20 Dec 2010

Case Analysis: Road of Tissot’s Low-cost Marketing

Watches Review Center Report: A confused pig farmers: Feed expensive, hard to sell fattened pigs, but one afterwards, so that revenues do not feed the money arrived.

Currently, there are many domestic "class pig enterprises": the big price hit prime-time TV ads, one end of the year afterwards, that the high cost of marketing campaign, even the costs are retrieved.
For both want to quickly build a strong brand, wants to lower marketing costs relative to the enterprise, how to do?

As many Chinese companies are caught in the "high TV ads bring high sales; TV advertising less, sales drop sharply; TV ads to stop, slow-moving products," the cycle, the Swiss Tissot Swatch Group brand watches were marketing innovation, out of a low-cost way of marketing.

In 2006, Tissot sales in China expected to exceed 200,000, became the largest-selling mid-range in the Swiss watch brand. Tissot sales in China more than Switzerland and Italy to become the world's largest market Tissot.

Tissot, according to data from 2004, Tissot sold in China, about 10 million watches in 2005, grew to about 150,000. Behind the rapid growth of the market is Tissot annual marketing campaign costs are less than 2% of sales. In 2006, Tissot retail sales to exceed 5 billion yuan, its marketing publicity costs but not to 1000 million yuan. China in the marketing costs Tissot limited circumstances, the implementation of "consumer marketing", that is not the pursuit of high visibility, but the pursuit of loyalty, so that each consumer with a Tissot Tissot ambassador and communicator reputation , the experience is worth study and learn from Chinese companies.

As the world's largest watch group - Swatch Group of Switzerland, a total of 18 brands, Tissot brand in its huge family, are mid-range products. Swatch Group is the top Breguet (Breguet); high-end brand Omega, Longines, Rado, etc., Tissot has been insisting on the mission of a century is "let the public in a more high quality low price buy hand "watch. (Offer to a wide public a range of high quality timepieces at an affordable price.) In Switzerland, Tissot is the VW brand, is famous. In 1992, Tissot came to China found that Chinese consumers want the lowest price, buy a real Swiss watches, Swiss quality want to have a Swiss brand of watches.

So Tissot According to the Chinese consumer psychology, brand positioning in the effort to Tissot: Tissot watches to buy not expensive, but there are identity and status, in short, is the "civilian luxury." Tissot watch the current market retail prices between 2000-6000 yuan. Through the "Swiss made" the origin of the concept of marketing, and continue to strengthen the centuries-old culture Tissot accumulation, Tissot has successfully established itself as a slightly higher than in Japan and Hong Kong Watch a file, while the price is very good high-end brands.

In China, the common case is: many companies have neither high-tech products, the quality is very rough, but they are very good at marketing hype. After a series of ads in the impact of the market after the bombing and low-cost, short-term to generate a lot of sales. But soon found that the quality function of consumers is not as vaunted as good, so quickly cast aside by the market.

Tissot opposite. Swiss watch industry of world-class reputation in large part from its swatch quality and reliable performance. Adhere to the low-cost R & D and marketing, always stick to the Swiss Swatch Group, one of the key rules for success. As a member of the Swatch Group, the "quality first, marketing second" is Tissot's creed.

In 2000, Tissot Cantonese Yao Zhongwei China as vice president, marketing. Yao Zhongwei found that while buyers Tissot Tissot's brand loyalty and quality awareness are high, but Tissot's reputation is not high, then only 5% to 7% or so.

Increase awareness, and thus increase sales, become the primary task of Yao Zhongwei. At that time, in addition to Omega, Longines watches and a few high-end luxury brands, is still not used in the mid-range brand image of the spokesperson of the precedent. In fact, back in 1998, Tissot has employed the image of Owen as the spokesman for the world. But Owen has not speak a large scale in China and global marketing.

Yao Zhongwei found that the high profile of Owen in China, young people loved. As a result, China boldly Tissot, Tissot brands in promoting, highlighting Owen. However, this idea was firmly opposed to the Swiss headquarters. Switzerland headquarters that Tissot is to have 150 hundred year history of the brand is already very famous, and how players can not really super Owen and Tissot together? Tissot China in posters advertising design, the intention to Owen on the most prominent position, and worn on the hands Tissot Owen only at the bottom of a discreet location. Headquarters can not accept this even more, so the image on the prohibition of Owen Tissot advertising light boxes.

Tissot China faced a lot of pressure, but Yao Zhongwei still argue that in China, people who know Owen, Tissot's much more than that. After a long period of communication and persuasion, Tissot China headquarters in Switzerland agreed to a bold approach. Tissot China, so more than a dozen cities in China, using Irving speak at events. During the World Cup in 2006, Tissot is not a World Cup sponsor, but the use of Owen and the World Cup itself linked limited edition of 1500 signed Tissot Owen, while trying to get the media to publicize Owen from a different angle to increase the visibility of Owen in China.

In addition to areas outside of China, the world is not so prominent in other countries put together Owen and Tissot. A massive scale in China, the spokesman Owen a result, in 2001 compared with 2000 sales of Tissot increasedby 60%, known also been greatly improved. In 2006, the popularity of 25%, 30% city.

