INTRODUCTION TO THE PROJECT

1.1 WATCH

A watch is a small timepiece intended to be carried or worn by a person, so as to

make the time immediately and conveniently available. It is designed to keep working
despite the motions caused by the person's activities. A wristwatch is designed to be
worn on a wrist, attached by a strap or other type of bracelet. A pocket watch is to be
carried in a pocket. Watches evolved in the 17th century from spring-powered clocks,
which appeared as early as the 14th century. The first watches were strictly
mechanical, driven by clockwork. As technology progressed, mechanical devices,
used to control the speed of the watch, were largely superseded by vibrating quartz
crystals, producing accurately timed electronic pulses. The first digital electronic
watch was developed in 1970.

Most inexpensive and medium-priced watches, used mainly for timekeeping, are
electronic watches with quartz movements. Expensive collectible watches, valued
more for their elaborate craftsmanship, aesthetic appeal and glamorous design than for
simple timekeeping, often have purely mechanical movements and are powered by
springs, even though these movements are generally less accurate and more expensive

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than electronic ones. Various extra features, called "complications", such as moon-
phase displays and the different types of tourbillion, are sometimes included. Modern
watches often display the day, date, month and year, and electronic watches may have
many other functions. Time-related features such as timers, chronographs and alarm
functions are common. Some modern designs incorporate calculators, use GPS
technology or have heart-rate monitoring capabilities. Watches incorporating GPS
receivers use them not only to determine their position. They also receive and use
time signals from the satellites, which make them essentially perfectly accurate
timekeepers, even over long periods of time. The study of timekeeping is known as
horology.

1.2 HISTORY OF WATCHES

Time is considered one of our most valuable assets.
Evolution of Watch
The keeping of time goes all the way to the beginning of the civilization. Both
historians and archaeologists believe that stationary and portable sun-dials were
probably developed in Egypt and Mesopotamia.

The oldest extant sun-dials can be found in Egypt and dates back to 1500 BCE. We
know that the early Egyptians used the pyramids as well as the obelisks as a fore
runner to the sundial

It is said that one of the first watches was created in Italy around 1524 CE. The main
problem for portable time keeping before the 1600s was the lack of driving power.
Timepieces of that era were typically driven by weights making it very difficult for
portable use. The inaccuracy of timepieces in this era was very common and most
watches only had one hand that had to be wound at least twice a day.

It was not until 1675 CE that the implementation of a spiral balance spring changed
timekeeping forever by taking timekeeping accuracy from fractions of an hour to
fractions of a minute. It was then a second hand was added to the watch. At this time
Roman numerals were added to mark the minutes. Eventually, due to rapid

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development, a watch would only have to be wound once a day instead of every
twelve hours.

With respect to mechanical improvements, the main milestone of watch evolution can
be stated as:

Prior to 1600: The Earliest Watches

1485: Leonardo da Vinci sketches a fusee for a clock.
1500s: Germany: Peter Henlein creates the first pocket watch.
Early 1600s: Form watches becoming popular. Cases are shaped like animals and
objects. Religious themes are popular.
1635: Around this time that the fusee was adapted from clocks to watches.
1687: Daniel Quare patents the repeating mechanism that uses bells to sound quarter
hours and the hours.
1759: Thomas Mudge invents the English lever escapement.
1830: Thomas Prest registers a patent for the self winding watch.
1918: Japan: Shakosha Watch Company opened. This would become Citizen in 1931.
1933: Ingersoll introduces the "Mickey Mouse" watch.
1956: Rolex introduces their first model that displays the day and date.
1962: Rado produces the world's first scratch proof watch called the "Diastar 1".
1962: ETA of Switzerland develops the first quartz battery operated watch.
1970: Hamilton releases the "Pulsar", the first electronic digital watch.
1972: Longines and Seiko introduce the LCD, (Liquid Crystal Display).
1980: Hublot founded.
1983: SMH of Switzerland launches the Swatch brand.
1985: Swiss Heuer Company merges with TAG to form TAG Heuer.
1986: Audemars Piguet introduces the first self winding tour billon.
1991: Franck Muller founded.
1999: Casio innovates with the first wristwatch with a built-in Global Positioning
System (GPS).

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1.3 INDUSTRY OVERVIEW
India is an under penetrated market for watches. Only 27% of Indians own a watch.
Total estimated volume as per 2008 is 44 million units and value of
Rs.2700crores. Vast proportion of Indian market is below Rs 500 by about 68%. The
market Share of Indian Watch Industry 2009 Market has been split into:
 Low end
 Mass market
 Premium and Luxury Brands

50 million wristwatches are sold in India every year. Notwithstanding 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 80’s, 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 terms, the size of the organized market is estimated at
around Rs. 1500 crores, which means that the average price of watches sold even
today is less than Rs.1000.

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

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1.4 WATCH MARKET MAP

The watch market can be broadly sub divided into formal, classic, fashionable and
sporty kind. The preference of the ‘watch kind’ depends on an array of factors ranging
from age group, income corridor, taste and preference, peer and reference group,
occupation, to price, gender, Fad or trend. The market segmentation may also be done
on such basis where various brands concentrate on specific type, from classic to
sporty. More so, the formal and classic watches are more often than not on the higher
range side, while fashionable and sporty watches generally have a wider price range.
There is also the unorganized sector which majorly deals in fashionable and sporty
watches at a much lower price, which becomes a major concern for the organized
sector.

1.5 BRANDS
Brands were originally developed as labels of ownership: name, term, design, and
symbol. However, today it is what they do for people that matters much more, how
they reflect and engage them, how they define their aspiration and enable them to do

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more. Powerful brands can drive success in competitive and financial markets, and
indeed become the organization's most valuable assets.

