Fastrack Mps

8/2/2019 Fastrack Mps

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Indian watch industry


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Wrist 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.

Indian watches market was for long dominated by public

sector organizations like Hindustan Machine Tools Ltd.


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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 theindustry and others are in the process of establishing

themselves, currently.


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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.


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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 % & the other

70 % is contributed by the unorganized grey

sector. In dollar terms, the estimatedannual market size is around USD 195 million,

despite the fact that the penetration

of watches is the lowest, compared globally.

The average growth in the size of the

market is slated to be around 10 -15 percent

per year.

The size of the watch market in India currently is estimated

to be around 40 to 45 million pieces annually.

The organized sector alone contributes up to 30 % & theother 70 % is contributed by the unorganized grey sector.

In dollar terms, the estimated annual market size is around

USD 195 million, despite the fact that the penetrationof watches is the lowest, compared globally.

The average growth in the size of the market is slated to be

around 10 -15 percent per year.


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Titan Industry


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Titan Industries is the world's fifth largest and India's

leading manufacturer of watches.

The company has manufactured more than a 100 millionwatches 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.


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The brand Titan is committed to offering its consumers

watches that represent the compass of their imagination.

Titan's customers are therefore consistently introduced to

exciting new collections, which connect, with various facets

of their deeprooted yearnings for self-expression.

The new brand philosophy of Titan, encapsulated in the

words "Be More", touches this as well as all other aspects of

the brand.


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The Titan brand architecture comprises several collection

and subbrands, each of which is a leader in its segment.

Notable among them are:

Titan EDGE

Titan Raga

Titan Nebula

Titan Heritage

Titan Ragalia

Titan Octane Titan WWF

Titan Fastrack

Titan Sonata


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Today, the Titan portfolio has over 60% of the domestic

market share in the organized watch market.

The company has 24X7 exclusive showrooms christened

World of Titan', making it amongst the largest chains in its

category backed by 700 aftersalesservice centers.

The company has a worldclass design studio that

constantly invents new trends in wrist watches.


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Background Of Fastrack


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Timex had entered the Indian market through a joint

venture with Titan and which was their offering for the

youth market.

When that JV broke off in 1997 and Timex went

independent,

there was a gap in Titans portfolio and it only made senseto fill that need through their offering.

Fastrack was launched as a range of watch ware under Titan

and was called Titan Fastrack.


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Subsequently, it grew from a range

to a sub-brand, where Titan was

upfront in the logo and the

association was strong.

They used the jazzy version of the

Mozart tune, which is Titans

signature tune. So, the link with

Titan was very strong.

When they launched, they targetedpredominantly the early jobber 23-

30 year-old male executive. It was

only a year or two later that they

launched a line for women.


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Re-launch Of Fastrack


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They took off and did well in the start but started stagnating

in 2001-2003, and thats when they went for a reality check.

Titan had simultaneously launched the steel collection,whichwas an attempt to contemporize for a Titan audience.

But what was happening was the collection in terms of

looks, price point and consumer buying behaviour was very

similar to Fastrack, including advertising.

The parent brand needed to continue in its endeavor tokeep it contemporary and hence repositioned Fastrack to

younger audience in sub-25 range.


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Awareness of Fastrack was very low and was linked to Titan.

There was no independent identity. Research had also

shown that the fact that it had the backing of Titan was a

positive assurance.

However, kids didnt like to be serious and sober like their

parents. Fastrack needed to break away and hence changed

the logo to bring in a youthful, spontaneous, energetic and

fun identity and also removed Titan from the upfront

association in the logo.

They however, kept it at the bottom, saying its a Titan

product. This helped carry the assurance of the trusted Titan

brand. They also stopped using the Mozart tune in

advertising.


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Fastrack was launched with new products, a new identity,

new advertising and a new logo in June 2005.

The year took off so well that they ran out of stock very

quickly and ended the year with a 150 per cent growth and

the demand was growing continuously.

Next year, they recorded another 100 per cent growth.


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When re-launch was started, Fastrack brand was worth

about Rs 29 crore but however they have grown almost ten

times of that over the last three years.

