Watches and clocks have always occupied a prominent place in the market for premiums, incentives, and business gifts. This article looks at some of the questions and issues you might have about using timepieces in your program.

OVERVIEW

From consumer promotion to employee retention, the ways companies use watches and timepieces for motivation programs are as varied as the types of products available. From the mass-market logoed wristwatches used extensively in consumer promotions to high-end luxury brands, watches and timepieces are a vital part of the incentive scene.

“Watches have universal appeal,” says James Keenan, senior vice president, special markets for Citizen Watch Company of America Inc. “Women like watches because they not only have the function of telling time, but they are also jewelry. And for men, it's one of the few pieces of jewelry that most men will wear. Watches are something that people wear day after day, year in and year out. Many watch companies, like Citizen, have a name brand that's nationally recognized and shows real value. Timepieces are a mainstay of the incentive industry, and it enhances the luster of any incentive program to have timepieces in them.”

Today, the wide variety of price points and customization opportunities make clocks and watches ideal for a range of premium, gift and incentive programs. In fact, giving timepieces as gifts has gained momentum over the past couple of years in the incentive and premium industry.

CONSUMER TRENDS

As incentive programs evolve, so too are the types of watches attracting attention from program participants. Battery-powered watches are falling out of favor, with both high-tech and low-tech power options taking their place. “We're seeing a lot of interest in watches that offer automatic movement,” Zanone says. These watches use a flywheel instead of a battery, moving as the body moves to generate winding. “That takes us back to the roots of Swiss watchmaking,” Zanone adds, noting that Movado is introducing automatic movement to many of its top brands, from Tommy Hilfiger through Ebel, which is at the top of its line.

Citizen is eliminating the need for batteries with its new Eco-Drive, a light-powered technology that the company is using in its Calibre 8561 collection. Powered by ambient light, rather than solar power, the watches work night and day, indoors and out. In addition, says Keenan, Eco-Drive dials are translucent, so they can be made in virtually any color and that opens up additional customization options for customers. On the mass-market side, which caters primarily to consumer promotions offering logoed timepieces, the traditional look still endures. “The classic leather-strapped gold watch tends to be popular,” says Peter Bianchi of Timex. “The digital Iron Man Triathlon watches are also popular in the sports line. It's all very basic. People don't like a lot of bells and whistles on these products.”

PROS AND CONS OF CLOCKS AND WATCHES

Timepieces have tremendous, lasting trophy value. And who can question the lifelong satisfaction in owning an heirloom-quality watch or clock? Timepieces are one of the few products that ensure that the recipient will remember you several times a day. Because of the variety of sizes and styles, they are good candidates for themed programs and promotions.

If there's a negative to timepieces, it is that, despite their inherent trophy value, people simply don't anticipate owning one with the same excitement they would, say, a jumbo TVs or exotic vacations (not likely you'll see a watch as the grand prize in a sweepstakes). Thus in planning your program, it's a good idea to provide a broad mix of merchandise and, when giving a timepiece as a gift or stand-alone award, make sure you match the item to the recipient.

PERFECT TIMING FOR RETENTION EFFORTS

On the other hand, the timepiece's history as a recognition and employee service award also gives it a special appeal for companies that are looking to improve their employee retention. According to Joe Zanone of Movado, “Top performing companies are the ones who seem best able to retain their talent pools, and a lot of that is through the use of premiums and incentives,” he says.

Zanone notes the growing role of timepieces and incentives generally in retention efforts is evident in recent shifts in service award programs. “We're seeing the very special gift-the $1,500 and $2,000 price points and upward-at 10 years of service, where it used to be at 25 years, 30 years, or even at retirement. But we're seeing a boost in the higher price points now at 10 years, 15 years, and certainly at 20 years.”

CUSTOMIZING DO'S AND DON'TS

On the low end of the range of timepiece price points, the question of whether or not to logo is not even an issue. “The majority of my business is logos,” says Bianchi, “for premiums, sales events and things like that.”

Move up in the price point range, however, and the question of whether or not to use a logo becomes more important-even controversial. Zanone feels strongly that companies make a mistake when they put a logo on the face of a higher-end watch. “We won't do it on a Movado Museum Classic dial,” he says, “and we hear frequently from people in the field that they won't wear these watches. They say, 'It's enough that I'm wearing my company's golf shirt, and my company's jacket, and my company's lapel pin; I don't need a logo on my timepiece too.'”

While Keenan says Citizen would be willing to logo any watch in its line, he notes that the value of the watch and the type of program might have some bearing on whether or not it is logoed. Additionally, some pieces, like the company's Blue Angel watch, have so much on the face that there's no room for a logo. One good option is to put the logo or message on the back, Zanone says, especially when a watch costs above $100 or $200. “Case-back engraving creates so much goodwill,” he says. “The employee receiving the gift values the watch for the watch itself, and values his company more because it took the effort to put the message on the back.” If a logo is going to motivate a program participant to leave the watch at home in a drawer, then you haven't really accomplished the goals of your program, he suggests.

OTHER CRITICAL ISSUES

• Price points. Timepieces can run the gamut from one-dollar, mass-produced premiums to crystal desk clocks that cost $500 and up to very high-end timepieces going for $10,000 or more. Recent years have produced a lot of high-quality, brand-name watches in the $50-$200 range, many of which are particularly sought-after by younger consumers (just look at the trendy advertising). There are also incredibly popular licensed products (see below). In terms of numbers, the vast majority of clocks sell in the under-$25 category. Ever-handy items like travel alarm clocks go for as little as $10.
  