1.6 THE EMERGENCE OF BRANDS

In the field of marketing, brands originated in the nineteenth century with the advent
of packaged goods. The first registered brand was the red triangle registered by Bass
beer, as the British were the first to introduce a law for trade mark registration.

Industrialization moved the production of household items, such as soap, from local
communities to centralized factories. When shipping their items, the factories would
brand their logotype insignia on the shipping barrels. These factories, generating
mass-produced goods, needed to sell their products to a wider range of customers, to a
customer base familiar only with local goods, and it turned out that a generic package
of soap had difficulty competing with familiar, local products.
The fortunes of many of that era's brands, such as Uncle Ben's rice and Kellogg's
breakfast cereal, illustrate the problem. The packaged goods manufacturers needed to
convince buyers that they could trust in the non-local, factory product. Campbell
soup, Coca-Cola, Juicy Fruit gum, Aunt Jemima, and Quaker Oats, were the first
American products to be branded to increase the customer's familiarity with the
products.

Around 1900, James Walter Thompson published a house advert explaining

trademark advertising, in an early commercial description of what now is known as
'branding'. Soon, companies adopted slogans, mascots, and jingles that were heard on
radio and seen in early television. By the 1940s, Mildred Pierce manufacturers
recognized how customers were developing relationships with their brands in the
social, psychological, and anthropological senses. From that, manufacturers quickly
learned to associate other kinds of brand values, such as youthfulness, fun, and
luxury, with their products. Thus began the practice of 'branding', wherein the
customer buys the brand rather than the product.

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1.7 WHAT IS BRANDING?

Branding is the foundation of marketing and is inseparable from business strategy. It

is therefore more than putting a label on a fancy product. Nowadays, a corporation,
law firm, country, university, museum, hospital, celebrity, and even you in your
career can be considered as a brand.

As branding is deeply anchored in psycho-sociology, it takes into account both

tangible and intangible attributes, e.g., functional and emotional benefits. Therefore,
those attributes compose the beliefs that the brand's audience recalls when they think
about the brand in its context.

The value of a brand resides, for the audience, in the promise that the product or
service will deliver. Clearly, a brand can recall memories of a bad experience. The
value for the audience then would be to avoid purchasing that brand.

From the perspective of the brand's owner, the value of the brand often lies in the
security of higher future earnings, but may also be assessed in terms of votes for a
politician, career for an executive, foreign direct investment (FDI) for a country, etc.

In conclusion, branding is the blend of art and science that manages associations
between a brand and memories in the mind of the brand's audience. It involves
focusing resources on selected tangible and intangible attributes to differentiate the
brand in an attractive, meaningful and compelling way for the targeted audience.

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1.8 CHARACTERISTICS OF A GOOD BRAND NAME
# Short, sweet and easily pronounced
The ideal name for customers to remember, and for you to use to cut through the
industry noise, is probably short and sweet and easily pronounced. This means it will
have two or three syllables (or even one), and it will work on the phone or internet
even if people have never seen or heard it before. If they have to be told how to spell
it once, that is OK (and may even help with recall). But if they have to be told a
second time, that is a problem. One of the sticky consonants (k, q, x, z) can help with
recall.

 # Unique with in its industry

Your name doesn't need to be weird or clunky, but it does need to not sound like all
the rest of your direct competitors. HotJobs.com, BAJobs.com, Careers.com,
CareerJunction.com, LocalJobs.com are all easily lost in the crowd. But Monster.com
stands out dramatically - even though it does not describe what they do! In practice, it
has become brand shorthand for job searches, just like Starbucks has become
shorthand for coffee.

# Legally available and defensive

Your lawyers think this should be item one of course. Regardless, what is the point of
starting any company or marketing campaign if you cannot have full rights in the
name? Your best defence is always a magic ® - which only can be issued by the
USPTO (or equivalent agency in other countries). If the USPTO won't issue a
registration certificate because they judge it to be generic, then you have problem (2)
above anyway. Common law trademark searches are also critically important.

 # Good alliteration, especially if a longer name

Sometimes a longer name does have a place in marketing. After all, the most famous
brand in the world, Coca Cola, is four syllables. But notice how smoothly it rolls off
the tongue. Linguists will tell you it has good alliteration.

 # Does not lend itself to abbreviations

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If you have a long descriptive name, people will abbreviate it quickly. OK, we know
it worked for IBM, AT&T, CBS etc., but how many years and how many branding
dollars do you have? For a small company, this means you quickly become YASI
(Yet another Set of Initials) and drown in the initial bit bucket. At least make sure the
trademark part (brand part) of your trade name is a name and not initials. E.g. Ford is
the trademark for Ford Motor Car Company. Leave FMCC etc. to the legal documents
only. But who or what are AMA, CCI, etc.?

 # Flexible and expandable

Too many people try to describe their company rather than name it. Copyland, Copy
data, Copy shop, Quick Copy all define what they do - and are barely distinguishable
from one another. But Kinkos stands out dramatically and did not pigeonhole them
into only copy services. Today, of course, they are FedEx Kinkos, and can offer a raft
of services without needing to update their name, unlike Texas Instruments that
doesn't even make instruments.

# Linguistically clean
What are the root origins of the name? How is it pronounced by a Spanish, Italian,
Japanese, Portuguese or French native speaker? What does it mean in these
languages? You need to support these languages just to do business in North America
nowadays, especially in the populous areas of California, New York, Texas, Illinois,
Florida and Canada.

 # Will not age quickly

Is your name hip and topical? If you are in the fashion trend business this might be
fine. But otherwise, be very careful of "in" words or expressions. They will be
superseded sooner or later. They may also not play well across all demographics.
Many markets have their own "industry-speak" and slang. The worst of these are in
"geekdom"! Names with classical roots tend to endure more easily.

