PROJECT REPORT

ONA STUDY TO UNDERSTAND BRAND ADOPTION OF WRISTWATCHES BY

DIFFERENT AGE GROUPS

A Project Report Submitted In Partial Fulfilment of the RequirementsFor The Award of the Degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

M.S.RAMAIAH INSTITUTE OF MANAGEMENTBY

ANIRUDDH TIWARI 101104 ANAND VINODKUMAR 101203 ROBIN JOHN 101237

Under the guidance ofPROF.PURNIMA RAMASWAMY

M.S.RAMAIAH INSTITUTE MANAGEMENTNEW BEL ROAD, BANGALORE-560054

STUDENT’S DECLARATION

We hereby declare that the Project Report conducted on” A STUDY TO UNDERSTAND BRAND ADOPTION OF DIFFERENT WRISTWATCHES BY

DIFFERENT AGE GROUPS”

Under the guidance ofProf.PurnimaRamaswamy

Submitted in Partial fulfilment of the requirements for theDegree of

POST GRADUATE DIPLOMA IN MANAGEMENTTO

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

It is our original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes

Place: Bangalore ANIRUDDH TIWARI 101104 ANAND VINODKUMAR 101203 ROBIN JOHN 101237Date: 16 – 03 - 2012

CERTIFICATE

This is to certify that the Project Report onA STUDY TO UNDERSTAND BRAND ADOPTION OF DIFFERENT WRISTWATCHES BY DIFFERENT AGE GROUPS

Submitted in partial fulfilment of the requirements for the award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT

TO

M.S.RAMAIAH INSTITUTE OF MANAGEMENT

Is a record of bonafide study carried out by

ANIRUDDH TIWARI 101104ANAND VINODKUMAR 101203

ROBIN JOHN 101237

Under my supervision and guidance and that no part of this report has been submitted for the award of any other degree/diploma/fellowship or similar titles or prizes.

Prof. PurnimaRamaswamy

Signature:

Name:Qualifications: Seal of learning center

ACKNOWLEDGEMENT

We extend my special gratitude to our beloved Dean Shri Dr.M.

Chandrasekhar, Academic Head Prof.V.Narayanan & Programme Head

Prof. Jayashree Kowtal for inspiring us to take up this project.

We wish to acknowledge my sincere gratitude and indebtedness to our project

guide Prof. Purnima Ramaswamy of M.S. RAMAIAH INSTITUTE OF

MANAGEMENT, Bangalore for her valuable guidance and constructive

suggestions in the preparation of project report.

ANIRUDDH TIWARIANAND VINODKUMAR

ROBIN JOHN

Table of contents

EXECUTIVE SUMMARY

CHAPTER I– INTRODUCTION AND BACKGROUND....................................1

CHAPTER II–PROFILE OF THE INDUSTRY...................................................6

CHAPTER III – RESEARCH DESIGN...............................................................11

1. TITLE

2. BACKGROUND OF THE RESEARCH/STATEMENT OF THE PROBLEM

3. RESEARCH METHODOLOGY

I Stage: Aim

II Stage: Research Objective

III Stage: Hypothesis

IV Stage: Sample Design

V Stage: Approaches to Research Design

VI Stage: Scope of the study

VII Stage: Limitations of the Study

CHAPTER IV – DATA ANALYSIS AND INTERPRETATIONS.....................16

CHAPTER V – FINDINGS & CONCLUSION....................................................47

CHAPTER VI – RECOMMENDATIONS & SUGGESTIONS...........................51

BIBLIOGRAPHY

ANNEXURE

EXECUTIVE SUMMARY

Wristwatches have come a long way since they first came into the market in the

early 20th century. While initially their main purpose was largely functional, today

it has evolved as part of an individual’s fashion. Since the advent of mobile

phones, the wristwatch has become redundant. Today, it is more of a style

statement rather than a functional object.

With the presence of a number of domestic as well as international players, the

market is now highly competitive. While initially, there was hardly any variety in

terms of colour design and style; today there exists a highly segmented market

where a wide range of choices are available to suit every customer’s need.

Against this backdrop, this research was conducted in order to study the brand

adoption of wristwatches by consumers of different age groups. Through this

research we aim to find out how a brand is adopted by an individual.

Our objectives includes studying the brand awareness of different wristwatches, to

study the current usage of different brands in the Bangalore market, to analyze the

relationship between brand and its buying behaviour and to identify the various

parameters based upon which the consumers choose a particular wristwatch.

We have used quota sampling in order to cover all segments of society. We have

chosen 10 males and 10 females from each group segmented as 20-30 years of age,

30-40, 40-50 and 50+. We have used Chi Square test to test our hypothesis.

