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 COLLEGES.R.M. INSTITUTE OF SCIENCE AND TECHNOLOGY (DEEMED UNIVERSITY) MAY 2005
BONAFIED CERTIFICATECertified that this project report titled “A MARKET STUDY ON WRIST WATCHESAMONG CUSTOMERS WITH REFERENCE TO TIAN WATCHES” is thebonafide work of THOMACHAN BAU (Reg. No. 35103315) who carried out theresearch under my supervision. Cerfified furher, that to the best of my knowledge the workreport herein does not form part of any other project report or dissertation on the basis ofwhich a degree or award was conferred on an earlier occasion on this or any othercandidate.Signature of Internal Guide Signature of HODM.U. Subrahmanian Dr. Jayashree SureshSignature of External Guide:Name of External Guide:
ACKNOWLEDGEMENT I wish to express my profound gratitude to Mr. B. Santhosh Jayakrishnan, AreaSales Manager of Titan Watches, Ernakulam, for allowing me to conduct this study in hisesteemed organization and for his timely and valuable assistance during the period of mystudy. 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 profoundinterest, guidance and encouragement in conducting this study. I sincerely acknowledge the help extended by my internal guide Mr. Sony Santy forhis valuable help and guidance in the beginning of the project. My sincere thanks also due to the respondents of the survey who have co-operatedin 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 tome.
CONTENTSCh. Title Page No.No. 1 Acknowledgement List of Tables Declaration Executive Summary1. Introduction of the study 1 1.1 Industry Profile 2 1.2. Objectives 3 1.3. Scope of the study 4 1.4. Limitations 52. Research Methodology 63. Review of Literature 104. Company Profile 325. Analysis and Interpretation 356. Findings of the Study 487. Suggestions 518. Conclusion 539. Bibliograpy 5410 Appendix 55
LIST OF TABLESSl. No. Title Page No.1. Age of the respondents 362. Education of the respondents 383. Mothly income of the respondents 394. Chi-Square Table 405. No. of watches owned by the respondents 416. Familiar brands of watches 427. Currently using brand of watches 438. Type of material used by the Respondents 449. Occasion of buying Watches 4610. Factors Influencing Purchase 47
DECLARATION I THOMACHAN BABU, here by declare that this project report titled “MarketSurvey of Wrist Watches” is an orginal work of mine and I completed my work under theguidence 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 notformed on the basis of any other report.
Executive Summary The study was done for Titan Watches, Ernakulam. Today Titan is the marketleader of watch industry in India. The project was undertaken to study the market analysisof Titan Watches and it’s co brand Sonata, in the Kottayam district of Kerala throughcustomer survey. It includes market share analysis of a Titan Watches, and brandawareness and brand preference. A dealer survey was also conducted for studying thecompetition in watch market. For the study of above topic a sample survey has been conducted at the Kottayamdistrict. The questionnaire for customers containing 8 relevant questions. The customerswere 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 brandwatches. The survey has revealed certain facts are accessed appropriate recommendationsare made based on the study.
Chapter 1 INTRODUCTION Industry ProfileHistory Time, the Fourth Dimension poundly influences all aspects of life. People areconstantly aware of the passing of time in their daily activities. Without the ability tosynchronize comings and goings at school and work, complex societies would simply beunable to funcion. Until a few hundred years go there was no way to tell time moreaccurately than the nearest hour. The introduction of accurate timepieces played a majorpart in the development of modern civilization. Watches and clocks are the most common devices for measuring time. The firstportable timekeeper, the watch was developed shortly after 1500. With recent advances inautomation and electronics, modern watches and clocks have become less expensive andmore accurate. Watches were developed rather than clocks. The first portable timekeeper orwatch was produced during the Renaissance. Earlier there were mechanical watches.Althrough mechanical watches are still manufactured in large quantities, they areincreasingly being supplanted by electronic and electrical time keeper. These newer devisesare cheaper easier to manufacture, and considerably more accurate. Introduced in 1953, the funing fork watch was the first commercially successfulelectronic watch. Instead of a mechanical, it had a battery-driven funing fork.
Objectives of the studyGeneral Objective To find the Market Share of Titan & Sonata in the Kottayam district of Keralastate.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 tounderstand the awareness level of Titan watches among respondents. It also help tounderstand the buying influences, Brand preference and Brand Switching. The researchfindings of the study will help the Titan Watch Industries Ltd. to frame certain strategies toimprove their products.