 # Embraces company personality

Two competitors, entering the same market at the same time with directly competing
products, will pick different names because every company and management team has
its own personality. This means the executives must be involved in the decision
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 making process. Your agency can tell you if the name fits, not if you are comfortable
with it.

 # Fits with in company’s brand portfolio

The company name, division names and product names are all part of your brand
portfolio. Do these sounds like they all come from the same family? While this is a
specific problem with merged companies, everyone's naming architecture needs to be
properly managed to maximize your brand power and intellectual property portfolio.

1.9 CONSUMER BEHAVIORAL FACTORS

 Transition from mere time keeping device with functional benefits like durability,
toughness and economy to a personal wear reflecting people’s lifestyle and
aspirations
 Price sensitive
 Durability and utility are important aspects
 Aesthetic appeal and trendy designs are very important
 Brand Name continues to be an important driver in the customer’s mind
 Availability in different segments and for different occasions makes the watch a
suitable gift item.

1.10 CONSUMPTION PATTERN

Many customers prefer mechanical and automatic watches, while others prefer quartz
watches. Newer segments are also on rise such as ladies watches, children’s watches
and gent’s 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 customer’s buying decision that
translates into the purchase of a watch.

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 retail sector has just begun to boom in India. Since the early 1990’s, 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.

1.11 EMERGING TRENDS

Based on the above consumption pattern we found out that consumerization in India
is a result of four factors:-
 Demographic patterns
 Effect
 Enablers
 Outcome

The demographic pattern of India shows, that India has a rising percentage of young
population, which leads to the increase in the income levels of consumers and results
in the changes in spending pattern.
The rise in population can also be accounted for as more and more people come and
reside in urban areas. Again, trend shows more number of women is also employed
which leads to changes in spending patterns and increased spending power. Thus this
leads to the consumption of lifestyle items.
This is shown in the following diagram:-

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 1.12 FACTORS TRANSFORMING INDIAN WATCH INDUSTRY
 Shift in structure of demand-
 Volume growth driven by the low end.
 Value growth driven by the luxury segment.
 More global and local players-
 Significant increase in competition in all segments
-Luxury end : Swiss brands
-Mid to upper end : Global fashion/ Japanese brands
-Low end : Local/regional IMFQs, Chinese imports
 Emergence of distinct consumer segments-
 Sharply defined consumer segments around distinct buying factors.
 More awareness of brands and global trends among affluent urban consumers.
 Emergence of new channels –
 New retail outlets emerging (Dept. stores/malls)
 Existing outlets (MBOs) getting smarter looking
 Unorganized retail at low-end

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 1.13 FUTURE OF THE INDIAN WATCH INDUSTRY
 Incorporating new functionalities in the wrist watch with the help of new technology:
• Spot watches which offer advanced features such as automatic time adjustment based
on location, access to continually updated content such as news, traffic alerts, weather
reports, stock quotes, sports scores and instant messaging.
• The Times Data Link watch utilizes a revolutionary new communications technology
that literally zaps information from personal computer (PC) to watch.
• IBM Linux-based wrist watch.
 Tapping the rural market:
• Huge size of the rural market.
• As tele-density and infrastructure of the rural India improves, it offers scope for
sophisticated form of advertising and method of sales.
• Launch of Sonata range of watches by Titan in the rural market has met with great
response from the buyers in rural and semi-urban India.
• Indian rural bazaar is displaying a market trend towards consumerism and demand for
durable products.
 More and more focus on new technology and multi-functional utility:
• Timex are the leaders in this area with watches like-
 Internet Messenger
 Digital Heart Rate Fitness System
 Watch consumption in India – 20 units/1000 people as opposed to China – 50/1000:
• Scope for increasing the demand of watches
 Top 23 cities: 80% of Watch market
• The focus should increase on spreading the market to rural areas
 Greater price segmentation, sp. lower end
• 2 fold advantage: Demand, Market spread
 Greater competition from invisible sector and foreign brands

1.14 UNORGANISED V/S ORGANISED SECTORS

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

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features like fashion appeal, technology, sophistication and status. Others go for
durability, economy and precision.

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.
The above are aiding to the development of the unorganized sector in the Indian
economy which is able to cater to the needs and requirements of the lower group
watch segment which looks for prices below INR 500. This sector is able to provide
watches pricing as low as Rs. 50-Rs. 500. More so, a trend of having innumerable
watches is emerging, for which these low priced retail outlets are by and large most
feasible and attractive to the fickle-minded, demanding, trendy, westernized lower age
group who frequently hop from outlet to outlet to keep an eye on the upcoming
designs and market for present needs.

1.15 SOME FAMOUS BRANDS OF WATCHES

There are some big brands of wrist watches that are worth mentioning. They are:
Titan, Fossil, Armani, Fastrack, etc.
TITAN

Titan, a name that is synonymous with watches today. The company was established
in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial
Development Corporation. Titan was launched at a time when cheap watches were
flooding the Indian market. It has grown to become the largest watch manufacturer in
India and the sixth largest in the world. The company manufactures more than nine
million watches every year, has a customer base of over 80 million, and accounts for
60 per cent of India's organised watch market.
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A Titan pretty much stands for reliability, durability and to a great extant style. The
brand is not focused on a single segment either. Titan has launched its Titan Ultra
Slim which is virtually invisible. With an incredibly slim movement of 1.15 mm, the
Titan Ultra Slim is the slimmest watch in the universe, a mere
3.6 mm. and now Titan has launched its brand new watch Octane.

