Description
The objective of the presentation is to determine a suitable positioning strategy for a new brand of wrist watches based on existing market opportunities.
MARKET RESEARCH PROJECT REPORT
Table of Contents
Executive Summary...................................................................................................................... 3 Management problem ........................................................................................................................ 3 Expected value of information ............................................................................................................ 3 Data Collection Method ...................................................................................................................... 3 Measurement Technique .................................................................................................................... 3 Sample................................................................................................................................................. 3 Data Analysis....................................................................................................................................... 3 Time and Financial Requirements ....................................................................................................... 3 Time required .................................................................................................................................. 3 Research Report due date: .............................................................................................................. 3 Fees: ................................................................................................................................................ 3 Background information .............................................................................................................. 4 Objectives.................................................................................................................................... 5 Primary Research Objective ................................................................................................................ 5 Secondary Research Objectives........................................................................................................... 5 Exploratory Research Findings ...................................................................................................... 5 Research Approach (Non Technical).............................................................................................. 6 Data collection method....................................................................................................................... 6 Measurement technique .................................................................................................................... 6 Sample................................................................................................................................................. 6 Analytical approach ............................................................................................................................ 6 Data Analysis ............................................................................................................................... 7 Cluster Analysis ................................................................................................................................... 7 APPENDICES ................................................................................................................................ 9 Exploratory research questionnaire .................................................................................................... 9 Appendices for cluster analysis ......................................................................................................... 10
Page 2 of 16
Executive Summary
Management problem
The research will determine a suitable positioning for a new brand of wrist watches. For this purpose, the positioning of existing brands will be determined and a suitable strategy for the new brand will be suggested.
Expected value of information
The Indian watch market is currently worth 225mn $ (including the unorganised sector). Based on judgement, the new product is expected to garner a 1% market share. Therefore, the expected value of information is 2.25mn $.
Data Collection Method
A combination of the following data collection techniques will be used: 1. Questionnaires to collect data for exploratory research and primary data 2. Secondary research and questionnaires to collect secondary data
Measurement Technique
Questionnaires and Direct Response attitude scales will be used for measurement.
Sample
A representative sample consisting of students, working professionals, businessmen and housewives will be used. The sample size will be 75.
Data Analysis
The following techniques will be used: 1. Factor analysis 2. Cluster Analysis 3. Multidimensional Scaling and Perceptual Mapping
Time and Financial Requirements
Time required: 45 days Research Report due date: 20-Feb-2009 Fees: An all inclusive fee of 10,000$ will be charged. Page 3 of 16
Background information
The overall size of the Indian watch market is estimated to be around 40-45 million wristwatches with a double-digit annual growth of around 10%. However, the organized segment accounts for 33% and the grey market accounts for the rest. The fact remains that India's penetration of watches is amongst the lowest in the world. Also an extraordinary cultural wealth and long-standing traditions of expertise in the field of gems and jewellery - particularly gemstones makes it all the more interesting for watch companies in establishing or reinforcing contacts with the distribution network and raising awareness amongst consumers. India is one of the very few countries in the world with the capability of making all watch components right up to the finished piece. Over the last few decades, Indian horological manufacturers and makers of ancillary products such as watchcases, dials, bracelets and other components have created holistic industrial manufacturing capabilities. Also places such as Bangalore in Karnataka, Morbi and Rajkot in Gujarat and Northern India have developed specialty manufacturing core competencies. The penetration of watches in India is low - 25 watches per 1,000 people as compared to 250 in developed markets. This implies that there is a latent market of ten times the present size which on a population of 1.2 billion people would translate into 300 million watches. Cost of Watch Less than Rs.1500 Price between Rs.52800-66000 Price above Rs.132000 Estimated Potential Buyers(in lakhs) 10800 1080 60
There are several price points for watches in India - Low, Medium, High, Premium and Luxury starting from US$ 8.7(Rs.435) right up to US$ 2,175(Rs.108750) onwards. Around 70% of the watches sold in India have a price point of less than US$ 22(Rs.1100). The Indian consumer has come a long way since the time when watch imports were banned. The improving mindsets of urban consumers can be attributed to affluence, global influence and exposure. Today, the Indian consumer no longer sees a watch as a functional necessity. The Indian consumer is extremely brand conscious and sees it as a status symbol that showcases his distinctive personality. India’s population dispersion is very lucrative: more than 58% of India’s population is under 25 years of age (696 million) and over 80% under 45 years (960 million). Indian consumers have tremendous buying power: there is a 300 million strong middle class earning up to US$ 5,000 per annum. According to the recent National Readership Survey Platinum Study, a total of 828,000 people out of 859,000 in the top six Indian cities namely Mumbai, Delhi, Bangalore, Chennai, Pune and Ahmedabad - own branded watches. Rural consumers are waiting to be tapped since there is a huge potential as 600 million people do not wear watches.
