Company History:

Timex Corporation has manufactured the largest-selling watch brand in the

United States since the 1960s. Renowned for its sturdy but inexpensive
timepieces, Timex distributes its watches through 100,000 outlets in the
United States, as well as throughout the world.

INTRODUCTION – WATCH MARKET:

The Great Indian Watch Market:
Wrist Watches form an integral part of the personality of individuals in
the present era. Earlier seen as a luxury item, they are now witnessing a
fundamental change in perception, and are now gaining respect as an
essential utility item. For the watch industry, time seems in its favour what
with the liberalization of the Indian market coupled with the rising
purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector

organizations like Hindustan Machine Tools Ltd. (HMT) and Allwyn (also
famous for its refrigerators once upon a time!), and has now left the pioneers
far behind or nowhere in market by private sector enterprises like Titan,
Sonata, Ajanta and Timex along with foreign entities jostling for display
space in the smallest of shops selling these products.

Before the establishment of HMT as the dominant player in the Indian

markets initially, the country was solely dependent on imports to meet the
internal demand. However, establishment of HMT as the leading player in
the wrist watch segment in the 1960’s, changed the scenario.

In post liberalization India, the market stood to witness intensive

competition between foreign and Indian manufacturers like Timex, Titan,
Movado, Longines, Rado, Rolex, Fréderique Constant, Mont Blanc, Swatch,
and many others. Many watch makers have made significant inroads in the
industry and others are in the process of establishing themselves, currently.
 Besides this, buyers are extremely choosy about the brand and type of
wrist watches they wear. Being extremely brand conscious, their tastes have
evolved over the years and have gone beyond the realms of durability to
choose in terms of aesthetics and elegance. Thus it is a buyers market with
multitude of designs that have entered and flooded the market place.

The size of the watch market currently is estimated to be around 40 to 45

million pieces annually. The organized sector alone contributes up to 30
percent of this figure, and the rest of the demand is being met by the
unorganized grey sector. This data is significant indeed in view of the socio
economic distribution of the Indian populace. More than 58 percent of the
population is under twenty five and more than 80 percent of the population
is below 45 years of age.

In dollar terms, the estimated annual market size is around USD 195
million, despite the fact that the penetration of watches is the lowest,
compared globally. Looking into this fact and the long standing Indian
tradition of comparing watches with jewellery and other traditional items,
many watch companies are interested in setting up base in India. The
average growth in the size of the market is slated to be around 10 -15 percent
per year.

A casual study of the watch market reveals that it is segmented on basis

of multiple proportions such as price, benefits and types of watches. The
price of the watches is a major motive in the minds of the customer.
Accordingly, three segments can be identified here, namely low priced,
medium priced, and high priced watches.

The lower priced segment consists of watches priced less than INR 500;
the medium price range consists of watches in the INR 500-1500 range and
the high priced watches come in the INR 1500 upwards range. There are
other higher categories as well such as the premium and luxury range, but
they appeal to only a small category of the watch market in India.

According to a recent study, more than 90 percent of the watches were

from the lower price ranges with international costs being less than 20
Euros. Moreover, around 20 to 25 watches are being sold for every 1000
citizens. Thus there is enormous potential for growth of the industry in this
untapped segment. Some customers look out for features like fashion appeal,
technology, sophistication and status. Others go for durability, economy and
precision.

Many customers prefer mechanical and automatic watches, while others

prefer quartz watches. Newer segments are also on rise such as ladies
watches, children’s watches and gent’s watches. Customers usually base
their preferences and buying decisions on a variety of factors like price,
durability, utility, aesthetic appeal and brand name. A combination of all
these points ultimately forms the customer’s buying decision that translates
into the purchase of a watch.

The retail sector has just begun to boom in India. Since the early 1990’s,
Indian customers are relying more on departmental stores and shopping
malls to purchase their wants and needs. This has come as a boon for watch
manufacturers and dealers, who are now looking forward to utilise these
new outlets to reach out to the Indian masses. Watch manufacturers are
looking at a suitable mix to market their products ranging from exclusive
retail outlets to display sections in malls and large departmental stores.

