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 COLLEGE S.R.M. INSTITUTE OF SCIENCE AND TECHNOLOGY

(DEEMED UNIVERSITY)

MAY 2005

BONAFIED CERTIFICATE

Certified that this project report titled “A MARKET STUDY ON WRIST WATCHES

AMONG CUSTOMERS WITH REFERENCE TO TIAN WATCHES” is the

bonafide work of THOMACHAN BAU (Reg. No. 35103315) who carried out the

research under my supervision. Cerfified furher, that to the best of my knowledge the work

report herein does not form part of any other project report or dissertation on the basis of

which a degree or award was conferred on an earlier occasion on this or any other

candidate.

Signature of Internal Guide Signature of HOD

M.U. Subrahmanian Dr. Jayashree Suresh

Signature of External Guide:

Name of External Guide:

ACKNOWLEDGEMENT

I wish to express my profound gratitude to Mr. B. Santhosh Jayakrishnan, Area

Sales Manager of Titan Watches, Ernakulam, for allowing me to conduct this study in his

esteemed organization and for his timely and valuable assistance during the period of my

study.

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 profound

interest, guidance and encouragement in conducting this study.

I sincerely acknowledge the help extended by my internal guide Mr. Sony Santy for

his valuable help and guidance in the beginning of the project.

My sincere thanks also due to the respondents of the survey who have co-operated

in 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 to

me.

CONTENTS

Ch. No.

Title Page No.

1

Acknowledgement

List of Tables

Declaration

Executive Summary

1. Introduction of the study 1

1.1 Industry Profile 2

1.2. Objectives 3

1.3. Scope of the study 4

1.4. Limitations 5

2. Research Methodology 6

3. Review of Literature 10

4. Company Profile 32

5. Analysis and Interpretation 35

6. Findings of the Study 48

7. Suggestions 51

8. Conclusion 53

9. Bibliograpy 54

10 Appendix 55

LIST OF TABLES

Sl. No. Title Page No.

1. Age of the respondents 36

2. Education of the respondents 38

3. Mothly income of the respondents 39

4. Chi-Square Table 40

5. No. of watches owned by the respondents 41

6. Familiar brands of watches 42

7. Currently using brand of watches 43

8. Type of material used by the Respondents 44

9. Occasion of buying Watches 46

10. Factors Influencing Purchase 47

DECLARATION

I THOMACHAN BABU, here by declare that this project report titled “Market

Survey of Wrist Watches” is an orginal work of mine and I completed my work under the

guidence 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 not

formed on the basis of any other report.

Executive Summary

The study was done for Titan Watches, Ernakulam. Today Titan is the market

leader of watch industry in India. The project was undertaken to study the market analysis

of Titan Watches and it’s co brand Sonata, in the Kottayam district of Kerala through

customer survey. It includes market share analysis of a Titan Watches, and brand

awareness and brand preference. A dealer survey was also conducted for studying the

competition in watch market.

For the study of above topic a sample survey has been conducted at the Kottayam

district. The questionnaire for customers containing 8 relevant questions. The customers

were 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 brand

watches.

The survey has revealed certain facts are accessed appropriate recommendations

are made based on the study.

Chapter 1

INTRODUCTION

Industry Profile

History

Time, the Fourth Dimension poundly influences all aspects of life. People are

constantly aware of the passing of time in their daily activities. Without the ability to

synchronize comings and goings at school and work, complex societies would simply be

unable to funcion. Until a few hundred years go there was no way to tell time more

accurately than the nearest hour. The introduction of accurate timepieces played a major

part in the development of modern civilization.

Watches and clocks are the most common devices for measuring time. The first

portable timekeeper, the watch was developed shortly after 1500. With recent advances in

automation and electronics, modern watches and clocks have become less expensive and

more accurate.

Watches were developed rather than clocks. The first portable timekeeper or

watch was produced during the Renaissance. Earlier there were mechanical watches.

Althrough mechanical watches are still manufactured in large quantities, they are

increasingly being supplanted by electronic and electrical time keeper. These newer devises

are cheaper easier to manufacture, and considerably more accurate.

Introduced in 1953, the funing fork watch was the first commercially successful

electronic watch. Instead of a mechanical, it had a battery-driven funing fork.

Objectives of the study

General Objective

To find the Market Share of Titan & Sonata in the Kottayam district of Kerala

state.

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 to

understand the awareness level of Titan watches among respondents. It also help to

understand the buying influences, Brand preference and Brand Switching. The research

findings of the study will help the Titan Watch Industries Ltd. to frame certain strategies to

improve their products.

Limitations of the Study

The study was conducted only in one district of Kerala and the same may not be

representative 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 exact

representation of the total population.

Chapter 2

RESEARCH METHODOLOGY

Research Methodology

Research methodology is the backbone of the project work. It means the way one

researcher selects his sample and sample size, methods of data collection, various tools

used for studying problem with certain objectives and objectives in view.

