67

Bibliography
EXECUTIS'E SUlYIfYL4Rh’
Today, a uristw'atch is considered as iiiucli of a status symbol as a de›'ice to rell rime. In an age
z'hen cell phones and dismal papers display tinj quartz clocks, rhe mechanical z'i is march has sloz'l j
becoiiie less of an objecr of function and more a piece of modern culture. The Indian watch
indiistr j began in the year 1961 u itli the coiniiiissioiiinp of the watch div'ision of HM T. The first
u arch model iiianufactured by HMT w'as the Janara model in the year 1962. HMT z'as the
leader in the watch iiiarker tit I the Tata's formed Tuan Watches iii association w'ith Tamil Nadu
Industi ial De›'elopnienr Cor poratioii iii the year 1987. Titan w'as rhe first coiiipaiiy to launch quartz
watches in India. The Indian w'atch market is roday of 40 million units, our of z'hich 60°.â is iii rhe
tinorpaiiized sector in z'hich the maximum number of n arches are sold are below Rs.300. Qtiai tz n
arches fomi no third of the organized sector and the rest is spht I›etween mechanical and digital
watches. Even in the organized secror,
rhree fourth of the sales by volume comes front watches rhat ai e priced below' Rs. 1000.

\\''atch is one of the consumer durables w'hose replacement rare is very high. The replacement
rate of watch is 33.S ?d Source. India iiiarket deinoprn phics report, 1998). This is also due to the
facr rhat the estiiiiated scrap rate of z'rist z'atches is 7 8°â, z'hich is applicable after 6 years
(Source: India market demographics report, 1998). So, due to high scrap rare, outdated iiiodels, and
the shifr from the iiiechaiiical z'atches to the quartz watches ir is causing a very high replacement
demand for z'atches. This along w'ith the low' peneti ation le›'el repi esents the untapped mai Set
potential for u arches iii India.

After liberalization of Indian economy iii 1992 many international play ers hav'e entered the
Indian V'atch market posing as coiiipetitive rhrear to the Indian companies.
Lately Tiraii has ti red ro reposition its Brand to capture moi e sepmenrs of the z'atch market i
etainiiig the ali eady serred market segment. The srrate y' has been studied iii deep
dM ink the pi oject. Many brands and companies are coiistantl j rein v'igornrinp their businesses

and positioning them for growth. There is a constant need to inno›'ate, rein›'igozate, update,
zecalibrate, or just simply fend ofT the competition in an efTozt to better explain "why buy
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 thnt 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. idence. the marketplace has becoiiie
customer centric. Recognizing the importance of the customers in the business structure,
companies hnve 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 coney 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 mnde 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 hasis of secondary dnta. For this purpose, internet, journals, books. magazines and so
on hase 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 cont enience sampling technique.
The questionnaire consists of appropriate mix of open ended and closed ended questions. The
dnta 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
 7
CHAPTER 1: I NTRODUCTfiON
I I THEORY & CONCEPT:
"A business has two - and only two - basic functions: inar1eting and innov ation."
- Peter Drunker

The rapid pace of change and intense competitis e pressure in today's marketplace demand
that brands continuously innovate and reinsent themselves to maintain their relevance and
market position. In this context. brand repositioning and other revitalizntion strategies hnve
become a business imperatis e for battling brand erosion. The appeal of brand repositioning is
further heightened by the rising costs and high risk associated with launching a new brand.

Brand repositioning has received little ahention in the marketing literature and has mostly been
treated as a variation of brand positioning. Biel, for example, has defined brand positioning as "building
(or rebuilding) an image for a brand". The goal of positioning and repositioning strategies relates to
the management of consumers' perceptions. I-towe›'er. positioning focuses on the creation of
brand associations - consumers' perceptions of the attributes that differentiate the brand Brom
competiti›'e offers — while repositioning also implies managing existing brand associations. The
unique challenge ofa repositioning Strategy. thus. lies in rejuvenating the brand image to make it
relevant in an evolving environment. while honoring the brand equity heritage.

Repositioning can be required as the mnrket changes and new opportunities occur. Through
repositioréng the company can reach customers they not intended to reach in the first place. If a
brand has been established at the mnrket for some time and wish to chnnge their image they
can consider repositioning, although one of the hardest actions in marketing is to reposition a
familiar brand.

According to Solomon, position strategy is an essential pai1 in the marketing efforts because
companies have to use the elements in the inar1eting mix to influence the customers
8
understanding of the position. During the movement from something few attractive and
relevant towards a more attractive and relevant position several of strategic choices has to be
made. The ones responsible for the repositioning have to evaluate why a reposition is
necessary, and if the offer is the one who will change or just the brand name. There are several risk
factors that have to be taken into consideration when preparation for a repositioning of the
offering or the brand. During repositioning, the risk of losing the credibility and reliability is high
and the need for a thorough strategy is therefore neceuary to avoid this occurrence.

Some analyst argue that to successfully reposition a establish brand name is almost impossible
because repositioning of a brand cnn make the most loyal customer to switch brand. But, in
some circumstances a repositioning is neceuary to gain credibility if the brand is emded.
Whenever a reposition is in question it has to be of relevance from a customer perspective,
is this achievable? Some brands will on no account be thought on as a luxury
brand and therefore an attempt to reposition will only damage the brand image or the actual

Numerous failed attempts at brand repositioning testify to the difficulty of developing and
implementing such a tactic. For example, while the sofi drink brand, Mountain Dew has remained
relevant to the youth market through continuous repositioning in its thirty years of existence,
Levis' Jeans has been losing market share to newcomers such as The Gap, despite numerous
campaigns designed to reposition the brand as trendy.

The strategic importance of brand repositioning in preserving and enhancing brand equity,
coupled with the mixed results of repositioning attempts, underscores the need to develop a
better understanding of the dynamics of brand repositioning. Specifically,
questions of whether, when and how brands should be repositioned need to be addressed.

Research into brand repositioning is relevant not only to the development of brand
management theory, but also extends to corporate strategy thmugh an exeminetion of
corporate brands.

1 2 LITERATURE REV IEW:

The repositioning strategy is rolled out in three stages: introductory, elaboration and fortification
stages. This involves the introduction ofa new or a repositioned brand, seeLing to underline the brand's
value o›'er others. and to broaden the brand proposition. ft is truly tough to change the customer's
perceived attitude towards a brand, and therefore the ris1 is great that
the attempt to repositioning might be unsuccessful.
 After rolling out the strategy, it is time to modify the proposition through update of the personality and
through repositioning. There are benefits and risks with both of this segments and it is of great
significance that they are truly evaluated when deciding the next step in the
process.

Figure 1: Stages in brand strategy development

Establishing the
Brand Proposition

Selecting Appropriate
Marketing Mix

Modifying the Proposition

-Reposit toning
-Updating the Personality

Rolling Out the Strategy

-T ntroductory Stage
-E taboration Stage
-Forlificat ion Stage

The implication with the tenn" repositioning" is that a company modifies something that is already
present in the market and in the consumer's mind. The definition of repositioning
changes dilTerent individuals and professions.

t0

To view the different definitions and perceis e a greater understanding about this concept,
three examples of repositioning given by indie idunls in different professions is stated below:
’Repositioning is a change, principally about trigging the ›'ision. mission and value in a new
direction that is more suited for the brand in the future".
-Brand manager consultant
’Principally, reposition concenis change the consumer's perception of the brand"
-PR- consultant

'Repositioning is built upon the chnnge unique and differentiated associations with the brand in
some kind of direction, it is about having a balance between the category party and
differentiation when using reposition strategies”

-Leading brand strategist

From these definitions, it is obvious that reposition is about moving something to a newer and
hopefully to a more attractive and relevant position. The purpose of the movement differs with
regards to what the company wants to achieve. A company might want to reach out to a larger
target group, or be involsed in seeeral different positions at the mnrket. There is also a sisible
relation between price and quantity aspects. When a company perceives the market as a
demand curve, the purpose is to down stretch or up stretch in this curve. When moving down
it is ofien spoken of as an expansion down wards, and when moving up and there is a need
for reaching the premium segment and expand up wards.

Tbe principle ol'repositioning:

When striping towards a new position in the market, it is important to understand that
consumer's minds are limited. People's minds select what to remember and it is therefore
significant to convince the consumers with great arguineit. The marLet demand changes rapidly
and therefore deposition can be necessary to meet these demands. newer and stronger arguments have
to be established to convince them to stay as loyal customers.

11
As stated in the literature, repositioning is a very complicated matter and therefore there are no
detailed theories or models. The aim with repositioning difTer from person to person, and the only
connection between all the different theories is that repositioning is ino›'ing
something from somewhere towards a greater position at the inar1et.

Corstjens and Doyle ( 1989) identified three types of repositioning strategies:

(I) Zero repositioning, which is not a repositioning at all since the firm maintains its initial Strategy in
the face of a changing environment;
(2) Gradual repositioning, where the firm perfonns incremental, continuous adjustments to its
positioning strategy to reflect the evolution of its endironment; and
(3) Radical repositioning that corresponds to a discontinuous shift towants a new target
marl‹et and/or a new competiti›'e ad›'antage.

Afier examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:

I . Increasing refer ance to the consumer

2. Increasing occasions for use
3. Making the brand serious
4. Falling sales
5. Bringing in new customers
6. Making the brand contemporary
7. DilTezentiate from other brands

8. Changed marketing conditions

It is not always that these nine categories are mutually exclusi›'e. ORen one reason leads to
the other and a brand is repositioned sometimes for a multiplicity ofreasons.

