Titan’s Brand Building & Brand Reorganisation Strategy

BACKGROUND
Overview of the Indian Watch Market: The watch market in India recorded an approximate volume turnover of 23 million units (1998-99). It is growing at 9% per annum. The organized sector contributes to half the volume turnover of the industry and rest by the unorganized sector. Tough competition is anticipated between the low priced variants introduced by the organized sector and the unorganized sector. Watch consumption in India is 20 units per thousand persons. The top 23 cities account for 80% of the watches sold in India, which therefore leaves a lot of scope for penetration in the “rural towns”. Three players dominate the organized sector, HMT (34% market share), Titan (39%) and Timex (23%). Besides HMT, Titan and Timex several companies like Westar, Shivaki, Maxima, Bifora and SITCO made a bid for the Indian watch market. Liberalization has brought with it a host of brands for the Indian market, viz. Piguet, Cartier, Christian Dior, Omega, Raymond Weil, Rolex, and Tissot. Segmentation of Indian Watch industry (Based on price) Ø Mass (Rs.350-600), Ø Popular (Rs.600-900), Ø Premium (Rs.900-1500), Ø Super-premium (Rs.1500-8000) Ø Connoisseur segments (above Rs.8000) Mass Market (Rs 350 - 600): This segment represents the low end users and the rural market. Basic characteristic of this market is low margin and high volume. HMT brands in this price range: Lalit, Chetan , Chetak, Rajat, Kedar, Ravi, Kohinoor and shakti Titan is with: Basics, Aqura, and Sonata Popular Watches (Rs.600-900): This segment is slightly above the mass market segment. Somya and Tennax from HMT targets college going men and women who see themselves as

Connoiseur's Watches (Above Rs.800): Titan's Tanishq and HMT's Gem range fall into this category. and Sangam from HMT falls in this segment. and Misuni. .1000. A similar offering. It is difficult to categorize Titan's Royale. Timex's Mariner addresses the same profile as HMT’s Sowmya but a slightly older age group. So do most of the Swiss watches like Omega. Regalia etc of Titan can also be considerd under this range. Piaget. Slimline.900-1500): Vista from Timex and Chandan. HMT's Elegance range. Regalia and Classique as premium or popular. Though they have a premium image they are available at prices less than Rs.fashionable people.1500-8000): Titan’s Insignia. Timex's Indiglo and Datalink are main brand offered in this market segment. Super Premium Watches (Rs. and Bandhan. etc. These are bought more as status symbols and jewelry rather than watches. Longines. Premium Watches (Rs. Royal .

HMT’s Zap TIMEX’s Gimmix and Titan’s Dash are branded watches offered in category. Grey market is most dominant player of this segment. In keeping with its masculine image HMT introduced the Roman range.Youth Watches: Age group between 15 and 20 is treated as youth segment. Market research indicated that HMT wasseen as a masculine brand while Titan was seen as a feminine brand. Ø Kid's Watches: Target group is children aged between 7 and 10. Ruggedness and durability at low price is basic feature of this segment.Segmentation based on user category: Ø Women's Watches: Fashion and style are most visible feature of this segment Ø Men's Watches: HMT's Roman is probably the only watch that addresses the men's segment. . Mainly digital watches fall in this category. Ø Sports Watches: Stress of this segment is on trendy designs for casual wear with advanced features for the techno-savvy consumer. Ø.