In the end, though India is still considered to be a difficult market to

penetrate, due to reasons like price sensitiveness and its largely unorganized
sector. However, with the right planning and the right partners and
experienced collaborators, it is expected that both international and
domestic watch manufacturers will do well in the Indian markets.
MISSION:
“Our mission is full of promise and commitment to the society. By
maintaining transparency, opening up exciting opportunities where we have
a competitive edge for developing our business in the future and our new
logo will help us confidently identify ourselves in every aspect of our
business. We also intend to provide the best quality product at the most
competitive price. Followed by an unmatched client service.”

VISION:
• To create a Timex family of distributors, dealers and employees and to be
the foremost and efficient conglomerate with professional & ethical
approach.

• To be a trendsetter by providing innovative and customized solutions.

• To reach the pinnacle of success by riding the customer’s confidence and

well-wishes.
COMPANY PROFILE:
TIMEX GROUP INDIA LIMITED
Timex Group designs, manufactures and markets innovative timepieces
and jewelry globally. Timex, founded in 1854, has expanded to become
Timex Group, a privately-held company, with several operating units and
over 5,000 employees worldwide.
One of the largest watch makers in the world, Timex Group companies
include the Timex Business Unit (Timex, Timex Ironman, Opex, TX, Nautica,
Marc Ecko); Timex Group Luxury Watches (Valentino, Salvatore
Ferragamo); Sequel (Guess, Gc); Vertime (Versace, Versus); and Vincent
Bérard.

Timex Group built its reputation as the pioneer in timekeeping by

harnessing the power and possibility of time. From the first clock and
wristwatch we produced through data integration - from classic, time-
honored designs through exclusive, luxury collector's pieces - Timex Group
companies continue to deliver unparalleled Quality to highly diverse and
global customers.

Milan to Hong Kong, design sensibility and creativity inspire multiple

lifestyle brands. From the hallmark everyday watches on which we built our
reputation, to exclusive, high-end offerings, we are equipped to meet the
needs of our brand partners.

Timex Group India has one of the most powerful portfolios of brands in
the watch industry. With technological innovation and cutting-edge design,
we recognize the tremendous opportunity to leverage the reach and appeal
of each brand’s individual identity, personality and customer base.

With our global organization and breadth of expertise, we bring our

partners from concept through design, manufacturing to distribution, to
meet and exceed the brands’ Criteria for success.
 Our global resources give Timex Group India a true advantage in a highly
competitive marketplace. By thinking and acting both locally and globally,
we are constantly challenging ourselves to look at the future.

Founded in 1854 as the clock-making subsidiary of Waterbury, CT

based brass manufacturer Benedict & Burnham.
Waterbury Clock Company was legally incorporated in 1857 as an
independent business.
 One of the world’s top watch companies
 Over 5,000 employees worldwide
 Manufacturing and distribution in 20 countries
 Watches sold in more than 100 countries

Timex Group USA, Inc. (formerly known as Timex Corporation), a

subsidiary of Timex Group B.V., is headquartered in Middlebury,
Connecticut. The company is the current day successor to the Waterbury
Clock Company, founded in 1854 in nearby Waterbury, Connecticut.

Timex Corporation manufactures watches. It offers wristwatches and

clocks for fashion, outdoors, and sports and fitness purposes. The company's
products include wristwatches for men, women, and kids; audio; alarm
clocks; eyewear; thermostats; timers and night lights; weather instruments;
thermometers; straps; and pedometers. It offers its products through stores.

The company has operations in Middlebury, Connecticut; Little Rock,

Arkansas; Manaus, Brazil; Besancon, France; Pforzheim, Germany; Cebu, the
Philippines; People's Republic of China; Jerusalem, Israel; and Delhi, India.

Timex Corporation was founded in 1857 as Waterbury Clock Company

and changed its name to United States Time Corporation in 1944. Later, the
name was changed to Timex Corporation in 1969. Timex Corporation is a
subsidiary of Timex Group B.V.