Limitations of the StudyThe study was conducted only in one district of Kerala and the same may not berepresentative 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 exactrepresentation of the total population. Chapter 2 RESEARCH METHODOLOGY Research Methodology Research methodology is the backbone of the project work. It means the way oneresearcher selects his sample and sample size, methods of data collection, various toolsused for studying problem with certain objectives and objectives in view. Research Design The study is descriptive in nature. Design research studies are those which areconcerned with describing the characteristics of a particular individual. Non-probability sampling has been used in this study. Under this non probabilityas ling convenience sampling was chosen. The study was conducted on the basis of asurvey carried out in Kottayam district of Kerala State. The data of the survey was collectedthrough an administratively structured questionnaire. The collected data was latter analysedand interpreted. Based on the findingds some recommendations have been made.Data Data was unprocessed information which one researcher collects through thesurvey. It is the basic factor, which gives the information about the problem or subjectunder study. Data are two-type primary and secondary.
Nature This project work purely relies on primary data to study the objectives. Theprimary data was collected through a structured undisguised questionnaire containing. Asurvey conducted for gathering data from the respondents through questionnaire. The questionnaire was prepared based on the objectives set. The questions werestructured and direct so as to make the respondents understand easily. It is framed in sucha manner that respondent take around five minutes to give their responses. It’s the firsthand information.The secondary data were collected from: Journals and company brochures Industry surveys Business magazines InternetSource Consumers and watch dealers.Research approach It includes surveys, fact-findings and enquiry’s of different kinds. Its majorpurpose 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 preparedwas 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 TechniqueConvenient Sampling. Population elements are selected for inclusion in the sample based on the case ofaccess, it can be called convenience sampling.Pre-testing A pilot survey among 15 respondents was conducted to find our the reliability andvalidity 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 tocollect lot of information. The fieldwork was conducted in Kottayam district of KeralaState. Chapter 3 REVIEW OF LITERATURE Review of Literature Since the beginning of time, the passing of the hours has ruled and shaped theeveryday activities of man. Productivity and even quality of life is measured by how fastone can work, walk, talk, and even how much of activity one can cram into a given timeperiod. Time is precious commodity. To measure this commodity, man has used variousinstruments across the years.
The earliest humans used the position of the sun in the sky to approximate thetime of day. Even today in remote parts of the world and with people, who do not haveaccess to clocks or watches, time is told by how far the sun is in the sky or where theshadows are falling on the monutains. Since then, man has throught up numbers ways oftelling time. The most inventive and earliest of which were the Egyptian sundial, the Greekwarerclock and the Sung Dynasty’s burning of candles and incennse. All these culminatedwith the invention of the mechanical clock. The importance of keepting time allowedinnovation to proceed at stedy pace and certain world events further facilitatedadvancement in the science of time keeping. For example, practically led to the evolutionof the clock into the poclket watch and the invention of the first wristwatch by Patek Philipin 1868. The advent of the World War led to the wide spread manufacture and use ofwristwatches. 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 asmeasuring altitude, depth, temperature, dates, and days, to name few. In addition, thewatch is also uded as an object to vanity and as a status symbol. The type of watch (brandname or style) that he is wearing can tell the social status of a person. People also collectwatches as objects of precision and beauty, and some watches increase in value over theyears. Some of the most popular brands of watches to day range from those that are knowfor their precision and reliability to those which are more known for their aesthetic beautyand brand names. In recent times, these two characteristics have been merged in manycases since they support each other. Collectors value their items of interest according to thevarious specialization and features of different watch making companies. While theGermans made the first watches in the early 1500s the skills spread to neighboringcountries. France and England dominated the watch industry initially, only to be overtakenby the Swiss throught their persistence in the industry as well as various political, socialand technological developments in Europe. Today Swiss-made watches are the mostfamous 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 majorcontenders in the export marker, right behind the Swiss. Overall, the most famouscountries, 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 areOmega, 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 fossiland Gucci. This looks at the global value chains, industry structure, critical tecnologies andpolitical determinants and social and emvironmental factors affecting the watch industry todate. It analyzes the main factors driving the watch industry and offers some strategies forwatch 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 JawaharlalNehru, during his visit to Japan, received a watch as a gift inspiring him to bring watchescloser home in his country. This dream became a reality in 1961 when the first watchfactory was commissioned in India by Nehru in 1961. This was the watch division of HMTLtd. Citizen, the popular Japanese manufacturer, evinced interest to train select Indianpeople at their watch manufacturing plant in Japan. The year 1962 saw the manufacture ofthe first component and then began the slow but steady growth of watch manufacture inthe country. The first watch model manufactured by HMT was the Janata model, whichexists even today, was gifted by Pandit Nehru to the senior most employee of thecompany. The next 10 years saw the Indian-made watches carve a niche for themselves inthe 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 thewatch manufacturing activities were beefed up. An assembly plant was set up and theconcept of a mother plant with other units in vaious states was pioneered. The early 80s were a period of technological revolution with drastic changes intastes and preferences. The integrated chip was invented in the US and digitals were indemand and LED watches flooded the market. Japanese companies took over themanufacturing of LCD for digital watches. Quartz technology had picked up and therewas a shift in focus from mechanical to quartz watches. 