A MARKET STUDY ON WRIST WATCHES AMONG CUSTOMERS
WITH REFERENCE TO TITAN WATCHES
By
THOMACHAN BABU (Reg. No. 35103315)
A PROJECT REPORT
Submitted to the Department of
MASTER OF BUSINESS ADMINISTRATION in the FACULTY OF ENGINEERING & TECHNOLOGY
in partial fulfillment of the requirement for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
IN
SCHOOL OF MANAGEMENT
S.R.M. ENGINEERING COLLEGE S.R.M. INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED UNIVERSITY)
MAY 2005
BONAFIED CERTIFICATE
Certified that this project report titled “A MARKET STUDY ON WRIST WATCHES
AMONG CUSTOMERS WITH REFERENCE TO TIAN WATCHES” is the
bonafide work of THOMACHAN BAU (Reg. No. 35103315) who carried out the
research under my supervision. Cerfified furher, that to the best of my knowledge the work
report herein does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any other
candidate.
Signature of Internal Guide Signature of HOD
M.U. Subrahmanian Dr. Jayashree Suresh
Signature of External Guide:
Name of External Guide:
ACKNOWLEDGEMENT
I wish to express my profound gratitude to Mr. B. Santhosh Jayakrishnan, Area
Sales Manager of Titan Watches, Ernakulam, for allowing me to conduct this study in his
esteemed organization and for his timely and valuable assistance during the period of my
study.
I gratefully acknowledge the help and guidance rendered by Mrs. Jayasree Suresh
(Deen) (HOD) MBA, Dept. SRM School of Management Studies, Chennai.
I am indebted to Mr. M.U. Subrahmanian, MBA faculty guide for his profound
interest, guidance and encouragement in conducting this study.
I sincerely acknowledge the help extended by my internal guide Mr. Sony Santy for
his valuable help and guidance in the beginning of the project.
My sincere thanks also due to the respondents of the survey who have co-operated
in the study by providing valuable information.
I would like to thank all those who have extended their valuable time and co-
operation directly or indirectly to enable me to submit this project report in time.
Above all I am grateful to God Almighty for his consideration and help given to
me.
CONTENTS
Ch. No.
Title Page No.
1
Acknowledgement
List of Tables
Declaration
Executive Summary
1. Introduction of the study 1
1.1 Industry Profile 2
1.2. Objectives 3
1.3. Scope of the study 4
1.4. Limitations 5
2. Research Methodology 6
3. Review of Literature 10
4. Company Profile 32
5. Analysis and Interpretation 35
6. Findings of the Study 48
7. Suggestions 51
8. Conclusion 53
9. Bibliograpy 54
10 Appendix 55
LIST OF TABLES
Sl. No. Title Page No.
1. Age of the respondents 36
2. Education of the respondents 38
3. Mothly income of the respondents 39
4. Chi-Square Table 40
5. No. of watches owned by the respondents 41
6. Familiar brands of watches 42
7. Currently using brand of watches 43
8. Type of material used by the Respondents 44
9. Occasion of buying Watches 46
10. Factors Influencing Purchase 47
DECLARATION
I THOMACHAN BABU, here by declare that this project report titled “Market
Survey of Wrist Watches” is an orginal work of mine and I completed my work under the
guidence of Mr. P. Subramanyam, faculty member SRM School of Management Studies,
SRM Deemed University, Chennai.
The impirical findings in this report are based on the data collected by myself and it has not
formed on the basis of any other report.
Executive Summary
The study was done for Titan Watches, Ernakulam. Today Titan is the market
leader of watch industry in India. The project was undertaken to study the market analysis
of Titan Watches and it’s co brand Sonata, in the Kottayam district of Kerala through
customer survey. It includes market share analysis of a Titan Watches, and brand
awareness and brand preference. A dealer survey was also conducted for studying the
competition in watch market.
For the study of above topic a sample survey has been conducted at the Kottayam
district. The questionnaire for customers containing 8 relevant questions. The customers
were aimed at understanding of their perceptions and how much aware about Titan &
Sonata.
It also analysis the purchase decision and brand awareness of various top brand
watches.
The survey has revealed certain facts are accessed appropriate recommendations
are made based on the study.
Chapter 1
INTRODUCTION
Industry Profile
History
Time, the Fourth Dimension poundly influences all aspects of life. People are
constantly aware of the passing of time in their daily activities. Without the ability to
synchronize comings and goings at school and work, complex societies would simply be
unable to funcion. Until a few hundred years go there was no way to tell time more
accurately than the nearest hour. The introduction of accurate timepieces played a major
part in the development of modern civilization.
Watches and clocks are the most common devices for measuring time. The first
portable timekeeper, the watch was developed shortly after 1500. With recent advances in
automation and electronics, modern watches and clocks have become less expensive and
more accurate.
Watches were developed rather than clocks. The first portable timekeeper or
watch was produced during the Renaissance. Earlier there were mechanical watches.
Althrough mechanical watches are still manufactured in large quantities, they are
increasingly being supplanted by electronic and electrical time keeper. These newer devises
are cheaper easier to manufacture, and considerably more accurate.
Introduced in 1953, the funing fork watch was the first commercially successful
electronic watch. Instead of a mechanical, it had a battery-driven funing fork.
Objectives of the study
General Objective
To find the Market Share of Titan & Sonata in the Kottayam district of Kerala
state.
Specific Objectives
To find out how the users rate the different features of watches.
To find whether continuous user of Titan.
To find the factors which consider before buying wrist watch.
To find the competitive level of top brands.
To find the fastest moving price range.
Scope of the Study
The research study entitled “Market Survey of wrist watches” will help to
understand the awareness level of Titan watches among respondents. It also help to
understand the buying influences, Brand preference and Brand Switching. The research
findings of the study will help the Titan Watch Industries Ltd. to frame certain strategies to
improve their products.
Limitations of the Study
The study was conducted only in one district of Kerala and the same may not be
representative of the entire state.
There were time and cost constraints.
The sample method adopted was convenience sampling and it has all the limitations of it.
Another limitation of the study was sample size. It may not be the exact
representation of the total population.
Chapter 2
RESEARCH METHODOLOGY
Research Methodology
Research methodology is the backbone of the project work. It means the way one
researcher selects his sample and sample size, methods of data collection, various tools
used for studying problem with certain objectives and objectives in view.
Research Design
The study is descriptive in nature. Design research studies are those which are
concerned with describing the characteristics of a particular individual.
Non-probability sampling has been used in this study. Under this non probability
as ling convenience sampling was chosen. The study was conducted on the basis of a
survey carried out in Kottayam district of Kerala State. The data of the survey was collected
through an administratively structured questionnaire. The collected data was latter analysed
and interpreted. Based on the findingds some recommendations have been made.
Data
Data was unprocessed information which one researcher collects through the
survey. It is the basic factor, which gives the information about the problem or subject
under study. Data are two-type primary and secondary.
Nature
This project work purely relies on primary data to study the objectives. The
primary data was collected through a structured undisguised questionnaire containing. A
survey conducted for gathering data from the respondents through questionnaire.