Branching out from its original "takes a licking" designs, Timex is

strapping on fresh faces so it can tap new markets worldwide. The nation's
largest watch manufacturer has expanded its lines from simple, low-cost
watches to include high-tech tickers capable of paging or downloading
computer data.
 Its sports watches have gone upscale and gadgety with its Expedition and
Ironman lines. The company also makes and markets thermostats,
pedometers, and weather instruments. Through a licensing agreement,
Timex makes watches for Guess? and Versace, among others. Founded in
1854, Timex is owned by the family of Chairman Annette Olsen, whose
grandfather bought the company in 1942.
PRODUCT PROFILE:
TIMEX:
Over half a century ago, Timex revolutionized watch making by using
cutting-edge technology in products in outdoor, sports and style categories.
Today, Timex is a household name synonymous with design, durability and
performance and it continues to embrace its reason for being: undaunted
innovation.

ECKO:
Throughout its history, the Ecko watch brand has evolved with a
renowned heritage in unlimited innovation and pioneering fashion. It is the
arbiter of trend-defining, dynamic brands and products that continually
excite and inspire their customer.

NAUTICA:
Nautica watches for men and women combine distinctive styling, bold
colors and unique design. Inspired by sailing and the sea, the Nautica
watches’ functionality reflects an energetic lifestyle and fuses the best of
classic American style with the latest technical innovation.

OPEX:
Opex is a young, audacious brand that embodies contemporary French
sensibility. Designed in Paris for women and by women, Opex timepieces are
the ultimate expression of trendy, stylish femininity. Inspired by the rhythm
of the prêt-à-porter collections, Opex reinvents itself each season.

TX:
Engineered in Germany, the TX movement platform was developed over
five years with zero compromises. Using the finest materials – premium
sapphire crystals, sculpted dials and hands, the finest leather, and an etched
case back – every TX timepiece incorporates four independent motors, each
driving a specific function.
SALVATORE FERRAGAMO:
The unique Ferragamo collections are a brilliant tribute to the Italian
tradition of design and craftsmanship. From the automatic styles with
sapphire crystal glass to the GMT chronograph and the Automatic precious
Tourbillon movement, this collection evokes the iconic stature of Salvatore
Ferragamo’s groundbreaking designs.

VERSACE:
The combination of Swiss technology with distinctive Italian style,
Versace timepieces are the embodiment of international glamour –
sophisticated, elegant and refined. Versace’s watch collections are designed
in accordance with the Maison’s intrinsic style and characterized by the
iconic Versace logo.

VALENTINO:
An icon of Italian haute couture, designer Valentino Maison’s design
aesthetic is brought into modernity with the creation of timepieces that
express his values: exclusivity, elegance, flawless craftsmanship, quality and
beauty. Based on the culture of couture, the Valentino watch collection
encapsulates the concept of time in a tangible way.

VERSUS:
Versus watches are urban and youthful, dynamic and confident. The 2009
versus collection of timepieces emphasizes the use of bold, edgy design. It
embodies the novel combination of fine materials and the insatiable
attention to impressive detailing.
INDUSTRIAL PROFILE:
Timex Group India Limited engages in the manufacture and trading of
watches in India and internationally. It offers various collections of watches
in fashion, sports, and outdoor lines for men and women.

The company also manufactures tools, moulds, and plastic components

for other parties. In addition, it provides after sales service to its customers.
The company was incorporated in 1988 and is based in Noida, India. Timex
Group India Limited is a subsidiary of Timex Group Luxury Watches B.V.

Timex watches were first introduced in the 1950's, as the company brand
evolved from the Waterbury Clock company, which produced the first
affordable timepieces for Americans back in the 1850's.

This company developed into the Waterbury Watch Company, which

specialized in affordable mechanical watches. Waterbury became famous in
the 1930's with their Mickey Mouse watches and clocks that today are worth
far more than the £1.50 they cost. When the Great Depression hit America in
the 1940's, this company was bought out by the U.S. Time Company.

Production during World War II turned from timepieces to artillery with

mechanical timing, and anti-aircraft fuses. The first Timex wristwatches had
impeccable timing and reliability, and were introduced in 1950. Record
breaking sales were generated by the excellence of the watches and by
excellent advertising for Timex in print and on television. Memorable ads
include those featuring John Cameron Swayze with various live on television
torture tests, such as watches taped to outboard motor propellers, or
watches taking giant leaps the Grand Coulee Dam. The most famous ad line
for Timex is "takes a licking and keep on ticking®" which was a line still
recognized today. By the end of the decade, Timex comprised one of every
three purchased in the United States.