1987 saw the establishment of Titan watches, which was formed by the Tatas andTIDCO (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 designsand prices. Today the Indian market requirement for watches is well over 20 million watchesper year. Majority of the demand is generated by the sub-Rs.1000 segment. Liberalizationhas brought with it a host of brands for the Indian market, viz. Piguet, Cartier, ChristianDior, Omega, Raymond Weil, Rolex and Tissot. Indian companies are now among the fewset-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. Thenew exim policy announced on 31st March 1999 removed all quantitative restrictions onthe import of fully assembled watches - a full three years ahead of commitment made tothe WTO. This will lead to significant upheavals in the watch industry and the trade. Mostaffected will be the watch makers with significant idle capacity, small or weak brands andhost of component suppliers to them. Least affected will be the players whose sales exceedmanufacturing 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 aforay in the watch market. We use Michael Porters 5 forces model to cary out the industryanalysis.Industry Structure: The industry consisted of the organized segment which wasdominated by HMT, and the unorganized segment consisting of small time local playersand the gray market. HMT, the timekeepers to the nation, manufactured only mechanicalwatches. The HMT watches fulfilled only the functional needs of a watch. Small timeplayers lacked the nation wide reach that HMT had. They also did not have reliable supportnetwork. The gray market was flooded with quartz and digital watches from Japan. Thoughthe gray market did not have the support network their sturdy performance and their looksmade the Japanese watches very attractive purchases.Buyers: The penetration of watches within India was low, therefore there was a hugeuntapped market. The buyers wanted watches that offered more than just the functionalbenefit. There was also a latent demand for quartz analog and digitasl wathes that HMTwas 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 werewilling to pay a premium for watches with good design and performance.Suppliers: HMT had fully integrated operation for mechanical watches. There was noconcept of having vendors in the watch industry. Since the supplier’s role in this industrywas very limited they did not have strong bargaining power.Substitutes: The quartz technology had become popular all over the world. Quartzwatches from Japan had already beaten the Swiss in their own game in the sixties and theseventies. The Swiss had refused to embrance the new quartz technology and they hadsuffered because of their adherence to mechanical watches. HMT was making the samemistake in India. Since the imports were not freely permitted, there was no immediatepossibility 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 spacein the market for a new entrant who would provide watches with good design and reliableperformance. The new entrant could score over HMT with good design, over the graymarket by providing dependable after sales service, and over the local players byestablishing nationwide distribution network.TITAN INDUSTRIES LIMITEDThe Origin The industry structure prevalent in the 1980s provided a golden opportunity forthe Tatas who were one of the most respected names in the Indian industry. They not onlyhad the financial muscle to enter the watch business but also had the feel of India as amarket. This led to the birth of Titan Industries Ltd. in 1984. From its inception, Titan decided that it would be the shaper of the watchindudtry and not an adapter. They created competitive advantage through differentiation.They first concentrated on technological leadership. The Tatas took 2 decisions – they willmanufacture only quartz (analog and digital) and not mechanicals, and they would set upstate-of-the-art plant to manufacture watches in a wide variety of designs and prices. HMTand local players had always looked at the functional utility of the watch. Titan was first inIndia 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 somethingthat is valuable to the buyer beyond simply offering low price. Differentiation allows a firmto command a premium price, to sell more of its products at the same price, or to gainequivalent benefits such as greater buyer loyalty. Differentiation leads to a superiorperformance 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 andfeatures to increase buyer value. This was the pefect example of differentiation throughtechnological leadership and product technological change. In the initial years Titan chose to concentrate on the higher end of the marketwhich was responsive to the ‘style’ element of the watch. Also this segment of the marketwas relatively price inelastic. This was done so as to build the brand image of Titan asmanufacturer of good quality stylish watches. Over the years the Titan brand and itssignature tune – Mozart’s Fifth Symphony – has become one of the most recognised inIndian consumer durable goods segment. 1990s was the liberalization of the Indian economy. There were two trends in thewatch industry after liberalization, viz. the giant of the watch industry changed from HMTto Titan, and small manufacturers have gained strength in the market. Why did thishappen? Mainly because times changed, but HMT did not. In fact when the other rivalswere running a 100 metres, HMT was walking backwards. HMT lacked a clear marketstrategy or research. It failed to develop a good network of loyal and honest dealers. Therewas rampant corruption in marketing division. HMT also failed to provide a basic featurethat any products must always satisy: quality. In fact of all the watches that HMT sold inthe market, 40% came back within 2 months for repairs. About 7% of the watches wererejected at the dealer’s level because of the manufacturing defects. Being a public sectorundertaking, HMT had to dance to the tunes of the political bosses. It was overstaffed andgrossly 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 marginhigh growth quartz segment was a mere 18%. This led to a sudden and drastic decrease inHMT’s total market share in mid-90s. During this period, the unorganised sector also grew very fast – almost 55% ofthe demand in the total market size of 20 million watches was being met by theunorganised 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 croppedup. 