Beruflich Dokumente
Kultur Dokumente
PROJECT REPORT
ON
MARKETING STRATEGY OF TITAN WATCHES
CERTIFICATE
This is to certify that the project entitled To study
customer satisfaction towards IDEA CELLULAR
done by Mr. Nitesh , ROLL NO.- 6611 is an authentic
work carried out by him at GAUTAM INSTITUTE OF
TECHNICAL EDUCATION under my guidance. The
matter embodied in this project work has not been
submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.
Date:
ACKNOWLEDGEMENT
I would like to thanks Mr. J. GAUTAM who has been a
constant source of inspiration and my special thank to
Mr. Arvind Kumar (Project guide from the institute) for
him extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one
way or other helped me in the successful completion of my project
report.
Nitesh
INDEX
S.NO.
CONTENT
PAGE
NO.
Introduction
Research Methodology
12
Industry Overview
14
21
24
Company Profile
61
65
Data Interpretation
85
Conclusion
90
10
91
Questionnaire
92
Bibliography
95
CHAPTER 1: INTRODUCTION
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 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.
Selecting
Appropriate
Marketing Mix
Establishing
the
Brand
Proposition
Modifying the
Proposition
-Repositioning
-Introductory Stage
-Updating the
Personality
-Elaboration Stage
-Fortification Stage
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:
After examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:
1.
2.
3.
4.
Falling sales
5.
6.
7.
8.
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.
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
10
2.1Objectives:
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
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:
12
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.
13
manufactured by HMT was the Janata model in the year 1962. HMT was the
leader in the watch market till the Tatas 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.
SUPPLIER POWER
No strong suppliers Lack
bargaining power Rise of China,
Taiwan as low cost suppliers.
BARRIERS TO
ENTRY
DEGREE OF RIVALRY
Increased number of firms
Cluttered Market
Lack of
Differentiation
THREAT OF
SUBSTITUTES
No close substitutes
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.
2. Buyer Power:
15
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,
16
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.
17
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.
Foreign brands such as Cartier, Piaget, Omega, Tiffanys 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.
Based on price
1. Mass (Rs.350-600)
1. Mens watches
2. Popular (Rs.600-900),
2. Womens watches
3. Premium (Rs.900-1500),
3. Youth watches
4. Super-premium (Rs.1500-8000)
4. Kids watches
5.
Connoisseur
segments
Rs.8000)
18
CHAPTER 4:
20
CHAPTER5:
TITAN WATCHES: BRAND REPOSITIONING STRATEGIES
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 Whats 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 wearers mood and personality. With the explosion
of options in a persons 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
21
to make more of their lives and be whatever they want to be. The watch allows
for such imaginative travels, he says.
Titans 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 ones 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 Khans 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 lets 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
22
questioning, Why should we be single minded and boring? Time to be multifaceted, 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.
5.2 The Ad Making Aamir Khan:
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.
24
most beautiful and charming Diva, Katrina Kaif. Ms. Kaif has been signed as
the brand ambassador for their exclusive womens 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 womens 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.
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
womens 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.
25
1. Sonatas 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 Tatas, launched the Super
Fiber, targeted at the sub-Rs 500 market in urban, semi-urban and rural India.
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.
26
Regional Sales Manager (South), launching the watch collection, said that plans
are on the anvil to launch one new collection every month, reflecting the 3000year 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 bimetal finishes.
9. Raga Diva
28
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.
Competitor in Domestic
Market
HMT
Maxima
Rado
Casio
Market Share
19%
13%
7%
3%
29
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.
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
TO FIND OUT THE BRAND PREFERENCE FOR WATCHES
30
Environment Analysis:
The Marketing Environment:
A.
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:
31
Dkny
Gucci
Adidas
Nike
Among all these competitors, Maxima-quartz and HMT are major players .The
strength and weakness of the companies varies from segment to segment
Industrys 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.
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:
32
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(Price)
Rs.
550-1,430
595-1,430
650-1,830
Royal
960-2,830
Raga
1,420-4,000
Bandhan
Regalia
1,675-8,085
1,725-7770
Category
Youth
Lower Middle Class
(Office Wear)
Common Class
Upper Middle Class
Upper Class
Couples
Upper Middle Class
Edge
4,500-5,200
Business Class
Nebula
10,000-45,000
Upper Class
The companys 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.
33
Brand name
Attractive models
New innovation
34
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-
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.
Technological forces
35
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 cant
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.
B.
TARGET MARKET
Identification
The titan industry basically deals in three segments for its watches. They were
as follow.
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.
37
No. Of Media
No. Of respondents
TV
46
Magazines
25
Newspapers
36
Hoardings
15
Radio
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:
39
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
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 Titans 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:
40
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.
