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BRAND

PLAN
TITAN WATCHES
1.BRAND VISION:

To become the most prestigious and visible retail brand in the country.

2.BRAND MISSION:

To revolutionize the Indian watch industry by bringing in world class benchmarks in product design, quality and
retailing into India.

3.MARKET ANALYSIS:

An Overview Of The Watch Market In India –

Wrist Watches form an integral part of the personality of individuals in the present era. Earlier seen as a luxury
item, they are now witnessing a fundamental change in perception, and are now gaining respect as an essential
utility item. For the watch industry, time seems in its favour what with the liberalization of the Indian market
coupled with the rising purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector organisations like Hindustan Machine Tools Ltd.
(HMT) and Allwyn (also famous for its refrigerators once upon a time!), and has now left the pioneers far behind or
nowhere in market by private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign entities
jostling for display space in the smallest of shops selling these products.
Before the establishment of HMT as the dominant player in the Indian markets initially, the country was solely
dependent on imports to meet the internal demand. However, establishment of HMT as the leading player in the
wrist watch segment in the 1960’s, changed the scenario.
In post liberalization India, the market stood to witness intensive competition between foreign and Indian
manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex, Fréderique Constant, Mont Blanc, Swatch, and
many others. Many watch makers have made significant inroads in the industry and others are in the process of
establishing themselves, currently.

Besides this, buyers are extremely choosy about the brand and type of wrist watches they wear. Being extremely
brand conscious, their tastes have evolved over the years and have gone beyond the realms of durability to choose in
terms of aesthetics and elegance. Thus it is a buyers market with multitude of designs that have entered and flooded
the market place.

MARKET SIZE -
The size of the watch market currently is estimated to be around 40 to 45 million pieces annually. The organized
sector alone contributes up to 30 percent of this figure, and the rest of the demand is being met by the unorganised
grey sector. This data is significant indeed in view of the socio economic distribution of the Indian populace. More
than 58 percent of the population is under twenty five and more than 80 percent of the population is below 45 years
of age.
In dollar terms, the estimated annual market size is around USD 195 million, despite the fact that the penetration of
watches is the lowest, compared globally. Looking into this fact and the long standing Indian tradition of comparing
watches with jewellery and other traditional items, many watch companies are interested in setting up base in India.
The average growth in the size of the market is slated to be around 10 -15 percent per year.

WATCH INDUSTRY SEGMENTATION -


A casual study of the watch market reveals that it is segmented on basis of multiple proportions such as price,
benefits and types of watches. The price of the watches is a major motive in the minds of the customer. Accordingly,
three segments can be identified here, namely low priced, medium priced, and high priced watches.
The lower priced segment consists of watches priced less than INR 500; the medium price range consists of watches
in the INR 500-1500 range and the high priced watches come in the INR 1500 upwards range. There are other
higher categories as well such as the premium and luxury range, but they appeal to only a small category of the
watch market in India.
According to a recent study, more than 90 percent of the watches were from the lower price ranges with
international costs being less than 20 euros. Moreover, around 20 to 25 watches are being sold for every 1000
citizens. Thus there is enormous potential for growth of the industry in this untapped segment. Some customers look
out for features like fashion appeal, technology, sophistication and status. Others go for durability, economy and
precision.

Many customers prefer mechanical and automatic watches, while others prefer quartz watches. Newer segments are
also on rise such as ladies watches, children’s watches and gent’s watches. Customers usually base their preferences
and buying decisions on a variety of factors like price, durability, utility, aesthetic appeal and brand name. A
combination of all these points ultimately forms the customer’s buying decision that translates into the purchase of a
watch.

MARKET TRENDS -
The retail sector has just begun to boom in India. Since the early 1990’s, Indian customers are relying more on
departmental stores and shopping malls to purchase their wants and needs. This has come as a boon for watch
manufacturers and dealers, who are now looking forward to utilise these new outlets to reach out to the Indian
masses. Watch manufacturers are looking at a suitable mix to market their products ranging from exclusive retail
outlets to display sections in malls and large departmental stores.

