A

PROJECT REPORT
ON
MARKETING STRATEGY OF TITAN WATCHES

On partial fulfillment of the requirement for the award

of the degree of H.P.U Shimla.
BACHELOR OF BUSINESS ADMINISTRATION
BATCH (2010-2013)

Under the Guidance of :

Submitted by :
MR. ARVIND KUMAR
Nitesh
UNIV.
ROLLNO-6611
GAUTAM INSTITUTE OF TECHNICAL EDUCATION,
HAMIRPUR (H.P)

CERTIFICATE
This is to certify that the project entitled To study
customer satisfaction towards IDEA CELLULAR
done by Mr. Nitesh , ROLL NO.- 6611 is an authentic
work carried out by him at GAUTAM INSTITUTE OF
TECHNICAL EDUCATION under my guidance. The
matter embodied in this project work has not been
submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.

Date:

Signature of the guide

(Mr. Arvind Kumar)
(Lecturer)

ACKNOWLEDGEMENT
I would like to thanks Mr. J. GAUTAM who has been a
constant source of inspiration and my special thank to
Mr. Arvind Kumar (Project guide from the institute) for
him extensive guidance, cooperation and support.
Finally, I wish to express my gratitude to all those who have in one
way or other helped me in the successful completion of my project
report.

Nitesh

INDEX

S.NO.

CONTENT

PAGE
NO.

Introduction

Research Methodology

12

Industry Overview

14

Titan Watches : Brand Positioning Strategies

21

Titan Watches : Brand Repositioning Strategies

24

Company Profile

61

Data Collection & Survey Analysis

65

Data Interpretation

85

Conclusion

90

10

Suggestions & Recommendation

91

Questionnaire

92

Bibliography

95

CHAPTER 1: INTRODUCTION

1.1 THEORY & CONCEPT:

"A business has two - and only two - basic functions: marketing and
innovation." - Peter Drunker
The

rapid pace of change and intense

competitive pressure in today's marketplace demand that brands continuously

innovate and reinvent themselves to maintain their relevance and market
position. In this context, brand repositioning and other revitalization strategies
have become a business imperative 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 attention 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.
However, positioning focuses on the creation of brand associations - consumers'
perceptions of the attributes that differentiate the brand from competitive offers
while repositioning also implies managing existing brand associations. The
unique challenge of a 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 market changes and new
opportunities occur. Through repositioning the company can reach customers
they not intended to reach in the first place. If a brand has been established at the
5

market for some time and wish to change 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 part in the marketing
efforts because companies have to use the elements in the marketing mix to
influence the customers understanding of the position. During the movement
from something less 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 necessary to avoid this occurrence.
Some analyst argue that to successfully reposition a establish brand name
is almost impossible because repositioning of a brand can make the most loyal
customer to switch brand.

But, in some circumstances a repositioning is

necessary to gain credibility if the brand is eroded. 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
company.
Numerous failed attempts at brand repositioning testify to the difficulty of
developing and implementing such a tactic. For example, while the soft drink
brand, Mountain Dew has remained relevant to the youth market through
continuous repositioning in its thirty years of existence, Levis' Jeans has been
6

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 through an
examination of corporate brands.
1.2 LITERATURE REVIEW:
The repositioning strategy is rolled out in three stages: introductory,
elaboration and fortification stages. This involves the introduction of a new or a
repositioned brand, seeking to underline the brands value over others, and to
broaden the brand proposition. It is truly tough to change the customers
perceived attitude towards a brand, and therefore the risk 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

Selecting
Appropriate
Marketing Mix

Establishing
the
Brand
Proposition

Modifying the
Proposition

Rolling Out the

Strategy

-Repositioning

-Introductory Stage

-Updating the
Personality

-Elaboration Stage
-Fortification Stage

The implication with the term repositioning is that a company modifies

something that is already present in the market and in the consumers mind. The
definition of repositioning changes different individuals and professions.

To view the different definitions and perceive a greater understanding about this
concept, three examples of repositioning given by individuals in different
professions is stated below:

Repositioning is a change, principally about trigging the vision, mission and

value in a new direction that is more suited for the brand in the future.
-Brand manager consultant

The principle of repositioning:

When striving towards a new position in the market, it is important to understand
that consumers minds are limited. Peoples minds select what to remember and
it is therefore significant to convince the consumers with great argument. The
market demand changes rapidly and therefore reposition can be necessary to
meet these demands, newer and stronger arguments have to be established to
convince them to stay as loyal customers.
As stated in the literature, repositioning is a very complicated matter and
therefore there are no detailed theories or models. The aim with repositioning
differ from person to person, and the only connection between all the different
theories is that repositioning is moving something from somewhere towards a
greater position at the market.
Corstjens and Doyle (1989) identified three types of repositioning strategies:
(1) 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 performs incremental, continuous
adjustments to its positioning strategy to reflect the evolution of its
environment; and
(3) Radical repositioning that corresponds to a discontinuous shift towards a
new target market and/or a new competitive advantage.

After examining the repositioning of several brands from the Indian market, the
following types of repositioning have been identified. These are:
1.

Increasing relevance 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.

Differentiate from other brands

8.

Changed marketing conditions

It is not always that these nine categories are mutually exclusive. Often one
reason leads to the other and a brand is repositioned sometimes for a
multiplicity of reasons.
The benefits that can be derived 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:tfyuftgjh

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

10

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 crafted communication,

(2) New products, 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 organizations success that the organizations

leadership team and its marketing/brand management leaders should develop it,
preferably with the help and facilitation of an outside brand-positioning expert.

CHAPTER 2: RESEARCH METHODOLOGY

11

2.1Objectives:
1. To review the brand positioning strategies of different sub-brands of
Titan watches.
2. To analyze the brand repositioning strategies of Titan watches.
3. To study consumer awareness and perception about the brand
repositioning

Strategies of Titan watches.

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

further
Improve its brand perception and loyalty among its customers.

This study would help titan industry to understand the gaps in its
communication strategy regarding brand repositioning exercises and the further
measures to be taken for effective marketing communications.

2.2 Limitations:

The study is confined to Major Cities area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive.

2.3 Sources of Data collection

12

The relevant data was collected from both primary sources and
secondary sources. The starting point of my information gathering has been
the secondary sources such as internet, books, and journals and so on.
First, I made a study of the brand positioning and repositioning
strategies of Titan watches through secondary sources such as internet,
insurance magazines, and journals and so on. Then I conducted a consumer
awareness survey on brand repositioning strategies undertaken by Titan
watches in recent times.

