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Subject Name: Strategic Marketing Student Name: Ritu Girotra Enrollment Number: 6010091104133

MARKETING AND COMMUNICATION STRATEGY OF TITAN INDUSTRIES WATCH DIVISION (MKTG110_) Q.1) Identify the components of Titans communication strategy. Do you think the new campaign was successful in repositioning the brand?

A.1) Titan Watch division was started in 1987. At launch it was the third watch company in India after HMT and Allwyn. Titan brought about a paradigm shift in the Indian watch market offering quart technology with international styling at a time when the only technology prevalent was that of the bulky and reliable mechanical spring. Titan Ltd., began their operations with a complex marketing challenge; how to make Indian consumers switch over to quartz and better designed watches from the then just durable and quality electro-mechanical watches made by the competitors. (HMT). It was launched with heavy focus and expenditure on advertising. Some of the components of the communication strategy at Titan are-

Brand positioning: Being positioned at par with international watch brands which were available locally in India and could be paid for in rupees against foreign currency. It targeted behavioral modification among the watch- owners whereby they start viewing Titan quartz watches more as a fashion and lifestyle accessory than a functional timekeeping device that the watch had traditionally been. In a time when watches were considered no more than a time keeping device, Titan positioned itself as a fashion accessory and introduced the concept of Matching Watches to Clothes. This enhanced the concept of multiple ownership of watches. Playing on emotional and family bonds: An ideal gift for all occasions. Titan brought in the ritual of gifting watches and it benefitted hugely from the campaign which included a series of films depicting strong emotional bonds and moving personal moments. Typical gifting ads featured members of a family (parent, spouses, children etc.) again something which strikes a chord with the consumer. Mozarts Music was an integral part of all campaigns, which was a subtle indication of the rich culture/heritage Titan requires a mention of the sonic branding done by the brand- Mozarts 25th Symphony which is arguably Indian Advertisings most memorable track and has seen a number of innovations ranging from Indian Classical, Indian Folk, and Operatic to Rock and Funk.. In the initial ad commercials it was used as background music even as the time progressed in early 2000 with launch of various international watch brands in India and plethora of other easily available gift options consumer interest in Titan watches as an ideal gift option was diminishing. As a result of which a new ad campaign was launched, this focused on the range of Titan watches. This did not have a story just Mozarts music in the background.
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Subject Name: Strategic Marketing Student Name: Ritu Girotra Enrollment Number: 6010091104133

Celebrity endorsement: It roped in Aamir Khan as its brand ambassador to match with the brands new persona. Kurien, chief operating officer watches, Titan Industries Ltd., expressed, "There is a perfect fit between Aamir Khan and Titan - their stature, timelessness, and the love and trust they both share with the people both nationally and internationally, makes this an ideal partnership. Moreover, Aamir has a universal appeal that extends to everyone, across age groups, just as our watches do. We believe his endorsement of Titan will go a long way towards reinforcing the fact that a watch is not just a time keeping device but an accessory that helps in self-expression. Visual merchandising : The dingy, old stores were replaced by state- of-art Titan stores called The World of Titan which were elite and upmarket and had a very inviting ambience. Earlier the concept of exclusive brand stores was almost non-existent. In a pioneering effort that dramatically altered industry standards, the World of Titan was born. Located in the newer parts of a city, with a good frontage and layout, the showroom immediately stood out on the street and attracted walk-ins

The rapid pace of change and intense competitive pressure in today's market place demand that brands continuously innovate and reinvent themselves to maintain their relevance and market position. In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. Biel, for example, has defined brand positioning as "building (or rebuilding) an image for a brand". The goal of positioning and repositioning strategies relates to the management of consumers' perceptions. The unique challenge of a repositioning strategy, thus, lies in rejuvenating the brand image to make it relevant in an evolving environment, while honoring the brand equity heritage. Repositioning can be required as the market changes and new opportunities occur. Through repositioning the company can reach customers they not intended to reach in the first place. If a brand has been established at the market for some time and wish to change their image they can consider repositioning, although one of the hardest actions in marketing is to reposition a familiar brand. When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga, Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! As Magic in gold and bicolour look, the 'Regalia' range represents the essence of dress wear. Raga has been differentiated and positioned as exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fast track range). The Fast track range is seen as being contemporary, sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant and cool (the ad line says Cool watches by Titan.
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Subject Name: Strategic Marketing Student Name: Ritu Girotra Enrollment Number: 6010091104133