OUTLOOK -
In the end, though India is still considered to be a difficult market to penetrate, due to reasons like price
sensitiveness and its largely unorganised sector. However, with the right planning and the right partners and
experienced collaborators, it is expected that both international and domestic watch manufacturers will do well in
the Indian markets.

4. BRANDSCAPE:

Titan watch division was started in 1987.


At launch it was the third watch company in India after HMT and Allwyn

Today, in early 21st century India, it is taken for granted that a watch is a fashion accessory. Titan dominates the
market, with a 60% share of the organised sector market (the total market, including the unorganised sector, is
estimated at around 42 million units). Titan's quality record is impressive, its sales and service network is wide and
deep, and its network of exclusive showrooms, The World of Titan, is one of the most prestigious and visible retail
brands in the country, offering world-class levels of shopping comfort and customer service.
What is truly amazing about Titan is the sheer scale of its offering and the consequent choice it offers to multiple
segments across taste, age and economic background. Titan saw this approach as the foundation of its leadership
strategy in the early days. Even the early range had distinct offerings for different requirements: formal watches
(gold plated cases with fine leather straps) for the executive, dress watches (gold plated cases with ornamental gold
plated bracelets) for those with a preference for jewellery, rugged watches (all steel watches with a skew to
functionality) for those whose usage demanded a certain durability.
Titan has built on this principle over the last 15 years, almost year after year:
In 1989, it was Aqura, the trendy range for the youth, colourful, smart and affordable plastic watches for the youth:
The other side of Titan for the other side of you.
In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for the sophisticated India woman
who appreciated such things.
In 1993, it was Insignia, very distinctive and international-looking top-end watches, for those seeking exclusivity
and status.
In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious sports features (200-m mater
resistance, high precision chronographs) for those with the penchant for adventure.
In 1996, it was Dash, the cute and colourful range for kids.
In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.
In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-heart.
In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches for those affluent people to
whom gold is a precious acquisition.
In 2001, it was Steel, the smart and contemporary collection for the young 21st century executive.
And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each of them unique and fascinating.
The underpinning of this entire market development and segmentation is Innovation. Titan has kept innovation core
to its strategy, realising fully that the only way to sustain the fashion accessory perception is by continuously coming
out with collections that make the current ones somewhat dated, thereby creating a certain discomfort in the
consumers' mind, which leads to another purchase. This impact has shown up in every one of the collections spoken
of earlier. They were fresh and distinctive, unlike what consumers had seen before, and thus created curiosity, walk-
ins and sales.
A stellar example of Titan's Innovation is Edge, the slimmest watch in the universe. Titan's R & D talent created a
wafer-thin quartz movement, a mere 1.15mm thin, over 4 years of development work. The immensely talented
Design team collaborated with the Manufacturing group to create Edge, a 3.5-mm watch, a gem of elegance, with
water-resistance to boot! Edge was launched in India early 2002 to tremendous market acclaim and sales success. It
is a design and technological marvel, which justly received the Best Design Award in the Lifestyle Product Category
in the first annual design contest organised by Business World and NID.
Titan also chose to invest heavily into showcasing all this innovation to the consumer through advertising. From Day
1, the 'catalogue" advertising of Titan became its trademark as it was used regularly and effectively to merchandise
new models. The catalogue ads also helped customers to shop off the page and almost decide which model they
wanted to pick. Retailers also became used to seeing customers walking into shops with newspaper "cuttings",
asking for the models shown there. This approach continues to this day, with mostly the same effect.
In the early nineties, Titan chose to develop the "Gifting" market. Watches had always been favourite things to gift,
and Titan had benefited from that. Titan was convinced that there lay a greater potential in that segment. A set of 3