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 yearsTitan had built a formidable distribution and support network. Titan’s customer orientationwas reflected through their advertising campaings. Whereas HMT called themselves‘timekeepers of the nation’, Titan told masses “if you have the inclination, we have thetime”.Typical sources of differentiation in the value chain Earlier Titan created an advantage through its design and styling. Now it createdan 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, whichshowcased the range of Titan watches and also provided with support and service. TIL andTimex Watches BV entered into a joint verture on November 6, 1990. Titan tied up withTimex to create a presence in the lower end segment of the watch market. Timex providedthe know-how in the plastic watch manufacture and Titan provided is retail anddistribution strength. Timex was positioned as a separate youthful brand. This served twopurposes, Titan protected its image as the premium watch manufacturer and at the sametime created a presence in the lower end of the market via the Timex venture. Also Titanhad always strived to keep its costs in control. Right since its inception Titan hadimplemented World Class Manufacturing which helped to keep costs under control. Themajor thrust areas under WCM were: Just –in –Time Manufacturing, Total profuctiveMaintenance, Total Quality Control, Total Employee Involvement, and Housekeeping. ThoughWCM meant lower costs, Titan always differentiated itself through otherelements of the value chain viz.design, marketing and support. This meant more buyervalue 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-bandsthat can be defined, in general, as Popular, Mid, and Premium. At the bottom, theemphasis is on volumes-not margins. At the top, the emphasis is on profits and image-notvolumes. 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 thepresent strategy of TIL. TIL was first focussed only on the premium segment of the watchmarket. As per the above-mentioned strategy TIL is moving into the mass market forwatches. To broaden the mass base, TIL is creating new segments and increasinglyfocusing on segments individually. In the past few years TIL has launched at a number ofinitiatives focussed on specifc segments.PRODUCT PROFILE In the last few years Titan has begun to face a competition from HMT and otherplayers in terms of launch of newer elegent models. Titan, who pioneered the concept ofrepositioning watches as upmarket lifestyle articles, now faces stiff competition fromdomestic as well as foreign watchmakers. It has moved from strength to strength and haszeroed on using focus as a source of competitive advantage. Increasing focus necessitatespaying minute attention ot the market requirements. Titan has segmented the watch marketand clearly identified clearly the needs of each group. The strategy that Titan has adopted in recent years is that of focus. It hassegmented the market into different need groups and tailored its strategy to the exclusion ofothers. By optimizing its strategy for the target segments, it seeks to achieve a competitiveadvantage in its target segments. Market segmentation is concerned with identifying differences in the buyerbehavior, allowing a firm to match its capabilities with distictive products and relatedmarketing programs. Market segmentation tends to focus on the marketing activities in thevalue chain in which Titan commands a very formidable position. This also allows Titan tofind out how it should serve each segment. Titan has tried to achieve a balance of cost focus and differentiation focus. By this wemean that in the lower end (Popular segment) of the market, it seeks to achieve a costadvantage by exploiting the differences in cost behaviour. In the mid-and higher-end (Midand 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 nicheit aims to serve. The various brands of Titan and the price range in which they fall aretabulated which follows:
Brand Price Range (Rs) No. of ModelsInsignia Gents 3750 to 7750 98Insignia Ladies 1600 to 7500 89PSI2000 Gents 1780 to 7500 61PSI2000 Ladies 800 to 4350 36Regalia Gents 1820 to 7790 157Regalia Ladies 1725 to 7770 168Royale Gents 960 to 2810 123Royale Ladies 1120 to 2830 91Classique Gents 850 to 2450 268Classique Ladies 565 to 2930 161Spectra Gents 1140 to 1830 57Spectra Ladies 650 to 1410 22Exacta Gents 600 to 1170 48Exacta Ladies 595 to 800 25FasTrack Gents 550 to 1430 57FasTrack Ladies 850 to 1050 11Technology 2350 to 8170 55Raga Ladies 1420 to 4000 123Nebula Gents 8950 to13500 8Nebula Ladies 5950 to 6950 4
Bandhan 1675 to 8085 34Sonata Gents 295 to 1195 200Sonata Ladies 350 to 1100 96Sonata Pair 1495 to 2000 10Dash Boys 295 to 395 15Dash Girls 250 to 350 13Source: Tradepost, 9 March 2000 Titan has developed a range of brands that encompass the entire spectrum of thewatch market. Each of the brands is targeted to satisfy the needs of a particular segment ofthe 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 hadchosen to play in (3 million units per annum), its relatively slow pace of growth (10 percent 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 ratherthan margins. The launch of the Sonata range can be attributed to Desai’s desire to stick tothe pyramid. The sub-brand Sonata was spun off as a separate division, and today Sonata isIndia’s second largest selling brand, after Titan.FasTrack – FasTrack was an attempt to target the urban youth segment with anappropriate line of products. After the initial success of the metal collection, FasTrackoffers a variety of fashionable trendy watches at affordable prices. The FasTrack range hasgrown by almost 100 per cent in volume terms and is easily the largest youth brand in thecountry. 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 watchesinternationally and the need to revitalise a dormant segment of the Indian watch market. Italso extends the width of Titan’s offer to the fashion conscious youth of India. Breakingaway from the traditional, functional platform, Titan has positioned the FasTrack Digitalcollection on a fashion platform.
