Case 3: Seiko Watch Corporation: Moving Upmarket

Hello buddies,

Please feel free to share your thought of Case 3. Here, three key points from my view of this case: Brand Cosolidation (perceived image), Product Positioning (Moving Upmarket) and Innovation (Spring Drive). Come on friends~~~

Design Thinking
The design thinking process has seven stages: define, research, ideate, prototype, choose, implement, and learn. Within these seven steps, problems can be framed, the right questions can be asked, more ideas can be created, and the best answers can be chosen. The steps aren't linear; they can occur simultaneously and can be repeated.

Six Thinking Hats
White hat – Facts & Information
Red hat – Feelings & Emotions
Black hat – Negatives
Yellow hat – Positives
Green hat – New Ideas
Blue hat – The Big Picture

I have just run through the case, my first thought is Seiko need to put more effort on the brand construction. It should shift its focus from technic to design, because the watch is no more a time keeper only, many people consider the watch as some kind of jewelry.
Will read more carefully about the case and provide more comments later.

If Seiko wants to upgrade its products into high-end section, it has long way to go. from the current situation, Seiko is just a brand we knew, but the positioning is unclearified. Re-positioning could be one option, but the cost of product innovation is to be caculated carefully. Coz Seiko do not have a good foundation of premium products around the world. If it fails to be successful in the Chinese market with high-end product it will
be known around the world. haha

i haven't read the material in details, the point upon might looks superficial at some point. sorry.

Seiko has been No1 in many fields at past, it can be an advantage for market promotion. To be famouse brand is not easy, i suggest for Seiko there is no shortcut, to improve product qulity is still best way for brand building.
For more, to be continued....

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Technology Design

Glad to say, China already have some company move upmarket.

Seagull (You can find lots of Ad. in the air magazine now)
http://www.seagullwatch.com/cn/product_list.asp?kindid=1

FIYTA(I like some design of its, pretty good)
http://www.fiyta.com.cn/home3.html

Happy to share my some comments on SEICO's story, though I do not select this case.

Why could SEICO be succeded in rebuilding its branding?

First, SEICO owned a tradition to make watches, along with Japan's advantage on instruments & equipment industry, including watch, military, electronics, heavy industries etc. That is critical to its upmarket strategy.

Second, given continuous profitability, SEICO reborn is a must to capture High-margin market share which gradually would be generated by high-end upmarket. Low-end market no longer became priorities of the most of watch manufactures, even some choose to neglect low market potion in order to complete against others in upmarket.

Third, SEICO has the confidence in Japan workers' level. Vedio prof.Ali showed us approved that Japan always had a persuit of more accuracy and more advantage, which definitely could help realize SEICO watch positioning strategy.

Leng Shijie 2010960064 (10GA)

Though Seiko tried a lot to rebuild its corporate image and increase the number of high-end customers, it still has question in itself. Such as its recognition by public, its low production capacity of Spring Drive and the design ability.

The table showed by Professor Ali regarding the technique and design, high price and low price listed with famous watch companies inspire me an idea. The company which has technique advantage should seek a strategic partner which has design advantage and high brand image, such as LV, Gucci, Prada, etc. This alliance can take advantage from each other, and reach the effect of 1+1>2. Though this partnership, Seiko could easily reach to the high-end market, and the other partner can learn its technique advantage.

Huang Xiaojie_GA_2010960806

Hi bodies,
I’d like to share my some thoughts about Seiko’s upmarket strategy:
From one hand, Seiko should focus Japan and China as his main market in recent years, especially for its first try of the high-end market. Since Seiko has been a over 120 years company, his own brand has a certain influence in its local market, and dominated the mid-range market, so how to set food and establish its top brand image in Japan should be its first concerns.
From the other hand, Asia is a very large market of luxury products, according some statistics shows that Chinese luxury market scale has reach USD 9.6 billion in 2009; it may become the largest luxury market in 2015 in the world. So Seiko should target the Chinese market closely.

Thanks for your time.

2010 GA Gary 2010960301

Have you ever thought of how often you checked your Mobile instead of seeing a watch for time?

This problem may be not only SEIKO's but also all watch producers', which was posted in our CBI classroom very impressively...

As we know, a watch is not only a timepiece in mordern times. It could be fantastic jewelry or collection in the high-end market with high profit. I stand by the opinion that "Seiko need to find a strategic partner". What kind of partners are ideal for Seiko?

