Wrist Watches form an integral part of the personality ofindividuals in the present era.Earlier seen as a luxury item, they are now witnessing afundamental change in perception, and are now gainingrespect as an essential utility item.Indian watches market was for long dominated by publicsector organizations like Hindustan Machine Tools Ltd.
In post liberalization India, the market stood to witnessintensive competition between foreign and Indianmanufacturers like Timex, Titan, Movado, Longines, Rado,Rolex, Fréderique Constant, Mont Blanc, Swatch, and manyothers.Many watch makers have made significant inroads in theindustry and others are in the process of establishingthemselves, currently.
Besides this, buyers are extremely choosy about the brandand type of wrist watches they wear.Being extremely brand conscious, their tastes have evolvedover the years and have gone beyond the realms ofdurability to choose in terms of aesthetics and elegance.Thus it is a buyer’s market with multitude of designs thathave entered and flooded the market place.
The size of the watchof the watch market currently is The size market in India currently is estimatedto be around 40estimated million pieces million to 45 to be around 40 to 45 annually. pieces annually. The organized sector alone contributes up to 30 % & the otherThe organized sectorcontributedcontributes up to 30 % & the 70 % is alone by the unorganized grey sector. In dollar terms, the estimatedother 70 % is contributedsize is the unorganized grey sector. annual market by around USD 195 million, despite the fact that the penetration of watches is the lowest, compared globally.In dollar terms, The average growth in the size of the the estimated annual market size is around market is slated to be around 10 -15 percentUSD 195 million, despite the fact that the penetration per year.of watches is the lowest, compared globally.The average growth in the size of the market is slated to bearound 10 -15 percent per year.
Titan Industries is the worlds fifth largest and Indiasleading manufacturer of watches.The company has manufactured more than a 100 millionwatches till date; and has a customer base of over 80million.The umbrella brand Titan is one of Indias leading watchbrands that brought about a paradigm shift in the Indianwatch market, offering quartz technology with internationalstyling.
The brand Titan is committed to offering its consumerswatches that represent the compass of their imagination.Titans customers are therefore consistently introduced toexciting new collections, which connect, with various facetsof their deep−rooted yearnings for self-expression.The new brand philosophy of Titan, encapsulated in thewords "Be More", touches this as well as all other aspects ofthe brand.
The Titan brand architecture comprises several collectionand sub−brands, each of which is a leader in its segment.Notable among them are:• Titan EDGE• Titan Raga• Titan Nebula• Titan Heritage• Titan Ragalia• Titan Octane• Titan WWF• Titan Fastrack• Titan Sonata
Today, the Titan portfolio has over 60% of the domesticmarket share in the organized watch market.The company has 24X7 exclusive showrooms christenedWorld of Titan, making it amongst the largest chains in itscategory backed by 700 after−sales−service centers.The company has a world−class design studio thatconstantly invents new trends in wrist watches.
Timex had entered the Indian market through a jointventure with Titan and which was their offering for theyouth market.When that JV broke off in 1997 and Timex wentindependent,there was a gap in Titan’s portfolio and it only made senseto fill that need through their offering.Fastrack was launched as a range of watch ware under Titanand was called Titan Fastrack.
Subsequently, it grew from a rangeto a sub-brand, where Titan wasupfront in the logo and theassociation was strong.They used the jazzy version of theMozart tune, which is Titan’ssignature tune. So, the link withTitan was very strong.When they launched, they targetedpredominantly the early jobber 23-30 year-old male executive. It wasonly a year or two later that theylaunched a line for women.
They took off and did well in the start but started stagnatingin 2001-2003, and that’s when they went for a reality check.Titan had simultaneously launched the steelcollection, whichwas an attempt to contemporize for a Titanaudience.But what was happening was the collection in terms oflooks, price point and consumer buying behaviour was verysimilar to Fastrack, including advertising.The parent brand needed to continue in its endeavor tokeep it contemporary and hence repositioned Fastrack toyounger audience in sub-25 range.
Awareness of Fastrack was very low and was linked to Titan.There was no independent identity. Research had alsoshown that the fact that it had the backing of Titan was apositive assurance.However, kids didn’t like to be serious and sober like theirparents. Fastrack needed to break away and hence changedthe logo to bring in a youthful, spontaneous, energetic andfun identity and also removed Titan from the upfrontassociation in the logo.They however, kept it at the bottom, saying it’s a Titanproduct. This helped carry the assurance of the trusted Titanbrand. They also stopped using the Mozart tune inadvertising.
