indian watch industry
TRANSCRIPT
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Marketing Management
Marketing research Report on watches
Submitted to: Submitted by: Prof. Ajeet Sharma Group no. 5 Ankita Jain Ashish Sharma Hitali Makkar Disha Mahajan (Group -5) Ambesh Srivastava Indranil Bhowmick
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CONTENTS
ACKNOWLEDGEMENT………………………..3
PREFACE…………………………………………4 A QUICK LOOK TO WATCH INDUSTRY…...5 OBJECTIVES……………………………………..6 RESEARCH PLAN……………………………….7 ANALYSIS OF QUESTIONNAIRE…………….8 SWOT ANALYSIS……………………………….23 LIMITATIONS……………………………….....24 CONCLUSION………………………………....25 QUESTIONNAIRE……………………………….26
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ACKNOWLEDGEMENT
We would like to thank our faculty Prof. Ajeet Sharma for giving us the opportunity to expel and work in the field of Marketing while doing the research. This report provided us the exposure to the real market and consumers in the prevailing market. A well combination of theory and practice helped us in compiling this report on marketing research. We would like to give our gratitude and regards to all the consumers who cooperated with us in giving their individual feedback towards the product to reach a conclusion.
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PREFACE With the fast pace of constantly increasing competition, companies are coming up with some or other innovative options to make customers highly satisfied and loyal towards them. Marketing research is done to reach on a final decision and collect data from consumers in order to reach on a conclusion thereby getting feedback from them. The project comprises of a consumer survey with a sample plan of 100 people from the age group up to 60 years. On the basis of survey conducted various findings are explained. Finally the conclusion have been given.
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A QUICK LOOK TO THE WATCH INDUSTRY As the economy recovers, watch/clock marketers are feverishly innovating, licensing fashion brands, and styling for every possible taste. Rivals at all levels are realizing that it now takes more than good old fashioned merchandising to stand out from the vast herd of watches. This report covers time-keepers at all levels, from the inexpensive casual watches to high-end, luxury items. All kinds of watches are covered from a strap watch to a digital watch. Various features of a watch like quality, price, design, brand image, warranty are considered that affect the consumer buying decision. Promotional that motivates people to get aware about the brand and buy that particular brand are studied with varied responses of customer.
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OBJECTIVES
• To classify the users of watches on the basis of three categories - lower income group, middle income group, and higher income group.
• To study The Marketers including discussions of specific marketer brand.
• The Consumer who’s buying what, and where. • To analyze latest Trends and Opportunities. • To Discover what the luxury watch consumer considers to be
the most important features of watch, enabling you to tailor your offering accordingly
• Gain insight into future trends • Develop an idea in the watch market • To find the market leader in the industry. • To find out the recent threat to the watch market
7Research plan
The research is based on the survey filled from various types of consumers in New Delhi region. The method adopted for these findings is survey method. The main aim is to get the feedback from various customers and users of watches. The questionnaire is thought to be the most suitable because it allows structured, meaningful and uniform interaction with the respondents. The questionnaire adopted includes some of the open ended questions too. Data source: Primary data has been gathered to conduct the research. Research approaches: As mentioned earlier, survey has been conducted to gather the primary data. Research instrument: Questionnaire has been taken as the Research instrument Design of questionnaire: The questionnaire is designed in a structured manner keeping in mind all the basic steps for construction of a questionnaire and considering all the scales. Sample Plan: Sampling unit: Information is gathered from various sampling units. They are:
Students Self employed people Professionals Businessmen Housewives
Sample size: Sample size of 100 customers consists from the following areas:
College Restaurants Shopping malls Apartments
8 ANALYSIS OF CONSUMER QUESTIONNAIRE
Q1. Which type of wrist watch do you like to wear?
Types No. of users
Percentage
Sports watch 20 20
Digital watch 6 6
Single Strap 18 18
Chain watch 32 32
Bracelet watch 16 16
Others 8 8
Total 100 100
Observation: It is observed that chain watches are preferred over other types of watches. Generally, bracelet watches are preferred by females and sports watch by young generation most of which comprises of males.
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Q2. You prefer your watch as?
Type No. of users
Percentage
An accessory 46 46
A necessity 54 54
Observation: In this question it is observed that the product watch is looked after as a necessity over an accessory. Although there is not much difference between the percentages, because user’s with their individual choice went for the suitable option.
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Q3. Do you prefer a cell phone over your watch for referring time?
Answer No. of users
Percentage
Yes 56 56
No 44 44
Observation: More than 50% people do prefer cell phones over a watch and 44% people do not prefer cell phones. This shows that the demand for the watch is prevailing less in the market.
Q4. What features do you consider while purchasing a watch?
