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ACKNOWLEDGEMENT
INTRODUCTION
EXECUTIVE SUMMARY
COMPANY BACKGROUND
SITUATION ANALYSIS
SWOT ANALYSIS
SEGMENTATION STRATEGY
MARKET RESEARCH
MARKETING PROGRAM
CONCLUSION
BIBLIOGRAPHY
AN INTRODUCTION
Remember when the only Indian wristwatch brand you could buy
came in a clutch of clunky models, one more ordinary than the
other, when the craze for an `imported watch’ never seemed to
wane? That was before the time of Titan, a name which changed
forever the way watches made in this country were seen by
Indians and the world.
THE TITAN
Titan’s products have come down from being a rich man’s watch
to that of everybody’s watch with TITAN still being something for
somebody and not everything for everybody.
THE TARGET MARKET AND WHY THE TARGET MARKET
NEEDS THE PRODUCT?
FAST TRACK
Price: Rs.550-1,430
EXACTA
SPECTRA
Price: Rs.650-1830
ROYALE
Price : Rs.960-2,830
Price: Rs.1,420-4,000
BANDHAN
Watches for him and her. The pair watches of the `Bandhan’
range are Titan’s tribute to the everlasting quality of a bond
between a man and woman The Bandhan Collection is available
in both leather straps and gold bracelets and its presented in
uniquely designed packaging.
Price: Rs.1,675-8,085.
Category Aimed at : Couples
REGALIA
Magic in gold and unique futuristic material. Finely crafted sleek
cases and patterned dials with special appliqué flowing into
intricately designed bracelets. A unique combination of an all-
gold and bicolor look, the `Regalia’ range represents the essence
of dress-wear.
Price: Rs.1725-7770
EDGE
Price: 10,000-45,000
COMPETITIVE ANALYSIS:
COMPETITORS TO TITAN
HMT
RADO
CASIO
SEIKO
ESPRIT
CITIZEN
SWATCH
CARTIER
GIORDANO
LONGINESS
MAXIMA QUARTZ
IMFQ-INDIAN MADE FOREIGN QUARTZ
FASHION HOUSES – DKNY, GUCCI, ADIDAS, NIKE,
BVLGARY
SEGMENTATION STRATEGY
After carrying out an in-depth market study, Titan identified three
distinct market segments for its watches. The segments were
arrived at using benefit and income level as the bases.
The first consisted of the high income/ elite consumers who were
buying a watch as a fashion accessory not as a mere instrument
showing time. They were also willing to buy a watch on impulse.
The price tag did not matter to this segment.
The next segment consisted of consumers who preferred some
fashion in their watches but to them price did matter. While they
had the capacity to pay the price required for a good watch, they
would not purchase a watch without comparing various offers in
the market.
The third segment consisted of the lower-income consumers who
saw a watch mainly as a time-keeping device and bought mainly
on the basis of price.
For the first segment, Titan offered Aurum and Royale in the
gold/ jewellery watch range. They were stylish dress watches in
all gold and precious metals. The prices between Rs.20,000 & 1
lakh.
For the middle segment, Titan offered the Exacta range in
stainless steel, aimed at withstanding the rigours of daily life.
There were 100 different models in the range. The price range
was Rs.500-700. Titan also offered the RAGA range for women
in this segment.
And, for the third segment, Titan first offered the TIMEX watches
and later, when the arrangement with Timex was terminated, the
SONATA range. The price range was Rs.350-500. It was offered
in 200 different models. Titan also offered the “Dash!” range for
children. In-depth segmentation helped Titan launch segment-
specific product.
DIFFERENTIATION
At Titan the products are developed in such a way so as to
enhance quality and features to increase buyer value. This is a
perfect example of differentiation through technological
leadership and product technological change. Titan creates
competitive advantage through differentiation. The first
concentration is on technological leadership. They decided to
manufacture only quartz (analog and digital) and not
mechanicals, and they would set up state-of-the-art plant to
manufacture watches in a wide variety of designs and prices.
