Table of Contents

Sr. No. Content Pg. No.

Chapter 1
Introduction to The Titan

1.1 INTRODUCTION

1.2 PERFORMANCE FINANCIAL YEAR OF 2019F

Chapter 2 MARKETING STRATEGY

2.1 TITAN’S CONFRONTATIONS STRATEGY Formatted: Font: Not Bold, No underline, Highlight

2.2 AGGRESSIVE PRODUCT STRATEGY OF TITAN

Formatted: Default Paragraph Font

Chapter 3 HISTORY AND OVERVIEW
Formatted: Normal

32.1 History AND OVERVIEWTHEORY&CONCEPT

32.2 INDUSTRY OVERVIEW

Chapter 43 BRAND POSITIONING STRATEGIES

43.1 OVERALL STRATIGIES

43.2 ATTRIBUTIES STRATIGIES

43.3 USER POSITIONING

43.4 BENEFIT POSITIONING

 43.5 COMPETITOR POSITIONING

43.6 QUALITY & PRICE POSIONTIONING

Chapter 54 BRAND REPOSITIONING STRATEGIES

54.1 NEW LOGO & TAGLINE

54.2 BEYOND STYLE

5.3 Ads MAKING

5.4 NEW COLLECTION & DESIGN

Chapter 6 OTHER STRATEGIS

6.1 MARKET SHARE OF THE COMPETITOR IN DOMESTIC MARKET

6.2 FIND OUT THE BRAND PREFENCE FOR WATCHES

Chapter 7 MARKETING MIX

7.1 PRICE

7.2 PRODUCT

7.3 PROMOTION

7.4 PLACE

Chapter 8 CONSUMER BUYING BEHAVIOUR

 8.1 CULTURAL FACTOR

8.2 SOCIAL FACTOR

8.3 PERSONALFACTOR

8.4 PSYCOLOGICAL FACTOR

Chapter 9 NEED ANALYSIS

9.1 CONSUMER NEED

9.2 CURRENT MARKETING OBJECTIVE & PERFORMANCE

Chapter 10 STP ANALYSIS

10.1 SEGMENT MARKETING

10.2 INDIVIDUAL MARKETING

10.3 NICHE MARKETING

10.4 LOCAL MARKETING

11 SEGMENTATION

11.1 GEOGRAPHIC SEGMENTATION

11.2 DEMOGRAPHIC SEGMENTATION

11.3 GENDER SEGMENTATION

11.4 INCOME SEGMENTATION

11.5 GENERATION SEGMENTATION

11.6 SOCIAL CLASS SEGMENTATION

11.7 PSYCHOGRAPHIC SEGMENTATION

 11.8 BEHAVIOURAL SEGMENTATION

Chapter 12 CONCLUSION

BIBILOGRAPHY
 Chapter 1
Introduction to the TITAN
 INTRODUCTION
1.1: INTRODUCTION

