ACTIVITY 4.1.2

THE CLASSIC WATCH COMPANY

The Classic Watch Company was in trouble. Sales had fallen for each of the last three

years. The founder of the company, Harry Brainch, could not understand the reasons for this. His business had been making the Classic Ladies' wristwatch for the last 20 years. The current model had been updated

but was still essentially the same design as the original watch. Consumers had been attracted to its simple, robust design and good value. These were very important qualities during the economic crisis that the country had suffered from for much of the last few years. More recently, consumer incomes had started to

rise. Old manufacturing industry had been replaced by service sector businesses that offered many supervisory and managerial jobs. Youth unemployment, in particular, had fallen and young consumers had much more money to spend than previously. Both men and women were becoming much more fashion

conscious as their consumer tastes changed with higher incomes. Harry knew his business had to change and become more market-oriented in its approach. His problem was not knowing which new styles of watches to introduce. He almost wished a return to the good old days when shoppers were happy to buy a

recognized design at a reasonable price.

1. Define the term 'market-oriented'. (2)

2. Outline why the Classic Watch Company seems to have a product-oriented

approach to marketing. [4]

3. Explain two problems the Classic Watch Company faces by using a product oriented

approach to marketing. [4)

4. Analyse two changes the Classic Watch Company would need to make to become a market-oriented business. (4)