Since its inception. (Source: www.indiainfoline. Titan is today the sixth-largest "manufacturer-brand" in the world. to sell more of its products at the same price. after Casio. Titan was first in India to introduce the style concept. HMT and local players had always looked at the functional utility of the watch. entered the watch market in 1984. . Over the twelve year period of its existence as a manufacturer. It has a highly integrated plant. but the gray market. Swatch and Timex of America. They first concentrated on technological leadership. They clearly identified that their main competitor was not HMT.TITAN INDUSTRIES About The Company Titan. A firm differentiates itself from its competitors if it can be unique at something that is valuable to the buyer beyond simply offering low price. Titan decided that it would be the shaper of the watch industry and not an adapter. or to gain equivalent benefits such as greater buyer loyalty. Titan changed the watch market in India completely by making quartz watch the centerpiece of its strategy. and they would set up state-of-the-art plant to manufacture watches in a wide variety of designs and prices. making virtually all the parts that go into a watch. a joint venture between Tamil Nadu Industrial Development Corporation (TIDCO) and the renowned Indian business group Tatas. Titan Company is the unquestioned leader in Indian Watch Industry. Citizen. Titan is one of the most powerful brands in the Indian market.com). Titan has added considerably both to capacity and to capability. Differentiation allows a firm to command a premium price. scoring very high on brand awareness. They projected the watch as a fashion accessory. Seiko. They created competitive advantage through differentiation. Differentiation leads to a superior performance if the price premium achieved exceeds any added costs of being unique. The Tatas took two decisions they will manufacture only quartz (analog and digital) and not mechanicals. brand image and brand preference.

materials.and thereby securing the twin benefits of higher output and lower costs. sportsmen. the products were developed in such a way so as to enhance quality and features to increase buyer value. Growth came mainly from improved market penetration and from the newly introduced Sonata brand (now Under TATA name). . the big spenders. machines and time . Over the years the Titan brand and its signature tune Mozzart’s Fifth Symphony has become one of the most recognised in Indian consumer durable goods segment. which now includes over 400 models at prices which start from Rs350. Also this segment of the market was relatively price inelastic. Company has shifted its growth strategy from adding to equipment and manpower to one of obtaining increased production through innovative ideas and greater operating efficiency by adopting global best practices. children. This was the perfect example of differentiation through technological leadership and product technological change. Company has recently developed a new focus on several market segments with large potential: women.producing more with less: less of men. In the initial years Titan chose to concentrate on the higher end of the market which was responsive to the style element of the watch. A systematic programme of launching these has already commenced and highlights of the year included the relaunch of Fastrack and Raga.76 million watches in the domestic market as against 3. The current year has seen the launch of the children's range. the budget-conscious and. youth. Company sold 4. Dash. It has come up with two priorities Ø The first priority has been to resolutely drive down unit costs through product and process modifications and aggressive sourcing. This was done so as to build the brand image of Titan as manufacturer of good quality stylish watches. Ø The second priority has been to boost asset productivity .At Titan.97 million in the previous year. of course.

a logistical support system and. Titan’s marketing strategy was initially built around 5 features: Ø A product of international quality. attractively priced. however. say. The Company now has 112 exclusive Titan Showrooms called 'The World of Titan' across 69 towns and a chain of 101 Time Zone outlets covering 59 towns in addition to being present in over 5545 dealer outlets in 1470 towns across the country. Accomplishing these multiple tasks in a timely way was a monumental undertaking for a new. The marketing program would introduce to India the type of promotional effort familiar in most developed countries. priced higher than other watches then on the market but not beyond the reach of millions of potential purchasers. Ø Competitive prices. untested company. high-quality products. and Ø Specialized retail shops to control the presentation. sufficient inventories. Ø An intensive advertising and promotion campaign. available in clean and comfortable surroundings. that would place Titan watches in direct competition with. a well-timed promotional campaign. solid gold line. Ø Indian designs. In order to be successful. Nebula. It was not a program. all facets of the program had to come together: attractive designs. is also being rolled out.A new. quartz analog watch was an entirely new product for India in 1987. fashionable timepieces. therefore. since the general quality of watch merchandising in India was low. mechanical watches from HMT. Sales and Marketing Titan launched totally a new product. This ambitious marketing program was intended to position Titan watches as high-quality. .

