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A Marketing Analysis of Four Brands of Watches: HMT, Titan, Swatch, TAG Heuer

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Preface: Time is Money. With the advent of new technology, a revolutionary change is occurred in the watch market of India. Previously only a few brands were ruling the market. However with the …

Preface: Time is Money. With the advent of new technology, a revolutionary change is occurred in the watch market of India. Previously only a few brands were ruling the market. However with the passage of time and with the opening of free trade, there is no dearth of various national and international brands in the market. A few years ago, people used to buy watch, only to check time. However, now they buy not only to check time but also for fashion.
In the present report an attempt has been made to analyze the four brands of the watch namely, HMT and Titan of India and Swatch and Tag Heuer of Switzerland. SWOT analyses of the each brand are presented in evaluating their prospect in Indian market.
The first chapter deals with HMT, one of the national brands of India. In the second chapter, various aspects of Titan, the market leader of India are presented. Third and fourth chapters deal with international brands, Swatch and Tag Heuer respectively. Emphasis is given particularly to analyze the advertisements of each brand, identifying what marketers are trying to achieve. At the end, conclusions are drawn in chapter five summarizing various critical aspects.

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  • 1. A Marketing Analysis of Four Brands of Watches [HMT, Titan, Swatch, TAG Heuer] Asokendu Samanta (SMSID 104118) Lalitha Devi (SMSID 103601) B. Narayanan (SMSID 103566) Group No 22, PGCBM 15, Powai, Mumbai 23 March 2009
  • 2. A Marketing Analysis of Four Brands of Watches 1About The AuthorsAsokendu Samanta obtained Doctorate of Philosophy in Engineeringfrom Indian Institute of Technology (IIT), Kharagpur. He worked as aPost-doctoral Research Fellow at the Robert Gordon University,United Kingdom. He is presently the Head of the Department ofStructure in the Research and Development Division of IndianRegister of Shipping, Mumbai. He is also a Visiting Faculty of OceanEducation and Research Centre, Mumbai and a Reviewer of anInternational Journal. He has several publications in various foreignjournals.[Email: asokendu@hotmail.com]Lalitha Devi graduated in Engineering from National Institute ofTechnology (NIT), Warangal. She is associated with TATAcommunications for last three and a half years and presently workingas Network Planner.[Email: slalitha.devi@gmail.com]B. Narayanan graduated in Mechanical Engineering. He is presentlyassociated with ITC Group in Mumbai.[Email: brnarayanan@rediffmail.com]
  • 3. A Marketing Analysis of Four Brands of Watches 2Preface Time is Money. With the advent of new technology, a revolutionary change is occurred inthe watch market of India. Previously only a few brands were ruling the market. However withthe passage of time and with the opening of free trade, there is no dearth of various national andinternational brands in the market. A few years ago, people used to buy watch, only to checktime. However, now they buy not only to check time but also for fashion. In the present report an attempt has been made to analyze the four brands of the watchnamely, HMT and Titan of India and Swatch and Tag Heuer of Switzerland. SWOT analyses ofthe each brand are presented in evaluating their prospect in Indian market. The first chapter deals with HMT, one of the national brands of India. In the secondchapter, various aspects of Titan, the market leader of India are presented. Third and fourthchapters deal with international brands, Swatch and Tag Heuer respectively. Emphasis is givenparticularly to analyze the advertisements of each brand, identifying what marketers are trying toachieve. At the end, conclusions are drawn in chapter five summarizing various critical aspects.Key WordsAdvertisement, Attribute, Current behavior, HMT, Macro environment, Micro environment,Positioning, Swatch, SWOT analysis, Tag Heuer, Titan.
