MSO Term Project on Segmentation,

Targeting and Positioning of Fastrack

Youth Watches
COMPANY: TITAN INDUSTRIES LTD.
BRAND: FASTRACK
PRODUCT: YOUTH WATCHES
Group 9 Section C
Poornima Sharma (1301-548)
Dhiraj Bonda (1301-067)
Oli Ghosh (1301-144)
Sounak Basu (1301-221)
Jai Shankar Rai (1301-348)
Praveen Shrivastava (1301-386)

INDIAN WRIST WATCH INDUSTRY

Estimated current market size - US$1 billion (53 million units)

Market growth - 14% in 2011; Key catalysts :

overall economic progress
expanding upper-middle class population
growth in Indias young earning population
rising consumerism
spread of modern retail formats

Organized sector is 40% - average growth rate 15-20% every year

Industry offers 2 categories of watches:

Primary is price range of Rs.500 to Rs.5000;

Secondary is price range of Rs.5000 to Rs.25000 (growing at 25% and above)

Worlds 5th largest watch manufacturer, Titan Industries Ltd. has over 65% market
share in the organized sector with four major watch brands: Titan, Sonata,

TITANS BRAND PORTFOLIO

Name of Brand

Market
Segment

Price Range (in

Rs.)

Target Group

Titan

Value Premium

1500 to 12000

Upper Middle
Class

Sonata

Mass market

600 to 1500

Lower Middle
Class

Fastrack

Youth

650 to 5000

Teenagers and
College
Students

Xylys

High-end
Premium

10000 to 21000

Upwardly Mobile
Professionals

There are various collections under each brand:

Sonata has Superfibre, Everyday, Wedding, Eva, Bracelet, Ocean Series, Yuva
Fashion, and Fashion Fibre.
Titan has Classique, Raga, Purple, Karishma, Octane, HTSE, Edge, Tycoon, Steel,
Regalia, Orion and Workwear.
Fastrack has Teevirus, Economy, Chronograph, Commando, Core, Sports, Denim,
Party, His & Her, Hip Hop, Speed Racer, Mean Machine, Beach and Explorer.
We can clearly observe how the various brands have distinct price and
demographic points. Sonata, Titan and Xylys are cleanly separated on Price range
Fastrack and Sonata have different demographic target groups based on Age and

The FASTRACK Brand

Fastrack started as a sub-brand of watch giant Titan Industries Ltd in 1998 targeted
at the early jobber (age group of 22 30 years).

In 2005, realizing that the youth market was large and further segmented, the

company's target became more focused towards college-going customers (age

group of 15 24 years) and Fastrack was spun off as a separate business unit of
Titan

Fastrack contributes 25% of Titan's turnover from the watches business and 35%
to its profits from the watches business. It has a CAGR of over 54% over the past
7 years

Only 27% of Indians own a watch hence a huge growth opportunity

Product Range includes Watches, Sunglasses, Wallets, Belts and Handbags

Accessory Brand

Fastrack has always been positioned as a youth brand. The brand personality stands
for urban, young, youthful, bold, move on with life, honest but very western

look

Occupation of the Illiterate

Chief Wage Earner

Unskilled
E2
Skilled workers
E2
Petty traders
E2
Shop owners
D
Businessmen Non
D
/ Industrialists 1 9
C
with
10 +
B1
Self employed
D
Clerical
D
Supervisory
D
Officers / Executives C
Junior
Officers / Executives B1
Senior

School
up to 4th /
literate
but
no
formal
schoolin
g
E2
E1
D
D
C
B2
B1
D
D
D
C

School SSC / HSC Some

Graduate
/ Graduate
/
th
5 to
college
Post Graduate Post Graduate
9th
but
not general
professional
graduate

