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Pricing decisions have strategic importance in any enterprise. Pricing governs the very feasibility of any marketing programme because it is the only element in a marketing mix accounting for demand and sales revenue. Price is also one of the most flexible elements: unlike products and channel commitments. At times price competition is the number one problem faced by the companies. Pricing today is a creative marketing exercise done by the marketing manager. Pricing is taking a decision about the price to be quoted in the market. It is the marketing manger who decides whether he can sell his product at a high price or that he should quote a price that is 5% lower than that of the main competitor. He may even have good reasons to sell below cost price and accept a loss. Today in the watch industry prices prevailing are pretty much the same. Thus the pricing strategy is a part of the market entry strategy and should not be taken too lightly. Today Swatch is renowned name in the international as well as the Indian market. Thus today this brand has a long tradition and considerable expertise in manufacturing. With the growing demand of its watches it has decided to launch its new collection which is known as the carbon collection the price of which is Rs.50,000. As it is a fact that toady the watch market is a competitive Market because companies compete on quality and price. Keeping these factors in mind toady Swatch has not only focused on its quality but has paid considerably equal attention on its pricing strategies. Thus due to the growing competition Swatch has come with new marketing as well as pricing tactics to stay in market. Therefore the pricing strategies adopted here at Swatch are profit oriented. Swatch has decided to introduce its new collection at an economically and reasonably affordable price. This is a part of its penetration strategy. With this, after having captured part of the market it will raise its price to a more profitable level. This strategy is in combination with the turnover oriented strategy.

In which Swatch has already set the turnover it has anticipated to achieve from its carbon collection. This price is set with the objective to realize the turnover objective. Swatch has also focused on the image oriented strategy for its latest collection-carbon collection. This is to target the market with a good image and impression. Swatch to launch its new collection in the market has set high prices to skim the revenues. As it is a luxurious product it has set high prices in the beginning so that it creates a impact and goodwill in the start. But later as competition would start increasing the prices would start reducing. But because of the penetration strategy it would make high profits in the starting. Thus we can say that Swatch has favored setting high prices to skim the market. Swatchs carbon collection pricing exemplifies the integration of pricing with the overall marketing strategy. Thus Rs.50,000 for the basic luxurious watches is a simple price, a clean price. As Price is a mirror for the other attributes Swatch tries to communicate. Swatch very well knows how the price sensitivity affects the demand the products thus has set its price accordingly. Usually each price leads to a different level on demand and therefore has a different impact on a companys marketing objectives. In the normal case, demand and price is inversely related: the higher the price, the lower the demand. But in the case of the luxurious goods the demand curve slopes upward. This is known to Swatch to also as the target consumers it is targeting are the ones for whom higher price signifies better product. This is because there has been a perceptible shift in consumer attitudes. Today people are actually willing to buy more expensive branded timepieces to flaunt them. Thus today watches are all about style and statement. With keeping all these factors in mind Swatch has therefore set a perfect pricing strategy that is set with a overall view of all marketing issues that influences their pricing decisions.


The watch-maker that needs no introduction SWATCH, with its aggressive promotion and strategy has tapped most of the upper-strata of the society. Its immortal marketing strategy has redefined the meaning of marketing and promotion. It manufactures a variety of watches, be it in any field SPORTS, LEISURE, TRAVEL, BUSINESS, PARTY or CASUAL wear. It follows a simple idiom associate the product to that person who is a master in the field for which the product is meant for. It has many brand ambassadors promoting the brand. SWATCH has endorsed them according to the type of watch it manufactures. Some of its brand ambassadors are:Sushmita Sen Ashwariya Rai Rahul Dravid Ajay Rathore The above listed people are a legend in their respective fields. They have a huge amount of fan following. The people always dream to live their lifestyles. The brand ambassadors usually make their public appearances with the Endorsed Product. In this way, the people come to know about the preferential choices of their favorite stars. Thus, people start buying SWATCH watches and it in turn boosts the sales of the watch. It is a very aggressive marketing strategy followed by SWATCH, because the brand ambassadors charge a handsome amount of money from them. But at SWATCH, it is not a matter of concern because they know that the consequences of the investment will be reflected in the companys balance sheet. Having its presence felt in so many world renowned sporting events and playing such major roles, the world can forget anything but SWATCH. This is another way of promoting its product in the international market. It also sponsors international business events, seminars, etc. This enables SWATCH to tap the ultra-rich market. In this way, it can make its presence felt in the global commercial market.

