Team: Fresh LIME Soda

1. Team: Fresh LIME Soda Team Code: IIMI3069

2. Objective & Agenda Industry and Competitor Analysis Understanding the Indian Watch Industry Major trends and perceptual findings Competitive Landscaping – Carving a niche’ for FC in India Research Secondary Research - Findings Primary Research - Methodology - Insights AccessibleLuxury Creativity Capability Analysis Classic Live your Passion Vintage SWOT analysis Swiss Geneve’ Collector’s Value Handcrafted Automatic Heritage Corporate Focus Pros in segmentation and focus Cons of this segmentation Expanding the focus Branding & Marketing of FC in India New Positioning – Brand Key 8P Framework for FC Associations Digital Strategy CSR Watch with Devanagari Script 1

3. Indian Watch Industry Low penetration and high growth rate show the opportunity in India Industry & Competition Market Segmentation by price** Utilitarian product (know and manage time) Research Tablets Laptops Desktops Rs. 4200 Cr. 460 lakh pieces Wrist Watches Lifestyle product Cable TV Mobiles 2.1 370 1700 86.5 900 1600 SWOT and Brand Equity Wrist Watches STP and Marketing Mix 10 - 15% pa Sales value Volume (lakh pieces) Value (Crore) Integrated Campaign Time 10-15% Continued growth rate every year despite the increase in substitutes* 27 % Wrist watch penetration in India* Devanagari Watch 3.5 % of the India own multiple watches* *Source: Indian Journal of marketing, June 2013 **Source: Technopak Analysis 2

4. Indian Luxury Timepieces Various brands cater to different luxury segments like affordable luxury, aspirational luxury and absolute luxury Industry & Competition Trends CATEGORY DATA Research • Luxury brands account for 4% of total timepieces sales • CAGR of 24% • Increased presence in smaller cities fuel sales • Special eventsand giftingoccasionssupporting growth, particularly popular gifts amongst Seniorcorporatemanagersand for Governmentemployees • Menare most likely customers than women • Majority of sales from storebasedretailing in Tier Icities • GreenLuxuryand Socialresponsibilityis important factor Sales of Luxury Timepieces by Category: Value 2007-2012 SWOT and Brand Equity Sales of Luxury Timepieces by Category: % Value Growth 2007-2012 STP and Marketing Mix Forecast Sales of Luxury Timepieces by Category: Value 2012-2017 Integrated Campaign Prospects • Penetration into leading jewellery and watch outlets like Malabar Gold in south India and TBZ in north India • Onlineportals will develop as a retail channel Forecast Sales of Luxury Timepieces by Category: % Value Growth 2012-2017 Devanagari Watch 3 Source: Euromonitor

5. Consumer Perceptions Brand image and status influence the older generation more, while others’ influence has a role to play among the younger generation Results of a Primary Research survey done to study consumer based perceptions, and predict trends Methodology: Survey Respondents: Sample size 100; 50 Gen X, 50 Gen Y Industry & Competition Research • 7 – 8 years • High brand loyalty(Stable) • Reason for loyalty: class, status and image • complement them and their personality • Top-of-the-mind recall • Brand tag lines - LOW • Brand ambassadors – HIGH • Brand loyalty beyond watches - LOW • 2 -3 years • Low brand loyalty (Open to Experimentation) • Reason for loyalty: contemporariness, influence • Aspiration to buy costlier watches • Top-of-the-mind recall • Brand tag lines – LOW but better than Gen X • Brand ambassadors – HIGH • Brand loyalty beyond watches - HIGH • Fastrack • Tommy Hilfiger • Reebok • Casio • Gucci • Diesel • Calvin Klein • Armani • Titan • Citizen • Rolex • Timex • Tissot • Calvin Klein • Casio • Armani • Few people • “to own a watch for a particular occasion” • Styling aspect • Few people • “to own a watch for a particular occasion” SWOT and Brand Equity Gen X >35 years STP and Marketing Mix Comparative brand hierarchy Duration of brand usage Multiple watches per individual Other factors Consumer Integrated Campaign Gen Y 18 – 35 years Devanagari Watch 4 Secondary Research: Published in Indian Journal of marketing, July 2013 edition

