TAG Heuer Asia Strategic Marketing Plan Essay
Executive Summary TAG Here Hong Gong’s strategy is to serve the upscale sports watch market. It will capitalize on the timekeeping technology and brand values. There is an untapped potential market that desires high-quality, stylish goods, but want the watch to represent both success and individual achievements from competitiveness. It is TAG Hereupon Gong’s intention to gain market share in the Hong Kong upscale watch market. The immediate goal is to build brand image and brand equity through marketing. To accomplish this, TAG Here will allocate majority of its budget to advertising and public relations activities.
The initial product lines will be modern, simple watches, targeting both male and female. The pricing strategy will be based upon using prestige pricing. The upscale watch market in Hong Kong is in a growth period, so now is an ideal time for establishing a clear positioning. After successfully establish a clear positioning, TAG Here will enter the China market. Upon successfully building the Hong Kong market and entering the China market, TAG Here will realize its initial investment and allocation of resources to the maximum potential.
SOOT Analysts Strengths First sports watchmaker TAG Here is already an established brand in the West and some
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Hong Kong consumers do not perceive how the attributes of sports can also demonstrate personal status and achievements Weak distribution of product knowledge due to limited advertisement channels Lack of advertising and PR strategies in Hong Kong Opportunities Asians are brand-conscious individuals to show personal status and achievements The TAG Here brand and product have the potential to grow due to the lack of awareness in Hong Kong Enter into the China market after establishing strong position in Hong Kong Cultivate a stronger relationship with retailers and consumers to encourage sales
Create a more integrated marketing communication campaign Threats Popularity of replicas in the Asian market Competitive market with many international brands available to consumers Asians can be very brand-fickle Consumer Analysis Since TAG Here is a product of the West, we must first understand the cross-cultural consumer behavior. The Chinese culture is characterized by Confucianism, which includes certain doctrines that lead to the importance of ‘face’. Chinese tend to meet the expectations of others than acting in accordance with one’s own desires.
This in turn leads to the importance of social belonging. Therefore, influencing the opinion leaders would definitely influence the market. Although Chinese consumers are brand-conscious, they are also brand-fickle. Focusing on newness rather than brand values and identities, they tend to move from one brand to another after feverishly devouring one by mass adoption and mass rejection. This clearly shows the importance of fashion and how brand loyalty suffers due to this. In terms to a watch, which is a personal accessory, Chinese consumers simply do not e it as an object that tells time.
In fact, we should not focus on the physical purpose of a watch. In order to target the Chinese consumers, we must focus on the emotional purpose of a watch, meaning how a TAG Here symbolizes the consumers’ success, status and above all, ‘face’. TAG Here has identified a unique target group who not only values ‘face’, but also competition. This group possesses the sports attribute of competition, which leads to personal achievements. Competitive Analysis The watch industry is enormous in Hong Kong. Competition is fierce.
Although many f the upscale timepieces such as Role have strong brand equity, there is room in this market for TAG Here as brand loyalty is not high on consumers’ reasons for purchasing. Brands like Role also have a sports flavor to it, but it is still seen as the watch for ‘old money’, whereas TAG Here is preferred by ‘new money’. II. PROBLEMS IDENTIFICATION The major problem is the lack of brand equity in Hong Kong. TAG Here must confront this by establishing a clear positioning. After successfully achieving this, TAG Here will have a more stable ground in entering into the China market.
Ill. ASSUMPTIONS for repositioning of TAG Here Ever-present market for watches because people will always need and buy watches Potential watch buyers are willing to spend higher amounts on watches because of the enhanced image appeal ‘V. MARKETING OBJECTIVE Financial expectation – the breakable analysis; TAG Here will be able to make a steady profit by the second year To position the TAG Here brand as the distinct luxury sports watch in the Hong Kong market To gain market share in the Hong Kong upscale watch market To enter the China market upon establishing strong position in Hong Kong
TAG Here Hong Kong has divided the market segmentation into the leading target market groups. The categorization reflects the differences in marketing strategy that will need to be used to target each different market. Age 25-40 Men and women Passion for design and fashion Competitive personalities who aim to be successful in monetary wealth as well as personal achievements International outlook Avoidance group opposed to brands like Role (show offs’) VI.
Brand identity: The Luxury Sports Watch o TAG Here is not Just an expensive sports watch to symbolize success, but it is the ports watch of choice for those who thrive on competition Untraditional yet draw inspiration from traditional heritage o TAG Here is modern, yet it does not forget its roots Brand values: prestige, performance, precision o Prestige represents success o Performance represents both product quality as well as the achievements of the consumers Worldwide brand, local commitment o TAG Here will be linked specifically to Chinese sports vile.
TAG Here’s strategy is to serve niche markets of the entire watch market. It will cap utilize on the innovation to timekeeping technology an the attributes and qualities that go beyond the domain of sport – competitiveness. There is an untapped market who wants a product to show not only monetary success, but personal quality of competitiveness as well.
Our strategy will touch this market. Product Luxurious, high-quality sports watches Modern, simple design Attentive pre- and post-purchase customer care Product life cycle – introduction/growth stage Product line decision – male and female lines Bundle of benefits – timekeeping, professional sports characteristics, symbol of success, personal quality of competitiveness Price