a marketing analysis of four brands of watches: hmt, titan, swatch, tag heuer

A Marketing Analysis of Four Brands of Watches [HMT, Titan, Swatch, TAG Heuer]

Asokendu Samanta (SMSID 104118)

Lalitha Devi (SMSID 103601) B. Narayanan (SMSID 103566)

Group No 22, PGCBM 15, Powai, Mumbai

23 March 2009

A Marketing Analysis of Four Brands of Watches

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About The Authors

Asokendu Samanta obtained Doctorate of Philosophy in Engineering from Indian Institute of Technology (IIT), Kharagpur. He worked as a Post-doctoral Research Fellow at the Robert Gordon University, United Kingdom. He is presently the Head of the Department of Structure in the Research and Development Division of Indian Register of Shipping, Mumbai. He is also a Visiting Faculty of Ocean Education and Research Centre, Mumbai and a Reviewer of an International Journal. He has several publications in various foreign journals. [Email: [email protected]]

Lalitha Devi graduated in Engineering from National Institute of Technology (NIT), Warangal. She is associated with TATA communications for last three and a half years and presently working as Network Planner. [Email: [email protected]]

B. Narayanan graduated in Mechanical Engineering. He is presently associated with ITC Group in Mumbai. [Email: [email protected]]


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Preface

Time is Money. With the advent of new technology, a revolutionary change is occurred in

the watch market of India. Previously only a few brands were ruling the market. However with

the passage of time and with the opening of free trade, there is no dearth of various national and

international brands in the market. A few years ago, people used to buy watch, only to check

time. However, now they buy not only to check time but also for fashion.

In the present report an attempt has been made to analyze the four brands of the watch

namely, HMT and Titan of India and Swatch and Tag Heuer of Switzerland. SWOT analyses of

the each brand are presented in evaluating their prospect in Indian market.

The first chapter deals with HMT, one of the national brands of India. In the second

chapter, various aspects of Titan, the market leader of India are presented. Third and fourth

chapters deal with international brands, Swatch and Tag Heuer respectively. Emphasis is given

particularly to analyze the advertisements of each brand, identifying what marketers are trying to

achieve. At the end, conclusions are drawn in chapter five summarizing various critical aspects.

Key Words

Advertisement, Attribute, Current behavior, HMT, Macro environment, Micro environment,

Positioning, Swatch, SWOT analysis, Tag Heuer, Titan.


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Contents About the Authors 1 Preface 2

Chapter 1 HMT of India 4-9 1.1 History 4 1.2 Current Behavior 4 1.3 Marketing Environment 5 1.4 Advertisement 9 1.5 Positioning 9

Chapter 2 Titan of India 10-16 2.1 History 10 2.2 Current Behavior 10 2.3 Marketing Environment 12 2.4 Advertisement 15 2.5 Positioning 15

Chapter 3 Swatch of Switzerland 17-22 3.1 History 17 3.2 Current Behavior 18 3.3 Marketing Environment 18 3.4 Advertisement 22 3.5 Positioning 22

Chapter 4 Tag Heuer of Switzerland 23-28 4.1 History 23 4.2 Current Behavior 23 4.3 Marketing Environment 24 4.4 Advertisement 27 4.5 Positioning 28

Chapter 5 Conclusions 29


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Chapter

ONE

HMT OF INDIA

1.1 HISTORY

stablished by the Government of India in 1953 as a Machine Tool manufacturing company. Later it diversified into Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting & Plastic Processing Machinery, CNC Systems and Bearings. It has collaborations with world-renowned manufacturing company. At

present, HMT comprises six subsidiaries under the ambit of a Holding Company.

1.2 CURRENT BEHAVIOR

It launched with watches like Janata, Sona, Pilot, Tarun, Nutan, Jawhar, Automatic Day and Date, Priya, Chinar, Nishat, Rakhee, Avinash and Kohinoor. To capture the growing urban market for

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fashionable watches, two new brands viz., `Ramani' for gents and `Utsav' for ladies were launched.

