Term Paper on “Tissot”

Submitted to:

Professor Dr. M. Mahmodul HasanFaculty of MBA Program.

Marketing Management (BUS 620)North South University

Submitted by:

Projornmer PokaSection: 04

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Date of Submission

20th December, 2014.

Term Paper on “Tissot”

Submitted to:

Professor Dr. M. Mahmodul HasanFaculty of MBA Program.

Marketing Management (BUS 620)North South University

Submitted by:

Name IDSharmin Anam Chowdhury 1330479660Shabbir Ahmed 1330941060Simanta Sarker 1331056060

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Borhan Asgar Chy 1330736060

Projornmer PokaSection: 04

Date of Submission

20th December, 2014.

Letter of Transmittal

August 11, 2014

Professor Dr. M. Mahmodul Hasan

Bus620, MBA Program

North South University- 1229.

Subject: Prayer for Submission of the Term Paper on ‘Tissot’

Dear Sir,

It has been a great pleasure for us to work on this report on

‘Tissot’. This report has been prepared by a group of 4 people

as a part of the course (Marketing Management) requirement. It

is prepared after having extensive overall analysis of this

Swiss watch company. We have tried our level best to follow

your guidelines in every aspects of preparing this project.

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The report has given us an opportunity to apply theoretical

knowledge in real world. It also has given us a glimpse of our

individual understanding and skills in various situations. We

sincerely hope that you will admire our teamwork.

Sincerely yours,

Name SignatureSharmin Anam ChowdhurySabbir AhmedSimanta SarkerBorhan Asgar Chy

Acknowle

dgement

At the beginning of our acknowledgement section of this term

paper report, we must show our gratitude to the almighty Allah

for giving us enough courage and strength to prepare the

report in due time. Without his continuous blessings it

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wouldn’t be possible to finish this term paper. Our humble

gratitude is must for our honourable faculty Professor DR. M.

Mahmodul Hasan who gave us the opportunity to do conduct this

report and providing his continuous support and instruction,

which helped us to carry our work forward. His guidelines were

so effective and obvious that it made our work easier and

direct us to the right way. It’s only his contribution, for

which we never got lost focus while working on this term paper

report. Last but not the least we would like to thank our all

group members who worked so hard to prepare the report by due

time and make the report successful.

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Executive

Summary

Tissot Watches Tissot is a luxury watch company that was

founded in Switzerland in 1853 by a father-son team, Charles-

Felicien Tissot and Charles-Emile Tissot. Shortly after the

company began, Tissot introduced the first pocket watch with

two time zones. The mission statement of Tissot is to make

excellence accessible, the 'innovators by tradition' at Tissot

have created a range of watches versatile enough for anyone

looking for a quality Swiss timepiece without breaking the

bank. PESTLE and SWOT analysis is done on Tissot. One of the

strength of Tissot is that they are the part of the Swatch

group that has 28,000 employees across 50 countries with

strong presence in 160 countries. One of the weakness of

Tissot is limited market share growth due to competition.

Their opportunity is high spending power of people and one of

the threat is fake imitations and replicas affect brand image

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and sales. Based on the analysis it is evident that Tissot

brand which cater to the mid-range market, has a strong

support from the swatch group especially with its distribution

network. But also it should be highlighted that especially the

Tissot brand is not up to date with the current trends, for

example catering to the youth, women segment.

Table of

Contents

1. Definition of marketing management

8

2. Mission 8

3. Vision

8

4. Business Plan 97 | P a g e

5. Corporate Strategy

6. Swot Analysis 10

7. PESTEL Analysis 11

8. Michael Porter's Five Forces 12

9.1 Core Marketing Concept 13

9.2 Market Segmentation 16

9.3 Marketing strategies 18

10.Marketing Mix(7p+4c) 19-20

11.Value Chain model 21

12. Total Quality management 21

13. Customer Loyalty 22

14.Brand and Branding of Reliance Communication

23

15.Box analysis of Brand elements 24

16.Brand Dynamic Pyramid 25

17. Five M’s model 26

18. Mass Communication18.1 Advertising Budget and Campaign Cost

27

18.2Sales Promotion and Budget 30

18.3 Events and experiences 30

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18.4 Corporate social Responsibility

31

19.Pricing Strategies 31

20. Break Even Analysis 33

21. Recommendation 34

22. Conclusion 35

23. References 36

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1. Definition of Marketing Management

1.1 Definition of Marketing Management (Theory 2000 – 2011):

Marketing management is the art and science of choosing target

markets and getting, keeping, and growing customers through

creating, delivering, and communicating superior customer

value.