2.4 Sampling Procedure:

A sample of 50 consumers who are brand loyal to Titan watches since
more than a year and in the age group of 20 30 years have been considered for
this study. As Titan has taken up brand repositioning strategies since July 20012,
consumers who have seen the previous and new campaign have been targeted

2.5 Primary Data Collection:

Data was collected through an interview schedule, consisting of both
open ended and closed ended questions. The schedule covered parameters like
reasons for consumers brand preference; recollection of earlier tagline and
advertisement, brand ambassador of Titan; awareness of new tagline and
campaign featuring Aamir Khan, new designs and so on. The data was collected
through e- mails, telephone contacts and one-to-one personal interviews.

13

CHAPTRER 3: INDUSTRY OVERVIEW

3.1 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 viz. Tissot, Swatch, Omega, Rado, TAG
Heuer, Rolex and many others. The import duties on watches are falling which
makes the Indian market look attractive for the global majors like Casio, Swatch
and Citizen.

3.2 Indian Watch industry:

Figure 2. Porters five forces model
14

SUPPLIER POWER
No strong suppliers Lack
bargaining power Rise of China,
Taiwan as low cost suppliers.

BARRIERS TO
ENTRY

DEGREE OF RIVALRY
Increased number of firms

Cluttered Market
Lack of
Differentiation

Low switching costs

THREAT OF
SUBSTITUTES
No close substitutes

Strategic stakes are high

BUYER POWER
Price sensitivity , Buyers
Preferences

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. Buyer Power:
15

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.

5. 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,
16

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 has faced losses in the quarter ended June 2001 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 sharp fall in its market
share.

3.3 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.
Plastic as such is not acceptable to average Indian consumers, especially
those from the small towns and rural areas who regard it as cheap and flimsy.
They want toughness- which translates into a good quality metal model at a
reasonable price.
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

17

very high replacement demand for watches. These along with the low

penetration levels represent the untapped market potential for watches in India.
3.4 Major Brands In India Watch Market:
The major players in the Indian watch market include HMT, Titan and
Timex.

The other players include Westar, Shivaki, Maxima, and SITCO.

Foreign brands such as Cartier, Piaget, Omega, Tiffanys and Corrum, Gucci,
Longines, Casio, Citizen, Tag Heuer and Espirit are also making an inroad into
the Indian market.

Titan has been consolidating its market share over the past decade. Timex
watches, which entered in India with collaboration with Titan, now
independently has also gained substantial market share.
Based on price

Based on user category

1. Mass (Rs.350-600)

1. Mens watches

2. Popular (Rs.600-900),

2. Womens watches

3. Premium (Rs.900-1500),

3. Youth watches

4. Super-premium (Rs.1500-8000)

4. Kids watches

5.

Connoisseur

segments

(above 5. Sports watches

Rs.8000)

3.5 Segmentation of Indian Watch Industry:

18

CHAPTER 4:

TITAN WATCHES: BRAND POSITIONING STRATEGIES

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

4.2 Attribute Positioning Strategies:

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

4.3 User Positioning Strategies:

19

Titan caters to several user groups- children (the Dash),

sportspersons and adventurers (PSI4000 and Fast track range). The Fast track
range is seen as being contemporary, sturdy and reliable. The advertising,
packaging and merchandising of this range is young, vibrant and cool (the ad
line says Cool watches by Titan)

4.5 Benefit Positioning Strategies:

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

4.6 Competitor positioning Strategies:

With the entry of several foreign watchmakers into the market,
Titan had to counter the threat. Most of the entrants are catering to the upper end
of the market- Omega, Tissot, and Cartier etc. Titan already had the Tanishq
brand in this segment. However, it has tried to reposition this brand by
increasing the price range to encourage more customers.

4.7 Quality & Price Positioning Strategies:

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

20

CHAPTER5:
TITAN WATCHES: BRAND REPOSITIONING STRATEGIES

5.1 New Logo & Tagline Be More

Titan Industries decided to revamp its flagship watch brand, Titan, with the
intention of making it more youthful and relevant to the changing times. The
brand, launched more than 24 years ago, has undergone a major repositioning
exercise only once before five years ago, when Hindi film actor Aamir Khan
was appointed brand ambassador. What followed later was the Whats Your
Style? campaign, which tried to increase watch consumption per person, by
suggesting the use of different watches for different occasions.
Beyond Style
Now, Titan wants to move from style statements to personality statements.
According to Harish Bhatt, chief operating officer, watches, Titan Industries, a
watch ought to denote the wearers mood and personality. With the explosion
of options in a persons life, our core consumer is changing. And to keep up
with them, Titan has evolved too, he says. On the adoption of Be More,
Bhatt says that that statement is supposed to denote the aspirations of consumers
21

to make more of their lives and be whatever they want to be. The watch allows
for such imaginative travels, he says.
Titans agency, Ogilvy India, has devised a campaign featuring Aamir Khan that
encourages people to find a new strand of their personality every day. It all
started with a logo change a few months ago (the same font in a red and white
combination), followed by a campaign rolled out now.
The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster,
stating, Be born every day. Next, he is seen chasing the shadow of an aircraft
on a beach, then, sitting beside a truck driver, in the middle of nowhere, with a
trail of chassis trucks behind him. Here, he asks the viewers to try the adventure
of getting off at an unknown station, of exploring unknown lands.
As he crashes his vehicle while go-karting, Khan waves to the others
around him, while his voiceover explains the importance of making ones own
mistakes. Further on, he talks of not making your passport photos last longer
than three months you need to constantly reinvent yourself and adopt a new
look every day (cut to shots of Khans varied hairstyles and looks in his movies,
shown in an ambient way through posters and T-shirts).
Shock your reflection! says Khan, as we see him with funny accessories
framing his face. The next vignette has him practicing meditation while slyly
checking out a girl walking past (Explore). Cut to a shot of children, with
Khan explaining how we aspired to be different people as kids lets revive
that aspiration today. Wearing amour (sword and all), Khan Reiterates, Be
Born, Every Day. Titan. Be More.
Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, Be
More pushes people to live many lives in one. We want to trigger people into
22

questioning, Why should we be single minded and boring? Time to be multifaceted, just like Titan!
Khan fit the bill as Ogilvy borrowed from his own life and work and his need to
constantly experiment and reinvent himself. Be it Mangal Pandey or Lagaan or
Dil Chahta Hai, Aamir always manages to look different in every role, explains
Mehra. So we showed him doing things that were spontaneous, such as
exploring places or go-karting. The idea, simply put, is to live life to the fullest
with Titan being the instrument of such expressive liberation.
5.2 The Ad Making Aamir Khan:

The ad was directed by Prasoon Pandey of Corcoise Films; this is

Pandeys third Titan film, the earlier two involved Khan and his assistant,
played by the late Vihang Nayak. The first film had Khan confused about which
watch to match with each outfit hes 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. Its about bringing a mindset
onto the screen with a better celeb-brand marriage.
23

Shot entirely in Chennai, the film has been shot in a way that suggests
that multiple locations were used for the shoot, as opposed to one city. We had
fast paced shots to spread the look of the film, says Pandey. When asked why
Chennai, he quips, Because it was
Raining in Mumbai then!
Several layers were added to the film. To show the aspirations of
children, a young girl was shown staring at an object and, later in the frame, you
see the object is a butterfly the girl wants to fly.
Kids are freer in their thinking than adults and we hope this has been
portrayed, Pandey says. Even the last frame of the ad, which has Khan dressed
as a mock warrior (with an impromptu utensil serving as his helmet), was made
to look like the man had made use of things lying nearby in a spontaneous way.