Fastrack has a presence in over 6000 outlets across 800

towns, with new exclusive brand kiosks in Metro Malls andits multichannel distribution network which covers the 228

strong World of Titan Network, 122 Large Format Chain

stores viz. Shoppers Stop, Lifestyle, Central, Westside,

Pantaloons and Multibrand watch & optical outlets.


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Fastrack is actually among the few brands where people

come asking for the brand. They have adopted a fashion

based strategy, where they launch about 3-4 collections in a

year in both categories. Collection-based strategy hashelped them very well.

It has been twin approach of constantly innovating on

product design, yet being affordable, and to reach out to

consumers in a language that connects to them that led to

their success.

Its not your typical fashion brand talking down saying you

must look cool and you must look like me. With their

advertising, they were able to relate to the youth in a setting

they were familiar with.


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Fastrack, in its journey to being a fashion accessories brand

has expanded its portfolio to now include not just watches

and sunglasses but bags, belts, wallets and wristbands too.

With this, it now has enough categories to open a fashion

accessories storeand thats just what theyve done!


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SWOT Analysis


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STRENGTHS :

Goodwill in the market

Strong financial position

Fast changing designs


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WEAKNESS :

Short cycle products which are expensive to make

Weak channel of communication

Lack of exclusive stores


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OPPORTUNITIES :

Rapid market growth

Changing customer needs

To create relation between society on social marketing

basis


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THREATS :

Tough competition in watches

Low profit margins

New competition in market


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STP Analysis


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Segmentation

G hi


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Geographic

Continent- Asia

Country- India

Size/ population- India- 13,782,976

Demographic

Age- 15-25 , 25-30 , 30 above Gender- Male & Female

Income- 10000-20000 , 20000-30000 , 30,000 above

Occupation- students , young executives , graduate and

post- graduate students , journalists , sports athletes


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Psychographic

Activities- basketball , swimming , dancing , acting ,

gymming , gaming

Interest- socializing, reading, painting, travelling ,

adventure

sports , theatre,cars/bikes , gadgets , music

Opinions- intellectual , reasoning talk , opinionated

Personality- ambitious


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Behavioural

Benefit sought- quality, looks/style, durability

Usage rate- heavy, moderate, light

User status- regular, potential, first time user, irregular,occasional

Brand loyalty- split loyal, shifting, switches

Readiness to buy-aware , neutral

Occasion- birthdays, anniversary, festivals, gifting


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Targeting


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Fastrack has products caters to the products in all the

segments.

The range of Fastrack watches is from Rs. 500 to Rs.4000.

Hence it is catering to all the three segments of low, medium

and highly priced segments. However more emphasis is laidon medium and high priced segments.

Collection Price Range


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Collection Price Range

SPORT 2000-4000

ARMY 2000-3500

ADVENTURE 1000-2000BIKERS 1500-3500

GRUNGE 1000-2500

ALUMINIUM 500-1000

COLOUR PLAY 1000-2000

DIGITAL FASHION 500-2000

ESSENTIALS 1000-2500

PARTY 1500-3000PAIRS 3000-3500

NEON 1000-2500

NEON DISC 500-1500

XY 1500-3000


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On demographic grounds :

Fastrack watches were launched to cater to the needs of

youth at first.

However it introduced watches for kids also later on. Hence

it is targeting both youth and kids segments.

Collection Target


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Collection Target

SPORT MEN

ARMY BOTH MEN & WOMAN

ADVENTURE BOTH MEN & WOMANBIKERS BOTH MEN & WOMAN

GRUNGE BOTH MEN & WOMAN

ALUMINIUM WOMAN

COLOUR PLAY WOMAN

DIGITAL FASHION BOTH MEN & WOMAN

ESSENTIALS BOTH MEN & WOMAN

PARTY BOTH MEN & WOMANPAIRS PAIRS

NEON MEN

NEON DISC MEN

XY BOTH MEN & WOMAN


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Positioning


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Fastrack positions itself as both trendy and affordable range.

These two attributes were usually considered as two poles

wide apart.

Fastrack has taken the challenge of combining both the

features to offer a greater value proportion to its customers.


