Classic Watch Company

646 Words3 Pages
The Classic Watch Co., in the business of making classic wristwatches for the last 20 years is a product oriented business. It focuses its efforts on the strength of its products as opposed to market research on consumer demands like a market oriented business. The company relied on the reputable quality and recognized design of the product as their business model. Philip Kotler describes a product oriented business as follows “A product orientated company believes that its product's high quality and functional features make it a superior product. Such a company believes that if they have a superior product customers will automatically like it as well. The problem with this approach is that superiority alone does not sell products; superior products will not sell unless they satisfy consumer wants and needs” Harry’s original product oriented strategy is no longer succeeding in increasing sales. There are a number of reasons why this is so. One of the problems facing Harry is that the product is losing its value in the market. It is mentioned that consumers were attracted to its good value and economic sensibility during the crisis but as the country emerged from financial distress Harry’s product began losing ground. In a product oriented market the product must be able to sell itself or sales will suffer. Harry’s product can no longer sustain itself based on its design and value alone. The main issue for Harry, as it related to his decreasing sales, is a failure to take into consideration the market, the changes in consumer tastes, behaviours and demands. With the increase of income consumer’s may desire a more affluent or luxurious product. With the fashion consciousness of both males and females a more stylish product would be desired. It is Harry’s failure to build a marketing mix that targets these types of consumers that is resulting in lowered sales. To
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