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MARKETING MANAGEMENT

CLASS : PGDM DIV : A

PROJECT ON 4PS OF TITAN WATCHES

INDEX

SR.NO TOPIC
1 INTRODUCTION: Marketing, Marketing Management, Consumer behavior, Segementation, Targeting, Positioning 4PS OF MARKETING OF TITAN PRODUCT PRICE PROMOTION PLACE SEGMENTATION TARGETING POSITIONING CONCLUSION BIBILOGRAPHY AND WEBILOGRAPHHY

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What is Marketing?
Marketing is about identifying and meeting human and social needs. It is also defined as meeting needs profitably. Marketing is everywhere. Good marketing has become an increasingly vital ingredient for business success. Marketing profoundly affects our day-to-day lives.it is embedded in everything we do. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. According to Philip Kotler, "Marketing is human activity directed at satisfying needs and wants through exchange process." According to William Stanton, "Marketing is a total system of business activities designed to plan, price, promote and distribute want-satisfying products to target markets to achieve organizational objectives."

Eg: When IKEA noticed that people wanted good furniture at a substantially lower price, it created knockdown furniture.

Marketing Management
Marketing management is defined as the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.

1. Marketing mix is the combination of four basic elements/ingredients under one head. Product itself is the most important element of marketing mix. Price, place and promotion are the other supporting elements. Marketing mix indicates an appropriate combination of four Ps for achieving marketing objectives. 2. According to Philip Kotler, "A Marketing mix is the mixture of controllable marketing variables that the firm uses to pursue the sought level of sales in the target market." Eg: When Sony designed its Play Station 3 game system, when Apple launched its iPod Nano digital music player, and when Toyota introduced its Prius Hybrid automobile, these manufacturers were swamped with orders because they had designed the right product, based on doing careful marketing homework.

Consumer behavior
Consumer behaviour is the study of when, why, how, and where people do or do not buy a product. It blends elements from psychology, sociology, social anthropology and economics. It attempts to understand the buyer decision making process, both individually and in groups. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, reference groups, and society in general.

Segmentation
Segmenting is the process of dividing the market into segments based on customer characteristics and needs. The main activity segmenting consists of four sub activities. These are: 1. Determining who the actual and potential customers are

2. Identifying segments 3. Analyzing the intensity of competitors in the market 4. Selecting the attractive customer segments.

SEGMENTATION STRATEGY OF TITAN:


After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. The segments were arrived at using benefit and income level as the bases.

The first consisted of the high income/ elite consumers who were buying a watch as a fashion accessory not as a mere instrument showing time. They were also willing to buy a watch on impulse. The price tag did not matter to this segment.

The next segment consisted of consumers who preferred some fashion in their watches but to them price did matter. While they had the capacity to pay the price required for a good watch, they would not purchase a watch without comparing various offers in the market.

The third segment consisted of the lower-income consumers who saw a watch mainly as a timekeeping device and bought mainly on the basis of price.

For the first segment, Titan offered Aurum and Royale in the gold/ jewellery watch range. They were stylish dress watches in all gold and precious metals. The prices between Rs.20,000 & 1 lakh.

For the middle segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigours of daily life. There were 100 different models in the range. The price range was Rs.500-700. Titan also offered the RAGA range for women in this segment.

And, for the third segment, Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, the SONATA range. The price range was Rs.350500. It was offered in 200 different models. Titan also offered the Dash! range for children. Indepth segmentation helped Titan launch segment-specific product.

Targeting
A marketer can rarely satisfy everyone in a market. Not everyone likes the same cereal, hotel room, restaurant, automobile, college, or movie. Therefore, marketers start by dividing the market into segments. They identify and profile distinct grops of buyers who might prefer or require varying product and service mixes by examining demographic, psychographic, and behavioral differences among buyers. After the most attractive segments are selected, a company should not directly start targeting all these segments -- other important factors come into play in defining a target market. Four sub activities form the basis 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' abilities 4. Deciding on the actual target markets.

Positoning
When the list of target markets is made, a company might want to start on deciding on a good marketing mix directly. But an important step before developing the marketing mix is deciding on how to create an identity or image of the product in the mind of the customer. Every segment is different from the others, so different customers with different ideas of what they expect from the product. In the process of positioning the company: 1. Identifies the differential advantages in each segment 2. Decides on a different positioning concept for each of these segments. When the positioning statement is created, one can start on creating the marketing mix.

