2012

Fastrack: T-shirt
Research Design for Category Extension
Brand Management | Group: 9

Aglawe Manish Ranjeet 2011PGP518 | Koli Ramdas Rahulkumar 2011PGP692 | KapolSarkar 2011PGP680 | Rohit Arvind 2011PGP828

Rohit Arvind 2011PGP828

About Fastrack
Fastrack was born in the year 1998 as a sub brand of Titan and was initially known as Titan Fastrack. The aim of Fastrack was to endeavour in the branded market segment which was mainly dominated by international brands like Ray-ban, Citizen, Swatch, Casio and Timex. International brand and caved as a niche segment in the youth accessories of watches and sunglasses. From the initial days itself Fastrack has targeted the generation next of India. Fastrack is positioned as the ultimate fashion accessory for accessory for the youth in variety, multiplicity and constant excitement for each day. Customers have high knowledge about the product, it is highly differentiated in its category and consumers see the brand as being relevant to their want. Fastrack has targeted the young customers and Timex and Titan parted their ways because of this. Fastrack had a good start i.e. turnover of Rs. 15 crore in very first year and had a good run till 2001-2002 where its turnover raised to Rs. 25 crore. But due to high price the target group was moving away from the brand. Later in the year 2003-2004 Fastrack started targeting the executive as well as causal watch segment. It was a risky experiment to review the brand. So the sales dropped and remained stagnant for some time. The research showed that the consumer were not willing to pay Rs. 1200 to Rs. 3000 for the watches. So in 2005 they again went for repositioning of the brand. They adopted the break-away positioning and again targeted the youngsters. They also moved towards mix of plastic and steel. And by doing so Fastrack was able to reduce the prices to Rs. 500 to Rs. 2000 which in turn helped to increase the sales. They were able to relate to the youth in a setting they were familiar with their advertising. The brand provided with designs that are refreshingly different, casual, fun with prices that dont burden the pocket. It is also the first Indian brand to get 1 million likes on Facebook and currently it has more than 4 million likes compared to 2.5 million likes to united Colours of Benetton which also shows strong affiliation of youth to this brand. As of 2008 Fastrack was serving customer through 6000 outlets across 800 towns including 228 strong World of Titan network and through 122 Large Format Chain stores.

Following are products from Fastrack

Serial Number 1 Product Variety of watches Description Functions are DIGITAL ANALOG ANALOG + DIGITAL Available in various colours Rate varies from RS. 650 to RS. 3995

Fashionable sunglasses

It is available in various shapes such as BUG EYE CLASSIC WAYFARER DESIGNER AVIATOR SPORTY WRAP BUTTERFLY OVAL Price rates vary from RS. 695 to RS. 2995 Price ranges from RS. 695 to RS. 2295 Latest designs are made for girls

Bags

Belts

Price varies from RS. 495 to RS. 995 Belts are available in different material like Leather, Metal, Plastic, Canvas Price ranges from RS. 695 to RS. 1295 Wallets are available in different material like Leather, Metal, Plastic, Canvas

Wallets

Brand Image of Fastrack

Fastrack 'Move on' is a way of life for Titan Industries. From a sub-brand with a fuzzy identity to a youth brand, Fastrack has moved on with a style. Brand Personality of Fastrack can be related to ruggedness sports outdoorsy and tough and the youth who is trendy and casual.

Brand Perception of Fastrack

The brand was clear about core target group. Hence campaign talked to people in their language. Both 'How many you have' and 'Move on' referred to customers habits in accessories and also their outlook towards attraction and desirability. The campaigns did not want to sound judgmental or tell customers what to do. It just has passed a message 'It is ok' in a conversational tone that has got the youth to relate to Fastrack. Customers have high knowledge about the product and perceived thee brand as message passed in campaigns.

Brand Personality
Brand personality of Fastrack is about excitement, mainly the youth who is trendy, loves adventures and on the move type. Youths in between 15 and 25 years are mainly targeted by the Fastrack.

Whether extension possible or not?

Fastrack has successfully done category extension in past from watches to sunglasses, handbag and was a carefully thought-out exercise, based on in-house research by Titan. The findings of the research resulted that Cell-phones, deodorants, sports shoes, sunglasses, T-shirts and handbags are most popular accessories for youngsters. With this experience of Fastrack and experience of doing it successfully another brand extension is also a possibility and as the brand is positioned as the youth brand aged between 15 to 25 year old the offering will also be youth oriented. The most talked about youth wearing these days are T-shirts and there exists and opportunity for an Indian brand to excel. Now, major extension which Fastrack can do in future to acquire market share and increase the portfolio of successful brand is T-shirts, sport shoes and deodorants. But keeping in mind the brand perception the most effective extension will be in T-