Research Design

The study is descriptive in nature. Design research studies are those which are

concerned with describing the characteristics of a particular individual.

Non-probability sampling has been used in this study. Under this non probability

as ling convenience sampling was chosen. The study was conducted on the basis of a

survey carried out in Kottayam district of Kerala State. The data of the survey was collected

through an administratively structured questionnaire. The collected data was latter analysed

and interpreted. Based on the findingds some recommendations have been made.

Data

Data was unprocessed information which one researcher collects through the

survey. It is the basic factor, which gives the information about the problem or subject

under study. Data are two-type primary and secondary.

Nature

This project work purely relies on primary data to study the objectives. The

primary data was collected through a structured undisguised questionnaire containing. A

survey conducted for gathering data from the respondents through questionnaire.

The questionnaire was prepared based on the objectives set. The questions were

structured and direct so as to make the respondents understand easily. It is framed in such

a manner that respondent take around five minutes to give their responses. It’s the first

hand information.

The secondary data were collected from:

Journals and company brochures

Industry surveys

Business magazines

Internet

Source

Consumers and watch dealers.

Research approach

It includes surveys, fact-findings and enquiry’s of different kinds. Its major

purpose 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 prepared

was 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 Technique

Convenient Sampling.

Population elements are selected for inclusion in the sample based on the case of

access, it can be called convenience sampling.

Pre-testing

A pilot survey among 15 respondents was conducted to find our the reliability and

validity 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 to

collect lot of information. The fieldwork was conducted in Kottayam district of Kerala

State.

Chapter 3

REVIEW OF LITERATURE

Review of Literature

Since the beginning of time, the passing of the hours has ruled and shaped the

everyday activities of man. Productivity and even quality of life is measured by how fast

one can work, walk, talk, and even how much of activity one can cram into a given time

period. Time is precious commodity. To measure this commodity, man has used various

instruments across the years.

The earliest humans used the position of the sun in the sky to approximate the

time of day. Even today in remote parts of the world and with people, who do not have

access to clocks or watches, time is told by how far the sun is in the sky or where the

shadows are falling on the monutains. Since then, man has throught up numbers ways of

telling time. The most inventive and earliest of which were the Egyptian sundial, the Greek

warerclock and the Sung Dynasty’s burning of candles and incennse. All these culminated

with the invention of the mechanical clock. The importance of keepting time allowed

innovation to proceed at stedy pace and certain world events further facilitated

advancement in the science of time keeping. For example, practically led to the evolution

of the clock into the poclket watch and the invention of the first wristwatch by Patek Philip

in 1868. The advent of the World War led to the wide spread manufacture and use of

wristwatches. 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 as

measuring altitude, depth, temperature, dates, and days, to name few. In addition, the

watch is also uded as an object to vanity and as a status symbol. The type of watch (brand

name or style) that he is wearing can tell the social status of a person. People also collect

watches as objects of precision and beauty, and some watches increase in value over the

years. Some of the most popular brands of watches to day range from those that are know

for their precision and reliability to those which are more known for their aesthetic beauty

and brand names. In recent times, these two characteristics have been merged in many

cases since they support each other. Collectors value their items of interest according to the

various specialization and features of different watch making companies. While the

Germans made the first watches in the early 1500s the skills spread to neighboring

countries. France and England dominated the watch industry initially, only to be overtaken

by the Swiss throught their persistence in the industry as well as various political, social

and technological developments in Europe. Today Swiss-made watches are the most

famous 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 major

contenders in the export marker, right behind the Swiss. Overall, the most famous

countries, 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 are

Omega, 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 fossil

and Gucci.

This looks at the global value chains, industry structure, critical tecnologies and

political determinants and social and emvironmental factors affecting the watch industry to

date. It analyzes the main factors driving the watch industry and offers some strategies for

watch 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 Jawaharlal

Nehru, during his visit to Japan, received a watch as a gift inspiring him to bring watches

closer home in his country. This dream became a reality in 1961 when the first watch

factory was commissioned in India by Nehru in 1961. This was the watch division of HMT

Ltd.

Citizen, the popular Japanese manufacturer, evinced interest to train select Indian

people at their watch manufacturing plant in Japan. The year 1962 saw the manufacture of

the first component and then began the slow but steady growth of watch manufacture in

the country. The first watch model manufactured by HMT was the Janata model, which

exists even today, was gifted by Pandit Nehru to the senior most employee of the

company. The next 10 years saw the Indian-made watches carve a niche for themselves in

the 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 the

watch manufacturing activities were beefed up. An assembly plant was set up and the

concept of a mother plant with other units in vaious states was pioneered.

The early 80s were a period of technological revolution with drastic changes in

tastes and preferences. The integrated chip was invented in the US and digitals were in

demand and LED watches flooded the market. Japanese companies took over the

manufacturing of LCD for digital watches. Quartz technology had picked up and there

was a shift in focus from mechanical to quartz watches.

