BUSINESS REPORT –NETFLIX10 Executive SummaryOmega which lends his

BUSINESS REPORT –NETFLIX

1.0 Executive Summary

Omega, which lends his name from the 24th and last letter of the Greek alphabet, signifies accomplishment and follows also a multiple celebrity endorsement strategy that makes its outstanding brand awareness around the world. A very interesting case of a brand who succeeded to follow at the same time a cost leadership and differentiation strategy is Omega. When the Omega was launched on the market, the Swiss watchmaking industry was struggling against Japanese competition and the quartz technology.

The Omega was an incredible innovation because, when it was launched, manager focused at the same time on differentiation with the other Japanese watches and cost leadership to achieve comparable prices than the Japanese watches. They endorse celebrity to promote their brand in advertisements. Besides all the promotions, they are also involved in events, sponsoring, campaigns, public relations, total quality management, corporate social responsibility etc. which add huge value to strengthen the brand. Their dedicated Apps of shopping for both smart phones and tablet have just made everything even easier for customers than before.

Their financial position is also satisfactory, which is favorable for the stakeholders as well. In 2014, their investments and money value was quite well than the last year; they achieved the breakeven value quiet easily. Therefore, they are surely going to achieve more success in the future with its superior quality, innovation and differentiation.?

Table of Contents

1.0 Executive Summary 1

2.0 Business Overview 3

3.0 Critical Success Factors (CSFs) (describe 2 ) 4

4.0 Target Segments 4

Targeting 4

Positioning 5

5.0 Current Marketing Mix ( 7) 5

5.1 Product 5

5.2 Price 5

5.3 Place 5

5.4 Promotion 5

5.5 People 6

5.6 Process 6

5.7 Physical Evidence 6

6.0 Recommendations 6

6.1 Product 6

6.2 Price 6

6.3 Place 6

6.4 Promotion 6

6.5 People 7

6.6 Process 7

6.7 Physical Evidence 7

7.0 References 8

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2.0 Business Overview

OMEGA SA manufactures watches, fine jewelry, and accessories. The company offers fine jewelry, including rings, earrings, necklaces, bracelets, pendants, and charms; and accessories, such as fine leather, belts, bracelets, cufflinks, key holders and others, nato straps, and fine fragrance. It offers its products through its retail stores worldwide. The company was founded in 1848 and is based in Biel, Switzerland. OMEGA SA operates as a subsidiary of The Swatch Group AG.

OMEGA is one of the brands of the Swatch Group which is a well-known manufacturer in the watch market. There are 19 watch brands in the group, and each brand has different price categories in order to fit with different segments of customers. In each year, the group produces thousands of watches and these watches are sent to the group’s worldwide network of distribution organization which makes their products well organized and allocated to the market.

OMEGA has a more than 160 year history in watch market. The brand was originally founded by Louis Brandt in 1848 in Switzerland. After Louis Brandt passed away, his business then passed to his sons, Louis-Paul and Cesar, who shifted the production from a traditional workshop to mechanized production. In 1892, the Brandt brothers manufactured the first watch (Minute-repeater) which can display hours, quarter hours and minutes. And in the year 1894, the 19-line caliber watch was presented, and used the symbol ?© as the brand to introduce to the public. Since then, the brand has taken an important role in watchmaking evolution, technology innovations and development making OMEGA a premier brand in the watch market industry. In addition, excellent marketing strategies have also made it a long lasting brand. (OMEGA, 2010)

A Pioneer in Watchmaking and Beyond

Founded in 1848, OMEGA is a watch brand synonymous with excellence, innovation and precision. The company has constantly been defined by its pioneering spirit, demonstrated by its conquests of the oceans as well as space. Since 1965, the OMEGA Speedmaster has been worn on each of NASA’s piloted missions including all six moon landings and many of history’s greatest explorations beyond Earth.

As well as this, no brand is more actively involved in sports timekeeping. In addition to partnerships in golf, sailing, athletics and swimming, OMEGA has served as the Official Timekeeper of the Olympic Games since 1932. This role has not only involved the precise timing of many different sports and disciplines, but also the consistent development and evolution of the vital equipment that today’s athletes rely on.

In watchmaking, OMEGA’s history has been dedicated to a quest for perfection. This legacy continued in 1999 with the launch of the revolutionary Co-Axial escapement and, in 2015, with the world’s first Master Chronometer. Approved by the Swiss Federal Institute of Metrology (METAS), Master Chronometer certification today represents the Swiss industry’s highest standard of precision, magnetic resistance and chronometric performance.

