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Wrist watches in India
Presented by : DAVINIAA/P CHANDRANDAVINIAA/P CHANDRANDIYANARASHIDDIYANARASHID
LUT MAHYUDDINLUT MAHYUDDIN
NURADIBA MAHADZERNURADIBA MAHADZER
-It's All About the Money-
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INTRODUCTIONINTRODUCTION
Wrist watches form an integral part of the personality of individuals in
the present era. Earlier seen as a luxury item, they are now witnessing a
fundamental change in perception, and are now gaining respect as an
essential utility item.
For the watch industry, time seems in its favour what with the
liberalization of the Indian market coupled with the rising purchasing
power of the young and consumerist Indians. The Indian wrist watch
industry has tremendous potential to grow; whereby efforts would haveto be focused and penetrative.
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The total estimated sales volume in India currently is estimated to be around 40
to 45 million pieces annually. The organized sector alone contributes up to 35percent of this figure, and the rest of the demand is being met by the
unorganized grey sector. This data is significant indeed in view of the socio-
economic distribution of the Indian populace.
In dollar terms, the estimated annual market size is around USD 195 million,
despite the fact that the penetration of watches is the lowest, comparedglobally.
Not withstanding the presence of global players and the opening up of the
market, the Indian market has always been dominated by a single player. In the
past, till the late 80s, in the mechanical era, HMT dominated the market. And
after that it has again been the domination of a single company, Titan.
In the current market, there are a total ofthree major players which comprises
of TITAN, HMT and TIMEX. However, the other fellow players in the market
would include Rado, Tommy Hilfiger, and Evidenza from Longiness.
QUESTION 1
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In India, there exist a wide variety of mens' and womens' wrist watches featuring
some of the finest brands, like designer watches, style watches, luxury watches,
unisex watches, and sports watches for men, females, and youngsters. Male wrist
watch buyers far outnumber females and account for around 65% of sales.Students are the largest segment of buyers accounting for approximately 30% of
the sales.
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QUESTION 2Internal (Psychological Influences)
a) Needs/Motivation
(i)BasicNeedsWristwatchesareconveniently wornaroundthewristsothat
timekeeping iseasilyaccessible.(ii)SocialNeeds
Peoplebuyawatchtoimpress others,mainlytofitintoaspecific
social group toacquirethesense of belonging.Italsoactsasanatural
enhancementtobothmenandwomentocreateattraction.
(iii) EgoNeeds
Peoplebuyawatchtoaugmentsomenotionofself image,asapiece
ofjewelry.Previously,luxuriousfashionfocusesonmalesbutnow
morebrandsareincreasinglywooingfemalesthatwillsuittheactual
women'scritical tastes.Thisistocreatetheimpression thatthisisa
personofwealth and taste.
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b)PersonalityPersonality Performingavoguishroleasafashionaccessorythathelpsinmakinga
self-expressive stylestatement. Peoplebuyawatchbecausetheywanttoseek variety; e.g.glowinthe
darkwatches,waterproof,calculatorwatches,phonewatchesetc.
Sometimes,alsotoconformtoa trend,ortokeepupwiththelatest
fashion-look,inaccordancetotheirageandgender.
Someconsumersseektobeunique,bypurchasingdesignerwatchesor
limitededitionwatches.
c)Learning (Involvement)Learning (Involvement) A wrist watch is generally a high involvement product as consumers
tend to analyze the attributes of the watch in detail.
Eg: Digitalvs Analog,
Automatic vs Manual, or
Occasionalusage vs Daily usage
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External (Socio-cultural Influences)
a)Culture Cultures that value luxury also socially value these personaldescriptors in a very real way.
Not only that, but to be comfortable socially in some of these
cultures you actually need to display these messages on your
body (in some form or another) as much as possible, such as
by wearing a really nice wrist watch.
b) Socialclass Social etiquette often involves looking your best. Peoplejudge
how smart, tasteful, attractive, and successful you are based
on visual indicators. So, having something ofclass and elegance on your wrist is a
message to people dealing with you that you should be taken
seriously and indicates social status and recognition.
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c) Family Every family member doesnt have the same opinion to buy the
same product; different family members have different choice tobuy the product. So, in one family consumer behavior varies.
However, in India parents play an important role in an individual
decision to purchase a wrist watch.
Eg: A daughter would buy the same brand as her mother.
d) Peers Friends are the second most influential people after family
members. The generation of youth nowadays are easily influenced
by peers who are closest to them, reason being, they merely want to
fit in and want to feel associated. Eg: Colleagues influence buying behaviour of wrist watches
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e) Reference GroupInfluences (Comparative)
Wristwatchesisconsideredasapublic necessity wherethe
influenceontheproductisweak butonthebrandisstrong. Celebritiesisoneofareferencegroupappealsthatareusedin
theIndianwristwatchindustry.
E.g.: Aamir Khan and Katrina Kaif for Titan.
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Segmentation
Bases/V
ariables
Bond Time Piece Diva Time Piece Dual Effect Time
Piece
DEMOGRAPHICS
Gender Male Female MaleandFemale
Age 35 50years 30 45years 18 30years
Income Morethan
100,000rs.
Morethan
100,000rs.
Morethan
20,000rs.
BENEFIT
(NEEDS-BASED)
BenefitSought PrestigeandClass
ExertFeminism
Convenienceand Durability
USER-RELATED
Usage Rate Occasional Occasional Daily
LoyaltyStatus High High Moderate
SEGMENTATION TABLE
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