EXECUTIVE SUMMARY

Today, a wristwatch is considered as much of a status symbol as a device to tell time. In an

age when cell phones and digital pagers display tiny quartz clocks, the mechanical
wristwatch has slowly become less of an object of function and more a piece of modern
culture. The Indian watch industry began in the year 1961 with the commissioning of the
watch division of HMT. The first watch model manufactured by HMT was the Janata model
in the year 1962. HMT was the leader in the watch market till the Tata’s formed Titan
Watches in association with Tamil Nadu Industrial Development Corporation in the year
1987. Titan was the first company to launch quartz watches in India. The Indian watch
market is today of 40 million units, out of which 60% is in the unorganized sector in which
the maximum number of watches are sold are below Rs.300. Quartz watches form two third
of the organized sector and the rest is split between mechanical and digital watches. Even in
the organized sector, three fourth of the sales by volume comes from watches that are priced
below Rs.1000.

Watch is one of the consumer durables whose replacement rate is very high. The
replacement rate of watch is 33.8 % (Source: India market demographics report). This is
also since the estimated scrap rate of wrist watches is 7.8%, which is applicable after 6 years
(Source: India market demographics report). So, due to high scrap rate, outdated models,
and the shift from the mechanical watches to the quartz watches it is causing a very high
replacement demand for watches. This along with the low penetration level represents the
untapped market potential for watches in India.

After liberalization of Indian economy in 1992 many international players have entered the
Indian Watch market posing as competitive threat to the Indian companies.

Lately Titan has tried to reposition its Brand to capture more segments of the watch
market retaining the already served market segment. The strategy has been studied in deep
during the project. Many brands and companies are constantly reinvigorating their
businesses and positioning them for growth. There is a constant need to innovate,
reinvigorate, update, recalibrate, or just simply fend off the competition to better explain
"why buy me."
 Brand positioning creates a specific place in the market for the brand and product
offerings. It reaches a certain type of consumers and delivers benefits that meet the needs of
several key target groups and user.

The actual approach of a company or brand's positioning in the marketplace depends

on how it communicates the benefits and product attributes to consumers and users. As a
result, the brand positioning of a company and/or product seeks to further distance itself
from competitors based on a host of items, but most notably on five key issues: Price,
Quality, Product Attributes, Distribution, and Usage Occasions.

In recent times, consumerism has undergone a sea change. Consumers today are well
informed about the products, as compared to earlier times. Hence, the marketplace has
become customer centric. Recognizing the importance of the customers in the business
structure, companies have started effecting brand repositioning exercises on a regular basis.

In the recent times, a major brand repositioning exercise has been planned by Titan
Industries Ltd. in order to provide more to its customers. The company has first gone for
change in logo and tagline. Then the communication strategy has been revamped to convey
its new position. The present study consists of reviewing the positioning strategies of Titan
watches. An analysis of repositioning strategies of Titan also forms part of the study. The
main objective of the study is to find out whether the loyal consumers of titan watches are
aware of the new positioning strategies of the company and how they perceive them.

Primary and secondary sources of data have been made use of in the study. The first
part of the project, i.e., analysis of brand repositioning strategies of Titan Company has been
completed on the basis of secondary data. For this purpose, internet, journals, books,
magazines and so on have been made use of. The second part of the project comprises of
conducting a survey with the help of questionnaire. The survey is proposed to be conducted
on a sample of 50 consumers who are loyal to Titan Company, selected through
convenience sampling technique. The questionnaire consists of appropriate mix of open
ended and closed ended questions. The data is presented using pie charts and bar diagrams.
The conclusion part of the report would provide an insight of consumer awareness regarding
brand repositioning strategies and their effectiveness in revamping the brand, Titan
 CHAPTER 4:

TITAN WATCHES: BRAND POSITIONING STRATEGIES

4.1 Overall strategies:

Since its introduction, Titan has been positioned as a premium brand, providing high
quality products. With its numerous sub-brands catering to different segments, the challenge
that Titan faces is to create a strong brand image. It follows different positioning strategies;
these strategies can also be analyzed as given below:

4.2 Attribute Positioning Strategies:

When the company launched its products, it was the first to bring quartz watches to the
Indian market. The company successfully leveraged this to penetrate the market and gain
13.a market share. Raga, Classique and Regalia come under this strategy. Classique has
been positioned as elegant corporate wear that leaves a quiet, but definite impression and
fusion of function and sophistication. Power dressing now has a new weapon! As Magic in
gold and bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has
been differentiated and positioned as exclusive watches for women. The Raga and Silver
Raga collection is elegant, delicate and feminine with each piece being truly unique.

4.3 User Positioning Strategies:

Titan caters to several user groups- children (the Dash), sportspersons and adventurers
(PSI4000 and Fast track range). The Fast track range is seen as being contemporary, sturdy
and reliable. The advertising, packaging and merchandising of this range is young, vibrant
and „cool‟ (the ad line says “Cool watches by Titan”)
 4.5 Benefit Positioning Strategies:

The Fast track Digital range offers the customer a functional watch that is also attractive.
The digital watch has a “techno-geek” image, but Titan seeks to differentiate its offering on
the basis of superior style and attractiveness.

4.6 Competitor positioning Strategies:

With the entry of several foreign watchmakers into the market, Titan had to counter the
threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, and
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.

