Section 1

Executive summary

 General Clock manufactures and designs timepieces based on the needs of the market. This marketing plan highlights the marketing segmentation and the strategies the company applied during the production of Spree watches. Also, it reveals the approaches put in place to attract more clients and generate a reliable and sustainable financial income. It is vital to take note of the company’s innovation and the diversification of line of products and its ability to beat the competition. The General Clock Company ensured that it offered consultation services to manufacture more solidified products.

Section 2

Description of the Business

General Clocks was created out of passion and commitment to industrial workers and the fashion market. The objective of the organization was to offer quality services through the creation of watches.  General Clock was established in 1913 to make and promote the business time clock. George Taylor was the founder of General Clock. Taylor saw clocks as a tool for the management of the industrial workforce. During World War 2 the sales skyrocketed and he made higher profit margins. Even though the company was successful because it produced only one product, in 1948, the company restructured its marketing strategy for the sake of developing new products (Martin, 2009). General Clocks had only garnered experience in selling clocks to industrial workers. Industrial conditions were gruesome hence forcing General clocks to develop a viable and flexible product that would manage time for workers. General clocks came up with generic ways of manufacturing watches that would later easily be distributed in industrial sectors. The company's timing was precise, before the rapid progression and development of electrical and semiconductors. General Clocks transformed technical items into finished products hence garnering profits in the long run. In the 1960s the sales went up to $120 million. In the middle of the 1960s, General Clocks came up with a customer department whose mission was to develop and introduce clock related items to the general market. Their design and the industrial experience was appropriate for the manufacture of the clocks. Also, other products would be made from the clocks. In 1995, General Clocks organized its company into five departmental quarters and its profit margins had grown to $400million. Due to the increasing sales and the durability of the products, the sales declined by 5%. In the long run, it was hard to develop its market share and space. Therefore, General Clocks had to formulate a new strategy to combat the lack of growth it witnessed in its market space. Numerous management strategies were discussed but none was worth the risk until the generation of Spree Watch.

Section 3

 The product was launched in 1998 as a commercial clock product. At the time of the manufacture, General Clocks had already specialized in industrial time items and commercial watches. The engineering timing department had created interesting technological advancements which in turn helped it in the making of metal watches. Even though plastics were cheap but durable, metal casings were used on spree watches hence giving the product a chance to entice more consumers. Also, some people doubted if mental casing were durable enough. Hence, the producers gambled with the appearance of the Spree watch (Luan, & Sudhir, 2010). Also, the appearance matter was to be solved through the creation of plastics that resembled metal casings. This new kind of plastics made it possible for customers to buy the watch because they thought that it was metal. Plastics enabled watches to take more than one shape and color. Beating a watch against a hard object would reveal that the manufacturers used plastic and not actual metal.

 A second development in the Spree watch was General Clock’s creation of quartz motions which were inexpensive to generate and duplicate. Industrial timing items needed various plastic-coated tops. These plastic coated tops would be generated economically and later used in the manufacture of wanted patterns. The laminated surfaces were durable and ideal in the long run. These made the product more durable and inexpensive. Unfortunately, some of the targeted consumers were not comfortable with the changes (McDaniel Jr, & Gates, 2018). These customers questioned the durability and the general appearance of the products. The appearance aspect was eradicated through the creation of plastics which resembled metals these revamped plastics made the company assume that they had an advantage over their competitors.

SWOT

In terms of strength, the Spree watch was innovated promptly which made it a perfect product made at a perfect time. Also, it came in different brands. The Spree watches were accompanied with numerous benefits compared to other competitors who offered the same product (Williams, 2015). To attain specific objectives, the company offered special features which came with varied unique appearance (Awais, & Samin, 2012). Also, the watch retailed at $ 45 which is a competitive price for most retailers. In terms of distribution, the company covered 75% of the entire marketplace hence its outreach was enormous. Consequently, the company was able to drive up its sales because its item was distributed to more regions at a faster rate. Also, the advertisement strategy emphasized the watch's design and its pricing which naturally attracted more customers.

 One of the weaknesses of launching a new product is the lack of experience. Most of the time, the General Clock company missed its target market because it had no previous experience in distributing its product to selected regions (Thackeray et al., 2008). Secondly, promotions did not design for the fashion industry. As previously stated, the company made watches for the industrial workforce and had no experience designing watches. Alternatively, they manufactured numerous fashion watches hence failing to define the target market. In the end, there was reduced equity in terms of branding of the product. More so, competitors made fake replications of the Spree watch hence limiting its sale and destroying the brand name. Absence of registered patents, General Clocks found it hard to gain traction as competitors took advantage of the unregistered patents to make more advanced products.