The questionnaire was prepared based on the objectives set. The questions were
structured and direct so as to make the respondents understand easily. It is framed in such
a manner that respondent take around five minutes to give their responses. It’s the first
hand information.
The secondary data were collected from:
Journals and company brochures
Industry surveys
Business magazines
Internet
Source
Consumers and watch dealers.
Research approach
It includes surveys, fact-findings and enquiry’s of different kinds. Its major
purpose is the description of the state of affairs as if it exists at present.
Research Process
Direct survey of watch consumers and dealers.
Instrument (Tool of data collection)
Administratively structured questionnaire. The questionnaire orginally prepared
was modified with help of sales executives and Area Sales Manager Ernakulam.
Contacting Method
Consumers and watch dealers-direct contact in person and face to face interview.
Population
Watch consumers in the Kottayam district of Kerala.
Sample Unit
Constomers from Kottayam district of Kerala State.
Sample Size
The sample size is 250 customers selected from Kottayam district of Kerala State.
Sample Technique
Convenient Sampling.
Population elements are selected for inclusion in the sample based on the case of
access, it can be called convenience sampling.
Pre-testing
A pilot survey among 15 respondents was conducted to find our the reliability and
validity of the questionnaire. Based on the responses structured questionnaire was framed.
Essential modification was made to the questionnaire easily understood.
Field work
Questionnaire was used for conducting the fieldwork. The field work helped to
collect lot of information. The fieldwork was conducted in Kottayam district of Kerala
State.
Chapter 3
REVIEW OF LITERATURE
Review of Literature
Since the beginning of time, the passing of the hours has ruled and shaped the
everyday activities of man. Productivity and even quality of life is measured by how fast
one can work, walk, talk, and even how much of activity one can cram into a given time
period. Time is precious commodity. To measure this commodity, man has used various
instruments across the years.
The earliest humans used the position of the sun in the sky to approximate the
time of day. Even today in remote parts of the world and with people, who do not have
access to clocks or watches, time is told by how far the sun is in the sky or where the
shadows are falling on the monutains. Since then, man has throught up numbers ways of
telling time. The most inventive and earliest of which were the Egyptian sundial, the Greek
warerclock and the Sung Dynasty’s burning of candles and incennse. All these culminated
with the invention of the mechanical clock. The importance of keepting time allowed
innovation to proceed at stedy pace and certain world events further facilitated
advancement in the science of time keeping. For example, practically led to the evolution
of the clock into the poclket watch and the invention of the first wristwatch by Patek Philip
in 1868. The advent of the World War led to the wide spread manufacture and use of
wristwatches. Today the most common and practical way of keeping time is the wristwatch.
With its evolution, the use of the watch has been combined with other purposes such as
measuring altitude, depth, temperature, dates, and days, to name few. In addition, the
watch is also uded as an object to vanity and as a status symbol. The type of watch (brand
name or style) that he is wearing can tell the social status of a person. People also collect
watches as objects of precision and beauty, and some watches increase in value over the
years. Some of the most popular brands of watches to day range from those that are know
for their precision and reliability to those which are more known for their aesthetic beauty
and brand names. In recent times, these two characteristics have been merged in many
cases since they support each other. Collectors value their items of interest according to the
various specialization and features of different watch making companies. While the
Germans made the first watches in the early 1500s the skills spread to neighboring
countries. France and England dominated the watch industry initially, only to be overtaken
by the Swiss throught their persistence in the industry as well as various political, social
and technological developments in Europe. Today Swiss-made watches are the most
famous brands in the world and the term “Swiss made” is synonymous with high quality.
Along the way Japan caught up with the industry and Hong Kong is now one of the major
contenders in the export marker, right behind the Swiss. Overall, the most famous
countries, which have played a big role in the history of watches, are Switzerland, France,
England, Germany, Japan and the US. Some of the most well known brands today are
Omega, Rolex, Patek Philip, Tissot, Tag Heuer, Timex, Swatch and Seiko. There are many
more watches, which have become famous through the use of brand names such as fossil
and Gucci.
This looks at the global value chains, industry structure, critical tecnologies and
political determinants and social and emvironmental factors affecting the watch industry to
date. It analyzes the main factors driving the watch industry and offers some strategies for
watch frims to compete in this fast paced industry.
THE WATCH INDUSTRY
The story of the watch in India goes back a long way to 1957. Pandit Jawaharlal
Nehru, during his visit to Japan, received a watch as a gift inspiring him to bring watches
closer home in his country. This dream became a reality in 1961 when the first watch
factory was commissioned in India by Nehru in 1961. This was the watch division of HMT
Ltd.
Citizen, the popular Japanese manufacturer, evinced interest to train select Indian
people at their watch manufacturing plant in Japan. The year 1962 saw the manufacture of
the first component and then began the slow but steady growth of watch manufacture in
the country. The first watch model manufactured by HMT was the Janata model, which
exists even today, was gifted by Pandit Nehru to the senior most employee of the
company. The next 10 years saw the Indian-made watches carve a niche for themselves in
the market. 15000 to 20000 mechanical watches were made every month.
Smuggling was on a rise during the 1970s and the 80s period. The counter this the
watch manufacturing activities were beefed up. An assembly plant was set up and the
concept of a mother plant with other units in vaious states was pioneered.
The early 80s were a period of technological revolution with drastic changes in
tastes and preferences. The integrated chip was invented in the US and digitals were in
demand and LED watches flooded the market. Japanese companies took over the
manufacturing of LCD for digital watches. Quartz technology had picked up and there
was a shift in focus from mechanical to quartz watches.
1987 saw the establishment of Titan watches, which was formed by the Tatas and
TIDCO (Tamil Nadu Industrial Development Corporation). The Tatas took two decisions
- that they will manufacture only quartz (analog and digital) and not mechanicals, and they
would set up a state of the art plant to manufacture watches in a wide variety of designs
and prices.
Today the Indian market requirement for watches is well over 20 million watches
per year. Majority of the demand is generated by the sub-Rs.1000 segment. Liberalization
has brought with it a host of brands for the Indian market, viz. Piguet, Cartier, Christian
Dior, Omega, Raymond Weil, Rolex and Tissot. Indian companies are now among the few
set-ups in the world those are capable of manufacturing and integrating all parts of a watch.
The industry growth rate is close to 8%. With the penetration level of 20 pieces per 1000,
the Indian market presents an ocean of opportunity and potential for watchmarkers. The
new exim policy announced on 31st March 1999 removed all quantitative restrictions on
the import of fully assembled watches - a full three years ahead of commitment made to
the WTO. This will lead to significant upheavals in the watch industry and the trade. Most
affected will be the watch makers with significant idle capacity, small or weak brands and
host of component suppliers to them. Least affected will be the players whose sales exceed
manufacturing capacity and who have both strong brands and strong distribution.
Elements of Industry Structure
Let us analyse the industry structure in the 1980s when Tatas decided to make a
foray in the watch market. We use Michael Porters 5 forces model to cary out the industry
analysis.
