samedi 7 décembre 2013
Comparison between 2 main competitors of Swatch and Ice Watch.
Casio and Louis Pion compete with Swatch and Ice Watch on the low-cost segment market. It is interesting to notice that even if they compete on the same market, Casio and Louis Pion don't target exactly the same type of customers as Swatch and Ice Watch. Each brand tries to propose its story and its own positionning.
CASIO - JAPANESE BRAND
|
LOUIS PION - FRENCH BRAND
|
World famous brand – 2,7% of the global
market shares of watches.
|
Smaller brand, famous in France mainly.
|
Known for the electronic watches but
nowadays produces also classical watches.
|
The ambition of the brand is to become
“The Sephora of the horology”.
|
Consumer profiles: teenagers, young
adults or sportsmen (especially with the collection G-shock)
|
Consumer Profiles: mainly 30 -60 years
old, people who likes traditions, classicism, and a certain spirit of French
culture
|
Casio was a terrible competitor for
Swatch in the years 1980. Nowadays, Casio is still an important brand but
contrary to Swatch, it is a diverse brand portfolio, which makes also business
tablets, calculators.
|
Louis Pion is a brand, which sells also
others brands of watches in its stores.
|
 |
| A world famous model of Casio. |
 |
| A model which shows the will of the brand to diversify its range. |
 |
| 130 euros - a cheap price for a classic model Louis Pion. |
 |
| Tradition and Modernity. |
JVS.
References
http://www.tictactime.com/montre-casio-A168WG-9BWEF_82231.html
http://www.tictactime.com/montre-casio-A168WG-9BWEF_82231.html
http://www.lesarmoiries.com/store-locator/louis-pion
http://www.famous.fr/portfolio-print
Posted on samedi, décembre 07, 2013 by Unknown
Before to start this
article, let’s present what is exactly the concept of Lovemarks.
Lovemarks is a concept
used to reveal deep feeling that consumers could have for a brand; how brand
inspire them.
“Lovemarks reach your heart as well as
your mind, creating an intimate, emotional connection that you just can’t live
without. Ever.” (source: www.lovemarks.com )
It is based on the following
aspects: Mystery, Sensuality and Intimacy. Before to evaluate a brand through
these characteristics, it is crucial to be sure that the brand is respected. If
it’s not the case, that’s mean the brand cannot be a Lovemark.
This brand concept was
created by Kevin Roberts, CEO of the famous advertising agency Saatchi & Saatchi.
To establish if a brand
is a Lovemark, there is as tool: the Lovemarker .
As we can see the Lovemarker is divided in 2 parts: “Respect”
(to valid before to move on the second part) and “Love” included the 3 ingredients
of Lovemark. Brand needs to get at least 41 points in total to be considered as
a Lovemark and get minimum 25 points to Respect.
To determine if Swatch
and Ice Watch are Lovemarks we used this tool. Because many people didn’t know
the brand Ice Watch and because we didn’t get lot of time for doing this
survey, we reached to interview just 34 people.
By analyzing the
results, we can observe that 100% of respondents know the brand Swatch but for the
brand Ice Watch only 74% know it.
Many people don’t know
the brand Ice Watch or thought it was a Swatch’s umbrella brand. We can explain
this misunderstanding by the fact that Ice Watch look like and was inspired by the Swatch watches
style and brand name.
On the following
charts, we took for each criteria, the score (Hot, Warm, Cold) which get the
higher percentage.
Ice Watch:
We can notice that Ice
Watch didn’t reach the 25 points for the “Respect” part, all criteria are Warm
or Cold except 2, Identity and Efficacy. Regarding, the “Love” part, Ice Watch
has no “Hot” score. The brand has to work on Respect and on all Lovermark’s characteristics
to become a Lovermark.
Swatch
Swatch is perceived as
performant and trusted brand. The brand could work more on the reputation, but
it reached the 25 points. For the “Love” part, Swatch has quiet good results in particular in mysteries and intimacy parts,
but should work more on the “touch” criteria.