12
.'t. four-phased brand repositioning approach can be followed to achieve the
Intended benefits:

Phase I. Determining the Current Status of the Brand Phase II. What Does the Brand Stand for
Today?
Phase III. Developing the Brand Positioning Platforms
Phase IV. Refining the Brand Positioning and Management Presentation
The benefits thnt can be derry ed from brand repositioning exercises can be summarized as:
» Value over others
» Updated personality
» Relevant position
» “Up to date” image

The risks associated with such strategies are:

» Loss of focus
» Neglecting original customers
» Losing credibility for the brand
» Confusing the brand

Therefore, brand repositioning is more difficult than initially positioning a brand because one
must first help the customer “unlearn” the current brand positioning (easier said than done).
Three actions can aid in this process:

(1) Carefully crafied communication,

(2) New pn›ctucts, packaging, etc. that emphasize the new positioning and
(3) Associations with other brands

Co-branding. Co-marketing, Ingredient branding, Strategic alliances, etc. Those reinforce

the new brand positioning.
This exercise is so critical to an organization's success that the organization's leadership team
and its inarketing*brand management leaders should develop it, preferably with the help
and facilitation of an outside brand-positioning expert.

14
CHAPTER 2: RESEARCH fYIETHODOLOGY
2.1 Objectives:
1 . To re›'iew' the brand positioning strnrepies of differ enr sub-brands of Titan watches.
2. To anal¿’ze the brnnd reposition ind strategies of Tiran ’atches.
3. To srrtdy consumer as areness and perception about the bi and repositioning
Stratet,es of Titan ’atches.

4. To recommend suitable measures to be taken by the Titan Company to further

Improve its brnnd perception and Jo¿’aJt¿’ anzon¿ its c rtstoiners.
This study w'otild help titan industry ro understand the Gaps iii its communication strnrepy
regarding bi and i eposirioninp exei cises and rhe further measures ro be taken for
effecri ve marketing communications.

2.2 Llmltatlons:
•' The st‹idy is confined ro Navi M unzbai area only’
•' There is possibility of sampling errors in the study
The i espouses of the consumers may nor be ¿enuine
•' The questions included iii the questioiinaii e may not be conipi eheiisi›'e.
15

2d Sources of Data collection

The i elev ant data z'as collected from both pi binary sources and seconder y som ces.
The srai1in¿ poinr of ink’ information gathering has been the seconday' so‹n ces such as inrei ner,
books, and jo‹rmaJs and so on.

First, 1 made a study of the brnnd positioning and repositioning srratepies of Titan z'atches
through secondary som ces such as internet, insurance magazines, and jounials and so
on. Then 1 conducted a consumer awai eness stio'ey on brnnd repositioning
strategies undertaken by Titan u arches iii i eceiit tinges.

2.4 Samplln p Procedure:

A xaiiiple of 50 consumers a mo are brand loyal to Titan z'atches since nioi e than a year and in the
age group of 20 — 30 years have been considered for rhis study . As Titan has raken up brand
repositioning strarepies since July 2008, consumers who have seen rhe
pre›’iorts and new campaign ka e been targeted

2.fi Primary' Data Collection

Data w'as collected thi ouch an inteo-iew schedule, consisting of both open ended and closed
ended questions. The schedule cov'ered par anieters like i easons for consumers' brand
preference: i ecollection of ear tier rapline and advertisement, brand ainbassadoi of Tiraii;
az'areness of new' tapline and campaign featM ink Aaiiiir Khan, nez' designs and so on. The dara
was collected thi ouch e- mails, telephone contacts and one-to-one personal inteo-iews.

CH APT RER 3: INDUST Rh’ OVERS'IEW

3.1 History of the â Yatch fYIarket'
The Indian z'atch industry began in the year 1961 z'ith the commissioning of rhe w'atcli
di›'ision of HMT. The first u arch model mnntifiacrtired by HMT was rhe Janara model in the
year 1962. HMT w'as the leader iii the w'atch near ker rill the Tata s for ined Titan Watches in
association wirh Tamil Nadu Industi ial Dev'elopiiient Corporation in the year 1987. They
tool a major str arely decision, which larei chnnped the face of the Indian z'atch market- ro
inaniifactM e out j quartz watches. Libei alization in 1992 and rhe remo›'al of qiiantitativ'e
restrictions due to \\''TO has opened the doors for many foreign brands in rhe Indian near
ker viz. Tissot, Swatch, Omega, Rado, TAG Heiier, Rolex and many orhers. The import duties
on w'atches are fall ink u hich makes rhe Indian market look attractive for the global majors
like Casio, Swatch and C irizen.
3 2 i i Figure 2. Porter's five forces model
No strong suppliers Luck bargainin poWer Rise of China, Taiwan as low
co suppliers.
DEGREE OF RIVALRY
Increased number of firms

• Low switching costs

Strategic staLes are high
1. Supplier Power:
10. HMT has its own fully integrated operation for production of its watches. Titan has its own
production facilities for which it has invested roughly 120 crore rupees over the years, the
manufacturing capacity of which is 6 million units. Also there has been a rise of low cost
producers in China & Taiwan which has provided an opportunity for watch makers to outsource
watches at low cost, just as Titan has done to outsource the components for Dash. Due to the
large supply of watch movements available, there is little supplier power in the watch market.

2. ^7 °^ •
The Indian watch buyers are very price sensitive, especially in the lower end of the market.
There is still a huge untapped market in India with market penetration of only 20 units per
thousand people while the world average is more thnn 100. At the same time there are a
segment of people who are willing to pay a premium for watches with good
performance and with a recognized brand name. So understanding the buyers' preferences is
very cnicial in this industry in order to gain a substantial market share.

3. Entry Barriers:
The Indian watch market in the recent years has shown a dramatic increase in the number
of brands available in the market due to removal of quantitative restrictions. So the new entrant
has to have an offering, which can be positioned and differentiated from the other players in the
market. This could be either price or functional or emotional appeal. So the prime barrier for
entry, in the current context, for a new entrant is to build a brand image and
price competitively.

4. Threat of Substitutes:
There are no such substitutes to watch as a product. However. in terms of the companies
offering various variations for watches such as pendant watches and jewellery watches, some
sort of substitution has developed. Rich consumers prefer to purchase watches more as a fashion
accessory rather than simply for its typical use.
There are many companies in the Indian watch market; however. the product ranges offered
by them are manifold. This makes the competition very stiff. Also at the lower end of the
market it is basically the Value for Money. which differentiates the players. The strategic
stakes for the producers are very high. Titan Ltd., the largest company in terms of market
share in the organized sector hns faced losses in the quarter ended June 2iXl 1 despite increase
in the market share due to macroeconomic situation. HMT faced a similar situation when Titan
was introduced in the 1980s leading to a shnrp fall in its market share.

19
1.3 Present Situation Of Tlie Indian h'atch â4arket-
The Indian n arch iiiarker is today of 40 million units, out z'hich 60°.'‹ is in the tinorpaiiized
sector iii u hich rhe maximum number of z'atches ai e sold are below Rs.300. Quairz watches for
in two thirds of the organized secror and rhe rest is split bee eeii mechanical and dipiral n
arches. Even in the organized sector, three fourth of rhe sales by
v'o1unie comes fi oni watches that ai e pi iced below' Rs. 1000.

rhe small towns and run at areas who regard ir as cheap and flims}'. Thy' want toughness-
which translates into a good q‹iaIig' metal model ar a reasonable price.

Watch is one of the consumer dM ables w'hose i eplaceiiient i ate is v'ery high. The replacement
rate of watch is 33.8 ?o fSource: India market demographics i eport, 1998). This is also due to the
facr rhat the estiiiiated scrap rate of z'rist z'atches is 7 8°.â, z'hich is applicable after 6 years
(Sour ce: India market deiiiopraphics report, 1998). So due ro high scrap rare, outdated iiiodels, and
the shifr from the iiiechaiiical z'atches to the quartz watches is ca‹isin¿ a ›’ey' high ieylacen4ent demand
for watches. These along u'itIi the low penetrnrion le›’eJs ieyresent the unrap d market potential for
watches in India.

The major pla}’ers in the Indian v'atch n4arLet include HEAT, Titan and Tindex. The other pla}’ers
include Westar, Shi\sk i, Max inch, and SITCO. Foreign bi ands such as Cartier, Piaget, Omega, TiJTan}’’s
and Consn44, Grtcci, Longines, Casio, Citizen, Tag Heuer and
Espirit are also inak ink an inroad into the Indian mark et,

Tiran has been consolidatm¿ its nzrLet share o›’er the yast decade. Timex ’atches, ’hich entered in India
wrtli collaboi ation ’irh Tiran, nom independently’ has also gained substantial
market shai e.

20
flased on price
1. Mass (Rs.350-600)
2. Popular (Rs.600-900),
3. Premium (Rs.91Xl-1500),
4. Super-premium (Rs. 1500-801Xi)
5. Connoisseur segments (above Rs.81Xi0)

1. Men's watches
2. Women's watches
3. Youth watches
4. Kids watches
5. Sports watches

21

CHAPTER 4:
TITAN U’4TCHES- BR A ND POSITIO NIVG STRATEG IES

4 1 Overall strategies-
Since its introduction, Tiraii has been positioned as a pi eniitiin brand, proc iding high quality
products. With its nuniei ous sub-bi ands catering ro differ enr sepmenrs, rhe challenge rhat Tiraii
faces is to creare a srronp brand Outage. lt follows different
positioning strnrepies; these strategies can also be awal jzed as gi ven below :

4.2 .Attribute Positioning Strategies:

When rhe company launched irs products. ir z'as rhe fit sr to bring quairz w'atches ro rhe Indian
market. The company sticcessfull j 1ev'eraged this to penetrate the market and Main I3.a marker share.
Raga, Classique and Regalia come under rhas strnre¿y. CJassique has been positioned as ele¿anr
corpornre real rhat leaves a quiet, b‹it definite i impression and fusion of function and sophistication.
Power dressing not' has a new’ weayon! As /v\a¿ic in gold and bicolo‹M look, the ’Regalia’ rnnge
represents the essence of dress-wear. Raja has been difTeienriated and yosirioned as exclusive
watches for women. The Raga and Silver Raja collection is ele¿anr, delicate and fenHnine wirh each
yiece being trul}' unique.
4.3 User Positioning Strategies:
Tiraii carer s to several user gi oups- children (the Dash), sporispersons and adventurers (PS14000
and Fast rrack range). The Fast ti ack rnnge is seen as being conreiiiporary, sturdy and
reliable. The advei tisinp, packaging and met chaiidisinp of this
range is }'oun¿, ›’ihrant and ’cool' (the ad line say’s "Cool n arches by’ Titan")

4.5 Beaefit Positioning Strategies:

The Fast tracL Digital range offers the customer a functional watch that is also attractiv e. The digital
watch has a ‘lechno-geek" image, but Titan seeLs 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 hnd 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 Tanisliq brand in this segment. However. it has tried to
reposition this brand by increasing the price range to encourage more customers.

