Project Report On

MARKETING STRATEGY OF TITAN WATCHES

Under The Guidance Of

Submitted By:

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CERTIFICATE

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DECLARATION

Signature

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ACKNOWLEDGEMENT

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 INDEX

S.NO. CONTENT PAGE NO.

1 Introduction 8

2 Research Methodology 15

3 Industry Overview 17

4 Titan Watches : Brand Positioning Strategies 22

5 Titan Watches : Brand Repositioning Strategies 24

6 Company Profile 67

7 Data Collection & Survey Analysis 71

8 Data Interpretation 87

9 Conclusion 92

10 Suggestions & Recommendation 93

Questionnaire 94

Bibliography 97

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 EXECUTIVE SUMMARY

Today, a wristwatch is considered as much of a status symbol as a device to tell time. In an

age when cell phones and digital pagers display tiny quartz clocks, the mechanical wristwatch
has slowly become less of an object of function and more a piece of modern culture. The
Indian watch industry began in the year 1961 with the commissioning of the watch division
of HMT. The first watch model manufactured by HMT was the Janata model in the year
1962. HMT was the leader in the watch market till the Tata‟s formed Titan Watches in
association with Tamil Nadu Industrial Development Corporation in the year 1987. Titan was
the first company to launch quartz watches in India. The Indian watch market is today of 40
million units, out of which 60% is in the unorganized sector in which the maximum number
of watches are sold are below Rs.300. Quartz watches form two third of the organized sector
and the rest is split between mechanical and digital watches. Even in the organized sector,
three fourth of the sales by volume comes from watches that are priced below Rs.1000.

Watch is one of the consumer durables whose replacement rate is very high. The
replacement rate of watch is 33.8 %( Source: India market demographics report, 1998). This
is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is
applicable after 6 years (Source: India market demographics report, 1998). So, due to high
scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches
it is causing a very high replacement demand for watches. This along with the low
penetration level represents the untapped market potential for watches in India.

After liberalization of Indian economy in 1992 many international players have entered the
Indian Watch market posing as competitive threat to the Indian companies.

Lately Titan has tried to reposition its Brand to capture more segments of the watch
market retaining the already served market segment. The strategy has been studied in deep
during the project. Many brands and companies are constantly reinvigorating their businesses

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and positioning them for growth. There is a constant need to innovate, reinvigorate, update,
recalibrate, or just simply fend off the competition in an effort to better explain "why buy
me."

Brand positioning creates a specific place in the market for the brand and product
offerings. It reaches a certain type of consumers and delivers benefits that meet the needs of
several key target groups and user.

The actual approach of a company or brand's positioning in the marketplace depends

on how it communicates the benefits and product attributes to consumers and users. As a
result, the brand positioning of a company and/or product seeks to further distance itself from
competitors based on a host of items, but most notably on five key issues: Price, Quality,
Product Attributes, Distribution, and Usage Occasions.

In recent times, consumerism has undergone a sea change. Consumers today are well
informed about the products, as compared to earlier times. Hence, the marketplace has
become customer centric. Recognizing the importance of the customers in the business
structure, companies have started effecting brand repositioning exercises on a regular basis.

In the recent times, a major brand repositioning exercise has been planned by Titan
Industries Ltd. in order to provide more to its customers. The company has first gone for
change in logo and tagline. Then the communication strategy has been revamped to convey
its new position. The present study consists of reviewing the positioning strategies of Titan
watches. An analysis of repositioning strategies of Titan also forms part of the study. The
main objective of the study is to find out whether the loyal consumers of titan watches are
aware of the new positioning strategies of the company and how they perceive them.

Primary and secondary sources of data have been made use of in the study. The first
part of the project, i.e., analysis of brand repositioning strategies of Titan Company has been
completed on the basis of secondary data. For this purpose, internet, journals, books,
magazines and so on have been made use of. The second part of the project comprises of
conducting a survey with the help of questionnaire. The survey is proposed to be conducted
on a sample of 50 consumers who are loyal to Titan Company, selected through convenience
sampling technique. The questionnaire consists of appropriate mix of open ended and closed
ended questions. The data is presented using pie charts and bar diagrams. The conclusion part
of the report would provide an insight of consumer awareness regarding brand repositioning
strategies and their effectiveness in revamping the brand, Titan

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 CHAPTER 1: INTRODUCTION

1.1 THEORY & CONCEPT:

"A business has two - and only two - basic functions: marketing and innovation."
- Peter Drunker

The rapid pace of change and intense competitive pressure in today's marketplace 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. The appeal of brand repositioning is
further heightened by the rising costs and high risk associated with launching a new brand.

Brand repositioning has received little attention in the marketing literature and has
mostly been treated as a variation of brand positioning. 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. However,
positioning focuses on the creation of brand associations - consumers' perceptions of the
attributes that differentiate the brand from competitive offers – while repositioning also
implies managing existing brand associations. 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.

According to Solomon, position strategy is an essential part in the marketing efforts because
companies have to use the elements in the marketing mix to influence the customers

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understanding of the position. During the movement from something less attractive and
relevant towards a more attractive and relevant position several of strategic choices has to be
made. The ones responsible for the repositioning have to evaluate why a reposition is
necessary, and if the offer is the one who will change or just the brand name. There are several
risk factors that have to be taken into consideration when preparation for a repositioning of the
offering or the brand. During repositioning, the risk of losing the credibility and reliability is
high and the need for a thorough strategy is therefore necessary to avoid this occurrence.

Some analyst argue that to successfully reposition a establish brand name is almost
impossible because repositioning of a brand can make the most loyal customer to switch
brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand
is eroded. Whenever a reposition is in question it has to be of relevance from a customer
perspective, is this achievable? Some brands will on no account be thought on as a luxury
brand and therefore an attempt to reposition will only damage the brand image or the actual
company.

Numerous failed attempts at brand repositioning testify to the difficulty of developing

and implementing such a tactic. For example, while the soft drink brand, Mountain Dew has
remained relevant to the youth market through continuous repositioning in its thirty years of
existence, Levis' Jeans has been losing market share to newcomers such as The Gap, despite
numerous campaigns designed to reposition the brand as trendy.

The strategic importance of brand repositioning in preserving and enhancing brand

equity, coupled with the mixed results of repositioning attempts, underscores the need to
develop a better understanding of the dynamics of brand repositioning. Specifically,
questions of whether, when and how brands should be repositioned need to be addressed.

Research into brand repositioning is relevant not only to the development of brand
management theory, but also extends to corporate strategy through an examination of
corporate brands.

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 1.2 LITERATURE REVIEW:

The repositioning strategy is rolled out in three stages: introductory, elaboration and
fortification stages. This involves the introduction of a new or a repositioned brand, seeking to
underline the brand‟s value over others, and to broaden the brand proposition. It is truly tough
to change the customer‟s perceived attitude towards a brand, and therefore the risk is great that
the attempt to repositioning might be unsuccessful.

After rolling out the strategy, it is time to modify the proposition through update of the
personality and through repositioning. There are benefits and risks with both of this segments
and it is of great significance that they are truly evaluated when deciding the next step in the
process.

Figure 1: Stages in brand strategy development

Establishing the Selecting

Appropriate
Brand Proposition Marketing Mix

Modifying the Proposition Rolling Out the Strategy

-Repositioning -Introductory Stage

-Updating the Personality -Elaboration Stage

-Fortification Stage

The implication with the term” repositioning” is that a company modifies something that is
already present in the market and in the consumer‟s mind. The definition of repositioning
changes different individuals and professions.

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To view the different definitions and perceive a greater understanding about this concept,
three examples of repositioning given by individuals in different professions is stated below:

“Repositioning is a change, principally about trigging the vision, mission and value in a new
direction that is more suited for the brand in the future”.
-Brand manager consultant

“Principally, reposition concerns change the consumer‟s perception of the brand”

-PR- consultant

“Repositioning is built upon the change unique and differentiated associations with the brand
in some kind of direction, it is about having a balance between the category party and
differentiation when using reposition strategies”
-Leading brand strategist

From these definitions, it is obvious that reposition is about moving something to a

newer and hopefully to a more attractive and relevant position. The purpose of the movement
differs with regards to what the company wants to achieve. A company might want to reach
out to a larger target group, or be involved in several different positions at the market. There is
also a visible relation between price and quantity aspects. When a company perceives the
market as a demand curve, the purpose is to down stretch or up stretch in this curve. When
moving down it is often spoken of as an expansion down wards, and when moving up and
there is a need for reaching the premium segment and expand up wards.

The principle of repositioning:

When striving towards a new position in the market, it is important to understand that
consumer‟s minds are limited. People‟s minds select what to remember and it is therefore
significant to convince the consumers with great argument. The market demand changes
rapidly and therefore reposition can be necessary to meet these demands, newer and stronger
arguments have to be established to convince them to stay as loyal customers.

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 As stated in the literature, repositioning is a very complicated matter and therefore there are
no detailed theories or models. The aim with repositioning differ from person to person, and
the only connection between all the different theories is that repositioning is moving
something from somewhere towards a greater position at the market.

Corstjens and Doyle (1989) identified three types of repositioning strategies:

(1) Zero repositioning, which is not a repositioning at all since the firm maintains its initial
Strategy in the face of a changing environment;
(2) Gradual repositioning, where the firm performs incremental, continuous adjustments to its
positioning strategy to reflect the evolution of its environment; and
(3) Radical repositioning that corresponds to a discontinuous shift towards a new target
market and/or a new competitive advantage.

After examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:

1. Increasing relevance to the consumer

2. Increasing occasions for use

3. Making the brand serious

4. Falling sales

5. Bringing in new customers

6. Making the brand contemporary

7. Differentiate from other brands

8. Changed marketing conditions

It is not always that these nine categories are mutually exclusive. Often one reason leads to
the other and a brand is repositioned sometimes for a multiplicity of reasons.

