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, Marketing Management of Watches, HSC Projects

Marketing Management of Watches

INTRODUCTION TO MARKETING MANAGEMENT:

, Marketing Management of Watches, HSC Projects

Marketing management means management of marketing functions. In other words, marketing management refers to planning, organising, directing and control of the activities which facilitates the exchange of goods and services between producers and consumers or users of products and services.

The term management has been defined as a process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create an exchange that satisfies individual and organisational goals. By the American Management Association.

Philip Kotler has defined Marketing management as the art and science of choosing target markets and getting keeping and growing customers through creating, delivering and communicating superior customer values of management.

In this project, I am going to introduce my product “LIBERA” -The best-branded watch.

History:

A scion of the Italian Binda Group dynasty, best known for making Breil watches, Carlo Crocco left the company to strike out on his own and create a new watch company Moving to Switzerland he formed MDM Geneve and set about designing a watch that he named the LIBERA after the Latin word for “Liber” The watch that he created featured the first natural rubber strap in the history of watchmaking. It took 3 years of research to create the strap. Despite failing to attract a single potential customer on the first day of its debut at the 1980 Basel Watch Fair the watch quickly proved to e a commercial success with sales over $2million in its first year.

Till date, Libera has 184 stores all over the world. In February 2003 LIBERA opened its first Monobrand store in Paris. In October 2015, they opened their newest store in Las Vegas.

PESTEL ANALYSIS:

, Marketing Management of Watches, HSC Projects

A PESTEL analysis is a framework or tool used by marketers to analyse and monitor the macro-environmental (external marketing environment) factor that has an impact on an organisation. The result of which is used to identify threats and weakness which is used in a SWOT Analysis.

  • Legal Factors
  • Political Factors
  • Economic Factors
  • Social Factors
  • Technological Factors
  • Environmental Factors

Legal Factors:

If an organisation like ours trades globally this becomes a very tricky area to get right as each country has its own set of rules & regulations.

Political Factors:

These are all about how and what degree a government intervenes in the economy. Political factors like govt. policy, foreign trade policy, tax policy, labour law, etc. have an impact on our business. We have to adjust our marketing policy accordingly.

Economic Factors:

Economic factors have a significant impact on how our organisation does business and also how profitable they are. Factors include economic factor, interest rates, inflation etc. It’s all about the way people spend their incomes.

Social Factors:

Also known as socio-cultural factors, are the areas that involve the shared belief and attitudes of the population.

Technological Factors:

Rapidly changing technology have a great impact on business. It affects marketing in 3 distinct ways:

New ways of producing goods & services

New ways of communicating with the target market

Environmental Factors:

These have arisen in the last fifteen years or so due to increasing scarcity of raw materials

SWOT ANALYSIS:

, Marketing Management of Watches, HSC Projects

The term SWOT is the acronym made up of four words viz, Strengths, Weaknesses, opportunities and Threats. The first two variables are internal to an organisation whereas the last two are external.

The value of SWOT analysis cannot be over-emphasised. It is rightly said, “Winners recognise their limitations but focus on their strengths; losers recognise their strength but focus on their limitations.” Positive thinking is a strength whereas negative thinking is a weakness.

  1. Helpful in achieving the objective
  2. Harmful to achieving the objective
  3. Internal origin (attributes of the organization)
  4. External origin (attributes of the environment)

Internal factors:

  • Strength
  • weakness

External factors:

  • opportunities
  • Threat

S-Strengths

W-Weakness

O-Opportunities

T-Threat

Strengths:

Strength is defined as something which is positive, good that give to the company an edge in the competitive market. The strong points of an organisation are called as strengths. Libra’s strengths are:

  • Technical Expertise
  • Efficient Human Resource
  • Strong Research and Development Department.
  • Possession of physical Assets.

Weakness:

Weakness refers to something which one lacks. It is something which restricts us to move forward. A company should make analysis and find out its minus points. Some of the weaknesses in our business are:

  1. Labour problems resulting in strikes and lockouts.
  2. Underutilised plant capacity.
  3. Narrow product lines.
  4. Lack of proper distribution system.

Opportunities:

Opportunities are entirely concerning the business environment. Some are:

  1. To expand product lines.
  2. To enter the foreign markets.
  3. To acquire rival firms.
  4. To create an additional share in the market by snatching it from rivals.
  5. To use the latest technologies in the business.

