First, swatch is different than any other watch in industries because their production is in Switzerland, where labor costs are very high. To solve this problem, direct labor costs are less than 10% of the total cost of manufacturing. In addition, they reduced the number of individuals from 92 to 51 in three major changes in their production technology, which reduced costs. Another difference is that the sealing device, which is made of cheap plastic that has created a controversy, because the Swiss watch industry has always been known of the highest quality materials used, additional the design is very different then any other watches industry, they sell the design of the product with a witty, use strong colors, arrogance, this is because a lot of other brands of a change to distinguish between traditional watches with soft color. The design is numerous, four times they have to collect the need, so in these elections they choose the best model, which is much better for other companies.
From traditional differentiation is their sales limited edition of 120 watch watch industry, carry the same price, and to achieve highly profitable at the same time, brought a lot of great publicity in the media. They look at first production and introduce incense to the first. Price is one the competitive advantage also, not because it is cheap, but it has the same price over ten years of production which is very steady. Increase, the price is relatively cheap, considering this is a Swiss watch. The news of the swatch is different because they use unorthodoxpromotional stunt, they spend on swatch advertising 30% of retail prices. They also have a swatch collectors’ club, where the exclusive collector does not read each year.
The retail approach is different, too. They avoid traditional watch shops and are always jewelry stores. Instead, they tend to product it ´ gauge store fruit market or miniboutiques focus on brand. This last store has increased a lot, from 1992 to 27stores worldwide. Also different is its marketing dispersion and concentration of manufacturing.
Finally, more important is the difference between a unique information, they have. They try to sell emotional products. Their advantage is that it is a product that can live with customers.