With all results from
Lovermarker, we noticed that majority of respondents consider Swatch as a
Lovemark (until 54 points). Whereas Ice Watch has results lower than 41 points
therefore it is not a Lovemark.
SOCIAL MEDIA
Even if Ice Watch is
not a Lovemark, both brands have a very high awareness whether we check social
media figures (on the 5th December 2013 at 10:52PM):
Swatch gets:
- On Facebook, just in France 3,084,456 likes · 50,204 talking about this · 409 were here
- On Twitter, 2 726 tweets, 901 following, 19 530 followers
- On Pinterest, 38 boards, 2544 pins, 99 likes
When Ice Watch gets:
- On Facebook, overall 4,957,138 likes, 124,718 talking about this.
- On Twitter, 1 636 tweets, 229 following, 5 280 followers
- No official Pinterest
C.G
Sources:
- https://www.facebook.com/ice.watch?ref=ts&fref=ts
- https://www.facebook.com/SwatchFR?fref=ts
- http://www.lovemarks.com
- Survey 12/2013 - online questionnaire realized by us.
- https://twitter.com/swatch
- https://twitter.com/IceWatchBrand
- https://www.pinterest.com/swatchwatches
Posted on samedi, décembre 07, 2013 by Unknown
On the watchmaking market, consumer segmentation is
characterized by 4 criteria:
- Age
- Gender
- Price
- Lifestyle
For
the both brands (Ice Watch and Swatch), there are just two criteria to take in
account to define the customer profile: lifestyle and price. We will make a
comparison between both profiles.
Consumer profile Ice WATCH
Ice Watch is positioned as an intercultural and
intergenerational brand; therefore, the brand targets every generation, adults and
young people. But majority of Ice watch consumers are young people (12-25 years
old) and adults (25-35 years old).
The consumers are much diversified, indeed women, like
men, like kids wear these watches. The style of the watches is unisex.
Price
The consumers look for fashion accessory with good
quality (high tech) that is accessible. They want to be stylish without spend
huge amount. The Ice Watch watches answer to this preference with affordable prices
for every purse. It allows to customers to collect Ice Watch watches.
Lifestyle
The consumers are urban people, most of the time with
a busy lifestyle that are interested in fashion, novelties and they like change.
The added value of Ice Watch watches, is that they adapt it to every lifestyle (business,
sport, nightlife…). Consumers need a watch that is adaptable for all daily
activities, all seasons.
Their motivations and emotions for buying Ice Watch watches:
- Fashion, fun, original and inter-generational accessories at a reasonable price
- Quality colorful watches adaptable to every moment of day and to every activity (sport, business, night…).
- Possibility to customize their style with accessories reflecting their personalities.
- Desire to be different from others people. For some consumers, wearing an Ice Watch give them confidence and the feeling to be special and close to famous people.
In the fashion world, as we
already mentioned celebrities play
a key role because they constitute a reference group and thus one of major
influencers in the consumer behavior. Ice Watch well understood that by basing
its marketing on product placement and celebrities.
Consumer profile Swatch
Price
In term of price, Swatch watches are on the same
market segment than Ice Watch, the mass consumption segment (prices inferior to
299€). The consumers don’t want to spend lot of money in accessories, but
insist to get watch of quality and look for trendy products. The watches are enough
accessible to collect them.
Lifestyle
The brand Swatch is a lifestyle. People who wear
Swatch watch share the same values of the brand: simplicity, fun and quality. Consumers
of the brand are urban people who get easy-going lifestyle. For them, it is
important to wear accessories that reflect their lifestyle and their
personality.
Their motivations and emotions for buying Swatch watches:
- Light watches that are at the same time comfortable, fun, classical and trendy (colorful).
- Watches with an excellent quality at an affordable price.