Opportunities may take the form of profit opportunities in the market.

Threats:

With every opportunity, there also goes along certain threats which may adversely affect the profitability and competitive capability of an enterprise.

  1. New competitors may enter the field.
  2. There may be a change in the policies of the foreign Government.
  3. Threat from companies making sales through e-commerce.
  4. There may be a change in the policies of Government and the introduction of a new regulatory requirement.
  5. There may be a shift in buyers needs and tastes.

GATHERING AND ANALYSING MARKET INFORMATION:

One of the important functions of a market is to gather and analyse market information. This is necessary to identify the needs of the customer and take various decisions for the successful marketing of the products and services.

With the growth of computer, a new trend has emerged in the collection of market information Our Company uses interactive sites on the internet to gather customer’s views and opinion, before taking important business decisions.

LIBERA uses customer’s feedback to improvise and ask the customer about the choice of product they want. Our Personnel directly link with the customer and study the trend the society follow. We also have to keep pace with a rapidly changing environment and have to know the need and choices of customers. So we have to keep yourselves updated by gathering market information.

MARKETING STRATEGY:

Marketing Strategy is the brain of a marketing plan. Marketing strategy is a functional strategy. It is related to marketing as one functional area of business Philp Kotler defines marketing strategy as a consistent, appropriate and feasible set of principles through which a particular company hopes to achieve its long-term customer satisfaction and profitability objectives in a, particularly competitive environment.

It is based on corporate marketing objectives and it is implemented by a coordinated marketing action programme, viz, marketing mix.

Subdivision Of Marketing Strategy:

  1. Marketing Objectives- eg. Choice of markets, sales volume, sales revenue, and profitability target.

Setting objectives is the most vital step in marketing planning. A sales volume objective is based on the sales forecast which is the basis for the marketing planning Objectives of sales, pricing, promotion is stated in specific and measurable terms.

Our Company’s Present Objectives Are:

  1. To innovate new product lines.
  2. To increase or improvise our product quality
  3. Marketing Mix- in the form of the marketing programme to achieve the set marketing objectives as well as overall company objectives. Marketing mix covers product mix, price mix, distribution mix, promotion mix.

Marketing Strategy:

  • Services
  • Promotion
  • Customer
  • Products
  • Pricing
  • Graphics
  • Print
  • Blogs
  • Advertising
  • Publicity
  • Research
  • Social media
  • Branding

4Ps of Marketing:

  • Promotion
  • Place
  • Product
  • Pricing

MARKETING MIX:

The marketing mix has been defined as the “set of marketing tools that the firm uses to pursue its marketing objectives in the target”.

PRODUCT:

1. Designing:

LIBRA’S Vision is to develop luxury timepieces that ‘fuse’ tradition with innovation, a unique philosophy seen in the ‘classic Fusion’ collection, combining classical watchmaking and cutting edge design with exceptional craftsmanship.

Creativity can come about in the most curious ways. From reading through the meals of history to a sudden stroke of genius while strolling through park the sources of inspiration are endless. At the LIBERA design workshop, such ideas are brought to friction through the synergy that exists between the various experts and departments. From a sketch of a product or movement to a virtual 3D model followed by a working prototype and finally serial production the entire process requires patience, expertise and a lot of trial and error.

  • Sketch: A new watch design starts as a rough sketch on paper, where the proportions and aesthetical elements are defined
  • Movement: The movement is designed around the concept, taking into account not only the functions but also the aesthetic presentation.
  • Prototype: A functioning yet raw version of both movement as well as the case are manufactured to test before serial production.

 

2. Branding:

To distinguish a manufacturer’s product from the other brand names are attached to the products. “A name, term, symbol or a design or a combination of them which is intended to identify the goods of one seller or group of sellers and to differentiate them from those of competitors. It includes brand names, designs and symbols.

  • Brand Name:

That part of a brand which can be spoken is called a brand name. Brand Name is the verbal component of a brand.

Our Company, Libera International Ltd; uses “LIBERA” as the brand name for our product(watches).

  • Brand Mark:

That part of a brand which can be recognised but which is not utterable is called brand mark. It appears in the form of a symbol, design, distinct, colour scheme or lettering….

Our company Libera International Ltd. Uses the presented symbol for watches.

