Вы находитесь на странице: 1из 33

INDUSTRY OVERVIEW History of the Watch market: The Indian watch industry began in the year 1961 with

the commissioning of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tatas formed Titan Watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy decision, which later changed the face of the Indian watch market- to manufacture only quartz watches. Liberalization in 1992 and the removal of quantitative restrictions due to WTO has opened the doors for many foreign brands in the Indian market the market stood to witness intensive competition between foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Frderique Constant, Mont Blanc, Swatch, and many others. Many watch makers have made significant inroads in the industry and others are in the process of establishing themselves, currently. Besides this, buyers are extremely choosy about the brand and type of wrist watches they wear. Being extremely brand conscious, their tastes have evolved over the years and have gone beyond the realms of durability to choose in terms of aesthetics and elegance. Thus it is a buyer s market with multitude of designs that have entered and flooded the market place. The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. The organized sector alone contributes up to 30 percent of this figure, and the rest of the demand is being met by the unorganized grey sector. The watch market has been segmented on basis of multiple proportions such as price, benefits and types of watches. The price of the watches is a major motive in the minds of the customer. Accordingly, three segments can be identified here, namely low priced, medium priced, and high priced watches. Many customers prefer mechanical and automatic watches, while others prefer quartz watches. Newer segments are also on rise such as ladies watches, childrens watches and gents watches. Customers usually base their preferences and buying decisions on a variety of factors like price, durability, utility, aesthetic appeal and brand name. A combination of all these points ultimately forms the customers buying decision that translates into the purchase of a watch.

TOP ten players in watches Industry: 1. Titan watches 2. Citizen watches 3. Swatch watches 4. Tag Heuer 5. Omega 6. Timex group 7. Rado 8. Casio 9. Longines watches 10. Tissot

Indian Watch Industry: Figure : Porters Five Forces Model SUPPLIER POWER No strong suppliers Lack bargaining power Rise of China, Taiwan as low cost suppliers

BARRIERS TO ENTRY Cluttered Market Lack Differentiation of

DEGREE OF RIVALRY THREAT OF Increased number of firms SUBSTITUTES Low switching costs No close substitutes Strategic stakes are high

BUYER POWER Price sensitivity , Buyers Preferences

1.

Supplier Power:

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.

Buyer Power:

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 than 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 crucial 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.

4.

Degree of Rivalry:

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.

PRESENT SITUATION OF THE INDIAN WATCH MARKET:

The Indian watch market is today of 40 million units, out which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs.300. Quartz watches form two thirds of the organized sector and the rest is split between mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes from watches that are priced below Rs.1000. Watch is one of the consumer durables whose replacement rate is very high. The replacement rate of watch is 33.8%(Source: India market demographics report, 1998). This is also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is applicable after 6 years (Source: India market demographics report, 1998). So due to high scrap rate, outdated models, and the shift from the mechanical watches to the quartz watches is causing a very high replacement demand for watches. This along with the low penetration levels represent the untapped market potential for watches in India.

Segmentation of Indian Watch industry

Based on price: Mass (Rs.350-600), Popular (Rs.600-900), Premium (Rs.900-1500), Super-premium (Rs.1500-8000) Connoisseur segments (above Rs.8000)

Based on user category: Mens watches Womens watches Youth watches Kids watches Sports watches

COMPANY PROFILE
BACKGROUND:

TITAN INDUSTRIES is the organization that brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology, complemented by international styling. With India's two most recognized and loved brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated watch manufacturer in the world. The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Industries transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Industries reached out to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 135million watches world over and manufactures 13 million watches every year. With a license for premium fashion watches of global brands, Titan Industries repeated its pioneering act and brought international brands into Indian market. Tommy Hilfiger and FCUK as well as the Swiss made watch Xylys owe their presence in Indian market to Titan Industries. Entering the largely fragmented Indian jewellery market with no known brands in 1995, Titan Industries launched Tanishq, Indias most trusted and fastest growing jewellery brand. Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India. Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment. Titan Industries has also made its foray into eyewear, launching Fastrack eyewear and sunglasses, as well as prescription eyewear. The organization has leveraged its manufacturing competencies and branched into precision engineering products and machine building. With over 826 retail stores across a carpet area of over 10,08,083 sq. ft. Titan Industries has Indias largest retail network. The company has over 331exclusive World of Titan' showrooms and over 83 Fastrack stores. It also has a large network of over 700 after-salesservice centers. Titan Industries is also the largest jewellery retailer in India with over 130 Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan Eye+ stores. The company has two exclusive design studios for watches and jewellery.

