Titan mrktng strategy

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Marketing of Titan

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Titan mrktng strategy

  1. 1. Overview: Titan Industries was established in 1984 as a joint venturebetween the Tata Groupand the Tamil Nadu Industrial DevelopmentCorporation.The company brought about a paradigm shift in theIndian watch market, offering quartz technology withinternationals t y l i ng , ma n u f a c t u r e d i n a s t a t e - o f - t he - a r t f a c t o r ya t Ho s u r , T a mi l N a d u . L e v e r a g in g i t s understanding of differentsegments in the watch market, the company launched asecondindependent watch brand-Sonata, as a value brand to thoseseeking to buy functionally styledw a t c h e s a t a f f o r d a b l e p r i c e s . I na d d i t i o n i t f o c u s e d o n t h e y o u t h w i t h i t s t h i r d b r a n d – Fastrack.It has also premium fashion watches by acquiring a license for globalbrands suchas Tommy Hilfiger and Hugo Boss, while. It has also i n itsportfolio its first Swiss Madewatch brand – Xylys. In 1995, the company diversified into jewellery under the brand– Tanishq to capitalize on a fragmented market operating with nobrands in urban cities. In 2005, the company launched its secondJewellery brand, Gold Plus, for capitalizing on the opportunity insmall towns and rural India. The company has now diversifie d intofashion Eyewear by launching Fastrack Eye-Gear sunglasses, as wellas Prescription Eyewear. The Company leveraged its manuf acturingcompetencies and branched into Precision Engineering Products andMachine Building from2003.Today Titan Industries is Indias leadingmanufacturer of watches and jewellery employing 3,800 people. Titanand Tanishq are among the most admired brands in their categories.
  2. 2. Products: The company manufactures over 8 million watches per annumand has a customer base of over 80 million. It has manufacturingand assembly operations at Hosur, Dehradun, Roorkee and Baddi inHimachal Pradesh and an ECB plant in Goa. Its main products are:Watches: Currently manufactures four main watch brandsviz.Titanfor the premiumsegment,Fastrack– focused on the youth andtrendy fashion space,Sonatafor them a s s ma r k et a n d Xylysf or th ep r e mi u m ma r k et . T h e Ti ta n b r a n d a r c h i t ec tu r ec omp r i s ess ev er a l s u b -b r a n d s , e a c h o f wh i c h i s a l ea de r i n i ts s e g m en t .N o ta b l e among them are:Titan Edge– T h e wor ld s s li mm es twa tc h wh i c h s ta n ds f or th e philosophy of "less is more";TitanRaga– the feminine and sensuous accessory for todayswoman,Nebula- crafted in solid gold and precious stones and severalother collections likeWall Street, Heritage,Regalia,Octane, Orion, Diva,Zoop, WWFand theAviator series, all of which form a part of theTitanwardrobe. Sonata is todayIndias largest watch selling brandand is priced between Rs 295/- and Rs 1200/-. Thecompanys firstSwiss Made watch – Xylys is for the hi-end connoisseur and newageachiever. It also marketsTommy Hilfigerwatches under a licensingarrangement andis introducingHugo Boss. Today, the Titan portfoliohas about 65% of the domestic market share in the organized watchmarket.Jewellery: Ta n i s h q i s In di a s la r g es t a n d fa s te s t g r o wi n gj e w el l er y b r a n d w i t h a premium range of gold jewellery studdedwith diamonds or coloured gems and a wide range in 22kt pure gold.Platinum jewellery is also a part of the product range Tanishq is oneof Indias largest speciality retailers and is transforming thejewellery market in India 102 boutiques in 72 c i ti es a c r os s th ec ou n tr y . ‘ G ol d P l u s i s th e r ec en t r e ta i l o ff er i n g f or t h e ma s sm a r k e t w i t h p la i n g ol d j e w el l er y s e l li n g t h r ou g h 19 stores in19 towns. The jewellery division has its own design studio.