The company has introduced 350 range of Citizen watches in Mumbai - Citizen Watches (India) Limited, is a joint venture between the Citizen Watch Company, Japan which holds a 51 per cent stake and Doshi Time Industries holding 49 per cent stake.

In the recent series of quartz watches it has following ranges

Elegance Roman – Only for men Utsav – The well dressed watch Sangam -Absolutely Modern, Absolutely Indian Lalit -Value for Money, For those who value Money Pace -For cute faces Swarna - Good as Gold Shreyas - Sign of Good Times Chandan- The fragrance watch Braille -A gift of time to the blind Rajat - Automatic watch

And also customized watches for Institutions

1.3 MARKETING ENVIRONMENT The marketing environment of a brand consists both macro and micro environment. Macro environ are Political, Economic, Socio cultural and Technical. Micro involves Competition, buying behavior, supplying behavior, communication and internal. Marketing environment of HMT is given below. Political: HMT has the government support. Internal: Once the market leader in mechanical watches, HMT has lost its images mainly due to bad work culture. Some of the authorized retailers started acting as wholesaler and HMT lost control over final consumer price. External: Titan, Swatch, Timex are the very strong competitors. HMT doses not have good after sales service. Customer: HMT could not change its product as the preference of the customers which changed over time. The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below (also in Table 1.1).


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1.3.1 Strength Mechanical Watches: HMT is the market leader in mechanical watches (Fig 1.1), which serves to the lower segment of the society. Brand Image: HMT has a very strong brand image. It has quality of reliability. Production and Training Facility: It has got a very good training facility (Collaboration with Citizen Japan for formal training). Industrial Relation: Company has a very good industrial relation. It has never encountered any kind of labor problem. Adequate Asset: It has got vast land, building and machinery. Government Support: The Company has government support. High Capacity: In-house capacity to manufacture 60 lakh dials, 26 lakh cases annually (2002-2003)

Fig 1.1 HMT was the market leader in mechanical watches [Source: http://picasaweb.google.com/bernard.fruga]

1.3.2 Weakness R&D Design: No emphasis and attention to aesthetics and design.


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Retailer Policy: No control over retailers. Some of the authorized retailers started acting as whole sellers. Weak Organizational Culture: Lack of team sprit and awareness. Inadequate motivational strategies/ reward / punishment. Trade Audits: No regular trade audits was being carried out by the company to check what was actually happening in the market. Advertisement: Inadequate advertisement, promotion, sponsors. It failed to communicate the uniqueness of HMT quartz design. Centralized Decision: The decisions on campaigns for specific products were delayed leading to the time lag and response to market change. 1.3.3 Opportunities Diversification of Product: Apart from mechanical watches, HMT can focus on anadigi, digiana, multifunction, digital stopwatch, alarm etc. Export: Export market can be tapped. Market Segmentation: It can expand, launching product suitable for different customers profile and could promote different watches for different moods (eg., formal, casual etc.) Sales Network: HMT could have collaborated with some of the good retailers of different brands with big distribution networks to display and sell some newly launched models (jewel watches etc.) Innovative Product: Hire good designers to design new models of the watches based on customer preferences combining technology and aesthetic appeal together to enhance the experience. Market Survey: It can do proper market survey before launching any product. They may take any help of specialist in this regard. Retail Store: Renovate the retail stores to attract the customer in a convincing environment. 1.3.4 Threats Competitor: Titan, Timex, Citizen Swatch etc are the biggest threats. Model: Many luxury and varieties of watches are competing in the market nowadays. Spurious Operators: People who indulge in fraudulent activities, misusing the brand name. Old Fashion Design: HMT’s product is quite old fashioned when other brands are manufacturing innovative and attractive products.


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Table 1.1 SWOT Analysis of HMT in tabular form

Parameter Variable Threat/ Opportunity

Controllable / Uncon

Implication Strength/Weakness

Product Variety Threat UC Competitors have better product lines

Weakness

Technology Opp UC HMT Image in mechanical watch

Strength

Aesthetic Threat UC Focus on quality Strength Functioning Diversification

of Product (digital, colors, waterproof, etc.)