Page 4 of 16
Objectives
Primary Research Objective
To determine a suitable positioning strategy for a new brand of wrist watches based on existing market opportunities.
Secondary Research Objectives
? ? ? ? To determine the different factors that influences the buying behaviour of wrist watches. To determine the existing market segments of wrist watches. To determine the suitable target group. To determine the differentiating parameters between various brands
The expected value of above information is 2.25mn $.
Exploratory Research Findings
List of popular brands: ? ? ? ? ? ? ? ? ? ? ? ? Titan Timex Citizen Maxima Rado Tag heuer Swatch Omega Hmt Rolex Zenith Tanishq Page 5 of 16
? ?
Sonata Casio
Some of the reasons/occasions and buying characteristics are mentioned below ? ? ? ? ? ? ? ? ? ? To suit to various occasions/events. Consider watches to reflect their status symbol. To look fashionable and trendy. To associate themselves with the Brand. Prefer new cool functionalities in a watch. Unwilling to pay more but prefer trendy ones so they don’t mind grey market watches Additional jewellery item. Accessory to their dress codes and colours. Designer looks. Need variety to choose from.
Research Approach (Non Technical)
Data collection method
A questionnaire for exploratory research was given to respondents and the responses were used to identify different attributes and usage characteristics that have an impact on the research. Data from relevant past researches will be used to determine existing state of the market. Finally, questionnaires will be used to collect data (primary data) that will be analysed using data analysis techniques mentioned below.
Measurement technique
Questionnaires will be used to collect data from respondents. Questionnaires will be given to the respondents in hard copy or emailed to them. Direct Response Attitude Scales will be used to understand perceptions of consumers about attributes of various products.
Sample
The sample selected will be representative of the population and will consist of students, working professionals, businessmen and housewives. The respondents will be from Pune, Mumbai, Bangalore and Gujarat. Responses from 75 respondents will be collected.
Analytical approach
The data collected will be used to: 1. Determine various factors that consumers use to make their watch purchasing decision. 2. Determine various segments in the watch market. 3. Determine the perceptions of consumers about various brands in the market.
Page 6 of 16
Data Analysis
Cluster Analysis
Cluster analysis is a multivariate procedure used for segmentation in marketing research. A cluster is a group of similar objects and segmentation involves identifying group of target customers who are similar in buying habits, demographics, psychographics and behavioural characteristics. On performing cluster analysis on our set of 96 respondents, the following factors were found to be important distinguishing ones: Occasion Social Status Functionalities Age Jewellery Multiple Brands Occupation Car Shopping Products in Vogue Following are the profiles of the four clusters
Cluster 1 (Fashionable Rich) 1. Wear different watches for different occasions 2. Believe that watches contribute to social status 3. Want additional functionalities in the watch (like alarm, calculator, stopwatch) 4. Believe that choice of watch is not influenced by age 5. Consider watch to be a jewellery item 6. Have watches of several brands 7. Don’t believe that choice of watch changes with occupation 8. Strongly believe that car is a necessity and not a luxury 9. Shop for fun 10. Prefer products in vogue Page 7 of 16 Cluster 2 (Utility, Value Seekers) 1. Do not prefer different watches for different occasions 2. Believe that watches do not contribute to social status 3. Strongly prefer watches with additional functionalities 4. Believe that choice of watch is not influenced by age 5. Do not consider watch as a jewellery item at all 6. Have a single brand of watch 7. Don’t believe that choice of occupation changes with occupation 8. Strongly believe that car is a necessity and not a luxury 9. Don’t shop for fun 10. Don’t prefer products in vogue
at all Cluster 3 (Image Conscious) 1. Wear different watches for different occasions 2. Agree that watches contribute to social status 3. Are neutral about additional functionalities in a watch 4. Believe that choice of watch is not influenced by age 5. Consider watch to be a jewellery item 6. Have watches of several brands 7. Believe that choice of watch changes with occupation 8. Strongly believe that car is necessity. 9. Are neutral about shopping for fun 10. Strongly prefer products in vogue Cluster 4 (Simplistic Commoner) 1. Do not prefer to wear different watches for different occasions 2. Do not agree that watches contribute to social status 3. Do not prefer additional functionalities in a watch 4. Believe that choice of watch is not influenced by age 5. Do not consider watch to be a jewellery item 6. Have a single brand of watch 7. Don’t believe that choice of occupation changes with occupation 8. Believe that car is a luxury 9. Don’t shop for fun 10. Neutral about products in vogue
The number of cases in each of the clusters is as shown below. Cluster 1 2 3 4 Total 30.000 9.000 21.000 36.000 96.000
NOTE: Kindly Refer Appendix for technical tables and procedures followed.