The Spectra range in this price band is a well-designed bimetal watch ("stylishness of gold and ruggedness of steel"). targeted at urban men and women in the age group of 25-35 years.Product Portfolio of Titan Sonata from Titan (Now sold under TATA) aims at the mass market and advertises itself as "a Titan watch at low price"." Classique is the embodiment of everything that is everlasting yet contemporary.6 million watches) caters to the gift segment.0.1000. " A perfect fit for formal wear. These watches tend to be generic in their simplicity.0 million pieces per year because of the constant upgradation in its models. clean classic dials and sleek cases. Classique and Regalia are the watches that gave Titan the popularity and the prestige it enjoys.1 million units). Though they have a premium image they are available at prices less than Rs.0. These watches are priced between Rs 550 to Rs 3000. 2001) its range of watches in steel. thus making it. It is reportedly selling 1.2 million units) is at the higher end with dress watches for special occasions. Royale. There is also Royale Crown in the upper end of the Royale range. The Royale range (estimated sales . They all target the upper middle class men and women in their thirties. Titan's Exacta. Sonata sold an estimated 0. male segment of the market. Classique is an office wears accessory that is gold-plated and leather strapped (estimated sales . Titan Industries launched (September. Regalia and Classique as premium or popular. Though there are very high priced watches in the above three ranges it is the relatively low-priced ones that sell. and profess timeless elegance through a combination of fine leather straps.8 million pieces (1998-99) within four years of its launch. Regalia (estimated sales . except HMT. It sold just 70.000 units in 199798. The Titan Steel collection has a range of bracelet and leather strap watches for both men . a rugged steel watch starts at the low end of the price spectrum but offers high price versions as well. It is probably the largest selling sub brand from Titan. Titan entered the watch market as a premium watch but competition from the unorganized sector and low priced options from HMT forced Titan to introduce Sonata. It is difficult to categorize Titan's Royale. and find no real competitors. Sonata was so successful that it cannibalized the brand from the extension’s low price connotation. Classique watches are targeted at the older.

In fact the company's focus would be on niche segments to grow the market. however. chronographs. which is trendy and chic.250 and Rs 6. Titan's Raga is an interesting product concept that offered to give dials that match with designs on saris. Raga silver watch range also did not fare well because Indian dials. Titan's Tanishq range initially targeted the European market with limited success. TIL. The watches retail from Rs 995 to Rs 1. unconventional and designed to accessories western wear. polished and satin and come in varied geometric shapes with trendy leather straps and classy metal bracelets. In India also Tanishq faced resistance because Indian women do not treat watches as jewelry. . By planning to launch a brand in the super premium category. Time Zone and other retail outlets. available in 90 designs. Titan Industries launched its Fastrack range of watches for women (For Men It is already present). This promise was unrealistic and Raga flopped (estimated sales . The Fastrack collection has elements like cool mesh straps and features that include backlight and dual time. bold. Designs that go from the relaxed and informal to the definitely sporty. The watches which have been designed at Titan's creative studio is the outcome of research that has highlighted the need for a watch that is fashionable. Raga is now being launched in more mellow colors and its positioning changed. The company is exploring the possibility of filling up the gap in the super premium segment. The launch of the steel watches.000. At present only Swiss brands have a presence in this niche. alarm and Hi-light glow.000 and Rs 32. Also presenting a range of fashion digitals in contemporary wrist hugging cases with oversized displays and features that include countdown timers. will be followed by an aggressive marketing campaign.950 and are attractively priced.20. The woman's collection presents the all-new international 'Frosted' look. has its Nebula range for both men and women priced between Rs 6. Titan perhaps hopes to be present across all categories. The new range is expected to higher price than the Nebula range. The range will be retailed through World of Titan. hourly chime.and women priced between Rs 1. A collection of watches with contemporary styles those are young and distinctive.000. The ladies watches are available in different finishes frosted. lap timers.000 units).