Opp C Do market survey, employ skilled labor, acquire machine

Strength

Key system Threat C Increase warranty period, and service station

Strength

Straps wear and tear

Threat C Increase warranty period, and service station

Strength

Battery Threat C Increase service station and give facility to replace easily

Strength

Utility VAT Threat UC Competition Threat Titan, Timex are well

ahead Weakness

Demand Recession Threat UC Give attractive offers, discount, exchange offer

Strength

Advertisement Opp C Strategically position bill board, slogan

Strength

Agreement with Retailer

Opp C Maintain good relationship with retailer to promote the product

Strength

Replica watch Threat UC Increase awareness among customers

Strength

Acceptance (Macro)

Political support Opp Utilize the support from government

Strength

Unions Opp Good relation, give incentives, rewards, recognition, proper working condition

Strength

Acceptance (Micro)

Status Threat UC Prepare brand image Strength


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1.4 ADVERTISEMENT

Fig 1.2 An advertisement of HMT watch [Source: http://members.iinet.net.au/~gumby1/something_different/something_different.html]

Observing the advertisement it can be mentioned that HMT is trying to capture middle and lower segment of the market. ‘Nation’ and ‘Janata’ these two words give this indication. 1.5 POSITIONING OF THE BRAND Nearly twenty to twenty five years back HMT was a very good brand name in Indian market. It reached to the position of credence attribute. However, now it has gone back to the convenience attribute.

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Low Uncertainty High Uncertainty

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Credence Attributes

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Experience Attributes

Fig 1.3 Present position of HMT in the matrix

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Chapter TWO

TITAN OF INDIA

2.1 HISTORY

itan watch division was started in 1987. It is a joint venture between one of India's most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO). It is the world’s fifth largest and India’s leading manufacturer of watches. At launch it was the third watch company

in India after HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until 1998, and setup a strong distribution network across India. Titan Industries has claimed to have manufactured the world's slimmest wrist watch - Titan Edge. Produced indigenously after four years of research and development, the Titan Edge has a total slimness of just 3.5 mm and a wafer thin movement of 1.15 mm. 2.2 CURRENT BEHAVIOR

Titan has different ranges of watches from different tastes and styles.

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After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. These segments are determined based on benefit and income level.

High Income Segment: This is for high income/ elite consumers who buy watch as a fashion accessory not as a mere instrument showing time. They are also willing to buy a watch on impulse. The price tag does not matter to them. Titan offered Aurum and Royale in the gold / jewellery watch range. The prices are between Rs. 20,000 and Rs. 1 lakh.

Medium Income Segment: These consumers prefer some fashion in their watches but to them price does matter. While they have the capacity to pay the price required for a good watch, they will not purchase a watch without comparing various offers in the market. For this segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigors of daily life. The price range is Rs. 500-700. Titan also offered the RAGA range for women in this segment.

Low Income Segment: The third segment consists of the lower-income consumers who see a watch mainly as a time-keeping device and buy mainly on the basis of price. Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, it offered the SONATA range. The price range was Rs. 350-500.

Titan collections and customer and price based segmentation:

FAST TRACK: Category aimed at Youth. A collection of watches will contemporary styles that are young and distinctive. Price: Rs.550-1,430.

EXACTA: Category aimed at Lower Middle Class (Office Wear). A perfect combination of dateless styling and design simplicity. Price: Rs.595-1,140

SPECTRA: Category aimed at: Common Class. A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. Price: Rs.650-1830

ROYALE: Category aimed at Upper Middle Class. A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps. Price: Rs.960-2,830.

RAGA: Category aimed at Upper Class. Exclusive watches for women. It is elegant, delicate and feminine with each piece being truly. Unique. Price: Rs.1,420-4,000.

BANDHAN: Category aimed at: Couples. Watches for him and her. Price: Rs.1,675-8,085.