In 2005, Tissot has engaged Barbie Hsu (Big S) spokesperson for the Greater China region, hoping to impress more women as consumers. After Tissot, nearly all of the mid-watch followed suit, also used celebrity endorsement.

In the absence of a lot of money to drop TV commercial, Tissot in the Chinese market is not high profile cases, the strategy is to build brand Tissot: Tissot appear in every place, must pass a very good image, good job everyone the management of consumer touch points.

Prior to 2000, Tissot terminal sales in the Chinese market are mostly very simple counter, the image of a serious shortage of expression. End consumers in the channel did not feel well Tissot's world-class brand strength.

2000, the image of the channel, Tissot first in the watch industry made a very bold improvement. It is in the mid-watch, do the image of the first counter. By 2003, Tissot Yao Zhongwei, vice president of China proposed to establish in the Chinese market, specifically the image of the Office of Tissot. At that time, the image of the special needs of the Office of the cost per square meter, about 1 million, the cost is too high, and in addition to high-end luxury brand Omega with the image of post-room, mid-range watch brands no one dared to do so. For this reason, Tissot's bold marketing ideas in China, at the beginning and has not been recognized by the Swiss headquarters.

At this point, as Tissot China's Yao Zhongwei, head of marketing, began to play a pragmatic and flexible in Guangdong businessmen advantage, through constant communication with headquarters phone, come to dinner in communication with the headquarters, the use of meeting clients and so on, are also to the headquarters of the people deeply feel the need to set up a room. Through a variety of ways, Tissot China finally his own program, "Marketing to the headquarters," the pilot allowed in the main cities.

In 2001, Tissot first in Shanghai set up a special Office of the image 3, the results brought a doubling of sales growth. With the sales figures to support, Tissot Swiss headquarters was completely dispel the doubts. First half of 2006, Tissot major cities in China of 150 images designed rooms.

Office of the image of the practice of post-Tissot, coincident with high-end clothing brand approach has been applied successfully in the apparel industry. The innovation is that it not only as a marketing platform to the terminal, while the direct communication between the terminal building has become the consumer's "high-end branding platform."

After following the image of the special room, since 2005, Tissot and bold Wangfujing in Beijing, Guangzhou, Tianhe District, Wuhan Jianghan Road Pedestrian Street, Causeway Bay, Hong Kong and established a four flagship store, flagship stores of the cost of each are more than 500,000 yuan . Customers can see in the shop with the world, the latest and most complete Tissot products. Prior to this, the domestic watch industry, the price of the watch has never dared to spend huge sums of money building stores.

At present, Tissot in Beijing, Shanghai, Guangzhou, Shenzhen has 4 offices, it has 110 cities in the country, the establishment of more than 500 sales outlets. According to Yao Zhongwei, vice president of strategic vision, Tissot will advance the next few years two strategic initiatives: one on the existing channel network, to continue into the second and third tier urban markets; second largest city in the line, continue to channel innovation and enhance brand image , in the five-star hotels, high-end places, and special places like Sanya Diving Diving established image counter and so on, continue to promote the Tissot "civilian luxury" image.

Have lower prices as a symbol of Swiss watches consumer psychological needs, which is the demand of Chinese consumers. Tissot well around this requirement, do not want to pay big bucks to play in the case of television advertising, resorted to the 3 attracted to create "civilian luxury" image:

Cabinet Office from image to image, from the flagship store to set up five-star hotel in the establishment of the next image display, Tissot's strategy is, and always work hard in the end, so that consumers into the store, that can feel Tissot " civilian luxury "image. Tissot from the first half of 2006 compared to 2005 sales growth of 50% of the performance of another view, Tissot's brand strategy is still evident result.

At present, many companies spend big bucks on TV ads, but often overlooked in the consumer impulsive buying efforts channel terminal, the terminal does not do a good job "brand touch points" building. Tissot opposite to "R & D technology roadmap + + channels of the image of celebrity endorsements," combination of contact points in the channel up and down foot work, low-cost marketing made wonders.

"A fresh recruit, eat days." Last 5 years, Tissot, Swatch Group brand and Switzerland backed the concept of manufacturing, coupled with "marketing channel image display and celebrity endorsements," Zheliang Zhao, has achieved very good results. However, when the watch industry have rallied together and follow suit, while in strengthening homogenization, Tissot continue to rely on to build flagship stores in the channels, create "civilian luxury" image of the practice can continue ahead of the competition and get consumers of all ages, but also through time and the market test.

In 2005, Tissot Swiss headquarters discontinued three product lines, prepared with three new series to replace the old. But the new series out of later than anticipated, so there is a gap between, and just these three series is the best selling series. As a result of sales in China in 2005 Tissot, a lot of pressure on.

Obviously, the taste of Chinese consumers and European consumers is different, and changing rapidly. Swiss watch manufacturers used to do technical unknown culture, and Chinese consumers are accustomed to go along with market speculation business culture, there are also significant differences. Tissot how the Chinese market, China is different from the pressure of market competition in Europe, and is different from the European market, consumer demand, timely delivery to the Swiss headquarters, the headquarters of China to give greater policy support to China for Tissot whether the 2010 annual sales of 30 million, and entered the top three objectives of the watch industry sales amount, apparently of decisive significance!

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