Assignment 1 B

Indian Institute of Management, Nagpur

Post Graduate Programme in Management 2015-17

Group – 9

R. Anshul Agrawal (P15002)

Dheeraj Kumar Mucharla (P15026)

Goutham Mettu (P15022)

Rahul Yadav (P15054)

Sameer Prashant Kalamkar (P15018)

Table of Contents

Wrist watch – Indian Market....................................................................................................2

Research Objective...................................................................................................................2

Research Design.......................................................................................................................2

Exploratory Research............................................................................................................... 3

Secondary Research.............................................................................................................3

Qualitative Research with Potential Consumers..................................................................4

Consumer Preference.......................................................................................................4

FGD Details...............................................................................................................................8

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Wrist watch – Indian Market

When covering Indian market, you are talking of over 1.2 billion people largest only after

China in the world. Over 50 million wrist watches are sold every year in India which accounts

to over 43 billion rupees. Only about 30% of Indians use wrist watch which depicts the lack

of penetration of wrist watch market in Indian economy. Titan enjoys the major share

currently with about 65% of the organized market. Unorganized accounts for around 65% of

the market Males account for major share with around 70% of the market, also students

group is one of the largest segment with over 30% followed by business professionals. Since

penetration is low in Indian market with large unrecognized sector, wrist watch industry has

lot of potential and growth with respect to sales and price. There are lot of other overseas

competitors which are trying to make their way apart from the major dominance of Titan.

Considering the above market potential, ABC Watch and Co., a well-established European

watch company has decided to enter the Indian market for which they needed information

regarding the current market behaviour and its requirements so as to zero down to any

particular variety and consumer segment.

Research Objective

To determine a suitable positioning strategy for a new brand of wrist watches based on

existing market opportunities.

To determine the different factors which influence the buying behaviour of wrist

watches

To determine the existing market segments of wrist watches.

To determine suitable target group.

Research Design

The research design was basically divided into two phases:

1. Exploratory Research

2. Conclusive Research

Exploratory research is further subdivided into

1. Secondary Research

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2. Qualitative research with potential consumers

Exploratory Research

Secondary Research

The penetration in Indian market is about 25 watches per 1000 people which almost 10

times less than any developed market. There are several price points for watches in India.

Around 70% of the watches sold in India has price less than 1100.

66%

22%

9%2% 1%

Wrist Watch Market share in India

Urorganized Players Titan TimexHMT Others

The Indian consumer has come a long way since the time when watch imports were

banned. The improving mind-sets of urban consumers can be attributed to affluence, global

influence and exposure. Today, the Indian consumer no longer sees a watch as a functional

necessity. The Indian consumer is extremely brand conscious and sees it as a status symbol

that showcases his distinctive personality. India’s population dispersion is very lucrative:

more than 58% of India’s population is under 25 years of age (696 million) and over 80%

under 45 years (960 million). Indian consumers have tremendous buying power: there is a

300 million strong middle class earning up to US$ 5,000 per annum. According to the recent

National Readership Survey Platinum Study, a total of 828,000 people out of 859,000 in the

top six Indian cities namely Mumbai, Delhi, Bangalore, Chennai, Pune and Ahmedabad - own

branded watches. Rural consumers are waiting to be tapped since there is a huge potential

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as 600 million people do not wear watches. There are few popular brands which include

Titan, Timex, Citizen, Maxima, Rado, Swatch, Omega, HMT, Rolex, Zenith, Tanishq etc.

Qualitative Research with Potential Consumers

Consumer Preference1. Brand:

1. Many of the consumers were brand cautious and would not mind shelling out

extra for better product. According to them, premium product is what that is

the demand of the hour. Watch is a social status for people who like to wear

different watches for different occasions. Watch is considered to be

synonymous to a jewel item for some of the consumers and they would like it

to be unique.

2. Some of the consumers are not much concerned about brands but need it to

look and feel good to them. Also if they are looking for a sports brand,

generally consumers are not much brand conscious.

2. Price:

1. Consumers are happy to pay 15-20K for watches that will last up to 5 years

and are of premium quality.

2. There is another segment of consumers which are looking for cost efficient

and economically cheap products. Looks don’t matter much to them as they

only need to use it for the purpose of reading the time.

3. Visible Features

1. Majority of the consumers are willing to go for a rectangular dial instead of a

circular one.