FOSSIL

Fossil was founded in 1984 as Overseas Products International by Tom Kartsotis, a

former Texas A&M University student living in Dallas from a suggestion by his older
brother, Kosta Kartsotis, a merchandising executive at Sanger-Harris. Kosta told his
younger brother about the potential large profits that could be made in importing retail
goods made in the Far East, specifically in importing moderately-priced fashion
watches.[1] Their main product was fashion watches with a retro look. In 1990, they
introduced leather goods under the Fossil brand, and the Relic line of watches.
Fossil had its initial public offering in 1993.

Zodiac Watches was a Swiss brand that had been operating since 1882 when Fossil
acquired it from Genender International in 2001 for $4.7 million. [9] Fossil's desire to
establish a Swiss presence led to the purchase of the Zodiac Watch brand and a
complete retooling of that line to reflect a retro modern 1970s style in a higher end
watch. The 2004 purchase of Michele Watch completed the cycle by offering a high-
end Swiss watch with a designer flair.
In September 2007, Fossil was accused of infringing a patent owned by Financial
Innovations Systems, LLC, in a lawsuit filed in the Northern District of Texas. The
case was settled for an undisclosed amount and dismissed shortly thereafter.

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The Watch Station International chain was purchased from Luxottica/Sunglass Hut in
December 2007.

Fossil has design studios in Biel, Switzerland close to Rolex as well as manufacturing
facilities in China and distribution centers in Dallas, Germany, and Asia.
In 2012 Fossil, Inc. agreed to purchase Skagen Designs, Ltd. and some of its partners
for approximately $225 million in cash and 150,000 Fossil shares. The total value
paid by Fossil would be approximately $236.8 million.
In early 2013, Fossil introduced their upscale and more expensive "Fossil Swiss" line
of watches which are made in Switzerland.
In November 2015, Fossil acquired Misfit for $260 million, with plans to incorporate
Misfit's technology into traditional-looking watches.

EMPORIO ARMANI

Giorgio Armani S.P.A. is an Italian fashion house founded by Giorgio Armani which
designs, manufactures, distributes and retails haute couture, ready-to-wear, leather
goods, shoes, watches, jewelry, accessories, eyewear, cosmetics and home interiors.
The brand markets these products under several labels: Giorgio Armani Privé, Giorgio
Armani, Armani Collezioni, Emporio Armani (including EA7), AJ | Armani Jeans,
Armani Junior, and AX | Armani Exchange. The brand utilizes the association of the
Armani name with high-fashion, benefiting from its prestige in the fashion industry.
In 2016, estimated sales of the company were around $2.65 billion. [3] In 2017, Giorgio
Armani announced that his company will close two of its fashion labels, Armani
Collezioni and Armani Jeans, as part of the restructuring process for his company.

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While Armani Collezioni will merge back into the "Giorgio Armani" line, Armani
Jeans will be mixed with the Emporio Armani line due to their similarities in styles
and the use of the same brand logo.

FASTRACK

Fastrack is fashion accessory brand retailing its products in India. The company was
launched in 1998 as a sub-brand of Titan Watches. In 2005, Fastrack was spun off as
an independent brand targeting the urban youth and growing fashion industry in India.

Under the influence of the rapidly growing fashion and e-commerce markets in India
and with enough offerings such as wrist watches, bags, belts, wallets, sunglasses and
helmets, Fastrack opened its exclusive store chain across the country. The store is
positioned as a complete accessories destination with all Fastrack gear under one roof.
The first store was opened in Pune in 2009, and later on as a growing brand Fastrack
opened another 158 exclusive stores in 79 major cities of India. Fastrack also sells its
goods through online markets such as Flipkart, myntra, jabong, Snapdeal and Amazon
India.

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 REVIEW OF LITRATURE
A literature review is an account of what has been published on a topic by accredited
scholars and researchers. It is part of the introduction to an essay, research report, or
thesis. In writing the literature review, the purpose is to convey to the reader what
knowledge and ideas have been established on a topic, and what their strengths and
weaknesses are. As a piece of writing, the literature review must be defined by a
guiding concept (e.g., the research objective, the problem or issue discussed, or the
argumentative thesis). It is not just a descriptive list of the material available, or a set
of summaries.

Bearden and Etzel (1990) shed light on the ability of reference groups to affect the
importance of the brand image among types of goods. In their study, goods were
divided into luxuries and necessities and social group influences were hypothesized to
affect brand decision through the locus of where a product was used – in private or
public. Private goods are items such as mattresses that are not viewed by others and
are, thus, less susceptible to social influence; where public goods such as televisions
may be very susceptible to social influences. Consequently, brands are more
important for public goods than private goods.

Shergil and Kaur (1998) found that buying behaviour of customers is focused to
vary according to socio – economic background. Though price is the main
consideration for most of the customers, the higher income group respondents are
found to be more quality conscious. Moreover, loyalty to a particular brand plays a
major role in brand switching.

Jacob (2003) found that consumers faced with selection decisions find the brand
name to be the most useful piece of information in making a selection. When offered
a choice of brand name, price, or other product attribute information, respondents
chose brand name first and price second. At this point, brands have become shot hand
devices created by consumers to enable them to make product selections quickly,
efficiently and on the basis of relevant information. In short; the brand name alone has
become a decision- making heuristic.

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 Srivastava and Sengupta (2004) conducted a survey of 200 consumers “A peep into
mindset of consumers: - A study on men’s personal products” and found that:-
 Habit is the most important factor to influence purchase decision of customers.
 Only social groups had some effect over purchase decision. Advertisements didn’t
much effect in this respect.
 Influence of cheap price as well as sales promotion technique is not much significant.

Chauhan (2008) found that in today’s era of cut-throat competition, differentiating

brands on the basis of certain Unique selling proposition (USP) cannot suffice; rather,
building a long term relationship with the customers by involving them with the
brands is more important.