Industry Structure: The industry consisted of the organized segment which was
dominated by HMT, and the unorganized segment consisting of small time local players
and the gray market. HMT, the timekeepers to the nation, manufactured only mechanical
watches. The HMT watches fulfilled only the functional needs of a watch. Small time
players lacked the nation wide reach that HMT had. They also did not have reliable support
network. The gray market was flooded with quartz and digital watches from Japan. Though
the gray market did not have the support network their sturdy performance and their looks
made the Japanese watches very attractive purchases.
Buyers: The penetration of watches within India was low, therefore there was a huge
untapped market. The buyers wanted watches that offered more than just the functional
benefit. There was also a latent demand for quartz analog and digitasl wathes that HMT
was unable to fulfill as it manufactured only mechanical watches. The brisk sales of
imported watches in the gray market hinted that there was a segment of people who were
willing to pay a premium for watches with good design and performance.
Suppliers: HMT had fully integrated operation for mechanical watches. There was no
concept of having vendors in the watch industry. Since the supplier’s role in this industry
was very limited they did not have strong bargaining power.
Substitutes: The quartz technology had become popular all over the world. Quartz
watches from Japan had already beaten the Swiss in their own game in the sixties and the
seventies. The Swiss had refused to embrance the new quartz technology and they had
suffered because of their adherence to mechanical watches. HMT was making the same
mistake in India. Since the imports were not freely permitted, there was no immediate
possibility of some company entering into the watch market by assembling imported parts
(assembly of completely knocked down kits).
New entrants: The demand for watches in the gray market indicated that there was space
in the market for a new entrant who would provide watches with good design and reliable
performance. The new entrant could score over HMT with good design, over the gray
market by providing dependable after sales service, and over the local players by
establishing nationwide distribution network.
TITAN INDUSTRIES LIMITED
The Origin
The industry structure prevalent in the 1980s provided a golden opportunity for
the Tatas who were one of the most respected names in the Indian industry. They not only
had the financial muscle to enter the watch business but also had the feel of India as a
market. This led to the birth of Titan Industries Ltd. in 1984.
From its inception, Titan decided that it would be the shaper of the watch
indudtry and not an adapter. They created competitive advantage through differentiation.
They first concentrated on technological leadership. The Tatas took 2 decisions – they will
manufacture only quartz (analog and digital) and not mechanicals, and they would set up
state-of-the-art plant to manufacture watches in a wide variety of designs and prices. HMT
and local players had always looked at the functional utility of the watch. Titan was first in
India to introduce the ‘style’ concept. They projected the watch as a fashion accessory.
They clearly identified that their main competitor was not HMT, but the gray market.
A firm differentiates itself from its competitors if it can be unique at something
that is valuable to the buyer beyond simply offering low price. Differentiation allows a firm
to command a premium price, to sell more of its products at the same price, or to gain
equivalent benefits such as greater buyer loyalty. Differentiation leads to a superior
performance if the price premium achieved exceeds any added costs of being unique.
At Titan the products were developed in such a way so as to enhance quality and
features to increase buyer value. This was the pefect example of differentiation through
technological leadership and product technological change.
In the initial years Titan chose to concentrate on the higher end of the market
which was responsive to the ‘style’ element of the watch. Also this segment of the market
was relatively price inelastic. This was done so as to build the brand image of Titan as
manufacturer of good quality stylish watches. Over the years the Titan brand and its
signature tune – Mozart’s Fifth Symphony – has become one of the most recognised in
Indian consumer durable goods segment.
1990s was the liberalization of the Indian economy. There were two trends in the
watch industry after liberalization, viz. the giant of the watch industry changed from HMT
to Titan, and small manufacturers have gained strength in the market. Why did this
happen? Mainly because times changed, but HMT did not. In fact when the other rivals
were running a 100 metres, HMT was walking backwards. HMT lacked a clear market
strategy or research. It failed to develop a good network of loyal and honest dealers. There
was rampant corruption in marketing division. HMT also failed to provide a basic feature
that any products must always satisy: quality. In fact of all the watches that HMT sold in
the market, 40% came back within 2 months for repairs. About 7% of the watches were
rejected at the dealer’s level because of the manufacturing defects. Being a public sector
undertaking, HMT had to dance to the tunes of the political bosses. It was overstaffed and
grossly inefficient with 60% of the sales being expended as salaries. Last but not the least,
though HMT had about 45% market share in the early 1990s, its share in the high margin
high growth quartz segment was a mere 18%. This led to a sudden and drastic decrease in
HMT’s total market share in mid-90s.
During this period, the unorganised sector also grew very fast – almost 55% of
the demand in the total market size of 20 million watches was being met by the
unorganised sector. With the import duty reduced to 25% (earlier 50%) and with the
import licenese for warch movement being easy to obtain, many smalltime players cropped
up. These small players offered competition to Titan on the price front.
Titan once again showed that it was a shaper and not adapter. Over the years
Titan had built a formidable distribution and support network. Titan’s customer orientation
was reflected through their advertising campaings. Whereas HMT called themselves
‘timekeepers of the nation’, Titan told masses “if you have the inclination, we have the
time”.
Typical sources of differentiation in the value chain
Earlier Titan created an advantage through its design and styling. Now it created
an advantage through the last two elements of the value chain, i.e. Marketing and service.
The Titan brand was well established. This was coupled with a chain of retail stores, which
showcased the range of Titan watches and also provided with support and service. TIL and
Timex Watches BV entered into a joint verture on November 6, 1990. Titan tied up with
Timex to create a presence in the lower end segment of the watch market. Timex provided
the know-how in the plastic watch manufacture and Titan provided is retail and
distribution strength. Timex was positioned as a separate youthful brand. This served two
purposes, Titan protected its image as the premium watch manufacturer and at the same
time created a presence in the lower end of the market via the Timex venture. Also Titan
had always strived to keep its costs in control. Right since its inception Titan had
implemented World Class Manufacturing which helped to keep costs under control. The
major thrust areas under WCM were: Just –in –Time Manufacturing, Total profuctive
Maintenance, Total Quality Control, Total Employee Involvement, and Housekeeping.
ThoughWCM meant lower costs, Titan always differentiated itself through other
elements of the value chain viz.design, marketing and support. This meant more buyer
value and at the same time more profitability for Titan due to cost controls.
THE PROGRESS CONTINUES...
Titan’s business model resembles the one created by the Swiss watchmaker, SMH.
Its essence is the product pyramid: a portfolio of products spanning 3 distinct price-bands
that can be defined, in general, as Popular, Mid, and Premium. At the bottom, the
emphasis is on volumes-not margins. At the top, the emphasis is on profits and image-not
volumes. Obviuosly, profits are concentrated at the top of the pyramid, but the base acts as
both an entry-barrier and a caretaker of the company’s fixed costs. This pyramid guides the
present strategy of TIL. TIL was first focussed only on the premium segment of the watch
market. As per the above-mentioned strategy TIL is moving into the mass market for
watches. To broaden the mass base, TIL is creating new segments and increasingly
focusing on segments individually. In the past few years TIL has launched at a number of
initiatives focussed on specifc segments.