THEORY & CONCEPT: "A business has two - and only two - basic functions: marketing and innovation." -
Peter Drunker The rapid pace of change and intense competitive pressure in today's marketplace
demand that brands continuously innovate and reinvent themselves to maintain their relevance and
market position. In this context, brand repositioning and other revitalization strategies have become a
business imperative for battling brand erosion. The appeal of brand repositioning is further heightened
by the rising costs and high risk associated with launching a new brand. Brand repositioning has received
little attention in the marketing literature and has mostly been treated as a variation of brand
positioning. Biel, for example, has defined brand positioning as "building (or rebuilding) an image for a
brand". The goal of positioning and repositioning strategies relates to the management of consumers'
perceptions. However, positioning focuses on the creation of brand associations - consumers'
perceptions of the attributes that differentiate the brand from competitive offers – while repositioning
also implies managing existing brand associations. The unique challenge of a repositioning Strategy,
thus, lies in rejuvenating the brand image to make it relevant in an evolving environment, while
honoring the brand equity heritage. Repositioning can be required as the market changes and new
opportunities occur. Through repositioning the company can reach customers they not intended to
reach in the first place. If a brand has been established at the market for some time and wish to change
their image they can consider repositioning, although one of the hardest actions in marketing is to
reposition a familiar brand. According to Solomon, position strategy is an essential part in the marketing
efforts because companies have to use the elements in the marketing mix to influence the customers
understanding of the position. During the movement from something less attractive and relevant
towards a more attractive and relevant position several of strategic choices has to be made. The ones
responsible for the repositioning have to evaluate why a reposition is necessary, and if the offer is the
one who will change or just the brand name. There are several risk factors that have to be taken into
consideration when preparation for a repositioning of the offering or the brand. During 10 repositioning,
the risk of losing the credibility and reliability is high and the need for a thorough strategy is therefore
necessary to avoid this occurrence. Some analyst argue that to successfully reposition a establish brand
name is almost impossible because repositioning of a brand can make the most loyal customer to switch
brand. But, in some circumstances a repositioning is necessary to gain credibility if the brand is eroded.
Whenever a reposition is in question it has to be of relevance from a customer perspective, is this
achievable? Some brands will on no account be thought on as a luxury brand and therefore an attempt
to reposition will only damage the brand image or the actual company. Numerous failed attempts at
brand repositioning testify to the difficulty of developing and implementing such a tactic. For example,
while the soft drink brand, Mountain Dew has remained relevant to the youth market through
continuous repositioning in its thirty years of existence, Levis' Jeans has been losing market share to
newcomers such as The Gap, despite numerous campaigns designed to reposition the brand as trendy.
The strategic importance of brand repositioning in preserving and enhancing brand equity, coupled with
the mixed results of repositioning attempts, underscores the need to develop a better understanding of
the dynamics of brand repositioning. Specifically, questions of whether, when and how brands should be
repositioned need to be addressed. Research into brand repositioning is relevant not only to the
development of brand management theory, but also extends to corporate strategy through an
examination of corporate brands.
Titan Company Ltd is the world's fifth largest wrist watch manufacturer and India's leading producer of
watches. The company is engaged in manufacturing of watches, jewelry, precision engineering and
Eyewear. They produce watches under the brand name Titan, Fastrack, Sonata, Nebula, RAGA, Regalia,
Octane & Xylys. They export watches to about 32 countries around the world. They manufacture
precious jewellery under the Tanishq brand name. Titan Industries Ltd is a joint venture between the
Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO).

As on 31 December 2017, Titan's retail chain comprised of 1,439 stores with total retail area crossing
1.87 million sq.ft. nationally for all its brands.

Titan Industries Ltd was incorporated in the year 1984 and commenced their business in the year 1986.
The company set up an integrated watch manufacturing facility at Hosur in Tamil Nadu in the year 1987
with initial technical know-how from Europe and Japan. In October 1992, they came with a right issue to
the part of finance for its expansion programmes. In the year 1995, they diversified into Jewellery under
the brand name of Tanishq to capitalize on a fragmented market operating with no brands in urban
cities. Apart from the domestic market, the company started the manufacturing of watches for several
prestigious international brands during the year 1997.

In the year 1998, the company launched the second watch brand, Sonata. In the year 2003, the
company leveraged their manufacturing competencies and branched into Precision Engineering
Products and Machine Building. They diversified into fashion Eyewear by launching Fastrack Eye-Gear
sunglasses, as well as Prescription Eyewear. The company's Precision Engineering Division supplies
precision components and also manufactures dashboard clocks as OEM to car manufacturers in Europe
and America. The division also provides fully integrated Automation solutions.

During the year 2004-05, the company launched two brands namely Fastrack sunglasses and Tommy
Hilfiger Watches. They entered into the fragrance business through launch of Evolve and these are
available in UAE, OMAN and Bahrain. During the year, the company set up a new watch assembly unit at
Baddi Himachal Pradesh with an assembly capacity of 2 million watches per annum. In the year 2005,
the company launched their second Jewellery brand under the name of Gold Plus aimed at the mass
market and for capitalizing on the opportunity in small towns and rural India.
During the year 2005-06, the company merged their Retailing team and Customer Service and
rechristened as the Retailing Services Group. They launched XYLYS, a new brand in the fast growing
premium 'Swiss Made' market segment. The brand was launched in Mumbai, Delhi, Bangalore and
Hyderabad. In the next year, they expanded their footprints to 11 towns of the country.

In January 2008, the company launched their all-new collection of chronograph, multifunction and
retrograde watches with international styling, Octane from Titan. The collection embodies speed,
energy and power. Also, they made a tie-up with Sankara Nethralaya for a technical collaboration for
training optical store personnel for Titan Eye+, the optical division of the company. In April 2008, they
set up large World of Titan showroom in Lahore, a Titan exclusive store in Karachi. In June 2008, they
made partnership with the World Wildlife Fund (WWF-India) to spread awareness about some of the
most endangered species in India through a collection of uniquely designed Titan watches.

