Consumer behavior in Titan watches

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					CONTENTS



ACKNOWLEDGEMENT
INTRODUCTION
EXECUTIVE SUMMARY
COMPANY BACKGROUND
SITUATION ANALYSIS
SWOT ANALYSIS
SEGMENTATION STRATEGY
MARKET RESEARCH
MARKETING PROGRAM
CONCLUSION
BIBLIOGRAPHY
AN INTRODUCTION


Remember when the only Indian wristwatch brand you could buy
came in a clutch of clunky models, one more ordinary than the
other, when the craze for an `imported watch’ never seemed to
wane? That was before the time of Titan, a name which changed
forever the way watches made in this country were seen by
Indians and the world.


Launched in 1987, Titan is credited with transforming the face of
India’s watch industry. By offering consumers quality products
the blended classy designs with superior technology, Titan
became byword for success stories. Outstanding service, wide
variety of models, and effective marketing has helped Titan
consolidate its early gains, to the point where the company is a
force to be reckoned with beyond Indian shores.


Understanding the Indian consumer’s psyche has been vital to
Titan reaching its current position of strength. The company
today has a model for every price segment and every market,
urban and rural, regional and international. Within the Titan
mother brand are Nebula, which comes draped in 18-carat gold;
the exclusive Insignia; PSI, for those turned on by technology;
and Raga, which has been designed exclusively for women.
Titan’s focus has always been on India.
Research reveals some interesting facts and figures about this
heterogeneous market.


The Indian market is estimated at 25 million watches a year, with
50 per cent being sold by the organized sector.
Titan is the runaway market leader, with domestic sales of 6
million watches a year.
There are 190 million watch-owning Indians; between them they
own about 210 million watches.
Urban India accounts for 120 million of these watches and 90
millions are on rural wrists.
More men than women own watches in India, and more working
women than housewives own watches.
It is the rural segment within this diverse market that Titan is now
looking to tap. “The key to success is getting into the rural market
on a larger scale. The company’s Sonata range is targeted at
rural customers, and is part of a strategy where the alignment of
price and reliability are crucial. The rage costs between Rs.495
and Rs.1,200 has showrooms exclusively for it, and is sold
mainly in small-town India.


Welcome Titan… Welcome Innovation
EXECUTIVE SUMMARY


THE TITAN


It brought in quartz technology, displacing the mechanically
driven HMT, till then number one, into second place and smaller
towns. It brought a sense of style and designs, till then available
only in the West, or in Japan, to its range. Even today, with so
many foreign brands gaining visibility, as well as a buoyant grey
market, the strongest selling point of Titan is that it is available
and affordable. It provides for all segments, from the low-end
Sonata for a first-time user, Fast-Track for the trendy young,
Dash for kids, and the higher-priced Regalia and Nebula with its
latest offerings being steel Collection (Rs.1,500 to Rs.6,700) and
the world watch, and by the year-end it has ambitious plans to
augment its existing ranges. But Titan’s flurry of expansion and
extension, and its four-year- several-crore R&D, which has
resulted in the Edge, shows that there is no room for
complacency. Though the `most profitable watch company’ in the
country (net profit in the last financial year Rs.23 crore, with six
million watches sold), claims that it doesn’t fear foreign
competitors, there’s no doubt that the high ad-spends of the
Swatch group have taken some of the sheen off the biggest
domestic players.


“Reparability, and visibility”, is where Titan scores. Even though a
Swatch’s likelihood of needing repairs is minimal, it would have
to be dissembled even for as small a thing as a change of
battery.


Titan’s products have come down from being a rich man’s watch
to that of everybody’s watch with TITAN still being something for
somebody and not everything for everybody.
THE TARGET MARKET AND WHY THE TARGET MARKET
NEEDS THE PRODUCT?


FAST TRACK


A collection of watches will contemporary styles that are young
and distinctive. Designs that go from the relaxed and informal to
the definitely 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
features that include EL back-light and dual time. Also presenting
a range of fashion digitals in contemporary wrist hugging cases
with oversized displays and features that include countdown
timers, chronographs, lap timers, hourly chime, alarm and Hi-light
glow.


Price: Rs.550-1,430


Category Aimed at : Youth


EXACTA


A perfect combination of dateless styling and design simplicity,
Exacta is the all-steel look in Titan. Everyday watches for those
who value fundamental principles of durability, reliability and
affordability.
Price: Rs.595-1,140


Category Aimed at : Lower Middle Class (Office Wear)


SPECTRA


A truly unique collection of watches that combines the sturdiness
of steel with the richness of gold. International in styling the
`Spectra’ collection is designed for those who look beyond the
ordinary.




Price: Rs.650-1830


Category Aimed at : Common Class


ROYALE


A stunning collection of alluring gold-plated cases matched with
exquisite gold-plated straps, the `Royale’ collection has designs
that suit everyday wear.


Price : Rs.960-2,830


Category Aimed at : Upper Middle Class
RAGA


Exclusive watches for women. The Raga and Silver Raga
collection is elegant, delicate and feminine with each piece being
truly unique. An existing collection that includes decorative
motifs, `kadas’, studded bracelets and a first of its kind three-in-
one watch. The designs are inspired by traditional Indian as well
as contemporary motifs and are expressed in ropes, `kadas’ and
ornamental bracelets. Crafted exclusively for the sophisticated
woman, who wears silver jewellery with élan, the Silver Raga
makes a perfect accessory that completes a woman’s wardrobe.


Price: Rs.1,420-4,000


Category Aimed at : Upper Class


BANDHAN


Watches for him and her. The pair watches of the `Bandhan’
range are Titan’s tribute to the everlasting quality of a bond
between a man and woman The Bandhan Collection is available
in both leather straps and gold bracelets and its presented in
uniquely designed packaging.