the main concern was: Does the sum of all our communication for Raga. But the unorganized sector and low priced options from HMT gave Titan serious competition. And Lumibrite. Sonata was so successful that it cannibalized the sales of all Titan watches across the board. Dash is available in 3 new collections for kids . is a glow watch that comes at Rs 325.Popeye. PROBLEM IDENTIFICATION Titan entered the watch market as a premium watch. The company has also brought out a collection of five watches for the girls. With the import duty reduced to 25% (earlier 50%) and with the import license for watch movement being easy to obtain. These small players offered competition to Titan on the price front. Thus Titan launched low priced segment Sonata. Therefore Titan planed to drop its name and leave the brand as Sonata under TATA thereby distancing the parent brand from the extension’s low price association. many smalltime players cropped up. Titan consequently is wary of Sonata diluting its premium image. Classique and Regalia add up to Titan? We felt it didn't besides. Even if we consider sonata as separate from Titan then it was second to titan in terms of turnover. The unorganized sector grew very fast — almost 55% of the demand in the total market size of 20 million watches was being met by the unorganised sector. Titan is the sole licensee of Popeye in India and this range is priced between Rs 350 and Rs 395. Digital and Lumibrite. priced at Rs 295. leaving behind Timex and HMT. Another problem for Titan can be reflected in terms of VP marketing’s concern: "For us. building each of .Dash is Titan’s reply to Gimmix and Zap. the Popeye brand of watches come in 6 different designs. The Digital range in a collection of 10 digital watches has features like El-light compass and Velcro straps for the sporty and is priced between Rs 425 and Rs 495. Giving Popeye of the spinach-eating fame the additional responsibility of keeping time.

while in reality the market is very segmented and distinct. The answer from Titan came was Sonata. But as all branded players have discovered. Thus there was a need to foray into these already present segments. Mistake companies generally make in approaching the rural market is to see as one large lump. whether it was the youngsters or the Children. Also the Mid-priced zone had been less exciting HMT and Maxima have been crawling along. but in terms of marketing if we consider Classique or any other brand it was not targeting any particular segment initially with a focus. product designing and brand communication skills. Titan has already made some admirable breakthroughs in this brand-building area. Titan sought ownership of the 'style' portion of the target consumer's mind which was fine at the upper-end. Titan is currently in test market in rural Andhra Pradesh.them as separate brands is a very expensive proposition. instead of a multi brand strategy here. we're going to unveil a single-brand one. The strategy has theoretical backing in the context that products reach parity and people gain enough money to satisfy more than their basic needs. while Timex was recovering. . with which there's greater scope to stand apart. It is also putting in place a strategy to tap the rural market rigorously. As a brand. Secondary Information & Critical Analysis Titan is more a marketer than a manufacturer. Titan has been facing a dilemma that whether it should market these brands as independent sub-brands or not. the real action is at the voluminous lower end – where the unorganized-sector and grey-market players have been having a blast. but in terms of Titan they don't have the communication. While has the product and the brand for this market in the form of 'Sonata'. So. but lacked direction towards huge price-sensitive segment. Titan has been the first one to build upon style. but it because of the high costs carried on with status quo but with more emphasis on segments. and reach in terms of distribution. This puts the emphasis on need identifying. the most prized assets start shifting from manufacturing know-how and factory machines towards the consumer relationship section of the chain.

very often.90 lakh units marking a growth of 18 per cent. This can be further strengthened by the arguments given by one of the 22 immutable laws of Ries.was not very significant.200.9 cr Titan Industries Ltd has posted an increased sales turnover during the third quarter of the fiscal by 40 per cent from Rs 105.Titan third-quarter net jumps 28% to Rs 1. a relatively low-priced brand (starting from about Rs 350apiece). TATA TITAN SONATA The price differential between the two ranges -. What's more. thus it initially positioned it as a Titan sub-brand. (News Item in Financial Express) The retail network in this segment proved to be a formidable barrier to competition. a value-conscious Titan buyer would end up settling for a Sonata. Sonata (plastic) and its newly launched Dash labels. They sold through the same distribution outlets.97 crore in the current year while the company's profit after tax has gone up by 28 per cent from Rs 1. Its strength here has helped Sonata. achieve annual sales of almost 3 million units within just four years of launch.96 crore During the nine month period. it was because of this success that Titan needed to churn out 300. Now. the look of the two watches was not very different either.000 units more than the capacity. There was a dire need for Titan to launch a watch brand for the lower segment.Sonata and Titan -. Which says that the association with the company name and product is a very important factor in brand building. Cannibalization between Titan and Sonata rose from 15-20% in the first year to almost 30% by the end of the second year. If instead of Titan Sonata had been under TELCO then the association with heavy machinery would have been awkward to consumers. Titan's initial reaction was to .38 lakh pieces to 36. Titan had a very strong direct relationship with watch market than any other TATA Company. If Sonata was priced at Rs 845. led by brands like Regalia. Raga. Fastrack. a similar-looking Titan would be priced at Rs 1.37 crore to Rs 1.85 crore to Rs 147. As a result. Titan's watch sales rose from 31. Indeed. But this we think was a tactical mistake made by the company.

