Opinions on IWC’s Marketing Partnerships?

It occurred to me that IWC has developed several "relationships" with outside organizations, both commercial and non-commercial, over the past three years. I thought that it now might make sense to "take a step back" and consider what's being done and how effective it's been.

Personally, I think that this represents a classic case of excellent business acumen by IWC. Here's a company with a great product but which had somewhat of a cult following. Perhaps outside of Switzerland, Germany and Austria, IWC to some was considered as having a niche role in a very crowded marketplace. The question, then, is how to increase public awareness of the brand without diluting the fundamental concept that its products are special.

The traditional approach, used by most companies, has been to employ either massive advertising or ambassadors, or both. The trouble with advertising, although IWC does plenty, is that it is very expensive and also it often cannot be specifically targeted. Ambassadors usually cannot convey technical sophistication. While IWC does engage in some significant advertising and does have some "friends" who are interested in the brand, it does so less than many players in the industry,

Instead, IWC has developed affinity relationships, including with the following:
1. Initially the Cousteau Society
2. then, Mercedes-AMG
3. followed by the Laureus Foundation, and
4. the Foundatiion and Museum honoring Saint-Exupéry.

I personally think that these are very clever and effective alliances. They are generally "high-end" ones without being unnecessarily elite. The Cousteau Society is a leader in underwater exploration and it directly ties into diving watches. The Laureus Foundation for Sport is a very good cause, and subtle because it genuinely is a non-commercial high-end charitable activity with name recognition. Mercedes-AMG is a very high-end automaker and ties in well for a for-profit enterprise. And finally there is a romance and historical importance to Saint-Exupéry.

All these organizations have class –at least in my opinion. With the exception of Mercedes-AMG, which emphasizes engineering, the other organizations are not al all commercial. It seems to me that all these organizations benefit from IWC's presence, sometimes financially and often directly relative to their own activities.

At the same time, IWC also benefits. These organizations frequently have a legitimacy that helps establish IWC's presence, and brings a broader audience to the company in a more sophisticated way than large newspaper ads or simply pretty tennis players. I think that IWC needs to be complimented on its business judgment here as well as its support of charitable activities in most cases. In many ways this may be more cost effective –and perhaps even morally better- than just advertising, and particularly for a company with IWC’s characteristics.

One aspect that challenges me, at least a little, is whether at some point there can be "too much of a good thing". There already are four "alliances" and I'm wondering whether there can or should be any more. But also IWC is a company with relatively distinct product lines and most of these alliances address only one product line.

What do you think? I'd be interested in your opinions of IWC's approach to marketing alliances. Please feel free to post your thoughts here.

Regards,
Michael

All exclusive except possibly one...

I'm not entirely clear on the relationship with the Laureus Foundation. From my understanding, I thought Richemont had the relationship and it has been reflected over the years via co-branded products from other brands in the Richemont stable (most notably Panerai). Does this mean that, going forward, Richemont will now focus on IWC having exclusive rights to the Laureus relationship?

I think that most are good ideas in that they are targeted at specific product lines with very little overlap. However, as you stated in your post, this leads to some duplication. The problem is that I would be hard-pressed to point a finger at one organization and say it embodies all aspects of IWC as a whole.

The only relationship I don't fully understand the dynamics of is with Mercedes-AMG. IMHO I would prefer for IWC to go with a more discrete, boutique car company that is also known for engineering prowess rather than a "tuner" division within a larger behemoth.

Opinions on IWC’s Marketing Partnerships?

Kind of sounds a bit like Rolex. This is a natural course that IWC is taking to establish brand identity and demographic targeting. If you want to be known as a big boy you've got to play with the big boys!

Thoughts

I agree that they have created, and followed through quite beautifully, complimentary marketing techniques.

I think you hit the nail on the head when you mentioned that each endeavour was specific to a line, ie: Cousteau and the dive watches, St. Exupery and the pilot's line. I feel they should explore this route more aggressively, perhaps furthering the Ingeneur line moreso into motorsports using the AMG model as a guide.

They could develop a niche specifically relating to automobile enthusiats by advertising a specific model line in the high-end car magazines and by having a presence at various events. For example, the Beverly Hills Concours on Rodeo could feature a prize and trophy sponsored by IWC. A televised event, but without the crowded market for sponsors and the associated high cost of doing business that another event like Pebble Beach would incur.