Dash!– The childern’s watch brand, Dash! launched by Titan a year and a half back, hasgarnered volumes of 2.5 lakh units since then. The company has said that the brand is wellon its way to achieving the one million target in three years. Dash!, targeted at the agegroup of 6 and 14 years, is priced in the range of Rs 250 and Rs 395. Dash! competes withGimmis 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-likestores as well as a consequence of the extension of distribution from the 8-city launch tofull national distribution.BEYOND WATCHES: Titan decided that it did not want to remain only in watch segment. It wanted toextend the brand unmbrells to the hitherto untapped market segments, viz. brandedjewelry, 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 beprofitable for a long time. It is now being repositioned as a pure jewelry brand. Tanishq is afour-year-old brand, available through around 25 exclusive boutiques in India. Starting ourwith contemporary designs, Tanishq now has a very comprehernsive, traditional 22-caratjewelry line that compares well with any traditional Indian jeweler. Tanishq is reaching outto the mass market by shedding its premium high-end image to become the largest jewelerin the country by 2001. In a bid to extend its reach, Tanishq has introduced a large varietyof 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 linear selective outlets. Plans are now on to increase the number of outlets to around 50 by theend of the year. Titan plans to spin off Tanishqu as a separate entity, as the jewelry businessdoes get well with the proposed mass-market orientation of the company. Now the highpriced watches will be marketed under sub-brand Nebula. Tanishq will remain in thepremium readymade jewelry segment.Synchrony - Titan’s strategy is focussed on segmenting the Rs. 500-Rs. 2,000 clock andtime-piece marktet, based on price, lifestyle and customer by introducing exclusivecollection in each category. Titan feels that well crafted timepieces woulb be in demand incorporate and as gift items. With Sychrony, the focus would be on style and designattributes rather than the functional aspects of a clock.
In addition to this, Titan has created a 115-strong network of watch-stores namedTime 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 startedselling its watches through its website www.titanworld.com. Its entire product range catalogwith model numbers, photographs and price is availble on the Internet. The watches arehome delevered and payment can be made by cheque. The delivery is made on realizationof the cheque. Credit cards are accepted but presently the credit card information transferis not secured. Titan is working to enable a secured transaction processing and this will beenabled shortly.THE TATA BUSINESS EXCELLECE MODE (TBEM): Titan Industries has signed up to implement the compliance plan laid out by theTBEM. Beginning July 2000, it will be evaluated on 7 paramemters that constitute theTBEM: leadership, strategic planning, customer and market focus, information andanalysis, process management, human resouces focus and business results. The goal is toreach 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 andthe method of deploment lie entirely with the company. It also shies away from making anysuggestions about how the organisation should be strucured and whether they shoul havequality-planning department or not, and any suggestions about starting points, systems,tools, and techniques. The TBEM drives excellence across funtions in the followingmanner:
The Leadership criterion checks haw senior leaders create leadership system basedon 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 customergroups, key customer needs, and complaint-management issues. Titan has always been acustomer centric organisation and always has focussed on satisfying the customer demands. The Strategic Planning criterion examines how the company develops strategicobjectives, action plans, and resource-allocation. Since its inception, Titan has been theshaper of the watch industry. It has identified the future trends well in advance and takenappropriate steps in the right direction to emerge as the leader in the industry. The information and Analysis criteria check whether the organisation has keymetrics in place to measure and analyse performance. Being market- driven, Titan has itsinformation 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 deliveryprocess, and supply chain management. Titan has pioneered the ‘style’ concept in the watchindustry and is the undoubted leader in design. Also WVM ensures high quality ofproducts at all times. The Business Results critertion measures the organisation’s performance in areaslike customer satisfaction and product- and service- performance. Implementation of the TBEM will ensure that processes and practices arecustomer-centric, company pursues agility, uniform performance are employed, knowledgeand best practices are shared, and a unified management strategy for the Tata Group isemployed.THE TATA BUSINESS EXCELLENCE MODEL (TBEM)The Future Titan has followed a strategy of serving the entire watch market by targeting aseparate 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 chiefoperating officers (COOs) appointed at the helm of these BUs. BU concept represents a more efficient way of managing, COOs running the BUswill be responsible for the entire value chain starting from design to strategy to sales andmarketing. Such a BU stricutre will allow Titan to be more flexible in its market operationsand approach. It will also cultivate a healthy competition under the parent Titan brandumbrella, without causing any BU to eat into the market share of any other BU as they arecatering to needs of different market segments.RESTRUCTING CLOCK BUSINESSES: Titan has evolved a whole new strategy for its low-end clock business by going infor ‘virtual manufacturing. Titan has stopped making clocks at its own facility and is nowsourcing them from vendors, local and international. Titan’s inputs come in the form ofdesign, styling, marketing and quality control. Titan plans to focus on the segment of the clock market where it enjoys acompetitive advantage and where it can leverage its three core competencies, viz. design,brand name and market reach. The company plans to focus on beautifully craftedclocks. Under the “Kaal” banner it has recently introduced clocks that symbolize the fusionof