A PROJECT REPORT ON IMC OF INDIAN WATCH INDUSTRY Courtesy: Titan and Rado Submitted to: Dr.Prof.

Madhavi Pandya Submitted by: Ajay Pratap Verma (18003) Anshu kr. Gupta (18005) Kunal Singh Vineet Singh (1802 4) (18058)

INDIAN WATCH INDUSTRY The watch market is continuing to become a very competitive marketplace fraught with competition, so much so that consumers are finding it more and more difficu lt to know which watch to choose. They want a trendy and fashionable watch, one that looks cool, but they also want one that looks nice and reflects their own p ersonality. Nearly 34 million watches are sold through gray market channels. Cur rently, sales in India stand at an low number of 25 watches per 1,000 people, co mpared with 250 watches per 1,000 people in a developed society. So to pick the right watch can take time. Whether that be time spent researching on the interne t - going from one website to another and comparing different brands, styles, an d prices - or from going into shop after shop on a sunny Saturday afternoon when there is no space to move and sales assistants are trying their best to earn a sale. Either way, finding the exact right watch can be very difficult. About Titan: Titan watch division was started in 1987. At launch it was the third watch compa ny in India after HMT and Allwyn. Titan entered at a time when HMT watches were enjoying a monopolysituation. The venture took birth from the TATA group the con stant innovation and effective market segmentation has been the great boon of th e company. Today the company has a model for every price segment and every marke t. Initially when the mechanical technology was the norm, Titan went against the tide and built-up its line with Quartz. Styling was not a factor initially with the Indian watch industry but Titan was there to make a difference and gave a f resh breath of life to the age-old rusty style of wristwatches. Titan formed a j oint venture with Timex, which lasted until 1998, and setup a strong distributio n network across India. As of 2005, Titan watches account for a 25% share of the total Indian market and are also sold in about 40 countries through marketing s ubsidiaries based in London, Aden, Dubai and Singapore. Titan watches are sold i n India through retail chains controlled by Titan Industries. Titan Industries h as claimed to have manufactured the world's slimmest wrist watch - Titan Edge.[3 ] Produced indigenously after four years of research and development, the Titan Edge has a total slimness of just 3.5 mm and a wafer thin movement of 1.15 mm. A part from the Titan Edge, Titan also offers Steel, Regalia, Raga, Fastrack, Tech nology, Nebula, Bandhan, Sonata, Octane, special RHosur, Tamil Nadu. Fastrack is a popular brand among youth in India. Fastrack watches come in a variety of sty les, shapes and colors. On 4 March, 2010, Titan Industries Announced the launch o f its very first Titan flagship store is located at Opposite Shoppers Stop, Band ra Linking Road, Mumbai, India. Store is spread over a spacious 2500 sq ft and h ouses more than 1500 watches on display from Titan like Purple, Automatics, Orio n, Raga, Edge, Nebula, and many more.

Titan Industries is the worlds 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. The brand T itan is committed to offering its consumers watches that represent the compass o f their imagination. Titan's customers are therefore consistently introduced to exciting new collections, which connect, with various facets of their deeprooted yearnings for selfexpression. The new brand philosophy of Titan, encapsulated in the words "Be More", touches this as well as all other aspects of the brand. Th e Titan brand architecture comprises several collection and subbrands, each of wh ich is a leader in its segment. Notable among them are: Titan Edge The world's s limmest watch which stands for the philosophy of "less is more"; Titan Raga the feminine and sensuous accessory for today's woman, Nebula crafted in solid 18k g old and precious stones. Several other popular collections like Heritage, Aviato r, Regalia, and Octane & WWF also form a part of the Titan wardrobe. Today, the Titan portfolio has over 60% of the domestic market share in the organized watch market. The company has 247 exclusive showrooms christened World of Titan', mak ing it amongst the largest chains in its category backed by 700 aftersalesservice centers. The company has a worldclass design studio that constantly invents new t rends in wrist watches. PRECISION ENGINEERING DIVISION Precision Engineering Division of Titan was start ed in 2002. It has become one of the leading manufacturers of Precision Parts fo r Automotive and Aerospace Industries. The Diverse Product range includes pointe rs, dashboard clusters like Fuel Gauge, Temperature Gauge, Gear Shift Indicators , Clocks for Automobiles and any kind of Injection molded Plastic parts, Electro mechanical Assemblies for automobiles, all kinds of pressed and turned parts for automobiles. The Tooling Sector of Precision Engineering Division manufactures all kinds of Press Tool, Molds, Jigs, and Fixtures for various industries. Titan Automation Solution, a part of Precision Engineering Division is a leading Auto mation Solution Provider for all kind of industries. FACE OF TITAN The Company a lso runs a one of a kind contest in the retail industry called the Face Of Titan (FOT) contest to identify the most talented Sales person, Manager & Service per sonnel Technician & Cashier. The contest recognizes the best based on a set of p arameters that give a measure of the overall development of the individual in ea ch of the categories mentioned above and is not solely on sales.

