Consumer Behavior

Group Assignment

Submitted to:

Prof. Himanshu Chauhan

Submitted by:
Team: Black Street Boys
Sr. No. Name Roll No.

1 Bhavya Tanwani 191218

2 Hemil Joshi 191228
3 Parikshith Nair 191229
4 Karan Gulia 191230
5 Namit Maheshwari 191233

Section: B

Batch: MBA – FT (2019-2021)

Institute of Management, Nirma University
Date of Submission: 3rd Oct, 2020
 Market Overview
From the last few years, India has seen a growth in the wrist watch industry. Changing of fashion
trends and with the increase in the disposable income of mid working-class population are
projected to act as favorable factor in the watch market. Moreover, the watch market in India is
projected to have a CAGR of around 20.32% over the period between 2020-25. If we talk about
the high segmentation watch market in India is dominated by Quartz & it is the fastest growing
segment. Also, the low and mid-range price segment watches are gaining attention of the
customers as the customers are now in search of more value of product and accessories in the
women segment.

Source: Mordor Intelligence

There has been shift in the demand of the digitally enabled watches due to introduction of new
innovative product by some renowned organizations such as Apple, Samsung etc. Since the
availability of the smart watches in respect to different age groups is easy, it has promoting the
penetration of the product in the market. Additionally, there is slight inclination towards luxury
watchers such as Swiss etc. which is boosting up the growth of the industry.

These are some of the key market trends in the watch industry:

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Inclination of consumer towards luxury watch: Luxury is no longer constrained to developed
countries only but also know gradually becoming the part in developing countries also.
Especially in countries like India, watches are now considering as a fashion accessories & thus,
there is shift in the consumer demands from having a classical brand to have a luxury brands
with the presence of some innovation and have a unique design. Some well-known brands in
India are Omega, Rado, Rolex etc.

Source: Mordor Intelligence

Increased of participation in sports: Customer are now becoming more health conscious. People
are now adapting a healthy life style and wanted to stay fit. To stay fit, customers are now more
indulged into sports activities. Thus, now customers are in search of varieties in sports wearable
segment of market and thus has accelerated sales in sports wear watches.

Source: FICCI

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 Segmentation

The market of wristwatches can be segmented, based on the customer’s personality, lifestyle, and
values. The major segments based on which the customers can be classified or segmented are as
follows

 Classic – The classic watches holds the highest share in the market. The classic watches
are preferred by those customers who want the watch at a reasonable price and which
works for a reasonable time. These types of customers have low value for the watch and
they need a watch to just keep a track of time, also, they replace the watch as and when it
fails. The customers of classic watches have a simple lifestyle and are generally from a
middle-class background. The major players in the classic watch segments are Titan,
Timex, Sonata, etc.

Figure 1: Titan advertisement

 Sports – Sports watches are generally preferred by those having more inclination towards
athletic activities like cycling, swimming, trekking, etc. The sports watches are generally
preferred by youngsters who want an innovative design with a rugged look. The
customers are willing to spend more money on the watches just to get a sporty look and
fulfill their need for cognition. Although most companies operate in various segments
through different brands but the major brands especially known for sports watches are
Casio, Seiko, Citizen, etc.

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 Figure 2: Casio advertisement

 Fashion – Fashion watches are preferred by customers who want a watch as a style and
fashion statement. The fashion brands like Chanel, Dior, Gucci, etc. which operate in the
fashion industry provide fashionable watches to its customers to make a style statement.
Fashion watches are generally preferred by women that are fashion freaks who want an
expensive watch that goes well with their personality and high standards of living.
However, fashion brands are not considered to be masters of watchmakers but they offer
fashion watches just to maintain the loyalty of its customers and provide a one-stop
solution for all their fashion needs.