Timex remained a household word, and watch and clock leader for the
next three decades, selling over 500 million mechanical watches. They
adjusted to new Oriental competition in the 1980's when the renamed Timex
Corporation introduced new digital watches with their "Ironman
Triathlon®" line for serious athletes. It soon became the country's best
selling watch. Over the next two decades, Timex continued their long history
of excellence through innovation. They introduced electroluminescent
watch faces. Three quarters of today's Timex feature their Indiglo night
light®. Other digital Timex watches were brought to market in the mid-
1990, including Data Link®, which is a mini data bank for scheduling
information and phone numbers. The company teamed up with Microsoft
and Motorola in joint ventures to produce other complex watches and
pagers.

Timex entered the 2000's strong and confident, remaining one of the top
brands known for excellence and reliability, and for being fashionable
accessories. The company has over 7500 employees on four continents.

Timex watches are featured in their company museum, Timexpo where

their history and technological developments are showcased in Waterbury,
CT. Timex watches are still popular for use as presentation gifts, incentive
awards, promotions, and gifts. There are promotional imprint Timex
watches that can also be ordered, which are nice for recognition awards, and
business gifts. Timex watches remain the leading watch in America.

New Timex models include smart watches with multi-functions, great for
sports and workouts, fun watches in clip and necklace styles, watches to help
monitor health factors, and sports statistics timepieces that include speed
and distance calculations, and e-Instruments watches that measure things
like the temperature of surf, and predict tide times. It is no secret that Timex
watches keep up with the times.

One of the largest manufacturers of high quality watches in the world. A

Timex watch is known for its dependability and manufacturing quality
 Timex - One of the largest manufacturers of high quality watches in the
world. A Timex watch is known for its dependability and manufacturing
quality. Timex watches are the pioneers of Indiglo technology, which lights
the entire dial of the watch with the push of a button.

With more than 150 years of history as a watchmaker, Timex is one

company that knows watches. As America's first watchmaker Timex carved
their name in the industry early, and their brand is still a household name
evennow.

Timex watches began way back in 1850. At that point the company was
known as Waterbury Clock. They were the first company in America to make
clocks affordable to the common people. Their shelf and mantel clocks were
reliable and quickly became very popular throughout America.

In the 1880's Waterbury began to market its first watch. The product was
known as the Yankee pocket watch. Between 1880 and 1920, working with
mass marketer Robert H. Ingersoll, Waterbury sold over 40,000,000 of their
Yankee model watch throughout the US and Europe.

Throughout the first half of the 20th century, Timex watches can boast
other big successes. They made America's first popular wristwatch in 1917.
The watch was designed and produced at the request of the US army during
WWI.

During the 1930's they found huge success with their Disney branded
Mickey Mouse watches. In the 40's the company was renamed the US Time
company and put all of their efforts into manufacturing timing devices for
artillery and anti-aircraft devices.

It wasn't until the 1950's that Timex watches began to produce the
product that would make them one of the world's largest watchmakers. In
1850 they produced one of the most popular watches ever marketed in
North America. The product was simply known as Timex. With their hugely
successful marketing campaigns ("Timex takes a licking and keeps on
ticking”), they quickly grew the Timex brand into the largest brand in the US.
By the end of the 1950's one out of every three watches sold in the US was a
Timex.

Having completely taken over the low-price watch markets, during the
1960's and 70's the company took the name Timex Watches, and began to
produce higher end products as well. Today Timex Watches produces a full
line of men's and ladies watches in many styles. From fashion watches to the
ultra-elegant, Timex likely makes a watch that fits.
REVIEW OF LITERATURE:

DISTRIBUTION CHANNEL:

Distribution of products constitutes an important element of marketing

mix of a firm. After development of the product, the entrepreneur has to
decide channels or routes through which the product will flow from the
factory to the potential customers.
He has a number of alternatives available to him. The entrepreneur may
choose to distribute the product directly to customers without using any
intermediaries. Alternatively, he may use one or more middlemen including
wholesalers, selling agents, and retailers.
Big firms have their zonal or regional authorized agents or dealers spread
over the entire country. The dealers, in turn, work with distributors and
retailers.
On the other hand, small firms cannot afford to have zonal offices, but are
devising their own ways of doing business. They also receive regular orders
for goods. Entry may be difficult for the small firms.
It has been observed that many authorized dealers of known brands also
stock other unknown or new brands of goods. They also insist on the
customer buying the lesser known brand because of higher margin of profit.
The small entrepreneur, with fewer overheads and low labor costs along
with better planning and management, may be able to earn good profits.