REGALIA: Category aimed at: Upper Middle Class – Upper Class. Magic in gold and unique futuristic material. Price: Rs.1725-7770

EDGE: Category aimed at business class. The Titan EDGE is the Slimmest Watch in the Universe. Price: Rs. 4,500-5,200

Nebula: Category aimed at: Upper Class a range of watches crafted from solid gold embellished with precious stones. Price: 10,000-45,000


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2.3 MARKETING ENVIRONMENT Titan has the following marketing environment. Political: Tata group being is one of the respected groups in India, Titan has the government support. Internal: Being owned by Tata group, it has a good ‘Tata’ culture. They take care their employees. External: Titan is the market leader in the watch market of India. Customer: Titan invests a good amount of money for their research and new innovation. As such they keep on changing their model as per the taste and preference of customers. The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below (also in Table 2.1). 2.3.1 Strength Leading Manufacturer: Titan Industries is the world's fifth largest and India's leading manufacturer of watches. Customer Base: The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. Market Share: The Titan portfolio has over 60% of the domestic market share in the organized watch market. The company has 247 exclusive showrooms christened World of Titan', making it amongst the largest chains in its category backed by 700 after-sales-service centers. World Class Design Studio: The Company has a world-class design studio that constantly invents new trends in wrist watches. Wide Choice in Style: Titan decided to inundate consumers with a wide choice in style, functions and price (Fig 2.1). The initial range was 350 models. Retailer: Titan brought in the concept of retailing into the watch market, established a network of fine showrooms, which would later become the world's largest network of exclusive watch stores. Advertising: Titan saw this as a vital investment. Right from begining Titan invested significantly in advertising and in that process created a set of memorable and effective properties over the years. Brand Ambassadors: Titan engaged major celebrities like Amir Khan (Fig 2.2), Kapil dev as Brand ambassadors for its Titan range.


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Fig 2.1 Variety is the strength of Titan 2.3.2 Weakness Waterproof: Waterproof watches are not in the portfolio of the Titan. Raw Material: Non-availability of cheaper raw materials from domestic sources. Market Segmentation: Titan has not focused in the lower segment of India in rural area which is contributing about 40% of the share of Indian volume. 2.3.3 Opportunities Scope in Jewellery Market: Importance of jewellery to Indian consumers. Extend the Brand: Titan has a scope to capture in feminine accessories. Exchange Business: Titan may enter into exchange market.


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2.3.4 Threats Competitor: Citizen, Swatch, Rolex, Tag Heuer etc are the biggest threats. Raw Material: Raw material cost is said to be high because of high import duties. Fashion Change: Changing trends in fashion

Table 2.1 SWOT analysis of Titan in tabular form




Product Variety Opp C New innovation Strength Technology Opp Titan image Strength Aesthetic Opp C Wide variety exist Strength Functioning Diversification of

Product (digital, waterproof etc.)

Opp C Do market survey, Employ skilled labor, acquire machine

Strength



Strength


Strength

Utility VAT Threat UC Competition Threat C Brand image Strength Demand Recession Threat UC Give attractive offers,

discount, exchange offer

Strength

Advertisement Opp C Strategically poisoned your bill board, slogan

Strength



Strength

Spurious watch Threat UC Increase awareness among customers

Strength

Brand ambassador

Opp C Utilize the brand image of famous celebrities (actors, sport person)

Strength

Acceptance (Macro)

Political support Opp Utilize the support from government

Strength

Unions Opp Good relation, give incentives, rewards, recognition, proper working condition

Strength

Acceptance (Micro)

Status Opp C Brand image Strength


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2.4 ADVERTISEMENT

Fig. 2.2 Actor Amir Khan is the brand ambassador of Titan [Source: official website of Titan, http://www.titanworld.com]

Advertisement gives an indication how the product is positioned. The result of positioning is the successful creation of a customer focused value proposition, a cogent reason why the target market should buy the product. Observing the advertisement it can be mentioned that Titan is trying to capture middle and higher segment of the market using actor Amir Khan as brand ambassador.

2.5 POSITIONING OF THE BRAND Titan has placed its position as emotional positioning based on role model (see the Fig. 2.2 where Bollywood actor Amir Khan is shown). On the matrix it will be credence attributes as it has already created a value proposition in the mind of customer.


