Overview of the Indian Watch Market:

The watch market in India recorded an approximate volume turnover oI 23 million units (1998-
99). It is growing at 9 per annum. The organized sector contributes to halI the volume turnover
oI the industry and rest by the unorganized sector. Tough competition is anticipated between the
low priced variants introduced by the organized sector and the unorganized sector. Watch
consumption in India is 20 units per thousand persons. The top 23 cities account Ior 80 oI the
watches sold in India, which thereIore leaves a lot oI scope Ior penetration in the 'rural towns.
Three players dominate the organized sector, HMT (34 market share), Titan (39) and Timex
(23). Besides HMT, Titan and Timex several companies like Westar, Shivaki, Maxima, BiIora
and SITCO made a bid Ior the Indian watch market. Liberalization has brought with it a host oI
brands Ior the Indian market, viz. Piguet, Cartier, Christian Dior, Omega, Raymond Weil, Rolex,
and Tissot.
Segmentation of Indian Watch industry
Based on price
Mass (Rs.350-600),
Popular (Rs.600-900),
Premium (Rs.900-1500),
Super-premium (Rs.1500-8000)
Connoisseur segments (above Rs.8000)
Mass Market (Rs 350 - 600):
This segment represents the low end users and the rural market. Basic characteristic oI this
market is low margin and high volume.
HMT brands in this price range:
Lalit, Chetan , Chetak, Rajat, Kedar, Ravi, Kohinoor and shakti
Titan is with:
Basics, Aqura, and Sonata
Popular Watches (Rs.600-900):
This segment is slightly above the mass market segment. Somya and Tennax Irom HMT targets
college going men and women who see themselves as Iashionable people. A similar oIIering,
Timex's Mariner addresses the same proIile as HMT`s Sowmya but a slightly older age group. It
is diIIicult to categorize Titan's Royale, Regalia and Classique as premium or popular. Though
they have a premium image they are available at prices less than Rs.1000.
Premium Watches (Rs.900-1500):
Vista Irom Timex and Chandan, and Sangam Irom HMT Ialls in this segment. Royal , Regalia
etc oI Titan can also be considerd under this range.
Super Premium Watches (Rs.1500-8000):
Titan`s Insignia, Slimline, and Bandhan; HMT's Elegance range, and Misuni; Timex's Indiglo
and Datalink are main brand oIIered in this market segment.
Connoiseur's Watches (Above Rs.800):
Titan's Tanishq and HMT's Gem range Iall into this category. So do most oI the Swiss watches
like Omega, Piaget, Longines, etc. These are bought more as status symbols and jewelry rather
than watches.
Segmentation based on user category:
Women's Watches:
Fashion and style are most visible Ieature oI this segment
Men's Watches:
HMT's Roman is probably the only watch that addresses the men's segment. Market research
indicated that HMT wasseen as a masculine brand while Titan was seen as a Ieminine brand. In
keeping with its masculine image HMT introduced the Roman range.
.Youth Watches:
Age group between 15 and 20 is treated as youth segment. Ruggedness and durability at low
price is basic Ieature oI this segment.
Kid's Watches:
Target group is children aged between 7 and 10. Mainly digital watches Iall in this category.
Grey market is most dominant player oI this segment. HMT`s Zap TIMEX`s Gimmix and
Titan`s Dash are branded watches oIIered in category.
Sports Watches:
Stress oI this segment is on trendy designs Ior casual wear with advanced Ieatures Ior the techno-
savvy consumer.
%I% I&S%#IES
bout %he Company
Titan, a joint venture between Tamil Nadu Industrial Development Corporation (TIDCO) and the
renowned Indian business group Tatas, entered the watch market in 1984. Titan changed the
watch market in India completely by making quartz watch the centerpiece oI its strategy. Titan
Company is the unquestioned leader in Indian Watch Industry. Titan is one oI the most powerIul
brands in the Indian market, scoring very high on brand awareness, brand image and brand
preIerence. Over the twelve year period oI its existence as a manuIacturer, Titan has added
considerably both to capacity and to capability. It has a highly integrated plant, making virtually
all the parts that go into a watch. Titan is today the sixth-largest "manuIacturer-brand" in the
world, aIter Casio, Citizen, Seiko, Swatch and Timex oI America. (Source.
www.indiainfoline.com).