4.7 Quality & Price Positioning Strategies:

In the overseas market, especially in Europe where it is competing with Swiss and
Japanese watches, it is positioning itself as „value- for- money‟: reasonably priced (less than
Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian
market, Sonata is a perfect example of Price positioning, titan came up with this segment
when it was facing heavy competition from lower end segment.
 CHAPTER5:
TITAN WATCHES: BRAND REPOSITIONING STRATEGIES

5.1 New Logo & Tagline – “Be More‟‟

Titan Industries decided to revamp its flagship watch brand, Titan, with the intention of
making it more youthful and relevant to the changing times. The brand, launched more than
24 years ago, has undergone a major repositioning exercise only once before – five years
ago, when Hindi film actor Aamir Khan was appointed brand ambassador. What followed
later was the „What‟s Your Style?‟ campaign, which tried to increase watch consumption
per person, by suggesting the use of different watches for different occasions.

Beyond Style
Now, Titan wants to move from style statements to personality statements. According to
Harish Bhatt, chief operating officer, watches, Titan Industries, a watch ought to denote the
wearer‟s mood and personality. “With the explosion of options in a person‟s life, our core
consumer is changing. And to keep up with them, Titan has evolved too,” he says. On the
adoption of „Be More‟, Bhatt says that that statement is supposed to denote the aspirations
of consumers to make more of their lives and be whatever they want to be. “The watch
allows for such imaginative travels,” he says.

Titan‟s agency, Ogilvy India, has devised a campaign featuring Aamir Khan that encourages
people to find a new strand of their personality every day. It all started with a logo change a
few months ago (the same font in a red and white combination), followed by a campaign
rolled out now.

The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster, stating, „Be
born every day‟. Next, he is seen chasing the shadow of an aircraft on a beach, then, sitting
beside a truck driver, in the middle of nowhere, with a trail of chassis trucks behind him.
Here, he asks the viewers to try the adventure of getting off at an unknown station, of
exploring unknown lands.
As he crashes his vehicle while go-karting, Khan waves to the others around him, while his
voiceover explains the importance of making one‟s own mistakes. Further on, he talks of
not making your passport photos last longer than three months – you need to constantly
reinvent yourself and adopt a new look every day (cut to shots of Khan‟s varied hairstyles
and looks in his movies, shown in an ambient way through posters and T-shirts).

“Shock your reflection!” says Khan, as we see him with funny accessories framing his face.
The next vignette has him practicing meditation while slyly checking out a girl walking past
(„Explore‟). Cut to a shot of children, with Khan explaining how we aspired to be different
people as kids – “let‟s revive that aspiration today”. Wearing amour (sword and all), Khan
Reiterates, „Be Born, Every Day. Titan. Be More‟.

Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, “„Be More‟
pushes people to live many lives in one. We want to trigger people into questioning, „Why
should we be single minded and boring? Time to be multi-faceted, just like Titan!‟”

Khan fit the bill as Ogilvy borrowed from his own life and work and his need to constantly
experiment and reinvent himself. “Be it Mangal Pandey or Lagaan or Dil Chahta Hai, Aamir
always manages to look different in every role,” explains Mehra. “So we showed him doing
things that were spontaneous, such as exploring places or go-karting.” The idea, simply put,
is to live life to the fullest – with Titan being the instrument of such expressive liberation.

5.2 The Ad Making – Aamir Khan:

The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey‟s third
Titan film, the earlier two involved Khan and his assistant, played by the late Vihang Nayak.
The first film had Khan confused about which watch to match with each outfit he‟s packing
before a trip, while the second film showed him delighting a girl in a mall with a watch.
“This third film has a much stronger script than those two,” shrugs Pandey. “It‟s about
bringing a mindset onto the screen with a better celeb-brand marriage.”
Shot entirely in Chennai, the film has been shot in a way that suggests that multiple
locations were used for the shoot, as opposed to one city. “We had fast paced shots to spread
the look of the film,” says Pandey. When asked why Chennai, he quips, “Because it was
Raining in Mumbai then!”
Several layers were added to the film. To show the aspirations of children, a young girl was
shown staring at an object and, later in the frame, you see the object is a butterfly – the girl
wants to fly.
“Kids are freer in their thinking than adults and we hope this has been portrayed,” Pandey
says. Even the last frame of the ad, which has Khan dressed as a mock warrior (with an
impromptu utensil serving as his helmet), was made to look like the man had made use of
things lying nearby in a spontaneous way.

5.3 Titan Raga Signs Katrina Kaif As Brand Ambassador 2012:

September 20th, 2011:

Aiming to widen its appeal amongst Indian women, Titan, India‟s most preferred
watch brand, today announced their association with Bollywood‟s most beautiful and
charming Diva, Katrina Kaif. Ms. Kaif has been signed as the brand ambassador for their
exclusive women‟s watch brand, Titan Raga.

Incepted in the year 1992, Titan Raga has won the hearts of millions. Designed
exclusively for women, these exquisite and elegant timepieces perfectly capture the essence
of beauty, femininity and sensuality. The brand has grown over a period of time in sync with
the evolving tastes of the contemporary Indian woman.

Mr. Ajoy Chawla commenting on the brand said, “Driven by continuous launch of
new designs and collections, Raga has witnessed a 27% CAGR in the last 5 years and will
be
Rs.400 crore brands this year! However, the potential in the women‟s segment is still huge
as watch penetration even amongst SEC A/B women is still very low. A brand ambassador
will help to make the watch a desirable accessory amongst women.”

