Question

The Omega’s Positioning Strategy Priced in excess of $2,000, the luxury watch industry is dependent on promotions and product features to attract the consumer. Omega SA (Omega), the third largest luxury watch maker in the world, is the pioneer of celebrity endorsement in the luxury watch industry. The company, which introduced celebrity endorsement in 1995, has featured many charming young men and women confirming Omega as the watch of their choice. The chosen brand ambassadors have been leaders in the field of fashion, sports and the performing arts. Apart from celebrity endorsements, Omega associates itself with, and ensures its product placement with landmark events. The case also traces the evolution of Omega’s advertising strategy. With luxury watches growing in popularity as a status and lifestyle statement, Omega is looking beyond the mature markets of Europe and America, to the new developing markets in the Middle East, India and China. It has unveiled a strategy tailored to drive growth in these promising markets. Q. 5. Luxury watch brands like Rolex are already well established in the Middle Eastern, Indian and Chinese markets. What shall be the competitive strategy by Omega to make this brand a success in the new markets? Q. 6. Keeping in mind the cultural changes of Western and Eastern countries, what challenges for the Demographic, Social and Psychographic Factors Omega has to face in the target markets? Q. 7. With reference to advertising, do you suggest that Omega should continue the same advertising strategy in the new markets?

Answer 1

5. The market for luxury watches in middle east, India, and China, is a highly competitive task for Omega. In these countries already the company like Rolex and others spread their base. Now if Omega wants to enter this market then he has to take so specific steps. the steps mostly suggested by Porter.

i) cost leadership: looking at the customer demand and suitability for a good price will attract customer

ii) Differentiation: it can produce a differentiated product which can be fitted to the customer choice and ability to pay

iii) focus: it should focus on targeted customers so that they sell and the profit will be forecasted.

Now Omega needs to go for a market survey and with that, it can articulate the demand for luxury watches and supply of it. so that the uncovered group of customers can be targeted.so the targeting strategy might be the above strategies which can fulfill the demand of customer as well as the company's target.

6. All these targeted counties are mostly culture base so the company should take care of these countries have their own style and culture to represent if Omega can justify the quality with a touch of culture and modernity, then the product will be more appreciated by the customers. Again these types of luxury watches are very much customized products, so the culture and significance can be presented it will attract more customers. So luxury watches are the symbol of status, it gives pride and personality to an individual. it should represent the lifestyle and the demographic specialty and their purpose fulfillment will more intense strategy for Omega.

7. No, I should not suggest Omega continue with the same advertisement as the netizens may not be familiar or influenced by the popular western celebrities so they always feel great when they saw their own idol as a product promoter. it can also choose so social issue or emerging issue as a part of advertizement so that people will connetand try to accept it as one of the option to fulfill their demand.