Since its inception, Titan decided that it would be the shaper oI the watch industry and not an
adapter. They created competitive advantage through diIIerentiation. They Iirst concentrated on
technological leadership. The Tatas took two decisions they will manuIacture only quartz
(analog and digital) and not mechanicals, and they would set up state-oI-the-art plant to
manuIacture watches in a wide variety oI designs and prices. HMT and local players had always
looked at the Iunctional utility oI the watch. Titan was Iirst in India to introduce the style
concept. They projected the watch as a Iashion accessory. They clearly identiIied that their main
competitor was not HMT, but the gray market. A Iirm diIIerentiates itselI Irom its competitors iI
it can be unique at something that is valuable to the buyer beyond simply oIIering low price.
DiIIerentiation allows a Iirm to command a premium price, to sell more oI its products at the
same price, or to gain equivalent beneIits such as greater buyer loyalty. DiIIerentiation leads to a
superior perIormance iI the price premium achieved exceeds any added costs oI being unique. At
Titan the products were developed in such a way so as to enhance quality and Ieatures to
increase buyer value. This was the perIect example oI diIIerentiation through technological
leadership and product technological change. In the initial years Titan chose to concentrate on
the higher end oI the market which was responsive to the style element oI the watch. Also this
segment oI the market was relatively price inelastic. This was done so as to build the brand
image oI Titan as manuIacturer oI good quality stylish watches. Over the years the Titan brand
and its signature tune Mozzart`s FiIth Symphony has become one oI the most recognised in
Indian consumer durable goods segment. Company has shiIted its growth strategy Irom adding to
equipment and manpower to one oI obtaining increased production through innovative ideas and
greater operating eIIiciency by adopting global best practices. It has come up with two priorities
The Iirst priority has been to resolutely drive down unit costs through product and process
modiIications and aggressive sourcing.
The second priority has been to boost asset productivity - producing more with less: less oI
men, materials, machines and time - and thereby securing the twin beneIits oI higher output and
lower costs.

Company sold 4.76 million watches in the domestic market as against 3.97 million in the
previous year. Growth came mainly Irom improved market penetration and Irom the newly
introduced Sonata brand (now Under TATA name), which now includes over 400 models at
prices which start Irom Rs350. Company has recently developed a new Iocus on several market
segments with large potential: women, youth, children, sportsmen, the budget-conscious and, oI
course, the big spenders. A systematic programme oI launching these has already commenced
and highlights oI the year included the relaunch oI Fastrack and Raga. The current year has seen
the launch oI the children's range, Dash. A new, attractively priced, solid gold line, Nebula, is
also being rolled out. The Company now has 112 exclusive Titan Showrooms called 'The World
oI Titan' across 69 towns and a chain oI 101 Time Zone outlets covering 59 towns in addition to
being present in over 5545 dealer outlets in 1470 towns across the country.
Sales and Marketing
Titan launched totally a new product, quartz analog watch was an entirely new product Ior India
in 1987. Titan`s marketing strategy was initially built around Iive Ieatures:
A product oI international quality;
Indian designs;
Competitive prices;
An intensive advertising and promotion campaign; and
Specialized retail shops to control the presentation, since the general quality oI watch
merchandising in India was low.
This ambitious marketing program was intended to position Titan watches as high-quality,
Iashionable timepieces, available in clean and comIortable surroundings, priced higher than other
watches then on the market but not beyond the reach oI millions oI potential purchasers. It was
not a program, thereIore, that would place Titan watches in direct competition with, say,
mechanical watches Irom HMT. The marketing program would introduce to India the type oI
promotional eIIort Iamiliar in most developed countries. In order to be successIul, however, all
Iacets oI the program had to come together: attractive designs, high-quality products, suIIicient
inventories, a logistical support system and, a well-timed promotional campaign. Accomplishing
these multiple tasks in a timely way was a monumental undertaking Ior a new, untested
company.
!roduct !ortfolio Of %itan
Sonata Irom Titan (Now sold under TATA) aims at the mass market and advertises itselI as "a
Titan watch at low price". Sonata sold an estimated 0.8 million pieces (1998-99) within Iour
years oI its launch. It is probably the largest selling sub brand Irom Titan. Titan entered the
watch market as a premium watch but competition Irom the unorganized sector and low priced
options Irom HMT Iorced Titan to introduce Sonata. Sonata was so successIul that it
cannibalized the brand Irom the extension`s low price connotation.
Titan's Exacta, a rugged steel watch starts at the low end oI the price spectrum but oIIers high
price versions as well. It is reportedly selling 1.0 million pieces per year because oI the constant
upgradation in its models.