PRODUCT PROFILE
In the last few years Titan has begun to face a competition from HMT and other
players in terms of launch of newer elegent models. Titan, who pioneered the concept of
repositioning watches as upmarket lifestyle articles, now faces stiff competition from
domestic as well as foreign watchmakers. It has moved from strength to strength and has
zeroed on using focus as a source of competitive advantage. Increasing focus necessitates
paying minute attention ot the market requirements. Titan has segmented the watch market
and clearly identified clearly the needs of each group.
The strategy that Titan has adopted in recent years is that of focus. It has
segmented the market into different need groups and tailored its strategy to the exclusion of
others. By optimizing its strategy for the target segments, it seeks to achieve a competitive
advantage in its target segments.
Market segmentation is concerned with identifying differences in the buyer
behavior, allowing a firm to match its capabilities with distictive products and related
marketing programs. Market segmentation tends to focus on the marketing activities in the
value chain in which Titan commands a very formidable position. This also allows Titan to
find out how it should serve each segment.
Titan has tried to achieve a balance of cost focus and differentiation focus. By this we
mean that in the lower end (Popular segment) of the market, it seeks to achieve a cost
advantage by exploiting the differences in cost behaviour. In the mid-and higher-end (Mid
and Premium segment) of the market, it seeks differentiation by providing better designs.
To achieve this Titan has segmented the market and launched a brand or a sub-
brand to meet the needs of each segment. Thus it aims to be a market leader in each niche
it aims to serve. The various brands of Titan and the price range in which they fall are
tabulated which follows:
Brand Price Range (Rs) No. of Models
Insignia Gents 3750 to 7750 98
Insignia Ladies 1600 to 7500 89
PSI2000 Gents 1780 to 7500 61
PSI2000 Ladies 800 to 4350 36
Regalia Gents 1820 to 7790 157
Regalia Ladies 1725 to 7770 168
Royale Gents 960 to 2810 123
Royale Ladies 1120 to 2830 91
Classique Gents 850 to 2450 268
Classique Ladies 565 to 2930 161
Spectra Gents 1140 to 1830 57
Spectra Ladies 650 to 1410 22
Exacta Gents 600 to 1170 48
Exacta Ladies 595 to 800 25
FasTrack Gents 550 to 1430 57
FasTrack Ladies 850 to 1050 11
Technology 2350 to 8170 55
Raga Ladies 1420 to 4000 123
Nebula Gents 8950 to13500 8
Nebula Ladies 5950 to 6950 4
Bandhan 1675 to 8085 34
Sonata Gents 295 to 1195 200
Sonata Ladies 350 to 1100 96
Sonata Pair 1495 to 2000 10
Dash Boys 295 to 395 15
Dash Girls 250 to 350 13
Source: Tradepost, 9 March 2000
Titan has developed a range of brands that encompass the entire spectrum of the
watch market. Each of the brands is targeted to satisfy the needs of a particular segment of
the market. Some of the major brands and the brand strategies are given below:
Sonata – Mr. Xerxes Desai, CEO, realised 3 years ago that the size of the market Titan had
chosen to play in (3 million units per annum), its relatively slow pace of growth (10 per
cent per annum), and the customer’s resistance at those higher price-points in the watch-
market would choke off Titan’s future. That is when he decided to chase volumes rather
than margins. The launch of the Sonata range can be attributed to Desai’s desire to stick to
the pyramid. The sub-brand Sonata was spun off as a separate division, and today Sonata is
India’s second largest selling brand, after Titan.
FasTrack – FasTrack was an attempt to target the urban youth segment with an
appropriate line of products. After the initial success of the metal collection, FasTrack
offers a variety of fashionable trendy watches at affordable prices. The FasTrack range has
grown by almost 100 per cent in volume terms and is easily the largest youth brand in the
country. Titan has now made a foray into the digital watch market with FasTrack Digital.
The decision to enter this segment was inspired by the resurgence of digital watches
internationally and the need to revitalise a dormant segment of the Indian watch market. It
also extends the width of Titan’s offer to the fashion conscious youth of India. Breaking
away from the traditional, functional platform, Titan has positioned the FasTrack Digital
collection on a fashion platform.
Dash!– The childern’s watch brand, Dash! launched by Titan a year and a half back, has
garnered volumes of 2.5 lakh units since then. The company has said that the brand is well
on its way to achieving the one million target in three years. Dash!, targeted at the age
group of 6 and 14 years, is priced in the range of Rs 250 and Rs 395. Dash! competes with
Gimmis from Times in this category. the copmany says that Dash! has done
“exceptionally” well since its launch, growing in volumes every month, both in like-to-like
stores as well as a consequence of the extension of distribution from the 8-city launch to
full national distribution.
BEYOND WATCHES:
Titan decided that it did not want to remain only in watch segment. It wanted to
extend the brand unmbrells to the hitherto untapped market segments, viz. branded
jewelry, jewelry, watches, and clocks. This led to the following initiatives.
Tanishq – Tanishq was stared as a premium watch and jewelry brand. But it failed to be
profitable for a long time. It is now being repositioned as a pure jewelry brand. Tanishq is a
four-year-old brand, available through around 25 exclusive boutiques in India. Starting our
with contemporary designs, Tanishq now has a very comprehernsive, traditional 22-carat
jewelry line that compares well with any traditional Indian jeweler. Tanishq is reaching out
to the mass market by shedding its premium high-end image to become the largest jeweler
in the country by 2001. In a bid to extend its reach, Tanishq has introduced a large variety
of styles, price points and applications. Its jewelry ranges from Rs 800 upward. It has also,
for the first time, ties up with Countrywide Finance for providing pre-approved credit line
ar selective outlets. Plans are now on to increase the number of outlets to around 50 by the
end of the year. Titan plans to spin off Tanishqu as a separate entity, as the jewelry business
does get well with the proposed mass-market orientation of the company. Now the high
priced watches will be marketed under sub-brand Nebula. Tanishq will remain in the
premium readymade jewelry segment.
Synchrony - Titan’s strategy is focussed on segmenting the Rs. 500-Rs. 2,000 clock and
time-piece marktet, based on price, lifestyle and customer by introducing exclusive
collection in each category. Titan feels that well crafted timepieces woulb be in demand in
corporate and as gift items. With Sychrony, the focus would be on style and design
attributes rather than the functional aspects of a clock.
In addition to this, Titan has created a 115-strong network of watch-stores named
Time Zone, with the aim of capturing value at the retailing end of the value chain. Thus,
these stores sell not only Titan brand, but also HMT, Benetex, D’signer, Raymond Weil,
Citizen, Timex, Casio and Espirit brands.
Titan also recognised the e-commerce revolution that is taking place. It has started
selling its watches through its website www.titanworld.com. Its entire product range catalog
with model numbers, photographs and price is availble on the Internet. The watches are
home delevered and payment can be made by cheque. The delivery is made on realization
of the cheque. Credit cards are accepted but presently the credit card information transfer
is not secured. Titan is working to enable a secured transaction processing and this will be
enabled shortly.
THE TATA BUSINESS EXCELLECE MODE (TBEM):
Titan Industries has signed up to implement the compliance plan laid out by the
TBEM. Beginning July 2000, it will be evaluated on 7 paramemters that constitute the
TBEM: leadership, strategic planning, customer and market focus, information and
analysis, process management, human resouces focus and business results. The goal is to
reach a score of 600 in next five years. Titan currently stands second in the Tatal group,
with a score of 450, after Tata Steel.