This program was conceived as an assessment centre for frontline staff - by Apar na Ponnappa, inspired at that time by staff who expressed their desire to 'perfo rm' and 'be recognized' for what they do. This program enabled the retail wing o f Titan to empower staff to take charge of their own skill development and provi ded them with a healthy and fun environment to compete and showcase their own ta lent. The contest leapfrogged into the digital era from the year 2006-07 with th e introduction of IT in the capturing of survey data across all of its 200+ stor es, that year also saw the introduction of the data gathered at the store level being used to profile the staff at various levels using a custom built web based software developed by I.GEN Labs IMC STRATEGIES Targeted the typically price se nsitive yet discerning Indian customer International watch you can pay for in rup ees You dont need to pay in dollars, pounds or dirhams to buy a Titan watch Targeted the premium segment of look and fashion conscious customers To find watches like t hese you dont have to go to Europe, Japan, America or a duty free shop Promoted th e concept of a watch being the ideal gift Next time your husband wants to buy you a saree, ask for a Titan watch instead The rationale behind their ads being cons tant bombardment if the Titan brand name Ads are a blend of sophistication and sim plicity PROMOTION:1. Advertising 2. Sales promotion 3. Public relation Advertisi ng media: Television media Print media Internet Titan brand ambassador: Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Rag a: Gul Panag, Rani Mukherjee Xylys: Rahul Bose It has appointed Mahendra Singh Dhoni (himself belonging to Ranchi) as the brand ambassador of its Sonata collection to reach out to the rural population. On th e other hand, his counter-part Aamir Khan was capturing the minds of the urban s egments.

It brought out the Aqua, a trendy collection for the youth. Raga was for the sop histicated Indian woman. This was a significant move as the women were now more liberal in the society and the corporate culture was establishing its roots in I ndia. The needs of women throughout the nation were changing and the brand was a imed to cater these very needs. Dash for the kids. Sonata for the masses and the budget-conscious. Its brands like Bandhan were aimed towards couples while EXCT A and SPECTRA towards the common class for office wear. Titan tagline: Be more F ast track tagline: How many you have? Public relation Gift concept Promotion On Occasions Special discounts on festive and marriage seasons. Sales promotion Sponsorship Seasonality Promotion through Contests Old watch exc hange offer to attract customers POSITIONING Market Segmentation The young and teenagers, who are looking for the ir first watch The low ownership segment like women Middle and upper segments of society Price range of Rs 500 Rs 15000 International watch at Indian prices A w atch that builds your image A brand which represents style, status and technolog y A Good Looking Watch First watch company to brand its showrooms Titania Titan wa tch boutiques in Bangalore TimeZone DISTRIBUTION Manufacturer Retailer Customer First to go for exclusive showrooms Did away with retailers Wholesalers importanc e reduced Set up a chain of service centres, with close proximity to the marketp lace