1.2 Definition of Marketing Management (Theory 2012 – 2016 +):

Marketing management depends on the size of the business and

the industry in which the business operates. Effective

marketing management will use a company's resources to

increase its customer base, improve customer opinions of the

company's products and services, and increase the company's

perceived value.

Tissot surely follows this latest definition where they

increase their target customers by innovating new

products for their values customers. Thus they create

value proposition. They believe in competition and hugely

expand money on promotional activities.

2. Mission

With a mission statement to make excellence accessible, the

'innovators by tradition' at Tissot have created a range of

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watches versatile enough for anyone looking for a quality

Swiss timepiece without breaking the bank.

3. Vision

Tissot Watches strives to become one of the leading

international seller / dealer of quality authentic vintage &

luxury watches of value online.

4. Business Plan

Increase the market share of Tissot from 1 % to 5 % over

the next 12 months.

Increase the number of distributors in the UK from 33 to

100, over the next 12 months.

5. Corporate Strategy

The overall strategy for the Tissot re-launch campaign can be

summed up in the following points:

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To reposition Tissot as sporty, elegant and feminine

through a re-launch campaign of the T-TREND, TOUCH

COLLECTIONS

To generate an integrated advertising, direct mail,

point-of-sale, PR and sponsorship campaign focusing on

the themes: social responsibility and creativity.

To communicate the social responsibility and creativity

themes to current and potential new distributors and 22-

35 year old AB working women to increase distribution of

Tissot watches and increase awareness of the brand.

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6. SWOT analysis of Tissot

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Strength

Good advertising. Celebrity brand

ambassadors. Ability to attract

customers with various plans.

Weakness

The brand has a design which is toosimplistic which sometime is easily replicated.

Limited market share growth due tocompetition

SWOT

Analysi

Opportunity

Expansion in various categories possible

High spending power of people

More advertising would help increasing brand

Threat

Competitors having a broader range of productsacross different categories and designs

Fake imitations and replicas affect brand

7. PESTEL analysis of Tissot

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Political

Removal of quantitative restrictions on import watches lead to a threat.

Economical

More people are concerned about their jobs and employment prospects.

11% growth for the jewellery and watches market overthe next five yearsglobally (Mintel, 2010).

Social

Importance of the gifting market for retailers.

Young men aged under-35 are more open to paying higher amountsfor a watch

Costume jewellery is

Technological

Watch brands are taking advantage of new technologies suchas robots and hi-techcoatings.

A notable trend is the use of unconventional

Environmental

Converging the watches main function with healthbenefits would be one way of helping to create new reasons for

Legal

Regulations fair pricing and health and safety.

8. Michael Porter’s five forces

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SUPPLIER POWER:

- Few suppliers available for supplying the ingredients- No suitable substitutes of inputs. - High switching costs to change suppliers. - Difficult to stick with one supplierdue to emerging technology.

DEGREE OF RIVALRY:- Hard to exit due to high sunkcosts of infrastructure & technology.- Competitors: Airtel, Vodafone, Idea, Aircel, TATA Indicom, Docomo.

BUYER POWER:

- High bargaining leverage dueto high competition.- Low cost/price sensitivity.- Established brand identity.- Same volume of buyer to all the watch brand.

RIVALRY

THREAT OF SUBSTITUTE:

- Easy to shift for

the customers to other

options as switching

cost is low.

- Substitute product

for example low price

watch or mobile

watches threaten the

THREAT OF NEWENTRANTS:

- High barriers to entry due to huge capital investments.- Strict Government Policies for securitypurposes.- Access to distribution/ resources by the

9. Core Marketing concept, Market Segmentation & Marketing

strategy

9.1. Core Marketing Concept

Needs, wants, and demands:

All customer segments seek classy and branded watch that makes

a different. However, feature preferences vary in between the

segments. Some people want more of service in less money

whereas some want better looks and classy image of the watch

no matter what it costs. They want the experience that will

give them posh look at the same time they want reasonable

price. People want prestige and luxury with a mid range price

Tissot seams a perfect match for that. To meet up the customer

needs Tissot has got variety of their segment.

Target Markets:

16+ and above.

Young aged people.

Matured age groups.

Professionals.