MEANING OF CHANNELS OF DISTRIBUTION:

 A channel of distribution or trade channel is the path or route along which
goods move from producers to ultimate consumers. It is a distribution
network through which a producer puts his products in the hands of actual
users.

A trade or marketing channel consists of the producer, consumers or

users and the various middlemen who intervene between the two.

The channel serves as a connecting link between the producer and

consumers. By bridging the gap between the point of production and the
point of consumption, a channel creates time, place and possession utilities.

A channel of distribution represents three types of flows:

 Goods flow from producer to consumers;

 Cash flow from consumers to producer as payment for goods;
and
 Marketing information flows in both directions, from producers
to consumers in the form of information on new products, new
uses of existing products, etc.

The flow of information from consumers to producers is the feedback of

the wants, suggestions, complaints, etc.

KINDS OF DISTRIBUTION CHANNELS:

Every small-scale entrepreneur requires a channel that can distribute his

product to the right customers at the right time and at the right cost.
 It consists of all the middlemen which participate in the distribution of
goods and which serve as a link between the manufacturer and the
consumer.
 Producer↔ Consumer
 Producer↔ Retailer↔ Consumer
 Producer↔ Wholesaler↔ Retailer↔ Consumer

1. Producer↔ Consumer:
This is also known as direct selling because no middlemen are involved. A
producer may sell directly through his own retail stores, for example, Bata.
This is the simplest and the shortest channel. It is fast and economical.
Small producers and producers of perishable commodities also sell
directly to the local consumers.
Big firms adopt direct selling in order to cut distribution cost and because
they have sufficient facilities to sell directly to the consumers. The producer
or the entrepreneur himself performs all the marketing activities.

2. Producer↔ Retailer↔ Consumer:

This is one stage distribution channel having one middleman, i.e., retailer.
In this channel, the producer sells to big retailers like departmental stores
and chain stores who in turn sell to customer.
This channel is very popular in the distribution of consumer durables such
as refrigerators, T V sets, washing machines, typewriters, etc.
This channel of distribution is very popular these days because of
emergence of departmental stores, super markets and other big retail stores.
The retailers purchase in large quantities from the producer and perform
certain marketing activities in order to sell the product to the ultimate
consumers.
 3. Producer↔ Wholesaler↔ Retailer↔ Consumer:
This is the traditional channel of distribution. There are two middlemen
in this channel of distribution, namely, wholesaler and retailer.
This channel is most suitable for the products with widely scattered
market. It is used in the distribution of consumer products like groceries,
drugs,
Cosmetics, etc.
It is quite suitable for small scale producers whose product line is narrow
And who require the expert services and promotional support of
wholesalers.

CHOICE OF CHANNEL OF DISTRIBUTION:

While selecting a distribution channel, the entrepreneur should

compare the costs, sales volume and profits expected from alternative
channels of distribution.
In order to select the right channel for distributing his product, a small-
scale manufacturer should keep in mind the following considerations:
1. Market Considerations: The nature of the market is a key factor
influencing the choice of channels of distribution. The following features of
the market should be considered to determine the channels:
a. Consumer or industrial market: If the product is meant for industrial
users, the channel of distribution will be a short one. This is because
industrial users buy in a large quantity and the producer can easily establish
a direct contact with them. But in case for goods meant for consumers,
retailers may have to be included in the channels of distribution.
b. Number and location of buyers: When the number of potential
customers is small or the market is geographically located in a limited area,
direct selling is easy and economical. In case of large number of customers,
use of wholesalers and retailers becomes necessary.
c. Size of order: Direct selling is convenient and economical where
customers place order in big lots as in case of industrial goods. But where
the product is sold in small quantities, middlemen are used to distribute such
products.
A manufacturer may use different channels for different types of buyers.
He may sell directly to big retail stores and may use wholesalers to sell to
small retailers.
d. Customers buying habits: The customer buying habits like the time he is
willing to spend, the desire for credit, the preference of personal attention
and one stop shopping significantly affect the choice of distribution
channels.

