Contents• The world watch market- An Introduction• The Indian watch market in 1985• Titan’s initial strategy: Strategy I• Changes in the market• New strategy: Strategy II• New strategy: Strategy III• Current Scenario
The world watch market before Titan• There were two Swiss companies - • Allgemeine Schweizerische Uhrenindustrie AG (ASAUG) • Societe Suisse pour l’Industrie Horlogere (SSIH)• They owned all the well known brands of the world: • Omega • Tissot • Rado • Eterna • Longines• Both companies were in loss due to Japanese competition
Continued…• In response they came up with the following: • Merge ASAUG and SSIH into a single company-Swiss Corporation of Microelectronics and Watchmaking Industries Ltd.(SMH) • To launch low-cost, high-tech watches• So they launched ‘the second watch’-SWATCH• The combination of great product and great marketing put Switzerland back on the map as a major player in the watch market
1985-The Indian watch market• The watch market was regulated• Lagged technologically• Technology prevalent- mechanical technology • reliable but outdated • time keeping was unsatisfactory • very basic and bulky designs• Due to the above characteristics of the Indian watch market there was a flourishing grey(smuggled) watch market(Casio digital watches)• Hindustan Machine Tools(HMT) and Allwyn were the only existing players in the market.• It was in this scenario that Titan entered the Indian watch market
Increased choice – launched 350 Going with new different models as styling instead of the compared to 200 of existing basic styles all competitors combined Advertising- a vital Accuracy as a selling investment and not plank an expenditure Opting for Quartz based technology Titan’s Brought the concept of retailing in theagainst the prevalent mechanical initial watch market- established technology showrooms strategy JRD Tata said : “If Quartz is the future, why invest in passe technology?” This led to KEY STRATEGIC VISION of only investing in Quartz watches
What worked for them?• Quantum leap in technology: Launched Quartz watches at a time when upwards of 90 percent of the watches sold at the time were based on old ‘mechanical movements’.• Introduced with the backing of Tata name: This led to instant association with reliability, quality and trustworthiness from Day 1 – attributes which require years for a brand to acquire.• Spectacular in width and style: Its initial range offered 350 models, one-and-a-half times the number of models available in the rest of the Indian watch market.
The changing market dynam Low-end (Rs 400-1000) Mid-upper ( Rs 1k-5k) Valued at Rs 1200 crores Valued at Rs 938 crores Tital, Citizen, Timex, Swatch, Sonata, HMT, Maxima Sales Espirit 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Premium (> Rs 5k) Mass(<Rs 400) Valued at Rs 370 crores Swiss brands: Tissot, Omega, Valued at Rs 300 crores Rolex Fashion brands: Fossil, Calvin Grey market, Chinese, etc. Klein, Giordano, Espirit
Strategy II : New strategic moves • Started associating the name of • Multiple ownership was the key century old Tata strongly with the to sustained volumes which brand to gain trust of people and Per capita would only come when watches Quartz watches purchases of to induce trials moved from being timekeeping were seen to be watches every ‘expensive’ as year in USA was devices to becoming fashion they required higher than total accessories. frequent changes ownership of in batteries watches in India per capita Sell watches at Expand places like distribution garment away from• Allowed watches to be shown in an ambience that stores, jewelers traditional • Strategy of positioning Titan watches as encouraged people to see them as ‘accessories’ etc. watch outlets fashion accessory and not merely a time• Created high end retail presence that would be a competitive advantage when foreign watches were keeping device allowed in the country
Strategic moves and their so what’sIntroduced as ‘Titan Quartz Customers started taking tear-outs of ads to stores, with the model already selected. It brought style and fashionfrom Tata’, its ‘catalogue’ to product category which was so far viewed as a functional onestyle print ads was asample preview of whatwas waiting in storesStrategy of focusing on the Led to change in perceptions. Encouraged multiple ownership of watches. Addressed the major barrier to‘gifting’ market extending owning multiple items that serve the same function: the sense of redundancythe concept to all kinds ofrelationships Made Titan watches Quartz equivalent of chocolates as a gift for someone you love.Penetration through Used attractive new ranges in terms of design and watches for specific segments as other ways of encouragingsegmentation multiple watch ownership.Building an emotional bond Music was an intrinsic part of building this bondwith India Titan tune has become a signature of the brand. It is a segment from Mozart’s 25th symphony with different musical variations that brought in touches of Indian classical music, folk music, rock and more.
