Live your Passion Objective & Agenda Creativity Vintage Accessible Luxury Classic Heritage Collectors Value Handcrafted Automatic Swiss Geneve Industry and Competitor Analysis Understanding the Indian Watch Industry Major trends and perceptual findings Competitive Landscaping Carving a niche for FC in India Research Secondary Research - Findings Primary Research - Methodology - Insights Capability Analysis SWOT analysis Corporate Focus Pros in segmentation and focus Cons of this segmentation Expanding the focus New Positioning Brand Key 8P Framework for FC Associations Branding & Marketing of FC in India Digital Strategy CSR Watch with Devanagari Script Utilitarian product (know and manage time) Wrist Watches Mobiles Tablets Laptops Desktops Cable TV Wrist Watches Lifestyle product 10 - 15% pa Wrist watch penetration in India* *Source: Indian Journal of marketing, June 2013 **Source: Technopak Analysis Time S a l e s
v a l u e Continued growth rate every year despite the increase in substitutes* Market Segmentation by price** 1700 1600 900 370 86.5 2.1 Rs. 4200 Cr. 460 lakh pieces Value (Crore) Volume (lakh pieces) Segment Volume (lakh pieces) Price Value (Crore) Growth Rates Mass 370 <1,000 1700 5-7% Mid 86.5 1,001-10,000 1600 8-10% Premium 2.1 >10,000 900 15-20% 10-15% 27 % of the India own multiple watches* 3.5 % Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Research Industry & Competition Indian Watch Industry Low penetration and high growth rate show the opportunity in India Research Industry & Competition Indian Luxury Timepieces Source: Euromonitor Trends Luxury brands account for 4%of total timepieces sales CAGR of 24% Increased presence in smaller cities fuel sales Special events and gifting occasions supporting growth, particularly popular gifts amongst Senior corporate managers and for Government employees Men are most likely customers than women Majority of sales from store based retailing in Tier I cities Green Luxury and Social responsibility is important factor Prospects Penetration into leading jewellery and watch outlets like Malabar Gold in south India and TBZ in north India Online portals will develop as a retail channel Various brands cater to different luxury segments like affordable luxury, aspirational luxury and absolute luxury CATEGORY DATA Sales of Luxury Timepieces by Category: Value 2007-2012 Rs million 2007 2008 2009 2010 2011 2012 Men's 1,089.9 1,438.7 1,467.5 1,731.6 2,077.9 2,452.0 Women's 274.4 406.1 418.3 468.5 562.2 663.3 Total 1,364.3 1,844.8 1,885.7 2,200.1 2,640.1 3,115.3 Sales of Luxury Timepieces by Category: % Value Growth 2007-2012 % current value growth 2011/12 2007-12 CAGR 2007/12 Total Men's 18.0 17.6 125.0 Women's 18.0 19.3 141.8 Total 18.0 18.0 128.3 Forecast Sales of Luxury Timepieces by Category: Value 2012-2017 Rs million 2007 2008 2009 2010 2011 2012 Men's 2,452.0 2,795.2 3,172.6 3,585.0 4,033.2 4,517.2 Women's 663.3 774.8 903.4 1,049.8 1,217.7 1,410.1 Total 3,115.3 3,570.0 4,076.0 4,634.8 5,250.9 5,927.3 % current value growth 2011/12 2007-12 CAGR 2007/12 Total Men's 13.0 84.2 13.0 Women's 16.3 112.6 16.3 Total 13.7 90.3 13.7 Forecast Sales of Luxury Timepieces by Category: % Value Growth 2012-2017 Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Secondary Research: Published in Indian Journal of marketing, July 2013 edition Results of a Primary Research survey done to study consumer based perceptions, and predict trends Methodology: Survey Respondents: Sample size 100; 50 Gen X, 50 Gen Y Research Industry & Competition Consumer Perceptions Consumer Gen X Gen Y Comparative brand hierarchy Titan Citizen Rolex Timex Tissot Calvin Klein Casio Armani Fastrack Tommy Hilfiger Reebok Casio Gucci Diesel Calvin Klein Armani >35 years 18 35 years Duration of brand usage 7 8 years High brand loyalty (Stable) Reason for loyalty: class, status and image complement them and their personality 2 -3 years Low brand loyalty (Open to Experimentation) Reason for loyalty: contemporariness, influence Aspiration to buy costlier watches Multiple watches per individual Few people to own a watch for a particular occasion Few people to own a watch for a particular occasion Styling aspect Other factors Top-of-the-mind recall Brand tag lines - LOW Brand ambassadors HIGH Brand loyalty beyond watches - LOW Top-of-the-mind recall Brand tag lines LOW but better than Gen X Brand ambassadors HIGH Brand loyalty beyond watches - HIGH Brand image and status influence the older generation more, while others influence has a role to play among the younger generation Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Super Premium Rs 70,000 Rs 7,00,000 Premium Success, accomplishment going beyond