Determination of existing market segments of wrist watches
Four existing segments have been identified-the fashionable rich, the utility (value) seekers, the image conscious and the simplistic commoners.
Page 8 of 16
The new brand will have excellent variety, style, brand image, service and durability. It will compete with Titan, the market leader on all above attributes. Also, it is better on status than Titan.
The target groups that we have identified are shown below: Selective Specialization Products/Segments S1 (Fashionable Rich) P1 P2 S2( Value Seekers) S3(Image Conscious) S4(Simplistic Commoner)
APPENDICES
EXPLORATORY RESEARCH QUESTIONNAIRE
1) Why do you wear a watch?
Page 9 of 16
2) What are the various factors that influence you while buying a watch?
3) What are the brands of wrist watches you are aware of?
APPENDICES FOR CLUSTER ANALYSIS
Agglomeration Schedule Stage Cluster First Appears Cluster 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cluster 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 0
Stage
Cluster Combined Cluster 1 Cluster 2 96 95 94 93 92 91 90 89 88 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72
Coefficients Cluster 1 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Next Stage Cluster 2 33 34 35 36 37 38 39 40 41 42 43 44 22 46 47 48 49 50 51 52 53 54 55 56 57
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
64 63 62 61 60 59 58 57 56 55 54 53 75 51 50 49 48 47 46 45 44 11 42 41 40
Page 10 of 16
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 43 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 11 22 11 10 3 21 2 4 6 1 5 10
71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 20 31 27 13 25 24 32 23 14 11 30 29
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 3.000 4.000 6.000 7.000 7.000 8.000 9.000 9.000 9.667 10.000 10.000
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 54 43 65 55 62 44 63 61 59 64 60 68
0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 0 14 15 16 17 18 19 20 21 45 23 24 25 26 27 28 29 30 31 32 0 34 38 52 40 41 33 42 51 67 35 36
58 59 60 61 62 63 64 71 66 75 76 94 67 83 69 70 72 66 70 54 92 95 89 83 81 73 68 78 65 68 85 81 87 73 75 72 69 71 74 67 77 74 76 79 80 77 84 86 80 90 82
Page 11 of 16
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95
2 2 2 1 8 1 16 1 1 2 7 1 8 5 1 8 1 1 1
22 12 3 21 15 10 26 4 9 6 16 2 17 7 5 19 8 28 18
11.000 11.750 13.100 13.250 14.000 14.667 16.000 17.611 18.273 19.929 21.000 22.269 23.000 24.333 26.933 28.667 30.865 37.400 51.000
71 77 78 74 57 80 49 82 84 79 58 85 81 75 88 89 91 93 94
66 53 69 70 50 76 39 72 56 73 83 86 48 87 90 46 92 37 47
78 79 86 82 89 84 87 85 88 88 90 91 92 91 93 93 94 95 0
A jump of 2.2 after stage 92 is selected as the point to stop further clustering and therefore, number of clusters = 4.
DENDROGRAM (using Average Linkage (Between Groups))
Rescaled Distance Cluster Combine C A S E Label Num 64 96 32 34 66 2 63 95 31 54 86 22 44 76 12 57 89 25 35 67 3 46 78 14 38 0 5 10 15 20 25 +---------+---------+---------+---------+---------+ ?? ???????? ?? ????? ?? ? ? ???????? ? ?? ? ?? ? ???? ? ?? ????????? ?? ? ??? ???? ? ? ?? ? ? ?? ? ? ???????????? ??????? ?? ? ? ?? ? ? ???????? ? ? ?? ??????? ? ?? ? ??? ???????? ? ? ?? ? ? ?? ? ? ?????????? ? ? ?? ??????????? ? ?? ? ?
