PRODUCT STRATEGY

Positioning/Branding/Key successful factors

The Patek Philippe Company stands for quality and reliability and produces some of the most expensive watches going. Each single movement manufactured by the company is put through approximately 600 hours of quality control. The assembled watches are then taken through severe testing and observation for 15 days before they are deemed ready for the customer. Due to this attention to detail on each watch, only 30,000 watches are produced annually, in small series ranging from a few to several hundred. The smaller series watches are famous for selling for extraordinary prices at auctions, with one recently selling for $1.4M. Among the 100 most expensive watches sold at auction, 80 were from Patek Philippe.

Patek Philippe doesn’t do a great deal in the way of promotion but what it does do is solid and very well crafted. A long running campaign has used the tag line “You never actually own a Patek Philippe. You merely look after it for the next generation.” This perfectly communicates the unique appeal and the fact they are of such quality and potentially historically significance. It is clear that you have to have a certain level of income to be able to afford one of these watches, which probably means you can buy most things you want, certainly most watches. What this campaign cleverly does suggest this product is beyond money, instead it is about leaving a legacy that can be passed down generations, something that money can’t normally buy. It shows the timeless character of the brand and plays on the idea that you are not going to buy a good watch every week, so if you want something for life then Patek Philippe is for you. The ads will appear in quality daily newspapers and influential trade publications, such as The Financial times and the Economist, as well as at the point of sale.

This campaign and variations of it has been running since 2005, but early this year (2010) Patek Philippe launched a new campaign which backs up the family heritage feel of the ‘generations’ ads. Using a similar look and feel to the generation ads it takes the form of a personal letter from Patek Philippe president Thierry Stern, describing what, for him, makes a family-owned watch company different from any other one. As well has highlighting the craftsmanship and innovation needed when creating a watch of this quality.

Patek Philippe is also well known for their work in innovation and development of new technology. They don’t let cost be an issue to their promotional work, letting the technology and craftsmanship sell its self, rather than compromising quality in order to sell more watches.

There is no evidence of Patek Philippe using any other forms of promotional techniques. There is a token facebook fan page set up, (11) but it feels like this has been done to tick a box rather than a serious marketing tool.

Target Maket

The expectations and tastes of Patek Philippe clients are quite similar from one market to the other. The differences can come from the horological culture that can vary from one part of the world to the other.

According to the plans of Patek Philippe, our presence depends on a traditional distribution network with about 600 points of sale selected in over 70 countries. Our sales are about 45% in Europe, 20% in the USA, 30% in Asia and 5% other markets.

They will continue to privilege our traditional markets, established over the long term but they keep an eye on the emerging markets.

Product Lines

As you can see, for what I have said so far, the main product of Patek Philippe is the luxury watch but now I want you to know, Patek Philippe also has another product lines that is about the jewelries.

Here are four product lines of Patek Philippe:

Men’s Watches

Calatrava

Created in 1932 as the result of an avant-garde philosophy of aesthetics that showcases sleek lines and subtle elegance, the collection expresses artistic ingenuity at its very finest. The endearing quality of the design reflects the relentless pursuit of perfection that has always been at the core of Patek Philippe's mission.

These inimitably elegant ladies' and men's watches are impervious to short-lived trends, recapturing the hearts of each new generation. Whether extra thin, with hobnail patterns or wide polished bezels, they are all unmistakable members of the Calatrava family and even their changing faces cannot belie their origins. No other watch lends better expression to the true Patek Philippe style.

Golden Ellipse

Gondolo

Aquanaut

Nautilus

Ladies’ Watches

Twenty~4

Patek Philippe's lady’s Twenty~4® wristwatch launched in 1999 is a modern interpretation of the Gondolo timepiece. It was created for the refined, active woman of today who seeks a watch that reflects her style and may be worn on all occasions. Each model reflects perfection in craftsmanship, and the curved silhouette of the case is a loving caress for the feminine wrist.

Whether in cool steel, warm rose gold, or noble white gold, each model radiates the incomparably fiery splendor of Top Wesselton diamonds that adorn the bezel, the case, and/or the bracelet. The crown of each Twenty~4® is studded with an onyx or a diamond solitaire. The gold collection includes precious small-size models and breathtaking pieces of high jewellery. A line of Twenty~4® rings and earrings echo the watch's collection, forming a sophisticated ensemble that will compliment every taste.

Calatrava

Gondolo

Aquanaut

Nautilus

Pocket Watches

Lepine Pocket Watches

Patek Philippe makes a few complicated and simple pocket watches a year to display the rare arts that have distinguished the finest Geneva watches for more than 400 years.

Hunter Pocket Watches

Jewelries

Patek Philippe offers an exclusive choice of jewelry items for both Ladies and Men which create exquisite ensembles with the matching watches, as well as a choice of branded jewelry which will complement elegantly any Patek Philippe timepiece. The jewelry line expresses the creativity and skills of Patek Philippe’s designers and artisans. Made in respect of the tradition and high quality of its precious timepieces, the same care and attention is perpetuated in the creation of its jewelry collections beautifully crafted by hand. Patek Philippe’s jewelry line is proposed in 18 carat yellow, white or rose gold and is adorned with flawless diamonds or precious stones such as onyx, lapis lazuli or agate.

Men Jewelries

Women Jewelries