Profile History 4 Questions - Zentraler Informatikdienst ...a0025537/php/ABWLs.off/FK...cheaper...
Transcript of Profile History 4 Questions - Zentraler Informatikdienst ...a0025537/php/ABWLs.off/FK...cheaper...
International Marketing – Mag. K. Roth
Group 2Florian Antos
Christoph GluszkoChristian Schromm
Vladimir Slon1
ProfileHistory4 Questions
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Company Name: SEIKO WATCH CORPORATION
Start of Operation July 2001
Paid-in Capital 33 million Euro
Number of Employees 453 (March 2006)
Business Activities: Product planning and sales of watches for domestic and overseas market
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1881 Hattori, predecessor of today's Seiko Corporation, established.
1892 production of wall clocks
1913 first japanese wristwatch
1924 „SEIKO“ brand first used on timepieces
1969 first quartz watch
1964-2005 official timer of Olympic (Winter)Games and Championships
2001 independent watch division „Seiko Watch Corp.“
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Are customerswho buy watches price sensitive?
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Price Price sensitivitysensitivity
price sensitive segment:
• Danger of profit margins eroded by pricecompetition
• Unattractive segments
• Competition based on price-factors
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Price Price -- classclass
Disney30 €
NikePulsarLorus150-45 €
PulsarNikeDolce & Gabbana
Breil400- 150 €
SeikoUp to 4500 €
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Expensive clocks: e.g. Seiko, Breitling, Rolex
not price sensitive
high value
high ability to pay of customers
excess demand
high price doesn‘t scare of customers
Customer-service and quality important
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Price Price sensitivitysensitivity
cheaper clocks: e.g. Disney, Lorus, Swatch,…
More price sensitive
Customers more likely to switch betweenbrands
Also brand loyality in cheap sector
Penetration strategy
Price advantage important
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Price Price sensitivitysensitivity
SeikoSeiko‘‘ss pricingpricing strategystrategy
Price setting problemE-marketing / Internet
Downward pressure on prices through searchengines: geizhals.at, froogle.com, kelkoo.com,…
Dynamic pricing websites:○ Consumer set prices: e.g. Ebay.com,
lastminute.com, one-two-sold.com…
Describe Seiko‘s generalpricing strategy for the brandsit markets.
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General General pricingpricing strategystrategy
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What does the company‘spositioning strategy have to dowith its pricing strategy?
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PositioningPositioning StrategyStrategy
launch of new products
major influence on price
choice of target market
value people place on product
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25-45 years oldupmarket adults,higher than averageincome
Is it worth it?
high quality: many patentshigh-tech productspartly hand-craftedestablished brand
Target market
Value of product
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SeikoSeiko‘‘ss pricingpricing strategystrategy
New New productproduct launchlaunch strategiesstrategies
Slowpenetration
Rapid penetrationLow
SlowSkimming
Rapid SkimmingHigh
LowHigh
SEIKO
Promotion
Price
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How can Seiko justify theprice differences between thevarious brands it manages
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Seiko
Higher price because of higher quality
Premium materials e.g. gemstones
Different target market
Prices range from about 7500 to 150 Euro
Additional guarantee
Exclusivity: low price destroy image
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Source
www.seiko.co.uk 24th Nov. 2006
www.seiko.co.jp 27th Nov. 2006
D. Jobber, Principles and Practice of Marketing
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