The objectives of TBEM are:
To provide a framework for the group to become competitive.
To work as a competition to ensure participation.
To acquire competitiveness using quality as the route.
To monitor the progress through ratings.
To become a transformational tool for every company.
The TBEM has no prescriptions, and its extensively adaptable. The choices of tools and
the method of deploment lie entirely with the company. It also shies away from making any
suggestions about how the organisation should be strucured and whether they shoul have
quality-planning department or not, and any suggestions about starting points, systems,
tools, and techniques. The TBEM drives excellence across funtions in the following
manner:
The Leadership criterion checks haw senior leaders create leadership system based
on Group values. With the able leader in form of Mr. Xerses Dessi at the helm of affairs,
Titan has become a dynamic, vibrant and pro-active organization.
The Customer and Market Focus checks how the company determines customer
groups, key customer needs, and complaint-management issues. Titan has always been a
customer centric organisation and always has focussed on satisfying the customer demands.
The Strategic Planning criterion examines how the company develops strategic
objectives, action plans, and resource-allocation. Since its inception, Titan has been the
shaper of the watch industry. It has identified the future trends well in advance and taken
appropriate steps in the right direction to emerge as the leader in the industry.
The information and Analysis criteria check whether the organisation has key
metrics in place to measure and analyse performance. Being market- driven, Titan has its
information systems in place and has its hand on the pulse of the watch market.
The Human Resources Focus checks the appraisal system, the work environment,
and the training and development of the employees.
Process management examines the product design, production and delivery
process, and supply chain management. Titan has pioneered the ‘style’ concept in the watch
industry and is the undoubted leader in design. Also WVM ensures high quality of
products at all times.
The Business Results critertion measures the organisation’s performance in areas
like customer satisfaction and product- and service- performance.
Implementation of the TBEM will ensure that processes and practices are
customer-centric, company pursues agility, uniform performance are employed, knowledge
and best practices are shared, and a unified management strategy for the Tata Group is
employed.
THE TATA BUSINESS EXCELLENCE MODEL (TBEM)
The Future
Titan has followed a strategy of serving the entire watch market by targeting a
separate bramd or brands at each market segment. To serve these brands better, Titan is
creating a business structure that would provide the necessary focus at these segments.
With this in mind, Titan has reorganized the organization as follows-
Company’s operations have been reorganized into business units (BUs) with chief
operating officers (COOs) appointed at the helm of these BUs.
BU concept represents a more efficient way of managing, COOs running the BUs
will be responsible for the entire value chain starting from design to strategy to sales and
marketing. Such a BU stricutre will allow Titan to be more flexible in its market operations
and approach. It will also cultivate a healthy competition under the parent Titan brand
umbrella, without causing any BU to eat into the market share of any other BU as they are
catering to needs of different market segments.
RESTRUCTING CLOCK BUSINESSES:
Titan has evolved a whole new strategy for its low-end clock business by going in
for ‘virtual manufacturing. Titan has stopped making clocks at its own facility and is now
sourcing them from vendors, local and international. Titan’s inputs come in the form of
design, styling, marketing and quality control.
Titan plans to focus on the segment of the clock market where it enjoys a
competitive advantage and where it can leverage its three core competencies, viz. design,
brand name and market reach. The company plans to focus on beautifully crafted
clocks. Under the “Kaal” banner it has recently introduced clocks that symbolize the fusion
of time with Indian craftsmanship. Titan plans to use the investment made in the clock
manufacturing to make plastic watches and its new offerings.
BRANDED JEWELRY BUSINESS:
Titan plans to spin off Tanishq as a separate entity, as the branded jewelry
business does not gel well with the proposed mass-market outlook of the company. Also,
Tanishq will remain only in the branded jewelry business; the high-end watches will be sold
under the Nebula brand name.
Titan has realised that there is a huge untapped market for branded jewelry in
India. The basic premise for branded jewelry is assurance of quality, fashionable design and
impeccable after-sales service. In addition to this, changing lifestyles demand lighter,
trendier kind of jewelry.
With the thrust of Tanishq’s marketing strategy being on countering competition
from the traditional jewelers, it plans to push the brand on the trust/quality platform. The
advertisement pitch is also on similar lines.
Tanishq is rationalizing its prices to increase its customer base and become the
larger jeweler in the country by 2001. There is a common feeling that Tanishq products are
not very accessible and affordable to common buyers. As an initial step, the company has
decided to train its boutique staff on how to woo and handle customers by making the
brand more accessible, affordable and attractive.
To expand Tanishq’s geographical reach, Titan would open 30 more outletsacross
the country during the next calendar taking the total to 60. The comapny has already signed
17 franchise agreements and another eight are under negotiation. Tital would also
introduce caret meters in 12 more outlets- taking it to around 30 - to help customers buy
and sell right quality gold. The company recently launched awareness and customer
interaction program with a view to collate their feedback on tastes, styles and patterns. The
exercise was expected to assist the brand locate and design newer varieties of jewelry.
Titan plans to invest over Rs.1 Crore to network all Tanishq outlets - both
franchise network and own shops - to facilitate greater interaction within the brand. The
networking exercise would be kicked off by mid-2000.
Tanishq plans to double its turnover in 1999-2000 to Rs.150 crore by selling over
3 lakh pieces of jewelry and is looking at Rs.200 crore during 2000-2001. It is looking at a
quantitative return pattern without charging an undue premium on its products. The
company plans to leverage on the retailing and distribution clout to emerge as a premium
retailer of imported, high end fashion products and accessories in the personal wear
segment. Titan is looking for goods essentially bought for their brand value - crystals,
leather belts, pens, sunglasses, jeans etc. These will be sold through its Tanishq boutiques.
Titan’s agreement with Lee Cooper is a case in point.
The size of jewelry market in India is about Rs.40,000 crore. At present the share
of Tanishq is less than 0.5 per cent. The potential for growth is therefore immense. If
Tanishq grows at a healthy pace it can corner a high propotion of this market.
FUTURE STRATEGY:
It is prudent for Titan to follow a two pronged strategy in the future – one
strategy for the domestic markets and a different strategy for the overseas markets.
Domestic strategy: Titan has established leadership in India by catering to every market
segment. They pursue a strategy of cost focus and differentiation focus in the country.
Continuing this strategy will enable them to further consolidate their position in the
domestic markets.
Overseas strategy: Titan now plans to enter the European market. It will start off by
offering ultra-thin movements market under the brand name ‘Le Papilon’ with the all
important ‘made in Switzerland’ label. Titan is going to offer the ultra slim movements,
which are as thin as any Swiss movements, but a price which is a fraction of what the Swiss
charge. ‘Le Papillon’ will retail for Swiss Francs 33, whereas the cometing Swiss
movements cost Swiss Francs 150. Titan’s Le Papillon movements will qualify for the
made-in-Switzerland label as components, which constitute 50 per cent of the cost of the
movement, will be of Swiss origin. Titan will make the electronic circuitary parts like step
motor, quartz crystal, chip and battery will be sources from Switzerland while the plate, the
moving parts, at its Hosur plant. Titan also plans to provide a stiff competition to the Swiss
companies by introducing their range of watches in Europe. Titan’s marketing strategy will
be to offer watches that match the Swiss watches in looks and quality, but which come at a
much lower price. Thus, Titan will be adopting the strategy of being the cost leader in the
overseas markets.
