8/2/2019 Project CB Final
1/18
Project On
CONSUMER BEHAVIOR TOWARDS SPORT WATCHES
Submited to
Dr.Deepti Wadera
By
Aditya Sawant.
Anujkumar Bhagat.
Bharat Khanna
Danish Raj Manuja
Indu Dekh
Neehar Mehta
Lalit Rawat
PGP10-12
IILM Gurgaon
8/2/2019 Project CB Final
2/18
Consumer Behavior: Sports Watches
2
INDEX
Introduction to the sector and brands..03
Objective.05
Methodology05
Analysis & charts with diagram of brands..06
Findings13
Comparative STP analysis...15
Conclusion....16
Recommendations..16
References...17
8/2/2019 Project CB Final
3/18
Consumer Behavior: Sports Watches
3
Introduction
Wrist Watches form an integral part of the personality of individuals in the present era. Earlier
seen as a luxury item, they are now witnessing a fundamental change in perception, and are
now gaining respect as an essential utility item. Indian watches market was for long dominated
by public sector organisations like Hindustan Machine Tools Ltd. (HMT), and has now left the
pioneers far behind or nowhere in market by private sector enterprises like Titan, Sonata, Fast
Track and Timex along with foreign entities jostling for display space in the smallest of shops
selling these products.
In post liberalization India, the market stood to witness intensive competition between foreign
and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Frderique
Constant, Mont Blanc, Swatch, and many others.
Besides this, buyers are extremely choosy about the brand and type of wrist watches they
wear. Being extremely brand conscious, their tastes have evolved over the years and have gone
beyond the realms of durability to choose in terms of aesthetics and elegance. Thus it is a
buyers market with multitude of designs that have entered and flooded the market place.
The size of the watch market currently is estimated to be around 40 to 45 million pieces
annually. The organized sector alone contributes up to 30 percent of this figure, and the rest of
the demand is being met by the unorganised grey sector. This data is significant indeed in view
of the socio economic distribution of the Indian populace. More than 58 percent of the
population is under twenty five and more than 80 percent of the population is below 45 years
of age.
All International watch brands have a clear position as to where they belong. In India most sales
are in the fashion segment and this fine distinction has not yet been used by marketers.
Students are the largest segment of buyers accounting for approximately 30% of the sales.
In dollar terms, the estimated annual market size is around USD 195 million, despite the fact
that the penetration of watches is the lowest, compared globally. Looking into this fact and the
8/2/2019 Project CB Final
4/18
Consumer Behavior: Sports Watches
4
long standing Indian tradition of comparing watches with jewellery and other traditional items,
many watch companies are interested in setting up base in India.
A casual study of the watch market reveals that it is segmented on basis of multiple proportions
such as price, benefits and types of watches. The price of the watches is a major motive in the
minds of the customer. Accordingly, four segments can be identified here, namely low priced,
medium priced, high priced watches and luxury watches.
The lower priced segment consists of watches priced less than INR 500; the medium price range
consists of watches in the INR 500-1500 range and the high priced watches come in the INR
1500 upwards range. There are other higher categories as well such as the premium and luxury
range, but they appeal to only a small category of the watch market in India.
Many customers prefer mechanical and automatic watches, while others prefer quartz
watches. Newer segments are also on rise such as ladies watches, childrens watches, mens
watches and sport watches. Customers usually base their preferences and buying decisions on a
variety of factors like price, durability, utility, aesthetic appeal and brand name. A combination
of all these points ultimately forms the customers buying decision that translates into the
purchase of a watch.
The retail sector has just begun to boom in India. Since the early 1990s, Indian customers are
relying more on departmental stores and shopping malls to purchase their wants and needs.
This has come as a boon for watch manufacturers and dealers, who are now looking forward to
utilise these new outlets to reach out to the Indian masses. Watch manufacturers are looking at
a suitable mix to market their products ranging from exclusive retail outlets to display sections
in malls and large departmental stores.
8/2/2019 Project CB Final
5/18
Consumer Behavior: Sports Watches
5
Objective
The objective of this project is to understand consumer behavior towards sport watches
belonging to popular brands in India. This project covers various aspects of consumer behavior
like STP (Segmentation, Target and Positioning), Learning, Attitude, Perception and Reference
Groups etc. This project also encompasses gap analysis between marketers and consumer
thought process with respect to sport watch segment.
Methodology
Consumer behavior towards sports watches is to be analyzed with the help of market research
tool. The market research has been conducted within Delhi NCR region. The details are as
follows:
To understand consumer behavior towards Sport watches a Descriptive research had
conducted which has revealed detail information about consumer behavior. In case of
Descriptive research survey method is used in order to collect primary data.
A preformed questionnaire is used for this survey. A total 25 respondent were surveyed and
their responses were registered. A non probability sampling techniques is used specially a
Judgment method is used due to short time duration.
The information in questionnaire is coded in Microsoft Office Excel 2007 and Simple statiscal
tool like Frequency, Mode, Count Etc are used to analyze and interpret findings. The findings
were presented in graphical forms like bar graph, Pie chart etc.