Backed by over 6,000 employees, two exclusive design studios for watches and jewellery, 9 manufacturing units, and innumerable admirers world over, Titan Industries continues to grow and sets new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering.

PRODUCTS Titan's main products are: 1. Watches:

Being the world's fifth largest integrated watch manufacturer, Titan Industries has created and sold more than a 100 million pieces the world over. With a production rate of over 12 million watches per annum and a customer base of over 100 million, Titan Industries owns manufacturing and assembly operation centers in Hosur in Tamil Nadu, Dehradun, Roorkee, Pant Nagar in Uttarkhand and an Electronic Circuit Boards (ECB) plant in Goa. Capturing the important market segments and the changing fashion trends, Titan Industries has brought forth four core watch brands: Titan is designed for the mid-premium segment. Fastrack is crafted to fit the trendy fashion space with a focus on the youth. Sonata is created for the mass market and has emerged as Indias largest selling watch brand. Xylys is fashioned for the premium market, aiming at the high-end connoisseur and new-age achiever. The Titan brand architecture comprises several sub-brands, each of which is a leader in its segment. Notable among them are: Titan Edge The world's slimmest watch which stands for the philosophy of "less is more"; Titan Raga the feminine and sensuous accessory for today's woman, Nebula - crafted in solid gold and precious stones and several other collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop, WWF and the Aviator series, all of which form a part of the Titan wardrobe. Sonata is today India's largest watch selling brand and is priced between Rs 295/- and Rs 1200/-. The company's first Swiss Made watch Xylys is for the hi-end connoisseur and new age achiever. It also markets Tommy Hilfiger watches under a licensing arrangement and is introducing Hugo Boss.

Today, the Titan portfolio has about 65% of the domestic market share in the organized watch market. The company has 255 exclusive showrooms christened 'World of Titan', making it amongst the largest chains in its category. Titan watches are sold through over 12,000 outlets in over 2,500 cities and internationally in over 30 countries, primarily in the Middle-East and Asia Pacific. 2. Jewellery:

Following the suit of time products, Titan Industries Tanishq has been Indias largest, fastest growing and most popular jewellery brand. Tanishq offers a premium range of innovatively created gold jewellery with an aesthetic use of diamonds and precious, semi-precious stones in various hues. The brand offers gold jewellery, as well as unique designs crafted with diamonds, American diamonds and other precious stones. 3. Eye wear: Titan Eye+ of Titan Industries offers sunglasses under its Fastrack brand. Prescription eyewear such as lenses and contact lenses is also part of the range. Titan Eye+ offers frames, sunglasses, and accessories of Titan Industries in-house brands as well as other premium brands. 4. Precision engineering: The Precision Engineering division of Titan Industries supplies precision components to the aviation and the automotive industry. As an Original Equipment Manufacturer (OEM), the company makes dashboard clocks for car manufacturers in Europe and America. Equipped with best certifications such as AS 9100B for the aerospace segment, TS 16949 for the automotive segment and the coveted Ford Q1 status - the highest supplier recognition from Ford Titan Industries also offers fully integrated automation solutions.

AWARDS: Over the years, Titan Industries has received several prestigious awards and distinctions. Some of the recent and most noteworthy recognitions are: Titan Industries received the Award for the Most Admired Time wear Brand of the Year in 2009 for the ninth successive year for Titan, and the Most Admired

Jewellery Brand of the Year for the seventh consecutive year for Tanishq. Titan brand won the Most Valuable Brand in the State award at the IIPM & The Sunday Times STATE EXCELLENCE AWARD. Both Titan and Sonata feature in the Top 100 Brands-2009 in the Annual Survey conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase their rank to 86. Titan is ranked number 1 in the consumer durables category. Jewellery Division of Titan Industries Limited won the Eight Annual Madras Management Association award on Managerial Excellence for Manufacturing sector. Retail Asia and Media Magazine Singapore adjudged Titan Industries as amongst the leading Retailing Companies in India. Titan Industries bagged 19th position across all industry categories and 1st position in the Retail Industry category in the Economic Times Great Place to Work Institute study. The survey results show that 92% employees across Titan Industries feel that Titan is a Great Place to work! Titan Industries was one of the five organizations to be awarded the "Corporate Social Responsibilities" award - Best Commercial and Industrial Institute for 2009 10 by the Government of Tamil Nadu.

