Question

Case study The Classic Watch Company The Classic Watch company was in trouble. Sales had fallen for each of the last three years. The founder of the company, Harry Brainch, could not understand the reasons for this. His business had been making the Classic Ladies' wrist watch for the last 20 years. The current model had been updated but was still essentially the same design as the original watch. Consumers had been attracted to its simple, robust design and good value. These were very important qualities during the economic crisis that the country had suffered from for much of the last few years. More recently, consumer incomes had started to rise. Old manufacturing industry had been replaced by service sector businesses that offered many supervisory and managerial jobs. Youth unemployment, in particular, had fallen and young consumers had much more money to spend than previously. Both men and women were becoming much more fashion conscious as their consumer tastes changed with higher incomes. Harry knew his business had to change, but he did not know which new styles of watches to introduce. He almost wished a return to the good old days when shop- pers were happy to buy a recognised design at a reasonable price. Questions 1. Is the Classic Watch Company product or market oriented? Explain your answer. [2] 2 Analyze why Harry's original marketing strategy no longer increases sales. [3] 3 Outline three ways in which Harry might separate or segment consumers into different groups, producing watches for these groups, in order to increase overall sales. [3] 4. Evaluate whether this business should adopt an asset-led marketing approach. [2]

Case study
The Classic Watch Company
The Classic Watch company was in trouble. Sales had fallen for each of the last three years. The
founder of the company, Harry Brainch, could not understand the reasons for this. His business had
been making the Classic Ladies' wrist watch for the last 20 years. The current model had been
updated but was still essentially the same design as the original watch. Consumers had been
attracted to its simple, robust design and good value. These were very important qualities during the
economic crisis that the country had suffered from for much of the last few years.
More recently, consumer incomes had started to rise. Old manufacturing industry had been replaced
by service sector businesses that offered many supervisory and managerial jobs. Youth
unemployment, in particular, had fallen and young consumers had much more money to spend than
previously. Both men and women were becoming much more fashion conscious as their consumer
tastes changed with higher incomes. Harry knew his business had to change, but he did not know
which new styles of watches to introduce. He almost wished a return to the good old days when
shop- pers were happy to buy a recognised design at a reasonable price.
Questions
1. Is the Classic Watch Company product or market oriented? Explain your answer. [2]
2 Analyze why Harry's original marketing strategy no longer increases sales. [3]
3 Outline three ways in which Harry might separate or segment consumers into different groups, producing watches
for these groups, in order to increase overall sales. [3]
4. Evaluate whether this business should adopt an asset-led marketing approach. [2]

Added by Rachel M.

Question

Please give Ace some feedback