6. Competitor Analysis All major competitors have a reasonably well defined emotional space Industry & Competition Research Swiss Swiss Swiss Swiss Japanese Origin Super Premium Premium Super Premium Premium Mid - premium SWOT and Brand Equity Target Segment Rs 1,00,000 + Rs 70,000 – Rs 7,00,000 Rs 1,20,000+ Rs 40,000 – Rs 5,50,000 Rs 6,000 – Rs 1,00,000 Price Points STP and Marketing Mix Omega signifies prestige and accomplishment Tag Heuer talks of self identity and self esteem Success, accomplishment going beyond one’s limits Made to last beyond time Elegance is an attitude Brand Character Integrated Campaign A premier well engineered watch A Swiss luxury watch; Spirit of achievement Symbol of success; a jewel Beautiful designs, elegance A sports chronograph, self esteem Benefits Offered Devanagari Watch 5 Analysis done through Secondary Research: Studying the advertisements, websites and Social Media

7. Competitor Analysis The grid below shows the top 10 brands in India* in terms of their Products Attributes and Positioning Industry & Competition Mechanical Movements / Automatic Quartz Research Exclusive Luxury SWOT and Brand Equity Jewellery Lifestyle STP and Marketing Mix Technical Design Accessible Luxury Integrated Campaign Fashion Sports Devanagari Watch Quartz Mass / Lower Priced Source: Swiss Luxury Watch making Industry, Karine Gautshi, 2005 *Top 10 brands in India as per retailer feedback, as provided in the case 6

8. Primary Research Corporate executives form the chunk of people who consider purchasing a Frederique’ Constant timepiece Industry & Competition Primary Research* was done in 2 stages by visiting various watch retail outlets in Mumbai Methodology: Personalised interviews and Observation Respondents: Watch Stores’ Retailers / Managers Location: At the retail store Research Stage 1: Process: Interview with owners/ managers/ sales staff of various luxury watch stores Objective: To determine luxury consumers’ preferences, and develop insights about their consumer behaviour and trends Stage 2: Process: In depth Interview with owners/ managers/ sales staff of 3 Frederique Constant Stores in Mumbai Objective: To determine profiles of past Frederique’ Constant buyers, and develop insights about customer perception about the brand SWOT and Brand Equity STP and Marketing Mix Integrated Campaign Devanagari Watch • Insights: • Frederique’ Constant is purchased / • enquired about mostly by corporate • people and business executives (clear • results of the focus and marketing till • now) • An FC watch is not perceived as designer/ • fashion piece at all, and more of a classic • Swiss watch, purchased for quality • The devanagari script watch found quite a • few purchases from Politicians • Insights: • Luxury customers are extremely • brand conscious; One would rather buy • a simple watch of a premium brand • rather than a fancy watch of a brand • not as premium • Luxury customers are not as particular • about designs as they are about the • brand itself • Indian luxury customers enjoy good • deals – are value seekers 7 *Detailed description and results of research in Annexure 1

9. SWOT Differentiating strengths will form the basis of building brand identity Weaknesses Show priority areas or focus areas for Marketing Highlight wrong strategies Industry & Competition Strengths Greater if it is a POD rather than just a POP Can be leveraged upon to build Competitive Advantage in the long term Research • New Entrant to • Indian Market • Low Brand Awareness • Lower number of mass campaigns (only focused promotion) • No high profile ambassador • Not perceived as a young person’s watch • Swiss origin (Geneva) • Handcrafted Automatic Mechanical Timepieces • Vertical integrationdelivering better quality • Heritage value of timepiece • Corporate focus • Classic sedate designs Find ways to overcome effects of weaknesses through innovation / alternate channels SWOT and Brand Equity Consumers need to be communicated about FC’s Differentiators STP and Marketing Mix Opportunities Highlight new avenues to build capabilities Conducive environment changes • Increasing disposable income • More upcoming ventures to partner • Corporate gifting trend • Target a younger audience • Communicate the long term • value of an • FC watch • Mobile manufacturers entering the watch manufacturing space • Cheaper substitutes • Counterfeit watch market • Older brands with higher equity in India Integrated Campaign Threats Increasing risk of environment factors Risk of current brand strategy Devanagari Watch Growing market potential that needs a good marketing mix to tap Need to take up strategic brand building activities over a longer period 8

