Business analysis and summary of titan watches

Titan is among the largest watch maker in India and sixth largest on the globe. Titan manufactures over 7 million watches per year and also have 65 million customer.

In 1984 titan was established as a joint venture between the Tata Group and Tamil Nadu Industrial Production Corporation. Making in a state- of -the art work at Hosur, Tamil Nadu the company brought the large change in
Indian marketplace, by offering quartz technology with intercontinental styling. By understanding the various segments available in the market, the business launched its second company Sonata watch, as value brand for those
who like styled wrist watches with affordable prices.

In last two 10 years the company has build an extremely good impression in watch business to be India’s major manufacturer and world greatest sixth manufacturer of watches. This was due to the fact good formidable
distribution network. Staying one of greatest retail chain of exclusive retail showroom for wrist watches called ‘The community of Titan’ spread over 100 towns.

Titan own branches over 30 countries, it’s also have multi manufacturer outlets named ‘Time Area’, service centres and dealer outlets. The business has view plant at Dehradun (UP) and Baddi (Himachal Pradesh) and digital
circuit boards in Goa. The promoters held majority stake of the business, with Tidco having 28% of the shares and Tata Group firms owing 25% of the shares and the public sharing holding around 28% in the company. The
others stake is placed by the foreign institution, non resident Indian, mutual fund and other organization.

It also acquires a license for global brands such as for example Tommy Hilfiger and Hugo Boss, while. It has additionally in its portfolio its first Swiss Made watch brand – Xylys.

In 1995 the business capitalize to company Tanishq as diversified into jewellery in fragmented industry operating no brand in urban city.

Also in 2005 the company introduced its second Jewellery company, GoldPlus, as which consists of chance of capitalizing in small area and rural India. It’s also diversified into style Eyewear by launching Fastrack Attention
Gear sunglasses as well as prescription eyewear.

Investigation and analysis

Under the aid of moderate execution and control, it really is evident that product development strategies fit for Titan
and carry maximized income to it.
Core Competency
Each purchases are delivered with Top quality is Titan’s primary competency which for the lower segment watches like maxima and HMT. Whenever any persons buy Titan watches they understand it’s a piece of quality and is
supported by a Tata’s. Titan’s innovations in the region of design, uniqueness, technology and they have a market from steel to gold to diamonds. Titan Edge can be an only creation on the globe, owned by Titan.

Situation Analysis:
Environmental Analysis:
Environmental evaluation helps Titan to comprehend what’s happening both inside and
Outside the company and also to improve the probability that the strategies will appropriately

Reflects its organizational environment, PEST evaluation for Titan consists of following

Factors:

Political:
It has a stable Government

Tinges of liberalization

Foreign brands had started getting into the Indian market with government permission.

Economic:
Current economic downturn

The purchasing electricity of customers has decreased because of market meltdown and recession and they may also spend less on high end items.

E-commerce is now prevalent

Protected Economy

Social:
There is been a whole lot changes in lifestyle

Indians Patronizing the International brand.

Increasing aspirations

Grey Market

Good Quality/foreign makes bought to India

(http://www. scribd. com/doc/37204122/Swatch-Mkting-Plan)

Technological:
Having a better technological practices
Quartz designer watches was the future

Technological products were having better preference

Watches were traditional mechanical

(http://www. scribd. com/doc/37204122/Swatch-Mkting-Plan)

Competitive Analysis:
Competitive evaluation is a vital part of a advertising plan. Its purpose is to look for the power and weaknesses of the competitors within the marketplace. Porter’s Five Forces evaluation for Titan could be interpreted the
following:

New Entrants:
Strong brand recognition and client loyalty, Titan is a popular brand among clients substitution. How should policymakers reconcile this reliable essay writer tension!
Many makes provide with selection of similar styles

Threat from counter sensed products

Buyer Power:
Buyer power is saturated in this industry simply due to the presence of so many rivals selling the same goods. It is only differentiated in price and consumer loyalty

Overall Intensity of Rivalry:

Intense competition within in a very crowded market

(http://www. scribd. com/doc/37204122/Swatch-Mkting-Plan)

SWOT ANALYSIS:
Swot analysis is the overall evaluation of a company’s strengths, weakness, possibilities and threats and is definitely ways to monitoring the exterior and internal advertising environment (Kotler, 2009, p. 89).