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A four-phased brand repositioning approach can be followed to achieve the

Intended benefits:

Phase I. Determining the Current Status of the Brand

Phase II. What Does the Brand Stand for Today?

Phase III. Developing the Brand Positioning Platforms

Phase IV. Refining the Brand Positioning and Management Presentation

The benefits that can be derived from brand repositioning exercises can be summarized as:

 Value over others

 Updated personality

 Relevant position

 “Up to date” image

The risks associated with such strategies are:

 Loss of focus

 Neglecting original customers

 Losing credibility for the brand

 Confusing the brand

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Therefore, brand repositioning is more difficult than initially positioning a brand because one
must first help the customer “unlearn” the current brand positioning (easier said than done).
Three actions can aid in this process:

(1) Carefully crafted communication,

(2) New products, packaging, etc. that emphasize the new positioning and

(3) Associations with other brands

Co-branding, Co-marketing, Ingredient branding, Strategic alliances, etc. Those reinforce

the new brand positioning.

This exercise is so critical to an organization‟s success that the organization‟s leadership

team and its marketing/brand management leaders should develop it, preferably with the help
and facilitation of an outside brand-positioning expert.

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 CHAPTER 2: RESEARCH METHODOLOGY

2.1 Objectives:

1. To review the brand positioning strategies of different sub-brands of Titan watches.

2. To analyze the brand repositioning strategies of Titan watches.

3. To study consumer awareness and perception about the brand repositioning

Strategies of Titan watches.

4. To recommend suitable measures to be taken by the Titan Company to further

Improve its brand perception and loyalty among its customers.

This study would help titan industry to understand the gaps in its communication
strategy regarding brand repositioning exercises and the further measures to be taken for
effective marketing communications.

2.2 Limitations:

 The study is confined to Navi Mumbai area only

 There is possibility of sampling errors in the study

 The responses of the consumers may not be genuine

 The questions included in the questionnaire may not be comprehensive.

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 2.3 Sources of Data collection

The relevant data was collected from both primary sources and secondary sources.
The starting point of my information gathering has been the secondary sources such as
internet, books, and journals and so on.

First, I made a study of the brand positioning and repositioning strategies of Titan
watches through secondary sources such as internet, insurance magazines, and journals
and so on. Then I conducted a consumer awareness survey on brand repositioning
strategies undertaken by Titan watches in recent times.

2.4 Sampling Procedure:

A sample of 50 consumers who are brand loyal to Titan watches since more than a
year and in the age group of 20 – 30 years have been considered for this study. As Titan has
taken up brand repositioning strategies since July 2008, consumers who have seen the
previous and new campaign have been targeted

2.5 Primary Data Collection:

Data was collected through an interview schedule, consisting of both open ended
and closed ended questions. The schedule covered parameters like reasons for consumers‟
brand preference; recollection of earlier tagline and advertisement, brand ambassador of
Titan; awareness of new tagline and campaign featuring Aamir Khan, new designs and so on.
The data was collected through e- mails, telephone contacts and one-to-one personal
interviews.

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 CHAPTRER 3: INDUSTRY OVERVIEW

3.1 History of the Watch Market:

The Indian watch industry began in the year 1961 with the commissioning of
the watch division of HMT. The first watch model manufactured by HMT was the Janata
model in the year 1962. HMT was the leader in the watch market till the Tata‟s formed Titan
Watches in association with Tamil Nadu Industrial Development Corporation in the year
1987. They took a major strategy decision, which later changed the face of the Indian watch
market- to manufacture only quartz watches. Liberalization in 1992 and the removal of
quantitative restrictions due to WTO has opened the doors for many foreign brands in the
Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many others. The
import duties on watches are falling which makes the Indian market look attractive for the
global majors like Casio, Swatch and Citizen.

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3.2 Indian Watch industry:
Figure 2. Porter‟s five forces model
SUPPLIER POWER

No strong suppliers Lack bargaining

power Rise of China, Taiwan as low cost
suppliers.

DEGREE OF RIVALRY
BARRIERS TO
THREAT OF
ENTRY Increased number of firms
SUBSTITUTES
Cluttered Market Lack Low switching costs
No close substitutes
of Differentiation
Strategic stakes are high

BUYER POWER

Price sensitivity , Buyers‟ Preferences

1. Supplier Power:
10. HMT has its own fully integrated operation for production of its watches. Titan
has its own production facilities for which it has invested roughly 120 crore rupees over the
years, the manufacturing capacity of which is 6 million units. Also there has been a rise of
low cost producers in China & Taiwan which has provided an opportunity for watch makers
to outsource watches at low cost, just as Titan has done to outsource the components for
Dash. Due to the large supply of watch movements available, there is little supplier power in
the watch market.

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2. Buyer Power:
The Indian watch buyers are very price sensitive, especially in the lower end of the
market. There is still a huge untapped market in India with market penetration of only 20
units per thousand people while the world average is more than 100. At the same time there
are a segment of people who are willing to pay a premium for watches with good
performance and with a recognized brand name. So understanding the buyers‟ preferences is
very crucial in this industry in order to gain a substantial market share.

3. Entry Barriers:
The Indian watch market in the recent years has shown a dramatic increase in the
number of brands available in the market due to removal of quantitative restrictions. So the
new entrant has to have an offering, which can be positioned and differentiated from the other
players in the market. This could be either price or functional or emotional appeal. So the
prime barrier for entry, in the current context, for a new entrant is to build a brand image and
price competitively.

4. Threat of Substitutes:
There are no such substitutes to watch as a product. However, in terms of the
companies offering various variations for watches such as pendant watches and jewellery
watches, some sort of substitution has developed. Rich consumers prefer to purchase watches
more as a fashion accessory rather than simply for its typical use.

5. Degree of Rivalry:
There are many companies in the Indian watch market; however, the product ranges
offered by them are manifold. This makes the competition very stiff. Also at the lower end
of the market it is basically the Value for Money, which differentiates the players. The
strategic stakes for the producers are very high. Titan Ltd., the largest company in terms of
market share in the organized sector has faced losses in the quarter ended June 2001 despite
increase in the market share due to macroeconomic situation. HMT faced a similar situation
when Titan was introduced in the 1980s leading to a sharp fall in its market share.

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3.3 Present Situation Of The Indian Watch Market:

The Indian watch market is today of 40 million units, out which 60% is in the
unorganized sector in which the maximum number of watches are sold are below Rs.300.
Quartz watches form two thirds of the organized sector and the rest is split between
mechanical and digital watches. Even in the organized sector, three fourth of the sales by
volume comes from watches that are priced below Rs.1000.

Plastic as such is not acceptable to average Indian consumers, especially those from
the small towns and rural areas who regard it as cheap and flimsy. They want toughness-
which translates into a good quality metal model at a reasonable price.

Watch is one of the consumer durables whose replacement rate is very high. The
replacement rate of watch is 33.8 % (Source: India market demographics report, 1998). This
is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is
applicable after 6 years (Source: India market demographics report, 1998). So due to high
scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches
is causing a very high replacement demand for watches. These along with the low penetration
levels represent the untapped market potential for watches in India.

3.4 Major Brands In India Watch Market:

The major players in the Indian watch market include HMT, Titan and Timex. The
other players include Westar, Shivaki, Maxima, and SITCO. Foreign brands such as Cartier,
Piaget, Omega, Tiffany‟s and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and
Espirit are also making an inroad into the Indian market.

Titan has been consolidating its market share over the past decade. Timex watches, which
entered in India with collaboration with Titan, now independently has also gained substantial
market share.

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3.5 Segmentation of Indian Watch Industry:

Based on price
1. Mass (Rs.350-600)

2. Popular (Rs.600-900),

3. Premium (Rs.900-1500),

4. Super-premium (Rs.1500-8000)

5. Connoisseur segments (above Rs.8000)

Based on user category

1. Men‟s watches

2. Women‟s watches

3. Youth watches

4. Kids watches

5. Sports watches

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 CHAPTER 4:

TITAN WATCHES: BRAND POSITIONING STRATEGIES

4.1 Overall strategies:

Since its introduction, Titan has been positioned as a premium brand,

providing high quality products. With its numerous sub-brands catering to different segments,
the challenge that Titan faces is to create a strong brand image. It follows different
positioning strategies; these strategies can also be analyzed as given below:

4.2 Attribute Positioning Strategies:

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
13.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.

4.3 User Positioning Strategies:

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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4.5 Benefit Positioning Strategies:

The Fast track Digital range offers the customer a functional watch that is also
attractive. The digital watch has a “techno-geek” image, but Titan seeks to differentiate its
offering on the basis of superior style and attractiveness.

4.6 Competitor positioning Strategies:

With the entry of several foreign watchmakers into the market, Titan had to
counter the threat. Most of the entrants are catering to the upper end of the market- Omega,
Tissot, and Cartier etc. Titan already had the Tanishq brand in this segment. However, it has
tried to reposition this brand by increasing the price range to encourage more customers.

4.7 Quality & Price Positioning Strategies:

In the overseas market, especially in Europe where it is competing with Swiss and
Japanese watches, it is positioning itself as „value- for- money‟: reasonably priced (less than
Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian
market, Sonata is a perfect example of Price positioning, titan came up with this segment
when it was facing heavy competition from lower end segment.

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 CHAPTER5:
TITAN WATCHES: BRAND REPOSITIONING STRATEGIES

5.1 New Logo & Tagline – “Be More‟‟

Titan Industries decided to revamp its flagship watch brand, Titan, with the intention of
making it more youthful and relevant to the changing times. The brand, launched more than
24 years ago, has undergone a major repositioning exercise only once before – five years ago,
when Hindi film actor Aamir Khan was appointed brand ambassador. What followed later
was the „What‟s Your Style?‟ campaign, which tried to increase watch consumption per
person, by suggesting the use of different watches for different occasions.