Fastrack was launched with new products, a new identity,new advertising and a new logo in June 2005.The year took off so well that they ran out of stock veryquickly and ended the year with a 150 per cent growth andthe demand was growing continuously.Next year, they recorded another 100 per cent growth.
When re-launch was started, Fastrack brand was worthabout Rs 29 crore but however they have grown almost tentimes of that over the last three years.Fastrack has a presence in over 6000 outlets across 800towns, with new exclusive brand kiosks in Metro Malls andits multichannel distribution network which covers the 228strong World of Titan Network, 122 Large Format Chainstores viz. Shoppers Stop, Lifestyle, Central, Westside,Pantaloons and Multibrand watch & optical outlets.
Fastrack is actually among the few brands where peoplecome asking for the brand. They have adopted a fashionbased strategy, where they launch about 3-4 collections in ayear in both categories. Collection-based strategy hashelped them very well.It has been twin approach of constantly innovating onproduct design, yet being affordable, and to reach out toconsumers in a language that connects to them that led totheir success.It’s not your typical fashion brand talking down saying youmust look cool and you must look like me. With theiradvertising, they were able to relate to the youth in a settingthey were familiar with.
Fastrack, in it’s journey to being a fashion accessories brandhas expanded it’s portfolio to now include not just watchesand sunglasses but bags, belts, wallets and wristbands too.With this, it now has enough categories to open a fashionaccessories store – and that’s just what they’ve done!
Fastrack has products caters to the products in all thesegments.The range of Fastrack watches is from Rs. 500 to Rs.4000.Hence it is catering to all the three segments of low, mediumand highly priced segments. However more emphasis is laidon medium and high priced segments.
On demographic grounds :Fastrack watches were launched to cater to the needs ofyouth at first.However it introduced watches for kids also later on. Henceit is targeting both youth and kids segments.
Collection TargetSPORT MENARMY BOTH MEN & WOMANADVENTURE BOTH MEN & WOMANBIKERS BOTH MEN & WOMANGRUNGE BOTH MEN & WOMANALUMINIUM WOMANCOLOUR PLAY WOMANDIGITAL FASHION BOTH MEN & WOMANESSENTIALS BOTH MEN & WOMANPARTY BOTH MEN & WOMANPAIRS PAIRSNEON MENNEON – DISC MENXY BOTH MEN & WOMAN
Fastrack positions itself as both trendy and affordable range.These two attributes were usually considered as two poleswide apart.Fastrack has taken the challenge of combining both thefeatures to offer a greater value proportion to its customers.
CULTURAL FACTORS :In India, Titan ahead of all other brands as the MostAdmired Brand in India across all product categories.It was also a fitting tribute to a brand, which had not onlyrevolutionised the Indian watch industry, but also brought inworld-class benchmarks in product design, quality andretailing into India.In 1998, it was Fastrack, the cool, trendy, funky range for theyoung and young-at-heart. Since Indian population haspositive outlook for titan it has influenced the behavior ofyounger generation who are variety seeking.
SOCIAL CLASS :The age and stage of individual has a major influence on thebuying behaviour of consumer.The youth in the range of age of fifteen years to mid thirtiesare generally attracted to the watches.Friends and their peer group has a major influence on thepurchase decisions of the youth.
ECONOMIC CIRCUMSTANCES:Economic circumstances do not play a major role in optingfor Fastrack watches because the target segment is youthand it offers an affordable range.LIFESTYLE :A Fastrack watch generally attracts people with affluentlifestyle who are fashion conscious.For Fastrack watches traits like Excitement and ruggednesscan be attributed.Excitement includes imaginative and being up to date whileruggedness sports outdoorsy and tough.
PROBLEM RECOGNITION:The buyer first and foremost identifies the reasonWhy he or she wants a particular product.In the case of Fastrack watches the need istriggered by both internal and external stimuli.Internal stimuli are the need to keep track of timewhile external stimuli are because of the peergroup who are using the watch.In the surveys conducted many of them haveresponded that it as either a necessity or anaccessory.
INFORMATION SEARCH:In order to reach a large audienceFastrack employs a number ofadvertising and promotional campaigns.Fastrack has roped in John Abraham asbrand ambassador of the product at thebeginning to portray the sporty nature ofthe brand.The company has also roped in Aamirkhan for army collection. The companyuses youth icons to portray the trendylooks of the watches.