Further talking on their association with Katrina, Mr. Chawla said, “Titan Raga
stands for beauty, femininity and sensuous self expression. While embodying these core
values, Katrina also symbolizes the changing face of the successful, graceful and
contemporary Indian woman.”

Talking about her association with the brand Katrina Kaif said, “(Smiles) Titan needs no
introduction, this vibrant and „up-to-the-minute‟ brand has been touching our daily lives in
the most beautiful way possible. It gives me immense pleasure and satisfaction to be
associated with the most popular and only women‟s watch brand in the country. Besides
being a timekeeper that helps me keep up with my busy schedules, it also adds to my style
quotient. I feel watch designs from Titan Raga are truly exclusive and contemporary. I am
really looking forward to the exciting days ahead with the iconic brand “Raga”, which
embodies beauty, sensuality and femininity with great creativity.”

As a brand ambassador of Titan Raga, the renowned actress will play a key role in
shaping brand communication on television, print, outdoor and other media.

5.4 New Collections and Designs:

1. Sonata‟s sub-brand:
 Sonata has launched the Yuva 2008 collection, a series of colourful watches.
They are available in both casual and formal styles to complement the young, new look for
college or office wear.
The collection has watches for both men and women at price s starting at Rs 645.
They are available in both gold and steel looks, with both metal and leather straps. Sonata,
the watch brand from the Tata‟s, launched the Super Fiber, targeted at the sub-Rs 500
market in urban, semi-urban and rural India.

The watches have been designed primarily for youth in the 16-30 age group, and will be
available in a price range of Rs 275 to Rs 550. The tag line for this sub-brand is „Super
Strong, Super Style.‟
The company announced 360-degree marketing campaign for the new offerings. It also
unveiled its TV commercial featuring Indian ODI captain Mahendra Sing Dhoni, “in a
brand new avatar”.

2. Titan Raga – Hazel Collection

Titan Raga has launched the Hazel collection, inspired by the hues of nature. Priced
between Rs 2,195 and Rs 4,000, this range comprises five styles with versions in gold, steel
and bi-metal finish. They are available as bracelets and kadas with textured or patterned
look and mother-of-pearl dials.

3. Octane
Titan has launched the Octane collection of chronograph, multifunction and retrograde
watches for the urban man. The range is described as blending style and technology. The
collection has over 35 styles and is priced between Rs. 5,000 and Rs 7,500.

4. Nebula Celeste
It is a limited edition collection of jewellery timepieces. They are crafted in 18k white and
yellow gold. Prices range from Rs. 6 lakh to Rs. 12 lakhs.

5. Raga Crystals
Titan Industries Ltd has unveiled its new Raga Crystals collection of watches in Kerala. The
two new watches, called Venus and Fairy Dust, are available in yellow metal and bi-metal
versions. Venus is priced at Rs 4,450 and Fairy Dust at Rs 4,750.

6. Titan‟s Stambha
A new ladies Heritage wrist watch „Stambha‟ signifying fame, prosperity and good luck
was unveiled as part of Heritage collection. Mr.Vijesh Rajan, Regional Sales Manager
(South), launching the watch collection, said that plans are on the anvil to launch one new
collection every month, reflecting the 3000-year old art and cultural history of the country.

A sale of around 7,500 watches has been fixed as a target for this fina ncial year in the
Heritage collection, he added. The prices in the collection range between Rs 5,000 and Rs
10,000.

7. Nebula Zeus
It is a mechanical automatic watch in solid gold for men. Priced at Rs.1, 10,000, the limited
edition watch (500 pieces) harks back to an older era of luxury and romance.

The Nebula Zeus watch has been crafted using Swiss made mechanical automatic
movement with gold finish and a sapphire crystal back cover. Other features include an
instant start, a second hand stop device for accurate time setting; 42 hours reserve powers
and auto wind convenience. The watch collection was launched by singer and actor,
Vasundhara Das.

8. Raga Shimmer
It comprises of a collection of exquisitely designed studded watches that complement both
Indian-wear as well as Western-wear. Priced between Rs 2,995 and Rs 4,495, the new
collection comprises watches in gold, steel and bi-metal finishes.

9. Raga Diva
An exquisite range of watches for women in the Kerala market. Inspired by traditional
Kundan work, this collection has been rendered in a delightfully contemporary form. It is
priced between Rs 4,000 and Rs 10,000.

10. Titan Nebula – Duet Collection

Titan Nebula, the premium 18K gold watch brand from Titan, today launched the Duet
collection – three pairs of specially crafted gold watches for the wedding season.The most
premium collection for this wedding season was unveiled by popular actor Gul Panag.

OTHER STRATEGIES

· Titan is also trying to reach new customer segments. They are now trying to target all
adults in socio economic classes A&B.
· Titan is also looking at innovative retail strategies and planned to launch ten innovative
product collections soon.

5.5 Market share of the Competitor in Domestic Market:

Competitor in Domestic Market Market Share

HMT 19%
Maxima 13%
Rado 7%
Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides
watches for all segments, like from low-cost Sonata for first time user, Fast-track for the
trendy young, Dash for the kids, and the higher priced Regalia and Nebula to the premium
segment customer.

The Indian watch market is estimated at 25 million watches a year, where the
domestic sale is 6 million watches per annum. The rural segment is the diverse market in the
present scenario. The key success story of Titan is capturing the rural market on a large
scale. The range cost is between Rs. 495 to Rs. 1200. And the model is available exclusively
in all showrooms and is sold mainly in small-town in India.