4.7 Quality & Pzice Positioaing 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), attracti›'ely styled and of gcod quality. In Indian market. Sonata is a perfect
example of Price positioning, titan came up with this segment
when it was facing heavy competition Brom lower end segment.

23
CHAPTERS:
TITAN WATCHES: BRAND REPOSITIONING STRATEGIES

Titan Industries decided to revamp its flagship watch brand. Titan, with the intention of making it
more youthful and rele›'ant 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 I¢han 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.
Now. Titan wants to move from style statements to personality statements. According to
Hamish Bhatt, chief operating officer, watches, Titan Industries, a watch ought to denote the
wearer s mood and personality he 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’, Bliatt 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 Kftan that encourages people to
find a new strand of their personality every day. It all started w ith 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, lie 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 lie crashes his vehicle while go-karting. Khan waves to the others around him. while his
voiceover explains the importance of mnking one's own mistakes. Further on, he talks of not
making your passport photos last longer than three months — you need to constantly
reinent yourself and adopt a new look esery day (cut to shots of Khan's varied
hairstyles and looks in his movies, shown in an ambient way through posters and T-shirts).

‘SliocL your reflection!" says I¢han, as we see him with funny accessories fmming his face. The next
vignette has him practicing meditation while slyly checLing out a girl walking past (‘Explore'). Cut to a
shot of children, with I¢hnn explaining how we aspired to be dilTezent people as 1ids — “let's revi›'e
that aspiration today’ . Wearing ainour (sword and all), I¢han
Reiterates, “Be Bonn, Every Day. Titan. Be More’.

Malvikn Mehra. group creatis e director, Ogilvy & Mather Bangalore, says, “‘Be More’ pushes
people to like 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 C hahta idai. Aamir
always manages to look different in every role,” explains Mehra. “So we show ed him doing
things that were spontaneous, such as exploring places or go-karting.” The idea, simply put, is
to like life to the fullest — with Titan being the instrument of such expressis e liberation.

29
The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey's third Titan film, the
earlier Mo involsed Khan and his assistant, played by the late Vihang Nayak The first film had
Khan confused about which watch to mntch with each outfit lie'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-Lrand marriage.
Shot entirely in Chennai, the film hns 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. lie 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
sho'vn 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 hns been portrayed,” Pandey
says. Even the last frame of the ad, which has Khan dressed as a mock warrior (with an
impromptu utensil sen'ing as his helmet), was made to look like the man had made use of
things lying nearby in a spontaneous way

RAGE
weaves
September 20th, 21111:
Aiming to widen its appeal amongst Indian women. Titan, India’s most preferred watch
brand, todny announced their association with Bollywood's most beautiful and charming
Disa, Sabrina Kaif. Ms Knif has been signed as the brand ambassador for their
exclusis e women's watch brand. Titan Rega

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 o›'er a period of time in sync with
the evolving tastes of the contemporary Indian woman.
Mr. Ajoy Cliawla commenting on the brand said. “Dri›'en by continuous launch of new designs and
collections, Raga has witnessed a 27% CAGR in the last fi years and will be Rs.400 crore brands this year!
Howe›'er. 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 Kntrina Kaif said, “(Smiles) Titan needs no
introduction, this vibrant and 'up-to-the-minute’ brand has been touching our daily 1ives in
the most beauti fu1 way possible It gises 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 I
feel watch designs from Titan Raga are truly exclusis e 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
striping brand communication on television, print. outdoor and other media.

Sonnta 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
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.
 e. In an age
rch has sloz'l j
ian watch
HM T. The first
MT z'as the
w'ith Tamil Nadu
o launch quartz
h 60°.â is iii rhe
00. Qtiai tz n
l and digital

0.

he replacement
so due to the
ter 6 years
ated iiiodels, and
h replacement
apped mai Set

entered the

z'atch market i

usinesses

e, update,
why buy
oduct offerings.
s of several key

nds on how it
a result, the
m competitors
Product

e well informed
as becoiiie
ess structure,
Titan
rst gone for
d to coney its
of Titan
study. The main
hes are aware of

first part of the

n completed on
gazines and so
cting a survey
ple of 50
ng technique.
estions. The
port would
place demand
elevance and
rategies hnve
ositioning is
ew brand.

mostly been
ning as "building
tegies relates to
e creation of
e brand Brom
ciations. The
age to make it

occur. Through
first place. If a
eir image they
reposition a

ause
mers
ractive and
ces has to be
position is
are several risk
ng of the
eliability is high
.

lmost impossible
h brand. But, in
mded.
er perspective,
or the actual

ping and
w has remained
of existence,
numerous

brand equity,
ed to develop a
ressed.

rand
minetion of

on and fortification
o underline the brand's
nge the customer's
 of the personality and
nd it is of great

ething that is already

ning

this concept,
ted below:
new

nager consultant

h the brand in
party and

brand strategist
g to a newer and
nt differs with
out to a larger
so a sisible
market as a
n moving down
there is a need

nd that
therefore
changes rapidly
r arguments have

ere are no
, and the only
tial Strategy in
ts to its
w target

the

ads to

nd Stand for
marized as:

because one
d than done).

reinforce

leadership team
he help

an watches.

ng
 strnrepy

som ces.
uch as inrei ner,

of Titan z'atches
unials and so
oning

a year and in the

ken up brand

ded and closed

rs' brand
doi of Tiraii;
o on. The dara
al inteo-iews.
 e w'atcli
ara model in the
tan Watches in
1987. They
market- ro
of qiiantitativ'e
he Indian near
e import duties
e global majors
, Taiwan as low
 tan has its own
e years, the
low cost
rs to outsource
Dash. Due to the
atch market.

of the market.
y 20 units per
here are a
good
preferences is

in the number
the new entrant
players in the
rime barrier for

the companies
watches, some
ore as a fashion
 ranges offered
end of the
The strategic
s of market
despite increase
ion when Titan

tinorpaiiized
irz watches for
and dipiral n

The replacement
lso due to the
fter 6 years
ted iiiodels, and
acen4ent demand
et potential for

her pla}’ers
ega, TiJTan}’’s

ch entered in India
iding high quality
ge rhat Tiraii

ro rhe Indian
3.a marker share.
as ele¿anr
d sophistication.
e ’Regalia’ rnnge
d as exclusive
nHnine wirh each
turers (PS14000
y, sturdy and

e. The digital

ounter the
Tissot. and
tried to

Japanese
ss watches and
ata is a perfect

ntion of making it
years ago, has
di film actor
’s Your Style?’
ccording to
o denote the
fe. our core
ays On the
pirations of
atch allows
rages people to
ew months ago
 ‘ Be born every
side a truck
e, he asks the
ng unknown
him. while his
he talks of not
onstantly

T-shirts).

face. The next

ore'). Cut to a
— “let's revi›'e

More’ pushes
‘Why

constantly
dai. Aamir
him doing
a, simply put, is
ation.
 itan film, the
he first film had
ore a trip, while
m has a much
onto the screen
ltiple locations
d the look of the
Mumbai then!’
oung girl was
y — the girl
rayed,” Pandey
th an
de use of

red watch
and charming
ir

clusively for
uty, femininity
designs and
brands this year!
amongst SEC

s for beauty,
rina also
n needs no
daily 1ives in
action to be
try. Besides
s to my style I
m
a’ , which

l watches. They
look for college
5. They are
ata, the watch
t
 The z'atches have been designed primal ily for youth in the I6-30 age group, and w'ill be
a›'ailable iii a price range of Rs 2*5 ro Rs fi50. The rap line for this sub-brnn’ d is
Srronp, Super Sryle.’
The company announced 360-degree near kerinp campaign for the new offerings. lt also un
v'eiled its T\’ commercial featuring Indian ODl captain Mahendra Sing Dlioni, “in a
brand new av'atar”.

2. Titan Raga — Hazel Collection

Titan Raga has Ia‹mched rhe Hazel collection, inspired by the hues of nature. Pi iced between Rs 2, I 9ñ
and Rs 4,000, rhis rnnge comprises five st y les ’ltd versions in hold, sreel and bi-me rat finish. They are
available as bi acelers and kadas v'ith te xtured oi parrei ned JooL
and iiiorher-of-pearl dials.

3. Octane
Titan has launched the Octane collection of clironogi aph, iiiulriftincrion and retroprnde
w'atches for the urban man. The rnnge is described as blending stjie and rechnolopj .
The collection has over 35 styles and is priced betz'een Rs. fi,000 and Rs 7,500.

4. fiebula Celeste
lt is a limited edition collecrion ofjeu'elleç’ rHnepieces. They are ci aLted in I8k u'hite and yeJJow
gold, Pi ices i ange from Rs, ó Jakh to Rs. 12 laLhs,

5. Raga Crystals
Titan Indiistrres Ltd has un›'eiled its nez' Raga C rysrals collection of watches in Kerala. The
tw'o new watches, called Venus and Fairy Dust, are a›'ailable in yellow ineral and bi-merat
v'ersioiis. 4’entis is priced at Rs 4,450 and Fair y Dust ar Rs 4,*50.

29
b. Titan*s Stambha
A new ladies Heritage w'rist watch 'Stamblia’ sipnifyinp fame, prosperir j and good luck was un
v'eiled as pair of Herirape collection. Mr.\’ijesh Rajan, Regional Sales Nlanapei (South), launching the
watch collection, said rhat yIans are on rhe an›’iI ro launch one new collection every month, reflecting rhe 3000-
year old art and cultural his roy' of the country.

