Case Study Classic Watch
Co, we have come to a conclusion.
That the company Is product oriented. The founder of the company Harry Branch used to develop his product and then to find consumers. According to the case, he is quite a conservative person, who prefers old-fashioned business techniques. Twenty years ago, customers were less choosy and they were happy to have a product that Is good value for money. In that case, Harry Branch’s strategy fitted really well.
However, times are changing and new market is much more implicated and severe.
The competition is tough and product with simple design and good durability is not as attractive as it used to be in the past. According to this, product-oriented approach is not likely to succeed. A famous example of product- oriented company Is the original Ford Motor Company.
Henry Ford made one model in one color (black), no matter what the consumer might want. Although he followed this strategy for quite a long time, finally, Ford Motor Company had realized the need of customization and now we have Ford cars in various colors.
The situation is the same with Classic Watch Co. The faster Mr.. Branch realizes that his old techniques are no longer useful – the better sales will improve.
Probably, he should try to change his methods to become more market oriented. For instance, Apple has always been a great example of market-oriented company. Apple has achieved world fame by constantly monitoring market and then adjusting its marketing mix to response to the market needs. The Classic Watch Co should follow example of Apple and start developing new marketing strategy.
To sum up, the old strategy is no longer successful because of following reasons: 1) same old-fashioned design 2) new needs and desires of consumers 3) change In consumers Income (It became higher) 4) the old strategy did not take into account wants of modern consumers 5) reasons for buying watches have changed 3) In our opinion, Harry need to divide market Into 3 segments. The first one – “Economical”, which Include people, who are ready to pay the lowest price for any good-working watches. Even if they will be broken in the fritterers, person from this segment Just substitute them by new one.
They are mainly price-concerned. Brand and design of the watches is not the main point.
The second segment – “Longevity and quality, This group In search for watches with a good durability, quality and design. They ready to overpay for this features. This group is the biggest one. The third segment – “Symbolic” one. Watches should be prestigious, elegant, mainly maid from precious metals and gems.
People from this segment buying not Just watches, but unique qualities and emotional value. To be successful, The Classic Watch
Company need to create watches suitable at least “Economic” and “Longevity and quality” segments. 4) Nowadays The Classic Watch Company is no longer succeeding company, but a policy of market segmentation could turnover situation. Segmenting market can help them Increase sales and market share, protect brand and provide a variety of other benefits. By positioning themselves with a specific benefit, they could create a unique selling proposition that sends a message to a target audience looking 1 OFF Tort Tanat Detente.
IT I née Classic watch company cater to a special audience, teeny could SSE sales among potential customers outside their target audience but increase overall sales by attracting more customers in your target audience.
With specific market segments to reach, they can decrease distribution channels, targeting those outlets that have the highest amount of traffic from their desired customers. By limiting your audience, they can choose magazines, websites, radio and TV stations and events that their customers are more likely to hear, see, visit or attend. As we see, there are plenty of benefits, which are necessary for modern company to survive.