2. OVERVIEW:
1. FACTS ABOUT COMPANIES
2. POSITIONING OF THE BRAND
3. COMPETITIVE FORCES & COMPETITOR’S STRATEGY
4. REASON FOR SUCCESS AND ADVANTAGE INDIA FACTOR
5. STOCK PERFORMANCE OF TIMEX
6. FAILURE REASONS AFTER 2000
7. SUGGESTIONS FOR TIMEX
3. FACTS ABOUT TIMEX:
• Timex Group designs, manufactures and markets innovative timepieces
and jewelry globally. Timex, founded in 1854, has expanded to become
Timex Group with 25% market share in India currently.
4. FACTS ABOUT TIMEX:
• For over 150 years, it provides innovative, well-designed and reliable
timepieces with styles among its Fashion, Sports and Outdoor lines and
has sold more than one-billion watches.
• One of the largest watch makers in the world, the Timex Group
companies market global brands including Timex, Versace, Valentino,
Salvatore Ferragamo, Guess, GC, Vincent Berard, Versus, TX, Marc
Ecko, Nautica and Opex.
• Timex having 5,000 employees, sold in more than 100 countries and it
has manufacturing and distribution facilities in 20 countries.
• Timex manufactures GPS enabled watches, heart rate monitor
exercise watches and similar high tech devices
5. FACTS ABOUT TITAN:
• Titan Industries is the world's sixth largest wrist watch
manufacturer and India's leading producer of watches under
various famous brand names with 65% market share in India
currently.
• Founded in 1987 with H/Q in Hosur.
• Joint venture between Tata Group, and the Tamil Nadu
Industrial Development Corporation (TIDCO).
• Portfolio includes watches, accessories and jewellery, in both
contemporary and traditional designs.
6. FACTS ABOUT TITAN:
• Titan formed a joint venture with Timex, which lasted until
1998
• Titan Industries has claimed to have manufactured the world's
slimmest wrist watch - Titan Edge
• Precision Engineering Division of Titan was started in 2002. It
has become one of the leading manufacturers of Precision Parts
for Automotive and Aerospace Industries.
• Tanishq is currently the most prominent jewellery brand of
India. The name Tanishq has been formed by combining "Ta"
(the first two letters of Tata) and "Nishk or Nishkh" (meaning
gold coin or necklace in Sanskrit).
7. FACTS ABOUT CASIO COMPUTERS:
• Casio Computer Co., Ltd is a multinational electronic devices
manufacturing company founded in 1946
8. FACTS ABOUT CASIO COMPUTERS:
• The firm makes a wide range of electronics for consumers, including
calculators, mobile phones, digital cameras, portable TVs, watches, and
musical keyboards.
• CASIO also manufactures computing and communications devices, like
PDAs and electronic cash registers.
• Casio was launched officially in India with a Joint Venture Company
with 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 Casio
Brand Radio Pagers in India.
9. FACTS ABOUT SEIKO HOLDINGS:
• Seiko Holdings Corporation, more commonly known simply as
Seiko
• The company started in 1881. The first watches produced under
the Seiko brand appeared in 1924.
10. 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.
11. FACTS ABOUT SWATCH:
• In 1982, Swatch was conceived and it was introduced to the
market in Switzerland in March 1983.
• From the original cult plastic watches, Swatch has diversified
its 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 Paparazzi
series).
12. POSITIONING:
Companies tried to use this:
1.Positioning in terms of sales - Tie up with TITAN
2.Positioning in terms of price - Low due to tie-up
3.Positioning in terms of availability - easily available
4.Positioning in terms of variety, suiting to needs
5.Positioning in terms of value for money
6.Positioning in terms of tradition / culture / situation
7.Positioning in terms of brand building – marriage of fashion &
technology.
13. COMPETITIVE FORCES AND STRATEGY
NEW MARKET
SUBSTITUTES
ENTRANTS
FIRM COMPETITOR
SUPPLIERS CUSTOMERS
14. COMPETITIVE FORCES AND STRATEGY
Firm:
• Timex: Became a major brand after tie-up with Titan
•Second largest Selling Watch group in India (third largest
market 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 product
than anyone else.