A sale of around 7,500 watches has I›een fixed as a targer for rhis Nina nciaI }'ear in the Heritage
collection, lie added. The prices in the collection range bet ’een Rs 5,000 and Rs
1.0,000.
7. Nebula Zeus
lt is a mechanical atitoiiiatic w'atch iii solid hold for men. Priced at Rs. 1, 10,000, the limited
edition watch (500 pieces) harks back to an older era of luxury and i oiiiance.
The Nebula Zeus watch has been crnfted using Sw'iss made mechanical automatic mo›'einent n itli
gold finish and a sapphire crystal back co›'er. Other features include an instant srai t, a second hand
stop dev ice for accM ate time setting; 42 hours reserve pos ers and auto v'ind con›’enience. The watch
collection was launched by’ singer and actor , Yesunahara
Das.
8. Rnga Shimmer
lt comprises of a collection of exquisitely designed studded w'atches thar complement both Indian-wear
as well as \\''esrei ii-wear. Priced between Rs 2,995 and Rs 4,495, rhe new collection comprises
watches in hold, steel and bi-inera1 finishes.

9. Raga Di›'a
An exquisite range of w'atches for u omen in rhe Kerala iiiarket. Inspired b j traditional Kundan woi k,
this collection has been render ed iii a delightfully contemporary form. lt is priced betz'een Rs
4,000 and Rs 10,000.

10. Titan Nebula — Duet Collection

Titan Nebula, the pi eniiiiiii 18K hold w'atch brand front Tiraii, today launched the Duet
collection — three pairs of speciall j crafted gold watches for the z'eddinp season.The most premium
collection for rhis wedding season w'as iin v'eiled by popular actor Gul Panag.

30
OTHER STRATEGIES
 , and w'ill be
Super

ngs. lt also un
na

ween Rs 2, I 9ñ
inish. They are

and retroprnde
d rechnolopj .

'hite and yeJJow

s in Kerala. The
bi-merat

ood luck was un

uth), launching the
reflecting rhe 3000-

he Heritage
 the limited

c mo›'einent n itli
ai t, a second hand
. The watch

both Indian-wear
n comprises

al Kundan woi k,
d betz'een Rs

the Duet
The most premium
 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 leaking at innovati›'e retail strategies and planned to launch ten
innovative product collections soon.

$.$ Market share of the Compefltor In Domestlc Market:

HMT l9°4

dado
Casio
The strongest selling point of Titan is that it is available and affordable. Titan provides
watches for all segments, like from low-cost Sonnta 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 hns adopted the new marketing innovation to improve the
feature of the product by time to time.

31
Though the current financial environment is not in favor, but the company perfonning 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 pmduct 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 sen'ice team. discount and offers
make the company.

32
TO FI ND O¥!T THE BRAND PREFRRENCE P'OR WATCHES
Environment Analvsls:
A. The Marketing Environment:
e CompeDDve 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' arc-

h Domestic Level:
HMT
Maxima-quartz
Rado
Ca81O
> International level:
Espirt
Swatch
SeiRo
¥ FndGonHouses:
DLny
ciucci
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.

34
o Economic Core es
get all adults in
ch ten

an provides
rack for the
he premium

the domestic
the present
cale. The range
showrooms and

the company
e competitor.
because of its
mprove the

nning well

s and
pricing policy,
tee, the
and offers

ecting the

ngth and

oo much.
nies also
structure
Economic landscape:
Indian corpornre sector is nen’o‹is because of current Inflation. This pi offend occ‹MJed nor
only’ in India, but it affected all rhe counts ies d‹ie to Linired Stare financial crisis.
As v'e caine to know fi one Federarion of Indian Cliainl›er od C on4nzerce and lndrtsrry (FIC CI)
rhat ó4’.* of rhe 4.13 coinpanies are mnini currentJy in norst condirion from lasr ó inonrhs.

Consumers \’ieH’:
As z'e know' that Inflation is in double digit figures, brit the people a mo lives in urban area or
metro ciry, are may ink optimistic v ice row'ards economy.
People rhino that the economic condition of our country z'ill be improved in rhe near furtire.
Purchasing power of consumers:
Br and Name P‹M chasin¿ Po ’er{Price)
Rs.

h*U- J ,lou

ZOO-?,t5O

Bandhan

Regalia I ,*2*-7*70

Neb(la
The company's w'atch szles 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 tzrget mzrket.

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 mnrket.

From the above information we can easily understand that consumers buying more of Titan
wrisMatcli. There are few reasons behind the growth in sales of Titan .They is as follow.
> Brand name
H §Iuality of the pn›ctucts
fi Features ,which differentiate from others
i• Attractive models
 H New inno\ ation
• Political I'orces
In 2004 .*05 the new Ciovemment 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 perfonnance of
this sector for last New 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 mnke 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.

4 Legal and regulator I'orces

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

The industry can be directly affected by the cei1ain rules such as change in Taxation rate.
4 Techoologtcal forces
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 mar1et through inno›'ati›'e
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 imrket by
improve technology. And in the mid-price segment, other companies will give a tough
competition to titan.

Techaological changes:
The new marketing innovation can bring a drastically changes in the mar1eting acti›'ities of
the company. The new innov ations which can differentiate the company from the competitor

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.

• Soclo cultural I'orces

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•o of its profit afier tax on several CSR initiatis es

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

39
. TARGET MARKET
Inflation. This pi offend occ‹MJed nor
red Stare financial crisis.
on4nzerce and lndrtsrry (FIC CI)
ndirion from lasr ó inonrhs.

he people a mo lives in urban area or

y.
ll be improved in rhe near furtire.

co ’er IvHddle c Iass

(Office \\’ear)

Coinnzon CJass

Upper .viiddle C iass

Coiiples

Busmess Class

Upper Class
income increasing from Rs255.34 crore
uring the second quarter of this year. On the
rstand consumer

y in gold prices, watch segment of Titan

watch segment sales income increased from
71.89 crore during the corresponding period
pattern is

at consumers buying more of Titan

es of Titan .They is as follow.
in India.
bal relation as well as some steps to
n by decreasing rate of Cash Reserve ratio
steps help the Industries to get

he watch industry. The perfonnance of

ompanies in the world. it really helps

d relation with the political parties,

hich is it- self elected by the people the

obal area, they have to follow lots of

ch as change in Taxation rate.

e target market. Titan decided to

ot mechanical and they would start
prices.

nhance the quality and the features

target mar1et through inno›'ati›'e

t the changes in technology then they

mpetitor will capture whole imrket by
other companies will give a tough

nges in the mar1eting acti›'ities of

e the company from the competitor

ng system in wrist watch.

ing system in the wristwatch
hes which help in knowing the mood

people and the employee is the primary

he best possible way. They also takes
of the people of the areas in which

ess excellence model and tata index for

nt to its corporate social responsibility
l CSR initiatis es

areas, such as employee welfare, the

e.
 Identification
The titan industry basically deals in three segments for its watches. They were as follow.
•.• High income/elite consumers
In this segiiient mainly the consumer who buys a 'wrist watch as a fashion accessory.
•.• Middle group:
In this segment mainly consumers are like some fashion in their watches. These consumers
would not purchase a watch without comparing various offers in the market.

Lower-income people: this segment mainly consisted of lower- income consumers who want
watch mainly as the time —keeping device and purchase on the basis of price
/•fo. OF Media No. Of respondents

Ivtagazines

Newspapers

XAdlO

5.6 MARKETING MIX:

PRICE
PRODUCT
PROMOTIOJ•i

I PRICE:
As acliiese our marketing our marketing objectives, we can do some change in the pricing.
The main consideration will be in changing price are followings.
In case of some of the watches titan prices them according to the features .The
Exncta is a simple steel watch priced at Rs.600-1, 100. As the company also deals
with Spectra. Raga through pricing polic y.

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 shnre.

C hfarket Skimming:
In Indian watch industry these is no one offering pure gold watches, watches in pair jewellery watches.
Here Titan ofTers there pn›ctuct with the Indian touch in its design. the product, the
love.

41

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.

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

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 solumes 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.

Titan was first focused only on the premium segment of the watch market. As per the product
strategy they tooL, Titan ino›'ed 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. Jt seeks to achie›'e both through their
value for products compared to their prices.
42

3 PRORIOTI ON:
A. ]¥fiarketing 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 l7°'6 profit margin on sales.

It is managing to successfully convince to the customer of the perceis ed 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) Czeati›’e advertising: Titan introduces a contest on cartoon network in
india,com which in›’ites children to use cieati›’ity and design watch,

The prize winning design was launched as a new watch in summer 2iXl2 collection.
Type of advertising: Titan belief es in mnking 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.
43
4. PL ACE:
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 urhan area (because the turnover in urban area is 2 10 million. while the turnover
in rural area is 90 million) plays a significant role in the success of Titan.

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 alter-sales service. These 1142 Time Zones located across 89 to'vns which
offer its customer the complete watch shopping experience.

