PPBM Exercise Fastrack brand Extension

Product Policy & Brand Management

Exercise II : Studying brand Extension by Fastrack

Thursday, 23 February 2012

Group VI MEEMANSA VAJPAYEE | AYUSHI AGRAWAL | PUNYATA TULI MANGESH PATIL | ARJUN RAO | MAHTAAB KAJLA

Flow of Presentation

Identifying Opportunity for Brand Extension

Fastrack – The brand

Brand Equity of the Original Product

Page  2

Brand Equity post Brand Extension

Brand – Product Matrix

Brand Extension Timeline

Brand Creation and building

Product Policy & Brand Management| Fast Track

Fastrack – The brand

 Launched as a sub-brand of Titan in 1997 to address the youth segment for wrist watches  Target segment initially identified as college-goers later changed to young executives as college-goers perceived to have low disposable income  Focus on functional and stylish design of watches  Mid-price range  Target segment again changed to college-going youth in 2000; product category named as “Wrist-wear” to highlight style aspect rather than functionality  Brand extended to “Eye-wear” in 2004  Brand extended to “Youth accessories” with wrist-wear, eye-wear, bags, belts and wallets in 2007  Independent retail stores opened under Fastrack brand name

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Product Policy & Brand Management| Fast Track

Brand Equity of the Original Product (Fastrack Wrist Watches)

Brand Elements • Name: Fastrack • Highlights contemporary, modern, fast moving and youthfulness

Spokespeople • No celebrity endorsement for the initial brand. However John Abraham was made the brand ambassador after launch of eyegear

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Slogan: “Cool watches from Titan” • An attempt to build on the strong brand name of Titan targeting the youth

Product Policy & Brand Management| Fast Track

Brand Equity of the Original Product (Fastrack Wrist Watches) Brand Positioning

Moderate Brand loyalty

Social Approval Fun Excitement

Brand Superiority Brand Credibility Brand Consideration

Age group – Youth –>15-25 College wear, Gifting, Parties, Regular use Personality - Modern, Values fashionable and trendy

Good Quality Good Style and Design Initially priced Higher

High Awareness – Good Depth and Breadth of Awareness

Brand Performance Saw surge of growth at launch and in first 2 years. Grew from 15 Cr to 23 Cr revenues p.a. Growth stagnated post 2002 at 20-24 Cr p.a.

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Product Policy & Brand Management| Fast Track

Identifying Opportunity for Brand Extension  In 2004, Fastrack ventured into Sunglasses category as an extension to watches  Identified Cellphones, deodorants, sports shoes, sunglasses and handbags were most popular accessories for youngsters  Decided on eye wear as Fastrack was addressing the same consumer for both watches and sunglasses because both products are about style and not function  The eyewear market in India at the time was skewed – premium segment had players like Rayban, and low end segment was unbranded  Fastrack decided to fill it, launching its branded sunglasses at a middle price level: Rs 695- 1,895 a pair  Brand extension has also helped the cause of the mother brand, helping Fastrack gain more visibility and creating more distribution options  The extension towards accessories like belts, bags and wristband was induced by same motivation Page  6

Product Policy & Brand Management| Fast Track

Brand Extension Timeline

1998

2004

Fastrack as parent brand Launches category extension into eye wear Positioned as a brand for ‘youth gear’

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Further Line Extensions such as “Neon wear”, “Army collection” to launch new designs across all product lines

Using Line Extensions such as “Masala wear”, “disco wear” to launch new designs across all product lines

Repositioned as brand for the youth – “cool watched from Titan” Portrayed as a sub-brand of Titan

2005

2008

2009

2010

Further Category extension into bags, wrist bands and belts under parent brand name – Fastrack Positioned as youth accessory brand - Retail outlets to support brand extension

Product Policy & Brand Management| Fast Track

2011

Brand – Product Matrix

Page  8

Product 1

Product 2

Product 3

Product 4

Product 5

Watches

Sunglasses

Belts

Bags

Wrist bands

Neon disco Range Army Collection

Bikers Collection Denim

Product Policy & Brand Management| Fast Track

Line Extensions: To introduce different designs and meet requirements of different sub-segments within the broad market segment for youth

Brand Portfolio Single Parent brand- To target a single market segment for the youth

Category Extensions Different categories for same market segment Broader positioning of parent brand as a “youth accessory brand”

Brand Creation and building

Positioning

Single category

Watches and Eye Gear Category

Multi-category: Youth Accessories

“Cool watches from Titan” Focus on functionality, affordability, design

“How many do you have?” Portrayed as a fun, quirky brand for youth

“Move On” Portrayed as a fun, quirky brand for youth

TG

SEC A,B College- going youth

Rationale

Direct positioning for the youth – college going, SEC A,B

Breaking the myth of ownership of a single watch/ eye wear

Addressing identified youth psychology of experimentation

Communication (Promotions)

Advertising focusing on functional benefits and design aspects

Different campaigns to promote several line extensions such as Biker Collection, Army Collection, etc Umbrella campaign to highlight the positioning, attractive pricing

Brand ambassadors – Genelia D’Souza and Virat Kohli as college students in various situations Quirky advertising

Place

Titan Outlets

Packaging Price

Colorful, unique packaging attractive to the youth Mid range pricing

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Fastrack retail stores

Different product lines catering to different price segments: Rs. 500- 1000: Denim Rs. 1000-2000: Army Product Policy & Brand Management| Fast Track

Performance of Fastrack post Brand extension

Financial performance

Before 2004:

Category extension into Eye Gear:

Stagnated revenues around 20 Cr p.a.

Revenue jumped to 75 Cr p.a. CAGR of 50%

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Category Extension into bags, Belts, wallets, etc: Revenues growing at greater than 50% Expected to be 500Cr Business by 2012

Product Policy & Brand Management| Fast Track

Brand Equity post Brand Extension

Perceived to be a “brand for me” Medium brand loyalty Feelings: High consideration for purchase Judgment: High credibility Rightly priced products Imagery: Brand association with fashionable, youthful, spontaneous, fun Performance: Perceived to be a high on style, average on sturdiness High aided recall as a Watch, Eye wear and Bag brand for youth Low recall as a belt, wallet brand

Brand Performance Perceived Fit: Value Proposition – Cool watches from Titan  Cool youth Accessories from Fastrack Technical Skill – Design and styling expertise for the particular target market Edge – Unique in the youth segment, no competition; bundling of similar products to create umbrella sub-brands and Product Policy & Brand Management| Fast Track Page positioning 11 campaigns

Q&A

Page  12

Product Policy & Brand Management| Fast Track