VISION & MISSION OF THE COMPANY: Our Mission: To create wealth for all our stakeholders by building highly successful businesses based on a customer-centric approach, and to contribute to the community. Our Vision: To be a world-class, innovative, progressive organisation and to build Indias most desirable brands.

Basic information Name Corporate office : : Titan Industries Limited, Tower A, Golden Enclave, Airport Road,

Bangalore-560017 Email Establishment Distribution Production plants : : : : corpcomm@titan.co.in 1984 India, Middle East, Africa, Asia Pacific, Europe India

SWOT ANALYSIS:

Strengths:a) The varied offerings to diverse segments with a clear cut positioning. b) The quality of watches is impressive. c) Innovation is core to its strategy. d) Visual Merchandizing has been Titans strength ever since its inception. e) Good retail network by WORLD OF TITAN f) Excellent customer service. g) International tie-ups with Hugo Boss and Tommy Hilfiger.

Weaknesses:a) Waterproof watches not a part of its kitty. b) Rural India does not form a substantial part of customer base. c) Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.

Opportunities:a) Under-penetrated market for watches as only 35% (approximately) of Indian population possesses watches. b) Watches positioned as a fashion wear rather than just utility products. c) With a changing consumer attitude, people like to possess multiple watches for different occasions and events. d) Huge market in the exchange business. e) Introducing waterproof watches. d) Rural market may be tapped.

Threats:From competitors a) Japanese- Citizen, Casio b) Swiss- Rolex, Omega, Rado, Tissot, Tag Heur, etc. c) Chinese watches d) Unorganized sector/ Grey market. e) Mobile phones and wall clocks are a substitute to watches. f) The fashion trend keeps on changing.

Future plans: Titans future growth plans are comprised of increasing market shares through geographical diversification as well as improving sales through change in product mix. Going forward the company plans to enter five new global markets in a year. At present Tanishq is exported only to a handful of countries, namely the Middle East and Singapore. The company plans to target both the NRIs and the American consumers for its jewellery business and hence is testing the market in the US for the same. In the domestic market it has plans to expand its portfolio of Licensed brands & Accessories. Since the manufacturing of these items would be entirely outsourced, there would be no significant risk in this venture, while it could boost profitability if successful. In watches business, the company intends to focus on rural and semi-urban markets to tap first-time watch users.

DEFINITION:

Positioning is the act of designing the companys offer so that it occupies a distinct and valued place in the minds of the target customers. - By Philip Kotler Brand positioning is defined as positioning brands clearly in target customers minds. Brand can be positioned at any three levels: product attributes, desirable benefit, and beliefs and values.

TITAN WATCHES: BRAND POSITIONING STRATEGIES

1.

Overall strategies:

Since its introduction, Titan has been positioned as a premium brand, providing high quality products. With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create a strong brand image. It follows different positioning strategies; these strategies can also be analyzed as given below: Attribute Positioning: When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga, Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! As Magic in gold and bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has been differentiated and positioned as exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique.

User Positioning: Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being contemporary, sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant and cool (the ad line says Cool watches by Titan) Benefit Positioning: The Fastrack Digital range offers the customer a functional watch that is also attractive. The digital watch has a techno-geek image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness. Competitor Positioning: With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, Cartier etc. Titan already had the Tanishq brand in this segment. However, it has tried to reposition this brand by increasing the price range to encourage more customers. Quality or Price Positioning: In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as value- for- money: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian market, Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition from lower end segment.

2.

Mens segment:

With Titan positioning its range of watches as a life-style, the Indian market started viewing watch more as a complement to dress than just a time showing machine. They are also realising that, unlike other forms of art that are meant to be admired, high-end jewellery watches have that added bonus: practical luxury with a function other than beauty. Watches have joined the list of tie, deodorant and shoes to represent the occasion and flaunt your status.