Perhaps the most famous name to choose OMEGA is James Bond. Since 1995, the spy and his Seamaster have been inseparable and the partnership is one of OMEGA’s most recognized around the world.

The brand’s real-life roster of ambassadors includes George Clooney, Nicole Kidman, Cindy Crawford, Eddie Redmayne, Daniel Craig, Kaia Gerber, Presley Gerber, Rory McIlroy, Sergio Garcia, Michael Phelps, Chad Le Clos, Liu Shishi, Michelle Wie, Buzz Aldrin and Thomas Stafford.

In regards to its social causes, OMEGA has a dedicated partnership with Orbis International, whose Flying Eye Hospital takes high-quality eye health care to some of the world’s remotest regions.

3.0 Critical Success Factors (CSFs) (describe 2 )

• Increase marketing to attract consumers to spend (S1, S3, O3).

• Use its presence on social media for marketing and to attract customer towards its website (S5, O2, O3).

• Develop environmentally friendly products through innovation, at a low cost so that they could be sold at a low price (S2, S4, O4).

• Market products at low prices by offering discounts. This would help increase sales in volumes and is feasible due to low inflation and cost (S2, O3).

• Finance ownership of the property through low interest rate to increase the proportion of owned property to rented property (W1, O5).

• Increase payrolls, provide incentive packages and benefits to employees to reduce turnover and improve work morale. This could be possible as costs are low currently. (W3, O3)

• Use a strong distribution network to reach out to customers and fight off new entrants into the market (S1, T1).

• Use its strong financial position to invest in intellectual property rights. This would help compete with increasing competition in the market (S3, T4).

• Use its innovative teams to find cheaper alternatives to fuel so that these could be used, thereby reducing costs (S4, O3).

• Increase spending on research and development to enable Omega to better compete with competition (W2, T4).

• Provide incentives, increase engagement, or provide a better work environment to retain talent. This will ensure that employees don’t leave and join competitors (W3, T4).

The recommendations below will help to secure the long term future of Omega?s highly valued employees and deliver year-on-year sales and profitability growth for the Omega brand.

• Omega SA should conduct more research to know the need and wants of the customers.

• This company should bring more variation to their product line so that the customers will have more option to choose.

• Omega SA should sponsor some more sports like football and cricket other than golf, swimming.

• Omega SA should target mass people segment by introducing low price range watches.

• Need to focus on quality and come up with more luxurious design with more campaign and program which will give them competitive edge over the close competitors.

The Evolution of Omega’s Advertising Strategy

Priced in excess of $2,000, the luxury watch industry is dependent on promotions and product features to attract the consumer. Omega SA (Omega), the third largest luxury watch maker in the world, is the pioneer of celebrity endorsement in the luxury watch industry. The company, which introduced celebrity endorsement in 1995, has featured many charismatic young men and women confirming Omega as the watch of their choice. The chosen brand ambassadors have been leaders in the field of fashion, sports and the performing arts. Apart from celebrity endorsements, Omega associates itself with, and ensures

its product placement with landmark events. The case also traces the evolution of Omega’s advertising strategy. With

luxury watches growing in popularity as a

status and lifestyle statement, Omega is

looking beyond the mature markets of

Europe and America, to the new developing

markets in the Middle East, India and China.

It has unveiled a strategy tailored to drive

growth in these promising markets. Will

this shift in advertising strategy yield the

desired result?

4.0 Target Segments

Segmentation

STP strategy denotes of Market Segmentation, Market Targeting and Product Positioning strategies. “Marketing segmentation refers to the division of a market into distinct groups of buyers with different needs, characteristics or behavior, who might require separate products or marketing mixes” (Kotler et al, 2002 cited by Bihani, 2004:14). Sarabia (1996) also states “Market segmentation consists of detecting, evaluating and selecting homogeneous groups of individuals, whether they are consumers or not, with the purpose of designing and directing competitive strategies towards them.” Different age, income and social class may affect customers’ preferences or their decision to purchase. OMEGA segmented the brand itself into sporting and pioneering spirit, in the luxury and prestige range. And for the customer, the brand focuses firstly on demographic segmentation. The product is not only for both genders but also for those who are in highly successful business level such as managers or enterprise owners. Since OMEGA set up the brand image as a sporting and pioneering spirit, customers who are interested in sports and care about the technology and qualities of a watch will fall into their customer market.

