The History of the Swatch
Swatch Group
The Swatch Group Ltd., which is based out of Beil, Switzerland, is responsible for 22 - 25% of the watch production in the world, making them the largest. It was estimated that in 1998, the group produced some 119 million watches with consecutive yearly sales of over 3.2 billion Swiss francs. The Swatch Group has production centers in over 50 locations throughout the world, including but not limited to France, Germany, Italy, USA, the Virgin Islands, Thailand, Malaysia, and China, with its main facility in Switzerland.
Since the beginning of the Swatch Group, its name has become synonymous with "durable, emotional consumer products of high quality." When the first Swatch watch hit the streets of Europe in 1983, the company had a huge obstacle to overcome: a saturated market. It seemed as though the world just couldn't handle another watch to choose form. However, the group decided to pay special attention to quality as well as the buying power of teenagers during the early to mid 80s. With trendy, fashion victims buying the "customizable" watches buy the armful, the company was off and running and has not stopped since.
The Swatch Group has since this time given special interest to other areas of technology such as microelectronics (low-voltage, low-power), micromechanics, and even the automobile industry. The group is also active in the entertainment business. Swatch is also the world's leader in production of sports' timers that are used at all major sporting events as well as all the Olympic Games. Swatch has a promising future in all of these venues, but the company insists on putting its emphasis on its one true passion - time management.
Advertising for Swatch
Since the companies birth, the Swatch Group has done all of its advertising in-house. In 2000, the group decided to hire CDP-Travisully, located in London to liven up their image. CDP-Travisully is known internationally as one of the most innovative and artistic advertising firms. Despite their positive track record, co-founder, chairman, and CEO of Swatch Group Nicholas G. Hayek decided that the tradition of the Swatch Watch was far too important to leave to someone outside of the "family". In 2002, he was proven right. The Cannes Advertising Festival awarded him with Advertiser of the Year for his "creative and innovative talent spanning Swatch product development, Swatch advertising, and achievement of the top position in worldwide watch sales."
Both the history of the company itself and the history of the advertising for Swatch play important roles in the development of a new campaign for Swatch watches. They have both been analyzed further, along with other key points, in the SWOT analysis seen next.