It is diIIicult to categorize Titan's #oyale, #egalia and Classique as premium or popular.
Though they have a premium image they are available at prices less than Rs.1000. Regalia
(estimated sales - 0.2 million units) is at the higher end with dress watches Ior special occasions.
The Royale range (estimated sales - 0.6 million watches) caters to the giIt segment. There is also
Royale Crown in the upper end oI the Royale range. Classique is an oIIice wears accessory that
is gold-plated and leather strapped (estimated sales - 1 million units). Classique watches are
targeted at the older, male segment oI the market, and proIess timeless elegance through a
combination oI Iine leather straps, clean classic dials and sleek cases, thus making it, " perfect
fit for formal wear." Classique is the embodiment oI everything that is everlasting yet
contemporary. These watches tend to be generic in their simplicity, and Iind no real competitors,
except HMT. These watches are priced between Rs 550 to Rs 3000. Though there are very high
priced watches in the above three ranges it is the relatively low-priced ones that sell. They all
target the upper middle class men and women in their thirties. Royale, Classique and Regalia are
the watches that gave Titan the popularity and the prestige it enjoys.
The Spectra range in this price band is a well-designed bimetal watch ("stylishness oI gold and
ruggedness oI steel"). It sold just 70,000 units in 1997-98. Titan Industries launched (September,
2001) its range oI watches in steel, targeted at urban men and women in the age group oI 25-35
years. The Titan Steel collection has a range oI bracelet and leather strap watches Ior both men
and women priced between Rs 1,250 and Rs 6,000. The range will be retailed through World oI
Titan, Time Zone and other retail outlets. The launch oI the steel watches, available in 90
designs, will be Iollowed by an aggressive marketing campaign.
Titan's %anishq range initially targeted the European market with limited success. In India also
Tanishq Iaced resistance because Indian women do not treat watches as jewelry.
The company is exploring the possibility oI Iilling up the gap in the super premium segment. At
present only Swiss brands have a presence in this niche. TIL, however, has its ebula range Ior
both men and women priced between Rs 6,000 and Rs 32,000. The new range is expected to
higher price than the Nebula range. In Iact the company's Iocus would be on niche segments to
grow the market. By planning to launch a brand in the super premium category, Titan perhaps
hopes to be present across all categories.
Titan's #aga is an interesting product concept that oIIered to give dials that match with designs
on saris. This promise was unrealistic and Raga Ilopped (estimated sales - 20,000 units). Raga is
now being launched in more mellow colors and its positioning changed. Raga silver watch range
also did not Iare well because Indian dials.
Titan Industries launched its Fastrack range oI watches Ior women (For Men It is already
present). The ladies watches are available in diIIerent Iinishes Irosted, polished and satin and
come in varied geometric shapes with trendy leather straps and classy metal bracelets. The
watches retail Irom Rs 995 to Rs 1,950 and are attractively priced. The watches which have been
designed at Titan's creative studio is the outcome oI research that has highlighted the need Ior a
watch that is Iashionable, bold, unconventional and designed to accessories western wear. A
collection oI watches with contemporary styles those are young and distinctive. Designs that go
Irom the relaxed and inIormal to the deIinitely sporty. The woman's collection presents the all-
new international 'Frosted' look, which is trendy and chic. The Fastrack collection has elements
like cool mesh straps and Ieatures that include backlight and dual time. Also presenting a range
oI Iashion digitals in contemporary wrist hugging cases with oversized displays and Ieatures that
include countdown timers, chronographs, lap timers, hourly chime, alarm and Hi-light glow.
ash is Titan`s reply to Gimmix and Zap. Dash is available in 3 new collections Ior kids -
Popeye, Digital and Lumibrite. Titan is the sole licensee oI Popeye in India and this range is
priced between Rs 350 and Rs 395. Giving Popeye oI the spinach-eating Iame the additional
responsibility oI keeping time, the Popeye brand oI watches come in 6 diIIerent designs. The
Digital range in a collection oI 10 digital watches has Ieatures like El-light compass and Velcro
straps Ior the sporty and is priced between Rs 425 and Rs 495. And Lumibrite, is a glow watch
that comes at Rs 325. The company has also brought out a collection oI Iive watches Ior the
girls, priced at Rs 295.