Dress Wear Titan has three brands positioned for this segment: Nebula, Regalia and Insignia: - Nebula: Marketed as the Jewellery collection from Titan, Nebula is targeted towards affluent men who consider wearing gold jewellery a symbol of status. Magical blend of most coveted of metals, Gold and craftsmanship; Nebula is more of a connoisseur watch with the lowest price model at Rs.5500. It is marketed as a watch for discerning individual positioned as a gold jewel. - Regalia: Incredibly eye-catching. magic in gold. The watch uses the unique combination of gold and bicolour looks representing the essence of dress-wear. In India, gold-look is associated with status but at the same time, the silver-look is the fashion of the day in international watches. With the combination of both, this watch is targeted towards affluent businessmen. The elegant looks and colours make it a strong competitor to the foreign brands like the Tissot, Piaget and Rado. This is also marketed as a watch for gift Special Watch for special occasion, positioning this as a costly gift.

- Insignia: The World Watch from Titan. The watch with fascinating designs and precision engineering was targeted towards the European markets. The complexity of this watch is 10 times more than a regular titan watch. Though it didnt meet with much of a success in Europe, this tag line and keyword International are used to position this watch as a world-class watch for international traveller with European tastes. Classic Watches Watches that are for every-day use and those with less frills and more value are classified as Classic watches. These watches are normally targeted towards middle and upper middle-income class consumers. - Royale: Collection of designs that suit everyday wear. Royale with its gold plated case and golden straps represents a formal every day watch targeted towards the employees who cant afford multiple watches for occasions. The watch includes designs from simple to dressy eveningwear switching between informal and formal looks based on the place and situation. - Spectra: Designed for those who look beyond the ordinary. This brand from Titan extends over wide range of prices from 900-7000. It is a classic premium watch with style, which boasts of combining the sturdiness of steel with richness of gold. The positioning of the watch is not very clear as it is targeted towards the salary earners with its lower price point models and appealing models for the corporate executives at the higher end.

Sports Watches In the Indian scenario the sport awareness is not quite there. And the market is not mature enough that consumers buy special watches for sporting except in the superpremium and segments above that. A sports watch in the mind of an average Indian is a polyamide watch with stopwatch and trendy look. So there is no clear distinction between sports watches and casual watches. But in the available market Timex, Casio, and Titan are major players and after the lifting of QR restrictions, world famous TagHeur has also entered India but in the Connoisseur segment of sports watches.

PSI2000: Titan has introduced a range of contemporary Precision Sports watches. The brand is marketed as tough, outdoor, adventure brand. (Psychographically segmented) Ranging from 800 to 7500, these watches are in direct competition with foreign brands like Swatch Irony.

Casual Wear: The segment of watches that has a variety of brands and models to appeal to the youth and mentally young people is casual wear. The watches in this segment are mainly sporty watches, which are unconventional and typically symbolize the attitudes of younger generation. Example: Titan Fast Track Cool watches from Titan. Technology Watches Wrist Watches have changed a lot from the inception- a time showing convenience machine to a status symbol. But the underlying concept remained unchanged, convenience. Stretching this concept a bit with the development of technology are the technology watches available in the market. Watch for time, status has in the new technology era is looked for convenience of carrying data. In to the competitive market with people willing to pay a premium for that advantage, a good number of brands have ventured.

-Technology (2350-8200): Multi-functional watches for the Tech-savvy. This brand is marketed as mergers of classic elegance and technological mastery giving rise to multi-functional chronographs using the solar power. This brand is positioned to compete against the Citizens EcoDrive.

3.

Womens segment: Dress Wear Titan has chiefly three brands in this category. -Nebula (6000-65000): The Jewelers Collection Nebula is a precious jewellery watch from Titan. It is marketed as a magical blend of most coveted of metals and engineering excellence. The Nebula range of watches is positioned as objects of ornamentation. A 21 carat gold watch, studded with gems it is targeted at the upper most end of the market in competition with brands such as Rolex and Cartier. -Regalia: Regalia range is positioned as Essence of dress wear. It is marketed as Incredibly eye catchingmagic in gold. With the unique combination of gold and bicolor looks and sleek case, Regalia is targeted towards middle-aged women who consider watch to be a status symbol and also representing their delicacy. It is available in many price points between Rs.1800 onwards. -Raga and the Silver Raga: Raga and the Silver Raga collection are positioned as Ethnic Indian styling for the sophisticated woman. Each piece is truly unique and represents elegance, delicacy and feminine. The designs and the bracelets represent traditional Indian ornaments as well as contemporary style. Both the watches are exclusively designed to appeal to women more as an ornamental possession than a watch. The Silver Raga has been crafted exclusively for the

