consumer perceptions about different brands of watches (1)
TRANSCRIPT
A RESEARCH ON CONSUMER
PERCEPTIONS ABOUT
DIFFERENT BRANDS
OF WATCHES
Prepared for:
Dr. K.R. Nisha
Faculty of Business Research MethodSCMS Cochin
Prepared by:
Surya Narayanan Rai
Jenna Tresa Joseph
Anees P S
Praveen Prakash
Pratik Tiwari
Gopakumar P
Aswathi E S
John P John
Sanuj Sanadhanan
May 16, 2011
1
EXECUTIVE SUMMARY
Customers give more preference to the design than price and quality.
Consumers buying patterns are drastically changing and watch manufacturers
should keep up with the demand.
The survey is conducted on a group of consumers within the age group of 15-35
years and above. Sampling size of 100 consumers and retailers
Buying pattern differ from gender 80% men likes to buy titan watches and 60%
women prefers titan and 30% omega.
Promotional offer is important for every industry. But real scenario of watch
market is different. More than half of the retailers say it is important to have
promotional offer. Preference of straps is different at various levels. Preference
of leather strap is 53% and 33% for plastic this shows that consumers still like
the classic leather straps. Celebrity endorsement increases the visibility of the
watches and they feel that it has high quality.
Invest more in R&D as customer expectations are changing rapidly and to
sustain in market. Showrooms should be extended to the rural area and cheap
and rugged watches should be introduced to capture this market. Introduce
exclusive collection for working women. With the innovation of designs in
watches, companies will be able to enjoy more profits and more customer
satisfaction.
2
INTRODUCTION
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.
Indian watches market was for long dominated by public sector organisations
like Hindustan Machine Tools Ltd. (HMT) But now it is being dominated by
private sector enterprises like Titan, Sonata, Ajanta and Timex along with
foreign entities jostling for display space in the smallest of shops selling these
products.
In post liberalization India, the market stood to witness intensive competition
between foreign and Indian manufacturers like Timex, Titan, Movado,
Longines, Rado, Rolex, Fréderique Constant, 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.
Besides this, 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
3
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.
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.
Many customers prefer mechanical and automatic watches, while others prefer
quartz watches. Newer segments are also on rise such as ladies watches,
children’s watches and gent’s watches. Customers usually base their preferences
and buying decisions on a variety of factors like price, durability, utility,
aesthetic appeal and brand name. A combination of all these points ultimately
forms the customer’s buying decision that translates into the purchase of a
watch.
4
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 utilize 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.
In the end, though India is still considered to be a difficult market to penetrate,
due to reasons like price sensitiveness and its largely unorganized sector.
However, with the right planning and the right partners and experienced
collaborators, it is expected that both international and domestic watch
manufacturers will do well in the Indian markets.
A successful brand is the most valuable resource a company. Brands are used as
external cues to taste, design, qualify, prestige, value and so forth. Consumers
associate the value of a product with the brand. The association reflect the fact
products are used to express lifestyles where as other associations reflect social
positions, and professional roles. Marketers use brand associations to
differentiate, position, and extend brands, to create positive attitudes and
feelings towards brands, and to suggest attributes or benefits of purchasing or
using a specific brand. Brands help consumers judge the value of a product.
Consumer perceptions play a very important role for brand equity and brand
loyalty.
5
PROBLEM IDENTIFICATION
Customers usually base their preferences and buying decisions on a variety of
factors like price, durability, utility, aesthetic appeal and brand name. A
combination of all these points ultimately forms the customer’s buying decision
that translates into the purchase of a watch.
The problems faced here are:
Consumers demand for different brands of watches
Consumer preferences are changing rapidly
Young generation needs and demands are increasing and their buying
pattern is changing rapidly.
RESEARCH OBJECTIVE
There is a constant need to innovate, update, recalibrate, or just simply fend off
the competition in an effort to better explain "why buy me."
The objective of this research is:
To find out the reasons consumers choose a particular brand of watches.
