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The conventional watchmakers domestic and foreign- had always aimed...

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The conventional watchmakers domestic and foreign- had always aimed...

The conventional watchmakers domestic and foreign- had always aimed at customers who thought of watches as high-priced, high-quality symbols to mark special events-like graduations or retirement. Advertising was concentrated around Christmas and graduation time and stressed a watch's symbolic appeal. Expensive jewelry stores were the main retail outlets. This commonly accepted strategy of the major watch companies ignored people in the target market that just wanted to tell the time and were interested in a reliable, low-priced watch. So the U.S. TimeCompany developed a successful strategy around its Timex watches and became the world's largestwatch company. Timex completely upset the watch industry foreign and domestic- not only by -offering a good-quality watch (with a one-year repair or replacement guarantee) at 1/10 the price of existing watches and by selling through lower-cost channels of distribution. Its watches were widely available in drugstores, discount houses, and nearly any other retail stores that would carry them. Marketing managers at Timex soon faced a new challenge. However, Timex soon had to face a big challenge: Texas Instruments, a new competitor in the watch market, took the industry by storm with its low-cost but very accurate electronic watches using the same channels Timex had originally developed. But other firms quickly developed a watch that used a more stylish liquid crystal display for the digital readout. Texas Instruments could not change quickly enough to keep up, and the other companies took away its customers. The competition became so intense that Texas Instruments stopped marketing watches. While Timex and others were focusing on lower-priced watches, Japan's Seiko captured a commanding share of the high-priced gift market for its stylish and accurate quartz watches by obtaining a strong distribution. .Then Switzerland's Swatch launched its colourful, affordable plastic watches and changed what consumers see when they check the time. Swatch promoted its watches as fashion accessories and set them apart from those of other firms, whose ads squabbled about whose watches were most accurate and dependable. Swatch was also able to attract new retailers by focusing its distribution on upscale fashion and department stores. The total size of the watch market increased because of an emergent fashion trend in consumer usage by which consumers bought several watches to match different fashions.The economic downturn in the early 1990s brought more changes. Consumers were more cost-conscious and less interested in expensive watches like those made by Rolex, which was the "in" status symbol a few years earlier. The re-emergence of value-seeking customers prompted Timex to return to its famous advertising tagline of the 1960s: "It takes a licking and keeps on ticking." Its position as the expensive but -durable choice has helped it strengthen its distribution and has given it a chance to get shelf space for new products, like its Indiglo line beginning the 2000, another short economic recession hit, and the total market for watches was growing at only about 1 % a year. To spark higher sales of its lines, Timex, still targeting its loyal customer base pushed to introduce watches that combine time-telling and other needs. For example, its women's fitness watch includes a pulse timer and on-screen displays; Timex also took advantage of new technologies by introducing its I-control technology, which made its watches incredibly easy to use. The challenge did not stop there because Fossil came up with a Microsoft operating system to connect to wireless networks to provide information such as traffic, news and weather reports. Unfortunately for Fossil, accidents were reported as a result of drivers using the watches, so governments prohibited the use of these watches

 

Question # 5 Recommend 2 segmentation bases that Timex use to segment the market before launching their watch line. Explain the reason for each.

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Answered by leonardclarino88 on coursehero.com

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sectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. Fusce dui lectus,

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