MARKET WATCHES.

SEGMENTATION

OF

WRIST

A report submitted to IIMT, Greater NOIDA as per a fulfillment of full time Post Graduate Diploma in Business Management

SUBMITTED TO:
Dr. D. K. Garg Chairman, Ishan Institute of Management And Technology

SUBMITTED BY:
Hareram Kumar ENR- 15033 15th Batch PGDBM

ISHAN INSTITUTE OF MANAGEMENT AND TECHNOLOGY 2 A, KNOWLEDGE PARK 1, GREATER NOIDA Website: www.ishanfamily.com, E-mail: ishan_suggestions@yahoo.com

PREFACE
In the Watch industry, marketing and selling are playing a big role, sales have big concern with the profit but marketing of any product in sector is concern with the need, want, and recruitment of customer with the organization profitability. In telecom industry competition is very tough and change is very fast. So marketing strategy play a very vital role in this industry My final project is all about the Market segmentation of wrist watches. It means that I have to work on the strategy which the company is adopting in marketing and selling of its products and services for expanding its business and competing with the competitors. In this project, I supposed to know the selling and marketing strategies of the MTNL product and services. What are the marketing steps being taken by the agencies. The queries, which are asked by the client, should be solved by the discussion with the company guide and marketing research.

CERTIFICATE
I have great pleasure in certifying that the final project on Market Segmentation of wrist watches submitted by Shri HARERAM KUMAR of Ishan Institute of Management and Technology, Greater Noida in partial fulfillment of the requirement for the award of degree of P.G. Diploma in Management has carried out under my

supervision and guidance. This work has not been submitted anywhere else for any other degree or diploma.

Date: (Ajay kumar) Guide of project

ACKNOWLEDGEMENT
Practical study is essential for any Professional curriculum otherwise it will merely leap in dark. Apart from classroom study it is necessary to know about the day to day working of the organization. To fulfill the above objective every student has to undergo practical study before he/she can consider himself/herself fully qualified as a Potential Manager. During the course of my training, I learn that there is big difference between class room study and practical life. I got opportunity to undergo training under Mr. Ajay Kumar I express my thanks to my company guide Mr.Ajay Kumar ( Managing Director Gagdamba Watch Tugalpur Gr.Noida) for accepting me as a Summer Trainee in the organization and for his resolute guidance, meticulous supervision and constant encouragement during training till now. I would also like to wish a special thanks to our Dr. D.K. Garg (Chairman) and Pro. M.K. Verma (Dean) without whose guidance this project would have been a distant dream.

(HARERAM KUMAR)

DECLARATION
The final project on Market Segmentation of Wrist Watches. Under the guidance of Mr. Ajay Kumar Gr. Noida. This is the original work done by me. This is the property of the institute and use of this report without prior permission of the institute will be considered illegal and actionable.

Date:

Name: HARERAM KUMAR Signature:

Place:

ENR. No: 15033

TABLE OF CONTENTS
Chapter 1 Executive summary Literature Review Objective of the study Chapter 2 Introduction a)History of wrist watches b) Early growth c) Recent Development Chapter 3 a) b) Wrist watch business in India Recent step taken in India

Chapter 4 Market segmentation Mens wrist watch Womens wrist watch

Kids wrist watch Watches according to the ceremony,marriage purpose,gifts Chapter -5 Market strategy of different watch company Titan Hmt Maxima Timex Rado Swiss

Chapter-6 Organised player Titan Maxima Hmt Timex Citizen Casio Seiko
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Chapter -7 Product planning Expansion of watches Chapter-8 How company generate revenue by wrist watches. Chapter -9 My experience. Chapter -10 Consumer behavior of different segment towards wrist watches. A market survey. Questionnaire Chapter-11 Conclusion Finding Suggestion Bibliography

EXECUTIVE SUMMARY
This report introduces a brief study of marketing segmentation of different wrist watches for its customers. The study report will provide an opportunity to know customers psychographic needs, it may provide an opportunity to the Wrist watch to frame a good future plan to satisfy maximum needs, taste and preferences of the customers and established its guiding role in the market and in marketing plan in particular area. An Analysis report provides detailed information about using the opportunities in market competition and thus prepares itself to meet the market challenge by making adjustment in its new strategy and promotions activities. Gone are the days when people were very unsure about the future and hardly cared about it in terms of technological developments. But the situation has changed now. In the new millennium, people often feel a growing uneasiness about the future. Certainly many countries today are suffering from chronic high unemployment, a persistent deficit of economy and gradual deterioration of purchasing power. Nations are passing through a phase of rapid transformation. Forces are mostly responsible for these types of drastic changes; they are explosive growth of trade and international competition. This new era has witnessed remarkable advancement in the availability of information and a number of large companies operations in such market where the principal of natural selection lead to survival of the fittest. Market provides a key to gain actual success only to those companies which match best to the current environment i.e. imperative which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on the availability of good quality 9

products and excellent services, which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year.

LITERATURE REVIEW
In this report I have described the facts and theories which were seen by me in field. I have described the market mix in this report and then I have applied the marketing mix to the MTNLs products. I have given full description about the marketing strategy, how it works and how it plays a vital role in selling the product. I have described about the advertisement and how it play a very important role in selling the product. I have also described promotion and various tools of promotion. I have described various types of pricing strategies used by the different companies and the strategy used by the MTNL for selling its products. I have given full description of the segmentation, what is the role of segmentation, types of segmentation, targeting and positioning is also explained by me. I have explained the strategy used by MTNL for 3G and how it is trying to take the advantage of monopoly because right now it is single in the market and private player will come after few months. Here I am giving the brief of marketing and the rest topics are in the form of chapters. Marketing Marketing is an ongoing process of planning and executing the marketing mix (Product, Price, Place, and Promotion) for products, services or ideas to create exchange between individuals and organizations. Marketing tends to be seen as a creative industry, which includes advertising, distribution and selling. It is also concerned with anticipating the customers' future needs and wants, which are often discovered through market research. Essentially, marketing is the process of

10

creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy. Its specialist areas include: y y y y y y y y y y y y y y y y Advertising and branding Communications Database marketing Direct Marketing Event organization Global marketing International marketing Internet marketing Industrial marketing Market research Public Relations Retailing Search Engine Marketing Marketing Strategy Marketing Plan Strategic Management

Concept of Marketing Marketing is an instructive business domain that serves to inform and educate target markets about the value and competitive advantage of a company and its products. Value (marketing) is worth derived by the customer from owning and using the product. Competitive Advantage is a depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer.

11

Marketing is focused on the task of conveying pertinent company and product related information to specific customers, and there are a multitude of decisions (strategies) to be made within the marketing domain regarding what information to deliver, how much information to deliver, to whom to deliver, how to deliver, when to deliver, and where to deliver. Once the decisions are made, there are numerous ways (tactics) and processes that could be employed in support of the selected strategies. The goal of marketing is to build and maintain a preference for a company and its products within the target markets. The goal of any business is to build mutually profitable and sustainable relationships with its customers. While all business domains are responsible for accomplishing this goal, the marketing domain bears a significant share of the responsibility. Within the larger scope of its definition, marketing is performed through the actions of three coordinated disciplines named: Product Marketing, Corporate Marketing, and Marketing Communications. Two levels of marketing Strategic marketing attempts to determine how an organization competes against its competitors in a market place. In particular, it aims at generating a competitive advantage relative to its competitors. Operational marketing executes marketing functions to attract and keep customers and to maximize the value derived for them, as well as to satisfy the customer with prompt services and meeting the customer expectations. Operational Marketing includes the determination of the porter's five forces model

1. INTRODUCTION
a) History of wrist watch
Over the centuries clocks have been used as a status symbol by those who wear them. Their precision, elegance and convenience are just some of the attributes that clocks and 12

watches represent. Often they are bought purely for their aesthetic looks. and at other times they are bought because of their technical attributes like being precise to the last second or even millisecond. This is what makes clocks and watches so collectible and in some cases they can command high sums of money. Whether you collect the new high precision watches or ones that come from a past era, the fact is that over the years this hobby has become a high turnover business. And collecting watches is in a lot of circles regarded as a wise form of investing. At the start of the last century the clocks that were available for men or women were firstly pocket clocks, and then clocks that held by a pendant attached to the lining of jackets or corsets. The advent of war, industrialization, and the development of the sport activities, brought over new trends which extended to not only the way we dressed, but also how we carried our clocks. It is said that it was a nanny who invented wrist watches at around the end of the 19th century, who fixed a clock around her wrist by using a silk band. The first watches to be made were in fact smaller models of pocket clocks that were fitted with a leather strap. Once this product hit the market newer designs started to be produced based around this same concept. It was Louis Cartier who first made the kind of watches we see today when he created a watch for a flying pioneer hero by the name Santos Dumont. By 1911 this same type of watch was on general sale. That same type of watch became the blueprint of what wrist watches look like to this day. Soon after the design of wrist "clocks" began to diversify away from the classical round shape that had been in vogue up until that time. From the Cartier classical wrist watch other makes of watch started to emerge which were characterized by their shape. Movado is the perfect example of these new designs when it came out with the "Polyplan" shaped

13

watch. Then came the famously and cryptically called "clock reference n. 1593" by Patek Philippe which was a rectangular shaped watch. From 1913 onwards more and more watches started to be developed in all shapes and styles. From the "gondola" watch of Patek Phillipe to Louis Cartiers' "Tank"; named thus because it was inspired by the shape of English armored cars of the time. These are watches which are very much sought after. There were other numerous watch makers like Audemars Piguet, Vacheron Constantin who along with Patek Philippe and Cartier came out with many other designs which added other features to the watches like lunar phases, month and day most of which are found in modern watches now.