sophisticated woman who believes in value-for-money and who wears silver jewellery with lan. Casual Wear: -Fast rack The womans collection presents the all-new international Frosted look, which is trendy and chic. The ad line: Fastrack- Cool watches from Titan, aims at building the brand around the cool concept. Fastrack is targeted at a personality that is young, energetic, achievement-oriented, who seeks to express her individuality by breaking free from constraints imposed by formal environments, without being a rebel. The positioning of Fastrack for men and women is almost the same.

4.

Childrens Segment

Titan has a brand called Dash! For kids. These are bright, colorful watches targeted at children aged 6-14 years. These watches are priced Rs.250 onwards to Rs.495 and are marketed under the ad line: Wow! Watches from Titan. The three main collections from Dash include the Popeye Collection, which feature cartoon character Popeye, and his friends. There is also a Digital Range, which has features like Ellight, compass, Velco straps. So Titan is positioning Dash watches as Fun watches for kids. Its features such as comic characters also appeal to the frivolous nature of the children. Dash also has a special collection for girls, with changeable bezel rings, priced at Rs.295. There are some other watches such as Pop-Swatch from Swatch, which are positioned using the same appeal that of Dash and are expected to give Dash a tough time at the same competitive prices.

STP ANALYSIS OF TITAN WATCHES:

SEGMENTATION Dividing the market by grouping the customer with similar tastes and preferences into one segment is called is called segmentation. Segmentation help marketers understand the needs of different customers better and serve them with better value propositions. A market comprises of different consumers possessing innumerable tastes and preferences. Depending on their marketing approach and the nature of the products marketers can adopt different levels of segmentation. The levels of market segmentation are:

Segment Marketing Individual Marketing Niche Marketing Local Marketing

A) SEGMENT MARKETING:

Marketers target more than one segment when it is not economically feasible to design products and services for individual segments. The focus of segmenting the market will be on providing enhanced service to the customer by offering customized products that will satisfy the needs and wants of customer in that particular segment to a large extent. Segmentation is also sometimes identifying, capturing and retaining potential new markets. Titan Perspective: Titan has segmented its business into three main categories: Mass Mid-premium Luxury

B) INDIVIDUAL MARKETING: Individual Marketing is the extreme level of

segmentation in which marketers focus on individual customers. Titan Perspective: Titan has not applied this for its marketing.
C) NICHE MARKETING: A niche is more narrowly defined group, typically a small

market whose needs are not well served. Marketers usually identify niches by dividing a segment into sub segments or defining a group seeking a distinctive mix of benefits. Titan Perspective: In a study conducted to study the customers of watch market, it is revealed that 42% of them are youth. So, TITAN tried to target this by: introducing FAST TRACK price offering from Rs 500(affordable) watches with style statements

D) LOCAL MARKETING: Marketing programs being tailored to the needs and wants

of local customer groups. The prominence of local marketing has also become very dominant. Titan Perspective: All the products of TITAN are addressed to all the customers as a whole. Localized products are not available. But some products which are available in UK have some pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal Nehru, etc. so that the customers can identify the product with those dignitaries.

CRITERIA FOR SEGMENTING CONSUMER MARKET: Markets are mostly segmented on the basis of geographic, demographic and psychographic factors: A) Geographic segmentation: It calls for dividing the market into different geographic units such as nations, states, regions, countries, and cities. B) Demographic segmentation: In this the market is divided into groups on the basis of variables such as age, family, size, life cycle, gender, income, occupation, education, religion, race, generation, nationality, social class. These variables are the most popular basis for distinguishing customer groups. The following are some of the demographic variables used to segment the market: Age:

Titan Perspective: Titan markets its products for all following age groups:

For the age group 12-20, brands like TIMEX, Sonata, etc. For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc. For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL, REGALIA, BANDHAN, etc.