 Once the Spree watch was launched, the company had the chance of capturing a wider market. First, the product was innovative and one of its kind. Therefore, the product was able to create a new space within the watch market. In due time, the sales increased because it was an exclusive product that was not in the market previously (Petruzzelli, 2012).  Most wristwatches forces companies to dig deeper into their creative designs and come up with better products. In summary, the market sales, coupled with an innovative product expanded the market giving way to a conducive business environment in the watch sector.

 The first threat encountered was stiff competition. General Clocks was competing with more than three major companies for the same market niche (Boisen et al., 2018). Even though it diversified its portfolio, garnering sales from other consumers was difficult to the company. Most of the times, the manufacturers did not have a plan on how they could capture new clientele. A part from stiff competition, the fixed pricing made it difficult to make more profit because some people could not afford the ratings.

Porter’s Five Forces

 Consumer had a higher bargaining power. When customers were searching for a watch, they had to compare Spree watch prices to other competitors. Hence, the brand managers could not define features which made the watch stand out as a fashion item. As stated earlier, the competition was stiff hence giving consumer a higher bargaining power. The consumer had to compare the products in terms of price, quality, features, appearance and suitability. Thus, the customer had a wider variety to choose from hence enhancing bargaining power of the clients. At the end of any transaction, the company profit margins were not as higher as perceived due high bargaining power from the consumers. Wrist watches are not a necessity and most people can do without thus, the need to incorporate wrist watches as a fashion product than a necessity (Dunlop, Freeman, & Jones, 2016). A part from consumers’ bargaining power, the suppliers also had a higher bargaining power. There is a vital variance between common brands and unique brands. The consumers have to tell the difference between a premium brand and a common brand. In this particular case, the Spree watch was perceived as a common brand because its watches were made up of plastics which resembled metal. Thus, the customers were duped into buying the product due to metallic appearance. Subsequently, the manufacturers failed to capture the needs of the customers in the product. Use of affordable items made the watch wear out a higher rate than other companies hence the product was seen as a common product and not a premium one.

 Apart from higher bargaining power, threats posed by new entrants has to capacity to decrease profits due to the splitting profits between different companies. The more the new entrants, the lesser the quality of the products and services rendered to the customers. Thus, the appeal of that particular sector decreases. The existence of numerous barriers of entries could reduce these kinds of threats. Barriers could take the shape of mechanical, monetary, premeditated or even legal (Pasquinelli, & Vuignier, 2020). The watch making industry contains numerous barriers of entry which create a tough condition for new entrants in the industry. A mechanical barrier is detailed and can be passed from one generation to the next. Financial barriers hinder jokers from ruining the industry due to the high capital requirements needed to fully meet the requirements.

 Substitution of products is tied to the willingness of the customer to substitute the product. In this particular situation it was difficult to substitute the Spree watch with an alternative watch because the watch had numerous variants to avoid substitute of the product with other brands (Hunger, 2020). In the end, the consumers were not able to substitute the watch because the company had made more than one version of the same item. Some of the factors that made the watch an easy substitute was the affordable pricing, quality and features.

STEEPLE

 The government policies together with taxation gave the General Clocks Company a chance to create an affordable product. Government enables a conducive environment for conducting business in an uninterrupted manner.  The watches were diversified into three regions: luxury brands. Common items and fashioned high end watches (Lasserre, 2017). The diversification enabled the company to capture a wider market and appeal differently to different market spaces. The luxury watches were priced higher than the common watches in an attempt to fill in the gap and attract more customers who would end up either buying a luxury item or a common fashioned watch. The economic aspects allowed the company to diversify its products so that it could meet the immediate wants of consumers. Also the social aspects of the economy enabled the company to make products that are in line with the cultural norms of that particular community. Also, the General Clocks had to brand itself as an international watch maker so that it can expand beyond its host nations. Most of its campaigns were geared towards making the product to fit religious notions and festivities. Thus, the company understood the social and political environment in which the operated under and this gave them a boost in terms of promotions and advertisements.

Due to technological advancement, General Clocks forced itself to incorporate technological aspects into the production of its products. This way, they were able to keep up with the current trends and remain relevant to their roles (David et al., 2013). Four primary rivals were from the Swish Company and Kline. There are numerous other watch making companies which take have taken minute market shares. Stiff competition especially among slowed down the sales of Spree watches in penetrative markets. General Clocks had to come up with a way of reducing the manufacturing components so that the final product can be afforded by most of the potential consumers.