instead of competing with each other for space. Having sold 2 million units last year. Within these towns. however..400 towns and they have no presence in smaller villages. Already. sales and marketing. Sonata is clear evidence of Titan's new brand strategy. Further.4 million units. the pricing and positioning of Sonata vis-a-vis the grey market was tentative. Now Sonata will be sold as under the banner of TATA. But that meant that Sonata was unable to stem the onslaught of the unorganised competition. Currently. .’’ Mr Kurien said. to tackle the competition—primarily from the unorganised sector— Sonata will be penetrated into the rural market. Now that system has been changed. such as Bhopal. Sonata's next big opportunity is to open up new markets." As a part of the new strategy. earlier the same distributor salesman would go to sell both Titan and Sonata to a retailer. Says vice-president.000 outlets. will be to go into smaller towns. Sonata will lead Titan's drive into the rural market. That way. Titan is creating a dedicated distribution infrastructure for Sonata. where it is opening its first Sonata showroom. Now in a change of tactic Titan has decided to take the grey market head on. The strategy. The company now plans to set up about 10 Sonata showrooms —exclusive franchised outlets—this fiscal. Titan and Sonata are available only in around 1. It now wants to be a full pyramid player addressing every segment in the market. Two different salesmen go on different days to the same retailer to sell Titan and Sonata as separate brands. ‘‘We now have to get into smaller towns and make it an economic proposition. In 1998-99 if we consider Sonata as different from Titan then this 2-year-old brand managed to clock sales of nearly 2. Sonata has also added 500 outlets in the last one year. marginally less than numero uno Titan. with an ad budget of Rs 5 crore which is double than last year’s is being positioned as an aspirational watch for the grey market consumer. For instance. which is expected to touch 3 million units this year. Sonata showrooms will be located in ‘watch localities’ rather than ‘hot and happening places’. Bijou Kurien: "Earlier. To prevent cannibalization and drive distribution penetration. Sonata. Titan and Sonata can hope to grab market share away from other brands. thereby pushing up the total coverage to 6.cap Sonata's volumes at 2 million watches so that it did not cut into the mother brand's volumes.

sizing the market. The girls line may be priced within the FasTrack price band: Rs 850-Rs 1500. According to Xerxes Desai. and finding ways of penetrating it. vice chairman and managing director. Now Titan is changing the position with Titan as umbrella link brand with clear differentiation of the sub-brands. and will come out with a new collection for men and women by the yearend. Having created the desire now Titan wants it to translate it into demand. constant change is the only way to survive.5 feet to make it more accessible to . has recognised the greater need for upgradation in this segment more than any other. Close on the heels of watch brands for children and the youth. Coming up with Fastrack Titan is using smart new designs (for men and women) to counter Swatch and Esprit. In the Titan portfolio. Titan Industries. Titan Industries will launch an exclusive line for college girls. To plug this gap. Titan may launch a “different look” one that would be more feminine and colourful in comparison to the men’s line which is more instrumental. Titan decided to have the Dash display at the height of 3. which forayed into fashion watches in 1998 with Fastrack. Titan earlier launched into several sub-brands. sporty and macho. The debate is whether to launch this new line under the ‘FasTrack’ umbrella or as a new brand altogether. Fastrack contributes to 4 per cent in value and the company has decided to establish it as an independent brand because of its high penetration potential. Titan had treated this segment as part of its youth brand ‘FasTrack’ without producing products specifically for it. Titan Industries. So while keeping to the FasTrack brand field and imagery.Titan by foraying into Fastrack and Dash has made it apparent its strategy of identifying the segments. So far. but it cared little to communicate their meaning to consumers. which have won the admiration of the style – conscious Indian youngster. then the realisation of its fickleness and thereby. though positioned for the 15-25 years age group. Titan has developed a new line positioned at girls between the ages of 16 and 24. has a lot of older customers in its net as well. Fastrack. main gap in the portfolio was the target segment containing girls. Once the product is with a ‘fashion’ tag. There is a fine example of this strategy in form of advertising campaign for DASH As a marketing experiment at the showrooms. From the earlier strategy of catch all the strategy now is to focus on the different segments more sharply.