time with Indian craftsmanship. Titan plans to use the investment made in the clockmanufacturing to make plastic watches and its new offerings.BRANDED JEWELRY BUSINESS: Titan plans to spin off Tanishq as a separate entity, as the branded jewelrybusiness 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 soldunder the Nebula brand name. Titan has realised that there is a huge untapped market for branded jewelry inIndia. The basic premise for branded jewelry is assurance of quality, fashionable design andimpeccable 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 competitionfrom the traditional jewelers, it plans to push the brand on the trust/quality platform. Theadvertisement pitch is also on similar lines. Tanishq is rationalizing its prices to increase its customer base and become thelarger jeweler in the country by 2001. There is a common feeling that Tanishq products arenot very accessible and affordable to common buyers. As an initial step, the company hasdecided to train its boutique staff on how to woo and handle customers by making thebrand more accessible, affordable and attractive. To expand Tanishq’s geographical reach, Titan would open 30 more outletsacrossthe country during the next calendar taking the total to 60. The comapny has already signed17 franchise agreements and another eight are under negotiation. Tital would alsointroduce caret meters in 12 more outlets- taking it to around 30 - to help customers buyand sell right quality gold. The company recently launched awareness and customerinteraction program with a view to collate their feedback on tastes, styles and patterns. Theexercise 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 - bothfranchise network and own shops - to facilitate greater interaction within the brand. Thenetworking exercise would be kicked off by mid-2000. Tanishq plans to double its turnover in 1999-2000 to Rs.150 crore by selling over3 lakh pieces of jewelry and is looking at Rs.200 crore during 2000-2001. It is looking at aquantitative return pattern without charging an undue premium on its products. Thecompany plans to leverage on the retailing and distribution clout to emerge as a premiumretailer of imported, high end fashion products and accessories in the personal wearsegment. 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 shareof Tanishq is less than 0.5 per cent. The potential for growth is therefore immense. IfTanishq 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 – onestrategy for the domestic markets and a different strategy for the overseas markets.Domestic strategy: Titan has established leadership in India by catering to every marketsegment. 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 thedomestic markets.Overseas strategy: Titan now plans to enter the European market. It will start off byoffering ultra-thin movements market under the brand name ‘Le Papilon’ with the allimportant ‘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 Swisscharge. ‘Le Papillon’ will retail for Swiss Francs 33, whereas the cometing Swissmovements cost Swiss Francs 150. Titan’s Le Papillon movements will qualify for themade-in-Switzerland label as components, which constitute 50 per cent of the cost of themovement, will be of Swiss origin. Titan will make the electronic circuitary parts like stepmotor, quartz crystal, chip and battery will be sources from Switzerland while the plate, themoving parts, at its Hosur plant. Titan also plans to provide a stiff competition to the Swisscompanies by introducing their range of watches in Europe. Titan’s marketing strategy willbe to offer watches that match the Swiss watches in looks and quality, but which come at amuch lower price. Thus, Titan will be adopting the strategy of being the cost leader in theoverseas markets.THE ROAD AHEAD............... The removal of Quantitative Restrictions has seen a flood of international playersgetting into the Indian market. With low levels of watch penetration and the large size ofthe Indian population, India is a market that no one can ignore. The future “Time Keepersto the Nation” will not only be Indian but alos French, Swiss and Japanese. This puts fortha new and a formidable challenge in front of the Indian wathc manufactures and especiallyTitan, which is the dominant player in the Indian market. As we have seen earlier, till dateTitan has always been the proactive Shaper and not the reactive Adaptor. Titan has theexperience of playing against public sector giants like HMT, but fighting against nibblefooted International players with deep pockets, and the latest technology is going to be adifferent 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’ssuccesses in the markets like Dubai has given a hint that Titan does have the capacity tocompete internationally, but, whether Titan can repeat its Indan success story on theinternational 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 watchindustry is set to grow at about 9 per cent-11 per cent in 2004, according to Mr. KapilKapoor, Regional Director, Timex, South Pacific and India. Mr. Kapoor, who was here to launch a theme store at Pradad Imax Mall, toldBusiness Line that the overall watch industry in the country was looking up. This is clearfrom the positive signals from the Indian economy. When the economy grows, there ispositive traction towards investments where lifestyle products and retail are major gainers. Within the watch industry, certain sectors are growing driven by the luxury-endmodels and sports patterns. However, one segment that has historically grown - goldjewellery - 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 unorganisedmarket. “A conservative estimate is that we could grow the watch market by at least 6 percent to 7 per cent. But with acceleration in the retail segment, we could possibly witnessgrowth 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 tolobby as part of the organised sector against this market. We have got together asassociation of watch manufactures and we are seeking a minimum levy on the valueascribed and have requested the Government to bring in a directive to regulate themarket,” he said. “The landed duty for watches works out to about 70 per cent – covering basicduty, 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 theGovernment being a signatory to trade and tariffs, some more changes, which will make itmore competitive, are expected in the next two to three years, he said.