Of course we could not mention wrist watches without mentioning the most famous of them all: the Rolex watch. In the 1920s Rolex debuted in the world of wrist watches with the elegant Rolex Prince and its revolutionary "dual time" feature made famous for having the "seconds sector" larger than that of the minutes. At the same time Jaeger Le Coultre produced an even more advanced piece called the "Reverse", also very revolutionary in that it could be turn 180 degrees within its case, thus protecting the crystal and dial. It became incredibly popular and was only prevented from achieving even greater success by the recession of the 1930s and the advent of world war 2. These early watches of the 1910s to 1930s are what define all the makes of watches that we see and wear today. This short article has only scratched the surface of what is a very vast subject which has many more watch makers with diverse and revolutionary designs. However it is makers like Rolex, Cartier, Jaeger Le Coultre and the others mentioned that are amongst the most valuable and collectible, and should you ever be so lucky to get one then make sure you hang on to it - preferably to your wrist. For thousands of years, devices have been used to measure and keep track of time. The current sexagesimal system of time measurement dates to approximately 2000 BC, in Sumer. The Ancient Egyptians divided the day into two 12-hour periods, and used large obelisks to track the movement of the Sun. They also developed water clocks, which 14

were probably first used in the Precinct of Amun-Re, and later outside Egypt as well; they were employed frequently by the Ancient Greeks, who called them clepsydrae. The Shang Dynasty is believed to have used the outflow water clock around the same time, devices which were introduced from Mesopotamia as early as 2000 BC. Other ancient timekeeping devices include the candle clock, used in China, Japan, England and Iraq; the timestick, widely used in India and Tibet, as well as some parts of Europe; and the hourglass, which functioned similarly to a water clock. The earliest clocks relied on shadows cast by the sun, and hence were not useful in cloudy weather or at night and required recalibration as the seasons changed (if the gnomon was not aligned with the Earth's axis). The earliest known clock with a waterpowered escapement mechanism, which transferred rotational energy into intermittent motions,[1] dates back to 3rd century BC ancient Greece;[2] Chinese engineers later invented clocks incorporating mercury-powered escapement mechanisms in the 10th century,[3] followed by Arabic engineers inventing water clocks driven by gears and weights in the 11th century.[4] Mechanical clocks employing the verge escapement mechanism were invented in Europe at the turn of the 14th century, and became the standard timekeeping device until the spring-powered clock and pocket watch in the 16th century, followed by the pendulum clock in the 18th century. During the 20th century, quartz oscillators were invented, followed by atomic clocks. Although first used in laboratories, quartz oscillators were both easy to produce and accurate, leading to their use in wristwatches. Atomic clocks are far more accurate than any previous timekeeping device, and are used to calibrate other clocks and to calculate the proper time on Earth; a standardized civil system, Coordinated Universal Time, is based on atomic time.

b) Early growth Many ancient civilizations observed astronomical bodies, often the Sun and Moon, to determine times, dates, and seasons.[5][6] Methods of sexagesimal timekeeping, now common in Western society, first originated nearly 4,000 years ago in Mesopotamia and
15

Egypt;[5][7][8] a similar system was developed later in Mesoamerica.[9] The first calendars may have been created during the last glacial period, by hunter-gatherers who employed tools such as sticks and bones to track the phases of the moon or the seasons.[6] Stone circles, such as England's Stonehenge, were built in various parts of the world, especially in Prehistoric Europe, and are thought to have been used to time and predict seasonal and annual events such as equinoxes or solstices.[6][10] As those megalithic civilizations left no recorded history, little is known of their calendars or timekeeping methods.[11] [edit] 3500 BC 500 BC See also: History of timekeeping devices in Egypt Sundials have their origin in shadow clocks, which were the first devices used for measuring the parts of a day.[12] The oldest known shadow clock is from Egypt, and was made from green schist. Ancient Egyptian obelisks, constructed about 3500 BC, are also among the earliest shadow clocks.[6][13][14]

The Luxor Obelisk in Place de la Concorde, Paris, France Egyptian shadow clocks divided daytime into 10 parts, with an additional four "twilight hours"two in the morning, and two in the evening. One type of shadow clock consisted of a long stem
16

with five variable marks and an elevated crossbar which cast a shadow over those marks. It was positioned eastward in the morning, and was turned west at noon. Obelisks functioned in much the same manner: the shadow cast on the markers around it allowed the Egyptians to calculate the time. The obelisk also indicated whether it was morning or afternoon, as well as the summer and winter solstices.[6][15] A third shadow clock, developed c. 1500 BC, was similar in shape to a bent T-square. It measured the passage of time by the shadow cast by its crossbar on a non-linear rule. The T was oriented eastward in the mornings, and turned around at noon, so that it could cast its shadow in the opposite direction.[16] Although accurate, shadow clocks relied on the sun, and so were useless at night and in cloudy weather.[15][17] The Egyptians therefore developed a number of alternative timekeeping instruments, including water clocks, hourglasses, and a system for tracking star movements. The oldest description of a water clock is from the tomb inscription of the 16th-century BC Egyptian court official Amenemhet, identifying him as its inventor.[18] There were several types of water clocks, some more elaborate than others. One type consisted of a bowl with small holes in its bottom, which was floated on water and allowed to fill at a near-constant rate; markings on the side of the bowl indicated elapsed time, as
17

the surface of the water reached them. The oldest-known waterclock was found in the tomb of pharaoh Amenhotep I (1525 1504 BC), suggesting that they were first used in ancient Egypt.[15][19][20] The ancient Egyptians are also believed to be the inventors of the hourglass, which consisted of two vertically aligned glass chambers connected by a small opening. When the hourglass was turned over, grains of sand fell at a constant rate from one chamber to the other.[17] Another Egyptian method of determining the time during the night was using plumb-lines called merkhets. In use since at least 600 BC, two of these instruments were aligned with Polaris, the north pole star, to create a north south meridian. The time was accurately measured by observing certain stars as they crossed the line created with the merkhets.[15][21] [edit] 500 BC 1 BC

Ctesibius's clepsydra from the 3rd century BC. Clepsydra, literally water thief, is the Greek word for water clock.[22] Water clocks, or clepsydrae, were commonly used in Ancient Greece following their introduction by Plato, who also invented a water-based alarm clock.[23][24] One account of Plato's alarm clock describes it as depending on the nightly overflow of a vessel
18

containing lead balls, which floated in a columnar vat. The vat held a steadily increasing amount of water, supplied by a cistern. By morning, the vessel would have floated high enough to tip over, causing the lead balls to cascade onto a copper platter. The resultant clangor would then awaken Plato's students at the Academy.[25] Another possibility is that it comprised two jars, connected by a siphon. Water emptied until it reached the siphon, which transported the water to the other jar. There, the rising water would force air through a whistle, sounding an alarm.[24] The Greeks and Chaldeans regularly maintained timekeeping records as an essential part of their astronomical observations. Greek astronomer, Andronicus of Cyrrhus, supervised the construction of the Tower of the Winds in Athens in the 1st century B.C. In Greek tradition, clepsydrae were used in court; later, the Romans adopted this practice, as well. There are several mentions of this in historical records and literature of the era; for example, in Theaetetus, Plato says that "Those men, on the other hand, always speak in haste, for the flowing water urges them on".[26] Another mention occurs in Lucius Apuleius' The Golden Ass: "The Clerk of the Court began bawling again, this time summoning the chief witness for the prosecution to appear. Up stepped an old man, whom I did not know. He was invited to speak for as long as there
19

was water in the clock; this was a hollow globe into which water was poured through a funnel in the neck, and from which it gradually escaped through fine perforations at the base".[27] The clock in Apuleius' account was one of several types of water clock used. Another consisted of a bowl with a hole in its centre, which was floated on water. Time was kept by observing how long the bowl took to fill with water.[28] Although clepsydrae were more useful than sundialsthey could be used indoors, during the night, and also when the sky was cloudythey were not as accurate; the Greeks, therefore, sought a way to improve their water clocks.[29] Although still not as accurate as sundials, Greek water clocks became more accurate around 325 BC, and they were adapted to have a face with an hour hand, making the reading of the clock more precise and convenient. One of the more common problems in most types of clepsydrae was caused by water pressure: when the container holding the water was full, the increased pressure caused the water to flow more rapidly. This problem was addressed by Greek and Roman horologists beginning in 100 BC, and improvements continued to be made in the following centuries. To counteract the increased water flow, the clock's water containersusually bowls or jugswere given a conical shape; positioned with the wide end up, a greater amount of water had to flow out in order to drop the
20