B. Value Marti
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 mnin 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.
A Sonata store is also an Authorized Semice Centre for Sonata it 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
affont to maintain only limited stock.
s follow.

se consumers

o want

pricing.

atures .The
y also deals
 nt, therefore by
watches which
re a customer
es to

wellery watches.

he marketing

tified by the

in general. as
solumes but not
e but not in
mid as profits at

er the product
base. Titan
the past few

gh their
m the dealer

ence they

ORLD WATCH’

n the

work in

n emotional
or the Titan

believes in

stribute its
yle in India,
the turnover

der one roof,

es and also
o'vns which

these it offering
ed watch enjoy.
ng as a normal
g the customer
rands. Sonata
in more. These
 5.7 CONSUMER BUYING BEHAVIOR:
Cultural

Social

Culture Reference group Personal

Subculture Family
Social Class Roles and statuses age and life-cycle Psychological
stage

Motivation
Occupation Perception

Economic
circumstances Learning Buyer
Lifestyle Beliefs and
Personality and sell- attitudes
concept

Value, perception. and preferences

Nationalities. religion, race. geographical regions
Social class
B.Social Factors
Reference Groups Social Class Roles & Status
C.Personal Factors
Economics Cizcuinstances
Occupation

Age & Life Cycle Stage

Lifestyle

Personality and sell-concept

45
 Motivation
Beliefš and attitudes
NEED A ALYSIS
Consumers need:
The demand and rhe need vai y one market sepnieiir to another sediment on the basis of pt ices
The current need can be satisfied by the follow'inp z'ays in the dither cut sepmenr.
High class. Titan offered .liii mm and Royale iii hold w'atch i ante .They were
stylish watches in all hold and precious murals.
The price is betw'een Rs.20, 000 -1, 00,000.
middle income class: Titan offer ed rhe Exacra i ante in stainless sreel. There w'ere
100 different models in the range. The prices ranges are betz'een Rs.500-
700.

Low'er-income group: Titan offered the Timex n arches and later, w'heii the
ai i anpenieiit w'ith Tindex was terminated, the SON.ATA range.
The pi ices i arises z'ere Rs.350-fi00.There was 200 different models iii the
ranges.
 Current hJarketlng ObJectlves and Performance:
Re›'ievv of Marketing Objeefives
Current marketing objecti›'es of TAT.4 ai e ro strengthen India's Industrial base through the proper
titil ination of resources like employee and materials. Besides, the coiiipaiiy seeks ro
reach rhe height of excellence atmosphere u hich is free from fear and threat.

Performance Analysis
Tiraii Industi ies ac1aie›'cd significant prow't1a during the year ended 200>-08. \\''atch sepmenr sales
also Orcs' by 1 >.2 per cent ro Rs 9.1.8.7 crore. .All brands of the coiiipaiiy may c performed
well and new.' introductions in Kents' v.'arches. the Raga Crystal for ladies.

5.8 STP AN ALYSIS

The STP Process:

IdeaJsfy Set 8egnnts

SEGMENTATION:
Dividing the market by giouping 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 sen'e
them with better value propositions.

A market comprises of different consumers possessing innuiiierable tastes and preferences.

Depending on their marketing approach and the nnture 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
48
AJ SEGMENT MARKET fiNG r
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
iiiarket will be on providing enhanced sen'ice 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:
lVlass
Mid-premium
luxury
 B) IJ•iDIA'IDUAL MARKETING:
Indi›'idual Marketing is the extreme level of segmentation in which marketers focus
on indi›'idual customers.

TITAN PERSPECTIVE
Titan has not applied this for its marketing.
C j NICHE RfARKRTING:
A niche is more narrowly defined group, typically a small market whose needs are not well
served. Marketers usually identify niches by disiding a segment into sub segments or
defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTJ VE
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 olTering from Rs 300(affonlable)
watches with style statements

49
OJ LOCA L JYi ARKETI NG:
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 lihe M.K. Gandhi, Mr. Jawaharlal
Nehru, etc. so that the customers can identify the product with those dignitaries.

S0
CRITER3A FOR SEGMENTING CONSUMER M ARKET:
Markets are mostly segmented on the hasis of geographic, demographic and psychographic
factors:

Geographic segmentation:
It calls for disiding 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 hasis 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 custoiiier groups.
The following are some of the demographic variables used to segment the mnrkel:

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, Smiata, etc.
b) For the age group 1&30, brands like FAST TRACK. TECHNOLOC;Y, SONATA. etc.
c) For the age group 30-55, brands like SONATA, NEBULA, RAC;A, STEEL, REC;ALIA.
BANDHAN, etc.

S1
GENDER:
Gender segiiientarion has been applied to clothing hair styling cosmetic s, wristwatches,
magazines etc. Ther e are certain brands, which are positioned excltisiv'ely for a specific sex.
TITAN PERSPECTI4’E
Titan markets its product across:
Sex jsreel, regalia, nebula, fast track, technology, sonata, edge, Hip)
Gents (fliy)
Ladies (i aha)
Plan red couples jbandhan)
INCOAIE:
Mai kerei s tend to sediment product and services on the basis of iiicoiiie gi oups. Now'adays,
companies hav'e recognized rhe potential of lower end iiicoiiie groups and hav'e starred rai
gerinp them.

TITAN PERSPECTl\’E
Titan offers its pi oducts n itli a pi ice range to suit the differ enr iiicoiiie groups such as.
- Below Rs 500
- Between Rs (500-1 500)
- Betw'een Rs (1500-3000)
- Betw'een Rs (3000-5000)
- Betw'een Rs (5000- 10000)
- Abov'e Rs 10000
GEUER.4TION
Generation plays a major role iii segmenting markets. Every generation is deeply influenced
bj vaxioms acti›'iries. Such infiiences deeply impact rheir product purchase pattern.
TITAN PERSPECTl\’E
Titan has iiiany products to satisfy all the generations. And through constant
inno›'atioii Titan developed iiiany products for nez' penei ations like FAST TRACK,
TEC HNOLOG\’, and FL IP etc

SOC IAL CLASS

Social Class segmentation is influenced by customer choices of automobiles, interior decor
ation, clothing pt efereiices erc. The tastes and pt efereiices of rhe social class also
change according to tHne.

TITAN PERSPECTl\’E
Tiraii has realized the demand of the society and has marketed its products for each of the
following social str ata.
First se•ment:
For this sepnienr, w'atch is a fashion sratemenr. Titan has RO\’ALE, AUR U Al, and NEBHiLA for
this sepmenr. These pi oducts have specialties like Eni opean leather, sapphire crystal,
scratch resistant, crnfted u ith I S ct. solid hold & inlaid wirh precious stories.

Second S.e ment:

For this segment also, w'atc1i is all about fashion but price does iiiatter to them. In this range, Tiran
has R.eG.e, TECHNOLOGñ ', and F.&STRACK erc. These products ha›’e digital rechnoIo¿y & of trendy’
shapes. A trna}'s syIash ooinph on ro ¿’our ward roI›es and sineai
danger on yo‹M look.

Third se•ment:
For this sepmenr, w'atch is just an device to show' the tune. They in vest after a lot of thoughts.
In tIHs catego¿’, Titan has TI/v\ E X, SONATA, K.&RISHMA, etc

PSYCHOGRACPHI 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.

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, TECHNOLOC;Y, etc. And in the mnss section, it has
SONATA. TIMEX and KARISHMA.
 PERSON ALITY•
Marketers can use personality variables to segment markets. They endow their
products with brand personalities that correspond to consumer personalities.

TITAN PERSPECTIVE
Titan ad›'ertises its products by portraying movie stars as user of its products and it
olTezs a lot of option to its customers.

For crumple:-
In economy category. 60 products
In luxury category, 26 products
In sports & casunl 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.

86
BEH AS'IORAL SEG CIENT 4TIO U:
Organizations can div'ide iiiarkets on the basis of beha›'ior that coiisiiiiier show's toz'ards rhe
usage of the products. \’ai ions vai iables for sepmenring near ker on rhe basis of purchase
beha›'ior of customers are occasions, benefits, riser status, usage rate, loyalty, etc.

OC CASI OSS:
markets can be classified on the basis of v'ariotis occasions rhat customers encounter because
people need different pi oducts for different occasions.
TITAN PERSPECTl\’E
Titan also offers occasion specific products like
Formal-
1EB1LLA,
STEEL
R.SGA,
GOLDSSTEEL,
Dress near -
REG.ML IA,
 RAGA,
GOL D STEEL,
RO1'ALE.
Fashion-
STEEL,
R.SGA,
GOLDSSTEEL,
FAST TRACK.
BENE FITS
market is di›'ided on rhe basis of the benefits customer s seek fi out the products. Bene fit
sepiiientarion can be used ro position variotis brnnds z'ithiii the same product category.
TITAN PERSPECTI4’E
Titan product has benefits IiLe:
It yro ides the "TIT.&N WORLD" SERVICE CENTRE in 174 towns.
lt proc ides a huge product range to choose from.
Its products have good life cycle.
Usage Rate: The usage rate of a pairiculai pi oduct.'service can be div'ided into heav'y, iiiedium
and liphr. marketers are usually attracted to hear y users rhan other rype of
users.

Loyalty Status: The lojalr j status of a pan icular near her can be divided into different
groups, according ro rhe intensity of their loyalty to rhese brnnds.
h4ARKET SEGME UTAT ION PR€iC EDL!RE
It is a three step yroced‹Me:
Service stage:
Her e the i eseai chei conducts exploratory iiiteo'iez's and focused groups to Main
insights into consumer iiioriv'ations arririides and betray iors.

Then rhe i esearclier prepares a questionnaire and collects dara on attributes and
their importance i atinks, brand as areness and bi and rnrinps, product usage
patterns, arritiides toz'ards pi odtict category and deiiiopraphics, geographic,
psychoprapliics
and media graphics of the respondents.

? Analysis Stage:
lii this the reseai chei applies factor analysis to rhe data to i enio›'e highly correlated
›'ariables then apply cluster analysis to ci eate specific number of iiiaxiiiial ly differ enr
sepmenrs.
 Profiling stage:
Here each cluster is pi ofi led accoi ding to its distinguishing attitudes, behav'ior,
demographics, psjchoprapliics, and media graphics and iiiedia patterns. Each sepmenr is
given a name depending on its dominant charncteristics. Market sepmenration
should be redone periodicall j because they change.

59
EFFECT I VE SEG hlENT ATION:
For efTecrive segmentation, set,44entarion ›’ariahIes need to exhibit certain characteristics.
These are discussed I›eJow:

fYIeasurable:
The vai iable used for the segiiientarioii of rhe markets should be iiieasM able to be
effective. For example, a v'ariable like the purchasing pow'er of potential ciisroiiier is
iiieasurnble.