Through this research, marketers will get a clearer idea of what are the factors that

determine the buying behaviour of consumers with regard to wristwatches. The

marketer can use these results to plan his marketing strategies in order to gain a

share of this ultra competitive market.

CHAPTER 1: INTRODUCTION

Watches evolved in the 17th century from spring powered clocks, which appeared

in the 15th century. The first watches were strictly mechanical. As technology

progressed, the mechanisms used to measure time have, in some cases, been

replaced by use of quartz vibrations or electromagnetic pulses and are called quartz

movements. The first digital electronic watch was developed in 1970.

Before wristwatches became popular in the 1920s, most watches were pocket

watches, which often had covers and were carried in a pocket and attached to a

watch chain or watch fob. In early 1900s, the wristwatch, originally called a

Wristlet, was reserved for women and considered more of a passing fad than a

serious timepiece. Real gentlemen, who carried pocket watches, were actually

quoted as saying they would "sooner wear a skirt as wear a wristwatch". This all

changed in World War I when soldiers on the battlefield found using a pocket

watch to be impractical, so they attached the pocket watch to their wrist by a

cupped leather strap. It is also believed that Girard-Perregaux equipped the

German Imperial Navy in a similar fashion as early as the 1880s, which were used

while synchronizing naval attacks and firing artillery.

Most inexpensive and medium-priced watches used mainly for timekeeping are

electronic watches with quartz movements. Expensive, collectible watches valued

more for their workmanship and aesthetic appeal than for simple timekeeping,

often have purely mechanical movements and are powered by springs, even though

mechanical movements are less accurate than more affordable quartz movements.

In addition to the time, modern watches often display the day, date, month and

year, and electronic watches may have many other functions. Watches that provide

additional time-related features such as timers, chronographs and alarm functions

are not uncommon. Some modern designs even go as far as using GPS technology

or heart-rate monitoring capabilities.

Buyers are extremely choosy about the brand and type of wrist watches they wear.

Being extremely brand conscious, their tastes have evolved over the years and have

gone beyond the realms of durability to choose in terms of aesthetics and elegance.

Thus it is a buyers market with multitude of designs that have entered and flooded

the market place.

The size of the watch market currently is estimated to be around 40 to 45 million

pieces annually. The organized sector alone contributes up to 30 percent 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. More than 58 percent of the population is under twenty five and

more than 80 percent of the population is below 45 years of age.

In dollar terms, the estimated annual market size is around USD 195 million,

despite the fact that the penetration of watches is the lowest, compared globally.

Looking into this fact and the long standing Indian tradition of comparing watches

with jewellery and other traditional items, many watch companies are interested in

setting up base in India. The average growth in the size of the market is slated to be

around 10 -15 percent per year.

A casual study of the watch market reveals that it is segmented on basis of multiple

proportions such as price, benefits and types of watches. The price of the watches

is a major motive in the minds of the customer. Accordingly, three segments can

be identified here, namely low priced, medium priced, and high priced watches.

The lower priced segment consists of watches priced less than INR 500; the

medium price range consists of watches in the INR 500-1500 range and the high

priced watches come in the INR 1500 upwards range. There are other higher

categories as well such as the premium and luxury range, but they appeal to only a

small category of the watch market in India.

According to a recent study, more than 90 percent of the watches were from the

lower price ranges with international costs being less than 20 euros. Moreover,

around 20 to 25 watches are being sold for every 1000 citizens. Thus there is

enormous potential for growth of the industry in this untapped segment. Some

customers look out for features like fashion appeal, technology, sophistication and

status. Others go for durability, economy and precision.

The retail sector has just begun to boom in India. Since the early 1990’s, Indian

customers are relying more on departmental stores and shopping malls to purchase

their wants and needs. This has come as a boon for watch manufacturers and

dealers, who are now looking forward to utilise these new outlets to reach out to

the Indian masses. Watch manufacturers are looking at a suitable mix to market

their products ranging from exclusive retail outlets to display sections in malls and

large departmental stores.

Today the wristwatch is considered more as a status symbol and a fashion

accessory rather than a simple device to tell time. In the age of mobile phones and

palmtops, the wristwatch has slowly become less of an object of function and more

of a piece of modern culture.

