TABLE OF CONTENTS

Chapter 1

Executive summary

Literature Review

Objective of the study

Chapter 2

Introduction

a)History of wrist watches

b) Early growth

c) Recent Development

Chapter 3

a) Wrist watch business in India

b) Recent step taken in India

Chapter 4

Market segmentation

Mens wrist watch

Womens wrist watch

Kids wrist watch

Watches according to the ceremony,marriage purpose,gifts

Chapter -5

Market strategy of different watch company

Titan

1
 Hmt

Maxima

Timex

Rado

Swiss

Chapter-6

Organised player

Titan

Maxima

Hmt

Timex

Citizen

Casio

Seiko

Chapter -7

Product planning

Expansion of watches

Chapter-8

How company generate revenue by wrist watches.

Chapter -9

My experience.

Chapter -10

Consumer behavior of different segment towards wrist watches.

2
A market survey.

Questionnaire

Chapter-11

Conclusion

Finding

Suggestion

Bibliography

EXECUTIVE SUMMARY

This report introduces a brief study of marketing segmentation of different wrist watches
for its customers. The study report will provide an opportunity to know customers
psychographic needs, it may provide an opportunity to the Wrist watch to frame a good
future plan to satisfy maximum needs, taste and preferences of the customers and
established its guiding role in the market and in marketing plan in particular area. An
Analysis report provides detailed information about using the opportunities in market
competition and thus prepares itself to meet the market challenge by making adjustment
in its new strategy and promotions activities.

3
Gone are the days when people were very unsure about the future and hardly cared about
it in terms of technological developments. But the situation has changed now. In the new
millennium, people often feel a growing uneasiness about the future. Certainly many
countries today are suffering from chronic high unemployment, a persistent deficit of
economy and gradual deterioration of purchasing power. Nations are passing through a
phase of rapid transformation. Forces are mostly responsible for these types of drastic
changes; they are explosive growth of trade and international competition. This new era
has witnessed remarkable advancement in the availability of information and a number of
large companies operations in such market where the principal of natural selection lead to
survival of the fittest. Market provides a key to gain actual success only to those
companies which match best to the current environment i.e. imperative which can be
delivered what are the people needs and they are ready to buy at the right time without
any delay. It is perfectly true but this also depends on the availability of good quality
products and excellent services, which further attract and add a golden opportunity for
huge sales. This also depends on the good planning approach and provide ample
opportunity plus sufficient amount of products for sales in the coming next financial year.

LITERATURE REVIEW
In this report I have described the facts and theories which were seen by me in field. I have
described the market mix in this report and then I have applied the marketing mix to the
MTNLs products. I have given full description about the marketing strategy, how it works
and how it plays a vital role in selling the product. I have described about the advertisement
and how it play a very important role in selling the product. I have also described promotion
and various tools of promotion. I have described various types of pricing strategies used by
the different companies and the strategy used by the MTNL for selling its products. I have
given full description of the segmentation, what is the role of segmentation, types of
segmentation, targeting and positioning is also explained by me.

4
I have explained the strategy used by MTNL for 3G and how it is trying to take the
advantage of monopoly because right now it is single in the market and private player will
come after few months. Here I am giving the brief of marketing and the rest topics are in the
form of chapters.

Marketing

Marketing is an ongoing process of planning and executing the marketing mix (Product,
Price, Place, and Promotion) for products, services or ideas to create exchange between
individuals and organizations.

Marketing tends to be seen as a creative industry, which includes advertising, distribution

and selling. It is also concerned with anticipating the customers' future needs and wants,
which are often discovered through market research. Essentially, marketing is the process of
creating or directing an organization to be successful in selling a product or service that
people not only desire, but are willing to buy.

Its specialist areas include:

Advertising and branding

Communications
Database marketing
Direct Marketing
Event organization
Global marketing
International marketing
Internet marketing
Industrial marketing
Market research
Public Relations
Retailing
Search Engine Marketing

5
 Marketing Strategy
Marketing Plan
Strategic Management

Concept of Marketing

Marketing is an instructive business domain that serves to inform and educate target
markets about the value and competitive advantage of a company and its products.
Value (marketing) is worth derived by the customer from owning and using the
product. Competitive Advantage is a depiction that the company or its products are
each doing something better than their competition in a way that could benefit the
customer.

Marketing is focused on the task of conveying pertinent company and product related
information to specific customers, and there are a multitude of decisions (strategies) to be
made within the marketing domain regarding what information to deliver, how much
information to deliver, to whom to deliver, how to deliver, when to deliver, and where to
deliver. Once the decisions are made, there are numerous ways (tactics) and processes
that could be employed in support of the selected strategies.

The goal of marketing is to build and maintain a preference for a company and its
products within the target markets. The goal of any business is to build mutually
profitable and sustainable relationships with its customers. While all business domains
are responsible for accomplishing this goal, the marketing domain bears a significant
share of the responsibility.

Within the larger scope of its definition, marketing is performed through the actions of
three coordinated disciplines named: Product Marketing, Corporate Marketing, and
Marketing Communications.

6
 Two levels of marketing

Strategic marketing attempts to determine how an organization competes against its

competitors in a market place. In particular, it aims at generating a competitive advantage
relative to its competitors.

Operational marketing executes marketing functions to attract and keep customers and
to maximize the value derived for them, as well as to satisfy the customer with prompt
services and meeting the customer expectations. Operational Marketing includes the
determination of the porter's five forces model

1. INTRODUCTION
a) History of wrist watch
Over the centuries clocks have been used as a status symbol by those who wear them.
Their precision, elegance and convenience are just some of the attributes that clocks and
watches represent. Often they are bought purely for their aesthetic looks. and at other
times they are bought because of their technical attributes like being precise to the last
second or even millisecond. This is what makes clocks and watches so collectible and in
some cases they can command high sums of money.

Whether you collect the new high precision watches or ones that come from a past era,
the fact is that over the years this hobby has become a high turnover business. And
collecting watches is in a lot of circles regarded as a wise form of investing.

At the start of the last century the clocks that were available for men or women were
firstly pocket clocks, and then clocks that held by a pendant attached to the lining of
jackets or corsets. The advent of war, industrialization, and the development of the sport
activities, brought over new trends which extended to not only the way we dressed, but
also how we carried our clocks.

It is said that it was a nanny who invented wrist watches at around the end of the 19th
century, who fixed a clock around her wrist by using a silk band. The first watches to be

7
made were in fact smaller models of pocket clocks that were fitted with a leather strap.
Once this product hit the market newer designs started to be produced based around this
same concept.

It was Louis Cartier who first made the kind of watches we see today when he created a
watch for a flying pioneer hero by the name Santos Dumont. By 1911 this same type of
watch was on general sale. That same type of watch became the blueprint of what wrist
watches look like to this day.

Soon after the design of wrist "clocks" began to diversify away from the classical round
shape that had been in vogue up until that time. From the Cartier classical wrist watch
other makes of watch started to emerge which were characterized by their shape. Movado
is the perfect example of these new designs when it came out with the "Polyplan" shaped
watch. Then came the famously and cryptically called "clock reference n. 1593" by Patek
Philippe which was a rectangular shaped watch.

From 1913 onwards more and more watches started to be developed in all shapes and
styles. From the "gondola" watch of Patek Phillipe to Louis Cartiers' "Tank"; named thus
because it was inspired by the shape of English armored cars of the time. These are
watches which are very much sought after. There were other numerous watch makers like
Audemars Piguet, Vacheron Constantin who along with Patek Philippe and Cartier came
out with many other designs which added other features to the watches like lunar phases,
month and day most of which are found in modern watches now.

Of course we could not mention wrist watches without mentioning the most famous of
them all: the Rolex watch. In the 1920s Rolex debuted in the world of wrist watches with
the elegant Rolex Prince and its revolutionary "dual time" feature made famous for
having the "seconds sector" larger than that of the minutes. At the same time Jaeger Le
Coultre produced an even more advanced piece called the "Reverse", also very
revolutionary in that it could be turn 180 degrees within its case, thus protecting the

8
crystal and dial. It became incredibly popular and was only prevented from achieving
even greater success by the recession of the 1930s and the advent of world war 2.

