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SUBMITTED TO

:

PROF. A SRIKANT
(MARKETING MANAGEMENT 1)

TITAN
WATCHES
STP ANALYSIS

SUBMITTED BY: GROUP 8

RAJAT MATHUR (07BS3244) RICHA SINGH (07BS3404)
RITU YADAV (07BS3460) RUCHIKA BIHANI
(07BS3543)

SUBHADEEP GHOSH (07BS3584) SANDEEP LALWANI
(07BS3769)

SATYARANJAN SETHI (07BS3835)

Date of Submission: 03-08-2007

INTRODUCTION

The market surveys show that barely 20% of adult Indians own a watch and about 90% of them
own a single watch. So as to sustain and strive in this scenario, a company has to market itself
well. Among those marketing strategy applied by the companies, one is STP (segmentation,
targeting, positioning) ANALYSIS. Here, STP analysis is done for a company which has got
the highest market share in the watch market of India and it is TITAN. As the world’s sixth
largest manufacturer brand of watches, the company's products attract the classes and masses
both.

The 960-crore Titan Industries Ltd (TIL) is a conglomerate between the
Tamil Nadu industrial Development Corporation and the Tata Group of Companies and it was
established in 1984. Titan Industries Ltd has split its mainline watch business into two:-Sonata
and Titan. As their managing director says,”volume growth will come from Sonata and value
growth from Titan”.

CURRENT AFFAIRS:
Growth Rate: Titan is maintaining a growth rate of 30-35%.

Future Plans:

✔ Titan is planning to roll out its own Swiss made premium watches brand `Xylys' by
August 2007, in order to lure the watch market. Xylys would be competing with
premium international brands including Tissot and Rado.
✔ Titan is aiming to be a $1 billion company by 2010(Rs 4,700) crore hence acquiring a
three-fold growth.
The STP Process
SEGMENTATION
Dividing the market by grouping the customer with similar tastes and preferences into one
segment is called is called “segmentation”. Segmentation help marketers understand the needs
of different customers better and serve them with better value propositions.

A market comprises of different consumers possessing innumerable tastes and
preferences. Depending on their marketing approach and the nature of the products marketers
can adopt different level s of segmentation. The levels of market segmentation are:

• Segment Marketing
• Individual Marketing
• Niche Marketing
• Local Marketing
A) SEGMENT MARKETING: Marketers target more than one segment when it is not
economically feasible to design products and services for individual segments. The focus
of segmenting the market will be on providing enhanced service to the customer by
offering customized products that will satisfy the needs and wants of customer in that
particular segment to a large extent. Segmentation is also sometimes identifying,
capturing and retaining potential new markets.

TITAN PERSPECTIVE

Titan has segmented its business into three main categories:

➢ Mass

➢ Mid-premium

➢ luxury

A) INDIVIDUAL MARKETING: Individual Marketing is the extreme level of
segmentation in which marketers focus on individual customers.

TITAN PERSPECTIVE

Titan has not applied this for its marketing.

B) NICHE MARKETING: A niche is more narrowly defined group, typically a small
market whose needs are not well served. Marketers usually identify niches by dividing a
segment into sub segments or defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTIVE
In a study conducted to study the customers of watch market, it is revealed that 42% of
them are youth. So, TITAN tried to target this by:
• introducing FAST TRACK
• price offering from Rs 500(affordable)
• watches with style statements

A) LOCAL MARKETING: Marketing programs being tailored to the needs and wants of
local customer groups. The prominence of local marketing has also become very
dominant.

TITAN PERSPECTIVE
All the products of TITAN are addressed to all the customers as a whole. Localized
products are not available. But some products which are available in UK have some
pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal Nehru,
etc. so that the customers can identify the product with those dignitaries.

CRITERIA FOR SEGMENTING CONSUMER MARKET:

Markets are mostly segmented on the basis of geographic, demographic and psychographic
factors:

Geographic segmentation: It calls for dividing the market into different geographic units such
as nations, states, regions, countries, and cities.

Demographic segmentation: In this the market is divided into groups on the basis of variables
such as age, family, size, life cycle, gender, income, occupation, education, religion, race,
generation, nationality, social class. These variables are the most popular basis for distinguishing
customer groups. The following are some of the demographic variables used to segment the
market:

• Age and life cycle stage: Consumer wants and preferences change with age. These
tastes and preferences are not constant and change with time.

TITAN PERSPECTIVE
Titan markets its products for all following age groups:
a) For the age group 12-20, brands like TIMEX, Sonata, etc.
b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA,
etc.
c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL,
REGALIA, BANDHAN, etc.
• Gender: Gender segmentation has been applied to clothing hairstyling cosmetics,
wristwatches, magazines etc. There are certain brands, which are positioned exclusively
for a specific sex.