Another major marketing strategy SWATCH has adopted is the creation of tag lines or punch lines. It gives a feeling of strength and energy to the potential buyer. Tagline distinguishes the product from its other counterparts and gives an edge over competitors. It makes the buyer feel that the product will live up to his or her expectations. Some of the taglines created by SWATCH are:

What are you made of? Success, Its a Mind Game. Dont Crack Under Pressure. Watches tell more than time

As far as distribution is concerned, SWATCH has the most wide spread market amongst all international watch makers. SWATCH has more than 40 authorized retail outlets in India itself, among which 6 are in Mumbai. It has its presence felt in almost each and every part of the globe. SWATCH has been able to do this because of its marketing strategy. The whole world is aware of the brand. Hence, they can rest assured that the product will be a success. Some of the countries where it has its presence felt are: U.K China India U.S.A.

Product Positioning refers to understanding the needs, tastes and preferences of the consumers and manufacturing it and then launching it in the market. The difficult task is not to manufacture the watch, but to understand the demands and the expectation of the consumers. SWATCH has succeeded in doing the right interpretation about the consumer needs. It has created watches for sports, business, leisure, travel, party, etc. It has rightly understood and kept the needs and style in mind while designing the watches. The following are some of the watches SWATCH has created according to the area it has targeted:

1. Aqua racer
The Aqua racer concept is founded on providing the accuracy that all water sports demand. Based on the design and features of the timeless 2000 series, Swatchs watchmakers and designers have created an original, prestigious sports watch that is water- resistant to 300 meters. The watch is specially made for the water-sports, sky-diving, etc. Its luminous marker enables the person to view the watch at night, when he is in the water. It is equipped with a safety device which warns the person about the 300 meters mark.

2. Link
With its unique design, the Link series has represented a perfect balance of sport and prestige since 1999. Its architecture reflects the power and beauty of steel through the play of contrasts and its refined lines. The bracelet, an emblem of SWATCH, is a real achievement and has set a standard for fluidity, comfort and ergonomic design: it is styled for timeless elegance. In 2005, SWATCH presented the new Link collection. A more contemporary, sober and yet sophisticated design. The sports

inspiration is still present, in total harmony with a rare level of elegance.

3. Diamonds Fiction
The rich beauties have another thing to flaunt about Diamonds Fiction Edition from SWATCH. This watch has been made by keeping in mind the ultra-rich women. This watch may not be made by keeping the needs of the people in mind, but the desire is surely kept in mind. The astonishing alliance of high-end jewellery and avant-garde technology integrated into an audacious version of a new timepiece: the first time that diamonds give time. The Diamond Fiction is an exceptional watch, both glamorous and avant-garde. An exceptional innovation, Swatchs latest haute creation does not look like a watch, but rather a piece of haute jewellery; it is precious and pure, and loaded with sexy space-age technology, designed exclusively for the fashion-forward female. This luxury watch set with 879 Top Wesselton (5.8 carats) VS/SI (1.1 mm), full-cut, diamonds hides a surprising innovation: the digital display through the diamonds. 54 of the 879 diamonds have been cut in a revolutionary way to provide a very high-definition concentration of the light emitted by 54 LEDs that display the time in glowing red. The red is echoed in the satin strap that gives a warm and silky look contrasting with the brilliance of the multiple diamonds.

SERVICE CENTRES As a Titan's customer, you get top billing. Titan does not consider Service as an obligation but instead views as a interpretive mechanism to satisfy the needs of the customer, build the relationship & create a positive association for the brand. Our after sales service network extends worldwide and more than 320 towns in India. What to expect at our Service Centers: Quick Response Quick & Quality repairs 6 months repair guarantee

Signet points on service billing at Watch Care Centers. Titan gift voucher acceptance at Watch Care Centers. Credit Card acceptance.

Provision for standby Watch. Wide range of watch accessories. Conversion of old watches to new on selected design / models. Home delivery of watches at nominal cost at selected outlets. Repair of all Titan watches.

Fully automated billing at most Service Centers. Dedicated & Company trained Customer Care Hostess and Service Technicians.

Customer friendly ambience.