These early watches of the 1910s to 1930s are what define all the makes of watches that
we see and wear today. This short article has only scratched the surface of what is a very
vast subject which has many more watch makers with diverse and revolutionary designs.
However it is makers like Rolex, Cartier, Jaeger Le Coultre and the others mentioned that
are amongst the most valuable and collectible, and should you ever be so lucky to get one
then make sure you hang on to it - preferably to your wrist.
For thousands of years, devices have been used to measure and keep track of time. The
current sexagesimal system of time measurement dates to approximately 2000 BC, in
Sumer. The Ancient Egyptians divided the day into two 12-hour periods, and used large
obelisks to track the movement of the Sun. They also developed water clocks, which
were probably first used in the Precinct of Amun-Re, and later outside Egypt as well;
they were employed frequently by the Ancient Greeks, who called them clepsydrae. The
Shang Dynasty is believed to have used the outflow water clock around the same time,
devices which were introduced from Mesopotamia as early as 2000 BC. Other ancient
timekeeping devices include the candle clock, used in China, Japan, England and Iraq;
the timestick, widely used in India and Tibet, as well as some parts of Europe; and the
hourglass, which functioned similarly to a water clock.
The earliest clocks relied on shadows cast by the sun, and hence were not useful in
cloudy weather or at night and required recalibration as the seasons changed (if the
gnomon was not aligned with the Earth's axis). The earliest known clock with a water-
powered escapement mechanism, which transferred rotational energy into intermittent
motions,[1] dates back to 3rd century BC ancient Greece;[2] Chinese engineers later
invented clocks incorporating mercury-powered escapement mechanisms in the 10th
century,[3] followed by Arabic engineers inventing water clocks driven by gears and
weights in the 11th century.[4]
Mechanical clocks employing the verge escapement mechanism were invented in Europe
at the turn of the 14th century, and became the standard timekeeping device until the
spring-powered clock and pocket watch in the 16th century, followed by the pendulum

9
clock in the 18th century. During the 20th century, quartz oscillators were invented,
followed by atomic clocks. Although first used in laboratories, quartz oscillators were
both easy to produce and accurate, leading to their use in wristwatches. Atomic clocks are
far more accurate than any previous timekeeping device, and are used to calibrate other
clocks and to calculate the proper time on Earth; a standardized civil system, Coordinated
Universal Time, is based on atomic time.

b) Early growth
Many ancient civilizations observed astronomical bodies, often the Sun and Moon, to
determine times, dates, and seasons.[5][6] Methods of sexagesimal timekeeping, now
common in Western society, first originated nearly 4,000 years ago in Mesopotamia and
Egypt;[5][7][8] a similar system was developed later in Mesoamerica.[9] The first
calendars may have been created during the last glacial period, by hunter-gatherers who
employed tools such as sticks and bones to track the phases of the moon or the
seasons.[6] Stone circles, such as England's Stonehenge, were built in various parts of the
world, especially in Prehistoric Europe, and are thought to have been used to time and
predict seasonal and annual events such as equinoxes or solstices.[6][10] As those
megalithic civilizations left no recorded history, little is known of their calendars or
timekeeping methods.[11]
[edit] 3500 BC 500 BC
See also: History of timekeeping devices in Egypt
Sundials have their origin in shadow clocks, which were the first devices used for
measuring the parts of a day.[12] The oldest known shadow clock is from Egypt, and was
made from green schist. Ancient Egyptian obelisks, constructed about 3500 BC, are also
among the earliest shadow clocks.[6][13][14]

The Luxor Obelisk in Place de la Concorde, Paris, France

Egyptian shadow clocks divided daytime into 10 parts, with an additional four "twilight
hours"two in the morning, and two in the evening. One type of shadow clock consisted
of a long stem with five variable marks and an elevated crossbar which cast a shadow

10
over those marks. It was positioned eastward in the morning, and was turned west at
noon. Obelisks functioned in much the same manner: the shadow cast on the markers
around it allowed the Egyptians to calculate the time. The obelisk also indicated whether
it was morning or afternoon, as well as the summer and winter solstices.[6][15] A third
shadow clock, developed c. 1500 BC, was similar in shape to a bent T-square. It
measured the passage of time by the shadow cast by its crossbar on a non-linear rule. The
T was oriented eastward in the mornings, and turned around at noon, so that it could cast
its shadow in the opposite direction.[16]
Although accurate, shadow clocks relied on the sun, and so were useless at night and in
cloudy weather.[15][17] The Egyptians therefore developed a number of alternative
timekeeping instruments, including water clocks, hourglasses, and a system for tracking
star movements. The oldest description of a water clock is from the tomb inscription of
the 16th-century BC Egyptian court official Amenemhet, identifying him as its
inventor.[18] There were several types of water clocks, some more elaborate than others.
One type consisted of a bowl with small holes in its bottom, which was floated on water
and allowed to fill at a near-constant rate; markings on the side of the bowl indicated
elapsed time, as the surface of the water reached them. The oldest-known waterclock was
found in the tomb of pharaoh Amenhotep I (15251504 BC), suggesting that they were
first used in ancient Egypt.[15][19][20] The ancient Egyptians are also believed to be the
inventors of the hourglass, which consisted of two vertically aligned glass chambers
connected by a small opening. When the hourglass was turned over, grains of sand fell at
a constant rate from one chamber to the other.[17] Another Egyptian method of
determining the time during the night was using plumb-lines called merkhets. In use since
at least 600 BC, two of these instruments were aligned with Polaris, the north pole star, to
create a northsouth meridian. The time was accurately measured by observing certain
stars as they crossed the line created with the merkhets.[15][21]
[edit] 500 BC 1 BC

Ctesibius's clepsydra from the 3rd century BC. Clepsydra, literally water thief, is the
Greek word for water clock.[22]

11
Water clocks, or clepsydrae, were commonly used in Ancient Greece following their
introduction by Plato, who also invented a water-based alarm clock.[23][24] One account
of Plato's alarm clock describes it as depending on the nightly overflow of a vessel
containing lead balls, which floated in a columnar vat. The vat held a steadily increasing
amount of water, supplied by a cistern. By morning, the vessel would have floated high
enough to tip over, causing the lead balls to cascade onto a copper platter. The resultant
clangor would then awaken Plato's students at the Academy.[25] Another possibility is
that it comprised two jars, connected by a siphon. Water emptied until it reached the
siphon, which transported the water to the other jar. There, the rising water would force
air through a whistle, sounding an alarm.[24] The Greeks and Chaldeans regularly
maintained timekeeping records as an essential part of their astronomical observations.
Greek astronomer, Andronicus of Cyrrhus, supervised the construction of the Tower of
the Winds in Athens in the 1st century B.C.
In Greek tradition, clepsydrae were used in court; later, the Romans adopted this practice,
as well. There are several mentions of this in historical records and literature of the era;
for example, in Theaetetus, Plato says that "Those men, on the other hand, always speak
in haste, for the flowing water urges them on".[26] Another mention occurs in Lucius
Apuleius' The Golden Ass: "The Clerk of the Court began bawling again, this time
summoning the chief witness for the prosecution to appear. Up stepped an old man,
whom I did not know. He was invited to speak for as long as there was water in the clock;
this was a hollow globe into which water was poured through a funnel in the neck, and
from which it gradually escaped through fine perforations at the base".[27] The clock in
Apuleius' account was one of several types of water clock used. Another consisted of a
bowl with a hole in its centre, which was floated on water. Time was kept by observing
how long the bowl took to fill with water.[28]
Although clepsydrae were more useful than sundialsthey could be used indoors, during
the night, and also when the sky was cloudythey were not as accurate; the Greeks,
therefore, sought a way to improve their water clocks.[29] Although still not as accurate
as sundials, Greek water clocks became more accurate around 325 BC, and they were
adapted to have a face with an hour hand, making the reading of the clock more precise
and convenient. One of the more common problems in most types of clepsydrae was

12
caused by water pressure: when the container holding the water was full, the increased
pressure caused the water to flow more rapidly. This problem was addressed by Greek
and Roman horologists beginning in 100 BC, and improvements continued to be made in
the following centuries. To counteract the increased water flow, the clock's water
containersusually bowls or jugswere given a conical shape; positioned with the wide
end up, a greater amount of water had to flow out in order to drop the same distance as
when the water was lower in the cone. Along with this improvement, clocks were
constructed more elegantly in this period, with hours marked by gongs, doors opening to
miniature figurines, bells, or moving mechanisms.[15] There were some remaining
problems, however, which were never solved, such as the effect of temperature. Water
flows more slowly when cold, or may even freeze.[30]
Although the Greeks and Romans did much to advance water clock technology, they still
continued to use shadow clocks. The mathematician and astronomer Theodosius of
Bithynia, for example, is said to have invented a universal sundial that was accurate
anywhere on Earth, though little is known about it.[31] Others wrote of the sundial in the
mathematics and literature of the period. Marcus Vitruvius Pollio, the Roman author of
De Architectura, wrote on the mathematics of gnomons, or sundial blades.[32] During the
reign of Emperor Augustus, the Romans constructed the largest sundial ever built, the
Solarium Augusti. Its gnomon was an obelisk from Heliopolis.[33] Similarly, the obelisk
from Campus Martius was used as the gnomon for Augustus' zodiacal sundial.[34] Pliny
the Elder records that the first sundial in Rome arrived in 264 BC, looted from Catania,
Sicily; according to him, it gave the incorrect time until the markings and angle
appropriate for Rome's latitude were useda century later.[35]
[edit] AD 1 AD 1500
[edit] Water clocks

The water-powered elephant clock by Al-Jazari, 1206.

