Week 4 - The Marketing Environment

      

       Multi-faceted is a word that constantly related to Swarovski, not only to the properties of theirr cut crystal but also to the divesrity of their business. Thanks to their facets, Swarovski's target consumer is "vertually every female" from 17 to 71 in terms either of buying or gift receiving, by bringing considered and diverse offering to such a broad range of people. Even though each cohort group (tweens, generations X,Yand Baby Boomers) has its own needs and values, Swarovski meets most of them.

      Demographic factor is very important in marketing. The study of people's vital statistics, such as their age, race and ethnicity, and location helps to define a behavior in the marketplace. Swarovski Jewellery bases most of its market on women of age 25 and above by creating bridal, business, classical and sophisticated collections. It also include men accessories such as blacelets and watches, and of course children over 6 years old.

       One of the biggest Swarovki's market target today is fashion industry. Swarovski crystals are affixed to everything from Victoria's Secret bra sets and Kawasaki motorcycles, to the clothing collections of such fashion heavies as Dolce & Gabbanna and avant-garde vintage revisionists Imitation of Christ. Swarovski was the sole sponsor of this year's prestigious Council of Fashion Designers of America Awards in New York City. And celebrities from Hilary Swank to Kate Beckinsale and Mira Sorvino have flaunted Swarovski accessories at some of the biggest star-studded events in Hollywood.

        A fifth-generation Swarovski -- she is the daughter of the company's current CEO, Helmut Swarovski -Nadja Swarovski saw the potential of affixing the company name to something much more valuable than miniature crystal dolls. The infrastructure was already in place, all it needed was somebody to point it out. Nadja Swarovski looked to the company's underside, the history most consumers did not know about. She created a new public-relations strategy - with the help of professional muse Isabella Blow, the doyenne of the British-fashion set, Swarovski called upon some of the fashion names the company had already been doing business with for years, as well as some new names, and made them offers they could not refuse. Designers would be supplied with free crystal to be integrated into their work as they saw fit. All the designers had to do was say that these crystals were Swarovski crystals, and say it often.

        Swarovski started what she calls a "crystal re-education program" for designers and established offices in some of the world's fashion centres -- London, Paris, Wattens, New York, Milan, New Delhi, Sao Paolo and Dubai. Today, designers from several creative realms (interior, jewellery, lighting, home and fashion) are brought in to meet with consultants and are provided with access to a range of Swarovski materials. This is how the costume designer for Moulin Rouge came to decorate Nicole Kidman, head to toe, in Swarovski stones.Understanding market and fashion, Nadja Swarovski united their brand name with the best designers of the world.

Corporate Irresponsibility

    

   

      Recently, there has been an increased regulatory focus on potential human exposure to lead from various consumer products, including jewellery. Crystal has unique properties. The crystal manufacturing process creates a matrix which inhibits the mobility of lead. There are many different health effects associated with elevated blood lead levels. Young children under the age of six are especially vulnerable to lead's harmful health effects because their brains and central nervous system are still being formed. For them, even very low levels of exposure can result in reduced IQ, learning disabilities, attention deficit disorders, behavioral problems, stunted growth, impaired hearing, and kidney damage. At high levels of exposure, a child may become mentally retarded, fall into a coma, and even die from lead poisoning. Lead poisoning has also been associated with juvenile delinquency and criminal behavior.

     Swarovski is the world leader in the manufacture of crystal for industrial and consumer applications, including figurines and jewelry. The question is Swarovski being ethically irresponsable by offering product that is dangerous for our lives? California Proposition 65 law requires that Swarovski goods to be labeled as hazzardous because Swarovski Crystal has 32% of lead. It is used to maximize the way the light refracts through the crystal which gives them an almost diamond-like sparkling quality.

      Swarovski representative Karen Sweeny says that the crystal manufacturing process creates a matrix which inhibits the mobility of lead. In other words, lead is bound into the structure of the crystal. Because of this structure, lead crystal poses no significant risk of excessive lead exposure to human health via surface contact (hand to mouth), mouthing or even ingestion. Indeed, Swarovski crystals have been tested under a variety of test methods for extractable lead. Test conditions and procedures do vary, but lead levels are well below regulatory limits even when the crystal is tested in an acid solution to maximize the release of lead. So, California AB 1681 allows the continued use of crystal without limitation in jewellery not intended for children. For children 6 or younger, up to 1 gram of crystal may be used in such jewellery. These same standards were adopted in the state of Minnesota. Similar bills are pending in other states, but some states are considering or have adopted new limits on lead that do not include an exemption for crystal.

