Project On

CONSUMER BEHAVIOR TOWARDS SPORT WATCHES

Submited to

Dr.Deepti Wadera
By Aditya Sawant. Anujkumar Bhagat. Bharat Khanna Danish Raj Manuja Indu Dekh Neehar Mehta Lalit Rawat

PGP10-12 IILM Gurgaon

Consumer Behavior: Sports Watches

INDEX
Introduction to the sector and brands..03 Objective.05 Methodology05 Analysis & charts with diagram of brands..06 Findings13 Comparative STP analysis...15 Conclusion....16 Recommendations..16 References...17

Consumer Behavior: Sports Watches

Introduction
Wrist Watches form an integral part of the personality of individuals in the present era. Earlier seen as a luxury item, they are now witnessing a fundamental change in perception, and are now gaining respect as an essential utility item. Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd. (HMT), and has now left the pioneers far behind or nowhere in market by private sector enterprises like Titan, Sonata, Fast Track and Timex along with foreign entities jostling for display space in the smallest of shops selling these products. In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Frderique Constant, Mont Blanc, Swatch, and many others. 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. The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. The organized sector alone contributes up to 30 percent of this figure, and the rest of the demand is being met by the unorganised grey sector. This data is significant indeed in view of the socio economic distribution of the Indian populace. More than 58 percent of the population is under twenty five and more than 80 percent of the population is below 45 years of age. 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. Students are the largest segment of buyers accounting for approximately 30% of the sales.

In dollar terms, the estimated annual market size is around USD 195 million, despite the fact that the penetration of watches is the lowest, compared globally. Looking into this fact and the

Consumer Behavior: Sports Watches

long standing Indian tradition of comparing watches with jewellery and other traditional items, many watch companies are interested in setting up base in India. A casual study of the watch market reveals that it is segmented on basis of multiple proportions such as price, benefits and types of watches. The price of the watches is a major motive in the minds of the customer. Accordingly, four segments can be identified here, namely low priced, medium priced, high priced watches and luxury watches. 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. Many customers prefer mechanical and automatic watches, while others prefer quartz watches. Newer segments are also on rise such as ladies watches, childrens watches, mens watches and sport 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 customers buying decision that translates into the purchase of a watch. The retail sector has just begun to boom in India. Since the early 1990s, 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 utilise 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.

Consumer Behavior: Sports Watches

Objective
The objective of this project is to understand consumer behavior towards sport watches belonging to popular brands in India. This project covers various aspects of consumer behavior like STP (Segmentation, Target and Positioning), Learning, Attitude, Perception and Reference Groups etc. This project also encompasses gap analysis between marketers and consumer thought process with respect to sport watch segment.

Methodology
Consumer behavior towards sports watches is to be analyzed with the help of market research tool. The market research has been conducted within Delhi NCR region. The details are as follows: To understand consumer behavior towards Sport watches a Descriptive research had conducted which has revealed detail information about consumer behavior. In case of Descriptive research survey method is used in order to collect primary data. A preformed questionnaire is used for this survey. A total 25 respondent were surveyed and their responses were registered. A non probability sampling techniques is used specially a Judgment method is used due to short time duration. The information in questionnaire is coded in Microsoft Office Excel 2007 and Simple statiscal tool like Frequency, Mode, Count Etc are used to analyze and interpret findings. The findings were presented in graphical forms like bar graph, Pie chart etc.

Consumer Behavior: Sports Watches

Analysis and Graphs:

1. Brand Ranking

2. Impact of Factors

Consumer Behavior: Sports Watches

3. Usage Rate

4. Purchase Rate

Consumer Behavior: Sports Watches

5. Place of Purchase

6. Brand Association

Consumer Behavior: Sports Watches

7. Sports Association

8. Purchase Decision Influence

Consumer Behavior: Sports Watches

9. Endorser Recall

10. Purchase Decision Maker

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11. Product Knowledge

12. Trait Relation

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13.Personal Information

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Consumer Behavior: Sports Watches