Joseph Needham speculated that the introduction of the outflow clepsydra to China,
perhaps from Mesopotamia, occurred as far back as the 2nd millennium BC, during the
Shang Dynasty, and at the latest by the 1st millennium BC. By the beginning of the Han

13
Dynasty, in 202 BC, the outflow clepsydra was gradually replaced by the inflow
clepsydra, which featured an indicator rod on a float. To compensate for the falling
pressure head in the reservoir, which slowed timekeeping as the vessel filled, Zhang
Heng added an extra tank between the reservoir and the inflow vessel. Around 550 AD,
Yin Gui was the first in China to write of the overflow or constant-level tank added to the
series, which was later described in detail by the inventor Shen Kuo. Around 610, this
design was trumped by two Sui Dynasty inventors, Geng Xun and Yuwen Kai, who were
the first to create the balance clepsydra, with standard positions for the steelyard
balance.[36] Joseph Needham states that:
... [the balance clepsydra] permitted the seasonal adjustment of the pressure head in the
compensating tank by having standard positions for the counterweight graduated on the
beam, and hence it could control the rate of flow for different lengths of day and night.
With this arrangement no overflow tank was required, and the two attendants were
warned when the clepsydra needed refilling.[36]
Between 270 BC and 500 AD, Hellenistic (Ctesibius, Hero of Alexandria, Archimedes)
and Roman horologists and astronomers were developing more elaborate mechanized
water clocks. The added complexity was aimed at regulating the flow and at providing
fancier displays of the passage of time. For example, some water clocks rang bells and
gongs, while others opened doors and windows to show figurines of people, or moved
pointers, and dials. Some even displayed astrological models of the universe.
Some of the most elaborate water clocks were designed by Muslim engineers. In
particular, the water clocks by Al-Jazari in 1206 are credited for going "well beyond
anything" that had preceded them. In his treatise, he describes one of his water clocks, the
elephant clock. The clock recorded the passage of temporal hours, which meant that the
rate of flow had to be changed daily to match the uneven length of days throughout the
year. To accomplish this, the clock had two tanks: the top tank was connected to the time
indicating mechanisms and the bottom was connected to the flow control regulator. At
daybreak the tap was opened and water flowed from the top tank to the bottom tank via a
float regulator that maintained a constant pressure in the receiving tank.[37]
[edit] Candle clocks

14
A candle clock
It is not known specifically where and when candle clocks were first used; however, their
earliest mention comes from a Chinese poem, written in 520 by You Jianfu. According to
the poem, the graduated candle was a means of determining time at night. Similar candles
were used in Japan until the early 10th century.[38]
The candle clock most commonly mentioned and written of is attributed to King Alfred
the Great. It consisted of six candles made from 72 pennyweights of wax, each 12 inches
(30 cm) high, and of uniform thickness, marked every inch (2.5 cm). As these candles
burned for about four hours, each mark represented 20 minutes. Once lit, the candles
were placed in wooden framed glass boxes, to prevent the flame from extinguishing.[39]
The most sophisticated candle clocks of their time were those of Al-Jazari in 1206. One
of his candle clocks included a dial to display the time and, for the first time, employed a
bayonet fitting, a fastening mechanism still used in modern times.[40] Donald Routledge
Hill described Al-Jazari's candle clocks as follows:
The candle, whose rate of burning was known, bore against the underside of the cap, and
its wick passed through the hole. Wax collected in the indentation and could be removed
periodically so that it did not interfere with steady burning. The bottom of the candle
rested in a shallow dish that had a ring on its side connected through pulleys to a
counterweight. As the candle burned away, the weight pushed it upward at a constant
speed. The automata were operated from the dish at the bottom of the candle. No other
candle clocks of this sophistication are known.[41]

An oil-lamp clock
A variation on this theme were oil-lamp clocks. These early timekeeping devices
consisted of a graduated glass reservoir to hold oil usually whale oil, which burned
cleanly and evenly supplying the fuel for a built-in lamp. As the level in the reservoir
dropped, it provided a rough measure of the passage of time.
[edit] Incense clocks
Main article: Incense clock

15
In addition to water, mechanical, and candle clocks, incense clocks were used in the Far
East, and were fashioned in several different forms.[42] Incense clocks were first used in
China around the 6th century; in Japan, one still exists in the Shsin,[43] although its
characters are not Chinese, but Devanagari.[44] Due to their frequent use of Devanagari
characters, suggestive of their use in Buddhist ceremonies, Edward H. Schafer speculated
that incense clocks were invented in India.[44] Although similar to the candle clock,
incense clocks burned evenly and without a flame; therefore, they were more accurate
and safer for indoor use.[45]
Several types of incense clock have been found, the most common forms include the
incense stick and incense seal.[46][47] An incense stick clock was an incense stick with
calibrations;[47] most were elaborate, sometimes having threads, with weights attached,
at even intervals. The weights would drop onto a platter or gong below, signifying that a
certain amount of time had elapsed. Some incense clocks were held in elegant trays;
open-bottomed trays were also used, to allow the weights to be used together with the
decorative tray.[48][49] Sticks of incense with different scents were also used, so that the
hours were marked by a change in fragrance.[50] The incense sticks could be straight or
spiraled; the spiraled ones were longer, and were therefore intended for long periods of
use, and often hung from the roofs of homes and temples.[51]
In Japan, a geisha was paid for the number of senkodokei (incense sticks) that had been
consumed while she was present, a practice which continued until 1924.[52] Incense seal
clocks were used for similar occasions and events as the stick clock; while religious
purposes were of primary importance,[46] these clocks were also popular at social
gatherings, and were used by Chinese scholars and intellectuals.[53] The seal was a
wooden or stone disk with one or more grooves etched in it[46] into which incense was
placed.[54] These clocks were common in China,[53] but were produced in fewer
numbers in Japan.[55] To signal the passage of a specific amount of time, small pieces of
fragrant woods, resins, or different scented incenses could be placed on the incense
powder trails. Different powdered incense clocks used different formulations of incense,
depending on how the clock was laid out.[56] The length of the trail of incense, directly
related to the size of the seal, was the primary factor in determining how long the clock

16
would last; all burned for long periods of time, ranging between 12 hours and a
month.[57][58][59]
While early incense seals were made of wood or stone, the Chinese gradually introduced
disks made of metal, most likely beginning during the Song dynasty. This allowed
craftsmen to more easily create both large and small seals, as well as design and decorate
them more aesthetically. Another advantage was the ability to vary the paths of the
grooves, to allow for the changing length of the days in the year. As smaller seals became
more readily available, the clocks grew in popularity among the Chinese, and were often
given as gifts.[60] Incense seal clocks are often sought by modern-day clock collectors;
however, few remain that have not already been purchased or been placed on display at
museums or temples.[55]
[edit] Clocks with gears and escapements

Greek washstand automaton working with the earliest escapement. The mechanism was
also used in Greek water clocks.[61]
The earliest instance of a liquid-driven escapement was described by the Greek engineer
Philo of Byzantium (fl. 3rd century BC) in his technical treatise Pneumatics (chapter 31)
where he likens the escapement mechanism of a washstand automaton with those as
employed in (water) clocks.[61] Another early clock to use escapements was built during
the 7th century AD in Chang'an, by Tantric monk and mathematician, Yi Xing, and
government official Liang Lingzan.[62][63] An astronomical instrument that served as a
clock, it was discussed in a contemporary text as follows:[64]
[It] was made in the image of the round heavens and on it were shown the lunar mansions
in their order, the equator and the degrees of the heavenly circumference. Water, flowing
into scoops, turned a wheel automatically, rotating it one complete revolution in one day
and night. Besides this, there were two rings fitted around the celestial sphere outside,
having the sun and moon threaded on them, and these were made to move in circling
orbit ... And they made a wooden casing the surface of which represented the horizon,
since the instrument was half sunk in it. It permitted the exact determinations of the time
of dawns and dusks, full and new moons, tarrying and hurrying. Moreover, there were

17
two wooden jacks standing on the horizon surface, having one a bell and the other a drum
in front of it, the bell being struck automatically to indicate the hours, and the drum being
beaten automatically to indicate the quarters. All these motions were brought about by
machinery within the casing, each depending on wheels and shafts, hooks, pins and
interlocking rods, stopping devices and locks checking mutually.[64]