TITAN PERSPECTIVE
Titan markets its product across:
➢ Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip)
➢ Gents (flip)
➢ Ladies (raga)
➢ Married couples (bandhan)

Income: Marketers tend to segment product and services on the basis of income groups.
Nowadays, companies have recognized the potential of lower end income groups and
have started targeting them.

TITAN PERSPECTIVE
Titan offers its products with a price range to suit the different income groups such as:
- Below Rs 500
- Between Rs (500-1500)
- Between Rs (1500-3000)
- Between Rs (3000-5000)
- Between Rs (5000-10000)
- Above Rs 10000

• Generation: Generation plays a major role in segmenting markets. Every generation is
deeply influenced by various activities. Such influences deeply impact their product
purchase pattern.

TITAN PERSPECTIVE
Titan has many products to satisfy all the generations. And through constant innovation
Titan developed many products for new generations like FAST TRACK,
TECHNOLOGY, FLIP etc.

• Social Class: Social Class segmentation is influenced by customer choices of
automobiles, interior decoration, clothing preferences etc. The tastes and preferences of
the social class also change according to time.
TITAN PERSPECTIVE

Titan has realized the demand of the society and has marketed its products for each of
the following social strata.
– First segment: For this segment, watch is a fashion statement. Titan has ROYALE,
AURUM, and NEBULA for this segment. These products have specialties like
European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold &
inlaid with precious stones.
– Second Segment: For this segment also, watch is all about fashion but price does
matter to them. In this range, Titan has RAGA,TECHNOLOGY, FAST TRACK etc.
These products have digital technology & of trendy shapes. Always splash oomph on
to your ward robes and smear danger on your look.
– Third segment: For this segment, watch is just an device to show the time. They
invest after a lot of thoughts. In this category, Titan has TIMEX, SONATA,
KARISHMA, etc.

Psychographic Segmentation: Buyers are divided into different groups based on personality,
values, belief, lifestyle, motivation, etc. People within the same demographic group can exhibit
very different psychographic profiles.

• Lifestyle: People generally exhibit different lifestyle depending upon their income,
social group etc. People usually buy the product which suit their lifestyle

TITAN PERSPECTIVE

According to the life style of people Titan has segmented it’s product to fit the box.like
in the luxury section it has NEBULA, AURUM etc. In the mid-premium section RAGA,
GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has SONATA,TIMEX
and KARISHMA .

• Personality: Marketers can use personality variables to segment markets. They endow
their products with brand personalities that correspond to consumer personalities.

TITAN PERSPECTIVE

Titan advertises its products by portraying movie stars as user of its products and it offers
a lot of option to its customers. For example:-
In economy category, 60 products In luxury category, 26 products

In sports & casual category, 76 products In fashion category, 99 products

In formal category, 14 products

• Values: Values affect customer behavior in the long run. Marketers can use values and
beliefs to segment the markets.

TITAN PERSPECTIVE

Time has the same value for all irrespective of cast, creed and sex. Still, Titan
successfully segmented its products according to customer values. But it is basically
related to type of generation they are in to. So, the segmentation is also related to that.

BEHAVIORAL SEGMENTATION:
Organizations can divide markets on the basis of behavior that consumer shows towards the
usage of the products. Various variables for segmenting market on the basis of purchase
behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc.

• Occasions: Markets can be classified on the basis of various occasions that customers
encounter because people need different products for different occasions.

TITAN PERSPECTIVE

Titan also offers occasion specific products like Formal (NEBULLA, STEEL, RAGA,
GOLD&STEEL), Dress wear (REGALIA, RAGA, GOLD&STEEL, ROYALE), Fashion
(TECHNOLOGY, STEEL, RAGA, GOLD&STEEL, FAST TRACK)

• Benefits: Market is divided on the basis of the benefits customers seek from the
products. Benefit segmentation can be used to position various brands within the same
product category.

TITAN PERSPECTIVE

Titan product has benefits like:

➢ It provides the”TITAN WORLD” SERVICE CENTRE in 174 towns.
➢ It provides a huge product range to choose from.

➢ It’s products have good life cycle.

• Usage Rate: The usage rate of a particular product/service can be divided into heavy,
medium and light. Marketers are usually attracted to heavy users than other type of users.

• Loyalty Status: The loyalty status of a particular market can be divided into different
groups, according to the intensity of their loyalty to these brands.

MARKET SEGMENTATION PROCEDURE
It is a three step procedure:

1. Service stage: Here the researcher conducts exploratory interviews and focused groups
to gain insights into consumer motivations attitudes and behaviors. Then the researcher
prepares a questionnaire and collects data on attributes and their importance ratings,
brand awareness and brand ratings, product usage patterns, attitudes towards product
category and demographics, geographic, psychographics and media graphics of the
respondents.
2. Analysis Stage: In this the researcher applies factor analysis to the data to remove highly
correlated variables then apply cluster analysis to create specific number of maximally
different segments.
3. Profiling stage: Here each cluster is profiled according to its distinguishing attitudes,
behavior, demographics, psychographics, and media graphics and media patterns. Each
segment is given a name depending on its dominant characteristics. Market segmentation
should be redone periodically because they change.