5.3 Titan Raga Signs Katrina Kaif As Brand Ambassador 2012:

September 20th, 2011:

Aiming to widen its appeal amongst Indian women, Titan, Indias most
preferred watch brand, today announced their association with Bollywoods

24

most beautiful and charming Diva, Katrina Kaif. Ms. Kaif has been signed as
the brand ambassador for their exclusive womens watch brand, Titan Raga.
Incepted in the year 1992, Titan Raga has won the hearts of millions.
Designed exclusively for women, these exquisite and elegant timepieces
perfectly capture the essence of beauty, femininity and sensuality. The brand has
grown over a period of time in sync with the evolving tastes of the
contemporary Indian woman.
Mr. Ajoy Chawla commenting on the brand said, Driven by
continuous launch of new designs and collections, Raga has witnessed a 27%
CAGR in the last 5 years and will be Rs.400 crore brands this year! However,
the potential in the womens segment is still huge as watch penetration even
amongst SEC A/B women is still very low. A brand ambassador will help to
make the watch a desirable accessory amongst women.
Further talking on their association with Katrina, Mr. Chawla said,
Titan Raga stands for beauty, femininity and sensuous self expression. While
embodying these core values, Katrina also symbolizes the changing face of the
successful, graceful and contemporary Indian woman.

Talking about her association with the brand Katrina Kaif said, (Smiles) Titan
needs no introduction, this vibrant and up-to-the-minute brand has been
touching our daily lives in the most beautiful way possible. It gives me immense
pleasure and satisfaction to be associated with the most popular and only
womens watch brand in the country. Besides being a timekeeper that helps me
keep up with my busy schedules, it also adds to my style quotient. I feel watch
designs from Titan Raga are truly exclusive and contemporary. I am really
looking forward to the exciting days ahead with the iconic brand Raga, which
embodies beauty, sensuality and femininity with great creativity.
25

As a brand ambassador of Titan Raga, the renowned actress will play

a key role in shaping brand communication on television, print, outdoor and
other media.

5.4 New Collections and Designs:

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

The watches have been designed primarily for youth in the 16-30 age group,
and will be available in a price range of Rs 275 to Rs 550. The tag line for this
sub-brand is Super Strong, Super Style.

26

The company announced 360-degree marketing campaign for the new

offerings. It also unveiled its TV commercial featuring Indian ODI captain
Mahendra Sing Dhoni, in a brand new avatar.
2. Titan Raga Hazel Collection
Titan Raga has launched the Hazel collection, inspired by the hues of
nature. Priced between Rs 2,195 and Rs 4,000, this range comprises five styles
with versions in gold, steel and bi-metal finish. They are available as bracelets
and kadas with textured or patterned look and mother-of-pearl dials.
3. Octane
Titan has launched the Octane collection of chronograph, multifunction
and retrograde watches for the urban man. The range is described as blending
style and technology. The collection has over 35 styles and is priced between
Rs. 5,000 and Rs 7,500.
4. Nebula Celeste
It is a limited edition collection of jewellery timepieces. They are crafted
in 18k white and yellow gold. Prices range from Rs. 6 lakh to Rs. 12 lakhs.
5. Raga Crystals
Titan Industries Ltd has unveiled its new Raga Crystals collection of
watches in Kerala. The two new watches, called Venus and Fairy Dust, are
available in yellow metal and bi-metal versions. Venus is priced at Rs 4,450 and
Fairy Dust at Rs 4,750.
6. Titans Stambha
A new ladies Heritage wrist watch Stambha signifying fame, prosperity
and good luck was unveiled as part of Heritage collection. Mr.Vijesh Rajan,
27

Regional Sales Manager (South), launching the watch collection, said that plans
are on the anvil to launch one new collection every month, reflecting the 3000year old art and cultural history of the country.
A sale of around 7,500 watches has
been fixed as a target for this fina ncial year in the Heritage collection, he
added. The prices in the collection range between Rs 5,000 and Rs 10,000.
7. Nebula Zeus
It is a mechanical automatic watch in solid gold for men. Priced at Rs.1,
10,000, the limited edition watch (500 pieces) harks back to an older era of
luxury and romance.
The Nebula Zeus watch has been crafted using Swiss made mechanical
automatic movement with gold finish and a sapphire crystal back cover. Other
features include an instant start, a second hand stop device for accurate time
setting; 42 hours reserve powers and auto wind convenience. The watch
collection was launched by singer and actor, Vasundhara Das.
8. Raga Shimmer
It comprises of a collection of exquisitely designed studded watches that
complement both Indian-wear as well as Western-wear. Priced between Rs
2,995 and Rs 4,495, the new collection comprises watches in gold, steel and bimetal finishes.

9. Raga Diva

28

An exquisite range of watches for women in the Kerala market. Inspired

by traditional Kundan work, this collection has been rendered in a delightfully
contemporary form. It is priced between Rs 4,000 and Rs 10,000.
10. Titan Nebula Duet Collection
Titan Nebula, the premium 18K gold watch brand from Titan, today
launched the Duet collection three pairs of specially crafted gold watches for
the wedding season.The most premium collection for this wedding season was
unveiled by popular actor Gul Panag.

OTHER STRATEGIES

Titan is also trying to reach new customer segments. They are now trying
to target all adults in socio economic classes A&B.

Titan is also looking at innovative retail strategies and planned to launch

ten innovative product collections soon.