Page 12 of 16
70 6 41 73 9 55 87 23 36 68 4 61 93 29 45 77 13 42 74 10 56 88 24 53 85 21 33 65 1 59 91 27 75 84 11 43 52 20 62 94 30 37 69 5 39 71 7 58 90 26 48 80 16 51 83 ? 19 49
?????????? ??????? ?? ? ? ?? ? ? ?????????????????? ? ? ?? ? ? ? ?? ? ? ? ?????????? ? ? ? ?? ????????? ? ? ?? ? ????? ? ?????????? ? ? ?? ? ? ?? ? ? ?????????? ? ? ?? ? ? ? ?? ??????? ? ? ?????? ? ? ? ? ?? ????? ? ? ? ?? ? ? ? ? ?????? ? ? ? ?? ??? ? ?? ? ? ???????? ? ????? ?? ??????? ? ? ? ?? ? ? ? ? ? ???????? ? ? ? ? ?? ??? ? ? ?? ? ? ? ?????????? ? ? ? ?? ? ? ? ? ?? ????? ? ? ???? ? ? ? ?? ? ? ? ? ?? ??????? ? ? ?? ? ? ? ?? ? ? ? ???? ? ? ?? ? ? ?? ? ? ?? ? ??????? ?????????? ? ? ? ?? ??????????????? ? ? ? ?? ? ? ? ? ? ?????????? ? ? ? ? ?? ????? ? ? ?? ? ? ? ?????????????????????? ? ? ? ?? ? ? ? ? ?? ??? ? ? ???????????????? ? ? ? ?? ??????? ? ? ?? ? ? ? ???????????????? ? ? ?? ? ????????????? ?? ? ? ? ?????????????????????????????? ? ? ?? ?? ? ? ??? ? ? ? ?
Page 13 of 16
81 ? 17 47 79 15 40 72 8 60 92 ?
????????????????????????
?
?
?? ? ? ? ? ?? ??????? ? ? ?????????????? ? ? ? ?? ??????????? ? ? ?? ? ? ? ?????????????? ? ? ?? ? ? ?? ? ? ??????????????????????????????????????
28 ?? ? 50 ?? ? 82 ?????????????????????????????????????????????????? 18 ???
Now, k-means Clustering is run for obtaining 4 clusters. The results are seen below. Iteration 1 i. Number of Cases in each Cluster
Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing 30.000 9.000 36.000 21.000 96.000 .000
ii.
Significant differentiating variables ANOVA Cluster Mean Square df 3 3 3 3 3 3 3 3 3 3 3 Error Mean Square .773 .705 1.175 .229 .632 .527 .769 .968 1.131 .650 1.087 df 92 92 92 92 92 92 92 92 92 92 92 F Mean Square 28.515 15.061 3.369 10.745 16.820 85.019 8.324 .804 8.197 33.862 7.505 Sig. df .000 .000 .022 .000 .000 .000 .000 .495 .000 .000 .000
Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Branded_Products Car Shopping Products_In_Vogue
22.028 10.612 3.960 2.457 10.626 44.807 6.405 .778 9.274 22.024 8.160
We see that Branded-Products is not a significant variable at 90% confidence level and therefore remove it for the next iteration.
Page 14 of 16
Iteration 2 i. Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing iii. 30.000 9.000 21.000 36.000 96.000 .000 Significance of differentiating variables ANOVA Cluster Mean Square Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Car Shopping Products_In_Vogue 22.028 10.612 3.960 2.457 10.626 44.807 6.405 9.274 22.024 8.160 df 3 3 3 3 3 3 3 3 3 3 Error Mean Square .773 .705 1.175 .229 .632 .527 .769 1.131 .650 1.087 df 92 92 92 92 92 92 92 92 92 92 F Mean Square 28.515 15.061 3.369 10.745 16.820 85.019 8.324 8.197 33.862 7.505 Sig. df .000 .000 .022 .000 .000 .000 .000 .000 .000 .000
We see that all variables are now significant 90% confidence level and therefore stop iterating further. Based on final cluster centers, the clusters are profiled.
Final Cluster Centers Cluster 1 Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Car Shopping Products_In_Vogue 1.11 2.05 2.15 4.00 1.20 1.10 4.05 1.11 2.00 2.00 2 4.95 3.05 1.00 4.01 5.00 5.00 4.12 1.00 4.21 5.00 3 1.00 1.11 3.05 4.00 2.05 1.11 1.05 1.00 3.00 1.20 4 4.20 2.01 5.10 4.05 4.05 5.00 4.50 4.50 4.11 1.00
Page 15 of 16
END OF APPENDIX FOR CLUSTER ANALYSIS
Page 16 of 16
doc_132635063.docx
The objective of the presentation is to determine a suitable positioning strategy for a new brand of wrist watches based on existing market opportunities.