ones limits Rs 1,20,000+ Super Premium Elegance is an attitude Rs 40,000 Rs 5,50,000 Premium Made to last beyond time Rs 6,000 Rs 1,00,000 Mid - premium Rs 1,00,000 + Omega signifies prestige and accomplishment Tag Heuer talks of self identity and self esteem Target Segment Price Points Brand Character Symbol of success; a jewel Beautiful designs, elegance A premier well engineered watch A Swiss luxury watch; Spirit of achievement A sports chronograph, self esteem Benefits Offered Swiss Swiss Swiss Swiss Japanese Origin Analysis done through Secondary Research: Studying the advertisements, websites and Social Media Competitor Analysis Research Industry & Competition All major competitors have a reasonably well defined emotional space Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity The grid below shows the top 10 brands in India* in terms of their Products Attributes and Positioning Quartz Mechanical Movements / Automatic Quartz Exclusive Luxury Accessible Luxury Mass / Lower Priced Technical Design Jewellery Sports Lifestyle Fashion Source: Swiss Luxury Watch making Industry, Karine Gautshi, 2005 *Top 10 brands in India as per retailer feedback, as provided in the case Competitor Analysis Research Industry & Competition Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Primary Research* was done in 2 stages by visiting various watch retail outlets in Mumbai Methodology: Personalised interviews and Observation Respondents: Watch Stores Retailers / Managers Location: At the retail store Stage 1: Process: Interview with owners/ managers/ sales staff of various luxury watch stores Objective: To determine luxury consumers preferences, and develop insights about their consumer behaviour and trends Stage 2: Process: In depth Interview with owners/ managers/ sales staff of 3 Frederique Constant Stores in Mumbai Objective: To determine profiles of past Frederique Constant buyers, and develop insights about customer perception about the brand Insights: Luxury customers are extremely brand conscious; One would rather buy a simple watch of a premium brand rather than a fancy watch of a brand not as premium Luxury customers are not as particular about designs as they are about the brand itself Indian luxury customers enjoy good deals are value seekers Insights: Frederique Constant is purchased / enquired about mostly by corporate people and business executives (clear results of the focus and marketing till now) An FC watch is not perceived as designer/ fashion piece at all, and more of a classic Swiss watch, purchased for quality The devanagari script watch found quite a few purchases from Politicians Research Industry & Competition Primary Research Corporate executives form the chunk of people who consider purchasing a Frederique Constant timepiece *Detailed description and results of research in Annexure 1 Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Swiss origin (Geneva) Handcrafted Automatic Mechanical Timepieces Vertical integration delivering better quality Heritage value of timepiece Corporate focus Classic sedate designs New Entrant to Indian Market Low Brand Awareness Lower number of mass campaigns (only focused promotion) No high profile ambassador Not perceived as a young persons watch Increasing disposable income More upcoming ventures to partner Corporate gifting trend Target a younger audience Communicate the long term value of an FC watch Mobile manufacturers entering the watch manufacturing space Cheaper substitutes Counterfeit watch market Older brands with higher equity in India Consumers need to be communicated about FCs Differentiators Growing market potential that needs a good marketing mix to tap Need to take up strategic brand building activities over a longer period Find ways to overcome effects of weaknesses through innovation / alternate channels Strengths Greater if it is a POD rather than just a POP Can be leveraged upon to build Competitive Advantage in the long term Opportunities Highlight new avenues to build capabilities Conducive environment changes Threats Increasing risk of environment factors Risk of current brand strategy Weaknesses Show priority areas or focus areas for Marketing Highlight wrong strategies SWOT SWOT and Brand Equity Research Industry & Competition Differentiating strengths will form the basis of building brand identity Devanagari Watch Integrated Campaign STP and Marketing Mix Understanding Brand Equity of Frederique Constant in India Research Industry & Competition Brand Equity Brand Stature (Esteem and Knowledge) B r a n d
S t r e n g t h
( D i f f e r e n t i a t i o n
a n d
