Challenges and Marketing Activities of Longines Luxury Watchmaker

This report discusses the challenges faced by Longines luxury watchmaker in managing their marketing operations. It also analyzes the current marketing activities undertaken by the company. Additionally, it explores two key trends in marketing management.

MARKETING
MANAGEMENT

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Contents
INTRODUCTION......................................................................................................................1
Two key challenges in managing Longines marketing operations............................................1
Current marketing activities undertaken by Longines...............................................................3
Two key trends in marketing management................................................................................4
Conclusion..................................................................................................................................6
REFERENCES...........................................................................................................................6

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INTRODUCTION
Luxury products business is facing a very different kind of challenges. There are several
initiatives taken by these luxury brand makers so as to confront these challenges. There are
many challenges being faced by the company as the environment for business has changed
considerably. The competition has become huge in almost all the markets of the world
(Donzé, 2017). In such an environment, it is essential for the company to analyse its
marketing activities that is undertaken by the firm. It is also necessary to evaluate the extent
to which these activities help in achieving these objectives of the firm. The major key trends
in marketing needs to be analysed by any company. Compagnie Des Montres Longines
Francillon S.A. also known as Longines is a luxury watchmaker from Switzerland. It was
established in 1832 by Auguste Agassiz. Since 1983, this company operates as a subsidiary of
the Swiss Swatch Group.
This report explains the two major challenges faced by Longines. It also provides the analysis
of current marketing activities of the cited firm. At last, the two major key trends in the
marketing management have been elaborated.
Two key challenges in managing Longines marketing operations
For any company marketing is one of the biggest factors for achieving success. Every
company faces different kinds of challenges and so is the case with Longines. It is essential
that company evaluates the challenges they are facing in the market. Two major challenges
faced by the company are:
Competition
Luxury watch industry has become very much bigger. It is found that many luxury watch
makers have come up in this industry. This has raised the competition to much higher levels.
In such an environment, it is essential for the firms to make strategies that give them
competitive advantage over the rivals. Swiss watches have always been known for its luxury
image and hence they have large brand image in the market (Donzé, 2011). Each company
has their own set of qualities that is attracting the customers hence they have a huge fan base.
It is all about the quality and brand image of the watches that makes them improve their sales.
Longines is one of the oldest branded watch makers and have been one of those companies
which are using its trademark as same. Its trademark is famous and company heavily relies on
its brand name for its marketing. With so many similar products in the market proving almost

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similar values to the customers, it has become difficult for the companies like Longiness to
create any edge over the others. In the era of digital and smart watches, managing the
marketing that results in higher sales is difficult. Many big companies with huge capitals
have come up in the industry. In this regards, the major role is played by innovation as
companies are innovating their products on the basis customer requirements. Companies like
Apple have made their mark in the luxury brand market as the watches are smart which
provides various details about person’s health. Apple has big brand name also the watches
gets connected with the phones hence can be used for multiple purposes. This has raised the
concerns of the marketers of Longines. It is not only the luxury brand image that company
looks for but it’s the technology that is also driving the customers to make purchases. This is
not the generation of people where they die for classic things rather it is a generation of
technology freaks.
Apart from this, the cell phone technology is replacing watches as all the people carry their
cell phones where they see the time. Since the profit margins in such type of watches are
extremely high hence many companies are coming up in the luxury brand segment (Anwar,
2012). Most of the companies are using fierce marketing campaign and the scope of doing
something different is very much hard. With huge amount of piracy in the market, the
benefits of the marketing are hard to achieve. Some brand has become so big in the luxury
brand image that it surpasses all its competitors like Rolex and Rado. Creating much larger
brand image can be a serious challenge for marketers of Longines.
Economic
The economic environment in the world is not so good. The situation is heavily poor in the
European region where there is huge slowdown in the economic environment. In many
countries, the per capita income has come down. After the recession of 2008-09, the
conditions actually never become stable. The bankruptcy of Greece and the political
decisions such as Brexit has further reduced the purchasing power of people in Europe
(Donzé, 2014). This is because people do not want to spend a lot of money on the luxury
products specially watches whose substitutes are available. For the luxury brand industry,
having a good economic environment is extremely essential. This is because the good
economic environment in any market is essential for achieving the desired goals of the
company. At the same time, healthy economic environment always allows a company to