Marketing Mix
The marketing mix is a broad concept which includes several aspects of marketing which all inquire to obtain a similar goal of creating awareness and customer loyalty. The marketing mix is not only an important concept, but a guideline to reference back to when implementing the price, promotion, product, and distribution.

The 4Ps of marketing are:1. Product 2. Price 3. Promotion


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4. Place

PRODUCT

Indian Watch industry is estimated to be around 1600 crores and Titan is riding on top of it with a market share of over 50%. This is a super brand that has changed the way we look at ( or wear) watches. A marketing success story, Titan is a brand that will be of interest to most of the marketers.

Titan , a brand from TATA was launched in 1987. During that time Indian watch market was dominated by HMT . At that time watches were seldom stylish and was catering to the basic need of knowing the time. Titan changed all that. With its stylish watches and smart advertising ,Titan took the market by storm. Titan infact changed the way watches was manufactured and marketed in India. HMT , a public sector company seldom bothered to respond.

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The Company was Incorporated on 26th July, at Chennai. The Manufacture analog electronic watches with a choice of over 150 designs. The company was promoted jointly by Questar Investments, Ltd., a Tata Company with its associates Tata Sons, Ltd., and Tata Press, Ltd., and Tamil Nadu Industrial Development Corporation, Ltd.(TIDCO). The main objective of the company is to manufacture analog electronic watches with a choice of over 150 designs. The Company undertook to set up a plant for the manufacture of quartz analog electronic watches in the State Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial area at Hosur.

Titan initially pioneered the concept of " Gifting watches". The ads captured the essence of gifting and along with the trendy music, easily caught the imagination of the market. Customers who were fed up with ugly time machines welcomed the brand and Titan had a dream run for many years.

The Company entered into a collaboration agreement with FranceEbauches (FE) of France, manufacturers of watch movements and components, for technical documentation, assistance in procurement of manufacturing equipments, raw materials, etc. The Company proposed to manufacture 2 million digital and analog-digital watches in collaboration with Casio Computer Company of Japan. A MOU was signed between the Company and Casio in November, 1986. In 1987 the Company established a manufacturing facility at Hosur for the manufacture of components for watches.

In 1989 a new range of watches called `Aqura' was launched in December. 1992. Over 150 new models were introduced of which `Raga' introduced in June, `Spectra' a range of watches in steel and gold plated was reintroduced with a new look in August. It was proposed to introduce a host of new products based on new movements.

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THE TITAN VIEW OF A WATCH


A watch is now looked at as a personal accessory, an extension of a persons lifestyle. The design of the dial and the strap influence a buyers choice rather than just the function. Also, a whole new range of technologically superior watches has also entered the market.

With the emergences of this trend, TITAN has clearly segmented their consumer base targeting niche markets with different products. While Titan introduced `Dash targeted at children, it introduced `Raga exclusively for Ladies Party Wear. Another niche segment caters to the technology savvy consumers, with brands such as `Edge, `Technology, `PSI 2000 to cater to this segment.

There is also the fashion segment, where TITAN has a collection for men and women. For instance, Titan has `Fast track, and Raga, Regalia and Royale in the stylisth segment. International styling, such as the `WORLD WATCH which was launched a few months ago is also to keep up with trends in the market. While most foreign brands have their products targeted at one niche segment, either fashion of function or style, TITAN has different products targeted at different segments.

The stress is one constant innovation in style, design and products that would keep the interest alive in the various segments. This is a challenge every player is facing to keep up its market share. It again battles to the survival of the best or the Rule of three where the top three players in the market would survive. Titan figures not only in one among them but the leader among them. At TITAN innovation and leadership are part and parcel of the company and this trend is reflected in their products and the synonymous name the The Watch has in the Indian market.

TITANS PRODUCT PYRAMID

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Titans portfolio of products spanning 3 distinct price-bands that can be defined, in general, as Popular, Mid, and Premium. At the bottom, the emphasis is on volumes-not margins. At the top, the emphasis is on profits and image not volumes. Obviously, profits are concentrated at the top of the pyramid, but the base acts as both an entry-barrier and a caretaker of the companys fixed costs. This pyramid guided the strategy of Titan. Titan was first focused only on the premium segment of the watch market. As per the above-mentioned strategy Titan moved in to the mass market for watches. To broaden the mass base, Titan created new segments and increasingly focusing on segments individually. In the past few years Titan has launched at a number of initiatives focused on specific segments.

