Post on 07-Nov-2014
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WATCHES
Submitted by:- Navneet Namrata Vishal Praveen
INDUSTRY OVERVIEW•50 million wristwatches are sold in India every year.
• Male watch buyers far outnumber females and account for around 65% of sales.
• Students are the largest segment of buyers accounting for approximately 30% of the sales.
•The organized watch market in India is around Rs 2,250 crore
•Market has been split into low end, mass market, mid market, premium
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Major Players
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HMT Ltd.• HMT started manufacturing Wrist
Watches since 1962• Technical collaboration with
Citizen, Japan• 4 integrated manufacturing units• HMT Watch manufacturing units
ISO-9001 certified
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• Mechanical Watches - Environment friendly– Automatic– Hand wound: Ladies, Gents
• Quartz Analog Watches– Roman
• Alarm Watches• EL Night Watches• Multi Dial Watches• Dater Watches• Plain Watches
– Elegance• Gold Line• Bracelet• Slim Line
– Utsav– Lalit: Ladies, Gents– Sangam– Swarna: Ladies, Gents
HMT Ltd. - Brands Special Watches
• Freedom• Braille• Nurse
Watches• Fragrance
Watch
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HMT Ltd. – Strategies• Targeted the global market• State-of-the-art technologies – IT
Infrastructure• Collaboration with ISA Quartz,
France and Fraporlux, France apart from Citizen, Japan
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HMT Ltd. – Positioning• Positioning based on age, sex, competition• Teenagers– Pace
• Older customers– Astra
• The male segment– Roman
• First watch company to launch watches for children– Zap
• Utsav – to compete with Titan Raga– Bracelets, Jewellery and Bangles
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HMT Ltd. – Distribution
• Manufacturer – Dealer – Retailer – Customer• Established a strong distributor
network of 10,000 distributors and 50,000 retail outlets• 1990: Followed Titan in introducing
C&F Agents
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HMT Ltd. – Advertising
• Huge early investments• Catchy slogan “If you have the
inclination, we have the Time”• Portrayed nationalistic instincts–“Timekeepers to the Nation”
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Titan Industries Ltd.• Titan Industries Ltd. set
up in 1987• Joint venture of the Tata
Group and TIDCO• Annually markets over 7
million watches–6th largest globally in
the category of “manufacturer brands”
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Titan Industries Ltd. – Brands
• Insignia– Anti-allergenic steel, scratch-resistant
• Psi2000, Technology– Sports & Multi-functional watches
• Regalia, Royale– Magic in gold and unique futuristic
material
• Classique– Elegant corporate wear
• Exacta–The “Everyday Watch”
• Raga–Exclusive watches for women
• Fastrack–Contemporary styles for the young
• Dash!–For young boys and girls
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Titan Industries Ltd. – Strategies
• Early to manufacture watches targeted at US and European markets– The “Insignia Collection”–Also makes watches for international labels
●Diversification into jewellery – Tanishq
●Very wide range of products in terms of looks, function and price points
• Noted for their workmanship and reliability–Reputation of being excellent value for
money
• The Titan Signet Club–Customer loyalty programme
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Titan Industries Ltd. – Positioning
• Market Segmentation– The young and teenagers, who are looking for
their first watch– The low ownership segment like women–Middle and upper segments of society
• International watch at Indian price• A watch that builds your image
• A brand which represents style, status and technology–A “Good Looking Watch”
• First watch company to brand its showrooms–Titania Titan watch boutiques in Bangalore–TimeZone–The World of Titan
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Titan Industries Ltd. – Distribution
• Manufacturer – Retailer – Customer
• Set up a chain of service centers, with close proximity to the marketplace
• Extensive use of C&F agents to reduce distribution costs
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Titan Industries Ltd. – Advertising
• Targeted the premium segment of “look and fashion conscious” customers– “To find watches like these you don’t have to go to
Europe, Japan, America or a duty free shop”
• Promoted the concept of a watch being the ideal gift– “Next time your husband wants to buy you a saree,
ask for a Titan watch instead”
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Timex Watches Ltd.• 1854: Started as the Waterbury
Company, in Connecticut's Naugatuck's Valley
• 1990: Tied up with Titan to launch in India
• Broke up with the Tata group in '97• Launched the Indiglo technology
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Timex Watches Ltd. – Brands
• Aqura• Indiglo• Basics• Datalink• Timex Sportz• Lextra• Vista• Mariner• Gimmix
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Timex Watches Ltd. – Strategies• Delivering quality products at affordable prices
• Basic objective: Change the mechanical watch user to a quartz watch user
• Transition from plastic to metal
• Launched Vista brand in Rs 475 – Rs 900 range– To appeal to small town customers
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Timex Watches Ltd.– Positioning• Initial understanding with Titan– Titan keeps out of Plastic – High Price Segment– Timex keeps out of Metal – Low Price Segment
• “You don't have to be rich to afford a Timex”
• Lower price segments– Basics, Lextra, Vista
• Premium segment– Technologically superior multifunctional brands like
Datalink, Indiglo
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Timex Watches Ltd.–Distribution
• Initially followed the Titan distribution channel
• Post ’97, set up their own showrooms
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Timex Watches Ltd.–Advertising• Featured sports and adventurous personalities– Rock climbing, Rafting etc.
• Exclusivity of the watch is presented by celebrity endorsements– President Bush declares his loyalty for Ironman
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Other Players• Mainly Rado, Tommy Hilfiger and Evidenza from Longines
• Tommy Hilfiger is positioned in the mid and premium segment while the other two players are in the luxury segment
• Trying to catch the up market, urban, western-minded youth
● Using high society and stylish brand ambassadors such as Shahrukh Khan, Aishwarya Rai, Yana Gupta, Lisa Ray
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Consumer Behaviour• Transition from mere time keeping device with
functional benefits like durability, toughness and economy to a personal wear reflecting people’s lifestyle and aspiration
• Price sensitive
• Durability and utility are important aspects
• Aesthetic appeal and trendy designs are very important
• Brand Name continues to be an important driver in the customer’s mind
• Availability in different segments and for different occasions makes the watch a suitable gift item
Indian Watch Industry Segmentation
Based on price categoryMass (Rs.350-600)Popular (Rs.600-900)Premium (Rs.900-1500)Super-premium (Rs.1500-8000)Connoisseur segments (above Rs.8000)
Based on user category
Men’s watchesWomen’s watchesYouth watchesKids watchesSports watches
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