Discuss about the Marketing Management And Digital Communication.
Marketing plan plays the most important role in every organization, and it is associated with the long-term performance of a business in the market. In the modern era, with rising level of competition in the market it has become difficult for companies to survive in the market and due to this reason every business is indulged into the practice of developing marketing plan as per their actual need. The plan allows organizations to attract large number of customers where the real goals of the enterprise can be accomplished easily in every possible manner. Further, at the time of developing marketing plan internal and external environment of the business is analyzed so as to know the range of factors that can influence business performance.
The present study is based on the company named TAG Heuer that design, manufacture, and markets watch and other fashion accessories (Heuer, 2017). The smart watch range of the company has been selected in the present report for preparation of marketing plan. The report covers various tasks that involve SWOT and competitor analysis, development of marketing plan, etc.
TAG Heuer began as Uhrenmanufaktur Heuer AG, founded in 1860 by Edouard Heuer in Switzerland that is indulged into the practice of designing and manufacturing different type of fashion accessories, watches and another form of electronic devices (Time, 2017). The company is one of the leading luxury watch brands that is indulged in the practice of innovation with the deep connection with automobile racing, sports timing and the recent development taking place in the chronograph range of the company. Further, the innovative tourbillion watch range of the business is priced under $20,000 and is quite popular in the entire market. In short, the watch range of the enterprise is worldwide famous where luxury class people prefer to purchase on the continuous basis. The key competitors of the Tag Heuer luxury watches are omega, Longines, and Cartier that are also indulged in the practice of offering luxury watches.
The market where Tag Heuer operates takes into consideration the consumers that prefer to buy luxury products such as branded watches. Generally, people who belong to the luxury class are the real target market of the company, and in turn, different types of products are developed by the business keeping in view their actual requirement. The target market of the business can be highlighted in terms of young, affluent men from the high-income group (Tiago & Veríssimo, 2014). By satisfying their real needs, Tag Heuer is able to operate efficiently in the market and in turn it has acted as the development tool for the business in every possible manner. In short, the market of luxury and branded watches is growing at faster pace and this is providing real growth opportunities to the business.
The main benefit that Tag Heuer provides to its target market is associated with selecting the different types of models in the watch. The smart-watch series of the company has different models and are in different styles that directly attracts a large number of customers towards the product range (Ryan, 2016). The collections of the products are quite unique where it can be said that other companies are not at all able to offer this type of product. The entire smart watch range of Tag Heuer contains six features that are as follows:
All these features make the watches of Tag Heuer attractive and much more unique as compared to other watches that are offered by different companies in the market. The Tag Heuer sports model is quite popular in the market
Tag Heuer offers the wide range of smart-watches to its target market that is of unique quality, and it supports in influencing the purchase behavior of the customers (Armstrong, Kotler, Harker, & Brennan, 2015). The key features present in the product such as sapphire crystal, double safety clasp, water resistant, etc. support in attracting customers, and this has become one of the main reason behind the success of the business in the market where it operates (Royle & Laing, 2014). Sale of every model of the company is very high at the global level. In short, every customer is satisfied with the present product range of the Tag Heuer, and this is one of the main reasons behind the success of the enterprise in the market.
The key competitors of Tag Heuer are Omega and Longines
Omega: The Company also offers the different type of watches that are unique. The range of products involves Globemaster, moon watch, Speedmaster, ladymatic, tourbillion, etc. Each and every product has its unique attribute that directly influences purchase behavior of the target market (Moon & Sprott, 2016). The Company has segregated its watch range into different range such as planet omega, master chronometer, etc. This range has supported Omega to operate efficiently in the market and has acted as the development tool for the business in every possible manner.
Longines: The organization offers the different type of stylish and luxury watches that meet with the requirement of the target market. Further, the hour angle watch of the company is quite famous which is based on the concept of longitude. Apart from this watches are offered for men, women along with other professionals (Mahimairaj & Rank, 2017). So, this allows customers to get attracted towards the unique watch range of the Longines and in turn supports in earning higher profits and sales volume.
For conducting the internal analysis of the business SWOT as one of the tools is considered to be most effective as through this it becomes easy to know the internal strengths and weaknesses of the business along with opportunities and threats present in the external environment.
Strengths: The key strength of the Tag Heuer lies in its established brand where it has been found that brand awareness level is quite high and this has become one of the main reason behind the success of the business in the market (Leeflang, Verhoef, Dahlström, & Freundt, 2014). Further, the brand recall level of the company is also very high as it is the official timekeeper of the different sporting events that are formula one, Olympics, etc. The company is the member of FHH which is the main exclusive club in the Swiss watch industry.
Weaknesses: High competition from the luxury brand with limited market share growth
Opportunities: In the emerging economy growth opportunities are present with the business as luxury watch segment is rising at the faster pace. Apart from this, first end watches are mainly preferred to be purchased from a large number of the customer, and this can act as the main opportunity for the company (Armstrong, Adam, Denize, & Kotler, 2014).