Chapter 4 COMPANY PROFILE Company ProfileTitan Industries Titan Industries Limited is a joint venture of the Tata Group and The Tamil NaduIndustrial Development Corporation (TIDCO). Its business activities cover wathes, clocksand jewellery. In a short span of time, the company has built and envitable reputation forits corporate practices, products and services. Titan Industries is India’s leading manufacturer of watches which it markets underthe 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 shareamong nationally recognised brands. Titan Industries will make and market over 7 million watches this year, making itthe sixth largest global player in the category of “manufacturer brands”, i.e. watchcompanies that manufacture the components that go into the branded products theymarket.. 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 twoTitan controlled retail chains. The company’s watches are presently sold in about 40countries of the world through marketing subsidiaries based in London, Dubai andSingapore. They enjoy a reputaion for being excellent value for money. Titan Industriesalso makes watches for international labels. The company employs aroud 3,700 personnel. Its manufacturing facilities occupya built-up area of 33,000 square meters. The main manufacturing plants are located atHosur in the southern state of Tamil Nadu. In addition there is and assembly unit at DehraDun in the northern state of Uttar Pradesh and a unit that profuces electronic circuitry forquartz watches in the state of Goa. Headquarter offices are in Bangalore, the InformationTechnology capital of India.Achievements
Tital Industries Limited is recognised as a corporate leader by itsprofessional peers. It has been ranked as India’s leading consumer durablemarketing company for the past seven years (1993-99) in polls conducted by thecountry’s leading advertising and marketing publication A&M. It was rated asone of Asia’s top 200 companies and India’s top 10 in each of the years 1994 to1998 in surveys conducted by The Far Economic Review. In another surveyconducted by The Economic Times in the year 2000, Titan was voted India’smost admired brand. Recognition for the company’s engineering capabilities,innovative products, advertising excellence and services to the community hascome in the form of several prestigious Indian and international awards. Chapter 5 ANALYSIS & INTERPRETATION Analysis of DataThe Respondents and the Choice of Districts Data were collected from the Kottayam district of Kerala State. The researcherinterviewed 250 respondents in the district.Age of the Respondents The majority of the respondents fall in the age group of 15-22, 45% of therespondents belong to this category. 39% of the respondents come under the age group of23-30. 6% each belong to the age groups 31-35 and above 45. 4% of the respondents arein the age group 36-45. Table 1 gives a clear picture of the age group distribution of thetotal 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 120 100 Number of Respondents 80 60 40 20 0 15-22 23-30 31-35 36-45 Above 45 Age Groups 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 therebythe selection of the product. The criteria of an educated person will be different from thatof 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 theeducational 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 100Monthly Family Income of the Respondents One of the most important factors that influence the buying behaviour of theindividuals is the family income. To a great extent they make their selection according tothe 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 theincome group above 15000. 16% are having a monthly income 2001-4000. 10% of therespondents are in the income range below 2000. 5% of the respondents fall under theincome group 10001-15000. The details regarding the number of respondents in eachincome group are available from Table 3 and the pie chart.
Monthly Family Income 18% 10% 16% 5% 22% 29%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 100Source : Primary data. The monthly family income of the respondents can be obviously explained withthe help of the pie diagram. The following pie chart exhibits the income level of therespondents. 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 1Source : Primary data.
Chi-Square TestHo: 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 areindependent.Number of watches owned by the Respondents Usually people in our society own one or two watches at a time. It is noted thatamong 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 fivewatches and more than five watches. From this it can be concluded that like otherornaments watches are not used for luxury purposes but for necessity. When we say thisalso another significant fact is that the design and quality influence the customers inchoosing the watches. Table 4 gives the clear picture about the number of watches that therespondents 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 100Source : Primary data.