Price: Rs.1,675-8,085.
Category Aimed at : Couples


REGALIA
Magic in gold and unique futuristic material. Finely crafted sleek
cases and patterned dials with special appliqué flowing into
intricately designed bracelets. A unique combination of an all-
gold and bicolor look, the `Regalia’ range represents the essence
of dress-wear.


Price: Rs.1725-7770


Category Aimed at : Upper Middle Class – Upper Class


EDGE


The Titan EDGE is the Slimmest Watch in the Universe; a mere
3.5 millimeter thick, the watch is practically invisible. Delicately
crafted with precision, it has an incredibly Slim Movement of 1.15
millimetes. Furthermore, the Titan Edge is Water Resistant to a
depth of 30 meters, an attribute rarely ever seen in slim watches.
Titan’s Edge comes with an elemental One-Piece case made
from Non-Allergic Stainless Steel, and a Sapphire Crystal that
market it Scratch Resistant.


Price: Rs. 4,500-5,200


Category Aimed at : Business Class
NEBULA
Nebula, a range of watches crafted from solid gold embellished
with precious stones, available with both leather straps and
intricately designed bracelets. With Nebula, Titan turns watches
into precious jewellery. The finishing touch to this exquisite
collection is the sapphire crystal that crowns each of the
watches.


Price: 10,000-45,000


Category Aimed at : Upper Class
SITUATIONAL ANALYSIS


COMPETITIVE ANALYSIS:


COMPETITORS TO TITAN




HMT
RADO
CASIO
SEIKO
ESPRIT
CITIZEN
SWATCH
CARTIER
GIORDANO
LONGINESS
MAXIMA QUARTZ
IMFQ-INDIAN MADE FOREIGN QUARTZ
FASHION HOUSES – DKNY, GUCCI, ADIDAS, NIKE,
BVLGARY




Titan’s portfolio comprises of products from Rs.295 – Rs.45000.
Many competitors do not go beyond a certain range or do not
come down below a certain range.
For E.G. To start of with the lower segment maxima quartz, HMT,
IMFQ (Chinese watches), Titan offers its Sonata brand which
comprises of about 47-50% of the titan sales (Figures according
to showroom owners), backed by the guarantee of TATA-India’s
biggest business house which people have faith in. The
guarantee, the Research and development, value for money,
new innovative designs, wide dealer network, the committed
service team, discounts and offers is some of the things which
means a lot a price sensitive market, the lower segment in which
Titan carves itself the path to being the market leader.


Moving on a little above top what is the future of the watch
industry and is the fastest growing segment today Swatch which
is known for it name in watches owns a segment in the range of
aboutRs.3500-10000. More so ever these watches are more of
the sporty type with steel being their trademark of it’s the entire
range of formal watches but both the sporty and the formal are
difficult to find under one name In view to these companies Titan
offers its world watch, The steel collection, the fast track, the
edge, the bandhan, the world watch (a part of it). The titan
portfolio in these ranges boast of steel watches, the formal wear,
the slimmest watch in the world, a gold plated watch, the tendy
youth watches, and the World Watch – International Styling
Indian Prices. Competition is head on with such companies
which are gaining importance in today’s society. These
companies have a Niche market for themselves and pertain to a
particular segment but Titan its more flexible in pricing offering
more value for money.


Moving on further up the pricing ranges we come to a market
which is not price sensitive but wants an exclusive product and
who do not mind paying the price. Rado which is known for its
expensive diamond watches, have a niche for the top cream of
the society. Titan manages to cater to these segments with the
Nebula, the Edge, the Insignia, the World watch, distinguishing
itself for example as the slimmest watch in the world giving
oneself the identity no one can offer, pure gold watches and
combined with Tanishq which apparently has gained a status of
its own jewellery with watches. This unique concept plays well for
titan to offer a wide range of products with the Indian touch and
providing the customer a well designed international store, these
products offer satisfaction and a sense of well being (based on
research details), couples watches, the gifting technique, wide
dealer network , selling on emotions, the use of festivals and
occasions, combining new products with the old ones which one
no one in the watch market can boast of are some of the
techniques none in the upper market can do.


Thus broadly speaking TITAN has 60% of the watch market in
India Today because companies existing have a niche market
where as TITAN gives the flexibility to the customer to choose a
watch more or less than his budget giving him the same
guarantee, the name TATA, a wide dealer network, an
international store, and more so ever value for money.




SEGMENTATION STRATEGY
After carrying out an in-depth market study, Titan identified three
distinct market segments for its watches. The segments were
arrived at using benefit and income level as the bases.


The first consisted of the high income/ elite consumers who were
buying a watch as a fashion accessory not as a mere instrument
showing time. They were also willing to buy a watch on impulse.
The price tag did not matter to this segment.
The next segment consisted of consumers who preferred some
fashion in their watches but to them price did matter. While they
had the capacity to pay the price required for a good watch, they
would not purchase a watch without comparing various offers in
the market.
The third segment consisted of the lower-income consumers who
saw a watch mainly as a time-keeping device and bought mainly
on the basis of price.
For the first segment, Titan offered Aurum and Royale in the
gold/ jewellery watch range. They were stylish dress watches in
all gold and precious metals. The prices between Rs.20,000 & 1
lakh.
For the middle segment, Titan offered the Exacta range in
stainless steel, aimed at withstanding the rigours of daily life.
There were 100 different models in the range. The price range
was Rs.500-700. Titan also offered the RAGA range for women
in this segment.


And, for the third segment, Titan first offered the TIMEX watches
and later, when the arrangement with Timex was terminated, the
SONATA range. The price range was Rs.350-500. It was offered
in 200 different models. Titan also offered the “Dash!” range for
children. In-depth segmentation helped Titan launch segment-
specific product.