Business people and travelers.

Athletes

Celebrities

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Tissot advertisements Always holds a meaning:

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Positioning:

Position: Innovators by tradition

the first anti-magnetic watch in 1930; Astrolon, the first

watch with a plastic casing in 1971; Rock watch, the first

watch with a casing made of alpine granite in 1985, followed

by Pearl watch, the first watch with a mother-of-pearl casing

in 1986, then Wood watch, the first watch with a casing made

of wood in 1987. In 1996, Tissot launched its first autoquartz

models with 6-day autonomy and then, in 2001, its famous T-

Touch models with seven additional functions activated by

touching the watch’s crystal.

Tissot has also built its reputation on an incomparable style

and elegance. People the world over recognize the dynamic that

has presided over the brand’s destiny for more than 150 years.

Its deep involvement in sport, its role as Official

Chronometer at top-level national, trans-national and global

events.

Position: Absolute, contemporary

The US designer Calvin Klein and the Swatch Group pooled their

formidable talent in 1997 to create cK watch, a watch brand

with graphic lines that are striking, refined and

contemporary. A new and inimitable type of watch, a fashion

accessory watch. Today, over 200 different Swiss-made models

designed for men as well as women adorn storefronts in more

than 60 countries. Characterized by its essential sexy image

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that translates refined lines and numerous metal surfaces into

sensual curves.

Position: A world of eleganceFrom 1987 to 1995, Balmain watches were manufactured under

exclusive license by the Swatch Group, which supplied its

immense expertise and state-of-the-art watchmaking technology

to the brand and the Parisian fashion house founded in 1945.

In December 1995, the Swatch Group acquired the exclusive

rights to manufacture market and distribute the brand’s

watches throughout the entire world,

Position: Reliability, precision and innovationThe spirit of the famous Certina brand is brought to life by a

tradition of uncompromising excellence and the guaranteed use

of the finest components and materials titanium, 316L

stainless steel, sapphire glass, and the renowned ETA Swiss

Made movements. The company has built its reputation on the

quality of the watch movements made by the Kurth brothers. As

the Swiss leader in mid-range sporting watches, Certina has

become the champion of outstanding quality at an affordable

price. The introduction in 1959 of the concept of double

security is a significant example of this, raising water and

shock resistance to previously unattained levels.

Position: A mark of true design

Mido’s ambition is to produce watches that possess

characteristics typical of the quality and careful

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craftsmanship of a Swiss watch, namely timepieces endowed with

mechanical movements that are wound either by hand or

automatically. Timelessness is the hallmark of its image,

which aims to be clean-cut and refined.

As a specialist in mechanical watches, Mido offers a variety

of models with designs ranging from retro to contemporary, and

from classic to innovative. They all meet the brand’s five

strategic criteria: the Swiss-made label; a distinctive

identity; a high-precision, high-quality mechanical movement;

superior water-resistance, and excellent value for money.

Position: A passion for the sky and the movies

Launch of the world's first battery-powered watch, the

Ventura. In 1972, Hamilton again amazed the world by creating

the first watch with a digital display.

Image: Tissot holds the mid-level among the other

competitors

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9.2. Market Segmentation

Marketing segmentation is to divide the customer base in

cluster groups with different needs and behaviors in order to

create different and appropriate marketing proposition. Tissot

has segments in major bases: geographic, demographic,

psychographic and behavioral.

Geographic:

Segmentation is done on the basis of

Countries/regions/occupation and market density (highly

populated). Country- Tissot the switch brand is. Available in more than

150 countries. Tissot is mainly for the city people who can afford the mid

range watch which sometime difficult of afford for the lower

middle class people

Demographic:

Bases are- Age (16+ and above), income level (Mid range to

abvove), ethnic background (all), life cycle, occupation

(all), education, social class (mid to upper class),

generation. Separate watches for different age & income groups: different

design and looks for youths; elegant and prestigious watch

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for more successful or celebrity. Example: The Tissot Oval-T Watch (model T47.5.385.31) is an

elegant women's watch with PVD bracelet and a sapphire glass

with quartz movement. Water resistant to 100 feet, it lists

for $390.

Psychographic:

In growth stage, Tissot finds it suitable to segment the

market by observing people’s psychology which has changed by

innovation. Based on one’s lifestyle, personality, beliefs, values etc.