  
• Licensed products. Some hot items in the product mix include timepieces bearing licensed images and characters. Teams from every major sport are represented on clocks and watches, as are popular cartoon characters and other cultural icons (the Harley-Davidson logo has enduring appeal). Watches have been used successfully with consumer promotions as well. By incorporating such items in your programs, you can achieve great trophy value and capitalize on myriad theming possibilities. Warning: Using licensed characters usually requires a strict approval process, so plan your program carefully.
  
  
• Sizing. According to Movado's Zanone, more and more corporate clients are opting for a leather band over a bracelet when offering a watch, in order to avoid concerns about stocking different sizes.

CASE HISTORIES

The following cases illustrate some of the ways that clocks and watches can be used effectively in incentive programs:

• Theming. A major manufacturer of car batteries used National Hockey League competition as the theme for a nationwide consumer incentive program handled by dealers. Top award was a clock in the form of a hockey helmet.
  
  
• Trophy value. To boost sales of one of its product lines, a manufacturer of computer hardware presented a $70 Hamilton desk clock to some 5,000 customers who bought the product. Since the manufacturer and Hamilton's parent company, SMH (U.S.), were Olympic sponsors, both the Olympic logo and the manufacturer's were inscribed on a brass disc inside the clock.
  
  
• Design stature. A top design firm is giving $1,500 Rado watches to its most creatively successful employees.
  
  
• Demographic appeal. A major cosmetics company, rolling out an image overhaul, included 2,800 Movado watches in the uniform for its behind-the-counter sales force.

TIMEPIECES ARE TIMELESS

According to the Incentive Federation survey, watches and clocks have always ranked in the top 10 in popularity among merchandise incentive users for all types of programs, but most significantly for sales incentives, where 36 percent of companies say they would be likely to use them, and for non-sales employee awards, 40 percent. That's not likely to change anytime soon.

With their enduring popularity and functionality, with changing fashions and technology and with price points ranging from $25, as with Timex, to $70,000-$80,000 and up, for Movado, there's likely to be a watch available and suited to any type of program.

The appeal of timepieces is pretty much across the board, says Timex's Bianchi. “The only people who stay away from them are the casinos,” he adds. “They don't want people to know what time it is.”

FINDING A SUPPLIER

Many major clock and watch manufacturers have special-markets divisions that are well versed in the premium/incentive business and can provide helpful information on how to use their products effectively.

Tips: If you want to have a watch or clock customized, deal with a premium or manufacturers rep in the U.S. Buying overseas can entail problems in scheduling and quality control. If you're looking for an elegant business gift, check with the better specialty and department stores in your area. They often offer the best deals on customizing small quantities. The following sources also provide excellent ways to find suppliers:

Incentive magazine's annual directory includes many timepiece suppliers. $10. Call 212-592-6263.
Potentials magazine's annual Buyer's Guide (December issue) includes many timepiece companies. $24. Call 612-333-0471 or 800-707-7749.
Promo magazine's Sourcebook lists agencies and a variety of other resources. $49.95. Call 866-505-7173.
The Motivation Show Directory provides the most comprehensive listing of premium and incentive suppliers. Free to attendees, otherwise $30. Call 630-850-7779.
The Premium Incentive Show Directory has many merchandise sources. Free to attendees; otherwise, $50. Call 800-765-7615.

ASSOCIATIONS

• Promotional Products Association International (PPAI) is the first association you should call for information on suppliers of timepieces geared to the premium/incentive market. Call 972-252-0404 or go to http://www.ppai.org.
  
  
• The Incentive Federation was formed to protect the right of organizations to motivate customers and employees through the intelligent and ethical use of incentive programs. Comprising leading associations, trade shows and some of the top suppliers in the incentive field, the Federation monitors federal regulations that could affect the proper use of incentive programs and lobbies against proposals that could hinder the ability of businesses to properly use incentive programs. As part of its industry services, the Federation also conducts the only regular research on use of incentives by U.S. organizations and manages the Incentive Promotion Campaign, the industry-wide effort to promote professional use of incentives and that underwrote this Web site. For information, call 908-233-4009, e-mail mailto:hhenry333@aol.com or go to http://www.incentivecentral.org.
  
  
• Incentive Marketing Association (IMA) has a directory of suppliers and a newsletter. It can direct companies to legal counsel with experience in incentive programs. It also holds education programs in conjunction with the two major trade shows in the field. Call 630-369-7786 or go to
  http://www.incentivemarketing.org.
  
  
• Association of Retail Marketing Services (ARMS) iis primarily geared to companies that supply and use merchandise in retail marketing programs. It conducts annual research on retail marketing and has an annual trade show of retail marketing suppliers, along with a newsletter that tracks promotions and legal developments. Call 732-842-5070 or go to http://www.goarms.com.
  
  
• Incentive Manufacturers Representatives Association (IMRA) represents factory-direct salespeople in the incentive business. Publishes case histories of its Gold Key Award winners. Call 703-610-9021 or go to http://www.imra1.org.
  
  
• Promotion Marketing Association (PMA) offers seminars and other educational programs for people involved with sales incentives, premium merchandise and other types of promotion. Call 212-420-1100 or go to http://www.pmalink.org.