!#OBLEM IE%IFIC%IO
Titan entered the watch market as a premium watch. But the unorganized sector and low priced
options Irom HMT gave Titan serious competition. The unorganized sector grew very Iast
almost 55 oI the demand in the total market size oI 20 million watches was being met by the
unorganised sector. With the import duty reduced to 25 (earlier 50) and with the import
license Ior watch movement being easy to obtain, many smalltime players cropped up. These
small players oIIered competition to Titan on the price Iront. Thus Titan launched low priced
segment Sonata. Sonata was so successIul that it cannibalized the sales oI all Titan watches
across the board. Titan consequently is wary oI Sonata diluting its premium image. Even iI we
consider sonata as separate Irom Titan then it was second to titan in terms oI turnover, leaving
behind Timex and HMT. ThereIore Titan planed to drop its name and leave the brand as Sonata
under TATA thereby distancing the parent brand Irom the extension`s low price association.
Another problem Ior Titan can be reIlected in terms oI VP marketing`s concern:
"For us, the main concern was: Does the sum oI all our communication Ior Raga, Classique and
Regalia add up to Titan? We Ielt it didn't besides; building each oI them as separate brands is a
very expensive proposition. So, instead oI a multi - brand strategy here, we're going to unveil a
single-brand one.
Titan has been Iacing a dilemma that whether it should market these brands as independent sub-
brands or not, but it because oI the high costs carried on with status quo but with more emphasis
on segments.
It is also putting in place a strategy to tap the rural market rigorously. Titan is currently in test
market in rural Andhra Pradesh. While has the product and the brand Ior this market in the Iorm
oI 'Sonata', and reach in terms oI distribution, but in terms oI Titan they don't have the
communication. Mistake companies generally make in approaching the rural market is to see as
one large lump, while in reality the market is very segmented and distinct.
Titan has been the Iirst one to build upon style, but in terms oI marketing iI we consider
Classique or any other brand it was not targeting any particular segment initially with a Iocus,
whether it was the youngsters or the Children. Thus there was a need to Ioray into these already
present segments.
Secondary Information and Critical nalysis
Titan is more a marketer than a manuIacturer. The strategy has theoretical backing in the context
that products reach parity and people gain enough money to satisIy more than their basic needs,
the most prized assets start shiIting Irom manuIacturing know-how and Iactory machines
towards the consumer relationship section oI the chain. This puts the emphasis on need
identiIying, product designing and brand communication skills, with which there's greater scope
to stand apart. Titan has already made some admirable breakthroughs in this brand-building area.
As a brand, Titan sought ownership oI the 'style' portion oI the target consumer's mind which
was Iine at the upper-end, but lacked direction towards huge price-sensitive segment. Also the
Mid-priced zone had been less exciting HMT and Maxima have been crawling along, while
Timex was recovering. But as all branded players have discovered, the real action is at the
voluminous lower end where the unorganized-sector and grey-market players have been having
a blast. The answer Irom Titan came was Sonata.
%itan third-quarter net jumps 28 to #s 1.9 cr
Titan Industries Ltd has posted an increased sales turnover during the third quarter oI the Iiscal
by 40 per cent Irom Rs 105.85 crore to Rs 147.97 crore in the current year while the company's
proIit aIter tax has gone up by 28 per cent Irom Rs 1.37 crore to Rs 1.96 crore During the nine
month period, Titan's watch sales rose Irom 31.38 lakh pieces to 36.90 lakh units marking a
growth oI 18 per cent, led by brands like Regalia, Raga, Fastrack, Sonata (plastic) and its newly
launched Dash labels
(News Item in Financial Express)
The retail network in this segment proved to be a Iormidable barrier to competition. Its strength
here has helped Sonata, a relatively low-priced brand (starting Irom about Rs 350apiece);
achieve annual sales oI almost 3 million units within just Iour years oI launch. Indeed, it was
because oI this success that Titan needed to churn out 300,000 units more than the capacity. But
this we think was a tactical mistake made by the company. There was a dire need Ior Titan to
launch a watch brand Ior the lower segment. Now, Titan had a very strong direct relationship
with watch market than any other TATA Company, thus it initially positioned it as a Titan sub-
brand. This can be Iurther strengthened by the arguments given by one oI the 22 immutable laws
oI Ries. Which says that the association with the company name and product is a very important
Iactor in brand building. II instead oI Titan Sonata had been under TELCO then the association
with heavy machinery would have been awkward to consumers.