MARKET RESEARCH PROJECT REPORT
Table of Contents
Executive Summary...................................................................................................................... 3 Management problem ........................................................................................................................ 3 Expected value of information ............................................................................................................ 3 Data Collection Method ...................................................................................................................... 3 Measurement Technique .................................................................................................................... 3 Sample................................................................................................................................................. 3 Data Analysis....................................................................................................................................... 3 Time and Financial Requirements ....................................................................................................... 3 Time required .................................................................................................................................. 3 Research Report due date: .............................................................................................................. 3 Fees: ................................................................................................................................................ 3 Background information .............................................................................................................. 4 Objectives.................................................................................................................................... 5 Primary Research Objective ................................................................................................................ 5 Secondary Research Objectives........................................................................................................... 5 Exploratory Research Findings ...................................................................................................... 5 Research Approach (Non Technical).............................................................................................. 6 Data collection method....................................................................................................................... 6 Measurement technique .................................................................................................................... 6 Sample................................................................................................................................................. 6 Analytical approach ............................................................................................................................ 6 Data Analysis ............................................................................................................................... 7 Cluster Analysis ................................................................................................................................... 7 APPENDICES ................................................................................................................................ 9 Exploratory research questionnaire .................................................................................................... 9 Appendices for cluster analysis ......................................................................................................... 10
Page 2 of 16
Executive Summary
Management problem
The research will determine a suitable positioning for a new brand of wrist watches. For this purpose, the positioning of existing brands will be determined and a suitable strategy for the new brand will be suggested.
Expected value of information
The Indian watch market is currently worth 225mn $ (including the unorganised sector). Based on judgement, the new product is expected to garner a 1% market share. Therefore, the expected value of information is 2.25mn $.
Data Collection Method
A combination of the following data collection techniques will be used: 1. Questionnaires to collect data for exploratory research and primary data 2. Secondary research and questionnaires to collect secondary data
Measurement Technique
Questionnaires and Direct Response attitude scales will be used for measurement.
Sample
A representative sample consisting of students, working professionals, businessmen and housewives will be used. The sample size will be 75.
Data Analysis
The following techniques will be used: 1. Factor analysis 2. Cluster Analysis 3. Multidimensional Scaling and Perceptual Mapping
Time and Financial Requirements
Time required: 45 days Research Report due date: 20-Feb-2009 Fees: An all inclusive fee of 10,000$ will be charged. Page 3 of 16
Background information
The overall size of the Indian watch market is estimated to be around 40-45 million wristwatches with a double-digit annual growth of around 10%. However, the organized segment accounts for 33% and the grey market accounts for the rest. The fact remains that India's penetration of watches is amongst the lowest in the world. Also an extraordinary cultural wealth and long-standing traditions of expertise in the field of gems and jewellery - particularly gemstones makes it all the more interesting for watch companies in establishing or reinforcing contacts with the distribution network and raising awareness amongst consumers. India is one of the very few countries in the world with the capability of making all watch components right up to the finished piece. Over the last few decades, Indian horological manufacturers and makers of ancillary products such as watchcases, dials, bracelets and other components have created holistic industrial manufacturing capabilities. Also places such as Bangalore in Karnataka, Morbi and Rajkot in Gujarat and Northern India have developed specialty manufacturing core competencies. The penetration of watches in India is low - 25 watches per 1,000 people as compared to 250 in developed markets. This implies that there is a latent market of ten times the present size which on a population of 1.2 billion people would translate into 300 million watches. Cost of Watch Less than Rs.1500 Price between Rs.52800-66000 Price above Rs.132000 Estimated Potential Buyers(in lakhs) 10800 1080 60
There are several price points for watches in India - Low, Medium, High, Premium and Luxury starting from US$ 8.7(Rs.435) right up to US$ 2,175(Rs.108750) onwards. Around 70% of the watches sold in India have a price point of less than US$ 22(Rs.1100). The Indian consumer has come a long way since the time when watch imports were banned. The improving mindsets of urban consumers can be attributed to affluence, global influence and exposure. Today, the Indian consumer no longer sees a watch as a functional necessity. The Indian consumer is extremely brand conscious and sees it as a status symbol that showcases his distinctive personality. India’s population dispersion is very lucrative: more than 58% of India’s population is under 25 years of age (696 million) and over 80% under 45 years (960 million). Indian consumers have tremendous buying power: there is a 300 million strong middle class earning up to US$ 5,000 per annum. According to the recent National Readership Survey Platinum Study, a total of 828,000 people out of 859,000 in the top six Indian cities namely Mumbai, Delhi, Bangalore, Chennai, Pune and Ahmedabad - own branded watches. Rural consumers are waiting to be tapped since there is a huge potential as 600 million people do not wear watches.