Findings
The survey was conducted across 25 respondents who are user of sport watches and their behavior towards 4 brands like Reebok, Puma, Adidas and Fast Track is as follows: Among 25 respondent 8 people (32%) voted Reebok as their preferred brand, While 7 people (28%) voted for Puma and 6 people (24%) voted for Adidas. Hence there is very little difference among all these brands. In case of purchase of Sport watch the factors which play important role are predominantly Quality, Sporty look, Price, style, Reliability and Comfort in descending order as per responses recorded. Majority of people (44%) prefer to wear watch on daily basis rather than once in week (32%). So sports watches are a product of daily consumption. Most of people (48%) prefer to purchase watches with a period of more than year while in some cases watch purchase happen annually (44%). This indicates that sport watch purchase happen very frequent. As per the study most of people (76%) prefer to purchase sport watches from Company owned stores (specialty stores) this is followed by Internet shopping and sports outlets. The brand association study reveals that people have associated Reebok and Adidas with footwear, Apparel and Sports equipment while other includes sun glasses, bags and other stuff is mainly related to fast track. In case of sports association people relate these sports brand with Cricket, Football and Tennis as per chronological order. Thus Cricket is sport which mostly associated with Reebok. The brand recall is highest in case of Fast track (44%) which is followed by Reebok(40%) and least in case of Puma(28%) this indicate the popularity is maximum incase of Reebok and Fast Track.

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Consumer Behavior: Sports Watches

The purchase decision for sport watch is alone decision as 60% of respondent made their choice by themselves. The most efficient medium for communication is Internet as most of people now days prefer that only. which followed by TV. At last in case of Brand personality we found that the Brand Reebok is considered as Successful, Honest and Reliable brand while Adidas is consider as Down to earth and tough brand. The other brands like Puma is Imaginative, Upper class brand, at last Fast track is considered as Outdoor and Charming brand.

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Consumer Behavior: Sports Watches

STP OF REEBOK SPORTS WATCHES

The Reebok sports watches makers have use STP as follows Segmentation: Variables used: Demographic, Psychographic and Behavioral Demographic: Age(20-34yrs), Gender: male, Income: Middle and Upper middle, Occupation: Student, Business. Psychographic: Socio Economic, Life Style ( Innovators, Experiencers), Personality( Sports oriented, Outdoor oriented) Behavioral: Occasional (Daily users, 2-3 times in week), benefits, User status, User rate and Attitude towards product. Target: Single Segment Concentration: youth is main target for sport watch makers Positioning: The watchmakers have used brand name in order to market watches. The Brand image plays very important role in purchase of watches. So based on Brand awareness, popularity and appeal these watches are sold in market.

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Consumer Behavior: Sports Watches

Conclusion
As per our findings Reebok is most preferred brand in case of Age group 21-25 years and with income less than Rs. 15000 per month. The findings of the project are goes with actual STP of Reebok. The overall preference shows that Reebok and Fast track are the most preferred brand because they have youth appeal while Adidas become Sophisticated and classy product for youth and quite premium product. Puma is least popular because they have restricted to niche marketing concept and has not use mass communication strategy. Thus Puma is high class, imaginative product for people who used sports watches. The purchase of sports watch is frequent phenomenon as user rate is high and repetitive purchase period is low. Also Independent decision making behavior is most prevalent in youth so marketer need to address id properly and brand like Reebok is doing nicely by their campaign I am what I am. Also the celebrity endorser plays vital role in purchase of sport watches. At last Reebok which is subsidiary of Adidas has understood consumer behavior well and enjoying significant market share in sports watch segment.

Recommendation
The sport watch segment need to be more develop in terms of product length and width. Apart from Fast Track no other company has used communication strategy for sport watches. Hence more awareness in term of the product is necessary. The brands like Puma & Adidas need to work on more product as very less variants are available in their sport watches. Also they need to work on celebrity endorser as these brand have very low level of awareness or recall in consumer mind. Hence Perception is need to develop towards these brands which result into positive attitude towards these brands.

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References
www.dsir.gov.in/reports/techreps/tsr119.pdf www.indianwatchportal.com/portal/Industry.aspx indiaindustrystatistics.blogspot.com/.../indian-wrist-watch-market.ht. www.fastrack.in/ www.reebok.com/IN/ www.puma.com www.addidas.com

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.THANK YOU

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