Main bases on VALs Framework:

o Believers: Literal, Loyal. (Professionals, executives,

aged, Business, sports person).o Experiencers: Impulsive, variety seeking. (Young

people), Celebrity.

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Behavioral:

Price range can be finding. (High or Mid).

Study showed that aged groups are highly loyal; young users

have split loyalty. Positive attitude groups is found in the market.

Marketing Channels:

Communication channels: Newspapers, Billboards,

Television, Internet, Mail, Radio, Posters. Tissot

recently introduced a web application called 3D augmented

reality that will allow to watches in front of the

computer screen.

Service channels: Swatch group accords great importance

to customer satisfaction, by creating dedication entirely

to customer service activities.

9.3. Marketing Strategy

The ‘Marketing’ Concept:

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Swatch Group and Tissot purely follow the ‘marketing concept’. The

marketing concept holds that the key to achieving

organizational goals consists of the company being more

effective than competitors in creating, delivering, and

communicating superior customer value to its chosen target

markets.

Some significant strategies are:

To reposition Tissot as sporty, elegant and feminine

through a re-launch campaign of the T-TREND, TOUCH

COLLECTIONS.

To generate an integrated advertising, direct mail,

point-of-sale, PR and sponsorship campaign focusing on

the themes: social responsibility and creativity.

To communicate the social responsibility and creativity

themes to current and potential new distributors and 22-

35 year old AB working women to increase distribution of

Tissot watches and increase awareness of the brand.

A watch with three different products, the core product,

the actual product and finally the augmented product.

More focused on actual product offering branding style

and fashion components.

Monobrand watches.

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10. Marketing Mix (7P + 4C)

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Product/Service:Luxury watches: The Tissot T Collection watches (Touch Collections, T-classic, T-Sports, T-trends, T-pocket, and T-Gold); The Tissot Seastar II Automatic watch; The Tissot OvalEtc.

Target

Marketing Mix

People:

Talented, trained and experienced staffs around the globe. Excellent Leadership;

Process:

Automated; Information Technology; Servers and networks; Online serviceprovision;

4C:

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Price:

Reasonable rates; Customerbased pricing strategies (vary from young to business executives); Customer shouldbe able to purchase a

Physical evidence:

Friendly environment at Shop centres. No defect material, Always provide best quality product due to strong Brand inMarket. Smooth

Clients:

Young users (Sporty, Celebrities); Agedusers (40-60) wants Strong Elegancy.

Costs:

Invest more insocial media

marketing.Designing,Campaign, events

time-keeping.Eg: Asian Games,

Convenience: Communications:

Direct or indirect

Target Market

Price:

Reasonable rates; Customerbased pricing strategies (vary from young to business executives); Customer shouldbe able to purchase a Tissot watch in“Tissot Price“.

Physical evidence:

Friendly environment at Shop centres. No defect material, Always provide best quality product due to strong Brand inMarket. Smooth function; problem solving

11. Value Chain Model

Supporting Activities

Multi- stakeholders infrastructure

Customers’ networkmanagement and HR

Improving technological infrastructure

Development and procurement

Primary Sourcin Process Output Sales & After

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Convenience: Communications:

Direct or indirect

M

A

R

G

I

N

Activities g and Input Materials Suppliers

and Operations

Distribution

Marketing

Sales Service and customer insight

12. Total Quality Management

Total Quality Management (TQM) philosophy constitutes a new

paradigm of management. It is a way to continuously improve

performance at every level of operation, in every functional

area of organization through integration of people and

systems. This embodies provision of supporting environment

based on senior management explicit commitment, developing

employees’ competency, collaboration with stakeholders and

change of organizational culture. The ultimate objective is

customer satisfaction. (Brocka & Brocka, 1992; Mohanty &

Lakhe,2002). Implementation of fundamentals of total quality

management has been introduced and practiced in individual

firms in India for quite some time.

Wilkinson and Witcher (1993) summarized TQM as having three

major requirements as follow:

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1. Total: Functional integration and teamwork at all levels in

the organization through institutional management.

2. Quality: Strict adherence to the requirements specified by

customers ensuring use of appropriate tools, techniques

and processes.

3. Management: Creation of enabling environment, commitment

of senior management and provisioning of adequate support

facilities.