The original diagram of Su Song's book showing the inner workings of his clock tower
Since Yi Xing's clock was a water clock, it was affected by temperature variations. That
problem was solved in 976 by Zhang Sixun by replacing the water with mercury, which
remains liquid down to 39 C (38 F). Zhang implemented the changes into his clock
tower, which was about 10 metres (33 ft) tall, with escapements to keep the clock turning
and bells to signal every quarter-hour. Another noteworthy clock, the elaborate Cosmic
Engine, was built by Su Song, in 1088. It was about the size of Zhang's tower, but had an
automatically rotating armillary spherealso called a celestial globefrom which the
positions of the stars could be observed. It also featured five panels with mannequins
ringing gongs or bells, and tablets showing the time of day, or other special times.[15]
Furthermore, it featured the first known endless power-transmitting chain drive in
horology.[3] Originally built in the capital of Kaifeng, it was dismantled by the Jin army
and sent to the capital of Yanjing (now Beijing), where they were unable to put it back
together. As a result, Su Song's son Su Xie was ordered to build a replica.[65]

Drawing of the Jayrun Water Clock in Damascus from the treatise On the Construction of
Clocks and their Use (1203)
The clock towers built by Zhang Sixun and Su Song, in the 10th and 11th centuries,
respectively, also incorporated a striking clock mechanism, the use of clock jacks to
sound the hours.[66] A striking clock outside of China was the Jayrun Water Clock, at
the Umayyad Mosque in Damascus, Syria, which struck once every hour. It was
constructed by Muhammad al-Sa'ati in the 12th century, and later described by his son
Ridwan ibn al-Sa'ati, in his On the Construction of Clocks and their Use (1203), when

18
repairing the clock.[67] In 1235, an early monumental water-powered alarm clock that
"announced the appointed hours of prayer and the time both by day and by night" was
completed in the entrance hall of the Mustansiriya Madrasah in Baghdad.[68]
The first geared clock was invented in the 11th century by the Arab engineer Ibn Khalaf
al-Muradi in Islamic Iberia; it was a water clock that employed a complex gear train
mechanism, including both segmental and epicyclic gearing,[4][69] capable of
transmitting high torque.[70] The clock was unrivalled in its use of sophisticated complex
gearing, until the mechanical clocks of the mid-14th century.[69][70] Al-Muradi's clock
also employed the use of mercury in its hydraulic linkages,[71][72] which could function
mechanical automata.[72] Al-Muradi's work was known to scholars working under
Alfonso X of Castile,[73] hence the mechanism may have played a role in the
development of the European mechanical clocks.[69] Other monumental water clocks
constructed by medieval Muslim engineers also employed complex gear trains and arrays
of automata.[74] Like the earlier Greeks and Chinese, Arab engineers at the time also
developed a liquid-driven escapement mechanism which they employed in some of their
water clocks. Heavy floats were used as weights and a constant-head system was used as
an escapement mechanism,[4] which was present in the hydraulic controls they used to
make heavy floats descend at a slow and steady rate.[74]
A mercury clock, described in the Libros del saber de Astronomia, a Spanish work from
1277 consisting of translations and paraphrases of Arabic works, is sometimes quoted as
evidence for Muslim knowledge of a mechanical clock. However, the device was actually
a compartmented cylindrical water clock,[75] which the Jewish author of the relevant
section, Rabbi Isaac, constructed using principles described by a philosopher named
"Iran", identified with Heron of Alexandria (fl. 1st century AD), on how heavy objects
may be lifted.
Astronomical clocks

Astrolabes were used as astronomical clocks by Muslim astronomers at mosques and

observatories.

19
During the 11th century in the Song Dynasty, the Chinese astronomer, horologist and
mechanical engineer Su Song created a water-driven astronomical clock for his clock
tower of Kaifeng City. It incorporated an escapement mechanism as well as the earliest
known endless power-transmitting chain drive, which drove the armillary sphere.
Contemporary Muslim astronomers also constructed a variety of highly accurate
astronomical clocks for use in their mosques and observatories, such as the water-
powered astronomical clock by Al-Jazari in 1206, and the astrolabic clock by Ibn al-
Shatir in the early 14th century.[80] The most sophisticated timekeeping astrolabes were
the geared astrolabe mechanisms designed by Ab Rayhn Brn in the 11th century and
by Muhammad ibn Abi Bakr in the 13th century. These devices functioned as
timekeeping devices and also as calenders.

Castle clock by Al-Jazari in 1206

A sophisticated water-powered astronomical clock was built by Al-Jazari in 1206. This
castle clock is considered by some to be an early example of a programmable analog
computer. It was a complex device that was about 11 feet high, and had multiple
functions alongside timekeeping. It included a display of the zodiac and the solar and
lunar orbits, and a pointer in the shape of the crescent moon which travelled across the
top of a gateway, moved by a hidden cart and causing automatic doors to open, each
revealing a mannequin, every hour. It was possible to re-program the length of day and
night in order to account for the changing lengths of day and night throughout the year.
This clock also featured a number of automata including falcons and musicians who
automatically played music when moved by levers operated by a hidden camshaft
attached to a water wheel.
Modern devices
Modern devices of ancient origin

A 20th-century sundial in Seville, Andalusia, Spain

20
Sundials were further developed by Muslim astronomers. As the ancient dials were
nodus-based with straight hour-lines, they indicated unequal hoursalso called
temporary hoursthat varied with the seasons. Every day was divided into 12 equal
segments regardless of the time of year; thus, hours were shorter in winter and longer in
summer. The idea of using hours of equal length throughout the year was the innovation
of Abu'l-Hasan Ibn al-Shatir in 1371, based on earlier developments in trigonometry by
Muhammad ibn Jbir al-Harrn al-Battn (Albategni). Ibn al-Shatir was aware that
"using a gnomon that is parallel to the Earth's axis will produce sundials whose hour lines
indicate equal hours on any day of the year". His sundial is the oldest polar-axis sundial
still in existence. The concept appeared in Western sundials starting in 1446.
Following the acceptance of heliocentrism and equal hours, as well as advances in
trigonometry, sundials appeared in their present form during the Renaissance, when they
were built in large numbers. In 1524, the French astronomer Oronce Fin constructed an
ivory sundial, which still exists; later, in 1570, the Italian astronomer Giovanni Padovani
published a treatise including instructions for the manufacture and laying out of mural
(vertical) and horizontal sundials. Similarly, Giuseppe Biancani's Constructio instrumenti
ad horologia solaria (c. 1620) discusses how to construct sundials.
The Portuguese navigator Ferdinand Magellan used 18 hourglasses on each ship during
his circumnavigation of the globe in 1522. Since the hourglass was one of the few
reliable methods of measuring time at sea, it is speculated that it had been used on board
ships as far back as the 11th century, when it would have complemented the magnetic
compass as an aid to navigation. However, the earliest evidence of their use appears in
the painting Allegory of Good Government, by Ambrogio Lorenzetti, from 1338. From
the 15th century onwards, hourglasses were used in a wide range of applications at sea, in
churches, in industry, and in cooking; they were the first dependable, reusable,
reasonably accurate, and easily constructed time-measurement devices. The hourglass
also took on symbolic meanings, such as that of death, temperance, opportunity, and
Father Time, usually represented as a bearded, old man. Though also used in China, the
hourglass's history there is unknown.
Clocks

21
The astronomical clock of St Albans Abbey, built by its abbot, Richard of Wallingford
Clocks encompass a wide spectrum of devices, ranging from wristwatches to the Clock of
the Long Now. The English word clock is said to derive from the Middle English clokke,
Old North French cloque, or Middle Dutch clocke, all of which mean bell, and are
derived from the Medieval Latin clocca, also meaning bell. Indeed, bells were used to
mark the passage of time; they marked the passage of the hours at sea and in abbeys.
Throughout history, clocks have had a variety of power sources, including gravity,
springs, and electricity.The invention of mechanical clockwork itself is usually credited
to the Chinese official Liang Lingzan and monk Yi Xing. However, mechanical clocks
were not widely used in the West until the 14th century. Clocks were used in medieval
monasteries to keep the regulated schedule of prayers. The clock continued to be
improved, with the first pendulum clock being designed and built in the 17th century by
Christiaan Huygens, a Dutch scientist. Early Western mechanical clocks
The earliest medieval European clockmakers were Christian monks. Medieval religious
institutions required clocks because daily prayer and work schedules were strictly
regulated. This was done by various types of time-telling and recording devices, such as
water clocks, sundials and marked candles, probably used in combination. When
mechanical clocks were used, they were often wound at least twice a day to ensure
accuracy. Important times and durations were broadcast by bells, rung either by hand or
by a mechanical device, such as a falling weight or rotating beater.
As early as 850, Pacificus, archdeacon of Verona, constructed a water clock (horologium
nocturnum).
The religious necessities and technical skill of the medieval monks were crucial factors in
the development of clocks, as the historian Thomas Woods writes:
The monks also counted skillful clock-makers among them. The first recorded clock was
built by the future Pope Sylvester II for the German town of Magdeburg, around the year
996. Much more sophisticated clocks were built by later monks. Peter Lightfoot, a 14th-
century monk of Glastonbury, built one of the oldest clocks still in existence, which now
sits in excellent condition in London's Science Museum.