the child. It also kept colorful stools for the children to stand on to have a better look at the watches. billboards. This includes television commercial. Inspired by nightlife and urban lifestyle. a multimedia campaign will herald the launch of this dramatic product-line. in-store display material and webbased promotions. . print ads.

and resource-allocation.Beginning July 2000. and business results. Xerxes Desai at the helm of affairs. process management. With the able leader in form of Mr. Since its inception. Titan has become a dynamic. customer and market focus. The objectives of TBEM are: Ø To provide a framework for the group to become competitive. The Leadership criterion checks how senior leaders create leadership system based on Group values. information and analysis. and complaint-management issues. Ø To become a transformational tool for every company. Ø To acquire competitiveness using quality as the route. it will be evaluated on 7 parameters that constitute the TBEM: leadership. Ø To work as a competition to ensure participation. Titan currently stands second in the Tata group. 4. Titan has its information systems in place and has its hand on the pulse of the watch market. key Customer needs. The TBEM drives excellence across functions in the following manner: 1. The Strategic Planning criterion examines how the company develops strategic objectives.THE TATA BUSINESS EXCELLENCE MODEL (TBEM): Titan Industries has signed up to implement the compliance plan laid out by the TBEM. Action plans. The Information and Analysis criteria check whether the organisation has key metrics in place To measure and analyse performance. vibrant and pro-active organization. human resources focus. after Tata Steel. . Titan has always been a customer centric organisation and always has focused on satisfying the customer demands. 3. The Customer and Market Focus checks how the company determines customer groups. Titan has been the shaper of the watch industry. with a score of 450. It has identified the future trends well in advance and taken appropriate steps in the right direction to emerge as the leader in the industry. The goal is to reach a score of 600 in next five years. strategic planning. Ø To monitor the progress through ratings. Being market-driven. 2.

and Supply chain management. production and delivery process. 6. and the Training and development of the employees. Process management examines the product design.5. . Titan has pioneered the style concept in the watch industry and is the undoubted leader in design. The Human Resources Focus checks the appraisal system. the work environment.

Middle-east Complementing this segmentation Titan is pursuing a 3-pronged strategy Ø Create a separate brand for the lower end of the segment. Social class: upper. This would require greater creative risk. middle income group etc.500 retailers abroad and high volume of domestic presence. Titan has segmented the market on the basis of the following variables: Ø Demographic: The segmentation here is done on the basis of social class i.e. since marketing is potentially and intimately connected with the “ability to pay” this segmentation is meaningful in analysing buying patterns of a particular class.Strategy Evaluation Titan banks on Cutting edge technology that has helped Titan create value-formoney price and the result is extraordinary marketing presence in about 40 countries. Lifestyle : professionals. children. Till date Titan is able to single-mindedly convey a point of differentiation that strikes the consumer then whether it is in terms of price (Sonata) or extraordinary beauty (Slim “Edge” watches). Ø Create new (sub) brands for unaddressed segments. like kids. traditional Ø Behavioral: Benefits: functional. to fulfill human needs in novel ways and still go on for profitable growth. with a network of some 3. attractive. “cool”. Occasions: gifts. . if the stakes are reaching gigantic proportions it's time to get one's eyes in. But the point is that whether the strategies which Titan is following will take Titan to a position of global uniqueness: a brand which brings information and ideas together from around the world. adults. affluent Personality: adventurous.Age. People within the same demographic group can exhibit very different Psychographic profiles. reliable. But then. middle and lower come in this category. Ø Psycho graphic: In Psychographic segmentation buyers are divided into different groups on the basis of lifestyle and personalities. special occasions Ø Geographical: Region: Europe. But maybe what's required is a campaign with executional variety a TV campaign that uses attention-getting devices to drive home the message. young. working class.