THE TITAN VIEW OF A WATCH
A watch is now looked at as a personal accessory, an extension
of a person’s lifestyle. The design of the dial and the strap
influence a buyer’s choice rather than just the function. Also, a
whole new range of technologically superior watches has also
entered the market.


With the emergences of this trend, TITAN has clearly segmented
their consumer base targeting niche markets with different
products. While Titan introduced `Dash’ targeted at children, it
introduced `Raga’ exclusively for Ladies Party Wear.


Another niche segment caters to the technology savvy
consumers, with brands such as `Edge’, `Technology’, `PSI
2000’ to cater to this segment.


There is also the fashion segment, where TITAN has a collection
for men and women. For instance, Titan has `Fast track’, and
Raga, Regalia and Royale in the stylisth segment. International
styling, such as the `WORLD WATCH’ which was launched a few
months ago is also to keep up with trends in the market. While
most foreign brands have their products targeted at one niche
segment, either fashion of function or style, TITAN has different
products targeted at different segments.


The stress is one constant innovation in style, design and
products that would keep the interest alive in the various
segments. This is a challenge every player is facing to keep up
its market share. It again battles to the survival of the best or the
Rule of three where the top three players in the market would
survive. Titan figures not only in one among them but the leader
among them. At TITAN innovation and leadership are part and
parcel of the company and this trend is reflected in their products
and the synonymous name the “The Watch” has in the Indian
market.


TITAN’S PRODUCT PYRAMID
Titan’s portofolio of products spanning 3 distinct price-bands that
can be defined, in general, as Popular, Mid, and Premium. At the
bottom, the emphasis is on volumes-not margins. At the top, the
emphasis is on profits and image not volumes. Obviously, profits
are concentrated at the top of the pyramid, but the base acts as
both an entry-barrier and a caretaker of the company’s fixed
costs. This pyramid guided the strategy of Titan. Titan was first
focused only on the premium segment of the watch market. As
per the above-mentioned strategy Titan moved in to the mass
market for watches. To broaden the mass base, Titan created
new segments and increasingly focusing on segments
individually. In the past few years Titan has launched at a
number of initiatives focused on specific segments.


DIFFERENTIATION
At Titan the products are developed in such a way so as to
enhance quality and features to increase buyer value. This is a
perfect example of differentiation through technological
leadership and product technological change. Titan creates
competitive advantage through differentiation. The first
concentration is on technological leadership. They decided to
manufacture only quartz (analog and digital) and not
mechanicals, and they would set up state-of-the-art plant to
manufacture watches in a wide variety of designs and prices.


STYLES
Titan was first in India to introduce the `style’ concept. They
projected the watch as a fashion accessory. They clearly
identified that their main competitor was not HMT, but the gray
market. Style is a very evident factor in Titan watches and is a
part and parcel of the company. Titan products are shapers and
not adapters. Over the years Titan had built a formidable
distribution and support network. Titan’s customer orientation
was reflected through their advertising campaigns. Whereas
HMT called themselves “timekeepers of the nation”, Titan tells
the masses “if you have the inclination, we have the time”. By
providing a lifestyle product Titan not only got a premium but also
convinced consumers to buy multiple watches.


MODELS IN PRODUCT LINE
Today titan offers the best and the biggest range to choose from
offering from the scratch to the highest level in watches. With
offering such a variety of models. Titan provides variety to the
customer and still is able to segment itself creating not a niche
but its ability to segment takes it a step further in terms of its
product offerings. If offers about 14 different names with about
1000 plus different varieties with a watch for literally everyone.


EXCLUSIVE PRODUCTS
Today TITAN holds the monopoly, pride to say that it owns
products both within the country and internationally which no one
offer. Its EDGE the slimmest watch in the world positions the
company’s product where the fashionable, the business class,
the innovative would got in for this EDGE since it being unique in
the world and the concept of UNIQUENESS is catching in any
business whether it being construction or clothing. In the country
it offers the Sonata which is the watch every player would dream
to have under his portfolio for the guarantee the quality the trust
the innovativeness every thing for as low as Rs.495 which is very
much acceptable in the Indian market. This watch can be sold to
the first time user, the price sensitive user, in the rural markets,
as a gift on occasions, a great time piece, simplicity with style
and value. These products designed with the view of monopoly
go a long way to outshine titan to its competitors.


CORE COMPETENCY
The TITAN core competency is on many fronts with Quality being
the top runner in the list. This is the area where a Titan beats
players hollow. This is for the lower segment watches like HMT
and Maxima. People when they buy a Titan they know it’s a
piece of quality and backed up by the Tata’s and the company’s
strong presence in India rather now the world the watch is one
which creates absolutely no doubt at all for its quality.


In the Higher priced segments Titan is famous for pioneering
innovations with innovations being in the field of Technology,
Style, Uniqueness, and having a market for every one to offer
from steel to gold to diamonds. The titan Edge a unique creation
in the world only owned by Titan, The Bandhan “The Pair” the
concept first started by Titan in Indian, The Nebula “Solid Gold
Watches” and a list of many more.
PRODUCT OFFERINGS FOR EACH MARKET
Titan Industries
High Income- Elite Group
For the Fashion Conscious
Low Income Group
Watch – fashion accessory
Impulse Purchase
Price Tag-No issue
(Nebula, World Watch)
Prefer Fashion
Price Does Matter
(Regalia, Raga, Classique)
Watch-time keeping device
Price is a critical Issue
(Sonata)
FEATURES THAT MAKE THE TITAN
CURVES AND CONTOURS
LEATHER STRAPS WITH OFFBEAT CONSTRUCTIONS AND
SHADES
ERGONOMIC INTERGRATION
FASHION SPORT IN SPIRIT
BOLDER AND CLEANER DIALS
ROMAN AND ARABICS FOR FASHION
STREAK PRINTED HANDS
POPULAR FUNCTIONS LIKE DATES, MULTI FUNCTIONS
AND CHRONOGRAPHS
GUARENTEE/ WARRANTY
BECOMING A PART OF THE 50 MILLION TITAN FAMILY
LOVE, TRUST AND RESPECT
A UNIQUE TIME PIECE IN STYLE OR QUALITY




The various brands of Titan and the price range in which they fall
are tabulated which follows.