R e l e v a n c e ) Niche/ Untapped Leadership Declining Eroding Unfocussed New Frederique Constant in India is differentiated in terms of its design, heritage, corporate focus and value, however, it still remains fairly niche due to the huge untapped potential Brand Asset Valuator(BAV)* by Young and Rubicam Group used to measure equity The long term goal of FC as a brand will be to move into the upper right quadrant (Leadership) Measuring the Brand Equity Points of Parity Points of Differentiation Swiss Watch Sedate, classy, clear dial designs Automatic handcrafted Live your Passion High quality Corporate Focus Durable Heritage, story of founders Collectors Value Devanagari script watch Points of Parity and Points of Difference can help understand brand equity of Frederique Constant in India *Detailed description about BAV in Annexure 3 As per primary research with watch retailers, and secondary data analysis FCs Brand Equity Objective To achieve long term leadership in India, Frederique Constant will have to create a strong, differentiated brand positioning and focus on the correct target according to the brand character Since the luxury watch industry is already crowded with multiple brands, and each of them partly own equities of craftsmanship, precision, quality, and other functional attributes of automatic watches, to create differentiation, instead of competing in the same space, Frederique Constant to create Executional equity of Live your Passion with other brand characteristics supporting as functional equities Creativity Live your Passion Vintage Accessible Luxury Heritage Collectors Value Handcrafted Automatic Swiss Geneve Devanagari Watch Integrated Campaign STP and Marketing Mix SWOT and Brand Equity Focus on Corporate Sector needs to be expanded to Professionals Segmentation Strategy STP and Marketing Mix Research Industry & Competition Focussed Identity of a Corporate Watch Untapped to a great extent by competition Offer less expensive means for focussed promotions as opposed to mass campaigns Too focussed, and the target may not resonate the brand as effectively as desired Segmentation and targeting ideally be based on psychographics for a lifestyle product Leveraging some of the merits of current Strategy and rectifying some of the cons, we propose expanding the target to a larger group of Professionals - business executives, doctors, lawyers, journalists, teachers, artists etc. Demographic Segmentation Mainly corporate executives, however also including professional businessmen , musicians, doctors, academicians, sportsmen, journalists etc. Income bracket: High income Psychographic segmentation Based on Personality, Values and Lifestyles Passionate and mature individuals who appreciate beauty of niche handcrafted automatic designer products. They desire premium products to reflect their passion SWOT and Brand Equity Devanagari Watch Integrated Campaign Positioning of Frederique Constant and building the brand The Brand Key* Model developed by HUL is used to understand the positioning of the Frederique Constant brand, and to understand strategic fit of Live your Passion for passionate professionals Research Industry & Competition Brand Positioning *Detailed description about Brand Key in Annexure 2 Essence Product Philosophy Target Root Strength Passion (profession, craftsmanship, design, interest) Value through accessibility Competitive Environment Classic designs A reflection of passionate professionals Handcrafted in Geneva ; Passionate about owning & wearing an FC watch Passionate, Appreciation for Swiss luxury, craftsmanship, classic design Luxury timepieces - handcrafted with passion Accessibility Made in Geneva Passionate endorsers, heritage of founders Live your Passion A passionate person who has a desire for exquisite luxury and craftsmanship Insight Luxury time pieces, technology watches, luxury jewellery - bracelets A passionate, confident individual wants a sedate luxury timepiece reflection of his own passion and personality STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign P P P P P P P P PERFORMANCE PAUCITY PUBLIC RELATIONS (PR) PEDIGREE PERSONA PRICING PUBLIC FIGURES PLACEMENT Product level (Functional Benefit) - handcrafted, own caliber development, beautiful designs, new technologies Experiential level (Emotional Benefit) Live your passion Handcrafted quality constrains mass production Limited POS Events Other Associations The Swiss connection Geneva Heritage: Frederique Constant first names of great grand parents of founders Distinctive projection Passion Coherence across consumer touch points events, associations Visual brand identity Long form commercials/ short film videos targeted towards professionals Activation Programs Share your Passion Garners