films were developed in 1991 around 3 relationships, where the gifting of a Titan culminated in a moving personal
moment and a strengthening of the bond between the protagonists. These films became a big hit and created a genre
of advertising films which lasted a good 8 years. During those years, a series of films involving a variety of
characters (father, daughter, teacher, boyfriend, ex-boyfriend, thief!) and with local flavour (for Onam in Kerala,
Puja in Bengal) were created and released. These not only helped build a good-sized gift segment for Titan, but also
became Titan's Theme Campaign, building strong emotional values for the brand. One of the films in the series,
where a man and his younger daughter conspire to give his older daughter a Titan as a surprise gift at her wedding,
released around 1994, went on to become the most popular Titan film ever, even voted by the viewers of Zee
Television as the second most liked TV commercial on the channel.
The most enduring part of the Titan advertising has been the music track. Chosen by Xerxes Desai and the creative
head of O & M in 1987 for its class and western vibes, the segment from Mozart's 25th Symphony has arguably
become Indian Advertising's most memorable track (incidentally, and perhaps not coincidentally, this was the most
liked advertising track in the same Zee TV survey). Starting in 1987 in its pure classical versions, with a single
violin playing the melody, this piece has been rendered in countless innovative versions over the years: Indian
Classical, Indian Folk, Operatic, Rock, Funk,.And has become such a powerful audio mnemonic for the brand.
Another successful customer-facing aspect about Titan has been its stores. Organised retailing did not exist in the
late eighties. The concept of exclusive brand stores was almost non-existent. In a pioneering effort that dramatically
altered industry standards, the World of Titan was born. Located in the newer parts of a city, with a good frontage
and layout, the showroom immediately stood out on the street and attracted walk-ins. Once inside, you were totally
impressed with the presentation. You walked along the wall, where recessed "mood windows" showcased specific
collections in the appropriate context with the help of visuals, decorative props and word (the place looked almost
like an art gallery). You could get a better idea about that collection through such a contextual presentation and could
make up your mind which collection was right for your requirement. Then you would walk along to the selling area,
where the entire range was displayed in style. Smart and helpful salespeople waited on you there and helped you
choose the best piece by giving you information and suggestions. You walked away overwhelmed.
This experience now has over 255 branches and has penetrated the width and breadth of India. Helping the brand
increase sales, increase price premium, sell the more expensive watches, improve image, keep competition at bay
and keep the brand name salient on the high streets of the country. Refurbished with a contemporary look in 2001,
this chain has become even more integral to the brand's destiny today.
Doing all this in style has earned Titan enormous goodwill and respect. Titan was voted the Most Admired Brand
(across categories) in India by consumers, in the first such study by Brand Equity done in 2001. Titan was voted the
Most Admired Consumer Durables Marketer by industry professionals, 8 out of 9 times (the ninth time it was No 2),
in A & M's annual survey done between 1992 and 1999. Titan was voted the Most Respected Consumer Durables
Company in a Business World Survey in 2003. Consumers and professionals alike have resonated equally to Titan's
successful efforts in bringing international standards to India. And in 2008, it emerges as the 24th Most Admired
Brand in the ET Most Admired Brands survey done annually, it was also the most admired Consumer Durable
brand.
Titan has also done the seemingly impossible reverse thing: taking Indian quality to international markets. Since
starting export operations in a small scale to the Middle East in the early nineties to exploit the resident NRI
population, Titan has come a long way. Moving into the European market in the mid-nineties and Asia Pacific in the
late nineties, Titan today sells in the UK, Spain, Portugal, Greece, Singapore, Dubai, Malaysia, Oman, Philippines
and many more countries. The customers are no longer only NRIs. They are the Thais, the Greeks, the Arabs, the
Filipinos - through a combination of Contemporary Style, Great Quality and Great Prices, Titan has put together an
irresistible proposition for the people of these countries. With over 100 million satisfied consumers and a track
record of breaking the rules, Team Titan faces the 21st Century with a mix of passion, excitement and energy.
.