E1
D
D
C
B2
B2
A2
D
D
C
C

D
C
C
B2
B1
B1
A2
B2
C
C
B2

D
C
C
B1
A2
A2
A1
B1
B2
B2
B1

D
B2
B2
A2
A2
A1
A1
A2
B1
B1
A2

D
B2
B2
A2
A1
A1
A1
A1
B1
A2
A2

B1

B1

B1

A2

A1

A1

Demographic Segmentation
Age-group wise and Income wise segregation.
The Urban SEC grid shows the socio-economic
groups of interest (SEC A and B).
65% of Indian population below the age of 30 yrs
is a substantial portion of wrist watch market.
According to Indian Census 2011, 19% of Indian
population is between the age group of 15-24
years.
Students are the largest segment of buyers
accounting for approximately 30% of the sales
The replacement rate of watch is 33.8 % (India
market demographics report)

Age wise break-up

less than 30 yrs

30 yrs to 45 yrs

more than 45 yrs

20%

15%
65%

Specific Target Customer

Urban SEC A and SEC B youth
between the age group of 15 25
years
Includes mainly Teenagers, College
students and youngsters less than 25
years in their first jobs
SEC A and SEC B comprise of 25% of
urban households

INCOME AND SPENDING

Percentage of youth (females) spending
more than Rs. 1000 on various activities in
a month

Percentage of youth (males) spending more

than Rs. 1000 on various activities in a month

45
40
35
30
25
20
15
10
5
0

45
40
35
30
25
20
15
10
5
0

14%

20%

% of
youth(females)
receiving Money
per Month

30%

19%

% of
youth(males)
receiving
Money per
Month
> Rs. 5000

> Rs. 5000

66%

< Rs. 3000

Rs. 3000 to
Rs. 5000

51%

< Rs. 3000

Rs. 3000 to
Rs. 5000

Relevant heads of target

market

Fashion orientation
In-sync with latest fashion trends for eg.
Teevirus collection has one-liners on
dials and graphic designs on straps

Affordability
Starting price range is low
(Rs.595/Rs.650)
More use of plastics to reduce cost

BEHAVIOURAL SEGMENTATION
Make a VALS (Values, Attitudes and Lifestyles) analysis of youth based on gender
To identify the behavior of the youth with reference to fashion, brand and shopping
activities. (Respondents age group 15 30 yrs)

Fashion Orientation
Male %

Brand Orientation

Female %

Male %

87

78

59

77

78

A person should
always update
himself/herself
about fashion

I always get
entertainment
from media

72

I always dress to
impress others

Shopping Orientation
Male %

Female %

66

74

69

74

74

68

I dont believe in I always indulge I spend money on

in shopping
tomorrow so that I
things that arent
live today
practical

Female %

72

66

69

69

75

67

Brands that I use

express my
personality

I am very crazy
about brands

I always buy
brands to satisfy
my peer group

Females are more fashion

conscious than Males
Females derive entertainment
from Media more than Males
Males have a more care-free
attitude than Females
Males are more brand conscious
than Females

Marketing Offer
Variety 394 models; each in a wide
range of colors
Convenience of purchase 135
dedicated retail stores, E-commerce
option, online store locators
(Facebook)
Bold and innovative style western
influence

MARKETING COMMUNICATIONS
As per MTV India survey 2012,
56% do consider societal
perceptions important, but are
willing to go against them to
do what they feel is right.
Fastrack advertising idea: the
brand aligns with the thought of
breaking free from societal
norms of morality.
E.g.: Come out of Closet..
Move on dispels the taboo of
homosexuality
Focusing on the live in an
instant belief of youth, which
believes in seeking and
enjoying variety
Fastrack endorses the variety
seeking attitude through its how
many do you have? campaign

Seasonality: Fastrack brand is

promoted in the months of June
-August when schools and
colleges re-open. Promotional
activities to attract high-school
students and college-goers

As per a TCS survey 2012-13 of

the post-millenial generation,
the preference for Facebook is
equally high among
respondents in both metros
(92%) and mini metros (91%)

Store locator feature shared

via Facebook for easy
accessibility of stores for
customers.

Association
Value for Money
Stand out from the crowd
Experiment

Positioning Statement
Fastrack is the most Stylish among all
youth fashion accessories because of
its innovative designs.