It also advertises aggressively in internet, print media andtelevision.Therefore it’s quite easy on the part of consumers to makean informed decision regarding Fastrack watches bycollecting data from various sources of mass media and fromfamily, friends etc.In the surveys conducted majority have responded thattelevision and print media have major influence on theirpurchase decisions.
EVALUATION OF ALTERNATIVES:A consumer then evaluates variousalternatives based on the needs andinformation available to him.Fastrack through its variety of variants isable to satisfy a number of needs of theconsumers.Fastrack which is always perceived astrendy and affordable watch has an edgeover its competitors.Hence Fastrack is oneof the best alternatives who are looking fora trendy yet affordable watch
PURCHASE DECISION:There is a strong preference of Fastrack brand amongyouth in both middle and upper.It would involve other sub decisions like timing, paymentmethod.All the Branded stores and shopping malls would be offeringflexible payments methods and flexible timings.In the surveys conducted it is observed that consumerspreferred to buy the watches majorly in branded stores andshopping malls.
POST PURCHASE BEHAVIOR:Since Fastrack has been able to deliver value for money andsatisfy the needs of consumers, it has been able to build abrand image for itself and win the loyalty of consumers.Hence many of the respondents have responded to not onlybuy the Fastrack watch once again bit also to recommendthe brand to their friends and colleagues.
QUALITY :Fastrack is sub brand of Titan and Titan is well known for itsquality. Even though Fastrack is brand created targetingmedium range and low range segment, high quality isprovided to customers.
FEATURES :Fastrack is well known for its features, it has come up withseveral variants and features which suits the choices andtastes of different consumers.
PRODUCT VARIETY ( DESIGN AND STYLE) :Fastrack is specially designed for youth. Its design and styleand variants are the key to the success of the brand. Theseveral variants they have come up with are :• Sport• Army• Adventure• Bikers• Color play• Hiphop• Neon• Neon – disc• xy
PACKAGING :Fastrack has came up with new and contemporary packagingfor its watches which attracts youth.
SERVICES & WARRANTY :Fastrack provides warranty of one year on all its watchrange. After sales services are available on all Fastrack andTitan showrooms.
Fastrack is in growth stage now as it is marking rapid climbin sales. Early adaptors like the product and the additionalcustomers start buying the product. The companycontinuously coming up with new features and variantskeeping the brand moving forward satisfying tastes andneeds of different customers
Levels Of Product :Core product : Satisfying purpose of keeping track on timeActual product : Fastrack watchExpected product : Product with brand value and imageAugmented product : Warranty, after sales service, design ,packaging.
TVC :Most of the Fastrack TVC advertisements were dominatedby youth and youth representing brand ambassadors likeJohn Abraham, Genelia and Virat Kohli.Some of the popular Fastrack advertisements arediscussed below:Yes Sir Ad :• A teacher was taking attendance,• A boy responses his roll by raising his hand• Girls get obsessed by looking at the watch worn by thatboy Which has the message that this watch on your wristmakes you more stylish?
Creative Advertising :From Titan Fastrack where fashionable jeweller was a gift onpurchase of any Fastrack watch. This jewellery set of apendant and earrings is contemporary and unique in formand material, with steel and acrylic being used together forstunning effect. This was launched for Valentine’s Day wherethe name scheme, The watch being advertised for (Fasttrack) as it pertains to the youth, jewellery (for the youth),valentine’s day (more so for the youth) and adding to theexcitement is a limited edition FASTRACK VALENTINESCOLLECTION that is being made available in four designs.Only 300 watches of each design will be on sale across citiesduring this fortnight.
These watches are designed is steel with leather straps inthe colours of the season – black, red and silver. The dialsare in matched colours with heart patterns, making thecollection a true blend of fashion and romance. "Youngcouples are looking for new ways to discover theirrelationships and this set of special watches and matchingjewellery from Fastrack, gives them just the reason to do so.The promotion was in Mumbai, Delhi, Pune and Bangalorefrom Feb 1–14.
FASTRACK WEBSITE PROMOTION :Fastrack website is the tool they used to attract the youth,the pictures displayed on the website creates curiosity andinterest towards the product.
SALES PROMOTION :Fastrack always come up with sales promotion duringfestival seasons and special locations. They provide 20% -40% discounts on all its watch ranges.
BRAND AMBASSADOR :Brand Ambassadors for the Fastrack watch are Virat Kohli,Genelia D’ Souza, John Ambassador to appeal to youth.