same distance as when the water was lower in the cone. Along with this improvement, clocks were constructed more elegantly in this period, with hours marked by gongs, doors opening to miniature figurines, bells, or moving mechanisms.[15] There were some remaining problems, however, which were never solved, such as the effect of temperature. Water flows more slowly when cold, or may even freeze.[30] Although the Greeks and Romans did much to advance water clock technology, they still continued to use shadow clocks. The mathematician and astronomer Theodosius of Bithynia, for example, is said to have invented a universal sundial that was accurate anywhere on Earth, though little is known about it.[31] Others wrote of the sundial in the mathematics and literature of the period. Marcus Vitruvius Pollio, the Roman author of De Architectura, wrote on the mathematics of gnomons, or sundial blades.[32] During the reign of Emperor Augustus, the Romans constructed the largest sundial ever built, the Solarium Augusti. Its gnomon was an obelisk from Heliopolis.[33] Similarly, the obelisk from Campus Martius was used as the gnomon for Augustus' zodiacal sundial.[34] Pliny the Elder records that the first sundial in Rome arrived in 264 BC, looted from Catania, Sicily; according to him, it gave the incorrect time until the markings and angle appropriate for Rome's latitude were useda century later.[35]
21

[edit] AD 1 AD 1500 [edit] Water clocks

The water-powered elephant clock by Al-Jazari, 1206. Joseph Needham speculated that the introduction of the outflow clepsydra to China, perhaps from Mesopotamia, occurred as far back as the 2nd millennium BC, during the Shang Dynasty, and at the latest by the 1st millennium BC. By the beginning of the Han Dynasty, in 202 BC, the outflow clepsydra was gradually replaced by the inflow clepsydra, which featured an indicator rod on a float. To compensate for the falling pressure head in the reservoir, which slowed timekeeping as the vessel filled, Zhang Heng added an extra tank between the reservoir and the inflow vessel. Around 550 AD, Yin Gui was the first in China to write of the overflow or constant-level tank added to the series, which was later described in detail by the inventor Shen Kuo. Around 610, this design was trumped by two Sui Dynasty inventors, Geng Xun and Yuwen Kai, who were the first to create the balance clepsydra, with standard positions for the steelyard balance.[36] Joseph Needham states that: ... [the balance clepsydra] permitted the seasonal adjustment of the pressure head in the compensating tank by having standard
22

positions for the counterweight graduated on the beam, and hence it could control the rate of flow for different lengths of day and night. With this arrangement no overflow tank was required, and the two attendants were warned when the clepsydra needed refilling.[36] Between 270 BC and 500 AD, Hellenistic (Ctesibius, Hero of Alexandria, Archimedes) and Roman horologists and astronomers were developing more elaborate mechanized water clocks. The added complexity was aimed at regulating the flow and at providing fancier displays of the passage of time. For example, some water clocks rang bells and gongs, while others opened doors and windows to show figurines of people, or moved pointers, and dials. Some even displayed astrological models of the universe. Some of the most elaborate water clocks were designed by Muslim engineers. In particular, the water clocks by Al-Jazari in 1206 are credited for going "well beyond anything" that had preceded them. In his treatise, he describes one of his water clocks, the elephant clock. The clock recorded the passage of temporal hours, which meant that the rate of flow had to be changed daily to match the uneven length of days throughout the year. To accomplish this, the clock had two tanks: the top tank was connected to the time indicating mechanisms and the bottom was connected to the flow control regulator. At daybreak the tap was opened and water
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flowed from the top tank to the bottom tank via a float regulator that maintained a constant pressure in the receiving tank.[37] [edit] Candle clocks

A candle clock It is not known specifically where and when candle clocks were first used; however, their earliest mention comes from a Chinese poem, written in 520 by You Jianfu. According to the poem, the graduated candle was a means of determining time at night. Similar candles were used in Japan until the early 10th century.[38] The candle clock most commonly mentioned and written of is attributed to King Alfred the Great. It consisted of six candles made from 72 pennyweights of wax, each 12 inches (30 cm) high, and of uniform thickness, marked every inch (2.5 cm). As these candles burned for about four hours, each mark represented 20 minutes. Once lit, the candles were placed in wooden framed glass boxes, to prevent the flame from extinguishing.[39] The most sophisticated candle clocks of their time were those of Al-Jazari in 1206. One of his candle clocks included a dial to display the time and, for the first time, employed a bayonet fitting,

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a fastening mechanism still used in modern times.[40] Donald Routledge Hill described Al-Jazari's candle clocks as follows: The candle, whose rate of burning was known, bore against the underside of the cap, and its wick passed through the hole. Wax collected in the indentation and could be removed periodically so that it did not interfere with steady burning. The bottom of the candle rested in a shallow dish that had a ring on its side connected through pulleys to a counterweight. As the candle burned away, the weight pushed it upward at a constant speed. The automata were operated from the dish at the bottom of the candle. No other candle clocks of this sophistication are known.[41]

An oil-lamp clock A variation on this theme were oil-lamp clocks. These early timekeeping devices consisted of a graduated glass reservoir to hold oil usually whale oil, which burned cleanly and evenly supplying the fuel for a built-in lamp. As the level in the reservoir dropped, it provided a rough measure of the passage of time. [edit] Incense clocks Main article: Incense clock In addition to water, mechanical, and candle clocks, incense clocks were used in the Far East, and were fashioned in several different
25

forms.[42] Incense clocks were first used in China around the 6th century; in Japan, one still exists in the Sh s in,[43] although its characters are not Chinese, but Devanagari.[44] Due to their frequent use of Devanagari characters, suggestive of their use in Buddhist ceremonies, Edward H. Schafer speculated that incense clocks were invented in India.[44] Although similar to the candle clock, incense clocks burned evenly and without a flame; therefore, they were more accurate and safer for indoor use.[45] Several types of incense clock have been found, the most common forms include the incense stick and incense seal.[46][47] An incense stick clock was an incense stick with calibrations;[47] most were elaborate, sometimes having threads, with weights attached, at even intervals. The weights would drop onto a platter or gong below, signifying that a certain amount of time had elapsed. Some incense clocks were held in elegant trays; openbottomed trays were also used, to allow the weights to be used together with the decorative tray.[48][49] Sticks of incense with different scents were also used, so that the hours were marked by a change in fragrance.[50] The incense sticks could be straight or spiraled; the spiraled ones were longer, and were therefore intended for long periods of use, and often hung from the roofs of homes and temples.[51]

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In Japan, a geisha was paid for the number of senkodokei (incense sticks) that had been consumed while she was present, a practice which continued until 1924.[52] Incense seal clocks were used for similar occasions and events as the stick clock; while religious purposes were of primary importance,[46] these clocks were also popular at social gatherings, and were used by Chinese scholars and intellectuals.[53] The seal was a wooden or stone disk with one or more grooves etched in it[46] into which incense was placed.[54] These clocks were common in China,[53] but were produced in fewer numbers in Japan.[55] To signal the passage of a specific amount of time, small pieces of fragrant woods, resins, or different scented incenses could be placed on the incense powder trails. Different powdered incense clocks used different formulations of incense, depending on how the clock was laid out.[56] The length of the trail of incense, directly related to the size of the seal, was the primary factor in determining how long the clock would last; all burned for long periods of time, ranging between 12 hours and a month.[57][58][59] While early incense seals were made of wood or stone, the Chinese gradually introduced disks made of metal, most likely beginning during the Song dynasty. This allowed craftsmen to more easily create both large and small seals, as well as design and decorate them more aesthetically. Another advantage was the ability to vary
27

the paths of the grooves, to allow for the changing length of the days in the year. As smaller seals became more readily available, the clocks grew in popularity among the Chinese, and were often given as gifts.[60] Incense seal clocks are often sought by modernday clock collectors; however, few remain that have not already been purchased or been placed on display at museums or temples.[55] [edit] Clocks with gears and escapements

Greek washstand automaton working with the earliest escapement. The mechanism was also used in Greek water clocks.[61] The earliest instance of a liquid-driven escapement was described by the Greek engineer Philo of Byzantium (fl. 3rd century BC) in his technical treatise Pneumatics (chapter 31) where he likens the escapement mechanism of a washstand automaton with those as employed in (water) clocks.[61] Another early clock to use escapements was built during the 7th century AD in Chang'an, by Tantric monk and mathematician, Yi Xing, and government official Liang Lingzan.[62][63] An astronomical instrument that served as a clock, it was discussed in a contemporary text as follows:[64]