  3. 3. Eye wear: Titan Eye+is currently on a pilot mode with 5 stores in2cities and hass u n g la s s es u n d er F a s tr a c k b r a n d a n dp r es c r i p ti on ey ew ea r c on s i s ti n g o f F r a m es , Lenses, Sunglasses,Accessories andContact Lenses of in-house brands andother premium brands.Precision Engineering: The Company’s Precision EngineeringDivision supplies precision components to the avionics and theautomotive industry. It also manufactures dashboard clocks as OEMto car m a n u f a c t u r e r s i n E u r o p e a n d A m e r i c a . T h ed i v i s i o n a l s o p r o v i d e s f u l l y i n t e g r a t e d Automationsolutions.
  4. 4. Brand Positioning Since its introduction, Titan has been positioned as a premiumbrand, providing highquality products. With its numerous sub -brands catering to different segments, the challengethat Titan fa cesis to create a strong brand image. It follows different positioningstrategies,these strategies can also be analysed as given below:Attribute Positioning: When the company launched itsproducts, it was the first to bring quartz watches to the Indianmarket. The company successfully leveraged this to penetrate themarket and gain a market share. Raga, Classique and Regalia comeunder this strategy. Classique has been positioned as elegantcorporate wear that leaves a quiet, but definite impression andfusion of function and sophistication. Power dressing now has a newweapon! As Magic in gold and b i c olo u r l oo k , t h e R eg a li a r a n g er ep r es en ts t h e e s s en c e of dr es s -w ea r . R a g a h a s b eendifferentiated and positioned as exclusive watches for women. TheRaga and Silver Raga collection is elegant, delicate and femininewith each piece being truly unique.User Positioning: Titan caters to several user groups- children(the Dash), sportspersons and adventurers (PSI4000 and Fastrackrange). The Fastrack range is seen as being contemporary, sturdyand reliable. The advertising, packaging and merchandising of thisrange is young, vibrant and ‘cool’ (the ad line says “Cool watches byTitan”).Competitor Positioning: With the entry of several foreignwatchmakers into the market, Titan had to counter the threat. Mostof the entrants are catering to the upper end of the market - Omega,Tissot, and Cartier etc. Titan already had the Tanishq brand in thissegment. However, it has tried to reposition this brand by increasin gthe price range to encourage more customers.
  5. 5. Price Positioning : In the overseas market, especially in Europewhere it is competing with Swiss and Japanese watches, it ispositioning itself as ‘value- for- money’: reasonably priced (less thanSwiss watches and higher than Japanese), attractively styled and ofgood quality. In Indian market, Sonata is a perfect example of Pricepositioning, titan came up with this segment when it was facingheavy competition from lower end segment.Market SegmentationMen’s segment: With Titan positioning its range of watches as a life-style, theIndian market started viewing watch more as a complement to dressthan just a time showing machine. They are also realising that,unlike other forms of art that are meant to be admired, high-endjewellery watches have that added bonus: practical luxury with afunction other than beauty. Watches have joined the list of tie,deodorant and shoes to represent the occasion and flaunt yourstatus.Nebula: M a r k e t ed a s th e “ J e w el l er y c ol l ec ti on fr o m Ti ta n ” ,N e b u la i s ta r g e te d t owa r ds affluent men who consider wearinggold jewellery a symbol of status. Magical blend of most coveted ofmetals, Gold and craftsmanship; Nebula is more of a connoisseurwatch with the l o w es t p r i c e mo d el a t R s .5 5 0 0 . I t i s m a r k e t ed a sa “ wa tc h for di s c e r n i n g i n di v i du a l ” positioned as a gold jewel.Regalia: “Incredibly eye-catching…. magic in gold”.The watch uses the unique combination of gold and bicolour looksrepresenting theessence of dress-wear. In India, gold-look is
  6. 6. associated with status but at the same time, thesilver -look is thefashion of the day in international watches. With the combination ofboth,this watch is targeted towards affluent businessmen. Theelegant looks and colours make it astrong competitor to the foreignbrands like the Tissot, Piaget and Rado. T h i s i s a ls o ma r k e t e d a s a wa tc h f or g i f t “ Sp ec i a l W a tc hf or s p ec i a l oc c a s i on ” , positioning this as a costly gift.Insignia: ‘The World Watch from Titan.’The watch with fascinatingdesigns and precision engineering was targeted towardstheEuropean markets. The complexity of this watch is 10 times morethan a regular titanwatch. Though it didn’t meet with much of asuccess in Europe, this tag line and keywordInternational” are usedto position this watch as a world-class watch forinternationaltraveller with European tastes.Classique: “Power dressing now has a new weapon!” “Timeless elegance captured on the wrist.” Classique is marketed as a fusion of function andsophistication. Classique with its looksfits the formal corporate image and ispositioned as a watch for corporate employees. Thisalso reinforcesthe importance of watch along with the dress worn. These watchesaregeneric in their simplicity and find no real competitors exceptHMT.Spectra: “Designed for those who look beyond the ordinary”. T h i sb r a n d fr o m Ti ta n ex t en ds ov er wi d e r a n g e o f p r i c e s fr o m 9 0 0 -7 0 0 0 . I t i s a classic premium watch with style, which boasts ofcombining the sturdiness of steel with richness of gold. Thepositioning of the watch is not very clear as it is targeted towards