attention, credibility and impact Personality resonates with brand aura (passionate professionals) Harsha Bhogle, Chetan Bhagat Weekly podcasts about their stories and life, distributed across digital channels Retail brand environment heightening consumer experience Niche media events, magazines, In-flight entertainment Accessible Luxury Price points Rs. 45, 000 to Rs. 2.25 lakh Key Takeaways Experiential value is as important as product excellence Pedigree is important but it is also important to generate ongoing relevance and dynamism through Persona, PR Exclusivity and Stature through paucity and placement factor Research Industry & Competition Marketing Mix 8 Ps Re-defining the Marketing Mix according to the 8Ps of Luxury marketing* *8P Analysis by BPG Group, UAE; Source: Brand channel STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Strategic advertising Events and PR Point of Sales Promotions CSR Digital Marketing Integrated Marketing Campaign Handcrafted for the Passionate Professional Recommendation IMC Research Industry & Competition Based on the STP and mix towards building the brand, what we propose for the short term is a targeted campaign under theme of Passion Mobile Devices Social Media marketing Direct Emails Website and blog Search based ads Corporate executive cricket and golf tournaments, offsites Exhibitions in 5 star hotels Annual Business Quiz Passion
Reducing the electronic waste
campaign Fund raising for specific causes Tie ups with hospitals and nursing homes Carbon positive manufacturing and service setups Print based Airlines screens Airports billboards Hotels, lounges and clubs Exclusive previews and concerts Use of technology enabled devices (e- displays) at POS Small branded collectibles with every watch (depending on collection) IMC Media Mix Liveyourpassion STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Advertising and POS Research Industry & Competition Targeted advertising in specific media will help reflect brand character, and build brand salience; POS will help improve brand imagery Get passionate people to endorse the brand not necessarily high profile celebrity endorsers, but popular individuals who are passionate about what they do Endorsers Suggested Advertising Communication Themes Gifting during festivals Gift yourself, Gift others - a perfect gift for the passionate professional Celebrate your Passion professional achievements and milestones (first job, a promotion) - Rewarding yourself with an FC- a timeless masterpiece to celebrate your passion My Passion my pride Inspirational heritage and story of Frederique Constant founders and their values and passion Channels for Advertising Magazines Besides corporate magazines already used, Forbes, Business Today and The Week Magazine Since the TG is now Professionals, lifestyle magazines like Chip, Verve, Tehelka can be added The Little Magazine featuring art, films, documentaries, poetry can be an interesting addition Billboards Outside airports, IT parks, studios, 5 star hotels In-Flight entertainment for international flights bound into India Point of Sales Marketing E- displays and screens At the POS technology enabled electronic catalogues can be used to display various ideas around Passionate. Branded FC collectibles Refine packaging to include a branded collectible with every FC watch Either it can be standard or varying as per the FC collection Examples: A Frederique Constant Stamp, a heart shaped ornament STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Inspired by passionate individuals, Manufacture is a range of exquisite handcrafted watches that signifies Passion for Innovation Elegant, Bold; Runabout is a range of handcrafted, hand polished watches for passionate professionals who have an eye for detail A collector's masterpiece; Vintage Rally is a range of exquisite handcrafted watches which are a timeless signature of the collectors passion for style and prestige Feminine and sophisticated, classic and elegant, sexy in every detail; Ladies automatic is a range of fine mechanical timepieces developed with passion by women for women. It reflects the values and aspirations of the modern, independent professional woman A Swiss masterpiece; Classic is a range of heritage watches known amongst collectors for their exceptional value; for the classic professional! Liveyourpassion FC Collections Themes Research Industry & Competition Under the leitmotif of Passionate Professionals a few communication / advertisement themes are suggested for each of the FC collections SWOT and Brand Equity Devanagari Watch STP and Marketing Mix Integrated Campaign Objective To create awareness about Frederique Constant