10. Brand Equity Understanding Brand Equity of Frederique Constant in India FC’s Brand Equity Industry & Competition Measuring the Brand Equity Objective To achieve long term leadership in India, Frederique Constant will have to create a strong, differentiated brand positioning and focus on the correct target according to the brand character Brand Asset Valuator®(BAV)*by Young and Rubicam Group used to measure equity Points of Parity and Points of Differenceº can help understand brand equity of Frederique Constant in India Research Niche’/ Untapped Leadership SWOT and Brand Equity Declining Brand Strength (Differentiation and Relevance) Since the luxury watch industry is already crowded with multiple brands, and each of them partly own equities of craftsmanship, precision, quality, and other functional attributes of automatic watches, to create differentiation, instead of competing in the same space, Frederique Constant to create Executional equity of ‘Live your Passion’ with other brand characteristics supporting as functional equities STP and Marketing Mix New Eroding Unfocussed Integrated Campaign Brand Stature (Esteem and Knowledge) Frederique’ Constant in India is differentiated in terms of its design, heritage, corporate focus and value, however, it still remains fairly niche’ due to the huge untapped potential Devanagari Watch AccessibleLuxury Swiss Geneve’ Live your Passion The long term goal of FC as a brand will be to move into the upper right quadrant (Leadership) Vintage Heritage Creativity Collector’s Value Handcrafted Automatic ºAs per primary research with watch retailers, and secondary data analysis 9 *Detailed description about BAV in Annexure 3

11. Segmentation Strategy Focus on Corporate Sector needs to be expanded to Professionals Industry & Competition • Too focussed, and the target may not resonate the brand as effectively as desired • Segmentation and targeting ideally be based on psychographics for a lifestyle product • Focussed Identity of a ‘Corporate Watch’ • Untapped to a great extent by competition • Offer less expensive means for focussed promotions – as opposed to mass campaigns Research SWOT and Brand Equity LiveyourPassion Leveraging some of the merits of current Strategy and rectifying some of the cons, we propose expanding the target to a larger group of ‘Professionals’ - business executives, doctors, lawyers, journalists, teachers, artists etc. STP and Marketing Mix Demographic Segmentation Mainly corporate executives, however also including professional businessmen , musicians, doctors, academicians, sportsmen, journalists etc. Income bracket: High income Psychographic segmentation Based on Personality, Values and Lifestyles Passionate and mature individuals who appreciate beauty of niche’ handcrafted automatic designer products. They desire premium products to reflect their passion Integrated Campaign Devanagari Watch 10

12. Brand Positioning Positioning of Frederique Constant and building the brand Industry & Competition Luxury timepieces - handcrafted with passion Accessibility Product Philosophy Research The Brand Key* Model developed by HUL is used to understand the positioning of the Frederique’ Constant brand, and to understand strategic fit of ‘Live your Passion’ for passionate professionals Made in Geneva Passionate endorsers, heritage of founders Passionate, Appreciation for Swiss luxury, craftsmanship, classic design Values, Beliefs, Personality SWOT and Brand Equity Reason To Believe Live your Passion Discriminator STP and Marketing Mix Benefit Handcrafted in Geneva ; Passionate about owning & wearing an FC watch Classic designs– A reflection of passionate professionals A passionate, confident individual wants a sedate luxury timepiece – reflection of his own passion and personality Integrated Campaign Insight A passionate person who has a desire for exquisite luxury and craftsmanship Luxury time pieces, ‘’technology watches, luxury jewellery - bracelets Target Competitive Environment Devanagari Watch Root Strength Passion (profession, craftsmanship, design, interest) Value through accessibility *Detailed description about Brand Key in Annexure 2 11