Familiar Brands of Watches As mentioned above the design and other features of the watches incluence thecustomers in their selection. Anyhow people have certain familiar brands of watches andwhenever they hear about the watches such brand names come to their mind. Table 5indicates 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 thisregard HMT watches occupy the second position and the percentage of respondents morefamiliar 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 thepercentage 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 areHMT (19%) and Sonata (18%). Other important brands of watches that the respondentsuse are Citizen (8%), Timex (8%), Classic (6%), Rado (4%) and Casio (4%). Table 6provides 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 100Source : Primary data.
Type of Material Used by the Respondents Type of material refers to the type of watch that the respondents use. The majortypes of watches available in the market are gold plated watches, watches with leatherstraps, steel plated watches, two-tone watches, plastic watches etc. Among therespondents, the majority i.e., 35% use gold plated watches with leather strap. 29% of therespondents use all gold plated watches and 18% use all steel plated watches. 13% useplastic watches and 5% use Two-tone watches. Table 7 shows the types of materialspreferred 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 100Source : Primary data. The graphical respresentation of the different type of materials used by therespondents can explain the matter obviously. The graphical representation of use of thedifferent types of materials is given below.
Type of Material 100 88 90 80 No. of Respondents 72 70 60 50 45 40 32 30 20 13 10 0 All Gold Gold Plated All Steel Two-Tone Plastic Plated with Leather Strap Type of MaterialOccasion of Buying Watches Another important fact noted by the researcher is that friends or relatives gifted36% of the respondents’ watches at certain special occasions. Only 64% of therespondents reported to have bought the watches for their own use. From this one thingcan be inferred that the industries of the watches have to consider this factor in designingthe 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 watchesbought by the respondents for their own use. In the table the category ‘Others’ includesoccasions to recognize in their achievements, for encouragement etc. 44.45% of the giftsare 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 100Source : Primary data.Factors influencing Purchase Another important area to be considered is the factors influencing the interest orconcern of the customers in buying the product. There are some common factors thatinfluence 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 thedesign of the product. They are not bothered about the price, durability etc of the productbut the design of the watch. 26% take into account price of the watch before they buy itwhereas 17% of them are concerned about the brand name. 13% of the respondents givepriority 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 100Source : Primary data. The following graphical representation reveals the criteria of selecting a watch bythe respondents. It is more evident from the following graph. Factors influencing Purchase of Watches 100 90 No. of Respondents 80 70 60 50 40 30 20 10 0 Price Design Brand Durability After Sales Service Factors
Chapter 6 FINDINGS & SUGGESTIONS Findings1. No.of watches own : Usually people in our society use one or two watches at a same time. It is noted thatamong the respondents. 52% have only one watch another 27% of the respondents have 2watches. Only a very few percent of persons own more than two watches. The percentageof the persons own more than two watches is around 21. From this it can be concludedthat like other ornaments watches are not used for luxury purposes but for necessity. Whenwe say this also another significant thing is that the design and other features of thewatches influence the customers in their selection.2. Brand awareness : Out of 250 respondents 142 (57%) remember the brand name of Titan watcheswhen they are asked about the watches. In this regard the HMT watches occupy the secondposition and the percent of respondents more familiar with the HMT brand is 15. Thefollowing 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 hassignificant number of customers is HMT watches. It covers the 19% of the totalcustomers. 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 majortypes 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 themajority i.e., 35% uses Gold plated with leather strap watches. 29% of the respondents useall 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 fortheir own use. From this one thing can be inferred that the industries of the watches haveto 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 theirachievements, 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 orconcern of the customers in buying the product. There are some common factors thatinfluence 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 thedesign of the product. They are not bothered about the price, durability etc. of the productbut the design of the watch. 26 % of the respondents concern about the price of theproduct, they buy the watch, which is affordable by their finance set up. 13% are botheredabout durability. A good number of respondents i.e., 17% of them find importance in thebrand 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 themarket share of those brands Titan watches stand first, it is the major shareholder in themarket. Its main features are variety in design, different price category, etc. The customers in the different age groups and in the different income groupsconsider the various features like price, design, and the brands. Their criteria of selectiondiffer as their income/age/ and education varies. Most of the respondents (33%) use Titan watches. The second brand that hassignificant number of customers is HMT watches. It covers the 19% of the totalcustomers. 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 theproduction of gold type and plastic type watches.
Bibliography1. 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 Hindu4. Web site of watch industry.• www.google.com• www.yahoo.com APPENDIX MARKET SURVEY OF WRIST WATCHESName:Place:Dear Sir/ MadamI am Thomachan Babu as parts of my curriculum in fulfilling my MBA programmeaffiliated to SRM Deemed University have undertaken this project “Market Study on wristwatches among customers with reference to Titan Watches”. Kindly provide the necessaryinformation 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 Nos4. 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 use6. 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. Others7. 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 servcie8. 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