1987 saw the establishment of Titan watches, which was formed by the Tatas and

TIDCO (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 designs

and prices.

Today the Indian market requirement for watches is well over 20 million watches

per year. Majority of the demand is generated by the sub-Rs.1000 segment. Liberalization

has brought with it a host of brands for the Indian market, viz. Piguet, Cartier, Christian

Dior, Omega, Raymond Weil, Rolex and Tissot. Indian companies are now among the few

set-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. The

new exim policy announced on 31st March 1999 removed all quantitative restrictions on

the import of fully assembled watches - a full three years ahead of commitment made to

the WTO. This will lead to significant upheavals in the watch industry and the trade. Most

affected will be the watch makers with significant idle capacity, small or weak brands and

host of component suppliers to them. Least affected will be the players whose sales exceed

manufacturing 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 a

foray in the watch market. We use Michael Porters 5 forces model to cary out the industry

analysis.

Industry Structure: The industry consisted of the organized segment which was

dominated by HMT, and the unorganized segment consisting of small time local players

and the gray market. HMT, the timekeepers to the nation, manufactured only mechanical

watches. The HMT watches fulfilled only the functional needs of a watch. Small time

players lacked the nation wide reach that HMT had. They also did not have reliable support

network. The gray market was flooded with quartz and digital watches from Japan. Though

the gray market did not have the support network their sturdy performance and their looks

made the Japanese watches very attractive purchases.

Buyers: The penetration of watches within India was low, therefore there was a huge

untapped market. The buyers wanted watches that offered more than just the functional

benefit. There was also a latent demand for quartz analog and digitasl wathes that HMT

was 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 were

willing to pay a premium for watches with good design and performance.

Suppliers: HMT had fully integrated operation for mechanical watches. There was no

concept of having vendors in the watch industry. Since the supplier’s role in this industry

was very limited they did not have strong bargaining power.

Substitutes: The quartz technology had become popular all over the world. Quartz

watches from Japan had already beaten the Swiss in their own game in the sixties and the

seventies. The Swiss had refused to embrance the new quartz technology and they had

suffered because of their adherence to mechanical watches. HMT was making the same

mistake in India. Since the imports were not freely permitted, there was no immediate

possibility 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 space

in the market for a new entrant who would provide watches with good design and reliable

performance. The new entrant could score over HMT with good design, over the gray

market by providing dependable after sales service, and over the local players by

establishing nationwide distribution network.

TITAN INDUSTRIES LIMITED

The Origin

The industry structure prevalent in the 1980s provided a golden opportunity for

the Tatas who were one of the most respected names in the Indian industry. They not only

had the financial muscle to enter the watch business but also had the feel of India as a

market. This led to the birth of Titan Industries Ltd. in 1984.

From its inception, Titan decided that it would be the shaper of the watch

indudtry and not an adapter. They created competitive advantage through differentiation.

They first concentrated on technological leadership. The Tatas took 2 decisions – they will

manufacture only quartz (analog and digital) and not mechanicals, and they would set up

state-of-the-art plant to manufacture watches in a wide variety of designs and prices. HMT

and local players had always looked at the functional utility of the watch. Titan was first in

India 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 something

that is valuable to the buyer beyond simply offering low price. Differentiation allows a firm

to command a premium price, to sell more of its products at the same price, or to gain

equivalent benefits such as greater buyer loyalty. Differentiation leads to a superior

performance 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 and

features to increase buyer value. This was the pefect example of differentiation through

technological leadership and product technological change.

In the initial years Titan chose to concentrate on the higher end of the market

which was responsive to the ‘style’ element of the watch. Also this segment of the market

was relatively price inelastic. This was done so as to build the brand image of Titan as

manufacturer of good quality stylish watches. Over the years the Titan brand and its

signature tune – Mozart’s Fifth Symphony – has become one of the most recognised in

Indian consumer durable goods segment.

1990s was the liberalization of the Indian economy. There were two trends in the

watch industry after liberalization, viz. the giant of the watch industry changed from HMT

to Titan, and small manufacturers have gained strength in the market. Why did this

happen? Mainly because times changed, but HMT did not. In fact when the other rivals

were running a 100 metres, HMT was walking backwards. HMT lacked a clear market

strategy or research. It failed to develop a good network of loyal and honest dealers. There

was rampant corruption in marketing division. HMT also failed to provide a basic feature

that any products must always satisy: quality. In fact of all the watches that HMT sold in

the market, 40% came back within 2 months for repairs. About 7% of the watches were

rejected at the dealer’s level because of the manufacturing defects. Being a public sector

undertaking, HMT had to dance to the tunes of the political bosses. It was overstaffed and

grossly 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 margin

high growth quartz segment was a mere 18%. This led to a sudden and drastic decrease in

HMT’s total market share in mid-90s.