Beyond Style
Now, Titan wants to move from style statements to personality statements. According to
Harish Bhatt, chief operating officer, watches, Titan Industries, a watch ought to denote the
wearer‟s mood and personality. “With the explosion of options in a person‟s life, our core
consumer is changing. And to keep up with them, Titan has evolved too,” he says. On the
adoption of „Be More‟, Bhatt says that that statement is supposed to denote the aspirations of
consumers to make more of their lives and be whatever they want to be. “The watch allows
for such imaginative travels,” he says.

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Titan‟s agency, Ogilvy India, has devised a campaign featuring Aamir Khan that encourages
people to find a new strand of their personality every day. It all started with a logo change a
few months ago (the same font in a red and white combination), followed by a campaign
rolled out now.

The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster, stating, „Be born
every day‟. Next, he is seen chasing the shadow of an aircraft on a beach, then, sitting beside
a truck driver, in the middle of nowhere, with a trail of chassis trucks behind him. Here, he
asks the viewers to try the adventure of getting off at an unknown station, of exploring
unknown lands.
As he crashes his vehicle while go-karting, Khan waves to the others around him,
while his voiceover explains the importance of making one‟s own mistakes. Further on, he
talks of not making your passport photos last longer than three months – you need to
constantly reinvent yourself and adopt a new look every day (cut to shots of Khan‟s varied
hairstyles and looks in his movies, shown in an ambient way through posters and T-shirts).

“Shock your reflection!” says Khan, as we see him with funny accessories framing his face.
The next vignette has him practicing meditation while slyly checking out a girl walking past
(„Explore‟). Cut to a shot of children, with Khan explaining how we aspired to be different
people as kids – “let‟s revive that aspiration today”. Wearing amour (sword and all), Khan
Reiterates, „Be Born, Every Day. Titan. Be More‟.

Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, “„Be More‟
pushes people to live many lives in one. We want to trigger people into questioning, „Why
should we be single minded and boring? Time to be multi-faceted, just like Titan!‟”

Khan fit the bill as Ogilvy borrowed from his own life and work and his need to constantly
experiment and reinvent himself. “Be it Mangal Pandey or Lagaan or Dil Chahta Hai, Aamir
always manages to look different in every role,” explains Mehra. “So we showed him doing
things that were spontaneous, such as exploring places or go-karting.” The idea, simply put,
is to live life to the fullest – with Titan being the instrument of such expressive liberation.

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5.2 The Ad Making – Aamir Khan:

The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey‟s third Titan
film, the earlier two involved Khan and his assistant, played by the late Vihang Nayak. The
first film had Khan confused about which watch to match with each outfit he‟s packing
before a trip, while the second film showed him delighting a girl in a mall with a watch. “This
third film has a much stronger script than those two,” shrugs Pandey. “It‟s about bringing a
mindset onto the screen with a better celeb-brand marriage.”
Shot entirely in Chennai, the film has been shot in a way that suggests that multiple
locations were used for the shoot, as opposed to one city. “We had fast paced shots to spread
the look of the film,” says Pandey. When asked why Chennai, he quips, “Because it was
Raining in Mumbai then!”
Several layers were added to the film. To show the aspirations of children, a young
girl was shown staring at an object and, later in the frame, you see the object is a butterfly –
the girl wants to fly.
“Kids are freer in their thinking than adults and we hope this has been portrayed,”
Pandey says. Even the last frame of the ad, which has Khan dressed as a mock warrior (with
an impromptu utensil serving as his helmet), was made to look like the man had made use of
things lying nearby in a spontaneous way.

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5.3 Titan Raga Signs Katrina Kaif As Brand Ambassador 2012:

September 20th, 2011:

Aiming to widen its appeal amongst Indian women, Titan, India‟s most preferred
watch brand, today announced their association with Bollywood‟s most beautiful and
charming Diva, Katrina Kaif. Ms. Kaif has been signed as the brand ambassador for their
exclusive women‟s watch brand, Titan Raga.

Incepted in the year 1992, Titan Raga has won the hearts of millions. Designed
exclusively for women, these exquisite and elegant timepieces perfectly capture the essence
of beauty, femininity and sensuality. The brand has grown over a period of time in sync with
the evolving tastes of the contemporary Indian woman.

Mr. Ajoy Chawla commenting on the brand said, “Driven by continuous launch of
new designs and collections, Raga has witnessed a 27% CAGR in the last 5 years and will be
Rs.400 crore brands this year! However, the potential in the women‟s segment is still huge as
watch penetration even amongst SEC A/B women is still very low. A brand ambassador will
help to make the watch a desirable accessory amongst women.”

Further talking on their association with Katrina, Mr. Chawla said, “Titan Raga
stands for beauty, femininity and sensuous self expression. While embodying these core
values, Katrina also symbolizes the changing face of the successful, graceful and
contemporary Indian woman.”

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Talking about her association with the brand Katrina Kaif said, “(Smiles) Titan needs no
introduction, this vibrant and „up-to-the-minute‟ brand has been touching our daily lives in
the most beautiful way possible. It gives me immense pleasure and satisfaction to be
associated with the most popular and only women‟s watch brand in the country. Besides
being a timekeeper that helps me keep up with my busy schedules, it also adds to my style
quotient. I feel watch designs from Titan Raga are truly exclusive and contemporary. I am
really looking forward to the exciting days ahead with the iconic brand “Raga”, which
embodies beauty, sensuality and femininity with great creativity.”

As a brand ambassador of Titan Raga, the renowned actress will play a key role in
shaping brand communication on television, print, outdoor and other media.

5.4 New Collections and Designs:

1. Sonata‟s sub-brand:
Sonata has launched the Yuva 2008 collection, a series of colourful watches. They
are available in both casual and formal styles to complement the young, new look for college
or office wear.
The collection has watches for both men and women at price s starting at Rs 645.
They are available in both gold and steel looks, with both metal and leather straps. Sonata,
the watch brand from the Tata‟s, launched the Super Fiber, targeted at the sub-Rs 500 market
in urban, semi-urban and rural India.

28
The watches have been designed primarily for youth in the 16-30 age group, and will be
available in a price range of Rs 275 to Rs 550. The tag line for this sub-brand is „Super
Strong, Super Style.‟
The company announced 360-degree marketing campaign for the new offerings. It
also unveiled its TV commercial featuring Indian ODI captain Mahendra Sing Dhoni, “in a
brand new avatar”.

2. Titan Raga – Hazel Collection

Titan Raga has launched the Hazel collection, inspired by the hues of nature. Priced
between Rs 2,195 and Rs 4,000, this range comprises five styles with versions in gold, steel
and bi-metal finish. They are available as bracelets and kadas with textured or patterned look
and mother-of-pearl dials.

3. Octane
Titan has launched the Octane collection of chronograph, multifunction and
retrograde watches for the urban man. The range is described as blending style and
technology. The collection has over 35 styles and is priced between Rs. 5,000 and Rs 7,500.

4. Nebula Celeste
It is a limited edition collection of jewellery timepieces. They are crafted in 18k white
and yellow gold. Prices range from Rs. 6 lakh to Rs. 12 lakhs.

5. Raga Crystals
Titan Industries Ltd has unveiled its new Raga Crystals collection of watches in
Kerala. The two new watches, called Venus and Fairy Dust, are available in yellow metal and
bi-metal versions. Venus is priced at Rs 4,450 and Fairy Dust at Rs 4,750.

29
6. Titan‟s Stambha
A new ladies Heritage wrist watch „Stambha‟ signifying fame, prosperity and good
luck was unveiled as part of Heritage collection. Mr.Vijesh Rajan, Regional Sales Manager
(South), launching the watch collection, said that plans are on the anvil to launch one new
collection every month, reflecting the 3000-year old art and cultural history of the country.

A sale of around 7,500 watches has been fixed as a target for this fina ncial year in the
Heritage collection, he added. The prices in the collection range between Rs 5,000 and Rs
10,000.

7. Nebula Zeus
It is a mechanical automatic watch in solid gold for men. Priced at Rs.1, 10,000, the
limited edition watch (500 pieces) harks back to an older era of luxury and romance.

The Nebula Zeus watch has been crafted using Swiss made mechanical automatic
movement with gold finish and a sapphire crystal back cover. Other features include an
instant start, a second hand stop device for accurate time setting; 42 hours reserve powers and
auto wind convenience. The watch collection was launched by singer and actor, Vasundhara
Das.

8. Raga Shimmer
It comprises of a collection of exquisitely designed studded watches that complement
both Indian-wear as well as Western-wear. Priced between Rs 2,995 and Rs 4,495, the new
collection comprises watches in gold, steel and bi-metal finishes.

9. Raga Diva
An exquisite range of watches for women in the Kerala market. Inspired by traditional
Kundan work, this collection has been rendered in a delightfully contemporary form. It is
priced between Rs 4,000 and Rs 10,000.

10. Titan Nebula – Duet Collection

Titan Nebula, the premium 18K gold watch brand from Titan, today launched the
Duet collection – three pairs of specially crafted gold watches for the wedding season.The
most premium collection for this wedding season was unveiled by popular actor Gul Panag.

30
OTHER STRATEGIES

· Titan is also trying to reach new customer segments. They are now trying to target all
adults in socio economic classes A&B.
· Titan is also looking at innovative retail strategies and planned to launch ten
innovative product collections soon.

5.5 Market share of the Competitor in Domestic Market:

Competitor in Domestic Market Market Share

HMT 19%
Maxima 13%
Rado 7%
Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides
watches for all segments, like from low-cost Sonata for first time user, Fast-track for the
trendy young, Dash for the kids, and the higher priced Regalia and Nebula to the premium
segment customer.