  • 4. A Marketing Analysis of Four Brands of Watches 3ContentsAbout the Authors 1Preface 2Chapter 1 HMT of India 4-9 1.1 History 4 1.2 Current Behavior 4 1.3 Marketing Environment 5 1.4 Advertisement 9 1.5 Positioning 9Chapter 2 Titan of India 10-16 2.1 History 10 2.2 Current Behavior 10 2.3 Marketing Environment 12 2.4 Advertisement 15 2.5 Positioning 15Chapter 3 Swatch of Switzerland 17-22 3.1 History 17 3.2 Current Behavior 18 3.3 Marketing Environment 18 3.4 Advertisement 22 3.5 Positioning 22Chapter 4 Tag Heuer of Switzerland 23-28 4.1 History 23 4.2 Current Behavior 23 4.3 Marketing Environment 24 4.4 Advertisement 27 4.5 Positioning 28Chapter 5 Conclusions 29
  • 5. A Marketing Analysis of Four Brands of Watches 4 Chapter ONE HMT OF INDIA1.1 HISTORY E stablished by the Government of India in 1953 as a Machine Tool manufacturing company. Later it diversified into Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting & Plastic Processing Machinery, CNC Systems and Bearings. It has collaborations with world-renowned manufacturing company. Atpresent, HMT comprises six subsidiaries under the ambit of a Holding Company.1.2 CURRENT BEHAVIORIt launched with watches like Janata, Sona, Pilot, Tarun, Nutan, Jawhar, Automatic Day and Date,Priya, Chinar, Nishat, Rakhee, Avinash and Kohinoor. To capture the growing urban market for
  • 6. A Marketing Analysis of Four Brands of Watches 5fashionable watches, two new brands viz., `Ramani for gents and `Utsav for ladies werelaunched.The company has introduced 350 range of Citizen watches in Mumbai - Citizen Watches (India)Limited, is a joint venture between the Citizen Watch Company, Japan which holds a 51 percent stake and Doshi Time Industries holding 49 per cent stake.In the recent series of quartz watches it has following ranges  Elegance  Roman – Only for men  Utsav – The well dressed watch  Sangam -Absolutely Modern, Absolutely Indian  Lalit -Value for Money, For those who value Money  Pace -For cute faces  Swarna - Good as Gold  Shreyas - Sign of Good Times  Chandan- The fragrance watch  Braille -A gift of time to the blind  Rajat - Automatic watchAnd also customized watches for Institutions1.3 MARKETING ENVIRONMENTThe marketing environment of a brand consists both macro and micro environment. Macroenviron are Political, Economic, Socio cultural and Technical. Micro involves Competition,buying behavior, supplying behavior, communication and internal. Marketing environment ofHMT is given below.Political: HMT has the government support.Internal: Once the market leader in mechanical watches, HMT has lost its images mainly due tobad work culture. Some of the authorized retailers started acting as wholesaler and HMT lostcontrol over final consumer price.External: Titan, Swatch, Timex are the very strong competitors. HMT doses not have good aftersales service.Customer: HMT could not change its product as the preference of the customers which changedover time.The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below(also in Table 1.1).
  • 7. A Marketing Analysis of Four Brands of Watches 61.3.1 StrengthMechanical Watches: HMT is the market leader in mechanical watches (Fig 1.1), which serves tothe lower segment of the society.Brand Image: HMT has a very strong brand image. It has quality of reliability.Production and Training Facility: It has got a very good training facility (Collaboration withCitizen Japan for formal training).Industrial Relation: Company has a very good industrial relation. It has never encountered anykind of labor problem.Adequate Asset: It has got vast land, building and machinery.Government Support: The Company has government support.High Capacity: In-house capacity to manufacture 60 lakh dials, 26 lakh cases annually (2002-2003) Fig 1.1 HMT was the market leader in mechanical watches [Source: http://picasaweb.google.com/bernard.fruga]1.3.2 WeaknessR&D Design: No emphasis and attention to aesthetics and design.