5.5 Market share of the Competitor in Domestic Market:

Competitor in Domestic
Market
HMT
Maxima
Rado
Casio

Market Share
19%
13%
7%
3%

29

The strongest selling point of Titan is that it is available and affordable. Titan
provides watches for all segments, like from low-cost Sonata for first time user,
Fast-track for the trendy young, Dash for the kids, and the higher priced Regalia
and Nebula to the premium segment customer.
The Indian watch market is estimated at 25 million watches a year, where
the domestic sale is 6 million watches per annum. The rural segment is the
diverse market in the present scenario. The key success story of Titan is
capturing the rural market on a large scale. The range cost is between Rs. 495 to
Rs. 1200. And the model is available exclusively in all showrooms and is sold
mainly in small-town in India.
Though, The Company faced enormous challenges from its big list of
competitor, the company still in the number one position in domestic market
because of the weakness of the competitor. The company becomes more reliable
and more acceptances to the consumer because of its marketing mix. The
company has adopted the new marketing innovation to improve the feature of
the product by time to time.

Though the current financial environment is not in favor, but the company
performing well and saw an increasing trend in the profit chart.
The company trying hard to convert its weakness into strengths and threats into
strengths and threats into opportunities by bring revolution in the product style,
model, features, pricing policy, product quality, etc.
Companies certain initiatives and policy such as new innovative design,
guarantee, the research and development, wide dealer network, committed
service team, discount and offers make the company
TO FIND OUT THE BRAND PREFERENCE FOR WATCHES
30

Environment Analysis:
The Marketing Environment:

A.

Competitive Forces

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

Domestic Level:

HMT

Maxima-quartz

Rado

Casio

International level:

Espirt

Swatch

Citizen

Seiko

Fashion Houses:
31

Dkny

Gucci

Adidas

Nike

Among all these competitors, Maxima-quartz and HMT are major players .The
strength and weakness of the companies varies from segment to segment
Industrys Role
As there have many competitor exists in this Industry, the competition is too
much. Whenever any company bring changes in its marketing mix, all the
companies also implement changes in their marketing mix to sustain in the
competition. By that the structure of whole industry is changing and affects the
competitive forces in the Industry.

Economic forces

Economic landscape:
Indian corporate sector is nervous because of current Inflation. This problem
occurred not only in India, but it affected all the countries due to United State
financial crisis.
As we came to know from Federation of Indian Chamber of Commerce and
Industry (FICCI) that 64% of the 413 companies are running currently in worst
condition from last 6 months.

Consumers view:
32

As we know that Inflation is in double digit figures, but the people who lives in
urban area or metro city, are having optimistic view towards economy.
People think that the economic condition of our country will be improved in the
near future.

Purchasing power of consumers:

Brand Name
Fast Track
Exacta
Spectra

Purchasing
Power(Price)
Rs.
550-1,430
595-1,430
650-1,830

Royal

960-2,830

Raga

1,420-4,000

Bandhan
Regalia

1,675-8,085
1,725-7770

Category
Youth
Lower Middle Class
(Office Wear)
Common Class
Upper Middle Class
Upper Class
Couples
Upper Middle Class

Edge

4,500-5,200

Business Class

Nebula

10,000-45,000

Upper Class

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

33

Spending habit of consumers:

Despite of high inflation, high oil prices and high volatility in gold prices, watch
segment of Titan Industries doing well in the current fiscal. For these, watch
segment sales income increased from Rs.168.83 crore during the first quarter of
last year to Rs.171.89 crore during the corresponding period this year. These
data indicate that consumers spending pattern is increasing respective target
market.
From the above information we can easily understand that consumers buying
more of Titan wristwatch. There are few reasons behind the growth in sales of
Titan .They is as follow.

Brand name

Quality of the products

Features ,which differentiate from others

Attractive models

New innovation

34

 Political forces
Political landscape:
In 2004 /05 the new Government came through election in India.
Our new Government took lots of steps to make the global relation as well as
some steps to develop our country GDP, decreasing the rate of Inflation by
decreasing rate of Cash Reserve ratio (CRR) as well as by decreasing the Repo
rate. These all steps help the Industries to get sustain in the market.
As all the steps help the Titan industry to compete in the watch industry. The
performance of this sector for last few years are-

Relation with political officials:

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

Legal and regulatory forces

As the titan industries operates their business in the global area, they have to
follow lots of regulatory norms.
The industry can be directly affected by the certain rules such as change in
Taxation rate.

Technological forces
35

Impact of Technology:
Changing in technology always play a great role in the target market. Titan
decided to manufacture only QUERTZ (Analog and digital) and not mechanical
and they would start plant to manufacture watches in wide variety in design and
prices.
Titan changes the technology in that ways which help in enhance the quality and
the features to increase buyers value. Titan gets advantages in the target market
through innovative technology.
As there is too much competition, if Titan not accept the changes in technology
then they cant

sustain in the market. In premium segment, competitor will

capture whole market by improve technology. And in the mid-price segment,

other companies will give a tough competition to titan.
Technological changes:
The new marketing innovation can bring a drastically changes in the marketing
activities of the company. The new innovations which can differentiate the
company from the competitor are

Implementation of Heart-beat checking system in wrist watch.

Implementation of Blood pressure checking system in the

wristwatch

Some companies can come with the watches which help in

knowing the mood of the person.

Socio cultural forces

36

Tata believes that improve the quality of the life of people and the
employee is the primary purpose of their business. It uses its resources in the
best possible way. They also takes some reasonably steps to improve the quality
of life of the people of the areas in which they operates.
Tata adopt the corporate citizenship index, tata business excellence model and
tata index for sustainable development which reflect its commitment to its
corporate social responsibility (CSR). Tata spends 5-7% of its profit after tax on
several CSR initiatives
These CSR initiatives are spread across three core areas, such as employee
welfare, the environment and the welfare of the community at large.

B.

TARGET MARKET
Identification

The titan industry basically deals in three segments for its watches. They were
as follow.

High income/elite consumers

In this segment 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.

37

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

No. Of Media

No. Of respondents

TV

46

Magazines

25

Newspapers

36

Hoardings

15

Radio

5.6 MARKETING MIX:

38

PRICE

PRODUCT

PROMOTION

PLACE

1. PRICE:
As achieve our marketing our marketing objectives, we can do some change in
the pricing.
The main consideration will be in changing price are followings.
A. Survival:
In case of some of the watches titan prices them according to the
features .The Exacta is a simple steel watch priced at Rs.600-1,100. As
the company also deals with Spectra, Raga through pricing policy.
B. Market share:
As we know that 70% of sales in watches come from the lower segment,
therefore by pricing Sonata at 350 onwards with guarantee. Titan prices
its world watches which compared equal to an international players like
Calvin Klien where a customer pays 4 times as value of the world
watch, therefore market with low prices to international players to gain
market share.
C Market Skimming:

39

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

touch

in its design, the product, the love.