EFFECTIVE SEGMENTATION:
For effective segmentation, segmentation variables need to exhibit certain characteristics. These
are discussed below:

• Measurable: The variable used for the segmentation of the markets should be
measurable to be effective. For example, a variable like the purchasing power of
potential customer is measurable.
• Substantial: When dividing the market into segments, a marketer should take enough
care to see that each segment consist of adequate number of customers worth catering to.

• Accessible: The segment of the market that a marketer is trying to target should be
accessible to him. The appropriate selection of the media, its coverage and other factors
like the product distribution facilities play a major role in a marketer becoming
accessible to customers.

• Differentiable: Each segment of the market should be different from others in terms of
its needs and wants. Each segment requires different marketing strategies because it
responds to different strategies differently.

• Actionable: A segmentation variable should help marketers develop effective marketing
programs to attract and serve potential customers effectively.

TARGETING
It is the second stage of the Segment “Target” Position (STP) process. After
the most attractive segments are selected, a company should not directly
start targeting all these segments. The attractiveness of the segments is
also depending on other important factors. In the main activity of defining a
target market, four sub activities are given which are the bases 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 company’s abilities compared to the
competitors’

4. Deciding on the actual target markets.
After the market has been separated into its segments, the marketer will select a segment or
series of segment and ‘target’ it/them. Resources and efforts will be targeted at the:

A) The first is the single segment with a single product. In other word, the marketer targets
a single product offering at a single segment in a market with many segments. For
example, Titan’s sub brand, Raga is targeting the upwardly mobile ladies in the upper
premium segment.
B) Secondly, the marketer could ignore the differences in the segments, and choose to aim
a single product at all segments i.e. the whole market. For example, Sonata and Fast
track brands of Titan are targeting mass and mid premium segment.
SONATA
FAST TRACK

C) Finally, there is a multi-segment approach. Here a marketer will target a variety of
different segments with a series of differentiated products. For example, Titan itself
provides with the number of different brands/products which are targeting different
segments in the market. Following is the table which represents the various sub brands
and their targeted segments of TITAN .
LOC MARK
CO SUB- AL/G TARGET ET BRAND PRICE
MP BRAN LOB CONSUME SHAR ENDORS RANGE
ANY DS AL RS E EMENT RETAIL INITIATIVE (INR)
SUPER PUNCH LINE-HOW
TIT PREMIUM MANY WATCHES YOU
AN EDGE SEGMENT HAVE?
PREMIUM AMIR
STEEL SEGMENT KHAN GLAMOUR WORLD
FAST-
TRAC LAUNCH NEW
K ECONOMY VARIED PRODUCTS
LOC RANI- 400-
30% MUKHER
AL 100000
RAGA MEDIUM JEE
REGA PREMIUM
INTRODUCE
LIA SEGMENT
DIAMOND STUDDED
SUPER
AMIR WATCH
NEBU PREMIUM
KHAN
LA SEGMENT
SONA
TA ECONOMY
“NEBULA”
NEBULA

POSITIONING
Introduction:
The importance of an image has become an emotional part of everyone. A brand name
represents the image, character and personality of a brand. A brand name should be clear, lucid,
easy to remember, distinct from the competition and should not be generic to the category. It
should become customer's Top of the mind brand (TOMB). Most successful brand names would
satisfy these criterions to quite an extent. Brand loyalty is one thing which has made the
branding more popular. As someone rightly said "Brand loyalty is not dead, it's just more like
loyalty to a girl/boyfriend than loyalty to a husband/wife".

Vast flow of names today makes a brand harder to differentiate them unless they come out with
their own uniqueness. This way, they could come to their special position in everyday life. The
image following a particular name is also determined by the role of communication it
undergoes; of which the followings are included: its manner, personality, behavior, ethics,
values, etc. The importance of brands depends on the true ambitions of the company.
The increasing spread and domination of international brands has seemed inevitable for at least
the last 30 years. All around the world we have witnessed the disappearance of local brands and
local variants. But despite this trend, local and regional brands still remain strong. In India, for
example, protected for many years by government policy from the invasion of foreign brands,
homegrown brands dominate many sectors - Tata automobiles and Titan watches, to name but a
few. In the end people want both global and local brands - brands that make them feel part of
wider international community and brands that root them in their home culture.

Why are brands so important?