DIFFERENTIATION
At Titan the products are developed in such a way so as to enhance quality and features to increase buyer value. This is a perfect example of differentiation through technological leadership and product technological change. Titan creates competitive advantage through differentiation. The first concentration is on technological leadership. They decided to manufacture only quartz (analog and digital) and not mechanicals, and they would set up stateof-the-art plant to manufacture watches in a wide variety of designs and prices.

STYLES
Titan was first in India to introduce the `style concept. They projected the watch as a fashion accessory. They clearly identified that their main competitor was not HMT, but the gray market. Style is a very evident factor in Titan watches and is a part and parcel of the company. Titan products are shapers and not adapters. Over the years Titan had built a formidable distribution and support network. Titans customer orientation was reflected through their advertising campaigns. Whereas HMT called themselves timekeepers of the nation, Titan tells the masses if you have the inclination, we have the time. By providing a lifestyle product Titan not only got a premium but also convinced consumers to buy multiple watches.

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MODELS IN PRODUCT LINE


Today Titan offers the best and the biggest range to choose from offering from the scratch to the highest level in watches. With offering such a variety of models. Titan provides variety to the customer and still is able to segment itself creating not a niche but its ability to segment takes it a step further in terms of its product offerings. If offers about 14 different names with about 1000 plus different varieties with a watch for literally everyone.

EXCLUSIVE PRODUCTS
Today TITAN holds the monopoly, pride to say that it owns products both within the country and internationally which no one offer. Its EDGE the slimmest watch in the world positions the companys product where the fashionable, the business class, the innovative would got in for this EDGE since it being unique in the world and the concept of UNIQUENESS is catching in any business whether it being construction or clothing. In the country it offers the Sonata which is the watch every player would dream to have under his portfolio for the guarantee the quality the trust the innovativeness every thing for as low as Rs.495 which is very much acceptable in the Indian market. This watch can be sold to the first time user, the price sensitive user, in the rural markets, as a gift on occasions, a great time piece, simplicity with style and value. These products designed with the view of monopoly go a long way to outshine titan to its competitors.

The various range of products offered by Titan are as follows:FAST TRACK


A collection of watches will contemporary styles that are young and distinctive. Designs that go from the relaxed and informal to the definitely sporty. The womans collection presents the all new international `Frosted look, which is trendy and chic. The Fastrack collection has elements like cool mesh straps and features that include EL back-light and dual time. Also presenting a range of fashion digitals in contemporary wrist hugging cases with oversized displays and

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features that include countdown timers, chronographs, lap timers, hourly chime, alarm and Hilight glow.

EXACTA
A perfect combination of dateless styling and design simplicity, Exacta is the all-steel look in Titan. Everyday watches for those who value fundamental principles of durability, reliability and affordability.

SPECTRA
A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. International in styling the `Spectra collection is designed for those who look beyond the ordinary.

ROYALE
A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps, the `Royale collection has designs that suit everyday wear.

RAGA
Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An existing collection that includes decorative motifs, `kadas, studded bracelets and a first of its kind three-in-one watch. The designs are inspired by traditional Indian as well as contemporary motifs and are expressed in ropes, `kadas and ornamental bracelets. Crafted exclusively for the sophisticated woman, who wears silver jewellery with lan, the Silver Raga makes a perfect accessory that completes a womans wardrobe.
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BANDHAN Watches for him and her. The pair watches of the `Bandhan range are Titans tribute to the everlasting quality of a bond between a man and woman The Bandhan Collection is available in both leather straps and gold bracelets and its presented in uniquely designed packaging.

REGALIA
Magic in gold and unique futuristic material. Finely crafted sleek cases and patterned dials with special appliqu flowing into intricately designed bracelets. A unique combination of an all-gold and bicolor look, the `Regalia range represents the essence of dress-wear.

EDGE
The Titan EDGE is the Slimmest Watch in the Universe; a mere 3.5 millimeter thick, the watch is practically invisible. Delicately crafted with precision, it has an incredibly Slim Movement of 1.15 millimetes. Furthermore, the Titan Edge is Water Resistant to a depth of 30 meters, an attribute rarely ever seen in slim watches. Titans Edge comes with an elemental One-Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal that market it Scratch Resistant.