STYLES
Titan was first in India to introduce the `style’ concept. They
projected the watch as a fashion accessory. They clearly
identified that their main competitor was not HMT, but the gray
market. Style is a very evident factor in Titan watches and is a
part and parcel of the company. Titan products are shapers and
not adapters. Over the years Titan had built a formidable
distribution and support network. Titan’s customer orientation
was reflected through their advertising campaigns. Whereas
HMT called themselves “timekeepers of the nation”, Titan tells
the masses “if you have the inclination, we have the time”. By
providing a lifestyle product Titan not only got a premium but also
convinced consumers to buy multiple watches.
EXCLUSIVE PRODUCTS
Today TITAN holds the monopoly, pride to say that it owns
products both within the country and internationally which no one
offer. Its EDGE the slimmest watch in the world positions the
company’s product where the fashionable, the business class,
the innovative would got in for this EDGE since it being unique in
the world and the concept of UNIQUENESS is catching in any
business whether it being construction or clothing. In the country
it offers the Sonata which is the watch every player would dream
to have under his portfolio for the guarantee the quality the trust
the innovativeness every thing for as low as Rs.495 which is very
much acceptable in the Indian market. This watch can be sold to
the first time user, the price sensitive user, in the rural markets,
as a gift on occasions, a great time piece, simplicity with style
and value. These products designed with the view of monopoly
go a long way to outshine titan to its competitors.
CORE COMPETENCY
The TITAN core competency is on many fronts with Quality being
the top runner in the list. This is the area where a Titan beats
players hollow. This is for the lower segment watches like HMT
and Maxima. People when they buy a Titan they know it’s a
piece of quality and backed up by the Tata’s and the company’s
strong presence in India rather now the world the watch is one
which creates absolutely no doubt at all for its quality.
The various brands of Titan and the price range in which they fall
are tabulated which follows.
PRICING METHOD
In the recent past Titan has also used the PERCEIVED VALUE
PRICING to its advantage. It is managing to successfully
convince the customer of the perceived value of the WORLD
WATCH using billboards and hoardings all around the city,
increasing buyers image, trust worthiness, innovation,
differentiation, value for the product. The hoardings go about to
say the international presence of an Indian Watch. Titan has also
in the past done so for its steel collection but using Commercial
Advertisements.
PROMOTIONAL PRICING
Titan once a year comes out with a Price discount sale on the
MRP of the watches. Now this is entirely based on the stock
carried by the company at the year end. Allowances are more on
the company to the retailer where the retailer gets a special
allowance if the store picks up more than a certain quantity.
LOWER SEGMENT
The SONATA Brand which proudly emphasizes it to be a TATA
product is the watch for the common man and for the lower class
of the society. Pricing itself between Rs.300 – Rs.900 is Titan’s
fastest selling watch. This watch was launched to make titan
everybody’s company from the image of it being a Richman’s
company. Watches were offered for as low as Rs.300 with a
guarantee of 1 year and the styles were very appealing for the
price. Titan in this case has followed the Penetration policy.
Maxima Quartz is a competitor with similar offerings at Rs.350.
The lower end market being price sensitive, such pricing used to
drive away competition, making people buy the product to make
one trust what a Titan is all about was promptly why this low
price was offered. There are many in the stable such as the
Exacta, Spectra and Fast Track which is priced at what one
would pay for a simple but impressive watch. These watches
deliver value for money with Titan’s name and the innovation
done by the company to deliver better models at the same price.
Besides the franchisees and its own showrooms, Titan sells its
product through other outlets as well. Among them are the Time
Zone stores, which stock all the leading brands, and the Value
Mart outlets, which operate in Bangalore and Chennai and sell
surplus – to export watches at a discount.
WORLD OF TITAN
The world of Titan is the biggest among all stores of the company
and is an exclusive dealer in Titan watches. These showrooms
are generally about 1000-2000 sq.ft and have an extensive range
of watches. These showroom are the major revenue generators
of the company and every 5 years the showroom is fully done up
updating it to modern international standards.
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 backed by efficient after-sales
service. Presenting Time Zones – the chain of trusted watch
shops. Conveniently located, these 1142 Time Zones across 89
towns offer you the complete watch shopping experience.
VALUE MART
These outlets sell surplus stocks of Titan watches at reduced
prices, offering fabulous value for money with the same warranty
as a regular, full-priced watch. These concepts in the recent past
have caught up with any product with it being total value for
money. However these shops would not be placed in the main
locations so as to interfere with the working of the 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.