In view of the above, Tissot, as a leading Watch company all

over the globe, asserts customer focus, innovations and

excellence in smarter and faster products and services,

empowerment and development of employees, partnership with

suppliers and other stakeholders as its strategic priorities

to achieve excellence through Total Quality Management. The

main focus of these quality management practices is to develop

a knowledge base and long term partnership for sustained

excellence. This watch company put customer’s focus as its

strategic priority. The customer focus at the company is

guided by performance excellence, respect, accountability, and

integrity at all levels. Regular customer feedback is sought

with a view to align the company’s quality objectives to

customers’ needs.

13. Customer Loyalty

"Customer loyalty is when an organization receives the

ultimate reward for the way it interacts with its customers.

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Loyal customers buy more, buy longer and tell more people -

that's true customer loyalty." Competitive advantage can be

achieved through customer loyalty. This is the way to gain the

best kind of customers, repeat customers. Repeat customers

tend to spend more money and provide the best word-of-mouth

advertising.

All parts of Tissot’s are involved in creating loyal

customers: those who produce and deliver your products or

services, reliably day in and day out, as well as those who

create and bring to market new offerings that delight the

customer. Treat them all as members of the same team...the

Customer Loyalty Team...and you will reap the benefits well

into the future.

In a study by Mr. Arun Kumar, a student of Skyline Collage,

titled Dissertation Report On A Critical Analysis Of “Consumer Loyalty “In

Reliance Communication Ltd, the author concluded regarding the

customer loyalty:

The overall satisfaction level of customers of Reliance

is good.

The billing system of Reliance Communication has a

great problem.

The employee service is excellent.

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Passion for excellence and employee’s ability provide

quality service to employee is key for customer

retention.

14. Brand and Branding of Reliance Communication (RCOM)

Branding is a major issue in product strategy. On the one

hand, developing a branded product requires a huge long-term

investment, especially for advertising, promotion, and

packaging.

Tissot Watches radically redefined marketing models in the

world and engaged homes and enterprises directly by having the

ability to deliver physical and virtual products and services

as part of one system. Tissot Watch through its aggressive,

unconventional tactics changed the rules of every element in

marketing. Tissot targeted internally as it looked around for

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the first set of customers. Officials of Tissot realized that

an employee base of more than 50,000 and a shareholder base of

about 3.3 million was the best place to start as far as

customers are concerned. Every employee was offered 10

connections at a discounted rate.

Tissot is known for its mission statement “Gold Value at

Silver Price”. Bundling of hand watches along with the

service. The Tissot Watch brand name embossed on every handset

gave it a unique mileage, while the costs of many of the

advertisements were discounted since they were borne together

with the handset makers.

Toni Parker and Danica Patrick as the brand ambassador for

Tissot Watches. Through these associations, Tissot Watches

looks to highlight the core value of the group- bringing

products to customers that fulfil their needs with unceasing

affordability. These associations also suggests that the

target market for RCOM, and especially Tissot Watch is

essentially the younger generation, who are much deliberate in

Style or style focus they will be more attracted on this brand

on future,

15. Box analysis of Brand Elements (6 Categories)

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Memorable

Meaningful

Likable

Transferable

Adaptable

Protectable

Brand elements are devices, which can be trademarked, that

identify and differentiate the brand. In our case with RCOM

the company uses is parents’ trade name (Tissot) with

individual product name. The former legitimizes the company

with its vast reputation while the latter individualize the

product and gives it a sense of identity.

Tissot Watches can be categorized under Meaningful, Transferable

and

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Protectable brand elements. The reason for such classification is

elaborated below:

1. Meaningful: The name Tissot itself suggest a sense of

trust, dedication sincerity: a brand that you can rely

on. The entire phrase Tissot Watch give an appropriate

identity on what the customers are expected to relate

their services.

2. Transferable: Due to the use of the word Watch, which

itself is a vast term, the company has ample

opportunities to explore this sector and launch new

products related to communications. In fact, RCOM is

already in practice of this strategy, officering several

products under its umbrella.

3. Protectable: The Swatch Group is a limited company trade

mark and has patented its entire brand (including RCOM).

Therefore the brand and its elements such as logo and

other significant to the brand are protectable.

16. Brand Dynamic Pyramid

Strong Relationship

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Weak Relationship

After establishing in 1953, Tissot Watch has gained an

integrated reputation and convergent capacity of high

digital network as it has successfully crossed 61 years

across the globe. It has a customer base and subscribers of

over 131 million where corporate clients include over

39,000.

17. Five M’s of Advertising:

The Five M’s of Advertising are-

1. Mission

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2. Money3. Message 4. Media5. Measurement.