22
Da Dondi's 1364 Padua clock
The appearance of clocks in writings of the 11th century implies that they were well-
known in Europe in that period.[104] In the early 14th century, the Florentine poet Dante
Alighieri referred to a clock in his Paradiso; considered to be the first literary reference to
a clock that struck the hours. The earliest detailed description of clockwork was presented
by Giovanni da Dondi, Professor of Astronomy at Padua, in his 1364 treatise Il Tractatus
Astrarii. This has inspired several modern replicas, including some in London's Science
Museum and the Smithsonian Institution.[97] Other notable examples from this period
were built in Milan (1335), Strasbourg (1354), Lund (1380), Rouen (1389), and Prague
(1462).
Salisbury cathedral clock, dating from about 1386, is the oldest working clock in the
world, still with most of its original parts.[106] It has no dial, as its purpose was to strike
a bell at precise times.[106] The wheels and gears are mounted in an open, box-like iron
frame, measuring about 1.2 metres (3.9 ft) square. The framework is held together with
metal dowels and pegs, and the escapement is the verge and foliot type, standard for
clocks of this age. The power is supplied by two large stones, hanging from pulleys. As
the weights fall, ropes unwind from the wooden barrels. One barrel drives the main
wheel, which is regulated by the escapement, and the other drives the striking mechanism
and the air brake.
Peter Lightfoot's Wells Cathedral clock, constructed c. 1390, is also of note. The dial
represents a geocentric view of the universe, with the Sun and Moon revolving around a
centrally fixed Earth. It is unique in having its original medieval face, showing a
philosophical model of the pre-Copernican universe. Above the clock is a set of figures,
which hit the bells, and a set of jousting knights who revolve around a track every 15
minutes. The clock was converted to pendulum and anchor escapement in the 17th
century, and was installed in London's Science Museum in 1884, where it continues to
operate. Similar astronomical clocks, or horologes, can be seen at Exeter, Ottery St Mary,
and Wimborne Minster.

23
The face of the Prague Astronomical Clock (1462)
One clock that has not survived to the present-day is that of the Abbey of St Albans, built
by the 14th-century abbot Richard of Wallingford. It may have been destroyed during
Henry VIII's Dissolution of the Monasteries, but the abbot's notes on its design have
allowed a full-scale reconstruction. As well as keeping time, the astronomical clock could
accurately predict lunar eclipses, and may have shown the Sun, Moon (age, phase, and
node), stars and planets, as well as a wheel of fortune, and an indicator of the state of the
tide at London Bridge.According to Thomas Woods, "a clock that equaled it in
technological sophistication did not appear for at least two centuries". Giovanni de Dondi
was another early mechanical clockmaker, whose clock did not survive, but has been
replicated based on the designs. De Dondi's clock was a seven-faced construction with
107 moving parts, showing the positions of the Sun, Moon, and five planets, as well as
religious feast days. Around this period, mechanical clocks were introduced into abbeys
and monasteries to mark important events and times, gradually replacing water clocks
which had served the same purpose.
During the Middle Ages, clocks were primarily used for religious purposes; the first
employed for secular timekeeping emerged around the 15th century. In Dublin, the
official measurement of time became a local custom, and by 1466 a public clock stood on
top of the Tholsel (the city court and council chamber). It was probably the first of its
kind in Ireland, and would only have had an hour hand. The increasing lavishness of
castles led to the introduction of turret clocks.A 1435 example survives from Leeds
castle; its face is decorated with the images of the Crucifixion of Jesus, Mary and St
George.
Clock towers in Western Europe in the Middle Ages were also sometimes striking clocks.
The most famous original still standing is possibly St Mark's Clock on the top of St
Mark's Clocktower in St Mark's Square, Venice, assembled in 1493, by the clockmaker
Gian Carlo Rainieri from Reggio Emilia. In 1497, Simone Campanato moulded the great
bell that every definite time-lapse is beaten by two mechanical bronze statues (h. 2,60 m.)
called Due Mori (Two Moors), handling a hammer. Possibly earlier (1490 by clockmaster
Jan Re also called Hanu) is the Prague Astronomical Clock, that according to another
source was assembled as early as 1410 by clockmaker Mikul of Kada and

24
mathematician Jan indel. The allegorical parade of animated sculptures rings on the
hour every day.
Early clock dials did not use minutes and seconds. A clock with a minutes dial is
mentioned in a 1475 manuscript, and clocks indicating minutes and seconds existed in
Germany in the 15th century. Timepieces which indicated minutes and seconds were
occasionally made from this time on, but this was not common until the increase in
accuracy made possible by the pendulum clock and, in watches, the spiral balance spring.
The 16th-century astronomer Tycho Brahe used clocks with minutes and seconds to
observe stellar positions.
Ottoman mechanical clocks
The Ottoman engineer Taqi al-Din described a weight-driven clock with a verge-and-
foliot escapement, a striking train of gears, an alarm, and a representation of the moon's
phases in his book The Brightest Stars for the Construction of Mechanical Clocks (Al-
Kawkib al-durriyya f wadh' al-bankmat al-dawriyya), written around 1556. Similarly
to earlier 15th-century European mechanical alarm clocks, the alarm was set by placing a
peg on the dial wheel at the appropriate time. The clock had three dials reading in hours,
degrees and minutes. Taqi al-Din later constructed a clock for the Istanbul Observatory,
where he used it to make observations of right ascensions, stating: We constructed a
mechanical clock with three dials which show the hours, the minutes, and the seconds.
We divided each minute into five seconds. This was an important innovation in 16th-
century practical astronomy, as at the start of the century clocks were not accurate
enough to be used for astronomical purposes.
An example of a watch which measured time in minutes was created by an Ottoman
watchmaker, Meshur Sheyh Dede, in 1702.
Pendulum clocks
Main article: Pendulum clock
Innovations to the mechanical clock continued, with miniaturization leading to domestic
clocks in the 15th century, and personal watches in the 16th. In the 1580s, the Italian
polymath Galileo Galilei investigated the regular swing of the pendulum, and discovered
that it could be used to regulate a clock. Although Galileo studied the pendulum as early
as 1582, he never actually constructed a clock based on that design. The first pendulum

25
clock was designed and built by Dutch scientist Christiaan Huygens, in 1656. Early
versions erred by less than one minute per day, and later ones only by 10 seconds, very
accurate for their time.
The Jesuits were another major contributor to the development of pendulum clocks in the
17th and 18th centuries, having had an "unusually keen appreciation of the importance of
precision". In measuring an accurate one-second pendulum, for example, the Italian
astronomer Father Giovanni Battista Riccioli persuaded nine fellow Jesuits "to count
nearly 87,000 oscillations in a single day".They served a crucial role in spreading and
testing the scientific ideas of the period, and collaborated with contemporary scientists,
such as Huygens.
The modern longcase clock, also known as the grandfather clock, has its origins in the
invention of the anchor escapement mechanism in about 1670. Before then, pendulum
clocks had used the older verge escapement mechanism, which required very wide
pendulum swings of about 100. To avoid the need for a very large case, most clocks
using the verge escapement had a short pendulum. The anchor mechanism, however,
reduced the pendulum's necessary swing to between 4 to 6, allowing clockmakers to
use longer pendulums with consequently slower beats. These required less power to
move, caused less friction and wear, and were more accurate than their shorter
predecessors. Most longcase clocks use a pendulum about a metre (39 inches) long to the
center of the bob, with each swing taking one second. This requirement for height, along
with the need for a long drop space for the weights that power the clock, gave rise to the
tall, narrow case.
In 1675, 18 years after inventing the pendulum clock, Huygens devised the spiral balance
spring for the balance wheel of pocket watches, an improvement on the straight spring
invented by English natural philosopher Robert Hooke.[This resulted in a great advance
in accuracy of pocket watches, from perhaps several hours per day to 10 minutes per day,
similar to the effect of the pendulum upon mechanical clocks.
Clockmakers

A pocket watch

26
The first professional clockmakers came from the guilds of locksmiths and jewellers.
Clockmaking developed from a specialized craft into a mass production industry over
many years. Paris and Blois were the early centers of clockmaking in France. French
clockmakers such as Julien Le Roy, clockmaker of Versailles, were leaders in case design
and ornamental clocks. Le Roy belonged to the fifth generation of a family of
clockmakers, and was described by his contemporaries as "the most skillful clockmaker
in France, possibly in Europe". He invented a special repeating mechanism which
improved the precision of clocks and watches, a face that could be opened to view the
inside clockwork, and made or supervised over 3,500 watches. The competition and
scientific rivalry resulting from his discoveries further encouraged researchers to seek
new methods of measuring time more accurately.