Ganapathy (2008) in his article stated that the customer’s choice is unpredictable at
the time of the rejuvenation of the brand. Any change in the brand image might or
might not be welcomed by the customer. The risk of the consumer not accepting the
radical change is quite but when the customer welcomes it, sales are boosted.
Malapur (2008) in her article stated that when a customer is exposed to a particular
brand for a long period of time the brand identity becomes monotonous and
predictable. If strategist can come up with new ideas that the consumer will not
expect, the vigor and the youth of the brand is maintained. For example Titan had
introduced a brand called ‘Fastrack’ that was targeted at the youth and has a trendy
look the look of every fastrack watch is very different from the other Titan watches.
Thus, when a new model is introduced different from the existing models under the
brand the customer gets a relief from the monotony of the existing brand image.

Pandey (2008) stated that a product or service cannot make a leap from being a
commodity to a brand unless an ideational dimension is added to it and this is true of
retail too. Branding is a strategic point of view, not mere select set of activities. It is
central to create customer value, not just image. It is a key tool for creating and
maintaining competitive advantages.

Vinitha (2008) in her study concluded that a customer who is a brand loyal will
purchase the same brand over an over again and will also convey a good image about

19
the company. The true brand loyal is willing to buy the brand at what ever cost it is
available.

Anitha and Maheshwari (2013) focused to gain knowledge about the different types
of titan brand, factors influencing the consumers to prefer a particular brand and the
problems faced by them on using such brands. For the purpose of obtaining the data,
questionnaire method is used. Suitable tools have been exploited to obtain scientific
evidence and further suggestions useful for the industry have also been presented

Rose (2015) attempted to study the attributes preferred by the consumers of wrist
watches through a conjoint analysis as this industry offers a plethora of opportunity to
domestic and international marketers. It outlines the attributes that contribute to the
consumer likings as the manufacturers would incorporate these aspects in their
product strategies to survive under dynamic market conditions.

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 OBJECTIVES OF THE STUDY

 To know the awareness level of branded watches.

 To study consumer’s preferences towards branded watches.
 To determine the factors influencing choice of consumers towards watches.
 To study the effect of advertisement on consumer.
 To study the satisfaction level of customer.

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 RESEARCH METHODOLOGY

This chapter describes the research methodology adopted to achieve the objectives of
the study. It includes the scope of the study, research design, collection of data,
analysis of data and limitations of the study.

RESEARCH DESIGN
The research design constitutes the blueprint for the collection, measurement and
analysis of data. It is the strategy for a study and the plan by which the strategy is to
be carried out.
The research design of the project is descriptive as it describes data and
characteristics associated with the population wearing branded watch in Ludhiana
city. Descriptive research is used to obtain information concerning the current status
of the phenomena to describe "what exists" with respect to variables in a given
situation.

DATA COLLECTION
Primary Data
Primary data is that data which is collected for the first time. It is original in nature in
the shape of raw material. For the purpose of collection of primary data, a well
structured questionnaire was framed which was filled by the respondents. The
questionnaire comprises of close ended as well as open ended questions. In close
ended questions dichotomous, ranking, likert’s scale, checklist questions and multiple
choice questions are used.

Secondary Data
Secondary data is the data which is already collected by someone. They are secondary
in nature and are in shape of finished product. Secondary data was collected so as to
have accurate results. Required data was collected from various books, magazines,
journals and internet.

22
SAMPLING DESIGN
Sampling refers to selecting some of the elements in a population by which one can
draw conclusions about the entire population.

Universe
Universe is the infinite number of elements which the researcher is targeting in his
study. Since the study is restricted to Ludhiana city the universe for the study consists
of all the people who wear branded watches.

Population
Population is finite number of elements which the researcher is going to target in
particular area. All the people who wear branded watch in Ludhiana city.

Sampling Unit
Sampling Unit is the single unit of the population. A single individual who owns a
branded watch form the sampling unit of the study.

Extent
Extent refers to the geographical area where there is a scope of population. The extent
of the study is Ludhiana City.

Sampling Technique
The selection of the respondents was done on the basis of convenience technique
based on the non-probability method of sampling.

Sample size
Sample size is the size of sample drawn from the population which is the true
representative of the research.
The number of respondents included in the study was 50 for convenience in
evaluating and analyzing the data and because of time constraint.

23
TOOLS AND TECHNIQUES
For the purpose of analyzing, raw data was summarized in a master table and from
this table the results have been carried out. The questions having multiple/ alternative
choices were analyzed by taking percentages.

24
 DATA ANALYSIS & INTERPRETATION

5.1 Number of respondents fond of wearing branded watches .

Wear No. of respondents Percentage
Yes 40 80%
No 10 20%
Total 50 100%

Number of respondents wear branded

watches

20%

Yes

No

80%

INTERPRETATION
The above table and chart shows that out of 50 respondents 80%of the respondent
wear watches, whereas only 20% of them does not aware watches. Most of the
consumer like to wear watches.

25
5.2 Preferred brand among respondents
Brand preferences No. of respondents Percentage
Titan 3 6%
Fossil 23 46%
Armani 12 24%
Fastrack 8 16%
Other 4 8%
Total 50 100%

Brand preferences

8% 6%

16% Titan Fossil

46% Armani Fastrack

24%
Other

INTERPRETATION
The above table and figure shows that out of 50 respondents, Fossil is the first
preference of the respondents followed by other brands, whereas 24% of them
preferred Armani brand, 16% prefer Fastrack, 6% prefer titan and remaining 8% of
the respondents prefer other brands like Rado, Timex, Diesel etc.