TATA
TITAN
SONATA

The price diIIerential between the two ranges -- Sonata and Titan -- was not very signiIicant. II
Sonata was priced at Rs 845, a similar-looking Titan would be priced at Rs 1,200. What's more,
the look oI the two watches was not very diIIerent either. They sold through the same
distribution outlets. As a result, very oIten, a value-conscious Titan buyer would end up settling
Ior a Sonata. Cannibalization between Titan and Sonata rose Irom 15-20 in the Iirst year to
almost 30 by the end oI the second year. Titan's initial reaction was to cap Sonata's volumes at
2 million watches so that it did not cut into the mother brand's volumes. But that meant that
Sonata was unable to stem the onslaught oI the unorganised competition. Now in a change oI
tactic Titan has decided to take the grey market head on. Says vice-president, sales and
marketing, Bijou Kurien: "Earlier, the pricing and positioning oI Sonata vis-a-vis the grey market
was tentative." As a part oI the new strategy, Sonata, with an ad budget oI Rs 5 crore which is
double than last year`s is being positioned as an aspirational watch Ior the grey market consumer.
In 1998-99 iI we consider Sonata as diIIerent Irom Titan then this two-year-old brand managed
to clock sales oI nearly 2.4 million units, marginally less than numero uno Titan. To prevent
cannibalization and drive distribution penetration, Titan is creating a dedicated distribution
inIrastructure Ior Sonata. Now Sonata will be sold as under the banner oI TATA. For instance,
earlier the same distributor salesman would go to sell both Titan and Sonata to a retailer. Now
that system has been changed. Two diIIerent salesmen go on diIIerent days to the same retailer to
sell Titan and Sonata as separate brands. That way, instead oI competing with each other Ior
space, Titan and Sonata can hope to grab market share away Irom other brands. Already, Sonata
has also added 500 outlets in the last one year, thereby pushing up the total coverage to 6,000
outlets. Sonata's next big opportunity is to open up new markets. The company now plans to set
up about 10 Sonata showroomsexclusive Iranchised outletsthis Iiscal. The strategy,
however, will be to go into smaller towns, such as Bhopal, where it is opening its Iirst Sonata
showroom.. Within these towns, Sonata showrooms will be located in watch localities` rather
than hot and happening places`. We now have to get into smaller towns and make it an
economic proposition,`` Mr Kurien said.
Further, to tackle the competitionprimarily Irom the unorganised sector Sonata will be
penetrated into the rural market. Currently, Titan and Sonata are available only in around 1,400
towns and they have no presence in smaller villages. Having sold 2 million units last year, which
is expected to touch 3 million units this year, Sonata will lead Titan's drive into the rural market.
Sonata is clear evidence oI Titan's new brand strategy. It now wants to be a Iull pyramid player
addressing every segment in the market.
Titan by Ioraying into Fastrack and ash has made it apparent its strategy oI identiIying the
segments, sizing the market, and Iinding ways oI penetrating it. From the earlier strategy oI catch
all the strategy now is to Iocus on the diIIerent segments more sharply. Having created the desire
now Titan wants it to translate it into demand. Close on the heels oI watch brands Ior children
and the youth, Titan Industries will launch an exclusive line Ior college girls. According to
Xerxes Desai, vice chairman and managing director, Titan Industries, main gap in the portIolio
was the target segment containing girls. To plug this gap, Titan has developed a new line
positioned at girls between the ages oI 16 and 24. So Iar, Titan had treated this segment as part oI
its youth brand FasTrack` without producing products speciIically Ior it. The girls line may be
priced within the FasTrack price band: Rs 850-Rs 1500.
The debate is whether to launch this new line under the FasTrack` umbrella or as a new brand
altogether. So while keeping to the FasTrack brand Iield and imagery, Titan may launch a
'diIIerent look one that would be more Ieminine and colourIul in comparison to the men`s line
which is more instrumental, sporty and macho. Once the product is with a Iashion` tag, then the
realisation oI its Iickleness and thereby, constant change is the only way to survive. Titan
Industries, which Iorayed into Iashion watches in 1998 with Fastrack, has recognised the greater
need Ior upgradation in this segment more than any other, and will come out with a new
collection Ior men and women by the year-end.
Fastrack, though positioned Ior the 15-25 years age group, has a lot oI older customers in its net
as well. In the Titan portIolio, Fastrack contributes to 4 per cent in value and the company has
decided to establish it as an independent brand because oI its high penetration potential.
