PPBM Exercise Fastrack brand Extension
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Group VI Product Policy & Brand Management Exercise II : Studying brand Extension by Fastrack Thursday, 23 February 2012 MEEMANSA VAJPAYEE | AYUSHI AGRAWAL | PUNYATA TULI MANGESH PATIL | ARJUN RAO | MAHTAAB KAJLA
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Product Policy & Brand ManagementExercise II : Studying brand Extension by FastrackThursday, 23 February 2012Group VIMEEMANSA VAJPAYEE | AYUSHI AGRAWAL | PUNYATA TULI MANGESH PATIL | ARJUN RAO | MAHTAAB KAJLAFlow of PresentationFastrack – The brandIdentifying Opportunity for Brand ExtensionBrand – Product MatrixBrand Equity post Brand ExtensionBrand Equity of the Original ProductBrand Extension TimelineBrand Creation and buildingPage 2Product Policy & Brand Manageme
Transcript of PPBM Exercise Fastrack brand Extension
Group VI
Product Policy & Brand
Management Exercise II : Studying brand Extension by
Fastrack
Thursday, 23 February 2012
MEEMANSA VAJPAYEE | AYUSHI AGRAWAL | PUNYATA TULI MANGESH PATIL | ARJUN RAO | MAHTAAB KAJLA
Page 2
Flow of Presentation
Fastrack – The brand
Brand Equity of the Original
Product
Brand Extension Timeline
Identifying Opportunity for Brand
Extension
Brand – Product Matrix
Brand Creation and building
Brand Equity post Brand Extension
Product Policy & Brand Management| Fast Track
Product Policy & Brand Management| Fast Track Page 3
Fastrack – The brand
Launched as a sub-brand of Titan in 1997 to address the youth segment for wrist watches
Target segment initially identified as college-goers later changed to young executives as college-goers perceived to have low disposable income
Focus on functional and stylish design of watches Mid-price range Target segment again changed to college-going youth in 2000; product category named
as “Wrist-wear” to highlight style aspect rather than functionality Brand extended to “Eye-wear” in 2004 Brand extended to “Youth accessories” with wrist-wear, eye-wear, bags, belts and
wallets in 2007 Independent retail stores opened under Fastrack brand name
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Brand Equity of the Original Product (Fastrack Wrist Watches)
Product Policy & Brand Management| Fast Track
Brand Elements • Name: Fastrack • Highlights contemporary,
modern, fast moving and youthfulness
Slogan: “Cool watches from Titan” • An attempt to build on
the strong brand name of Titan targeting the youth
Spokespeople • No celebrity
endorsement for the initial brand. However John Abraham was made the brand ambassador after launch of eyegear
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Brand Equity of the Original Product (Fastrack Wrist Watches)
Product Policy & Brand Management| Fast Track
Moderate Brand loyalty
Social Approval Fun Excitement Age group – Youth –>15-25 College wear, Gifting, Parties, Regular use Personality - Modern, Values -fashionable and trendy
Brand Positioning
Good Quality Good Style and Design Initially priced Higher
Brand Superiority Brand Credibility Brand Consideration
High Awareness – Good Depth and Breadth of Awareness
Brand Performance Saw surge of growth at launch and in first 2 years. Grew from 15 Cr to 23 Cr revenues p.a.
Growth stagnated post 2002 at 20-24 Cr p.a.
Page 6
Identifying Opportunity for Brand Extension
In 2004, Fastrack ventured into Sunglasses category as an extension to watches
Identified Cellphones, deodorants, sports shoes, sunglasses and handbags were most popular accessories for youngsters
Decided on eye wear as Fastrack was addressing the same consumer for both watches and sunglasses because both products are about style and not function
Product Policy & Brand Management| Fast Track
The eyewear market in India at the time was skewed – premium segment had players like Rayban, and low end segment was unbranded
Fastrack decided to fill it, launching its branded sunglasses at a middle price level: Rs 695- 1,895 a pair
Brand extension has also helped the cause of the mother brand, helping Fastrack gain more visibility and creating more distribution options
The extension towards accessories like belts, bags and wristband was induced by same motivation
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Brand Extension Timeline
Product Policy & Brand Management| Fast Track
Repositioned as brand for the youth – “cool watched from Titan” Portrayed as a sub-brand of Titan
Fastrack as parent brand Launches category extension into eye wear Positioned as a brand for ‘youth gear’
1998
Using Line Extensions such as “Masala wear”, “disco wear” to launch new designs across all product lines
Further Category extension into bags, wrist bands and belts under parent brand name – Fastrack - Positioned as youth accessory brand - Retail outlets to support brand extension
Further Line Extensions such as “Neon wear”, “Army collection” to launch new designs across all product lines
2010 2004 2005 2009 2008 2011
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Brand – Product Matrix
Product Policy & Brand Management| Fast Track
Product 1 Product 2 Product 3 Product 4 Product 5
Watches Sunglasses Belts Bags Wrist bands
Neon disco Range
Army Collection
Bikers Collection
Denim
Category Extensions Different categories for same market segment
Broader positioning of parent brand as a “youth accessory brand”
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Brand Creation and building
Product Policy & Brand Management| Fast Track
Single category Watches and Eye Gear Category Multi-category: Youth Accessories
Positioning “Cool watches from Titan” Focus on functionality, affordability, design
“How many do you have?” Portrayed as a fun, quirky brand for youth
“Move On” Portrayed as a fun, quirky brand for youth
TG SEC A,B College- going youth
Rationale Direct positioning for the youth – college going, SEC A,B
Breaking the myth of ownership of a single watch/ eye wear
Addressing identified youth psychology of experimentation
Communication (Promotions)
Advertising focusing on functional benefits and design aspects
Different campaigns to promote several line extensions such as Biker Collection, Army Collection, etc Umbrella campaign to highlight the positioning, attractive pricing
Brand ambassadors – Genelia D’Souza and Virat Kohli as college students in various situations Quirky advertising
Place Titan Outlets Fastrack retail stores
Packaging Colorful, unique packaging attractive to the youth
Price Mid range pricing Different product lines catering to different price segments: Rs. 500- 1000: Denim Rs. 1000-2000: Army
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Performance of Fastrack post Brand extension
Product Policy & Brand Management| Fast Track
Financial performance
Before 2004:
Stagnated revenues around 20 Cr p.a.
Category extension into Eye Gear:
Revenue jumped to 75 Cr p.a.
CAGR of 50%
Category Extension into bags, Belts, wallets, etc:
Revenues growing at greater than 50%
Expected to be 500Cr Business by 2012
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Brand Equity post Brand Extension
Product Policy & Brand Management| Fast Track
Perceived to be a “brand for me” Medium brand loyalty
Feelings: High consideration for purchase Judgment: High credibility Rightly priced products Imagery: Brand association with fashionable, youthful, spontaneous, fun Performance: Perceived to be a high on style, average on sturdiness
High aided recall as a Watch, Eye wear and Bag brand for youth Low recall as a belt, wallet brand
Brand Performance Perceived Fit: Value Proposition – Cool watches from Titan Cool youth Accessories from Fastrack Technical Skill – Design and styling expertise for the particular target market Edge – Unique positioning in the youth segment, no competition; bundling of similar products to create umbrella sub-brands and campaigns
Page 12
Q & A
Product Policy & Brand Management| Fast Track