SONATA STORE
If you’re looking for Sonata watch, visit these exclusive Sonata
outlets which also have an Authorised Service Centre for Sonata
& Titan brands. The idea of a Sonata store came upto cater to
the large scale demand for the watch and to open Titan to more
customers. More over these shops had full stocks of the watch in
demand whereas the others could afford to maintain only limited
stock.
PROMOTION
For the past few months, the one-point agenda of the Tata group
has been to bring about synergy among its individual companies,
and to promote Tata as a single, unified, central brand. “The
Tata’s have realized that many of their companies are
addressing the same target clientele and share a common
customer base. So it makes sound business sense to synergies
the marketing efforts for these companies.
The main reason behind Tata doing this was the results of a
survey which revealed that: “the Tata brand is like sameone who
is established, but not modern, large but not focused, profitable
but not in top gear, a warm person but not efficient, Tata group is
so large and fragmented that the central brand gets lost in the
vastness of the empire. As a result, the top-of-the-mind recall of
the Tata brand-pegged at Rs.10,000 crore – is not so strong
amongst its various products, be it Taj hotels, Titan watches or
Westside garments.
Tata has come to realize that their biggest asset is their name
TATA and not their factories and hence like the value of the
assets the value of a brand can also come down and so is the
name coming down, now the Tata Brand Equity and Business
Promotion Agreement states that – advertisements and
commercials by any Tata company must carry the TATA mark.
The battle ground for this new strategy of synergy started with
the Tata Open (India’s biggest tennis tournament) held every
year in December – January. The tata’s have paid Rs.10 crore
for the three-year contract. For the Tatas themselves, it meant
more than just sponsorship – it signaled the beginning of a new
era in the Tata regime.
One of the main reasons for the sponsor of this event is “Global
event like these provide a great opportunity to corporates to
satisfy their marketing objectives and cross-promote their
brands”,
Creative Advertising
Titan introduced a contest on cartoonnetworkindia.com which
invites children to use their creativity and imagination to design a
watch. The prize –winning design was launched as a new watch
in the Summer 2002 collection and the winner received the first
watch of this collection. The Top 5 won a Dash! Watch each and
all participants were awarded certificates.
Type Of Advertising
Titan believes in making its ads clean, well made, touch an
emotional chord, convey the message, have catchy jungles and
make an impact. The use of celebrities, superstars is not there.
These only ad to the expense packet of the company and
companies only catering to the niche market of the upper cream
like a Rolex or an Omega afford these. Majority of the people are
rational buyers and very rarely get carried away by celebrity
endorsements. They also know that they will eventually end up
paying for such celebrity endorsement. Rich kids, Young DINKS
(Double income, no kids) and Yuppies may fall for such ads but
not ordinary people. At the end of the day, if your product or
service is not good enough or does not offer value for money,
your advertising will get no where.
Promotion On Occasions
Titan is one of the companies which formally believes in the
policy of promotion the product based on the occasions of the
calendar. With every occasion having a special memory attached
to it exploits this memory aspect and pushes its products. Not
only the promotion of the existing products is done on these
occasions but new products which would sell like hot cakes are
launched for the sole reason it creates an impact in the minds of
customers and appeals to the occasion thus making it even more
special. In this context TITAN launched the THE BIG HEART
OFFER FROM TITAN FASTRACK where fashionable jewellery
was a gift on purchase of any Fastrack watch. This jewellery set
of a pendant and earrings is contemporary and unique in form
and material, with steel and acrylic being used together for
stunning effect. This was launched for Valentines day where the
name scheme, The watch being advertised for (Fast track) as it
pertains to the youth, jewellery (for the youth), valentines day
(more so for the youth) and adding to the excitement is A
LIMITED EDITION FASTRACK VALENTINE'S COLLECTION
that is being made available in four designs. Only 300 watches of
each design will be on sale across cities during this fortnight.
