Waterford Wedgwood Crystal Company

Résumé du document

Waterford Wedgwood Crystal Company is the leader in luxury crystal and ceramics, represented in more than 80 countries worldwide. It produces handcrafted crystal, lamps, giftware and tableware and has the largest variety of products in the market. It is also well-known for manufacturing trophies and designing the Waterford Crystal New Year's Eve Ball at Times Square in New York. Today, Waterford Crystal is being sold in 90 countries. As with other international companies, the internationalization of Waterford stems from the recognition of a need to reduce the dependency on a single market and to mitigate the currency exposure risk of the group, with the ultimate objective of enhancing long-term sales growth and profits. Before its move into Asia, Waterford's key markets only comprised of Ireland and the United States.

Extraits

[...] ii) Distribution via sister company Wedgwood (Waterford-Wedgwood) Through the distribution of Waterford via Wedgwood, Waterford is able to leverage the strength of Wedgwood's retailer relationships and local experience. This opportunity plays a vital role in helping Waterford gain access to distribution channels in new markets, especially in Japan. One of the challenges faced by Waterford in entering Japan's retail scene was the preference given by Japan's retailers to established brands with strong visible presence in stores. At the same time, the tough economic climate then caused retailers to reduce the shelf space given to tabletop items. [...]

[...] By David Kilburn) Waterford and Japan In the Japanese market, there is a low awareness of crystal products. However, the growth in wine consumption has benefited crystal products where it is now in higher demand especially among the upper-class Japanese. The appeal towards this segment of consumers fits strategically with Waterford's positioning in the premium segment as they are able to afford the higher price of Waterford's crystal. The significance attached to giving presents in Japan is also befitting to Waterford's positioning strategy. [...]

[...] Wedgwood has been imported to Japan since 1810. Today, Wedgwood has achieved significant success being a leading brand in the Japanese market with a large range of tableware products sold in 60 concessions in department stores. Development of a consumer brand If Waterford had entered into the Japanese market as an independent consumer brand, it would require the Irish crystal maker to invest a significant amount of financial resources and effort in establishing its own distribution channel and to gain customer awareness. [...]

[...] For Waterford, the company has done modifications to their products' sizes, packaging or promotions. For example, the brand carried elements of green in Japan to promote the Irish craftsmanship to Japanese consumers. Furthermore, to standardize the quality of their products across international operations, Waterford has sent artisans from its factories to Japan and other countries to show how they cut and engrave the crystal. An overview of the japanese market As one of the greatest economic powers in the world, Japan presents itself as a market with lucrative opportunities. [...]

[...] In the perspective of brand image, Waterford and Wedgwood positioning served to complement each other as high quality and prestigious brands. Waterford was able to build up its presence and brand strength through positive association with Wedgwood's established brand position in Japan, which is of importance due to Waterford Glass's weak image in Japan. Subsequently, this puts Waterford in a better position to develop its brand as an independent consumer brand after establishing a positive presence in Japan's market. With the alignment of their brand positioning, both brands are looking at similar distribution channels - a strategic fit for Waterford in gaining access to high-end retail shops through Wedgwood. [...]