BRAND POSITIONING OF FASTRACK WATCHES

Submitted by, Mira Dhurga.V.R Brindha Richards

TABLE OF CONTENTS 1. Introduction 1.1. Background to the problem 1.2. Statement of the problem 2. Approach to the problem 3. Research design 3.1. Type of research design 3.2. Information needed 3.3. Data collection from secondary sources 3.4. Data collection from primary sources 3.5. Scaling techniques 3.6. Questionnaire development & pretesting 3.7. Sampling techniques 3.8. Field work 4. Data analysis 4.1. Methodology 4.2. Plan of data analysis 5. Results 6. Limitations 7. Conclusion & recommendations 8. Appendix 8.1. List of Tables 8.2. Questionnaire

1. INTRODUCTION 1.1. Background: Fastrack brand mainly target youth segment. Youth is perhaps the most difficult demographic group to communicate with. Not only they have a short attention span, they are also elusive in media consumption, fickle in brand preference, and simply challenging to engage and entertain. Marketers spend millions in marketing research every year trying to predict, or anticipate, changing youth behaviours. With the continually proliferating choices of trendy watches, not only does this group embrace technology at an early age, it quickly becomes the early adopters of all new trends and convergent platforms. One can argue that whatever youth does today foreshadows what older demographic groups will adopt in the near future. All this makes it extremely difficult to understand and target their behaviours 1.2. Problem statement: The purpose of this dissertation is to have a better knowledge of how the consumers position the Fastrack watches. The aim of the survey is to find out the factors influencing the people in purchasing Fastrack watches.

2. APPROACH TO THE PROBLEM: 2.1. Segmenting: Wrist watch can be majorly segmented on the basis demographic factors and price. On the basis price the market can be segmented into low priced, medium priced and high priced. The low priced watches are priced less than Rs.1000, medium priced watches are priced from Rs1000 to Rs.3000 and highly priced are priced above Rs.3000. Fastrack has unveiled products in all the segments. The range of Fastrack watches is from Rs. 500 to Rs.4000. On demographic grounds, the market could be segmented on the basis of age. The watches could be targeted at kids, youth and middle aged people. Fastrack watches were launched to cater to the needs of youth at first however it introduced watches for kids also later on. 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 laid on medium and high priced segments. 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 Sport Army Adventure Basics Grunge Aluminum Color Play Digital Fashion Essentials Party Pairs Neon - Disc Neon XY Price range 2000-4000 2000-3500 1000-2000 500-1500 1000-2500 500-1000 1000-2000 500-2000 1000-2500 1500-3000 3000-3500 1000-2500 500-1500 1500-3000

2.2. Positioning: 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. 3. RESEARCH DESIGN: 3.1. Type of research design: Our survey belongs to category of Case study as it deals exclusively regarding Fastrack brand in depth. It analyses the situation and the image that fastrack had placed in the minds of target market.

3.2. Information needed: After fixing the objective, we started an extensive reading on the topic. The very first question we needed to clear in our mind was: how do people position brand in their mind? Therefore we narrowed down to Fastrack watches. The subsequent readings helped us understand the consumer patterns and behaviour. Depending upon that, we listed down several factors that can influence a consumer in buying or not buying the fastrack watches. The study on Consumer Behaviour throws light on the prevalent consumer purchase influencers like Price, how they perceive it which are included in the purchase influence factors in the questionnaire. 3.3. Data collection from secondary sources: The data was collected from secondary sources like websites, journals, magazines etc. The Secondary data gathered was analyzed to understand the current scenario of the buying behavior of fastrack watches. The analysis of the secondary data also helped us find different attributes which affect the positioning of fastrack watches in customers mind.

3.4. Data collection from primary sources: Data was collected through a questionnaire consisting of both open ended and close ended questions. The schedule covered parameters like reasons for consumers brand

preference. The data was collected through emails and one-to-one interviews. 3.5. Scaling techniques: Non-Comparative Rating scale is used in which respondents evaluate only one object at a time, and for this reason non comparative scales are often referred to as monadic scales. Non comparative techniques consist of continuous and itemized rating scales. We have used continuous rating scale in order to rate the choices for purchase considerations and understand the buying behaviour of consumers.

3.6. Sampling techniques: 3.6.1. Target Population: The target population is the collection of elements or objects that process the information sought by the researcher and about which inferences are to be made. Our target population involves the users, deciders and buyers of fastrack watches. The users include the young population. The deciders and the buyers mostly include the urban youth 3.6.2. S ample Size: It denotes the number of elements to be included in the study. Due to time constraints the sample size chosen is very small. 3.7. Sampling technique: Simple random sampling was used for sampling, responses from one large group of people as a whole. 3.8. Fieldwork: The survey was conducted keeping in mind the users and deciders of fastrack watches. The survey was conducted in the velachery, t nagar, anna nagar, adayar Chennai to gather information from relevant people. 4. DATA ANALYSIS: 4.1. Data analysis plan: Q1 of the questionnaire is used to get the respondents age. Q2 explicitly asked the respondent on how they consider watch for their use Q3 & Q4 are used to get the purchase considerations of the consumer (features,place) Q5 explicitly asked whether they have used fastrack watch. The questionnaire was not administered to the respondents that answered NO to this question. Such respondents have not been included in the sample size of 100 that has been mentioned. Q6-Q12 asks the brand preference of the respondent about the fastrack watches. with care being taken to get

