schaffhausen - Michèle Muhl

IWC
SCHAFFHAUSEN
Lucerne University of Applied Art and Science
Design Management International
Assignment: Strategic Design Planing
Lecturer: Hans Kaspar Hugentobler
Michèle Muhl
November 2013
TABLE OF CONTENTS
EXECUTIVE SUMMARY03
WHAT IS?04
System Logic & Families
Offerings & Features
Key Customer
Competitor Analysis
Value Curve
Ten Type of Innovation WHAT IF?13
Need Finding
Analysis Market
Analysis Research
WHAT WOW’S?20
Ideation
WHAT WORKS?23
Final Concept
CONCLUSION25
REFERENCES26
APPENDIX27
2
EXECUTIVE SUMMARY
The exploratory seeking for new findings, artistic approach and solutions, requires curiosity and passion for renewal. To change the genetic code of something
and make it go further, this is probably the most delicate thing to do in innovation.
As a design manager you have to follow your instinct. Sometimes you need to try
before knowing if it works and let yourself be surprised.
A watch is the perfect example of simplicity, created from explicitly. All elements
come together to this magic equilibrium. Great design needs to be supported by
great technology. I chose to analyse the company IWC for the Strategic Design
Planning Projects, for the reasons mentioned above and because I have my roots
in Schaffhausen.
At first and most important for IWC is that only a perfect movement will follow
their conviction. Great watch design is stylish and practical at the same time, something that exist but don’t exist. One looks at, and sees something new, every
second. A men`s wristwatch should be raw and essential. The difficulty is, to
know how to do something without being too present and without being too invisible. IWC introduced such solutions and found the balance between statement
and understatement. They offer a wide range of watches for different budgets.
This is what impresses me about the manufacture.
“With its passion for innovation and technical inventiveness, IWC Schaffhausen
has established an international reputation. Since 1868, the Swiss watch manufacturers have been creating masterpieces of haute horlogerie that combine
precision engineering with exclusive design.” (www.iwc.com, 2013)
With the tool of different research methods I would like to have a closer look at
IWC’s environment and the position in the market.
Initial research drew attention to IWC‘s corporate identity, products, competitors
and their market segment. Both the meaning of time and trends were closely
analysed and researched in order to define the two areas closer. Research and
interviews with IWC and possible IWC customers revealed that a watch should
be genuine, personal and add additional value to the customer.
IWChange is the newest addition to IWC‘s lower price watch lines. The tool kit
gives customers the possibility to customise their watch and offers a unique and
personal new solution.
IWC Schaffhausen Portofino
3
SYSTEM LOGIC & FAMILIES
Company Profile
THE INTERNATIONAL WATCH COMPANY SCHAFFHAUSEN
- THE FINE ART OF WATCHMAKING FROM SCHAFFHAUSEN The International Watch Company Co. AG, IWC is a Swiss high-class watch
manufacturer. With its headquarters based in Schaffhausen, IWC is the only
watch manufacturer located in the German speaking part of Switzerland and
counts 1100 employees and 120 high-qualified horologists. Since 2000 IWC is
part of the luxury good company Richemont. IWC has more than 900 selling
points worldwide and 60 IWC boutiques with flagship stores in Zürich, New York
and Hong Kong.
IWC is very concerned about its economic, social and ecological responsibility.
The company supports the Laureus Sport for Good Foundation for physically
and socially handicapped children and young people, and the Charles Darwin
Foundation that works for instance on maintaining the flora and fauna on the
Galapagos Islands. IWC further uses green energy, recycles waste heat, operates
CO²-neutral and fosters the sustainable thinking of their employees with special
activities such as supporting them in using public transportation.1
LOOKING BACK
WHAT IS?
- AMERICAN AVANTGARDE MEETS SWISS WATCHMAKING TRADITION Boston watchmaker Florentine Ariosto Jones founded the “International Watch
Co.” in 1868. He choose Schaffhausen as location to bring modern American
production techniques together with the knowledge that Swiss watchmakers
were known for. It was the city of Schaffhausen where Jones found the right conditions to realise his dream. Schaffhausen is located directly on the Rhein River
and exhibited just the perfect conditions to run a hydropower plant and build up
a high-class watch manufacture because of the centuries-old Swiss horological
tradition.
