A Comprehensive Report on Marketing Design and Wristwatch Innovation

This report delves into the evolution of wristwatches, examining the significant changes in their design and marketing strategies. It begins by defining marketing design and innovation, emphasizing the development of new strategies and products to meet evolving market needs. The report traces the history of wristwatches, from the early pocket watches to the first wristwatches and the subsequent patents. It explores the conceptual framework of innovation, highlighting the role of technology, research, and creativity. The product life cycle of wristwatches is analyzed, detailing the stages from introduction and growth to maturity and decline. The report also includes positioning maps of various brands, such as Omega, Timex, and Seiko, and discusses the Aaker model for brand equity. Furthermore, it examines the concept of absorptive capacity, particularly in the context of smartwatches developed by companies like Apple and Microsoft. The report concludes by emphasizing the importance of adapting to consumer needs and continuous innovation in the competitive market.

Marketing Design and
Innovation

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
2.0 Influence....................................................................................................................................2
3.0 Changing characteristics and benefits........................................................................................2
3.1 Wristwatch patent......................................................................................................................4
3.2 Conceptual framework of innovation........................................................................................4
3.3 Product life cycle of Wristwatch................................................................................................5
3.4 Positioning.................................................................................................................................7
4.1 Positioning Map.........................................................................................................................8
4.2 Absorptive Capacity...................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

ILLUSTRATION INDEX
Illustration 1: First watch developed by Peter Henlein...................................................................3
Illustration 2: Improved Wristwatch................................................................................................4
Illustration 3: Conceptual framework of innovation........................................................................5
Illustration 4: Product life cycle.......................................................................................................6
Illustration 5: Aaker model..............................................................................................................8
Illustration 6: Apple watch.............................................................................................................10
Illustration 7: Smart Watches.........................................................................................................10
1

INTRODUCTION
Marketing design and innovation can be defined as adopting new strategy or marketing
method which leads to drastic changes in packaging or design. On the other hand innovation is
developing a product which is totally new to the market (Verganti, 2013). According to Trott,
Innovation involves all the management activities which are involved in the process of
technological development, idea generation, marketing new services or products or equipments
(Trott, 2012).
Present report will demonstrate regarding the changes which took place on different patterns and
innovations which took place in order to suit the changing needs and wants of the market.
2.0 Influence
Hand watches has influenced many by being punctual and perform in an systematic manner. It is
one of the most essential part of every one's life, specially to those who work and perform their
job according the given time. Watch can be defined as a small timepiece which is worn by
individuals (Battistella, Biotto and De Toni, 2012). On individual basis the hand watches are
helpful in completing the given job on time. It is helpful for individuals in being punctual and it
is only possible if the individuals knows the time. It is helpful in making plans for the whole day
so that all the work can be given equal priority for each and every thing. Further it is helpful in
creating a relationship with the watch. Wearing a watch is helpful in developing a positive
attitude towards the time. Hand watches are symbol of style. It is one of the things which appears
directly unlike any other things (Luchs and Swan, 2011). Moreover, it helps to stick to the
schedule and focus on the task effectively.
3.0 Changing characteristics and benefits
First the hand watches were not like it used to be know. It was in the 15th century when
Peter Henlein who come up with watches which individual could carry with them. But before
that no one actually thought of carrying a time with them (Linden, Kraemer and Dedrick, 2009).
This was an innovation in itself. Peter who was from Germany is the one who is considered to be
the inventor of watch. When the time passed on he became known as the developer of small
portable ornamental spring-powered brass clocks, which were very expensive and rare. These
were also used as pendants or were also attached to cloths. These watches were bigger than the
actual pocket-watches. Which were developed one century after (Hsu, 2011).
2

This was the time when people started to know about such innovation. Rich people used to buy
these types of products and became a symbol for fashion (Watch2Go, 2014.). With the end of
15th century, which was in the year 1571, first wristwatches were made. The first wristwatch was
made for Queen Elisabeth 1 in Europe. But wristwatches did not become famous unlike pocket
watches. It was in the 19th century when wrist watches became famous but were only used by
women.
3
Illustration 1: First watch developed by Peter Henlein
(Source: Watches to go, 2014)

It was then in the 19th century when G.R. Baldock who developed these type of wrist watches
who patented it and entitled it “An improved Watch Wristlet”. Form then men and women started
using wrist watches (The Evolution of the Wristwatch, 2015). Then many changes and many new
patterns came in it. The idea behind this change was to make available time for every one easily.
In 20th century it was widely used and preferred as a fashion tent.
3.1 Wristwatch patent
The first patent was done on wrist watch was by G.R. Baldock in the year 1900. He used leather
cover and pocket watch and combined them both. Patent prevented other s in using similar
strategy which he used (Santolaria and et.al., 2011). It was in the 20th century when other
companies began to started developing wrist watches.
3.2 Conceptual framework of innovation
The pocket watches were heavy and as a result the wrist watches very heavy. In this
context they began to develop which would weight less and which would be comfortable.
Conceptual framework was helpful in facilitating new development (Hobday, Boddington and
Grantham, 2011). Later on many changes happened in accordance with the changing culture and
trends.
4
Illustration 2: Improved Wristwatch
(Source: Evaluation of wrist watches, 2009)