To identify consumer’s perception about different brands of watches.
To identify factors of consumer’s loyalty about a particular brand.
To identify consumer behaviour of younger generation.
To identify satisfaction level of consumers about branded watches.
6
HYPOTHESIS:
The null hypothesis here is that there is no co-relation between price and
alternate hypothesis the buying behaviour of the consumers.
The younger generation calls for style than quality and price
Consumers are not loyal to the brand of watch which they buy
Consumers are satisfied with their purchase
RESEARCH METHODOLOGY
The study is exploratory type which helps us to determine the various factors
that influences a tourist to prefer a particular brand of watches over other
brands. It concentrates on analyzing brand loyalty, quality of services, etc.
RESEARCH DESIGN:
There methods used in this research are:-
1. Survey method
2. Questionnaire
3. Experiment survey
SAMPLING:
Sampling Elements: Consumers and retailers.
Population: The survey is conducted on a group of consumers within the age
group of 15-35 years and above.
Sample Size: We’ve reached out to 100 consumers and retailers for our study.
Sampling Technique: We’re following the Random Sampling technique where
consumers and retailers will be interviewed on a random basis.
7
DATA ANALYSIS & INTERPRETATION
Retailer’s View
According to retailer of watch stores, 80% preference of male is Titan watches,
13.33% prefer Citizen and 6.66% prefer others category of watches.
8
According to retailers preference of female is differ from male 60% female prefer Titan, 33.33% prefer Omega, 6.66% prefer Guess and 6.66% prefer others watches.
Importance of Promotional offers:
Statistics
Promotional offers
N Valid 15
Missing 0
Promotional Offers
Frequency Percent Valid Percent
Cumulative
Percent
Valid Very Important 1 6.7 6.7 6.7
Important 7 46.7 46.7 53.3
Neutral 4 26.7 26.7 80.0
Not Very Important 3 20.0 20.0 100.0
Total 15 100.0 100.0
Promotional offer is important for every industry. But real scenario of watch
market is different. According to retailers, “6.7% retailers were accepting very
important, 46.6% important, 26.7% neutral and 20% accepted not important”.
9
Knowledge level of customers in watch stores:
Research indicates that 46.66% customers have good knowledge, 40% medium
knowledge and only 13.33% customers have poor knowledge.
10
Preference of Straps in customers :
Statistics
Preferred Strap
N Valid 15
Missing 0
Preferred Strap
Frequency Percent Valid Percent
Cumulative
Percent
Valid Plastic 5 33.3 33.3 33.3
Leather 8 53.3 53.3 86.7
Metal 1 6.7 6.7 93.3
Textile 1 6.7 6.7 100.0
Total 15 100.0 100.0
Preference of straps is different at various levels. Preference of leather’s strap is
53%, plastic 33.3%, Metal 6.7% and textile 6.7%. So it is clear from research
that demand of leather straps are more in market.
11
Consumer’s View
Preferred Brand of watches
The analysis clearly shows that Titan is the most preferred brand. There is a
great variation from the rest of the brands. Titan has an overall preference of
26% of the entire population followed by citizen with 9% and Omega with 5%.
It is undoubtedly explained that the female population prefer only Titan.
12
Gender * Preferred Brand Cross tabulation
Count
Preferred Brand
TotalTitan Omega Citizen Others
Gender Male 24 5 9 2 40
Female 2 0 0 0 2
Total 26 5 9 2 42
Preferred purchasing place
Gender * Purchase Place Cross tabulation
Count
Purchase Place
TotalMalls
Branded
Showroom Retail out-let
Gender Male 11 20 9 40
Female 1 0 1 2
Total 12 20 10 42
Consumers prefer to buy watches from the respective showrooms. The female
population is insensitive to this approach and they prefer either malls or retail
outlets. From this table, it depicts a picture wherein male population are more
into the watch segment. Consumers prefer quality and guarantee and hence
prefer to buy from showrooms.
