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Marketing Strategy of Titan Watches1

Marketing Strategy of Titan Watches1

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Published by: ankurbudy on Oct 26, 2010
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03/13/2013

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MARKETING STRATEGY OF TITAN WATCHES

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MARKETING STRATEGY OF TITAN WATCHES
TITAN WATCHES ‡ Started in 1987 ‡ Joint-venture between TATA and TIDCO ‡ Quartz watches ‡ Market leader ‡ Most admired brand for many years

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MARKETING STRATEGY OF TITAN WATCHES
Marketing environment ‡ In 1987 ‡ HMT, the undisputed leader ‡ Synonymous with watches ‡ Established player ‡ PSU ‡ Leader in mechanical watches
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MARKETING STRATEGY OF TITAN WATCHES PEST factors ‡ Political ‡ Economical ‡ Social ‡ Technological 4 .

MARKETING STRATEGY OF TITAN WATCHES Political ‡ Stable government ‡ Tinges of liberalization ‡ Government had started allowing foreign brands to enter Indian market 5 .

MARKETING STRATEGY OF TITAN WATCHES Economic ‡ ‡ ‡ ‡ GDP growth rate was close to 3% Inflation rates stable but higher Protected economy Still highly regulated 6 .

Kawasaki Indians highly patronizing foreign brands Grey market Burma Bazaar¶s Increasing aspirations Good quality/foreign brands bought 7 .MARKETING STRATEGY OF TITAN WATCHES Social ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Changes in lifestyle Select exposure to MNC brands Entry of Honda.

MARKETING STRATEGY OF TITAN WATCHES Technological ‡ Better technological practices ‡ Quartz watches was the future ‡ Traditional mechanical watches ‡ Increasing preference for better technological products 8 .

MARKETING STRATEGY OF TITAN WATCHES COMPETITIVE ENVIRONMENT ‡ HMT undisputed leader ‡ Complacent ‡ Changing worldwide trends ‡ Preference for quartz ‡ Declining market for mechanical watches ‡ Indian consumers increasingly exposed to foreign brands through grey markets 9 .

MARKETING STRATEGY OF TITAN WATCHES TITAN¶s assessment ‡ Absence of any other major competitor ‡ Presence of HMT ‡ Complacent ‡ Higher market growth rates ‡ Quartz-the future of watch market ‡ Increasing share of grey market ‡ Lack of innovation amongst domestic players 10 .

MARKETING STRATEGY OF TITAN WATCHES CONSUMER ANALYSIS ‡ 50% of the watches bought by consumers are used as gifts ‡ Consumers looking for trendy watches ‡ Look at watches as a statement of their personality ‡ Market did not have trendy. designer oriented watches 11 .

MARKETING STRATEGY OF TITAN WATCHES PILLARS-TITAN¶s MARKETING STRATEGY ‡ Wants to be a leader ‡ Resources of Tata¶s ‡ Positioning strategy ‡ Marketing mix ‡ Segmentation 12 .

MARKETING STRATEGY OF TITAN WATCHES Wants to be a leader ‡ To become leader ‡ µconfront¶ with the leader ‡ Take HMT head-on ‡ Why ‡ Had the resources to fight the leader ‡ Backing/resources of Tata¶s 13 .

MARKETING STRATEGY OF TITAN WATCHES Positioning strategy ‡ Limited range of HMT ‡ Titan positioned watch as an µornament¶ ‡ Statement of fashion ‡ Change the consumer¶s perception of watches ‡ It could be gifted 14 .

MARKETING STRATEGY OF TITAN WATCHES Marketing Mix ‡ Product ‡ Price ‡ Place ‡ Promotion 15 .

16 .MARKETING STRATEGY OF TITAN WATCHES Product ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Quartz technology Better product Contemporary styles Started with 750 designs Faced dilemma Mechanical versus quartz Finally quartz Avoid price competition with HMT Do not want to confront a low-cost producer on price.

MARKETING STRATEGY OF TITAN WATCHES Product ‡ Objective was to ‡ Consumers buy more than one watch ‡ Market size increases ‡ Augment demand for watches ‡ Different range for different segments ‡ Introduce jewellery watches ‡ Indians buying designer jewellery abroad 17 .

high investment ‡ Avoid price confrontation with HMT ‡ Avoid price war ‡ Sell on differentiation 18 .MARKETING STRATEGY OF TITAN WATCHES Pricing ‡ Unique benefits ‡ Higher prices ‡ Higher cost of manufacture ‡ Latest plant.

MARKETING STRATEGY OF TITAN WATCHES Place ‡ Comes from positioning ‡ How customers buy fashion items ‡ Creating a showroom idea ‡ Dedicated exclusive distribution ‡ Investment in a showroom ‡ Inline with product positioning ‡ Prime locations 19 .