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

A. Product line:
To increase the sales, the differences in the prices of the watches are
justified by the features.

B. Product pyramid:
Portfolio of Titans product is of 3 distinct price-range that can be defined
in general, as Popular, Mid, and Premium. At the popular segment, the
emphasis is on in volumes but not in margins. At the premium segment,
the emphasis is on profits and image but not in volumes. Obviously,
company giving more emphasis at the top of the pyramid as profits at the
top of the pyramid is very high. This pyramid guided the strategy of
Titan.
C.Product strategy:

40

Titan was first focused only on the premium segment of the watch
market. As per the product strategy they took, Titan moved in to the mass
market for watches. To widen base, Titan created new segments and
increasingly focusing on segments individually. In the past few years
Titan has took a lot of initiatives to focused on specific segments.
D.Product Quality:
Quality and leadership are synonymous to Titan. It seeks to achieve both
through their value for products compared to their prices.

3. PROMOTION:
Promotional pricing:
A. Marketing pricing:
As by opening new shops such as the world of Titan buy directly from
the dealer and hence the element of middleman is not there.
Here the retailer in this category buys watches for 17-18% lesser than MRP and
hence they are able to get the 17% profit margin on sales.
It is managing to successfully convince to the customer of the perceived value
of WORLD WATCH using hoarding all around the city, increasing buyer
image, trust worthiness, innovation, differentiation, value for the product.
Price discount and allowances: Every year Titan comes with a price discount
sale on the MRP of the watches. The allowance varies from one segment to
another.

41

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

in india.com which invites children to use creativity and design
watch.
The prize winning design was launched as a new watch in summer 2002
collection.
Type of advertising: Titan believes in making its ads clean, well made, touch on
emotional chord. As the company is using celebrities or superstars that is Amir
Khan for the Titan watches.
b) Promotion on occasion: Titan is one of the company which formally
believes in the policy of promotion the product based on the
occasions.

4. PLACE:
Keeping in mind about the young trendy and fashionable consumers, Titan
distribute its product and set up world of titan in different region. The
consumers life style in India, especially in urban area (because the turnover in
urban area is 210 million, while the turnover in rural area is 90 million) plays a
significant role in the success of Titan.
A. Time Zone:
Titan Industries brings together the countrys leading watch brands under
one roof, providing the customer with variety in brands, looks and price
ranges and also efficient after-sales service. These 1142 Time Zones
located across 89 towns which offer its customer the complete watch
shopping experience.
42

B. Value Mart:
These outlets sell surplus stocks of Titan watches at reduced prices. By
doing these it offering fabulous value for money with the same warranty
as a regular full-priced watch enjoy. However these shops would not be
placed in the main locations and not working as a normal shops. This is to
make the customer go to the shop rather than the shop calling the
customer and hence the locations are not very suitable for shopping.
C. Sonata Stores:
A Sonata store is also an Authorized Service Centre for Sonata & Titan
brands. Sonata store meet the large scale demand for the watch and also
to attract customers in more. These shops had full stocks of the watch in
demand whereas the others could afford to maintain only limited stock.

5.7 CONSUMER BUYING BEHAVIOR:

Cultural
Social
Culture

Reference

Personal

group

Psychological

43

Subculture
Social Class

Family
Roles and
statuses

Age and life-

Motivation

cycle stage

Perception

Occupation

Learning

Economic

Beliefs and

circumstances

attitudes

Lifestyle
Personality
and selfconcept

A. Cultural Factors

Value, perception, and preferences

Nationalities, religion, race, geographical regions

Social class

B.Social Factors

Reference Groups Social Class

Roles & Status

C.Personal Factors

Economics Circumstances

Occupation

Age & Life Cycle Stage

Lifestyle

Personality and self-concept

44

Buyer

D.Psychological Factors

Motivation

Perception

Learning

Beliefs and attitudes

NEED ANALYSIS
Consumers need:
The demand and the need vary one market segment to another segment on the
basis of prices & quality.
The current need can be satisfied by the following ways in the different
segment.

High class: Titan offered Aurum and Royale in gold watch range
.They were stylish watches in all gold and precious metals.
The price is between Rs.20, 000 -1, 00,000.

Middle income class: Titan offered the Exacta range in stainless

steel. There were 100 different models in the range. The prices
ranges are between Rs.500-700.

Lower-income group: Titan offered the Timex watches and later,

when the arrangement with Timex was terminated, the SONATA
range.
45

The prices ranges were Rs.350-500.There was 200 different models

in the ranges.

Current Marketing Objectives and Performance:

Review of Marketing Objectives
Current marketing objectives of TATA are to strengthen Indias Industrial base
through the proper utilization of resources like employee and materials. Besides,
the company seeks to reach the height of excellence atmosphere which is free
from fear and threat.
Performance Analysis
Titan Industries achieved significant growth during the year ended 2007-08.
Watch segment sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of
the company have performed well and new introductions in gents watches, the
Raga Crystal for ladies.

CRITERIA FOR SEGMENTING CONSUMER MARKET:

Markets are mostly segmented on the basis of geographic, demographic and
psychographic factors:
Geographic segmentation:
It calls for dividing the market into different geographic units such as nations,
states, regions, countries, and cities.
Demographic segmentation:

46

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

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

TITAN PERSPECTIVE
Titan markets its products for all following age groups:
a) For the age group 12-20, brands like TIMEX, Sonata, etc.
b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY,
SONATA, etc.
c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL,
REGALIA,

BANDHAN, etc.

GENDER:
Gender segmentation has been applied to clothing hairstyling cosmetics,
wristwatches, magazines etc. There are certain brands, which are positioned
exclusively for a specific sex.
TITAN PERSPECTIVE
Titan markets its product across:

Sex (steel, regalia, nebula, fast track, technology, sonata, edge,

flip)

Gents (flip)
47

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
48

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

SOCIAL CLASS
Social Class segmentation is influenced by customer choices of automobiles,
interior decoration, clothing preferences etc. The tastes and preferences of the
social class also change according to time.
TITAN PERSPECTIVE
Titan has realized the demand of the society and has marketed its products for
each of the following social strata.

First segment:
For this segment, watch is a fashion statement. Titan has ROYALE, AURUM,
and NEBULA for this segment. These products have specialties like European
leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid
with precious stones.
Second Segment:
For this segment also, watch is all about fashion but price does matter to them.
In this range, Titan has RAGA, TECHNOLOGY, and FASTRACK etc. These
products have digital technology & of trendy shapes. Always splash oomph on
to your ward robes and smear danger on your look.

