Category Attractiveness

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Assignment #1

Category Attractiveness Analysis of Maxima Watches

Course Title: “Product & Brand Management” Course Code: MGT 532

Submitted To: Anju Sahni

Submitted By: Varun Puri Sr. No. :28 (AG 2) Roll No.R1805 A 19 Reg. No. : 10800464

Lovely School of Business Lovely Professional University

Introduction
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. In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Fréderique 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. Maxima watch co. was born in 1996 out of the vision to serve the economically weak segments of our society. Until then, the vast majority of people had the option of buying either an expensive wristwatch at above Rs 500 or be fleeced by the smuggled or duplicate watches selling at throwaway prices but with no assurances of quality or service. Maxima was the result of a vision to serve this vast majority through a product that was accurate, reliable, guaranteed for quality, backed by after sales service, a national brand but more importantly honestly priced at Rs 350. The success of their single point communication of "India's first guaranteed waterproof watch at Rs 350” created history of sorts in establishing high brand awareness and recall amongst our target audience The Changing Face of Maxima: Maxima began with the most memorable commercial of the watch falling in the pool. They followed later, with the commercial that could not have reinforced any better the strength of their watches, with an elephant stamping on the watch. They introduced the Gold commercial to declare the entry of Maxima into metal dress watches. They also went on air with the slick Scuba collection commercial, catching the eye of the youngsters.

Category Attractiveness Analysis
Aggregate Market Factors
Category Size: 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. 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, Maxima, Sonata, Ajanta and Timex along with foreign entities jostling for display space in the smallest of shops selling these products. In post liberalization India, the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Fréderique 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. Market size is big, so this market has high attractiveness, as we see 40 to 45million pieces are annually sold. Assessment Market Attractiveness: (++) Category Growth: The average growth in the size of the market is slated to be around 10 -15 percent per year. 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. According to a recent study, more than 90 percent of the watches were from the lower price...
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