TITAN by nuhman10

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									            MARKETING ASSIGNMENT


        PERSONAL LEARNING PAPER- TITAN




Submitted By:

Priya Mariam Simon
                                        TITAN

Introduction

        Titan is the market leader in the Indian watch industry. Titan had revolutionized
the watch market with its emphasis on style and international quality. It had created
strong brand equity in India and some overseas market. It has also established a strong
presence in the area of branded gold jewellery. Titan with its top management team and
the backing of the TATAs has achieved one of the leading marketing companies.

Company History

       Titan was set up in July 1984, under the leadership of Xerxes Desai, with its
corporate office in Bangalore. When it entered the market, HMT was the market leader.
Titan went ahead with its plan to make the quartz watches. The company made only a
handful ordinary looking quartz watches and had neglected styling as a whole. Titan
believed that the Indian consumers desire to own a good looking watch had been totally
ignored.

       Titan decided to grow the market by encouraging ownership of multiple watches
thereby stimulating the purchase of replacement watches and targeting under penetrated
segments like women and first time buyers.

       Titan looked at new business opportunities. Titan realized that its watches alone
might not be able to price open the global market. The Company’s diversification into
jewellery was a good gamble. Tanishq was branded and had been set up as an export-
oriented unit to complement the watches division. The company started the manufacture
of jewellery and jewellery watches in 1994. Titan decided to focus on the domestic
market.

        By the early 2000’s Titan’s share of the legal watch market had dropped. Despite
these setbacks, Titan started reworking its strategy, making several changes in the
product and product mix. In 2002, Titan announced plan to regain its market share. The
company also began extension forays into silverware, leather accessories and sunglasses.
Titan also looked at opportunities in instrumentation, automobile and aerospace
industries where it could leverage its precision engineering skills.

Core Competency
        Titan’s core competency is Quality delivered at each purchase and this is for the
lower segment watches like HMT and Maxima. When people buy a Titan they know it’s
a piece of quality and is backed by the Tata’s. Titan’s innovations in the field of
technology, style, uniqueness and they have a market from steel to gold to diamonds.
Titan Edge is a unique creation in the world, owned by Titan.
Marketing-Watches

        The quartz watch was an entirely new product for India. Titan decided that it
would change the way watches were marketed in the country. Titan’s marketing strategy
had five main bases: a product of international quality, Indian designs, competitive
prices, intensive advertising and promotion, and specialized retail shops to control the
presentation.

        Titan’s ambitious marketing program aimed at positioning its watches as high
quality fashionable products available in clean and comfortable surroundings, priced
higher than the other watches. Titan decided not to compete directly with mechanical
watches from HMT. They put in place an integrated marketing mix consisting of
attractive designs, high quality products, sufficient inventory, a logistical support system
and a well timed promotional campaign.

Distribution

       Titan’s watches were sold in thousands of stores including company showrooms
and exclusive stores. In addition to this they opened hundreds of service centres to repair
watches, replace batteries or change straps.

        Titan’s approach to distribution marked a different example. They opted to find a
way around wholesalers, reaching out to the retail channels directly. Titan’s shops were
easily recognizable and located in the most fashionable shopping centres. Titan then
started a scheme of converting some of the outlets to Titan shops. These shops acted as
Titan dealers, though they stocked other brands.

Segmentation, Targeting and Positioning

        Titan first launched its quartz range with heavy advertising. The first
advertisement described the titan quartz as the international watch that could be bought in
Indian rupees. Later campaigns also positioned the watch as a gift item, with
advertisements saying: The next time your husband wants to buy you a saree ask him for
a Titan watch. This campaign was an enormous success.

        Music became an essential part of Titan’s advertisements. The advertisements
featured two or more people- parents, spouses, siblings coming for specific occasions. In
the early 2000s, Titan realized it would have to use other ways to motivate people to buy
their watches.

                Segmentation became an important issue as their operations expanded.
Titan believed that different brands have to be created for the different segments. Titan
has segmented the watch market and identified clearly the needs of each group. Titan has
segmented the market on the basis of the following variables: Demographic (age and
social class), Psycho graphic (lifestyle and personality), Behavioural (benefits and
occasions, Geographical (region), Targeting segments and User positioning. After
carrying out an in depth market study, Titan identified three different specific 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. They were also willing to buy a watch on
               impulse. The price tag did not matter to this segment. The price range
               between Rs.20, 000 and Rs.1 lakh.
            The next segmented consisted of consumers who preferred some fashion
               in their watches but to them price did matter. The price range between
               Rs.500 and 700.
            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. The price range between Rs.350 and 500.

        FasTrack, Raga, Sonata, Xylys, Nebula and Flip are sub-brands within Titan
that are aimed at the youth, men, women and children Sonata is the value for money
watch brand from Titan industries. It is targeted at consumers seeking durability and
value with a clear positioning of “No compromise watch”.

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

       Titan targeted its Raga watches at women in the premium segment which gave
them the feeling of intimacy. The company realized that more women were wearing
watches for functions. It offered slimmed down and sleeker watches for women. The
Raga range remained for more special reasons, like marriages or parties.

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

       Nebula-precious jewellery watches from Titan. It is a collection of intricately
carved designs for women inspired by floral patterns and these watches are engraved with
beautiful patterns in gold and precious stones. This is for the premium segment.

       Titan Edge and Titan Steel are the mainstream Titan products which enhance the
brands image of leadership, innovation and pride. Titan is considered to have one of the
successful segmentation and targeting.

       Titan adopted a strategy of focus. Titan tries to achieve competitive advantage by
optimizing its strategy in the different market segments.
Pricing Strategy

        Titan prices according to the features and value delivered. They get the maximum
market share from Sonata. Since there is no one offering pure gold watches and jewellary
watches so it is able to skim the market with their distinct products. Titan comes out
every year with a price discount sale on watches. The differences in the prices are
justified with its important features and style. They are trying to maximize their profits
with the help of different product mix.

Promotion

       Titan ties up with various magazines, television and outlets where Titan watches
were given as gifts for winning a particular contest. Another of promoting the Titan
watches is through seasons. For example gold watches are preferred for a wedding
occasion. Titan is directly tapping the customers by sponsoring major events, culturals
and other fests in colleges, schools and other happenings. Titan introduced a contest on
cartoonnetworkindia.com which invites children to use their creativity and imagination to
design a watch. The best design was launched as the new summer collection and also the
received the first watch of that collection.

Conclusion

         Titan chooses to see that its product can survive, rise and be the product leader.
They have achieved a balance between cost focus and differentiation focus. They help in
providing customers convenience in their shopping. Titan has its shop in almost all
localities so it’s feasible for the customers to walk in to the Titan shops at any time
irrespective to the distance. Titan provides the best quality watches at affordable price
and design. This is the most salient feature of Titan. Titan concentrates on all economic
class of customers there by achieving maximum customer base. Also its advertising
strategy is so brilliant that it captures the minds of customers thereby imparting an
emotional thirst and motivating them to buy Titan brands.



REFERENCES

Marketing Management 12e South Asian Perspective- Philip Kotler and et al

www.titanworld.com

http://www.tata.com/titan/articles/20051011_timing.htm

http://www.icmrindia.org/casestudies/catalogue/Marketing1/MKTA013.htm

http://analyticsbhups.blogspot.com/2007/07/brand-dilution-is-as-important-as-brand.html

								
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