These watches are designed is steel with leather straps in the
colors of the season – black, red and silver. The dials are in
matched colors with heart patterns, making the collection a true
blend of fashion and romance. "Young couples are looking for
new ways to discover their relationships and this set of special
watches and matching jewellery from Fastrack, gives them just
the reason to do so. The `promotion was in Mumbai, Delhi, Pune
and Bangalore from Feb 1–14.
Segmentation
Titan started its activity of marketing under the name TITAN as a
brand not promoting on basis of the models it had. Gradually
when markets became more demanding it felt that the brand
needed to be segmented. This was in the years of 96 and
onwards titan segmented because it felt the need that people
know about different brands and the target audience was easy to
identify. This was because titan was just entering the market and
needed to meet specific people for their needs. For eg, it went on
with the regalia, sonata brand which met different needs of
different sets of people in the market. Thus titan got known
among every one in the market cause they knew what was in
store for them from the titan's stable rather than just knowing that
titan manufactures watches.
50 Million Concept
Titan achieved the 50 million mark and hence it had a great
slogan to blow the trumpet loud. The 50 million concept signifies
the concept that 50 million happy faces who not only own but a
sense of love, care and prestige, associated with what the titan
has given them and will be giving them. This was aimed at all the
categories with the smiling faces of the common man. Seeing
this one gets the message of 50 million watches, the landmark
titan has achieved, which means the name has metal in it and is
something which can be trusted at the same time the emotions
portrayed in the ad make emotions run high in the blood and one
wants to be associated with the brand rather than buying some
other watch.
Strategic Implementations
Implementation is an integral part of strategy. Strategy is not just
a set of ideas removed from reality. It becomes visible only when
you implement it. When Titan entered Indian jewellery market it
signaled an opportunity for an organized sector. The customer
was moving towards branded goods in other segments. The
concept of brands was not familiar with the Indian customer.
Titan did the process of creating brands in the minds of
customer. A consumer goes to Tanishq because she believes
the brand stands for purity and good design. This insight, along
with the increasing mobility of Indian customers, is helping
Tanishq mature into a national jeweller.
Focus
The strategy that Titan adopted in recent years is that of focus. It
has segmented the market into different need groups and
tailored its strategy to the exclusion of others. By optimizing its
strategy for the target segments, it seeks to achieve a
competitive advantage in its target segments. Market
segmentation is concerned with identifying differences in the
buyer behaviour, allowing a firm to match its capabilities with
distinctive products and related marketing programs. Market
segmentation tends to focus on the marketing activities in the
value chain in which Titan commands a very formidable position.
This also allows Titan to find out how it should serve each
segment.
Strategic implementation
Companies must have robust processes to develop strategies
irrespective of the personality of the CEO. `THE WORLD OF
TITAN’ our exclusive showrooms for watches are our assets. As
retail formats change the role of the showrooms may also
change. Initiatives need to be prioritized. Some of the
showrooms have been done up last year. However we must start
today. Pragmatism has also set in perhaps because of the
downturn. The depth to Equity ratio in titan is high where Titan
faces a financial risk and hence their current initiatives involve
any thing which do not require much financing.
Banners-Hoardings
It is not difficult to see TITAN hoardings displaying its
prominence in the streets of an urban city. The prime locations,
next to dealer outlets hoardings with attractive, clear, simple but
catchy slogans are put up and a particular product or some times
the name TITAN in general. One of the hoarding promotes the
World Watch where the hoarding states “MADE IN INDIA”
“CHERISHED IN GREECE”. Like this many catchy ones are
there. Older ones state “THE PERFECT VALENTINE GIFT” was
released a month before valentine’s day.
Sponsorship
Titan is involved in sponsoring major events, culturals and other
fests in colleges, schools and nation wide happenings. This way
of promotion gives it the extra mileage to increase its data base
by directly tapping the customers to convince them about a
TITAN.
Seasonality
Strategic Flexibility
Titan has proved its true identity taking the Indian name to
foreign soil and shining on soil not its own, the respect the name
commands in the watch industry has been achieved in a very
short time.
50,000,000
& STILL GOING STRONG
WELL DONE TITAN
BIBLIOGRAPHY
WEB SITES
www.titanwold.com
www.tata.com/titan
www.google.com
www.indianfoline.com
www.thehindu.com
www.economictimes.com
BOOKS REFERED