roll no 24 fastrack

8/19/2019 Roll No 24 Fastrack

1/12

Fastrack

Fastrack is a brand of watches from the house of Titan Industries Ltd. which is the market leader

in the watches category in India. Titan has a market share of 65% in the organized watch market.

Titan is also fifth largest integrated watch manufacturer in the world. The company has

manufactured more than a !! million watches till date" and has a customer base of o#er $!

million. The umbrella brand Titan is one of Indias leading watch brands that brought about

a paradigm shift in the Indian watch market& offering 'uartz technology with international

styling.

The watch market has been affected highly with the penetration of mobile phones& as mobile has

taken place of a time(keeping machine. )ow& the use of a wrist watch is not timekeeping& but

style& fashion and physical appearance. *ore than 5$ percent of the customers are under twenty

fi#e and more than $! percent are below +5 years of age.

Fastrack was launched in ,,$ as a sub(brand of Titan. It was spun off as an independent brand

of watches targeting the urban youth in -!!5. ince then& it has infiltrated the li#es of India/s

youth with designs that were refreshingly different and affordable. 0uring that time& Fastrack

also 1umped headlong into the sunglasses business and in the last + years has 'uickly notched up

the title of being the largest sunglasses brand in the country. Fastrack has now pushed past the

horizons into newer areas 2 bags& belts& wallets& wrist bands and e#en helmets 2 as part of its

mission to offer the youth e#erything they need to be cool3


2/12


3/12

A glimpse of Fastrack’s product portfolio

Fastrack has positioned itself as a dedicated brand for style lo#ing& smart youth. Fastrack is the

premium stylish wrist watch& which gi#es sporty look and style because of its gorgeous design&

appeal and brand reputation. Fastrack has target market of mid premium urban stylish youth

owning multiple watches.

SWOT Analysis

Strengths

4ood 0istribution )etwork 2 o#er !! Fast track stores across 5! towns with Titan

er#ice entres across India

igh youth connect 2 7ositioning as a youth stylish brand Fast changing designs to keep up with latest trends

8ne of the most trusted brands in India

9:cellent ad#ertising and brand #isibility connecting with the youth

as a di#erse portfolio of watches& sunglasses& bags& wallets etc.

Weaknesses


4/12

7roducts ha#e a short life due to changing trends 2 ;dds to the cost of production

Less significant presence on the rural frontier

Limited global reach despite being a popular brand

Opportunities

Fast growing youth segment presents growth opportunities

4lobal penetration would help brand grow and target youth worldwide

Tie(ups with fashion houses and special schemes for youth

Threats


5/12

The pricing strategy adopted by Fastrack is market share ma:imization as they are targeting

people with affordable cost range. They ha#e watches from the range of +,5 to more than +,,5&

so that they can attract customers of lower segment to higher segment and this clearly shows that

they are into capturing more of the market share than making profit or other strategies. 4i#ing

stylish Cranded watch for 5!! has attracted customers much& where competitors ha#e an a#erage

price of +5!! for the same. Fastrack always come up with discount offers at auspicious occasions

to capture more market. They also pro#ide e:change offers& when old watch is replaced by new

watch they pro#ide a discount upto +!%. Fastrack follows psychological pricing strategy and

ends the price with 5. o people percei#e the price as low as people in India tend to think that the

company is not charging them entire hundred rupees but it is charging them less.

Comparison with two of Fastrack’s competitors Time! " Casio

Time!


6/12

• D(based large manufacturer of watches

• It is the largest selling brand in D A anada

• It is lowest cost watch manufacturer of the world

• 9ntered India in collaboration with Titan& broke away in ,,$

• It is a big competitor of Fastrack

• ?eli:@ brand of watches by Time: is positioned in direct competition with Fastrack

• Time: pro#ides its ranges from Es. 5!! to 55!!

• Time: also pro#ides watches in premium category as well

• *oreo#er& it has a perception of being a ?D brand@ in the minds of ustomers

• Time: follows penetration pricing strategy

• 7enetration pricing is a pricing strategy where the price of a product is initially set at a

price lower than the e#entual market price& to attract new customers. The strategy works

on the e:pectation that customers will switch to the new brand because of the lower price.

7enetration pricing is most commonly associated with a marketing ob1ecti#e of increasing market share or sales #olume& rather than to make profit in the short term. The

price will be raised later once this market share is gained.

Casio

• apan(based company

• 7roducts include watches& calculators and musical instruments

• *arket leader in calculators with ,!% market share

• trong presence in digital watch market

• Eecent positioning focuses on low end watches

• =as pioneer in coming out with the concept of shock(resistant watches

• asio uses differentiation followed by cost leadership as its strategy

• asio lacks media presence

• asio watches are priced at the same parity le#el as that of Fastrack watches

• asio also sells watches in premium category as well

#etailing Strategy

Fastrack was launched with new products& a new identity& new ad#ertising A a new logo in une

-!!5. The year took off so well that they ran out of stock #ery 'uickly and ended the year with a


7/12

5! per cent growth and the demand was growing continuously. )e:t year& they recorded another

!! per cent growth. This was possible because Fastrack had combined its branding strategy with

a highly effecti#e retailing strategy which remains a ma1or contributor to Fastrack/s success till

date. Fastrack has a presence in o#er 6!!! outlets across $!! towns& with new e:clusi#e brand

kiosks in metro malls and its multichannel distribution network which co#ers the --$ strong

=orld of Titan )etwork& -- large format chain stores #iz. hoppers top& Lifestyle& entral&

=estside& 7antaloons and multibrand watch A optical outlets.