The Indian watch market is estimated at 25 million watches a year, where the
domestic sale is 6 million watches per annum. The rural segment is the diverse market in the
present scenario. The key success story of Titan is capturing the rural market on a large scale.
The range cost is between Rs. 495 to Rs. 1200. And the model is available exclusively in all
showrooms and is sold mainly in small-town in India.

Though, The Company faced enormous challenges from its big list of competitor, the
company still in the number one position in domestic market because of the weakness of the
competitor. The company becomes more reliable and more acceptances to the consumer
because of its marketing mix. The company has adopted the new marketing innovation to
improve the feature of the product by time to time.

31
Though the current financial environment is not in favor, but the company performing well
and saw an increasing trend in the profit chart.

The company trying hard to convert its weakness into strengths and threats into strengths and
threats into opportunities by bring revolution in the product style, model, features, pricing
policy, product quality, etc.

Companies certain initiatives and policy such as new innovative design, guarantee, the
research and development, wide dealer network, committed service team, discount and offers
make the company.

32
TO FIND OUT THE BRAND PREFERENCE FOR WATCHES

Environment Analysis:

A. The Marketing Environment:

 Competitive Forces

Major Competitor

There are lots of competitor in wrist watch segment which directly or in directly affecting the
titan watches industry. The major players‟ are-

 Domestic Level:

· HMT

· Maxima-quartz

· Rado

· Casio

 International level:

· Espirt

· Swatch

· Citizen

· Seiko

 Fashion Houses:

· Dkny

· Gucci

· Adidas

· Nike

33
Among all these competitors, Maxima-quartz and HMT are major players .The strength and
weakness of the companies varies from segment to segment

Industry‟s Role

As there have many competitor exists in this Industry, the competition is too much.
Whenever any company bring changes in its marketing mix, all the companies also
implement changes in their marketing mix to sustain in the competition. By that the structure
of whole industry is changing and affects the competitive forces in the Industry.

34
  Economic forces

Economic landscape:

Indian corporate sector is nervous because of current Inflation. This problem occurred not
only in India, but it affected all the countries due to United State financial crisis.

As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI)
that 64% of the 413 companies are running currently in worst condition from last 6 months.

Consumers view:

As we know that Inflation is in double digit figures, but the people who lives in urban area or
metro city, are having optimistic view towards economy.

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers:

Brand Name Purchasing Power(Price) Category

Rs.
Fast Track 550-1,430 Youth

Exacta 595-1,430 Lower Middle Class

(Office Wear)
Spectra 650-1,830 Common Class

Royal 960-2,830 Upper Middle Class

Raga 1,420-4,000 Upper Class

Bandhan 1,675-8,085 Couples

Regalia 1,725-7770 Upper Middle Class

Edge 4,500-5,200 Business Class

Nebula 10,000-45,000 Upper Class

35
The company‟s watch sales grew by 18.8 per cent and its income increasing from Rs255.34
crore during the second quarter of last year to Rs303.45 crore during the second quarter of
this year. On the basis of the above table and profit figure we easily understand consumer
buying power in target market.

Spending habit of consumers:

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of
Titan Industries doing well in the current fiscal. For these, watch segment sales income
increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during
the corresponding period this year. These data indicate that consumer‟s spending pattern is
increasing respective target market.

From the above information we can easily understand that consumers buying more of Titan
wristwatch. There are few reasons behind the growth in sales of Titan .They is as follow.

 Brand name

 Quality of the products

 Features ,which differentiate from others

 Attractive models

 New innovation

36
  Political forces

Political landscape:

In 2004 /05 the new Government came through election in India.

Our new Government took lots of steps to make the global relation as well as some steps to
develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve
ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get
sustain in the market.

As all the steps help the Titan industry to compete in the watch industry. The performance of
this sector for last few years are-

Relation with political officials:

As we all know that TATA group is the one of reputed companies in the world, it really helps
the country development.

Moreover, the companies always want to make good relation with the political parties,
because we know that India is a democratic country which is it- self elected by the people the
country.

 Legal and regulatory forces

As the titan industries operates their business in the global area, they have to follow lots of
regulatory norms.

The industry can be directly affected by the certain rules such as change in Taxation rate.

37
  Technological forces

Impact of Technology:

Changing in technology always play a great role in the target market. Titan decided to
manufacture only QUERTZ (Analog and digital) and not mechanical and they would start
plant to manufacture watches in wide variety in design and prices.

Titan changes the technology in that ways which help in enhance the quality and the features
to increase buyers‟ value. Titan gets advantages in the target market through innovative
technology.

As there is too much competition, if Titan not accept the changes in technology then they
can‟t sustain in the market. In premium segment, competitor will capture whole market by
improve technology. And in the mid-price segment, other companies will give a tough
competition to titan.

Technological changes:

The new marketing innovation can bring a drastically changes in the marketing activities of
the company. The new innovations which can differentiate the company from the competitor
are

 Implementation of Heart-beat checking system in wrist watch.

 Implementation of Blood pressure checking system in the wristwatch

 Some companies can come with the watches which help in knowing the mood
of the person.

38
  Socio cultural forces

Tata believes that improve the quality of the life of people and the employee is the
primary purpose of their business. It uses its resources in the best possible way. They also
takes some reasonably steps to improve the quality of life of the people of the areas in which
they operates.

Tata adopt the corporate citizenship index, tata business excellence model and tata index for
sustainable development which reflect its commitment to its corporate social responsibility
(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives

These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.

39
B. TARGET MARKET

Identification

The titan industry basically deals in three segments for its watches. They were as follow.

 High income/elite consumers

In this segment mainly the consumer who buys a wrist watch as a fashion accessory.

 Middle group:

In this segment mainly consumers are like some fashion in their watches. These consumers
would not purchase a watch without comparing various offers in the market.

Lower-income people: this segment mainly consisted of lower- income consumers who want
watch mainly as the time –keeping device and purchase on the basis of price

No. Of Media No. Of respondents

TV 46

Magazines 25

Newspapers 36

Hoardings 15

Radio 4

40
 5.6 MARKETING MIX:

· PRICE

· PRODUCT

· PROMOTION

· PLACE

1. PRICE:

As achieve our marketing our marketing objectives, we can do some change in the pricing.

The main consideration will be in changing price are followings.

A. Survival:

In case of some of the watches titan prices them according to the features .The
Exacta is a simple steel watch priced at Rs.600-1,100. As the company also deals
with Spectra, Raga through pricing policy.

B. Market share:

As we know that 70% of sales in watches come from the lower segment, therefore
by pricing Sonata at 350 onwards with guarantee. Titan prices its world watches
which compared equal to an international players like Calvin Klien where a
customer pays 4 times as value of the world watch, therefore market with low prices
to international players to gain market share.

C Market Skimming:

In Indian watch industry there is no one offering pure gold watches, watches in pair jewellery
watches. Here Titan offers there product with the Indian touch in its design, the product, the
love.

41
 2. PRODUCT:

Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.

A. Product line:

To increase the sales, the differences in the prices of the watches are justified by the
features.

B. Product pyramid:

Portfolio of Titan‟s product is of 3 distinct price-range that can be defined in general,

as Popular, Mid, and Premium. At the popular segment, the emphasis is on in volumes
but not in margins. At the premium segment, the emphasis is on profits and image but
not in volumes. Obviously, company giving more emphasis at the top of the pyramid
as profits at the top of the pyramid is very high. This pyramid guided the strategy of
Titan.

C.Product strategy:

Titan was first focused only on the premium segment of the watch market. As per the
product strategy they took, Titan moved in to the mass market for watches. To widen
base, Titan created new segments and increasingly focusing on segments individually.
In the past few years Titan has took a lot of initiatives to focused on specific
segments.

D.Product Quality:

Quality and leadership are synonymous to Titan. It seeks to achieve both through their
value for products compared to their prices.

42
 3. PROMOTION:

Promotional pricing:

A. Marketing pricing:

As by opening new shops such as the world of Titan – buy directly from the dealer
and hence the element of middleman is not there.

Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they
are able to get the 17% profit margin on sales.

It is managing to successfully convince to the customer of the perceived value of „WORLD

WATCH‟ using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the
MRP of the watches. The allowance varies from one segment to another.

a) Creative advertising: Titan introduces a contest on cartoon network in

india.com which invites children to use creativity and design watch.

The prize winning design was launched as a new watch in summer 2002 collection.

Type of advertising: Titan believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Titan
watches.

b) Promotion on occasion: Titan is one of the company which formally believes in

the policy of promotion the product based on the occasions.

43
 4. PLACE:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute its
product and set up „world of titan‟ in different region. The consumer‟s life style in India,
especially in urban area (because the turnover in urban area is 210 million, while the turnover
in rural area is 90 million) plays a significant role in the success of Titan.

A. Time Zone:

Titan Industries brings together the country‟s leading watch brands under one roof,
providing the customer with variety in brands, looks and price ranges and also
efficient after-sales service. These 1142 Time Zones located across 89 towns which
offer its customer the complete watch shopping experience.

B. Value Mart:

These outlets sell surplus stocks of Titan watches at reduced prices. By doing these it
offering fabulous value for money with the same warranty as a regular full-priced
watch enjoy. However these shops would not be placed in the main locations and not
working as a normal shops. This is to make the customer go to the shop rather than
the shop calling the customer and hence the locations are not very suitable for
shopping.

C. Sonata Stores:

A Sonata store is also an Authorized Service Centre for Sonata & Titan brands.
Sonata store meet the large scale demand for the watch and also to attract customers
in more. These shops had full stocks of the watch in demand whereas the others could
afford to maintain only limited stock.