Brand Price Range No. of Models (Approx)
Insignia Gents Rs.3750 to Rs.7750 98
Insignia Ladies Rs.1600 to Rs.7500 89
PSI2000 Gents Rs.1780 to Rs.7500 61
PSI2000 Ladies Rs.800 to Rs.4350 36
Regalia Gents Rs.1820 to Rs.7790 157
Regalia Ladies Rs.1725 to Rs.7770 168
Royale Gents Rs.960 to Rs.2810 123
Royale Ladies Rs.1120 to Rs.2830 91
Classique Gents Rs.850 to Rs.2450 268
Classique Ladies Rs.565 to Rs.2930 161
Spectra Gents Rs.1140 to to Rs.1830 57
Spectra Ladies Rs.650 to Rs.1410 22
Exacta Gents Rs.600 to Rs.1170 48
Exacta Ladies Rs.595 to Rs.800 25
Fast Track Gents Rs.550 to Rs.1430 57
Fast Track Ladies Rs.850 to Rs.1050 11
Technology Rs.2350 to Rs.8170 55
Raga Ladies Rs.1420 to Rs.4000 123
Nebula Gents Rs.8950 to Rs.13500 8
Nebula Ladies Rs.5950 to Rs.6950 4
Bandhan Rs.1675 to Rs.8085 34
Sonata Gents Rs.295 to Rs.1195 200
Sonata Ladies Rs.350 to Rs.1100 96
Sonata Pair Rs.1495 to Rs.2000 10
Dash Boys Rs.295 to Rs.395 15
Dash Girls Rs.250 to Rs.350
PRICING OBJECTIVES


Titan consists of watches that cater to various segments and to
various categories and so their pricing strategy is also in
accordance to their products and the features offered by them
cashing in on monopoly, unique features, outstanding
performance and the name TITAN.


Titan’s primary pricing objective is to kill Competition. Being an
Indian manufacture and infusing the advantages of the Indian
market with the dynamics of the western market the company
has carved itself a place difficult to achieve by foreign players.


The Objective for pricing are mixed with them being


Survival : Exacta, Spectra, Raga


Maximum Market Share – Sonata, World Watch


Market Skimming- Nebula, The Steel collection Insignia


Product Quality - Leadership – All watches in their respective
segments.


SURVIVAL – in case of some of the watches titan prices them
according to the features and the value delivered by them. The
exacta is a simple steel watch priced at around 600 to 1,100.
This unique combination of simplicity and good styling is to keep
the brand going with its offering being value for money.


MARKET SHARE – In India 70% of the sales in watches come
from the lower segment and hence by pricing the sonata at 350
onwards, backing it with a TATA guarantee no one can match
the value for the price of Rs.350. Titan prices its world watches
which are compared equal to an international Player Like Calvin
Klein where 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.


MARKET SKIMMING – In the Indian watch industry there is no
one offering pure gold watches, watches in pair, Jewellery
watches and this concept though exists with foreign competition
has just come to India. Though foreign competition has set in to
these concepts. TITAN offers these products with the Indian
touch in its designs, the products, the looks. Hence it is able to
skim the market with certain products in these ranges.


PRODUCT QULAITY – Quality and leadership are synonymous
to Titan. It seek to achieve both through their value for products
compared to their prices.


PRICING METHOD


MARK UP PRICING – Titan goes in for the mark up pricing
strategy. The Titan product carries a maximum retail price on it.
Now shops such as the world of titan – exclusive showrooms buy
directly from the dealer and hence the element of the middleman
is not there. A retailer in this category buys the watch for 17-18%
lesser than the MRP and hence he is able to get the 17% profit
margin on sales. It is up to the discretion of the retailer to offer
any discount on the MRP as it would affect what he gets in
return.


In the recent past Titan has also used the PERCEIVED VALUE
PRICING to its advantage. It is managing to successfully
convince the customer of the perceived value of the WORLD
WATCH using billboards and hoardings all around the city,
increasing buyers image, trust worthiness, innovation,
differentiation, value for the product. The hoardings go about to
say the international presence of an Indian Watch. Titan has also
in the past done so for its steel collection but using Commercial
Advertisements.


There is always a positive relationship between high prices, high
quality, and a high advertising budget. Titan too demonstrates
this feature. People are willing to pay the price for the quality and
titan spends 25 crores a year on advertising its products. This is
the highest spending done in the watch industry in India. More so
ever with high value and lower prices in case of the sonata, the
product is the heart throb in the watch industry.


PROMOTIONAL PRICING


Price Discounts and Allowances


Titan once a year comes out with a Price discount sale on the
MRP of the watches. Now this is entirely based on the stock
carried by the company at the year end. Allowances are more on
the company to the retailer where the retailer gets a special
allowance if the store picks up more than a certain quantity.


Warranties and Service Contracts
Titan promotes sales by adding a free warranty or service
contract to its watches and this is backed up by the name TATA
which is especially needed to convince and march ahead in the
lower segment market.


Product Line Pricing
The differences in the prices of the watches are justified by the
features, the style, and the differences which makes up each
watch. Titan prices all its watches in such a way that it maximizes
the total profit on the total mix.