Fastrack also sells its products through the 55 9:clusi#e Fastrack toresGHiosks spread across --

towns offering some e:clusi#e products and ser#ices and thereby gi#ing the customer pri#ileged

feel. Fastrack watches are also sold through the following popular online shopping portals

( Flipkart( *yntra( abong

( =atchkart

( Lenskart( Cagskart

;part from the abo#e options to purchase online& one can also purchase Fastrack watches

directly from the company/s website using credit card or debit card.

There is no gift better than the gift of choice. 4ift cards from Fastrack make an inno#ati#e

gifting option. ; gift card can be purchased for a minimum amount of Es. !! JredeemableK and

ma:imum of Es. !&!!!. The card e:pires within $! days of purchase or last recharge. The gift

card is similar to gift #ouchers but much more con#enient. The card is rechargeable any number

of times. Dnlike a #oucher& the balance in the card can be redeemed for the e:act bill #alue with

the remaining amount staying with you to use another time.


8/12

$ift cards offered %y the company

&istri%ution Strategy

Though Titan is 1oint #enture established between Tata 4roup and Tamil )adu Industrial

0e#elopment orporation in ,$+& it is an independent board and is professionally managed by

Tata 4roup. Fastrack products are manufactured at si: manufacturing facilities. *ain watch A

1ewellery are manufactured at plants in osur near Cangalore. There are also watch assembly

plants at 0ehradun and imachal 7radesh. There is 9C manufacturing plant in 4oa. The latest plant is started at 7antnagar& Dttaranchal in -!!. The company has adopted multi(channel

distribution strategy. Titan has 65 distributors handling well o#er &!!! dealers across the

country. Titan distributes the products through an e:clusi#e distributor in each country& who is

responsible for indenting& distributing& ser#icing& assisting and pro#iding marketing support for

the brand.

Fastrack also follows parallel distribution in the following manner

( It sells watches online through direct marketing

( It sells through factory outlets like Fastrack tore and =orld of Titan

( It sells its products in ma1or shopping store chains( It sells its products through retail outlets as well


9/12

8ne can also become a part of Fastrack/s distribution channel by owning a Fastrack franchisee.

Fastrack pro#ides warranty of one year on all its watch range. ;fter sales ser#ices are a#ailable at

Fastrack and Titan showrooms.

Ad'ertising Strategy

Traditional method adopted uncon'entionally

8ften& watches are taken as one(time purchase goods& Fastrack is the first company to promote

the *ultiple =atch concept& by promoting with the tag line ?ow many you ha#e...B@ The whole

ad#ertising is co#ered by media such as oarding& 787& Tele#ision ;ds& )ewspaper& *agazines.

;s the ad#ertising campaign is carried on through different manners the young generation is

attracted toward the brand. 7ublic displays also play an important role in promotion. The colorful

and li#ely bill boards play an important role in promotion.

Catchy taglines did the trick

The recently launched ad campaign ?*o#e 8n@ was also successful in connecting the company

to today/s youth. Fastrack/s website is the tool they used to attract the youth& the pictures

displayed on the website create curiosity and interest among the consumers towards the product.

Colla%oration with (T) * another youth icon itself

Fastrack in collaboration with *T has introduced the ?Fastrack *T *asala ollection@2 a

range of ! unise: watches. Inspired by people& ob1ects and situations that are typical of an

Indian way of life& these ! themes ha#e been brought to life with a dash of humour and #ibrant&

funky graphics.

Coming right into the spotlight with effecti'e use of Face%ook and Twitter


10/12

Fastrack was one of the first brands to use social media to engage with potential and e:isting

consumers. The company started with two communities on Facebook and a Twitter account in

eptember -!!M. It created created the DEL re(direct httpGGwww.fastrack.inGfacebook to take

fans directly to Fastrack/s fan page. ince its inception& this link has been used across the

billboards& take(ones& contest forms& emailers and all offline forms. The company then 1umped

right into Twitter allowing it to connect with fans on a more indi#idual basis& answering 'ueries

directly& sol#ing customer issues& gi#ing out store addresses and the like. The company

campaigns around its social media communities& whether it be by releasing ads a few days in

ad#ance on


11/12

Future Strategy

Following are future strategies a#ailable for Fastrack as a brand. ome of them are already in

plans while others are suggestions that can be implemented upon and hence may result in further

growth of the company

• Fastrack presently contributes -5% to parent Titans total watch business but is gearing up

to take it to o#er O5% by -!5

• Fastrack eyes Es. O!!! crore sales by -!5 from last year sales of Es. !!! crores

• The company can also reach the untapped rural market segment as rural population has

also pro#ed that they ha#e significant disposable income and thereby company can target

rural youth

• Fastrack must also focus on e:ports along with the domestic market

• Fastrack must target other emerging markets in ;sia like hina& ietnam& 7hilippines&

Indonesia


12/12

• It should also enter de#eloping markets in 9urope& Latin ;merica and ;frica as these

markets pro#ide good customer base and most of the global companies ha#e been

following the same trend

• Fastrack has also declared its plans to foray into bicycle segment

• Fastrack should consider entering newer consumer segments like perfumes& deodorants&

apparels& footwear and other possible fashion accessories for men and women. ;lso&

these products should be tried to be sold under one roof to gi#e the customer an

integrated shopping e:perience

roll no 24 fastrack

Documents