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[It] was made in the image of the round heavens and on it were shown the lunar mansions in their order, the equator and the degrees of the heavenly circumference. Water, flowing into scoops, turned a wheel automatically, rotating it one complete revolution in one day and night. Besides this, there were two rings fitted around the celestial sphere outside, having the sun and moon threaded on them, and these were made to move in circling orbit ... And they made a wooden casing the surface of which represented the horizon, since the instrument was half sunk in it. It permitted the exact determinations of the time of dawns and dusks, full and new moons, tarrying and hurrying. Moreover, there were two wooden jacks standing on the horizon surface, having one a bell and the other a drum in front of it, the bell being struck automatically to indicate the hours, and the drum being beaten automatically to indicate the quarters. All these motions were brought about by machinery within the casing, each depending on wheels and shafts, hooks, pins and interlocking rods, stopping devices and locks checking mutually.[64]

The original diagram of Su Song's book showing the inner workings of his clock tower

29

Since Yi Xing's clock was a water clock, it was affected by temperature variations. That problem was solved in 976 by Zhang Sixun by replacing the water with mercury, which remains liquid down to 39 C (38 F). Zhang implemented the changes into his clock tower, which was about 10 metres (33 ft) tall, with escapements to keep the clock turning and bells to signal every quarter-hour. Another noteworthy clock, the elaborate Cosmic Engine, was built by Su Song, in 1088. It was about the size of Zhang's tower, but had an automatically rotating armillary spherealso called a celestial globefrom which the positions of the stars could be observed. It also featured five panels with mannequins ringing gongs or bells, and tablets showing the time of day, or other special times.[15] Furthermore, it featured the first known endless power-transmitting chain drive in horology.[3] Originally built in the capital of Kaifeng, it was dismantled by the Jin army and sent to the capital of Yanjing (now Beijing), where they were unable to put it back together. As a result, Su Song's son Su Xie was ordered to build a replica.[65]

Drawing of the Jayrun Water Clock in Damascus from the treatise On the Construction of Clocks and their Use (1203)

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The clock towers built by Zhang Sixun and Su Song, in the 10th and 11th centuries, respectively, also incorporated a striking clock mechanism, the use of clock jacks to sound the hours.[66] A striking clock outside of China was the Jayrun Water Clock, at the Umayyad Mosque in Damascus, Syria, which struck once every hour. It was constructed by Muhammad al-Sa'ati in the 12th century, and later described by his son Ridwan ibn al-Sa'ati, in his On the Construction of Clocks and their Use (1203), when repairing the clock.[67] In 1235, an early monumental waterpowered alarm clock that "announced the appointed hours of prayer and the time both by day and by night" was completed in the entrance hall of the Mustansiriya Madrasah in Baghdad.[68] The first geared clock was invented in the 11th century by the Arab engineer Ibn Khalaf al-Muradi in Islamic Iberia; it was a water clock that employed a complex gear train mechanism, including both segmental and epicyclic gearing,[4][69] capable of transmitting high torque.[70] The clock was unrivalled in its use of sophisticated complex gearing, until the mechanical clocks of the mid-14th century.[69][70] Al-Muradi's clock also employed the use of mercury in its hydraulic linkages,[71][72] which could function mechanical automata.[72] Al-Muradi's work was known to scholars working under Alfonso X of Castile,[73] hence the mechanism may have played a role in the development of the
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European mechanical clocks.[69] Other monumental water clocks constructed by medieval Muslim engineers also employed complex gear trains and arrays of automata.[74] Like the earlier Greeks and Chinese, Arab engineers at the time also developed a liquid-driven escapement mechanism which they employed in some of their water clocks. Heavy floats were used as weights and a constanthead system was used as an escapement mechanism,[4] which was present in the hydraulic controls they used to make heavy floats descend at a slow and steady rate.[74] A mercury clock, described in the Libros del saber de Astronomia, a Spanish work from 1277 consisting of translations and paraphrases of Arabic works, is sometimes quoted as evidence for Muslim knowledge of a mechanical clock. However, the device was actually a compartmented cylindrical water clock,[75] which the Jewish author of the relevant section, Rabbi Isaac, constructed using principles described by a philosopher named "Iran", identified with Heron of Alexandria (fl. 1st century AD), on how heavy objects may be lifted. Astronomical clocks

Astrolabes were used as astronomical clocks by Muslim astronomers at mosques and observatories.
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During the 11th century in the Song Dynasty, the Chinese astronomer, horologist and mechanical engineer Su Song created a water-driven astronomical clock for his clock tower of Kaifeng City. It incorporated an escapement mechanism as well as the earliest known endless power-transmitting chain drive, which drove the armillary sphere. Contemporary Muslim astronomers also constructed a variety of highly accurate astronomical clocks for use in their mosques and observatories, such as the water-powered astronomical clock by Al-Jazari in 1206, and the astrolabic clock by Ibn al-Shatir in the early 14th century.[80] The most sophisticated timekeeping astrolabes were the geared astrolabe mechanisms designed by Ab Rayh n B r n in the 11th century and by Muhammad ibn Abi Bakr in the 13th century. These devices functioned as timekeeping devices and also as calenders.

Castle clock by Al-Jazari in 1206 A sophisticated water-powered astronomical clock was built by AlJazari in 1206. This castle clock is considered by some to be an early example of a programmable analog computer. It was a complex device that was about 11 feet high, and had multiple functions alongside timekeeping. It included a display of the
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zodiac and the solar and lunar orbits, and a pointer in the shape of the crescent moon which travelled across the top of a gateway, moved by a hidden cart and causing automatic doors to open, each revealing a mannequin, every hour. It was possible to re-program the length of day and night in order to account for the changing lengths of day and night throughout the year. This clock also featured a number of automata including falcons and musicians who automatically played music when moved by levers operated by a hidden camshaft attached to a water wheel. Modern devices Modern devices of ancient origin

A 20th-century sundial in Seville, Andalusia, Spain Sundials were further developed by Muslim astronomers. As the ancient dials were nodus-based with straight hour-lines, they indicated unequal hoursalso called temporary hoursthat varied with the seasons. Every day was divided into 12 equal segments regardless of the time of year; thus, hours were shorter in winter and longer in summer. The idea of using hours of equal length throughout the year was the innovation of Abu'l-Hasan Ibn alShatir in 1371, based on earlier developments in trigonometry by Muhammad ibn J bir al-Harr n al-Batt n (Albategni). Ibn al34

Shatir was aware that "using a gnomon that is parallel to the Earth's axis will produce sundials whose hour lines indicate equal hours on any day of the year". His sundial is the oldest polar-axis sundial still in existence. The concept appeared in Western sundials starting in 1446. Following the acceptance of heliocentrism and equal hours, as well as advances in trigonometry, sundials appeared in their present form during the Renaissance, when they were built in large numbers. In 1524, the French astronomer Oronce Fin constructed an ivory sundial, which still exists; later, in 1570, the Italian astronomer Giovanni Padovani published a treatise including instructions for the manufacture and laying out of mural (vertical) and horizontal sundials. Similarly, Giuseppe Biancani's Constructio instrumenti ad horologia solaria (c. 1620) discusses how to construct sundials. The Portuguese navigator Ferdinand Magellan used 18 hourglasses on each ship during his circumnavigation of the globe in 1522. Since the hourglass was one of the few reliable methods of measuring time at sea, it is speculated that it had been used on board ships as far back as the 11th century, when it would have complemented the magnetic compass as an aid to navigation. However, the earliest evidence of their use appears in the painting Allegory of Good Government, by Ambrogio Lorenzetti, from
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1338. From the 15th century onwards, hourglasses were used in a wide range of applications at sea, in churches, in industry, and in cooking; they were the first dependable, reusable, reasonably accurate, and easily constructed time-measurement devices. The hourglass also took on symbolic meanings, such as that of death, temperance, opportunity, and Father Time, usually represented as a bearded, old man. Though also used in China, the hourglass's history there is unknown. Clocks

The astronomical clock of St Albans Abbey, built by its abbot, Richard of Wallingford Clocks encompass a wide spectrum of devices, ranging from wristwatches to the Clock of the Long Now. The English word clock is said to derive from the Middle English clokke, Old North French cloque, or Middle Dutch clocke, all of which mean bell, and are derived from the Medieval Latin clocca, also meaning bell. Indeed, bells were used to mark the passage of time; they marked the passage of the hours at sea and in abbeys. Throughout history, clocks have had a variety of power sources, including gravity, springs, and electricity.The invention of mechanical clockwork itself is usually credited to the Chinese
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official Liang Lingzan and monk Yi Xing. However, mechanical clocks were not widely used in the West until the 14th century. Clocks were used in medieval monasteries to keep the regulated schedule of prayers. The clock continued to be improved, with the first pendulum clock being designed and built in the 17th century by Christiaan Huygens, a Dutch scientist. Early Western mechanical clocks The earliest medieval European clockmakers were Christian monks. Medieval religious institutions required clocks because daily prayer and work schedules were strictly regulated. This was done by various types of time-telling and recording devices, such as water clocks, sundials and marked candles, probably used in combination. When mechanical clocks were used, they were often wound at least twice a day to ensure accuracy. Important times and durations were broadcast by bells, rung either by hand or by a mechanical device, such as a falling weight or rotating beater. As early as 850, Pacificus, archdeacon of Verona, constructed a water clock (horologium nocturnum). The religious necessities and technical skill of the medieval monks were crucial factors in the development of clocks, as the historian Thomas Woods writes: The monks also counted skillful clock-makers among them. The first recorded clock was built by the future Pope Sylvester II for
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the German town of Magdeburg, around the year 996. Much more sophisticated clocks were built by later monks. Peter Lightfoot, a 14th-century monk of Glastonbury, built one of the oldest clocks still in existence, which now sits in excellent condition in London's Science Museum.