Innovative planning of showrooms Watch buying a pleasurable experience Extensive use of C&F agents to reduce distribution costs New advertising campaign (Use of social media for Fastrack brand): Good news for the bikers. Titan Industries sub brand Fastrack has launched a new line of new biker accessories including its B ikers range of eye gear, and the no hands Neon disc range of watches. But thats not what the main focus of this post is about. What is more interesting here for ma rketing professional is the way they have launched it. Apart from the ad campaig n on TV featuring John Abraham, they have embarked on leveraging the social medi a, making Fastrack one of the few companies in India to take the lead on embraci ng PR 2.0. Fastrack has come out with the Fastrack social media news room for bl oggers. They are using the newsroom to share information and news on Fastrack. I t also features social media press releases (Bikers and Neon Disk), Flickr strea ms of Fastrack gears, social bookmarking buttons, videos, media coverage, produc t and company information, spokesperson profile, RSS feeds, and more. For the co nsumers, Fastrack has launched two Face book groups called Life on Fastrack and Bikers on the Fastrack, which have 121 and 71 members already, as on yesterday. Quite good I must say that the groups have attracted so many people in such a sh ort time. By the way, check out the Fastrack main site not the usual corporate s tiffness but attractive and very consumer-oriented featuring contests, fun stuff , opinion polls among others. They plan to follow up with a Twitter part as well . Its good to see corporate in India waking up to the new web 2.0 oriented media space of today, otherwise many corporate outside the IT vertical usually do not have a clue about the whole peer-to-peer thingy or have some vague misconception about it. On the Indian watch industry, Fastrack has taken a lead on this front with this and it will be interesting to see how much benefit they are able to d erive out of it. Will be good to follow this campaign and review in say six mont hs again. Corporate globally have been using the social media, read these corpor ate blogging case studies, to benefit for their businesses. There have been smal l organizations that have used the social media as a cost-effective way of compe ting their rivals with huge marketing communication budgets. In India, only a fe w seem to have gone on this route. Fastracks initiative is a good start that will encourage others to follow and identify social media as a good and low priced s ource of advertising.

Titan Industries Ltd. Sales (2007-2008) = Rs. 3000 crores (rounded off) Net profit after tax = Rs. 160 crores (rounded off) In its silver jubilee year, Titan Industries Limited has c ome out with a sterling performance. Sales income for the year 2009-10 was Rs.4, 703.12 crores, crossing the billion dollar (US) figure and registering a growth of 22.2% over last year sales of Rs. 3,847.72 crores. The year started on a somb re note against the backdrop of a slowdown worldwide but the recovery of the Ind ian economy and strategic steps taken by Titan Industries have helped register a historic performance. Profit before tax for the Company grew by 39.4% to Rs.321 .32 crores, while net profit grew by 57.5% over last year to Rs.250.32 crores. The World of Titan Collection of Titan:

Fastrack for the cool and funky fetishes of the youth while Insignia, Steel and Nebula were all aimed at the luxury watches segment. The unique designs and price variations enabled it to reach all classes and cust omers. Today, the Titan group has its own retail shops throughout the country. O ne can now see the World of Titan in almost every city and town of the India.