Captive Product Pricing :
There is a general buzz in the market about titan being more
expensive than the rest in terms of servicing and the parts used
by TITAN. Titan watches, the lower end ones are cheap but the
straps and the battery with services is generally expensive
APPLICATION OF THE PRICING STRATEGY IN PRODUCTS


The main plank of the watch market is in the less-than-Rs.1,000
price category. Effectively, about 70 per cent of the sales in the
watch industry in India is in this category. None of the foreign
brands has a presence in this category. Only cheap Chinese
watches are present in this bracket and they compete with the
unorganized manufacturers, who are more expensive than them.
So, the unorganized sector is getting hit from the bottom by
Chinese products and at the top by the organized sector brands,
such as Sonata.


LOWER SEGMENT
The SONATA Brand which proudly emphasizes it to be a TATA
product is the watch for the common man and for the lower class
of the society. Pricing itself between Rs.300 – Rs.900 is Titan’s
fastest selling watch. This watch was launched to make titan
everybody’s company from the image of it being a Richman’s
company. Watches were offered for as low as Rs.300 with a
guarantee of 1 year and the styles were very appealing for the
price. Titan in this case has followed the Penetration policy.
Maxima Quartz is a competitor with similar offerings at Rs.350.
The lower end market being price sensitive, such pricing used to
drive away competition, making people buy the product to make
one trust what a Titan is all about was promptly why this low
price was offered. There are many in the stable such as the
Exacta, Spectra and Fast Track which is priced at what one
would pay for a simple but impressive watch. These watches
deliver value for money with Titan’s name and the innovation
done by the company to deliver better models at the same price.


THE 1000 PLUS SEGMENT
The TITAN market share is actually growing because of the
increased share that has been cornered in the Rs.1,000 – 2,000
range, which is the main strength for Titan plus a growing
contribution from people upgrading to Rs.1,500 range.


In the last 2 years TITAN has been introducing lot of products in
this range and have been growing in this segment. The Indian
watch market itself is expanding in the price bracket of greater-
than-Rs.2,500. This has been happening for the last couple of
years. The greater-than-Rs.2,500 price bracket is the highest
growth category, though it might be a small contributor to the
total watch market. This segment is growing because of the
interest that has been created by the international brands. Titan
was quick to launch the steel collection, the world watch and its
bandhan, insignia comes in these ranges.


Titan used its technological prowess as its unique selling point.
Priced in the Rs..4,500-Rs.5000 range, Titan targeted the brand
at the techno-savy consumer looking for a prestigious watch,
who would otherwise go in for a foreign brand.




`The WORLD WATCH TITAN’S’ latest offering to the Indian
market is a watch which is made in India but which shows off a
truly international look with styling rare to the Indian market. This
is a product which none of the Indian watch makers can offer as
of today but meets with competition from foreign players like
Swatch and Esprit. The watches taken out are priced between
Rs.2700 – Rs.5500. This range of pricing can be associated with
Skim the cream pricing used by titan. These watches
represented true international quality for an Indian price. The
same watch by Calvin Klein would cost the Indian customer
about 4 times a titan watch and hence he would prefer the titan
watch for the same value for lesser price. There has been
societal changes and a growing demand for these price watches
with the culture of the west coming in and the smart move to get
these watches to India. The Indian consumer is still a price
sensitive player even though it be a high value product.


The NEBULA is Titan’s price catch and is also watch selling in
top of the line. These solid gold watches gracefully and elegantly
shows off richness of the gold and the design makes it stand out
from a regular gold watches. Preferred on occasions of Diwali
and marriages it is priced between 10000 to 40000. Titan is able
to do so for the reason it is a pure gold watch and the same time
no one else in the market can offer these watches. A pure gold
watch for a festival or marriage would be 90% of the times
bought by titan.


Thus whatever may be the price titan carefully chooses it to see
that its product is able to survive, rise and become the product
leader and at times after skimming the market it attains price
leadership with cutting prices slightly or waiting for competition to
come in and promote the market. One final statement that can be
made is the objectives and the price go hand in hand as it should
always go.


Titan has tried to achieve a balance of cost focus and
differentiation focus. By this we mean that in the lower - end
(Popular segment) of the market, it seeks to achieve a cost
advantage by exploiting the differences in cost behavior. In the
mid-and higher–end (Mid Premium segment) of the market, it
seeks differentiation by providing better designs.


Titan firmly believes in providing total customer convenience in
shopping. This fact is justified by the location of their outlets and
the recent move by the company to go in for a major renovation
of all the WORLD OF TITAN show rooms updating it to modern
selling concepts, saving space, making it more attractive for the
customer, easy maintenance, a show room which stands out
from the rest. This has been done to the highest standards taking
care of even of the minute details.


Titan’s retail operations are a mix of company-owned and
franchisee outlets, with the idea being to ensure a dominant
presence in all market areas through different kinds of stores,
and to assure the availability of every Titan product. Titan has
concentrated on customer perspective, and have engineered the
entire chain to suit different customers.


Titan concentrates more on the customer theme. Earlier there
was no attempt in the retailing sector to entice customer to buy a
watch, but Titan has tried to bring the brand to the customer in an
appropriate setting. The company does this through its `World of
Titan’ show rooms.


The franchisee is a critical cog in Titan’s retail matrix. The
company organizes various programmes for franchisees, their
managers and customer relationships officers. These include
training workshops and seminars on market trends, visual
merchandising, store operations and maintenance, and customer
service initiative. However, the real challenge in retailing is
managing the franchisee network through processes and
systems that ensure a superior brand experience for every
customer. Franchisee relationship management is important
because of increasing competition, not only from the watch
business but also from other business in the retail industry.


Besides the franchisees and its own showrooms, Titan sells its
product through other outlets as well. Among them are the Time
Zone stores, which stock all the leading brands, and the Value
Mart outlets, which operate in Bangalore and Chennai and sell
surplus – to export watches at a discount.


