Department of Management Studies

Marketing plan: mobile watch

MBA C418: marketing

Submitted by:
Nitesh Shah(2010H149233P)
Rushikesh Malaviya(2010H149234P)
Arka Prova Mukherjee(2010H149235P)
Sumit Raj (2010H149236P)
Yash Soni(2010H149237P)

Birla Institute of Science and Technology,

Pilani – 333031
15 march, 2011
SITUATIONAL ANALYSIS
Mobiles are the booming sector in India and people are looking at it as a necessity for them. The
watches are required for all the people to keep themselves on time. The latest mobile phones and
the trendy watches are looked as a status symbol among the youth. The features of mobile phone in
a watch would be looked at as a must for everyone in the society.

SWOT Analysis

STRENGTH WEAKNESS

 Stylish  Pricing ( min. Rs. 5000 at retail)

 Variety of models  High initial investment
 Brand name association with TITAN  Uncertainty associated with new
 Guarantee and warranty technology
 Post sale service
OPPORTUNITIES THREATS

 Seasonality: - occasions like festivals,  Threats due to new Entrants

marriages etc.  Mobile phone companies coming
 Gifting concept out with better used friendly
 Exchange offer instruments
 As the product is launched the first
time, so there could be any unseen
fault in the product.

5 C Analysis of Marketing Opportunities

1. COMPANY
 Product line: The Company will be launching a “Mobile Watch”, i.e. a watch having the
features of the mobile phone.
 Image in the market: we are the part of Titan watches. But with the launch of new
product, we are developing a separate brand named “ARYSN”. Titan is already an
established brand in the market. Fastrack, which is a new brand developed by titan, has
also become very successful. “ARYSN” is also to follow the same path.
 Technology and experience: our Research and development have been worked very
hard and come up with such a product giving the customers the facility of a mobile
phone in a watch. The product also contains various other features like Bluetooth, touch
screen, video and audio player. Titan has provided a joyful experience to all its
customers since its existence and probably it is one of the reasons that it has 60% of the
market share in the organised sector.
 Culture: the work culture reflects in its promotions and advertisements. Titan has always
valued the ethics. It has one of the best culture in the industry
 Goals: To build India’s most desirable brands by being a world class innovative and
progressive organisation.

2. COLLABORATOR
 ARYSN will have exclusive retail shops to sell its product. Besides that, various other
supermarket and other retail shops can sell it.
 3. CUSTOMERS
 High and middle income groups. The market size would be approximately 6 lakhs
customers
 Market segment: the youth having desire and income to try and buy new technological
products.
 Tangible Benefits: mobile watch, Bluetooth earphone, touch screen, video camera,
music player, video player
 Intangible Benefits: style statement, new technology, recognition in society
 Motivation: technologically advanced and cost effective
 Retail channel: the customer can purchase the product from the exclusive retail shop as
well as the renowned shops and supermarkets.

4. COMPETITORS
 Actual and potential competitors:- the mobile instrument company in the same
businesses like LG, the mobile instrument companies like nokia, sony ericsson and the
watch company like dkny, nike, Rado, Casio
 The positioning of the product would be done as a differentiation in terms of technology
and style statement. The youth will identify themselves with the product.

5. CONTEXT
 Economic environment: inflation, recession
 Spending habit of the consumers
 Social\cultural environment: society’s trends and fashions
 Technological environment: new product to satisfy the needs of the target customers.
 Political environment: the government taking steps to decrease the inflation and
employing other policies which is helping “ARYSN” directly or indirectly.

Q1. Can we articulate benefits to the target segment of customers?

Answer: Yes, our product is an integration of the mobile phone instruments and wrist watches. It
will bring a new wave of electronic innovation within the market. The customers will no longer worry
about losing their phones as it would be tied to their wrist. Additional features like audio player,
Bluetooth, touch screen will be available. It will be a style statement among youth and would satisfy
their need for recognition in their respective environment.

Q2.Can we locate the target segment and reach them?

Answer: Yes, we have targeted the high and middle income groups in the society. Within that
segment people who have watch as a necessity and are really crazy about the new electronic and
technological innovations.

Our target segment will be basically metropolitan cities and other developed towns. Hence we
would reach them through various advertisements through media, promotion through various
college festivals and sponsoring various events which identify themselves with the theme of ARYSN.

We already have an existing retail and distribution network through which we will be able to reach
our customers.

Q3. Do we have critical capabilities to deliver?