49

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.
50

TITAN PERSPECTIVE
Titan advertises its products by portraying movie stars as user of its
products and it offers a lot of option to its customers.
For example:In economy category, 60 products
In luxury category, 26 products
In sports & casual category, 76 products
In fashion category, 99 products
In formal category, 14 products
VALUES:
Values affect customer behavior in the long run. Marketers can use values and
beliefs to segment the markets.
TITAN PERSPECTIVE
Time has the same value for all irrespective of cast, creed and sex. Still,
Titan

successfully segmented its products according to customer values. But

it is basically related to type of generation they are in to. So, the segmentation is
also related to that.

BEHAVIORAL SEGMENTATION:
Organizations can divide markets on the basis of behavior that consumer shows
towards the usage of the products. Various variables for segmenting market on
the basis of purchase behavior of customers are occasions, benefits, user status,
usage rate, loyalty, etc.
51

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
FormalNEBULLA,
STEEL
RAGA,
GOLD&STEEL,
Dress wear
REGALIA,
RAGA,
GOLD&STEEL,
ROYALE.
FashionSTEEL,
RAGA,
GOLD&STEEL,
FAST TRACK.
52

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

It provides the TITAN WORLD SERVICE CENTRE in 174

towns.

It provides a huge product range to choose from.

Its products have good life cycle.

Usage Rate: The usage rate of a particular product/service can be divided

into heavy, medium and light. Marketers are usually attracted to heavy
users than other type of users.

Loyalty Status: The loyalty status of a particular market can be divided

into different groups, according to the intensity of their loyalty to these
brands.

MARKET SEGMENTATION PROCEDURE

It is a three step procedure:
1.

Service stage:
Here the researcher conducts exploratory interviews and focused groups
to gain insights into consumer motivations attitudes and behaviors.
53

Then the researcher prepares a questionnaire and collects data on

attributes and their importance ratings, brand awareness and brand
ratings, product usage patterns, attitudes towards product category and
demographics, geographic, psychographics and media graphics of the
respondents.

2.

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

3.

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

EFFECTIVE SEGMENTATION:
For effective segmentation, segmentation variables need to exhibit certain
characteristics. These are discussed below:

Measurable:
The variable used for the segmentation of the markets should be
measurable to be effective. For example, a variable like the purchasing
power of potential customer is measurable.
54

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

Accessible:
The segment of the market that a marketer is trying to target should be
accessible to him.
The appropriate selection of the media, its coverage and other factors like
the product distribution facilities play a major role in a marketer
becoming accessible to customers.

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

Actionable:
A segmentation variable should help marketers develop effective
marketing programs to attract and serve potential customers effectively.

TARGETING:
It is the second stage of the Segment Target Position (STP) process. After the
most attractive segments are selected, a company should not directly start
55

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:

A)

The first is the single segment with a single product. In other word, the
marketer targets a single product offering at a single segment in a market

56

with many segments. For example, Titans sub brand, Raga is targeting
the upwardly mobile ladies in the upper premium segment.
B)

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

C)

Finally, there is a multi-segment approach. Here a marketer will target a

variety of different segments with a series of differentiated products. For
example,

Titan

itself

provides

with

the

number

of

different

brands/products which are targeting different segments in the market.

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

57

POSITIONING

Introduction:
The importance of an image has become an emotional part of everyone. A brand
name represents the image, character and personality of a brand. A brand name
should be clear, lucid, easy to remember, distinct from the competition and
should not be generic to the category. It should become customer's Top of the
mind brand (TOMB). Most successful brand names would satisfy these
criterions to quite an extent. Brand loyalty is one thing which has made the
branding more popular. As someone rightly said "Brand loyalty is not dead, it's
just more like loyalty to a girl/boyfriend than loyalty to a husband/wife".
Vast flow of names today makes a brand harder to differentiate them unless they
come out with their own uniqueness. This way, they could come to their special
position in everyday life. The image following a particular name is also
determined by the role of communication it undergoes; of which the followings
are included: its manner, personality, behavior, ethics, values, etc. The
importance of brands depends on the true ambitions of the company.
The increasing spread and domination of international brands has seemed
inevitable for at least the last 30 years. All around the world we have witnessed
the disappearance of local brands and local variants.
But despite this trend, local and regional brands still remain strong. In India, for
example, protected for many years by government policy from the invasion of
foreign brands, homegrown brands dominate many sectors - Tata automobiles
and Titan watches, to name but a few. In the end people want both global and

58

local brands - brands that make them feel part of wider international community
and brands that root them in their 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 strong market
share is associated with above-average 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.
For
Volvo that one thing is Safety.
McDonalds is A fun place for kids.
In Jakarta, Indonesia, Bluebird is The safest way to travel by taxi.

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
59

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.

What does the result of brand positioning research show?

The market position of a brand shows where a specific brand is located. 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)

60

CHAPTER 6 COMPANY PROFILE

6.1 Overview:
Titan Industries was established in 1984 as a joint venture between the
Tata Group and the Tamil Nadu Industrial Development Corporation. The
company brought about a paradigm shift in the Indian watch market, offering
quartz technology with international styling, manufactured in a state-of-the-art
factory at Houser, Tamil Nadu. Leveraging its understanding of different
segments in the watch market, the company launched a second independent
watch brand-Sonata, as a value brand to those seeking to buy functionally styled
watches at affordable prices. In addition it focused on the youth with its third
brand Fastrack. It has also premium fashion watches by acquiring a license for
global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its
portfolio its first Swiss Made watch brand Xylys.
In 1995, the company diversified into jewellery under the brand
Tanishq to capitalize on a fragmented market operating with no brands in urban
cities. In 2005, the company launched its second Jewellery brand, Gold Plus, for
capitalizing on the opportunity in small towns and rural India.
The company has now diversified into fashion Eyewear by launching
Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear. The Company
leveraged its manufacturing competencies and branched into Precision
Engineering Products and Machine Building from 2003.
Today Titan Industries is India's leading manufacturer of watches and
jewellery employing 3,800 people. Titan and Tanishq are among the most
admired brands in their categories.
61

6.2 PRODUCTS:

The company manufactures over 8 million watches per annum and has a
customer base of over 80 million. It has manufacturing and assembly operations
at Hosure, Dehradun, Roorkee and Baddi in Himachal Pradesh and an ECB
plant in Goa. Its main products are:

1. Watches: Currently manufactures four main watch brands viz.

Titan for the premium segment,
Fast track focused on the youth and trendy fashion space,
Sonata for the mass market and
Xylys for the premium market.
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/-.
62

 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 225 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: Tanishq is India's largest and fastest growing jewellery brand with
a premium range of gold jewellery studded with diamonds or colored gems and
a wide range in 22kt pure gold. Platinum jewellery is also a part of the product
range Tanishq is one of India's largest specialty retailers and is transforming the
jewellery market in India 102 boutiques in 72 cities across the country. Gold
Plus' is the recent retail offering for the mass market with plain gold jewellery
selling through 19 stores in 19 towns. The jewellery division has its own design
studio.
6.3 AWARDS
The company has been awarded the following distinctions:

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

The Titan Design Team won the Young Design Entrepreneur of the Year
award at the design awards instituted by the National Institute of Design
and Business World, a leading Indian magazine. The team has won 7
accreditations also.
63

Both Titan and Tanishq have been adjudged "Most Admired Brands" as
well as "Retailer of the Year" by Images Fashion Forum in consecutive
years.