Page 4 of 16
Objectives
Primary Research Objective
To determine a suitable positioning strategy for a new brand of wrist watches based on existing market opportunities.
Secondary Research Objectives
? ? ? ? To determine the different factors that influences the buying behaviour of wrist watches. To determine the existing market segments of wrist watches. To determine the suitable target group. To determine the differentiating parameters between various brands
The expected value of above information is 2.25mn $.
Exploratory Research Findings
List of popular brands: ? ? ? ? ? ? ? ? ? ? ? ? Titan Timex Citizen Maxima Rado Tag heuer Swatch Omega Hmt Rolex Zenith Tanishq Page 5 of 16
? ?
Sonata Casio
Some of the reasons/occasions and buying characteristics are mentioned below ? ? ? ? ? ? ? ? ? ? To suit to various occasions/events. Consider watches to reflect their status symbol. To look fashionable and trendy. To associate themselves with the Brand. Prefer new cool functionalities in a watch. Unwilling to pay more but prefer trendy ones so they don’t mind grey market watches Additional jewellery item. Accessory to their dress codes and colours. Designer looks. Need variety to choose from.
Research Approach (Non Technical)
Data collection method
A questionnaire for exploratory research was given to respondents and the responses were used to identify different attributes and usage characteristics that have an impact on the research. Data from relevant past researches will be used to determine existing state of the market. Finally, questionnaires will be used to collect data (primary data) that will be analysed using data analysis techniques mentioned below.
Measurement technique
Questionnaires will be used to collect data from respondents. Questionnaires will be given to the respondents in hard copy or emailed to them. Direct Response Attitude Scales will be used to understand perceptions of consumers about attributes of various products.
Sample
The sample selected will be representative of the population and will consist of students, working professionals, businessmen and housewives. The respondents will be from Pune, Mumbai, Bangalore and Gujarat. Responses from 75 respondents will be collected.
Analytical approach
The data collected will be used to: 1. Determine various factors that consumers use to make their watch purchasing decision. 2. Determine various segments in the watch market. 3. Determine the perceptions of consumers about various brands in the market.
Page 6 of 16
Data Analysis
Cluster Analysis
Cluster analysis is a multivariate procedure used for segmentation in marketing research. A cluster is a group of similar objects and segmentation involves identifying group of target customers who are similar in buying habits, demographics, psychographics and behavioural characteristics. On performing cluster analysis on our set of 96 respondents, the following factors were found to be important distinguishing ones: Occasion Social Status Functionalities Age Jewellery Multiple Brands Occupation Car Shopping Products in Vogue Following are the profiles of the four clusters
Cluster 1 (Fashionable Rich) 1. Wear different watches for different occasions 2. Believe that watches contribute to social status 3. Want additional functionalities in the watch (like alarm, calculator, stopwatch) 4. Believe that choice of watch is not influenced by age 5. Consider watch to be a jewellery item 6. Have watches of several brands 7. Don’t believe that choice of watch changes with occupation 8. Strongly believe that car is a necessity and not a luxury 9. Shop for fun 10. Prefer products in vogue Page 7 of 16 Cluster 2 (Utility, Value Seekers) 1. Do not prefer different watches for different occasions 2. Believe that watches do not contribute to social status 3. Strongly prefer watches with additional functionalities 4. Believe that choice of watch is not influenced by age 5. Do not consider watch as a jewellery item at all 6. Have a single brand of watch 7. Don’t believe that choice of occupation changes with occupation 8. Strongly believe that car is a necessity and not a luxury 9. Don’t shop for fun 10. Don’t prefer products in vogue
at all Cluster 3 (Image Conscious) 1. Wear different watches for different occasions 2. Agree that watches contribute to social status 3. Are neutral about additional functionalities in a watch 4. Believe that choice of watch is not influenced by age 5. Consider watch to be a jewellery item 6. Have watches of several brands 7. Believe that choice of watch changes with occupation 8. Strongly believe that car is necessity. 9. Are neutral about shopping for fun 10. Strongly prefer products in vogue Cluster 4 (Simplistic Commoner) 1. Do not prefer to wear different watches for different occasions 2. Do not agree that watches contribute to social status 3. Do not prefer additional functionalities in a watch 4. Believe that choice of watch is not influenced by age 5. Do not consider watch to be a jewellery item 6. Have a single brand of watch 7. Don’t believe that choice of occupation changes with occupation 8. Believe that car is a luxury 9. Don’t shop for fun 10. Neutral about products in vogue
The number of cases in each of the clusters is as shown below. Cluster 1 2 3 4 Total 30.000 9.000 21.000 36.000 96.000
NOTE: Kindly Refer Appendix for technical tables and procedures followed.