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Credence Attributes (TITAN)

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Fig 2.3 Present position of Titan in the matrix

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Chapter THREE

SWATCH OF SWITZERLAND

3.1 HISTORY

watch brand was launched in 1983 and was originally intended to re-capture entry-level market share lost by Swiss manufacturers during the aggressive growth of Japanese companies such as Seiko in the 1960s and 1970. Swatch overcame crisis and led to the survival of the Swiss watch industry re-popularizing analog watches at

a time when digital watches had achieved wide popularity.

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3.2 CURRENT BEHAVIOR Swatch has identified and segmented the market based on customers, different age groups, tastes, preferences with wide ranges and styles of watches with different prices targeting the teens and youth with collections like Legendry Eagle, Under Sea Screen. For adults, their collection is Casse cou for Men and middle aged elders and senior citizens. They positioned their product suitable for various moods and segments to compete in highly competitive market so that they will be able to defend against competitive attacks and emerge as the segment leader. The Swatch latest collections launched as below. Different models targeting different age segments

Watches for HIM- Targeting men Watches for Her –Targeting women

For Special events

Mother day collections Valentine day Christmas specials Spring summer collections 2009 New year 2009 Bijoux collections

Swatch Strategies: Swatch gives exchange and replace offer by allowing the customer to give their old watches which he is using for quiet long or which is not working with new swatch watches. They also started educating the customer between real and replica watches so that they can differentiate and buy the watches wisely.

3.3 MARKETING ENVIRONMENT Swatch has the following marketing environment. Political: Being foreign watch maker they did not have access in Indian market until free trade is announced. Joint venture with some Indian company may be beneficial in marketing in India maintaining all policies of Indian government. Internal: Manufacturing cost is high compared to other Asian watch manufacturing company. External: Swatch being the Swiss watch has a brand name in the market. Customer: Mainly targeted for youth. The SWOT analysis in form of Strength, Weakness, Opportunity and Threat are given below (also in Table 3.1).


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3.3.1 Strength Bold New Styling: The launch of the new Swatch brand in 1983 was marked by bold new styling, various fashion and art designs (Fig 3.1). High Technology: The Swatch watches were high-tech, highly branded and fully accurate. Varity of Products: Produce three main products: luxury, high value designer Swiss watches and mid-range watches made out of stainless steel, silver and gold to appeal to affluent customers. Effective Marketing Strategy: The Company uses effective marketing strategy by satisfying its target market well. Repositioning into the Fashion Market: Swatch positioned the product targeting various segments of market by using different materials, appearances, designs. Price: A wide range of products with different designs across all price ranges.

Fig. 3.1 Swatch has the variety, style and design mainly targeted to youth [Source: official website of swatch, http://www.swatch.com/]


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3.3.2 Weakness Weak Employee Productivity: They have a very less number of employees. 3.3.3 Opportunities Creative and Innovative Brands: Swatch should continue their performance and work and involve vigorously in R&D about marketing environment adjusting marketing strategy timely, become creative and innovative brand in global market. Image: Swatch can establish a strong image in the mind of customer. As people carry watch on their skin for a long time, it has to fit with their personal style and lifestyle best. 3.3.4 Threats Managing Manufacturing Cost: It has to compete with cheap labor cost at Asian market when it has its own constraints of high value cost at Switzerland. Counterfeit Products: It is a serious threat to swatch. Competition: Intense competition between different companies (Tag Heur, Citizen, Casio, Titan etc) within a crowed market.

Table 3.1 SWOT analysis of Swatch in tabular form




Product Variety Opp C New innovation Strength Technology Opp Swiss brand image Strength Aesthetic Opp C Wide variety exist Strength Functioning Diversification

of Product (digital, waterproof etc.)