THE ROAD AHEAD...............
The removal of Quantitative Restrictions has seen a flood of international players
getting into the Indian market. With low levels of watch penetration and the large size of
the Indian population, India is a market that no one can ignore. The future “Time Keepers
to the Nation” will not only be Indian but alos French, Swiss and Japanese. This puts forth
a new and a formidable challenge in front of the Indian wathc manufactures and especially
Titan, which is the dominant player in the Indian market. As we have seen earlier, till date
Titan has always been the proactive Shaper and not the reactive Adaptor. Titan has the
experience of playing against public sector giants like HMT, but fighting against nibble
footed International players with deep pockets, and the latest technology is going to be a
different ball game. It will be difficult to preempt the moves of such competent opponents,
so Titan for the first time will be in a reactive mode than a proactive mode. Titan also has
to contend with the basic Indian paradigm - “foreign goods are always superior”. Titan’s
successes in the markets like Dubai has given a hint that Titan does have the capacity to
compete internationally, but, whether Titan can repeat its Indan success story on the
international paltform is a question which only time will answer.
Watch industry upbeat on future
After two years of stagnation and dip in some segments, the country’s watch
industry is set to grow at about 9 per cent-11 per cent in 2004, according to Mr. Kapil
Kapoor, Regional Director, Timex, South Pacific and India.
Mr. Kapoor, who was here to launch a theme store at Pradad Imax Mall, told
Business Line that the overall watch industry in the country was looking up. This is clear
from the positive signals from the Indian economy. When the economy grows, there is
positive traction towards investments where lifestyle products and retail are major gainers.
Within the watch industry, certain sectors are growing driven by the luxury-end
models and sports patterns. However, one segment that has historically grown - gold
jewellery - has shown declining trend. The country’s watch market is estimated at about Rs.
1,000 crore in the organised sector and another Rs. 500 crore comes from the unorganised
market.
“A conservative estimate is that we could grow the watch market by at least 6 per
cent to 7 per cent. But with acceleration in the retail segment, we could possibly witness
growth rate of about 9 per cent to 11 per cent,” Mr. Kapoor said.
There is a large parallel market that is thriving the country. “We are trying to
lobby as part of the organised sector against this market. We have got together as
association of watch manufactures and we are seeking a minimum levy on the value
ascribed and have requested the Government to bring in a directive to regulate the
market,” he said.
“The landed duty for watches works out to about 70 per cent – covering basic
duty, and ad valorum – and we expect this to gradually come down further,” he said.
The overall duty used to be about 81 per cent some times ago. With the
Government being a signatory to trade and tariffs, some more changes, which will make it
more competitive, are expected in the next two to three years, he said.
Chapter 4
COMPANY PROFILE
Company Profile
Titan Industries
Titan Industries Limited is a joint venture of the Tata Group and The Tamil Nadu
Industrial Development Corporation (TIDCO). Its business activities cover wathes, clocks
and jewellery. In a short span of time, the company has built and envitable reputation for
its corporate practices, products and services.
Titan Industries is India’s leading manufacturer of watches which it markets under
the Titan and Sonata brand names. It enjoys a 25 per cent share of the total domestic market
- more than three times the size of its nearest competitor - and close to a 50 per cent share
among nationally recognised brands.
Titan Industries will make and market over 7 million watches this year, making it
the sixth largest global player in the category of “manufacturer brands”, i.e. watch
companies that manufacture the components that go into the branded products they
market.. It has a very wide range of products in terms of looks, function and price points,
all noted for their workmanship and reliability. A significant proportion is sold through two
Titan controlled retail chains. The company’s watches are presently sold in about 40
countries of the world through marketing subsidiaries based in London, Dubai and
Singapore. They enjoy a reputaion for being excellent value for money. Titan Industries
also makes watches for international labels.
The company employs aroud 3,700 personnel. Its manufacturing facilities occupy
a built-up area of 33,000 square meters. The main manufacturing plants are located at
Hosur in the southern state of Tamil Nadu. In addition there is and assembly unit at Dehra
Dun in the northern state of Uttar Pradesh and a unit that profuces electronic circuitry for
quartz watches in the state of Goa. Headquarter offices are in Bangalore, the Information
Technology capital of India.
Achievements
Tital Industries Limited is recognised as a corporate leader by its
professional peers. It has been ranked as India’s leading consumer durable
marketing company for the past seven years (1993-99) in polls conducted by the
country’s leading advertising and marketing publication A&M. It was rated as
one of Asia’s top 200 companies and India’s top 10 in each of the years 1994 to
1998 in surveys conducted by The Far Economic Review. In another survey
conducted by The Economic Times in the year 2000, Titan was voted India’s
most admired brand. Recognition for the company’s engineering capabilities,
innovative products, advertising excellence and services to the community has
come in the form of several prestigious Indian and international awards.
Chapter 5
ANALYSIS & INTERPRETATION
Analysis of Data
The Respondents and the Choice of Districts
Data were collected from the Kottayam district of Kerala State. The researcher
interviewed 250 respondents in the district.
Age of the Respondents
The majority of the respondents fall in the age group of 15-22, 45% of the
respondents belong to this category. 39% of the respondents come under the age group of
23-30. 6% each belong to the age groups 31-35 and above 45. 4% of the respondents are
in the age group 36-45. Table 1 gives a clear picture of the age group distribution of the
total respondents.
Table 5.1
Age of the Respondents
Age Group Number Percentage
15-22 113 45
23-30 97 39
31-35 15 6
36-45 10 4
Above 45 15 6
Total 250 100
Source : Primary data.
Age of the Respondents
0
20
40
60
80
100
120
15-22 23-30 31-35 36-45 Above 45Age Groups
Num
ber o
f Res
pond
ents
Among the 250 respondents, 160 (64%) are males and the others are females.
Among the total respondents 53 (21%) are married and 197 (79%) are single.
Education of the Respondents
Education level of the persons can influence their thinking pattern and thereby
the selection of the product. The criteria of an educated person will be different from that
of an uneducated person in selecting a watch.
In the sample 50% of the respondents are graduates and 35% are post graduates.
8% have Plus Two education and 7% have below Class 12 education. Table 2 shows the
educational level of all the respondents.
Table 5.2
Education of the Respondents
Education Number Percentage
Below Class 12 18 7
Class 12 20 8
Degree 125 50
PG 87 35
Total 250 100
Monthly Family Income of the Respondents
One of the most important factors that influence the buying behaviour of the
individuals is the family income. To a great extent they make their selection according to
the income they have.
29% of the respondents are under the monthly income group of 4001-6000.