44
 5.7 CONSUMER BUYING BEHAVIOR:

Cultural

Social

Culture Reference group Personal

Subculture Family
Age and life-cycle Psychological
Social Class Roles and statuses stage
Motivation
Occupation
Perception
Economic
Learning
circumstances
Buyer
Beliefs and
Lifestyle
attitudes
Personality and
self-concept

A. Cultural Factors

· Value, perception, and preferences

· Nationalities, religion, race, geographical regions

· Social class

B.Social Factors

· Reference Groups Social Class

· Roles & Status

C.Personal Factors

· Economics Circumstances

· Occupation

· Age & Life Cycle Stage

· Lifestyle

· Personality and self-concept

45
D.Psychological Factors

· Motivation

· Perception

· Learning

· Beliefs and attitudes

46
NEED ANALYSIS

Consumers need:

The demand and the need vary one market segment to another segment on the basis of prices
& quality.

The current need can be satisfied by the following ways in the different segment.

High class: Titan offered Aurum and Royale in gold watch range .They were
stylish watches in all gold and precious metals.

The price is between Rs.20, 000 -1, 00,000.

Middle income class: Titan offered the Exacta range in stainless steel. There
were 100 different models in the range. The prices ranges are between Rs.500-
700.

Lower-income group: Titan offered the Timex watches and later, when the
arrangement with Timex was terminated, the SONATA range.

The prices ranges were Rs.350-500.There was 200 different models in the
ranges.

Current Marketing Objectives and Performance:

Review of Marketing Objectives

Current marketing objectives of TATA are to strengthen India‟s Industrial base through the
proper utilization of resources like employee and materials. Besides, the company seeks to
reach the height of excellence atmosphere which is free from fear and threat.

Performance Analysis

Titan Industries achieved significant growth during the year ended 2007-08. Watch segment
sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed
well and new introductions in gents‟ watches, the Raga Crystal for ladies.

47
 5.8 STP ANALYSIS

The STP Process:

SEGMENTATION:
Dividing the market by grouping the customer with similar tastes and preferences into one
segment is called is called “segmentation”.

Segmentation help marketers understand the needs of different customers better and serve
them with better value propositions.

A market comprises of different consumers possessing innumerable tastes and

preferences. Depending on their marketing approach and the nature of the products marketers
can adopt different level s of segmentation. The levels of market segmentation are:

· Segment Marketing

· Individual Marketing

· Niche Marketing

· Local Marketing

48
A) SEGMENT MARKETING:

Marketers target more than one segment when it is not economically feasible to
design products and services for individual segments. The focus of segmenting the
market will be on providing enhanced service to the customer by offering customized
products that will satisfy the needs and wants of customer in that particular segment to
a large extent. Segmentation is also sometimes identifying, capturing and retaining
potential new markets.

TITAN PERSPECTIVE

Titan has segmented its business into three main categories:

Mass

Mid-premium

luxury

B) INDIVIDUAL MARKETING:

Individual Marketing is the extreme level of segmentation in which marketers focus

on individual customers.

TITAN PERSPECTIVE

Titan has not applied this for its marketing.

C) NICHE MARKETING:
A niche is more narrowly defined group, typically a small market whose needs are not
well served. Marketers usually identify niches by dividing a segment into sub
segments or defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTIVE
In a study conducted to study the customers of watch market, it is revealed that 42%
of them are youth. So, TITAN tried to target this by:
· introducing FAST TRACK
· price offering from Rs 500(affordable)
· watches with style statements

49
D) LOCAL MARKETING:
Marketing programs being tailored to the needs and wants of local customer groups.
The prominence of local marketing has also become very dominant.

TITAN PERSPECTIVE
All the products of TITAN are addressed to all the customers as a whole. Localized
products are not available. But some products which are available in UK have some
pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal
Nehru, etc. so that the customers can identify the product with those dignitaries.

50
 CRITERIA FOR SEGMENTING CONSUMER MARKET:

Markets are mostly segmented on the basis of geographic, demographic and psychographic
factors:

Geographic segmentation:

It calls for dividing the market into different geographic units such as nations, states, regions,
countries, and cities.

Demographic segmentation:

In this the market is divided into groups on the basis of variables such as age, family, size,
life cycle, gender, income, occupation, education, religion, race, generation, nationality,
social class. These variables are the most popular basis for distinguishing customer groups.
The following are some of the demographic variables used to segment the market:

· Age and life cycle stage: Consumer wants and preferences change with age.
These tastes and preferences are not constant and change with time.

TITAN PERSPECTIVE

Titan markets its products for all following age groups:

a) For the age group 12-20, brands like TIMEX, Sonata, etc.

b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc.

c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL, REGALIA,
BANDHAN, etc.

51
GENDER:

Gender segmentation has been applied to clothing hairstyling cosmetics, wristwatches,

magazines etc. There are certain brands, which are positioned exclusively for a specific sex.

TITAN PERSPECTIVE

Titan markets its product across:

Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip)

Gents (flip)

Ladies (raga)

Married couples (bandhan)

INCOME:

Marketers tend to segment product and services on the basis of income groups. Nowadays,
companies have recognized the potential of lower end income groups and have started
targeting them.

TITAN PERSPECTIVE

Titan offers its products with a price range to suit the different income groups such as:

- Below Rs 500

- Between Rs (500-1500)

- Between Rs (1500-3000)

- Between Rs (3000-5000)

- Between Rs (5000-10000)

- Above Rs 10000

52
GENERATION

Generation plays a major role in segmenting markets. Every generation is deeply influenced
by various activities. Such influences deeply impact their product purchase pattern.

TITAN PERSPECTIVE

Titan has many products to satisfy all the generations. And through constant
innovation Titan developed many products for new generations like FAST TRACK,
TECHNOLOGY, and FLIP etc

SOCIAL CLASS

Social Class segmentation is influenced by customer choices of automobiles, interior

decoration, clothing preferences etc. The tastes and preferences of the social class also
change according to time.

TITAN PERSPECTIVE

Titan has realized the demand of the society and has marketed its products for each of the
following social strata.

53
First segment:

For this segment, watch is a fashion statement. Titan has ROYALE, AURUM, and NEBULA
for this segment. These products have specialties like European leather, sapphire crystal,
scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones.

Second Segment:

For this segment also, watch is all about fashion but price does matter to them. In this range,
Titan has RAGA, TECHNOLOGY, and FASTRACK etc. These products have digital
technology & of trendy shapes. Always splash oomph on to your ward robes and smear
danger on your look.

Third segment:

For this segment, watch is just an device to show the time. They invest after a lot of thoughts.
In this category, Titan has TIMEX, SONATA, KARISHMA, etc

54
PSYCHOGRAPHIC SEGMENTATION:

Buyers are divided into different groups based on personality, values, belief, lifestyle,
motivation, etc. People within the same demographic group can exhibit very different
psychographic profiles.

LIFESTYLE:

People generally exhibit different lifestyle depending upon their income, social group
etc. People usually buy the product which suit their lifestyle

TITAN PERSPECTIVE

According to the life style of people Titan has segmented it‟s product to fit the box.
Like in the luxury section it has NEBULA, AURUM etc. In the mid-premium section
RAGA, GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has
SONATA, TIMEX and KARISHMA.

PERSONALITY:

Marketers can use personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.

TITAN PERSPECTIVE

Titan advertises its products by portraying movie stars as user of its products and it
offers a lot of option to its customers.

For example:-

In economy category, 60 products

In luxury category, 26 products

In sports & casual category, 76 products

In fashion category, 99 products

In formal category, 14 products

55
VALUES:

Values affect customer behavior in the long run. Marketers can use values and beliefs to
segment the markets.

TITAN PERSPECTIVE

Time has the same value for all irrespective of cast, creed and sex. Still, Titan
successfully segmented its products according to customer values. But it is basically related
to type of generation they are in to. So, the segmentation is also related to that.

56
BEHAVIORAL SEGMENTATION:

Organizations can divide markets on the basis of behavior that consumer shows towards the
usage of the products. Various variables for segmenting market on the basis of purchase
behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc.

OCCASIONS:

Markets can be classified on the basis of various occasions that customers encounter because
people need different products for different occasions.

TITAN PERSPECTIVE

Titan also offers occasion specific products like

Formal-

NEBULLA,

STEEL‟

RAGA,

GOLD&STEEL,

Dress wear –

REGALIA,

RAGA,

GOLD&STEEL,

ROYALE.

Fashion-

STEEL,

RAGA,

GOLD&STEEL,

FAST TRACK.

57
BENEFITS:

Market is divided on the basis of the benefits customers seek from the products. Benefit
segmentation can be used to position various brands within the same product category.

TITAN PERSPECTIVE

Titan product has benefits like:

It provides the “TITAN WORLD” SERVICE CENTRE in 174 towns.

It provides a huge product range to choose from.

Its products have good life cycle.

· Usage Rate: The usage rate of a particular product/service can be divided into heavy,
medium and light. Marketers are usually attracted to heavy users than other type of
users.

· Loyalty Status: The loyalty status of a particular market can be divided into different
groups, according to the intensity of their loyalty to these brands.

58
MARKET SEGMENTATION PROCEDURE

It is a three step procedure:

1. Service stage:
Here the researcher conducts exploratory interviews and focused groups to gain
insights into consumer motivations attitudes and behaviors.

Then the researcher prepares a questionnaire and collects data on attributes and their
importance ratings, brand awareness and brand ratings, product usage patterns,
attitudes towards product category and demographics, geographic, psychographics
and media graphics of the respondents.

2. Analysis Stage:
In this the researcher applies factor analysis to the data to remove highly correlated
variables then apply cluster analysis to create specific number of maximally different
segments.