2. Belt: This is one of the major concerns for consumers, with majority to opt for

metal as compared to leather. Metal belts are preferred because some of

them considered leather ones to wear out after a certain duration of

constant usage. Also, it becomes wet due to the sweat. For some consumers,

metal ones were classy, a signature for masculinity. Few of them preferred

the option of leather belt also because metal ones, according to them, hurt

sometimes as the hair on the hand get stuck in the metal belt and are ripped

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off when the watch is taken out. Women generally preferred leather belt

over metal.

3. Consumers also demanded for straps which should be detachable and

different colour option should be available so that consumers can change it

according to their requirement.

4. Big visible dial was another thing that men desired for. Women, however,

were pretty neutral for this part.

5. Some of the consumers were looking for customized design that should

include their name or a preferred logo. But since this was subjected to

increase in price of the watch, many didn’t prefer this option.

4. More features preferred by consumers

1. Alarm: Consumers were looking for a higher volume in alarm as the available

watches don’t have alarm with volume high enough to wake them up.

2. Date, Calendar: There are issues related to analog watches in which some of

the dates in a month are required to be setup manually.

3. Calculator

4. Water proof: This the most important thing which every consumer was

looking for in the product as usually other company products don’t meet

their water proof claims, which results in air bubbles in the watch after some

depth in water.

5. Some of the consumers would go for GPS feature in sports watch.

6. High Battery life

7. Comparatively light weight is preferred by customers.

8. Scratch proof: Consumers are also looking for gorilla glass in their watch to

ensure scratch proof usability.

9. Warranty

10. Service centre and spare parts should be readily available. Complementary

home service option for premium watches was also demanded.

11. Back light and radium

12. Reminders

13. Limited quantity of each model so that any model is not repeated and should

be exclusive to them only.

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14. Consumers are more inclined towards product which are endorsed by

celebrities: they take that as a token of trust for the brand.

15. Some of the consumers also like the smart watch concept. It allows them to

use app without using phone. But some also argued regarding its affordability

while some argued that the technological aspect is still not up to the mark.

Summarization of features consumers are expecting from various segments of watches.

Features Sports Premium Regular Smart

Alarm √ √ X √

Date √ √ √ √

Calendar √ X X √

Calculator X X X √

Water Proof √ √ √ √

GPS √ X X √

Back light √ √ X √

Warranty √ √ √ √

Complementary Service

X √ X X

Price √ √ √ √ √ √ √ √ √ √ √ √

Battery √ √ √ √ √ √ √ √ √ √ √ √ √ √ √*

*consumers are looking for long battery life in smart watches (at least 30 days)

More √ indicates more preference

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Brand co

nscious

Circular s

hape

Rectangular s

hape

Digital

Analog

Leath

er stra

p

Metal s

trap

SmartWatch

Wate

rpro

of

Warra

nty

Customiza

bility

0%

20%

40%

60%

80%

100%

120%

60%

35%

65%

35%

65%

40%

60%

20%

100% 100%

35%

Consumer preferences

The above response includes data from response of participants of FGD

Based on the exploratory research we can suggest the following two things.

Watch Type

Consumer Age

Regular Sport Premium Smart

0-24 X X X X24-45 √√√ √ √√√ X>45 X X X X

More √ indicates more preference.

From above two tables we can suggest ABC Watch and Co to produce watches of low

price for regular usage, high and premium end watches for customer segments with age 24-

45 as it consists of around 70-80% of the country’s population that can be targeted.

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Watch Type

Consumer Price Preference

Regular Sport Premium Smart

Low √√√ X X XMedium X √ X √

High X X √√√ X

FGD Details

Two Focus Group Discussion were conducted for exploratory research comprising of 20

members overall.

FGD 1:

Number of members: 10

Group members’ roles:

Focus group discussion conducting team and their rolesS.N

o

Name Role

1 Sameer Prashant

Kalamkar

Moderator

2 Goutham Mettu Moderator

3 R Anshul Agrawal Video Recording

4 Dheeraj Kumar

Mucharla

Video Recording

5 Rahul Yadav Moderator

FGD 2:

Number of members: 10

Group members’ roles:

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Focus group discussion conducting team and their roles

S.N

o

Name Role

1 Sameer Prashant

Kalamkar

Video Recording

2 Goutham Mettu Video Recording

3 R Anshul Agrawal Moderator

4 Dheeraj Kumar

Mucharla

Moderator

5 Rahul Yadav Video Recording

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