``The strategy now will be to increase penetration by opening more POS in the cities where we are already present,'' Mr Julian Gould, vice-president, sales-international, Swatch AG told The Financial Express.

So while the distribution focus will remain on the 18 cities it is present in already, Swatch plans to gradually increase penetration by adding 50 to 70 outlets in these cities in the next two years. Besides opening exclusive outlets or `Swatch Stores' or kiosks in the next two years, Swatch also plans to penetrate Urban India through multibrand outlets which have synergy with the brand such as sports stores, bookshops or hi-tech toy shops. Swatch has already opened a kiosk at the premium mall Crossroads in Mumbai and at Ansal's Plaza in New Delhi.

Hence, according to Mr Gould, the core of the Swatch India strategy would be to build and highlight `differentiators' at all points of contact, while targeting a wide cross-section of trend-conscious Indian consumers. By adopting this route, Swatch aims to build a credible and `aspirational' brand image and try to offer an international brand experience. The next pillar in Swatch' strategy would be its communication package. To begin with, Swatch India will launch its international brand campaign on TV, while the print campaign has already been launched by modifying certain frames with Indian influence. ``The distribution focus has to walk hand in hand with the brand campaign,'' Mr Gould said. To support the campaign, Swatch will also initiate a host of innovative ground promotions. According to Mr Gould, the brand is already associated with a host of `happening and sporty events' such as Smirnoff Fashion Awards; Bacardi Friends party and water rafting. To further reinforce its youth positioning, Swatch plansto co-sponsor a personality-contest, a new programme in the making for MTV. In addition, it plans to associate the brand with some of the happening youth festivals in the country such as Rendezvous and Oasis.

Interestingly, Swatch which entered the Indian market last year in January through the Bollywood route-the brand was promoted in the Shah Rukh Khan-Juhi Chawla production Phir Bhi Dil Hai Hindustani-it plans to use the same medium to promote its product in a cost effective manner. As part of its global practice, it plans to distribute about 50-60 Swatch top end models to some of the big directors/banners of the Bollywood who can then either use the watches as product placements in their movies or just circulate them among the stars. ``Product placements cannot be ignored but right now we need to develop the basics, first.''

The company has committed an investment of SFr 10 million ($7 million) in India till the year 2002 of which one-third has been spent so far. The company expects a return on investment after a period of three years. Swatch is part of the SFr 3.78 billion Swatch Group, along with other 15 watch brands including Breguet, Blancpain, Omega Longines, Rado, Tissot, and Calvin Klein.

It's time has finally come. Swatch, is launching one of its famous watch brands-Calvin Klein-in India. The company makes the Calvin Klein watches and cK Watches collection in co-operation with the American fashion designer Calvin Klein. The launch is due on February 14, and the new range of watches will be priced between Rs 4,500 and Rs 16,000.

This will be followed by the launch of Flik Flak-the Swatch Group's watch brand for children-in March 2001. Flik Flak, incidentally, has now come under the fold of Swatch brand and will therefore bear the brandname as `Flik Flak by Swatch'. Though the company is going in for a soft launch, Flik Flak will be supported with an ad campaign and below the line activities. The watch will be positioned on the `education' plank and will be priced in Rs 700 to Rs 1,000 range.

Titan is currently the only company in the country to have targeted the children's segment with its brand Dash. Swatch, apparently, has test marketed its children range in a tie-up with UNICEF and is believed to have received an encouraging response.