MKTG 2127 - case study 4 swiss army PDF

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Prof: Kevin Hutchinson...

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Case study 4: Swiss Army | Keely Goldberg g0624601

Analysis of Current Situation

External Environment – A threat that of Victorinox was the company Wenger. They were another producer of swiss knives and posed as big competition for the company. Wenger was known for the good reputation that they had made for themselves because of their innovation, precision, and craftsmanship. An opportunity for Victorinox was purchasing Wenger, which allowed them to break into the fragrance sector and also become the only producer of swiss knives in the world.

Internal Environment – A big strength of Victorinox is when they acquired Wenger. They became the larger producer of swiss army knives in the world and also gained in the swiss army watch market. They were already known for the quality, innovation, functionality, and iconic design so it was simple for them to transfer these qualities to the other products which helped them with the transition of Wenger. A weakness of the company would be the fact that they have had no past experience in the fragrance industry so merging into this market may pose as a challenge for them.

Marketing strategy – Since Victorinox has been in business, they have stuck to their core mission. They wish to provide everybody with “practical, functional, reasonably priced, and top-quality products”.

Analysis of Problems and Core Elements

Primary Problem – The primary problem of Victorinox was figuring out how to successfully merge into the fragrance business when they took over Wenger portion of the market. They had many decisions to make on the matter. These decisions included: how to diversify into the business, using current brand attributes or creating new branding for the perfumes, and how to compete in an industry where they have no experience whatsoever.

Secondary Problem(s) – The company had a rough patch in the early 2000’s where sales of swiss army knives were on the decline.

Symptoms – Swiss army knife sales hit a decline in the early 2000’s when the tragedy of 9/11 struck.

Alternatives

Alon, I., Fetscherin, M., & Carvajal, C. (2014). Swiss Army: Diversifying into the Fragrance Business [Ebook] (1st ed.). Ivey Publishing. Retrieved from https://www.iveycases.com/ProductView.aspx?id=66074

Case study 4: Swiss Army | Keely Goldberg g0624601

1.

Victorinox could keep the same branding when they make the transition into the fragrance industry. The company is already so well known for their products regarding the quality, innovativeness, functionality, and iconic design that keeping with the same branding would most likely lead to huge success in the industry. Customers can attribute the known logo and quality to the same branding and will be more likely to purchase the fragrance on the sole basis that the brand reputation is good.

2.

The company could take a totally different approach and create new branding that is fresh and modern. The growing demand for the fragrance line was consumers in their late teens and generation y so these are customers who are younger, modernized, and those who might be looking for something new. The original brand had been in the market for over a century so the loyal customers were probably a bit older; branching into a newer branding tactic may attract younger generations and it would still allow for the upkeep of current consumers as their brand loyalty would enable them to possibly try the fragrance as well.

Desired Alternative

The desired alternative in this case would be to keep the original branding. The branding has worked for decades so why change something that is a for sure success. The cash cow is the original Victorinox Swiss Army branding and Victorinox should keep working that angle as they know it will make them profits. The reputation is in good standing, the customers are loyal, and the design is “iconic” so it’s almost a certain success.

Implementation Plan

Victorinox should use similar labelling when transitioning the fragrance line so it is easily recognizable by customers. The advertising should also play hard into the attributes that Victorinox Swiss Army is known for – quality, innovative, functional, and iconic.

Alon, I., Fetscherin, M., & Carvajal, C. (2014). Swiss Army: Diversifying into the Fragrance Business [Ebook] (1st ed.). Ivey Publishing. Retrieved from https://www.iveycases.com/ProductView.aspx?id=66074...