For its many customers Titan has Tata Signet, a 1,36,000
member club that looks to build relationships through rewards,
regular discounts and special offers. Customers can also count
on a service-centre network that’s 550-strong and spread over
30-odd cities and towns across the country. The service centers
have been deliberately kept apart from Titan’s showrooms. The
business is different and the customer is in two different moods
at the two places Titan’s blueprint for the future including making
watches for international heavyweights such as YSL, Christian
Dior and Gucci. Titan believes there is huge potential at the
designer end of the market. The marketing investment is
however lower because “the brand is doing the marketing for
you”. Also on the anvil are specialty stores for niche customers,
and an expansion into product categories like sunglasses and
leather goods.


However, it is staying ahead of the competition that is the overall
priority: “We have to ensure Titan has the best wristwatch store
in any given city or town”. You don’t really have to watch this
space for confirmation on that count.


Titan stores can be broadly classified into 4 stores each having
its different features making TITAN attractive to everyone.




WORLD OF TITAN


To experience the touch of Titan, all you have to do is walk into
the stylish World of Titan showroom anywhere in India. Prepare
to be floored by the cool international ambience and the
staggering choice of over a 1000 watches and trendy
accessories. And because the customer has to be given special
treatment, we deliver your gifts, offer gift vouchers for your loved
ones, and what’s more, we invite you to join the Signet Club, our
loyalty programme with lots of special privileges. Come closer to
us at The World of Titan!


The world of Titan is the biggest among all stores of the company
and is an exclusive dealer in Titan watches. These showrooms
are generally about 1000-2000 sq.ft and have an extensive range
of watches. These showroom are the major revenue generators
of the company and every 5 years the showroom is fully done up
updating it to modern international standards.


TIME ZONE
Titan Industries brings together the country’s leading watch
brands under one roof, providing the customer with variety in
brands, looks and price ranges backed by efficient after-sales
service. Presenting Time Zones – the chain of trusted watch
shops. Conveniently located, these 1142 Time Zones across 89
towns offer you the complete watch shopping experience.


VALUE MART
These outlets sell surplus stocks of Titan watches at reduced
prices, offering fabulous value for money with the same warranty
as a regular, full-priced watch. These concepts in the recent past
have caught up with any product with it being total value for
money. However these shops would not be placed in the main
locations so as to interfere with the working of the 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.


SONATA STORE
If you’re looking for Sonata watch, visit these exclusive Sonata
outlets which also have an Authorised Service Centre for Sonata
& Titan brands. The idea of a Sonata store came upto cater to
the large scale demand for the watch and to open Titan to more
customers. More over these shops had full stocks of the watch in
demand whereas the others could afford to maintain only limited
stock.


THE EXPERIENCE OF SHOPPING IN THE WORLD OF TITA
A truly luxurious store which helps you relax and enter the world
of comfort, nirvana and soothes your entire body down, its breath
taking interiors with elegantly done up parts of the show room
make every one feel they are into something good. The collection
of 4000 plus watches with every model being different from the
other makes you just want more and more. The ever courteous
and well dressed staff of the showroom shows you around
catering to the perfect watch for your wrist. They go about
explaining the features of the watch with precise details.
Customer service reaches peaks at times with customers being
offered a drink while they shop and a place to sit and wait for
your partner while they take their sweet time to get a perfect
Titan time piece. Titan show rooms have a distinction from the
rest of them in the business with paintings of modern art and
marbo-granite flooring. Titan showrooms after revamping have
been made such as to promote the customer to look at watches
on his own rather than being assisted. The customer feels more
at ease and it saves placed and lesser sales staff are needed.
The customer can take a look at the entire range by walking
around the showroom than from the previous method of jumping
from counters. He sips his drink, relaxed strolls around to pick his
choice inviting him to choose not only from his budget but to what
he likes. The watches are displayed in cupboards than counters
with the sales staff behind them. This has lead to considerable
saving of space and more could be accommodated in lesser
space. To distinguish the high end Nebula, The Edge, and the
latest offering the World Watch, a separate counter exclusively
for these watches are maintained so that the customer knows the
names. Each cupboard has the brand name like Regalia, Sonata
written on its and it clearly identifies the product and its brand.


The customer shopping id redefined to suit him in a variety of
ways which not only makes him to want to buy more but also to
come back more frequently and to catch the customer to buy a
Titan than the other brands, Titan when it spends so much on its
product development, its showrooms, the image of the brand
support it very well to enhance the brand image.
C & F Agent
DISTRIBUTION NETWORK
World of Titan (WOT)
Direct Dealers (DD)
Re-Dsitribution Stockist (RS)
Time Zone & Non-traditional Outlets
Titan – 1 Titan – 3 Titan & Titan &
Sonata – 1 Sonata – 4 Sonata – 9 Sonata – 3


PROMOTION


We want people to hear one voice, rather than a cacophony


Of sounds”. – The new age TATA’s


For the past few months, the one-point agenda of the Tata group
has been to bring about synergy among its individual companies,
and to promote Tata as a single, unified, central brand. “The
Tata’s have realized that many of their companies are
addressing the same target clientele and share a common
customer base. So it makes sound business sense to synergies
the marketing efforts for these companies.


The main reason behind Tata doing this was the results of a
survey which revealed that: “the Tata brand is like sameone who
is established, but not modern, large but not focused, profitable
but not in top gear, a warm person but not efficient, Tata group is
so large and fragmented that the central brand gets lost in the
vastness of the empire. As a result, the top-of-the-mind recall of
the Tata brand-pegged at Rs.10,000 crore – is not so strong
amongst its various products, be it Taj hotels, Titan watches or
Westside garments.