An antique pocket watch movement, from an 1891 encyclopedia.

Between 1794 and 1795, in the aftermath of the French Revolution, the French
government briefly mandated decimal clocks, with a day divided into 10 hours of 100
minutes each.The astronomer and mathematician Pierre-Simon Laplace, among other
individuals, modified the dial of his pocket watch to decimal time. A clock in the Palais
des Tuileries kept decimal time as late as 1801, but the cost of replacing all the nation's
clocks prevented decimal clocks from becoming widespread. Because decimalized clocks
only helped astronomers rather than ordinary citizens, it was one of the most unpopular
changes associated with the metric system, and it was abandoned.
In Germany, Nuremberg and Augsburg were the early clockmaking centers, and the
Black Forest came to specialize in wooden cuckoo clocks.[135] The English became the
predominant clockmakers of the 17th and 18th centuries. Switzerland established itself as
a clockmaking center following the influx of Huguenot craftsmen, and in the 19th
century, the Swiss industry "gained worldwide supremacy in high-quality machine-made
watches". The leading firm of the day was Patek Philippe, founded by Antoni Patek of
Warsaw and Adrien Philippe of Berne.
: Wristwatch

27
In 1904, Alberto Santos-Dumont, an early aviator, asked his friend, a French watchmaker
called Louis Cartier, to design a watch that could be useful during his flights.[136] The
wristwatch had already been invented by Patek Philippe, in 1868, but only as a "ladys
bracelet watch", intended as jewelry. As pocket watches were unsuitable, Louis Cartier
created the Santos wristwatch, the first man's wristwatch and the first designed for
practical use.
Wristwatches gained in popularity during World War I, when officers found them to be
more convenient than pocket watches in battle. Also, because the pocket watch was
mainly a middle class item, the enlisted men usually owned wristwatches, which they
brought with them. Artillery and infantry officers depended on their watches as battles
became more complicated and coordinated attacks became necessary. Wristwatches were
found to be needed in the air as much as on the ground: military pilots found them more
convenient than pocket watches for the same reasons as Santos-Dumont had. Eventually,
army contractors manufactured watches en masse, for both infantry and pilots. In World
War II, the A-11 was a popular watch among American airmen, with its simple black
face and clear white numbers for easy readability.

A twin-barrel box chronometer.

Marine chronometers
Marine chronometers are clocks used at sea as time standards, to determine longitude by
celestial navigation.They were first developed by Yorkshire carpenter John Harrison,
who won the British government's Longitude Prize in 1759. Marine chronometers keep
the time of a fixed locationusually Greenwich Mean Timeallowing seafarers to
determine longitude by comparing the local high noon to the clock.
Chronometers

A modern quartz watch and chronograph

A chronometer is a portable timekeeper that meets certain precision standards. Initially,
the term was used to refer to the marine chronometer, a timepiece used to determine

28
longitude by means of celestial navigation. More recently, the term has also been applied
to the chronometer watch, a wristwatch that meets certain precision standards set by the
Swiss agency COSC. Over 1,000,000 "Officially Certified Chronometer" certificates,
mostly for mechanical wrist-chronometerswristwatcheswith sprung balance
oscillators, are delivered each year, after passing the COSC's most severe tests, and being
singly identified by an officially recorded individual serial number. According to COSC,
a chronometer is a high-precision watch, capable of displaying the seconds and housing a
movement that has been tested over several days, in different positions, and at different
temperatures, by an official, neutral body. To meet this requirement, each movement is
individually tested for several consecutive days, in five positions, and at three
temperatures. Any watch with the designation chronometer has a certified movement.
Quartz oscillators
Main article: Crystal oscillator

Internal construction of a modern high performance HC-49 package quartz crystal.

The piezoelectric properties of crystalline quartz were discovered by Jacques and Pierre
Curie in 1880.The first quartz crystal oscillator was built by Walter G. Cady in 1921, and
in 1927 the first quartz clock was built by Warren Marrison and J. W. Horton at Bell
Telephone Laboratories in Canada.The following decades saw the development of quartz
clocks as precision time measurement devices in laboratory settingsthe bulky and
delicate counting electronics, built with vacuum tubes, limited their practical use
elsewhere. In 1932, a quartz clock able to measure small weekly variations in the rotation
rate of the Earth was developed.The National Bureau of Standards (now NIST) based the
time standard of the United States on quartz clocks from late 1929 until the 1960s, when
it changed to atomic clocks. In 1969, Seiko produced the world's first quartz wristwatch,
the Astron. Their inherent accuracy and low cost of production has resulted in the
subsequent proliferation of quartz clocks and watches.
Atomic clocks
Atomic clocks are the most accurate timekeeping devices known to date. Accurate to
within a few seconds over many thousands of years, they are used to calibrate other

29
clocks and timekeeping instruments. The first atomic clock, invented in 1949, is on
display at the Smithsonian Institution. It was based on the absorption line in the ammonia
molecule, but most are now based on the spin property of the cesium atom. The
International System of Units standardized its unit of time, the second, on the properties
of cesium in 1967. SI defines the second as 9,192,631,770 cycles of the radiation which
corresponds to the transition between two electron spin energy levels of the ground state
of the 133Cs atom. The cesium atomic clock, maintained by the National Institute of
Standards and Technology, is accurate to 30 billionths of a second per year. Atomic
clocks have employed other elements, such as hydrogen and rubidium vapor, offering
greater stabilityin the case of hydrogen clocksand smaller size, lower power
consumption, and thus lower cost (in the case of rubidium clocks).
c) Recent Development
The concept of latent demand is rather subtle. The term latent typically refers to
something that is dormant, not observable, or not yet realized. Demand is the notion of an
economic quantity that a target population or market requires under different assumptions
of price, quality, and distribution, among other factors. Latent demand, therefore, is
commonly defined by economists as the industry earnings of a market when that market
becomes accessible and attractive to serve by competing firms. It is a measure, therefore,
of potential industry earnings (P.I.E.) or total revenues (not profit) if a market is served in
an efficient manner. It is typically expressed as the total revenues potentially extracted by
firms. The market is defined at a given level in the value chain. There can be latent
demand at the retail level, at the wholesale level, the manufacturing level, and the raw
materials level (the P.I.E. of higher levels of the value chain being always smaller than
the P.I.E. of levels at lower levels of the same value chain, assuming all levels maintain
minimum profitability).

The latent demand for mid-range wrist watches is not actual or historic sales. Nor is latent
demand future sales. In fact, latent demand can be lower either lower or higher than
actual sales if a market is inefficient (i.e., not representative of relatively competitive
levels). Inefficiencies arise from a number of factors, including the lack of international
openness, cultural barriers to consumption, regulations, and cartel-like behavior on the

30
part of firms. In general, however, latent demand is typically larger than actual sales in a
country market.

For reasons discussed later, this report does not consider the notion of unit quantities ,
only total latent revenues (i.e., a calculation of price times quantity is never made, though
one is implied). The units used in this report are U.S. dollars not adjusted for inflation
(i.e., the figures incorporate inflationary trends) and not adjusted for future dynamics in
exchange rates. If inflation rates or exchange rates vary in a substantial way compared to
recent experience, actually sales can also exceed latent demand (when expressed in U.S.
dollars, not adjusted for inflation). On the other hand, latent demand can be typically
higher than actual sales as there are often distribution inefficiencies that reduce actual
sales below the level of latent demand.

As mentioned in the introduction, this study is strategic in nature, taking an aggregate and
long-run view, irrespective of the players or products involved. If fact, all the current
products or services on the market can cease to exist in their present form (i.e., at a brand-
, R&D specification, or corporate-image level) and all the players can be replaced by
other firms (i.e., via exits, entries, mergers, bankruptcies, etc.), and there will still be an
international latent demand for mid-range wrist watches at the aggregate level. Product
and service offering details, and the actual identity of the players involved, while
important for certain issues, are relatively unimportant for estimates of latent demand.