  • 8. A Marketing Analysis of Four Brands of Watches 7Retailer Policy: No control over retailers. Some of the authorized retailers started acting as wholesellers.Weak Organizational Culture: Lack of team sprit and awareness. Inadequate motivationalstrategies/ reward / punishment.Trade Audits: No regular trade audits was being carried out by the company to check what wasactually happening in the market.Advertisement: Inadequate advertisement, promotion, sponsors. It failed to communicate theuniqueness of HMT quartz design.Centralized Decision: The decisions on campaigns for specific products were delayed leading tothe time lag and response to market change.1.3.3 OpportunitiesDiversification of Product: Apart from mechanical watches, HMT can focus on anadigi, digiana,multifunction, digital stopwatch, alarm etc.Export: Export market can be tapped.Market Segmentation: It can expand, launching product suitable for different customers profileand could promote different watches for different moods (eg., formal, casual etc.)Sales Network: HMT could have collaborated with some of the good retailers of different brandswith big distribution networks to display and sell some newly launched models (jewel watchesetc.)Innovative Product: Hire good designers to design new models of the watches based on customerpreferences combining technology and aesthetic appeal together to enhance the experience.Market Survey: It can do proper market survey before launching any product. They may take anyhelp of specialist in this regard.Retail Store: Renovate the retail stores to attract the customer in a convincing environment.1.3.4 ThreatsCompetitor: Titan, Timex, Citizen Swatch etc are the biggest threats.Model: Many luxury and varieties of watches are competing in the market nowadays.Spurious Operators: People who indulge in fraudulent activities, misusing the brand name.Old Fashion Design: HMT’s product is quite old fashioned when other brands are manufacturinginnovative and attractive products.
  • 9. A Marketing Analysis of Four Brands of Watches 8 Table 1.1 SWOT Analysis of HMT in tabular formParameter Variable Threat/ Controllable Implication Strength/ Opportunity / Uncon WeaknessProduct Variety Threat UC Competitors have better Weakness product lines Technology Opp UC HMT Image in Strength mechanical watch Aesthetic Threat UC Focus on quality StrengthFunctioning Diversification Opp C Do market survey, Strength of Product employ skilled labor, (digital, colors, acquire machine waterproof, etc.) Key system Threat C Increase warranty Strength period, and service station Straps wear and Threat C Increase warranty Strength tear period, and service station Battery Threat C Increase service station Strength and give facility to replace easilyUtility VAT Threat UC Competition Threat Titan, Timex are well Weakness aheadDemand Recession Threat UC Give attractive offers, Strength discount, exchange offer Advertisement Opp C Strategically position Strength bill board, slogan Agreement with Opp C Maintain good Strength Retailer relationship with retailer to promote the product Replica watch Threat UC Increase awareness Strength among customersAcceptance Political support Opp Utilize the support from Strength(Macro) government Unions Opp Good relation, give Strength incentives, rewards, recognition, proper working conditionAcceptance Status Threat UC Prepare brand image Strength(Micro)
  • 10. A Marketing Analysis of Four Brands of Watches 91.4 ADVERTISEMENT Fig 1.2 An advertisement of HMT watch [Source: http://members.iinet.net.au/~gumby1/something_different/something_different.html]Observing the advertisement it can be mentioned that HMT is trying to capture middle and lowersegment of the market. ‘Nation’ and ‘Janata’ these two words give this indication.1.5 POSITIONING OF THE BRANDNearly twenty to twenty five years back HMT was a very good brand name in Indian market. Itreached to the position of credence attribute. However, now it has gone back to the convenienceattribute. Marketing Ability Low Uncertainty High Uncertainty Low difference between brands Convenience Credence Attribute Attributes Marketing Force (HMT) PUSH PULL difference between brands Search Experience Attributes Attributes High Fig 1.3 Present position of HMT in the matrix
  • 11. A Marketing Analysis of Four Brands of Watches 10 Chapter TWO TITAN OF INDIA2.1 HISTORY T itan watch division was started in 1987. It is a joint venture between one of Indias most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO). It is the world’s fifth largest and India’s leading manufacturer of watches. At launch it was the third watch companyin India after HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until1998, and setup a strong distribution network across India. Titan Industries has claimed to havemanufactured the worlds slimmest wrist watch - Titan Edge. Produced indigenously after fouryears of research and development, the Titan Edge has a total slimness of just 3.5 mm and a waferthin movement of 1.15 mm.2.2 CURRENT BEHAVIORTitan has different ranges of watches from different tastes and styles.
