Dress Watch Company  

Brian Hayward and Chantay Crawford  

   

“STANDPOINT” WATCH MARKETING PLAN

SUMMARY By Dress Watch Company  

                                     

 

       

“STANDPOINT” WATCH MARKETING PLAN

SUMMARY By Dress Watch Company

Based on our strengths and an evaluation of the luxury watch market. Dress Watch Company introduces “The Dress Luxury Watch”.

SITUATION ANALYSIS Buyers between the age of 18 and 40 are the only purchasers of branded

luxury watches. More watches per capita are purchased by this group than older buyers and this our main segment of the market. Northeast and Midwest consumers are usually purchases of watches. Strong point-of-purchase support is required because many purchases will be an impulse purchase only when walking pass the jewelry case. Over 80 percent of the market is Concentrated with strong competition from Rolex, Piaget, Louis Vuiton, Breitling, and Cartier. We are permitted to offer the consumer value in a branded luxury fashion watch because we have extensive know-how in the manufacture of precision, high quality, technical timing devices. Our distribution channels cover every outlet for branded luxury watches.

 

OBJECTIVES • We have established a 4% market share in the first year allowed by the

combination of cost-effective luxury design and unique watch shape. • The Dress Watch Company will break-even in 2016.

MARKETING STRATEGIES

Dress Watch Company will introduce a new product; the innovative

“Standpoint” watch in order to increase our revenues and growth rate, Dress Watch will use extensive advertising, expanded distribution and penetration pricing.

ACTION PLAN

Compared to current market offerings, The “Standpoint” watch has strong product benefits. We will offer our unique watch to achieve our objectives, in two designs at a suggested retail price of $945. Over 85 percent of the market, is covered by our current distribution. To access the jewelry store retail channel we will not expand our distribution. We will add a sales trainer to support for our market plan and we will add to our sales force by 7 people. Print and point-of-purchase displays will account for the one million dollars in advertising.

Two-thirds in the first six months of the campaign will be used to schedule television advertising. Our advertising voice share will be considerably higher than that of the four market leaders to achieve consumer awareness in the first year.

 

FINANCIAL ANALYSIS AND EXPECTED RESULTS Sales of 1.5 million dollars and in the first year our advertising campaign will break even.

CONTINGENCY PLANS If our sales are less than we expected, or if our competition increases advertising, we will add $450,000 to our advertising budget and we are prepared to do so.

 

“STANDPOINT” WATCH - THE MARKET PLAN SITUATION ANALYSIS

Dress Watch Company’s core business is luxury consumer clocks, based

on manufacturing high quality Gold, platinum, diamond and precious metal casings. Based on providing consumers with high quality, innovative, luxury watches is what we base this market plan on. Only 8.5 percent of our 2014 profits are represented by our 27 million dollars in net revenue. Sales growth has slowed to a current level of 6 percent annually. Limitations are expected based on the growth in current markets. This Standpoint Watch Project will improve Dress Watch Company’s growth rate tremendously.

Market Analysis Our competition will be several other branded luxury fashion watches. A forecast to be $724 million retail dollars in 2007, growing to $1.21 billion by 2014 is the current market size.

Consumer Behavior

Rolex has changed watch-buying patterns by encouraging ownership of one high-priced, carefully designed luxury branded fashion watch. Assuming availability, brand switching and testing by consumers is hard for high priced watches, assuming availability. Department stores account for the majority of branded luxury fashion watches purchases.

Competitive Analysis Rolex have few extensive networks of distribution but strong name recognition in luxury watch fashion. Cartier and Breitling are strong at the higher price lines.

 

SWOT Analysis

Strengths

· The potential for New Designs can be facilitated by new innovative production methods.

· Well equipped in timepiece distribution

Weaknesses

· Lack of Distribution lack of experience

· Lack of experience in marketing fashion products

Opportunities

· Huge market

· Sales growing slower than the current market

· A demand for innovative products created by consumer demand for luxury fashion watches

Threats

· Concentrated market shares have strong market share

· New market entries highly possible

OBJECTIVES

⁃ We have established a 4% market share in the first year allowed by the combination of cost-effective luxury design and unique watch shape.

• The Dress Watch Company will break-even in 2016. MARKETING STRATEGIES

Dress Watch Company will introduce a new product, the innovative “Standpoint” watch. in order to increase our revenues and growth rate, Dress Watch will use extensive advertising, expanded distribution and penetration pricing.

 

ACTION PLAN

Product

We will introduce 2 different designs in the first year. They will be offered on their own display like Rolex.These are targeted at consumers 35 and over.

Price

The Standpoint watch will be sold for a suggested retail price of $1945. We believe that we have product feature advantages, encouraging the use of a price slightly exceeding the base price Cartier wrist watch.

Distribution We will sell to the national market after introducing The “Standpoint Watch” in the northeast within the first year.

 

Promotion Five new sales representatives that we added will support the development of new distribution outlets. Our sales trainer will train a sales force in the new product. This will be within our $500,000 sales support budget based on an average salary and benefits cost of $100,000 for each position.

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