Figure 3:Gucci advertisement

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 Luxury – Luxury watches are gaining more popularity in developing countries. Luxury
watches are preferred by those customers who have high values for a watch and are
generally High Networth Individuals (HNIs). They have a high standard of living and like
to live a giant size life. Brands like Rolex, Rado, Omega, etc. are known for their
craftsmanship and innovative designs. These brands have highly loyal customers who
think that their watch represents their personality and wear luxury watches as a status
symbol.

Figure 4: Rolex advertisement

 Smartwatches – Smartwatches are the latest trending segment in the wrist-watch market.
With a changing attitude towards maintaining a healthy lifestyle and the trend of
athleisure, many consumers are opting for smartwatches and fitness bands. Many fitness
freaks, athletes, swimmers, etc. are preferring a fitness band or a smartwatch due to its

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wide range of features and monitoring capabilities. Brands like Fitbit have been driving
the market of smartwatches and fitness brands.

Figure 5: Fitbit advertisement

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 Target Market:

Target market represents a group of individuals who have similar needs and interests. They show
inclination towards similar brands and respond equally to market fluctuations. They think on the
same lines and have similar preferences and expectations from the organizations.

For example, obese individuals might look forward to cutting down their calorie intake.
Marketers understood this need and came up with Kellogg’s K Special which promises to reduce
weight in just two weeks. So, the target market for Kellogg’s K Special diet would include obese
individuals. Similarly people who sweat more or are conscious of body odour would be more
inclined to buy perfumes and deodorants with a strong and long lasting fragrance. So, for those
perfume and deodorant companies these individuals are their target market.

It is important for the organizations to select their target market so that they can attract more
people with similar tastes and interests. Also, same advertisements and taglines attract the
attention of the target audience and eventually prompt them to buy the products or services. It is
important to note that we cannot try to impress everyone and should therefore only direct our
efforts on the selected audience.

Bases for selecting Target Market:

To select our target market, we must look at following aspects:

 Look at our current customer base.

 Check out the competition.
 Analyse our own product/service.
 Choose specific demographics to target.
 Consider the psychographics of our target.
 Evaluate our decision.
 Take help of additional resources.

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Other important criteria would include:

 Understand the lifestyle of the consumers

 Age group of the individuals
 Income of the consumers
 Spending capacity of the consumers
 Education and Profession of the people
 Gender
 Mentality and thought process of the consumers
 Social Status
 Kind of environment individuals are exposed to

Identifying the Target Market:

As companies nowadays try to target every section of the society, we would also try to cater to
every strata of market. However, we would put extra efforts on our target market which would
effectively drive our sales. Target market for segments of wrist watches includes:

1. Luxury:
 High Net-worth Individuals (HNIs)
 Wealthy, self-appointed luxocrats
 Ultra-high-end demographic
 Elitist
 Generation Z and millennial
 16-24 age bracket
 Males

Here, from the historical data it can be observed that upper class people generally can afford
luxury watches. However, from last few decades it is observed that Generation Z and millennial
have also shown interest in luxury watches. In this segment, 16-24 age bracket also has a
considerable market share. While men has been the main target segment for luxury watches,
organizations have started showing in women too. This is because of the facts that 1) Over 2008-
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2013, world’s female population grew by 6.5%, slightly higher than males and 2) female average
per capita income rose by 15.2% over 2008-2013 compared to 14.8% for male average per capita
income.

2. Sports:
 Fitness conscious
 Travellers and Explorers
 Sportsmen
 18-30 age bracket
 Upper class and upper middle class
 Healthy lifestyle people

Sports watches are increasingly in demand as more and more people are adopting healthy
lifestyle. Healthy lifestyle adoption and the preference for staying fit has increased consumer
indulgence in various sports activities. In line with the athleisure trend, consumers are
increasingly seeking for various varieties in the sports wearable segment, thereby, accelerating
the smart watch sales.

3. Smart watch and fitness bands:

 Elderly people
 Fitness conscious
 Healthy lifestyle people among others.