During this period, the unorganised sector also grew very fast – almost 55% of

the demand in the total market size of 20 million watches was being met by the

unorganised 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 cropped

up. 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 years

Titan had built a formidable distribution and support network. Titan’s customer orientation

was reflected through their advertising campaings. Whereas HMT called themselves

‘timekeepers of the nation’, Titan told masses “if you have the inclination, we have the

time”.

Typical sources of differentiation in the value chain

Earlier Titan created an advantage through its design and styling. Now it created

an 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, which

showcased the range of Titan watches and also provided with support and service. TIL and

Timex Watches BV entered into a joint verture on November 6, 1990. Titan tied up with

Timex to create a presence in the lower end segment of the watch market. Timex provided

the know-how in the plastic watch manufacture and Titan provided is retail and

distribution strength. Timex was positioned as a separate youthful brand. This served two

purposes, Titan protected its image as the premium watch manufacturer and at the same

time created a presence in the lower end of the market via the Timex venture. Also Titan

had always strived to keep its costs in control. Right since its inception Titan had

implemented World Class Manufacturing which helped to keep costs under control. The

major thrust areas under WCM were: Just –in –Time Manufacturing, Total profuctive

Maintenance, Total Quality Control, Total Employee Involvement, and Housekeeping.

ThoughWCM meant lower costs, Titan always differentiated itself through other

elements of the value chain viz.design, marketing and support. This meant more buyer

value 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-bands

that can be defined, in general, as Popular, Mid, and Premium. At the bottom, the

emphasis is on volumes-not margins. At the top, the emphasis is on profits and image-not

volumes. 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 the

present strategy of TIL. TIL was first focussed only on the premium segment of the watch

market. As per the above-mentioned strategy TIL is moving into the mass market for

watches. To broaden the mass base, TIL is creating new segments and increasingly

focusing on segments individually. In the past few years TIL has launched at a number of

initiatives focussed on specifc segments.

PRODUCT PROFILE

In the last few years Titan has begun to face a competition from HMT and other

players in terms of launch of newer elegent models. Titan, who pioneered the concept of

repositioning watches as upmarket lifestyle articles, now faces stiff competition from

domestic as well as foreign watchmakers. It has moved from strength to strength and has

zeroed on using focus as a source of competitive advantage. Increasing focus necessitates

paying minute attention ot the market requirements. Titan has segmented the watch market

and clearly identified clearly the needs of each group.

The strategy that Titan has adopted in recent years is that of focus. It has

segmented the market into different need groups and tailored its strategy to the exclusion of

others. By optimizing its strategy for the target segments, it seeks to achieve a competitive

advantage in its target segments.

Market segmentation is concerned with identifying differences in the buyer

behavior, allowing a firm to match its capabilities with distictive products and related

marketing programs. Market segmentation tends to focus on the marketing activities in the

value chain in which Titan commands a very formidable position. This also allows Titan to

find out how it should serve each segment.

Titan has tried to achieve a balance of cost focus and differentiation focus. By this we

mean that in the lower end (Popular segment) of the market, it seeks to achieve a cost

advantage by exploiting the differences in cost behaviour. In the mid-and higher-end (Mid

and 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 niche

it aims to serve. The various brands of Titan and the price range in which they fall are

tabulated which follows:

Brand Price Range (Rs) No. of Models

Insignia Gents 3750 to 7750 98

Insignia Ladies 1600 to 7500 89

PSI2000 Gents 1780 to 7500 61

PSI2000 Ladies 800 to 4350 36

Regalia Gents 1820 to 7790 157

Regalia Ladies 1725 to 7770 168

Royale Gents 960 to 2810 123

Royale Ladies 1120 to 2830 91

Classique Gents 850 to 2450 268

Classique Ladies 565 to 2930 161

Spectra Gents 1140 to 1830 57

Spectra Ladies 650 to 1410 22

Exacta Gents 600 to 1170 48

Exacta Ladies 595 to 800 25

FasTrack Gents 550 to 1430 57

FasTrack Ladies 850 to 1050 11

Technology 2350 to 8170 55

Raga Ladies 1420 to 4000 123

Nebula Gents 8950 to13500 8

Nebula Ladies 5950 to 6950 4

Bandhan 1675 to 8085 34

Sonata Gents 295 to 1195 200

Sonata Ladies 350 to 1100 96

Sonata Pair 1495 to 2000 10

Dash Boys 295 to 395 15

Dash Girls 250 to 350 13

Source: Tradepost, 9 March 2000

Titan has developed a range of brands that encompass the entire spectrum of the

watch market. Each of the brands is targeted to satisfy the needs of a particular segment of

the 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 had

chosen to play in (3 million units per annum), its relatively slow pace of growth (10 per

cent 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 rather

than margins. The launch of the Sonata range can be attributed to Desai’s desire to stick to

the pyramid. The sub-brand Sonata was spun off as a separate division, and today Sonata is

India’s second largest selling brand, after Titan.