22% belong to the income group 6001-10000. 18% of the respondents come under the
income group above 15000. 16% are having a monthly income 2001-4000. 10% of the
respondents are in the income range below 2000. 5% of the respondents fall under the
income group 10001-15000. The details regarding the number of respondents in each
income group are available from Table 3 and the pie chart.
Monthly Family Income10%
16%
29%22%
5%
18%
Up to 2000 2001 – 4000 4001 – 60006001 – 10000 10001 – 15000 Above 15000
Table 5.3
Monthly Income of the Respondents
Income Number Percentage
Up to 2000 25 10
2001 – 4000 40 16
4001 – 6000 72 29
6001 – 10000 55 22
10001 – 15000 13 5
Above 15000 45 18
Total 250 100
Source : Primary data.
The monthly family income of the respondents can be obviously explained with
the help of the pie diagram. The following pie chart exhibits the income level of the
respondents.
Table of observed frequency
Price Design Brand Durability After Sales Service
Upto 2000 12 5 8 0 0
2001 - 4000 13 10 5 3 9
4001 - 6000 24 28 7 10 3
6001 - 10000 6 20 15 9 5
10001 - 15000 5 5 3 0 0
Above 15000 5 24 13 2 1
Source : Primary data.
Chi-Square Test
Ho: Monthly/family income and purchase decision of a person is dependant. H1: Monthly/family income and purchase decision of a person is independant.
Table 5.4 Chi-Square Table
O E O-E (O-E)2 (O-
E)2/E 12 6.55 5.45 29.7025 4.534733 5 9.1 -4.1 16.81 1.847253 8 4.88 3.12 9.7344 1.994754 0 3.84 -3.84 14.7456 3.84 0 1.56 -1.56 2.4336 1.56 13 8.8 4.2 17.64 2.004545 10 12.32 -2.32 5.3824 0.436883 5 6.58 -1.58 2.4964 0.379392 8 5.18 2.82 7.9524 1.535212 9 2.1 6.9 47.61 22.67143 24 19.4 4.6 21.16 1.090722 28 27.5 0.5 0.25 0.009091 7 14.47 -7.47 55.8009 3.856317 10 11.39 -1.39 1.9321 0.169631 3 4.6 -1.6 2.56 0.556522 6 13.1 -7.1 50.41 3.848092 20 18.3 1.7 2.89 0.157923 15 9.77 5.23 27.3529 2.799683 9 7.66 1.34 1.7956 0.234413 5 3.1 1.9 3.61 1.164516 5 4.03 0.97 0.9409 0.233474 5 5.6 -0.6 0.36 0.064286 3 3 0 0 0 0 2.36 -2.36 5.5696 2.36 0 0.95 -0.95 0.9025 0.95 5 11.08 -6.08 36.9664 3.336318 24 15.48 8.52 72.5904 4.689302 13 8.2 4.8 23.04 2.809756 2 6.5 -4.5 20.25 3.115385 1 2.64 -1.64 2.6896 1.018788
Y2 = 73.26842
Chi-square value = 73.26842 Table value @ 5% level = 31.41
Here, calculated value is more than the table value.
Therefore, Ho is rejected. So monthly family income and purchase decision are
independent.
Number of watches owned by the Respondents
Usually people in our society own one or two watches at a time. It is noted that
among the respondents 52% have only one watch and another 27% have two watches.
15% of the respondents own 3 watches. 4% have four watches. 1% each have five
watches and more than five watches. From this it can be concluded that like other
ornaments watches are not used for luxury purposes but for necessity. When we say this
also another significant fact is that the design and quality influence the customers in
choosing the watches. Table 4 gives the clear picture about the number of watches that the
respondents own.
Table 5.5
No. of Watches owned by the Respondents
Number of Watches Number of Respondents Percentage
1 130 52
2 67 27
3 38 15
4 10 4
5 3 1
> 5 2 1
Total 250 100
Source : Primary data.
Familiar Brands of Watches
As mentioned above the design and other features of the watches incluence the
customers in their selection. Anyhow people have certain familiar brands of watches and
whenever they hear about the watches such brand names come to their mind. Table 5
indicates the more familiar brands of watches of the respondents.
Table 5.6
Familiar Brands of Watches
Brands Number of Respondents Percentage
Titan 142 57
HMT 38 15
Citizen 15 6
Timex 12 5
Classic 0 0
Rado 8 3
Casio 5 2
Sonata 30 12
Others 0 0
Total 250 100
It is obvious from the above table that out of 250 respondents 142 (57%)
remember the brand name of Titan watches when they are asked about watches. In this
regard HMT watches occupy the second position and the percentage of respondents more
familiar with the HMT brand is 15. The following positions are occupied by Sonata (12%),
Citizen (6%), Timex (5%), Rado (3%) and Casio (2%). The above table can give the
percentage analysis of the respondents’ familiarity to each brand of watches.
Currently using Brand of Watches
Most of the respondents (33%) use Titan watches. The brands that come next are
HMT (19%) and Sonata (18%). Other important brands of watches that the respondents
use are Citizen (8%), Timex (8%), Classic (6%), Rado (4%) and Casio (4%). Table 6
provides a clear picture of the brands of watches currently being used by the respondents.
Table 5.7
Currently using Brand of Watches
Brands Number of Respondents Percentage
Titan 82 33
HMT 48 19
Citizen 20 8
Timex 20 8
Classic 15 6
Rado 10 4
Casio 10 4
Sonata 45 18
Total 250 100
Source : Primary data.
Type of Material Used by the Respondents
Type of material refers to the type of watch that the respondents use. The major
types of watches available in the market are gold plated watches, watches with leather
straps, steel plated watches, two-tone watches, plastic watches etc. Among the
respondents, the majority i.e., 35% use gold plated watches with leather strap. 29% of the
respondents use all gold plated watches and 18% use all steel plated watches. 13% use
plastic watches and 5% use Two-tone watches. Table 7 shows the types of materials
preferred by the respondents.
Table 5.8
Type of Material Used by the Respondents
Type of Material Number of Respondents Percentage
All Gold Plated 72 29
Gold Plated with Leather Strap 88 35
All Steel 45 18
Two-Tone 13 5
Plastic 32 13
Total 250 100
Source : Primary data.
The graphical respresentation of the different type of materials used by the
respondents can explain the matter obviously. The graphical representation of use of the
different types of materials is given below.
Type of Material
72
88
45
13
32
0102030405060708090
100
All GoldPlated
Gold Platedwith Leather
Strap
All Steel Two-Tone Plastic
Type of Material
No.
of R
espo
nden
ts
Occasion of Buying Watches
Another important fact noted by the researcher is that friends or relatives gifted
36% of the respondents’ watches at certain special occasions. Only 64% of the
respondents reported to have bought the watches for their own use. From this one thing
can be inferred that the industries of the watches have to consider this factor in designing
the watches.
It is also found that the watches are gifted in special occasions like marriage,
birthday, festivals etc. Table 8 reveals the various occasions and the percentage of watches
bought by the respondents for their own use. In the table the category ‘Others’ includes
occasions to recognize in their achievements, for encouragement etc. 44.45% of the gifts
are given in this regard.