  • Tag Line:

Tag Line is a short text which serves to clarify a thought for or is designed with a form of the dramatic effect the idea behind the tagline is what the product expresses.

“Become Who you Are”

LIBERA WATCHES

3. Packaging:

One of the most important developments affecting the business world in recent years has been in the area of packaging. Packaging refers to the act of designing and producing the container or wrapper of a product. Packaging plays a vital role in the marketing success or failure of many products particularly the consumer durable products.

4. Labelling:

A simple looking but important task in the marketing of goods relates to designing the label to be put on the detailed information about the product its contents, method of use etc.

PRICING:

, Marketing Management of Watches, HSC Projects

Price may be defined as the amount of money paid by a buyer in consideration of the purchase of a product or a service. Pricing is used as a regulator of the demand for a product. Pricing is considered to be an effective competitive weapon.

It is a single most important factor affecting the revenue and profits of a firm. Pricing occupies an important place in the marketing of goods and services by a firm No product can be launched without a price tag or at least some guidelines for pricing.

Attaining Quality Leadership:

We believe in attaining Product Quality Leadership in the market. Therefore, We charge higher prices in the market. Therefore we charge higher prices then our competitors to cover the cost of Research and Development of our products.

PHYSICAL DISTRIBUTION:

It is concerned with making the goods and services available in the right place so that people can purchase the same.

Engaged in Direct Channel:

Our company follow the Direct channel for distribution of watches. We have 184 stores to deliver watches to us. Customers we believe in direct contacting with the customer and provide him with the best experience and also it helps users to connect with our customers and cater to their needs.

We also sell our products Online through interactive sites to reach our customers where there is no store of LIBERA. We deliver the product the way customer wants.

CUSTOM MADE WATCHES:

Custom Made Watches are made to fit the needs or requirements of a particular customer. First, the specifications are taken from the customer about what they like, designing, colours, materials, etc. Then watch is designed according to customers preferences and a prototype is presented to the customer. If everything is final then the original custom Made Watch is made by the Artists and delivered to the customer.

Also, the delivery of the watch is according to the customer. Delivery is made by our personnel and handed over to the customer in special ways which make that moment memorable.

PROMOTION:

, Marketing Management of Watches, HSC Projects

Promotion is the persuasive communication about the product by the officer to the prospect. It covers advertising, personal selling sales promotion, publicity, public relations exhibition and demonstration used in promotion. Largely it deals with non-price competition.

“A satisfied customer is

Your best – advertisement.”

Exhibition:

An exhibition is an organised presentation and display of watches. We organise our annual exhibition for our customers as well as watch lovers. We showcase our new edition best-selected watches. LIBERA believes in expressing and finding new boundaries.

Newspapers & Magazines:

Newspapers are the most effective and powerful medium for advertising. Newspapers contain valuable information concerning different current events. There is a separate advertisement department in every newspaper where we give our adds. On Sundays sometimes we also give full page adds.

Magazines or periodicals are other important media of communication. These are read with more interest from the readers as compared to newspapers. Advertisement given in magazines is more descriptive and attractive. There are also special-purpose magazines on different subjects. We give our advertisement in watches magazines so that the potential customer come to know about us.

“When you take your life in your hands, you need a good watch

On your wrist”

Window Display:

, Marketing Management of Watches, HSC Projects

It is a common method which is usually undertaken by retailers Who display their products in the shop windows to attract the customers. This is also known as an exterior display. All stores of LIBERA have window display. It is the most effective and direct method of influencing people.

The window display has direct appeal to the onlookers. It acts as a silent salesman. Most care should be undertaken to display the product in Windows.

Sales Promotion:

Sales Promotion refers to short-term incentives which are designed to encourage the buyers to make immediate purchase of a product or service. We provide a discount on special occasions to our customers We also use other sales promotion techniques from time to time.

LIBERA follows THE 3 Extended P’s:

  • PEOPLE
  • PROCESS
  • PHYSICAL EVIDENCE

People:

People of both the target market and people directly related to the business. LIBERA follows this. P because the company’s employees are important in marketing because they are the ones who deliver superior service to the clients. Having the right people is essential because they are as much a part of our business offering as the products we are offering.

Additionally, they’ll be more open to honest feedback about the business and input their own thoughts and passions which can scale and grow the business.