In India, a limited number of consumers can afford the luxury brands mentioned

above. However, Titan and HMT are household watch names in India. Until fairly

recently, watches manufactured by Hindustan Machine Tools (HMT) adorned

nearly every Indian wrist. Yet the increase in sophistication among buyers and

sellers and the maturing economy in India are set to launch watch companies here

into the big league of watch manufacturers. In order for this to happen, the creation

of a global manufacturing hub in India for watches and watch components is very

important. China enjoys this facility already, although its competitive advantage is

diminishing. The Indian government has to give priority under its manufacturing

policy, introduce new technologies, and bring manufacturing and ancillary units

near each other in specially-created hubs. The Indian watch market can be spruced

up by the introduction of a GST which will make the market easer to serve by

organized players in the wrist watch industry. Rationalization of some duties like

import and excise duties on high-value jewelry like watches, and the much lower

excise duties on economy watches will further develop the market

Since penetration is still low and the unorganized sector big, this industry has a lot

of scope to grow both in value and volume. The jury is still out though whether the

Indian companies like Titan will lead this growth or the global majors like Seiko,

Citizen etc

CHAPTER 2: PROFILE OF THE INDUSTRY

The Indian watch industry began in the year 1961 with the commissioning of the

watch division of HMT (Hindustan Machine Tools). The first watch model

manufactured by HMT was the Janata Model in the year 1962. Indian watches

market was for long dominated by public sector organisations like HMT and

Allwyn till Tatas formed Titan watches in association with Tamil Nadu Industrial

Development Corporation in the year 1987. Titan was the first company to launch

quartz watches in India.

In post liberalization India, the market stood to witness intensive competition

between foreign and Indian manufacturers like Timex, Titan, Tag Heur, Longines,

Rado, Rolex, Mont Blanc, Swatch, and many others. Many watch makers have

made significant inroads in the industry and others are in the process of

establishing themselves, currently.

PORTER’S FIVE FORCE ANALYSIS

Supplier Power: Titan has its own fully integrated operation for production of

watches for which it has invested nearly Rs.120 crores over the years, the

manufacturing capacity of which is 6 million units. There has been a significant

rise of low cost producers in China and Taiwan which has provided an opportunity

for watch makers to outsource components at low cost. Due to the presence of a

large number of suppliers and little product differentiation, the suppliers have little

bargaining power. Hence, the supplier power is low.

Buyer Power: The Indian consumer is very price sensitive especially at the lower

end of the economic spectrum. However, there is also the high-end customers who

are willing to pay premium price for watches with good performance and strong

brand name. Due to the availability of large number of substitutes, he can choose

from a wide range of options including choice of display, choice of strap, choice of

style etc.Hence, the buyer power is high.

Entry Barriers: The Indian watch market in the recent years has seen a dramatic

increase in the number of brands available in the market due to the removal of

quantitative restrictions. The new entrants have to create an offering which is

different from the other brands available in the market. This may be either price or

functional or emotional appeal. Thus, in a ultra-competitive industry the prime

barrier to entry is to create a unique positioning that can create an impression in the

minds of the consumers.

Threat of substitutes: Though there are no such substitutes to the watch as a

product, the rapid penetration of mobile phones in the country has rendered the

wrist watch as redundant. Also customers now prefer to purchase watches more as

a fashion accessory and this has led to various watch makers introducing variants

such as jewellery watches and pendant watches.

Degree of rivalry : There is intense competition in the Indian watch industry due

to the presence of multiple local as well as foreign brands. All brands have a wide

product portfolio which aims to serve different market segments. At the lower end

of the market, the major source of differentiation is price and value for money.

Hence, intense price wars are being fought to gain the market share in this segment

Today Titan has almost 65% market share of the organized watch market in the

country. The organized watch market itself is estimated at 35% of the total industry

size. Male 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. Watch is also one consumer durable whose replacement rate is

very high (as much as 33.8%). This is also due to the high scrap rate of watches.

This along with low penetration levels represents an untapped market potential in

India. The high-end watches segment in India is currently impaired by high import

duties. The AIFHI is striving to bring down import duties for high-value jewelry

watches like that of other jewel-based items. The market for premium and luxury

watches including watches priced above Rs. 10,000 (US$200) will get a fivefold

boost between 2011 and 2016. If the Indian government could establish hubs for

watch manufacturing, offer land and infrastructure support along with financial

benefits, then India could easily become the global hub for manufacturing of non-

Swiss watches by 2025. In India, watch penetration is less than 40 percent, and

many people own just one watch, with multiple watch ownership being less than 5

percent. However the growth in the watch market over the past five years has been

quite remarkable and more people in metros nowadays own multiple watches.

Such trends need to be positively encouraged by more investments and by

launching marketing initiatives. Over 60 international brands are catering to the

high-end watch market in India with huge marketing and retailing investments.

The market will grow fast as is proved by the increase in Indian celebrity models

endorsing international brands and the airing of more advertisements in print and

TV. This is sure to lure away Indian buyers from the Singapore and Dubai watch

markets.

MAJOR BRANDS IN THE INDIAN MARKET

The major players in the Indian watch market include Titan, HMT and Timex. The

other players include Maxima, Q&Q, Westar, Shivaki etc. Foreign brands such as

Tag Heur, Omega, Rado, Seiko, Longines etc are making inroads into the Indian

market.

