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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 cooperation 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. 1 Acknowledgement List of Tables Declaration Executive Summary 1. Introduction of the study 1.1 Industry Profile 1.2. Objectives 1.3. Scope of the study 1.4. Limitations 2. 3. 4. 5. 6. 7. 8. 9. 10 Research Methodology Review of Literature Company Profile Analysis and Interpretation Findings of the Study Suggestions Conclusion Bibliograpy Appendix 1 2 3 4 5 6 10 32 35 48 51 53 54 55 Title Page No.

LIST OF TABLES Sl. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Age of the respondents Education of the respondents Mothly income of the respondents Chi-Square Table No. of watches owned by the respondents Familiar brands of watches Currently using brand of watches Type of material used by the Respondents Occasion of buying Watches Factors Influencing Purchase Title Page No. 36 38 39 40 41 42 43 44 46 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 its 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. Its 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 enquirys 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 Dynastys 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 suppliers 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 Mozarts 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 dealers 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 HMTs 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. Titans 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... Titans 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 companys 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 subbrand 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 Insignia Insignia PSI2000 PSI2000 Regalia Regalia Royale Royale Classique Classique Spectra Spectra Exacta Exacta FasTrack FasTrack Technology Raga Nebula Nebula Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies Gents Ladies

Price Range (Rs) 3750 to 7750 1600 to 7500 1780 to 7500 800 to 4350 1820 to 7790 1725 to 7770 960 to 2810 1120 to 2830 850 to 2450 565 to 2930 1140 to 1830 650 to 1410 600 to 1170 595 to 800 550 to 1430 850 to 1050 2350 to 8170 1420 to 4000 8950 to13500 5950 to 6950

No. of Models 98 89 61 36 157 168 123 91 268 161 57 22 48 25 57 11 55 123 8 4

Bandhan Sonata Sonata Sonata Pair Dash Dash Source: Tradepost, 9 March 2000 Boys Girls Gents Ladies

1675 to 8085 295 to 1195 350 to 1100 1495 to 2000 295 to 395 250 to 350

34 200 96 10 15 13

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 customers resistance at those higher price-points in the watchmarket would choke off Titans future. That is when he decided to chase volumes rather than margins. The launch of the Sonata range can be attributed to Desais desire to stick to the pyramid. The sub-brand Sonata was spun off as a separate division, and today Sonata is Indias 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 Titans 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 childerns 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 - Titans 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, Dsigner, 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 organisations 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 followsCompanys 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. Titans 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 Tanishqs 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 Tanishqs 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. Titans 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. Titans 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. Titans 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. Titans 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 countrys 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 countrys 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 Indias 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 companys 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 Indias leading consumer durable marketing company for the past seven years (1993-99) in polls conducted by the countrys leading advertising and marketing publication A&M. It was rated as one of Asias top 200 companies and Indias 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 Indias most admired brand. Recognition for the companys 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 15-22 23-30 31-35 36-45 Above 45 Total Source : Primary data.
Age of the Respondents 120 100 80 60 40 20 0 15-22 23-30 31-35 Age Groups 36-45 Above 45

Number 113 97 15 10 15 250

Percentage 45 39 6 4 6 100

Number of Respondents

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 Below Class 12 Class 12 Degree PG Total Number 18 20 125 87 250 Percentage 7 8 50 35 100

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 Income


18% 5% 10% 16%

22%

29%

Up to 2000 6001 10000

2001 4000 10001 15000

4001 6000 Above 15000

Table 5.3 Monthly Income of the Respondents Income Up to 2000 2001 4000 4001 6000 6001 10000 10001 15000 Above 15000 Total 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 Upto 2000 2001 - 4000 4001 - 6000 6001 - 10000 10001 - 15000 Above 15000 12 13 24 6 5 5 Design 5 10 28 20 5 24 Brand 8 5 7 15 3 13 Durability 0 3 10 9 0 2 After Sales Service 0 9 3 5 0 1 Number 25 40 72 55 13 45 250 Percentage 10 16 29 22 5 18 100