OUTDOOR ADVERTISING :The billboard advertising is very popularhowever has to be really terse and catchy inorder to grab the attention of the passers by.Fastrack billboards can be found put up all overDelhi especially at places like the north campusuniversity area on the main road which thecompany knows that it is a youth centric areaand since that is their target segment it puts upthere. The brand also does trade shows duringthe festival area which a key rule to theirpromotional strategy through which hey engagethe youth and make them aware of the brand.
PUBLIC RELATIONS :Fastrack one of the few companies in Indiato take the lead on embracing PR 2.0.Fastrack has come out with the Fastracksocial media news room for bloggers.They are using the newsroom to shareinformation and news on Fastrack. It alsofeatures social media press releases (Bikersand Neon Disk), Flicker streams of Fastrackgears, social bookmarkingbuttons, videos, media coverage, productand company information, spokespersonprofile, RSS feeds, and more.
For the consumers, Fastrack has launched two Facebookgroups called Life on Fastrack and Bikers on the Fastrack,which have 121 and 71 members already, as on yesterday.The groups have attracted so many people in such a shorttime.Fastrack main site – not the usual corporate stiffness but anattractive and very consumer oriented featuring contests,fun stuff, opinion polls among others. They plan to follow upwith a Twitter part as well.
It has launched MyExBox, an online campaign where userscan post videos that communicate. The month long onlinecampaign is based on the Fastrack’s theme ‘Move On’ andencourages users to vent the reasons why they had to dumpsomeone or something and move on. According to thecompany, the most viewed video of the week wins FastrackMerchandise and also a chance to get featured in a FastrackTV commercial. This makes the campaign go viral as usersshare the videos with their friends to get more views.
AIDA COMMUNICATION MODEL :AIDA is a communication model which can be used by firmsto aid them in selling their product or services. AIDA is anAcronym for Attention, Interest, Desire, and Action. When aproduct is launched the first goal is to grab attention andthat is what fastrack did by introducing a mid price range ofwatches for the youth which were affordable as well ascreated a fashion statement for the youngsters
Once we grab attention we held Interest, through promotingby getting virat kohli and genelia d’souza as brandambassadors and coming up with new ranges every halfyearly. The third stage is desire, to make the productdesirable to the consumer which was done by introducingnew accessories by the brand like it introduced bags beltswristbands and sunglasses at the nominal price range .Thefinal stage is the purchase action, and the company has beensuccessful with its strategy and the target customer haspurchase the product.
Titan have watches like sonata to cover the lower levelincome segment people and titan raga, octane, xylus totarget higher segment people but they didn’t had anywatches to cover the youth market which is in flourish nowbecause more than 50% of population is youth, so theycame up with fastrack to cover this segment and they aretrying to cover the market share in youth sector and actuallythey are successful also because they cover 37% of 50% ofyouth population.
PRICING OBJECTIVE :The pricing strategy adopted by Fastrack is market sharemaximization as they are targeting people with affordablecost rangeThey have watches from the range of 499 to more than4000,so that they can attract customers of lower segment tohigher segment and this clearly shows that they are intocapturing more of the market share than making profit orother strategies.
DISCOUNTS :Fastrack always come up with discount offers at auspiciousoccasions to capture more market.They also provide exchange offers, when old watch isreplaced by new watch they provide a discount upto 40%.
PRICING CUES :Fastrack follows odd pricing strategy and ends the price with5 . So people perceive the price as low as people in Indiatend to read from left to right
Fastrack is a product that u can find everywhere because ofits parent company Titan. Titan have already build thechannels in the form of exclusive stores and outlets sofastrack products are also made available in those storesand later they established their own exclusive store offastrack where all range of fastrack watches are availableand these exclusive showrooms are present only in somecites while in other places they are being sold through theoutlets of Titan.
Fastrack follow parallel distribution network• It sells watches online through direct marketing• It sells through factory outlets like Fastrack store & World of Titan.• It sells its products in major chains like bigbaazar, citycentral etc.• It sells through retail outlets ( watch shops , gift shops)
Fastrack’s supply chain in mostly concentrated on Tier-1 andTier-2 cities as youth in urban cities look for style andbranded products when compared to youth in rural andunder developed areas. In tier-1 and tier-2 cities fastrackhave a huge supply chain to make products available in eachand every corner of the city.
Our Special thanks to Bindu Ma’m for providing thiswonderful opportunity to do intense research on product. With regards, Srikanthbabu Katragadda (FK-2231) Ravindra Kumar Misra (FK-2352) Ammireddy Kovvuri (FN-184) Anju (FK-2334) Rinu Maria Jacob (FK-2261)