Retail Asia and Media Magazine Singapore adjudged Titan Industries

as amongst the leading Retailing Companies in India.

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

64

Chapter 7

DATA COLLECTION AND SURVEY ANALYSIS

1. Which sub-brand of Titan watches do you possess?

Figure 1: Titan sub-brands possessed by respondents

Table No1: Titan sub-brands possessed by respondents
S.NO.

Sub Brands

Percentage
%

1
2
3
4
5
6

Fastrack
Sonata
Raga
Nebula
WWF
Edge

72
14
6
4
2
2

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Survey Analysis: Titan sub-brand owned

This was a multiple choice question where respondents were asked to
choose sub-brands of Titan which they possess. It was found that around 72% of
the consumers in the age group of 20-30 years possess Fastrack brand, 14%
Sonata, 6% Raga, 4% Nebula and only 2% own WWF and Edge.

2. Since how many months / years have you been using Titan watch?

Figure 2: Period of Titan watchs use

Table No2: Period of Titan watchs use
S.NO.

Period Of Usage

Percentage

Years

2001-2004

64

2004-2007

24

66

S.NO.
3

Period Of Usage

Percentage

Years

2007-2010

12

Survey Analysis: Period of use

The respondents were asked to mention since how long they have 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 2010years.64% of the
respondents fall into first category, i.e., they are using Titan watch in the range
of one to four years. 24% respondents are in second category and the rest 12 %
are using it for more than seven years.

Q3.Why do you prefer Titan brand?

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Figure 3: Reasons for brand preference

Table 3: Reasons for brand preference
S.NO.

Reasons

No. of respondents
(out of total 50)

Attractive designs

39

Reasonable Price

Brand image

22

Good quality

25

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.

68

4. Do you remember the original tagline of Titan watches? If yes, please

mention.

Figure 4: Recall of Titans original tagline

Table No 4: Recall of Titans original tagline

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S.NO.

Recall of Titans Tagline

Percentage
%

YES

22

NO

78

Survey Analysis: Recall of Titans tagline

Titans tagline, before brand repositioning exercise has been undertaken,
was
Whats your style. This tagline was adopted during first rebranding exercise
in 2004.
The respondents were asked to indicate whether they remember the
tagline in dichotomous way, i.e., as yes or no. It was found that only 22% of
the respondents were able to recall the tagline and the remaining 78% answered
in negative.

5.

Have you seen the advertisement of Titan watches? In which media

have you seen the advertisement?

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Figure 5: Major Advertisement media

Table No.5 Major Advertisement media
S.NO.

Major Advertisement Media

No. of respondents
(out of 50)

TV

46

Magazines

25

Newspaper

36

Hoardings

15

Radio

Survey Analysis: Titans advertisements

Titan advertises its watches in almost all media vehicles. The
advertisements can be seen in TV, magazines, newspaper, hoardings, billboards,
radio and so on.
All the 50 respondents have seen the advertisements 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.

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Figure 6: Awareness of brand ambassador

Figure 6: Awareness of brand ambassador

Table No 6: Awareness of brand ambassador
S.NO.

Awareness of Brand Ambassador

No. Of Respondents
(out of 50)

Dont know

Correct responses

46

Survey Analysis: Brand Ambassador of Titan

Aamir Khan is the brand ambassador 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.

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7. Are you aware of the new tagline of Titan?

Figure 7: Awareness of new tagline

Table No 7: Awareness of new tagline
S.NO.

Awareness of new Tagline

Percentage
%

Aware

36

Not Aware

64

Survey Analysis: Awareness of new tagline Be More

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The survey has revealed that less than half of the total numbers of
respondents are aware of new tagline. 36% of the respondents could correctly
mention the tagline while the rest are not even aware that Titan has adopted
major rebranding strategies last year.

8. How do you rate the new designs of Titan?

Figure 8: Consumer perception of new designs

Table No 8: Consumer perception of new designs
S.NO.

Consumer Perception

No. of Respondents
(out of 50)

Poor

Average

Above Average

74

S.NO.

Consumer Perception

No. of Respondents
(out of 50)

Good

39

Excellent

Survey Analysis: New designs of Titan

Titan has launched several new designs in 2008 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 have rated as average.

9. Have you seen the new campaign of Titan?

Figure 9: Awareness of new campaign

75

Table No 9: Awareness of new campaign

S.NO.

Awareness Of New Campaign

Percentage
%

Aware

50

Not Aware

50

Survey Analysis: New Campaign of Titan

The survey has revealed that the percentage of respondents who have
seen the new campaign focussing on be more featuring Aamir Khan is 50%.

10. Do you think the new advertisement is effective in inspiring consumers

to have a new look everyday and be more in lives?

Figure 10: Consumer perception of new campaign

76

Table No 10: Consumer perception of new campaign

S.NO.

Consumer Perception Of New

No. Of Respondents

Campaign
Not at all effective

(out of 25)
-

Effective

16

Highly Effective

Survey Analysis: Rating of New Campaign

The 50% of the respondents who have seen the new campaign were asked
to rate it with respect to how effective 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 effective. 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 Titans exclusive showrooms?

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Figure 11: Consumer perception of store

ambience

Table No11: Consumer perception of store

ambience
S.NO.

Store Ambience

No. Of Respondents
(out of 50)

Poor

2
3

Average
Above Average

4
5

Good
Excellent

36
7

Survey Analysis: Titans exclusive showrooms

The respondents were asked to rate Titans exclusive showrooms on 5
point rating scale Poor, Average, Above Average, Good and Excellent. The
factors related to showrooms that were provided to the respondents for rating
are store ambience, sales personnel, after sales service and display of watches.
36 of the 50 respondents have rated store ambience as Good 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 Titans showrooms sales personnel?

Figure 12: Consumer perception of sales personnel

78

Figure 12: Consumer perception of sales

personnel

Table No12: Consumer perception of sales personnel

S.NO.