FasTrack – FasTrack was an attempt to target the urban youth segment with an

appropriate line of products. After the initial success of the metal collection, FasTrack

offers a variety of fashionable trendy watches at affordable prices. The FasTrack range has

grown by almost 100 per cent in volume terms and is easily the largest youth brand in the

country. 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 watches

internationally and the need to revitalise a dormant segment of the Indian watch market. It

also extends the width of Titan’s offer to the fashion conscious youth of India. Breaking

away from the traditional, functional platform, Titan has positioned the FasTrack Digital

collection on a fashion platform.

Dash!– The childern’s watch brand, Dash! launched by Titan a year and a half back, has

garnered volumes of 2.5 lakh units since then. The company has said that the brand is well

on its way to achieving the one million target in three years. Dash!, targeted at the age

group of 6 and 14 years, is priced in the range of Rs 250 and Rs 395. Dash! competes with

Gimmis 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-like

stores as well as a consequence of the extension of distribution from the 8-city launch to

full national distribution.

BEYOND WATCHES:

Titan decided that it did not want to remain only in watch segment. It wanted to

extend the brand unmbrells to the hitherto untapped market segments, viz. branded

jewelry, 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 be

profitable for a long time. It is now being repositioned as a pure jewelry brand. Tanishq is a

four-year-old brand, available through around 25 exclusive boutiques in India. Starting our

with contemporary designs, Tanishq now has a very comprehernsive, traditional 22-carat

jewelry line that compares well with any traditional Indian jeweler. Tanishq is reaching out

to the mass market by shedding its premium high-end image to become the largest jeweler

in the country by 2001. In a bid to extend its reach, Tanishq has introduced a large variety

of 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 line

ar selective outlets. Plans are now on to increase the number of outlets to around 50 by the

end of the year. Titan plans to spin off Tanishqu as a separate entity, as the jewelry business

does get well with the proposed mass-market orientation of the company. Now the high

priced watches will be marketed under sub-brand Nebula. Tanishq will remain in the

premium readymade jewelry segment.

Synchrony - Titan’s strategy is focussed on segmenting the Rs. 500-Rs. 2,000 clock and

time-piece marktet, based on price, lifestyle and customer by introducing exclusive

collection in each category. Titan feels that well crafted timepieces woulb be in demand in

corporate and as gift items. With Sychrony, the focus would be on style and design

attributes rather than the functional aspects of a clock.

In addition to this, Titan has created a 115-strong network of watch-stores named

Time 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 started

selling its watches through its website www.titanworld.com. Its entire product range catalog

with model numbers, photographs and price is availble on the Internet. The watches are

home delevered and payment can be made by cheque. The delivery is made on realization

of the cheque. Credit cards are accepted but presently the credit card information transfer

is not secured. Titan is working to enable a secured transaction processing and this will be

enabled shortly.

THE TATA BUSINESS EXCELLECE MODE (TBEM):

Titan Industries has signed up to implement the compliance plan laid out by the

TBEM. Beginning July 2000, it will be evaluated on 7 paramemters that constitute the

TBEM: leadership, strategic planning, customer and market focus, information and

analysis, process management, human resouces focus and business results. The goal is to

reach 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 and

the method of deploment lie entirely with the company. It also shies away from making any

suggestions about how the organisation should be strucured and whether they shoul have

quality-planning department or not, and any suggestions about starting points, systems,

tools, and techniques. The TBEM drives excellence across funtions in the following

manner:

The Leadership criterion checks haw senior leaders create leadership system based

on 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 customer

groups, key customer needs, and complaint-management issues. Titan has always been a

customer centric organisation and always has focussed on satisfying the customer demands.

The Strategic Planning criterion examines how the company develops strategic

objectives, action plans, and resource-allocation. Since its inception, Titan has been the

shaper of the watch industry. It has identified the future trends well in advance and taken

appropriate steps in the right direction to emerge as the leader in the industry.

The information and Analysis criteria check whether the organisation has key

metrics in place to measure and analyse performance. Being market- driven, Titan has its

information 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 delivery

process, and supply chain management. Titan has pioneered the ‘style’ concept in the watch

industry and is the undoubted leader in design. Also WVM ensures high quality of

products at all times.

The Business Results critertion measures the organisation’s performance in areas

like customer satisfaction and product- and service- performance.

Implementation of the TBEM will ensure that processes and practices are

customer-centric, company pursues agility, uniform performance are employed, knowledge

and best practices are shared, and a unified management strategy for the Tata Group is

employed.

THE TATA BUSINESS EXCELLENCE MODEL (TBEM)

The Future

Titan has followed a strategy of serving the entire watch market by targeting a

separate 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 chief

operating officers (COOs) appointed at the helm of these BUs.

