Distribution Strategies for Titan Watches

By:
Dilip Rajiwade 2009E49 Deepak Singhavi 2009E42 Hemant Pagare 2009E37
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Outline
Distribution Objectives Consumer X Product Segmentation A Multi-Channel Retailing Concept The Distribution Matrix Major Retail Formats Channel Comparison Advantages of Distribution Strategy Future Distribution Strategy
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Titan Distribution Objectives

Minimize total distribution costs for a given service output Determine the target segments and the best channels for each segment

Consumer X Product Segmentation

Aligning Channels With How Customers Buy

The Titan brand architecture comprises several collection and subbrands, each of which is a leader in its segment. Market has been split into
Low end Mass market Premium Luxury

Notable Brands (sub-brands) of Titan are

Titan Edge: The world's slimmest watch which stands for the philosophy of "less is more" Titan Raga: the feminine and sensuous accessory for today's woman Nebula: crafted in solid 18k gold and precious stones

World of Titan (WOT) A Multi-Channel Retailing Concept

Titan has pioneered the concept of specialty retailing in the watches business. Organized retailing did not exist in the late eighties. The concept of exclusive brand stores was almost nonexistent. In a pioneering effort that dramatically altered industry standards, the World of Titan (WOT) was born. The company reaches out to its target customers through multiple channels.

The Distribution Matrix

Titan Industries Ltd ( Watches Manufacturing Plants)

Industries

C.S.D.

WOT

Time Zone

Direct Dealers

Wholesalers / Distributors

Franchisee

Retailers

Consumers and organizational end users

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Major Retail Formats in India

Generally, there happens to be no competition across channel members(here WOT and Time Zone). They maintain almost different product portfolio and targets completely different segments of customers.

World of Titan Showrooms

Titan has 255 World of Titan outlets, only 8-10 are owned while the remaining are under the franchise arrangement. Besides stocking the entire range of Titan, these outlets sell select models of Sonata (lower end) and Tommy Hilfiger (licensed brand) watches.

Time Zone
142 Time Zones, which are multi branded outlets
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A Comparison of WOT and Time Zone

WOT Location Posh Markets, Malls Ambience The ambience makes Customers feel like very relaxed and comfortable. Products are available at eye- level. Time Zone Various markets Ambience use to be good enough. But these are not as good as WOT.

Vibrant Colors creates impulse buying in customers. Channel Product Variety: Sonata (lower end), Selective range of Titan Products Offering Fast Track (sporty and youth end), Raga mainly sub-brands Titan and (womens accessory), Oriono and Tommy Sonata. Hilfiger (licensed brand). This channel offers special membership The selective range here refers to to regular customers. the range which are outdated at WOT and also the lower end products of these two brands. Discounts and different schemes. NO other offerings such as special membership, extended warranty and exchange scheme available at these stores.
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 Type of Customers

A Comparison of WOT and Time Zone

Style concious women

WOT Time Zone Medium to high profile customers Low to medium profile Customers who wants sporty types of watches Unwilling to pay premium price Not Style concious and dont look for latest design and availability look for best available pricequality product at want low price want branded product at low price Low price - product after maturity
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Customer buying look for differentaiated products behavior Takes lot of time in decision making They show their affluence want some extra service Reason for wide range of variety channel the latest design and lengthy product High class shopping experience Price High price - entry products differentiation

Titan Advantage of MultipleChannel Distribution Strategy

Permitted optimal access to each market segment Increased market coverage, lower channel cost and provide more customized selling

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Future Distribution Strategy

Setting up 20 Fast Track kiosks in malls across the country. These kiosks are targeted to draw attention of young consumers who usually walk into malls for window-shopping. This segment normally doesnt walk into a shop but walks around the mall. Company noticed the concept of the only womens watch store, Raga Store, working effectively, the company looks to open more such stores across the country

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Thank You !!!

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