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Consumer Buying Behaviour


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CULTURAL FACTORS :

In India, Titan ahead of all other brands as the Most

Admired Brand in India across all product categories.

It was also a fitting tribute to a brand, which had not only

revolutionised the Indian watch industry, but also brought inworld-class benchmarks in product design, quality and

retailing into India.

In 1998, it was Fastrack, the cool, trendy, funky range for theyoung and young-at-heart. Since Indian population has

positive outlook for titan it has influenced the behavior of

younger generation who are variety seeking.


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SOCIAL CLASS :

The age and stage of individual has a major influence on thebuying behaviour of consumer.

The youth in the range of age of fifteen years to mid thirties

are generally attracted to the watches.

Friends and their peer group has a major influence on the

purchase decisions of the youth.

ECONOMIC CIRCUMSTANCES:


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ECONOMIC CIRCUMSTANCES:

Economic circumstances do not play a major role in opting

for Fastrack watches because the target segment is youthand it offers an affordable range.

LIFESTYLE :

A Fastrack watch generally attracts people with affluent

lifestyle who are fashion conscious.

For Fastrack watches traits like Excitement and ruggednesscan be attributed.

Excitement includes imaginative and being up to date while

ruggedness sports outdoorsy and tough.


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Buying Decision Process

PROBLEM RECOGNITION


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PROBLEM RECOGNITION:

The buyer first and foremost identifies the reason

Why he or she wants a particular product.

In the case of Fastrack watches the need is

triggered by both internal and external stimuli.

Internal stimuli are the need to keep track of time

while external stimuli are because of the peer

group who are using the watch.

In the surveys conducted many of them have

responded that it as either a necessity or an

accessory.

INFORMATION SEARCH


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INFORMATION SEARCH:

In order to reach a large audience

Fastrack employs a number ofadvertising and promotional campaigns.

Fastrack has roped in John Abraham as

brand ambassador of the product at the

beginning to portray the sporty nature of

the brand.

The company has also roped in Aamir

khan for army collection. The company

uses youth icons to portray the trendy

looks of the watches.

l d i i l i i i di d


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It also advertises aggressively in internet, print media and

television.

Therefore its quite easy on the part of consumers to makean informed decision regarding Fastrack watches by

collecting data from various sources of mass media and from

family, friends etc.

In the surveys conducted majority have responded that

television and print media have major influence on their

purchase decisions.

EVALUATION OF ALTERNATIVES:


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EVALUATION OF ALTERNATIVES:

A consumer then evaluates various

alternatives based on the needs andinformation available to him.

Fastrack through its variety of variants is

able to satisfy a number of needs of theconsumers.

Fastrack which is always perceived as

trendy and affordable watch has an edge

over its competitors.Hence Fastrack is one

of the best alternatives who are looking for

a trendy yet affordable watch

PURCHASE DECISION


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PURCHASE DECISION:

There is a strong preference of Fastrack brand among

youth in both middle and upper.

It would involve other sub decisions like timing, payment

method.

All the Branded stores and shopping malls would be offering

flexible payments methods and flexible timings.

In the surveys conducted it is observed that consumers

preferred to buy the watches majorly in branded stores and

shopping malls.


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POST PURCHASE BEHAVIOR:

Since Fastrack has been able to deliver value for money and

satisfy the needs of consumers, it has been able to build a

brand image for itself and win the loyalty of consumers.

Hence many of the respondents have responded to not onlybuy the Fastrack watch once again bit also to recommend

the brand to their friends and colleagues.


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4Ps of Fastrack


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Product


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QUALITY :

Fastrack is sub brand of Titan and Titan is well known for its

quality. Even though Fastrack is brand created targeting

medium range and low range segment, high quality is

provided to customers.

FEATURES :


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FEATURES :

Fastrack is well known for its features, it has come up with

several variants and features which suits the choices andtastes of different consumers.