Sponsoring events with a tradition of "high-brow" attendance would also surely help raise brand awareness. In Pacific Palisades (near Los Angeles) this past weekend the Will Rogers Polo Field hosted an Aston Martin charity polo tournament. This would be another ideal setting wherein IWC could, for relatively little cost, get on board by sponsoring a similar event. IWC gets some visibility while doing some good at the same time.

Furthermore, I believe the product placement in film, TV, etc. has great value but IWC should be cautioned to keep it low-key. Miami Vice had IWC's on the wrists of it's lead actors but they didn't mention the brand, nor particularly feature the watches in scenes (Tho this can easily be done by a quick cut to the dial when checking the time in nearly any film). They could further specialize this by promoting dive watches in water-themed movies, or the pilot's watches in aviation themed films.

Finally, I also believe that having their product worn by high profile actors is another great way to raise awareness of the brand in a subtle way. Fashion magazines often obsess over accessories, and on many male actors, this is limited to their watch and maybe a ring or necklace. Orlando Bloom is a perfect example of this. I do not know for certain, but assume, he is gifted his IWC's and regardless, he displays them very well while sitting on the couches of all the major talk show hosts. Specifically targeting actors and even specific appearances would be a simple and cheap route. Let's say you have Tom Hanks making an appearance on Leno to promote his new movie. IWC could negotiate at a reasonable rate a situation wherein the actor would wear an IWC for that particular appearance.

Forgive me for steering this to a more "Hollywood" angle, but that's my personal expertise. Other members will doubtless have more suggestions beyond this.

Opinions on IWC’s Marketing Partnerships?

I think the IWC/AMG partnership is great. Personally, my hobby interests lie in both watches and automobiles. I purchased an SL55 in April of 2005 and then ran right out and got the "matching" IWC AMG chrono with soft strap. I am now on my second AMG...the CLS55 (unfortunately not the IWC Ingeneur edition), and soon to be on my third with the new ML63 from AMG. I find the watch/auto connection to be very satisfying. I am actually tempted to find one of the 55 (supposedly) Ingeneurs which came with the limited CLS55. Indeed there was on on ebay the other day.

In terms of thematic watch collecting, there are a number of brands linking themselves to certain cars, as you are well aware. This makes for interesting watch collecting by way of connections to other entirely unrelated areas of interest. As such, those of us WIS's interested in aspects of ocean wildlife, historical links to aviation, etc., I assume are equally thrilled to have their favorite watch brands associated with these non-horological counterparts. It makes sense!

Opinions on IWC’s Marketing Partnerships?

Maybe in this competitive luxury watch market, targeting a niche segment is the best business strategy for IWC.

Rather than jump on the bandwagon and associate the brand with "pretty tennis players" to capture the nouveau riche and wannabe segment (which can be an effective strategy I might add - at the end of the day, every company has to sell its products to continue in operation), IWC has done well to preserve their traditional image.

Whether it is class or snob appeal, IWC's niche marketing strategy is as good as any in the industry.

Opinions on IWC’s Marketing Partnerships?

Marketing partnerships can be quite effective for brand awareness building as many of the forum members have noted. The word of caution I have is that the product should not be overwhelmed by the partner. In the end, the real decision on buying an IWC, IMHO, is based on style backed by the craftsmanship and innovative technology / reputation of IWC. Future partnerships must make the product the “star” and have the partner support this positioning. In summary, the product is always the “star” and is supported by the expected and hopefully well communicated craftsmanship and technology of the watch itself. The marketing / public relations people are experts on the events or communication techniques.

Some thoughts....

I agree with our moderator’s assertion that IWC’s marketing outreach reflects its excellent business acumen. I do feel that where marketing is concerned IWC is currently at a fork in the road; should they go down towards popularity or over towards relative anonymity?

I tip my hat; Richemont has done a commendable job of facilitating (should I say developing) IWC’s growth without altering the heart and soul of the company. Some may be less than enthused with the new marketing direction; yet, considering what could have been, IWC remains remarkably attuned to its brand position while expanding in an increasingly crowded and competitive field. While I do not necessarily identify with (or care for) the alliances IWC has forged with Laureus, Mercedes AMG, Costeau Society and Saint Expury Foundation, they are intelligent choices that each reflect a small piece of what IWC represents. Together, they begin to paint a picture of what I believe IWC really stands for: fine engineering (reflected by AMG), humanitarian yet sporty (Laureus), advancement of knowledge and new frontiers (Costeau) while paying homage to the contributions of the past (Saint Expury). To me, these alliances have nothing to do with watches—they have everything to do with the aura IWC has cultivated over the years. The development of this brand mystique will, in turn, sell watches. Perhaps more importantly, careful cultivation of the brand mystique will ensure that those who buy IWC’s watches value the core philosophies behind the company, thereby advancing the “values” of the company through its expansion. As a fan of the company and as somebody who is amateurishly interested in marketing, I see this as an exciting endeavor.