  • 12. A Marketing Analysis of Four Brands of Watches 11After carrying out an in-depth market study, Titan identified three distinct market segments for itswatches. These segments are determined based on benefit and income level.High Income Segment: This is for high income/ elite consumers who buy watch as a fashionaccessory not as a mere instrument showing time. They are also willing to buy a watch onimpulse. The price tag does not matter to them. Titan offered Aurum and Royale in the gold /jewellery watch range. The prices are between Rs. 20,000 and Rs. 1 lakh.Medium Income Segment: These consumers prefer some fashion in their watches but to themprice does matter. While they have the capacity to pay the price required for a good watch, theywill not purchase a watch without comparing various offers in the market. For this segment, Titanoffered the Exacta range in stainless steel, aimed at withstanding the rigors of daily life. The pricerange is Rs. 500-700. Titan also offered the RAGA range for women in this segment.Low Income Segment: The third segment consists of the lower-income consumers who see awatch mainly as a time-keeping device and buy mainly on the basis of price. Titan first offeredthe TIMEX watches and later, when the arrangement with Timex was terminated, it offered theSONATA range. The price range was Rs. 350-500.Titan collections and customer and price based segmentation:  FAST TRACK: Category aimed at Youth. A collection of watches will contemporary styles that are young and distinctive. Price: Rs.550-1,430.  EXACTA: Category aimed at Lower Middle Class (Office Wear). A perfect combination of dateless styling and design simplicity. Price: Rs.595-1,140  SPECTRA: Category aimed at: Common Class. A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. Price: Rs.650-1830  ROYALE: Category aimed at Upper Middle Class. A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps. Price: Rs.960-2,830.  RAGA: Category aimed at Upper Class. Exclusive watches for women. It is elegant, delicate and feminine with each piece being truly. Unique. Price: Rs.1,420-4,000.  BANDHAN: Category aimed at: Couples. Watches for him and her. Price: Rs.1,675- 8,085.  REGALIA: Category aimed at: Upper Middle Class – Upper Class. Magic in gold and unique futuristic material. Price: Rs.1725-7770  EDGE: Category aimed at business class. The Titan EDGE is the Slimmest Watch in the Universe. Price: Rs. 4,500-5,200  Nebula: Category aimed at: Upper Class a range of watches crafted from solid gold embellished with precious stones. Price: 10,000-45,000
  • 13. A Marketing Analysis of Four Brands of Watches 122.3 MARKETING ENVIRONMENTTitan has the following marketing environment.Political: Tata group being is one of the respected groups in India, Titan has the governmentsupport.Internal: Being owned by Tata group, it has a good ‘Tata’ culture. They take care theiremployees.External: Titan is the market leader in the watch market of India.Customer: Titan invests a good amount of money for their research and new innovation. As suchthey keep on changing their model as per the taste and preference of customers.The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below(also in Table 2.1).2.3.1 StrengthLeading Manufacturer: Titan Industries is the worlds fifth largest and Indias leadingmanufacturer of watches.Customer Base: The company has manufactured more than a 100 million watches till date; andhas a customer base of over 80 million.Market Share: The Titan portfolio has over 60% of the domestic market share in the organizedwatch market. The company has 247 exclusive showrooms christened World of Titan, making itamongst the largest chains in its category backed by 700 after-sales-service centers.World Class Design Studio: The Company has a world-class design studio that constantly inventsnew trends in wrist watches.Wide Choice in Style: Titan decided to inundate consumers with a wide choice in style, functionsand price (Fig 2.1). The initial range was 350 models.Retailer: Titan brought in the concept of retailing into the watch market, established a network offine showrooms, which would later become the worlds largest network of exclusive watch stores.Advertising: Titan saw this as a vital investment. Right from begining Titan invested significantlyin advertising and in that process created a set of memorable and effective properties over theyears.Brand Ambassadors: Titan engaged major celebrities like Amir Khan (Fig 2.2), Kapil dev asBrand ambassadors for its Titan range.
  • 14. A Marketing Analysis of Four Brands of Watches 13 Fig 2.1 Variety is the strength of Titan2.3.2 WeaknessWaterproof: Waterproof watches are not in the portfolio of the Titan.Raw Material: Non-availability of cheaper raw materials from domestic sources.Market Segmentation: Titan has not focused in the lower segment of India in rural area which iscontributing about 40% of the share of Indian volume.2.3.3 OpportunitiesScope in Jewellery Market: Importance of jewellery to Indian consumers.Extend the Brand: Titan has a scope to capture in feminine accessories.Exchange Business: Titan may enter into exchange market.