Sales personnel

No. Of Respondents
(out of 50)

Poor

Average

Above Average

Good

35

Excellent

Survey Analysis: Sales Personnel

With respect to sales personnel, 35 respondents rated them as Good,
while 4 each rated as Poor and Average, 7 respondents gave rating of
Above Average.
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13. How do you rate after sales service of titan?

Figure 13: Consumer Perception about after sales service

Figure 13: Consumer Perception about after

sales service

Table No13: Consumer Perception about after

sales service
S.NO.

After Sales Service

No. Of Respondents
(out of 50)

Poor

Average

Above Average

Good

31

Excellent

Survey Analysis: After sales service

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In the survey, 31 out of 50 respondents rated after sales service as Good, 4

each as Average, Above Average, Excellent while 7 respondents rated as
Poor.

14. What is your perception about display of titan watches?

Figure 14: Consumer perception of Display of watches

Figure 14: Consumer perception of Display of

watches

Table No14: Consumer perception of Display of

watches
S.NO.

Display Of Watches

No. Of Respondents
(out of 50)

Poor

Average

Above Average

Good

24
81

S.NO.
5

Display Of Watches
Excellent

No. Of Respondents
(out of 50)
22

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 gave rating of Average
15. What is your overall perception about Titan showrooms?
Figure 15: Overall perception about Titan showrooms

Figure 15: Overall perception about Titan

showrooms

Table No15: Overall perception about Titan

showrooms
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S.NO.

Titan Showrooms

No. Of Respondents
(out of 50)

Poor

2
3

Average
Above Average

4
5

Good
Excellent

30
20

Survey Analysis: Overall perception about titan showroom

The respondents were also asked to give overall rating to Titans exclusive
showrooms. It was found that out of total 50 respondents, 30 rated as good
while the remaining considered the showrooms to be excellent.
Around 50% of the respondents rated all the variables related to Titans
exclusive showrooms as good. This shows that the store ambience, sales
personnel, after sales service and display of watches in the showrooms play a
major role in determining the customer perception about brand.
7.2 FINDINGS OF THE SURVEY
The findings of the consumer awareness survey are listed below:

72% of the respondents in the age group of 20 30 years possess fast

track watch. This shows that the positioning strategy of these watches has
been good.

Most of the consumers prefer Titan watches for their attractive designs
and good quality. However, there is a misconception about pricing of
Titan products among the consumers. They perceive them to be high
priced.

83

Logos and taglines are rarely noticed by the watch consumers. Hence,
any change in them also goes unnoticed.

Advertisement in mass media such as television, newspapers, and

magazines are best means to spread awareness about brand.

Celebrity endorsement of watches not only increases the visibility of the

product but also gives an assurance to the consumers that it is of high
quality.

Titan watches designs are rated as good by 78% of the respondents.

This indicates that they are looking forward for more innovative designs
to be introduced by the company.

Only 50% of the respondents have seen the new campaign launched by
Titan watches in July 2008. This implies that the reach of the campaign in
six months has been to more or less half of the consumers. However,
those who have seen the new campaign consider it to be effective in
conveying the message it intended to deliver, i.e., to be more in lives.

The after sales service and behavior of sales personnel have been given
low ratings compared to other variables mentioned in the questionnaire
with respect to Titans exclusive showrooms.

84

CHAPTER 8 DATA INTERPRETATION

In India 70% 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 Calvin 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 share.

85

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

8.1 SWOT ANALYSIS:

A. Strength
1. Style:
Titan first introduced the style concept in India and projected the watch
as a fashion accessory. Now a days style is a very much evident factor
among the youth. And there is a craze for stylish wristwatch. So, Titan
makes the peoples life more glorious by making stylish wristwatch.

2. Models:
As Titan offers the best and the biggest range to customer to choose the
watch of their choice with an affordable price.
It offers about 14 different names with about 1000plus different varieties
with a watch for literally everyone.
3. Exclusive products:
Today Titan holds the pride for say that its products both within the
country and internationally running in battle position. Its EDGE the
slimmest watch in the world position.

86

Other than these there have few more strength likeContribution 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

Weaknesses

B.
1.

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

2.

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

3.

Globalized:

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As the company is Indian based which leads it to the strength, where as it

is the weakness also because the company not sufficiently globalized.

Opportunities

C.
1.

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

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

-The fast track brand is promoted in month of June-August when
schools and colleges re-open.

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

3. Exchanging offer:
The Titan stores offer exchange offer of any old watch, of any make, in
any condition functional or otherwise and receive a flat discount of 25%

88

on their purchase of a brand new, stylish and technologically advanced

watch from Titan.

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

2. Premium segment:
As in premium segment Titan is getting threats from reputed international
brand such as Espirit, Swatch and Citizen.

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

4. Marketing Objectives:

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

A Titan industry has registered an Income of Rs.1, 104.85 crore as compared to

previous year which was Rs 7, 25.11. In all the income the Titan industry had
contributed Rs.3, 03.45 crore.

CHAPTER 9- 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 designs launched by
the company get noticed by different segments of the customers in
varied ways.

90

 Tie up with FM radio channels for reminder advertisements and

informing customers about various sales promotion offers from
time-to-time.
Invest more in R&D as customer expectations are changing
rapidly. Though Titan has got more product collections, it should
focus on introducing more varieties in already existing product
collections. In other words, having a limited but more depth in
product collections would be more advantageous.
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. This can
be done by ensuring the spare parts availability and training all
sales personnel in Titan showrooms to undertake these tasks.
Tie up with international watch brands and make them available
locally.
Make use of internet to spread awareness among consumers about
the brand.

CHAPTER 10

SUGGESTIONS AND RECOMMENDATION

Suggestions given by the respondents to improve brand image.
91

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.

QUESTIONNAIRE
1.

Which sub-brand of Titan watches do you possess?

a) Fast track
b) Sonata
c) Raga
92

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? If yes, please

mention.

5.

Have you seen the advertisement of Titan watches? In which media have
you seen the advertisement?
a) TV
b) Newspaper
c) Magazines
93

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.

How 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

10.

b) No

Do you think 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
94

c) Highly effective

11.

How do you rate Titans exclusive showrooms with respect to the

following:
(1Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent)

a)

Ambience

b)

Sales personnel

c)

After sales service -

d)

Display of watches-

e)

Overall showroom -

BIBLIOGRAPHY

Marketing Management Philip Kotler

Special Studies in Marketing- Romeo S. Mascarenhas

95

WIBLIOGRAPHY

www.titanwold.com
www.tata.com/titan
www.google.com
www.indianfoline.com
www.economictimes.com

96