I am glad that IWC has not employed a large number of “ambassadors” the way Rolex or the Mandarin Oriental hotel group has. Ambassadors, if employed excessively, diminish the aura of the brand. At some point, the qualities the general public ascribes to the ambassadors begins to supercede the brand’s own qualities. Along that vein, I think IWC’s recent endorsement of Miami Vice and, to a lesser extent, Firewall distract from the brand’s core values and market position. I would be sad if IWC goes down the road AP seems to have chosen—seeking out celebrity endorsement and thereby appealing to the trendy. While I readily admit that trends are important, IWC is so much more a trend-setter than a follower. The Portuguese line was and is the epitome of this.

I feel that the alliances with solid, reputable companies that, to a greater or lesser extent, reflect some aspect of IWC’s aura are a good thing. I am not opposed to IWC forming more alliances, provided that they do not overlap with one another. Our moderator correctly notes that the current alliances are linked to product lines. I think the Portofino line is beautiful; yet it is almost invisible. I see room for an alliance there…

Toby

IWC's approach to marketing alliances...

Marketing alliances are an essential component to any growth-sustaining sales strategy. There are examples of successful alliances in just about every industry - from financial services, to home entertainment, high-tech, and aerospace/automotive.

IWC has executed flawlessly - and there is likely room for IWC to add more dimensions to it's "matrix of marketing alliances" - since none of them seem to overlap - and all bring varied dynamics to the brand.

I see the Mercedes-AMG alliance as the most obviously successful "commercial" relationship. The cultures of the 2 companies mesh very well. IWC's "probus scafusia" and AMG's "one man, one engine" philosphy go hand-in-hand. The alliance targets a specific customer - any man who is interested in watches AND performance cars knows of the major distinction between any old Mercedes and an AMG model. It's the same customer who is drawn to the technical details, design, quality craftsmanship, and understated style of IWC.

As evidence of this - I have heard that a Southern California AMG dealership (who sells a lot of SLRs, and Maybachs) has done very well in capturing "high-end" IWC clients - who buy above the Ingenieur line of watches. It's a very smart to place your product along with cars that sell for excess of $300,000 and $400,000 each.

IWC & AMG Website

I beg to differ w/ majority opinion about this:

IMHO this is all totally unnecessary unless the brand is trying very hard to invent "unnatural" reasons for the public to buy an IWC watch (more about "natural" below)... What is great with IWC is that there are models for all budgets from reasonable to super expensive, from super simple and yet out of the ordinary to most complicated models. In general, really superior watch makers do not bother to "create" such partnerships for new models, I am thinking about IWC sister brand Lange or another great watchmaking reference: Patek. (maybe I am wrong and they do but I never noticed it :->)

This trend of setting up new partnerships every six months is most likely the result of Richemont marketing gurus repeating the same formula they implemented for JLC, Panerai, Tag, etc... Let me be a bit more brutal here: I think such partnerships with a car maker is silly! Brietling, JLC, Tag and others have also done it and none of these does anything to me, I drive a Jeep and I could not care less if it was a Toyota or a Porsche. In particular I think - like it was said by another forumer above - that In the end, the real or "natural" decision on buying an IWC - IMHO - is based on style backed by the craftsmanship and innovative technology and reputation of IWC, not because so and so wears it or such and such other brand has some "relationship" with IWC.

In summary, to be even more honest and direct, I feel that these repeated artificial co-brands are creating the fuzzy feeling of getting into something rather fake and overdone. How can one seriously believe the IWC watchmakers had anything to do with the design and engineering of the next Mercedes luxury model?! Or looking across the Richemont portfolio, when did JLC work with Aston Martin on the next DB9?! Really, can we be honest for 2 seconds?

Now I don't disagree that IWC needs to communicate in order to sell watches in order to continue to prosper... that is why IMHO the better marketing is the one where our beloved brand enters partnerships that support a good cause, or help some charity events. The annual auction is a great concept, the Cousteau Foundation OK, although if you look closely, Jacques Cousteau was wearing a Blancpain when he shot "Le monde du silence" and Omega + Rolex were at the time fighting with the top spot for testing diving performance watches at Comex... IWC does not really have a genuine history with these organizations... so one must be careful not to push too much the "long tradition" side of the story and finally create some myths that turn out disappointing fairy tales when you actually check on it.