Strategy III:Focus on Youth and Penetrationthrough Segmentation “In India the penetration rate is just 25 per 1000 watches as compared to the global average of 250 watches per 1000 people” • Penetration through Segmentation “In a study conducted to study the consumers of watch market it was revealed that 42% of them are youth” • Introduction of brands to attract the younger consumers- Fastrack, Dash etc.
SUB- TARGET MARKET BRAND PRICE BRANDS CONSUMER SHARE ENDORSEM RANGE S ENT (MRF) Automatic Maldivian 10% Amir Khan MRF 300/- Orion high class to 1000/- with style Octane and quality. Edge Age group. Penetration through Steel 21 to 27 Raga Maldivian 5% Rani MRF 600/- Raga Crystal high class Mukherjee to 2000 Ladies. With an elegant and Luxury.Segmentation Look for age group 21 to 27 Bandhan Matching Pair of watch, perfect gift for couples.
Penetration through Segmentation SUB- TARGET MARKET BRAND PRICE BRANDS CONSUMER SHARE ENDORSEM RANGE S ENT (MRF) FastTrack With 5% Amir Khan MRF 700/- colourful, to 1500/- style and fashiionable designs, its targeted especially for teenage girls and boys Classique With its 15% Amir Khan MRF 300/- classique to 800/-continued… look and elegant, its targeted for gentlemen( age group 28 to 35)
Penetration through Segmentation SUB- TARGET MARKET BRAND PRICE BRANDS CONSUMER SHARE ENDORSEM RANGE S ENT (MRF) Raga Diva With its 10% Amir Khan MRF 300/- unique, to 800/- Luxury Diva Rani MRF 1000/- look. Its Mukherjee to 2000/- targeted to High class Ladies (age group 28 to 35) Regalia Mainly 15% Amir Khan MRF 300/- targeted for & Rani to 1000/-continued… Royal foreigners, Mukherjee Karishma with its gold expensive look
Strategic moves and their so what’s : Dash! (focus onkids) Unpenetrated segment of 35 million urban children Launched children’s watch Dash! targeted Revamp required at children in age group 6-14 years and from ‘old’ and ‘elegant’ image of priced at a range of Rs. 250 to Rs. 395 Titan HMT’s brand Zap and Timex’s Gimmick did not yield major results Dash! was launched with adequate in the absence of mega advertising advertising and marketing investments to promotions establish the brand
Strategic moves and their so what’s : Fastrack(focus on youth) No existing youth segment Launched Fastrack ,targeted for age group oriented watch brand. 18 years onwards. • Fastrack volumes touched 80,000-85,000 units surpassing the targeted break-even level of 50,000 units • Tag line: ‘How many do you have?’ actively encouraged youngsters to see Fastrack as a multiple ownership product • In 2011 Fastrack added range of products such as eyewear ,bags wjth freewheeling, contemporary persona with a huge appeal to youth • Tag line changed to: ‘Move on’
Current Scenario• Titan dominates the watch market with an income of Rs.1266.46 Crores, a healthy growth of 23.3% and enhanced market share to 45.1%• Launched new ‘Purple’ range of watches• Untapped market waiting - 600 people in India do not wear a watch• The role of watch as a timekeeping instrument is diminishing by the day (with coming up of cellphones) and Titan will need to compete not on the basis of being a ‘watch brand’ but metamorphosing into something beyond watches.
Titan has embraced environments from watches(Titan) to youth lifestyles(Fastrack) to personal adornment(Tanishq), and is likely to prosper even in new environments Tanishq Rebel Replica Fast Track Aqura