      Bottom line is unless you're grinding up the crystals and sprinkling them on your breakfast cereal, it is doubtful that "normal" jewellery usage and wear will give you any problems. Swarovski crystal is safe to wear. And that's what we really need to know. Otherwise, they would have gone out of business long time ago and you wouldn't see not only beaders and jewellery makers but also some very prominent fashion designers using them.

Clothes I am wearing

Jacket Armani Exchange made in India
Jeans Express made in China
T shirt Merona made in Indonesia
Undewear Victoria's Secret made in Shri Lanka
Shoes American Eagle made in China

Week 3-Ethics and Social Responsibility

      

      “Supporting social and environmental projects is the obligation of a responsible company,” Daniel Swarovski I (1862 – 1956)

        Social responsibility of business is growing around the world. Swarovski focuses on the water supply as the major social concern. Following the founders’ principle, an idea was formed in 1998. Swarovski, together with managers of the national parks and regional teachers came up with the idea of a water school. The long-term objectives of the Swarovski Water School included promoting greater understanding of social, economic and environmental interrelationships throughout different regions of the world.  One year later, in the heart of the National Park Hohe Tauern in Austria, the first Swarovski Water School opened its doors. In 2008, together with the SCS(Swarovski Crystal Society), the focus of the Swarovski Water School was in launching The Living Yangtze Project in China.  In 2009, Swarovski Water School was underway with programms tailored to the region of Bwindi-Rainforest National Park in southwestern Uganda.

       The philosophy of the school is to teach young children between the ages of 8 and 13 the importance of maintaining one of our most vital resources - water. In an informative and playful manner, children participate in experiments, games and presentations that show the delicate balance between water and our planet's eco-system as well as the global impact we all have on it.

       Swarovski believs that future relies on sustainability. This refers to the idea, that focusing on the world's social problems and viewing them as opportunities will help to build profits and help the world at the same time. For example, to support Living Ganges Project in India based on preserving endangered wildlife, Swarovski created 33 Kiran Pointiage® Tigers that are to be sold at auction only. Their rare status makes them a coveted collector piece which has, in turn, provided a significant contribution to the Living Ganges Project. Other contributions came from the sale of SCS Membership, Annual Audition, Tiger 2010 and other SCS related products in 2010. As of August, 2010, a total of 660’613.00 Euro has been collected to support the Living Ganges Project.

       In the past eight years, about 15’000 children have already attended the one-week long Swarovski Water School in Austria. The popularity of the programme quickly spread and it is now available to children in the areas of Kärnten, Tyrol and Salzburg. This travelling education programme has now reached approximately 55’000 children worldwide.

 

The Swarovski Water School for Children

Week 2- Strategic Planning

      Swarovski Company has been around more then hundred years. It had it's ups and downs, but it has always been a successful company. Family traditions, passion for brand, excellence for customers, and innovation for business-that what keeps Swarovski as a leading jewellery company. It has an outstanding team that maintains and creates a fit between the organization's objectives and resources and the evolving market opportunities.

      Swarovski Jewellery as one of the branches of Swarovski Corporation works a lot on its strategic planning. It uses different opportunities to market itself. For example, Swarovski and Disney Series bring out childhood memories by launching jewelry for Disney characters. You can see tiny pooh wearing a red cloak out of crystals. They also made a Mickey Mouse earrings or Hello Kitty Blackberry case that are available in the stores now. These Disney characters would never be out of fashion and will be always in demand not only in America, but all over the world.

      Swarovski is a great example of a strong product/service differentiation competitive advantage. It's built around creating something unique using modern techniques and product innovation. The company's goal is to create something that nobody had created before, or improve something that already exists. For example,

innovative metallic coating of a crystal or Aurora Borealis which gives the rainbow oil slick appearance for the jewellery.

      Swarovski Company is very diverse in its production. It is known not only for jewellery, but for high precision optics, avan garde lighting and design, crystal designs, architecture and so on. It increases sales by introducing new products for the market. Those sales are dependant on the ways they market the products. For example, Swarovski Jewellery has a very unique pieces of jewelry that have a value for a lot of people. The jewelries are available in the every retail store or online with an excellent customer service. They are widely advertised on TV, billboards and by celebrities plus they are very affordable therefore they have a huge demand. All the above produce mutually satisfying exchanges with a target market.

     To sum up, strategic planning requires continual attention, creativity, and management commitment. I think, Swarovski Jewellery performs all of those functions because we see that it has been growing for decades showing success.

Week 1 History and Mission Statement

Swarovskijewellery: History and Mission of Swarovski Company: " Daniel Swarovski (October 24, 1862 – January 23, 1956) was born in northern Bohemia (now the Czech Republic). His father was a glass c..."