Though, The Company faced enormous challenges from its big list of competitor,
the company still in the number one position in domestic market because of the weakness of
the competitor. The company becomes more reliable and more acceptances to the consumer
because of its marketing mix. The company has adopted the new marketing innovation to
improve the feature of the product by time to time.

Though the current financial environment is not in favor, but the company performing well
and saw an increasing trend in the profit chart.

The company trying hard to convert its weakness into strengths and threats into strengths
and threats into opportunities by bring revolution in the product style, model, features,
pricing policy, product quality, etc.

Companies certain initiatives and policy such as new innovative design, guarantee, the
research and development, wide dealer network, committed service team, discount and
offers make the company.
TO FIND OUT THE BRAND PREFERENCE FOR WATCHES

Environment Analysis:

A. The Marketing Environment:

 Competitive Forces

Major Competitor

There are lots of competitor in wrist watch segment which directly or in directly affecting
the titan watches industry. The major players‟ are-

 Domestic Level:

· HMT

· Maxima-quartz

· Rado

· Casio
  International level:

· Espirt

· Swatch

· Citizen

· Seiko

 Fashion Houses:

· Dkny

· Gucci

· Adidas

· Nike

Among all these competitors, Maxima-quartz and HMT are major players .The strength and
weakness of the companies varies from segment to segment

Industry‟s Role

As there have many competitor exists in this Industry, the competition is too much.
Whenever any company bring changes in its marketing mix, all the companies also
implement changes in their marketing mix to sustain in the competition. By that the
structure of whole industry is changing and affects the competitive forces in the Industry.
  Economic forces

Economic landscape:

Indian corporate sector is nervous because of current Inflation. This problem occurred not
only in India, but it affected all the countries due to United State financial crisis.

As we came to know from Federation of Indian Chamber of Commerce and Industry

(FICCI) that 64% of the 413 companies are running currently in worst condition from last 6
months.

Consumers view:

As we know that Inflation is in double digit figures, but the people who lives in urban area
or metro city, are having optimistic view towards economy.

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers:

 Brand Name Purchasing Power(Price) Category
Rs.

Fast Track 550-1,430 Youth

Exacta 595-1,430 Lower Middle Class

(Office Wear)
Spectra 650-1,830 Common Class

Royal 960-2,830 Upper Middle Class

Raga 1,420-4,000 Upper Class

Bandhan 1,675-8,085 Couples

Regalia 1,725-7770 Upper Middle Class

Edge 4,500-5,200 Business Class

Nebula 10,000-45,000 Upper Class

The company‟s watch sales grew by 18.8 per cent and its income increasing from Rs255.34
crore during the second quarter of last year to Rs303.45 crore during the second quarter of
this year. On the basis of the above table and profit figure we easily understand consumer
buying power in target market.

Spending habit of consumers:

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of
Titan Industries doing well in the current fiscal. For these, watch segment sales income
increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during
the corresponding period this year. These data indicate that consumer‟s spending pattern is
increasing respective target market.

From the above information we can easily understand that consumers buying more of Titan
wristwatch. There are few reasons behind the growth in sales of Titan .They is as follow.
  Brand name

 Quality of the products

 Features ,which differentiate from others

 Attractive models

 New innovation

 Political forces

Political landscape:

In 2004 /05 the new Government came through election in India.

Our new Government took lots of steps to make the global relation as well as some steps to
develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash
Reserve ratio (CRR) as well as by decreasing the Repo rate. These all steps help the
Industries to get sustain in the market.

As all the steps help the Titan industry to compete in the watch industry. The performance
of this sector for last few years are-

Relation with political officials:

As we all know that TATA group is the one of reputed companies in the world, it really
helps the country development.
Moreover, the companies always want to make good relation with the political parties,
because we know that India is a democratic country which is it- self elected by the people
the country.

 Legal and regulatory forces

As the titan industries operates their business in the global area, they have to follow lots of
regulatory norms.

The industry can be directly affected by the certain rules such as change in Taxation rate.

 Technological forces

Impact of Technology:

Changing in technology always play a great role in the target market. Titan decided to
manufacture only QUERTZ (Analog and digital) and not mechanical and they would start
plant to manufacture watches in wide variety in design and prices.

Titan changes the technology in that ways which help in enhance the quality and the features
to increase buyers‟ value. Titan gets advantages in the target market through innovative
technology.

As there is too much competition, if Titan not accept the changes in technology then they
can‟t sustain in the market. In premium segment, competitor will capture whole market by
improve technology. And in the mid-price segment, other companies will give a tough
competition to titan.

Technological changes:
The new marketing innovation can bring a drastically changes in the marketing activities of
the company. The new innovations which can differentiate the company from the
competitor are

 Implementation of Heart-beat checking system in wrist watch.

 Implementation of Blood pressure checking system in the wristwatch

 Some companies can come with the watches which help in knowing the
mood of the person.

 Socio cultural forces

Tata believes that improve the quality of the life of people and the employee is the
primary purpose of their business. It uses its resources in the best possible way. They also
takes some reasonably steps to improve the quality of life of the people of the areas in which
they operates.