THE METHODOLOGY

In order to estimate the latent demand for mid-range wrist watches on a worldwide basis,
I used a multi-stage approach. Before applying the approach, one needs a basic theory
from which such estimates are created. In this case, I heavily rely on the use of certain
basic economic assumptions. In particular, there is an assumption governing the shape
and type of aggregate latent demand functions. Latent demand functions relate the
income of a country, city, state, household, or individual to realized consumption. Latent
demand (often realized as consumption when an industry is efficient), at any level of the

31
value chain, takes place if an equilibrium is realized. For firms to serve a market, they
must perceive a latent demand and be able to serve that demand at a minimal return. The
single most important variable determining consumption, assuming latent demand exists,
is income (or other financial resources at higher levels of the value chain). Other factors
that can pivot or shape demand curves include external or exogenous shocks (i.e.,
business cycles), and or changes in utility for the product in question.

Ignoring, for the moment, exogenous shocks and variations in utility across countries, the
aggregate relation between income and consumption has been a central theme in
economics. The figure below concisely summarizes one aspect of problem. In the 1930s,
John Meynard Keynes conjectured that as incomes rise, the average propensity to
consume would fall. The average propensity to consume is the level of consumption
divided by the level of income, or the slope of the line from the origin to the consumption
function. He estimated this relationship empirically and found it to be true in the short-
run (mostly based on cross-sectional data). The higher the income, the lower the average
propensity to consume. This type of consumption function is labeled 'A' in the figure
below (note the rather flat slope of the curve). In the 1940s, another macroeconomist,
Simon Kuznets, estimated long-run consumption functions which indicated that the
marginal propensity to consume was rather constant (using time series data across
countries). This type of consumption function is show as 'B' in the figure below (note the
higher slope and zero-zero intercept). The average propensity to consume is constant.

Is it declining or is it constant? A number of other economists, notably Franco Modigliani

and Milton Friedman, in the 1950s (and Irving Fisher earlier), explained why the two
functions were different using various assumptions on intertemporal budget constraints,
savings, and wealth. The shorter the time horizon, the more consumption can depend on

32
wealth (earned in previous years) and business cycles. In the long-run, however, the
propensity to consume is more constant. Similarly, in the long run, households, industries
or countries with no income eventually have no consumption (wealth is depleted). While
the debate surrounding beliefs about how income and consumption are related and
interesting, in this study a very particular school of thought is adopted. In particular, we
are considering the latent demand for mid-range wrist watches across some 230
countries. The smallest have fewer than 10,000 inhabitants. I assume that all of these
counties fall along a 'long-run' aggregate consumption function. This long-run function
applies despite some of these countries having wealth, current income dominates the
latent demand for mid-range wrist watches. So, latent demand in the long-run has a zero
intercept. However, I allow firms to have different propensities to consume (including
being on consumption functions with differing slopes, which can account for differences
in industrial organization, and end-user preferences).

Given this overriding philosophy, I will now describe the methodology used to create the
latent demand estimates for mid-range wrist watches. Since ICON Group has asked me to
apply this methodology to a large number of categories, the rather academic discussion
below is general and can be applied to a wide variety of categories, not just mid-range
wrist watches.

Step 1. Product Definition and Data Collection

Any study of latent demand across countries requires that some standard be established to
define efficiently served . Having implemented various alternatives and matched these
with market outcomes, I have found that the optimal approach is to assume that certain
key countries are more likely to be at or near efficiency than others. These countries are
given greater weight than others in the estimation of latent demand compared to other
countries for which no known data are available. Of the many alternatives, I have found
the assumption that the world s highest aggregate income and highest income-per-capita
markets reflect the best standards for efficiency . High aggregate income alone is not
sufficient (i.e., China has high aggregate income, but low income per capita and can not

33
assumed to be efficient). Aggregate income can be operationalized in a number of ways,
including gross domestic product (for industrial categories), or total disposable income
(for household categories; population times average income per capita, or number of
households times average household income per capita). Brunei, Nauru, Kuwait, and
Lichtenstein are examples of countries with high income per capita, but not assumed to
be efficient, given low aggregate level of income (or gross domestic product); these
countries have, however, high incomes per capita but may not benefit from the
efficiencies derived from economies of scale associated with large economies. Only
countries with high income per capita and large aggregate income are assumed efficient.
This greatly restricts the pool of countries to those in the OECD (Organization for
Economic Cooperation and Development), like the United States, or the United Kingdom
(which were earlier than other large OECD economies to liberalize their markets).

The selection of countries is further reduced by the fact that not all countries in the
OECD report industry revenues at the category level. Countries that typically have ample
data at the aggregate level that meet the efficiency criteria include the United States, the
United Kingdom and in some cases France and Germany.

Latent demand is therefore estimated using data collected for relatively efficient markets
from independent data sources (e.g. Euromonitor, Mintel, Thomson Financial Services,
the U.S. Industrial Outlook, the World Resources Institute, the Organization for
Economic Cooperation and Development, various agencies from the United Nations,
industry trade associations, the International Monetary Fund, and the World Bank).
Depending on original data sources used, the definition of mid-range wrist watches is
established. In the case of this report, the data were reported at the aggregate level, with
no further breakdown or definition. In other words, any potential product or service that
might be incorporated within mid-range wrist watches falls under this category. Public
sources rarely report data at the disaggregated level in order to protect private
information from individual firms that might dominate a specific product-market. These
sources will therefore aggregate across components of a category and report only the
aggregate to the public. While private data are certainly available, this report only relies

34
on public data at the aggregate level without reliance on the summation of various
category components. In other words, this report does not aggregate a number of
components to arrive at the whole . Rather, it starts with the whole , and estimates
the whole for all countries and the world at large (without needing to know the specific
parts that went into the whole in the first place).

The industry for mid-range wrist watches includes timepieces designed for men and
women to be worn strapped to the wrist and which cost between $99.00 and $999.00. All
figures are in a common currency (U.S. dollars, millions) and are not adjusted for
inflation (i.e., they are current values). Exchange rates used to convert to U.S. dollars are
averages for the year in question. Future exchange rates are assumed to be constant in the
future at the current level (the average of the year of this publication s release in 2008).

Step 2. Filtering and Smoothing

Based on the aggregate view of mid-range wrist watches as defined above, data were then
collected for as many similar countries as possible for that same definition, at the same
level of the value chain. This generates a convenience sample of countries from which
comparable figures are available. If the series in question do not reflect the same
accounting period, then adjustments are made. In order to eliminate short-term effects of
business cycles, the series are smoothed using an 2 year moving average weighting
scheme (longer weighting schemes do not substantially change the results). If data are
available for a country, but these reflect short-run aberrations due to exogenous shocks
(such as would be the case of beef sales in a country stricken with foot and mouth
disease), these observations were dropped or 'filtered' from the analysis.

Step 3. Filling in Missing Values

In some cases, data are available for countries on a sporadic basis. In other cases, data
from a country may be available for only one year. From a Bayesian perspective, these
observations should be given greatest weight in estimating missing years. Assuming that

35
other factors are held constant, the missing years are extrapolated using changes and
growth in aggregate national income. Based on the overriding philosophy of a long-run
consumption function (defined earlier), countries which have missing data for any given
year, are estimated based on historical dynamics of aggregate income for that country.

Step 4. Varying Parameter, Non-linear Estimation

Given the data available from the first three steps, the latent demand in additional
countries is estimated using a varying-parameter cross-sectionally pooled time series
model . Simply stated, the effect of income on latent demand is assumed to be constant
across countries unless there is empirical evidence to suggest that this effect varies (i.e.,
the slope of the income effect is not necessarily same for all countries). This assumption
applies across countries along the aggregate consumption function, but also over time
(i.e., not all countries are perceived to have the same income growth prospects over time
and this effect can vary from country to country as well). Another way of looking at this
is to say that latent demand for mid-range wrist watches is more likely to be similar
across countries that have similar characteristics in terms of economic development (i.e.,
African countries will have similar latent demand structures controlling for the income
variation across the pool of African countries).

This approach is useful across countries for which some notion of non-linearity exists in
the aggregate cross-country consumption function. For some categories, however, the
reader must realize that the numbers will reflect a country s contribution to global latent
demand and may never be realized in the form of local sales. For certain country-
category combinations this will result in what at first glance will be odd results. For
example, the latent demand for the category space vehicles will exist for Togo
even though they have no space program. The assumption is that if the economies in
these countries did not exist, the world aggregate for these categories would be lower.
The share attributed to these countries is based on a proportion of their income (however
small) being used to consume the category in question (i.e., perhaps via resellers).

