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BY
J.SAINATH REDDY
D.MADHU
S.RAMESH
HIMAN MOHAPATRA
S.ANAND SHARIFF
EXECUTIVE SUMMARY
VISION
Our vision for the future goes way beyond timekeeping. We will
delight and surprise our customers through innovation in design,
technology and application of our brands and deliver a superior
customer experience. This will lead to enhanced values for our
shareholders and increase returns on investments and assets.
VALUES
Design, Durability and Performance
OBJECTIVE
Though TIMEX is one of the leading watch makers in the world
with wide range of products, it has failed to capture majority market
share in India. Our objective is to study the reason behind this.
4-P ANALYSIS
PRODUCTS
Timex has wide range of products for different segments. It owns brands
like HELIX, SALVATORE FERRAGAMO, VERSACE, TARUN TAHILIANI, and
MARC ECKO.
Apart from these sub-brands Timex portfolio includes watch ranges like
EXPEDITION, WEEKENDER, INTELLIGENT QUARTZ, EMPERA and CLASSICS.
These ranges have watches for both men and women.
EMPERA and CLASSICS have watches for a pair in addition to men and
women. Timex in India has not launched many products for kids segment.
Timex tied up with designer Tarun Tahiliani and released jeweled watches
in two ranges: bridal and ready to wear.
Helix targets the youth segment.
Versace, Salvatore Ferragamo and Marc Ecko are targeted towards lifestyle
and upper premium segments.
PRICE
Timex products are initially priced in such a way that it attracted low to
mid- level segments initially. With diversification in its segmentation the
company launched products with different prices for different segments.
Timex presently markets watches in a wide price range starting at Rs.1500.
Most of the watches are in 2000 to 5000 rupees category with products like
Expedition, Classics, Weekender, and Intelligent quartz.
Versace and Salvatore ferragamo are for ultra-premium segment priced at
more than one lakh.
PLACE
Timex during its initial years concentrated more on semi urban and rural
areas but with changing trend in consumer tastes it started concentrating
more on urban areas where its target groups mainly youth are located.
Timex apart from selling through normal retail stores it also followed
shop in shop model and opened stores in malls where youth presence is
maximum. Timex also opened its exclusive stores by name Timex world and
Time factory in all major cities in the country to market its products.
PROMOTIONS
Timex even from its initial years did less promotions. Advertising had been
very less for Timex. Timex for a brief period endorsed Brett lee as
companys ambassador, but after that it did not endorse celebrities for
promotion. Timex was one of sponsors of ICC World cup 2011. Timexs
biggest mistake is not having an Indian celebrity to promote its brand. Very
less advertising through ads, also Timex generally doesnt give many
discount offers on occasions. Lack of effective promotions is one of the
biggest drawbacks of Timex.
COMPETITVE ANALYSIS
For every 10 watches sold per day in an outlet, Timex share was only
1-3 watches, whereas Titan share is 5-6.
Most of the sales for Timex are in price range of 1000-5000. In
this price range it has tough competition with its competitor Titan.
In India youth are the majority segment for watches, here Timex
failed to capture that segment effectively with its sub-brand Helix,
whereas Titans FastTrack is doing exceptionally well.
PRODUCT:
When comparing with other brands Timex has a less number of
product variety and designs. For example: Titan and Timex both have
sub-brands for Youth segment, namely Fast Track and Helix
respectively. The number of sales happening in Helix is far lesser when
compared with Fast track due to less number of models & designs
available. In another instance Titan has a separate sub-brand for
Women & Kids segment, Raga & Zoop; whereas Timex doesnt have
any such provision. No special collections have been launched by
Timex on any occasions.
PROMOTION:
There is no effective promotion taking place for Timex when
compared with its main competitor Titan. Titan covers almost all kinds
of media for promoting its products whereas Timex has failed in
reaching all segments of customer. Shop-in-shop stores Timex outlets
are smaller in size and has less products when compared to other
brands. No special discounts where given from the company on
different occasions.
SEGMENTATION TARGETING POSTIONING
SEGMENTATION
Timex initially used income segmentation and concentrated more on low to
mid-level income groups with products which are priced at Rs.1000 and
below. But consumer behavior was changing. Watches are considered as
fashion accessories rather than just timekeeping machines. So company
had to diversify their segments more specifically suiting the needs of
different consumers. So Timex had to intensify its segmentation strategy.
Timex criteria of segmentation
1) Demographic segmentation
Income
Gender
Social class
2) Psychographic segmentation
a) Lifestyle
Luxury
Mid premium
Mass
b) Personality
Luxury
Sports and casual
Fashion
Economy
3) Behavioral segmentation
a) Occasions
Formal
Fashion
TARGETING
Timex initially targeted mid income groups but with changing consumer
behavior their product portfolio had increased. So they revamped their
targeting strategies too.
POSITIONING
Timex initially positioned itself as a value for money brand with
technologically advanced features and sporty look. But in recent times it
has failed to position itself successfully in India. With changing taglines it
failed in communicating its values to the consumer. Its initial tagline was
Technology that keeps you ticking, then they changed tagline to Time
on your side and now the tagline is what next. It failed itself to
successfully position itself in mind of the consumer.
QUESTIONNAIRE TO RETAILERS
1) In what price range watches are sold the most?
2) How many watches are sold per day?
3) How many of those sold are Timex watches?
4) Which brand of Timex is sold the most?
5) Watches in which segment are sold most?
6) How often are discounts given on Timex?
RECOMMENDATIONS:
1. Increasing the number of models and designs available in all
price ranges.
2. Creating number models especially for women and youth.
3. Capturing youth segment with attractive offers and promotions.
4. Setting up exclusive stores for youth segment( like Titans
FastTrack stores)
5. Effective promotions through advertisements and other media.
Endorsing an Indian Brand Ambassador to promote the brand.
6. Effective store management in shop-in-shop outlets.