Titan definitely benefited from its new ad campaign which immensely contributed in repositioning the brand. The increase in sales/ revenues can be seen in Exhibit I, the net profits increased from 111.8 million to 249.5 million. The increase in profits which was double more than made up for the marketing expense. The Titan advertising campaign accomplished this success thru the followingPresenting its watches as a credible Indian alternative to Japanese and Swiss made watches, which were made available to the Indian consumers from the informal import routes. Behavioral modification among the watch- owners whereby they start viewing Titan quartz watches more as a fashion and lifestyle accessory than a functional time-keeping device that the watch had traditionally been. The final part - to make people recall Titan as the first alternative whenever any buying occasion arose Encouraged by the response on their ad campaign and increase in sales post appointing Aamir Khan as a brand ambassador Titan decided to continue with celebrity endorsement with Aamir continuing as the face of the brand, from 2004 to

Q.2) Do you think that the communicating strategy of multiple ownership was an effective antidote for stagnating sales? Was the decision to create and nurture sub brands correct? If not, suggest alternatives. A.2) In the year 2004 Titan started promoting the concept of multiple watch ownership through its various media and print advertising campaigns. Titan Industries Chief Operating Officer Industries Bijou Kurien stated in an interview- The fact that you have a very good looking product that plants the desire for a second watch. If you make products appealing to the consumer so that it becomes not just a time keeping device but a lifestyle accessory, then I think it will make a big change. Earlier watches were considered to be one-time purchase. They were also considered timekeeping pieces or utilitarian products. Titan transcended them from the realms of being utilitarian or functional units to stylish products. They also encouraged customers to buy multiple varieties. Ads Stressed on the need to have different watches for different occasions, and while doing that Titan also introduced multiple model and ranges of watches to suit all segments needs in the market. Titan for the premium segment, Fastrack focused on the youth and trendy fashion space, Sonata for the mass market, and Xylys for the premium market, Dash for children etc.

Subject Name: Strategic Marketing Student Name: Ritu Girotra Enrollment Number: 6010091104133

This strategy of creating need for multiple watches and providing products that suited all needs and situations complemented each other very well. The proof of the pudding is in eating is a phrase that truly suits this situation where the financial results of the Titan year on year endorse that there marketing strategy which included and was a proponent of multiple ownership is immensely successful. This can be easily demonstrated thru Exhibit I. Constant exploration of new consumer segments, introduction of innovative new products which would fuel consumer demand and servicing the same thru easily accessible and customer friendly retail network acted as a catalyst in this growth at Titan. Creation and growth of sub brands Through the 1990s, the company introduced several collections and sub-brands for different segments of the market. Though innovative and appealing, the marketing and communication efforts of these sub-brands were not integrated. Initially, they were advertised under the mother brand, but with the development of the market, it became necessary for TIL to develop separate communication and marketing campaigns for its sub-brands. Capturing the important market segments and the changing fashion trends, Titan Industries has brought forth five core watch brands as listed in Exhibit III: Titan: was the core brand which was catering to the middle class segment and had various sub brands under it like- DASH for young children aged between 6-14. STEEL for formal evenings for both urban men and women who were style conscious and wanted to match their attire with their accessories like watches, EDGE-slimmest commercially available watch in the world, a product of constant innovation at Titan, FLIP- a dual faced watch with dual functionality and styling and two movements as well. Sonata: was launched in 1998 to catch the attention of price and budget conscious consumer segment. In an attempt to increase its volumes Titan introduced brand Sonata which was a huge success in itself owing to its cheap prices but it fell heavily on the mother brand Titan which was perceived as a premium brand. Realizing this mistake Titan took away its brand name from Sonata which was then endorsed by Tata. Fastrack: This sub brand was targeted at attracting youth and the uber mobile population with its campaign positioning the range as - The Cool Watches. It was focusing on the young population between the age of 11-20 which contributed to 42% of the watch sales. Raga: Introduced as an exclusive range for women , The Raga focused on different roles that a woman plays, that of a mother, a wife, a girlfriend and how from 9 to 5, she becomes a professional after fulfilling her other roles. Nebula: Targeting the top end customer segment in the market the brand was a premium range of light weight gold watches costing anywhere between Rs8.000-70,000.
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Subject Name: Strategic Marketing Student Name: Ritu Girotra Enrollment Number: 6010091104133

The decision to launch various brands and sub brands has worked well for Titan, for eg, the youth brand Fastrack was an instant hit with the target audience and by 2005 cloaked sales of rs 1 billion thereby contributing to 12% of overall sales at TIL. The branding strategy also helped Titan showcase and draw the consumer attention to its innovations like the EDGE- the slimmest watch in the world. The various brands helped in catering the needs of all strata of the society with offering like Nebula for the rich and the famous, Sonata for the low to middle class and Titan for the middle class segment. With brands like Raga coordinates, Nebula watches became synonymous with jewellery thereby increasing demand and consumption. Owing to the success of various brands and sub brands the Titan portfolio owns over 60% of the domestic market share in the organized watch market. Titan, in the Indian context has become synonymous with watches. With each brand catering to a unique market segment Titan has indeed been able to cannibalize the market share. Coupled with passion and energy, the brand Titan has a very promising future.