OVERVIEW:1. FACTS ABOUT COMPANIES2. POSITIONING OF THE BRAND3. COMPETITIVE FORCES & COMPETITOR’S STRATEGY4. REASON FOR SUCCESS AND ADVANTAGE INDIA FACTOR5. STOCK PERFORMANCE OF TIMEX6. FAILURE REASONS AFTER 20007. SUGGESTIONS FOR TIMEX
FACTS ABOUT TIMEX:• Timex Group designs, manufactures and markets innovative timepiecesand jewelry globally. Timex, founded in 1854, has expanded to becomeTimex Group with 25% market share in India currently.
FACTS ABOUT TIMEX:• For over 150 years, it provides innovative, well-designed and reliabletimepieces with styles among its Fashion, Sports and Outdoor lines andhas sold more than one-billion watches.• One of the largest watch makers in the world, the Timex Groupcompanies market global brands including Timex, Versace, Valentino,Salvatore Ferragamo, Guess, GC, Vincent Berard, Versus, TX, MarcEcko, Nautica and Opex.• Timex having 5,000 employees, sold in more than 100 countries and ithas manufacturing and distribution facilities in 20 countries.• Timex manufactures GPS enabled watches, heart rate monitorexercise watches and similar high tech devices
FACTS ABOUT TITAN:• Titan Industries is the worlds sixth largest wrist watchmanufacturer and Indias leading producer of watches undervarious famous brand names with 65% market share in Indiacurrently.• Founded in 1987 with H/Q in Hosur.• Joint venture between Tata Group, and the Tamil NaduIndustrial Development Corporation (TIDCO).• Portfolio includes watches, accessories and jewellery, in bothcontemporary and traditional designs.
FACTS ABOUT TITAN:• Titan formed a joint venture with Timex, which lasted until1998• Titan Industries has claimed to have manufactured the worldsslimmest wrist watch - Titan Edge• Precision Engineering Division of Titan was started in 2002. Ithas become one of the leading manufacturers of Precision Partsfor Automotive and Aerospace Industries.• Tanishq is currently the most prominent jewellery brand ofIndia. The name Tanishq has been formed by combining "Ta"(the first two letters of Tata) and "Nishk or Nishkh" (meaninggold coin or necklace in Sanskrit).
FACTS ABOUT CASIO COMPUTERS:• Casio Computer Co., Ltd is a multinational electronic devicesmanufacturing company founded in 1946
FACTS ABOUT CASIO COMPUTERS:• The firm makes a wide range of electronics for consumers, includingcalculators, mobile phones, digital cameras, portable TVs, watches, andmusical keyboards.• CASIO also manufactures computing and communications devices, likePDAs and electronic cash registers.• Casio was launched officially in India with a Joint Venture Companywith Bharti Telecom Ltd., India with 40% equity share, Mitsui & Co., Ltd,Japan, with 9% equity share and Casio Computer Co., Ltd a major 51%equity share on first of February 1996 to manufacture and market CasioBrand Radio Pagers in India.
FACTS ABOUT SEIKO HOLDINGS:• Seiko Holdings Corporation, more commonly known simply asSeiko• The company started in 1881. The first watches produced underthe Seiko brand appeared in 1924.
FACTS ABOUT SEIKO HOLDINGS:• Manufactures Watches, clocks, printers, semi conductors, mecha-tronics devices, machine tools, optical glass materials, jewellery, eyeglasses.• Seiko is also the official timer of many major sporting events AND Various Seiko watches were worn by the cinematic James Bond 007 in four films.
FACTS ABOUT SWATCH:• In 1982, Swatch was conceived and it was introduced to themarket in Switzerland in March 1983.• From the original cult plastic watches, Swatch has diversifiedits offerings considerably, including:1. Metal-bodied watches (the Irony series)2. Diving watches (the Scuba series)3. Thin and flat bodied watches (the Skin family)4. Internet-connected watch that can download stock quotes,news headlines, weather reports, and other data (the Paparazziseries).
POSITIONING:Companies tried to use this:1.Positioning in terms of sales - Tie up with TITAN2.Positioning in terms of price - Low due to tie-up3.Positioning in terms of availability - easily available4.Positioning in terms of variety, suiting to needs5.Positioning in terms of value for money6.Positioning in terms of tradition / culture / situation7.Positioning in terms of brand building – marriage of fashion &technology.
COMPETITIVE FORCES AND STRATEGYFirm:• Timex: Became a major brand after tie-up with Titan•Second largest Selling Watch group in India (third largestmarket across the globe)• Easily available (transportation) and affordable• Variety was available according to customer needs• Large sales implied more growth for the company• Theme music of Titan-Timex added the charm to the productthan anyone else.• Currently has 59 time factory stores.
COMPETITIVE FORCES AND STRATEGYCompetitors:1.Had 3 competitors in watches area: Seiko, Swatch & Casio .2.Post breakup, Titan gave tight competition.3.Swatch stresses more on quality and longevity.4.Casio laid more stress on other electronic items.5.Seiko had not much presence in the Indian market.