13. Marketing Mix 8 P’s Re-defining the Marketing Mix according to the 8Ps of Luxury marketing* • Product level (Functional Benefit) - handcrafted, own caliber development, beautiful designs, new technologies • Experiential level (Emotional Benefit) – “Live your passion” Industry & Competition PERFORMANCE Research • The Swiss connection ‘Geneva’ • Heritage: Frederique Constant – first names of great grand parents of founders P PEDIGREE PRICING • Accessible Luxury • Price points – Rs. 45, 000 to Rs. 2.25 lakh P P SWOT and Brand Equity PUBLIC RELATIONS (PR) • Handcrafted quality constrains mass production • Limited POS • Events • Other Associations P P PAUCITY STP and Marketing Mix P P • Distinctive projection – Passion • Coherence across consumer touch points – events, associations • Visual brand identity • Long form commercials/ short film videos targeted towards professionals • Activation Programs – ‘Share your Passion’ Integrated Campaign • Retail brand environment – heightening consumer experience • Niche media – events, magazines, In-flight entertainment PLACEMENT P PERSONA PUBLIC FIGURES Devanagari Watch • Garners attention, credibility and impact • Personality resonates with brand aura (passionate professionals) – Harsha Bhogle, Chetan Bhagat • Weekly podcasts about their stories and life, distributed across digital channels Key Takeaways • Experiential value is as important as product excellence • Pedigree is important but it is also important to generate ongoing relevance and dynamism through Persona, PR • Exclusivity and Stature through paucity and placement factor 12 *8P Analysis by BPG Group, UAE; Source: Brand channel

14. Recommendation IMC Based on the STP and mix towards building the brand, what we propose for the short term is a targeted campaign under theme of ‘Passion’ Industry & Competition Research • Mobile Devices • Social Media marketing • Direct Emails • Website and blog • Search based ads • Corporate executive cricket and golf tournaments, offsites • Exhibitions in 5 star hotels • Annual Business Quiz – Passion SWOT and Brand Equity IMC Media Mix Liveyourpassion STP and Marketing Mix • Reducing the electronic waste campaign • Fund raising for specific causes • Tie ups with hospitals and nursing homes • Carbon positive manufacturing and service setups • Print based • Airlines screens • Airports billboards • Hotels, lounges and clubs • Exclusive previews and concerts Integrated Campaign Devanagari Watch • Use of technology enabled devices (e-displays) at POS • Small branded collectibles with every watch (depending on collection) 14

15. Advertising and POS Targeted advertising in specific media will help reflect brand character, and build brand salience; POS will help improve brand imagery Industry & Competition Endorsers Suggested Advertising Communication Themes Get passionate people to endorse the brand – not necessarily high profile celebrity endorsers, but popular individuals who are passionate about what they do Celebrate your Passion professional achievements and milestones (first job, a promotion) - Rewarding yourself with an FC- a timeless masterpiece to celebrate your passion Gifting during festivals Gift yourself, Gift others - a perfect gift for the passionate professional My Passion – my pride Inspirational heritage and story of Frederique Constant founders and their values and passion Research SWOT and Brand Equity STP and Marketing Mix Channels for Advertising Point of Sales Marketing Magazines E- displays and screens • Besides corporate magazines already used, Forbes, Business Today and The Week Magazine • Since the TG is now Professionals, lifestyle magazines like Chip, Verve, Tehelka can be added • ‘The Little Magazine’ featuring art, films, documentaries, poetry can be an interesting addition At the POS technology enabled electronic catalogues can be used to display various ideas around Passionate. Integrated Campaign Billboards Branded FC collectibles Devanagari Watch Outside airports, IT parks, studios, 5 star hotels Refine packaging to include a branded collectible with every FC watch – Either it can be standard or varying as per the FC collection Examples: A Frederique Constant Stamp, a heart shaped ornament In-Flight entertainment for international flights bound into India 15

16. FC Collections Themes Under the leitmotif of ‘Passionate Professionals’ a few communication / advertisement themes are suggested for each of the FC collections Industry & Competition Inspired by passionate individuals, Manufacture is a range of exquisite handcrafted watches that signifies Passion for Innovation Elegant, Bold; Runabout is a range of handcrafted, hand polished watches for passionate professionals who have an eye for detail Research SWOT and Brand Equity Runabout Manufacture Feminine and sophisticated, classic and elegant, sexy in every detail; Ladies automatic is a range of fine mechanical timepieces developed with passion by women for women. It reflects the values and aspirations of the modern, independent professional woman A collector's masterpiece; Vintage Rally is a range of exquisite handcrafted watches which are a timeless signature of the collector’s passion for style and prestige STP and Marketing Mix Vintage Rally Ladies automatic Liveyourpassion Integrated Campaign classic Devanagari Watch A Swiss masterpiece; Classic is a range of heritage watches known amongst collectors for their exceptional value; for the classic professional! 13