Substantial:
When di›'iding the mai Set into segments, a marketer should rate enough car e to see
that each segment consist of adequate number of customer s woirh catering to.
.Accessible:
The segment of the market rhat a marketer is rrying to rai get should be accessible ro
The appropi rate selection of rhe media, irs coverage and other factors like rhe product
distr ibution facilities play a iiiajoi i ole in a marketer becoming accessible to
C IU ROID8 FS .
Dlfferenttable:
Each segment of rhe market should be different from orhers iii rei iris of irs needs and
wants. Each segment requires differ enr marketing strategies because it responds ro
different srratepies differ entl j .

.4cttonable:
A segmentation vamiable should help marketers dev'elop effects ve marketing propraiiis
to arrract and serve potential customer s effectively.
TARGETING:
It is the second stnge of the Segment “Target” Position (STP) process. Afier the most attractive
segments are selected, a company should not directly stnrt 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.
Tfte four sub activities within targeting aro:
1. Defining the abilities of the company and resources needed to enter a mnrkel
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.
segraent or series of segment and ‘target’ ic'therru Re sources aod efforts wkl be targeted
at the:
61

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.

Secondly, the marketer could ignore the differences in the segments, and choose to
aim a single product at all segments i the whole mnrkel. For example, Sonata and Fast
track brands of Titan are targeting mass and mid premium segment

Finnlly, 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 mnrkel. Following is the table which represents the various sub
brands and their targeted segments of TITAN

62
 POSITIONI UG
Introd-uction
The importance of an image has become an emotional pair of every one. .4 brand name
repi esents the Outage, character and personality of a brnnd. A brand name should be
clear , lucid, easy to remember, distinct from the coiiipetition and should not be penei ic to
the carepory. It should becoiiie customefis Top of rhe mind brand f TOM B). Most successful
brand names would satisfy rhese criterions to quite an extent. Bi and loyalty is one thing
which has made the branding more popular. As someone riphtl y said "Bi and loyalty is not
dead. it's just moi e like loyalty to a girl.''boyfriend than loyalty to a liusband/u ife".
Vast flow' of names today intakes a brand harder ro differentiate them unless they come
out u itli their ow'n uniqueness. This way, rhey could come to their special position iii ever
yday life. The image follow ink a particular name is also determined by the i ole of
coiniiiunication ir undergoes: of z'hich the follow'inps ai e included: its iiianiier, personality,
behav'ior, ethics, v'alues, etc. The iiiiportance of brands depends on the ti ue ambitions of rhe
company .
The increasing spread and doiiiination of international brands has seemed ine›'irable for at
least rhe lasr 30 years. .All around rhe u orld w'e have u itnessed the disappear ance of
local brands and local v'ariants.

Bur despite rhis ti end, local and regional brnnds still remain strong. In India, for example,
protected for iiiany year s by po›'erniiient policy front the in v'asion of foreign
brands, hoiiiegi oz'n brands dominate many sector s - Tata auroiiiobiles and Tuan z'atches,
to name brit a few'. In the end people want borh global and local brands - brands that
make them feel part of u ider inrei national community and bi arids that root them in rheir
home culture.

Why are brands so Important?

Strong brands help a company to maintain market share in the face of a changing competitive
environment and it has been shown that a stiong market share is associated with abo›'e-
average profits. Blands have become assets in their own right. In addition, they represent low-risk
opportunities for the manufacNrer or semice proc ider and they also represent
reduced risk for the consumer.

What 1s meant bv brand posiflonlne?

Positioning is statement that shows how you are different, better or more special than your
competition. Position is that one thing that one descriptive sentence or slogan the company is
known for that one specific idea that first comes to mind about the product. It is that one
characteristic that sets the serv ice apart from competitors.
For
Volvo thnt one thing is “Safety.” McDonalds is “A fun place for kids.”
In Jakarta, Indonesia. Bluebird is 'The safest way to travel by taxi.”
Why braod positioning is important?
We need to be clear about why it is important to position a brand-and exactly what a brand is. As
consumers. we are all influenced by the effects of a powerful brand positioning-
"brainwashed." so to speak-to have preference for one sersus another. But today there are so
many choices for consumers that this term hns a secondary derivation-"whitewashing."

That is, the brand choices are so varied and the differentiation so minimal in terns of product
functionality that we're faced with a sea of indiscemible offerings.

This is why it is critical for a brand to be well positioned and uniquely differentiated.
What does tbe result of brand posltioolo{t research show*
The market position of a brand shows where a specific brand is hated. It also shows the
relationship to competitive brands. We can determine the market position of a brand on the
basis of the answers to the following four questions:

1. Why (which benefits and advantages does the new brand bring to the consumer)
2. When (determining the opportunities for which the brand is most suitable)
3. For whom (it is about the determination of the consumer of a brand or target group)
4. Against whom (determining the main competitive brands)

TITAN PERSPECTIVE
a. Titan initially pioneered the concept of "Gifting watches". The ads captured the
essence of gifiing and along with the trendy music, easily caught the imagination of the
market.

b. Custoiiiers who were fed up with ugly time machines welcomed the brand and Titzn had
a dream run for many years. Titan then moved away from lifting. Titan was positioning
itself as a fashion accessory rather than a tiiiie keeping device. Titzn also found its persona
in Mr. Aamir khan w'hicli provided the much needed edge to the brand. Titan w'as careful
in keeping the brand above the celebrity. The ads were fresh and neatly executed. The idea
was to mnke watches that would be seen as style and fashion accessories rather than
just utilitarian devices. The company decided to use Aninir in brand and product
communication on television and in the print and outdoor
media.
 Though, the vast distribution and serf ice neMork of TIL had served as an effective
entry barrier in the 1990s, foreign brands were becoming increasingly popular in the
early 2000s, thanks to the paradigm shifts in the retail scenario and the growing
affluence of the Indian consuiiiers.

6S
And TIL found that it was not snfe even at the bottom of the pyramid. The grey
market with cheap Chinese imports and the unorganized sector had cornered a sizable
chunk of the low-end market. The appointment of Aninir Khan as brand ambassador
for the Titan brand was seen as an attempt to broad hase the appeal of the Titan brand.

c. Titan also w'as pushing another strategy. Watches w'ere perceived as a onetime
buy and consumers seldom owned multiple w'atches. So Titan pushed the concept of
"Matching Watches to Clothes" in the recent commercials. Since men are becoming iiiore
serious customers of fashion accessories, this is strategy that is worth trying out. For Titan.
even if the concept fails, lt has created the much needed freshness in the brand.

d. Earlier Fast track was targeted at 20-25 year olds and positioned along the line "Cool
watches from Titan". Then the company found out that the youlh in the age group of 11 -20
yezrs account for 42% of w'atch buying in India. Based on this insight, the company
relaunched the brand low'ering the target segment to 18-30 year olds with the baseline
"idow mzny you have?". Again the strategy aimed at proiiioting the mltiple w'atch
owning concepts. Fastrack also launched a range of fashion accessories like
Sunglasses trying to be a lifestyle brand.

„,....
CHAPTER 6 — CO31PANY PROFILE
6. 1 Over vien':
Titan Industries was established in 1954 as a joint ›'enture berw'eeii rhe Tata Group and the Tamil
Nadu Industrial De›'elopnieiit Corpoi ation. The company brought abour a parndigiii shift in rhe
Indian w'arcli iiiarker, offering quai tz teclinoloy' wirh inteniational styling, manufactured in a
stare-of-the-art factory ar Hoiiser, Tami I Nadu. Lev'ernpinp its understanding of differ enr
segments iii the u arch iiiarket, the coiiipaiiy launched a second independent u atch brnnd-Sonata,
as a ›'aliie brand to those seeking to buy ftiiicrioiiall j sryled u arches at affoi dable prices. lii addition
it focused on the yourh u ith its third brand — Fastrack. It has also pi emiiiiii fashion watches by
acquiring a license for global brands such as Tommy Hilfipei and H Argo Boss, z'hile. Ir has also
iii its poirfolio its first Swiss Made march brand — Xj lys.
lii 1995, the company di›'ersified into jewellery under rhe brand — Tanishq to capitalize on a
frnpinented market oper ating wirh no brands in urban cities. In 2005, the company launched irs
second Jewellery bi and, Gold Plus, for capitalizing on the opportunity in sudah too us and rim al India.
The company has now' div'ersified inro fashion Eyewear by launching Fastrnck Eye- Gear
sunglasses, as w'ell as Pi escriprion Eyew'eai . The Coiiipaiiy le›'eraped its inaniifactM ink
competencies and brnnched inro Pi ecision Engineer ink Products and Machine Building from 2003.

Today Tiraii Industries is India's leading inaniifactM er of z'atches and jew ellei y
eiiiploj ink 3,800 people. Titan and Tanishq ai e aiiiong the niosr admired brands in their
carepories.