Opp C Do market survey, Employ more skilled labor

Strength



Strength


Strength

Utility VAT, Import duty

Threat UC Weakness

Other brands Threat Brand image Strength Manufacturing

cost Threat UC Weakness

Demand Recession Threat UC Give attractive offers, discount, exchange offer

Strength


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Advertisement Opp C Strategically position bill board, slogan

Strength



Strength

Counterfeit Products

Threat UC Increase awareness among customers

Strength

Brand ambassador


Strength

Acceptance (Macro)

Political support Threat Maintain government policy

Strength

Unions Threat UC Good relation, give incentives, rewards, recognition, proper working condition

Strength

Patriotic feeling Threat UC Indian brand like Titan have advantages to Indian customer

Weakness

Acceptance (Micro)


3.4 ADVERTISEMENT

Fig 3.2 Exuberance of youths is displayed in the advertisement of Swatch [Source: official website of swatch, http://www.swatch.com/]

Swatch’s advertisement is targeted to the youth as it is displayed in Fig. 3.2.


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3.5 POSITIONING OF THE BRAND Swatch’s position in the matrix will be experience attributes (Fig. 3.3).

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(SWATCH)

Fig 3.3 Present position of Titan in the matrix

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Chapter FOUR

TAG HEUER OF SWITZERLAND

4.1 HISTORY

ounded in 1860 by Edouard Heuer, TAG Heuer is known for producing high-end luxury timepieces. It is world famous for making chronograph which is a timepiece or watch with both timekeeping and stopwatch functions. Tag Heuer, in keeping with its image as a luxury brand with an innovative spirit, has long standing links with the

world of sport and Hollywood and has been the official timekeeper of the Olympic Games, the Skiing World Championships and the Formula 1 World Championship. 4.2 CURRENT BEHAVIOR Tag Heuer, in a constant quest for innovation, excellence, performance and prestige, continues to aim ever higher, as reflected in its partnerships with team Vodafone McLaren Mercedes in Formula 1. By endorsing 2007 F1 Champion Kimi Raikkonen of Ferrari, 2008 F1 champion Lewis Hamilton of McLaren Mercedes, world number 1 golfer Tiger Woods, WTA star tennis

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player Maria Sharapova, NASCAR idol Jeff Gordon, Hollywood superstars Brad Pitt and Uma Thurman and Bollywood icons Shah Rukh Khan and Priyanka Chopra, TAG Heuer epitomizes Sport and Glamour. Tag Heuer Market segmentation

Targeting sports persons. High profile customers. High Income group Celebrities

4.3 MARKETING ENVIRONMENT Tag Heuer has the following marketing environment. Political: Tag Heuer is a foreign company. As such it has to follow all the rules and regulation of Indian government for importing the watches. Internal: Manufacturing cost is high compared to other Asian watch manufacturing company. External: Tag Heuer has a very high brand name particularly in sports watch and chronographs. Customer: Mainly targeted for sports player and glamorous people. The SWOT analysis of Tag Heuer in form of Strength, Weakness, Opportunity and Threat are given below (also in Table 4.1). 4.3.1 Strength Long history and Brand Image: Tag Heur has a long history and very good brand image being established way back in 1860.

Fig 4.1 Tag Heuer is world famous for making chronographs


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Chronographs: It has almost monopoly in chronographs (which is a timepiece or watch with both timekeeping and stopwatch functions) sector (Fig.1). It innovated worlds first automatic chronographs in 1969. Brand Ambassadors: Tag Heuer engaged major celebrities like Tiger Woods (golfer), Leonardo Dicaprio (Actor), Maria Sharapova (Tenis Player), Lewis Hamilton (Formula One Racer) as Brand ambassadors for its products. 4.3.2 Weakness Segment Targets: It targeted mainly on the upper segment of the Market (Hollowood, Bollwood, renowned sports persons etc.) 4.3.3 Opportunities Other Segments: It has vast opportunity to capture middle and lower segments of the society. 4.3.4 Threats Manufacturing Cost: It has to compete with cheap labor cost at Asian market when it has its own constraints of high value cost at Switzerland. Counterfeit Products: It is a serious threat to swatch. Competition: Intense competition between different companies of quartz (Titan etc) and digital (Citizen, Casio etc) within a crowed market.