26
5.3 Reasons for brand preference
Reasons No. of respondents Percentage
Attractive designs 12 24%
Reasonable price 7 14%
Brand image 15 30%
Good quality 16 32%
Total 50 100%

Reasons

24%
32%
Attractive designs
Reasonable price
Brand image
14% Good quality

30%

INTERPRETATION
The above table and figure shows that out of 50 respondents 32% respondents like
particular brand due to its quality, whereas 30% of them like due to brand image,24%
of them considered attractive designs and remaining 14% of the respondents consider
price factor, while choosing a particular brand of watch. Quality is major factor which
is liked by respondents followed by other factors like brand image, attractive design
and price.

27
5.4Most preferred brand’s advertisement liked by respondents
Advertisement of Brand No. of respondents Percentage
Titan 7 14%
Fossil 3 6%
Armani 3 6%
Fastrack 29 58%
Other 8 16%
Total 50 100%

Other 16%

Fastrack 58%

Armani 6%

Fossil 6%

Titan 14%

0% 10% 20% 30% 40% 50% 60% 70%

Brand of advertisement liked by respondents

INTERPRETATION
The above table and figure shows that out of 50 respondents,58%of the respondents
like the advertisement of Fastrack brand, while 14% of them liked titan brand
advertisement, 16% of them liked advertisement of other brands, 6% liked fossil’s
advertisement and 6% like armani’s advertisement. Most of the respondents like
Fastrack brand’s advertisement.

28
5.5Media for advertisement
Media No. of respondents Percentage
TV 21 42%
Magazines 16 32%
Hoarding 11 22%
Radio 2 4%
Total 50 100%

Media for advertisement

Radio 4%

Hoarding 22%

Magazines/
32%
Newspapers

TV 42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

INTERPRETATION
The above table and figure shows that out of 50 respondents, 42% of the respondents
came to know about branded watch through television advertisement, whereas 32%
of them came across the advertisement of branded watches on newspaper/magazines,
22% through hoardings and least 4% of the respondent come to know about branded
watches from radio media. Television advertisement is major source of information to
know about the branded watches.

29
5.6 Analysing the purpose of purchasing a watch
Usage of watches No. of respondents Percentage
Regular wear 27 54%
Occasional wear 10 20%
To gift someone 5 10%
All above 8 16%
Total 50 100%

Purpose of purchasing a watch

60%
54%
50%

40%

30%
20%
20% 16%
10%
10%

0%
Regular wear Occasional To gift All above
wear someone

INTERPRETATION
The above table and figure shows that out of 50 respondents, 54% like to purchase
watch for regular wear, 20% like to purchase watch for occasional wear, 10% like to
purchase watch to gift someone and rest 16% respondents like to purchase watch for
all the above. It can be interpreted that most of the people like to buy a watch for
regular wear.

30
 5.7 The attributes considered while purchasing a watch
Attribute No. of respondents Percentage
Price 17 11%
Certification / Warranty 15 9%
Design / Fashion 34 22%
Discount 12 8%
After sale service 18 12%
Celebrity Endorsement 19 12%
Return / Exchange policy 13 8%
Brand Image 28 18%
Total* 156 100%

Attributes considered while purchasing a watch

Brand Image 18%

Return / Exchange policy 8%

Celebrity Endorsement 12%

After sale service 12%

Discount 8%

Design / Fashion 22%

Certification / Warranty 9%

Price 11%

0% 5% 10% 15% 20% 25%

INTERPRETATION
The above table and figure shows that out of 50 respondents, most of the respondents
have ranked Design/fashion as their first priority followed by price, brand, and
warranty. It can be interpreted that most of the people consider price as a prime factor
while purchasing a watch and then after design, brand image and so on.

31
5.8Influence of persons while purchasing a watch.
Decision influenced by No. of respondents Percentage
Self 34 68%
Parents 6 12%
Spouse (if married) 1 2%
Collective 9 18%
Total 50 100%

Decision is mainly dominated while purchas-

ing a watch
80%
70% 68%

60%
50%
40%
30%

20% 18%
12%
10%
2%
0%
Self Parents Spouse (if Collective
married)

INTERPRETATION
The above table and figure shows that out of 50 respondents, 68% respondents prefer
to take their own decision while purchasing a watch, 12% prefer to take their parents’
decision, 2% like to take their spouse’s decision, and 18% like to take collective
decision while purchasing a watch. It can be interpreted that most of the people prefer
to take their own decision while buying a watch and least prefer to take their spouse’s
decision to buy a watch.

32
5.9 Number of respondents think that new advertisement is effective in inspiring
consumers to have a new look everday.
Options No. of respondents Percentage
Not at all effective 16 32%
Effective 14 28%
Highly Effective 3 6%
Neutral 17 34%
Total 50 100%

New advertisement is effective in inspiring

consumers
40%

35% 34%
32%
30% 28%

25%

20%

15%

10%
6%
5%

0%
Not at all effective Effective Highly Effective Neutral

INTERPRETATION
The above table and figure shows that out of 50 respondents, 34% respondents think
that new advertisement is neutral in inspiring consumers to have a new look every
day, whereas 32% of them choose not at all effective, 28% of them agree that new
advertisement is effective in inspiring consumers and least 6% of them rated highly
effective to new advertisement.
5.10Preference level of branded watches
33
 Option No. of respondents Percentage
Yes 43 86%
No 7 14%
Total 50 100%

Preference level of branded watch

100%
90% 86%
80%
70%
60%
50%
40%
30%
20% 14%
10%
0%
Yes No

INTERPRETATION
The above table and figure shows that out of 50 respondents, 86% respondents
satisfied with current brand of watch, whereas 14% of them dissatisfied with watch
their watch brand. It can be interpreted that most of the people satisfied with existing
watch brand.