With the Jones calibre, named after his creator, IWC’s outstanding reputation was
established right from the beginning on. In 1885, IWC created an example that
reflects their innovative thinking with the Pallweber pocket watch and its digital
display for hours and minutes. In the early 20th century, IWC launched its first
wristwatches featuring the 64-calibre pocket watch movement.1
PHILOSOPHY
- PASSION FOR WATCHMAKING, UNTIRING ENTERPRISE AND PERFECT
CRAFTSMANSHIP The philosophy of IWC, which is based on passion for watchmaking, untiring
enterprise and perfect craftsmanship, is strongly influenced by its special geographic location. The majority of watch manufactures are located in the French
speaking part of Switzerland; IWC is the only Swiss watch manufacturer in the
German speaking part of the county. The company is well known worldwide for
highest of quality, engineering and design. The following sentence extracted from
IWC’s homepage explains why:
“The individual who purchases an IWC watch expects not only precision, functional design and a long service life but also the kind of advanced technical features that only a few watch manufacturers worldwide are able to provide.”. (IWC.
com, 2013)
4
WHAT IS?
SYSTEM LOGIC & FAMILIES
Company Profile
CORE VALUE
The core value of IWC is “Probus Scafusia”, which stand for good, solid craftsmanship from Schaffhausen. Their unique geographic location is very important
for the company. It reflects their roots, long tradition and history.1
KEY IMAGE
CORE VALUE
=
PROBUS SCAFUSIA"
(good solid craftsmanship from Schaffhausen) IWC’s key image is to be masculine, genuine and all about engineering. To reach
their customers IWC wants to communicate this image by being humorous,
friendly, tell authentic stories and inspire their customers.2
KEY IMAGE:
- OUR
STORIES
humorous, friendly, authentic stories that
inspire
customers ARE
The three examples below should give an idea of the stories that Kern mentioned.
These stories are the heart and soul of IWC and a very important tool to engage
customers. `Live your dream’ is the motto hereby, the dream of being a pilot, an
adventurer or a Formula-1 racer.1
OUR
TESTIMONIALS Geroges Kern, CEO IWC Schaffhausen
-  OUR STORIES ARE OUR TESTIMONIALS - Georges Kern, CEO IWC Schaffhausen
Writer and pilot Antoine de Saint-Exupéry
inspired IWC to create the ‘Pilots’ watch As reminiscence of the Portuguese
maritime nation the ‘Portuguese’ collection was released
The double chronograph ‘Top Gun’ is related to the US Navy elite flight school and
stands for courage and bravery
5
WHAT IS?
OFFERINGS & FEATURES
Company Profile
The IWC’s watch families, the Pilot’s Watches, Portuguese, Ingenieur, Aquatimer, Da Vinci and Portofino look back on a long tradition and rich history. The
high-quality and precision of an IWC watch reflects the passion for innovation of
the engineers in Schaffhausen and embrace the wide range of the company’s
watchmaking expertise: from robust watches for everyday use to professional
sports watches and the complexities of haute horlogerie at its finest. IWC is well
known for their technical advancements such as the Perpetual Calendar or the
Minute Repetition, and for watch specialities such as the Grande Complication
and the IWC Vintage Collection.1
The products are segmented in six elements:
-
-
-
-
-
-
Earth Adventurer Explorer Savoir-vivre Water Air with the Ingeneur Family
with the Portuguese Family
with the Da Vinci Family
with the Portofino Family
with the Aquatimer Family
with the Pilot’s watche Family
IWC stand for:
-
-
-
-
-
specialists in innovative mechanical watches
60% in-house production
precision, functional design and a long service life
advanced technical features: perpetual calendar, minute-repeating
wide product range: robust watches for everyday use to professional,
complex sports watches
FINDINGS
The long tradition in watch making and rich history is what the
company is built on. IWC stands for highest of quality and engineering. The company is very conscious about their ecological
and social responsibility and wants to communicate this on all
levels.
6
WHAT IS?
KEY CUSTOMER
Company Profile
IWC’s key customer is male and characterised by the terms below. The images
should give an impression of the lifestyle of an IWC customer.
Target audience: Men / 35 years appreciate
design & quality pioneers adventurous independence
outgoing globetrotter perfectionist entrepreneur successful confident passionate 7
WHAT IS?
To determine the position of IWC within the watch industry, a positioning map
helps to define the company’s activity scope and their relation to the most important competitors. The position of IWC was analysed after the criterion of high vs.
low price and tradition vs. innovation.
COMPETITOR ANALYSIS
Company Profile
As shown in the positioning map, regarding the price range IWC is positioned
on a medium high level. The price for an IWC watch ranges from CHF 4’000 up
to CHF 750’000. They offer everyday-use watches for customers with a smaller
budget, but also very expensive, sophisticated and customized models. Many
IWC customers have more than one IWC watch. In fact the general IWC user
owns, according to George Kern the CEO of the company 2,5 IWC watches.