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think innovatively without huge amount of risk. Due to this reason, Longines is focusing on
the new markets for its growth.
The developing countries like India and China can be suitable option for this company. Due
to economic crisis, the budgets for marketing have also been lowered down by the company
which is having direct impact on the performance of the company. Apart from this another
important market for Longines is America where the growth of the economy has become
stagnated. It is not the market of 20th Century which was at boom hence Longines could
target larger set of people under their marketing plan. Another big market for this luxury
watch makers was Middle-East countries where the political tension is on the highest peak
and in such an economic environment throughout the world, this is a matter of challenge for
the company (Desrochers, 2013). Putting prices down so as to achieve higher sales can
enhance the chances of falling down of luxury image. These companies are able to manage its
luxury brand image because of their price tags and if company lowers down this then the
chances of creating larger market image can be difficult. The economic constraints have
reduced the segmented market range for the company. This company also do not have larger
market share to deal with. In such an environment, enlarging the scope of marketing and sales
can be difficult. Setting new marketing objectives can be difficult for the companies as they
will have to think twice before making any marketing decisions. Any failure can lead to
financial loses for the company which is again a bigger challenge for the companies that is
operating in the luxury brand segment.
Current marketing activities undertaken by Longines
Marketing has become one of the most important business activities that help in achieving the
business objectives. The brand marketing campaign of Longines should also portray the
luxury image of the company as it is the only thing that can make a brand a success. Analysis
of marketing activities must be done checking the objectives that a company wants to achieve
from their marketing (Munz, 2018). Marketing activities have been mainly defined as per the
image of the company in the market. Company’s marketing activities is almost similar to
market leader in the world’s luxury wrist watches. Some of the marketing activities of
Longiness are:
Product profile: Longines is dealing in making of the luxury watches. In this segment, they
are offering products at different prices. They have done the positioning of their products as a

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high precision sporty watch. They are making watches in different categories which help
them in targeting different types of people from a particular segment. The newest of this
segment is Longines elegance which was launched in the year 2014. Some of the major
product categories include Sports, Equestrian, Heritage, and Traditional. Highest premium
segment in the watches include diamond and Gold watches. In marketing of their products
they showcase the functionalities such as automatic, quartz, electrical or digital. Their
valuable customer service makes the marketing more effective and increases the product
experience more sophisticated and elegant (Donze, et al. 2017). Customer services include
pre-sale services like giving suggestions and post-sale services of parts and repairs. This
company with the help of new kinds of technologies, company is challenging the business of
digital watches. Such huge product profile will help the company to attract more numbers of
people towards their business and hence ensuring the growth of the company. They add
emotional aspect to their marketing as they showcase jewel carrying traditions across
generations.
Pricing profiles: In this variable, Longines is setting prices on the basis of differentiating
factors and innovation that is present in that particular product. Longines has positioned itself
as a brand that talks about elegance, performance and tradition. They justify their prices by
the slogans such as “Elegance is an attitude”. This helps them in achieving the objective of
targeting high class people having higher incomes. Customer’s willingness to pay is the
criteria for setting up the cost rather than being a cost effective watches (Reyneke, 2011).
They are using pricing to maintain the luxury image of the firm. Products are available in
range of premium prices and this has helped them in targeting people that are rich but at
different levels.
Promotional activities: In terms of promotions, they are promoting their products in
different ways. They are attaching themselves with different sports events such as Olympics.
They are the official time keeper of Olympic Games. This helps them in strengthening their
positioning as an elegant brand which is their actual objective while doing the marketing.
They also sponsor events by different rewards like Longine’s world’s best jockey awards. As
a part of marketing activities they are releasing short movies which revolve around
watchmaking industry. These videos are launched on the platforms such as youtube and other
social media sites. In these videos various techies and users talks about the brand and their
plans, this helps them in creating a buzz in the market. They are also using ‘idol effect’ where
their brand is endorsed by big celebrities from sports and movie industries (Kernstock,

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Brexendorf and Powell, 2017). This helps them in achieving the objective of creating a
luxury image of their watches.
(Source: Express communication Longines)
Other activities: For their marketing, they are using different mediums. This includes both
online and offline mediums. The products are available at special retailer shops that deal with
premium consumers. They have a stronger bond with their retailers and this helps them in
making their product distribution efficient. They have also opened flagship boutique stores
and now it is their major distribution channel. In terms of marketing, they lack in number of
countries where they do their business (Armitage and Roberts, 2016). It is much smaller than
that of their competitors. Their watches are also available at the online mediums for which
they are using their website and other e-commerce brands. Longines also does second-hand
marketing on the basis of their premium experience and quality they provide. They are
available on both online stores and brick and mortar stores. As a part of branding, they are
supporting many type of Nobel cause. They do campaign that supports any social cause.
Wherever the sports industry has grown, this watch maker has made their mark. Their
marketing activities showcase the class and good part of the company’s history in industry.

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(Source: Xpresso Communication)
For instance they show that it was the first company that removed the human errors in time-
keeping by adding a mechanism where automatics triggering were done through electric wire.
They focus on highlighting the new designs in their marketing campaigns. It also focuses on
its logo as it is the oldest trademark still in use by any company. They believe on consistent
marketing message that is communicated with the customers on the regular basis. This
consistency in the marketing message has helped them in gaining control of the relationship
with consumers. This is the reason why they have been able create a large fan base and they
have large loyal customer base. This also helps a company to improve the image of the firm
in front of the firm in front of new customers. They are also using growth strategies in an
appropriate manner and for this they have used growth share matrix.