NEBULA
Nebula, a range of watches crafted from solid gold embellished with precious stones, available with both leather straps and intricately designed bracelets. With Nebula, Titan turns watches into precious jewellery. The finishing touch to this exquisite collection is the sapphire crystal that crowns each of the watches.

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FEATURES THAT MAKE THE TITAN


CURVES AND CONTOURS LEATHER STRAPS WITH OFFBEAT CONSTRUCTIONS AND SHADES ERGONOMIC INTERGRATION FASHION SPORT IN SPIRIT BOLDER AND CLEANER DIALS ROMAN AND ARABICS FOR FASHION STREAK PRINTED HANDS POPULAR FUNCTIONS LIKE DATES, MULTI FUNCTIONS AND CHRONOGRAPHS GUARENTEE/ WARRANTY BECOMING A PART OF THE 50 MILLION TITAN FAMILY LOVE, TRUST AND RESPECT

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A UNIQUE TIME PIECE IN STYLE OR QUALITY

THE MAJOR COMPETITORS TO TITAN

HMT RADO CASIO SEIKO ESPRIT CITIZEN SWATCH CARTIER GIORDANO LONGINESS MAXIMA QUARTZ IMFQ-INDIAN MADE FOREIGN QUARTZ FASHION HOUSES DKNY, GUCCI, ADIDAS, NIKE, BVLGARY

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Price:Price is one more critical component of marketing mix. It is the valuation of the product mentioned by the seller on the product. Price is one elemet of the marketing mix that produces revenue; the other elements produce costs. Price communicates to the market the companys intended value positioning of its product or brand. A well designed and marketed product can command a price premium and reap big profits.

Price mix includes the following variables: 1. Pricing policies, 2. Discounts and other concessions offered for capturing market, 3. Pricing strategy selected and used. Pricing has an important bearing on the competitive position of a product. The marketing manager may use pricing as a tool for achieving the targeted market share or sales volume. Pricing can also be used for capturing market and also for facing market competition effectively. Pricing decisions and policies have direct influence on the sales volume and profits of the firm. Market price of a product also needs periodical review and adjustments. The price charged should be high enough to give adequate profit to the company but low enough to motivate consumers to purchase product. It should also be suitable to face market competition effectively. Price explained with reference to Titan:

Titan consists of watches that cater to various segments and to various categories and so their pricing strategy is also in accordance to their products and the features offered by them cashing in on monopoly, unique features, outstanding performance and the name TITAN.

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Titans primary pricing objective is to kill Competition. Being an Indian manufacture and infusing the advantages of the Indian market with the dynamics of the western market the company has carved itself a place difficult to achieve by foreign players.

The Objective for pricing are mixed with them being

Survival : Exacta, Spectra, Raga Maximum Market Share Sonata, World Watch

Market Skimming- Nebula, The Steel collection Insignia Product Quality - Leadership All watches in their respective segments.

SURVIVAL In case of some of the watches titan prices them according to the features and the value delivered by them. The exacta is a simple steel watch priced at around 600 to 1,100. This unique combination of simplicity and good styling is to keep the brand going with its offering being value for money. MARKET SHARE In India 70% of the sales in watches come from the lower segment and hence by pricing the sonata at 350 onwards, backing it with a TATA guarantee no one can match the value for the price of Rs.350. Titan prices its world watches which are compared equal to an international Player Like Calvin Klein where 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. MARKET SKIMMING In the Indian watch industry there is no one offering pure gold watches, watches in pair, Jewellery watches and this concept though exists with foreign competition has just come to India. Though foreign competition has set in to these concepts. TITAN offers these products with the Indian touch in its designs, the products, the looks. Hence it is able to skim the market with certain products in these ranges.
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PRODUCT QUALITY Quality and leadership are synonymous to Titan. It seek to achieve both through their value for products compared to their prices.

PRICING METHOD

MARK UP PRICING Titan goes in for the mark up pricing strategy. The Titan product carries a maximum retail price on it. Now shops such as the world of titan exclusive showrooms buy directly from the dealer and hence the element of the middleman is not there. A retailer in this category buys the watch for 17-18% lesser than the MRP and hence he is able to get the 17% profit margin on sales. It is up to the discretion of the retailer to offer any discount on the MRP as it would affect what he gets in return.