This is of course because of the good price range but also because of IWC’s wide
product range, high quality, long service time and unique design.2
IWC focuses on customers that appreciate engineering, high quality and are willing to pay a certain price for it. This is also to be seen in the map. IWC has a very
rich tradition but manages to stay innovative and focused on their knowledge in
watchmaking.
FINDINGS
What is striking about IWC is that other watch manufacturers
also have a rich history and a good manufacture, but IWC manages to appeal to a very wide target audience with their price
policy and again their brought product portfolio. This is also
evident in their marketing campaign (below), IWC clearly distinguishes itself from the other competitors in the Swiss watch
industry.
8
FINDINGS
To analyse IWC’s current situation, a closer look at their value chain was taken. Two of IWC competitors Rolex, in the luxury market, and Maurice Lacroix,
because of their extra ordinary innovations, were analyse to widen the scope.
Eight different values were compared:
IWC has a very good
price policy but could
do more regarding
product variation and
innovation in design.
PRICE: Compared to the price for a Rolex (CHF 10’000 up) and the one of a
Qurrent Situation
IWC Schaffhausen
Big Pilot’s Watch “Le Petit Prince”
Maurice Lacroix Masterpiece
Seconde Mysterieuse
ROLEX
Oister Perpetual datetrust
Maurice Lacroix (arround CHF 2’000), IWC has a wide price range (CHF 4’000
up to CHF 750’000) that suits many pockets.
HIGH
QUALITY OF WATCHES: High quality and a reasonable price is what distin-
guishes IWC from its competitors. The IWC watches are well known for their
durability and resistance. IWC has its own promise of quality, which is “Probus
Scafusia - Well Establishes from Schaffhausen”.
MEDIUM
VARIETY OF OFFERING: IWC’s product family comprises six different models
and is rated in upper-middle.
INNOVATIVE DESIGN: Although IWC comes up with new sub models and
special editions, compared to Maurice Lacroix IWC is less inventive and innovative.
in house. In comparison, Rolex and Maurice Lacroix produce totally in house.
WARRANTY: As for the other two watch manufacturers the warranty on an
IWC watch is two years.
WARRANTY
REPUTATION
MANUFACTURED IN HOUSE
MANUFACTURED IN HOUSE: IWC produces only 60% of their movements
PURCHASE / ACCESSIBILITY
IWC has a very good reputation but is not as well known
as Rolex. Maurice Lacroix is positioned in the lower price segment therefore
their reputation is rated a medium.
DESIGN
REPUTATION:
VARIETY OF OFFERING
ers and are purchasable online.
PRICE
PURCHASE / ACCESSIBLE: All watch brands have their own stores, retail-
LOW
QUALITY OF WATCHES
WHAT IS?
VALUE CURVE
VALUE CURVE ANALYSIS
9
Status Quo
CONFIGURATION
profit model
networking
structure
OFFERING
process
product performance
PROFIT MODEL
PROCESS
IWC focuses on increasing awareness and desirability by developing high quality watches and appropriate marketing programmes. Currently IWC is follwoing the strategy of focusing
on their core business and the objective of growing value for
their customers over the long-term, based on three pillars:
1. IWC watches are built on the roots of the brand with its long
history, but tries to make them modern and different. 2. IWC is
constantly increasing the manufacturing sector by producing
60 percent in house. IWC offers four different calibers, which
is a very important image factor and gives the company more
autonomy. 3. The communication of IWC focuses on their core
value, which is engineering. To reach the customer within this
complex world of watch manufacturing, IWC uses authentic
stories and humour to explain the products.
IWC is the only watch manufacturer located in the German
speaking part of Switzerland and produces 60 percent in
house. If possible the company collaborates with local supliers.
NETWORKING
product system
service
EXPERIENCE
WHAT IS?
TEN TYPE OF INNOVATION
channel
brand
customer engagement
IWC offical engineering partner in 2013 is Mercedes AMG Petronas Formula One Teams. What these industries share is their
passion for high precision, accuracy, engineering, exeptional design, use of prescious mateials and that every second
counts.
STRUCTURE
The central controlling and support services in terms of distribution, finance, legal and administration services are managed by the Richemont SA. IWC has its own management
group under a chief executive officer and enjoys high autonomy. IWC watches are sold through a network of their own
boutiques and through boutiques owned by third parties. IWC
is purchasing raw materials from third parties from the region,
Switzerland and internationally. Therefore the company relies
highly on distributors.
PRODUCT PERFORMANCE
IWC watches have a simple and elegant design but are very
exclusive when it comes to technical features. The Perpetual
calendar and Minute repeating are two of the manufactures
specialties. IWC is specialised in engineering what is well reflected in their watch creations. This is one of IWC’s strength
and separates them from their competitors.