THE MARKET The Asia Pacific region is emerging as one of the strongest markets for luxury goods/watches globally, with the highest sales growth figures. India is one of the most promising markets in the Asia Pacific region for luxury watch brands, keeping in mind the Indian consumer's ever increasing purchasing power and exposure to luxury brands and style trends through increased exposure to international media. The purchasing power in the Indian market can be judged from the fact that 18 per cent of the country's one billion population falls in the SEC A category and this figure forms a huge potential market for luxury watch brands. This premise is reinforced by the fact that most luxury watches brands have a presence in the Indian market and are expanding their retail network. Since the upwardly mobile consumer in India is well traveled, they are in tune with the latest style trends. Keeping this in mind, most luxury watch brands concurrently launch their latest models in the Indian market as per the international launch dates. The potential for the segment is about Rs 1,000 crore. Rising family incomes, greater exposure and more and more fashion conscious youth are aiding the category in growing further. In fact, while the total watch market is estimated to be growing at about eight per cent, the luxury watches segment is growing at 20 per cent per annum. If you were to include the purchases of luxury watches made by Indians when they go abroad, the segment could be to the tune of about Rs. 500 crore. Not surprisingly, a major task for a brand striving to make a base here is to convert the overseas purchases. Even as the total duties on imported luxury watches in India are in the range of 60-85 per cent, all the brands are absorbing the duty element in order to price the watches at par with the international markets. And companies are saying that the moolah is slowly but surely trickling in despite the high prices.

MARKETING PLANS TO LAUNCH SWATCH Luxury watch brand Swatch plans to expand its reach in India by introducing the Carbon Collection with four exclusive stores in the major metros by the end of 2006. The luxury watch market in India is growing at a rate of 35 per cent and is estimated to have a potential of about Rs. 300 crore. The potential of the luxury watch market is benchmarked against two key indicators - the rising income levels and increased purchase of cars worth over Rs 5 lakh. The fashion trends are minimalist with a strong leaning towards luxury brands. The other reason for the growth of this segment was an increase in workforce and awareness about branded products. Swatch has introduced a ladies watch that takes the same name and design inspiration as the collection. Scratch-resistant sapphire crystal. Stainless steel case. White mother-of-pearl dial. Quartz precision movement with rhodium-plated finish. This collection is priced at Rs. 50,000 for mens collection and the womens collection at Rs.1.3 lakh. Due to the increase in international travel, the Indian customer is becoming more aware of what is available globally and is willing to make more purchases in India, not only in terms of watches but many other products as well. Today the Indian consumer is conversant with most Swiss luxury brands, and the market for high-end watches is definitely increasing in India. The corporate and celebrity segment spend on acquiring expensive watches as these watches are a symbol of their lifestyles and they are an extension of their personalities. It is not the price tag that is important but it is the values that are communicated by the brand. Swatch plans to capture this market. Swatch has taken to actively tapping the corporate market with annual promotions through outlets. Swatch is set to introduce The Carbon Collection in 2004. This Diwali Swatch received corporate orders for considerable volumes from the likes of Sony Television and Samsung. Swatch has forecasted an annual sale of 7,500 units for The Carbon Collection when it launches and doesnt reckon its optimism is misplaced. The international premium watches have only recently come to town and in the broader context, the market size is still a drop in the ocean.

After Swatch has consolidated their distribution in the major metros it will look at smaller cities and towns for growth. There is a market for luxury watches in belts of certain States such as Punjab and Gujarat, primarily due to higher disposable incomes as well as a more consumerist society. Additionally, many of these areas also have a large number of non-resident Indians visiting their hometowns, resulting in brand recognition of foreign brands. Swatch is planning to launch its collection only in major cities such as Delhi, Mumbai, Kolkata, Chennai and Bangalore where the high class society is prevalent. There is awareness about our brand in India. With our expansion in place, our customers would not require to travel to bigger cities to purchase the watch. Watches in this collection are priced in the range of Rs 40,000-1,00,000.


