Timex to focus on premium segment

Timex, the country's second largest watch brand, is focusing on selling watches only in the top end of the market. The company has already phased out all the products below Rs 1,000 price point to boost its bottom line. The company is also bullish on tapping the new media for products promotion amongst the youngsters.

Salil Sadanandan, senior vice-president, sales and marketing, Timex said, "By the year-end or early next year, the company would cut down on products below Rs 1,000 price points. Initially, the company saw a dent in volumes but it has managed to increase the average price points, for better realisations."

Analysts estimate that the company's focus on the mid and premium segment would enable it to improve average realisations, increase sales and expand margins. During the first quarter of this financial year, Timex registered a net profit of Rs 3.8 crore compared with Rs 8.9 lakh for the corresponding period last year.

Sadanandan mentioned that Timex is stimulating impulse buying by strategically locating the products in the retail space. For instance, the company does not display watches below Rs 1000 in the Time Factory. In the long run, the company expects the core business to come from price points between Rs 2,500 and Rs 5000. He said, "There is a need to have control over retail as it has emerged as the biggest marketing medium."

It plans to open about 150 Time Factory stores by the next year.

Similarly, Timex has identified new media as one of the effective communicating mediums with the customers.

Sadanandan said, "The increasing cost and fragmentation of the conventional communication tools has made new media a lucrative option. From the consumer's perspective companies have to adopt to the emerging mediums as they are the deciding factor in the brand connect."

For instance, Timex's emphasis on the internet campaign during the E-Tide collection launch generated around 80,000 enquiries, largely from the IT and ITeS sector.

Sandanandan said following the successful experiment with E-Tide, Timex has now partnered a gaming site to promote its 'Racer Chronograph Collection', inspired by Formula One. "The gaming site has already registered 200-teams in a week," he said.

It is also exploring similar branding initiatives in the mobile gaming arena.

Going forward, Timex plans to spend about one-third of its marketing budget on the new media.

During the last financial year, Timex reported a turnover of Rs 115.8 crore. It intends to double the turnover to about Rs 240 crore by FY09.