PRODUCT SYSTEM
IWC offers their customers not only six different watch families, but a wide price range starting at CHF 4’000 up to CHF
750’000. Every year IWC releases a new collection, for each
of the six watch families. The watches in the higher price segment can be personalised. The less expensive models are
standardised and do not leave much room for personalisation.
SERVICE
Beside the guarantee of a long service life, IWC offers its clients
a two year warranty and different service and maintenance offers. Videos on their homepage explain the maintenance process in detail and give the customer a look behind the scene
of the watch manufacturer. Further the IWC museum in Schaffhausen tells the story of the brand from the first pocket watch
to the latest master piece the “Portugues grande Complication”.
10
Status Quo
CONFIGURATION
profit model
networking
structure
OFFERING
process
product performance
product system
service
EXPERIENCE
WHAT IS?
TEN TYPE OF INNOVATION
channel
brand
customer engagement
CHANNELS
With flagship stores in Zürich, New York and Hong Kong IWC
managed to increase their reputation and strengthen their position in the world luxury goods market. The unique interior design represents each type of the six watch families. Authorised
retailers all over the world sell IWC watches in their boutiques,
located at premium spaces such as the Bahnhofstrasse in
Zürich or Zürich Airport.
BRAND
With the different stories of the watch families such as the one
of the pilot and writer Antoine de Saint-Exupéry, IWC wants
their customers to explore their dreams. IWC’s core value “Probus Scafusia” stands for good solid craftsmanship from Schaffhausen. The companie’s roots in the german speaking part of
Switzerland are one of their unique communication propositions. IWC’s only targets men, which is well reflected in their
claim “IWC. Engineered for Men.”. IWC is known for their provocative adds like “Almost as complicated as a woman. Except
it’s on time.”. The IWC- logo, mostly black on white is known
worldwide. It stands for the highest of quality and Swiss watch
making tradition.
CUSTOMER ENGAGEMENT
With their “Passion for Details” campaign IWC wants to engage
their customers and communicate their long history and knowledge in watch manufacturing. Further IWC releases four times
a year the “Watch” magazine. The magazines app won the Red
Dot Design Award in 2012. The company is also present in the
social media with their blog and 461’000 Facebook Fans.
11
Evaluation
CONFIGURATION
profit model
networking
structure
FINDINGS
OFFERING
process
After analysing the Ten Type of Innovation, the findings below
help to evaluate further the What if-stage of IWC.
IWC’s strong position in Profit Model, Brand and Customer Engagement will be transferred through innovative processed to
increase IWC product performance as illustrated on the right.
The What if- stage analysed on the next pages, claryfy the
meaning of time, finds out about current trends and users, to
get a better understanding of customers needs.
product performance
product system
service
EXPERIENCE
WHAT IS?
TEN TYPE OF INNOVATION
channel
brand
customer engagement
12
NEED FINDING
Trend Research
To better understand how the culture of watchmaking evolved, it is important to
have a look at the very essence of a watch, the measurement of time, what time
means to people and how we perceive time.
TIME
From a philosophical perspective, time describes the presents progress; coming
from the past and going on to the future. According to the theory of relativity, time
together with space forms a four- dimensional space-time, in which time forms
the fourth dimension. The present defines a single point within time, while other
points of space-time that are neither in the past nor the future of this point, are
sterically separate.
Einstein’s theory of relativity describes space and time as structure that can’t be
separated. Heavy objects curve space and slow down the flow of time; fast moving objects are subjects to a lower past of time, whereat slow moving objects are
subjects of a faster past of time.
Stephen Hawking (author of the bestseller “A Brief History of Time”) adds another
factor, the matter. He concludes from the inseparability of space and time, that
the flow of time without matter couldn’t be recognised at all, because it is the
matter that changes and makes the passing by of time visible.
HOW TIME IS PERCEIVED
The perception of time depends on the on-going action. If you are very busy or an
exciting event is taking place, time appears as “flying by”, as it would run faster.
Whereat if you are waiting for something to happen, time sometimes seems to
stand still. Paradoxically busy times where you have stored a lot of information in
retrospect are perceived as long, and times where nothing was going on and you
had to store only little information appear short.3
“Time is money”, this saying reflects the Western societies view on time just perfectly. Time is mainly perceived as a resource that can be made use of and be
managed according to a specific need. Today it is all about doing as much within
as little time as possible. This generated a “high-speed society” that we live in
today.
Time pressure and time constraints arise from the urge to coordination our lifes.
Within the time of globalisation, technology and fast development, work life balance has become an important term.
“Lose not yourself in a far off time, seize the moment that is
thine.” – Friedrich Schiller
The concept of time is closely related to the concept of causality. The cause occurs always before the effect. The past is immutable; it cannot be influenced by
current events. The future however, depends on the presence of the causal and
is affected by events or actions in the present.