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

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 time-keeping device and
bought mainly on the basis of price

Products for different segments


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 woman’s 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 features that include countdown timers, chronographs, lap timers, hourly chime, alarm and Hi-light
glow.

Price: Rs.550-1,430

Category Aimed at : Youth

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.

Price: Rs.595-1,140

Category Aimed at : Lower Middle Class (Office Wear)

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.

Price: Rs.650-1830

Category Aimed at : Common Class

ROYALE

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

Price : Rs.960-2,830

Category Aimed at : Upper Middle Class

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 élan, the Silver Raga makes a perfect accessory that completes a woman’s wardrobe.

Price: Rs.1,420-4,000

Category Aimed at : Upper Class

BANDHAN

Watches for him and her. The pair watches of the `Bandhan’ range are Titan’s 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.

Price: Rs.1,675-8,085.

Category Aimed at : Couples


REGALIA

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

Price: Rs.1725-7770

Category Aimed at : Upper Middle Class – Upper Class

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. Titan’s Edge
comes with an elemental One-Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal that
market it Scratch Resistant.

Price: Rs. 4,500-5,200

Category Aimed at : Business Class

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.

Price: 10,000-45,000

Category Aimed at : Upper Class


MARKETING STRATEGY:

A watch is now looked at as a personal accessory, an extension of a person’s lifestyle. The design of the dial and the
strap influence a buyer’s 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.

TITAN’S PRODUCT PYRAMID

Titan’s portofolio 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 company’s 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 state-of-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. Titan’s 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.

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 company’s 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.

CORE COMPETENCY
The TITAN core competency is on many fronts with Quality being the top runner in the list. This is the area where a
Titan beats players hollow. This is for the lower segment watches like HMT and Maxima. People when they buy a
Titan they know it’s a piece of quality and backed up by the Tata’s and the company’s strong presence in India rather
now the world the watch is one which creates absolutely no doubt at all for its quality.

In the Higher priced segments Titan is famous for pioneering innovations with innovations being in the field of
Technology, Style, Uniqueness, and having a market for every one to offer from steel to gold to diamonds. The titan
Edge a unique creation in the world only owned by Titan, The Bandhan “The Pair” the concept first started by Titan
in Indian, The Nebula “Solid Gold Watches” and a list of many more.

PRICING OBJECTIVES
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.

Titan’s 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.

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.
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.

LOWER SEGMENT

The SONATA Brand which proudly emphasizes it to be a TATA product is the watch for the common man and for
the lower class of the society. Pricing itself between Rs.300 – Rs.900 is Titan’s fastest selling watch. This watch was
launched to make titan everybody’s company from the image of it being a Richman’s company. Watches were
offered for as low as Rs.300 with a guarantee of 1 year and the styles were very appealing for the price. Titan in this
case has followed the Penetration policy. Maxima Quartz is a competitor with similar offerings at Rs.350. The lower
end market being price sensitive, such pricing used to drive away competition, making people buy the product to
make one trust what a Titan is all about was promptly why this low price was offered. There are many in the stable
such as the Exacta, Spectra and Fast Track which is priced at what one would pay for a simple but impressive watch.
These watches deliver value for money with Titan’s name and the innovation done by the company to deliver better
models at the same price.

THE 1000 PLUS SEGMENT

The TITAN market share is actually growing because of the increased share that has been cornered in the Rs.1,000 –
2,000 range, which is the main strength for Titan plus a growing contribution from people upgrading to Rs.1,500
range.

In the last 2 years TITAN has been introducing lot of products in this range and have been growing in this segment.
The Indian watch market itself is expanding in the price bracket of greater-than-Rs.2,500. This has been happening
for the last couple of years. The greater-than-Rs.2,500 price bracket is the highest growth category, though it might
be a small contributor to the total watch market. This segment is growing because of the interest that has been
created by the international brands. Titan was quick to launch the steel collection, the world watch and its bandhan,
insignia comes in these ranges.