BU concept represents a more efficient way of managing, COOs running the BUs

will be responsible for the entire value chain starting from design to strategy to sales and

marketing. Such a BU stricutre will allow Titan to be more flexible in its market operations

and approach. It will also cultivate a healthy competition under the parent Titan brand

umbrella, without causing any BU to eat into the market share of any other BU as they are

catering to needs of different market segments.

RESTRUCTING CLOCK BUSINESSES:

Titan has evolved a whole new strategy for its low-end clock business by going in

for ‘virtual manufacturing. Titan has stopped making clocks at its own facility and is now

sourcing them from vendors, local and international. Titan’s inputs come in the form of

design, styling, marketing and quality control.

Titan plans to focus on the segment of the clock market where it enjoys a

competitive advantage and where it can leverage its three core competencies, viz. design,

brand name and market reach. The company plans to focus on beautifully crafted

clocks. Under the “Kaal” banner it has recently introduced clocks that symbolize the fusion

of time with Indian craftsmanship. Titan plans to use the investment made in the clock

manufacturing to make plastic watches and its new offerings.

BRANDED JEWELRY BUSINESS:

Titan plans to spin off Tanishq as a separate entity, as the branded jewelry

business 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 sold

under the Nebula brand name.

Titan has realised that there is a huge untapped market for branded jewelry in

India. The basic premise for branded jewelry is assurance of quality, fashionable design and

impeccable 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 competition

from the traditional jewelers, it plans to push the brand on the trust/quality platform. The

advertisement pitch is also on similar lines.

Tanishq is rationalizing its prices to increase its customer base and become the

larger jeweler in the country by 2001. There is a common feeling that Tanishq products are

not very accessible and affordable to common buyers. As an initial step, the company has

decided to train its boutique staff on how to woo and handle customers by making the

brand more accessible, affordable and attractive.

To expand Tanishq’s geographical reach, Titan would open 30 more outletsacross

the country during the next calendar taking the total to 60. The comapny has already signed

17 franchise agreements and another eight are under negotiation. Tital would also

introduce caret meters in 12 more outlets- taking it to around 30 - to help customers buy

and sell right quality gold. The company recently launched awareness and customer

interaction program with a view to collate their feedback on tastes, styles and patterns. The

exercise 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 - both

franchise network and own shops - to facilitate greater interaction within the brand. The

networking exercise would be kicked off by mid-2000.

Tanishq plans to double its turnover in 1999-2000 to Rs.150 crore by selling over

3 lakh pieces of jewelry and is looking at Rs.200 crore during 2000-2001. It is looking at a

quantitative return pattern without charging an undue premium on its products. The

company plans to leverage on the retailing and distribution clout to emerge as a premium

retailer of imported, high end fashion products and accessories in the personal wear

segment. 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 share

of Tanishq is less than 0.5 per cent. The potential for growth is therefore immense. If

Tanishq 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 – one

strategy for the domestic markets and a different strategy for the overseas markets.

Domestic strategy: Titan has established leadership in India by catering to every market

segment. 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 the

domestic markets.

Overseas strategy: Titan now plans to enter the European market. It will start off by

offering ultra-thin movements market under the brand name ‘Le Papilon’ with the all

important ‘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 Swiss

charge. ‘Le Papillon’ will retail for Swiss Francs 33, whereas the cometing Swiss

movements cost Swiss Francs 150. Titan’s Le Papillon movements will qualify for the

made-in-Switzerland label as components, which constitute 50 per cent of the cost of the

movement, will be of Swiss origin. Titan will make the electronic circuitary parts like step

motor, quartz crystal, chip and battery will be sources from Switzerland while the plate, the

moving parts, at its Hosur plant. Titan also plans to provide a stiff competition to the Swiss

companies by introducing their range of watches in Europe. Titan’s marketing strategy will

be to offer watches that match the Swiss watches in looks and quality, but which come at a

much lower price. Thus, Titan will be adopting the strategy of being the cost leader in the

overseas markets.

THE ROAD AHEAD...............

The removal of Quantitative Restrictions has seen a flood of international players

getting into the Indian market. With low levels of watch penetration and the large size of

the Indian population, India is a market that no one can ignore. The future “Time Keepers

to the Nation” will not only be Indian but alos French, Swiss and Japanese. This puts forth

a new and a formidable challenge in front of the Indian wathc manufactures and especially

Titan, which is the dominant player in the Indian market. As we have seen earlier, till date

Titan has always been the proactive Shaper and not the reactive Adaptor. Titan has the

experience of playing against public sector giants like HMT, but fighting against nibble

footed International players with deep pockets, and the latest technology is going to be a

different 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’s

successes in the markets like Dubai has given a hint that Titan does have the capacity to

compete internationally, but, whether Titan can repeat its Indan success story on the

international 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 watch

industry is set to grow at about 9 per cent-11 per cent in 2004, according to Mr. Kapil

Kapoor, Regional Director, Timex, South Pacific and India.