Targeting

Upon identifying segmentation, targeting is the next step to measure the attractiveness of a potential segment. According to Solomon et al. (2009), marketers will take action to invest resources in a group, and with the aim of turning the group into customers. OMEGA used a differentiated targeting strategy which means that they divided their collections into five series which include Constellation, Seamaster, Speedmaster, De Ville and Specialities series. The different series are for customers with different demands. For example, in the Constellation series, hours are decorated with diamonds instead of numbers which is suitable for customers who pursue status and style. Seamaster and Speedmaster series are targeted to customers who like outdoor activities. Customers who prefer understated luxury may prefer De Ville series. And for those who like to collect special design and limited quantity watches, the Specialities series must be the first choice.

Positioning

With perfect segmentation and targeting, the position stage will be the key point to launch into the market. Kotler (2003:308) stated that “Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market.” Apart from celebrities or rich people who wish to wear a specific watch to reveal their status, the functions of a watch are almost the same and there is no big difference between the watch itself. So it is important to display the brand image or unique features which makes the brand into a special item. OMEGA creates the image that when customers wear their watch, they may feel they are in a better social class, with fashionable and on-trend taste. Also the unique feature such as Seamaster series of OMEGA is made as a professional diving watch, which is suitable for customers who love diving activities. Moreover, co-axial chronograph is an exclusive technology that OMEGA owns which makes the product unique and special. Because positioning is connected mainly with the element of marketing mix (Park, Jaworksi & MacInnis, 1986, cited by Muhlbacher, Dreher & Ritter, 1994, cited by Bihani, 2004:32), it is important to make sure that the marketing mix is well set in place. And this will be explained further in the next section.

5.0 Current Marketing Mix ( 7)

5.1 Product

Omega produces a range of luxury ladies and means watches that have a worldwide reputation for their innovation, quality and precision.

5.2 Price

Most of the Omega brand?s watch sales are in the $4,000 to $8,000 price bracket (Donville and Muller, 2010). Omega operates a „high price? strategy based on a „narrow scope, differentiation position?.

5.3 Place

Omega watches are distributed through an established global distribution network of authorized retailers and an expanding network of wholly owned boutique retail outlets.

5.4 Promotion

Omega?s promotional mix includes:

• Sponsorship of prestigious events such as the Winter Olympics 2010, the European Masters and World Cup of golf, and the 40th anniversary of the first moon landings.

• Trade Fairs – Basel world Trade Fair.

• Celebrity Ambassadors and Endorsement – Olympian Michael Phelps opened the Omega the Omega Boutique in New York City opened on Fifth Avenue Model

• Advertising in Lifestyle magazines.

• Own Website and presence on Facebook, Instagram & Twitter social networks.

5.5 People

Omega SA has a bunch of high quality stuff with experience. The staffs are also trained heavily so that they can perform better and better. This bunch of staffs are maintained and operated by high quality management.

5.6 Process

While manufacturing the watch the company follows automated system to ensure the quality. All the departments maintain a good relationship or create a network to work effectively. Omega is well known for its high quality design in all over the world.

5.7 Physical Evidence

Friendly environment at sell and service center and that ensures the customer satisfaction. Omega also has highly quality management who always work hard to do better. They also have strong supply chain system.

6.0 Recommendations

6.1 Product

Omega produces a range of luxury ladies and means watches that have a worldwide reputation for their innovation, quality and precision.

6.2 Price

Most of the Omega brand?s watch sales are in the $4,000 to $8,000 price bracket (Donville and Muller, 2010). Omega operates a „high price? strategy based on a „narrow scope, differentiation position?.

6.3 Place

Omega watches are distributed through an established global distribution network of authorized retailers and an expanding network of wholly owned boutique retail outlets.

6.4 Promotion

Omega?s promotional mix includes:

• Sponsorship of prestigious events such as the Winter Olympics 2010, the European Masters and World Cup of golf, and the 40th anniversary of the first moon landings.

• Trade Fairs – Basel world Trade Fair.

• Celebrity Ambassadors and Endorsement – Olympian Michael Phelps opened the Omega the Omega Boutique in New York City opened on Fifth Avenue Model

• Advertising in Lifestyle magazines.

• Own Website and presence on face book social network.

6.5 People

Omega SA has a bunch of high quality stuff with experience. The staffs are also trained heavily so that they can perform better and better. This bunch of staffs are maintained and operated by high quality management.

6.6 Process

While manufacturing the watch the company follows automated system to ensure the quality. All the departments maintain a good relationship or create a network to work effectively. Omega is well known for its high quality design in all over the world.

6.7 Physical Evidence

Friendly environment at sell and service center and that ensures the customer satisfaction. Omega also has highly quality management who always work hard to do better. They also have strong supply chain system.