women etc. Ø Attribute positioning: When the company launched its products. finely crafted sleek cases and patterned dials with special appliqué flowing into intricately designed bracelets. The chauffeur and the owner. Power dressing now has a new weapon! Regalia as Magic in gold and unique futuristic material. Classique has been positioned as elegant corporate wear that leaves a quiet. The company successfully leveraged this to penetrate the market and gain a market share. both had Titan on their wrists. like businessmen. Raga Classique and Regalia come under this strategy.entered Titan’s fold. the watchmaker focused on product differentiation as the selling platform With product differentiation being replaced by segment-based focus. its utility faded as Titan introduced more (and cheaper) watches.belonging to very different socioeconomic categories . the 'Regalia' range represents the essence of dress-wear. the challenge that Titan faces is to create a strong brand image. Titan’s subbrands building has got bright chances of creating an identity of their own. This was the major re-emphasise of the sub-brands. A unique combination of an all-gold and bicolour look. Fastrack. delicate and feminine . It follows different positioning strategies. dash and Raga. Titan’s first attempt at emphasizing its sub-brands didn’t yield the desired results. With its numerous sub-brands catering to different segments. Positioning Strategies Since its introduction. providing high quality products. it was the first to bring quartz watches to the Indian market.Ø Re-aim existing sub-brands (Raga. these strategies can also be analysed in the present context of Sonata. the brand turned mass market. Classique and Regalia etc) to attract specific customer segments. Titan has been positioned as a premium brand. but definite impression and fusion of function and sophistication. Initially Mozart’s symphony number 25 (Titan’s signature tune) imprinted the brand in the minds of consumers. The Raga and Silver Raga collection is elegant. Instead of targeting different customer segments with different sub-brands (as is being done now). Classique and Regalia as . As more customers . Raga has been differentiated and positioned as Exclusive watches for women.

Ø Quality or price positioning: In the overseas market. Ø User positioning: Titan caters to several user groups. An exciting collection that includes decorative motifs. the Silver Raga makes a perfect accessory that completes a woman's wardrobe. Crafted exclusively for the sophisticated woman.with each piece being truly unique. The digital watch has a “techno-geek” image. titan came up with this segment when it was facing heavy competition from lower end segment. vibrant and ‘cool’ (the ad line says “Cool watches by Titan”) Ø Benefit positioning: The Fastrack Digital range offers the customer a functional watch that is also attractive. it has tried to reposition this brand by increasing the price range to encourage more customers. The Fastrack range is seen as being contemporary. Ø Competitor positioning: With the entry of several foreign watchmakers into the market. Cartier etc. Tissot. However. attractively styled and of good quality. 'kadas'. In India Market Sonata is a perfect example of Price positioning. packaging and merchandising of this range is young. Titan had to counter the threat.money’: reasonably priced (less than Swiss watches and higher than Japanese).children (the Dash). The designs are inspired by traditional Indian as well as contemporary motifs and are expressed in ropes. especially in Europe where it is competing with Swiss and Japanese watches. studded bracelets and a first of its kind three-in-one watch. who wears silver jewellery with elan. but Titan seeks to differentiate its offering on the basis of superior style and attractiveness. . Most of the entrants are catering to the upper end of the market.for.Omega. sturdy and reliable. 'kadas' and ornamental bracelets. The advertising. it is positioning itself as ‘value. sportspersons and adventurers (PSI4000 and Fastrack range). Titan already had the Tanishq brand in this segment.