Titan earlier launched into several sub-brands, but it cared little to communicate their meaning to
consumers. Now Titan is changing the position with Titan as umbrella link brand with clear
diIIerentiation oI the sub-brands. Coming up with Fastrack Titan is using smart new designs (Ior
men and women) to counter Swatch and Esprit, which have won the admiration oI the style
conscious Indian youngster. There is a Iine example oI this strategy in Iorm oI advertising
campaign Ior DASH As a marketing experiment at the showrooms, Titan decided to have the
Dash display at the height oI 3.5 Ieet to make it more accessible to the child. It also kept colorIul
stools Ior the children to stand on to have a better look at the watches. Inspired by nightliIe and
urban liIestyle, a multimedia campaign will herald the launch oI this dramatic product-line. This
includes television commercial, print ads, billboards, in-store display material and web-based
promotions.
%E %% B&SIESS EXCELLECE MOEL (%BEM):
Titan Industries has signed up to implement the compliance plan laid out by the
TBEM.Beginning July 2000, it will be evaluated on 7 parameters that constitute the TBEM:
leadership, strategic planning, customer and market Iocus, inIormation and analysis, process
management, human resources Iocus, and business results. The goal is to reach a score oI 600 in
next Iive years. Titan currently stands second in the Tata group, with a score oI 450, aIter Tata
Steel.
The objectives oI TBEM are:
To provide a Iramework Ior the group to become competitive.
To work as a competition to ensure participation.
To acquire competitiveness using quality as the route.
To monitor the progress through ratings.
To become a transIormational tool Ior every company.
The TBEM drives excellence across Iunctions in the Iollowing manner:
1. %he Leadership criterion checks how senior leaders create
leadership system based on
Group values. With the able leader in Iorm oI Mr. Xerxes Desai at the helm oI aIIairs, Titan has
become a dynamic, vibrant and pro-active organization.
2. %he Customer and Market Focus checks how the
company determines customer groups, key
Customer needs, and complaint-management issues. Titan has always been a customer centric
organisation and always has Iocused on satisIying the customer demands.
3. %he Strategic !lanning criterion examines how the
company develops strategic objectives,
Action plans, and resource-allocation. Since its inception, Titan has been the shaper oI the watch
industry. It has identiIied the Iuture trends well in advance and taken appropriate steps in the
right direction to emerge as the leader in the industry.
4. %he Information and nalysis criteria check whether the
organisation has key metrics in place
To measure and analyse perIormance. Being market-driven, Titan has its inIormation systems in
place and has its hand on the pulse oI the watch market.
5. %he uman #esources Focus checks the appraisal system,
the work environment, and the
Training and development oI the employees.
6. !rocess management examines the product design,
production and delivery process, and
Supply chain management. Titan has pioneered the style concept in the watch industry and is the
undoubted leader in design.
Strategy Evaluation
Titan banks on Cutting edge technology that has helped Titan create value-Ior-money price and
the result is extraordinary marketing presence in about 40 countries, with a network oI some
3,500 retailers abroad and high volume oI domestic presence. Till date Titan is able to single-
mindedly convey a point oI diIIerentiation that strikes the consumer then whether it is in terms oI
price (Sonata) or extraordinary beauty (Slim 'Edge watches). But the point is that whether the
strategies which Titan is Iollowing will take Titan to a position oI global uniqueness: a brand
which brings inIormation and ideas together Irom around the world, to IulIill human needs in
novel ways and still go on Ior proIitable growth. But maybe what's required is a campaign with
executional variety a TV campaign that uses attention-getting devices to drive home the
message. This would require greater creative risk. But then, iI the stakes are reaching gigantic
proportions it's time to get one's eyes in.
Titan has segmented the market on the basis oI the Iollowing variables:
emographic: The segmentation here is done on the basis oI social class i.e. working class,
middle income group etc. since marketing is potentially and intimately connected with the
'ability to pay this segmentation is meaningIul in analysing buying patterns oI a particular
class.Age, children, young, adults, Social class: upper, middle and lower come in this category.
!sycho graphic: In Psychographic segmentation buyers are divided into diIIerent groups on
the basis oI liIestyle and personalities. People within the same demographic group can exhibit
very diIIerent Psychographic proIiles.
LiIestyle : proIessionals, aIIluent Personality: adventurous, 'cool, traditional
Behavioral:
BeneIits: Iunctional, attractive, reliable, Occasions: giIts, special occasions
eographical:
Region: Europe, Middle-east
Complementing this segmentation Titan is pursuing a three-pronged strategy
Create a separate brand Ior the lower end oI the segment.