Strengths:
Strong brand and customer loyalty

Repositioning into in the style market.

A wide selection of products with unique designs across all selling price points
Production and training facility is flexible plenty of to adapt new technologies.

Industrial relations is great. Till date company didn’t encounter any kind of labour or commercial relations problem which can put enterprise into jeopardy.

Watch industry keeps growing industry which faster rate

As the population is rising, the see market can be expanding

Customers aren’t very price sensitive as far as quality watch is concerned

Weakness:
There is not much marketing done by watch industry

No innovation in products

There are few number of unique showrooms that minimizes the consumer’s accessibility to the product

Low asset turnover ratio

Weak employee productively

No focus on R&D and designs

It lacks crew spirits and awareness which can result in low utilization of human and machine capacities.

Opportunities:
There is more need of fashionable luxury look at and fine luxury look at brands that can be targeted in UK, as clients are similar to trendsetter and fashionable.

UK especially London is a metropolitan city which makes it more attractive for the brand new company.

Youth are extra brand conscious than their predecessors. That brings about the expansion of the market for branded watches.

E-commerce offers trading opportunities

The market meltdown can force customers to buy reasonably priced items over luxury items

Threats:
There are many international players getting into in the race
Too various players will dilute the market and the profit margin.

Mobile phones acting as substitutes of the designer watches.

Counterfeit products

Intense competition between different businesses within a crowded market

Current economic recession and plan of price fixing decrease the sales

(http://www. scribd. com/doc/40142805/Marketing-Strategy-of-Titan-Watches1)

The Indian watch industry began in the entire year 1961 with the commissioning of the look at division of Titan. The first of all watch model produced by HMT was the Janata model in the year 1962. HMT was the first choice
in the watch marketplace till the Tata’s shaped Titan watches in colaboration with Tamil Nadu Industrial Advancement Corporation in the entire year 1987. They took a major strategy decision, which later on changed the face
of the Indian watch market to manufacture just quartz watches. Liberalisation in 1992 and removal of quantitative limitations due to WTO has opened up the doors for many the Indian market viz. Tissot, Swatch, Omega, Rado,
TAGHeuer. The import obligations on wristwatches are falling making the Indian industry look beautiful for the global majors like Casio, Swatch and Citizen.

Recommendations:
MARKETING OBJECTIVES:
Titan’s wants to end up being the creative and impressive leading brand in global industry and establish a strong brand photograph in the mind of consumers and its own financial objectives includes its profit to improve by 10%
annually, revenue to improve by 21. 7% over the next 2 years.

Strategic Choices and Strategic Choice:

According to the SWOT analysis above, it really is evident the Titan has a steady presence in the fashion market with strong company image and client loyalty. So as to maintain and take benefits of such strengths, Titan should
adopt the market – penetration strategy which means to sell existing goods into existing markets with the objectives of securing the dominance of current market and increasing market talk about from current goods. (kotler,
2009, p. 85).

Comparing with the cost- leadership strategy and the merchandise development strategy, the ex – calls for price cutting when selling products

It not only reduces company’s sales earnings, but also influences its brand graphic. The latter strategy requires company to build up a new product, which might cost so much money and time to do the marketplace research and
product evaluation.

Therefore, Market – penetration strategy is considered as the core strategy for TITAN.

According to my ideas titan should work with Ansoff’s product/marketplace matrix in order to be creative and innovative brand in global industry. As Ansoff progress matrix is an instrument which helps businesses to decide
their product and industry growth strategy. Ansoff’s merchandise/market growth gives a concept to businesses growing depends upon whether it markets latest or existing goods in brand-new or existing markets.

http://tutor2u. net/business/images/Ansoff%20Matrix%20w500. gif

Daigram2: http://tutor2u. net/business/strategy/ansoff_matrix. htm

The above diagram illustrates the way ansoff’s product/industry matrix works.

Once Titan recognizes where they should set the new product in the existing market they also need have a proper STP (Segmentation, Targeting, and Positioning) at the time of launching something.

Segmentation and Targeting:

As Kotler, Philip (2009, p. 247) described that segmentation can be to divide market in to distinct groups of buyers with different needs, features of behaviour, who may need separate products. The profile for the Titan’s most
suitable customers consists of following factors:

Demographic:

Gender: Male and Female, in 2007, 11. 1% of women bought watches for self, while 9. 3% visited men, 5. 3% of females bought watches for someone else, while 3. 4% went to men.