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 12 5 8 0 0 13 10 5 8 9 24 28 7 10 3 6 20 15 9 5 5 5 3 0 0 5 24 13 2 1 E 6.55 9.1 4.88 3.84 1.56 8.8 12.32 6.58 5.18 2.1 19.4 27.5 14.47 11.39 4.6 13.1 18.3 9.77 7.66 3.1 4.03 5.6 3 2.36 0.95 11.08 15.48 8.2 6.5 2.64 O-E 5.45 -4.1 3.12 -3.84 -1.56 4.2 -2.32 -1.58 2.82 6.9 4.6 0.5 -7.47 -1.39 -1.6 -7.1 1.7 5.23 1.34 1.9 0.97 -0.6 0 -2.36 -0.95 -6.08 8.52 4.8 -4.5 -1.64 (O-E)2 29.7025 16.81 9.7344 14.7456 2.4336 17.64 5.3824 2.4964 7.9524 47.61 21.16 0.25 55.8009 1.9321 2.56 50.41 2.89 27.3529 1.7956 3.61 0.9409 0.36 0 5.5696 0.9025 36.9664 72.5904 23.04 20.25 2.6896 Y2 = (OE)2/E 4.534733 1.847253 1.994754 3.84 1.56 2.004545 0.436883 0.379392 1.535212 22.67143 1.090722 0.009091 3.856317 0.169631 0.556522 3.848092 0.157923 2.799683 0.234413 1.164516 0.233474 0.064286 0 2.36 0.95 3.336318 4.689302 2.809756 3.115385 1.018788 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 1 2 3 4 5 >5 Total Number of Respondents 130 67 38 10 3 2 250 Percentage 52 27 15 4 1 1 100

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 Titan HMT Citizen Timex Classic Rado Casio Sonata Others Total Number of Respondents 142 38 15 12 0 8 5 30 0 250 Percentage 57 15 6 5 0 3 2 12 0 100

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 Titan HMT Citizen Timex Classic Rado Casio Sonata Total Source : Primary data. Number of Respondents 82 48 20 20 15 10 10 45 250 Percentage 33 19 8 8 6 4 4 18 100

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 All Gold Plated Gold Plated with Leather Strap All Steel Two-Tone Plastic Total Number of Respondents 72 88 45 13 32 250 Percentage 29 35 18 5 13 100

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
100 90 No. of Respondents 80 70 60 50 40 30 20 10 0
All Gold Plated Gold Plated with Leather Strap All Steel Two-Tone Plastic

88 72

45 32 13

Type of Material

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 Marriage Birthday Festival Others Bought Total 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. Number of Respondents 8 37 5 40 160 90 Percentage 3 15 2 16 64 100

Table 5.10 Factors influencing Purchase Factors Price Design Brand Durability After Sales Service Total 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. Number of Respondents 65 92 43 32 18 250 Percentage 26 37 17 13 7 100

Factors influencing Purchase of Watches


100 90 80 70 60 50 40 30 20 10 0
Price Design Brand Durability After Sales Service

No. of Respondents

Factors

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. 2. 3. 4. Kotler philip, Marketing management text millennium edition, 2000. Beri G.C. Marketing Research Tata McGraw Hill New Delhi, 1998. Survey of Indian Industry 2003. The Hindu 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. 2. 3. When you think about a watch which brand comes in your mind first? How many watches do you have? Which all brands? Brands Nos

4.

Which brand of watch are you using now .......................................................... Material type a. All gold plated c. All steel b. Gold plated with leather strap 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 e. Advertisement b. Design f. Dealer recommendation c. Features g. Others d. Known brand

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 1. Price 2. Design 3. Durability 4. Brand 5. After sales servcie Personal Information: Age: 15-22 Sex: Male Marial Status: Married Education: Below class: Graduate/Post graduate (BA, B.Com, BSc, MSc etc) Single Female 23-30 31-35 36-45 46 & above Rank Name the brand of watch having the features

8.

Graduate/Post graduate-Professional (eg. BE, MBBS, MBA, CA, MCA etc) Occupation: Student Businessman House wife Govt. Private Others Professional

Workman/technician

Monthly Family Income: Upto 2000 10001-15000 2001-4000 Above 15000 4001-6000 6001-10000