  7. 7. thesalary earners with its lower price point models and appealingmodels for the corporateexecutives at the higher end.Sports Watches: In the Indian scenario the sport awareness is n ot quite there.And the market is notmature enough that consumers buy specialwatches for sporting except in the super-premiumand segmentsabove that. A sports watch in the mind of an average Indian is apolyamidewatch with stopwatch and trendy look. So th ere is no cleardistinction between sportswatches and casual watches. But in theavailable market Timex, Casio, and Titan are major players andafter the lifting of QR restrictions, world famous Tag - Heur has alsoenteredIndia but in the Connoisseur segment of sports watches.PSI2000: Titan has introduced a range of contemporary Precision Sportswatches. The brand ismarketed as tough, outdoor, adventure brand.(Psychographically segmented) Ranging from800 to 7500, thesewatches are in direct competition with foreign brands like SwatchIrony.Casual Wear: The segment of watches that has a variety of brands andmodels to appeal to the youthand mentally young people is casualwear. The watches in this segment are mainly sportywatches, whichare unconventional and typically symbolize the attitudes of youngergeneration.Titan Fast Track: “Cool watches from Titan”.The target audience for this watch,in the 20-35 age groups include working adults and postgraduatestudents of both sexes in metros and mini metros. T he Fast Trackuser, in termsof attitude is one who wears an informal dress, wearsbranded jeans, shirts, sunglasses and branded informal shoes. TheFast Track personality is that of a young, energetic,achievementoriented person, who seeks to express his or her individuality by
  8. 8. braking freefrom constraints of formal environment, without being arebel. Built around the Coolconcept, this watch from Titan hasvirtually very few competitors because no one offers thefeaturecombination and price but Casio (in digital range) and Espirit andSwatch (in theanalog range) can be considered as competitorsfeature-wise.Technology Watches: Wrist Watches have changed a lot from the inception - a timeshowing conveniencemachine to a status symbol. But the underlyingconcept remained unchanged, convenience.Stretching this concept abit with the development of technology are the technologywatchesavailable in the market. Watch for time, status has in thenew technology era is looked for convenience of carrying data. In tothe competitive market with people willing to pay a premium forthat advantage, a good number of brands have ventured.Women’s segmentDress Wear Titan has chiefly three brands in this category.Nebula (6000-65000)- “The Jeweller’s Collection” Nebula is a precious jewellery watchfrom Titan. It is marketed as ‘a magical blend of most coveted ofmetals and engineering excellence’. The Nebula range of watches ispositioned as objects of ornamentation. A 21 carat gold watch,studded with gems it istargeted at the upper most end of the marketin competition with brands such as Rolex andCartier.Regalia Regalia range is positioned as “Essence of dress wear”. It ismarketed as “Incredibly eye catching…magic in gold”. With theunique combination of gold and bicolour looks andsleek case,Regalia is targeted towards middle-aged women who consider watch
  9. 9. to be a statussymbol and also representing their delicacy. It isavailable in many price points betweenRs.1800 onwards.Raga and the Silver Raga Raga and the Silver Raga collection are positioned as “EthnicIndian styling for thesophisticated woman”. Each piece is trulyunique and represents elegance, delicacy andfeminine. The designsand the bracelets represent traditional Indian ornaments as wellascontemporary style.Fastrack The womans collection presents the all-new internationalFrosted look, which istrendy and chic. The ad lin e: ‘Fastrack- ‘Coolwatches from Titan’ aims at building the brand around the ‘cool‘concept.Fastrack is targeted at a personality that i s young,energetic, achievement-oriented,who seeks to express herindividuality by breaking free from constraints imposed byformalenvironments, without being a rebel. The positioning ofFastrack for men and women isalmost the same.