  • 15. A Marketing Analysis of Four Brands of Watches 142.3.4 ThreatsCompetitor: Citizen, Swatch, Rolex, Tag Heuer etc are the biggest threats.Raw Material: Raw material cost is said to be high because of high import duties.Fashion Change: Changing trends in fashion Table 2.1 SWOT analysis of Titan in tabular form Parameter Variable Threat/ Controllable Implication Strength/ Opportunity / Uncon Weakness Product Variety Opp C New innovation Strength Technology Opp Titan image Strength Aesthetic Opp C Wide variety exist Strength Functioning Diversification of Opp C Do market survey, Strength Product (digital, Employ skilled labor, waterproof etc.) acquire machine Straps wear and Threat C Increase warranty Strength tear period, and service station Battery Threat C Increase service station Strength and give facility to replace easily Utility VAT Threat UC Competition Threat C Brand image Strength Demand Recession Threat UC Give attractive offers, Strength discount, exchange offer Advertisement Opp C Strategically poisoned Strength your bill board, slogan Agreement with Opp C Maintain good Strength Retailer relationship with retailer to promote the product Spurious watch Threat UC Increase awareness Strength among customers Brand Opp C Utilize the brand image Strength ambassador of famous celebrities (actors, sport person) Acceptance Political support Opp Utilize the support from Strength (Macro) government Unions Opp Good relation, give Strength incentives, rewards, recognition, proper working condition Acceptance Status Opp C Brand image Strength (Micro)
  • 16. A Marketing Analysis of Four Brands of Watches 152.4 ADVERTISEMENT Fig. 2.2 Actor Amir Khan is the brand ambassador of Titan [Source: official website of Titan, http://www.titanworld.com]Advertisement gives an indication how the product is positioned. The result of positioning is thesuccessful creation of a customer focused value proposition, a cogent reason why the targetmarket should buy the product. Observing the advertisement it can be mentioned that Titan istrying to capture middle and higher segment of the market using actor Amir Khan as brandambassador.2.5 POSITIONING OF THE BRANDTitan has placed its position as emotional positioning based on role model (see the Fig. 2.2 whereBollywood actor Amir Khan is shown). On the matrix it will be credence attributes as it hasalready created a value proposition in the mind of customer.
  • 17. A Marketing Analysis of Four Brands of Watches 16 Marketing Ability Low Uncertainty High Uncertainty Low difference between brands Convenience Credence Attribute AttributesMarketing Force (TITAN) PUSH PULL difference between brands Search Experience Attributes Attributes High Fig 2.3 Present position of Titan in the matrix
  • 18. A Marketing Analysis of Four Brands of Watches 17 Chapter THREE SWATCH OF SWITZERLAND3.1 HISTORY S watch brand was launched in 1983 and was originally intended to re-capture entry- level market share lost by Swiss manufacturers during the aggressive growth of Japanese companies such as Seiko in the 1960s and 1970. Swatch overcame crisis and led to the survival of the Swiss watch industry re-popularizing analog watches ata time when digital watches had achieved wide popularity.
  • 19. A Marketing Analysis of Four Brands of Watches 183.2 CURRENT BEHAVIORSwatch has identified and segmented the market based on customers, different age groups, tastes,preferences with wide ranges and styles of watches with different prices targeting the teens andyouth with collections like Legendry Eagle, Under Sea Screen. For adults, their collection isCasse cou for Men and middle aged elders and senior citizens. They positioned their productsuitable for various moods and segments to compete in highly competitive market so that theywill be able to defend against competitive attacks and emerge as the segment leader.The Swatch latest collections launched as below.Different models targeting different age segments  Watches for HIM- Targeting men  Watches for Her –Targeting womenFor Special events  Mother day collections  Valentine day  Christmas specials  Spring summer collections 2009  New year 2009  Bijoux collectionsSwatch Strategies: Swatch gives exchange and replace offer by allowing the customer to givetheir old watches which he is using for quiet long or which is not working with new swatchwatches. They also started educating the customer between real and replica watches so that theycan differentiate and buy the watches wisely.3.3 MARKETING ENVIRONMENTSwatch has the following marketing environment.Political: Being foreign watch maker they did not have access in Indian market until free trade isannounced. Joint venture with some Indian company may be beneficial in marketing in Indiamaintaining all policies of Indian government.Internal: Manufacturing cost is high compared to other Asian watch manufacturing company.External: Swatch being the Swiss watch has a brand name in the market.Customer: Mainly targeted for youth.The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below(also in Table 3.1).