Determination of existing market segments of wrist watches
Four existing segments have been identified-the fashionable rich, the utility (value) seekers, the image conscious and the simplistic commoners.
Page 8 of 16
The new brand will have excellent variety, style, brand image, service and durability. It will compete with Titan, the market leader on all above attributes. Also, it is better on status than Titan.
The target groups that we have identified are shown below: Selective Specialization Products/Segments S1 (Fashionable Rich) P1 P2 S2( Value Seekers) S3(Image Conscious) S4(Simplistic Commoner)
APPENDICES
EXPLORATORY RESEARCH QUESTIONNAIRE
1) Why do you wear a watch?
Page 9 of 16
2) What are the various factors that influence you while buying a watch?
3) What are the brands of wrist watches you are aware of?
APPENDICES FOR CLUSTER ANALYSIS
Agglomeration Schedule Stage Cluster First Appears Cluster 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Cluster 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13 0 0 0
Stage
Cluster Combined Cluster 1 Cluster 2 96 95 94 93 92 91 90 89 88 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72
Coefficients Cluster 1 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000
Next Stage Cluster 2 33 34 35 36 37 38 39 40 41 42 43 44 22 46 47 48 49 50 51 52 53 54 55 56 57
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
64 63 62 61 60 59 58 57 56 55 54 53 75 51 50 49 48 47 46 45 44 11 42 41 40
Page 10 of 16
26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
39 38 37 36 35 34 33 32 31 30 29 28 27 26 25 24 23 22 21 43 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 11 22 11 10 3 21 2 4 6 1 5 10
71 70 69 68 67 66 65 64 63 62 61 60 59 58 57 56 55 54 53 52 51 50 49 48 47 46 45 44 43 42 41 40 39 38 37 36 35 34 33 20 31 27 13 25 24 32 23 14 11 30 29
.000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 .000 3.000 4.000 6.000 7.000 7.000 8.000 9.000 9.000 9.667 10.000 10.000
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 22 0 0 0 0 0 0 0 0 0 0 54 43 65 55 62 44 63 61 59 64 60 68
0 0 0 0 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 0 14 15 16 17 18 19 20 21 45 23 24 25 26 27 28 29 30 31 32 0 34 38 52 40 41 33 42 51 67 35 36
58 59 60 61 62 63 64 71 66 75 76 94 67 83 69 70 72 66 70 54 92 95 89 83 81 73 68 78 65 68 85 81 87 73 75 72 69 71 74 67 77 74 76 79 80 77 84 86 80 90 82
Page 11 of 16
77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95
2 2 2 1 8 1 16 1 1 2 7 1 8 5 1 8 1 1 1
22 12 3 21 15 10 26 4 9 6 16 2 17 7 5 19 8 28 18
11.000 11.750 13.100 13.250 14.000 14.667 16.000 17.611 18.273 19.929 21.000 22.269 23.000 24.333 26.933 28.667 30.865 37.400 51.000
71 77 78 74 57 80 49 82 84 79 58 85 81 75 88 89 91 93 94
66 53 69 70 50 76 39 72 56 73 83 86 48 87 90 46 92 37 47
78 79 86 82 89 84 87 85 88 88 90 91 92 91 93 93 94 95 0
A jump of 2.2 after stage 92 is selected as the point to stop further clustering and therefore, number of clusters = 4.
DENDROGRAM (using Average Linkage (Between Groups))
Rescaled Distance Cluster Combine C A S E Label Num 64 96 32 34 66 2 63 95 31 54 86 22 44 76 12 57 89 25 35 67 3 46 78 14 38 0 5 10 15 20 25 +---------+---------+---------+---------+---------+ ?? ???????? ?? ????? ?? ? ? ???????? ? ?? ? ?? ? ???? ? ?? ????????? ?? ? ??? ???? ? ? ?? ? ? ?? ? ? ???????????? ??????? ?? ? ? ?? ? ? ???????? ? ? ?? ??????? ? ?? ? ??? ???????? ? ? ?? ? ? ?? ? ? ?????????? ? ? ?? ??????????? ? ?? ? ?