Titan has been consolidating its market share in the last decade. Timex which

entered the market in collaboration with Titan has now independently gained

significant market share.

CHAPTER 3: RESEARCH DESIGN

1. TITLE

“A Study to understand BRAND ADOPTION of wristwatches by different age

groups”

2. BACKGROUND OF THE RESEARCH/STATEMENT OF THE PROBLEM

Most of the educated people today possess a wristwatch, but it no longer

commands a mass appeal. Initially wristwatches were considered to be the property

of the intellectuals & Swiss watches were a league apart and belonged to the upper

society only. Then came the era of Japanese mass produced but precision

wristwatches. And because of the Japanese low cost technology wristwatch came

into the grasping power of a common man. Earlier these wristwatches lacked

variety, color, design and came only in analog dials and their main purpose was

largely functional i.e to keep time. Nowadays we can see a whole array of

wristwatches from numerous brands and in numerous designs. Now these

wristwatches are style statements, status symbols, or handy time piece. The nature

& value of the wristwatch now completely depends on the consumers’ needs and

purchasing power. As a result, the market has become highly segmented.

Brands are very important in this sector. They tend to be focused on either the

men’s or women's or unisex market, with very few men-only offerings — one

interesting example is Fastrack from Titan which heavily differentiates its

wristwatches based on gender as well as ‘age’. Marketers need to clearly

understand the factors that go into choosing a particular brand of watch. This study

aims to determine the consumer behavior regarding watches of different age

groups.

3. RESEARCH METHODOLOGY

I Stage: AIM

The aim is to find out how a brand is adopted in to every individuals life aging

from early 20’s to 60’s.

II Stage: RESEARCH OBJECTIVE

1. To study the awareness of different brands of wristwatches in the minds of

consumer.

2. To study the current usage of wristwatch brands in the Bangalore Market.

3. To analyze the relationship between the specific brand and its buying behavior

4. To identify the factors considered for buying a brand of wristwatch.

III Stage: HYPOTHESIS

Null Hypothesis : The importance of brand name is independent of age of

consumers.

Alternate Hypothesis : The importance of brand name is dependent on age of

consumers.

IV Stage: Sample Design

Sample Unit: Consumers above the age of 20

Sample Size: 80 consumers selected from Bangalore (Karnataka),

Sampling Type: Quota sampling

V Stage: Approaches to Research Design

1. Research Design – Descriptive Research

2. Data Collection

I. Primary data.

II. Secondary data.

Primary sources

Questionnaire Analysis

Secondary data source

It refers to those data that was already being corrected by and analyzed by

someone else. The data in the present study is collected from

Reports

Magazines.

Websites

4. Data Analysis

o Tabulation

o Interpretation and

o Analysis

5.Statistical tool used

o Chi - square test

VI Stage: Scope of the study

The study was aimed at understanding and analyzing the different

individuals who prefer differ brands of wristwatch and how they adopt that

brand.

The research was conducted in the geographical area of, city- Bangalore

(Karnataka),

VII Stage: Limitations of the Study

1. The study was limited to Bangalore and the results cannot be generalized

to the whole nation.

2. Due to paucity of time, sample size had to be restricted to 80 only.

CHAPTER 4: ANALYSIS AND INTERPRETATION

TOP OF THE MIND RECALL

Brand No.Of Persons Percentage

Fastrack 33 41.25

Titan 23 28.75

Tag Heuer 8 10

Sonata 6 7.5

Tommy 6 7.5

Timex 5 6.25

Citizen 5 6.25

Rolex 4 5

Xylys 4 5

HMT 3 3.75

Swatch 3 3.75

Casio 3 3.75

RADO 2 2.5

Nebula 2 2.5

Fossil 1 1.25

Raga 1 1.25

Gucci 1 1.25

This question was aimed to determine the top of the mind recall of watch brands.

The results show the share of mind occupied by various brands in the minds of

consumers. A total of 17 brands were recalled. The results show that Fastrack is

clearly the most recollected brand among all with 33 people saying it is the first

brand that comes to mind on mentioning the word ‘wristwatch’. Titan follows next

with 23 respondents recollecting it. It is interesting to note that HMT, which was

the undisputed market leader not long ago lacks way behind with only 3

respondents recalling it. Foreign brands such as Tag Heuer, Citizen, Rolex etc are

not brands that are easily recalled as seen above.

