Marketing Strategy Essay Example | Topics and Well Written Essays - 3000 words

Marketing Strategy - Essay Example Firstly, it presents the current situation of the world of luxury watch brands. This primarily comprises of the market share of the luxury brands of the world. Then it makes an analysis of the various product lines of the brand. A discussion of the way in which the market is segmented by the brand and the purpose of such segmentation have been presented. The environmental analysis of the brand presents the nature of external environment in which the company operates. Then a competitive analysis has been provided to identify the brands which have been posing threat to the brand. This has been done using the contemporary tools and techniques of marketing. Having done this the project proposes suitable recommendations or changes in its marketing strategies. This includes the market segment that the brand should target, the introduction of new styles and designs, the use of technology and the use of best price. This has been done keeping in view the future welfare of the company and the ensuring the welfare of the stakeholders. The World Watch Market The number of millionaires in the world has doubled since 1996. The increase in spending of the customers has resulted in the rise in prices of all kinds of commodities. The luxurious consumer demonstrates a high growth in their propensity of spending. â€Å"In 2006 the typical consumer's spending on luxury items rose 6.6% to reach $56,065, following an increase of 3.8% in spending in 2005† (Aginsky, 2008). USA comprises of a major portion of the market for luxury brands and is expected to expand even further. The following figure shows the market shares of the premium brands of watches in the world. Figure 1: Market Share of the luxury brands of watches of the world (Source: Europa Star, 2005) The number of watches sold in Shanghai amounts to 1.5 million approximately in a year. The sale amounts to 55 million euro. However, 45% of the sales comprises of imports. Although Shanghai’s production of watches remain high, even then the city’s demand for foreign watches remain substantially high. This reflects the reason for the growth of the watch markets in the world. The people’s growing concern for design, style and image constitutes the main reason behind the success of the luxury watch brands of the world. Watches are considered to be fashion accessories and style symbols (Europa Star, 2005). Omega is one of the most popular brands among the high income individuals of the world. â€Å"In the mid-range, Longines, Titoni and Oris lead the field† (Europa Star, 2005). Domestic brands like Casio and Swatch have also grown in demand recently. Another place where the watch market has progressed considerably is Russia. The rise in sales of luxury watches was 39% in the year 2007. This time was considered to be most valuable time for the progress of the watch market. In fact the sale of Swiss watches had increased considerably during the same time. Research reveals that the market conditions of the world was phenomenal and served as the most promising factor towards the flourish of the luxury brands market. The demand for luxury watches rose substantially in Russia, Asia, Middle East, and in America (Aginsky, 2008). Investigation and Analysis Portfolio Analysis Launching of new product lines at different points of time have been the key strategic moves made by the brand. In 2009, Rolex launched a