tag heuer - marketing strategy & brand ambassadors worldwide

8/10/2019 TAG HEUER - Marketing Strategy & Brand Ambassadors Worldwide

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Dylan Coelho 11Dhrumil Jadia 12Dhruv Shah 18Bhavin Parikh 25Harsh Pandav 26

Aparna Yelve 31


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PERFORMANCE PERFECTION

PRECISION

PASSION

PRESTIGE PROGRESS

PRECISION


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INTRODUCTION

Founded in Saint-Imier in 1860 by Edouard Heuer, Heuer hasmarked the history of luxury watch making, especially in the fieldsof chronographs and ultimate precision.

Tag Heuer is an internationally renowned luxury watchmaker that

is best known for its sports watches, chronographs and luxurystatus .

Currently it is a division of the luxury goods conglomerate LouisVuitton Mot Hennessey (LVMH) which employs 60,000 people.

Christian Dior, the luxury goods group, is the main holdingcompany of LVMH, owning 42.36%


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PRODUCT RANGE

Formula One Aquaracer

LINK

Carrera

Grand CarreraMonaco


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PRODUCT DIFFERENTIATIONExtreme TEMPERATURE Resistance.

WATER- Resistance - 500m

TRACTION, VIBRATION & FRICTION Resistance.

Analysis of Materials & Metal plating.

Unidirectional turning bezel.

Screw-in crown.

Scratch-resistant sapphire crystal.

Double safety clasp.

Luminescent hands and hour-markers. 1st Swiss watch in Space


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INTERNATIONAL POSITIONING

Pure design, prestigious, powerful materials,ultimate precision-The Professional Sports Watches embody all of thebrand values and enshrine the quintessence of the

TAG Heuer spirit of sport

Attributes of a potential

Tag owner :-Rich- Opinion L eader

- Sport Enthusiast

Attributes of a Tag :

- Ruggedness-Pur e performance-Integrity

-Competi tive drive.


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INTERNATIONAL PROMOTIONS -


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THE INDIAN WRIST WATCH INDUSTRY

The market is divided into two categories

Organizedsector Unorganizedsector

Watches smuggled fromabroad

Assembled watches


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REASONS FOR ENTRY IN INDIANWATCH INDUSTRY

The growing income levels have resulted in an increase in purchasing power and lifestyles are also changingCustomer for luxury products can bedivided into four categories: Connoisseur Enthusiast of watches

Status seeker - Who is on a social climb and wants beseen/associated with a luxury brand

Young and fashionable - who are looking for somethingdifferent

Functionalist - who is the realist looking for a lasting/durable product.

In 2003 it was launched in India


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COMPETITION IN INDIA

There are no Indian brands in the segment that TAG hasentered

However, international brands that are available in Indiamay be considered as competition

Rado

Omega

Longines Jaeger LeCoultre Baume & Mercier

Technomarine

Raymond Weil

Tissot Corum Cartier


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SEGMENTING

DemographicsAge (years): under 16, 16-25, 25-45, 45 andabove. 74% above age of 40 years.

Gender: 84% Male, 16% Female

Income: under Rs.50,000, Rs.50000-5,00,000,Rs.5,00,000-15,00,000 and Rs.15,00,00+

Psychographics

Social class: working class, middle class, uppermiddle, lower upper, upper upper

Lifestyle: lovers of sports, glamour oriented,culture oriented, Outdoor oriented


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CONTINUED

BehavioralOccasion: special and regular

Benefits: quality, service, convenience, economy

Based on the price the Indian market can be dividedinto mass (Rs. 350-600), popular (Rs. 600-900),premium (Rs. 900-1500), super-premium (Rs. 1500-8000) and connoisseur (above Rs.8000) segment


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TARGETING The target Market is the Luxury Market.

The target Audience is Youth, Adventurous people,Entrepreneurs, Sports oriented, glamour oriented and seekssuperior quality and apt service.

A person who wears a Tag Heuer is a male or a female between 25+ years having an income of above Rs. 10,00,000p.a.

The person is also independent , savvy andhas an obsession for perfection, precision andpunctuality.


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DISTRIBUTION STRATEGYselective and exclusive distribution strategy

Prestige and performance are two factors that should be considered in terms of

distribution.

Only authorized TAG Heuer retailers may o ff er the TAG Heuer range of Watches &Chronographs.

