 2007, p 965) in case of Swatch Group, a company appears to amalgamate the operational efficiencies by penetrating into new areas and broadening its markets. The Swatch Group boasts of a reputed and grounded product portfolio (19 brands), its financial power unlimited, standard of quality are sky high, R&D and global trading operations are versatile. In this business climate, the swatch Group should keep its brand equity and commence to broadening its business horizons in new markets and developing countries. The Swatch Group released its data in 2008-2009, which proves this stance.
Joint collaboration and corporate alliance

The Swatch Group should develop future plans of alliances with retailers and watchmaking corporations, apart from storming through core and non-core venues. It should form an alliance with the well-known Tiffany & Company. The future mergers should be based on non-core assets and core assets. It should also view newer business propositions in newer markets such as India, Thailand, China, Indonesia, Taiwan, Turkey and Singapore. The salaries are rising in such countries and the desire for owning luxury goods is sky rocketing. The Swatch Company has played a pivotal role in time keeping during the past and present Olympics and many other sporting events. It provides data management services too (Watch time, 2007).

Working with niche companies

During the past 15 years, many notable watchmaking companies are turned into niche companies and started selling new and novel products. This is in relation with the altering lifestyle and changes in the world markets. Apart from huge corporation such as Super-dry and LV, the market is afloat with smaller companies…