WHAT IF?
Systems to measure time are periodically returning to the same state. Day and
night or the seasons are indicators for the progress of time, which is determined
by the number of periods within this on-going process. The device to measure
time in dimensions is the clock. Other repetitive methods to measure time are the
sun, sand- or water clocks.
Time can be distinguished between physical accurate (measurable) and subjective (experiential). According to Immanuel Kant we experience time with our inner
senses, time is not tangible it is intuitive.3
13
For the company IWC Schaffhausen the trend research focuses on the higher
income society, customer behaviour regarding consumption and other general
trends that help towards finding innovative solutions. After comparing various
sources, newspaper articles and consumer analysis papers the four topics were
identified as the most striking: globalisation & mass-production, shift in sexes,
quality vs. quantity, customisation.4
A:
NEED FINDING
Trend Research
GLOBALISATION & MASS-PRODUCTION
Globalisation is the exchange of products, services and other cultural facets in
a independent global economy. Due to advances in technology and transportation the progress of globalisation evolved enormously within the past years. This
challenges companies in competing within the world market and users in keeping up with the changes and fast developing trends. Mass-production is another
characteristic of globalisation and brings a long a very high level of squander of
products. As learned from the interviews (p.16) some people are overwhelm by
the wide range of different offers and features of products and feel the urge to go
back to more genuine, simple and long-lasting products.
B:
SHIFT IN SEXES
The role of man and woman has changed a lot within the last 50 years. The conservative gender roles do not exist anymore. The modern woman is independent, self-confident and eventually earns the same salary as the male opponent.
Whereat for the modern man it is common to stay home with the kids, while his
wife is working and supporting the family by providing the living costs. Genders
slowly started to merge and women and men are seen as equally strong. Today’s
generation does not care so much about social prejudice anymore, wants to have
their freedom in living and celebrating an individual lifestyle.
WHAT IF?
C:
QUANTITY VS. QUALITY
Sixty years ago after World War Second, it was the quantity and the price of a
product that were important to people. Today, in the age of technology and design it is quality that counts. Not only the function but also the additional value of
a product or service is what customers appreciate. It is very important for today’s
generation to be outstanding from the mass. We want to underline our personality and individuality with the products and services we use. This products and
services call for a distinguished design that suits our attitude towards life.
14
NEED FINDING
Therefore a product or service must be playful, adventurous or humoristic, an
experience rather than just a function.
Trend Research
D:CUSTOMISATION
Mass- production means to produce products in large scale to an affordable
price. Whereas the low price is a advantage of mass- production, very piece
looks exactly the same what could be seen as disadvantage, the more people
use it, the less interesting the prduct becomes for customers. Today’s generation
wants to be independent and underline this with a unique lifestyle, and the use
of products that fit this lifestyle. Therefore companies such as Nike or MyMueesli
started to build platforms where customers get the possibility to customise their
shoe or muesli.
Nike invented a tool where customers have the possibility to deisgn their individual Nike shoe. The customer plays the role of the designer and creates his or
her very unique Nike. This not only satisfies peoples urge for individuality but also
engages customers.
MyMuesli is a company that provides a platform where people get the chance to
mix their very own muesli, just the way they like it most. As customer you add the
single ingredients starting with grains as the base then adding step by step other
components, like dried fruits or chocolate splitters. The idea is simple and clever
at the same time. Customers get exactly what they want and wish for delivered
home in a click. This first of all reflects people’s need for a healthy lifestyle and
again the urge for individuality.
FINDINGS
WHAT IF?
The research about trends and tendencies in globalisation &
mass- production, shift in sexes, quality vs. quantity and customisation, shows that there is an urge for the higher income
generation for genuine, customised products that give them
the possibility to underline their personality and live their individual lifestyle.
15
NEED FINDING
“For me IWC stand for accuracy, precision and quality.”
- Gabi 50 year old entrepreneur
“I haven’t heard of
IWC’s before.”
– Fabienne, 24 year
old hospital nurse
from ZH
“I perceive IWC as rather boring. I think they could do
more regarding their marketing. This lack of presence
might be where my attitude toward them derives from. “
-Dani, 32 year old investment banker from ZH
“I would not spend more than CHF 600.- for a
watch, because I like to change my accessories according to current fashion trends.”
– Fabienne, 24 year old hospital nurse from ZH
„As someone growing up in Schaffhausen,
you got to have an IWC one day!“
- Andreas, 26 year old sales engineer from SH
“For my 60est birthday my husband got me the IWC Da
Vinci in gold. For me IWC means heritage and prestige.”