- They love and buy Swatch watches because they remind some memories of their childhood. The consumers wear Swatch when they were young, it was the brand watch they had during all their childhood. That’s why they feel very close to the brand and continue to wear it. It is a real love affair (Lovemark).
To conclude, we can observe that Ice Watch consumers
haven’t the same motivations than Swatch consumers. The “Ice Watches” are more
motivated by the fashion side whereas the “Swatches” are more in the emotional
and affective side than the fashion one.
CG.
Source :
http://www.lovemarks.com/index.php?pageID=20015&lovemarkid=100
http://www.belgianspirit.be/files/PressInformationFR_BelgianSpirit_-_IceWatch.pdf
http://www.guido.be/fr/JobsStages/ArticleDetail/tabid/173/ArticleId/4894/Default.aspx
Market study from Xerfi on World Watchmakers -
2012-2017 trends
Posted on samedi, décembre 07, 2013 by Unknown
vendredi 6 décembre 2013
COINCIDENCE?
Let’s get straight to the point, nobody can deny Ice Watch does not sound similar to Swatch. Beyond the name, Ice Watch has the same price positioning and uses the same codes than Swatch.
And we are not only talking about the global line but also about some specific models.
For example, if we have a look on Ice-Love by Ice-Watch (on the left below), we can find some similarities with True Love by Swatch (on the right). The Belgian brand was also careful to put a heart on its box, as Swatch did.
Then, our survey also confirmed that Ice Watch still have some way to go since many of the participants thought Ice Watch was part of Swatch. Moreover, according to a French investigation by the Swatch Group in 2011, 26% of respondents think that Ice Watch watches are produced by Swatch. This leads us to affirm Ice Watch has not clearly defined its identity yet, and has taken advantage of Swatch notoriety.
It would appear that Ice Watch has just followed the Swatch path, but its founder Jean-Pierre Lutgen, seems to disagree. According to him, plagiarist must be well punished as he said in an interview with PME KMO Business Magazine “It is an honor to know others copy us but still, it is completely unacceptable… We do not hesitate to take legal steps in order to protect our brand identity”.
To illustrate this war against counterfeit, the Belgian has organized the destruction of 3,500 counterfeit copies in 2011 with… A TANK!!!
JP Lutgen clearly reveals no scruple about punishment so we may think similarities with Swatch were just some coincidences. Unfortunately, other companies are annoyed with Ice Watch! This is the case for Lego, which has denounced the packaging of Ice Watch, because it particularly looks like its bricks. Lego won the case at the end of 2012. Thus, Ice Watch has to stop every packaging, pendants, displays, and all items that resemble by any means to the Lego’s bricks.
Besides, Ice Watch has planned to develop a smartphone in 2014, and intend to call it Ice Phone. We think Apple should moderately appreciate.
Yet, the brand succeeds in attracting consumers.
It is the most popular Belgian brand on Facebook and it does not look like it but Ice Watch has far more likes on Facebook than Swatch have (close to 2 000 000 more)!
This difference may come from their different communication.
While Swatch has rather create a branding experience with big investments (own stores, sportive sponsoring, TV ads, etc.), …
… Ice Watch mostly focus on the web (social network) and through its product placement with some celebrities, such as the DJ David Guetta, his wife Cathy Guetta or the singer Fergie (Black Eyed Peas).
Ice Watch wants to provoke but differently from Swatch, which manage to catch consumer’s attention without nudity or kind of rudeness (“F**ck me I’m famous!) as these old posters can remind it to you.
In a nutshell, Ice Watch has not established a successful 4Cs as Swatch did.
The brand is not perceived by the customers as Ice Watch would like if we have a look on the Brand associations , indeed some pejorative words such as "chinese", "cheap", "copy" are associated to the brand. Moreover, there is not enough clarity since people still think Ice Watch is part of Swatch...
LH.
Sources:
Posted on vendredi, décembre 06, 2013 by Unknown
- THROWBACK -
“Positioning is not what you do to the product. It’s what you do to the mind.” - Jack Trout.