UNAIDED RECALL

Brand No.Of Persons Percentage

Titan 14 17.5

Fastrack 11 13.75

Sonata 9 11.25

Omega 8 10

Timex 7 8.75

Tag Heuer 7 8.75

Rolex 6 7.5

HMT 4 5

Maxima 4 5

Casio 4 5

Tommy 3 3.75

Raga 3 3.75

Reebok 3 3.75

Citizen 1 1.25

Seiko 1 1.25

RADO 1 1.25

Nebula 1 1.25

Tissot 1 1.25

This question was asked in order to determine the unaided recall of wristwatch

brands. A total of 18 brands were listed. Titan and Fastrack were the two most

easily recalled brands. It can be noted that a number of foreign brands such as

Omega, Tag Heuer, Rolex etc were also recalled by a large number of consumers.

AIDED RECALL

AWARENESS VS TRIAL

Brand

No. of Persons who

have heard

No. of Persons who

have tried

Percentage

Fastrack 68 38 55.88

Omega 49 15 30.61

Maxima 58 39 67.24

Nebula 20 7 35

Xylys 26 4 15.38

Tommy

Hilfiger50 12 24

Tag Heuer 49 13 26.53

In order to determine aided recall of brands, a combination of some of the new

Indian brands and some foreign brands was taken and the awareness regarding

these brands was assessed. A very large percentage of the sample population was

aware of the brands such as Fastrack, Maxima, Tommy Hilfiger etc. However the

awareness of brands such as Nebula and Xylys was low as compared to the others.

The trial rate of brands is low as compared to the awareness levels. Maxima has

the highest trial rate with 67.24% of those aware saying they had tried it.

SOURCES OF INFORMATION

Brand

No. of

people

aware

Friends/

Colleagues/

Facebook

Articles in

Magazines

Ads/TV

Commercial

s

Shop/

Retailer

Fastrack 68 50 16 55 17

Omega 49 20 25 23 9

Maxima 58 23 17 34 12

Nebula 20 11 13 11 5

Xylys 26 13 13 14 3

Tommy

Hilfiger50 26 24 13 12

Tag

Heuer49 14 29 29 11

PERCENTAGE DISTRIBUTION

Brand

Friends/

Colleagues/

Facebook

Articles in

Magazines

Ads/TV

Commercials

Shop/

Retailer

Fastrack 73.53 23.53 80.88 25

Omega 40.81 51.02 46.94 18.36

Maxima 39.65 29.31 58.62 20.69

Nebula 55 65 55 25

Xylys 50 50 53.84 11.54

Tommy

Hilfiger52 48 26 24

Tag Heuer 28.57 59.18 59.18 22.45

The sources of information regarding various brands were assessed. It was found

that Ads/TV Commercials were the most popular sources of information closely

followed by Friends/Colleagues/ Facebook. Articles in magazines and Ads/TV

Commercials are more popular sources for high end brands such as Tag Heuer and

Tommy Hilfiger. The retailers or the shops are found to be the least popular

sources of information regarding wristwatch brands.

DISTRIBUTION OF SOURCES OF INFORMATION BY AGE

Age Group

  20-30 30-40 40-50 50+

Friends/Colleagues/Facebook 60 51 34 12

Articles in Magazines 63 27 37 10

Ads/TV Commercials 65 54 39 21

Shop/Retailer 41 11 11 6

Total 229 143 121 49

20-30 30-40 40-50 50+0

10

20

30

40

50

60

70

Friends/Colleagues/FacebookArticles in MagazinesAds/TV CommercialsShop/Retailer

20-30 30-40 40-50 50+0

10

20

30

40

50

60

70

Friends/Colleagues/FacebookArticles in MagazinesAds/TV CommercialsShop/Retailer

The awareness levels are highest among the 20-30 age group and progressively

decreases as the age increases. The awareness levels are lowest among the 50+

population. The 20-30 group obtains information from all sources almost equally.

The 30-40 age group relies more on Ads/TV Commercials and

Friends/Colleagues/Facebook. The 40-50 age group relies almost equally on

Friends/Colleagues/Facebook, Articles in Magazines and Ads/TV Commercials.

The 50+ age group relies mainly on newspaper ads/TV commercials.

CURRENT USAGE OF WRISTWATCH BRANDS IN BANGALORE

Brand No.of persons

Fastrack 34

Titan 20

Timex 6

HMT 5

Casio 3

Maxima 2

Tag Heuer 2

Breitling 1

Louis Quartz 1

Giordano 1

Sonata 1

Raga 1

Swatch 1

Omega 1

Fossil 1

The above data shows the current usage of wristwatch brands in the Bangalore

market. Fastrack is the most popular brand with 34 respondents saying they

currently use this brand. Titan is the next most commonly used brand with 20

respondents using it. Other major brands are Timex, HMT and Casio.