2. Product Considerations: The type and nature of the product

influence the number and type of middlemen to be chosen for distributing
the product. The important factors with respect to the product are as
follows:
a. Unit value: Products of low unit value and common use are generally sold
through middlemen, as they cannot bear the cost of direct selling. On the
other hand, expensive consumer goods and industrial products are sold
directly by the producers.
b. Perishability: Perishable products like vegetables, fruits and bakery
items have
relatively short channels, as they cannot withstand repeated handling.
Goods, which are subject to frequent changes in fashion and style, are
generally distributed through short channels, as the producer has to
maintain close and continuous touch with the market.
c. Bulk and weight: Heavy and bulky products are distributed directly to
minimize
handling costs. Coal, bricks, stones, etc., are some examples.
d. Standardization: Custom-made and non-standardized products usually
pass through short channels due to the need for direct contact between the
producer and the consumers. Standardized and mass-made goods can be
distributed through middlemen.
e. Technical nature: Industrial products requiring demonstration,
installation and
After sale service are often sold directly. The consumer products of technical
nature are generally sold through retailers.
f. Product line: An entrepreneur producing a wide range of products may
find it
Economical to set up its own retail outlets. On the other hand, firms with one
or two products find it profitable to distribute through wholesalers and
retailers.
g. Age of the product: A new product needs greater promotional effort and
few
middlemen may like to handle it. As the product gains acceptance in the
market, more middlemen may be employed for its distribution.
3. Middlemen Considerations: The cost and efficiency of distribution
depend largely upon the nature and type of middlemen as given in the
following factors:
a. Availability: When middlemen as desired are not available, an
entrepreneur may have to establish his own distribution network. Non-
availability of middlemen may arise when they are handling competitive
products, as they do not like to handle more brands.
b. Attitudes: Middlemen who do not like a firm’s marketing policies may
refuse to
handle its products. For instance, some wholesalers and retailers demand
sole selling rights or a guarantee against fall in prices.
c. Services: Use of those middlemen is profitable who provide financing,
storage,
promotion and after sale services.
d.Sale Potential: An entrepreneur generally prefers a dealer who offers the
greatest potential volume of sales.
e. Costs: Choice of a channel should be made after comparing the costs of
distribution through alternative channels. After deciding the number of
middlemen, an entrepreneur has to select the particular dealers through
whom he will distribute his products. While selecting a particular wholesaler
or retailer, the following factors should be taken into consideration:
a. Location of dealer’s business premises;
b. Financial position and credit standing of the dealer;
c. Knowledge and experience of the dealer;
d. Storage and showroom facilities of the dealer;
e. Ability of the dealer to secure adequate business and to cover the market;
f. Capacity of the dealer to provide after sale service;
g. General reputation of the dealer and his sales force;
h. Willingness of the dealer to handle the entrepreneur’s products;
i. Degree of co-operation and promotion service he is willing to provide;
j. Nature of other products, if any handled by the dealer.
IMPORTANCE OF DISTRIBUTION CHANNEL:
The importance of channel of distribution is as follows:

Cost Savings in Specialization - Members of the distribution channel are

specialists in what they do and can often perform tasks better and at lower
cost than companies who do not have distribution experience.
Marketers attempting to handle too many aspects of distribution may end
up exhausting company resources as they learn how to distribute.
Reduce Exchange Time - Not only are channel members able to reduce
distribution costs by being experienced at what they do, they often perform
their job more rapidly resulting in faster product delivery.
Customers Want to Conveniently Shop for Variety - Marketers have to
understand what customers want in their shopping experience.
Resellers within the channel of distribution serve two very important needs:
1) They give customers the products they want by purchasing from many
suppliers (termed accumulating and assortment services, and
2) They make it convenient to purchase by making products available in
single location.
LEARNINGS IN THE
COMPANY
.INTRODUCTION ABOUT CFA:

 CFA means Clearing and Forwarding Agency.