3. Profiling stage:
Here each cluster is profiled according to its distinguishing attitudes, behavior,
demographics, psychographics, and media graphics and media patterns. Each segment
is given a name depending on its dominant characteristics. Market segmentation
should be redone periodically because they change.

59
EFFECTIVE SEGMENTATION:

For effective segmentation, segmentation variables need to exhibit certain characteristics.

These are discussed below:

· Measurable:

The variable used for the segmentation of the markets should be measurable to be
effective. For example, a variable like the purchasing power of potential customer is
measurable.

· Substantial:

When dividing the market into segments, a marketer should take enough care to see
that each segment consist of adequate number of customers worth catering to.

· Accessible:

The segment of the market that a marketer is trying to target should be accessible to
him.

The appropriate selection of the media, its coverage and other factors like the product
distribution facilities play a major role in a marketer becoming accessible to
customers.

· Differentiable:

Each segment of the market should be different from others in terms of its needs and
wants. Each segment requires different marketing strategies because it responds to
different strategies differently.

· Actionable:

A segmentation variable should help marketers develop effective marketing programs

to attract and serve potential customers effectively.

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TARGETING:
It is the second stage of the Segment “Target” Position (STP) process. After the most
attractive segments are selected, a company should not directly start targeting all these
segments. The attractiveness of the segments is also depending on other important factors. In
the main activity of defining a target market, four sub activities are given which are the bases
for deciding on which segments will actually be targeted.

The four sub activities within targeting are:

1. Defining the abilities of the company and resources needed to enter a market

2. Analyzing competitors on their resources and skills

3. Considering the company‟s abilities compared to the competitors‟

4. Deciding on the actual target markets.

After the market has been separated into its segments, the marketer will select a
segment or series of segment and „target‟ it/them. Resources and efforts will be targeted
at the:

61
A) The first is the single segment with a single product. In other word, the marketer
targets a single product offering at a single segment in a market with many segments.
For example, Titan‟s sub brand, Raga is targeting the upwardly mobile ladies in the
upper premium segment.

B) Secondly, the marketer could ignore the differences in the segments, and choose to
aim a single product at all segments i.e. the whole market. For example, Sonata and
Fast track brands of Titan are targeting mass and mid premium segment.

C) Finally, there is a multi-segment approach. Here a marketer will target a variety of

different segments with a series of differentiated products. For example, Titan itself
provides with the number of different brands/products which are targeting different
segments in the market. Following is the table which represents the various sub
brands and their targeted segments of TITAN.

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 POSITIONING

Introduction:

The importance of an image has become an emotional part of everyone. A brand name
represents the image, character and personality of a brand. A brand name should be clear,
lucid, easy to remember, distinct from the competition and should not be generic to the
category. It should become customer's Top of the mind brand (TOMB). Most successful
brand names would satisfy these criterions to quite an extent. Brand loyalty is one thing
which has made the branding more popular. As someone rightly said "Brand loyalty is not
dead, it's just more like loyalty to a girl/boyfriend than loyalty to a husband/wife".

Vast flow of names today makes a brand harder to differentiate them unless they come out
with their own uniqueness. This way, they could come to their special position in everyday
life. The image following a particular name is also determined by the role of communication
it undergoes; of which the followings are included: its manner, personality, behavior, ethics,
values, etc. The importance of brands depends on the true ambitions of the company.

The increasing spread and domination of international brands has seemed inevitable for at
least the last 30 years. All around the world we have witnessed the disappearance of local
brands and local variants.

But despite this trend, local and regional brands still remain strong. In India, for example,
protected for many years by government policy from the invasion of foreign brands,
homegrown brands dominate many sectors - Tata automobiles and Titan watches, to name
but a few. In the end people want both global and local brands - brands that make them feel
part of wider international community and brands that root them in their home culture.

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Why are brands so important?

Strong brands help a company to maintain market share in the face of a changing competitive
environment and it has been shown that a strong market share is associated with above-
average profits. Brands have become assets in their own right. In addition, they represent
low-risk opportunities for the manufacturer or service provider and they also represent
reduced risk for the consumer.

What is meant by brand positioning?

Positioning is statement that shows how you are different, better or more special than your
competition. Position is that one thing that one descriptive sentence or slogan the company is
known for that one specific idea that first comes to mind about the product. It is that one
characteristic that sets the service apart from competitors.

For

Volvo that one thing is “Safety.”

McDonalds is “A fun place for kids.”

In Jakarta, Indonesia, Bluebird is “The safest way to travel by taxi.”

Why brand positioning is important?

We need to be clear about why it is important to position a brand-and exactly what a brand is.
As consumers, we are all influenced by the effects of a powerful brand positioning-
"brainwashed," so to speak-to have preference for one versus another. But today there are so
many choices for consumers that this term has a secondary derivation-"whitewashing."

That is, the brand choices are so varied and the differentiation so minimal in terms of product
functionality that we're faced with a sea of indiscernible offerings.

This is why it is critical for a brand to be well positioned and uniquely differentiated.

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What does the result of brand positioning research show?
The market position of a brand shows where a specific brand is located. It also shows the
relationship to competitive brands. We can determine the market position of a brand on the
basis of the answers to the following four questions:

1. Why (which benefits and advantages does the new brand bring to the consumer)
2. When (determining the opportunities for which the brand is most suitable)
3. For whom (it is about the determination of the consumer of a brand or target group)
4. Against whom (determining the main competitive brands)

TITAN PERSPECTIVE

a. Titan initially pioneered the concept of "Gifting watches". The ads captured the
essence of gifting and along with the trendy music, easily caught the imagination of
the market.

b. Customers who were fed up with ugly time machines welcomed the brand and Titan
had a dream run for many years. Titan then moved away from gifting. Titan was
positioning itself as a fashion accessory rather than a time keeping device. Titan also
found its persona in Mr. Aamir khan which provided the much needed edge to the
brand. Titan was careful in keeping the brand above the celebrity. The ads were fresh
and neatly executed. The idea was to make watches that would be seen as style and
fashion accessories rather than just utilitarian devices. The company decided to use
Aamir in brand and product communication on television and in the print and outdoor
media.

Though, the vast distribution and service network of TIL had served as an effective
entry barrier in the 1990s, foreign brands were becoming increasingly popular in the
early 2000s, thanks to the paradigm shifts in the retail scenario and the growing
affluence of the Indian consumers.

65
 And TIL found that it was not safe even at the bottom of the pyramid. The grey
market with cheap Chinese imports and the unorganized sector had cornered a sizable
chunk of the low-end market. The appointment of Aamir Khan as brand ambassador
for the Titan brand was seen as an attempt to broad base the appeal of the Titan brand.

c. Titan also was pushing another strategy. Watches were perceived as a onetime buy
and consumers seldom owned multiple watches. So Titan pushed the concept of
"Matching Watches to Clothes" in the recent commercials. Since men are becoming
more serious customers of fashion accessories, this is strategy that is worth trying out.
For Titan, even if the concept fails, It has created the much needed freshness in the
brand.

d. Earlier Fast track was targeted at 20-25 year olds and positioned along the line "Cool
watches from Titan". Then the company found out that the youth in the age group of
11-20 years account for 42% of watch buying in India. Based on this insight, the
company relaunched the brand lowering the target segment to 18-30 year olds with
the baseline “How many you have?". Again the strategy aimed at promoting the
multiple watch owning concepts. Fastrack also launched a range of fashion
accessories like Sunglasses trying to be a lifestyle brand.

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 CHAPTER 6 – COMPANY PROFILE

6.1 Overview:
Titan Industries was established in 1984 as a joint venture between the Tata Group
and the Tamil Nadu Industrial Development Corporation. The company brought about a
paradigm shift in the Indian watch market, offering quartz technology with international
styling, manufactured in a state-of-the-art factory at Houser, Tamil Nadu. Leveraging its
understanding of different segments in the watch market, the company launched a second
independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled
watches at affordable prices. In addition it focused on the youth with its third brand –
Fastrack. It has also premium fashion watches by acquiring a license for global brands such
as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made
watch brand – Xylys.

In 1995, the company diversified into jewellery under the brand – Tanishq to
capitalize on a fragmented market operating with no brands in urban cities. In 2005, the
company launched its second Jewellery brand, Gold Plus, for capitalizing on the opportunity
in small towns and rural India.

The company has now diversified into fashion Eyewear by launching Fastrack Eye-
Gear sunglasses, as well as Prescription Eyewear. The Company leveraged its manufacturing
competencies and branched into Precision Engineering Products and Machine Building from
2003.

Today Titan Industries is India's leading manufacturer of watches and jewellery

employing 3,800 people. Titan and Tanishq are among the most admired brands in their
categories.

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6.2 PRODUCTS:

The company manufactures over 8 million watches per annum and has a customer
base of over 80 million. It has manufacturing and assembly operations at Hosure, Dehradun,
Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main products are:

1. Watches: Currently manufactures four main watch brands viz.

 Titan for the premium segment,

 Fast track – focused on the youth and trendy fashion space,

 Sonata for the mass market and

 Xylys for the premium market.

The Titan brand architecture comprises several sub-brands, each of which is a

leader in its segment. Notable among them are:

 Titan Edge – The world's slimmest watch which stands for the philosophy of
"less is more";

 Titan Raga – the feminine and sensuous accessory for today's woman,

 Nebula - crafted in solid gold and precious stones and several other
collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop,
WWF and the Aviator series, all of which form a part of the Titan wardrobe.
Sonata is today India's largest watch selling brand and is priced between Rs
295/- and Rs 1200/-.

 The company's first Swiss Made watch – Xylys is for the hi-end connoisseur
and new age achiever. It also markets Tommy Hilfiger watches under a
licensing arrangement and is introducing Hugo Boss. Today, the Titan
portfolio has about 65% of the domestic market share in the organized watch
market.