TOP 5 BRANDSBrand No.of persons Percentage

Fastrack 34 42.5

Titan 20 25

Timex 6 7.5

HMT 5 6.25

Casio 3 3.75

AGE WISE DISTRIBUTION

Brand 20-30 30-40 40-50 50+No.of

persons

Fastrack 13 10 11 0 34

Titan 2 4 5 9 20

Timex 2 1 2 1 6

HMT 0 0 1 4 5

Casio 1 1 0 1 3

13

10

11

Fastrack

20-3030-4040-5050+

2

4

5

9

Titan

20-3030-4040-5050+

2

1

2

1

Timex

20-3030-4040-5050+

1

4

HMT

20-3030-4040-5050+

1

1

1

Casio

20-3030-4040-5050+

DURATION OF USAGE

Less than 3 months 7

3-6 months 12

6 months-1 year 16

1-3 years 18

3+ years 27

A large number of respondents (27) have been using the same brand of watch for a

period greater than 3 years. 35 respondents have been using the same brand for less

than a year.

DURATION OF USE BY AGE

  20-30 30-40 40-50 50+ Total

Less than 3 months 5 1 1 0 7

3-6 months 4 3 4 1 12

6 months-1 year 7 5 3 1 16

1-3 years 3 3 2 10 18

3+ years 1 8 10 8 27

Less than 3 months

3-6 months 6 months-1 year 1-3 years 3+ years0

2

4

6

8

10

12

20-3030-4040-5050+

It is clearly seen that it is the 20-30 age group who have had their current

wristwatch brands for less than a year. 80% of the respondents in this segment

have had their watch for less than a year. At the other end of the spectrum 90% of

the 50+ age group have been using their watch for greater than a period of 1 year

with 44.44% of them using theirs for a period greater than 3 years.

REASONS FOR CHOOSING THE PARTICULAR BRAND

Matches my personality 30

Used by a lot of people I know 18

Has all the qualities I look for in a watch 29

Is a prestigious brand 24

Introduced to me by someone I know 9

It gets noticed 19

Others 16

The two most important attributes for choosing their particular brand of watch was

that it matches the respondents personality and that their brand has all the qualities

they look for in a watch. Other reasons given for choosing the brand were that it

was trendy, convenient, youthful in nature and it was gifted to them by someone.

If were to classify the motives as inwardly directed or outwardly directed we see

that the strongest motivational factors are inwardly directed. For eg – 30

respondents out of 80 said they chose their particular brand as it matched their

personality. 29 respondents said it had all the qualities that they looked for in a

watch.

REASONS FOR SWITCHING

The top 5 reasons listed for switching of brands were –

Peer group opinion

Better brand

Better quality

A new watch was gifted to them

Need for change

The others reasons listed were -

More stylish

Stopped working

FACTORS TAKEN INTO ACCOUNT FOR SELECTING A BRAND OF

WATCH (UNAIDED)

Brand Name 30

Quality 12

Price 12

Style 12

Durability 10

Trendy 4

Features 3

Water resistant 3

Battery life 2

Convenience 2

Size 2

In order to asses the factors that customers take into account while purchasing a

wristwatch, the respondents were asked to list the factors that come to mind

immediately. The results show that brand name is the most common factor while

choosing a wristwatch. This is followed by style, price and quality. The other

major factors are durability, trendiness, features, water resistance, battery life,

convenience and size of the watch

RANKING THE FIVE FACTORS CONSIDERED MOST IMPORTANT WHILE

CHOOSING A WATCH ; IN ORDER OF PRIORITY

  Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Brand name 40 5 6 6 13

Price 19 19 11 7 7

Shape of dial 5 19 7 14 12

Colour of dial 0 8 12 6 13

Battery Life 2 14 13 1 11

Waterproof 2 6 12 16 9

Has a seconds hand 0 1 2 6 3

Type of strap 3 3 13 19 6

Country of origin 6 3 3 0 2

Recommended by

filmstars/experts 3 2 1 5 4

All respondents were asked to rank the top 5 factors from 10 possible factors based

on which they would choose a watch. The results show that half the respondents

think that brand name is the most important factor while choosing a watch. Price,

Country of origin and Size of the watch were some of the other most important

factors consumers consider while selecting a watch. Factors such as colour of dial

and has a seconds hand were not regarded as important by the consumers.