In the recent past Titan has also used the PERCEIVED VALUE PRICING to its advantage. It is managing to successfully convince the customer of the perceived value of the WORLD WATCH using billboards and hoardings all around the city, increasing buyers image, trust worthiness, innovation, differentiation, value for the product. The hoardings go about to say the international presence of an Indian Watch. Titan has also in the past done so for its steel collection but using Commercial Advertisements.

There is always a positive relationship between high prices, high quality, and a high advertising budget. Titan too demonstrates this feature. People are willing to pay the price for the quality and titan spends 25 crores a year on advertising its products. This is the highest spending done in the watch industry in India. More so ever with high value and lower prices in case of the sonata, the product is the heart throb in the watch industry.

PROMOTIONAL PRICING Price Discounts and Allowances

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Titan once a year comes out with a Price discount sale on the MRP of the watches. Now this is entirely based on the stock carried by the company at the year end. Allowances are more on the company to the retailer where the retailer gets a special allowance if the store picks up more than a certain quantity. Warranties and Service Contracts

Titan promotes sales by adding a free warranty or service contract to its watches and this is backed up by the name TATA which is especially needed to convince and march ahead in the lower segment market.

Product Line Pricing


The differences in the prices of the watches are justified by the features, the style, and the differences which makes up each watch. Titan prices all its watches in such a way that it maximizes the total profit on the total mix.

Captive Product Pricing


There is a general buzz in the market about titan being more expensive than the rest in terms of servicing and the parts used by TITAN. Titan watches, the lower end ones are cheap but the straps and the battery with services is generally expensive.

APPLICATION OF THE PRICING STRATEGY IN PRODUCTS


The main plank of the watch market is in the less-than-Rs.1,000 price category. Effectively, about 70 per cent of the sales in the watch industry in India is in this category. None of the foreign brands has a presence in this category. Only cheap Chinese watches are present in this bracket and they compete with the unorganized manufacturers, who are more expensive than them. So, the unorganized sector is getting hit from the bottom by Chinese products and at the top by the organized sector brands, such as Sonata. The various brands of Titan and the price range in which they fall are tabulated which follows.
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Brand Price Range No. of Models (Approx)

Insignia Gents Rs.3750 to Rs.7750 Insignia Ladies Rs.1600 to Rs.7500 PSI2000 Gents Rs.1780 to Rs.7500 PSI2000 Ladies Rs.800 to Rs.4350

Regalia Gents Rs.1820 to Rs.7790 Regalia Ladies Rs.1725 to Rs.7770

Royale Gents Rs.960 to Rs.2810 Royale Ladies Rs.1120 to Rs.2830

Classique Gents Rs.850 to Rs.2450 Classique Ladies Rs.565 to Rs.2930

Spectra Gents Rs.1140 to to Rs.1830 Spectra Ladies Rs.650 to Rs.1410

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Exacta Gents Rs.600 to Rs.1170 Exacta Ladies Rs.595 to Rs.800

Fast Track Gents Rs.550 to Rs.1430 Fast Track Ladies Rs.850 to Rs.1050

Technology Rs.2350 to Rs.8170

Raga Ladies Rs.1420 to Rs.4000

Nebula Gents Rs.8950 to Rs.13500 Nebula Ladies Rs.5950 to Rs.6950

Bandhan Rs.1675 to Rs.8085

Sonata Gents Rs.295 to Rs.1195 Sonata Ladies Rs.350 to Rs.1100 Sonata Pair Rs.1495 to Rs.2000

Dash Boys Rs.295 to Rs.395 Dash Girls Rs.250 to Rs.350

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PROMOTION
Promotion is one of the four elements of marketing mix (product, price, promotion, place). It is the communication link between sellers and buyers for the purpose of influencing, informing, or persuading a potential buyer's purchasing decision Fundamentally, however there are three basic objectives of promotion. These are: 1. To present information to consumers as well as others 2. To increase demand 3. To differentiate a product. Titan believes in making its ads clean, well made, touch an emotional chord, convey the message, have catchy jungles and make an impact. The use of celebrities, superstars is not there. These only ad to the expense packet of the company and companies only catering to the niche market of the upper cream like a Rolex or an Omega afford these. Majority of the people are rational buyers and very rarely get carried away by celebrity endorsements. They also know that they will eventually end up paying for such celebrity endorsement. Rich kids, Young DINKS (Double income, no kids) and Yuppies may fall for such ads but not ordinary people. At the end of the day, if your product or service is not good enough or does not offer value for money, your advertising will get no where.