Table 5.9
Occasion of Buying Watches
Gift Occasions Number of Respondents Percentage
Marriage 8 3
Birthday 37 15
Festival 5 2
Others 40 16
Bought 160 64
Total 90 100
Source : Primary data.
Factors influencing Purchase
Another important area to be considered is the factors influencing the interest or
concern of the customers in buying the product. There are some common factors that
influence the customers in their selection of an item. Some of those concerns are design,
price, durability (life period) etc. Among the respondents 37% are bothered about the
design of the product. They are not bothered about the price, durability etc of the product
but the design of the watch. 26% take into account price of the watch before they buy it
whereas 17% of them are concerned about the brand name. 13% of the respondents give
priority to durability while 7% consider after-sales service as more important.
Table 5.10
Factors influencing Purchase
Factors Number of Respondents Percentage
Price 65 26
Design 92 37
Brand 43 17
Durability 32 13
After Sales Service 18 7
Total 250 100
Source : Primary data.
The following graphical representation reveals the criteria of selecting a watch by
the respondents. It is more evident from the following graph.
0102030405060708090
100
No.
of R
espo
nden
ts
Price Design Brand Durability AfterSales
Service
Factors
Factors influencing Purchase of Watches
Chapter 6
FINDINGS & SUGGESTIONS
Findings
1. No.of watches own :
Usually people in our society use one or two watches at a same time. It is noted that
among the respondents. 52% have only one watch another 27% of the respondents have 2
watches. Only a very few percent of persons own more than two watches. The percentage
of the persons own more than two watches is around 21. From this it can be concluded
that like other ornaments watches are not used for luxury purposes but for necessity. When
we say this also another significant thing is that the design and other features of the
watches influence the customers in their selection.
2. Brand awareness :
Out of 250 respondents 142 (57%) remember the brand name of Titan watches
when they are asked about the watches. In this regard the HMT watches occupy the second
position and the percent of respondents more familiar with the HMT brand is 15. The
following positions are occupied by the brands like Sonata, Citizen, Timex, Rado, Casio etc.
All other brands are very little familiar to the respondents.
3. Currently using brands of watch :
Most of the respondents (33%) use the Titan watches. The second brand that has
significant number of customers is HMT watches. It covers the 19% of the total
customers. The other important brands of watches that the respondents use are Sonata,
Citizen, Timex, Classic, Rado, Casio etc.
4. Type of Material used by the respondents:
Type of material refers to the type of watch that the respondents use. The major
types of watches available in the market are gold plated with leather strap watches, All gold
plated watches, All steel, Plastic, Two-Tone watches etc. Among the respondents the
majority i.e., 35% uses Gold plated with leather strap watches. 29% of the respondents use
all gold plated watches and 18% of the respondents were all steel plated watches.
5. Type of purchase
Another important factor noted that 64% of the respondents bought the watches for
their own use. From this one thing can be inferred that the industries of the watches have
to consider this factor in designing the watches.
It is also found that the watches are gifted in special occasions like marriage,
birthday, festivals etc. In this category ‘others’ includes occasions to recognize in their
achievements, for encouragement, etc. 16% of the gifts are given in this regard.
6. Factors considering to buy the watch:
Another important area to be considered is the factors influencing the interest or
concern of the customers in buying the product. There are some common factors that
influence the customers in their selection of an item. Some of those concerns are design,
price, durability (life period), etc. Among the respondents 37% are bothered about the
design of the product. They are not bothered about the price, durability etc. of the product
but the design of the watch. 26 % of the respondents concern about the price of the
product, they buy the watch, which is affordable by their finance set up. 13% are bothered
about durability. A good number of respondents i.e., 17% of them find importance in the
brand of the watch.
Suggestions
• A major chunk of the customers buy watches for the purpose of presentations or
gifts. So all efforts should be taken to formulate schemes and strategies to attract this
segment of people.
• The most selling model watch is gold plated with leather strap, customer survey also
reveal the same. So the avialability of such watches with divergent models in the
market shall be ensured.
• Changes in the model shall be made in consideration with the price range, i.e; the
most selling watches are in the price range of below 1000. So more new models have
to be introduced in this category of watches.
• There is high demand for bi-metal watches in the current market, so production of
more bi-metal wathes can boost the sales.
• Production of 1000 to 1500 range titan steel watches is to be increased.
• Service delay of the Titan wathes during the tenure of guarantee must be avoided,
because it causes a lot of inconvenience to the dealers.
Chapter 7
CONCLUSION & BIBLIOGRAPHY
Conclusion
Plenty of different brands of watches are available in the market. Considering the
market share of those brands Titan watches stand first, it is the major shareholder in the
market. Its main features are variety in design, different price category, etc.
The customers in the different age groups and in the different income groups
consider the various features like price, design, and the brands. Their criteria of selection
differ as their income/age/ and education varies. Most of the respondents (33%) use Titan watches. The second brand that has
significant number of customers is HMT watches. It covers the 19% of the total
customers. The other important brands of watches that the respondents use are Citizen,
Timex, Classic, Sonata etc.
To improve the market share of the Titan watches they have to emphasise on the
production of gold type and plastic type watches.
Bibliography
1. Kotler philip, Marketing management text millennium edition, 2000.
2. Beri G.C. Marketing Research Tata McGraw Hill New Delhi, 1998.
3. Survey of Indian Industry 2003. The Hindu
4. Web site of watch industry.
• www.google.com
• www.yahoo.com
APPENDIX
MARKET SURVEY OF WRIST WATCHES
Name:
Place:
Dear Sir/ Madam
I am Thomachan Babu as parts of my curriculum in fulfilling my MBA programme
affiliated to SRM Deemed University have undertaken this project “Market Study on wrist
watches among customers with reference to Titan Watches”. Kindly provide the necessary
information and I assure you that the data provided will be used for analysis only.
1. When you think about a watch which brand comes in your mind first?
2. How many watches do you have?
3. Which all brands?
Brands Nos
4. Which brand of watch are you using now ..........................................................
Material type
a. All gold plated b. Gold plated with leather strap
c. All steel d. Two-tone e. Plastic
5. This Watch was
a. Gift to you b. Brought by you for own use
6. Which all features influenced you to buy this watch? (Please rank it as (1, 2, 3, ....) on
the basis of importance.)
a. Price b. Design c. Features d. Known brand
e. Advertisement f. Dealer recommendation g. Others
7. If you are buying a new watch what are the features you consider (Please rank it as (1,
2, 3, ...) Rank 1 = very important, Rank 3 = least important.)
Features Rank Name the brand of watch having the features
1. Price 2. Design 3. Durability 4. Brand 5. After sales servcie
8. Personal Information:
Age:
15-22 23-30 31-35 36-45 46 & above
Sex:
Male Female
Marial Status:
Married Single
Education:
Below class: Graduate/Post graduate (BA, B.Com, BSc, MSc etc)
Graduate/Post graduate-Professional (eg. BE, MBBS, MBA, CA, MCA etc)
Occupation:
Student House wife Govt. Private Professional
Businessman Workman/technician Others
Monthly Family Income:
Upto 2000 2001-4000 4001-6000 6001-10000
10001-15000 Above 15000
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