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Step 5. Fixed-Parameter Linear Estimation

Nonlinearities are assumed in cases where filtered data exist along the aggregate
consumption function. Because the world consists of more than 200 countries, there will
always be those countries, especially toward the bottom of the consumption function,
where non-linear estimation is simply not possible. For these countries, equilibrium latent
demand is assumed to be perfectly parametric and not a function of wealth (i.e., a
country s stock of income), but a function of current income (a country s flow of
income). In the long run, if a country has no current income, the latent demand for mid-
range wrist watches is assumed to approach zero. The assumption is that wealth stocks
fall rapidly to zero if flow income falls to zero (i.e., countries which earn low levels of
income will not use their savings, in the long run, to demand mid-range wrist watches). In
a graphical sense, for low income countries, latent demand approaches zero in a
parametric linear fashion with a zero-zero intercept. In this stage of the estimation
procedure, low-income countries are assumed to have a latent demand proportional to
their income, based on the country closest to it on the aggregate consumption function.

Step 6. Aggregation and Benchmarking

Based on the models described above, latent demand figures are estimated for all
countries of the world, including for the smallest economies. These are then aggregated
to get world totals and regional totals. To make the numbers more meaningful, regional
and global demand averages are presented. Figures are rounded, so minor inconsistencies
may exist across tables.

Step 7. Latent Demand Density: Allocating Across Cities

With the advent of a borderless world , cities become a more important criteria in
prioritizing markets, as opposed to regions, continents, or countries. This report also
covers the world s top 2000 cities. The purpose is to understand the density of demand
within a country and the extent to which a city might be used as a point of distribution

37
within its region. From an economic perspective, however, a city does not represent a
population within rigid geographical boundaries. To an economist or strategic planner, a
city represents an area of dominant influence over markets in adjacent areas. This
influence varies from one industry to another, but also from one period of time to
another.

Similar to country-level data, the reader needs to realize that latent demand allocated to a
city may or may not represent real sales. For many items, latent demand is clearly
observable in sales, as in the case for food or housing items. Consider, again, the category
satellite launch vehicles. Clearly, there are no launch pads in most cities of the world.
However, the core benefit of the vehicles (e.g. telecommunications, etc.) is 'consumed' by
residents or industries within the worlds cities. Without certain cities, in other words, the
world market for satellite launch vehicles would be lower for the world in general. One
needs to allocate, therefore, a portion of the worldwide economic demand for launch
vehicles to regions, countries and cities. This report takes the broader definition and
considers, therefore, a city as a part of the global market. I allocate latent demand across
areas of dominant influence based on the relative economic importance of cities within its
home country, within its region and across the world total. Not all cities are estimated
within each country as demand may be allocated to adjacent areas of influence. Since
some cities have higher economic wealth than others within the same country, a city s
population is not generally used to allocate latent demand. Rather, the level of economic
activity of the city vis--vis others.
Chapter -3
a) Wrist watch business in India
50 million wristwatches are sold in India every year. Not withstanding 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 80s, 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...........

38
In value t 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.
rist 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. For the
watch industry, time seems in its favour what with the liberalization of the Indian
market coupled with the rising purchasing power of the young and consumerist
Indians.

39
Indian watches market was for long dominated by public sector organisations like
Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its
refrigerators once upon a time!), and has now left the pioneers far behind or
nowhere in market by private sector enterprises like Titan, Sonata, Ajanta and
Timex along with foreign entities jostling for display space in the smallest of
shops selling these products.

Before the establishment of HMT as the dominant player in the Indian markets
initially, the country was solely dependent on imports to meet the internal
demand. However, establishment of HMT as the leading player in the wrist watch
segment in the 1960s, changed the scenario.

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. Many
watch makers have made significant inroads in the industry and others are in the
process of establishing themselves, currently.

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.

40
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 long standing Indian tradition of comparing watches
with jewellery and other traditional items, many watch companies are interested
in setting up base in India. The average growth in the size of the market is slated
to be around 10 -15 percent per year.

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, three
segments can be identified here, namely low priced, medium priced, and high
priced 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.

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

Many customers prefer mechanical and automatic watches, while others prefer
quartz watches. Newer segments are also on rise such as ladies watches,

41
 childrens watches and gents 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 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.
In the end, though India is still considered to be a difficult market to penetrate,
due to reasons like price sensitiveness and its largely unorganized sector.
However, with the right planning and the right partners and experienced
collaborators, it is expected that both international and domestic watch
manufacturers will do well in the Indian markets.

9. MY EXPERIENCE
It was a great learning experience. I interacted with different highly intellectual person
and they taught me a lot of practical knowledge of marketing department along with the
sales department. People working there are very much cooperative and helpful and like
very much there by getting training. Now the marketing department is very much focus
towards the proper marketing of MTNL product and services. As my training was divided
into different department. First it was with publicity department I had a great experience
of sitting in the canopy and interacting directly with the customers.
While working for the two months in the real corporate world, I am able to learn about
the working of the government organization. I have learned about the working of
government employees. I must appreciate the management of MTNL who has helped me
learning the business procedure of MTNL.

42
After working for these two months much of my hesitation is removed in talking with the
people. I did hesitate in talking with the people for the first time but after talking with so
many people in my summer training much of my hesitation has been removed.
My patience level has been increased after working for these two months because
whenever I had a query I just wait up till the MTNLemployee get free to listen my query.
My guide Mr.SHRI RAM SINGH is avery experiencedand intellectual person and he is
going to retire very soon. He supported me a lot and taught me a lot of things. My
training was divided into different segment. First week was with publicity department
and the second week was with the media department and the third week was with the out
door publicity department and the rest eight weeks was with DGM sales where I sold
some 3G sims with him.

11. FINDINGS AND LIMITATIONS

This project given to me by was a wonderful experience of mine with the world around. I
tried my level best to get up with the project. My Project was the marketing strategy of
MTNL. In this that I have to know about the various features of the other company
because in this I have to present the best service provider comparison to other company
in front of the customer so I have to need to know about the various features of the
company.
Limitation of the Project:
Every project has some limitations. I too faced large no of difficulties while going
through the project.
Some of them are as follow:-
Very first difficulty that I face searching the customer for purchasing the 3G
connection.
It was not easy to get the rates of different services as it varies from time to
time and place to place like that in case per minute outgoing call.
And lastly time was the limit for the project given.

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 12. SUGGESTIONS

While the Indian telecom industry is experiencing high growth and private sector
operators are posting impressive results. The performance of the MTNL continues to
decline. As state owned entities, it gets preferential treatment from the government.
Nevertheless, it fail to take advantage of such a treatment. One of the recent examples is
dismal uptake of 3G service launched by it, despite being the only operators in India with
3G spectrum.

Speculations around divestment in this company and its merger have been rife for many
years. While the current government has not expressed any intention to further divest in
MTNL, it has renewed its efforts to divest 10% stake in BSNL. The government plans to
explore a possibility of merging BSNL and MTNL after divestment in the former is
completed. BSNLs management and the government believe that divestment will help
the company raise capital required for its long-term growth and turn around. BSNL has
also laid-out a strategy to reverse the companys declining performance. However, cure
of these companies malaise require different medicine.

Political intervention, a bureaucratic culture and pre-liberalization mindset are the root
causes for MTNLs poor performance. The inadequacy of a divestment solution to
address these weaknesses is evidenced in the case of MTNL, which has been a listed
company for many years but nonetheless continues to see declining performance.
Potential investors would need control over management and decision-making in order to
turn these companies around, which is impossible while the government owns a majority
stake.

Privatization will provide potential investors the required control. Even with such a
control, the challenge to transform BSNL and MTNL from state owned sick companies
into customer centric service providers will be daunting.

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13.CONCLUSION

As per my project I have to sale the service of the airtel on this I have to know about the
different services provided by the other company because if I am not know the service
than I cant tell him that Airtel is best . Every customer want more service in lesser price
so market is depend upon the VAS (value added service), here first of all it is clear upto
now that the value added services provided by different mobile user are same to the great
extent. There is not much variation among these services.

WORD OF THANKS

At the end I thank to all those persons who have directly or indirectly helped me to
complete this project successfully without whose cooperation it was not possible to
complete the project due to various constraints.
I thank to all those readers who will study this project in the future.

We welcome any type of suggestions or comments from the readers at

hareramkumar123@gmail.com.

Thanking you
Hareram Kumar
PGDBM (15033)
Ishan Institute of Management And Technology

14. BIBLIOGRAPHY

BOOKS REFFERED:

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 Kotler, Phillip, Marketing Management, 13th Edition, Prentice Hall of India,
2002

Beri, G.C., Marketing Research, 3rd Edition, Tata McGraw Hill Publication

Kothari, R.C. , Research Methodology

Bhagwati & Pillai, Management Accounting, Second Edition, S. Chand &

Company ltd.

Bhagwati & Pillai, Statistics for management, Second Edition, S. Chand &
Company ltd.

WEBSITE REFFERED:

www.google.com
www.trai.gov.in
www.bol.net
www.mtnl.com
www.tataindicom.com
www.vodafone.co.in
www.reliance.com
www.ideacellular.com

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47