shirts. This will not only increase the visibility of the brand but also profitability of the company. Following are some benefits T-shirts will derive from the brand Fastrack. Brand Benefit Fastrack is already established brand and venturing into new category will carry the brand perception and targeting the target audience will also be lot more easy. Less marketing cost Cost of marketing will be very less if category extension is done in Tshirts. This will help Fastrack to minimize the market share. Shelf space will be easily available As initially the T-shirts can be launched in the Fastrack stores/malls so the extra shelf space will be easily made available and no extra effort need to be taken for the same. Effective distribution channel Fastrack has already developed very efficient distribution channel to reach customers by means of Fastrack stores, malls and e-commerce. T-shirts can also be distributed by the same distribution channel which will help to save cost of the company.

Preliminary Exploring Study

Fastrack- Survey (Copy of Google doc form for the purpose of preliminary analysis) It is a survey to determine the perception of Fastrack brand among the customers. Kindly give your valuable response to help us in this project.. Regards, Rohit Arvind IIM Indore PGP 2011-13 https://docs.google.com/a/iimidr.ac.in/spreadsheet/viewform?formkey=dGdDU0tTYl8 wNkJxdjlUd3Jjbk1MTUE6MQ

1. Which customer segment do you think Fastrack brand appeals most? *

Sophisticated Kids Youth Working Professionals

2. Out of the following, which watch brand comes to your mind first? *

Fastrack Timex Casio Maxima Swatch

3. Which of the following accessory from Fastrack do you like the most ? *

Watches Sunglasses Bag Wallets Belts

4. Fastrack is?

Fashionable and Trendy Affordable

Expensive Formal Office wear

5. Which brands for fashion accessories are you aware of in Indian market *

Blackberry Koutons Fastrack Raymonds

6. What kind of fashion accessory would represent your trendy character most? *

T-shirt Deodorant Socks Shoes Hairband

7. What kind of t-shirt would you like to wear in college?

Expensive Fashionable and trendy Formal Plain with basic color Graphics custom made t-shirt

8. With which among the following products would you relate Fastrack most apart from watches /sunglasses /bags /wallets /belts? *

T-shirt Shoes Sports accessories Deodorant Caps Scarfs Other:

9. Where would you like to wear a Fastrack t-shirt( assuming company introduces t-shirts) ? *

Workplace Formal social gathering Informal social gathering Regular college Official gathering All of the above Other:

10. Do you think a t-shirt can represent your style statement ? * Neither Strongly Disagree Agree or Agree Disagree Disagree Strongly Agree

11. What kind of t-shirts would you like to have in your wardrobe? * 12. Would you prefer trying/wearing a Fastrack tshirt instead of your current tshirt? 13. How often do you buy a t-shirt? * 14. From where do you buy Fastrack?

Every 3-6 month

Internet Mall Fastrack outlet General outlets

Preliminary Exploring Study: Summary

1. Which customer segment do you think Fastrack brand appeals most?

Number of Respondents
1 0 Sophisticated Kids Youth 53 Working Professionals
Sophisticated Kids Youth Working Professionals

No. of Respondents
0 0 53 1

Percent age
0% 0% 98% 2%

2. Out of the following, which watch brand comes to your mind first?

Number of respondents
Fastrack 30 3 7 2 11 56% 6% 13% 4% 20%

11 2 7 3 30

Fastrack
Timex

Timex
Casio

Casio Maxima Swatch

Maxima Swatch

3. Which of the following accessory from Fastrack do you like the most?

Number of Respondents
0 4 10 36 3 Watches Sunglasses Bag Wallets Belts

Watches Sunglasses Bag Wallets Belts

36 10 4 3 0

67% 19% 7% 6% 0%

4. Fastrack is?

Sales
01 16 37 0 Fashionable and Trendy Affordable Expensive Formal

Fashionable and Trendy Affordable Expensive Formal Office wear

37 16 0 1 0

69% 30% 0% 2% 0%

5. Which brands for fashion accessories are you aware of in Indian market?

Sales
Blackberry Koutons

12 3

Blackberry Koutons Fastrack Raymonds

Fastrack Raymonds

12 3 35 4

22% 6% 65% 7%

35

6. What kind of fashion accessory would represent your trendy character most?

Sales
T-shirt Deodorant Socks Shoes Hairband 36 4 0 12 2 67% 7% 0% 22% 4%

Tshirt Deodrant 36 Socks Shoes Hairband

7. What kind of t-shirt would you like to wear in college?

Sales
Expensive Fashionable and trendy Formal 34 0 Plain with basic color Graphics custom made tshirt

6 3 11

Expensive Fashionable and trendy Formal Plain with basic colour Graphics custom made tshirts

3 34 0 11 6

6% 63% 0% 20% 11%

8. With which among the following products would you relate Fastrack most
apart from watches /sunglasses /bags /wallets /belts?