PRODUCT VARIETY ( DESIGN AND STYLE) :


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PRODUCT VARIETY ( DESIGN AND STYLE) :

Fastrack is specially designed for youth. Its design and style

and variants are the key to the success of the brand. Theseveral variants they have come up with are :

Sport

Army Adventure

Bikers

Color play

Hiphop

Neon

Neon disc

xy


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PACKAGING :

Fastrack has came up with new and contemporary packaging

for its watches which attracts youth.

SERVICES & WARRANTY


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SERVICES & WARRANTY :

Fastrack provides warranty of one year on all its watch

range. After sales services are available on all Fastrack and

Titan showrooms.


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Product Life cycle

Fastrack is in growth stage now as it is marking rapid climb


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Fastrack is in growth stage now as it is marking rapid climb

in sales. Early adaptors like the product and the additional

customers start buying the product. The company

continuously coming up with new features and variantskeeping the brand moving forward satisfying tastes and

needs of different customers

Levels Of Product :


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Levels Of Product :

Core product : Satisfying purpose of keeping track on time

Actual product : Fastrack watch

Expected product : Product with brand value and image

Augmented product : Warranty, after sales service, design ,

packaging.


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Promotion


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TVC :

Most of the Fastrack TVC advertisements were dominated

by youth and youth representing brand ambassadors likeJohn Abraham, Genelia and Virat Kohli.

Some of the popular Fastrack advertisements are

discussed below:

Yes Sir Ad :

A teacher was taking attendance,

A boy responses his roll by raising his hand Girls get obsessed by looking at the watch worn by that

boy Which has the message that this watch on your wrist

makes you more stylish?


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How many you ha

Creative Advertising :


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Creative Advertising :

From Titan Fastrack where fashionable jeweller was a gift on

purchase of any Fastrack watch. This jewellery set of apendant and earrings is contemporary and unique in form

and material, with steel and acrylic being used together for

stunning effect. This was launched for Valentines Day where

the name scheme, The watch being advertised for (Fast

track) as it pertains to the youth, jewellery (for the youth),

valentines day (more so for the youth) and adding to the

excitement is a limited edition FASTRACK VALENTINE'SCOLLECTION that is being made available in four designs.

Only 300 watches of each design will be on sale across cities

during this fortnight.

These watches are designed is steel with leather straps in


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the colours of the season black, red and silver. The dials

are in matched colours with heart patterns, making the

collection a true blend of fashion and romance. "Youngcouples are looking for new ways to discover their

relationships and this set of special watches and matching

jewellery from Fastrack, gives them just the reason to do so.

The promotion was in Mumbai, Delhi, Pune and Bangalorefrom Feb 114.

POSTER AD :


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FASTRACK WEBSITE PROMOTION :


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FASTRACK WEBSITE PROMOTION :

Fastrack website is the tool they used to attract the youth,

the pictures displayed on the website creates curiosity andinterest towards the product.


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SALES PROMOTION :


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Fastrack always come up with sales promotion during

festival seasons and special locations. They provide 20% -40% discounts on all its watch ranges.

BRAND AMBASSADOR :


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BRAND AMBASSADOR :

Brand Ambassadors for the Fastrack watch are Virat Kohli,

Genelia D Souza, John Ambassador to appeal to youth.

OUTDOOR ADVERTISING :


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The billboard advertising is very popular

however has to be really terse and catchy inorder to grab the attention of the passers by.

Fastrack billboards can be found put up all over

Delhi especially at places like the north campusuniversity area on the main road which the

company knows that it is a youth centric area

and since that is their target segment it puts up

there. The brand also does trade shows during

the festival area which a key rule to their

promotional strategy through which hey engage

the youth and make them aware of the brand.

PUBLIC RELATIONS :


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Fastrack one of the few companies in India

to take the lead on embracing PR 2.0.Fastrack has come out with the Fastrack

social media news room for bloggers.

They are using the newsroom to shareinformation and news on Fastrack. It also

features social media press releases (Bikers

and Neon Disk), Flicker streams of Fastrack

gears, social bookmarking buttons, videos,media coverage, product and company

information, spokesperson profile, RSS

feeds, and more.

For the consumers, Fastrack has launched two Facebook


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,

groups called Life on Fastrack and Bikers on the Fastrack,

which have 121 and 71 members already, as on yesterday.