Create new (sub) brands Ior unaddressed segments, like kids.
Re-aim existing sub-brands (Raga, Classique and Regalia etc) to attract speciIic customer
segments, like businessmen, women etc.
Initially Mozart`s symphony number 25 (Titan`s signature tune) imprinted the brand in the minds
oI consumers, its utility Iaded as Titan introduced more (and cheaper) watches. As more
customers - belonging to very diIIerent socio-economic categories - entered Titan`s Iold, the
brand turned mass market. The chauIIeur and the owner, both had Titan on their wrists. This was
the major re-emphasise oI the sub-brands. Titan`s Iirst attempt at emphasizing its sub-brands
didn`t yield the desired results. Instead oI targeting diIIerent customer segments with diIIerent
sub-brands (as is being done now), the watchmaker Iocused on product diIIerentiation as the
selling platIorm With product diIIerentiation being replaced by segment-based Iocus, Titan`s
sub-brands building has got bright chances oI creating an identity oI their own.

!ositioning Strategies
Since its introduction, Titan has been positioned as a premium brand, providing high quality
products. With its numerous sub-brands catering to diIIerent segments, the challenge that Titan
Iaces is to create a strong brand image. It Iollows diIIerent positioning strategies, these strategies
can also be analysed in the present context oI Sonata, Fastrack, dash and Raga, Classique and
Regalia as ;
ttribute positioning:
When the company launched its products, it was the Iirst to bring quartz watches to the Indian
market. The company successIully leveraged this to penetrate the market and gain a market
share. Raga Classique and Regalia come under this strategy. Classique has been positioned as
elegant corporate wear that leaves a quiet, but deIinite impression and Iusion oI Iunction and
sophistication. Power dressing now has a new weapon! Regalia as Magic in gold and unique
Iuturistic material, Iinely craIted sleek cases and patterned dials with special applique Ilowing
into intricately designed bracelets. A unique combination oI an all-gold and bicolour look, the
'Regalia' range represents the essence oI dress-wear. Raga has been diIIerentiated and positioned
as Exclusive watches Ior women. The Raga and Silver Raga collection is elegant, delicate and
Ieminine with each piece being truly unique. An exciting collection that includes decorative
motiIs, 'kadas', studded bracelets and a Iirst oI its kind three-in-one watch. The designs are
inspired by traditional Indian as well as contemporary motiIs and are expressed in ropes, 'kadas'
and ornamental bracelets. CraIted exclusively Ior the sophisticated woman, who wears silver
jewellery with elan, the Silver Raga makes a perIect accessory that completes a woman's
wardrobe.
&ser positioning:
Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000
and Fastrack range). The Fastrack range is seen as being contemporary, sturdy and reliable. The
advertising, packaging and merchandising oI this range is young, vibrant and cool` (the ad line
says 'Cool watches by Titan)
Benefit positioning:
The Fastrack Digital range oIIers the customer a Iunctional watch that is also attractive. The
digital watch has a 'techno-geek image, but Titan seeks to diIIerentiate its oIIering on the basis
oI superior style and attractiveness.
Competitor positioning:
With the entry oI several Ioreign watchmakers into the market, Titan had to counter the threat.
Most oI the entrants are catering to the upper end oI the market- Omega, Tissot, 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.
"uality or price positioning:
In the overseas market, especially in Europe where it is competing with Swiss and Japanese
watches, it is positioning itselI as value- Ior- money`: reasonably priced (less than Swiss
watches and higher than Japanese), attractively styled and oI good quality. In India Market
Sonata is a perIect example oI Price positioning, titan came up with this segment when it was
Iacing heavy competition Irom lower end segment.
Laws Of Branding and %itan
In order to truly gauge the extent to which Titan has built itselI into a nationally recognized
brand, we need only reIer to marketing guru Al Ries` deIinition oI the word, which is 'a brand is
a proper noun that can be used in place oI a common word. In the Indian context Titan can be
taken as Ior the watches. This is what marks the diIIerence between a mere name oI a product,
and a brand.
Perhaps one oI the most highly regarded works on brand building is the now classic 22
Immutable Laws oI Branding` by the Iather and daughter team oI Al and Laura Ries. Using these
laws we can see the Titans Brand building strategies .