LEVELS OF COMPETITION
Level of
Competition

Definition

Competing
Brand/Company

Needs Satisfied

Timex, Swatch, Casio

Trendy
Fashionable
Price sensitive

Tag Heuer, Citizen,

Omega, Tissot, Citizen,
Espirit

Utility
Features
Style

Youth Watches

Product
Form

Product
Category

Age group 15 30
yrs
All Wrist Watches

Personal
Accessories

Generic
like jewellery, bags,
wallets, eyewear

Budget

Clothing and
Accessories
urban middle class
family budget

Tanishq (jewellery),
Tommy Hilfiger
(watches), Mango
(sunglasses), Provogue
(bags), UCB (wrist
bands)
Nike (shoes), Apple
(Ipod Shuffle),
Clothing brands

Brand Association
for Style

Appearance &
Looks

FASTRACKS COMPETITORS
TIMEX

Global brand known to

manufacture watches at lowest
cost

Brand associated with Youth and

Technology and caters to the Age
group of 25 35 years of SEC A
and B

Now targeting the Fashionconscious segment with the

launch of youth brand Helix for the
Age group of 18 25 years

Attempt to position itself in the

Fastrack
Differentiation
Youth Fashion
category :

CASIO

Japanese company has

expertise in digital watch
business and market leader in
Calculators (90% market share)

Low visibility through

communication

SWATCH

First mover advantage in transforming

Watches from timekeeping to fashion
accessory

Bold and innovative marketing

communication campaigns lead to
stronger connect with the youth

High on technology, accuracy

and prestige value (Swiss-make)
Has identified a lucrative segment
in the Age group of 15 34 years
Positioning focuses on the
upwardly mobile young
professionals
Creativity, fashion and innovation
for customers with an active

Market survey on Consumer Perception of Fastrack with

respect to its Competitors in the Product form level : Timex,
Casio and Swatch
More
Fashionable
4

Respondents
Gender
Males 68%
Females 32%

3.8

3.6

Respondents Age
15-18 yrs : 2%
19 22 yrs : 22%
23 26 yrs : 72%
27 30 yrs : 4%

3.4
Swatch (2.34,
3.2)

3.2

Less Affordable
2

2.2

Fastrack (3.47,
3.3)
More Affordable

3
2.4

2.6

2.8

3
2.8
2.6

Willing to spend on watches

Less than Rs.1000 : 7%
Rs.1000 to Rs.3000 : 34%
Rs.3000 to Rs.5000 : 19%
Rs.5000 to Rs.10000 : 40%

2.4
2.2
2
Less

3.2
3.4
Casio (3.18,
2.77)

3.6

3.8

Timex (3.35, 2.6)

INFERENCES FROM PERCEPTUAL MAP

The two major Attributes : Affordable and Fashionable were
considered as per the results of the online survey conducted with 83
respondents. From the Perceptual Map obtained we can infer that:
Casio and Timex are perceived to be fairly similar with reference to the
attributes considered
Fastrack and Timex are considered to be in the Mid-Price segment while
Casio loses out marginally and Swatch lies in the High-end segment
Swatch and Fastrack have a wide gap in their price segments, which
works to the favor of Fastrack because Swatch is almost equally
Fashionable
94% of the respondents were between 19 to 26 years of age and the
target group of Fastrack is 18 25 years of age
60% of the respondents would spend less than Rs.5000 on a watch and
the Fastrack product range varies from Rs.500 to Rs.5000
Fastrack is perceived by the 83 respondents to be more Affordable and
Fashionable than its competitors which aligns with the Fastrack
positioning of affordable fashion for the youth

REFERENCES
http://www.thehindubusinessline.com/marketing/titan-on-fastrack-to-targetyouth/article2913702.ece
http://maximspeak.blogspot.in/2009/10/brand-track-fastrack.html
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http://blogs.hbr.org/2011/10/three-lessons-from-titans-inno/
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