Intro First founded in Tokyo in 1881, Seiko went up from a business repairing and selling second-hand clocks to just one of the leading names in the watch sector. While Seiko is a well-known producer of inexpensive and luxury watches as well in Asia, its brand image is definitely significantly several abroad. Their particular watches are globally regarded as very trustworthy and having an excellent price to quality ratio, but are not regarded as luxury and they are not placed to a high esteem among collectors and watch enthusiasts.
To the invention of quartz designer watches in 1969, wrist watches were exclusively mechanised. Afterwards, it became much less high-priced to produce precise wrist watches. With all the advent and rising demand for mobile phones, people stopped perceiving wrist watches as being a necessity to share the time, because they can now turn to their mobile phones for this purpose.
Buyers now perceive watches primarily as whether fashion accessory or a status mark, which considerably contributed to the drop widely used for low-end watches. As Seiko can be not deemed a high end luxury watchmaker, selected clientele are not ordering their extravagance wrist watches.
PESTEL analysis in the company Legal| * neighborhood laws in countries where watches happen to be produced can impact company perception (e. g. Hk 1980 transact law requires the country of origin of the watch is declared in line with the country of origin of parts used)| SWOT RESEARCH Strengths 2. Dominant brand in Japan and Asia * Mechatronic-manufacture * Reputation of reliability, top quality and support worldwide * Technology powered innovative products with long tradition/history of craftsmanship| Opportunities * Latest cross technology 2. International luxurious watch industry * Fresh target audience (high-end consumers) 5. Brand recognition/ market repositioning * One marketing strategy for any markets| Weak points * Tiny geographical market * Understanding of cheap brand affordable for low-mid end consumers and poor manufacturer perception in EU and US (~50% of market) * Reasonably priced products 5. Uneven online marketing strategy per mkt. | Threats * Identical technology advancements among opponents * Good competition in all of the segments, specially in low to mid-price region * Stagnating market in low to mid-priced section * Marketplace oriented to high-end products| Problem assertion Alternative Alternatives A. Shift of the Seiko brand 1 . PRO: existing brand with firm tradition reputed for quality and innovation installment payments on your CONS: not really perceived as high-class; long period/money needed to modify perception N. Use existing Credor luxurious line and differentiate it from Seiko 1 . PRO: existing superior brand is known on the Asian market; based on company strategy/vision 2 . DISADVANTAGES: heavy expenditure for increasing brand awareness outside The japanese; cannot work with current positioning C. Alliance and/or acquisition of existing worldwide known high-class brand Advice We advise branding underneath the existing Credor luxury series, as this will enable Seiko to build in its primary values of quality and worldwide manufacturer recognition. Seiko’s Spring Drive will need to separate from Seiko’s low end market watches.
Action Plan: Implementation strategy The rendering plan will certainly consist of the following segments: The item will be built with a group of collaborators designers (in-house and outsourced) and in-house technicians. Once the method designed make, we can start the production of the test amounts. After the evaluation quantities are confirmed, Seiko can proceed to a larger creation scale.
In the meantime, initial conversation gives the selected crowd a pre-look as to the is to come at Seiko. The interaction is performed through specialized niche luxury and collectors’ media and occasions. Exclusively readily available for the customers Seiko can be targeting.
This kind of creates desire to have the hobbyists and gives Seiko the much needed data and opinions on the merchandise, allowing a little window to get the product adjustments. Secondary communication already allows Seiko being more accurate in its predictions about coming to the market, targeting a wider audience of audience, with the rigid targeting to high end, high-class brand potential buyers. We made a decision to have a prelaunch because it is the opportunity to make positive buzz around the cool product.
Collectors are being asked to extremely limited events that are being launched for a picky market. On the event they are the first to find purchase the cool product. We advise that the launch of the product should be executed in the home-based and Seiko’s strongest marketplace Asia which will be followed by other market segments soon. After the launch we have to monitor our success carefully.
Recommended control metrics Crucial Performance Symptoms we believe will be monitored closely: The competition will be evaluated on a quarterly basis.