among Passionate Professionals in a targeted manner Process Convene professionals who share passions and educate them about FC while giving them a chance to live their passion brand resonance Sponsoring Corporate Sports Tournaments. like Cricket, Polo and Golf. An FC watch as a winners memento Bringing the Passion Awards to India Extend the theme to professionals Starting an Annual Event like a Business Quiz or a Quizzes within specific Professional domains Strategic Event Partnerships with Car Shows/Rallies which FC does globally Land Rover Sponsoring Niche Professional Events and Concerts Niche events like the Mahindra Blues, Jazz concerts etc FC Exhibitions 5 star hotels Also fine dine pubs, lounges and restaurants can have promotions Events and Associations Research Industry & Competition Promotions through exclusive Events & Associations will improve Persona of the brand Partner with corporate associations for sponsorship of corporate offsites for executives Participation in events like Indian Luxury Expo & Mint Luxury Conference STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Big opportunity for brands to play a stronger role on Facebook, Twitter and other platforms 70% of consumers prefer to hear about new products from Facebook friends rather than brands* *Source: 8thBridge report, 2012 + 57% have asked their friends on Facebook for advice before purchasing a product* = Digital is a common landscape for luxury consumers, so as digital content evolves and the web grows, brands are testing how to interact with their consumers in the digital space -- Andrea Wilson, luxury practice lead, iProspect Digital Marketing Continuous engagement Big, beautiful images Detailed product descriptions Captivating lifestyle content Video and image galleries Loyalists, Frequent customers, Aspirational fans Enthusiast forums Brand moderators Digital Marketing Social media Search Website Email Mobile Apps QR codes Highly targeted High ROI High competition for attention SEO Search guides FC Smartphone App Make and share your own FC watch design on the app Get information about FC watches and events Search Engine Optimization improves through uploading of fresh content on the website Ads should be strategically placed so as to improve Emails to be sent to focussed professionals/ groups before and after events to build brand experience Have an India specific micro-site on the website Upload sponsored news and events to build identity of passion FC on Social Media Communities of Passionate Professionals Besides brand FC page, FC should have an India specific page which should continuously be uploaded with fresh content about sponsored events, associations and happenings. Since the new focused target are Passionate Professionals, create forums where they can share stories, and interact with each other Build activity through engaging content, promotions, taglines and contests Invite passionate professionals to share their stories Research Industry & Competition Mobile Devices STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign E-waste Creating awareness about the generation of tremendous amounts of e-waste generated through used cells in watches. Promoting mechanical watches and creating awareness about the longer life and collectible nature of watches. Creation of short films and viral videos to support the cause Frederique Constant - Heart Association Sponsor certain fund raising events where charities and associations can put out presentations / shows and wealthy people, corporations and institutions can donate towards the cause. Since FC is associated in a big way towards Heart diseases, partnering with heart research institutes and hospitals is strategic in India as well. Social media can be used for promotions Be a part of the Heritage: All partnering charities, associations and NGOs to be rewarded with a trip to FC HQ in Geneva Carbon Surplus All manufacturing and service centers the world over - to be carbon positive or rather carbon surplus. This can be communicated through different media Research Industry & Competition CSR Recently in August 2013, the Indian Government passed a clause where companies will have to spend 2% of their net profit on CSR projects. It gives an opportunity to Frederique Constant to tie up with corporates for such projects, providing greater brand visibility, as well as strengthening support of the brand towards social causes CSR is an increasing focus among elite luxury brands and in India this trend is all set to take off in a big way STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Ethnically Aesthetic Ethnic: a range of handcrafted watches for the Passionate Indian who attempts to