Breitling watches Case Study Solution
Introduction
Breitling is a Swiss business established in 1884. In more than 100 years, thecompany remains the priority for its customers against its competitors in Swiss watch brands.(Breitling SA, 2013) Breitling has been providing innovative watches for marine and aviation professionals. Proper analysis of Marketing Mix (Price, Place, Product, and Promotion) and appropriate positioning of the brand play an important role in the success of Breitling. The World Watch Report (2009) classifies Breitling as a prestige watch company, targeting a luxury segment having competitors like Tag Heuer, Rolex, Omega, and Hublot. The brand has occupied a space in a changing market of prestige watches through the fine mechanism, precision made quality and signature styling. (The Rolex Watches, 2013) This paper aims to examine the competitive positioning of the brand and its competitors from different elements of marketing mix (Product, Price, Promotion, and Place). This paper also examines that how these elements are being used as tactics to gain the competitive edge in this industry?
Market Positioning
The product is the most important element in the positioning of any brand because it is the ultimate thing being bought by the customer. Since established in 1884, company has been manufacturing watches for aviation, marine and sports professionals. The company has been providing durable, sturdy and accurate products with high quality and a masculine appearance by following its tagline of “Instruments for professional”. Changes in the external environment affect the decision making process and positioning of the brand.(Franck Vigneron, 2004). The recent growth in technology shows different changes in the positioning of Breitling watches that include high competition, changing consumer needs and developing technology in the watch market. Breitling evaluates these changes and modifies its marketing tactics and strategic marketing planning effectively. (Keith Walley, 2014) Technological advancement in the watch market affects the production of watches, product innovation, and distribution channels. Moreover,the brand’s purpose is to satisfy its consumer needs as changing consumer trends affect the market positioning, production administration and distribution channels. Breitling uses the chronographs technology and it is keeping it for creating more time by looking at the changes in the external environment. Breitling 01 and Breitling 73 show that how the company has changed its products by evaluating changes in the external environment. (Bhanot) Technological advancement in the watch market allows Breitling to manufacture a product like Breitling01 that is water resistant and uses the power reserve technology. Moreover, developing technology also allows the company to manufacture product like Breitling 73 which is also water-resistant. The luxury watch market is more stable than the other businesses, as it targets the niche market, and companies focus on providing high quality and accurate chronograph technology for its high status professionals who are looking for preciseness and authority. (Sinclair, 2015)
Brands like Tag here, Rolex and Omega are giving tough competition to Breitling and in this highly competitive market, Breitling should look for a diverse nature of marketing environment.It should identify its strengths and weaknesses and use its strengths to avail the existing opportunities in this industry.(Omega Watches , 2013)(Tag Heuer, 2013). Because of high competition, Breitling has enlarged its scope of consumer groups from the field of flight, aviation to worldwide traveling to stop the unpredictable nature of the market. In addition to this, Breitling should analyze the consumer’s ever-changing expectations, so that they can produce the products accordingly and satisfy the consumer’s requirements and improve the supplier-customer relationship. (GUO Qi, 2013)(Gautschi, 2005)
Targeting and segmentation
Breitling is targeting high-income segment, who is able to pay a premium price for the stylish and creative products. Its target market is different from its main competitors such as Rolex and Omega who target the general consumer market of upper-class people.On the other hand, Breitling’s target market is high-income men and women who are aviation and marine professionals. In terms of psycho graphic factors, people who are successful, seek an exciting lifestyle and are able to pay a premium price for a particular brand. The brand is segmented on demographic factors that include age, gender, income, and successful people with age of 30s to 60s having high disposable income and can afford the premium price of Breitling watches.
Navitimier (Brand of Breitling) targets the members of aviation club and private plane owners.
Moreover, Nightlight collection only targets females who are style conscious and have a love jewelry.
Product
In order to manufacture products that are close to the consumer needs, products are segmented on the basis of the consumer’s occupation such as pilots and astronauts strive who for rigorous accomplishment and have a stylish attitude. Brand satisfies consumer needs by providing durability, practicality and functionality in its products. In demographic factors, the company targets people who strive for self-image and social status. Moreover, different brands allow Breitling to target more than one segment. Breitling has mainly four brands, Super ocean, Navi timer, Nightlight and Professional, and each of the brands have their own segmentation, This brand is equipped with the aviation computer that helps the pilot to check flight plan, measure the flying speed and calculate the fuel consumption. It is the most profitable collection of Breitling. On the other hand, Super ocean collections are water resistant and their safety is 12 times higher than the other brands such as Omega or Rolex. Moreover, Nightlight collection only targets females who are style conscious and have a love jewelry as Nightlight collection comes in diamond decoration and gold dial. (GENTLEMAN, 2013)................
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