- Claire 72 year old retiree from SH
“IWC is an important sponsor of sports events of all kinds.”
– Andreas, 26 year old sales engineer from SH
To get a better understanding of customer’s
needs and expectations from a luxury watch
and what the atmosphere at IWC is like, a quick
and dirty research was conducted at Bahnhofstrasse in Zürich and at the IWC museum in
Schaffhausen.
The participants were asked just one question -
“Before my husband and I started to build up our
own company, I worked at the assemblage of IWC.
The company is a very big player in the economy
of Schaffhausen and an important employer.”
- Claire 72 year old retiree from SH
WHAT DOES IWC MEAN TO YOU?
“I was given the Portofino for my 20est birthday. For me
that’s the perfect watch, simple, elegant and sporty at
The most important findings are listed on this the same time. Still, I wish I could afford another watch
page. The once that will be taken in considera- one day to have an alternative and have more variety. “
tion for the further development are highlighted.
– Linda 25 year old student SH
“I hope I can afford an IWC one day. After comparing many different brands, for me IWC is the one
and only watch manufacturer in Switzerland.”
- Johannes, 24 year old sales engineer from ZH
„My grandfather passed me on his IWC Prosche Design. The watch reminds me on him and is a symbol for success and that you can create
everything you imagine if you have enough courage to take hold of it.”
– Etienne, 23 year old student from SH
WHAT IF?
Field Research & Interviews
“IWC is from Schaffhausen right? I am more a Rolex person but I drive the Mercedes SLK IWC edition. I think IWC
is rather a brand for older man, elegant and mature.”
- Markus 28 year old restaurant owner
“I recently bought my third IWC. It’s just such a traditional
brand that perfectly reflects my lifestyle. I love sailing and
going on adventures. The simple design, the quality and
technical features of IWC watches are just stunning.”
- Peter 57 year old naturopath form Germany
16
NEED FINDING
The semantic network below should give a better understanding of the correlation CHALLENGE:
of the company IWC and their environment (Waht Is?), the features of a watch
and the customers needs and wishes (What If?). The most important words are CREATING AN INNOVTIVE,
in bold.
GENUINE SOLUTION THAT
CAN BE CUSTOMISED
On the right side the insights from the research are transferred into general and AND ADJUSTED TO THE
individual needs that built the base for further evaluations and the hypothesis.
NDIVIDUAL’S NEEDS
Seconds
Minutes
hours
time
measurement
-Watch-
automatic
mechanical movement
WHAT IF?
mature Limited editions
prestige
style Res-istant identification durable
Pilot
Ingenieur
Portuguese
passion for innovation
emotions passion for details
nostalgia
Swiss watches
-Customer- life your dream strong status symbol
accuracy
highest of technology
masculine titanium, ceramic, rubber
stainless steel, platinum, gold
timing self-winding wristband
water-resistant
sapphire glass
heritage
international reputation
technical inventiveness
Schaffhausen
black and white
Need for time measurement
Need for high precision
Need for high quality
Need for accuracy
Need for identification
Portofino
highest quality
Need for structure
Need for durability
Da Vinci
-IWC- Aquatimer
engineering
GENERAL NEEDS
Date display stopwatch function Need for organisation
Need for status
INDIVIDUAL NEEDS
case Semantic Network
Need for prestige
Need to be individual
Need to live your life
Need to fulfill a dream
Need to belong to a certain group
Need for luxury
17
IWC
-
Headquarters in Schaffhausen
-
Only watch manufacturer in the German speaking part of Switzerland
-
1100 employees / 120 high qualified
horologists
-
Since 2000 part of the Richemont
International SA (distribution, IT, legal and administration services)
-
wide product and price range
CUSTOMERS
-
-
Men and women
Appreciate a luxurious lifestyle
-
-
High awareness of Swiss watch design
Appreciate high quality
-
Willing to spend more for better quality
-
REGULATIONS
-
-
Fair trade regulations / policies
Sustainability requirements
-
-
Swiss trading law
50% Swiss made clause
-
World trading law
ANALYSIS MARKET
ECO System
The ECO-System gives an overview on internal and external factors that might have an impact on IWC in the future.
These factors can create competitive advantage, value or
threats for the company and need to be taken in consideration for further evaluations.5
GLOBALISTION
-
-
-
New markets (BRIC)
Different cultures
World financial crisis
Macro
environment
-
Fast developing
Micro
environment
technology
Care about origin and manufacturer
SUPPLIERS
-
-
-
60% in-house production
40% of the movements are produced by ETA SA
Strong code of conduct to ensure fair, honest and mutually beneficial trade practices, which ultimately
help to ensure high-quality products and services
Internal environment
DISTRIBUTION
WHAT IF?