Gender: Gender segmentation has been applied to clothing hairstyling cosmetics,

wristwatches, magazines etc. There are certain brands, which are positioned exclusively for a specific sex. Titan Perspective: Titan markets its product across: Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip) Gents (flip) Ladies (raga) Married couples (bandhan)

Income: Marketers tend to segment product and services on the basis of income groups.

Nowadays, companies have recognized the potential of lower end income groups and have started targeting them. Titan Perspective: Titan offers its products with a price range to suit the different income groups such as: - Below Rs 500 - Between Rs (500-1500) - Between Rs (1500-3000) - Between Rs (3000-5000) - Between Rs (5000-10000) - Above Rs 10000

Generation: Generation plays a major role in segmenting markets. Every generation is

deeply influenced by various activities. Such influences deeply impact their product purchase pattern. Titan Perspective: Titan has many products to satisfy all the generations. And through constant innovation Titan developed many products for new generations like FAST TRACK, TECHNOLOGY, and FLIP etc.

Social Class: Social Class segmentation is influenced by customer choices of

automobiles, interior decoration, clothing preferences etc. The tastes and preferences of the social class also change according to time. Titan Perspective: Titan has realized the demand of the society and has marketed its products for each of the following social strata. First segment: For this segment, watch is a fashion statement. Titan has ROYALE, AURUM, and NEBULA for this segment. These products have specialties like European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones. Second Segment: For this segment also, watch is all about fashion but price does matter to them. In this range, Titan has RAGA, TECHNOLOGY, FAST TRACK etc.

These products have digital technology & of trendy shapes. Always splash oomph on to your ward robes and smear danger on your look. Third segment: For this segment, watch is just an device to show the time. They invest after a lot of thoughts. In this category, Titan has TIMEX, SONATA, KARISHMA, etc. Psychographic Segmentation: Buyers are divided into different groups based on personality, values, belief, lifestyle, motivation, etc. People within the same demographic group can exhibit very different psychographic profiles. Lifestyle: People generally exhibit different lifestyle depending upon their income, social group etc. People usually buy the product which suit their lifestyle Titan Perspective According to the life style of people Titan has segmented its product to fit the box. Like in the luxury section it has NEBULA, AURUM etc. In the mid-premium section RAGA, GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has SONATA, TIMEX and KARISHMA . Personality: Marketers can use personality variables to segment markets. They endow their products with brand personalities that correspond to consumer personalities. Titan Perspective Titan advertises its products by portraying movie stars as user of its products and it offers a lot of option to its customers. For example:In economy category, 60 products In luxury category, 26 products In sports & casual categor y, 76 products In fashion category, 99 product Values: Values affect customer behavior in the long run. Marketers can use values and beliefs to segment the markets. Titan Perspective: Time has the same value for all irrespective of cast, creed and sex. Still, Titan successfully segmented its products according to customer values. But it is basically related to type of generation they are in to. So, the segmentation is also related to that.

BEHAVIORAL SEGMENTATION: Organizations can divide markets on the basis of behavior that consumer shows towards the usage of the products. Various variables for segmenting market on the basis of purchase behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc. Occasions: Markets can be classified on the basis of various occasions that customers encounter because people need different products for different occasions. Titan Perspective: Titan also offers occasion specific products like Formal (NEBULLA, STEEL, RAGA, GOLD&STEEL), Dress wear (REGALIA, RAGA, GOLD&STEEL, ROYALE), Fashion (TECHNOLOGY, STEEL, RAGA, GOLD&STEEL, FAST TRACK) Benefits: Market is divided on the basis of the benefits customers seek from the products. Benefit segmentation can be used to position various brands within the same product category. Titan Perspective: Titan product has benefits like: It provides the TITAN WORLD SERVICE CENTRE in 174 towns. It provides a huge product range to choose from. Its products have good life cycle. Usage Rate: The usage rate of a particular product/service can be divided into heavy, medium and light. Marketers are usually attracted to heavy users than other type of users. Loyalty Status: The loyalty status of a particular market can be divided into different groups, according to the intensity of their loyalty to these brands.