Based on the following particular TV commercial of Tissot, five M’s of advertising has been analyzed:

36 | P a g eMeasurement

Young generations living in thesub-continent

Money

The total campaign cost was million including 5

Message

Compass Altitude Timer Chrono Temperatur

e

18. Mass Communication

18.1 Advertising Budget and Campaign Cost

A typical advertising budget will take into account all

advertising costs. These are:

Advertising agency commissions cost

Purchasing all advertising and promotion media,

including internet, newspaper, radio, TV, and direct

mail (postage) cost.

Outdoor advertising cost

Collateral material cost (Brochures, mailing pieces,

catalogs, etc.)37 | P a g e

Media

ElectronicMedia

Celebrity endorsement

TV Commercial

Outdoor

Measurement

Young generations living in thesub-continent

Mission

Increase Sales & Brand Building

Money

The total campaign cost was million including 5

35%

5%

20%

20%

20%

Advertising Budget and Campaign Cost

Media AdvertisngCollateria MaterialPublic RelationEvents and sponsor Campaign Cost

Media Advertising cost 35%

Collateral Material

cost

5%

Public Relation 20%

Event & Sponsorship 20%

Campaign cost 20%

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5%

15%

10%

5%

Media Advertising Budget

Print MediaElectronic MediaOutdoor MediaInternet

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Print Media 5%Electronic Media 15%Outdoor Media 10%Internet 5%

At the end of the year 2013, the total budget for

advertisement of Tissot was 0.26 million. At the peak Tissot

booked about 5,000 spots in 40 TV channels, 1 million sq ft of

space on hoardings across the country.

A mega advertising campaign was launched across the media to

mark the launch in World Moto GP Championship in 2014. Tissot

has never ceased honoring its slogan ‘innovators by

tradition’.

18.2 Sales Promotion and Budget

Sales promotion:

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Tissot establishes boutique for promoting its sales.

Over 200 fans visited the boutique to meet Parker and view

Tissot’s full assortment of varied product lines

They arrange autograph signing event with the

participation of like Moto Gp world champion Nicky Hayden

to flourish sales.

The big promotion took place when they became the co-

sponsor of Moto GP and official time keeper for various

events.

18.3 Events & Experiences/Sponsors

Tissot has been the Official Timekeeper of the MotoGP™

World Championship since 2001

Tissot has been the title sponsor this year for the ‘2014

Tissot Australian Motorcycle Grand Prix’.

Tissot also sponsored the ‘Rugby Championship” in the

year 2014.

They sponsored the SBK (SuperBike) championship

2014.Cycling is one of the sports to which Tissot is most

committed, having been a sponsor of cycling events for

over a quarter of a century, including for the Tour de

France in 1978, the Tour de Suisse and La Vuelta

d’Espagna in Spain, amongst others.

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18.4 Corporate Social Responsibility

Tissot has been successfully maintaining the following major

Corporate Social Responsibility over the years:

The conservation of the natural environment and its

resources;

The production of ecologically sound products by the

most efficient means;

The use of raw materials, energy resources and water in

moderation;

The avoidance of unnecessary waste;

The use of auxiliary materials that respect the

environment.

19. Pricing Strategy

Steps in Setting Price

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Steps 1: Selecting the Pricing Objectives:

While selecting the price objective t follow the market –

penetration pricing. They set the call rate low to increase

the sales volume for maximize the market share. Pricing

objective is to offer attractive price than any other Swiss

watch brands can give with large volumes.

Step 2: Determine Demand:

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Estimate Cost

Select Pricing Method

Analyze Competitor price Mix

Select Final Price

Select the price Objective

Determine demand

Customers select those companies which emphasizes on

tradition, precision, performance and high standards and

affordable price range. Today, Tissot is the number one Swiss

watch brand in the traditional watch segment in terms of

units.

Step3: Estimate Cost:

While estimate the cost Tissot considers the Production cost,

distribution cost and selling cost plus a decent return of

efforts and risks.

Step4: Analyze Competitor Price Mix:

Tissot has the strong competitors like Longines, Titan, and

casio. Tissot considers competitor costs, prices, offers and

possible reactions. Watch amateurs People can now expect an

unbeatable choice and value proposition across coverage,

customer choice and value proposition, customer choice,

Internet, product and service innovation, distribution and

research.