COMPETITIVE FORCES AND STRATEGYNew Market Entry: The threat by Titan / SwatchDifferentiated market by Sonata and attacked mid price segmentaccording to customer choices.FastTrack targets the youth and Dash, to the children’s segment.Titan Steel for trendy urban youth / Titan Raga for working women.Nebula: Premium watch segment priced above 6000.Swatch focused more on style, dependability and quality.New Market Exit:Entry was not tough for the manufacturers, but after huge investment,exit was not easy- HMT.
COMPETITIVE FORCES AND STRATEGYSubstitute Products:Mobile Phones, Digital Music Players.Target Customer:Income and class: Middle class and the rich of citiesNiche market: Teenagers, Adventurous, SportsmenOccupation: Businessmen, Professionals
REASON FOR INITIAL SUCCESS:Variety of Products:• Various options were available: formal-> casual- diff. price ranges• Strengthened position with proper marketing and distributioninfrastructure.• Competitively priced and better after sales service.
REASON FOR INITIAL SUCCESS:Distribution and Sales Infrastructure:• Had a strong sales and distribution network, back by brilliant after salesservice (main strength).• Opened branded showrooms and better distribution network.Distribution System Improvement:•TWL has a network of 300 direct sales dealers, 20 exclusive showrooms,70 non-traditional outlets and 4000 retail outlets. Choice moving from single-brand shops to multi-brand shops.•The products are sold through big size retail stores & branded stores inbig towns and small retail outlets in smaller towns.
REASON FOR INITIAL SUCCESS:Innovation:• Invented and launched electroluminescent tech in 1992- INDIGLO }1.Timex Datalink2.Timex Heart Rate Monitor3.Timex Speed & Distance GPS Watch for their high-tech features4.Timex Digital Compass5.Timex MP36.Timex Internet Messenger
REASON FOR INITIAL SUCCESS:Brand Building Activity:• Superbrands Council adjudged TIMEX as a Super brand in India. Timexhas been chosen from among 711 consumer brands that were evaluatedunder 98 different categories to identify the strongest brands in India. It isone of only two watch brands selected.• Took initiatives for creating a good brand image. TWL’s policy is to spendon advertisement from their cash flow; since the funds are limited theycome up with innovative ideas to build the brand without spending toomuch on the same.1.Adopting a strategy of multi-branding covering the entire marketsegment.2.Signed the Australian cricketer, Brett Lee, as brand ambassador.
REASON FOR INITIAL SUCCESS:Marketing Strategy:•In a new marketing initiative, Timex Watches is placing a series of nextgeneration jukeboxes at fashionable outlets where the youth throng suchas Pizza Hut, and Café Coffee Day outlets.•The high-tech jukeboxes called "Qjam"s, have a database of thousands oftracks, which users can choose by genre, artist, album, mood, new releasesand top numbers through a touch-screen menu.
ADVANTAGE INDIA FOR TIMEX:Leveraging India as manufacturing hub:Timex Watches Limited is acting as an outsourcing hub for Timex WatchBV (an arm of Timex USA). TWL is exporting watches in small numbersto markets such as the US, Mexico and West Asia.Offering shared services:•TWL is offering taxing services for Timex global.•Knowledge management – TWL has a person who is gatheringinformation across Timex global and sharing the same from India.•Treasury – TWL has a person coordinating collections from retail outletsworldwide.
ADVANTAGE INDIA FOR TIMEX:Future plans:•Timex Watches Ltd plans to set up a resource centre at its Noida plantnear Delhi. The centre will carry out back-end operations such as softwaredevelopment and other functions for Timex USA.•Timex also strengthened its retail coverage. It has increased the numberof Timex shop-in-shops within premium retail outlets across the countryfrom 70 to 300 by 2005, with an investment of about US$ 1 million. Morestrengthening of its distribution network would provide it with a betterpositioning in the domestic watch market.•TWL is planning to have the design and engineering group to come toIndia.
FAILURE REASON FOR TIMEX:• Brand owners failed to position the brand properly. In the initial years, the focus was the volume which diluted the brand and then came the lack of positioning of the brand.• Timex have the age old positioning of " Technology that keeps you ticking". In India, the brand has changed the tagline frequently. At one point of time, the tagline was " Time on your side" . Now the brand comes with the tagline " What next". Constant changes in the positioning statement confused the customer. Timex failed to communicate its core brand values to the consumer.• 2003 saw a rejuvenation in Timex. The company restructured and a new marketing team was in place. But even during that time also the promotions were not upto the mark. Timex also gave importance to the retail push by opening lot of Shop within Shop outlets named Club Timex.
SUGGESTIONS FOR TIMEX:Timex is running a new commercial for the Expedition range which looksgood. But for that range the tagline is " What next".May be the company wants to say to customer that Time moves so doesTimex.•In our humble opinion, Timex should align the brand with its globalpositioning. Timex globally has the tagline of " Be There Now". Since theIndian consumer is aligned to global consumer characteristics, Timex willbenefit by having a global positioning, since watches are considered nowas a fashion accessory.