13
Base of purchasing pattern
Gender * Purchase Base Cross tabulation
Count
Purchase Base
TotalPrice Quality Colour Brand All
Gender Male 4 21 2 8 5 40
Female 0 0 1 0 1 2
Total 4 21 3 8 6 42
The study on the purchasing pattern of the consumers revealed that 21% of the
male population look for quality whereas an equal number of the female
population look for colour and all the attributes. Closely followed by the quality
is the brand of the watches.
14
Brand Loyalty
Gender * Brand Loyalty Cross tabulation
Count
Brand Loyalty
TotalVery Loyal Loyal Neutral Not Very Loyal
Gender Male 10 20 9 1 40
Female 0 2 0 0 2
Total 10 22 9 1 42
Brand loyalty is an important aspect. From the survey, the female population is
not at all loyal to any of the brands. In comparison, 20% of the male population
is loyal and 10% of the population is very loyal to the brand which they’re using
now. The reason behind this is due to the change in fashion and style which the
female population is more interested in.
15
Duration of loyalty
Gender * Loyalty Duration Cross tabulation
Count
Loyalty Duration
TotalBelow 1 year 1 year - 4 years above 4 years
Gender Male 6 14 20 40
Female 0 1 1 2
Total 6 15 21 42
Consumers have been loyal to a particular brand for more than 4 years. There’s
just a slight variation among the male population. The females however are not
consistent with any of the brands and lay importance on style and design.
16
Reason of loyalty
Gender * Loyalty Reason Cross tabulation
Count
Loyalty Reason
TotalAttractiveness design quality brand image
Gender Male 2 7 26 5 40
Female 1 0 0 1 2
Total 3 7 26 6 42
Certain companies were successful in retaining their customers due to the
quality and design laid out by them. However, they were not successful in
maintaining a good relationship with the female population and only 2% of the
female population are found to be loyal.
17
Medium of Awareness
Gender * Medium Of Awareness Cross tabulation
Count
Medium Of Awareness
TotalAdvertisements Friends Relatives Others
Gender Male 21 8 10 1 40
Female 1 1 0 0 2
Total 22 9 10 1 42
Advertisements play a major role in spreading awareness among the consumers.
21% of the male population are attracted to brands due to the advertisements
broadcasted followed by the opinions of the relatives. Peer influence is also a
major contributor of spreading awareness as it brings about more trust.
18
After Sales Service
Gender * After Sales Services Cross tabulation
Count
After Sales Services
TotalGood Average Above average Excellent
Gender Male 20 9 7 4 40
Female 2 0 0 0 2
Total 22 9 7 4 42
After sales service is one factor which helps in customer retention and majority
of the surveyed population, i.e. 22% have remarked the after sales service as
good. 4% have also had excellent services from their respective showrooms.
This also helps in building customer relationship and trust.
19
Preference of Straps
Gender * Preference of straps Cross tabulation
Count
Preference of straps
TotalPlastic Leather Metal
Gender Male 3 20 17 40
Female 0 2 0 2
Total 3 22 17 42
Leather strap was always considered as favourite among consumers and it
continues to remain the same. Leather watch straps are closely followed by
metal straps. However, 3% prefer plastic, it was found out that consumers who
prefer plastic watch straps were those who belong to low income group.
20
21
FINDINGS
1. Design is an important attribute while purchasing hence consumers are
looking forward to innovative designs by different brands.
2. 72% of the respondents in the age group of 20 – 30 years possess fast track
watch. This shows that the positioning strategy of these watches has been good.
3. There is a misconception about pricing of Titan products among the
consumers. They perceive them to be high priced.
4. Logos and taglines are rarely noticed by the watch consumers. Hence, any
change in them also goes unnoticed.
5. Advertisement in mass media such as television, newspapers, and magazines
are best means to spread awareness about brand.
6. Celebrity endorsement of watches not only increases the visibility of the
product but also gives an assurance to the consumers that it is of high quality.
7. The effective after sales service is one attribute that assures confidence in
buying a particular brand.