17. Events and Associations Promotions through exclusive Events & Associations will improve Persona of the brand Industry & Competition Objective To create awareness about Frederique’ Constant among Passionate Professionals in a targeted manner Process Convene professionals who share passions and educate them about FC while giving them a chance to live their passion – brand resonance Research SWOT and Brand Equity STP and Marketing Mix Bringing the “Passion Awards” to India – Extend the theme to professionals Participation in events like Indian Luxury Expo & Mint Luxury Conference Sponsoring Corporate Sports Tournaments. – like Cricket, Polo and Golf. An FC watch as a winners memento Partner with corporate associations for sponsorship of corporate offsites for executives Integrated Campaign Devanagari Watch Starting an Annual Event like a Business Quiz or a Quizzes within specific Professional domains FC Exhibitions 5 star hotels Also fine dine pubs, lounges and restaurants can have promotions Sponsoring Niche’ Professional Events and Concerts Niche events like the Mahindra Blues, Jazz concerts etc Strategic Event Partnerships with Car Shows/Rallies which FC does globally – Land Rover 16

18. Digital Marketing “Digital is a common landscape for luxury consumers, so as digital content evolves and the web grows, brands are testing how to interact with their consumers in the digital space” -- Andrea Wilson, luxury practice lead, iProspect Industry & Competition 70% of consumers prefer to hear about new products from Facebook friends rather than brands* Big opportunity for brands to play a stronger role on Facebook, Twitter and other platforms = + 57% have asked their friends on Facebook for advice before purchasing a product* Research Continuous engagement • SEO • Search guides Search Engine Optimization improves through uploading of fresh content on the website Ads should be strategically placed so as to improve • Mobile Apps • QR codes • FC Smartphone App • Make and share your own FC watch design on the app • Get information about FC watches and events SWOT and Brand Equity keywords Mobile Devices FC on Social Media Communities of Passionate Professionals Besides brand FC page, FC should have an India specific page – which should continuously be uploaded with fresh content about sponsored events, associations and happenings. Since the new focused target are Passionate Professionals, create forums where they can share stories, and interact with each other Build activity through engaging content, promotions, taglines and contests Invite passionate professionals to share their stories STP and Marketing Mix • Highly targeted • High ROI • High competition for attention Social media Digital Marketing Website Let’s get personal Email Search Emails to be sent to focussed professionals/ groups before and after events to build brand experience Integrated Campaign Build brand Communities • Big, beautifulimages • Detailed product descriptions • Captivating lifestyle content • Video and image galleries Devanagari Watch • Loyalists, Frequent customers, Aspirational fans • Enthusiast forums • Brand moderators Have an India – specific micro-site on the website Upload sponsored news and events to build identity of passion Content is the king 17 *Source: 8thBridge report, 2012

19. CSR CSR is an increasing focus among elite luxury brands and in India this trend is all set to take off in a big way Industry & Competition Recently in August 2013, the Indian Government passed a clause where companies will have to spend 2% of their net profit on CSR projects. It gives an opportunity to Frederique Constant to tie up with corporates for such projects, providing greater brand visibility, as well as strengthening support of the brand towards social causes Research SWOT and Brand Equity Frederique Constant - Heart Association Sponsor certain fund raising events where charities and associations can put out presentations / shows and wealthy people, corporations and institutions can donate towards the cause. Since FC is associated in a big way towards Heart diseases, partnering with heart research institutes and hospitals is strategic in India as well. Social media can be used for promotions STP and Marketing Mix Be a part of the Heritage: All partnering charities, associations and NGOs to be rewarded with a trip to FC HQ in Geneva Integrated Campaign E-waste Creating awareness about the generation of tremendous amounts of e-waste generated through used cells in watches. Promoting mechanical watches and creating awareness about the longer life and collectible nature of watches. Creation of short films and viral videos to support the cause Devanagari Watch Carbon Surplus All manufacturing and service centers the world over - to be carbon positive or rather carbon surplus. This can be communicated through different media 18

