Homework Title/No.
699_______ _________ ______ _ __ : Homework 1____________ Course Code: MGT 699___
Course Instructor: Dr. Rajesh Verma_____ Course Tutor (if applicable):____________________ Date of Allotment : 08/22/2010_______________ : Date of submission: 08/30/2010__________ Student¶s Roll No.: No.: RQ1903A17, RQ1902A21
______ Section Section No.: Q1903 and Q1902______
Declaration: I declare that this assignment is my individual work. I have not copied from any other student¶s work or from any other source except where due acknowledgment is made explicitly in the text, nor has any part been written for me by another person.
Student¶s Signature: ________________________ _________________________
Evaluator¶s comments: _____________________________________________________ ____________________________ _____________________________________________________ _____________________________ _ ___________________________________________________________________ _______________ _____________________________________________________ ____________________________ _____________________________________________________ _____________________________ _ _________ Marks obtained: ___________ out of _________________
Titan
Titan Industries is world¶s fifth largest and India's leading manufacturer of watches. The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. The umbrella brand Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling. Today, the Titan portfolio has over 60% of the domestic market share in the organised watch market. Thu, Titan proves to be the Market Leader. The company has 247 exclusive showrooms christened
World
of Titan', making it amongst the largest chains in its category backed by 700 after sales service
centres. The company has a worldíclass design studio that constantly invents new trends in wrist watches.
Fast Track:
Fastrack was launched as sporty sub-brand of titan in 1998. As an independent brand, its establishment was done in 2005. The target of these watches was the youth market of Urban India. Being affordable and attractive, Fastrack emerged as a successful brand and s ooner jumped into eyewears market also. Now, it is the largest Sun-glass brand of the country. Now, fresh entry has been made by Fastrack into Handbags, B elts, Wallets, Wristbands and other Fashion Accessories. Here we are to consider Fastrack as a Wrist-watch brand o nly.
Market:
The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. The average growth in the size of the market is slated to be around 10 -15% per year. Still, the penetration of watches is not more than 2.5% (as approximately 25 watches are being sold after 1000 citizens). On this penetration, the industry size is around 2000 crore. Many times, growth rate is single digit rather than 10-15%. The watch market has affected highly with the penetration of Mobile Phones, as Mobile has taken place of a time-keeping machine. Now, the use of a wrist watch is not timekeeping, but style, fashion and physical appearance. More than 58 percent of the customers are under twenty five and more than 80 percent are below 45 years of age.
Segment:
The target segment of Fastrack brand is low age office-going people and the youth, having purchasing power, lies between 15-25 years age. According to survey by Fastrack itself in 2005, youth between 11 and 20 years account for 42 per cent o f the overall watch buying. The average spending of a youth on his health and accessories is around 1000 per month, as it has decreased from last year (2009). In such category, a boy spends more than a girl on his looks and app earance. earance.
Strategies:
Often, watches are taken as one-time purchase goods, Fastrack is the first company to promote the Multiple Watch concept, by promoting, ³How many you have...?´ Fastrack has used the design and style to attract its customers. Pricing has been done very attractively, from 500 to 5000. Giving stylish Branded watch for 500 has attracted customers much, where competitors have an average price of 4500 for the same. Fastrack Fastrack has used John Abraham, a yout h icon, for promotions.
Competitor Timex However, Timex has a joint-venture with Titan for production, as an independent Brand, Timex is a big competitor for Fastrack Brand. It covers the segments Kids, Youth, Fashion and Sporty, same as Fastrack is doing. The pricing does not have much difference, as a Timex RETRO watch costs around Rs. 500. Timex provides its ranges from Rs. 500 to 5500. Moreover, it has a perception of being a US brand in brand in the minds of Customers. Timex messages its customers with ³ Keep Keep on Dashing. Keep on Pushing. Keep on Daring Daring ´´ statements. Timex lacks in having a different marketing strategy for Indian customers. Timex has already covered 22% share of Indian Wrist watch Market, but in Fastrack segments, it is far behind yet. Titan has taken more than 40% of the wrist watch market, where youth, fashion and sporty segments have been covered 6 0% by Fastrack. Fastrack.
Positioning statement For style loving, smart youth Fastrack is Fastrack is the premium stylish wrist watch, Which gives sporty look and st yle. Because of its of its gorgeous gorgeo us design, Appeal and Brand.