5.11Switch to another brand

34
 Options No. of respondents Percentage
Yes 12 24%
No 38 76%
Total 50 100%

Switch to another brand

80% 76%

70%

60%

50%

40%

30%
24%
20%

10%

0%
Yes No

INTERPRETATION
The above table and figure shows that out of 50 respondents, 24% respondents change
or switch their watch brand whereas 76% of the respondents does not change/ switch
their brand. They are loyal to their preferred brand. According to respondents, Latest
design, variety, technology are major features which inspired the respondents to
change/switch their brand.

35
5.12If yes than which brand will you prefer.
Brand preference No. of respondents Percentage
Titan 2 17%
Fossil 4 33%
Armani 1 38%
Fastrack 2 17%
Other 3 25%
Total 12 100%

Type of watch preferred for gifting purpose

40% 38%

35% 33%

30%

25%
25%

20%
17% 17%

15%

10%

5%

0%
Titan Fossil Armani Fastrack Other

INTERPRETATION
The above table and figure shows that out of 50 respondents, 38% respondents like to
buy Armani brand, 33% of them like to buy fossil brand, 25% of them like to buy
other brand like Diesel, Rado, Timex, etc 17% of them like to buy titan brand and
remaining 17% of the respondents like to buy Fastrack brand.

36
5.13Ranking the brand on satisfaction level
1 2 3 4 Rank
Titan 0 5 9 36 1.38
Fossil 36 9 5 0 3.62
Armani 6 29 12 3 2.76
Fastrack 8 7 24 11 2.24

Ranking the brand on satisfaction level

4
3.62
3.5

3
2.76

2.5
2.24

1.5 1.38

0.5

0
Titan Fossil Armani Fastrack

INTERPRETATION
This question is analysed with the help of weighted average score method. From the
calculation it can be concluded that most of the respondent given first rank to the
fossil brand, second rank distribute by respondents to Armani brand, third rank given
by respondents to Fastrack brand and least rank distribute by respondents to titan
brand. Fossil is the first preference of the respondents followed by other brands for
latest design, style, quality, technology and comfort level.

37
 FINDINGS
 The study shows that 80% of the respondent wear watches.
 Fossil is the first preference of the respondents followed by other brands.
 The study shows that Quality is generally preferred by respondents followed by other
factors like brand image, attractive design and price.
 58% of the respondents like the advertisement of Fastrack brand.
 42% of the respondents came to know about branded watch through television
advertisement.
 54% of the respondents like to purchase watch for regular wear.
 Most of the respondents have ranked Design/fashion as their first priority followed by
price, brand, and warranty.
 68% respondents prefer to take their own decision while purchasing a watch.
 34% respondents think that new advertisement is neutral in inspiring consumers to
have a new look every day.
 Most of the people satisfied with existing watch brand.
 24% respondents change or switch their watch brand whereas 76% of the respondents
does not change/ switch their brand. They are loyal to their preferred brand.
 38% respondents like to buy Armani brand.
 Fossil is the first preference of the respondents followed by other brands for latest
design, style, quality, technology and comfort level.

38
 LIMITATIONS OF THE STUDY
 The size of sample is restricted to 50 respondents only.
 The results of the study are based upon the survey of the people living in Ludhiana.
 A general limitation of study relates to inadequacy and incompleteness of secondary
data about the wrist watch market.
 Some of the respondents were not willing to give information, so some of the data
may be biased.

39
 SUGGESTIONS
 Introduce more trendy and innovative design.
 Focused on niche market.
 Spread awareness about availability of watches in every segment related to style and
price.
 Improve after sale services.

40
 CONCLUSION
Country of origin is an important factor that affects consumer opinion towards
product quality. People often in absence of information about product associate
product quality by that country image. But according to the present study, consumers
do not associate product quality with country image. It may be due to the fact that
after globalization, Indian companies have raised their product quality and India is
playing an important role in global arena. Indian products are gaining acceptance
worldwide so there is a change in consumers’ attitude towards Indian product as well.
After globalization gap between foreign and Indian product are narrowing down. People
now are getting complete information about products so they like to go by product quality
rather than country image. Product quality is the only consideration for consumers and in
recent year due to globalization the Indian market is flooded by foreign companies and
consumers is now exposed to variety of product. The product quality has improved due to
cut throat competition between firms and people are now getting multiple choices.

Foreign brands have always been synonymous to status symbol in India. Foreign
brands have been positioned in consumers mind in such a way that possession of it is
related to prestige of a man. These brands due to their expensiveness and rare scarcity
are not in the reach of a common man and that is what makes them consumers feel so.
It is surprising to see in the present study also that consumers still feel owning these
brands are status symbol. Consumer believe that foreign brand provide better after
sales service and has long life as compare to ordinary products. Consumer seems to be
agreeing with that foreign brands incorporate latest technology and provide quality
products. They found foreign brand after sales service satisfactory.

41
 BIBLIOGRAPHY
Beraden William O. and Michael J. Etzel, “Reference Group Influence on Product
and Brand Purchase Decisions”, Journal of Consumer Research, Vol. 3, Issue 1, 9 th
August, 1990, Pg (30-38).
Chauhan Preeti, “Sensory Branding (Building brands beyond USPs)”, Advertising
Express, March, 2008, Pg (33-37).
Ganapathy V, “Ageing Brand”, Advertising Express, April, 2008, Pg (27-30)
Jacob J. Olsen, “Price, brand name and product composition characteristics as
determinants of perceived quality”, Journal of Applied Psychology, Vol. 9, Issue 3,
27th November, 2003, Pg ( 135-142).
Malapur Rashmi, “Rejuvenation of Brand”, Advertising Express, April, 2008, Pg (9-
11)
Pandey Rakesh R, “Branding in Retail”, Advertising Express, March, 2008, Pg (9-17)
Shergill G.S and Kaur T, “Consumer Behaviour in regard to detergents and Washing
soaps”, Management and Labour Studies, 15th March, 1998, Pg (165-172).
Srivastava Ashish and Sengupta A, “A peep into mindset of consumers: - A study on
men’s personal products”, Indian journal of marketing, Vol. XXIV, June, 2004, Pg
(13-15).
http://www.galawatches.com/Rado.aspx
http://www.indiangiftsportal.com/india-shopping/shoppers-hang-out/designer-luxury/
time-pieces/maxima-wrist-watches/
http://www.maximawatches.com/about_us.htm
http://www.paralumun.com/watchhistory.htm
http://www.secondtimeround.com/history.html
http://www.tata.com/titan/
http://www.timexindia.com/pair_home.asp
http://www.timexindia.com/timexwatches.asp
http://www.titanworld.com/titan/stores/watches/watcheshome.asp?CatalogId=titan
http://www.utoronto.ca/writing/litrev.html
http://www.webindia.com/hmti/watches_gallery.html
http://www.webindia.com/hmti/watches.htm