Titan in Indian watch market seems to have done this. we need only refer to marketing guru Al Ries’ definition of the word. In addition. if not more significant than mere quality. luggage etc. which would have only gone on to cannibalize the value of the core brand. advertising is more of an investment than an expense. the fact remains that brands are not built by quality alone. If done right. Titan has implemented this by always maintaining a high degree of visibility when it comes to it’s advertising. writing instruments. The perception of the brand is as. it possesses one of the most recognizable ad-jingles in the history of Indian advertising. Using these laws we can see the Titans Brand building strategies. and a brand. has stuck to its focus. In the Indian context Titan can be taken as for the watches. • The Law of Contraction: A brand becomes stronger when its focus is narrowed. but rather limiting and focusing a brand on only one type of core product. As a result of this. though possessed of a wide product line. It is here that Titan “scores”. • The Law of Advertising: Once born. which is “a brand is a proper noun that can be used in place of a common word”.Laws of Branding and Titan In order to truly gauge the extent to which Titan has built itself into a nationally recognized brand. which in Titan’s case happens to be watches. • The Law of the Word: As we have seen in the STAS and Long term advertising effects.) but still the core focus is Watch Industry. Titan. a brand needs to actively advertise in order to stay healthy and maintain market share. It hasn’t launched other types of products and stuck them with the Titan name. Titan has developed for itself an image of being “timekeeping experts” in the minds of the consumers. This is what marks the difference between a mere name of a product. any brand should strive to retain words in the mind of the consumer. Although no it is going for the brand extension (wallets. Perhaps one of the most highly regarded works on brand building is the now classic ‘22 Immutable Laws of Branding’ by the father and daughter team of Al and Laura Ries. • The Law of Quality: Though quality is essential to the survival and growth of any brand. This does not imply carrying a limited product line. As mentioned previously Titan more or less owns the word .

however buy a Titan. it’s actual quality. There is a difference. • The Law of the Name: In the long run.“quality” in the minds of the consumers. This has been clearly satisfied by titan through its pricing and branding policy. Even Titan sounds more classy and sophisticated than Hindustan Machine Tools (HMT). First of all. Chances are that no one would buy a Tata watch (it’s name invoking the same. Fastrack (Youth) etc are all large & profitable enough to direct marketing effort towards them. as well as to remember. The segments must permit the firm to direct successfully different marketing effort towards the segments. and symbolizes greatness. than with watch making. purchasing power. Classique (office wear). as well as it’s perception of being a quality product combine to work towards building the strength of the Titan brand. It is easy to pronounce. and companies are companies. Representability: Segments should be large and profitable enough to be considered as a separate market. the name ‘Titan’ itself comes from Greek mythology. as it is between their names. Segments should be large enough to permit viable market effort directed towards them. Such segments must be representative in nature and must have individuality of their own. The existing channels of distribution for Titan like exclusive showrooms and shop dealers can support titans various segments. Titan has fully satisfied this condition as its models i. The difference between products is thus not so much between the products. Accessibility: Could be attained through the existing channel of distribution. we feel that this point warrants a slightly more in-depth discussion. thereby implying that it is perceived as a quality product. Thus. While foraying into the Youngsters and Kids segment titan . which is cornered by “Dash” Measurable: The size. • The Law of the Company: Brands are brands. if not greater reaction than an HMT). Psi 2000. Conditions Necessary for segmentation Vs Titan Substantiality: This refers to the size of segmented markets. and characteristics of the segments have to be measurable. Seeing as how its name is perhaps the most important element of a brand. Titan is owned by the Tata Group. grandeur and power.e. People would. regalia (premium segment). or perceptions of the names. For example this condition is fulfilled in the kids segment. a brand is nothing more than a name. who though highly regarded in Indian industry are associated more with heavy industries such as steel and truck building.

was sure that this segment is already present there and just the need was to differentiate and position itself. .

Managerial Opinion In our view the disassociation of the Sonata brand from the parent Titan and its further association with TATA was a well long term planned strategy. Introduction the launch of Titan Elaboration and other products around 1990’s (late ) Fortification Launch of Fastrack. But as we have seen that the sonata has been cannibalizing the Titan sub-brands. This all exercise leads to the conclusion that Titan is on a path of Fortification by means of building image through launch of new product categories of watches for various segments. after the initial introductory and elaboration phase. Sonata . Dash and further focu -sed segmentation. In 1984 onwards with Launch of Classique. whether this strategy is able to bring back the style image of Titan back. as the association of Sonata built in quite strong with Titan and Titan in Indian context is synonymous with Watches thus a strong association of Sonata with the watches segment developed.