Titan used its technological prowess as its unique selling point. Priced in the Rs..4,500-Rs.5000 range, Titan targeted
the brand at the techno-savy consumer looking for a prestigious watch, who would otherwise go in for a foreign
brand.
`The WORLD WATCH TITAN’S’ latest offering to the Indian market is a watch which is made in India but which
shows off a truly international look with styling rare to the Indian market. This is a product which none of the Indian
watch makers can offer as of today but meets with competition from foreign players like Swatch and Esprit. The
watches taken out are priced between Rs.2700 – Rs.5500. This range of pricing can be associated with Skim the
cream pricing used by titan. These watches represented true international quality for an Indian price. The same
watch by Calvin Klein would cost the Indian customer about 4 times a titan watch and hence he would prefer the
titan watch for the same value for lesser price. There has been societal changes and a growing demand for these
price watches with the culture of the west coming in and the smart move to get these watches to India. The Indian
consumer is still a price sensitive player even though it be a high value product.

The NEBULA is Titan’s price catch and is also watch selling in top of the line. These solid gold watches gracefully
and elegantly shows off richness of the gold and the design makes it stand out from a regular gold watches.
Preferred on occasions of Diwali and marriages it is priced between 10000 to 40000. Titan is able to do so for the
reason it is a pure gold watch and the same time no one else in the market can offer these watches. A pure gold
watch for a festival or marriage would be 90% of the times bought by titan.

Thus whatever may be the price titan carefully chooses it to see that its product is able to survive, rise and become
the product leader and at times after skimming the market it attains price leadership with cutting prices slightly or
waiting for competition to come in and promote the market. One final statement that can be made is the objectives
and the price go hand in hand as it should always go.

Titan has tried to achieve a balance of cost focus and differentiation focus. By this we mean that in the lower - end
(Popular segment) of the market, it seeks to achieve a cost advantage by exploiting the differences in cost behavior.
In the mid-and higher–end (Mid Premium segment) of the market, it seeks differentiation by providing better
designs.

PROMOTIONS:

Price Discounts and Allowances


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.

For the past few months, the one-point agenda of the Tata group has been to bring about synergy among its
individual companies, and to promote Tata as a single, unified, central brand. “The Tata’s have realized that many of
their companies are addressing the same target clientele and share a common customer base. So it makes sound
business sense to synergies the marketing efforts for these companies.

The main reason behind Tata doing this was the results of a survey which revealed that: “the Tata brand is like
sameone who is established, but not modern, large but not focused, profitable but not in top gear, a warm person but
not efficient, Tata group is so large and fragmented that the central brand gets lost in the vastness of the empire. As a
result, the top-of-the-mind recall of the Tata brand-pegged at Rs.10,000 crore – is not so strong amongst its various
products, be it Taj hotels, Titan watches or Westside garments.

Tata has come to realize that their biggest asset is their name TATA and not their factories and hence like the value of
the assets the value of a brand can also come down and so is the name coming down, now the Tata Brand Equity and
Business Promotion Agreement states that – advertisements and commercials by any Tata company must carry the
TATA mark.

The Tata’s may be a 102-year-old company, but they want to be seen as a young, contemporary, new, entity”,.
Besides evolving a central brand for all companies, the Tata group has also redefined its objectives and laid down
three key themes that would guide the philosophy of the “new Tatas” – global, futuristic and modern. The target
audience? Generation next.

The Tata Open

The battle ground for this new strategy of synergy started with the Tata Open (India’s biggest tennis tournament)
held every year in December – January. The tata’s have paid Rs.10 crore for the three-year contract. For the Tatas
themselves, it meant more than just sponsorship – it signaled the beginning of a new era in the Tata regime.
One of the main reasons for the sponsor of this event is “Global event like these provide a great opportunity to
corporates to satisfy their marketing objectives and cross-promote their brands”,

Creative Advertising

Titan introduced a contest on cartoonnetworkindia.com which invites children to use their creativity and imagination
to design a watch. The prize –winning design was launched as a new watch in the Summer 2002 collection and the
winner received the first watch of this collection. The Top 5 won a Dash! Watch each and all participants were
awarded certificates.