Tata adopt the corporate citizenship index, tata business excellence model and tata index for
sustainable development which reflect its commitment to its corporate social responsibility
(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives

These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.
 6.3 PRECISION ENGINEERING
The company's Precision Engineering Division supplies precision components to the
avionics and the automotive industry. It also manufactures dashboard clocks as OEM to car
manufacturers in Europe and America. The division also provides fully integrated
Automation solutions

6.3 AWARDS
The company has been awarded the following distinctions:

· Being named the No.1 Brand in the Consumer Durables category in the "Brand Equity"
Survey of The Economic Times, a leading Indian financial daily.

· The Titan Design Team won the Young Design Entrepreneur of the Year award at the
design awards instituted by the National Institute of Design and Business World, a
leading Indian magazine. The team has won 7 accreditations also.
 · Both Titan and Tanishq have been adjudged "Most Admired Brands" as well as
"Retailer of the Year" by Images Fashion Forum in consecutive years.

· Retail Asia and Media Magazine – Singapore adjudged Titan Industries as amongst the
leading Retailing Companies in India.

· Titan has won the Brand Leadership award at the India Brand Summit. The Time
Products Division of the company was awarded the JRD QV Award in 2006.

MARKETING MIX:

· PRICE

· PRODUCT

· PROMOTION

· PLACE

1. PRICE:

As achieve our marketing our marketing objectives, we can do some change in the pricing.

The main consideration will be in changing price are followings.

A. Survival:

In case of some of the watches titan prices them according to the features .The
Exacta is a simple steel watch priced at Rs.600-1,100. As the company also deals with
Spectra, Raga through pricing policy. B. Market share:

As we know that 70% of sales in watches come from the lower segment, therefore
by pricing Sonata at 350 onwards with guarantee. Titan prices its world watches
which compared equal to an international players like Calvin Klien where a
 customer pays 4 times as value of the world watch, therefore market with low
prices to international players to gain market share.

C Market Skimming:

In Indian watch industry there is no one offering pure gold watches, watches in pair
jewellery watches. Here Titan offers there product with the Indian touch in its design, the
product, the love.

2. PRODUCT:

Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.

A. Product line:

To increase the sales, the differences in the prices of the watches are justified by the
features.

B. Product pyramid:

Portfolio of Titan‟s product is of 3 distinct price-range that can be defined in

general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on
in volumes but not in margins. At the premium segment, the emphasis is on profits
and image but not in volumes. Obviously, company giving more emphasis at the top
of the pyramid as profits at the top of the pyramid is very high. This pyramid guided
the strategy of Titan.

C.Product strategy:

Titan was first focused only on the premium segment of the watch market. As per
the product strategy they took, Titan moved in to the mass market for watches. To
 widen base, Titan created new segments and increasingly focusing on segments
individually. In the past few years Titan has took a lot of initiatives to focused on
specific segments.

D.Product Quality:

Quality and leadership are synonymous to Titan. It seeks to achieve both through
their value for products compared to their prices.

3. PROMOTION:

Promotional pricing:

A. Marketing pricing:

As by opening new shops such as the world of Titan – buy directly from the dealer
and hence the element of middleman is not there.

Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they
are able to get the 17% profit margin on sales.

It is managing to successfully convince to the customer of the perceived value of „WORLD

WATCH‟ using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the
MRP of the watches. The allowance varies from one segment to another.

a) Creative advertising: Titan introduces a contest on cartoon network in

india.com which invites children to use creativity and design watch.

The prize winning design was launched as a new watch in summer 2002 collection.
Type of advertising: Titan believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Titan
watches.

b) Promotion on occasion: Titan is one of the company which formally believes

in the policy of promotion the product based on the occasions.

4. PLACE:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute its
product and set up „world of titan‟ in different region. The consumer‟s life style in India,
especially in urban area (because the turnover in urban area is 210 million, while the
turnover in rural area is 90 million) plays a significant role in the success of Titan. A. 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 and also
efficient after-sales service. These 1142 Time Zones located across 89 towns which
offer its customer the complete watch shopping experience.

These outlets sell surplus stocks of Titan watches at reduced prices. By doing these it
offering fabulous value for money with the same warranty as a regular full-priced
watch enjoy. However these shops would not be placed in the main locations and not
working as a 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.

B. Sonata Stores:

A Sonata store is also an Authorized Service Centre for Sonata & Titan brands.
Sonata store meet the large scale demand for the watch and also to attract customers
in more. These shops had full stocks of the watch in demand whereas the others
could afford to maintain only limited stock.

A. Value Mart:

Industry’s Role

As there have many competitors exists in this Industry, the competition is too much.
Whenever any company bring changes in its marketing mix, all the companies also
implement changes in their marketing mix to sustain in the competition. By that the
structure of whole industry is changing and affects the competitive forces in the industry.
  Economic forces

Economic landscape:

Indian corporate sector is nervous because of current Inflation. This problem occurred not
only in India, but it affected all the countries due to United State financial crisis.

As we came to know from Federation of Indian Chamber of Commerce and Industry

(FICCI) that 64% of the 413 companies are running currently in worst condition from last 6
months.

Consumers view:

As we know that Inflation is in double digit figures, but the people who lives in urban area
or metro city, are having optimistic view towards economy.

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers:

Brand Name Purchasing Power(Price) Category
Rs.

