Marketing Plan for TAG Heuer Smartwatch: Strategy and Analysis

This report provides a comprehensive marketing plan for TAG Heuer smartwatches, delving into various aspects of its strategy. The report begins with an introduction to marketing plans and their significance, followed by an overview of TAG Heuer's current market situation and its smart watch range. It explores the benefits and features of the products, along with a product review. A detailed SWOT analysis and competitor analysis are presented, highlighting the strengths, weaknesses, opportunities, and threats faced by the company, with a focus on key competitors like Omega and Longines. The report outlines the company's mission, marketing and financial objectives, and marketing mix strategy, including product, price, place, and promotion. An action program for digital communication is detailed, along with implementation and control measures for the marketing plan. The report concludes by emphasizing the importance of the digital communication plan and its potential to enhance sales and brand awareness. The study emphasizes the importance of digital communication and social media integration for effective marketing of the smart watch range.

MARKETING
MANAGEMENT AND
DIGITAL COMMUNICATION

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Steps in writing a marketing plan....................................................................................................1
Present marketing situation..........................................................................................................1
Market description.......................................................................................................................1
Benefit and product features........................................................................................................2
Product review.............................................................................................................................2
SWOT AND COMPETITOR ANALYSIS.....................................................................................3
Competitors..................................................................................................................................3
SWOT analysis............................................................................................................................3
Mission............................................................................................................................................4
marketing and financial objective....................................................................................................4
Marketing mix strategy....................................................................................................................4
Action program................................................................................................................................5
Implementation and control of marketing plan...............................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
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.
STEPS IN WRITING A MARKETING PLAN
Present marketing situation
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.
Market description
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
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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.
Benefit and product features
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:
 Water resistant to 200M
 Screw in Crown
 Double safety clasp
 Unidirectional bezel
 Sapphire crystal
 Luminous markings
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
Product review
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.
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SWOT AND COMPETITOR ANALYSIS
Competitors
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.
SWOT analysis
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
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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
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.
MARKETING AND FINANCIAL OBJECTIVE
For effective promotion of smart watch range in the market Tag Heuer the three marketing
objectives set by the business are as follows:
 To integrate social media tools for promotion
 To redevelop the pricing strategy and focusing on competitive pricing strategy
 To enter into partnership with various ecommerce companies so that they can offer the
smart watch range of Tage Heuer and effective promotion is possible
The three financial objectives of the Tag Heuer Company is as follows:
 To enhance profitability level by 10% by the end of 2017
 To control the major expenses associated with the cost of production
 To increase 2% margin on sale of every product
MARKETING MIX STRATEGY
In order successfully operate in the market Tag Heuer digital communication plan has
been implemented for the business whose key elements are as follows:
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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.
ACTION PROGRAM
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
IMPLEMENTATION AND CONTROL OF MARKETING PLAN
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
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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.
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Ryan, D. (2016). Understanding digital marketing: marketing strategies for engaging the digital
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