Here, it is difficult to select a single target market as smart watches has a wide market. However,
elderly people are the main target market for smartwatches and fitness bands as it helps them
monitor their health conditions at all times. Presently, the usage of smartwatches among cyclers,
runners, fitness conscious consumers, swimmers, and athletes is increasing rapidly attributed to
their wide range of monitoring capabilities. Additionally, an increase in government initiatives in
various countries, meant to improve sports participation, is playing a key role in driving the
market in the last few years.

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 4. Classic:
 Middle class and lower middle class
 Simple Lifestyle
 People with low disposable income

Classic watches’ target market includes people who have a simple lifestyle i.e. people who are
not into fitness or sports lifestyle. Also, people with lower disposable income would go for this
segment of watches. In India, watches are considered as a part of fashion accessories and, thus,
consumers are shifting from classical watches to luxury brands with innovation and unique
design.

5. Fashion:
 Women
 Fashionable lifestyle
 16-35 age bracket

Fashion watches is mainly for the people high on fashion lifestyle. These category of people are
very conscious of the watch they wear and whether it compliments their dressing style. They
generally keep more than one watch so to cater to different social commitments.

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 Places or Events to attract ideal segment:

1. For Luxury segment:

 Museums and cultural institutions
 Medical and social service charities
 Chamber of commerce and other business organizations
 Religious organizations
 Alumni associations
 Homeowners associations and community meetings
 Country clubs
 Special interest clubs

2. For Sports watches, smartwatches and fitness bands segment:

 Big sporting events like Football World cup, Wimbledon, Super Bowl, Olympics,
etc.
 Sporting leagues like IPL, Big Bash, La Liga, etc.
 Other sports events like Marathon, Triathlon.
 Other game or talk shows related to sports.

3. For Classic watches:

 Music functions and similar shows
 City market places
 Malls, marts, etc.
4. For Fashion segment:
 Fashion shows
 Shopping malls with wide collections for women especially.
 Tourist market places
 Speciality stores for fashion industry, etc.

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 Positioning:

 The two factors that would affect the perception the most are:
 price
 features/functionality.
 The below table shows the revenue generated from market and price range of its products of
various brands of competitors followed by a perceptual map of the same

Brand Revenue Price range(INR)

Fitbit 750cr 14,000-23,000
Timex 750cr 1,000-12,000
Titans 15649 cr 5,000-25,000
Saieko 340cr 25,000-1,50,000
Apple 950cr 23,000-73,000
HMT 896cr 1,000-18,000
Caisco 796cr 2100-10,000
Citizen 410cr 5,000-42,000
Fastrac
k 800cr 1,000-7,000
Fossil 1140cr 5,000-20,000
Sonata 876cr 1,000-13,000
Tissot 850Cr 28,000-1,50,000

For perceptual mapping we have considered revenue generated for finding market share and
average price from its price range as position for price. The price is plotted against the features
offered by the brands. Then they have been mapped to a 10 point scale and plotted with a bubble
plot with the bubble being bigger for bigger market share

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The Size of the bubble chart is

as per the market share of the brand

 High Price and higher margins do not necessarily mean more market share nor does low
price and low margin.
 The Market share depends on the target customers the most. Titan has the most as they
have classy watches that are formal with basic functionality

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 From left to right the features in the watch increase with the most being in the smart
watches followed by the sportswear.
 The Pricing is higher the higher the brand is placed on the Y- axis.
 We can divide it into four categories – based on price and functionality
o High price Low features
o High Price More Features
o Low price more features
o Low price low features.
 Obviously no sensible customer would go for low feature and high price and hence we
don’t see any brands there.
 The market seems to not prefer too many features and is price sensitive in a way.
 Low Price more feature would be an idea way to increase volumes of sales and there
seems to be more opportunity provided brands can differentiate.

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References
 https://en.wikipedia.org/wiki/Titan_Company
 https://timeandtidewatches.com/best-watches-india/
 https://www.flipkart.com/
 https://www.amazon.in
 https://www.myntra.com
 https://www.ukessays.com/

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