The groups have attracted so many people in such a shorttime.

Fastrack main site not the usual corporate stiffness but an

attractive and very consumer oriented featuring contests,

fun stuff, opinion polls among others. They plan to follow up

with a Twitter part as well.

It has launched MyExBox, an online campaign where users


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can post videos that communicate. The month long online

campaign is based on the Fastrackstheme Move On and

encourages users to vent the reasons why they had to dumpsomeone or something and move on. According to the

company, the most viewed video of the week wins Fastrack

Merchandise and also a chance to get featured in a Fastrack

TV commercial. This makes the campaign go viral as usersshare the videos with their friends to get more views.

AIDA COMMUNICATION MODEL :


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AIDA is a communication model which can be used by firms

to aid them in selling their product or services. AIDA is anAcronym for Attention, Interest, Desire, and Action. When a

product is launched the first goal is to grab attention and

that is what fastrack did by introducing a mid price range of

watches for the youth which were affordable as well ascreated a fashion statement for the youngsters

Once we grab attention we held Interest, through promoting

b i i k hli d li d b d


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by getting virat kohli and genelia dsouza as brand

ambassadors and coming up with new ranges every half

yearly. The third stage is desire, to make the productdesirable to the consumer which was done by introducing

new accessories by the brand like it introduced bags belts

wristbands and sunglasses at the nominal price range .The

final stage is the purchase action, and the company has beensuccessful with its strategy and the target customer has

purchase the product.


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Price

Titan have watches like sonata to cover the lower level


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income segment people and titan raga, octane, xylus to

target higher segment people but they didnt had any

watches to cover the youth market which is in flourish nowbecause more than 50% of population is youth, so they

came up with fastrack to cover this segment and they are

trying to cover the market share in youth sector and actually

they are successful also because they cover 37% of 50% ofyouth population.

PRICING OBJECTIVE :


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PRICING OBJECTIVE :

The pricing strategy adopted by Fastrack is market share

maximization as they are targeting people with affordablecost range

They have watches from the range of 499 to more than

4000,so that they can attract customers of lower segment to

higher segment and this clearly shows that they are into

capturing more of the market share than making profit or

other strategies.

DISCOUNTS :


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Fastrack always come up with discount offers at auspicious

occasions to capture more market.

They also provide exchange offers, when old watch is

replaced by new watch they provide a discount upto 40%.

PRICING CUES :


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Fastrack follows odd pricing strategy and ends the price with

5 . So people perceive the price as low as people in Indiatend to read from left to right


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Place

Fastrack is a product that u can find everywhere because of

its parent company Titan Titan have already build the


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its parent company Titan. Titan have already build the

channels in the form of exclusive stores and outlets so

fastrack products are also made available in those storesand later they established their own exclusive store of

fastrack where all range of fastrack watches are available

and these exclusive showrooms are present only in some

cites while in other places they are being sold through theoutlets of Titan.

PARALLEL DISTRIBUTION :


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Fastrack follow parallel distribution network


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It sells watches online through direct marketing

It sells through factory outlets like Fastrack store & World

of Titan.

It sells its products in major chains like bigbaazar, citycentral etc.

It sells through retail outlets ( watch shops , gift shops)

Fastracks supply chain in mostly concentrated on Tier-1 and


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pp y y

Tier-2 cities as youth in urban cities look for style and

branded products when compared to youth in rural and

under developed areas. In tier-1 and tier-2 cities fastrackhave a huge supply chain to make products available in each

and every corner of the city.

REFERENCES :


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www.fastrack.in

http://en.wikipedia.org/wiki/Titan_Industries

Our Special thanks to Bindu Mam for providing this
http://www.fastrack.in/http://en.wikipedia.org/wiki/Titan_Industrieshttp://en.wikipedia.org/wiki/Titan_Industrieshttp://www.fastrack.in/


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wonderful opportunity to do intense research on product.

With regards,

Srikanthbabu Katragadda (FK-2231)

Ravindra Kumar Misra (FK-2352)Ammireddy Kovvuri (FN-184)

Anju (FK-2334)

Fastrack Mps

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