Type Of Advertising

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

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 1–14.

Musical Advertisements – Subtle Advertisements


With changes coming up in the way one advertises Titan has changed too from the trend of constantly bombarding
the consumer with the name of advertisements to subtle advertising. Through this titan is reinforcing just the name
Titan and not any one of its products. The tune used by titan is Wolfgang Amadeus Mozart's 24th symphony as its
signature tune. In the recent trend of advertising Titan uses only music to get its message across, with the company
name making only a brief appearance.

Segmentation
Titan started its activity of marketing under the name TITAN as a brand not promoting on basis of the models it had.
Gradually when markets became more demanding it felt that the brand needed to be segmented. This was in the
years of 96 and onwards titan segmented because it felt the need that people know about different brands and the
target audience was easy to identify. This was because titan was just entering the market and needed to meet specific
people for their needs. For eg, it went on with the regalia, sonata brand which met different needs of different sets of
people in the market. Thus titan got known among every one in the market cause they knew what was in store for
them from the titan's stable rather than just knowing that titan manufactures watches.

50 Million Concept
Titan achieved the 50 million mark and hence it had a great slogan to blow the trumpet loud. The 50 million concept
signifies the concept that 50 million happy faces who not only own but a sense of love, care and prestige, associated
with what the titan has given them and will be giving them. This was aimed at all the categories with the smiling
faces of the common man. Seeing this one gets the message of 50 million watches, the landmark titan has achieved,
which means the name has metal in it and is something which can be trusted at the same time the emotions portrayed
in the ad make emotions run high in the blood and one wants to be associated with the brand rather than buying
some other watch.

Strategic Implementations
Implementation is an integral part of strategy. Strategy is not just a set of ideas removed from reality. It becomes
visible only when you implement it. When Titan entered Indian jewellery market it signaled an opportunity for an
organized sector. The customer was moving towards branded goods in other segments. The concept of brands was
not familiar with the Indian customer. Titan did the process of creating brands in the minds of customer. A consumer
goes to Tanishq because she believes the brand stands for purity and good design. This insight, along with the
increasing mobility of Indian customers, is helping Tanishq mature into a national jeweller.

Focus
The strategy that Titan adopted in recent years is that of focus. It has segmented the market into different need
groups and tailored its strategy to the exclusion of others. By optimizing its strategy for the target segments, it seeks
to achieve a competitive advantage in its target segments. Market segmentation is concerned with identifying
differences in the buyer behaviour, allowing a firm to match its capabilities with distinctive products and related
marketing programs. Market segmentation tends to focus on the marketing activities in the value chain in which
Titan commands a very formidable position. This also allows Titan to find out how it should serve each segment.

Strategic implementation
Companies must have robust processes to develop strategies irrespective of the personality of the CEO. `THE
WORLD OF TITAN’ our exclusive showrooms for watches are our assets. As retail formats change the role of the
showrooms may also change. Initiatives need to be prioritized. Some of the showrooms have been done up last year.
However we must start today. Pragmatism has also set in perhaps because of the downturn. The depth to Equity ratio
in titan is high where Titan faces a financial risk and hence their current initiatives involve any thing which do not
require much financing.

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 valentine’s day.

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

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.

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.

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.
DISTRIBUTION NETWORK:

Titan firmly believes in providing total customer convenience in shopping. This fact is justified by the location of
their outlets and the recent move by the company to go in for a major renovation of all the WORLD OF TITAN
show rooms updating it to modern selling concepts, saving space, making it more attractive for the customer, easy
maintenance, a show room which stands out from the rest. This has been done to the highest standards taking care of
even of the minute details.