Da Dondi's 1364 Padua clock The appearance of clocks in writings of the 11th century implies that they were well-known in Europe in that period.[104] In the early 14th century, the Florentine poet Dante Alighieri referred to a clock in his Paradiso; considered to be the first literary reference to a clock that struck the hours. The earliest detailed description of clockwork was presented by Giovanni da Dondi, Professor of Astronomy at Padua, in his 1364 treatise Il Tractatus Astrarii. This has inspired several modern replicas, including some in London's Science Museum and the Smithsonian Institution.[97] Other notable examples from this period were built in Milan (1335), Strasbourg (1354), Lund (1380), Rouen (1389), and Prague (1462). Salisbury cathedral clock, dating from about 1386, is the oldest working clock in the world, still with most of its original parts.[106] It has no dial, as its purpose was to strike a bell at precise times.[106] The wheels and gears are mounted in an open,
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box-like iron frame, measuring about 1.2 metres (3.9 ft) square. The framework is held together with metal dowels and pegs, and the escapement is the verge and foliot type, standard for clocks of this age. The power is supplied by two large stones, hanging from pulleys. As the weights fall, ropes unwind from the wooden barrels. One barrel drives the main wheel, which is regulated by the escapement, and the other drives the striking mechanism and the air brake. Peter Lightfoot's Wells Cathedral clock, constructed c. 1390, is also of note. The dial represents a geocentric view of the universe, with the Sun and Moon revolving around a centrally fixed Earth. It is unique in having its original medieval face, showing a philosophical model of the pre-Copernican universe. Above the clock is a set of figures, which hit the bells, and a set of jousting knights who revolve around a track every 15 minutes. The clock was converted to pendulum and anchor escapement in the 17th century, and was installed in London's Science Museum in 1884, where it continues to operate. Similar astronomical clocks, or horologes, can be seen at Exeter, Ottery St Mary, and Wimborne Minster.

The face of the Prague Astronomical Clock (1462)

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One clock that has not survived to the present-day is that of the Abbey of St Albans, built by the 14th-century abbot Richard of Wallingford. It may have been destroyed during Henry VIII's Dissolution of the Monasteries, but the abbot's notes on its design have allowed a full-scale reconstruction. As well as keeping time, the astronomical clock could accurately predict lunar eclipses, and may have shown the Sun, Moon (age, phase, and node), stars and planets, as well as a wheel of fortune, and an indicator of the state of the tide at London Bridge.According to Thomas Woods, "a clock that equaled it in technological sophistication did not appear for at least two centuries". Giovanni de Dondi was another early mechanical clockmaker, whose clock did not survive, but has been replicated based on the designs. De Dondi's clock was a sevenfaced construction with 107 moving parts, showing the positions of the Sun, Moon, and five planets, as well as religious feast days. Around this period, mechanical clocks were introduced into abbeys and monasteries to mark important events and times, gradually replacing water clocks which had served the same purpose. During the Middle Ages, clocks were primarily used for religious purposes; the first employed for secular timekeeping emerged around the 15th century. In Dublin, the official measurement of time became a local custom, and by 1466 a public clock stood on top of the Tholsel (the city court and council chamber). It was
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probably the first of its kind in Ireland, and would only have had an hour hand. The increasing lavishness of castles led to the introduction of turret clocks.A 1435 example survives from Leeds castle; its face is decorated with the images of the Crucifixion of Jesus, Mary and St George. Clock towers in Western Europe in the Middle Ages were also sometimes striking clocks. The most famous original still standing is possibly St Mark's Clock on the top of St Mark's Clocktower in St Mark's Square, Venice, assembled in 1493, by the clockmaker Gian Carlo Rainieri from Reggio Emilia. In 1497, Simone Campanato moulded the great bell that every definite time-lapse is beaten by two mechanical bronze statues (h. 2,60 m.) called Due Mori (Two Moors), handling a hammer. Possibly earlier (1490 by clockmaster Jan R e also called Hanu ) is the Prague Astronomical Clock, that according to another source was assembled as early as 1410 by clockmaker Mikul of Kada and mathematician Jan indel. The allegorical parade of animated sculptures rings on the hour every day. Early clock dials did not use minutes and seconds. A clock with a minutes dial is mentioned in a 1475 manuscript, and clocks indicating minutes and seconds existed in Germany in the 15th century. Timepieces which indicated minutes and seconds were occasionally made from this time on, but this was not common
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until the increase in accuracy made possible by the pendulum clock and, in watches, the spiral balance spring. The 16th-century astronomer Tycho Brahe used clocks with minutes and seconds to observe stellar positions. Ottoman mechanical clocks The Ottoman engineer Taqi al-Din described a weight-driven clock with a verge-and-foliot escapement, a striking train of gears, an alarm, and a representation of the moon's phases in his book The Brightest Stars for the Construction of Mechanical Clocks (AlKaw kib al-durriyya f wadh' al-bank mat al-dawriyya), written around 1556. Similarly to earlier 15th-century European mechanical alarm clocks, the alarm was set by placing a peg on the dial wheel at the appropriate time. The clock had three dials reading in hours, degrees and minutes. Taqi al-Din later constructed a clock for the Istanbul Observatory, where he used it to make observations of right ascensions, stating: We constructed a mechanical clock with three dials which show the hours, the minutes, and the seconds. We divided each minute into five seconds. This was an important innovation in 16th-century practical astronomy, as at the start of the century clocks were not accurate enough to be used for astronomical purposes. An example of a watch which measured time in minutes was created by an Ottoman watchmaker, Meshur Sheyh Dede, in 1702.
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Pendulum clocks Main article: Pendulum clock Innovations to the mechanical clock continued, with miniaturization leading to domestic clocks in the 15th century, and personal watches in the 16th. In the 1580s, the Italian polymath Galileo Galilei investigated the regular swing of the pendulum, and discovered that it could be used to regulate a clock. Although Galileo studied the pendulum as early as 1582, he never actually constructed a clock based on that design. The first pendulum clock was designed and built by Dutch scientist Christiaan Huygens, in 1656. Early versions erred by less than one minute per day, and later ones only by 10 seconds, very accurate for their time. The Jesuits were another major contributor to the development of pendulum clocks in the 17th and 18th centuries, having had an "unusually keen appreciation of the importance of precision". In measuring an accurate one-second pendulum, for example, the Italian astronomer Father Giovanni Battista Riccioli persuaded nine fellow Jesuits "to count nearly 87,000 oscillations in a single day".They served a crucial role in spreading and testing the scientific ideas of the period, and collaborated with contemporary scientists, such as Huygens. The modern longcase clock, also known as the grandfather clock, has its origins in the invention of the anchor escapement
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mechanism in about 1670. Before then, pendulum clocks had used the older verge escapement mechanism, which required very wide pendulum swings of about 100. To avoid the need for a very large case, most clocks using the verge escapement had a short pendulum. The anchor mechanism, however, reduced the pendulum's necessary swing to between 4 to 6, allowing clockmakers to use longer pendulums with consequently slower beats. These required less power to move, caused less friction and wear, and were more accurate than their shorter predecessors. Most longcase clocks use a pendulum about a metre (39 inches) long to the center of the bob, with each swing taking one second. This requirement for height, along with the need for a long drop space for the weights that power the clock, gave rise to the tall, narrow case. In 1675, 18 years after inventing the pendulum clock, Huygens devised the spiral balance spring for the balance wheel of pocket watches, an improvement on the straight spring invented by English natural philosopher Robert Hooke.[This resulted in a great advance in accuracy of pocket watches, from perhaps several hours per day to 10 minutes per day, similar to the effect of the pendulum upon mechanical clocks. Clockmakers

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A pocket watch The first professional clockmakers came from the guilds of locksmiths and jewellers. Clockmaking developed from a specialized craft into a mass production industry over many years. Paris and Blois were the early centers of clockmaking in France. French clockmakers such as Julien Le Roy, clockmaker of Versailles, were leaders in case design and ornamental clocks. Le Roy belonged to the fifth generation of a family of clockmakers, and was described by his contemporaries as "the most skillful clockmaker in France, possibly in Europe". He invented a special repeating mechanism which improved the precision of clocks and watches, a face that could be opened to view the inside clockwork, and made or supervised over 3,500 watches. The competition and scientific rivalry resulting from his discoveries further encouraged researchers to seek new methods of measuring time more accurately.