Threats: The main threat to the company is from cheap and fake imitations. Further, in the near future also companies can also expand their operations in the luxury watch segment (Kapferer J. N., 2014).
This represents the overall strength of the business on the basis of which overall operations are carried out by Tag Heuer in the market.
Mission of Tag Heuer is to promote their product range with the effective channel and to remain the pioneer that the company has been over the last 151 years. This reflects the real efficiency of the business. Considering the mission of the business Tag Heuer has planned its overall practices and it provides direction to the organization so that all the desired goals can be accomplished easily and in efficient manner (Heuer, 2017). Company on focuses on development of innovative watches and for promotion of the same effective marketing mediums are undertaken by the business with the motive to influence purchase behavior of the target market.
For effective promotion of smart watch range in the market Tag Heuer the three marketing objectives set by the business are as follows:
The three financial objectives of the Tag Heuer Company is as follows:
In order successfully operate in the market Tag Heuer digital communication plan has been implemented for the business whose key elements are as follows:
Product: The entire range of smart watch will be promoted with the new range of digital communication mode and the main motive behind the same is to enhance customer base of the business. It will include the entire smart watch series such as chronograph, sports etc that majority of the customers prefer to purchase (Kapferer J. N., 2015).
Price: The most appropriate pricing strategy will be competitive where the company will set prices on the basis of its competitors such as Omega, Longines etc. Prices will be lower from the competitors and through this it will be ensured that customers are offered high quality watches at a low price.
Place: For the new range of the products that place of distribution will be e-commerce companies that can assist Tag Heuer in offering the products to the target market. In the modern era, majority of the customers prefer to purchase online and due to this reason online medium has been selected for offering products (Hagtvedt & Patrick, 2016).
Promotion: It will take place with the help of social networking where facebook, twitter and other sites will be used for sharing the key attributes of the product range. Apart from this, email marketing will also be employed.
The present and new range of Tag Heuer smart watches will be promotes with the help of digital communication plan and its action program is as follows:
January: launch of social media and email marketing campaign. Through this the existing performance of the business can be enhanced easily. This will lead to more awareness in the market and will attract large number of customers (De Souza & Ferris, 2015).
February: Integration of facebook and twitter as the main platform in promotion of smart watch range
March: Organizing promotion events on social media platform through which participation of customers will be encouraged (Choi, Ko, & Kim, 2016).
April: The response obtained from the customers will be analyzed with the help of facebook and the difference in sales volume will be identified after this digital communication
The implementation of the digital communication plan will take place in the time period of 1 month through proper planning. Further, the marketing executive and manager of Tag Heuer will be assigned responsibility to ensure whether the digital communication plan is implemented in proper manner or not (Babin & Zikmund, 2015).
Conclusion
The entire study carried out has supported in knowing about the marketing practices of Tag Heuer, Further, it has been identified that the smart watch range of the company belongs to luxury class. The new digital communication plan will be beneficial for the business as through this social media tools will be undertaken for highlighting the unique benefits associated with the product range. This will surely lead to sales enhancement along with high brand awareness.
References
Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Australia: Pearson Australia.
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. London: Pearson Education.
Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Massachusetts: Cengage Learning.
Choi, E., Ko, E., & Kim, A. J. (2016). Explaining and predicting purchase intentions following luxury-fashion brand value co-creation encounters. Journal of Business Research , 5827-5832.
De Souza, I. M., & Ferris, S. P. (2015). Social Media Marketing in Luxury Retail. International Journal of Online Marketing , 18-36.
Hagtvedt, H., & Patrick, V. M. (2016). Gilt and guilt: Should luxury and charity partner at the point of sale?. Journal of Retailing , 56-64.
Heuer, T. (2017, August 13). OUR COMPANY. Retrieved September 28, 2017, from TAG Heuer: https://www.tagheuer.com/en/our-company
Kapferer, J. N. (2015). Kapferer on luxury: How luxury brands can grow yet remain rare. London: Kogan Page Publishers.
Kapferer, J. N. (2014). The future of luxury: Challenges and opportunities. Journal of Brand Management , 716-726.
Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European management journal , 1-12.
Mahimairaj, A. X., & Rank, U. (2017). Content Marketing Impoverished Of Customization Or Sophistication?(With special reference to the PRIME watches. Imperial Journal of Interdisciplinary Research .
Moon, H., & Sprott, D. E. (2016). Ingredient branding for a luxury brand: The role of brand and product fit. Journal of Business Research , 5768-5774.
Royle, J., & Laing, A. (2014). The digital marketing skills gap: Developing a Digital Marketer Model for the communication industries. International Journal of Information Management , 65-73.
Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital generation. London: Kogan Page Publishers.
Tiago, M. T., & Veríssimo, J. M. (2014). Digital marketing and social media: Why bother? Business Horizons , 703-708.
Time, W. (2017, August 21). 10 Things to Know About TAG Heuer. Retrieved Septembeer 28, 2017, from Watch Time : https://www.watchtime.com/featured/10-things-to-know-about-tag-heuer/
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