Promotion On Occasions

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Titan is one of the companies which formally believes in the policy of promotion the product based on the occasions of the calendar. With every occasion having a special memory attached to it exploits this memory aspect and pushes its products. Not only the promotion of the existing products is done on these occasions but new products which would sell like hot cakes are launched for the sole reason it creates an impact in the minds of customers and appeals to the occasion thus making it even more special. In this context TITAN launched the THE BIG HEART OFFER FROM TITAN FASTRACK where fashionable jewellery was a gift on purchase of any Fastrack watch. This jewellery set of a pendant and earrings is contemporary and unique in form and material, with steel and acrylic being used together for stunning effect. This was launched for Valentines day where the name scheme, The watch being advertised for (Fast track) as it pertains to the youth, jewellery (for the youth), valentines day (more so for the youth) and adding to the excitement is A LIMITED EDITION FASTRACK VALENTINE'S COLLECTION that is being made available in four designs. Only 300 watches of each design will be on sale across cities during this fortnight. These watches are designed is steel with leather straps in the colors of the season black, red and silver. The dials are in matched colors with heart patterns, making the collection a true blend of fashion and romance. "Young couples are looking for new ways to discover their relationships and this set of special watches and matching jewellery from Fastrack, gives them just the reason to do so. The `promotion was in Mumbai, Delhi, Pune and Bangalore from Feb 114

Banners-Hoardings
It is not difficult to see TITAN hoardings displaying its prominence in the streets of an urban city. The prime locations, next to dealer outlets hoardings with attractive, clear, simple but catchy slogans are put up and a particular product or some times the name TITAN in general. One of the hoarding promotes the World Watch where the hoarding states MADE IN INDIA CHERISHED IN GREECE. Like this many catchy ones are there. Older ones state THE PERFECT VALENTINE GIFT was released a month before valentines day.

Sponsorship
Titan is involved in sponsoring major events, cultural and other fests in colleges, schools and nation wide happenings. This way of promotion gives it the extra mileage to increase its data
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base by directly tapping the customers to convince them about a TITAN.

Seasonality
One major way of promoting the titan product is through seasons. To understand a little more about it for Example. During a wedding season or for Diwali Titan promotes Nebula, Bandhan because there is demand for the product. Gold watches and pairs are the likes of a wedding occasion., similarly the fast track brand is promoted in the months of June August when schools and colleges re open and since these watches cater to the segments of youth, these watches get the extra mileage on sales if promoted during these seasons.

Gifting Concept
Titan initially started of as a brand which was associated with gifting and relations. Today also titan is associated with the image it stated off with. The fight concept sells well for people have come to associate titan with love, care and makes emotions run high. More so ever the product is that of quality and style. The titan Nebula and Bandhan would fall more aptly in this category and the Dash is promoted with the gifting concept in mind because a parent gifts the child a watch.

Strategic Flexibility
Keeping your options open means building flexibility in the strategy. For instance in 1998 99 Titan announced its intention to become a global player, to address the multiple segments emerging in the Indian market through multiple brands and sub brands, and to offer terrific value for money through differentiated design, retailing and brand image. The company addressed multiple segments through brands such as sonata, fast track, Raga etc. it realized that as the market became more competitive multiple brands would be the best way to address the needs of the market. When you have multiple brands you are more flexible and less vulnerable. Titan has gone in for multiple brands.

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Promotion Through Contests


TITAN ties up with various magazines, televisions, outlets where TITAN gifts could be own for winning the contest. One of them is THE WEEK magazine where one could win TITAN watches and also many magazines offer many watches depending upon their needs. TITAN also offers bulk discounts to players who pick up in lots offering it as a gift to schemes and to companies for their employees.

Promotion Through Television Programs


TITAN sponsors a program or a serial or ties u with for example a show like MTV TIMECHECK done by ESPRIT, time wear. Such promotion done as an exclusive sponsor and targeted at a particular segment. For example, if a youth program then fast Track would be focused on and on CNBC or CNN business programs the Steel or the World watch.