  • 20. A Marketing Analysis of Four Brands of Watches 193.3.1 StrengthBold New Styling: The launch of the new Swatch brand in 1983 was marked by bold new styling,various fashion and art designs (Fig 3.1).High Technology: The Swatch watches were high-tech, highly branded and fully accurate.Varity of Products: Produce three main products: luxury, high value designer Swiss watches andmid-range watches made out of stainless steel, silver and gold to appeal to affluent customers.Effective Marketing Strategy: The Company uses effective marketing strategy by satisfying itstarget market well.Repositioning into the Fashion Market: Swatch positioned the product targeting various segmentsof market by using different materials, appearances, designs.Price: A wide range of products with different designs across all price ranges. Fig. 3.1 Swatch has the variety, style and design mainly targeted to youth [Source: official website of swatch, http://www.swatch.com/]
  • 21. A Marketing Analysis of Four Brands of Watches 203.3.2 WeaknessWeak Employee Productivity: They have a very less number of employees.3.3.3 OpportunitiesCreative and Innovative Brands: Swatch should continue their performance and work and involvevigorously in R&D about marketing environment adjusting marketing strategy timely, becomecreative and innovative brand in global market.Image: Swatch can establish a strong image in the mind of customer. As people carry watch ontheir skin for a long time, it has to fit with their personal style and lifestyle best.3.3.4 ThreatsManaging Manufacturing Cost: It has to compete with cheap labor cost at Asian market when ithas its own constraints of high value cost at Switzerland.Counterfeit Products: It is a serious threat to swatch.Competition: Intense competition between different companies (Tag Heur, Citizen, Casio, Titanetc) within a crowed market. Table 3.1 SWOT analysis of Swatch in tabular form Parameter Variable Threat/ Controllable Implication Strength/ Opportunity / Uncon Weakness Product Variety Opp C New innovation Strength Technology Opp Swiss brand image Strength Aesthetic Opp C Wide variety exist Strength Functioning Diversification Opp C Do market survey, Strength of Product Employ more skilled (digital, labor waterproof etc.) Straps wear and Threat C Increase warranty Strength tear period, and service station Battery Threat C Increase service station Strength and give facility to replace easily Utility VAT, Import Threat UC Weakness duty Other brands Threat Brand image Strength Manufacturing Threat UC Weakness cost Demand Recession Threat UC Give attractive offers, Strength discount, exchange offer
  • 22. A Marketing Analysis of Four Brands of Watches 21 Advertisement Opp C Strategically position Strength bill board, slogan Agreement with Opp C Maintain good Strength Retailer relationship with retailer to promote the product Counterfeit Threat UC Increase awareness Strength Products among customers Brand Opp C Utilize the brand image Strength ambassador of famous celebrities (actors, sport person) Acceptance Political support Threat Maintain government Strength (Macro) policy Unions Threat UC Good relation, give Strength incentives, rewards, recognition, proper working condition Patriotic feeling Threat UC Indian brand like Titan Weakness have advantages to Indian customer Acceptance Status Opp C Brand image Strength (Micro)3.4 ADVERTISEMENT Fig 3.2 Exuberance of youths is displayed in the advertisement of Swatch [Source: official website of swatch, http://www.swatch.com/]Swatch’s advertisement is targeted to the youth as it is displayed in Fig. 3.2.