Market segmentation is the process of dividing the total heterogeneous market for goods or a service into several segments, each of which tends to be homogeneous in all significant aspects. Classical, understated and elegant. Thats what young executives and the higher class as a consumer group look out for and we at Swatch provide just that. The segment of young executives and the upper class completely dominate the market. This customer segment is characterized by sophistication and tastes, which run to understated, classical and elegant looks. The critical needs of this dominating customer segment are innovative products, international styling conducive to formal/day wear i.e. stylish by not flashy, multifunctional but not complicated and customer friendly prices. And the business sense which drives out attention on this segment is that young executives in the years to come will become one of the fastest growing segments due to a large number of non-owners and replacers which mean owners of a single watch for more than three years. This segmentation clearly shows that Swatch has adapted the demographic segmentation for its Carbon Collection. This is because as per the demographic segmentation it has to target the age group which is 18 and above. Swatch has also followed the income segmentation as it has targeted that section of the society whose income level is moderate-high. This is a special marketing initiative taken where the designs are influenced by the consumers need for watches that go well with the trend of dressing formally or informally at the workplace or at a social gathering. These watches have new looks in the in-vogue, all steel look and multi-dial models in the bi-color and all gold. Thus, it would be appropriate to say that the market segmentation adopted by Swatch is a psychographic segment as it is based on the active lifestyle of upper-middle and then the upper class of the society. Our strategy is to project these watches as apart of ones personality and not just as a functional product. In fact, adding value to ones personality


appears to be the main factor behind most purchases affected in this segment. This group comprises largely of rich and well-to-do owners and replacers. The purchase must add value to their personality and reflect their taste. Working executives, corporate and other high class people who are also clued on to emerging trends are very selective about products. A wrist watch is a product that usually makes an impression on other people. Therefore, the factors that influence the purchase are brand, name, style, variety and price. And our Carbon Collection is a combination of all!! Thus, in this way by considering all the market factors Swatch has selected an appropriate market segment for its latest collection- The Carbon Collection.


Swatch is introducing a new collection of watches known as the Carbon Collection. Swatch's state-of-the-art watch and jewellery manufacturing plants are located at Khapoli in the state of Maharashtra. Spread over 55,000 square meters of built-up space, Swatch employs about 3000 highly skilled personnel. This watch manufacturing facility was set up in 2000, with technical knowhow from Europe and Japan. Over the years, the Company has established highly integrated manufacturing facilities. The Company manufacturers watch movements, watchcases in steel and brass, and bracelets in solid as well as sheet steel. The manufacturing processes include micro precision operations (manufacturing of components and sub assemblies) Hot & cold forging, stamping, injection molding and tool making. The product development cycle is facilitated by state-of -the-art CAD/CAM technology that enables seamless integration from aesthetic styling and 3D and solid modeling to engineering design, tool design, tool making and prototype making. Our R&D initiatives, which have been recognized by the DSIR, have earned several accolades for its design efforts. This includes a national award from the DSIR from the Design and Development of a Slim Movement and more recently awards in recognition of Excellence in Electronics for two successive years from the Ministry of Information Technology. The Company has been recently short-listed by CSIR for funding a key R&D project and has been certified under the ISO 9001 Quality System Standards. In addition, Swatch also has manufacturing facilities in Dehradun (Northern India) and in Goa. Swatch is introducing a new collection known as the CARBON COLLECTION. The watches in this collection have the following features:

Has a self-winding chronographic watch with column wheel mechanism and coaxial escapement for greater precision stability and durability. It has a spring balance with date, hour, minute and continuous small hand and power reserve is 5 hours.


It is domed with light weight titanium body which is the strongest material in the world.

Since the body is made up of titanium, it is shock proof.

The Watches are water resistant up to 500 meters.

Has got an altimeter

The case is made of titanium with a full black dial radius. Its water resistance is down to 500 meters. Built in stop watch, world time of major cities. The watch has got an Italian leather belt which doesnt get spoilt easily.

It has got a Scratch Proof body with a saffire glass.

The unique feature of the watch is that it has got a vibration mode alarm.


The watch has got a Titanium plated finish Its power hour reserve for 6 hours. Crystal with swatch resistance. Sapphire crystals with black mother of pear dial.

Studded with diamonds of 0.25 cents, i.e., there are 56 diamonds of 0.25 cents each. This is because we are targeting the higher society who wants something distinct and unique from which is available in the market. Moreover, diamond, crystal and sapphire together look very attractive and they make a fashion statement. As said diamonds are girls best friends. Therefore,


keeping this in mind we have used 56 diamonds of 0.25 cents each. We have chosen a light weight Titanium body as it is the strongest material in the world and does not rust, it is sturdy and it cannot be destroyed easily. It is light in weight and therefore can be easily molded and shaped. Italian Leather belt on the other hand has good molding properties and is expensive and gives it a very appreciative look. We have basically targeted the upper society by providing them with a hightant brand. The upper class mainly wants a product which has looks and which can be associated with luxury as they dont care about money because for them Quality matters the most. Therefore, considering all these factors and emphasizing on the fact that there are less customers and therefore less profit we have priced the watch at 1.3 lakhs.