An antique pocket watch movement, from an 1891 encyclopedia. Between 1794 and 1795, in the aftermath of the French Revolution, the French government briefly mandated decimal clocks, with a day divided into 10 hours of 100 minutes each.The
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astronomer and mathematician Pierre-Simon Laplace, among other individuals, modified the dial of his pocket watch to decimal time. A clock in the Palais des Tuileries kept decimal time as late as 1801, but the cost of replacing all the nation's clocks prevented decimal clocks from becoming widespread. Because decimalized clocks only helped astronomers rather than ordinary citizens, it was one of the most unpopular changes associated with the metric system, and it was abandoned. In Germany, Nuremberg and Augsburg were the early clockmaking centers, and the Black Forest came to specialize in wooden cuckoo clocks.[135] The English became the predominant clockmakers of the 17th and 18th centuries. Switzerland established itself as a clockmaking center following the influx of Huguenot craftsmen, and in the 19th century, the Swiss industry "gained worldwide supremacy in high-quality machine-made watches". The leading firm of the day was Patek Philippe, founded by Antoni Patek of Warsaw and Adrien Philippe of Berne. : Wristwatch In 1904, Alberto Santos-Dumont, an early aviator, asked his friend, a French watchmaker called Louis Cartier, to design a watch that could be useful during his flights.[136] The wristwatch had already been invented by Patek Philippe, in 1868, but only as a "ladys bracelet watch", intended as jewelry. As pocket watches were
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unsuitable, Louis Cartier created the Santos wristwatch, the first man's wristwatch and the first designed for practical use. Wristwatches gained in popularity during World War I, when officers found them to be more convenient than pocket watches in battle. Also, because the pocket watch was mainly a middle class item, the enlisted men usually owned wristwatches, which they brought with them. Artillery and infantry officers depended on their watches as battles became more complicated and coordinated attacks became necessary. Wristwatches were found to be needed in the air as much as on the ground: military pilots found them more convenient than pocket watches for the same reasons as Santos-Dumont had. Eventually, army contractors manufactured watches en masse, for both infantry and pilots. In World War II, the A-11 was a popular watch among American airmen, with its simple black face and clear white numbers for easy readability.

A twin-barrel box chronometer. Marine chronometers Marine chronometers are clocks used at sea as time standards, to determine longitude by celestial navigation.They were first developed by Yorkshire carpenter John Harrison, who won the British government's Longitude Prize in 1759. Marine
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chronometers keep the time of a fixed locationusually Greenwich Mean Timeallowing seafarers to determine longitude by comparing the local high noon to the clock. Chronometers

A modern quartz watch and chronograph A chronometer is a portable timekeeper that meets certain precision standards. Initially, the term was used to refer to the marine chronometer, a timepiece used to determine longitude by means of celestial navigation. More recently, the term has also been applied to the chronometer watch, a wristwatch that meets certain precision standards set by the Swiss agency COSC. Over 1,000,000 "Officially Certified Chronometer" certificates, mostly for mechanical wrist-chronometerswristwatcheswith sprung balance oscillators, are delivered each year, after passing the COSC's most severe tests, and being singly identified by an officially recorded individual serial number. According to COSC, a chronometer is a high-precision watch, capable of displaying the seconds and housing a movement that has been tested over several days, in different positions, and at different temperatures, by an official, neutral body. To meet this requirement, each movement is individually tested for several consecutive days, in five positions,
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and at three temperatures. Any watch with the designation chronometer has a certified movement. Quartz oscillators Main article: Crystal oscillator

Internal construction of a modern high performance HC-49 package quartz crystal. The piezoelectric properties of crystalline quartz were discovered by Jacques and Pierre Curie in 1880.The first quartz crystal oscillator was built by Walter G. Cady in 1921, and in 1927 the first quartz clock was built by Warren Marrison and J. W. Horton at Bell Telephone Laboratories in Canada.The following decades saw the development of quartz clocks as precision time measurement devices in laboratory settingsthe bulky and delicate counting electronics, built with vacuum tubes, limited their practical use elsewhere. In 1932, a quartz clock able to measure small weekly variations in the rotation rate of the Earth was developed.The National Bureau of Standards (now NIST) based the time standard of the United States on quartz clocks from late 1929 until the 1960s, when it changed to atomic clocks. In 1969, Seiko produced the world's first quartz wristwatch, the Astron.

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Their inherent accuracy and low cost of production has resulted in the subsequent proliferation of quartz clocks and watches. Atomic clocks Atomic clocks are the most accurate timekeeping devices known to date. Accurate to within a few seconds over many thousands of years, they are used to calibrate other clocks and timekeeping instruments. The first atomic clock, invented in 1949, is on display at the Smithsonian Institution. It was based on the absorption line in the ammonia molecule, but most are now based on the spin property of the cesium atom. The International System of Units standardized its unit of time, the second, on the properties of cesium in 1967. SI defines the second as 9,192,631,770 cycles of the radiation which corresponds to the transition between two electron spin energy levels of the ground state of the 133Cs atom. The cesium atomic clock, maintained by the National Institute of Standards and Technology, is accurate to 30 billionths of a second per year. Atomic clocks have employed other elements, such as hydrogen and rubidium vapor, offering greater stabilityin the case of hydrogen clocksand smaller size, lower power consumption, and thus lower cost (in the case of rubidium clocks). c) Recent Development The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not
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yet realized. Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors. Latent demand, therefore, is commonly defined by economists as the industry earnings of a market when that market becomes accessible and attractive to serve by competing firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in an efficient manner. It is typically expressed as the total revenues potentially extracted by firms. The market is defined at a given level in the value chain. There can be latent demand at the retail level, at the wholesale level, the manufacturing level, and the raw materials level (the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain minimum profitability). The latent demand for mid-range wrist watches is not actual or historic sales. Nor is latent demand future sales. In fact, latent demand can be lower either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors, including the lack of international openness, cultural barriers to consumption, regulations, and cartel-like behavior on the part of
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firms. In general, however, latent demand is typically larger than actual sales in a country market. For reasons discussed later, this report does not consider the notion of unit quantities , only total latent revenues (i.e., a calculation of price times quantity is never made, though one is implied). The units used in this report are U.S. dollars not adjusted for inflation (i.e., the figures incorporate inflationary trends) and not adjusted for future dynamics in exchange rates. If inflation rates or exchange rates vary in a substantial way compared to recent experience, actually sales can also exceed latent demand (when expressed in U.S. dollars, not adjusted for inflation). On the other hand, latent demand can be typically higher than actual sales as there are often distribution inefficiencies that reduce actual sales below the level of latent demand. As mentioned in the introduction, this study is strategic in nature, taking an aggregate and long-run view, irrespective of the players or products involved. If fact, all the current products or services on the market can cease to exist in their present form (i.e., at a brand-, R&D specification, or corporate-image level) and all the players can be replaced by other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be an international latent
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demand for mid-range wrist watches at the aggregate level. Product and service offering details, and the actual identity of the players involved, while important for certain issues, are relatively unimportant for estimates of latent demand.

THE METHODOLOGY
In order to estimate the latent demand for mid-range wrist watches on a worldwide basis, I used a multi-stage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, I heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a country, city, state, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question. Ignoring, for the moment, exogenous shocks and variations in utility across countries, the aggregate relation between income and consumption has been a central theme in economics. The figure below concisely summarizes one aspect of problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the average propensity to consume would fall. The average propensity to consume is the level of consumption divided by the level of income, or the slope of the line from the origin to the consumption function. He estimated this relationship empirically and found it to be true in the shortrun (mostly based on cross-sectional data). The higher the income, the lower the average 53

propensity to consume. This type of consumption function is labeled 'A' in the figure below (note the rather flat slope of the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-run consumption functions which indicated that the marginal propensity to consume was rather constant (using time series data across countries). This type of consumption function is show as 'B' in the figure below (note the higher slope and zero-zero intercept). The average propensity to consume is constant.