8. 53% of the respondents prefer leather strap due to the comfort while wearing
the watch.
9. Retailers believe promotional offers are important to promote a brand though
there’re a few loyal customers.
22
SUGGESTIONS
The suggestions to improve sales are as follows:-
1. To increase visibility, i.e., companies can sponsor events similar to fashion
shows in which all latest designs launched are displayed. This would have
multiplier effects the latest designs launched by the company get noticed by
different segments of the customers in varied ways.
2. Tie –up with FM radio channels for reminder advertisements and informing
customers about various sales promotion offers from time-to-time.
3. Invest more in R&D as customer expectations are changing rapidly. Though
there is product collections, focus should be on introducing more varieties in
already existing product collections. In other words, having a limited but more
depth in product collections would be more advantageous.
4. Introduce exclusive collection for working women which is more
contemporary and complements both traditional and western wear.
5. Majority of the population in India live in rural areas. So, showrooms should
be set up at places nearer to them. Introduce cheaper and rough use watches for
this segment.
6. The process of servicing and repairing of watches should be made faster. This
can be done by ensuring the spare parts availability and training all sales
personnel in showrooms to undertake these tasks.
23
CONCLUSION
Consumer perceptions of brand are multi-dimensional yet many of the
dimensions they identify appear to be very similar. The image that a good or a
service has in the mind of the consumer - how it is positioned probably more
important to its ultimate success than are its actual characteristics. Marketers try
to position their brands so that they are perceived by the consumer to fit a
distinctive niche in the marketplace - a niche occupied by no other product.
From the research conducted, it is evident that consumer perceptions about
brands play a very important role before purchasing any product.
Advertisements help in attracting consumers to a particular brand and adequate
after sales service makes them loyal to the particular brand. With the innovation
of designs in watches, companies will be able to enjoy more profits and more
customer satisfaction.
24
BIBLIOGRAPHY
1. ICFAI Journal of Marketing Management
2. ICFAI Journal of Brand Management
3. www.marketingprofs.com
4. www.brandingstrategyinsider.com
5. www.infibeam.com/static/indian-watch-market.html
25
APPENDIX
QUESTIONNAIRE
RETAILER
1. What is the average number of customers who walk into your shop in a
day?
Below 25
25-50
50-75
75-100
Above 100
2. How well are the consumers aware of the different brands of watches?
Good knowledge
Medium knowledge
Poor knowledge
3. Which is the most commonly purchased watch for men?
Titan
Omega
Citizen
Guess
Others, specify
26
4. Which is the most commonly purchased watch for women?
Titan
Omega
Citizen
Guess
Others, specify
5. Rank the attributes the customers look for while purchasing.
Price
Quality
Size
Colour
Brand
Others, specify
6. What according to you is the role of promotional offers in promoting a
brand?
Very important
Important
Neutral
Not very important
Not required
27
7. What kind of watch strap is preferred by consumers?
Plastic
Leather
Metal
Textile
8. What other information do the consumers enquire about before
purchasing a watch?
28
CONSUMER
1. Where do you usually shop?
Malls
Branded showrooms
Retail out-let
Other, specify
2. Which brand of watch do you prefer?
Titan
Omega
Citizen
Guess
Others, specify
3. On what basis do you make your purchase?
Price
Quality
Size
Colour
Brand
All
29
Others, specify
4. How loyal are you to this particular brand?
Very loyal
Loyal
Neutral
Not very loyal
Not loyal
5. How long have you been loyal to this brand?
Below 1 year
1 year - 4years
Above 4years
6. What are the reasons for your brand loyalty?
Attractiveness
Design
Quality
Brand Image
7. How did you come to know about this brand?
Advertisements
Friends
Relatives
30
Others, specify
8. How good is the after sales service of your brand?
Good
Average
Above Average
Excellent
Poor
9. What kind of watch strap do you prefer?
Plastic
Leather
Metal
Textile
10. Any other quality or feature that made you loyal to this brand?
31