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
Fastrack The brand
Identifying Opportunity for Brand Extension
Brand Product Matrix
Brand Equity post Brand Extension
Brand Equity of the Original Product
Brand Extension Timeline
Brand Creation and building
Page 2
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
Slogan: Cool watches from Titan An attempt to build on the strong brand name of Titan targeting the youth
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Product Policy & Brand Management| Fast Track
Brand Equity of the Original Product (Fastrack Wrist Watches)
Brand Positioning
Moderate Brand loyalty
Brand Superiority Brand Credibility Brand Consideration
Social Approval Fun Excitement 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
Repositioned as brand for the youth cool watched from Titan Portrayed as a sub-brand of Titan
Using Line Extensions such as Masala wear, disco wear to launch new designs across all product lines
Further Line Extensions such as Neon wear, Army collection to launch new designs across all product lines
1998
2004
2005
2008
2009
2010
2011
Fastrack as parent brand Launches category extension into eye wear Positioned as a brand for youth gear
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
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Product Policy & Brand Management| Fast Track
Brand Product Matrix
Category Extensions Different categories for same market segment Broader positioning of parent brand as a youth accessory brand
Product 1 Brand Portfolio Single Parent brand- To target a single market segment for the youth Watches
Product 2 Sunglasses
Product 3 Belts
Product 4 Bags
Product 5 Wrist bands
Line Extensions: To introduce different designs and meet requirements of different sub-segments within the broad market segment for youth
Neon disco Range Army Collection
Bikers Collection
Denim
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Product Policy & Brand Management| Fast Track
Brand Creation and building
Single category Positioning Cool watches from Titan Focus on functionality, affordability, design Watches and Eye Gear Category How many do you have? Portrayed as a fun, quirky brand for youth Multi-category: Youth Accessories Move On Portrayed as a fun, quirky brand for youth
TG
Rationale Direct positioning for the youth college going, SEC A,B Advertising focusing on functional benefits and design aspects
SEC A,B College- going youth
Breaking the myth of ownership of a single watch/ eye wear Different campaigns to promote several line extensions such as Biker Collection, Army Collection, etc Umbrella campaign to highlight the positioning, attractive pricing Addressing identified youth psychology of experimentation Brand ambassadors Genelia DSouza and Virat Kohli as college students in various situations Quirky advertising
Communication (Promotions)
Place Packaging Price
Titan Outlets
Fastrack retail stores Colorful, unique packaging attractive to the youth
Mid range pricing
Different product lines catering to different price segments: Rs. 500- 1000: Denim Rs. 1000-2000: Army Product Policy & Brand Management| Fast Track
Page 9
Performance of Fastrack post Brand extension
Financial performance
Before 2004: Stagnated revenues around 20 Cr p.a.
Category extension into Eye Gear: Revenue jumped to 75 Cr p.a. CAGR of 50%
Category Extension into bags, Belts, wallets, etc: Revenues growing at greater than 50% Expected to be 500Cr Business by 2012
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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 Uniquepositioning in the youth segment, no competition; bundling of similar products to create umbrella sub-brands and Product Policy & Brand Management| Fast Track Page 11 campaigns
Q&A
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Product Policy & Brand Management| Fast Track