Consumer Behavior

 The consumers were receptive but not excited about the launch of the new product. Hence, the excited was no turned into sales. Most of the consumers were just excited that Spree had launched new watches but they never took the initiative to buy and review the watch for themselves. These indicates that the General Clocks companies failed to effectively target a specific group of consumers. Failing to accurately target consumers implies that the product could not have gained enough traction to garner more sales. Therefore, even though the sales went up after its launch, the consumers who bought the watch were not previous loyal consumers. Purchasing something out of curiosity is not the same as buying it because of the company’s past reputation. Hence, Spree watches could no translated into long term profit gains (Barney, & Hesterly, 2010). Most importantly, consumers are changing their preference due to the changing times.  In more ways than one, people   can do without watches, the ability to capture the needs of the people without using expensive means sometimes fails. Most studies have proved that there is a correlation between. The chance of coming up with more ways of capturing the attention of consumers shifts depending with the times and the situation one finds themselves in. also, retaining the quality of the product is needed for the sake of building a reputable brand.  For the sake of keeping the financial records at par with the profit margins, Spree watches used alternative products to make watches which would be durable and appealing to more people. Thus, consumers are more likely to shift to more durable products than the plastic watches which are not durable. For some time, the company seemed to have captured the essence of the market due to the production of more than one variant, the company captured a wide and varied market but it failed to establish a solid and reliable market share that would have ensured it made consistent profit margins. Compromising the quality of the product. While it is important to make products that capture the interest of the market, it is also vital to meet the need of the consumers and develop a sense of durability for the products in the market spaces.

Section 4

Product Re-Launch

  The watches were to be delivered widely and they came in various designs and colors. The customization of the watches was to appeal to a wider target market. Most people could pick the watch they wanted based on the specifications it had. Some of the people had to come to terms with the acquisition of the more than one way of packaging and reconfiguring the items as they were presented to the clients. Also, the company planned on reintroducing the merchandize based on the means and wants of the people who were not questioned on their preference (Lasserre, 2017). Thus, the watch did not seem unusual to the members of the public as it garnered more sales and came with a more designed outlook that gave people a clear definitive sense of style. For instance, the purple watch came with a golden exterior and a leather strap. Everything was done to perfection and most of the people had to inquire on the particulars which were required to retain the watch at its current quality. In the same way, people had to come up with exclusive ways of matching the watches with their outfit. Simply out, the redesigning of the product gave the watch makers new opportunities and opening for creating more space for the product among the same market space.

Section 5

Product Re-Launch

New Segmentation, Targeting and Positioning

As stated earlier, the watch had to define a specific target market which would ensure the company makes more sustainable sales in the long run. New segmentation among older members of the world. Defining a known segment would mean that the watch has to sale among that particular segmentation. However, if the watch fails to garner enough sales at that particular segmentation, the target can be done in sports. In the meantime, people have to be kept to terms with the initial timing of entire launch (Barney, & Hesterly, 2010). Timing is the best positioning that the company can use to come up with more than one way of reducing saturation of the product in more market. More so, rebranding or policies that would ease of delivery to more consumes are enable the use of watches among numerous consumers. I terms of positioning, the product should be positioned in accessible stores so that all the retailers can showcase them to more consumers. It is vital to note tan most of the items are to be presented as premium even if they are common items. Commonality sometimes downgrades the ability of the item to sale among most people with higher purchasing power and this is the main reason behind branding and packaging the product as premium even though it is common in terms of features.

Section 6

Product Re-Launch New Consumer Behavior

 The consumers are to be attracted to the new packaging and the affordable rates. Most of the consumers are more likely to be drawn to items which have variant specifications which seem to be more common among their peers. Thus, the product has to search for a way of generating a new trend rather than adhering to existing trends. As seen before, the first product failed to capture a certain target segment hence it also failed to capture the needs of the people meet their needs appropriately. Once the product lands on the same (Gamble, Thompson Jr, & Peteraf, 2019). Most of the consumers have to be gravitated towards the product on the first sight and then make reviews after using the product. Some of the most common ways of meeting the needs of the consumers is ensuring that the product makes a good first impression through the appearance and affordable pricing.

Market Mix

 The product will still come in various designs and styles so that it fits into the budget of more consumers. In terms of the pricing, it should not be too low or too high because the main aim is attracting more than one person and given them a reason to purchase the product. For example, odd pricing is preferable as it makes the products attractive to more than target audience (Gamble, Thompson Jr, & Peteraf, 2019). Considering the retail prices to be at $45 or 50 is a good indication of a fair retail price. Additionally, regional marketers and managers should be considered for the distribution of the said watch.

Conclusion and Recommendation

Initially, General Clocks made clocks for industrial workers. The clocks were previously used to manage the workers and help to strategize on human resource management. In later years, the company developed a Spree watch brand whose aim was to cater to the entire public. The spree watch did not define its target market as it came in more than ten variants with the aim of capturing wider audience. Even though the products sales rose up, the profits were not sustainable because the sales were not made among their loyal customers. During the relaunch, the product was seen as affordable and unique due to its packaging style. Most of the marketing was done among the general marketers and marketers due to the ability to extensively cover a larger area.

 

 

 

References

 

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