Project 1 Brand Extension

  Exercise 1: 

Brand - X = Fossil

Brand - Y = Tech  accessories

1.What is the history of the company?

Fossil Group, Inc., is an American fashion designer and manufacturer founded in 1984 by Tom Kartsotis and based in Richardson, Texas Their brands include Fossil, Relic, Michele Watch, Skagen Denmark, Misfit, WSI, and Zodiac Watches. Fossil also makes licensed accessories for brands such as BMW, Puma, Emporio Armani, Michael Kors, DKNY, Diesel, Kate Spade New York, Tory Burch, Chaps, and Armani Exchange.

References: https://www.fossilgroup.com/brands/

2.What are the products of Fossil?

Fossil's products are watches, wallets, jewelry, perfume, leather products.

References: https://fossilmy.com

3.Who are the other competitors?

Fossil competitors include Tophatter, Seiko and Misfit.

Reference: https://www.comparably.com/companies/fossil/competitors

4.What problem do they face?

Despite being a well-known brand and has been doing well during around 3 decades, Fossil   is   facing   several   serious   trouble   recent   years.   First,   the   sale   of   traditional watches   reduced,   both   by   intention   of   Fossil   to   lower   the   number   of   traditional watches to be replaced by hybrid and smartwatches, and  because   the   decrease   in demand by customers. 

References: https://www.researchgate.net/publication/353945865_Internationalization_Strategy_of_Fossil_Watch_and_Accessories

5.What is the target market of the company?

The target market of Fossil Group are men and women in young age group from upper-middle and upper class

References: https://www.mbaskool.com/brandguide/lifestyle-and-retail/3012-fossil.html

6.Why are people attracted to buy from the company?

Fossil has economic success with its own brands and this success has led to several licensed watch  lines  deals. Fossil  worked with designer Philippe Starck  in 2001 tod evelop the collection of Starck and Fossil watch. The collection features state-of-the-art designs and distinctive motion. Fossil designs, manufactures and distributes other certified   watch   brands   including   Burberry,   DKNY

References: https://www.researchgate.net/publication/353945865_Internationalization_Strategy_of_Fossil_Watch_and_Accessories

7.Why consumer motivations choosing Fossil Groups over the other brand?

Leading brands tap into customer feedback for product innovation, but Fossil Group takes it a step further. By engaging with current and prospective customers, they’re able to identify trends and opportunities ahead of their competition. 

References: https://www.alida.com/resources/staying-ahead-of-the-market-how-fossil-group-uses-customer-insights-to-empower-innovative-business-decisions

8.What does the customer need?

Kim Glasscock, IT Solution Manager – Retail at Fossil Group, Inc., explains: “Retail is going through major changes, and much of that change is the result of rising consumer expectations. Increasingly, our customers want to move between channels as they browse, buy, return and exchange items. They also expect to receive their orders in a way that’s convenient for them: whether via a home delivery or a collection from their local store.” 

References: https://www.ibm.com/case-studies/fossil-oms-omni-channel

9.What are the opinion of customers of Dutch Lady's products?

In conclusion, the customers are hoping for a better service from Fossil Group.

10.What is the expectations of Fossil Group?

The Company is updating its guidance for full year 2022 to reflect a more cautious outlook on global markets, including a slowdown in consumer spending in our categories, the likelihood of ongoing COVID-19 related restrictions in mainland China, and the estimated impact of prevailing foreign currency translation.   

For fiscal year 2022, the Company now expects worldwide net sales declines of approximately 8% to 4% versus prior guidance of net sales growth of flat to 3%.   This updated guidance includes an estimated foreign currency negative impact of 450 basis points, which compares to our prior estimate of 350 basis points for the full year.  

References: 

https://www.globenewswire.com/en/news-release/2022/08/10/2496201/7982/en/Fossil-Group-Inc-Reports-Second-Quarter-2022-Financial-Results.html

Despite being a well-known brand and has been doing well during around 3 decades,

Fossil is facing several serious trouble recent years. First, the sale of traditional

watches reduced, both by intention of Fossil to lower the number of traditional

watches to be replaced by hybrid and smartwatches, and because the decrease in

demand by customers. The segment has split into two very distinct smaller niches. On

one side, you have the traditional watch segment that serves customers who like style

over technological convenience. On the other hand, you have those who enjoy the

technical aspect of watches and their astonishingly factor. However, in the latter fields,

the competition is relatively fierce. Fossil, is competing with tech giant like Apple and

Samsung, who always try to monopolize the market as much as possible.

Despite being a well-known brand and has been doing well during around 3 decades,

Fossil is facing several serious trouble recent years. First, the sale of traditional

watches reduced, both by intention of Fossil to lower the number of traditional

watches to be replaced by hybrid and smartwatches, and because the decrease in

demand by customers. The segment has split into two very distinct smaller niches. On

one side, you have the traditional watch segment that serves customers who like style

over technological convenience. On the other hand, you have those who enjoy the

technical aspect of watches and their astonishingly factor. However, in the latter fields,

the competition is relatively fierce. Fossil, is competing with tech giant like Apple and

Samsung, who always try to monopolize the market as much as possible.