Revamping the titan Brand Image


Titan after all its marketing efforts in the market is going back to step one where it started when its first marketing activity concentrated on titan name rather than the different watches it offered. Then came the segmentation of the brand where every different product was advertised individually that is every product got its own identity. Titan felt that the segmentations was high and the brands have got their own name rather than titan being associated with them, so titan has gone back to revamp the brand image and market this product on the name titan. For this all its ads from September 2003 onwards would focus on titan as a name, this includes the showrooms are being re modeled to suit the strategy. The focus now is on titan rather than fast track and regalia the logo would promote TITAN. The policy is in accordance with the advertisement released on television which simply and subtly promotes TITAN.

PLACE
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It refers to how an organisation will distribute the product or service they are offering to the end user. The organisation must distribute the product to the user at the right place at the right time. Efficient and effective distribution is important if the organisation is to meet its overall marketing objectives. If an organisation underestimates demand and customers cannot purchase products because of it, profitability will be affected.

IMPORTANCE OF CHANNELS
PUSH STRATEGY-It uses the manufacturers sales force ,trade promotions,moneyor other means to induce intermediaries to carry,promote and sell the product to the end users.push strategy is appropriate where there is low brand loyalty in a category,brand choice is made in the store,the product is an impulse item and product benefits are well understood. PULL STRATEGY-the manufacturer uses advertising,promotion and other forms of communication to persuade consumers to demand the product from intermediaries,thus inducing the intermediaries to order it.pull strategy is appropriate when there is high brand loyalty and high involvement in the category,when consumers are able to perceive differences between brands,and when they choose the brand before they go to the store.

The general distribution process used by any company is as follows:

Manufacturer

Wholesaler

Retailer
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Consumer

The distribution strategy used by Titan is as follows:

Manufacturer

Directly to the showroom

CONSUMER

Place is generally referred to as a distribution channel where the organization uses its distribution channel to make its product available for its consumers. Place can be referred to as a place where a product is available; it can be a physical store or a virtual store. Keeping in mind the young trendy and fashionable consumers, Titan distributes its product and has set up WORLD OF TITAN in different region. In WORLD OF TITAN, Titan offers various brands under one roof offering variety of watches to its consumers at affordable prices.

SEGMENTATION, TARGET AND POSITIONING:


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Segmentation Segmenting is the process of dividing the market into segments based on customer characteristics and needs. The main activity segmenting consists of four sub activities. These are: 1. determining who the actual and potential customers are 2. identifying segments 3. analyzing the intensity of competitors in the market 4. selecting the attractive customer segments.

LEVELS OF MARKET SEGMENTATION


SEGMENT MARKETINGA market consists of a group of customers who share a similar set of needs and wants.rather than creating the segments,the marketers task is to identify them and decide which one to target.

NICHE MARKETINGA niche is more narrowly defined customer group seeking a distinctive mix of benefits.marketers usually identify niches by dividing a segment into subsegments.

LOCAL MARKETINGTarget marketing is leading to marketing programs tailored to the needs and wants of local customer groups in trading areas, neighbourhoods,even individual stores.

INDIVIDUAL MARKETING-

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The ultimate level of segmentation leads to segments of one, customized marketing or, one to one marketing. today customers are taking more individual initiative in determining what and how to buy.

BASES FOR SEGMENTING CONSUMER MARKETS

GEOGRAPHIC SEGMENTATIONIt consist of region, city and rural and semi urban areas.

DEMOGRAPHIC SEGMENTATIONIt consist of age, family size, gender, Income, occupation and education.

PSYCHOGRAPHIC SEGMENTATIONIt consist of socioeconomic classification, lifestyle and personality.

BEHAVIOURAL SEGMENTATIONIt consist of occasions, benefits, user status, usage rate, loyalty status, readiness stage and attitude towards product.

BASES FOR SEGMENTING BUSINESS MARKETS DEMOGRAPHIC SEGMENTATIONIt consist of industry.company and location.
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OPERATING VARIABLESIt consist of technology.user or nonuser status and customer capabilities.

PURCHASING APPROACHESIt consist of purchasing,power structure,nature of exsisting relationship,general purchasing policies and purchasing criteria.

SITUATIONAL FACTORSIt consist of urgency,specific application and size or order.

SEGMENTATION STRATEGY OF TITAN

After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. The segments were arrived at using benefit and income level as the bases.