MARKETING STRATEGY OF TITAN WATCHES Promotion ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ Exploring relationships Why Gift items Promotion themes explored New relationships Market research feedback Focus on after sales network Why Poor feedback of consumers about service 20 .

MARKETING STRATEGY OF TITAN WATCHES Strategic Alliances ‡ Timex tie-up ‡ Titan¶s strong presence in middle income segment ‡ How to increase presence in lower segments ‡ Not presence ‡ Dominated by mechanical watches ‡ Presence of grey market ‡ Sale of trendy watches 21 .

MARKETING STRATEGY OF TITAN WATCHES Strategic alliance with Timex ‡ Timex leader in mechanical watches ‡ Attack HMT through Timex ‡ Decimate HMT ‡ Make the competitor as weak as possible ‡ Attack from many flanks ‡ HMT loses heavily 22 .

MARKETING STRATEGY OF TITAN WATCHES RESULT ‡ Market leader in next five years ‡ Most envied brand ‡ Dominant market share 23 .

MARKETING STRATEGY OF TITAN WATCHES HMT µs defence ‡ Market leader ‡ How to defend ‡ Revamps its product line ‡ Launches Elegant series ‡ Launches quartz range .

MARKETING STRATEGY OF TITAN WATCHES HMT¶s strength ‡ Low end ‡ Launches digital watches ‡ Rs 300-500 ‡ Showroom concept ‡ 30 showrooms ‡ Expand dealer network ‡ Motivation of dealer .

MARKETING STRATEGY OF TITAN WATCHES HMT ‡ Leads mechanical watches segment ‡ Lags quartz segment Strengths ‡ Its infrastructure ‡ Technical manpower ‡ Inhouse manufacture of most parts 26 .

MARKETING STRATEGY OF TITAN WATCHES Modifications in Titan¶s marketing strategy ‡ Why ‡ Changing environment ‡ Global competition ‡ New challenges 27 .

restrictions were removed on imports ‡ Upheavel in domestic market ‡ Made imports favorable for high end watches ‡ Unfavorable to domestic player 28 .MARKETING STRATEGY OF TITAN WATCHES Global competition ‡ Swiss and Japanese brands ‡ Removal of restrictions on imports ‡ By 1998.

MARKETING STRATEGY OF TITAN WATCHES Focus on semi-urban/rural markets ‡ Over 66% of the population ‡ Had developed variety of brands for various segments in urban markets ‡ Various price points ‡ Mostly urban centered ‡ Semi-urban and Rural markets ‡ Distribution challenges ‡ Increase number of outlets in semi-urban markets 29 .

25 years plus segment ‡ Rs 6000 to 32000 30 . another range of all Gold Watches ‡ End of 1998 ‡ Aimed at well ±to-do.MARKETING STRATEGY OF TITAN WATCHES Market Leader Expansion of markets ‡ Product innovation ‡ Launch of Nebula.

MARKETING STRATEGY OF TITAN WATCHES Titan launches Digital watches ‡ Digital Fastrack ‡ Young and sporty ‡ Cover flanks ‡ Break up with Timex Timex ‡ High-priced and lack of distribution 31 .

MARKETING STRATEGY OF TITAN WATCHES ‡ Globally youth was being targeted through digital watches ‡ Fastrack Digital collection on a fashion platform ‡ Multiple time zones ‡ Objective was to prevent competitors to enter from flanks 32 .

wants to wear a new face. 33 . is discerning and more importantly.MARKETING STRATEGY OF TITAN WATCHES Launch of Dash Expansion of markets ‡ ‡ ‡ ‡ ‡ Exciting brand for children 6 to 14 years Attractive colors and designs Positioning Targeted at the child who has style and class.

MARKETING STRATEGY OF TITAN WATCHES ‡ Children market nexplored ‡ 250 to 395 range for boys and girls ‡ Objective was to make consumers brand loyal at young age 34 .

MARKETING STRATEGY OF TITAN WATCHES Competitive advantage ‡ Early 2000s ‡ Low-price segments ‡ Semi-urban areas ‡ So far differentiation ‡ Low-price segments mean cost advantages ‡ How to cut costs 35 .

MARKETING STRATEGY OF TITAN WATCHES Competitive advantage ‡ Cost advantages had to be developed ‡ Focus on cost ‡ Shifted on production ‡ Control labor and other production costs ‡ Better realizations by controlling costs 36 .

MARKETING STRATEGY OF TITAN WATCHES Learning ‡ ‡ ‡ ‡ ‡ ‡ Understanding of environment Successful positioning Fighting a leader Identifying competitive advantage Changed its strategy with changing environment Strategic alliances with a competitor-Timex (of HMT) 37 .

MARKETING STRATEGY OF TITAN WATCHES Innovative marketing strategy was the main reason for successful strategy of Titan Watches 38 .

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