Process:

LIBERA believe systems and processes of the organisation affect the execution of the service. So we have to make sure that we have a well-tailored process in place to minimize cost. It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively. Tweaking and enhancements can come later to “tighten up” a business to minimize cost and maximise profits.

Physical Evidence:

In our company, there should be physical evidence that the product was delivered. Additionally, physical evidence pertains also to how a business and its products are perceived in the market place.

It is the physical evidence of a business presence and establishment. Almost all services include some physical element even if the bulk of what the consumer is paying for is intangible.

  • DISCOVER
  • DEFINE
  • DESIGN
  • DELIVER
  • DATA
  • PROCESs

THE 8TH P THAT MAKES US:

Productivity & Quality:

In the same sphere of thinking, there are 8 P’s in the Marketing Mix. The final P is Productivity & Quality. This came from old Services Marketing Mix and is folded into the Extended Marketing Mix by some marketers so what does it mean?

This P asks “is what you’re offering your customer a good deal?.” This is less about you as a business improving your own productivity for cost management and more about how your company passes this onto its customers.

LIBERA believes in best productivity and quality to give to customers and cater to the needs of the masses.

COMPETITORS’ BLOG:

RADO:

, Marketing Management of Watches, HSC Projects

Rado is a Swiss high range manufacturer of watches, with headquarters in Lengnass proof materials a field in which it is considered a pioneer. Today the company produces about half a million watches a year with a staff of about 470 in total.

Rado is Libera’s biggest competitors and is present in more than 130 countries.

ROLEX:

, Marketing Management of Watches, HSC Projects

Rolex SA and it’s subsidiary Montres Tudor SA design, manufacturer, distribute and service wristwatches sold under the Rolex No.72 on its 2014 list of the world’s most powerful global brands.

IWC(INTERNATIONAL WATCH COMPANY):

International Watch is also known as IWC is a luxury swiss watch located un Schaffhausen Switzerland and founded by American watchmaker Florentine Ariosto James in 1868.

OMEGA:

Omega SA is a Swiss luxury watchmaker based in Biel, Switzerland, Britain’s Royal Flying corps choose Omega watches in 1917 as it’s as its official timekeepers for its combat units. Omega watches were the choice of NASA and the first watch on Moon in 1969.

MARKET SHARE:

Rado has the biggest market share of 18.3%. Libera is the second among the lot with 15.7% market share among all then is IWC with a 5.2% market share in the world Last but not least is Omega have a 4.7% market share.

With the increasing quality and demand of Libera, the future will be of Libera!!

GOODWILL:

Rado has great goodwill and is at the top in the leaderboard in goodwill. Then comes Rolex because it is a very old brand in the market with consistent best quality products.

LIBERA stands third in the lot as it is a new company as compared to the top 2 companies. Popularity and goodwill are increasing day by day and will soon rule the industry. Omega and then IWC comes in the list.

CONCLUSION:

LIBERA is a new company compared to other companies in this industry at this stage. LIBERA has flourished at a very fast pace due to its marketing strategies. LIBERA has won the hearts of millions of customers in very less time due to the best facilities provided by our company. Adopting and innovating new ways to improve our marketing is our priority.

LIBERA’S Mission is to be the biggest watchmaker in the world with the best quality and productivity our custom made watches segment is showing tremendous potential and growth in just a few years.

Our workforce follows the mission

“To Craft, not to Make”.

Our engineers and designers craft new watches for different occasions & are the best at their work.

Our Marketers link to the product and serve the customers their best. The management is

Following the best mixture of the marketing mix and makes continuous efforts to improvise our marketing mix day by day.

The day is no far when we will become the biggest company in our industry.

Certificate:

This is to certify that of commerce of Guru Nanak International Public School Model Town, Ludhiana has completed his project file under my supervision. He has taken proper care and shown it most sincerity in the completion of this project.

I certify that this project is up to my expectation and as per the guidelines issued by CBSE.

Acknowledgement:

I am very thankful for my business studies teacher, Mrs Mamta, who helped me in analyzing the application of Marketing Management. She made my concepts more clear, enhanced my knowledge and help me realize the importance of Marketing Management.

I am also thankful to CBSE for giving me such an amazing opportunity of making this project and giving suitable instructions and guidelines for the project.

About Emadh Dawre

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