Sales
3 2 7 19 1 2 20 Tshirt Shoes Sports accesories Deodrant Caps Scarfs Other

T-shirt Shoes Sports Accessories Deodorant Caps Scarfs Other

20 1 19 7 3 2 2

37% 2% 35% 13% 6% 4% 4%

9. Where would you like to wear a Fastrack t-shirt (assuming company

introduces t-shirts)?

Sales
Workplace 0 1 8 32 19 Formal social gathering Informal social gathering Regular college Official gathering

21

Workplace Formal social gathering Informal social gathering Regular college Official gathering All of the above Other

2 0 19 21 1 8 3

4% 0% 35% 39% 2% 15% 6%

10. Do you think a t-shirt can represent your style statement?

Sales
01 5 8 Strongly Disagree Disagree Neither Agree or Disagree Agree

39

Strongly Disagree Disagree Neither Agree or Disagree Agree Strongly Agree

0 1 8

0% 2% 15%

39 5

72% 9%

11. What kind of t-shirts would you like to have in your wardrobe?

Sales
9 More variety More Trendy 44 Less variety More formal

More variety More Trendy Less variety More formal

44 9

81% 17%

12. Would you prefer trying/wearing a Fastrack t-shirt instead of your current t-shirt?

Sales
12 Yes no 41

Yes no

41 12

76% 22%

13. How often do you buy a t-shirt?

Sales
0 5 26 22 Every 3-6 month More than 6 months Never Every 1-2 month

Every 1-2 month Every 3-6 month More than 6 months Never

26 22 5 0

48% 41% 9% 0%

14. From where do you buy Fastrack?

Sales
Internet
3 4 17 28 Internet Mall fastrack outlet General outlets

4 17 28 3

7% 31% 52% 6%

Mall Fastrack outlet General outlets

Data sheet of respondents Fastrack

RESEARCH DESIGN- Fastrack t-shirts

The process of research design consists of the following important considerations. We will take all the necessary considerations one by one to perform the required research Which questions to study? First of all it has to be considered whether the Fastrack brand has considerable awareness among the perception of the consumers From the preliminary research it was found that that the Fastrack brand had considerable awareness amongst the consumers It has to be carefully assessed that the brand perception of which key issues are relevant From the preliminary research it was found that the brand was perceived as a youthful brand by the customers. Therefore the research has to be done in the direction that will judge the perception of the customers related to the fashionable and trendy aspect of the product Careful consideration should be taken that the category extension does not harms the parent brand Considering the preliminary it can be found that the customers are willing to accept a t-shirt category of Fastrack The new category introduced should be in sync with the brand perception of the parent brand The new category is provides fashionable product at affordable pricing to the customer. This is in sync with the brand perception of the company The considered brand should be a category extension of the parent brand The t-shirt brand is a category extension of the existing brand The new category extension should not cannibalize the sales of any existing product of the company The new category of t-shirt is slightly overlapping with the casual wear category of the Westside brand of Tata. But Fastracks point of difference will be variety and affordable price. In his way it will be different from the existing product

Which data are relevant? The data which is synchronous with the brand image is considered as relevant data while considering the category extension The questions should be asked considering the target audience Attribute Age of Target audience Range 16-35

The data relating to the connection of the respondents with the brand has to considered This has to be considered that the new category is not cannibalizing the other products of the company Customer feedback for the new category is an important piece of data which has been considered in this research design

What data to collect?

The data can be collected with the help of Survey using the Descriptive Survey methodology Data Source Location Target Respondent No. of respondents Research Approach Context Type of Questions How to analyse the results? Primary Data Depends on Budget Fastracks customers and general public Depends on Budget Descriptive Market Research Product Context and Service Context Likert Scale, Multiple Choice and Open

The analysis of the data can be done by first evaluating the data for its proper use. The process of evaluating data consists of the following

Evaluate Data Incomplete Responses In some cases the respondent skips the questions and provides incomplete data. The questions in the survey were all marked mandatory to take care of this problem Data Entry Error It occurs due to failure in entering the correct data. In this case the data is screened and check for completeness Questionable Entry Results due to inconsistency arising from difference of opinion

Analyze Data From the available data we can analyse that the respondents are interested in the category extension of Fastrack into t-shirts We will be using Inferential Data Analysis to analyze the data

Inferential Data Analysis Using small group of respondents to find their preferences Comparing the data from different small groups and analysing their result to come to useful information It is found that Fastrack brand is famous among the youth The respondents are happy in accepting the brand in the above stated new category extension It can be forecasted that the popularity of the brand will be high in the future analysis