Step 5: Select Pricing Method

According to competitors price Tissot set price lower than the

other competitors. It uses Value-pricing method. Value pricingmethod is a method where one charges a fairly low price for a high

quality offering. Using value pricing, Tissot re-engineer its

business operations to become a low cost producer without

sacrificing quality and then lower pricing to attract a large number

of value conscious customers.

Step 6: Select Final Price:

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While selecting the final price, Tissot considers thefollowing: 1) Impact of other marketing activities like brand

quality and advertising in relation to competition.2) Companies

pricing policy, 3) Impact of the price on other parties like the

distributors and dealers. The low price offering is not the only

way to grab the market.

20. Break Even Analysis

An analysis to determine the point at which revenue received

equals the costs associated with receiving the revenue. For a

simple breakeven analysis for service companies, the formula is

given below:

Breakeven Sales = Fixed Costs / (1 – Variable Cost % of Sales)

2013( Million

Usd)

2012( Million

Usd)

2011( Million

Usd)Fixed Cost 9536 8652 10,753Variable Cost 2658 5614 5911Sales 12,820 11,863 13,282

Break even sales = 28,941/1-(14183/37,965)

= 46,200 Million dollar

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21. Recommendation

They should do the pricing for High range market.

Free support and service. Recommendation

They should give a significant importance in key market

segment.

They should increase the internet capabilities and online

buyers especially in the UK and Switzerland.

They should emphasize on gifting concept and seasonality.

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46,200 salesvolume

TR=37,965 Millon

=28,941 Million

=14,183 Million

usd

Company can expand in to a niche market by launching

products suitable for customers in a particular market

segment like the youth, gift fashion, sports etc.

Strong logistic and supply chain

They should enlarge network of the sales outlets.

22. Conclusion

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The Swatch Group Ltd. is the number one manufacturer of

finished watches in the world. The Group is active in the

manufacture of finished watches, jewelry, and watch movements

and components. Tissot is part of the swatch group. Founded in

1853 at Le Locle, the birthplace of Swiss watch making, the

Tissot brand is proud to have developed a strong tradition of

quality and innovative Swiss watches. The brand is available

in over 150 countries. The company produces over 6million

watches a year. The Tissot watch is known for their elegance,

class and sporty watch. The brand attract from middle class to

upper class people. Recently trying to get more female

customer and launching different program to catch their

attention. In order to estimate the relative success of the

campaign in terms of its ability to achieve the stated

marketing and communication objectives, a number of control

measures will be carried out during and towards the end of the

campaign.

Increase in market share will be evaluated through tracking of

unit-sales, using inventory data. The level of sales will be

measured in 3 stages: before the launch of the campaign, six

months into the campaign and finally after completion of the

campaign.

Increase in the number of distributors will be assessed by

measuring the number of retailers before the launch and after

completion of the campaign. Recognition tests will be carried

out in order to determine the effectiveness of the

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advertisement in terms of increasing awareness of Tissot, and

also if the media used were effective in reaching the target

audience. Correspondingly, the achievement of the campaign in

terms of re-positioning Tissot be evaluated using qualitative

research obtained during focus-group discussions. Tissot never

comprise with their customers choice and as their tag line is

innovation by tradition they are always try to come up with

innovative products. Their interection with the customers make

them a better brand every time from the start of its journey.

23. Reference

1. Marketing Management – A South Asian Perspective – 14the

edition by Philip Kotler, Kevin Lane Keller, Abraham

Koshy and Mithileshwar Jha; Pearson Prentice Hall.

2. Swatch group Annual Report 20o8.

3. Website of tissot. http://www.tissot.ch/

4. Uk Eeasy’s site for watch.

http://www.ukessays.com/essays/marketing/range-brands-

general-target-market-description-marketing-essay.php

5. Brocka, B., & Brocka, M.S.(1992). Quality Management:

Implementing the Best Ideas of the Masters, Richard D. Irwin,

Homewood, IL.

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6. Wilkinson, A., & Witcher, B. (1993). Holistic Total

Quality Management must take account of political

processes. Total Quality Management, 4(1), 47-55.

7. Khan M.A, (2009), Total Quality Management perspective of cellular

mobile telephone operators in Pakistan, National University of

Modern Languages, Islamabad.

8. Wilkinson, A., & Witcher, B. (1993). Holistic Total

Quality Management must take account of political

processes. Total Quality Management, 4(1), 47-55.

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