Tata has come to realize that their biggest asset is their name
TATA and not their factories and hence like the value of the
assets the value of a brand can also come down and so is the
name coming down, now the Tata Brand Equity and Business
Promotion Agreement states that – advertisements and
commercials by any Tata company must carry the TATA mark.


The Tata’s may be a 102-year-old company, but they want to be
seen as a young, contemporary, new, entity”,. Besides evolving a
central brand for all companies, the Tata group has also
redefined its objectives and laid down three key themes that
would guide the philosophy of the “new Tatas” – global, futuristic
and modern. The target audience? Generation next.


The Tata Open


The battle ground for this new strategy of synergy started with
the Tata Open (India’s biggest tennis tournament) held every
year in December – January. The tata’s have paid Rs.10 crore
for the three-year contract. For the Tatas themselves, it meant
more than just sponsorship – it signaled the beginning of a new
era in the Tata regime.


One of the main reasons for the sponsor of this event is “Global
event like these provide a great opportunity to corporates to
satisfy their marketing objectives and cross-promote their
brands”,


Creative Advertising
Titan introduced a contest on cartoonnetworkindia.com which
invites children to use their creativity and imagination to design a
watch. The prize –winning design was launched as a new watch
in the Summer 2002 collection and the winner received the first
watch of this collection. The Top 5 won a Dash! Watch each and
all participants were awarded certificates.


Type Of Advertising
Titan believes in making its ads clean, well made, touch an
emotional chord, convey the message, have catchy jungles and
make an impact. The use of celebrities, superstars is not there.
These only ad to the expense packet of the company and
companies only catering to the niche market of the upper cream
like a Rolex or an Omega afford these. Majority of the people are
rational buyers and very rarely get carried away by celebrity
endorsements. They also know that they will eventually end up
paying for such celebrity endorsement. Rich kids, Young DINKS
(Double income, no kids) and Yuppies may fall for such ads but
not ordinary people. At the end of the day, if your product or
service is not good enough or does not offer value for money,
your advertising will get no where.




Promotion On Occasions
Titan is one of the companies which formally believes in the
policy of promotion the product based on the occasions of the
calendar. With every occasion having a special memory attached
to it exploits this memory aspect and pushes its products. Not
only the promotion of the existing products is done on these
occasions but new products which would sell like hot cakes are
launched for the sole reason it creates an impact in the minds of
customers and appeals to the occasion thus making it even more
special. In this context TITAN launched the THE BIG HEART
OFFER FROM TITAN FASTRACK where fashionable jewellery
was a gift on purchase of any Fastrack watch. This jewellery set
of a pendant and earrings is contemporary and unique in form
and material, with steel and acrylic being used together for
stunning effect. This was launched for Valentines day where the
name scheme, The watch being advertised for (Fast track) as it
pertains to the youth, jewellery (for the youth), valentines day
(more so for the youth) and adding to the excitement is A
LIMITED EDITION FASTRACK VALENTINE'S COLLECTION
that is being made available in four designs. Only 300 watches of
each design will be on sale across cities during this fortnight.
These watches are designed is steel with leather straps in the
colors of the season – black, red and silver. The dials are in
matched colors with heart patterns, making the collection a true
blend of fashion and romance. "Young couples are looking for
new ways to discover their relationships and this set of special
watches and matching jewellery from Fastrack, gives them just
the reason to do so. The `promotion was in Mumbai, Delhi, Pune
and Bangalore from Feb 1–14.


Musical Advertisements – Subtle Advertisements
With changes coming up in the way one advertises Titan has
changed too from the trend of constantly bombarding the
consumer with the name of advertisements to subtle advertising.
Through this titan is reinforcing just the name Titan and not any
one of its products. The tune used by titan is Wolfgang Amadeus
Mozart's 24th symphony as its signature tune. In the recent trend
of advertising Titan uses only music to get its message across,
with the company name making only a brief appearance.


Segmentation
Titan started its activity of marketing under the name TITAN as a
brand not promoting on basis of the models it had. Gradually
when markets became more demanding it felt that the brand
needed to be segmented. This was in the years of 96 and
onwards titan segmented because it felt the need that people
know about different brands and the target audience was easy to
identify. This was because titan was just entering the market and
needed to meet specific people for their needs. For eg, it went on
with the regalia, sonata brand which met different needs of
different sets of people in the market. Thus titan got known
among every one in the market cause they knew what was in
store for them from the titan's stable rather than just knowing that
titan manufactures watches.


50 Million Concept
Titan achieved the 50 million mark and hence it had a great
slogan to blow the trumpet loud. The 50 million concept signifies
the concept that 50 million happy faces who not only own but a
sense of love, care and prestige, associated with what the titan
has given them and will be giving them. This was aimed at all the
categories with the smiling faces of the common man. Seeing
this one gets the message of 50 million watches, the landmark
titan has achieved, which means the name has metal in it and is
something which can be trusted at the same time the emotions
portrayed in the ad make emotions run high in the blood and one
wants to be associated with the brand rather than buying some
other watch.


Strategic Implementations
Implementation is an integral part of strategy. Strategy is not just
a set of ideas removed from reality. It becomes visible only when
you implement it. When Titan entered Indian jewellery market it
signaled an opportunity for an organized sector. The customer
was moving towards branded goods in other segments. The
concept of brands was not familiar with the Indian customer.
Titan did the process of creating brands in the minds of
customer. A consumer goes to Tanishq because she believes
the brand stands for purity and good design. This insight, along
with the increasing mobility of Indian customers, is helping
Tanishq mature into a national jeweller.