In the early 1980s, the brand Swatch had already established a clear positioning as you can see in the leaflet below (1983).
Without going into any details but with a cursory look to the ad, consumers can perceive three points, which are the versatility, the quality and the emotions of the brand.
Versatility: Even if the brand obviously targets trendy people, it is addressed to everyone, at anytime and anywhere. You can see both men and women on the ad; situations described through the text and pictures are not the same: from sophisticated (cocktail’s picture) to sportive ones (swimming’s picture), these watches can adapt to any situation! We can also notice a play on words with “Anywear” (anywhere + wear); in addition to possibly wear it anywhere, it can also make reference to the comfort of wearing the watch (so enjoyable that customers forget they are wearing something) or to the fashionable function of the watch (customers don't need anything else once they wear their Swatch) or… Do not hesitate to comment below to give us your perception!
Quality: The drawing of the deconstruction of the watch on the left reveals the technical nature of the product. Yes Swatch is at an entry level, yes it is simplified in comparison with former watches, but this watch is more complex than we can think. Indeed, the production of the watch is more sophisticated than it is in appearance. The repetition of the Swiss flag picture and of the words “Swiss” and “resistant” in the ad are also enhancing the quality of the product since these elements refer to good quality.
Emotion: The brand had already understood that the positioning must go beyond attributes and benefits to catch customer’s emotions. Indeed, the catchphrase “Life should be an adventure” does not only introduce the description below but is also introducing the experience customers should share with the brand. Once again, Swatch is not only about the product, Swatch is about lifestyle.
Versatility: Even if the brand obviously targets trendy people, it is addressed to everyone, at anytime and anywhere. You can see both men and women on the ad; situations described through the text and pictures are not the same: from sophisticated (cocktail’s picture) to sportive ones (swimming’s picture), these watches can adapt to any situation! We can also notice a play on words with “Anywear” (anywhere + wear); in addition to possibly wear it anywhere, it can also make reference to the comfort of wearing the watch (so enjoyable that customers forget they are wearing something) or to the fashionable function of the watch (customers don't need anything else once they wear their Swatch) or… Do not hesitate to comment below to give us your perception!
Quality: The drawing of the deconstruction of the watch on the left reveals the technical nature of the product. Yes Swatch is at an entry level, yes it is simplified in comparison with former watches, but this watch is more complex than we can think. Indeed, the production of the watch is more sophisticated than it is in appearance. The repetition of the Swiss flag picture and of the words “Swiss” and “resistant” in the ad are also enhancing the quality of the product since these elements refer to good quality.
Emotion: The brand had already understood that the positioning must go beyond attributes and benefits to catch customer’s emotions. Indeed, the catchphrase “Life should be an adventure” does not only introduce the description below but is also introducing the experience customers should share with the brand. Once again, Swatch is not only about the product, Swatch is about lifestyle.
Throughout its development, the brand will continue to create a lifestyle and an experience around the product as you can see with the invention of the “swatcher” verb on the invitation card below (1984). It would appear that Swatch still truly wanted to create a connection with its customers.
In 1996, Swatch has remained true to its values, quality at a low price. And the brand does not forget to bring emotion to the product as Nicolas G. Hayek has quoted in 1996: “The Swatch, it’s me: good quality, low price, provocation, happyness. Well, it was me: now, I am too old”.
In 1996, Swatch has remained true to its values, quality at a low price. And the brand does not forget to bring emotion to the product as Nicolas G. Hayek has quoted in 1996: “The Swatch, it’s me: good quality, low price, provocation, happyness. Well, it was me: now, I am too old”.
- TODAY -
The aim of the brand is still to offer “a high-quality watch at an affordable price” (www.swatch.com).
Price: As explained in the previous articles Branding Strategies, Brands Portfolio Analysis, and Brand's POD POP, Swatch is part of the Basic Range of the Swatch Group, also known as an entry-level product. This would mean the brand Swatch is more affordable than the other ranges of the group (Prestige and Luxury Range for example) since you can buy a Swatch watch from 40€. But the strength of Swatch is not only based on the low price, it also resides in the quality and in the innovation.