Once again, really great great watches sell because of exceptional craftsmanship and design, which has been the case for IWC before Richemont started duplicating marketing strategies across its brands... it is still true for most IWC models, and it is still definitively the case for some other superior brands I mentioned above. In general I think Richemont - again IMHO - has done a descent job (in a lot of case better than Swatch for example) at selecting good brands and preserving each identity and goodwill.

However I think there is some serious risk at losing such position when too much marketing enters the daily making of the brand. It is a fine line and a delicate balance, I am sure the current management realizes that IWC is no Tag Heuer, but they have to watch out, too many tactics and strategies from Mr Kern Tag's days seem to want to resurface in Shaffhausen... again my opinion, I am sure I am exaggerating and I will be proven wrong, it's my dark side thinking here.

Thanks MF for opening this very exciting topic, I have been a bit lose in expressing some of my ideas here, and I apologize if I have offended anyone, it was not my intention: my main motivation was to be honest and direct but certainly not too controversial or upsetting. No disrespect intended but an attempt to express a passionate but dissenting opinion :-))

Cheers everyone - Paga

I mostly agree with Paga...

and disagree with car manufacturer cooperation. And let's not forget that a high end can be a bit esoteric.

cheers,

aki

I agree with Ravination

Michael, I was just thinking of the very same topic last week.

I agree with Ravination. Other than AMG, the other three partners are great organizations which complement and enhance the IWC image. As they are all non-profit organizations each serving a great cause and protecting an important part of the present or the past. Each of them represents something special and worthwhile, and each reflecting the pinnacle in their respective fields.

The AMG partnership is somewhat mystifying, as now we are dealing with a for-profit organization which is nothing like the other three. For the Ingenieur line, IWC is proud of its innovation, performance, and engineering excellence, it is a watch for someone who loves watches. In the car world, for the same qualities, you would think squarely of Ferrari and perhaps of no others. If you dig into history and motor sport, you could perhaps add vintage Marserati, Aston Martin, Jaguar, Lotus and Bentley to the list. But AMG just does not cut it. It is a mass-produced car with bigger engines coupled to mandatory automatic transmission, it simply has too much electronics between the driver and the car that takes the joy away from motoring. I test drove a SL55 and E55, it was fast but hugely unsatisfying, it is missing that visceral link between man and machine, which is the very essence of fine motoring.

To me, the AMG is perfectly engineered like a Lexus, both distilled, homogenized and soulless. When I think AMG, I think of a driver in nifty uniform who operate computers, who never touches the engine, who never double-clutch during a shift, and who never pump the pedal for maximum braking during a turn. It is not for someone who “loves” cars and driving. As a co-branding message, it reminds me of a fine quartz watch, not IWC.

My baby sister has a Ferrari Dino, now, that’s a car for someone who is truly passionate about cars. It screams mechanical movement all the way, very much like the Spitfire and the Ju. I am sure if Florentine Jones is still around, he would prefer to promote his Jones pocket watches with a 512BB Berlinetta Boxer or a Daytona.

Hey, but picking 3 out 4 is a great start for IWC.

Keep it simple, neotraditional and ...>

not too trendy.

Best from Isobars.

I completely agree with paga! Well said! nt

A bit too much....

Hi,

I agreed with MF wholeheartly, but it appeared to me that this kind of connection is a bit too much, and some of them are counter-productive. For example ( Prada- IWC special edition and those linage with fasion label, IWCs are an fashion , it is a complicate tool/ machine), AMG-IWC is good in term of it's design and spirit. Same thing about Consteau edition.

If I have to propose another partnership, I think Tiffany & co. is well suited IWC in both prestige and elegancy .

Regards

Stephen

This is a balance question

Hello Michael and fellow forum participants,

I think that this topic and discussion is one of the best this Forum can provide to the participants and IWC enthousiasts and it is exciting indeed! Thanks Michael for giving us the opportunity to express our views here.

To my opinion the essence of our discussion is the balance between production volume, sales figures versus profitability and growth. Personally I don't have the solution of this equation, but let me present as briefly as possible what I mean.

It is clear that IWC as a member of Richemont Group is meant to make profit and grow. But the first question is how much growth is considered satisfactory without altering the DNA of IWC and of its image. Exclusive or luxury items as products of craftmanship are meant to be what their name states. In other words, if -say- the target is to increase sales volume, then gradually the exclusive items become "consumables" and the luxury disappears. That is what more or less happened to cars. Well known classy car manufacturers of the 60's became -if survived by then- mass producers of indeferent vehicles of the 90's.