Rado (watch): RADO is a Swiss manufacturer of high-end watches, with headquarters in Lengnau, Switzerland. It is noted for its use of scratch-proof materials, a field in whic h it is considered a pioneer. Today the company produces about half a million wa tches a year with a staff of about 300 in total. Formed in 1917, RADO initially produced watch movements only. In 1957 the company launched its first collection of watches under the RADO brand. In 1962 the RADO Diastar Original, the world's first scratch-proof watch, was launched. It has been in production ever since. RADO is very peculiar in the watch industry, claiming high-end status despite no t having as long a history as brands such as Omega. Rather the brand claims its elite position by virtue of its technological innovations since then. In 1983 RA DO became part of the SMH group which was renamed in 1998 as the Swatch Group. R ADO differs from some of the more traditional luxury Swiss watchmakers in that i t uses unconventional precious materials to achieve a more futuristic look. RADO has pioneered the use of a number of these materials, e.g., high-tech diamonds, ceramics, lanthanum & sapphire crystal. However, many RADO watches are (at leas t, partially) made of more traditional materials such as gold & steel. Other tha n the material, RADO watches also look very different from most of the other lux ury makers. The company is much more adventurous in constructing the shape of it s watches than would normally be expected of a high-end maker. Market reaction t o this is generally mixed, with some preferring the look of the more traditional makers, & others appreciating the more distinct RADO look. RADO advertises itse lf as the inventor of scratch-proof watches Design A tangible interpretation of imagination Innovative design and high-tech non-scratch materials are the essent ial distinguishing marks of the Rado brand. As a leader in the top-of-the-range market, Rado has become famous throughout the entire world for its research into materials science. It is the use of sapphire, ceramics, and even high-tech diam onds that affords the strong, unique character of the Rado watch. Rados design co ncepts draw their inspiration from the intrinsic qualities of the materials used . For Rado, form is intimately linked to more intangible values, and the brand i s as ever committed to the quest for outstanding new ideas. This philosophy of s urpassing oneself and of tangible interpretations of the imagination has been re warded with numerous international design prizes. From 1957 to the present day, Rados story is marked by a prodigious number of pioneering innovations. One of th e most sensational of these is without any doubt the creation of the hightech dia mond by the transformation of carbon into a nano crystalline diamond with a Vick ers

hardness number of 10,000 ( V10K). This technological prowess has led to the har dest material in the world, with its own entry in the Guinness Book of Records. RADO differs from the traditional Swiss watch makers in that it leans towards in novative uses of high tech materials in distinct design. RADO has focused on pio neering the use of a number of materials that are unique within the watch making industry, such as e.g. hard metal (tungsten- and titaniumcarbide), ceramics, la nthanum and sapphire crystal. In 2004 the RADO vision was realized with the intr oduction of the V10K. Coating the watch with high tech diamonds made the V10K th e hardest watch on Earth, realized by the Guinness Book of World Records. The ne wer RADO watches are also distinct from the traditional Swiss watch industry in that their aesthetic is unique. Market reaction tends to be mixed to such a stro ng aesthetic, with many whom appreciate the unique and distinct RADO look and th ose who do not. During their time, RADO has received more than 20 elite internat ional design awards, from the RED DOT Award to the IF Design Award, for both the ir product and most recently, their collaboration with Jasper Morrison for an in novative watch box that mimics the shape of the human wrist. Pricing RADO watches vary in pricing according to model, age and materials but the core collection of RADO pieces will range from about US$700 to about US$28,000. Model s that include pave dials of diamonds and baguette diamonds can cost approximate ly US $30,000 to $250,000.

In India its range starts from Rs.33000/- and above. IMC Strategies Personal Sel ling The traffic and the transactions: To confirm the effectiveness of the adver tising campaign, Rado can compare the amount of customers and transactions in th e periods of before, during, and after broadcasting by calculating the foot traf fic in each of the Swatch stores. This will be calculated two weeks before broad casting, during the broadcasting, and two weeks after broadcasting. Also based o n the transactions, Rado can analyze what product of the CreArt Collection is se lling best and can modify the lead product in the media of the Indian market. Sa les Promotion Online Coupons: Rado can measure the effectiveness of the online c oupons by providing customers a promotion code for online coupons on the officia l website, Facebook, or Twitter. Rado then will know the number of customers who use the online coupons, the total purchase amount, and what online shopping cha nnels they chose to purchase from, such as Rados official site, Amazon, or Yahoo! Shopping. Online Ratings: Consumer engagement can be measured through ratings a nd comments on the commercials on the Internet. Rado then can understand the cus tomerscommercial preference, and properly judge which commercial to run. Print Ad Coupons: If Rado decides to place coupons with a promotion code in printed ads, like newspapers and magazines, they could measure interest based on the number of customers who redeem the coupon, the total of the purchase, where they purcha se, such as in Swatch stores or department stores. Publicity The media coverage is examined in each medium. The success of the IMC strategy will be determined o n whether the news is covered in the main media. The press Television Magazine-G eneral interest Magazine- Fashion and beauty Cyber Marketing Click-Through Rates Mobile text message: The click-through rate will measure the percentage of peop le that clicked on a CreArt Campaign text message to enter campaign related webs ites. Internet: The click-through rate will be measured by the percentage of peo ple that landed on a Rado-related website and social media site and the duration in which they stayed. Social Media: Rado MTV Playground and Swatch website, fac e book and twitter.