(http://www. scribd. com/doc/24305562/Titan-STP)

Age: In terms of amount of individuals who purchased watches during 2007, 15-19 accounted for 23. 4%,

20-24 accounted for 18. 1% and 25 – 34 accounted to 16. 9%

Lifestyle: Customers in UK are even more inclined towards the trendy models which symbolize their uniqueness and style and personality.

FasTrack, Raga, Sonata, Xylys, Nebula and Flip happen to be sub-brands within Titan that are targeted at the youth, men, girls and children

Sonata is the value for money watch company from Titan industries. It is directed at consumers seeking strength and worth with a clear positioning of “No compromise watch”.

FasTrack was positioned as a youth company. The adolescent Indian racing driver Narain Karthikeyan was the brand ambassador. The company used focused distribution supplementing its check out outlets with youth focused
outlets like music retailers and internet café’s for FasTrack.

Titan targeted its Raga watches at ladies in the top quality segment which provided them the sensation of intimacy. The business realized that more girls were wearing watches for capabilities. It offered slimmed down and
sleeker watches for women. The Raga spectrum remained for more specialized reasons, like marriages or get-togethers.

Xylys comes from the House of Titan, is usually targeting a new generation of achievers who are trying to find symbols to reflect their lifestyle, attitude, moods and beliefs.

Nebula-precious jewellery watches from Titan. This is a assortment of intricately carved models for women inspired by floral habits and these designer watches are engraved with beautiful habits in gold and precious stones.
This is for the high quality segment.

Titan Edge and Titan Steel will be the mainstream Titan products which enhance the brands graphic of leadership, advancement and pride. Titan is known as to have one of the powerful segmentation and targeting.

Titan adopted a technique of target. Titan tries to accomplish competitive edge by optimizing its approach in different market segments.
Once the firm has identified its market – segment, it must decide which ones to focus on (Kotler, 2009, p. 267). Titan will concentrate on working girls among the 24 – 35 age group. Firstly, it really is clear that female getting
goods for themselves a lot more than male and they take the lead in the complete market. Therefore, to become more personal aware in the fashion sense and much more likely to maintain influenced by trends, and also lifestyle,
women ready to spend more on themselves.

Secondly, more recently there exists a downward tendency in the amount of marriage in the united kingdom. Two main drivers are behind it. One can be single people heightened from 3 million in 1997 million to 9. 2 million in
2007. The other may be the average age at which couples are getting married has risen to 32 for males and 29 for females. Therefore, the 24 – 35 age groups may be more established in independent financing and lifestyle.

(http://www. scribd. com/doc/24305562/Titan-STP)

Targeting:
Titan’s watch Period RAGA can be an exclusive watch out for women. The TIME RAGA collection is elegant, delicate and feminine with each part being truly unique. It includes an exclusive assortment of attractive motifs
with studded bracelets. It really is generally inspired for working females class. It is crafted exclusively for superior girl, who wears silver jewellery with elan, enough time RAGA makes an ideal accessory that completes a
woman’s wardrobe.

(http://www. scribd. com/doc/24305562/Titan-STP)

Positioning:
In UK TIME RAGA is positioned as “the slimmest see in the universe”. All good stuff are packaged small or could be packaged slimmest on the globe.

Brand positioning of Period RAGA:

Promise of purity and a distinctive experience: its design and retail innovation have been hallmark of Titan’s each one of these years. TIME RAGA guarantees the purity of its jewellery and certifies the caliber of its diamonds
and coloured gems in writing.

Luxury: Period RAGA will become positioned as a branded jewellery of luxury instead of commodity. It moves jewellery beyond expenditure to the fashion and adornment sector. It will be positioned as superior product. It’ll
be positioned as a completely new point of view to jewellery buying in particular when it comes to exquisite oriental jewellery.

(http://www. scribd. com/doc/24305562/Titan-STP)

To working women of all ages among the 24 to 35 generation, who have strong purchase electric power, Titan is the watchmaker that produces extra unique watches than any other brands because of its the most selection of
designs. Their top quality but good deal make customers proceed to multi ownership across a range of looks and cost points.

