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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