Twitter: The Swatch.br group, which was created in June 2009, and has 230 follow ers as of today. The goal was to increase the number of users by 15% (by 15 peop le) during the campaign. Metrics will include engagement measurements, reach mea surements, and trend measurements. These will measure the number of tweets, retw eets, followers, among other measurements. Progress can also be tracked via Twit terGrader.coms online tools. Direct Market: Create fashionable posters and brochu res that the target market will want to keep forever. Lisa ray has been signed as the brand ambassador of the Rado watches as a part o f its IMC strategy They have started a new worldwide advertising campaign with a series of unexpect ed images on the sparkling billboard. As a IMC strategy they create their own design stage and exhibition for the full demonstration of their product and design.

In china as a youth awareness campaign they launched a young design prize to cre ate a brand image and target market in china. Distribution To maintain a direct link with end consumers, The Rado has created a retail section that develops glo bal retail strategies and new approaches to consumer market. The distribution ch annels that they have strongly focused on are Tourbillion Boutiques, Tech-Airpor ts, selected Boutiques, and worldwide distribution. IMC Mission The overall IMC mission of the 2009 CreArt Collection campaign is to create a connection between Swatch group and art in order to increase sales. CreArt combines events, live m usic, and monumental video projections with contemporary performance art. Curren tly, there are four television spots, each unique to the four artists who are hi ghlighted in this campaign. This campaign also utilizes a partnership with MTVs P layground website, among other elements that are further discussed in IMC Tactic s. What is going on in the target market right now? The Rado watch has a global target: young students or professionals, aged 18-35. The target embodies youthfu l, provocative, stylish, and artistic traits. The wearable art is suitable for t his target and any casual and joyful moment they might experience. Based on VALs , these people are Experiencers and Strivers. Experiences are motivated by selfexpression and are avid consumers who spend a comparatively high proportion of t heir income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that they place on looking good and having cool stuff. Meanwhile, Str ivers are trendy and fun loving. They favour stylish products that emulate the p urchases of people with greater material wealth. SWATCH GROUP SALES REVENUE Watc h Revenue ($, millions) The Swatch Group* 2006 2007 2008 2009 3,706.07 4,462.06 4,307.64 3,966.59

SWOT ANALYSIS OF INDIAN WATCH INDUSTRY STRENGTHS Watches as a fashion accessory Quality or price positioning Brand image Market segments with large potential: w omen, youth, children, sportsmen, the budget-conscious and, of course, the big s penders. Customer value and offered after sales service in a showroom environmen t. OPPORTUNITIES Nearly 34 million watches are sold through gray market channels . Currently, sales in India stand at an low number of 25 watches per 1,000 peopl e, compared with 250 watches per 1,000 people in a developed society. Exchanging offer Rural market CONCLUSION & SUGGESSIONS The opening of the Indian market an d the arrival of premium Swiss brands has certainly led to Indian consumers bein g exposed to global brands, styles and various price levels. To the Indian consu mers, the high price of Swiss watches has helped them to realize the value of In dian brands, particularly of Titan, which offers equivalent quality, but at lowe r prices and with better distribution and service same time it has also exposed them to real quality and style. Titan has shown its differentiation, and custome r centric approach which helped them to get the market. Whereas Rado is maintain ing its international standards and targeting a totally different class, but if they really want to compete Titan in Indian market they have to reframe their pr icing strategy by launching some medium priced watches with international standa rds to target mass. It also need to target different Indian masses with a wide r ange of differentiated products. Both the companies had a lot to learn from each others unique strategies in all respect. WEAKNESSES Main USP is low cost watch. Lack of futuristic approach Lack of flexible thinkin g THREATS Too many players will dilute the market & the profit margin Low priced C hina watches. Evolution of Mobile phones.