Titan’s retail operations are a mix of company-owned and franchisee outlets, with the idea being to ensure a
dominant presence in all market areas through different kinds of stores, and to assure the availability of every Titan
product. Titan has concentrated on customer perspective, and have engineered the entire chain to suit different
customers.

Titan concentrates more on the customer theme. Earlier there was no attempt in the retailing sector to entice
customer to buy a watch, but Titan has tried to bring the brand to the customer in an appropriate setting. The
company does this through its `World of Titan’ show rooms.

The franchisee is a critical cog in Titan’s retail matrix. The company organizes various programmes for franchisees,
their managers and customer relationships officers. These include training workshops and seminars on market
trends, visual merchandising, store operations and maintenance, and customer service initiative. However, the real
challenge in retailing is managing the franchisee network through processes and systems that ensure a superior
brand experience for every customer. Franchisee relationship management is important because of increasing
competition, not only from the watch business but also from other business in the retail industry.

Besides the franchisees and its own showrooms, Titan sells its product through other outlets as well. Among them
are the Time Zone stores, which stock all the leading brands, and the Value Mart outlets, which operate in Bangalore
and Chennai and sell surplus – to export watches at a discount.

For its many customers Titan has Tata Signet, a 1,36,000 member club that looks to build relationships through
rewards, regular discounts and special offers. Customers can also count on a service-centre network that’s 550-
strong and spread over 30-odd cities and towns across the country. The service centers have been deliberately kept
apart from Titan’s showrooms. The business is different and the customer is in two different moods at the two places
Titan’s blueprint for the future including making watches for international heavyweights such as YSL, Christian
Dior and Gucci. Titan believes there is huge potential at the designer end of the market. The marketing investment is
however lower because “the brand is doing the marketing for you”. Also on the anvil are specialty stores for niche
customers, and an expansion into product categories like sunglasses and leather goods.
However, it is staying ahead of the competition that is the overall priority: “We have to ensure Titan has the best
wristwatch store in any given city or town”. You don’t really have to watch this space for confirmation on that
count.

Titan stores can be broadly classified into 4 stores each having its different features making TITAN attractive to
everyone.

WORLD OF TITAN

To experience the touch of Titan, all you have to do is walk into the stylish World of Titan showroom anywhere in
India. Prepare to be floored by the cool international ambience and the staggering choice of over a 1000 watches and
trendy accessories. And because the customer has to be given special treatment, we deliver your gifts, offer gift
vouchers for your loved ones, and what’s more, we invite you to join the Signet Club, our loyalty programme with
lots of special privileges. Come closer to us at The World of Titan!

The world of Titan is the biggest among all stores of the company and is an exclusive dealer in Titan watches. These
showrooms are generally about 1000-2000 sq.ft and have an extensive range of watches. These showroom are the
major revenue generators of the company and every 5 years the showroom is fully done up updating it to modern
international standards.

TIME ZONE

Titan Industries brings together the country’s leading watch brands under one roof, providing the customer with
variety in brands, looks and price ranges backed by efficient after-sales service. Presenting Time Zones – the chain
of trusted watch shops. Conveniently located, these 1142 Time Zones across 89 towns offer you the complete watch
shopping experience.

VALUE MART

These outlets sell surplus stocks of Titan watches at reduced prices, offering fabulous value for money with the same
warranty as a regular, full-priced watch. These concepts in the recent past have caught up with any product with it
being total value for money. However these shops would not be placed in the main locations so as to interfere with
the working of the normal shops. This is to make the customer go to the shop rather than the shop calling the
customer and hence the locations are not very suitable for shopping.

SONATA STORE

If you’re looking for Sonata watch, visit these exclusive Sonata outlets which also have an Authorised Service
Centre for Sonata & Titan brands. The idea of a Sonata store came upto cater to the large scale demand for the watch
and to open Titan to more customers. More over these shops had full stocks of the watch in demand whereas the
others could afford to maintain only limited stock.