  10. 10. New logo and tagline - “BeMore”Beyond style Now, Titan wants to move from style statements to personalitystatements. Accordingto Harish Bhat, chief operating officer,watches, Titan Industries, a watch ought to denote thewearer’s moodand personality. “With the explosion of options in a person’s life, ourcoreconsumer is changing. And to keep up with them, Titan hasevolved too,” he says.On the adoption of ‘Be More’, Bhat says thatthat statement is supposed to denote theaspirations of consumers tomake more of their lives and be whatever they want to be.“Thewatch allows for such imaginative travels,” he says.Titan’sagency, Ogilvy India, has devised a campaign featuring Aamir Khanthatencourages people to find a new strand of their personalityevery day. It all started with a logochange a few months ago (thesame font in a red and white combination), followed by acampaignrolled out now.The ad filmopens on a shot of Aamir Khan sittingalone on a roller coaster, statin, ‘Be born every day’. Next, he is seenchasing the shadow of an aircraft on a beach, then,sitting beside atruck driver, in the middle of nowhere, with a trail of chassis trucksbehindhim. Here, he asks the viewers to try the adventure of gettingoff at an unknown station, of exploring unknown lands .
  11. 11. Consumer Awareness It was found that around 72% of the consumers in theagegroup of 20-30 years possess Fastrack brand, 14% Sonata, 6%Raga, 4% Nebula and only 2%own WWF and Edge
  12. 12. Period of use The respondents were asked to mention since how long theyhave been brand loyal toTitan. This was an open ended question andhence various responses were received. Theminimum period of usewas set as one year, as mentioned earlier, while the maximumperiodof use was determined. For convenience, the differentresponses are categorized into three:1year – 4years, 4years – 7yearsand 7years – 10years.64% of the respondents fall into first category,i.e., they are using Titan watch in therange of one to four years. 24%respondents are in second category and the rest 12 % areusing it formore than seven years.
  13. 13. Reasons for brand loyalty The respondents were asked to select the reasons from theoptions given for their preference for Titan watches. For thisquestion, multi-responses were received from therespondents. Reason % of Respondent Attractive design 78% Reasonable price 14% Brand image 44% Good quality 50%
  14. 14. Titan’s advertisements Titan advertises its watches in almost all media vehicles. Theadvertisements can beseen in TV, magazines, newspaper, hoardings,billboards, radio and so on.All the 50 respondents have seen theadvertisements of Titan watches in variousmedia. This was a multi -response question and the options given to select were restrictedtoTV, magazines, newspapers, hoardings and radio.The findings ofthe survey have been summarized in a table as follows : Media No. of respondents (as %) TV 82% Magazine 50% Newspaper 72% Hoardings 30% Facebook 40% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% TV Magazine Newspaper Hoardings
  15. 15. Conclusion The suggestions to improve consumer awareness about brandrepositioning strategy of Titan are as follows:•To increase its visibility, Titan Company can sponsor events similarto fashion showsin which all latest designs launched are displayed.This would have multiplier effectas the latest designs launched bythe company get noticed by different segments of the customers invaried ways.•Tie –up with FM radio channels for reminder advertisements andinforming customersabout various sales promotion offers from time-to-time.•Invest more in R&D as customer expectations are changing rapidly.Though Titan hasgot more product collections, it should focus onintroducing more varieties in alreadyexisting product collections. Inother words, having a limited but more depth in product collectionswould be more advantageous.•Introduce exclusive collection for working women which is morecontemporary andcomplements both traditional and western wear.•Majority of the population in India live in rural areas. So,showrooms should be set upat places nearer to them. Introducecheaper and rough use watches for this segment.•After sales service has to be improved. That is, the process ofservicing and repairingof watches should be made fas ter. This can bedone by ensuring the spare partsavailability and training all salespersonnel in Titan showrooms to undertake thesetasks.•Tie up with international watch brands and make them availablelocally.•Make use of internet to spread awareness among consumers aboutthe brand.
  16. 16. TITANKallol Kumar Sarkar2011096Sec- BMarketing Management –IIInstitute of Management Technology, Nagpur

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