-
-
900 selling points worldwide
60 IWC-boutiques: Flagship stores in Zürich, New York and Hong Kong
COMPETITORS
-
A. Lange & Söhne
-Rolex
-Cartier
-Hublot
TRENDS
-
Globalisation & mass production
-
Shift in sexes
-
Quality vs. quantity
-Customisation
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ANALYSIS RESEARCH
After having analysed the company and its environment, the findings were taken
to adjust the current value curve (p.9). Four criteria have been added: personalisation, individuality, self- determination and affiliation.
PERSONALISATION:
Trend research showd that people are longing for more genuine and personalised products. This is also reflected in the interviews. One of the interviewees
mentioned that she wishes for a more personalised option that also is affordable.
INDIVIDUALITY:
As from trend research, men as well as women wish for individuality, and to live
Adjusted Value Curve
this through a specific lifestyle. Also mentioned in the interviews was that there is
a wish for an individual solution of an IWC watch to differentiate yourself from the
mass and underline the personality.
SELF-DETERMINATION:
Having the possibility to decide about your life is one of people’s basic need.
Giving customers the possibility to decide on their own how a solution should
look like, gives them a feeling of power and engagement. This is also seen in the
trend research’s customisation section.
HIGH
AFFILIATION:
Self- determination as described above gives
customers a feeling of belonging, being part of
the IWC community. This guarantees long lasting customer relationships.
MEDIUM
LOW
AFFILIATION
SELF-DETERMINATION
PERSONALISATION
INDIVIDUALITY
WARRANTY
MANUFACTURED IN HOUSE
REPUTATION
PURCHASE / ACCESSIBILITY
DESIGN
VARIETY OF OFFERING
QUALITY OF WATCHES
WHAT IF?
PRICE
EXTENTION
Potential Value Curve
Current Value Curve
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Based on the research, four different concepts were created. For every concept
a short evaluation of the change within the innovation types and if it is a short-,
middle- or long-term investment, was made.
IDEATION
Concept Creation
CHARITY WATCH: BREAST CANCER
The charity watch edition would, for the first time in the history of IWC, target
women. A special edition dedicated to the problem of breast cancer. A campaign
showing famous women that conquered breast cancer would promote this new
watch and raise the public’s awareness of breast cancer. Both IWC’s reputation
and, by targeting women directly, their target audience would increase.
Middle-term investment
RECYCLING WATCH
WHAT WOW’S?
For IWC being sustainable and ecological is very important. In the F1 industry,
only the best materials are used. Why not making new from old and creating an
IWC out of an old F1 car? Since IWC collaborates closely with Mercedes Petronas AMG they could tighten their relationship and increase their public reputation
simultaneously.
Short-term investment
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IDEATION
Concept Creation
THE TOURNAMENT
The Tournament is a competition or adventure trip that gives IWC customers the
possibility to get on the trail of their heroes. Behind every watch family there is
a story and a person / hero; the Portuguese maritime nation for the Portuguese
family, writer and pilot Antoine de Saint- Exupéry for the Pilots family or F1 racers
for the Ingeneur family. IWC customers can apply for The Tournament on Facebook. The competition is broadcasted online on the IWC blog and the Facebook
page. This increases customer engagement, makes the brand more exciting and
raises public awareness.
Middle-term investment
IWCHANGE
WHAT WOW’S?
IWChange is a modular system for IWC’s low price models like the Portofino,
specifically targeting the middle- income customers. Most young people can’t
afford to buy several IWC watches but would like to have some other options.
Another need of the young professionals is to be individual and trendy. With an
exchangeable wristband and lunette IWChange would serve this needs.
Short-term investment
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IDEATION
Concept Evaluation
The grading below evaluates the concepts according to the criteria
defined on the pages before.
Charity watch: Breast cancer Recycling Watch The Tournament
IWChange
INDIVIDUALITY
2,50
2,50
4,00
5,00
PERSONALISATION
2,50
2,50
1,00
5,00
SELF-DETERMINATION
2,50
2,50
5,00
5,00
AFFILIATION
5,00
5,00
5,00
3,00
Total grading:
12,50
12,50
15,00
18,00
Grading: 1 low influence - 5 high influence
EVALUATION FINAL CONCEPT
Individuality and personalisation is, as from the interviews
most important for the customers. Both are fulfilled with the
concept IWChange. Self-determination is also met with IWChange because the concept gives customers the chance
to customise their watch. The Tournament is a competition
that involves customers actively by taking part and becoming
part of IWC, the history. Therefore the rating for self- determination and affiliation is 5. The Charity Watch and the Recycling Watch engage customers socailly / ecologically, what
the reason for the high grading in affiliation justifies.