build a connect with his roots while at the same time making efforts to achieve grandeur Product inline with consumers values Indian consumer sees a sign of luxury in Indian culture/ ethnicity/ royalty Focus on Political class Created for India Crafted in Switzerland For the Passionate Indian Marketing campaign on Social Media, about Indian-ness Share why youre passionate about India! Imagery to feature ancient royal Indian culture jewels, ethnic handicrafts, surroundings Promotion Campaigns along National Festivals like 15 th of August or 26 th of Jan Special strategic promotions during Gifting festivals like Diwali, Holi, Rakshabandhan etc. Research Industry & Competition Devanagari Script watch Passionate about Indian design a timepiece handcrafted for you! Primary Research suggested that the watch was fancied by Politicians STP and Marketing Mix SWOT and Brand Equity Devanagari Watch Integrated Campaign Annexure 1 Primary Research Details Brand Key Terminology Brand Asset Valuator Frederique Constant Stores visited in Mumbai The Collective, Watches of Switzerland. Interviews with store managers/ sales person Broad List of Questions / Topics discussed: 1. What do luxury watch customers (watch purchase above Rs. 20,000) prefer the most? Brand loyalty v/s design of the watch 2. What are the most important factors taken into consideration while making such a purchase? 3. What is profile of people who enquire about or consider the Frederique Constant brand? 4. What does Frederique Constant known for the most? 5. Does Frederique Constant receive a lot of corporate orders? 6. Which collection of Frederique Constant is the most popular? 7. About the watch with Devanagari script did regular FC buyers buy it or it attracted specific buyers? Photographs of display Frederique Constant Watches at the POS Annexure 1 Primary Research Details Brand Key Terminology Brand Asset Valuator Brand Loyalty Design Results of the Research Brand Design Celebrity Price range Style/ Type of watch Brand v/s Design What matters the most while making a luxury purchase Profile of people interested in FC Mainly Corporate Executives What FC is known for the most Swiss watch Sedate clean dial designs Quality Collector value Most Popular collection of FC Manufacture Collection Devanagari Script watch - India Politicians :: and People who preferred something ethnic Primary Research Details Brand Key Terminology Brand Asset Valuator and The Brand Key model consists of ten steps to establish effective brand positioning. The ten steps have been described below: 1. Root Strengths- It is the original product, values and/or beliefs that made the brand great and on which we want brand to build. 2. Competitive Environment List of competitors, including share of wallet and share of mind 3. Target Its the person and the situation for which the brand is always the best choice, defined in terms of their attitudes and values, and not just demographics. 4. Insight The element of all you know about the target customer and their needs on which the brand is founded. 5. Benefits The differentiating functional, emotional and sensory benefits that motivate purchase. 6. Values, Beliefs and Personalities The brand values what the brand stands for and believes in and its own personality. 7. Product Philosophy Our guiding product beliefs and principles and how we prove these principles through product experience. 8. Reasons to Believe These are the proofs we offer to substantiate the benefits/brand experience 9. Discriminator The single most competing and competitive reason for the target consumer to choose the brand. 10.Essence - The distillation of the brand into a core idea or promise. Annexure 2 Brand Key Terminology Brand Asset Valuator Primary Research Details The Brand Asset Valuator Model (Trademark of Young & Rubicam Group) measures brand equity based on 4 parameters, as explained below: 1. Differentiation: Difference, uniqueness and distinctiveness Reflecting the brands essence and ability to stand out from competition. Also captures the brands ability to command a premium. 2. Relevance: Personal appropriation to customers of the target group. Relevance is the source of the brands staying power. 3. Esteem: The degree to which the target group likes the brand, and understands how it fulfils its brand promise. Esteem is influenced by popularity and quality. 4. Knowledge: It means the ability of customers to internalize what the brand stands for. Knowledge is generally achieved over time, and marketing and media is crucial in achieving this. Brand Relevance and Differentiation together make up Brand Strength Brand esteem and knowledge make up Brand Stature Annexure 3