Answer: We are the TITANS. We have always delivered to the customers since our inception. We did
it through FASTRACK, and we will do much better with ARYSN. Through our existing facilities and
brand image we would be able to satisfy the needs of the customers.
Q4. Can we deliver those better than competitors?
Answer: Yes, besides various attractive features in the product, we would have the post sales service
given to the customers. This is a new product launched in the market having most of the features of
the mobile phones and wrist watch which will be a “value for money” for the customers’. It would be
a style statement and a trend setter.

Q5. Are we able to generate more revenues than the investment?

Answer: Yes, we have made a very calculated and very conservative forecasting. According to that
we would achieve breakeven by selling 28,000 units, which we are quite hopeful to overtake by
substantial margin.
OBJECTIVES
First Year: We are aiming at 1.6 per cent market share of the qualified market in India.
Second Year: In the second year, it hopes to acquire a market share of 2.4 percent.
Third Year: By the third year, the objective is to achieve a 25 percent increase in profit and acquire a
market share of 3.2 percent.

Retail Price 5000

Retailer's Margin @ 20 % 1000
Wholesaler Selling Price 4000
Wholesaler Margin @ 20 % 800
Selling Price for Manufacturer 3200

Description Amount (Rs)

Year I
Net sales for 60000 units 19,20,00,000
COGS 9,60,00,000
Gross Margin 9,60,00,000
Operating Expenses
Freight Expenses 1,92,00,000
Sales Expenses: Commission 1,92,00,000
Sales Expenses: Salary 76,80,000
Promotion 2,30,40,000
General and Admin Expenses
Management Salaries 38,40,000
Overhead Costs 38,40,000
Total Expenses 7,68,00,000
Profit Before Tax 1,92,00,000
Tax @ 40 % 76,80,000
Profit After tax 1,15,20,000

Initial Investment 4,00,00,000

Fixed Cost 4,00,00,000
Unit Variable Cost 1,800

Unit Cost 2,467

Return on Investment : Selling Price 2,733

Breakeven Analysis in Units 28,571

Breakeven Sales 9,14,27,200
MARKETING STRATEGY
Based on segmenting, targeting, positioning we are focusing the market as follows:

1. Segmentation

Geographic Segmentation(Urban/Rural)

Demographic Segmentation(Income)

Psychographic Segmentation(VALS Network)

 Firstly, the market has been segmented on the basis of Geography means urban and rural.
 Afterwards segmentation has been done on the basis of Demographic aspects where we
have chosen average monthly household Income. For this we have divided total population
in five socio economic classes (SECs).

Urban SEC class No. Of Families Average monthly household

income (Rs.)
SEC A 9.10 18549
SEC B 12.61 10911
SEC C 16.58 6776
SEC D 18.05 5112
SEC E 21.08 4219
Total 77.42
** Table#1: SECs in total Urban population and average monthly household income

For further demographic segmentation we have considered following factors:

1. Since the product is priced at Rs 5000, we are selecting three SECs A, B & C because their
average monthly income level is more than Rs. 6000.
2. Average house hold income of family above Rs. 12,000.
3. Necessity of Mobile per person.
4. Necessity of watch per person

 Now psychographic segmentation according to VALS network.

Initially we targeting those segment who believe in High Resources, High Innovation like Innovator
and Experiences
Factor A: I like to buy gadgets that look great and match my style
Factor B: I like to use Latest gadgets to stay abreast and fall behind.
 Urban No. Of No of Average Necessity Necessity Factor A Factor B TOTAL
SEC Families indivi- income of of mobile of watch ## ## of
class (mn)* dual per family per # (%) (%) Factor
family * above person# (%) A+B
Rs.12000** (%) (%)
(%)
SEC A 9.10 4.51 62 87 48 14 5 19

SEC B 12.61 5.02 25 90 52 19 4 23

SEC C 16.58 4.77 6 89 48 24 2 26

Table#2: For Qualified market demand segmentation

Businessworld Marketing Whitebook 2010-11(Page No. *52, **53, #63 & ##69)

Now segmented population for

SEC A: 9100000 x 4.51 x 0.62 x 0 .87 x 0.48 x0 .19 = 20, 19,940
SEC B: 12610000 x 5.02 x 0.25 x 0.9 x 0.52 x 0.23 = 17, 03,460
SEC C: 16580000 x 4.77 x 0.06 x0.89 x 0.48 x 0.26 = 5, 27,000

So total qualified market demand after Segmentation

= 2019940+1703460+527000 = 42, 50,400 units

2. Target market: In first year we are targeting urban population and SEC A,B & C as they
belong to high income bracket( income more than Rs. 12,500 per month).
We have targeted only 1.5% of total market demand in the first year of launching our
product which comes out to be about 63,756 (4250400 x 1.5%) units.

3. Positioning: We are positioning our product i.e. Mobile watch as a fancy, stylish, trendy and
easy to use with many advanced features.