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Table 4.1 SWAT Analysis of Tag Heuer

Parameter Variable Threat/

Opportunity Controllable / Uncon


Product Variety Opp C New innovation Strength Technology Opp Swiss brand image Strength Aesthetic Opp C Wide variety exist Strength Functioning Diversification

of Product Opp C Do market survey,

employ skilled labor, invent new technology

Strength



Strength


Strength

Utility VAT, Import duty

Threat UC Weakness

Competition Threat C Brand image Strength Manufacturing

cost Threat UC Weakness

Demand Price Threat UC Brand image Strength Recession Threat UC Give attractive offers,

discount, exchange offer

Strength

Advertisement Opp C Strategically position bill board, slogan, advertisement in television

Strength



Strength

Counterfeit Products

Threat UC Increase awareness among customers

Strength

Brand ambassador


Strength

Acceptance (Macro)

Political support Threat Maintain government policy

Strength

Unions Threat UC Good relation, give incentives, rewards, recognition, proper working condition

Strength

Patriotic feeling Threat UC Weakness Acceptance (Micro)



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4.4 ADVERTISEMENT

Fig 4.2 Renowned actor Leonardo Dicaprio in the advertisement of Tag Heuer (Source: official web site of Tag Heuer, http://www.tagheuer.com/)

Fig 4.3 International Tennis player Maria Sharapova in the advertisement of Tag Heuer (Source: official web site of Tag Heuer, http://www.tagheuer.com/)


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Tag Heuer has positioned itself as a true luxury sports watch brand. Many of the big names, like Tiger Woods (golfer), Leonardo Dicaprio (Actor), Maria Sharapova (Tenis Player), Lewis Hamilton (Formula 1 Racer), Shaharukh Khan (Actor) are the brand ambassador of tag Heuer.

4.5 POSITIONING OF THE BRAND Tag Heuer managed to position itself as emotional attribute with role models like Sharukh Khan, Priyanka Chopra, Tiger Wood, Maria Sharapova and many more sports personalities. Customer blindly goes for their products which their favorite and popular models are using. Tag Heuer’s advertisement is role model based, trying to make an emotional positioning. In the matrix its position is credence attributes (Fig 4.4).

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(TAG HEUER)

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Fig 4.4 Present position of Tag Heuer in the matrix

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Chapter FIVE

CONCLUSIONS

5.1 SUMMARY

marketing analysis of four brands of watches, namely HMT, Titan, Swatch and Tag Heuer are presented in the report. Every brand has some strengths and weakness which has been presented as SWOT analysis form. Marketing environment of each brand is analyzed. At the end, advertisements of each brand

are presented and their position in the market is determined. Following points can be summarized from the analysis. i) Once, HMT was pioneer in mechanical watch in India. However in the passage of time,

HMT has lost its position as they could not produce the product as per the customer’s changing taste and preferences.

ii) Presently Titan is the market leader in Indian market. They have a very good sales and service network. With new innovative ideas they always develop new product to satisfy the customers.

iii) Swatch brand was launched originally intended to re-capture entry-level market share lost by Swiss manufacturers during the aggressive growth of Japanese companies. It has re-popularized analog watches at a time when digital watches had achieved wide popularity. Its product is mainly targeted to youth.

iv) Tag Heuer has a long history, established way back in 1860. It is the pioneer in making chronograph and sports watch. TAG Heuer epitomizes sport and glamour and its product is mainly targeted to glamorous people.

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References

[1] Swiss Shop Duty Free, A brochure collected from Swiss International Airline by author Asokendu Samanta during his journey to Zurich, 2007.

[2] Marketing Management, P. Kotler, K. L. Keller, A. Koshy and M. Jha, 13th ed, Prentice

Hall, New Delhi, 2009. [3] Marketing Management, R. Saxena, Tata McGraw-Hill, New Delhi, 1997. [4] Class Notes on Principal of Marketing, by Prof. P. Venugopal of XLRI, Jamshedpur, Post

Graduate Certificate in Business Management (PGCBM-15), 2009. [5] Official website of HMT, http://www.hmtindia.com [6] Official website of Titan, http://www.titanworld.com

[7] Official website of Swatch, http://www.swatch.com

[8] Official web site of Tag Heuer, http://www.tagheuer.com

a marketing analysis of four brands of watches: hmt, titan, swatch, tag heuer

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