Is it declining or is it constant? A number of other economists, notably Franco Modigliani and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two functions were different using various assumptions on intertemporal budget constraints, savings, and wealth. The shorter the time horizon, the more consumption can depend on wealth (earned in previous years) and business cycles. In the long-run, however, the propensity to consume is more constant. Similarly, in the long run, households, industries or countries with no income eventually have no consumption (wealth is depleted). While the debate surrounding beliefs about how income and consumption are related and interesting, in this study a very particular school of thought is adopted. In particular, we are considering the latent demand for mid-range wrist watches across some 230 countries. The smallest have fewer than 10,000 inhabitants. I assume that all of these counties fall along a 'long-run' aggregate consumption function. This long-run function applies despite some of these countries having wealth, current income dominates the latent demand for mid-range wrist watches. So, latent demand in the long-run has a zero intercept. However, I allow firms to have different propensities to consume (including being on consumption functions with differing slopes, which can account for differences in industrial organization, and end-user preferences).

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Given this overriding philosophy, I will now describe the methodology used to create the latent demand estimates for mid-range wrist watches. Since ICON Group has asked me to apply this methodology to a large number of categories, the rather academic discussion below is general and can be applied to a wide variety of categories, not just mid-range wrist watches. Step 1. Product Definition and Data Collection Any study of latent demand across countries requires that some standard be established to define efficiently served . Having implemented various alternatives and matched these with market outcomes, I have found that the optimal approach is to assume that certain key countries are more likely to be at or near efficiency than others. These countries are given greater weight than others in the estimation of latent demand compared to other countries for which no known data are available. Of the many alternatives, I have found the assumption that the world s highest aggregate income and highest income-per-capita markets reflect the best standards for efficiency . High aggregate income alone is not sufficient (i.e., China has high aggregate income, but low income per capita and can not assumed to be efficient). Aggregate income can be operationalized in a number of ways, including gross domestic product (for industrial categories), or total disposable income (for household categories; population times average income per capita, or number of households times average household income per capita). Brunei, Nauru, Kuwait, and Lichtenstein are examples of countries with high income per capita, but not assumed to be efficient, given low aggregate level of income (or gross domestic product); these countries have, however, high incomes per capita but may not benefit from the efficiencies derived from economies of scale associated with large economies. Only countries with high income per capita and large aggregate income are assumed efficient. This greatly restricts the pool of countries to those in the OECD (Organization for Economic Cooperation and Development), like the United States, or the United Kingdom (which were earlier than other large OECD economies to liberalize their markets).

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The selection of countries is further reduced by the fact that not all countries in the OECD report industry revenues at the category level. Countries that typically have ample data at the aggregate level that meet the efficiency criteria include the United States, the United Kingdom and in some cases France and Germany. Latent demand is therefore estimated using data collected for relatively efficient markets from independent data sources (e.g. Euromonitor, Mintel, Thomson Financial Services, the U.S. Industrial Outlook, the World Resources Institute, the Organization for Economic Cooperation and Development, various agencies from the United Nations, industry trade associations, the International Monetary Fund, and the World Bank). Depending on original data sources used, the definition of mid-range wrist watches is established. In the case of this report, the data were reported at the aggregate level, with no further breakdown or definition. In other words, any potential product or service that might be incorporated within mid-range wrist watches falls under this category. Public sources rarely report data at the disaggregated level in order to protect private information from individual firms that might dominate a specific product-market. These sources will therefore aggregate across components of a category and report only the aggregate to the public. While private data are certainly available, this report only relies on public data at the aggregate level without reliance on the summation of various category components. In other words, this report does not aggregate a number of components to arrive at the whole . Rather, it starts with the whole , and estimates the whole for all countries and the world at large (without needing to know the specific parts that went into the whole in the first place). The industry for mid-range wrist watches includes timepieces designed for men and women to be worn strapped to the wrist and which cost between $99.00 and $999.00. All figures are in a common currency (U.S. dollars, millions) and are not adjusted for inflation (i.e., they are current values). Exchange rates used to convert to U.S. dollars are averages for the year in question. Future exchange rates are assumed to be constant in the future at the current level (the average of the year of this publication s release in 2008).

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Step 2. Filtering and Smoothing Based on the aggregate view of mid-range wrist watches as defined above, data were then collected for as many similar countries as possible for that same definition, at the same level of the value chain. This generates a convenience sample of countries from which comparable figures are available. If the series in question do not reflect the same accounting period, then adjustments are made. In order to eliminate short-term effects of business cycles, the series are smoothed using an 2 year moving average weighting scheme (longer weighting schemes do not substantially change the results). If data are available for a country, but these reflect short-run aberrations due to exogenous shocks (such as would be the case of beef sales in a country stricken with foot and mouth disease), these observations were dropped or 'filtered' from the analysis. Step 3. Filling in Missing Values In some cases, data are available for countries on a sporadic basis. In other cases, data from a country may be available for only one year. From a Bayesian perspective, these observations should be given greatest weight in estimating missing years. Assuming that other factors are held constant, the missing years are extrapolated using changes and growth in aggregate national income. Based on the overriding philosophy of a long-run consumption function (defined earlier), countries which have missing data for any given year, are estimated based on historical dynamics of aggregate income for that country. Step 4. Varying Parameter, Non-linear Estimation Given the data available from the first three steps, the latent demand in additional countries is estimated using a varying-parameter cross-sectionally pooled time series model . Simply stated, the effect of income on latent demand is assumed to be constant across countries unless there is empirical evidence to suggest that this effect varies (i.e., the slope of the income effect is not necessarily same for all countries). This assumption applies across countries along the aggregate consumption function, but also over time 57

(i.e., not all countries are perceived to have the same income growth prospects over time and this effect can vary from country to country as well). Another way of looking at this is to say that latent demand for mid-range wrist watches is more likely to be similar across countries that have similar characteristics in terms of economic development (i.e., African countries will have similar latent demand structures controlling for the income variation across the pool of African countries). This approach is useful across countries for which some notion of non-linearity exists in the aggregate cross-country consumption function. For some categories, however, the reader must realize that the numbers will reflect a country s contribution to global latent demand and may never be realized in the form of local sales. For certain countrycategory combinations this will result in what at first glance will be odd results. For example, the latent demand for the category space vehicles will exist for Togo even though they have no space program. The assumption is that if the economies in these countries did not exist, the world aggregate for these categories would be lower. The share attributed to these countries is based on a proportion of their income (however small) being used to consume the category in question (i.e., perhaps via resellers). Step 5. Fixed-Parameter Linear Estimation Nonlinearities are assumed in cases where filtered data exist along the aggregate consumption function. Because the world consists of more than 200 countries, there will always be those countries, especially toward the bottom of the consumption function, where non-linear estimation is simply not possible. For these countries, equilibrium latent demand is assumed to be perfectly parametric and not a function of wealth (i.e., a country s stock of income), but a function of current income (a country s flow of income). In the long run, if a country has no current income, the latent demand for midrange wrist watches is assumed to approach zero. The assumption is that wealth stocks fall rapidly to zero if flow income falls to zero (i.e., countries which earn low levels of income will not use their savings, in the long run, to demand mid-range wrist watches). In a graphical sense, for low income countries, latent demand approaches zero in a 58

parametric linear fashion with a zero-zero intercept. In this stage of the estimation procedure, low-income countries are assumed to have a latent demand proportional to their income, based on the country closest to it on the aggregate consumption function. Step 6. Aggregation and Benchmarking Based on the models described above, latent demand figures are estimated for all countries of the world, including for the smallest economies. These are then aggregated to get world totals and regional totals. To make the numbers more meaningful, regional and global demand averages are presented. Figures are rounded, so minor inconsistencies may exist across tables. Step 7. Latent Demand Density: Allocating Across Cities With the advent of a borderless world , cities become a more important criteria in

prioritizing markets, as opposed to regions, continents, or countries. This report also covers the world s top 2000 cities. The purpose is to understand the density of demand within a country and the extent to which a city might be used as a point of distribution within its region. From an economic perspective, however, a city does not represent a population within rigid geographical boundaries. To an economist or strategic planner, a city represents an area of dominant influence over markets in adjacent areas. This influence varies from one industry to another, but also from one period of time to another. Similar to country-level data, the reader needs to realize that latent demand allocated to a city may or may not represent real sales. For many items, latent demand is clearly observable in sales, as in the case for food or housing items. Consider, again, the category satellite launch vehicles. Clearly, there are no launch pads in most cities of the world. However, the core benefit of the vehicles (e.g. telecommunications, etc.) is 'consumed' by residents or industries within the worlds cities. Without certain cities, in other words, the world market for satellite launch vehicles would be lower for the world in general. One 59

needs to allocate, therefore, a portion of the worldwide economic demand for launch vehicles to regions, countries and cities. This report takes the broader definition and considers, therefore, a city as a part of the global market. I allocate latent demand across areas of dominant influence based on the relative economic importance of cities within its home country, within its region and across the world total. Not all cities are estimated within each country as demand may be allocated to adjacent areas of influence. Since some cities have higher economic wealth than others within the same country, a city s population is not generally used to allocate latent demand. Rather, the level of economic activity of the city vis--vis others.