According to the given diagram it can be said that use of technology plays an important role in
innovation. In addition to this, research and creativity is very important in order to innovate
(Journal of technology management & innovation, 2008). When these three elements are
involved all together, then there is innovation. In the context of wristwatch, the inventor used
technology and his creativity in order to develop innovative product.
3.3 Product life cycle of Wristwatch
The first wrist watch was made in the 19th century which was the invention of
mainspring. It was developed with the help of metal and was coiled around the axle. It also
included kinetic drive which was helpful in setting time. At the initial stage they used metal and
as the time passed on they started using strap made of leather (Kyffin and Gardien, 2009). It was
in the year 1926 when companies started to make wrist watches which were water and dust
resistant which was developed by Rolex. Then in 1960, they come up with electronic watches.
After 20 years, they developed watches which were able to perform calculations. Wrist watches
in which users can perform calculation.
5
Illustration 3: Conceptual framework of innovation
(Source: Journal of technology management & innovation,
2008)

Many types of products in wrist watches were released and among which the product did fail but
new and innovative product made their market. Following is the product life cycle which each of
the product had when new product can in the market:
When a new product is launched, there are mainly four stages involved. Following are the stages
which are involved in product life cycle:
Stage1: Introduction and launch: This is the first stage in which the product is introduced in the
market. Price of the product is comparatively low (PLC- Product life cycle, 2010). As the
product is new and the customers do not know anything about the product so as an initial stage
the price is kept low. In this stage various strategies are adopted so that customer’s get know
about the product.
Stage 2: Growth and development: According to this stage the customer’s get aware of the
product. The growth made by this product will be high as it is an innovative product so the
competition is very low (Heidenreich, 2009).
Stage 3: Maturity and competition: Firm adopt different strategies in order to maintain the
interest of the product. In order to earn profit the price of the product is increased. In addition to
this, the product is able to develop a place on the mind of the customers. In simple the product is
being recognized by the customers.
6
Illustration 4: Product life cycle
(Source: PLC- Product life cycle, 2010)

Stage 4: Saturation and decline: It is the stage where the sales decreases. There may be many
reasons for this cause. One of the main reason in this is increase in competition. In this stage the
firm needs to develop or innovate or make changes in their product so that they can hold up on
the market.
3.4 Positioning
Brand Benefits Target Differentiation
Omega  Retain their
value for a
long time
 Available in
many varieties
of pattern.
 High cost
customer’s.
 All age groups
 Easy handle
 light weighted
 Available for
all age groups
 Easily
available
Timex Group  Crystal
watches
 Waterproof
and dust
resistant
 Medium and
high range
customers
 All age groups
 Available in
metal, gold,
leather straps.
 Available in all
types of use.
Seiko  Affordable
price
 Available in
many patterns
 Average cost
customers.
 All age
customers.
 Unbreakable
glass.
 Additional
features.
 Glow at night.
7

4.1 Positioning Map
Seiko is able to compete more than any other firms. They conduct market research and
surveys which are very helpful in providing their customers requirements. In order to make the
brand equity below given is the Aaker model (Norman and Verganti, 2014). According to Aaker
band equity can be determined as the set of brand liabilities and assets which are linked by the
brand. Symbols and name are helpful in adding value to the firm.
According to this model, it helps in developing and in maintaining the trust which is created by
the customers. In order to develop brand equity four elements can be used (What is Brand Equity
And How Do You Build It?, 2014). Which are as follows:
8
Illustration 5: Aaker model
(Source: What is brand equity and how do you build it, 2014)

Brand awareness: According to this, the firm should use various sources which will help in
developing awareness among the customers regarding the product. The quality, various offers
provided by the firm should be made available to the customers.
Perceived quality: According to this the firm should be able to fulfil all the needs and
expectations of the customers (Davenport, 2013). It is very essential for the firm, in order to
compete effectively.
Brand association: It is the perception which customers develop on the firm or on the product.
Seiko should focus on providing the customers all the kind of requirements so that the perception
will always be good.
Brand loyalty: When the customers will be able to fulfil all the requirement or the product
provided by the firm is able to satisfy the all the needs and requirement of the customers then the
firm will be able to make their regular customers to loyal customers (Esslinger, 2011).
4.2 Absorptive Capacity
In the 21st century may firms came into compete the firms which were already in
developing watches. Companies like Apple, Microsoft, etc. has totally changed the concept of
watches. They have gone one more step ahead in understand the change and accordingly they
have come up with smart watches (Schreier, Fuchs and Dahl, 2012). Which are directly
connected to their smart phones. These type of smart watch have many benefits like it provides
all the notification which are received in various social media or mails. One of the best
innovation which took place in these wrist watches is that, the use can answer the calls. It allows
the user to accept or decline the calls. Which come to the users smart phone. Further, it helps in
maintaining health, it provides all the information regarding the fitness. Moreover, the user can
listen music through these smart watches. Further, it has navigation system which helps in
reaching the desired place with anyone's help (Dell'Era and Verganti, 2009).
9

Thus, it can be said that in this changing world all the firm are innovating in order to competing
effectively. At the initial stage Apple came up with this new concept but know companies like
Microsoft, Motorola, etc. are coming up with more improved smart watches (Dell'Era and
Verganti, 2010).
CONCLUSION
From this report, it can be articulated that all the product which were developed by person years
ago has been changed in today's world. In order to compete effectively firms focus on
understanding the needs and wants. Accordingly, they come up with product or service which
10
Illustration 6: Apple watch
Illu
stration 7: Smart Watches