%he Law of Contraction: A brand becomes stronger when its Iocus is narrowed. This does not
imply carrying a limited product line, but rather limiting and Iocusing a brand on only one type
oI core product, which in Titan`s case happens to be watches. Titan, though possessed oI a wide
product line, has stuck to its Iocus. It hasn`t launched other types oI products and stuck them
with the Titan name, which would have only gone on to cannibalize the value oI the core brand.
As a result oI this, Titan has developed Ior itselI an image oI being 'time-keeping experts in the
minds oI the consumers. Although no it is going Ior the brand extension (wallets, writing
instruments, luggage etc.) but still the core Iocus is Watch Industry.
%he Law of dvertising: Once born, a brand needs to actively advertise in order to stay
healthy and maintain market share. II done right, advertising is more oI an investment than an
expense. Titan has implemented this by always maintaining a high degree oI visibility when it
comes to it`s advertising. In addition, it possesses one oI the most recognizable ad-jingles in the
history oI Indian advertising.
%he Law of the Word: As we have seen in the STAS and Long term advertising eIIects, any
brand should strive to retain words in the mind oI the consumer. Titan in Indian watch market
seems to have done this.
%he Law of "uality: Though quality is essential to the survival and growth oI any brand, the
Iact remains that brands are not built by quality alone. The perception oI the brand is as, iI not
more signiIicant than mere quality. It is here that Titan 'scores. As mentioned previously Titan
more or less owns the word 'quality in the minds oI the consumers, thereby implying that it is
perceived as a quality product. Thus, it`s actual quality, as well as it`s perception oI being a
quality product combine to work towards building the strength oI the Titan brand.
%he Law of the ame: In the long run, a brand is nothing more than a name. The diIIerence
between products is thus not so much between the products, as it is between their names, or
perceptions oI the names. Seeing as how its name is perhaps the most important element oI a
brand, we Ieel that this point warrants a slightly more in-depth discussion. First oI all, the name
Titan` itselI comes Irom Greek mythology, and symbolizes greatness, grandeur and power. It is
easy to pronounce, as well as to remember. Even Titan sounds more classy and sophisticated
than Hindustan Machine Tools (HMT).
%he Law of the Company: Brands are brands, and companies are companies. There is a
diIIerence. Titan is owned by the Tata Group, who though highly regarded in Indian industry are
associated more with heavy industries such as steel and truck building, than with watch making.
Chances are that no one would buy a Tata watch (it`s name invoking the same, iI not greater
reaction than an HMT). People would, however buy a Titan.
Conditions ecessary for segmentation Vs %itan
Substantiality:
This reIers to the size oI segmented markets. Segments should be large enough to permit viable
market eIIort directed towards them. Titan has Iully satisIied this condition as its models i.e. Psi
2000, regalia (premium segment), Classique (oIIice wear), Fastrack (Youth) etc are all large &
proIitable enough to direct marketing eIIort towards them.
ccessibility:
Could be attained through the existing channel oI distribution. The segments must permit the
Iirm to direct successIully diIIerent marketing eIIort towards the segments. The existing channels
oI distribution Ior Titan like exclusive showrooms and shop dealers can support titans various
segments.
#epresentability:
Segments should be large and proIitable enough to be considered as a separate market. Such
segments must be representative in nature and must have individuality oI their own. For example
this condition is IulIilled in the kids segment, which is cornered by 'Dash
Measurable:
The size, purchasing power, and characteristics oI the segments have to be measurable. This has
been clearly satisIied by titan through its pricing and branding policy. While Ioraying into the
Youngsters and Kids segment titan was sure that this segment is already present there and just
the need was to diIIerentiate and position itselI.
Managerial Opinion
In our view the disassociation oI the Sonata brand Irom the parent Titan and its Iurther
association with TATA was a well long term planned strategy, as the association oI Sonata built
in quite strong with Titan and Titan in Indian context is synonymous with Watches thus a strong
association oI Sonata with the watches segment developed. But as we have seen that the sonata
has been cannibalizing the Titan sub-brands, whether this strategy is able to bring back the style
image oI Titan back. This all exercise leads to the conclusion that Titan is on a path oI
FortiIication
by means oI building image through launch oI new product categories oI watches Ior various
segments, aIter the initial introductory and elaboration phase.

Introduction Elaboration Fortification
In 1984 onwards with Launch oI Classique, Sonata Launch oI Fastrack,
the launch oI Titan and other products around Dash and Iurther Iocu
1990`s (late ) -sed segmentation.