Chapter -3 a) Wrist watch business in India

50 million wristwatches are sold in India every year. Not withstanding the presence of global players and the opening up of the market, the Indian market has always been dominated by a single player. In the past, till the late 80s, in the mechanical era, HMT dominated the market. And after that it has again been the domination of a single company, Titan. Today Titan has almost 65% market share of the organized watch market in the country. The organized watch market itself is estimated at 35% of the total industry size...........

In value t watches sold even today

terms the size of the organized market is is less than Rs.1000!!!

estimated at around Rs. 1500 crores, which means that the average price of

Watches are typically segmented into specialist watches and fashion watches. All 60

International watch brands have a clear position as to where they belong. In India most sales are in the fashion segment and this fine distinction has not yet been used by marketers. Male watch buyers far outnumber females and account for around 65% of sales. Students are the largest segment of buyers accounting for approximately 30% of the sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of scope to grow both in value and volume. The jury is still out though whether the Indian companies like Titan will lead this growth or the global majors like Seiko, Citizen etc. After all the domestic players have hitherto grown because of a retail strategy and the wining global players are clearly focused on product. rist Watches form an integral part of the personality of individuals in the present era. Earlier seen as a luxury item, they are now witnessing a fundamental change in perception, and are now gaining respect as an essential utility item. For the watch industry, time seems in its favour what with the liberalization of the Indian market coupled with the rising purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators once upon a time!), and has now left the pioneers far behind or nowhere in market by private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign entities jostling for display space in the smallest of shops selling these products. Before the establishment of HMT as the dominant player in the Indian markets initially, the country was solely dependent on imports to meet the internal demand. However, establishment of HMT as the leading player in the wrist watch segment in the 1960s, changed the scenario.

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In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Frderique Constant, Mont Blanc, Swatch, and many others. Many watch makers have made significant inroads in the industry and others are in the process of establishing themselves, currently.

Besides this, buyers are extremely choosy about the brand and type of wrist watches they wear. Being extremely brand conscious, their tastes have evolved over the years and have gone beyond the realms of durability to choose in terms of aesthetics and elegance. Thus it is a buyers market with multitude of designs that have entered and flooded the market place. The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. The organized sector alone contributes up to 30 percent of this figure, and the rest of the demand is being met by the unorganised grey sector. This data is significant indeed in view of the socio economic distribution of the Indian populace. More than 58 percent of the population is under twenty five and more than 80 percent of the population is below 45 years of age. In dollar terms, the estimated annual market size is around USD 195 million, despite the fact that the penetration of watches is the lowest, compared globally. Looking into this fact and the long standing Indian tradition of comparing watches with jewellery and other traditional items, many watch companies are interested in setting up base in India. The average growth in the size of the market is slated to be around 10 -15 percent per year.

A casual study of the watch market reveals that it is segmented on basis of multiple proportions such as price, benefits and types of watches. The price of the watches is a major motive in the minds of the customer. Accordingly, three 62

segments can be identified here, namely low priced, medium priced, and high priced watches. The lower priced segment consists of watches priced less than INR 500; the medium price range consists of watches in the INR 500-1500 range and the high priced watches come in the INR 1500 upwards range. There are other higher categories as well such as the premium and luxury range, but they appeal to only a small category of the watch market in India. According to a recent study, more than 90 percent of the watches were from the lower price ranges with international costs being less than 20 euros. Moreover, around 20 to 25 watches are being sold for every 1000 citizens. Thus there is enormous potential for growth of the industry in this untapped segment. Some customers look out for features like fashion appeal, technology, sophistication and status. Others go for durability, economy and precision.

Many customers prefer mechanical and automatic watches, while others prefer quartz watches. Newer segments are also on rise such as ladies watches, childrens watches and gents watches. Customers usually base their preferences and buying decisions on a variety of factors like price, durability, utility, aesthetic appeal and brand name. A combination of all these points ultimately forms the customers buying decision that translates into the purchase of a watch. The retail sector has just begun to boom in India. Since the early 1990s, Indian customers are relying more on departmental stores and shopping malls to purchase their wants and needs. This has come as a boon for watch manufacturers and dealers, who are now looking forward to utilize these new outlets to reach out to the Indian masses. Watch manufacturers are looking at a suitable mix to market their products ranging from exclusive retail outlets to display sections in malls and large departmental stores. 63

In the end, though India is still considered to be a difficult market to penetrate, due to reasons like price sensitiveness and its largely unorganized sector. However, with the right planning and the right partners and experienced collaborators, it is expected that both international and domestic watch manufacturers will do well in the Indian markets.

9. MY EXPERIENCE
It was a great learning experience. I interacted with different highly intellectual person and they taught me a lot of practical knowledge of marketing department along with the sales department. People working there are very much cooperative and helpful and like very much there by getting training. Now the marketing department is very much focus towards the proper marketing of MTNL product and services. As my training was divided into different department. First it was with publicity department I had a great experience of sitting in the canopy and interacting directly with the customers. While working for the two months in the real corporate world, I am able to learn about the working of the government organization. I have learned about the working of government employees. I must appreciate the management of MTNL who has helped me learning the business procedure of MTNL. After working for these two months much of my hesitation is removed in talking with the people. I did hesitate in talking with the people for the first time but after talking with so many people in my summer training much of my hesitation has been removed. My patience level has been increased after working for these two months because whenever I had a query I just wait up till the MTNLemployee get free to listen my query. My guide Mr.SHRI RAM SINGH is avery experiencedand intellectual person and he is going to retire very soon. He supported me a lot and taught me a lot of things. My training was divided into different segment. First week was with publicity department and the second week was with the media department and the third week was with the out door publicity department and the rest eight weeks was with DGM sales where I sold some 3G sims with him.

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11. FINDINGS AND LIMITATIONS This project given to me by was a wonderful experience of mine with the world around. I tried my level best to get up with the project. My Project was the marketing strategy of MTNL. In this that I have to know about the various features of the other company because in this I have to present the best service provider comparison to other company in front of the customer so I have to need to know about the various features of the company. Limitation of the Project: Every project has some limitations. I too faced large no of difficulties while going through the project. Some of them are as follow:y Very first difficulty that I face searching the customer for purchasing the 3G connection. y It was not easy to get the rates of different services as it varies from time to time and place to place like that in case per minute outgoing call. y And lastly time was the limit for the project given.

12. SUGGESTIONS
While the Indian telecom industry is experiencing high growth and private sector operators are posting impressive results. The performance of the MTNL continues to decline. As state owned entities, it gets preferential treatment from the government. Nevertheless, it fail to take advantage of such a treatment. One of the recent examples is dismal uptake of 3G service launched by it, despite being the only operators in India with 3G spectrum.

Speculations around divestment in this company and its merger have been rife for many years. While the current government has not expressed any intention to further divest in 65

MTNL, it has renewed its efforts to divest 10% stake in BSNL. The government plans to explore a possibility of merging BSNL and MTNL after divestment in the former is completed. BSNLs management and the government believe that divestment will help the company raise capital required for its long-term growth and turn around. BSNL has also laid-out a strategy to reverse the companys declining performance. However, cure of these companies malaise require different medicine.

Political intervention, a bureaucratic culture and pre-liberalization mindset are the root causes for MTNLs poor performance. The inadequacy of a divestment solution to address these weaknesses is evidenced in the case of MTNL, which has been a listed company for many years but nonetheless continues to see declining performance. Potential investors would need control over management and decision-making in order to turn these companies around, which is impossible while the government owns a majority stake. Privatization will provide potential investors the required control. Even with such a control, the challenge to transform BSNL and MTNL from state owned sick companies into customer centric service providers will be daunting.

13.CONCLUSION
As per my project I have to sale the service of the airtel on this I have to know about the different services provided by the other company because if I am not know the service than I cant tell him that Airtel is best . Every customer want more service in lesser price so market is depend upon the VAS (value added service), here first of all it is clear upto now that the value added services provided by different mobile user are same to the great extent. There is not much variation among these services.

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WORD OF THANKS
At the end I thank to all those persons who have directly or indirectly helped me to complete this project successfully without whose cooperation it was not possible to complete the project due to various constraints. I thank to all those readers who will study this project in the future. We welcome any type of suggestions or comments from the readers at hareramkumar123@gmail.com. Thanking you Hareram Kumar PGDBM (15033) Ishan Institute of Management And Technology

14. BIBLIOGRAPHY
BOOKS REFFERED:

Kotler, Phillip, Marketing Management, 13th Edition, Prentice Hall of India, 2002 Beri, G.C., Marketing Research, 3rd Edition, Tata McGraw Hill Publication Kothari, R.C. , Research Methodology

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Bhagwati & Pillai, Management Accounting, Second Edition, S. Chand & Company ltd.

Bhagwati & Pillai, Statistics for management, Second Edition, S. Chand & Company ltd.

WEBSITE REFFERED: www.google.com www.trai.gov.in www.bol.net www.mtnl.com www.tataindicom.com www.vodafone.co.in www.reliance.com www.ideacellular.com

y y y y y y y y

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