Case: Tissot

Tissot SA is a Switch watch producing company , part of Asuag-SSIH , that had an average production of 400 thousand watches per year and yearly average sales of 40 million. The average price per watch was 375 SF, the biggest share of sales are stainless steel watches with value between 175 and 800 SF although there was and another category of gold watches valued 1000-1500 SF. Tissot was placed in European, African, South American and Asian markets. Tissot's image and reputation was weakened during 80's, the production, the labour and the marketing strategy were problematic as well. So, the challenge proposed was to grow and bring profitability to the brand.

Globally the watch market was divided into three categories depending on the prices, first ''C'' including 33% of global sales, second ''B'' 25% of sales and third ''A'' 42% of sales. The greatest markets were the European, the Japanese, the North American and the improving one was this of the Middle East. The total market was growing with a rate of almost 10% per year in volume and 5% in value. Distributors support the trend of selling, usually, two brands in every region, they participate in promotion activities and seek for repairing services always in cooperation with the manufacturers. Categories ''A'' and ''B'' represented the 40% of worldwide sales which came from jewelleries, category ''C'' was being sailed in drugstores, super markets etc.

Thomke had to face a lot of important problems in order Tissot to reach again high levels of profits. Firstly, the image of the brand was obsolete and it was often being compared with Omega's. Secondly, the market share of US, that was important for the firm, was lost. Thirdly, the production was limited, the labor was reduced and the product process was inefficient and ineffective. Then, another important problem was the network of the company. A few luxurious stores were selling products and the promotion was based in Omega's distribution channels that it means it was too poor for the high class Tissot's watches. Finally, wholesalers' were committing great margin of Tissot's watches in order to keep them in their stores, that was a result of former low demand for the products.

In order to create a growth strategy a few tactical decisions had to be made. The main distribution channels should be improved trying to avoid the competition between this brand with Omega, for this action some changes in the price range of Tissot's watchs should be taken. The re-introduction of this portfolio in the US market will be made through a special product portfolio in some specifically channels and in some concepts stores where consumers could find not just Tissot's watches but also some services related to this product. The product line has also to be increased creating new products

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