20. ‘DevanagariScript’ watch Passionate about Indian design – a timepiece handcrafted for you! Industry & Competition ‘Ethnically Aesthetic’ Research • Product inline with consumers’ values • Indian consumer sees a sign of luxury in Indian culture/ ethnicity/ royalty • Focus on ‘Political class’ Ethnic: a range of handcrafted watches for the Passionate Indian who attempts to build a connect with his roots while at the same time making efforts to achieve grandeur SWOT and Brand Equity Promotion Campaigns along National Festivals like 15th of August or 26th of Jan Special strategic promotions during Gifting festivals like Diwali, Holi, Rakshabandhan etc. Marketing campaign on Social Media, about Indian-ness Share why you’re passionate about India! Imagery to feature ancient royal Indian culture – jewels, ethnic handicrafts, surroundings STP and Marketing Mix Integrated Campaign Primary Research suggested that the watch was fancied by Politicians Created for India Crafted in Switzerland For the Passionate Indian Devanagari Watch 19

21. T.H.A.N.K Y.O.U

22. Annexure 1 Primary Research Details Brand Key Terminology Brand Asset Valuator Frederique Constant Stores visited in Mumbai – The Collective, Watches of Switzerland. Interviews with store managers/ sales person Photographs of display Frederique’ Constant Watches at the POS Broad List of Questions / Topics discussed: What do luxury watch customers (watch purchase above Rs. 20,000) prefer the most? – Brand loyalty v/s design of the watch What are the most important factors taken into consideration while making such a purchase? What is profile of people who enquire about or consider the Frederique Constant brand? What does Frederique Constant known for the most? Does Frederique Constant receive a lot of corporate orders? Which collection of Frederique Constant is the most popular? About the watch with Devanagari script – did regular FC buyers buy it or it attracted specific buyers?

23. Annexure 1 Primary Research Details Brand Key Terminology Brand Asset Valuator Results of the Research What matters the most while making a luxury purchase Brand v/s Design Brand Loyalty Design What FC is known for the most Profile of people interested in FC • Swiss watch • Sedate clean dial designs • Quality • Collector value Most Popular collection of FC Devanagari Script watch - India Manufacture’ Collection Politicians :: and People who preferred something ethnic Mainly Corporate Executives

24. Annexure 2 Primary Research Details Brand Key Terminology Brand Asset Valuator and • The Brand Key model consists of ten steps to establish effective brand positioning. The ten steps have been described below: • Root Strengths- It is the original product, values and/or beliefs that made the brand great and on which we want brand to build. • Competitive Environment – List of competitors, includingshare of wallet and share of mind • Target – It’s the person and the situation for which the brand is always the best choice, defined in terms of their attitudes and values, and not just demographics. • Insight – The element of all you know about the target customer and their needs on which the brand is founded. • Benefits – The differentiating functional, emotional and sensory benefits that motivate purchase. • Values, Beliefs and Personalities – The brand values what the brand stands for and believes in and its own personality. • Product Philosophy – Our guiding product beliefs and principles and how we prove these principles through product experience. • Reasons to Believe – These are the proofs we offer to substantiate the benefits/brand experience • Discriminator – The single most competing and competitive reason for the target consumer to choose the brand. • Essence - The distillation of the brand into a core idea or promise.

25. Annexure 3 Primary Research Details Brand Key Terminology Brand Asset Valuator • The Brand Asset Valuator Model (Trademark of Young & Rubicam Group) measures brand equity based on 4 parameters, as explained below: • Differentiation: Difference, uniqueness and distinctiveness – Reflecting the brand’s essence and ability to stand out from competition. Also captures the brand’s ability to command a premium. • Relevance: Personal appropriation to customers of the target group. Relevance is the source of the brands staying power. • Esteem: The degree to which the target group likes the brand, and understands how it fulfils its brand promise. Esteem is influenced by popularity and quality. • Knowledge: It means the ability of customers to internalize what the brand stands for. Knowledge is generally achieved over time, and marketing and media is crucial in achieving this. • Brand Relevance and Differentiation together make up ‘Brand Strength’ • Brand esteem and knowledge make up ‘Brand Stature’