The partner could be LV, Gucci or Prada as what Dorothy said to upgrade the design. Let's think out of the box. How about we choose an existing Swiss brand that already well-accepted through merging and acquisition? The way goes to high-grade will become easier. Think more interesting. Could the partner be FBI? Could the partner be satellite center? We know they highly depend on accuracy which is the strength of Seiko. Maybe one day we could see a rocket named Seiko goes to the Mars. What's more, by cooperation with army, it will attract the attention of the military fans.

As a conclusion, Seiko should upgrade its products with strong partners to move upmarket.

interesting ideas and quite applicable.
in a word, there are two way that seiko could direct
fashion - luxury oriented
high tech oriented

Xunchun Liu - 10GB wrote: As we know, a watch is not only a timepiece in mordern times. It could be fantastic jewelry or collection in the high-end market with high profit. I stand by the opinion that "Seiko need to find a strategic partner". What kind of partners are ideal for Seiko?

The partner could be LV, Gucci or Prada as what Dorothy said to upgrade the design. Let's think out of the box. How about we choose an existing Swiss brand that already well-accepted through merging and acquisition? The way goes to high-grade will become easier. Think more interesting. Could the partner be FBI? Could the partner be satellite center? We know they highly depend on accuracy which is the strength of Seiko. Maybe one day we could see a rocket named Seiko goes to the Mars. What's more, by cooperation with army, it will attract the attention of the military fans.

As a conclusion, Seiko should upgrade its products with strong partners to move upmarket.

SEIKO is an old brand with a long history, so it has a certain group of customers. It is not easy to change SEIKO brand image in customers' mind. A potential risk of such change is to lose former loyal customers. Therefore, to establish a sub-brand or to buy a brand is a workable strategy for SEIKO to occupy more market and attract its target customers.

Of course, neither to change present SEIKO image nor to establish a new one in customer is easy. And no one can absoluately say which one is better. As far as I think, I prefer to the latter one.

by 10GA Wu Xiaoli 2010962385

"As we know, a watch is not only a timepiece in mordern times. It could be fantastic jewelry or collection in the high-end market with high profit. I stand by the opinion that "Seiko need to find a strategic partner". What kind of partners are ideal for Seiko?"

your idea is simlar to mine, it's all about Seiko's advertising strategy, how will Seiko re-appeal to consumers to move upmarket?

However, associate with the brand LV, GUCCI, etc, is it workable? coz they also have the watch category under each brand, why should they associate with SEIKO? should SEIKO beg for the cooperation? NO, not needed.

For Brand, the older the better. just the fact of "Repositioning" in the market.
Focusing on a more elegant and luxury look, Seiko needs to carefully think about its design strategy, especially for the brand “SEIKO”, is it possible to have a crown-like in its logo? Because “SEIKO” includes both “E”—shaped like a crown and “K”—the capital letter of the KING.

We could use the new image to target the high-end users. Of course, a change in logo is far from enough. How an elegant look appeals to consumers is another key to reposition Seiko through the international market. Nothing is more desirable than diamonds, such as mined diamonds are rimmed with platinum, making people feel special and good about themselves. In addition, don’t forget to advertise the product by associating with premium products. This stategy could be one of the options to move upmarket.
For exmaple, Omega ever assoicated its brand with BMW.

Also, we can tie the brand and call-to-action to specific films. For example, “It's not just a bag. It's Prada.” Quote by Tiffany Wilson played by Shawn Wayans. The scene from the “White Chicks” Movie. These advertisings all help to build the brand perception in public.

ADVERTISING STRATGEY is important for this brand to do the "repositioning" in the world market.

p.s i couldn't upload the image to support my samples here.

[quote="minibabyfox"]

"your idea is simlar to mine..."
Glad that we share some similar idea. You are a good designer without any doubt.

"However, associate with the brand LV, GUCCI, etc, is it workable? coz they also have the watch category under each brand, why should they associate with SEIKO?" The reason they associate with SEIKO should be the unique strength of owning long history and high quality.

Change the design and Logo obviously deliver a signal that SEIKO is changing. Another way to show the determination of targeting the high-end market is to issue an exclusive limited edition with shining diamonds and unequaled disign, which could interest the watch collectors. What's more, commercials definitely will play an important role in the marketing promotion process.

Hope to see more excellent ideas.