PERCENTAGE DISTRIBUTION OF IMPORTANCE OF VARIOUS FACTORS

Number of respondents who consider the factor

as importantPercentage

Brand name 70 87.5

Price 63 78.75

Shape of dial 57 71.25

Colour of dial 39 48.75

Battery Life 41 51.25

Waterproof 45 56.25

Has a seconds hand 12 15

Type of strap 44 55

Country of origin 14 17.5

Recommended by

filmstars/experts15 18.75

FIVE MOST IMPORTANT FACTORS

Brand name 70 87.5

Price 63 78.75

Shape of dial 57 71.25

Waterproof 45 56.25

Type of strap 44 55

87.5

12.5

Brand name

IMPORTANTNOT IMPORTANT

78.75

21.25

Price

IMPORTANTNOT IMPORTANT

71.25

28.75

Shape of dial

IMPORTANTNOT IMPORTANT

56.25

43.75

Waterproof

IMPORTANTNOT IMPORTANT

55

45

Type of strap

IMPORTANTNOT IMPORTANT

IMPORTANCE OF VARIOUS FACTORS ON A SCALE OF 1-5

Brand nam

ePric

e

Shap

e of d

ial

Colour of d

ial

Battery

Life

Wate

rpro

of

Has a s

econds h

and

Type o

f stra

p

Country of o

rigin

Recommen

ded by fi

lmsta

rs/ex

perts

0

5

10

15

20

25

30

35

40

45

Rank 1Rank 2Rank 3Rank 4Rank 5

HYPOTHESIS TESTING

Age Groups

Consumers 20 -30 30-40 40-50 50+ Total

Brand is the

most

important

factor

11 13 8 8 40

Brand is not

the most

important

factor

9 7 12 12 40

Total 20 20 20 20 80

We set up the null hypothesis that the importance of brand or non importance of a

brand is independent of their age groups. In other words, null hypothesis is that

brand will appeal equally to consumers of all age groups. We shall use χ2 test.

The expected frequencies are obtained below –

E(11) = Row Total X ColumnTotal

Grand Total = 20 X 40

80 = 10

E(9) = 10

E(13) = 10

E(7) = 10

E(8) = 10

E(12) = 10

E(8) = 10

E(12) = 10

Corresponding expected frequencies

10 10 10 10 40

10 10 10 10 40

20 10 10 10 80

Observed

(O)

Expected

(E) (O-E) (O-E)2

¿¿

11 10 1 1 0.1

9 10 -1 1 0.1

13 10 3 9 0.9

7 10 -3 9 0.9

8 10 -2 4 0.4

12 10 2 4 0.4

8 10 -2 4 0.4

12 10 2 4 0.4

80 80 0 3.6 Total

χ2=∑ ¿¿ = 3.6

Degrees of freedom = (4 – 1) X (2 – 1) = 3 and χ2 0.05 = 7.815

Since the calculated value of χ2 is lower than tabulated value, null hypothesis may

be accepted at 5% level of significance and we may conclude that the importance

of brand as a factor for choosing a particular wristwatch is independent of age

group.

CHAPTER 5: FINDINGS AND CONCLUSIONS

Titan and its sub-brand Fastrack are the two most easily recalled brands.

41.25 % of the respondents recalled Fastrack and 28.75% of the respondents

recalled Titan when asked about the brands that come to mind on

mentioning the word wristwatch. This clearly shows the share of mind that

these two brands occupy in the minds of the consumers. Only a small

number of respondents were able to recall foreign brands such as Tag Heuer,

Rado and Fossil from the top of their mind. Also high-end Indian brands

such as Xylys, Nebula and Raga were not easily recollected by the

respondents.

On further probing to assess unaided recall, a total of 18 watch brands were

listed. Titan and Fastrack were the most prominent among them. It is also

interesting to note that more number of people recalled foreign brands such

as Omega, Rolex etc.

To understand the phenomenon of adoption of brands among wristwatch

consumers, the data on awareness and trial regarding a few relatively new

Indian wristwatch brands and a few international brands was sought. The

following brands were chosen Fastrack, Maxima, Nebula, Xylys, Omega,

Tommy Hilfiger and Tag Heuer. The awareness levels for most of the brands

was found to be high. Xylys and Nebula were two brands that only a

handful of the respondents were aware of (26 and 20 respectively). The trial

rate of these watches was found to be much less when compared to the

number of people who were aware of the brand. Maxima had the maximum

trial rate with 67% of the respondents who were aware of the brand saying

they had used it. The trial rate of high end brands such as Tommy Hilfiger

and Xylys was also low. Only 15% of the respondents who were aware of

the brand Xylys had used it. Newspaper Ads and TV Commercials are the

most popular sources of information for most of these brands. This is closely

followed by peer group opinion and social networking media. Shops and

retailers were found to be more popular sources of information for the high

end brands such as Tommy Hilfiger and Nebula. The awareness levels are

highest among the 20-30 age group and progressively decreases as the age

increases. The awareness levels are lowest among the 50+ population. The

20-30 group obtains information from all sources almost equally. The 30-40

age group relies more on Ads/TV Commercials and

Friends/Colleagues/Facebook. The 40-50 age group relies almost equally on

Friends/Colleagues/Facebook, Articles in Magazines and Ads/TV

Commercials. The 50+ age group relies mainly on newspaper ads/TV

commercials.