Features No. of users
Percentage
Quality 48 48
Price 22 22
Brand image 34 34
Style/ Design 60 60
Warranty 18 18
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Observation: A single feature is not considered by the users, but more than 3 features are opted by them. This is the reason that we can see varied number of users and percentages. In the survey 60% people go for design over all other features while 48% for quality, thereby ignoring price which is just at 22%. Warranty is at its minimum and brand image is a bit higher as compared to it. All this depicts that design is the most important feature for customers.
Q5. For what level does the warranty of a watch affect you while making a purchase?
Level No. of users
Percentage
Priority 22 22
Often 38 38
Rarely 16 16
Does not affect 24 24
Total 100 100
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Observation: It is observed that for 38% people warranty of a watch affects very often, for 22% it is their priority, for 16% people warranty is a rare affect and for 24% warranty does not affect at all.
Q6. Which brand of watch you are currently using?
Brands No. of users
Percentage
Titan 44 44
Timex 16 16
TAG Heuer 13 13
Fast track 15 15
Others 12 12
Total 100 100
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Observation: Maximum number of people are using Titan that makes 44% of the total users, and then second most preferred brand is Timex the demand being for it is 16%, Tag Heuer being at 13% and Fast track at 15% and the other brands taking a share of 12%.
Q7. What motivated you to make your purchase?
Brands No. of users
Percentage
Newspaper/ Magazine 10 10
Electronic media 12 12
Banners/Hoardings 2 2
Friends/ family 20 20
Self Decision 56 56
Total 100 100
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Observation: More than 50% users made their purchase on the basis of their own decision without getting influenced by any promotional factors, while 20% by the suggestion of friends/ family, 10% by newspaper, 12% by electronic ads and only 2% by Banners and hoardings. This shows that the buying decision of a watch is not much affected by the promotional strategies of the company. In fact major 0f the population rely on their own when they think of making a purchase for a watch.
Q8. Does the publicity of watches by celebrities affect your buying decision?
Answer No. of users
Percentage
Yes 65 65
No 35 35
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Observation: Here the ratio is almost equal as 65% people say that their buying decision is affected by the publicity of celebrities for watches while 35% say it does not affect their buying decision.
Q9. Are you satisfied with the brand that you are using?
Answer No. of users
Percentage
Yes 96 96
No 4 4
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Observation: 96% people said that they are satisfied with their existing brand while only 4% said no, so there is not much scope of them to change their brand. When new offers would be available with other brands, only then, they will think to switch over the brands. Q10. If no, what more is needed to make your watch suitable according to you? Observation: As only 4% users are not satisfied with their existing brands, so there are no more suggestions to be given, except one that the watches should come up with more trends. Q11. What additional features would you like to go for?
Features No. of users
Percentage
Day, month and date 16 16
Stop watch 12 12
Alarm 40 40
Temperature 32 32
Total 100 100
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Observation: 40% people want alarm as an additional feature in their watch. 32% would like to have the temperature feature to be added, 16% needs day, month and date and 12% wants stop watch facility in their watches. It is observed that all the added features are well in demand.
Q12. How often you switch off the brands?
Observation: 50% says they change their brand depending on their mood or with any new scheme in the market, 28% people are brand loyal and does not prefer to switch off, 16% look for affordability before switching and only 6% people change their brand very often. So with the new options available and convenience of people they change their brand.
Features No. of users
Percentage
Very often 6 6
Depends on mood 50 50
Affordability 16 16
Brand loyal 28 28
Total 100 100
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Q13. If given a chance to change your watch, you would go for?
Brands No. of users
Percentage
Titan 26 26
Timex 21 21
TAG Heuer 15 15
Fast track 20 20
Others 18 18
Total 100 100
Observation: Out of the brands considered for the survey, 26% of the people wants to go for a purchase of titan if given a chance as Titan already captures a lot of its existing customers, another 21% wish to switch to Timex, for Tag Heuer that are high income group luxury watches with high
19price tags 15% is the statistics, . 20% wants to go for Fast Track and 18% wants to go in for other brands. Q14. How would you rate your watch on the basis of following features? (Rank on a scale of 1-5)
Observation: Design has got the highest rating by 80% people, and then people gave the second priority to quality after which warranty followed by price is preferred, leaving color at the end. This depicts that price is not the
Features No. of users
Percentage Rating
Design 80 80 1
Price 40 40 4
Quality 68 68 2
Warranty 30 30 3
Colour 20 20 5
20top most priority for the users while they consider design as the most important aspect.
Q15. Other information
AGE
Age No. of users
Percentage
20 or less 2 2
21-28 78 78
29-38 10 10
Over 39 10 10
Total 100 100
21Observation: The survey comprises of people from different age groups but the highest percent of people within the age of 21 and 28 took active participation in the survey and showed their immense cooperation. Only 12% of them were between the age of 29-39, 8% of them were over 39 years of age and only 2% were less than 20.