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.
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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
consumers 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 countrys 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.
42
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.
Reference
Personal
group
Psychological
43
Subculture
Social Class
Family
Roles and
statuses
Motivation
cycle stage
Perception
Occupation
Learning
Economic
Beliefs and
circumstances
attitudes
Lifestyle
Personality
and selfconcept
A. Cultural Factors
Social class
B.Social Factors
C.Personal Factors
Economics Circumstances
Occupation
Lifestyle
44
Buyer
D.Psychological Factors
Motivation
Perception
Learning
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.
46
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.
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:
Gents (flip)
47
Ladies (raga)
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
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
48
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.
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.
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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
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 its 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.
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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
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
it is basically related to type of generation they are in to. So, the segmentation is
also related to that.
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.
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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
FormalNEBULLA,
STEEL
RAGA,
GOLD&STEEL,
Dress wear
REGALIA,
RAGA,
GOLD&STEEL,
ROYALE.
FashionSTEEL,
RAGA,
GOLD&STEEL,
FAST TRACK.
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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:
Service stage:
Here the researcher conducts exploratory interviews and focused groups
to gain insights into consumer motivations attitudes and behaviors.
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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.
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.
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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.
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
55
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:
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
56
with many segments. For example, Titans 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)
Titan
itself
provides
with
the
number
of
different
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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
58
local brands - brands that make them feel part of wider international community
and brands that root them in their home culture.
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)
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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:
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
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.
6.3 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.
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Both Titan and Tanishq have been adjudged "Most Admired Brands" as
well as "Retailer of the Year" by Images Fashion Forum in consecutive
years.
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
Sub Brands
Percentage
%
1
2
3
4
5
6
Fastrack
Sonata
Raga
Nebula
WWF
Edge
72
14
6
4
2
2
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2. Since how many months / years have you been using Titan watch?
Period Of Usage
Percentage
Years
2001-2004
64
2004-2007
24
66
S.NO.
3
Period Of Usage
Percentage
Years
2007-2010
12
67
Reasons
No. of respondents
(out of total 50)
Attractive designs
39
Reasonable Price
Brand image
22
Good quality
25
68
69
S.NO.
Percentage
%
YES
22
NO
78
5.
70
No. of respondents
(out of 50)
TV
46
Magazines
25
Newspaper
36
Hoardings
15
Radio
71
No. Of Respondents
(out of 50)
Dont know
Correct responses
46
72
Percentage
%
Aware
36
Not Aware
64
73
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.
Consumer Perception
No. of Respondents
(out of 50)
Poor
Average
Above Average
74
S.NO.
Consumer Perception
No. of Respondents
(out of 50)
Good
39
Excellent
75
Percentage
%
Aware
50
Not Aware
50
76
No. Of Respondents
Campaign
Not at all effective
(out of 25)
-
Effective
16
Highly Effective
77
Store Ambience
No. Of Respondents
(out of 50)
Poor
2
3
Average
Above Average
4
5
Good
Excellent
36
7
78
Sales personnel
No. Of Respondents
(out of 50)
Poor
Average
Above Average
Good
35
Excellent
No. Of Respondents
(out of 50)
Poor
Average
Above Average
Good
31
Excellent
Display Of Watches
No. Of Respondents
(out of 50)
Poor
Average
Above Average
Good
24
81
S.NO.
5
Display Of Watches
Excellent
No. Of Respondents
(out of 50)
22
S.NO.
Titan Showrooms
No. Of Respondents
(out of 50)
Poor
2
3
Average
Above Average
4
5
Good
Excellent
30
20
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.
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Logos and taglines are rarely noticed by the watch consumers. Hence,
any change in them also goes unnoticed.
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 Titans exclusive showrooms.
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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.
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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.
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.
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Other than these there have few more strength likeContribution 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
Weaknesses
B.
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:
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Opportunities
C.
1.
Seasonality:
At the time of festival, like Diwali Titan promotes Nebula, Bandhan
because there is demand for the products.
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%
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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 days 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:
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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.
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.
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CHAPTER 10
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
watches
-Take steps to change consumer perception that Titan watches are high priced.
-Improve after sales service.
QUESTIONNAIRE
1.
d) Nebula
e) Others, please specify.
2.
Since how many months / years have you been using Titan watch?
3.
4.
5.
Have you seen the advertisement of Titan watches? In which media have
you seen the advertisement?
a) TV
b) Newspaper
c) Magazines
93
d) Hoardings
e) Radio
6.
7.
8.
9.
10.
b) No
c) Highly effective
11.
a)
Ambience
b)
Sales personnel
c)
d)
Display of watches-
e)
Overall showroom -
BIBLIOGRAPHY
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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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