On the other hand if one visits Basel World, where big players are mixed with the smaller and smallest ones, realizes that the international competition of watch manufacturers is really harsh.
Definetely IWC needs a marketing strategy, as its reputation is not enough to get the watches automatically out of the ADs' windows.

That said, IMHO IWC core customers are not attracted by the synergies Michael presented. These synergies are good to attract prospect clients, but there is always the risk to repel prospects who are not fond of the alliances in place. For example, personally I am not an AMG enthousiast. Although I believe an IWC watch fits perfectly a Mercedes SL of the 60's I don't see how an IWC is connected with an AMG tuned Mercedes of 200x. To my taste the last collections of IWC (1995 and on) fit better high-end italian car manufacturers. But this is only personal and I wouldn't suggest that IWC should look on the southern border of Switzerland for the next synergy.

Although my personal attraction story to IWC is not statistically important, I believe that it could give some ideas that I will develop in a subsequent post. It is since the early 90's that I am aware of the IWC brand. Then I was at my early 20's and certainly I couldn't aford buying any IWC on my own as a student. However over the last yeears I followed closely both the press ads and fine watches' exhibitions. Back then I was attracted to IWC, but I was mostly biased to JLC, due to the Master Geographic I had tried in 1997.
For years I never bought the JLC Master Geo. The reason was that I considered it to be "expensive" and I thought that this would be the one and only watch that I would ever buy at this price! :-)) However this watch was regularly available and the sale price was more or less constant over the last 9 years.
The turning point for IWC was the famous ad about the "doctor and the 7 days". The watch looked fine on the press ad and I just wanted to give it a try at the store of my AD (of today). The plan would be the same. Try it and may be think about it for the next 10 years :-)).
However it happened that recently my AD had available the last Portugieser 2000 (steel) worldwide, just delivered from IWC. This is what really pushed me to buy this watch and enter the IWC world. To many in this forum the Portugieser 2000 is somewhere "between" the Jubilee, Jone and Portugieser 5001. However I didn't need to get any second opinions to buy it. I wasn't even a member of this forum when I met my decision. So for me the limited edition was the turnkey to be now a member of the IWC forum. The St.Ex. was much faster than I thought my second order (still to be delivered) but this doesn't mean that I would only collect limited edition IWCs.

Although the marketing strategy of iWC that attracted me might be indeferent to many of you, I think it might be worthwhile to read my next post, where I will present an idea...

The Forum shows the way!

... given the above thoughts I think that this Forum shows the way. I have absolutely no intention of offending CL AMG owners, but honnestly how many of the forum participants believe that an AMG owner might influence other prospects towards IWC? Or the other way around, why would a prospect buy the watch, if he can't afford the car? And the british or italian sports'car enthousiasts?

... and the other synergies. They do not make a lot of sence to me,
as I cannot understand why I should feel "connected" to the Laureous foundation, of which I had never heard before.

My proposal is to use the internet and to develop gradually a sophisticated CRM platform. This Forum is the first and very successfull attempt of IWC to connect the brand with the owners. I believe that his attempt has to be further developed and individualized. There is practically no direct link of the case number and the owner. But I think that his should be the case in the future. A CRM system would be much cheaper than advertising on expensive press ads. The CRM along with the right insentives to attract customers to participate in it, would give a much better view to the marketing team of IWC. Our views are interesting but statistically insignificant. But a CRM database with answers to questionnaires and polls is to my view the tool to use in the next decade.

Cheers to all.

Agamemnon

It's about identity....>>>

In a way marketing has to do with building an identity. You can clearly see that IWC is trying to expand the identity of it’s product beyond that of a technical and well made watch to what you might call “a way of life” which incorporates much more than just a watch. I guess there has been a lot of brainstorming going on in Schaffhausen as to how to connect the product with a way of life that appeals to potential customers. I think that looking at the networking they have done and the other products and people they have chosen to expand their identity with, IWC did a great job. Technical, sportive, historical and with a hint of excellence, it almost makes you feel proud to be part of it by owning an IWC. IWC rightly sees that by expanding their own identity, the customer will follow and will identify with the way of life IWC stands for. I guess that’s clever marketing and an interesting way to show what you, as a company, stand for.

And let’s not forget: IWC also recognizes that life is more than fun and luxury. To me it’s very important to see how IWC also helps those who are in need. That’s part of my identity too and I’m glad that the watch company I warmly admire shows it’s generosity by contributing to foundations that help people and children who daily have to struggle for a life worth living.

Regards
Norbert