The company has 225 exclusive showrooms christened 'World of Titan', making it amongst
the largest chains in its category. Titan watches are sold through over 12,000 outlets in over
2,500 cities and internationally in over 30 countries, primarily in the Middle-East and Asia
Pacific

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2. Jewellery: Tanishq is India's largest and fastest growing jewellery brand with a premium
range of gold jewellery studded with diamonds or colored gems and a wide range in 22kt
pure gold. Platinum jewellery is also a part of the product range Tanishq is one of India's
largest specialty retailers and is transforming the jewellery market in India 102 boutiques
in 72 cities across the country. „Gold Plus' is the recent retail offering for the mass market
with plain gold jewellery selling through 19 stores in 19 towns. The jewellery division has its
own design studio.

3. Eye wear: Titan Eye+ is currently on a pilot mode with 5 stores in 2 cities and has
sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses,
Sunglasses, Accessories and Contact Lenses of in-house brands and other premium brands.

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6.3 PRECISION ENGINEERING
The company's Precision Engineering Division supplies precision components to the
avionics and the automotive industry. It also manufactures dashboard clocks as OEM to car
manufacturers in Europe and America. The division also provides fully integrated
Automation solutions

6.4 AWARDS
The company has been awarded the following distinctions:

· Being named the No.1 Brand in the Consumer Durables category in the "Brand
Equity" Survey of The Economic Times, a leading Indian financial daily.

· The Titan Design Team won the Young Design Entrepreneur of the Year award at the
design awards instituted by the National Institute of Design and Business World, a
leading Indian magazine. The team has won 7 accreditations also.

· Both Titan and Tanishq have been adjudged "Most Admired Brands" as well as
"Retailer of the Year" by Images Fashion Forum in consecutive years.

· Retail Asia and Media Magazine – Singapore adjudged Titan Industries as amongst
the leading Retailing Companies in India.

· Titan has won the Brand Leadership award at the India Brand Summit. The Time
Products Division of the company was awarded the JRD QV Award in 2006.

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CHAPTER 7- DATA COLLECTION AND SURVEY ANALYSIS

1. Which sub-brand of Titan watches do you possess?

Figure 1: Titan sub-brands possessed by respondents

Table No1: Titan sub-brands possessed by respondents

S.NO. Sub Brands Percentage
%
1 Fastrack 72
2 Sonata 14
3 Raga 6
4 Nebula 4
5 WWF 2
6 Edge 2

Survey Analysis: Titan sub-brand owned

This was a multiple choice question where respondents were asked to choose sub-
brands of Titan which they possess. It was found that around 72% of the consumers in the age
group of 20-30 years possess Fastrack brand, 14% Sonata, 6% Raga, 4% Nebula and only 2%
own WWF and Edge.

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2. Since how many months / years have you been using Titan watch?

Figure 2: Period of Titan watch‟s use

Table No2: Period of Titan watch‟s use

S.NO. Period Of Usage Percentage
Years %
1 2001-2004 64

2 2004-2007 24

3 2007-2010 12

Survey Analysis: Period of use

The respondents were asked to mention since how long they have been brand loyal to
Titan. This was an open ended question and hence various responses were received. The
minimum period of use was set as one year, as mentioned earlier, while the maximum period
of use was determined. For convenience, the different responses are categorized into three:
2001year – 2004years, 2004years – 2007years and 2007years – 2010years.64% of the
respondents fall into first category, i.e., they are using Titan watch in the range of one to four
years. 24% respondents are in second category and the rest 12 % are using it for more than
seven years.

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Q3.Why do you prefer Titan brand?

Figure 3: Reasons for brand preference

Table 3: Reasons for brand preference

S.NO. Reasons No. of respondents
(out of total 50)
1 Attractive designs 39

2 Reasonable Price 7

3 Brand image 22

4 Good quality 25

Survey Analysis: Reasons for brand loyalty

The respondents were asked to select the reasons from the options given for their
preference for Titan watches. For this question, multi-responses were received.

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4. Do you remember the original tagline of Titan watches? If yes, please mention.

Figure 4: Recall of Titan‟s original tagline

Table No 4: Recall of Titan‟s original tagline

S.NO. Recall of Titan‟s Tagline Percentage
%
1 YES 22

2 NO 78

Survey Analysis: Recall of Titan‟s tagline

Titan‟s tagline, before brand repositioning exercise has been undertaken, was
“What‟s your style”. This tagline was adopted during first rebranding exercise in 2004.
The respondents were asked to indicate whether they remember the tagline in
dichotomous way, i.e., as “yes” or “no”. It was found that only 22% of the respondents were
able to recall the tagline and the remaining 78% answered in negative.

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5. Have you seen the advertisement of Titan watches? In which media have you seen the
advertisement?

Figure 5: Major Advertisement media

Table No.5 Major Advertisement media

S.NO. Major Advertisement Media No. of respondents
(out of 50)
1 TV 46

2 Magazines 25

3 Newspaper 36

4 Hoardings 15

5 Radio 4

Survey Analysis: Titan‟s advertisements

Titan advertises its watches in almost all media vehicles. The advertisements can be
seen in TV, magazines, newspaper, hoardings, billboards, radio and so on.
All the 50 respondents have seen the advertisements of Titan watches in various
media. This was a multi-response question and the options given to select were restricted to
TV, magazines, newspapers, hoardings and radio.

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Figure 6: Awareness of brand ambassador

Figure 6: Awareness of brand ambassador

Table No 6: Awareness of brand ambassador

S.NO. Awareness of Brand Ambassador No. Of Respondents
(out of 50)
1 Don‟t know 4

2 Correct responses 46

Survey Analysis: Brand Ambassador of Titan

Aamir Khan is the brand ambassador of Titan since 2004. When the respondents were
asked to recollect the same, it was found that 46 of 50 sample size were able to correctly
mention the brand ambassador while the remaining 4 did not give any response implying that
they are not aware of it.

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7. Are you aware of the new tagline of Titan?

Figure 7: Awareness of new tagline

Table No 7: Awareness of new tagline

S.NO. Awareness of new Tagline Percentage
%
1 Aware 36

2 Not Aware 64

Survey Analysis: Awareness of new tagline – “Be More”

The survey has revealed that less than half of the total numbers of respondents are
aware of new tagline. 36% of the respondents could correctly mention the tagline while the
rest are not even aware that Titan has adopted major rebranding strategies last year.

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8. How do you rate the new designs of Titan?

Figure 8: Consumer perception of new designs

Table No 8: Consumer perception of new designs

S.NO. Consumer Perception No. of Respondents
(out of 50)
1 Poor -
2 Average 4
3 Above Average -
4 Good 39
5 Excellent 7

Survey Analysis: New designs of Titan

Titan has launched several new designs in 2008 in its existing collections and as per
its plans introduced new product collections also. The respondents were asked to rate the new
designs as “poor”, “average”, “above average”, “good” and “excellent”.7 respondents feel
that their designs are “excellent”, 39 have rated them as “good” and 4 have rated as
“average”.

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9. Have you seen the new campaign of Titan?

Figure 9: Awareness of new campaign

Table No 9: Awareness of new campaign

S.NO. Awareness Of New Campaign Percentage
%
1 Aware 50

2 Not Aware 50

Survey Analysis: New Campaign of Titan

The survey has revealed that the percentage of respondents who have seen the new
campaign focussing on “be more” featuring Aamir Khan is 50%.

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10. Do you think the new advertisement is effective in inspiring consumers to have a
new look everyday and be more in lives?

Figure 10: Consumer perception of new campaign

Table No 10: Consumer perception of new campaign

S.NO. Consumer Perception Of New Campaign No. Of Respondents
(out of 25)
1 Not at all effective -

2 Effective 16

3 Highly Effective 9

Survey Analysis: Rating of New Campaign

The 50% of the respondents who have seen the new campaign were asked to rate it
with respect to how effective the campaign is in inspiring consumers to have a new look
everyday and be more in lives.
The respondents were asked to rate it as “not at all effective”, “effective” and “highly
effective”. 16 out of 25 respondents consider the new campaign to be “highly effective”
while the remaining 9 rated it as “effective”

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11. How do you rate Titan’s exclusive showrooms?

Figure 11: Consumer perception of store ambience

Table No11: Consumer perception of store ambience

S.NO. Store Ambience No. Of Respondents
(out of 50)
1 Poor -
2 Average -
3 Above Average 7
4 Good 36
5 Excellent 7

Survey Analysis: Titan’s exclusive showrooms

The respondents were asked to rate Titan‟s exclusive showrooms on 5 point rating
scale – Poor, Average, Above Average, Good and Excellent. The factors related to
showrooms that were provided to the respondents for rating are – store ambience, sales
personnel, after sales service and display of watches.
36 of the 50 respondents have rated store ambience as “Good” and 7 each rated as “Above
Average” and “Excellent”. This proves that store ambience plays an important role in
consumer perception of service quality.

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12. How do you rate Titan’s showrooms sales personnel?

Figure 12: Consumer perception of sales personnel

Figure 12: Consumer perception of sales personnel

Table No12: Consumer perception of sales personnel

S.NO. Sales personnel No. Of Respondents
(out of 50)

1 Poor 4

2 Average 4

3 Above Average 7

4 Good 35

5 Excellent -

Survey Analysis: Sales Personnel

With respect to sales personnel, 35 respondents rated them as “Good”, while 4 each
rated as “Poor” and “Average”, 7 respondents gave rating of “Above Average”.

