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|The birth of the Swatch |
|Harvard Business Case |
| …show more content…
These two attributes together meant some kind of provocation, funny, fanciful, and the joy of life. The Swatch watches with their unique design were full with emotions. Swatch’s positioning strategy was that they created a new submarket, they served unmet needs. They created a Swiss watch with trustworthy and quality for the mass market. In the mass market there already had been low-end watches, but they offered more, they added design, emotions and personality to their brand. They used the differentiation and the cost efficiency at the same time; they offered quality in low-price.

3. How did Swatch establish sub-category membership? With which sub-category were they attempting to associate? Swatch target market was a new emerging submarket, they sold well designed, unique, “fashion-watches “, but in a low price. Before Swatch, the need for fashion-designed watch had been already existed but it wasn’t available for everyone just the high-end. Creating designed Swiss watches in an affordable price for the mass market established a new sub-market. They had a competitive advantage compared to the other low-end watches because they had their message. A strong, distinct, authentic message that tells people who you are and why you do what you do. The swatch brand associations are: the Swiss high-quality, low cost, provocative and joy of life. What is more important, they