TARGETING: It is the second stage of the Segment Target Position (STP) process. After the most attractive segments are selected, a company should not directly start targeting all these segments. The attractiveness of the segments is also depending on other important factors. In the main activity of defining a target market, four sub activities are given which are the bases for deciding on which segments will actually be targeted. The four sub activities within targeting are: 1. Defining the abilities of the company and resources needed to enter a market 2. Analyzing competitors on their resources and skills 3. Considering the companys abilities compared to the competitors 4. Deciding on the actual target markets. After the market has been separated into its segments, the marketer will select a segment or series of segment and target it/them. Resources and efforts will be targeted at the:

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, Titans 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.e. the whole market. For example, Sonata and Fast track brands of Titan are targeting mass and mid premium segment. Finally, there is a multi-segment approach. Here a marketer will target a variety of different segments with a series of differentiated products. For example, Titan itself provides with the number of different brands/products which are targeting different segments in the market.

POSITIONING: Why are brands so important? Brand is a specific term and includes a name, symbol, sign or design given to a product for easy identification. It provides distinct identity to a product. In the present marketing system where identical products are quite common branding is quite essential. A manufacturer can separate his product from other identical products by giving special name called as BRAND Strong brands help a company to maintain market share in the face of a changing competitive environment and it has been shown that a strong market share is associated with aboveaverage profits. Brands have become assets in their own right. In addition, they represent low-risk opportunities for the manufacturer or service provider and they also represent reduced risk for the consumer. What is meant by brand positioning? 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 service apart from competitors. Why brand 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 versus another. But today there are so many choices for consumers that this term has a secondary derivation-"whitewashing." That is, the brand choices are so varied and the differentiation so minimal in terms of product functionality that we're faced with a sea of indiscernible offerings. This is why it is critical for a brand to be well positioned and uniquely differentiated.

TITAN PERSPECTIVE: Titan initially pioneered the concept of "Gifting watches". The ads captured the essence of gifting and along with the trendy music, easily caught the imagination of the market. Customers who were fed up with ugly time machines welcomed the brand and Titan had a dream run for many years. Titan then moved away from gifting. Titan was positioning itself as a fashion accessory rather than a time keeping device. Titan also found its persona in Mr. Aamir khan which provided the much needed edge to the brand. The company decided to use Aamir in brand and product communication on television and in the print and outdoor media. Though, the vast distribution and service network of TIL had served as an effective entry barrier in the 1990s, foreign brands were becoming increasingly popular in the early. Titan also was pushing another strategy. Watches were perceived as a onetime buy and consumers seldom owned multiple watches. So Titan pushed the concept of "Matching Watches to Clothes" in the recent commercials. Since men are becoming more serious customers of fashion accessories, this is strategy that is worth trying out. Earlier Fastrack was targeted at 20-25 year olds and positioned along the line "Cool watches from Titan". Then the company found out that the youth in the age group of 11-20 years account for 42% of watch buying in India. Based on this insight, the company re- launched the brand lowering the target segment to 18-30 year olds with the baseline

CONCLUSION:

To increase its visibility, Titan Company can sponsor events similar to fashion shows

in which all latest designs launched are displayed. This would have multiplier effect as the latest design launched by the company gets noticed by different segments of the customers in varied ways.
Tie up with FM radio channels for reminder advertisements and informing

customers about various sales promotion offers from time-to-time.


Introduce exclusive collection for working women which is more contemporary and

complements both traditional and western wear.


Majority of the population in India live in rural areas. So, showrooms should be set up

at places nearer to them. Introduce cheaper and rough use watches for this segment.
After sales service has to be improved. That is, the process of servicing and repairing

of watches should be made faster.


Tie up with international watch brands and make them available locally.

SUGGESTIONS AND RECOMMENDATION:


Suggestions given by the respondents to improve brand image. Varied responses were received for this question. All the responses have been summarized as follows:
Introduce more trendy and innovative designs Focus on niche markets such as working men and women Spread awareness about availability of watches in lower segments as most of the

consumers feel that Titan brand is synonymous with premium watches.


Take steps to change consumer perception that Titan watches are high priced. Improve after sales service.

BIBLIOGRAPHY:

Book: Special Studies in Marketing Romeo Mascarenhas.

Websites:
http://www.titan.co.in/corporate/company-profile http://www.scribd.com/doc/35823620/Titan-doc-New http://blogs.hbr.org/anthony/2011/10/three_lessons_from_titans_inno.html http://titanworld.com/in/whats-new/latest-campaigns/ http://titanworld.com/in/watches/products/

Вам также может понравиться