  • 23. A Marketing Analysis of Four Brands of Watches 223.5 POSITIONING OF THE BRANDSwatch’s position in the matrix will be experience attributes (Fig. 3.3). Marketing Ability Low Uncertainty High Uncertainty Low difference between brands Convenience Credence Marketing Force Attribute Attributes PUSH PULL High difference between brands Search Experience Attributes Attributes (SWATCH) Fig 3.3 Present position of Titan in the matrix
  • 24. A Marketing Analysis of Four Brands of Watches 23 Chapter FOUR TAG HEUER OF SWITZERLAND4.1 HISTORY F ounded in 1860 by Edouard Heuer, TAG Heuer is known for producing high-end luxury timepieces. It is world famous for making chronograph which is a timepiece or watch with both timekeeping and stopwatch functions. Tag Heuer, in keeping with its image as a luxury brand with an innovative spirit, has long standing links with theworld of sport and Hollywood and has been the official timekeeper of the Olympic Games, theSkiing World Championships and the Formula 1 World Championship.4.2 CURRENT BEHAVIORTag Heuer, in a constant quest for innovation, excellence, performance and prestige, continues toaim ever higher, as reflected in its partnerships with team Vodafone McLaren Mercedes inFormula 1. By endorsing 2007 F1 Champion Kimi Raikkonen of Ferrari, 2008 F1 championLewis Hamilton of McLaren Mercedes, world number 1 golfer Tiger Woods, WTA star tennis
  • 25. A Marketing Analysis of Four Brands of Watches 24player Maria Sharapova, NASCAR idol Jeff Gordon, Hollywood superstars Brad Pitt and UmaThurman and Bollywood icons Shah Rukh Khan and Priyanka Chopra, TAG Heuer epitomizesSport and Glamour.Tag Heuer Market segmentation  Targeting sports persons.  High profile customers.  High Income group  Celebrities4.3 MARKETING ENVIRONMENTTag Heuer has the following marketing environment.Political: Tag Heuer is a foreign company. As such it has to follow all the rules and regulation ofIndian government for importing the watches.Internal: Manufacturing cost is high compared to other Asian watch manufacturing company.External: Tag Heuer has a very high brand name particularly in sports watch and chronographs.Customer: Mainly targeted for sports player and glamorous people.The SWOT analysis of Tag Heuer in form of Strength, Weakness, Opportunity and Threat aregiven below (also in Table 4.1).4.3.1 StrengthLong history and Brand Image: Tag Heur has a long history and very good brand image beingestablished way back in 1860. Fig 4.1 Tag Heuer is world famous for making chronographs
  • 26. A Marketing Analysis of Four Brands of Watches 25Chronographs: It has almost monopoly in chronographs (which is a timepiece or watch with bothtimekeeping and stopwatch functions) sector (Fig.1). It innovated worlds first automaticchronographs in 1969.Brand Ambassadors: Tag Heuer engaged major celebrities like Tiger Woods (golfer), LeonardoDicaprio (Actor), Maria Sharapova (Tenis Player), Lewis Hamilton (Formula One Racer) asBrand ambassadors for its products.4.3.2 WeaknessSegment Targets: It targeted mainly on the upper segment of the Market (Hollowood, Bollwood,renowned sports persons etc.)4.3.3 OpportunitiesOther Segments: It has vast opportunity to capture middle and lower segments of the society.4.3.4 ThreatsManufacturing Cost: It has to compete with cheap labor cost at Asian market when it has its ownconstraints of high value cost at Switzerland.Counterfeit Products: It is a serious threat to swatch.Competition: Intense competition between different companies of quartz (Titan etc) and digital(Citizen, Casio etc) within a crowed market.