Consumer behavior is the all psychological, social and physical behavior of potential customers as they become aware of, evaluate, purchase, consume and tell others about products and services. The features of consumer behavior are given below: It involves both individual processes and group processes. Consumer behavior is reflected from awareness right through postpurchase evaluation indicating satisfaction or non-satisfaction from purchases. Buyer behavior includes communication, purchasing and consumption behavior. Consumer behavior is basically social in nature. Buyer behavior includes both consumer and business buyer behavior. Consumer behavior is very heartening because consumers today are going for quality and is ready to shell out money if the product is of a high quality, durability, performance and last but not the least but how elegant it looks!! Today when fancy watches are sold in the entire world market at very cheap prices but still the quality users, who may be small in number but would any day go for a quality product buying it once in a life time than buying a cheaper variety ten times. These buyers mainly belong to the elite category which includes the upper class, corporates and the young executives but you would still find people who may be dont belong to a richer class but may save money to buy a branded product which of course is highly priced. But then this watch comes out with a tag which assures you of quality and class. Such watches definitely become a status symbol for a wealthy class who believe in showcasing their wealth. But then again there is a section of people who really believe in quality and craftsmanship. At our part we cater the exclusive class who can afford a luxury watch like our Carbon Collection. We dont compromise on any factor.



Marketing is a universally accepted activity. It has multiple functions and unlimited scope. It is said that all human being market some of their skill to find means of livelihood. The main aim of marketing is to make selling superfluous. The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself ideally. Today marketing considerations are most crucial in business planning and decision making. In todays changing world marketing is the heart beat of many operations. It must be considered a principal reason for corporate existence. Markets are ever growing and rapidly changing. More and more money is needed to develop and support marketing programmes. At present, there is a growing role of marketing among business promoters and executives. Marketing today is a complex complicated area for management. It has become a vital business philosophy, the value of which cannot be ignored. Dynamic changes are likely to take place in future with changes in attitudes and values of the society. The Concept of marketing underwent changes due to innovation in productions, business, marketing, etc... Well they are still around today, but they have a significantly different value. They once were a teenage craze. A mass commodity that was not too pricy and could be found in every location, from discount stores, to department stores, to specialty stores. Consumers bought them in droves and wore not one, but two, three, or four, infact they had one to match every outfit. They were mass produced commodities and the Swiss made a mint off them. They did not represent a time or a place, as of yet. They were simply the new watch obsession. Though, somewhere along this downward plummet from the heights of popularity to depths of disregard, Swatches outlasted their era and moved from non-art, inauthentic, to the authentic culture. Swatch, Inc. did motivated this move through their post-'90s marketing strategies and their later counter-strategies, as well as those of the collectors, to encourage the new Swatch culture of collection, not fashion, in the Twentieth Century.

The Swatch was the savior of the Swiss watch industry. The mid 1980s were grim years for the Swiss. The Japanese had captured the market with their introduction of the digital 'Delirium,' a watch with the worlds thinnest wrist band and the least number of components. In response to the crisis the Swiss founded the Corporation for Microelectronics and Watch making Industries, SMH. And what was the result? You guessed it, the Swatch. It was a high quality, slim, plastic watch, with only 51 components at a low price. As time past and technology increased the difference in accuracy and size between bottom line watches and top line watches decreased to the point where the value in the difference no longer mattered for the consumer. None the less, Swiss watch manufactures still tried to prevent the news from coming out. They, however, were unsuccessful, and Japanese digital watch manufacturers cleaned up at the marketplace, meaning a wave good bye to the Swiss. Then came the Swatch, whoosh, and the market turned around. The digital style was out, at least for a while. Now it was time for the Swiss to shine again. They started out as simple and plain "color-block" watches and then gradually went wild in order to fully encapsulate the market. It was here, these marketing strategies employed, that guaranteed the success of the Swatch well into the future. The Swatch was no longer at the same level as the Japanese digital watch. It had moved beyond to become "rare period pieces and thus collectibles. Today, swatches are not available at every store and are quite pricy. In fact you have to search to find them, especially if you have a particular one in mind. This is due to more than one factor including: the artistic design of the Swatch watches, new Innovations, marketing strategies, and strategic distributions systems set up by Swatch Inc.