High Income Group: The first consisted of the high income/ elite consumers who were buying a watch as a fashion accessory not as a mere instrument showing time. They were also willing to buy a watch on impulse. The price tag did not matter to this segment. o Titan offered Aurum and Royale in the gold/ jewellery watch range. o They were stylish dress watches in all gold and precious metals. o The price ranges from Rs.20,000 Rs. 1 lakh. Middle Income Group: This segment consisted of consumers who preferred some fashion in their watches but for them price did matter. o While they had the capacity to pay the price required for a good watch, they would not purchase a watch without comparing various offers in the market.
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o Titan offered the Exacta range in stainless steel, aimed at withstanding the rigours of daily life. o Titan also offered the RAGA range for women in this segment. There were 100 different models in the range. o The price ranges from Rs.500-700. Lower Income Group: o This segment consisted of the lower-income consumers who saw a watch mainly as a time-keeping device and bought mainly on the basis of price. o Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, the SONATA range. o It was offered in 200 different models. o Titan also offered the Dash! range for children.

The price ranges was Rs.350-500.

TARGETING: Target market involves breaking the market into segment and then concentrating your market efforts on one or few key segmentation. A company can adopt the following strategies for target market selection: Single segment Specialisation:

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SELECTIVE TARGETING:

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PRODUCT SPECIALIZATION

MARKET SPECIALIZATION

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FULL MARKET COVERAGE

POSITIONING In the recent years the importance of an brand image has been given considerable importance by the consumers. A brand name should be clear, lucid, distinct and should be easy to remember from the competitors. It should become consumers top of the mind brand. Brand loyalty is something which has made the branding more popular. It is rightly said Brand loyalty is not dead, its just more like loyalty to girlfriend/boyfriend than to your wife/husband.

TITANS PERSPECTIVE 1. Titan initially pioneered the concept of gifting watches. The ads captured the essence of gifting along with trendy music, easily caught the imagination of market. Customers who were fed with the ugly time machines welcomed
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Titan with open arms. Titan had a huge success and a dream run as the leading watch brand in India for many years. 2. Titan created a unique brand image for itself as an fashion accessory rather than just a time keeping machine on your wrist. 3. Titan brought Mr. Perfectionist of Bollywood; Amir Khan as its endorser which became a huge plus point for them. 4. The ads were trendy and neatly executed with trendy music and unique concept gave Titan an edge over others. 5. Titan was also pushing another strategy, watches were perceived as one time buy and very few peopled had multiple watches in their collection.So, Titan brought in the concept of Matching Watches to Clothes in recent commercials. Since then men are becoming more customers of fashion accessories, this strategy proved an influential factor for Titan. This concept proved as a much needed freshnes in the brand.

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CONCLUSION: Titan is the worlds 6th largest manufacturer of watches. It has achieved the position with help of its wonderful marketing strategies. Through its meticulous segmentation it has been able to reach every possible segment of custoemers. The product range varies from Rs. 350 to Rs.1,00,000. Titan manufactures around 7 million watches per annum and has a customer base of 65 million customers. Titan has 60% of domestic market share in the organized watch market. Its exclusive retail outlet World of Titan is amongst the largest in the category. Titan watches are sold over 9000 outlets in over 2300 cities and internationally over 30 countries including Spain, USA, Greece and countries in the Middle East and Asia Pacific. Its after sales service is one of the benchmarked operation with a network of over 616 service centres and has one of the worlds fastest turnaround times. In the Journey from being a watch manufacturing unit to the watch leader in the industry the journey to the 50 million watch mark has just shown the METAL of which Titan is made of. In this MEMORABLE TRANSFORMATION Titan has at every step taken FULL `N FULL
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care of each person that entered its 65 MILLION STRONG FAMILY which has made it possible to be what it is today.

TITAN COULD BE CALLED BY VARIOUS NAMES. The Company that brought Quartz watches in India. Everyones Brand yet different products to different people The company that made watches a fashion statement than a time piece And many more

Titan has proved its true identity taking the Indian name to foreign soil and shining on soil not its own, the respect the name commands in the watch industry has been achieved in a very short time.

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BIBLIOGRAPHY

WEB SITES www.titanwold.com www.tata.com/titan

BOOKS REFERED 4PS OF MARKETING MARKETING MANAGEMENT PHILIP KOTLER

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