Quality and Innovation: Swatch watches are “Swiss made”, and the brand do not hesitate to remind it with the Swiss flag on its logo.
Price: As explained in the previous articles Branding Strategies, Brands Portfolio Analysis, and Brand's POD POP, Swatch is part of the Basic Range of the Swatch Group, also known as an entry-level product. This would mean the brand Swatch is more affordable than the other ranges of the group (Prestige and Luxury Range for example) since you can buy a Swatch watch from 40€. But the strength of Swatch is not only based on the low price, it also resides in the quality and in the innovation.
Quality and Innovation: Swatch watches are “Swiss made”, and the brand do not hesitate to remind it with the Swiss flag on its logo.
Look how the Swatch watches below are originals. Obviously, these watches are not only supposed to indicate the time. They are definitely accessory watches.
Besides, nobody really knew the real meaning of Swatch, some are thinking of the association of “Swiss” and “Watch” whereas others are rather thinking of “Second” and “Watch”, which means the brand encourage people to have several watches.
Indeed, it must be remembered Swatch watches are mostly in plastic (before line extensions, the first products were all in plastic). The brand has completely broken the rules with this material, which was not already used by the competitors! In this way, Nicolas G. Hayek has transformed this POD in strength. He made the positioning exclusive since the brand brought a new utility to watches. The low price allows consumers to have several watches, as if it is an accessory. And the limited edition of each watch definitely confirms this positioning of a fashion watch. As the founder Nicolas G. Hayek said in 2009, one year before his death, “But you know, my watches are not primarily made to look at the time, there are jewelries!“.
Perception: And even today, as it did in the early days, the brand continues to develop a brand experience. Contrary to Ice Watch, Swatch dispose of its own stores. Thus, the brand can control their universe and immerse consumers into it more easily.
Swatch still develop the branding experience through its annual sponsoring and do not hesitate to invade the New York subways! The aim is to get closer to its community, to attract new consumers and to impose its reputation and creativity.
Perception: And even today, as it did in the early days, the brand continues to develop a brand experience. Contrary to Ice Watch, Swatch dispose of its own stores. Thus, the brand can control their universe and immerse consumers into it more easily.
Obviously, the brand still base its branding on emotions.
“People love brands but brands don’t love people back”, Swatch is literally not part of these brands described by Marc Gobé in his book Emotional Branding. As you can see through the welcome message on the group website below, Swatch desires to create a close relationship with its customers through its feeling’s lexical field (use of “emotion”, “feel”, “we”, “love”, “you”, “happy”, “enjoy”, “wish” etc.).
Through innovation, quality, and low price, Nicolas G. Hayek succeeds in democratizing a generation product. His fashion watches are destined to customers that value both originality and quality. Swatch watches are unique so you better purchase it if you like it!
Sources:
And it seems to work when we look at the brand associations.
Indeed, while focusing on the article Brand Associations , customers perceived the brand as affordable and fun (POP) but also as Swiss and of good quality (POD).
In a nutshell, Swatch has established a successful 4Cs positioning thanks to its clarity (Basic Range of the Swatch Group), its competitiveness (POD), its consistency (same values and positioning since the early 1980s) and its credibility (part of a strong group).
Through innovation, quality, and low price, Nicolas G. Hayek succeeds in democratizing a generation product. His fashion watches are destined to customers that value both originality and quality. Swatch watches are unique so you better purchase it if you like it!
LH.
L’illustré, Swiss magazine, 1996
Marc Gobé, Emotional Branding: The New Paradigm for Connecting Brands to People, Updated and Revised Edition,
Al Ries and Jack Trout, Positioning, The battle for your Mind, McGraw-Hill Companies,
Posted on vendredi, décembre 06, 2013 by Unknown
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