 CFA is an integral part of the company.
 They does the back – end process in the company.
 This process includes:
 Receiving the goods from the factories or premises.
 Warehousing the goods.
 Receiving Dispatch orders from the agents.
 Arranging Dispatch of goods.
 Maintaining Records of the receipt and Dispatch of
goods and the stock available at the warehouse.
 All the Bills are maintained and transactions are
updated.
 CFA process is carried out through style code and product code.
 For NTO’s (Non-Traditional Outlets), Bar code is necessary which
are scanned thoroughly and taken inward at the warehouse.
 Only when the bar code matches with the product code, the stock is
said to be saleable.
 CFA is the agents appointed to supply chain the stocks from
warehouse to the distributors or stockiest.
 As the manufacturer cannot do this process directly, they appoint
these CFA’s in order to make this process less complicated by
means of shifting the goods from manufacturers to the dealers
through these CFA’s.
 The number of CFA’s will be based upon tge volume of production
of the company.
  The credit limit of TIMEX is for 3 months i.e., 90 days.
 CFA’s will first bill the stocks i.e., Inventory is carried out first for
the stocks that comes in and then only he will do other processes
like shifting the stocks according to the purchase order that they
receive from the dealers.

3.2. CFA IN TIMEX:

 Timex Group India Limited has its manufacturing company at Buddy
in Himachal Pradesh.
 Manufacturing is done by two ways:
i. Trade, and
ii. Marketing.
 CFA for Timex maintains two types of invoices through which they bill
the stocks. They includes:
i. Trading Invoice, and
ii. Manufacturing Invoice.
 Trading consists of Buying or Importing from other countries.
 Manufacturing consists of Production from India.
 Timex Brand is in U.S.A.
 It also got its royalty from U.S.A.
 Invoices consists of
 Order Number
 Invoice Number
 Invoice Date
 CST Number
 GST number
 It also consists of UCP, which means Unit Cost Price.
 UCP is the price of the products.
 Invoice is based upon the margin for the dealers.
 It more specifically talks about the margin for both dealers and
distributors.
 For dealers the margin is 15% and for the distributors it is 6.5%.
 Through this Invoice with different margin rate for different dealers,
distributors, showrooms and NTO’s will help us to find the differences
that
 When the margin rate is HIGH, it will lead to LESSER
amount to be paid by the dealers.
 When the margin rate is LOW, it will lead to HIGH amount
to be paid by the dealers.
 It means in simple terms,
 If the Percentage of margin rate is HIGH, Total Payable
Amount will be LESS.
 It the Percentage of margin rate is LOW, Total Payable
Amount will be HIGH.
 CFA’s should have
 Storing place called Warehouse, and
 Should be financially Sound.
CFA PROCESS:
 CFA consists of the following processes.

STOCK IN

STOCK CHECK PHYSICALLY

COURIER OPERATIONS

FULLFLEDGED (DAMAGED)

MODEL WISE SEGREGATION MAINTENANCE

FIFO (FIRST IN FIRST OUT)

3.4. FORECASTING IN CFA:

 In Timex the forecasting process will be carried out before 4 months
itself.
 Forecasting is prepared based upon the Sales/Target that is to be
achieved in future.
 Forecasting is done mainly to make the stock to be available at all the
time in the CFA i.e., warehouse.
 As CFA knows how much stock they need to meet the next month
target, so this forecasting process is carried out by them.
 Through forecasting the CFA ensures that there will be always
available of stocks in the warehouse and there will be no scarcity at
any sense.
 So forecasting plays a major role in CFA.
 CFA’s forecast for 90% and the remaining 10% is done by NPD it
means “New Product Development” by the manufacturer.