An analysis of the current scenario of the wristwatch usage in Bangalore

market shows that a total of 15 different brands are in use. The Indian

players account for 78% of the total market with the rest accounted by the

foreign players. Fastrack is the clear market leader with 34 out of the 80

respondents saying they used it. Titan follows next with 20 users. The most

popular foreign brand is Timex.

27 of the respondents said they had been using their watch for a period

exceeding 3 years. A considerable population (43.75 %) was found using

their brand for less than a year indicating a high replacement rate. It is

clearly seen that it is the 20-30 age group who have had their current

wristwatch brands for less than a year. 80% of the respondents in this

segment have had their watch for less than a year. At the other end of the

spectrum 90% of the 50+ age group have been using their watch for greater

than a period of 1 year with 44.44% of them using theirs for a period greater

than 3 years. Thus, the 20-30 age group is more likely to adopt new brands

as compared to the 50+ age group.

The major factors for choosing a particular brand are that it matches the

consumer’s personality and that it has all the qualities that a consumer

desires. Brand name is also seen as an important criteria for choosing a

particular brand. A significant number of people said that their current watch

was a gift to them and wasn’t chosen by them as such.

On examining the factors that led to switching to current brand from the

previous brand, a number of varied responses were obtained. Common

among them were the need for a change, upgrading to a newer model,

switching to a more prestigious brand, opinion of peers etc.

The respondents were asked to list out the factors based on which they

would evaluate a wristwatch. The brand name was the most commonly cited

factor. 30 out of 80 respondents said they choose a wristwatch based on the

brand. This accounts for a significant 37.5% of the respondents. The other

commonly quoted factors were price, style and quality of the watch. Factors

such as durability and battery life weren’t seen as important by a majority of

the respondents as only 12.5% and 2.5% respectively listed these two factors

for evaluating a wristwatch. It is to be noted that the majority of the

consumers who cited these factors as an evaluation tool are above the age of

40.

The ranking of factors that consumers generally evaluate while choosing a

wristwatch revealed that brand name is very important with a whopping

87.5% of the respondents listing it in their top 5 factors and 57% of them

stating it was the most important factor. Price is the next important factor

with 63 out of the 80 respondents saying it played a role in their buying

decision. The less important factors as seen by the results are the country of

origin, having a seconds hand, recommendation by celebrities/experts.

The selection criteria of wristwatches have major implications for the

marketer. We examined if there was a relationship between the importance

of brand as a factor and the age of the respondents. A χ2 test to determine if

these two factors are statistically independent/dependant revealed that age is

independent of the importance of brand as a selection criteria for

wristwatches.

CHAPTER 6: SUGGESTIONS AND RECOMMENDATIONS

Fastrack and Titan are the clear market leaders in the Bangalore area. They

have a clear advantage in terms of market share as well as mind share. The

companies should consolidate its market leadership. Their advertisement

campaigns have been successful in both creating awareness as well as

inducing trial.

The foreign players haven’t really created a major impact. Considering the

high income levels in a city like Bangalore, these foreign players have

tremendous potential to penetrate into the market. They should focus on

creating awareness. Their advertising reach is limited and hasn’t really

managed to capture the imagination of the consumers. Hence, advertising in

the appropriate media to target the ideal audience is of paramount

importance.

There is a very high replacement rate of watches. Thus, the brand makers

have a huge opportunity to cater to the market of switchers.

People prefer to switch to newer, trendier watches and better brands. Thus,

marketers should realize that watches are no longer just functional objects;

they are more of a fashion accessory. Thus, the style and appearance of

watches assume paramount importance in today’s context.

The potential of watches as a gift item is huge. Watches are now seen as an

ideal gift for a number of special occasions includes weddings, birthdays etc.

Thus, marketers can target the gift market and position their watches as ideal

gift options, as Titan has been doing.

Peer group opinion is a major factor for choosing a particular watch. Thus,

marketers need to target the opinion leaders and delight them so as to create

a positive word of mouth.

The brand name has been clearly established as a major factor for choosing

wristwatches. Thus, marketers should focus on branding activities to create a

strong brand. Foreign players such as Tag Heuer can leverage on the brand

name that it has created over the years and use it in order to gain market

share.

BIBLIOGRAPHY

WEBSITES :

http://www.infibeam.com/static/indian-watch-market.html

http://www.indiainfoline.com/Markets/News/PrintNews.aspx?NewsId=4768094254

http://indiaindustrystatistics.blogspot.in/2010/04/indian-wrist-watch-market.html

ANNEXURES