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Two key trends in marketing management
Business environment is changing and this change in the environment is caused by different
trends. These ternds have been generated due to impact of the factors like technology,
changes in buyer’s behaviour, globalisation etc. It is crucial for any company to evaluate the
impact of these trends on their business operations.
Advanced Digital marketing
It is not the era of conventional business. It is a time where advanced digital mediums are
used by different companies so as to do different business processes. Same is the case with

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marketing. Most of the companies have taken the route of technological mediums so as to
promote their products. There are wide ranges of digital mediums available with any firm
where they can showcase their marketing products. There are specific benefits for promoting
products on the digital mediums, first is the fact that these mediums are accessed by lots of
people in different parts of the world and hence companies can reach them all with very little
efforts (Chaturvedi, 2013). With the use of technologies such as Search Engine Optimisation,
company can increase their visibility among different competitors. Longines uses it for
improving the sales chances and hence making the marketing campaign more productive.
These sports and luxury fashion brands can be easily promoted at the platforms such as
Social media. Large numbers of people are present at these platforms and hence word-of-
mouth marketing can be easily done. In the luxury product business, this kind of marketing is
very much essential as it encourages people to buy any product without even seeing the cost.
Since this company deals in the business of second-hand products hence the use of digital
marketing mediums becomes more important. This company has an official website where
they are presenting all their new collections. Sports marketing are also done easily with the
help of digital mediums. Companies provide services through these digital mediums and
hence increasing the chances of customer satisfaction (WorldTempus, 2019).
Use of social media analytics and other data analytics helps the firm in making a better
marketing campaign on the basis of the data that is available at the digital mediums. Multiple
products can be promoted at the same platform hence companies can easily save money that
they will have to invest in the traditional marketing (Cpp-Luxury, 2013). Predictive analytics
is used by the company so as to predict the trends in the market and at the same time ensure
that they are moving forward as per the market trends.
Innovation
Innovation has been the key for the success of the companies in this industry. It is innovation
that has changed the industry over the last few decades. Companies like Apple have come
into the watch industry with highly smart watches. Since Apple has a big brand name hence it
is not difficult for them to create their market share. Innovation is making the new trends in
the market and people are also running towards it. The concept of smart watches that is able
to act as a mobile phone or also act as health monitor (ETRetail.com., 2013). Such things
have attracted lots of people. The marketing team in any company is also highlighting the
innovation as the major part of their strategy. There are companies that have come up in

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different watch segments which are portraying the good image for the firm. Innovations are
also done as per the need of the market.
Today’s marketing is highly based on the innovation that is done in the product. The
companies that are doing higher amount of innovation get edge over the others in the
marketing. Due to globalisation and higher use of technology, the news about the innovation
gets spread all across the globe on a single click. Companies also design their marketing
campaign where they highlight the innovation. Some companies communicate with their
customers beforehand only so that customers stay aware about the products and plans of the
company.
Staying with the market, Longines is also focusing on bringing innovation in different watch
segments. This has helped them in gaining control of the market and capturing new market
base. The approach for marketing taken by Longines is long term where they show their
elegance and innovation at the same time. This is necessary for gaining edge over the
competitors. They do not only have to concentrate on their own innovations but they also had
to look for the innovations that are done by the competitors. With lots of competitors doing
innovation, this can be a difficult job. To be able to make better innovation that is able to
fulfil the growing needs of the market, a lot of research needs to be done (Wai, 2018).
Longines will also have to make advancements in the way they are doing the marketing. For
this company will have to add list of events where they can showcase the best of their
products and the way in which they can gain control over their target segment. They are
analysing the market and based on which they are bringing the innovation. At the same time,
companies will have to improve the idea of business so that they can do marketing
accordingly.
Conclusion
From the above based report, it can be concluded that Longiness is one of the most famous
brands in Premium and Luxury watch industry. They are the official time keepers of
Olympics. They are facing challenges related to competition and economic breakdown in
different parts of the world. Their products are available in different product segment and are
available in different prices but the range remains to be on the higher side. For their
promotions they are sponsoring many sports events such Olympics. They are uploading short
and long videos where they describe about the products. They sell both first hand and second

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hand products with the help of both digital and offline mediums. Innovation and use of
advanced digital technologies are the two trends that Longines is following in their marketing
management.

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REFERENCES
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International Business Review, 54(5), pp.747-762.
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IEEE International Conference on Data Mining Workshops (ICDMW) (pp. 605-611). IEEE.
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February 2019]

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Kernstock, J., Brexendorf, T.O. and Powell, S.M., 2017. Introduction: Luxury Brand
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