SEX
Sex No. of users
Percentage
Male 64 64
Female 36 36
Observation: The ratio of participation of males and females in the survey is 64:36 which shows that males took more participation in the survey as compared with females. INCOME GROUP
Income group No. of users
Percentage
100000-150000 16 16
150000-175000 30 30
175000-250000 26 26
250000 & above 28 28
Total 100 100
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Observation: Only 16% from lower income group participated in the survey and 30% of the people are from the lower middle income group, 26% from higher middle income group and 28% from higher income group. This shows that higher and middle income group people were almost equal in number for participation.
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SWOT ANALYSIS OF THE INDUSTRY
Strengths
• Watch industry is growing at the rate of 30% every year. • As population is rising, the watch market is also expanding. • Customers are not very price sensitive as far as quality watch is
concerned. Weakness
• Not much advertising is done by the watch industry. • No product innovation what so ever. • Few numbers of exclusive showrooms reduces the consumer’s
accessibility to the product. • There are few marketers, who are concentrated only up on a particular
niche segment. Opportunity
• The young, independent individuals are the “trendsetters” that the fashionable luxury watch and fine luxury watch brands can target.
• In India the market is huge and demand is unlikely to change
• People are using it as a fashion accessory which means more demand for the product.
• Youth of India are far more brand conscious than their successor. That can lead to the expansion of the market for branded watches. Threats
• Many foreign players entering in the race. • Too many players will dilute the market & the profit margin. • Mobile phones acting as substitutes of the watches. • Increasing the price of the raw material like steel may increase the price of
the product.
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LIMITATION
• This study has been done only in the South Delhi and hence cannot be
representative of Delhi as a whole. • Sample size is very small it might not cover whole targeted population. • The primary data is limited and is constrained by the availability and
approachability. • The information given by the respondents may not be correct as some were
rarely interested and gave some rough ideas for the sake of answering. • Due to paucity of time, it was impossible to know the interest of a large
number of respondents.
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CONCLUSION
After making the analysis and observation from the survey conducted and information gathered from various customers about different brands of watches, it is concluded that Titan is the most commonly used brand by all the watch users. Timex is the second and best priority for higher middle income group. Fast Track being not so demanded remains on an average position.This survey also gives information about the existing features and some added features desired by customers that are to be introduced by the companies. Now a days, watches are facing serious competition with cell phone for referring time, but with the cut throat competition all the leading brands of watches are managing well in the market and this shows that the charm of watches can never end whether it is an accessory for some and necessity for others. Chain watch is most commonly used by all customers. Design and quality are two important factors in the purchase
decision of a watch. Titan is the most commonly used brand. Maximum consumers relied on their own decision of purchase
irrespective of the promotion of various brands. Most of the people switch off brands with new offers.
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QUESTIONNAIRE Kindly spare your precious time to fill this questionnaire.
1. Which type of wrist watch do you like to wear?
2. You prefer your watch as?
3. Do you prefer a cell phone over your watch for referring time?
4. What features you consider while purchasing a watch?
5. For what level does the warranty of a watch affect you while making a purchase?
6. Which brand of watch are you currently using?
7. What motivated you to make your purchase?
Sports watch
Digital watch
Single strap watch
Chain watch
Bracelet watch
Others,
specify
An Accessory
A necessity
Yes No
Quality
Price
Brand Image
Style/Design
warranty
Priority Often
Rarely
Does not affect
Titan
Timex
Tag Heur
Fats Track
Others,
specify
Newspaper/Magezines
Electronic Ads
Banners/ Horadings Friends/ Family
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8. Does the publicity of watches by celebrities affect your buying decision?
9. Are you satisfied with the brand that you are using?( if yes, jump to Q.11)
10. If no, what more is needed to make your watch suitable according to you?
______________________________________________________________________________________.
11. What additional features would you like to go for?
12. How often you switch off the brands?
13. If given a chance to change your watch, you would go for?
14. How would you rate your watch on the basis of following features? (Rank on a scale of 1-5)
Self Decision
Yes No
Yes No
Day, month and Date
Stop watch
Alarm
Temperature
Very Often
Depends on mood
Affordability Brand loyal
Titan
Timex
Tag Heur Fast Track
Others,
specify
Design
Price
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15. Other information Name ___________________. Contact No.________________. Age
20 or less 21 - 28 29 -38
Over 39
Sex
Male Female
Occupation ____________________. Income group(annual)
1,00,000-1,50,000
1,50,0000-1,75,000
1,75,0000-2,50,000
2,50,000 & above
Quality Warranty
Colour
Others,
specify