Fast Track 550-1,430 Youth

 Exacta 595-1,430 Lower Middle Class
(Office Wear)
Spectra 650-1,830 Common Class

Royal 960-2,830 Upper Middle Class

Raga 1,420-4,000 Upper Class

Bandhan 1,675-8,085 Couples

Regalia 1,725-7770 Upper Middle Class

Edge 4,500-5,200 Business Class

Nebula 10,000-45,000 Upper Class

The company‟s watch sales grew by 18.8 per cent and its income increasing from Rs255.34
crore during the second quarter of last year to Rs303.45 crore during the second quarter of
this year. On the basis of the above table and profit figure we easily understand consumer
buying power in target market.

Spending habit of consumers:

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of
Titan Industries doing well in the current fiscal. For these, watch segment sales income
increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during
the corresponding period this year. These data indicate that consumer‟s spending pattern is
increasing respective target market.

From the above information we can easily understand that consumers buying more of Titan
wristwatch. There are few reasons behind the growth in sales of Titan .They is as follow.

 Brand name
  Quality of the products

 Features ,which differentiate from others

 Attractive models

 New innovation

 Political forces

Political landscape:

In 2004 /05 the new Government came through election in India.

Our new Government took lots of steps to make the global relation as well as some steps to
develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash
Reserve ratio (CRR) as well as by decreasing the Repo rate. These all steps help the
Industries to get sustain in the market.

As all the steps help the Titan industry to compete in the watch industry. The performance
of this sector for last few years are-

Relation with political officials:

As we all know that TATA group is the one of reputed companies in the world, it really
helps the country development.

Moreover, the companies always want to make good relation with the political parties,
because we know that India is a democratic country which is it- self elected by the people
the country.
  Legal and regulatory forces

As the titan industries operates their business in the global area, they have to follow lots of
regulatory norms.

The industry can be directly affected by the certain rules such as change in Taxation rate.

 Technological forces

Impact of Technology:

Changing in technology always play a great role in the target market. Titan decided to
manufacture only QUERTZ (Analog and digital) and not mechanical and they would start
plant to manufacture watches in wide variety in design and prices.

Titan changes the technology in that ways which help in enhance the quality and the features
to increase buyers‟ value. Titan gets advantages in the target market through innovative
technology.

As there is too much competition, if Titan not accept the changes in technology then they
can‟t sustain in the market. In premium segment, competitor will capture whole market by
improve technology. And in the mid-price segment, other companies will give a tough
competition to titan.

Technological changes:

The new marketing innovation can bring a drastically changes in the marketing activities of
the company. The new innovations which can differentiate the company from the
competitor are
  Implementation of Heart-beat checking system in wrist watch.

 Implementation of Blood pressure checking system in the wristwatch

 Some companies can come with the watches which help in knowing the
mood of the person.

 Socio cultural forces

Tata believes that improve the quality of the life of people and the employee is the
primary purpose of their business. It uses its resources in the best possible way. They also
takes some reasonably steps to improve the quality of life of the people of the areas in which
they operates.

Tata adopt the corporate citizenship index, tata business excellence model and tata index for
sustainable development which reflect its commitment to its corporate social responsibility
(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives

These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.
8.1 SWOT ANALYSIS:

A. Strength

1. Style:

Titan first introduced the „style‟ concept in India and projected the watch as a
fashion accessory. Now a day’s style is a very much evident factor among the youth.
And there is a craze for stylish wristwatch. So, Titan makes the peoples life more
glorious by making stylish wristwatch.

2. Models:

As Titan offers the best and the biggest range to customer to choose the watch of
their choice with an affordable price.

It offers about 14 different names with about 1000plus different varieties with a
watch for literally everyone.

3. Exclusive products:

Today Titan holds the pride for say that its products both within the country and
internationally running in battle position. Its EDGE the slimmest watch in the world
position.

Other than these there have few more strength like-

Contribution of owned brands and retail. The profit is accounted by being in the
retail space which is booming.

Watches are available with popular functions like dates, multifunction and
chronographic.

Guarantee/warranty
B. Weaknesses

1. Pricing:

The average price of Titan in mid-price segment is very high than the other
competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550.
In the mid-price segment, the company is not performing up to the mark due to the
lack of choice of

consumers.

2. Market share:

As the average price of Titan wristwatch is far more than the other competitor, Titan
has less market share. The market is more demonstrate by middle class people and
for them Titan is quite costly. Among 75% market share in mid-segment. Titan
market share is between 18-20% which is far lower than HMT and Maxima.

3. Globalized:

As the company is Indian based which leads it to the strength, where as it is the
weakness also because the company not sufficiently globalized.
C. Opportunities

1. Seasonality:

At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there
is demand for the products.

- Gold watches and pairs are the like as a wedding occasion.

-The fast-track brand is promoted in month of June-August when schools and

colleges re-open.

2. Gifting concept:

Titan started as a brand which was associated with gifting and relation. The fight
concept sells well for people have come to associate Titan with love care and makes
emotion run high.

3. Exchanging offer:

The Titan stores offer exchange offer of any old watch, of any make, in any
condition functional or otherwise and receive a flat discount of 25% on their
purchase of a brand new, stylish, and technologically advanced watch from Titan.
D. Threats

1. Competitor:

As we know that lots of foreign brands are entering in our country with their branded
watches. As the removal of quantitative restrictions on import watches leads to
threat to titan.

2. Premium segment:

As in premium segment Titan is getting threats from reputed international brand

such as Espirit, Swatch and Citizen.

3. Mobile:

Now a day’s people can get the time and the other feature in mobile phone. So, the
need of wristwatch is in decreasing trend. People can talk and see the time in a cell
phone and some people think that there is no need of wristwatch.