6.2 PRODUCTS'
The coiiipaiiy iiiaiiufactures over 8 million w'atches per annum and has a customer base of over
80 million. lt has iiianufacturinp and asse mbly oper ations at Hosure, Dehrndiiii,
Roorkee and Baddi iii Himachal Pradesh and an PCB plant in Goa. Its main product s ai e:
1. 'Ur'atches ' Ciin enrl j mantifiacrtires four retain u arch bi ands ›'iz.
•' Titan for rhe pi emniiii segment,
•' Fast ti ack — focused on the youth and trendy fashion space,
•' Sonata for rhe mass near her and
•' Nyl js for the premium market.
The Titan brand architects e comprises sever al sub-bi ands, each of which is a leader in its
segment. Notable aiiiong rheni are:
Titan Edge — The w'orld's slimiest watch which stands for the philosophy of "less is iiiore":
Titan Raga — the feminine and sensuous accessory for today’s woman,
Nebula - crafted in solid hold and precious stones and several orher collections like Wall
Srreet, Her ita¿e, Regalia, Octane, Oi ion, Dna, Zoop, V'WF and the .4v iaroi series, all of z'hich
forint a par t of rhe Tiraii n ardrobe. Sonata is today India's lai test z'atch selling brand and is priced
betz'een Rs 29fi.'- and Rs 1200/-.
The coiiipaiiy's fii sr Sz'iss Made watch — Xyljs is for the lii-end connoisseur and nez' age
achiever . Ir also markets Tommy Hilfiger w'atclies under a licensing arrangement and is
introducing H Argo Boss. Today, the Titan poirfolio has about 65°.â of rhe domestic near ker
share iii the organized u arch near ker.
The con4yany has 225 excJ‹isi e showrooms christened '1\’’orld of Titan’, inaLin¿ it an4on¿st rhe
Jar¿esr chains in its category. Tiran ’arches are sold the ouch over I2,000 outlets in over 2,ñ00
cities and internationally in over 30 counts ies, pmaril}' in the Middle-Easr and .4.sia Pacific
2. Jew chem Taiiisliq is India's lai test and fastest gi oz'inp jez'ellery brand w'ith a premium
range of gold jew ellery studded wirh diaiiionds or colored gems and a wide range in 22kt
piii e gold. Platinum jew'ellery is also a pair of the product range Tanishq is one of India's
lai gest specialty i etailers and is ti ansfomiing rhe jew ellery market in India 102 boutiques
in 72 cities across the country. 'Gold Plus' is the recent i etai I offering for rhe mass market
n itli yIain hold jeweller' seJhng through 19 stores in 19 towns. The je ’eJJery division has its
o ’n deslgn studio.

3 9.x’e o eap• Titan Eye— is cun entl j on a pilot mode with 5 stores in 2 cities and has
sunglasses under Fasti ack bi and and prescription eyewear consisting of Fi anies, Lenses,
Sunglasses, Accessor res and Contact Leases of iii-house brands and orher premium brands.

59
6.3 PREC ISION ENGI U EERING
The coiiipaiiy's Precision Engineer ink Div'ision supplies pi ecision components ro rhe a›'ionics and
the automotive industi y. It also iiianufactures dashboard clocks as OEM ro car mantifacrtn ers in
Europe and America. The div'ision also pro›'ides fully inreprnred Automation solutions

6.4 AVY'ARDS
The coiiipaiiy has been az'arded rhe fol loz'inp distinctions:
Being named rhe No. I Brand in the Consumer DurnbJes category in the "Brand Equip'" Survey
of The Economic Tin4es, a leading Indian financial dail}'.
The Titan Design Team z'oii the Young Design Entrepreneur of the \’ear as ard ar the design awards
instituted by rhe National Institute of Design and Business \\''orld, a leading Indian iiiagaziiie. The
team has non * accreditations also.
Both Titan and Tamshq fia›’e been adjudged "/v\ost Admired Brands" as well as "Retailerof the
ñ'ear" by Images Fashion Forum in consec‹iti›’e years.
Retail Asia and /v\edia Magazine — Sin¿ayore adj‹id¿ed Titan Industries as amongst the leading
Retailing Companies in India.

Titan has won the Brnnd LeaderslHy a ’ard at the India Brand Summit. The THne
Products Di›’ision of rhe company’ ’as awarded rhe SRD Q\’ Awal d in 2006.

70
 CHAPTER 7- DATA COLLECTION AND SURVEY ANALYSIS
Figure 1: Titan sub-brands possessed by respondents
Table Not: Titsn sub-brands possemed by respondents
Fastrack
Nebula
Survey Analysis: Titan sub-brand owned
This was a multiple choice question where respondents were as1ed to choose sub- brands of Titan
which they possess. Jt was found that around 72% of the consumers in the age group of 20-30 years
possess Fastmck brand. 14% Sonata, 6°'6 Raga, 4% Nebula and only 2°'6 own WWF and Edge

71
2. Since flow many months / yeazs have you bcea using Titaa watch?
Figure 2: Period of Titan watch's use
Table No2: Period of Titan watch’s use
001-2004
2004—2007 24
2007-2010
Survey Analysis: Period of use
The respondents were asked to mention since how long they hnve been brand loyal to Titan This
was an open ended question and hence various responses were received. The minimum
period of use was set as one year, as mentioned earlier, while the maximum period of use was
determined For convenience. the different responses are categorized into three: 2001year —
2004years, 2004years — 2007years and 2007years — 20 l0years.64% of the respondents
fall into first category, i , they are using Titan watch in the range of one to four years 24%
respondents are in second category and the rest 12 °A are using it for more thnn seven years

72
Q3.W
*7 *° r• prefer Titan brenfi?
U

Table 3: Reasons for brand prefeceace

Attractis e designs Reasonable Price Brand image
mood quality

Survey Analysis Reasons for brand loyalty

The respondents were asked to select the reasons from the options given for their preference for
Titan watches For this question, multi-responses were received

73
4. Do 7^^ member the original tagline of Titaa watches? If yes, please mention.
Figure 4: Recall of Titan's original tagline
Table No 4: Recall of Titan's original tagline
78
Survey Analysis: Recall of Titan’s tagline
Titan's tagline, before brand repositioning exercise has been undertaken, was “What's your style” This
tagline was adopted during first zebranding exercise in 2tXI4
The respondents were asked to indicate whether they remember the tagline in
dichotomous way, i.e., as “yes” or ‘to". ft was found that only 22% of the respondents we re able to
recall the tagline and the remaining 78% answered in negative.

74
 s. Slave you seen the advertisement of Titen watches? In which media have you seen the
Figure 5: Major Advertisement media
Tabk No.5 Major Advertisement media
Magazines 25
Newspaper 36
Hoardings Radio

Survey Analysis: Titan's advertisements

Titan advertises its watches in almost all media sehicles The adsertisements can be seen in
TV. magazines, newspaper, hoardings, billboards, radio and so on.
All the 50 respondents have seen the adsertisements of Titan watches in various
media This was a multi-response question and the options given to select were restricted to
TV. magazines, newspapers. hoardings and radio.

75
 P'igure 6: .Awareness of brand ambassador
40
Figure 6: Awareness of brand awibessador
Table J•io 6: Awareness of tirand ambassafior
Don't know
ozrect responses 46

Survey Analysis: Brand Ambassador of Titan

Aninir Khan is the brand ainhassador of Titan since 2004. When the respondents were asked to
recollect the same, it was found that 46 of 50 sample size were able to correctly mention
the brand ambassador while the remaining 4 did not give any response implying that
they are not aware of it

76
 Table No 7: Awareness of new tagline
Aware 36
ot Aware

Survey Analysis: .Awareness of new tagline — •Be JYiore”

The sumey has revealed that less than half of the total numbers of respondents are aware of new
tagline 3d% of the respondents could correctly mention the tagline while the
zest are not even aware that Titan has adopted major zebranding strategies last year

77
8. How *• 7^^ •^‹ *h newdesigns of Titan?
e e

Figure 8: Consumer perception of new designs

Table J•io 8: Consumer perception of new designs
Average
Above Aserage
Good 39

Surv4• *^ 7^ ^:
i
°*' 8^S °f
i
i+ °
®

Titan hns launched several new designs in 2iXl8 in its existing collections and as per its plans
introduced new product collections also The respondents were asked to rate the new designs as
“poor”, “average”, “above average”, “good” and 'excellent”.7 respondents feel
that their designs are “excellent”, 39 have rated them as “good” and 4 hase rated as

78
9. Have you seen the new campaign of Titan?
Figure 9: Awareness of new campaign
Table No 9: .'I.wazeness ofnew campaiga
ot Aware
Survg *^^!7^ •: New Campaign of Titan
i

The sun'ey has revealed that the percentage of respondents who hase seen the new
campaign focussing on “be more” featuring Aamir Khan is 50°o.
79
IO. Do you think the new advertisement is elFective ia inspiriag consumers to have a
aew look everyday and be more in lives?
 ices

ey were

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m Not at aT I effective
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Not at a High
effective effective

P'igure UI: Consumer perception of new campaign

Table No Ill: Consumer perception of new campaign
ot at all effective
Effective 16
iglily Effective

Survey Analysis: Rating of J•iew Campaign

The 50°A of the respondents who hnve seen the new campaign were asked to rate it with
respect to how effectise the campaign is in inspiring consumers to have a new look everyday
and be more in lives.
The respondents were asked to rate it as 'not at all effective”, “effective” and “highly
effectise”. 16 out of 25 respondents consider the new campaign to be “highly effective while
the remaining 9 rated it as 'effective”
11. How do you rate Titan's exclusive showrootris?
AO
20
10
Figure 11: Consumer perception of store ambience
Table Not : Consumer perception of store ambieace
ood
Survey Analysis: Titan's exclusive showrooms
The respondents were asked to rate Titan's exclusis e showrooms on 5 point rating scale —
Abose Average, Good and Excellent The factors related to showrooms that
were provided to the respondents for rating are — store ambience. sales personnel. after
sales sen'ice and display of watches
36 of the 50 respondents have rated store ambience as ‘food” and 7 each rated as “Above
Average” and 'Excellent” This proves that store ambience plays an important role in
consumer perception of service quality
12. How do you rate Titan's showrooms sales personnel?
IS
10

Figure 12: Consumer perception of sales personnel

Table hoJ2: Consumer perception of sales personnel
ood 35
With respect to snles personnel, 35 respondents rated them as ‘food”. while 4 each
rated as “Poor” and “Average’ , 7 respondents gave rating of “Abose Average”.
13. ftort' do you rate after sales service of fitan?
Figure 13: Consumer Perception about after sales service
Figure 13: Consumer Perception nbouf aAer sales service
Table ho13: Consumer Perception about after sales service
.verage
ove Average
Good