42
 QUESTIONNAIRE

Dear Respondent,
I am a student of B.B.A conducting Survey on “Consumer perception
towards various branded watches” Please Provide following Information.

Name : _________________________________
Age :_________________________________
Gender :________________________________

1) Do you like to wear a watch?

(a)Yes  (b)No 

2) Which brand do you like most?

(a) Titan  (b) Fossil 
(c) Armani  (d) Fastrack 
(e) Other, Please specify__________________

3) Why do you like this brand?

(a) Attractive designs  (b) Reasonable price 
(c) Brand image  (d) Good quality 

4) Which brand of advertisement do you like?

(a)Titan  (b) Fossil 
(c) Armani  (d) Fastrack 
(e) Other, Please specify__________________

5) In which media you came across the advertisement of branded watches?

(a) TV  (b) Magazines 
(c) Hoardings  (d) Radio 

6) What is the reason do you purchase a watch?

(a) Regular wear  (b) Occasional wear 

43
 (c) To gift someone  (d) Any other please specify
_____

7) Which attributes do you consider while purchasing a watch.

a) Price  (b)Certification/Warranty 
(c) Designing/Finishing  (d) Discount 
(e) After sale services  (f) Celebrity endorsement 
(g)Brand Image 

8) While purchasing a branded watch whose decision is most dominated?

(a)Self  (b) Parents 
(c) Spouse (if married)  (d) Collective 

9) Do you think the new advertisement is effective in inspiring consumers to have a

new look every day?
(a)Not at all effective  (b) Effective 
(c) Highly effective  (d) Neutral 

10) Are you satisfied with your preferred brand?

(a)Yes  (b)No 

11) Do you want to change/switch your watch brand?

(a)Yes  (b)No 

12) If Yes than which brand will you prefer?

(a)Titan  (b) Fossil 
(c) Armani  (d) Fastrack 
(e) Other, Please specify__________________
Any One __________

13) Give the rank on the basis of your satisfaction level on scale of four.

Brands Name Rank

44
Fossil
Titan
Armani
Fastrack

45
CONSUMER BUYING BEHAVIOUR TOWARDS
BRANDED WATCHES

Final Project Report

SUBMITTED TO
PANJAB UNIVERSITY, CHANDIGARH

IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

Submitted By
Diksha Verma
(Univ. Roll no. 14713000258)

Department of Business Administration

GURU NANAK KHALSA COLLEGE FOR WOMEN,
GUJARKHAN CAMPUS, MODEL TOWN, LUDHIANA
AFFILIATED TO
PANJAB UNIVERSITY, CHANDIGARH
(2013-2016)

46
 ACKNOWLEDGEMENT

If words are considered as a symbol of token and appreciation then let words play
their heralding role of expressing my sincerest gratitude and thanks,

Foremost of all I express my sincere gratitude to ALMIGHTY for bestowing upon me

favors and keeping me in high spirit.

I am highly thankful to Mrs. Manjit Kaur (Principal of GNKCW) for her complete
support. I wish to express my deep gratitude to Ms. Gurpreet Kaur for acting as a
guide and providing me with continuous support and guidance. This report could not
have been completed without the inputs and the words of advice from her for which I
shall always remain grateful to her.

I am highly thankful to all the people directly related and the students for being
cooperative without whose help this project would not have been proven meaningful.

Diksha Verma

47
 CERTIFICATE
This is to certify that the project entitled “CONSUMER BUYING BEHAVIOUR
TOWARDS INDIAN AND FOREIGN BRANDED WATCHES” submitted by
Diksha Verma (BBA, Roll No 14713000258) to Panjab University, Chandigarh in
Partial fulfillment of Degree of Bachelor of Business Administration, has been
approved after an oral examination, in collaboration with external examiner.

Ms. Gurpreet Kaur ____________________

Project Advisor (External Examiner)

48
 TABLE OF CONTENTS

CHAPTER CONTENTS PAGE

NUMBER

1. INTRODUCTION 1 - 17

2. REVIEW OF LITERATURE 18 – 20

3. OBJECTIVES OF THE STUDY 21

4. RESEARCH METHODLOGY 22 – 23

5. DATA ANALYSIS AND INTERPRETATION 24 – 36

6. FINDINGS & LIMITATIONS 37 – 38

7. SUGGESTIONS & CONCLUSION 39

BIBLIOGRAPHY 40

ANNEXURE 41 – 43

49
 Chapter – 1

Introduction

50
Annexure

51
 Chapter – 2

Review of Literature

52
 Chapter –3

Objectives of the
Study

53
 Chapter – 4

Research
Methodology

54
 Chapter – 5

Data Analysis and

Interpretation

55
 Chapter – 6

Findings
&
Limitations

56
 Chapter – 7

Suggestions
&
Conclusion

57
Bibliography

58