Mr. Kapoor, who was here to launch a theme store at Pradad Imax Mall, told

Business Line that the overall watch industry in the country was looking up. This is clear

from the positive signals from the Indian economy. When the economy grows, there is

positive traction towards investments where lifestyle products and retail are major gainers.

Within the watch industry, certain sectors are growing driven by the luxury-end

models and sports patterns. However, one segment that has historically grown - gold

jewellery - 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 unorganised

market.

“A conservative estimate is that we could grow the watch market by at least 6 per

cent to 7 per cent. But with acceleration in the retail segment, we could possibly witness

growth 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 to

lobby as part of the organised sector against this market. We have got together as

association of watch manufactures and we are seeking a minimum levy on the value

ascribed and have requested the Government to bring in a directive to regulate the

market,” he said.

“The landed duty for watches works out to about 70 per cent – covering basic

duty, 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 the

Government being a signatory to trade and tariffs, some more changes, which will make it

more competitive, are expected in the next two to three years, he said.

Chapter 4

COMPANY PROFILE

Company Profile

Titan Industries

Titan Industries Limited is a joint venture of the Tata Group and The Tamil Nadu

Industrial Development Corporation (TIDCO). Its business activities cover wathes, clocks

and jewellery. In a short span of time, the company has built and envitable reputation for

its corporate practices, products and services.

Titan Industries is India’s leading manufacturer of watches which it markets under

the 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 share

among nationally recognised brands.

Titan Industries will make and market over 7 million watches this year, making it

the sixth largest global player in the category of “manufacturer brands”, i.e. watch

companies that manufacture the components that go into the branded products they

market.. 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 two

Titan controlled retail chains. The company’s watches are presently sold in about 40

countries of the world through marketing subsidiaries based in London, Dubai and

Singapore. They enjoy a reputaion for being excellent value for money. Titan Industries

also makes watches for international labels.

The company employs aroud 3,700 personnel. Its manufacturing facilities occupy

a built-up area of 33,000 square meters. The main manufacturing plants are located at

Hosur in the southern state of Tamil Nadu. In addition there is and assembly unit at Dehra

Dun in the northern state of Uttar Pradesh and a unit that profuces electronic circuitry for

quartz watches in the state of Goa. Headquarter offices are in Bangalore, the Information

Technology capital of India.

Achievements

Tital Industries Limited is recognised as a corporate leader by its

professional peers. It has been ranked as India’s leading consumer durable

marketing company for the past seven years (1993-99) in polls conducted by the

country’s leading advertising and marketing publication A&M. It was rated as

one of Asia’s top 200 companies and India’s top 10 in each of the years 1994 to

1998 in surveys conducted by The Far Economic Review. In another survey

conducted by The Economic Times in the year 2000, Titan was voted India’s

most admired brand. Recognition for the company’s engineering capabilities,

innovative products, advertising excellence and services to the community has

come in the form of several prestigious Indian and international awards.

Chapter 5

ANALYSIS & INTERPRETATION

Analysis of Data

The Respondents and the Choice of Districts

Data were collected from the Kottayam district of Kerala State. The researcher

interviewed 250 respondents in the district.

Age of the Respondents

The majority of the respondents fall in the age group of 15-22, 45% of the

respondents belong to this category. 39% of the respondents come under the age group of

23-30. 6% each belong to the age groups 31-35 and above 45. 4% of the respondents are

in the age group 36-45. Table 1 gives a clear picture of the age group distribution of the

total 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

0

20

40

60

80

100

120

15-22 23-30 31-35 36-45 Above 45Age Groups

Num

ber o

f Res

pond

ents

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 thereby

the selection of the product. The criteria of an educated person will be different from that

of 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 the

educational 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 250 100

Monthly Family Income of the Respondents

One of the most important factors that influence the buying behaviour of the

individuals is the family income. To a great extent they make their selection according to

the 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 the

income group above 15000. 16% are having a monthly income 2001-4000. 10% of the

respondents are in the income range below 2000. 5% of the respondents fall under the

income group 10001-15000. The details regarding the number of respondents in each

income group are available from Table 3 and the pie chart.

Monthly Family Income10%

16%

29%22%

5%

18%

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 250 100

Source : Primary data.

The monthly family income of the respondents can be obviously explained with

the help of the pie diagram. The following pie chart exhibits the income level of the

respondents.

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 1

Source : Primary data.

Chi-Square Test

Ho: 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 are

independent.

Number of watches owned by the Respondents

Usually people in our society own one or two watches at a time. It is noted that

among 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 five

watches and more than five watches. From this it can be concluded that like other

ornaments watches are not used for luxury purposes but for necessity. When we say this

also another significant fact is that the design and quality influence the customers in

choosing the watches. Table 4 gives the clear picture about the number of watches that the

respondents 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 250 100

Source : Primary data.