4. Marketing Objectives:

Titan industries in watch hold 70% in domestic level and 60% in Share in organized
sector market. Companies the marketing objectives is to increase in market share by
5%. Before implementing the of marketing strategies we must have to focus on
certain things, which include the BCG Matrix representation.

A Titan industry has registered an Income of Rs.1, 104.85 crore as compared to previous
year which was Rs 7, 25.11. In all the income the Titan industry had contributed Rs.3, 03.45
crore.
 STP ANALYSIS
The STP Process:
SEGMENTATION:
Dividing the market by grouping the customer with similar tastes and preferences into one
segment is called is called “segmentation”.

Segmentation help marketers understand the needs of different customers better and serve
them with better value propositions.

A market comprises of different consumers possessing innumerable tastes and

preferences. Depending on their marketing approach and the nature of the products
marketers can adopt different level s of segmentation. The levels of market segmentation
are:

· Segment Marketing

· Individual Marketing

· Niche Marketing

· Local Marketing

A) SEGMENT MARKETING:
 Marketers target more than one segment when it is not economically feasible to
design products and services for individual segments. The focus of segmenting the
market will be on providing enhanced service to the customer by offering
customized products that will satisfy the needs and wants of customer in that
particular segment to a large extent. Segmentation is also sometimes identifying,
capturing and retaining potential new markets.

TITAN PERSPECTIVE

Titan has segmented its business into three main categories:

Mass

Mid-premium

luxury

B) INDIVIDUAL MARKETING:

Individual Marketing is the extreme level of segmentation in which marketers focus

on individual customers.

TITAN PERSPECTIVE

Titan has not applied this for its marketing.

C) NICHE MARKETING:
A niche is more narrowly defined group, typically a small market whose needs are
not well served. Marketers usually identify niches by dividing a segment into sub
segments or defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTIVE
In a study conducted to study the customers of watch market, it is revealed that 42%
of them are youth. So, TITAN tried to target this by:
· introducing FAST TRACK
· price offering from Rs 500(affordable)
· watches with style statements
D) LOCAL MARKETING:
Marketing programs being tailored to the needs and wants of local customer groups.
The prominence of local marketing has also become very dominant.

TITAN PERSPECTIVE
All the products of TITAN are addressed to all the customers as a whole. Localized
products are not available. But some products which are available in UK have some
pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal
Nehru, etc. so that the customers can identify the product with those dignitaries.

CRITERIA FOR SEGMENTING CONSUMER MARKET:

Markets are mostly segmented on the basis of geographic, demographic and psychographic
factors:

Geographic segmentation:

It calls for dividing the market into different geographic units such as nations, states,
regions, countries, and cities.

Demographic segmentation:

In this the market is divided into groups on the basis of variables such as age, family, size,
life cycle, gender, income, occupation, education, religion, race, generation, nationality,
social class. These variables are the most popular basis for distinguishing customer groups.
The following are some of the demographic variables used to segment the market:

· Age and life cycle stage: Consumer wants and preferences change with age.
These tastes and preferences are not constant and change with time.

TITAN PERSPECTIVE

Titan markets its products for all following age groups:

a) For the age group 12-20, brands like TIMEX, Sonata, etc.

b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc.

c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL, REGALIA,
BANDHAN, etc.

GENDER:
Gender segmentation has been applied to clothing hairstyling cosmetics, wristwatches,
magazines etc. There are certain brands, which are positioned exclusively for a specific sex.

TITAN PERSPECTIVE

Titan markets its product across:

(steel, regalia, nebula, fast track, technology, sonata, edge, flip)

Gents (flip)

Ladies (raga)

Married couples (Bandhan)

INCOME:

Marketers tend to segment product and services on the basis of income groups. Nowadays,
companies have recognized the potential of lower end income groups and have started
targeting them.

TITAN PERSPECTIVE

Titan offers its products with a price range to suit the different income groups such
as:

- Below Rs 500

- Between Rs (500-1500)

- Between Rs (1500-3000)

- Between Rs (3000-5000)

- Between Rs (5000-10000)

- Above Rs 10000

GENERATION
Generation plays a major role in segmenting markets. Every generation is deeply influenced
by various activities. Such influences deeply impact their product purchase pattern.

TITAN PERSPECTIVE

Titan has many products to satisfy all the generations. And through constant
innovation Titan developed many products for new generations like FAST TRACK,
TECHNOLOGY, and FLIP etc

SOCIAL CLASS

Social Class segmentation is influenced by customer choices of automobiles, interior

decoration, clothing preferences etc. The tastes and preferences of the social class also
change according to time.

TITAN PERSPECTIVE

Titan has realized the demand of the society and has marketed its products for each of the
following social strata.

First segment:
For this segment, watch is a fashion statement. Titan has ROYALE, AURUM, and
NEBULA for this segment. These products have specialties like European leather, sapphire
crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones.

Second Segment:

For this segment also, watch is all about fashion but price does matter to them. In this range,
Titan has RAGA, TECHNOLOGY, and FASTRACK etc. These products have digital
technology & of trendy shapes. Always splash oomph on to your ward robes and smear
danger on your look.

Third segment:

For this segment, watch is just an device to show the time. They invest after a lot of
thoughts. In this category, Titan has TIMEX, SONATA, KARISHMA, etc

PSYCHOGRAPHIC SEGMENTATION:
Buyers are divided into different groups based on personality, values, belief, lifestyle,
motivation, etc. People within the same demographic group can exhibit very different
psychographic profiles.