8/2/2019 Project CB Final
6/18
Consumer Behavior: Sports Watches
6
Analysis and Graphs:
1. Brand Ranking
2. Impact of Factors
8/2/2019 Project CB Final
7/18
Consumer Behavior: Sports Watches
7
3. Usage Rate
4. Purchase Rate
8/2/2019 Project CB Final
8/18
Consumer Behavior: Sports Watches
8
5. Place of Purchase
6. Brand Association
8/2/2019 Project CB Final
9/18
Consumer Behavior: Sports Watches
9
7. Sports Association
8. Purchase Decision Influence
8/2/2019 Project CB Final
10/18
Consumer Behavior: Sports Watches
10
9. Endorser Recall
10.Purchase Decision Maker
8/2/2019 Project CB Final
11/18
Consumer Behavior: Sports Watches
11
11.Product Knowledge
12.Trait Relation
8/2/2019 Project CB Final
12/18
Consumer Behavior: Sports Watches
12
13.Personal Information
8/2/2019 Project CB Final
13/18
Consumer Behavior: Sports Watches
13
Findings
The survey was conducted across 25 respondents who are user of sport watches and theirbehavior towards 4 brands like Reebok, Puma, Adidas and Fast Track is as follows:
Among 25 respondent 8 people (32%) voted Reebok as their preferred brand, While 7 people
(28%) voted for Puma and 6 people (24%) voted for Adidas. Hence there is very little difference
among all these brands.
In case of purchase of Sport watch the factors which play important role are predominantly
Quality, Sporty look, Price, style, Reliability and Comfort in descending order as per responses
recorded.
Majority of people (44%) prefer to wear watch on daily basis rather than once in week (32%).
So sports watches are a product of daily consumption.
Most of people (48%) prefer to purchase watches with a period of more than year while in
some cases watch purchase happen annually (44%). This indicates that sport watch purchase
happen very frequent.
As per the study most of people (76%) prefer to purchase sport watches from Company owned
stores (specialty stores) this is followed by Internet shopping and sports outlets.
The brand association study reveals that people have associated Reebok and Adidas with
footwear, Apparel and Sports equipment while other includes sun glasses, bags and other stuff
is mainly related to fast track.
In case of sports association people relate these sports brand with Cricket, Football and Tennis
as per chronological order. Thus Cricket is sport which mostly associated with Reebok.
The brand recall is highest in case of Fast track (44%) which is followed by Reebok(40%) and
least in case of Puma(28%) this indicate the popularity is maximum incase of Reebok and Fast
Track.
8/2/2019 Project CB Final
14/18
Consumer Behavior: Sports Watches
14
The purchase decision for sport watch is alone decision as 60% of respondent made their choice
by themselves. The most efficient medium for communication is Internet as most of people
now days prefer that only. which followed by TV.
At last in case of Brand personality we found that the Brand Reebok is considered as Successful,
Honest and Reliable brand while Adidas is consider as Down to earth and tough brand. The
other brands like Puma is Imaginative, Upper class brand, at last Fast track is considered as
Outdoor and Charming brand.
8/2/2019 Project CB Final
15/18
Consumer Behavior: Sports Watches
15
STP OF REEBOK SPORTS WATCHES
The Reebok sports watches makers have use STP as follows
Segmentation:
Variables used: Demographic, Psychographic and Behavioral
Demographic: Age(20-34yrs), Gender: male, Income: Middle and Upper middle, Occupation:
Student, Business.
Psychographic: Socio Economic, Life Style ( Innovators, Experiencers), Personality( Sportsoriented, Outdoor oriented)
Behavioral: Occasional (Daily users, 2-3 times in week), benefits, User status, User rate and
Attitude towards product.
Target:
Single Segment Concentration: youth is main target for sport watch makers
Positioning:
The watchmakers have used brand name in order to market watches. The Brand image plays
very important role in purchase of watches. So based on Brand awareness, popularity and
appeal these watches are sold in market.
8/2/2019 Project CB Final
16/18
Consumer Behavior: Sports Watches
16
Conclusion
As per our findings Reebok is most preferred brand in case of Age group 21-25 years and with
income less than Rs. 15000 per month. The findings of the project are goes with actual STP of
Reebok. The overall preference shows that Reebok and Fast track are the most preferred brand
because they have youth appeal while Adidas become Sophisticated and classy product for
youth and quite premium product. Puma is least popular because they have restricted to niche
marketing concept and has not use mass communication strategy. Thus Puma is high class,
imaginative product for people who used sports watches.
The purchase of sports watch is frequent phenomenon as user rate is high and repetitive
purchase period is low. Also Independent decision making behavior is most prevalent in youth
so marketer need to address id properly and brand like Reebok is doing nicely by their
campaign I am what I am. Also the celebrity endorser plays vital role in purchase of sport
watches. At last Reebok which is subsidiary of Adidas has understood consumer behavior well
and enjoying significant market share in sports watch segment.
Recommendation
The sport watch segment need to be more develop in terms of product length and width. Apart
from Fast Track no other company has used communication strategy for sport watches. Hence
more awareness in term of the product is necessary.
The brands like Puma & Adidas need to work on more product as very less variants are available
in their sport watches. Also they need to work on celebrity endorser as these brand have very
low level of awareness or recall in consumer mind. Hence Perception is need to develop
towards these brands which result into positive attitude towards these brands.
8/2/2019 Project CB Final
17/18
Consumer Behavior: Sports Watches
17
References
www.dsir.gov.in/reports/techreps/tsr119.pdf
www.indianwatchportal.com/portal/Industry.aspx
indiaindustrystatistics.blogspot.com/.../indian-wrist-watch-market.ht.
www.fastrack.in/
www.reebok.com/IN/
www.puma.com
www.addidas.com
8/2/2019 Project CB Final
18/18
Consumer Behavior: Sports Watches
18
.THANK YOU