Titan has managed to get fair marketplace in Middle East and Africa but its failure in European countries was a downturn for the business as the return had not been as effective as investment designed for the expansion. Titan
has made a decision to revamp its flagship watch brand in Europe generally in UK. Titan wants to reposition it more youthful and relevant to the changing times.

Titan has got entered the International marketplaces in 1989 through the export of watch moves. Titan’s 1st global footprint was located in the UAE – the greatest market in the centre East then it shifted towards Egypt, Oman,
Saudi Arabia and few market segments in Africa. Though it faced strong competition, it reached the sales of 100,000 designer watches within a time of its release. It started to maneuver globally and moves towards Sri Lanka,
Bangladesh, Maldives and Nepal.
After its comprehensive survey, it figured it needs justification to stock the company. Titan must re-position its brand picture in the UK market. And so Titan made a decision to against soft option of traveling its globalization
through exclusive label exports. It would launch its merchandise under its brand with marketplace positioning Therefore Titan observed a massive marketing campaign to create brand consciousness. In addition, it participated in
the good which showcases the world’s biggest watch manufacturer on the planet.

Marketing Mix:
Price:
As achieve our marketing objectives, we are able to so some change in the pricing. Price tag will need unique benefits which can offer a benefit to the customer in the competitive marketplace. It’s assumed that higher rates are a
luxurious product. Titan needs to select the pricing for its product that can be affected and decided by the price tag on manufacture, most recent plant, and high expense for the product. Additionally, it may open duty – free
outlets in the airports such as for example Gatwick and Birmingham airport and in Eurostar station in London. Eurostar estimates to passenger number increase from 8. 3 million this year to 10 million by 2010 (Railnews, 2007).
It can also put banner on the internet such as for example Face Book.

Product:
Titan’s main objectives was to make consumers buy more than one watch to increase industry size by raising it augment demand for wristwatches. It could it product different collection for different segments. It will expose a
jewellery watches to entice working women in UK. Product should be customizing to personalize the look at to fit customer’s taste and make it even more unique. It can make use of specialize features that emphasize extra
special and limited edition for a youthful, progressive and exciting look.

Place:
It can create place from positioning. It could attract customers by featuring its own showroom which can only help to increase it invest in in the competitive marketplace. It can also have dedicated special distributions which can
exclusive showcase Titan products and its ranges. It can also make an investment in a showroom and also in line with the product positioning. It can rent stores in primary locations which has busy high street which can also
help increase its sales.

Promotion:
Titan can achieve its marketing targets by exploring its romantic relationships with its suppliers, distributors and all stations which can help to increase its sales. It could develop promotion tactics such as for example gift items,
promotion designs and etc. It could focus extra on its general market trends feedback which can improve its graphic in the local and international market. It should focus even more on the after sale service which is very
important in UK where makes with popularity is recognised. It could endorse its item with celebrity and use their impression. Advertising such as for example print / broadcast advertisings, posters and leaflets or billboards,
additionally, it may use immediate and indirect marketing such as E-mails, mobile messages and websites.

Conclusion:
To increase its presence, Titan Business can sponsor events equivalent to fashion displays which all latest models launched are displayed. This is important as it has a great effect on different segments of the customers in
various ways. Titan should also own Tie up with radio channels and television set to broadcast and telecast its advertisement about various sales promotions every once in awhile. Specially, R&D needs additional investment as
customer expectations are changing rapidly.

Titan can focus more on introducing more varieties and luxury items in the market at frequent interval. Titan should bring in exclusive collection for working women in order to have more contemporary and complements for
just about any fashion types. Tie up with intercontinental watch brands to help make the product stronger on the market. Titan should use internet to spread recognition among consumer about the brand.
Finally, based on all analyses, it is clear that market – penetration strategy fit in for Titan. Titan’s key target should be working females who own a solid purchasing power and pursue a trendy life style. Therefore, custom-made
watches right aim at this marketplace. This innovation development will essentially not merely strengthen its current customer loyalty, but also broaden its consumer base.

Selecting the check out parts from a broad – selection of current watches could decrease the cost. However, because of the limited and different features, these wrist watches sell with high value. Hence the turnover would be
increased therefore Titan UK company would make the maximized advantage.