The winning concept is IWChange with 18 points.
With this solution a wider target audience can be reached
and the customer relationship will be strengthen by giving
them decisive power.
WHAT WOW’S?
EVALUATION ALL CONCEPTS
For the customers IWChange is a new, genuine and innovative solution that gives them the freedom to be individual,
unique and express this though their very own IWC model.
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FINAL CONCEPT
Mood Board
WHAT WORKS?
IWChange:
3 wristbands
3 lunettes, one tool
BE THE CHANGE
YOU WISH TO SEE
IN OTHERS
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- BE THE CHANGE YOU WISH
TO SEE IN OTHERS IWChange
WHAT IS?
IWC already has a very wide product range. Especially in the segment of
the CHF 10’000 watches, IWC offers many different options to customise
the watch. When it comes to models arround CHF 4’000 though, IWC
only offers a few standardised models. Here is where IWChange wants
to tie on.
FINAL CONCEPT
IWChange
STRATEGY: PROFIT MODEL
Profit models require for a deep understanding of customer’s needs and wishes.
Profit model innovations include an enduring and disposable part. In the case of
IWChange, the actual movement is the precious part that customers invest in.
The wristband and lunette are the disposable parts that can be purchased for a
lower price. With the changing of trends in fashion IWC can quick and easily adjust the IWChange offer at low costs. This again guarantees long term customer
relationship and engagement.
The graph below shows the shift in the innovation types. The chart lists the criteria met by IWChange.
WHAT IF?
Inspired from Nike or MyMuesli (Trend Research, p.15) the concept gives
customers the possibility to customise their watch. As learned from the
interviews (p.16), customers wish for a design solution that is genuine,
unique and reflects their lifestyle.
WHAT WOW’S?
WHAT WORKS?
IWChange targets young professionals (yuppies), with a middle to high
income, that wish for unique and personalised design solutions. To be individual and underline this though a certain lifestyle and the products they
use, is very important for the yuppies.
WHAT WORKS?
IWChange is a tool kit comprising of three different wristbands and
three different lunettes that can be applied to all low- price models like
the Portofino. A new technology for the application of the wristband and
the lunette gives the customers the possibility to assembly the watch on
their own. The tool kit includes watchmaker tools for the assembly. This
strengthens customer engagement and gives them the freedom to “design” their own watch.
PRODUCT
PERFORMANCE
CUSTOMER
ENGAGEMENT
BRAND
added functionality
autonomy and authority
brand extension
customization
community and belonging
component branding
engaging functionality
experience automation and
enabling
value alignment
focus on young
professionals
personalisation
styling
status and recognition
superior product
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CONCLUSION
The assignment we were given in Strategic Design Planning proved to be challenging yet rewarding. Taking a company, in my case IWC, analysing their design
strategy and finding a way to make them go further through innovation and to
optimise their processes around incremental improvement, was very interesting
but difficult.
IWC already does a lot regarding innovation and has a very wide range of product
offers. My main approach was to put IWC into a different context to see them
from another point of view. This was crucial in the process of analysing the company to stay unbiased in order to find new, different and innovative solutions.
The skills learned throughout this assignment, for instance having a good understanding of a companies mission and environment, adapting the Ten Type of
Innovation and using innovative tools such as the value curve, then challenging
yourself to think out of the box and push boundaries that lead to an unexpected
new solution, will prove to be vital skills that can be incorporated in all different
kinds of future projects.
This was the first time I approached such a project on my own. It was not easy
because I feel more comfortable working in a team. First because of the exchange with other people and secondly because it is just more inspiring.
In future before starting such a project I would pay more attention on the management of deadlines. I struggled in finishing on time but finally managed to compete the project.
IWC Schaffhausen Portofino
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REFERENCES
SOURCES
1.http://www.iwc.com
2.
http://www.wempe.de/unternehmen/magazin/interview-georges-kern-iwc.html
3.
http://www.wasistzeit.de/index.php
4.
Lectures: Trend Research, U. Hersperger, 2012
5.
6. Deresky, H. (8th Edition).(2014). International Management. Pearson. MA: Pearson Education Limited
Keely R. (2013). Ten Type of Innovation. Deloitte Development LLC
BOOKS
Liedtka and Olgilvie (2011). Designing for Grwoth. Columbia Business School
IWC Schaffhausen (2013). Sammelband 13/14
IWC Schaffhausen (1,2,3 Edition). (2013). Watch
Magazine
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APPENDIX
Work Moodboard
Idea Sketching
Field research:
Bahnhofstrasse
IWC Museum
Beyer Watch Museum
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