Focus
The strategy that Titan adopted in recent years is that of focus. It
has segmented the market into different need groups and
tailored its strategy to the exclusion of others. By optimizing its
strategy for the target segments, it seeks to achieve a
competitive advantage in its target segments. Market
segmentation is concerned with identifying differences in the
buyer behaviour, allowing a firm to match its capabilities with
distinctive products and related marketing programs. Market
segmentation tends to focus on the marketing activities in the
value chain in which Titan commands a very formidable position.
This also allows Titan to find out how it should serve each
segment.


Strategic implementation
Companies must have robust processes to develop strategies
irrespective of the personality of the CEO. `THE WORLD OF
TITAN’ our exclusive showrooms for watches are our assets. As
retail formats change the role of the showrooms may also
change. Initiatives need to be prioritized. Some of the
showrooms have been done up last year. However we must start
today. Pragmatism has also set in perhaps because of the
downturn. The depth to Equity ratio in titan is high where Titan
faces a financial risk and hence their current initiatives involve
any thing which do not require much financing.


Banners-Hoardings
It is not difficult to see TITAN hoardings displaying its
prominence in the streets of an urban city. The prime locations,
next to dealer outlets hoardings with attractive, clear, simple but
catchy slogans are put up and a particular product or some times
the name TITAN in general. One of the hoarding promotes the
World Watch where the hoarding states “MADE IN INDIA”
“CHERISHED IN GREECE”. Like this many catchy ones are
there. Older ones state “THE PERFECT VALENTINE GIFT” was
released a month before valentine’s day.


Sponsorship
Titan is involved in sponsoring major events, culturals and other
fests in colleges, schools and nation wide happenings. This way
of promotion gives it the extra mileage to increase its data base
by directly tapping the customers to convince them about a
TITAN.


Revamping the titan Brand Image
Titan after all its marketing efforts in the market is going back to
step one where it started when its first marketing activity
concentrated on titan name rather than the different watches it
offered. Then came the segmentation of the brand where every
different product was advertised individually that is every product
got its own identity. Titan felt that the segmentations was high
and the brands have got their own name rather than titan being
associated with them, so titan has gone back to revamp the
brand image and market this product on the name titan. For this
all its ads from September 2003 onwards would focus on titan as
a name, this includes the showrooms are being re modeled to
suit the strategy. The focus now is on titan rather than fast track
and regalia the logo would promote TITAN. The policy is in
accordance with the advertisement released on television which
simply and subtly promotes TITAN.


Seasonality


One major way of promoting the titan product is through
seasons. To understand a little more about it for Example. During
a wedding season or for Diwali Titan promotes Nebula, Bandhan
because there is demand for the product. Gold watches and
pairs are the likes of a wedding occasion., similarly the fast track
brand is promoted in the months of June – August when schools
and colleges re open and since these watches cater to the
segments of youth, these watches get the extra mileage on sales
if promoted during these seasons.
Gifting Concept


Titan initially started of as a brand which was associated with
gifting and relations. Today also titan is associated with the
image it stated off with. The fight concept sells well for people
have come to associate titan with love, care and makes emotions
run high. More so ever the product is that of quality and style.
The titan Nebula and Bandhan would fall more aptly in this
category and the Dash is promoted with the gifting concept in
mind because a parent gifts the child a watch.


Strategic Flexibility


Keeping your options open means building flexibility in the
strategy. For instance in 1998 – 99 Titan announced its intention
to become a global player, to address the multiple segments
emerging in the Indian market through multiple brands and sub
brands, and to offer terrific value for money through differentiated
design, retailing and brand image. The company addressed
multiple segments through brands such as sonata, fast track,
Raga etc. it realized that as the market became more competitive
multiple brands would be the best way to address the needs of
the market. When you have multiple brands you are more flexible
and less vulnerable. Titan has gone in for multiple brands.
Promotion Through Contests


TITAN ties up with various magazines, televisions, outlets where
TITAN gifts could be own for winning the contest. One of them is
THE WEEK magazine where one could win TITAN watches and
also many magazines offer many watches depending upon their
needs. TITAN also offers bulk discounts to players who pick up in
lots offering it as a gift to schemes and to companies for their
employees.


Promotion Through Television Programs


TITAN sponsors a program or a serial or ties u with for example
a show like MTV TIMECHECK done by ESPRIT, time wear.
Such promotion done as an exclusive sponsor and targeted at a
particular segment. For example, if a youth program then fast
Track would be focused on and on CNBC or CNN business
programs the Steel or the World watch.
CONCLUSION


In the Journey from being a watch manufacturing unit to the
watch leader in the industry the journey to the 50 million watch
mark has just shown the METAL of which Titan is made of.


In this MEMORABLE TRANSFORMATION Titan has at every
step taken FULL `N’ FULL care of each person that entered its
50 MILLION STRONG FAMILY which has made it possible to be
what it is today.


TITAN COULD BE CALLED BY VARIOUS NAMES.


“The Company that brought Quartz watches in India”.


“Everyone’s Brand yet different products to different people”


“The company that made watches a fashion statement than a
time piece”


And many more…


Titan has proved its true identity taking the Indian name to
foreign soil and shining on soil not its own, the respect the name
commands in the watch industry has been achieved in a very
short time.
50,000,000
& STILL GOING STRONG
WELL DONE TITAN
BIBLIOGRAPHY


WEB SITES


www.titanwold.com
www.tata.com/titan
www.google.com
www.indianfoline.com
www.thehindu.com
www.economictimes.com
BOOKS REFERED


MARKETING MANAGEMENT – PHILIP KOTLER
MARKETING BASICS - RAJAN SAXENA
ON SITE INFORMATION


THE WORLD OF TITAN SHOWROOMS
INTERACTIVE SESSIONS WITH MS.NARISHIMA AT THE
REGIONAL OFFICE AND WITH THE PROPRIETOR OF “THE
WORLD OF TITAN” - USMAN ROAD MR.SURESH
MAHBOOBANI

				
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