Strong brands help a company to maintain market share in the face of a changing competitive
environment and it has been shown that a strong market share is associated with above-average
profits. Brands have become assets in their own right. In addition, they represent low-risk
opportunities for the manufacturer or service provider and they also represent reduced risk for
the consumer.
What is meant by brand positioning?
Positioning is statement that shows how you are different, better or more special than your
competition. Position is that one thing that one descriptive sentence or slogan the company is
known for that one specific idea that first comes to mind about the product. It is that one
characteristic that sets the service apart from competitors.
For
Volvo that one thing is “Safety.”
McDonalds is “A fun place for kids.”
In Jakarta, Indonesia, Bluebird is “The safest way to travel by taxi.”
Why brand positioning is important?
We need to be clear about why it is important to position a brand-and exactly what a brand is.
As consumers, we are all influenced by the effects of a powerful brand
positioning-"brainwashed," so to speak-to have preference for one versus another. But today
there are so many choices for consumers that this term has a secondary
derivation-"whitewashing."

That is, the brand choices are so varied and the differentiation so minimal in terms of product
functionality that we're faced with a sea of indiscernible offerings. This is why it is critical for a
brand to be well positioned and uniquely differentiated.
What does the result of brand positioning research show?
The market position of a brand shows where a specific brand is located. It also shows the
relationship to competitive brands. We can determine the market position of a brand on the basis
of the answers to the following four questions:

1. Why (which benefits and advantages does the new brand bring to the consumer)
2. When (determining the opportunities for which the brand is most suitable)
3. For whom (it is about the determination of the consumer of a brand or target group)
4. Against whom (determining the main competitive brands)

TITAN PERSPECTIVE
a. 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. Titan then moved away from gifting. Titan was positioning
itself as a fashion accessory rather than a time keeping device. Titan also found its
persona in Mr. Aamir khan which provided the much needed edge to the brand. Titan
was careful in keeping the brand above the celebrity. The ads were fresh and neatly
executed. The idea was to make watches that would be seen as style and fashion
accessories rather than just utilitarian devices. The company decided to use Aamir in

brand and product communication on television and in the print and outdoor media.

Though, the vast distribution and service network of TIL had served as an effective entry
barrier in the 1990s, foreign brands were becoming increasingly popular in the early
2000s, thanks to the paradigm shifts in the retail scenario and the growing affluence of
the Indian consumers.

And TIL found that it was not safe even at the bottom of the pyramid. The grey market
with cheap Chinese imports and the unorganized sector had cornered a sizable chunk of
the low-end market. The appointment of Aamir Khan as brand ambassador for the Titan
brand was seen as an attempt to broad base the appeal of the Titan brand.

b. Titan also was pushing another strategy. Watches were perceived as a onetime buy and
consumers seldom owned multiple watches. So Titan pushed the concept of "Matching
Watches to Clothes" in the recent commercials. Since men are becoming more serious
customers of fashion accessories, this is strategy that is worth trying out. For Titan, even
if the concept fails, It has created the much needed freshness in the brand.
c. Earlier Fastrack was targeted at 20-25 year olds and positioned along the line "Cool
watches from Titan". Then the company found out that the youth in the age group of
11-20 years account for 42% of watch buying in India. Based on this insight, the
company relaunched the brand lowering the target segment to 18-30 year olds with the
baseline “How many you have?". Again the strategy aimed at promoting the multiple
watch owning concepts. Fastrack also launched a range of fashion accessories like
Sunglasses trying to be a lifestyle brand.

TIL’S COMMUNICATION STRATEGY
➢ TITAN
➢ THE AAMIR EFFECT
➢ TITAN’S COLLECTIONS
➢ DASH
➢ STEEL
➢ EDGE
➢ FLIP
➢ SONATA
➢ FASTRACK – FROM COOL TO BOLD
➢ RAGA
➢ NEBULA

CONCLUSION
Titan is world’s sixth largest manufacturer plant for watches. It has
achieved this position by its wonderful marketing strategies. From time to
time, it has been involved in STP analysis to sustain its brand image and
growth rate and also to become the leader in the Indian watch market.
Through its meticulous segmentation, it has been able to reach out to
every possible single segment of consumers. The product range varies
from Rs.350 to Rs. 1, 00,000 covering all the economy and super premium
segments. In addition to giving a tough competition to various Local
brands in India, it is also a strong competitor of various leading
International watch makers. The main competitors of Titan are Timex, Citizen,
Esprit, and Swatch. HMT is its closest competitor in numbers. Titan
manufactures over 7 million watches per annum and has a customer base
of over 65 million. Titan has over 60 per cent of the domestic market share
in the organized watch market. Its exclusive retail showroom chain – World
of Titan – is amongst the largest in its category. Titan watches are sold
through over 9,000 outlets in over 2,300 cities and internationally in over
30 countries including the UK, Spain, Greece and countries in the Middle
East and Asia Pacific. Its after sales service is itself a benchmarked
operation with a network of over 616 service centers and has one of the
world’s fastest turnaround times.