4.2. Methodology 4.2.1. Questionnai re Checking/Editing: The questionnaire is checked for completion and interviewing quality. Editing is the review of the questionnaire with the objective of increasing accuracy and precision. 4.2.2. Collation of Data: The data is collated in the excel sheet and prepared for statistical analysis. An SPSS view of the data was also taken for further analysis. 4.2.3 Choice of Statistical Analysis Technique: 4.2.3.1. Chi Square Test: Chi square test for independence was conducted on the results of the survey in order to analyse the relationship between two categorical variables. The relationship between the age and the perception of the people were studied this test. 4.2.3.2. Regression: We conducted a standard (simultaneous) regression analysis (linear regression) in order to study how the independent variables are correlated with the dependent variable. Independent variables can be either continuous or categorical. Here the independent variable chosen is the period of usage and the dependent variable is the level of satisfaction of the respondent. 5. RESULTS: 5.1. Analysis and Interpretation: 5.1.1. Chi Square Test: Relation between age and perception: Chi square test was performed in order to find the relationship between age of respondents and their opinion on fastrack watches. It was found that respondents in the age group <20 perceive it as trendy and respondents in the age group between 20-40 also perceive the same opinion as former group though fastrack is mostly positioned for youths. From this we can interpret that fastrack has positioned itself as trendy wear among the people irrespective of age.

To interpret the chi square result we need to look at Pearson chi square. Pearson has a value of 178.032 with significance of 0.000.this significance value is well below the alpha value of0.05 and thus it is significant. We can also see the minimum expected cell frequency is 16 which is >5 and therefore we can be confident that we have not violated any of the assumptions of chi square. In examining the observed cell frequencies it can concluded that people who are in age group of <20 and 20-40 perceive fastrack as trendy. Thus fastrack has positioned itself as trendy wear among the people. 5.1.2. Regression: The independent variable explains 6 per cent (R Square) of the variance in satisfaction level of the respondents, which is highly significant as indicated by the F value of 4.786. Because no univariate outliers were found, casewise plots were not necessary. From the scatter plot of residuals against predicted values, we can see that there is no relationship between the residuals and the predicted values, consistent with the assumption of linearity. The normal distribution of the standardized residuals for the dependent variable also indicates a relatively normal distribution. From this we infer that period of usage is the significant predictor of satisfaction 6. LIMITATIONS : Since this Project was intended to initiate us to the methodologies and techniques of Business Research Methods, therefore there are a number of constraints in terms of Manpower and Resources to conduct a large-scale survey. The scope of the project was limited to learning. There have been a number of limitations because of which the survey may not be indicative of the views of the target population. A few of these have been mentioned below.         The Sample size used for the research is less. The Sample consisted of primarily students. The Target Area was limited to College and the nearby markets. Consultation with Experts would have largely improved quality of the Research. The Questionnaire was not extensive and more issues could have been addressed. The responses obtained might be inaccurate or biased, inadvertently or deliberately. The sample of the respondents chosen for the study might not be representative. Analysis of the proposed aspects might differ depending on the tools and techniques used.

7. RECOMMENDATIONS: Based on the above study we would like to recommend Fastrack to target the market with new variants of watches on regular basis as many of them feel the Fastrack as trendy in order to increase the market share. Fastrack has to increase its branded stores from its current 4 stores as most of the people like to buy the wrist watches in branded stores only. In addition to these Fastrack should add new features like display of date and day in more variants of analog watches. Fastrack should use television, print media and start some brand magazine for there advertisements and to keep there existing customers update of any new variants of watches as around 50% of people would like to change there watches in less than 3years. Most important point is around 60% of people would like to recommend others to buy Fastrack and around 48% of people like to buy Fastrack in there next buy. The above type of advertisements can help Fastrack to improve the loyalty customer base. As the positioning of Fastrack targeted trendy, affordable ranges in youth segment and it is been accepted by most of the people but they would like to have more and more variants and features in this segment Following recommendations are the key features to be added and improvements for Fastrack       New trends year on year More brand showrooms More no of variants in the price range of Rs1000 - Rs3000 Promotions in televisions and print media More variants in leather and steel strap Providing special offers for the loyal customers

8.APPENDIX: 8.1. List of Exhibits Chi Square Test:

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a. Predictors: (Constant), ow long ou are using the watch? . Dependent Variable: Are ou satisfied with the brand ou are using? ANOVA Model 1 Regression Residual Total Sum of Squares 1.210 18.196 19.405 df 1 72 73
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Questionnaire
Hi. We are students of SSN. You are invited to participate in a survey to find out consumer preferences regarding various malt based health drinks available in the market today. It will take approximately 3 minutes to fill this questionnaire. Your participation in this study is voluntary. There are no foreseeable risks associated with this project. However, if you feel uncomfortable answering any questions, you may withdraw from the survey at any point in time. It is very important for us to learn your opinions. Your survey responses will be coded, remain strictly confidential and be reported only in the aggregate. Thank you very much for your time and support. You may start with the survey now.

1) What is your age? a) < 20 years b) 20-40 years c) >40 2) Watch to you is a) Necessity b) Accessory c) Style d) Other 3) What features do you consider while purchasing a watch? a) Brand image b) Warranty c) Price d) Style/design 4) Where do you prefer to buy a watch? a) Showroom b) Shopping mall c) Online d) Local stores 5) Have you used fastrack watch? a) Yes b) No 6) How do you perceive fastrack watches? a) Trendy b) Value for money c) Affordable d) Unaffordable 7) How long you are using the watch? a) <1 year b) >1 year

8) Are you satisfied with the brand you are using? a) Highly satisfied b) Satisfied c) Dissatisfied
d) Highly dissatisfied 9) How often you switch off brands? a) Affordability b) Depends on mood c) Very often d) Brand loyal 10) If given a chance to change your watch you would go for? a) Titan b) Timex c) Casio d) Other brands 11) How likely is it you would recommend fastrack watch to your friends and colleagues ? a) Strongly b) Fairly c) Sometimes d) Never 12) How likely is that you buy a fastarck watch in your next buy? a) Strongly b) Fairly c) Sometimes d) Never