• Currently has 59 time factory stores.
15. COMPETITIVE FORCES AND STRATEGY
Competitors:
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.
16. COMPETITIVE FORCES AND STRATEGY
New Market Entry: The threat by Titan / Swatch
Differentiated market by Sonata and attacked mid price segment
according 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.
17. COMPETITIVE FORCES AND STRATEGY
Substitute Products:
Mobile Phones, Digital Music Players.
Target Customer:
Income and class: Middle class and the rich of cities
Niche market: Teenagers, Adventurous, Sportsmen
Occupation: Businessmen, Professionals
18. REASON FOR INITIAL SUCCESS:
Variety of Products:
• Various options were available: formal-> casual- diff. price ranges
• Strengthened position with proper marketing and distribution
infrastructure.
• Competitively priced and better after sales service.
19. REASON FOR INITIAL SUCCESS:
Distribution and Sales Infrastructure:
• Had a strong sales and distribution network, back by brilliant after sales
service (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 in
big towns and small retail outlets in smaller towns.
20. REASON FOR INITIAL SUCCESS:
Innovation:
• Invented and launched electroluminescent tech in 1992- INDIGLO
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1.Timex Datalink
2.Timex Heart Rate Monitor
3.Timex Speed & Distance GPS Watch for their high-tech features
4.Timex Digital Compass
5.Timex MP3
6.Timex Internet Messenger
21. REASON FOR INITIAL SUCCESS:
Brand Building Activity:
• Superbrands Council adjudged TIMEX as a Super brand in India. Timex
has been chosen from among 711 consumer brands that were evaluated
under 98 different categories to identify the strongest brands in India. It is
one of only two watch brands selected.
• Took initiatives for creating a good brand image. TWL’s policy is to spend
on advertisement from their cash flow; since the funds are limited they
come up with innovative ideas to build the brand without spending too
much on the same.
1.Adopting a strategy of multi-branding covering the entire market
segment.
2.Signed the Australian cricketer, Brett Lee, as brand ambassador.
22. REASON FOR INITIAL SUCCESS:
Marketing Strategy:
•In a new marketing initiative, Timex Watches is placing a series of next
generation jukeboxes at fashionable outlets where the youth throng such
as Pizza Hut, and Café Coffee Day outlets.
•The high-tech jukeboxes called "Qjam"s, have a database of thousands of
tracks, which users can choose by genre, artist, album, mood, new releases
and top numbers through a touch-screen menu.
23. ADVANTAGE INDIA FOR TIMEX:
Leveraging India as manufacturing hub:
Timex Watches Limited is acting as an outsourcing hub for Timex Watch
BV (an arm of Timex USA). TWL is exporting watches in small numbers
to 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 gathering
information across Timex global and sharing the same from India.
•Treasury – TWL has a person coordinating collections from retail outlets
worldwide.
24. ADVANTAGE INDIA FOR TIMEX:
Future plans:
•Timex Watches Ltd plans to set up a resource centre at its Noida plant
near Delhi. The centre will carry out back-end operations such as software
development and other functions for Timex USA.
•Timex also strengthened its retail coverage. It has increased the number
of Timex shop-in-shops within premium retail outlets across the country
from 70 to 300 by 2005, with an investment of about US$ 1 million. More
strengthening of its distribution network would provide it with a better
positioning in the domestic watch market.
•TWL is planning to have the design and engineering group to come to
India.
28. 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.
29. SUGGESTIONS FOR TIMEX:
Timex is running a new commercial for the Expedition range which looks
good. But for that range the tagline is " What next".
May be the company wants to say to customer that Time moves so does
Timex.
•In our humble opinion, Timex should align the brand with its global
positioning. Timex globally has the tagline of " Be There Now". Since the
Indian consumer is aligned to global consumer characteristics, Timex will
benefit by having a global positioning, since watches are considered now
as a fashion accessory.