This ensures that TAG Heuer controls how and where the watches are sold. It also givesthe customer an assurance of quality and after-sales service and ties in with its positioningas a luxury brand in a niche market.

At present the TAG Heuer has six boutiques across the country, with two each in Delhi,Mumbai, and Bangalore.

The groups brands are also sold through more than 80 multibrand retailers across thecountry.

LVMH currently stands in third in the Indian market, behind the Swatch and Rolex brands.

Opening two new boutiques in Chennai next month.


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PRICINGThe pricing strategy is based upon using prestige pricing.

Price Range

Start at Rs.40,000 and go up to Rs.14,00,000. They also make watches thatcost Rs.25 million (customized)

Formula One 55,000 to 4,00,000

Aquaracer 61,000 to 3,50,000

Carrera - 82,000 to 8,00,000Monaco 1,00,000 to 5,00,000

LINK - 40,000 to 10,00,000

Grand Carrera 1,55,000 to 14,00,000


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The advertising and promotions is being handled by Lowe

Lintas, Mumbai

There was a press conference held by LVMH groupannouncing the launch of Tag Heuer in India with Mr. JeanChristophe Babin, President and CEO of Tag Heueraddressing the media personnel

Tag Heuer also sponsors various golf and polotournaments.

Tag Heuers global celebrations of completing 150 years havecome to India in a different style as it marks the beginning ofbrands association with the first ever Formula One event inthe country investing an additional 30pc of monies in its

overall marketing.

MEDIA PLANNING


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Its technical specifications promise precision and excellence, reflecting theachievements of its Brand Ambassadors.


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Benefits of Ambassadors


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I NDI AN BRAND AM BASSADORS


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REASON FOR SELECTING SUSHMITA SEN & PRIYANKA CHOPRA AS A BRAND AMBASSADOR

Women go in for more luxuriousand prestigious goods.

40 % of total sales of Tag heuer iscontributed by women.


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Strength Established brand around the world, high international brand awareness. Strong positioning as the Pioneer & Prestige. High brand recall. High brand loyalty and brand equity.

Weakness Heavy brand clutter in the sports and entertainment areas. It mainly targets the upper segment of the Market. Ie.. Hollywood, Bollywood, Renowned sports

persons etc. Competition from luxury brands means limited market share growth. They never have any offers or discounts, which is very much essential to survive in the Indianmarket.

Opportunity High growth in the luxury watches segment in emerging economies. High-End watches are the first luxury pieces that a consumer buys giving a window ofopportunity for the brand to establish itself as the first luxury piece aspired by a consumer.

Threats Indian consumers display the double aspect of a strong luxury culture and a strong sensitivity to

prices.

Low switching costs for the wealthy. Threat from cheap and fake imitations.

S.W.O.T Analysis


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A golf kit free with every purchase of a tag heuer watch from theKirium series. This promotion will be valid for a limited period oftime.

A free make up kit from Christian Dior on the purchase of any

watch from the Alter Ego series. This promotion again will bevalid for a limited period of time.

TAG HEUER & McLAREN: A BIGGER & STRONGERPARTNERSHIP .

TAG-HEUER spends 25pc of its total sales income foradvertising campaign which uses all media to market theproduct-hoardings, press advertisements, television and lm

commercials as well as point-of-sale material.

SALES PROMOTIONS


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There is also a 0% finance scheme .

TAG Heuer is a major sponsor of international sporting events andhas tie-ups with other brands (Mercedes and Porsche).

The brand has penetrated well in the Indian Market and has carveda niche for itself as the watch sells by its name. The C2C model hasbeen a major contributor in promoting its sales by word of mouth.

CONTINUED


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Line extensions (Lifestyle products )

Expansion plans

Expand its distribution network into smaller cities . by drawing up astrategy to enter smaller cities as well. The watches are currentlyavailable only in major cities such as Delhi, Mumbai, Chandigarh,Kolkata . There is awareness about the brand in India. With theexpansion in place, customers would not require to travel to biggercities to purchase the watch.

They currently are present in 26 cities and have 75 points of salesand intend to reach up to 35 cities by the end of this year.

Furthermore, they plan to raise that to 115 in the next two yearstime.

FUTURE PLANS


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Competitors can copy your work but they cannot

copy your passion to perform the best !!!

tag heuer - marketing strategy & brand ambassadors worldwide

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