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13. How do you rate after sales service of titan?
Figure 13: Consumer Perception about after sales service

Figure 13: Consumer Perception about after sales service

Table No13: Consumer Perception about after sales service

S.NO. After Sales Service No. Of Respondents
(out of 50)

1 Poor 7

2 Average 4

3 Above Average 4

4 Good 31

5 Excellent 4

Survey Analysis: After sales service

In the survey, 31 out of 50 respondents rated after sales service as” Good”, 4 each as
“Average”, “Above Average”, “Excellent” while 7 respondents rated as “Poor”.

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14. What is your perception about display of titan watches?
Figure 14: Consumer perception of Display of watches

Figure 14: Consumer perception of Display of watches

Table No14: Consumer perception of Display of watches

S.NO. Display Of Watches No. Of Respondents
(out of 50)

1 Poor -

2 Average 4

3 Above Average -

4 Good 24

5 Excellent 22

Survey Analysis: Display of Titan watches

Most of the respondents have given high ratings to the display of watches in Titan showroom.
22 respondents rated it as “Excellent”, 24 respondents as “Good” and only 4 respondents
gave rating of “Average”

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15. What is your overall perception about Titan showrooms?
Figure 15: Overall perception about Titan showrooms

Figure 15: Overall perception about Titan showrooms

Table No15: Overall perception about Titan showrooms

S.NO. Titan Showrooms No. Of Respondents
(out of 50)
1 Poor -
2 Average -
3 Above Average -
4 Good 30
5 Excellent 20

Survey Analysis: Overall perception about titan showroom

The respondents were also asked to give overall rating to Titan‟s exclusive showrooms. It
was found that out of total 50 respondents, 30 rated as “good” while the remaining considered
the showrooms to be “excellent”.
Around 50% of the respondents rated all the variables related to Titan‟s exclusive
showrooms as “good”. This shows that the store ambience, sales personnel, after sales service
and display of watches in the showrooms play a major role in determining the customer
perception about brand.

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 7.2 FINDINGS OF THE SURVEY

The findings of the consumer awareness survey are listed below:

 72% of the respondents in the age group of 20 – 30 years possess fast track watch.
This shows that the positioning strategy of these watches has been good.
 Most of the consumers prefer Titan watches for their attractive designs and good
quality. However, there is a misconception about pricing of Titan products among the
consumers. They perceive them to be high priced.
 Logos and taglines are rarely noticed by the watch consumers. Hence, any change in
them also goes unnoticed.
 Advertisement in mass media such as television, newspapers, and magazines are best
means to spread awareness about brand.
 Celebrity endorsement of watches not only increases the visibility of the product but
also gives an assurance to the consumers that it is of high quality.
 Titan watches‟ designs are rated as “good” by 78% of the respondents. This indicates
that they are looking forward for more innovative designs to be introduced by the
company.
 Only 50% of the respondents have seen the new campaign launched by Titan watches
in July 2008. This implies that the reach of the campaign in six months has been to
more or less half of the consumers. However, those who have seen the new campaign
consider it to be effective in conveying the message it intended to deliver, i.e., to “be
more” in lives.
 The after sales service and behavior of sales personnel have been given low ratings
compared to other variables mentioned in the questionnaire with respect to Titan‟s
exclusive showrooms.

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 CHAPTER 8– DATA INTERPRETATION

In India 70% of the sales in wristwatches come from the lower segment. So, Titan captures
the market by pricing the Sonata at Rs. 350 onwards. It consists of Tata guarantee. Titan
prices its world watches which are compared equal to an international competitor like Calvin
Klein. Here a customer pays about 4 times a value of the world watch hence penetrating the
market with low prices to international players to gain market share.

In the Indian watch industry there is no one offering pure gold watches, watches in pair,
Jewellery watches. This concept though exists with foreign competition has just come to
India. TITAN offers these products with the Indian touch in its designs, the products, and the
looks. Hence it is able to skim the market with certain products in these ranges.

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8.1 SWOT ANALYSIS:

A. Strength

1. Style:

Titan first introduced the „style‟ concept in India and projected the watch as a fashion
accessory. Now a day‟s style is a very much evident factor among the youth. And
there is a craze for stylish wristwatch. So, Titan makes the peoples life more glorious
by making stylish wristwatch.

2. Models:

As Titan offers the best and the biggest range to customer to choose the watch of their
choice with an affordable price.

It offers about 14 different names with about 1000plus different varieties with a watch
for literally everyone.

3. Exclusive products:

Today Titan holds the pride for say that its products both within the country and
internationally running in battle position. Its EDGE the slimmest watch in the world
position.

Other than these there have few more strength like-

Contribution of owned brands and retail. The profit is accounted by being in the retail
space which is booming.

Watches are available with popular functions like dates, multifunction and
chronographic.

Guarantee/warranty

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B. Weaknesses

1. Pricing:

The average price of Titan in mid-price segment is very high than the other
competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In
the mid-price segment the company is not performing up to the mark due to the lack
of choice of consumers.

2. Market share:

As the average price of Titan wristwatch is far more than the other competitor, Titan
has less market share. The market is more demonstrate by middle class people and for
them Titan is quite costly. Among 75% market share in mid-segment. Titan market
share is between 18-20% which is far lower than HMT and Maxima.

3. Globalized:

As the company is Indian based which leads it to the strength, where as it is the
weakness also because the company not sufficiently globalized.

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C. Opportunities

1. Seasonality:

At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there is
demand for the products.

- Gold watches and pairs are the like as a wedding occasion.

-The fast track brand is promoted in month of June-August when schools and
colleges re-open.

2. Gifting concept:

Titan started as a brand which was associated with gifting and relation. The fight
concept sells well for people have come to associate Titan with love care and makes
emotion run high.

3. Exchanging offer:

The Titan stores offer exchange offer of any old watch, of any make, in any condition
functional or otherwise and receive a flat discount of 25% on their purchase of a
brand new, stylish and technologically advanced watch from Titan.

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D. Threats

1. Competitor:

As we know that lots of foreign brands are entering in our country with their branded
watches. As the removal of quantitative restrictions on import watches leads to threat
to titan.

2. Premium segment:

As in premium segment Titan is getting threats from reputed international brand such
as Espirit, Swatch and Citizen.

3. Mobile:

Now a day‟s people can get the time and the other feature in mobile phone. So, the
need of wristwatch is in decreasing trend. People can talk and see the time in a cell
phone and some people think that there is no need of wristwatch.

4. Marketing Objectives:

Titan industries in watch hold 70% in domestic level and 60% in Share in organized
sector market. Companies the marketing objectives is to increase in market share by
5%.Before implementing the of marketing strategies we must have to focus on certain
things, which include the BCG Matrix representation.

A Titan industry has registered an Income of Rs.1, 104.85 crore as compared to previous year
which was Rs 7, 25.11. In all the income the Titan industry had contributed Rs.3, 03.45 crore.

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 CHAPTER 9- CONCLUSION

 To increase its visibility, Titan Company can sponsor events similar to fashion
shows in which all latest designs launched are displayed. This would have
multiplier effect as the latest designs launched by the company get noticed by
different segments of the customers in varied ways.
 Tie up with FM radio channels for reminder advertisements and informing
customers about various sales promotion offers from time-to-time.
 Invest more in R&D as customer expectations are changing rapidly. Though
Titan has got more product collections, it should focus on introducing more
varieties in already existing product collections. In other words, having a
limited but more depth in product collections would be more advantageous.
 Introduce exclusive collection for working women which is more
contemporary and complements both traditional and western wear.
 Majority of the population in India live in rural areas. So, showrooms should
be set up at places nearer to them. Introduce cheaper and rough use watches
for this segment.
 After sales service has to be improved. That is, the process of servicing and
repairing of watches should be made faster. This can be done by ensuring the
spare parts availability and training all sales personnel in Titan showrooms to
undertake these tasks.
 Tie up with international watch brands and make them available locally.
 Make use of internet to spread awareness among consumers about the brand.

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 CHAPTER 10

SUGGESTIONS AND RECOMMENDATION

Suggestions given by the respondents to improve brand image.

Varied responses were received for this question. All the responses have been
summarized as follows:

-Introduce more trendy and innovative designs

-Focus on niche markets such as working men and women
-Spread awareness about availability of watches in lower segments as most of the
consumers feel that Titan brand is synonymous with premium watches
-Take steps to change consumer perception that Titan watches are high priced.
-Improve after sales service.

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 QUESTIONNAIRE
1. Which sub-brand of Titan watches do you possess?

a) Fast track

b) Sonata

c) Raga

d) Nebula

e) Others, please specify…………………………….

2. Since how many months / years have you been using Titan watch?

3. Why do you prefer Titan brand?

a) Attractive designs,

b) Reasonable price

c) Brand image

d) Good quality

4. Do you remember the original tagline of Titan watches? If yes, please mention.

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5. Have you seen the advertisement of Titan watches? In which media have you seen the
advertisement?

a) TV

b) Newspaper

c) Magazines

d) Hoardings

e) Radio

6. Who is the brand ambassador of Titan watches?

7. Are you aware of the new tagline of Titan?

a) Aware

b) Not aware

8. How do you rate the new designs of Titan?

a) Poor

b) Average

c) Above Average

d) Good

e) Excellent

9. Have you seen the new campaign of Titan?

a) Yes b) No

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10. Do you think the new advertisement is effective in inspiring consumers to have a new
look everyday and be more in lives?

a) Not at all effective

b) Effective

c) Highly effective

11. How do you rate Titan‟s exclusive showrooms with respect to the following:

(1–Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent)

a) Ambience -

b) Sales personnel -

c) After sales service -

d) Display of watches -

e) Overall showroom -

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 BIBLIOGRAPHY

Marketing Management – Philip Kotler

Special Studies in Marketing- Romeo S. Mascarenhas

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 WIBLIOGRAPHY

www.titanwold.com

www.tata.com/titan

www.google.com

www.indianfoline.com

www.economictimes.com

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