TITAN Industry Getting the Marketing Mix Right

Presented by :

Ravindra Thapa Kaushal Anand Pranjal Anil Kumar Saini

Introduction
Started its Operations in 1984

By 2003, annual revenue had been 797.90 Cr.

Most Admired Brand in Country by The Economic Times

Captured Premium of the Market at Premium Prices

Later, Identified the potential in lower Segment : Launched Sonata Launched Several other models under different brand names for different Segment

Watch Industry in India

Dominated by Grey Market and Unorganized Players

Low watch penetration : 10 out of 200

The ratio of Mechanical to Quartz watch 90 : 10 at International level 20 : 80 HMT (public sector) was the only brand available for long time Titan was another brand started in 1984 Still unorganized players accounted for 55 % of market share Grey Market & Unorganized players are big challenge for brands

Marketing Mix
Product / Service Demand

Uncontrollable Factors : Political Issues Legal Constraints Economic Elements Technology

Controllable Factors : Range of Product/Service Pricing Levels Distribution Structure Promotion Strategies People Physical Evidence Process Management

Marketing Mix at TITAN Range of Products : Titan offers product for many segment : 1) TITAN for Premium category 2) Sonata for Lower Segment

3) Fastrack for 14 18 age group

4) Dash for 6 14 age group

5) Tanishq Gold Watches

6) Titan Raga as Fashion Accessory

PEST effect
Politics : Government had started allowing foreign brands to enter Indian market - Liberalization Economic : Protected economy - Restriction on watch imports Social : Changed in Lifestyle - Preference for more Brands - Foreign Brand - Grey Market and Unorganized Players

PEST effect
Technology : - Better Technology - Quartz watches replacing Mechanic watches

Marketing Mix at TITAN

Pricing Level :

Titan for Premium Category : High Price Range ( above INR 6000 )
Sonata : Positioned as a Titan watch at low price INR 350 to 1400

Fastrack : Starting Price INR 850 ( 14 18 age group )

Dash : Targeted Children ( 6 14 age group) INR 250 - 395

Marketing Mix at TITAN

Distribution Structure :

Titan Distributed through three channels : 1) The Dealers 2) Company Owned Exclusive Stores 3) Distributors : Passed on to Retailers & then to the Customers Company had 102 Exclusive Stores, 5400 Dealers Outlets
Titan in to retailing : The world of Titan Discount Store Value Mart Alliances with Departmental Stores

Marketing Mix at TITAN

Promotion Strategies :

Mozart jingles and Tune of Titan are very popular, Helps in recall & Brand Identity
In 2001, broke the marketing operations in two parts - Upper Brand Titan - Lower Brand Sonata They were to be sold in different showrooms

Seasonal Campaign like The big heart offer on Valentine Day

SWOT Analysis
Strength : Trust of TATA Strong Distribution Network Presence in many Segments After Sales Service Affordable & Durable Product Weakness : Uncontrollable Grey Market & Unorganized players Less reach in Rural Area

Opportunities : Online Purchasing To reduce the Watch Penetration which is 10 out of 200 Acquisition of Local Players Product Line Extension Global Opportunity

Threat : Grey Market & Unorganized Players International Competition

Porters Force Model

Threat of New Entrants : High - Market is Open for New Entrants at International Level - Formalities of Issuing a New License is very less for Domestic Players Threat of Substitute Product : Low - Mobile phone can be a Substitute, but a Watch is used as an accessory which is a Style Statement

Competitive Rivalry within the Industry : High - Large number of players Domestic and International - Switching Cost is Low
Bargaining Power of Suppliers : Low - Many organizations like Titan has in-house Operation - Low cost producers, Who Outsource Watches (China) Bargaining Power of Customers : High - Many options in the market - Price Sensitive Customer and Low Switching Cost

Findings
Grey Market and Unorganized Sector still the main Challenge Rural Areas market a big part of India still untapped

The less aggressive promotion

Innovation was less frequent

Recommendations
Threat of New

Thank you !!!