LIFESTYLE:

People generally exhibit different lifestyle depending upon their income, social
group etc. People usually buy the product which suit their lifestyle

TITAN PERSPECTIVE

According to the life style of people Titan has segmented it‟s product to fit the box.
Like in the luxury section it has NEBULA, AURUM etc. In the mid-premium
section RAGA, GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it
has SONATA, TIMEX and KARISHMA.

PERSONALITY:

Marketers can use personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.

TITAN PERSPECTIVE

Titan advertises its products by portraying movie stars as user of its products and it
offers a lot of option to its customers.

For example: -

In economy category, 60 products

In luxury category, 26 products

In sports & casual category, 76 products

In fashion category, 99 products

In formal category, 14 products

VALUES:
Values affect customer behavior in the long run. Marketers can use values and beliefs to
segment the markets.

TITAN PERSPECTIVE

Time has the same value for all irrespective of cast, creed and sex. Still, Titan
successfully segmented its products according to customer values. But it is basically related
to type of generation they are in to. So, the segmentation is also related to that.

BEHAVIORAL SEGMENTATION:
Organizations can divide markets on the basis of behavior that consumer shows towards the
usage of the products. Various variables for segmenting market on the basis of purchase
behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc.

OCCASIONS:

Markets can be classified on the basis of various occasions that customers encounter
because people need different products for different occasions.

TITAN PERSPECTIVE

Titan also offers occasion specific products like

Formal-

NEBULLA,

STEEL‟

RAGA,

GOLD&STEEL,

Dresswear–

REGALIA,

RAGA,

GOLD&STEEL,

ROYALE.

Fashion-

STEEL,

RAGA,

GOLD&STEEL,

FAST TRACK.

BENEFITS:
Market is divided on the basis of the benefits customers seek from the products. Benefit
segmentation can be used to position various brands within the same product category.

TITAN PERSPECTIVE

Titan product has benefits like:

It provides the “TITAN WORLD” SERVICE CENTRE in 174 towns.

It provides a huge product range to choose from.

Its products have good life cycle.

· Usage Rate: The usage rate of a particular product/service can be divided into heavy,
medium and light. Marketers are usually attracted to heavy users than other type of
users.

· Loyalty Status: The loyalty status of a particular market can be divided into different
groups, according to the intensity of their loyalty to these brands.

MARKET SEGMENTATION PROCEDURE

It is a three-step procedure:
 1. Service stage:
Here the researcher conducts exploratory interviews and focused groups to gain
insights into consumer motivations attitudes and behaviours.

Then the researcher prepares a questionnaire and collects data on attributes and their
importance ratings, brand awareness and brand ratings, product usage patterns,
attitudes towards product category and demographics, geographic, psychographics
and media graphics of the respondents.

2. Analysis Stage:
In this the researcher applies factor analysis to the data to remove highly correlated
variables then apply cluster analysis to create specific number of maximally
different segments.

3. Profiling stage:
Here each cluster is profiled according to its distinguishing attitudes, behavior,
demographics, psychographics, and media graphics and media patterns. Each
segment is given a name depending on its dominant characteristics. Market
segmentation should be redone periodically because they change.

EFFECTIVE SEGMENTATION:

For effective segmentation, segmentation variables need to exhibit certain characteristics.

These are discussed below:
 · Measurable:

The variable used for the segmentation of the markets should be measurable to be
effective. For example, a variable like the purchasing power of potential customer is
measurable.

· Substantial:

When dividing the market into segments, a marketer should take enough care to see
that each segment consist of adequate number of customers worth catering to.

· Accessible:

The segment of the market that a marketer is trying to target should be accessible to
him.

The appropriate selection of the media, its coverage and other factors like the
product distribution facilities play a major role in a marketer becoming accessible to
customers.

· Differentiable:

Each segment of the market should be different from others in terms of its needs and
wants. Each segment requires different marketing strategies because it responds to
different strategies differently.

· Actionable:

A segmentation variable should help marketers develop effective marketing

programs to attract and serve potential customers effectively.

TARGETING:
It is the second stage of the Segment “Target” Position (STP) process. After the most
attractive segments are selected, a company should not directly start targeting all these
segments. The attractiveness of the segments is also depending on other important factors.
In the main activity of defining a target market, four sub activities are given which are the
bases for deciding on which segments will actually be targeted.
The four sub activities within targeting are:

1. Defining the abilities of the company and resources needed to enter a market

2. Analyzing competitors on their resources and skills

3. Considering the company‟s abilities compared to the competitors‟

4. Deciding on the actual target markets.

After the market has been separated into its segments, the marketer will select a
segment or series of segment and „target‟ it/them. Resources and efforts will be
targeted at the:

A) The first is the single segment with a single product. In other word, the marketer
targets a single product offering at a single segment in a market with many
segments.
For example, Titan‟s sub brand, Raga is targeting the upwardly mobile ladies in the
upper premium segment.
B) Secondly, the marketer could ignore the differences in the segments, and choose to
aim a single product at all segments i.e. the whole market. For example, Sonata and
Fast track brands of Titan are targeting mass and mid premium segment.

C) Finally, there is a multi-segment approach. Here a marketer will target a variety of

different segments with a series of differentiated products. For example, Titan itself
provides with the number of different brands/products which are targeting different
segments in the market. Following is the table which represents the various sub
brands and their targeted segments of TITAN.