FORECASTING

FORECASTING BY PERCENTAGE DONE

CFA 90%

NPD 10%

TOTAL 100%

 This forecasting when it is prepared it is sent to service qualification,

where the re – qualification report is prepared.
 Forecasting once prepared it will be sent to the manufacturer.
 DISTRIBUTORS IN
TIMEX
ROLES PLAYED BY THE DISTRIBUTORS:
 Distributors are the mediators between an Organization and Dealers.
 Distributors should be;
 Experienced Persons,
 Financial Back ground should be Strong, and
 Dealer Relationship should be Effective.
 These distributors are recruited by means of an advertisement.
 There are 8 distributors in Tamil Nadu.
 They work on margins, which are prescribed in terms of percentage
(%).
 They will get extra payouts from the targets that have been already
fixed which is yet to be achieved.
 These targets are fixed by the company in liason with the distributor.
 A Negotiation will take place while fixing the targets.
 If the product is not a fast moving product or if it is not saleable, then
the distributor will get back the product from the dealers on credit
note.
 They will first make the dealers to know or create awareness about
the product to them, so that they can sell the product to their end
user called the customers easily.
 Distributors are the first buyer from the warehouse.
 Every product gives 6.5% margin, when the product ranges from
lesser than or equal to Rs. 1495/-, and the product gives 7.5%
margin, when the product price ranges from greater than or equal to
Rs. 1500/-.
 They also get an additional payout as PI i.e., Performance Incentive.

DISTRIBUTOR RETAILER ENDCUSTOMER

 Target is fixed on monthly basis.

 Distributor will get limited credit as 90 days.
 Distributors will buy on “Cash and Carry” basis and sells at “Credit”
basis.
SCHEMES BY THE COMPANY:
 The Company provides two schemes to the distributors.

SCHEMES

DEDDD SCHEME
DEALER CONSUMER SCHEME

 The Dealer scheme is benefited to distributors.

 The Consumer scheme is benefited only to end user as the scheme is
being published in the advertisement.
 In figures normally 700 – 800 watches are saleable per month.
 In dealer scheme, distributor will fix the margins on their own
decisions based upon their collection of stocks.
 Distributor should provide “Field Sale Report” (FSR) to the company
in a prescribed manner on monthly basis.
 Company will not question the distributor on their decisions over
dealers.
BENEFITS TO THE DISTRIBUTORS:
 Margin as 6.5%.
 Schemes called “Dealer Scheme”.
 Dealer scheme can be informed to dealers based on relationship or
it may not be informed. It is up to the decisions of distributors.
 If the discount rate is more than the competitors company, then the
distributor will fix the discount rate more than the competitor from
their investment and not from the company, and the company will
never compensate those money to the distributors.
 Distributor will get registration under sales tax and not from any
other government. They will register under VAT. They will be
mentioned as watch dealing and not as brand name as TIMEX,
TITAN, etc.
 Distributor can deal with any number of company based upon his
capacity. Only if the company restricts the distributor to deal only
with the particular company then they can only deal with that
company brand not any other company or other brands.

ADVANTAGES OF DISTRIBUTORS:
 Distributor is necessary for “Cost Curtail”.
 They will reduce the work load of the company.
 They have more responsibility than the company.
  They will act as a “Buffer”.
 After sales also distributor will play as a coordinator between
customer and service centre.

DISADVANTAGES OF DISTRIBUTORS:
 They have to work on their own money, bank will not provide
any financial assistance.
 They provide blank cheque to the company in case if the
distributor done any default in payment.
 They are the risk bearer whereas, company is always in the safe
zone.
 They have to work on credit limit (90 days).
CONCLUSION:
 From the above information I came to know that the TIMEX Company
is a brand – oriented company which I find that customers prefer only
branded products with new styles and looks. The Timex Group has
created an infrastructure and a marketing network that's absolutely
enviable.

 The company produces new styles and shows creativity in the

products which absolutely leads to coverage of more customers in the
market.

 Thus only through the distribution channel this company can increase
the sales volume as the product reaches all the nook and corner of the
world through effective distributors at world wide.

 The only one suggestion which I want to give to the company is

nothing but creating awareness about the product through effective
advertisements through Medias.
BIBILIOGRAPHY:
WEBSITES VIEWED:

 http://en.wikipedia.org/wiki/Distribution_%28business%29
 http://en.wikipedia.org/wiki/Timex_Group_USA
 http://www.pmwf.com/TimexOnlineMuseum/TimexHistory.htm
 http://www.timex.com/
 http://www.linkedin.com/companies/timex
 http://www.timexindia.com/tgpel.aspx
 http://www.timexindia.com/brands.aspx
 http://www.watchshop.com/Timex-Watches.html