  • 27. A Marketing Analysis of Four Brands of Watches 26 Table 4.1 SWAT Analysis of Tag HeuerParameter Variable Threat/ Controllable Implication Strength/ Opportunity / Uncon WeaknessProduct Variety Opp C New innovation Strength Technology Opp Swiss brand image Strength Aesthetic Opp C Wide variety exist StrengthFunctioning Diversification Opp C Do market survey, Strength of Product employ skilled labor, invent new technology Straps wear and Threat C Increase warranty Strength tear period, and service station Battery Threat C Increase service station Strength and give facility to replace easilyUtility VAT, Import Threat UC Weakness duty Competition Threat C Brand image Strength Manufacturing Threat UC Weakness costDemand Price Threat UC Brand image Strength Recession Threat UC Give attractive offers, Strength discount, exchange offer Advertisement Opp C Strategically position Strength bill board, slogan, advertisement in television Agreement with Opp C Maintain good Strength Retailer relationship with retailer to promote the product Counterfeit Threat UC Increase awareness Strength Products among customers Brand Opp C Utilize the brand image Strength ambassador of famous celebrities (actors, sport person)Acceptance Political support Threat Maintain government Strength(Macro) policy Unions Threat UC Good relation, give Strength incentives, rewards, recognition, proper working condition Patriotic feeling Threat UC WeaknessAcceptance Status Opp C Brand image Strength(Micro)
  • 28. A Marketing Analysis of Four Brands of Watches 274.4 ADVERTISEMENT Fig 4.2 Renowned actor Leonardo Dicaprio in the advertisement of Tag Heuer (Source: official web site of Tag Heuer, http://www.tagheuer.com/) Fig 4.3 International Tennis player Maria Sharapova in the advertisement of Tag Heuer (Source: official web site of Tag Heuer, http://www.tagheuer.com/)
  • 29. A Marketing Analysis of Four Brands of Watches 28Tag Heuer has positioned itself as a true luxury sports watch brand. Many of the big names, likeTiger Woods (golfer), Leonardo Dicaprio (Actor), Maria Sharapova (Tenis Player), LewisHamilton (Formula 1 Racer), Shaharukh Khan (Actor) are the brand ambassador of tag Heuer.4.5 POSITIONING OF THE BRANDTag Heuer managed to position itself as emotional attribute with role models like Sharukh Khan,Priyanka Chopra, Tiger Wood, Maria Sharapova and many more sports personalities. Customerblindly goes for their products which their favorite and popular models are using.Tag Heuer’s advertisement is role model based, trying to make an emotional positioning. In thematrix its position is credence attributes (Fig 4.4). Marketing Ability Low Uncertainty High Uncertainty Low difference between brands Convenience Credence Marketing Force Attribute Attributes (TAG HEUER) PUSH PULL High difference between brands Search Experience Attributes Attributes Fig 4.4 Present position of Tag Heuer in the matrix
  • 30. A Marketing Analysis of Four Brands of Watches 29 Chapter FIVE CONCLUSIONS5.1 SUMMARY A marketing analysis of four brands of watches, namely HMT, Titan, Swatch and Tag Heuer are presented in the report. Every brand has some strengths and weakness which has been presented as SWOT analysis form. Marketing environment of each brand is analyzed. At the end, advertisements of each brandare presented and their position in the market is determined. Following points can be summarizedfrom the analysis.i) Once, HMT was pioneer in mechanical watch in India. However in the passage of time, HMT has lost its position as they could not produce the product as per the customer’s changing taste and preferences.ii) Presently Titan is the market leader in Indian market. They have a very good sales and service network. With new innovative ideas they always develop new product to satisfy the customers.iii) Swatch brand was launched originally intended to re-capture entry-level market share lost by Swiss manufacturers during the aggressive growth of Japanese companies. It has re- popularized analog watches at a time when digital watches had achieved wide popularity. Its product is mainly targeted to youth.iv) Tag Heuer has a long history, established way back in 1860. It is the pioneer in making chronograph and sports watch. TAG Heuer epitomizes sport and glamour and its product is mainly targeted to glamorous people.
  • 31. A Marketing Analysis of Four Brands of Watches 30References[1] Swiss Shop Duty Free, A brochure collected from Swiss International Airline by author Asokendu Samanta during his journey to Zurich, 2007.[2] Marketing Management, P. Kotler, K. L. Keller, A. Koshy and M. Jha, 13th ed, Prentice Hall, New Delhi, 2009.[3] Marketing Management, R. Saxena, Tata McGraw-Hill, New Delhi, 1997.[4] Class Notes on Principal of Marketing, by Prof. P. Venugopal of XLRI, Jamshedpur, Post Graduate Certificate in Business Management (PGCBM-15), 2009.[5] Official website of HMT, http://www.hmtindia.com[6] Official website of Titan, http://www.titanworld.com[7] Official website of Swatch, http://www.swatch.com[8] Official web site of Tag Heuer, http://www.tagheuer.com

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