Surge*’.4nnlysis: .lfter snles sen'ice

In the survey, 3 I ont of 30 respondents rated afier sales semlce as” Good' , 4 each as
’A›'ernge", ".4.bove A›’erage",”Excellent" ’hile 7 respondents rated as "Poor"
t4. What is your perception about ^i^P!^7 •!‹i‹•^ ^^!^*+^*
Figure 14: Coasuzner perception of Display of watches
+s‹ ad
fiiguze 14: Consumer perception of Display of watches
Table Nol4: Consumer perception of D
i^P ^7 ° *^* °S

ood
Survey Analysis: Display of Titan watches
Most of the respondents have given high ratings to the display of watches in Titan showroom. 22
respondents rated it as “Excellent”, 24 respondents as “Good” and only 4 respondents
t5. What is 7•^• •••••!! r zceptioa abo t Titaa showrooms?
e u

Figure 15: Overall perception about Titan showrooms

2s
fiiguze 15: Overall perception about Titan showrooms
Table No15: Overall perception about Titan showrooms
ood
Survey Analysis: Overall perception about Milan showroom
The respondents were also asked to give oserall rating to Titan's exclusive showrooms was
found that out of total 50 respondents, 30 rated as “good” while the remaining considered the
showrmms to be “excellent”.
Around 50% of the respondents rated all the variables related to Titan's exclusive
showrooms as “good” This shows that the store ambience, sales personnel, afier sales service and
display of watches in the showrmms play a major role in determining the customer
perception about brand.
7.2 FINDINGS OF THE SL!RS’EY
 The findings of the consiiiiier as areness suo-ey ai e Iisred below .
*2?o of the respondents in the age gi oup of 20 — 30 years possess fast ti ack watch. This
show s that rhe positioning strate y' of these z'atches has been good.
Most of the consumers prefer Tiraii u arches for their arrractiv'e designs and good quality.
How'ever, there is a misconception about pricing of Titan products among rhe consiiiiiers. They
perceive rheni to be high priced.
Logos and taglines are rnrel j noticed by the watch consiiiiiers. Hence, any change in them
also does unnoticed.
Advertisement iii mass iiiedia such as tele›'ision, nez'spapers, and magazines are besr iiieans
to spread as areness abour brnnd.
Celebi ity eiidoi seinent of watches not out j increases the v'isibilitj of the product but also gives
an assurance to the consumer s that ir is of high quality.
Titan watches’ designs ai e rared as good” by 78°t of rhe respondents. This indicates that rhey
are looking for war d for nioi e iiinov ariv'e designs ro be introduced by the company.
Only 50°.â of the i espondents ha›'e seen the nez' campaign launched by Tiraii watches in
July 2008. This implies thar the reach of the campaign in six monrhs has been ro
more or less half of rhe consiiiiiers. How'ever, those a mo have seen the new campaign
consider ir to be effecti›'e iii conveying the iiiessape it intended to deli›'er, i.e., to be
more’ iii liyes.
The after sales sew ice and behav'ior of sales personnel ha›'e been piv'en low ratings
compared to other vai iables mentioned in the questionnaire z' ith respect to Tiraii's
exclusive show i ooms.

CHAPTER 8— DATA fiNTERPRETATfiON

In India 70°A of the sales in wristwatches come from the lower segment. So, Titan captures the
market by pricing the Sonata at Rs. 350 onwards. It consists of Tata guarantee. Titan prices
its world watches which are compared equal to an international competitor like Calsin Klein.
Here 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 shnre.
In the Indian watch industry there is no one olTering pure gold watches. watches in pair.
Jewellery watches. This concept though exists with foreign competition has just come to India.
TJTAN offers these products with the Indian touch in its designs. the products. and the
looLs. Hence it is able to skim the inar1et with certain pn›ctucts in these ranges.

8 I SWOT AJ•i 4LYSIS-

1. Style:
Titan first introduced the 'style’ concept in India and projected the watch as a fashion accessory.
Now a dny'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 mnking stylish 'wristwatch.

2. Nodels:
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 l000plus different varieties with a watch
for literally eseryone.
3. Exclusive products:
Today Titan holds the pride for say that its pn›ctucts both within the country and
internationally running in battle position. fts EDGE the slimmest watch in the world position.

Other than these there hase 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

1
The a›'erage price of Titan in mid-price segment is ›'ery 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 mnrk due to the lack
of choice of consumers.

2. Rlarhet share:
 As the average price of Titan wristwatch is far more thnn the other competitor, Titan has
less market shnre. 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°A which is far lower thnn HMT and Maxima.

As the company is Indian hased which leads it to the strength. where as it is the
weakness also because the company not sufficiently globalized.
89
t. SeasonaliH':
At the tune of fesriv al, like Diz'ali Titan promotes Nebula, Bandhaii because ther e is
demand for the pi oducts.
- Gold watches and pairs ai e the like as a wedding occasion.
-The fast track brand is promoted in month of June-.August w'heii schools and
colleges re-open.

2. Gifting concept:
Titan smiled as a brand which was associated itli timing and relation. The fight
concept sells well for people have come to associate Titan u'ith Jo›’e care and inaLes
emotion m high.

S. Exchanging olTer:
The Tiraii sroi es offer exchange offer of any old u arch, of any make. in any condition
functional or otherwise and recei›'e a flat discount of 25?o on rheir purchase of a
brand new, stylish and technologically adv'anced u arch from Tiraii.

40
1. Competitor:
As we know that lots of foreign brands are entering in our country with their branded watches.
As the remov at of quantitative restrictions on import watches leads to threat
to titan.

2. Premiutri segment:
As in premium segment Titan is getting tlneats Brom 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 these 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°4.Before
implementing the of marketing strategies we must ha›'e to focus on certain
things, which include the BCG Matrix representation.

A Titan industry hns 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 hnd contributed Rs.3, 03.45 crore.

91
„,....
CHAPTER - COCCLUSIO U
To increase its ›'isibiliry, Titan Company can sponsor events similar to fashion show's iii
n hich all latest designs launched at e displayed. This n ould liav'e multiplier effect
as the larest designs launched by rhe company get noticed by differ cut sepmenrs of rhe
customer s iii varied w'ays.
Tie up w'ith FM radio channels for reminder ad veriisemenrs and informing
customers abour ›'arioiis sales promotion offers front time -to-tinge.
Iripest more in R&D as ciistoiiier expectations ai e changing rapidl j . Though Tiraii
has Not more product collections, it should focus on introducing more varieties iii
already existing product collections. lii orher words, ha›'inp a limited but moi e depth
in product collections w'otild be more ads antapeous.
Introduce exclusi›'e collection for woi kind women z'hich is more
contenipoi ary and coiiiplenieiits both traditional and u estern z'ear.
majority of rhe population in India liv'e in rural areas. So, show'rooins should be ser
up ar places near er to them. Inti oduce cheaper and rough use w'atches for this
sediment.
After sales serv ice has ro be iinpro v'ed. That is, the process of sew icing and
repairing of w'atches should be iiiade fiaster. This can be done by ensuring the syaie
parts a›’aiJahilig' and training all sales personnel in Titan showrooms ro
‹nidei1ake rhese tasks.
Tie up itli mternational 'atcfi brands and inaLe them a ailable locall}'.
/v\aLe use of internet ro spread awareness among cons‹M44ers abo‹it rhe bi and.

CH 4 PTER 10
SUGGESTIONS 4ND RECO II FIEND 4TION
Stigpesrions piv'en by rhe respondents ro improve bi and innate.
 \’ai red responses were recei›'ed for this question. .All the responses have been
summarized as follows.
-I ntroduce more ti endj and iniiov'ative designs
-Focus on niche iiiarkets such as z'oi kind men and women
-Spread awai eness about av'ailability of watches in lower sepmenrs as most of rhe
consumers feel rhat Titan brnnd is s ynoiiymous w'ith premium watches
-Take sreps ro change consumer perception thar Titan z'atches ai e high priced.
-lnipro›'e afrei sales seance.

OUEST¥ONN WIRE
1. Which sub-brand of Titan watches do you possess?
a) Fast track
b) Sonata
c)Raga
d) Nebula
e) Others, please specify..................................
2. Since how many months /' years have you been using Titan watch?
3. Why do you prefer Titan brand?
a) Attractive designs.
b) Reasonable price
c) Brand image
d) Good quality
4. Do you remember the original tagline of Titan watches? IN yes. please mention.
S. idave you seen the advertisement of Titan watches? In which media have you seen the
advertisement?

b) Newspaper
c) Magazines
d) Hoardings
e) Radio
6. Who is the brand ambassador of Titan watches?
7. Are you aware of the new tagline of Titan?
a) Aware
b) Not aware
8. idow do you rate the new designs of Titan?
a) Poor
b) Average
c) Above Average
 d) Good
e) Excellent
9. Have you seen the new campaign of Titan?
a) Yes b) No
99
10. Do you thinh the new advertisement is effective in inspiring consumers to have a new
look everyday and be more in lives?
a) Not at all effective
b) Effective
c) Highly effective
11. idow do you rate Titan's exclusive showrooms with respect to the following:
(1—Poor. 2-Average, 3-Above Average, 4-mood. 5-Excellent)
a) Ambience
b) Sales personnel
c) Afier sales sen'ice
d) Display of watches
e) Overall showroom
BIBLIOGRAPHY
Marketing Management — Philip Kotler
Special Studies in Marketing- Romeo S. Møscarenhøs
wv'w.titanwo1d.com
CO tÌtdC
wv'w.indianfo1ine.corn
'yew.econoinictimes com
ffec \•ve

ate it with
w look everyday
ly
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ating scale —
howrooms that
onnel. after

s “Above
nt role in
ach
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dered the
sive
les service and
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good quality.
iiiiiers. They

e in them

besr iiieans

but also gives

es that rhey
ompany.
watches in
been ro
ampaign
e., to be

ow ratings
to Tiraii's

n captures the
Titan prices
Calsin Klein.
the market
 in pair.
ome to India.

hion accessory.
is a craze for

their

watch

ntry and
world position.

retail

and

er
0. In the
lack
r, Titan has
d for them
et

is the

e is

hools and

he fight
nd inaLes

ndition
ase of a

anded watches.

nd such

o, the
n a cell phone
zed sector
y 5°4.Before

evious year
.45 crore.

on show's iii
iplier effect
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ough Tiraii
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ore

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for this

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