Homework Title/No.

: Homework 1____________ Course Code: MGT 699_______________

Course Instructor: Dr. Rajesh Verma_____ Course Tutor (if

applicable):____________________

Date of Allotment: 08/22/2010_______________ : Date of submission: 08/30/2010__________

Student’s Roll No.: RQ1903A17, RQ1902A21 ______Section No.: Q1903 and Q1902______

Declaration:
I declare that this assignment is my individual work. I have not copied from any other
student’s work or from any other source except where due acknowledgment is made explicitly in the
text, nor has any part been written for me by another person.

Student’s Signature: ________________________

_________________________

Evaluator’s comments:
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
_________

Marks obtained: ___________ out of _________________

Titan

Titan Industries is world’s fifth largest and India's leading manufacturer of watches. The
company has manufactured more than a 100 million watches till date; and has a customer base of over
80 million. The umbrella brand Titan is one of India's leading watch brands that brought about a
paradigm shift in the Indian watch market, offering quartz technology with international styling.
Today, the Titan portfolio has over 60% of the domestic market share in the organised watch market.
Thu, Titan proves to be the Market Leader. The company has 247 exclusive showrooms christened
World of Titan', making it amongst the largest chains in its category backed by 700 after sales service
centres. The company has a world−class design studio that constantly invents new trends in wrist
watches.

Fast Track:

Fastrack was launched as sporty sub-brand of titan in 1998. As an independent brand, its
establishment was done in 2005. The target of these watches was the youth market of Urban India.
Being affordable and attractive, Fastrack emerged as a successful brand and sooner jumped into eye-
wears market also. Now, it is the largest Sun-glass brand of the country. Now, fresh entry has been
made by Fastrack into Handbags, Belts, Wallets, Wristbands and other Fashion Accessories.

Here we are to consider Fastrack as a Wrist-watch brand only.

Market:

The size of the watch market currently is estimated to be around 40 to 45 million pieces
annually. The average growth in the size of the market is slated to be around 10 -15% per year. Still,
the penetration of watches is not more than 2.5% (as approximately 25 watches are being sold after
1000 citizens). On this penetration, the industry size is around 2000 crore. Many times, growth rate is
single digit rather than 10-15%. The watch market has affected highly with the penetration of Mobile
Phones, as Mobile has taken place of a time-keeping machine. Now, the use of a wrist watch is not
timekeeping, but style, fashion and physical appearance. More than 58 percent of the customers are
under twenty five and more than 80 percent are below 45 years of age.

Segment:

The target segment of Fastrack brand is low age office-going people and the youth, having
purchasing power, lies between 15-25 years age. According to survey by Fastrack itself in 2005,
youth between 11 and 20 years account for 42 per cent of the overall watch buying. The average
spending of a youth on his health and accessories is around 1000 per month, as it has decreased from
last year (2009). In such category, a boy spends more than a girl on his looks and appearance.
Strategies:

Often, watches are taken as one-time purchase goods, Fastrack is the first company to
promote the Multiple Watch concept, by promoting, “How many you have...?” Fastrack has used the
design and style to attract its customers. Pricing has been done very attractively, from 500 to 5000.
Giving stylish Branded watch for 500 has attracted customers much, where competitors have an
average price of 4500 for the same. Fastrack has used John Abraham, a youth icon, for promotions.

Competitor

Timex

However, Timex has a joint-venture with Titan for production, as an independent Brand,
Timex is a big competitor for Fastrack Brand. It covers the segments Kids, Youth, Fashion and
Sporty, same as Fastrack is doing. The pricing does not have much difference, as a Timex RETRO
watch costs around Rs. 500. Timex provides its ranges from Rs. 500 to 5500. Moreover, it has a
perception of being a US brand in the minds of Customers. Timex messages its customers with “Keep
on Dashing. Keep on Pushing. Keep on Daring” statements. Timex lacks in having a different
marketing strategy for Indian customers. Timex has already covered 22% share of Indian Wrist watch
Market, but in Fastrack segments, it is far behind yet. Titan has taken more than 40% of the wrist
watch market, where youth, fashion and sporty segments have been covered 60% by Fastrack.

Positioning statement

For style loving, smart youth

Fastrack is the premium stylish wrist watch,

Which gives sporty look and style.

Because of its gorgeous design, Appeal and Brand.