IKEA/ SWATCH

Expected response minimum is 100 words.•    You have a choice of addressing one of two issues:Choice 1:SWATCH initially elect to price all products at $40 over a multiple year period? SWATCH could have priced at an average of $40, with a range of $35 to $45, but it chose not to. All watches, regardless of the SWATCH model, were $40. Why did SWATCH price their product this way?Choice 2:Breakaway positioning occurs when a firm markets product X as if it were product Y. They leverage product associations from one product category into another. They get consumers to conceive, purchase, and consume the product in a totally different way. In the case of SWATCH, the firm borrowed associations from the fashion industry and marketed the product as a fashion product; not as jewelry (expensive Swiss watches), not as a tool (inexpensive watches), and not as cheap jewelry. Discuss at least two other examples of breakaway positioning.2The attributes discussed in the second forum question drive IKEA’s overall position in the marketplace. Characterize IKEA’s overall position in the marketplace relative to competitors. What is IKEA’s positioning strategy? In addition, is IKEA’s message of “furniture is not forever” consistent with the overall positioning strategy you have identified and with the IKEA’s vision statement (case Figure C).