Familiar Brands of Watches

As mentioned above the design and other features of the watches incluence the

customers in their selection. Anyhow people have certain familiar brands of watches and

whenever they hear about the watches such brand names come to their mind. Table 5

indicates 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 this

regard HMT watches occupy the second position and the percentage of respondents more

familiar 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 the

percentage 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 are

HMT (19%) and Sonata (18%). Other important brands of watches that the respondents

use are Citizen (8%), Timex (8%), Classic (6%), Rado (4%) and Casio (4%). Table 6

provides 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 250 100

Source : Primary data.

Type of Material Used by the Respondents

Type of material refers to the type of watch that the respondents use. The major

types of watches available in the market are gold plated watches, watches with leather

straps, steel plated watches, two-tone watches, plastic watches etc. Among the

respondents, the majority i.e., 35% use gold plated watches with leather strap. 29% of the

respondents use all gold plated watches and 18% use all steel plated watches. 13% use

plastic watches and 5% use Two-tone watches. Table 7 shows the types of materials

preferred 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 250 100

Source : Primary data.

The graphical respresentation of the different type of materials used by the

respondents can explain the matter obviously. The graphical representation of use of the

different types of materials is given below.

Type of Material

72

88

45

13

32

0102030405060708090

100

All GoldPlated

Gold Platedwith Leather

Strap

All Steel Two-Tone Plastic

Type of Material

No.

of R

espo

nden

ts

Occasion of Buying Watches

Another important fact noted by the researcher is that friends or relatives gifted

36% of the respondents’ watches at certain special occasions. Only 64% of the

respondents reported to have bought the watches for their own use. From this one thing

can be inferred that the industries of the watches have to consider this factor in designing

the 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 watches

bought by the respondents for their own use. In the table the category ‘Others’ includes

occasions to recognize in their achievements, for encouragement etc. 44.45% of the gifts

are 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 90 100

Source : Primary data.

Factors influencing Purchase

Another important area to be considered is the factors influencing the interest or

concern of the customers in buying the product. There are some common factors that

influence 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 the

design of the product. They are not bothered about the price, durability etc of the product

but the design of the watch. 26% take into account price of the watch before they buy it

whereas 17% of them are concerned about the brand name. 13% of the respondents give

priority 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 250 100

Source : Primary data.

The following graphical representation reveals the criteria of selecting a watch by

the respondents. It is more evident from the following graph.

0102030405060708090

100

No.

of R

espo

nden

ts

Price Design Brand Durability AfterSales

Service

Factors

Factors influencing Purchase of Watches

Chapter 6

FINDINGS & SUGGESTIONS

Findings

1. No.of watches own :

Usually people in our society use one or two watches at a same time. It is noted that

among the respondents. 52% have only one watch another 27% of the respondents have 2

watches. Only a very few percent of persons own more than two watches. The percentage

of the persons own more than two watches is around 21. From this it can be concluded

that like other ornaments watches are not used for luxury purposes but for necessity. When

we say this also another significant thing is that the design and other features of the

watches influence the customers in their selection.

2. Brand awareness :

Out of 250 respondents 142 (57%) remember the brand name of Titan watches

when they are asked about the watches. In this regard the HMT watches occupy the second

position and the percent of respondents more familiar with the HMT brand is 15. The

following 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 has

significant number of customers is HMT watches. It covers the 19% of the total

customers. 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 major

types 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 the

majority i.e., 35% uses Gold plated with leather strap watches. 29% of the respondents use

all 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 for

their own use. From this one thing can be inferred that the industries of the watches have

to 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 their

achievements, 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 or

concern of the customers in buying the product. There are some common factors that

influence 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 the

design of the product. They are not bothered about the price, durability etc. of the product

but the design of the watch. 26 % of the respondents concern about the price of the

product, they buy the watch, which is affordable by their finance set up. 13% are bothered

about durability. A good number of respondents i.e., 17% of them find importance in the

brand 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 the

market share of those brands Titan watches stand first, it is the major shareholder in the

market. Its main features are variety in design, different price category, etc.

The customers in the different age groups and in the different income groups

consider the various features like price, design, and the brands. Their criteria of selection

differ as their income/age/ and education varies. Most of the respondents (33%) use Titan watches. The second brand that has

significant number of customers is HMT watches. It covers the 19% of the total

customers. 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 the

production of gold type and plastic type watches.

Bibliography

1. 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 Hindu

4. Web site of watch industry.

• www.google.com

• www.yahoo.com

APPENDIX

MARKET SURVEY OF WRIST WATCHES

Name:

Place:

Dear Sir/ Madam

I am Thomachan Babu as parts of my curriculum in fulfilling my MBA programme

affiliated to SRM Deemed University have undertaken this project “Market Study on wrist

watches among customers with reference to Titan Watches”. Kindly provide the necessary

information 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 Nos

4. 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 use

6. 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. Others

7. 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 servcie

8. 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