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70 6 41 73 9 55 87 23 36 68 4 61 93 29 45 77 13 42 74 10 56 88 24 53 85 21 33 65 1 59 91 27 75 84 11 43 52 20 62 94 30 37 69 5 39 71 7 58 90 26 48 80 16 51 83 ? 19 49
?????????? ??????? ?? ? ? ?? ? ? ?????????????????? ? ? ?? ? ? ? ?? ? ? ? ?????????? ? ? ? ?? ????????? ? ? ?? ? ????? ? ?????????? ? ? ?? ? ? ?? ? ? ?????????? ? ? ?? ? ? ? ?? ??????? ? ? ?????? ? ? ? ? ?? ????? ? ? ? ?? ? ? ? ? ?????? ? ? ? ?? ??? ? ?? ? ? ???????? ? ????? ?? ??????? ? ? ? ?? ? ? ? ? ? ???????? ? ? ? ? ?? ??? ? ? ?? ? ? ? ?????????? ? ? ? ?? ? ? ? ? ?? ????? ? ? ???? ? ? ? ?? ? ? ? ? ?? ??????? ? ? ?? ? ? ? ?? ? ? ? ???? ? ? ?? ? ? ?? ? ? ?? ? ??????? ?????????? ? ? ? ?? ??????????????? ? ? ? ?? ? ? ? ? ? ?????????? ? ? ? ? ?? ????? ? ? ?? ? ? ? ?????????????????????? ? ? ? ?? ? ? ? ? ?? ??? ? ? ???????????????? ? ? ? ?? ??????? ? ? ?? ? ? ? ???????????????? ? ? ?? ? ????????????? ?? ? ? ? ?????????????????????????????? ? ? ?? ?? ? ? ??? ? ? ? ?
Page 13 of 16
81 ? 17 47 79 15 40 72 8 60 92 ?
????????????????????????
?
?
?? ? ? ? ? ?? ??????? ? ? ?????????????? ? ? ? ?? ??????????? ? ? ?? ? ? ? ?????????????? ? ? ?? ? ? ?? ? ? ??????????????????????????????????????
28 ?? ? 50 ?? ? 82 ?????????????????????????????????????????????????? 18 ???
Now, k-means Clustering is run for obtaining 4 clusters. The results are seen below. Iteration 1 i. Number of Cases in each Cluster
Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing 30.000 9.000 36.000 21.000 96.000 .000
ii.
Significant differentiating variables ANOVA Cluster Mean Square df 3 3 3 3 3 3 3 3 3 3 3 Error Mean Square .773 .705 1.175 .229 .632 .527 .769 .968 1.131 .650 1.087 df 92 92 92 92 92 92 92 92 92 92 92 F Mean Square 28.515 15.061 3.369 10.745 16.820 85.019 8.324 .804 8.197 33.862 7.505 Sig. df .000 .000 .022 .000 .000 .000 .000 .495 .000 .000 .000
Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Branded_Products Car Shopping Products_In_Vogue
22.028 10.612 3.960 2.457 10.626 44.807 6.405 .778 9.274 22.024 8.160
We see that Branded-Products is not a significant variable at 90% confidence level and therefore remove it for the next iteration.
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Iteration 2 i. Number of Cases in each Cluster Cluster 1 2 3 4 Valid Missing iii. 30.000 9.000 21.000 36.000 96.000 .000 Significance of differentiating variables ANOVA Cluster Mean Square Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Car Shopping Products_In_Vogue 22.028 10.612 3.960 2.457 10.626 44.807 6.405 9.274 22.024 8.160 df 3 3 3 3 3 3 3 3 3 3 Error Mean Square .773 .705 1.175 .229 .632 .527 .769 1.131 .650 1.087 df 92 92 92 92 92 92 92 92 92 92 F Mean Square 28.515 15.061 3.369 10.745 16.820 85.019 8.324 8.197 33.862 7.505 Sig. df .000 .000 .022 .000 .000 .000 .000 .000 .000 .000
We see that all variables are now significant 90% confidence level and therefore stop iterating further. Based on final cluster centers, the clusters are profiled.
Final Cluster Centers Cluster 1 Ocassion Social_Status Functionalities Age Jewellery Multiple_Brands Occupation Car Shopping Products_In_Vogue 1.11 2.05 2.15 4.00 1.20 1.10 4.05 1.11 2.00 2.00 2 4.95 3.05 1.00 4.01 5.00 5.00 4.12 1.00 4.21 5.00 3 1.00 1.11 3.05 4.00 2.05 1.11 1.05 1.00 3.00 1.20 4 4.20 2.01 5.10 4.05 4.05 5.00 4.50 4.50 4.11 1.00
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END OF APPENDIX FOR CLUSTER ANALYSIS
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