During the year 2008-09, the company entered the US Jewellery market with the opening of two
Tanishq Stores, one each at Chicago and New Jersey. They expanded their retail network by adding 135
new stores (1,78,235 sq.ft.) across watches, jewellery and eyewear businesses. As per the scheme of
amalgamation, three domestic subsidiary companies, namely Samrat Holdings Ltd, Questar Investments
Ltd and Titan Holdings Ltd were amalgamated with the company with effect from April 1, 2007.

During the year 2009-10, the company expanded their retail network with a net addition of 52 stores
(81,267sq.ft.) across Watches, Jewellery and Eyewear businesses. They added one more Tanishq
Boutique Retail Chain, which was the first of its Large Format Store strategy set for the Brand. This store
spans across 20,000 sq.ft on Usman Road, Chennai, considered to be the hub of Jewellery buying in
South India. Also, Gold Plus closed one of its stores in Bheemavaram in view of its low market potential.
Eyewear expanded its retail chain to 82 stores.

In March 29, 2010, the company established one more assembly unit at an excise duty free zone in
Uttarakhand State, with a production capacity of 5.0 million watches per annum having-a total built up
area of 4,500 sq mtrs.

During the year 2010-11, the company expanded their retail network with a net addition of 122 stores
(724503 sq.ft.) across Watches, Jewellery and Eyewear businesses. They also entered into the South
African market with the launch of their products. Their 'World of Titan' network grew to 311 stores by
the end of the financial year 2010-11. They launched two flagship stores, in Mumbai and Delhi.

During the year, the company launched collection of watches, such as Purple by Titan, an offering of
fashion watches; Raga Aqua, a new collection whose evocative designs were inspired by the oceans and
seas; Tycoon by Titan, a new collection of gold look watches; and new products in the automatic
watches range, which cater to premium consumers.

In January 2012, as per the scheme of amalgamation, Tanishq (India) Ltd was amalgamated with the
company. In March 29, 2012, the company commenced commercial production in their new integrated
state of art Jewellery Unit set up in the excise free zone in Pantnagar, Uttarakand. The new Pantnagar
Unit has been commissioned at an approximate cost of Rs. 15 crores for the manufacture of studded
jewellery and is estimated to achieve a turnover of Rs. 250 crores during the financial year 2012-13.

In 2012, the company won a total of 3 awards at the ET retail awards which was held in Mumbai on the
18th of January 2012. The company also Won 2 awards at the 12th edition of Images fashion awards
night. The company has been certified to ' OHSAS 18001: 2007 ' Management Systems. The company
was selected unanimously by the jury as the Best Governed Company 2012 by Asian Centre for
Corporate Governance & Sustainability. The company won the Client of the Year award at the Campaign
India Digital Media Awards 2012.

In 2013, the company's name was changed from Titan Industries Ltd. to Titan Company Ltd. On 16
December 2013, Titan Company announced the opening its 1000th retail store in Bangalore. With this,
Titan became the first Indian specialty retailer to open 1,000 stores in seven varied formats under
watches, jewellery and eyewear categories.

In 2014, the Company entered into a Joint Venture agreement with Montblanc Services B.V.
Netherlands for establishing operations in India for carrying on single brand retail trade. Titan Company
Ltd which is engaged in manufacturing of watches/accessories, jewelry, precision engineering and
eyewear stated that their jewellery division has launched first Karigar centre for jewellery manufacturing
in Hosur.
In 2015, the company added one more feather to its Manufacturing Excellence and Commenced World
Class Stainless Steel Case production in Coimbatore.

On 23 November 2015, Titan announced that it has joined forces with HP Inc., one of the world's leading
information technology companies, to launch a range of smart watches in India and select international
markets.

On 3 December 2015, Titan announced that its joint venture with Montblanc Services B.V, Netherlands
has commenced operations. Montblanc Services B.V holds majority 51% stake in the joint venture
company and Titan holds a 49% stake. The joint venture company was formed for carrying on the
business of single brand retail trading of Montblanc products in India.

On 10 December 2015, Titan announced that the Reserve Bank of India has permitted FIIs/RFPIs to
invest up to 35% of the paid-up capital of the company under portfolio investment scheme.

The Board of Directors of Titan Company at its meeting held on 6 May 2016 approved the acquisition of
a majority stake in Carat Lane Trading Pvt. Ltd. (Carat Lane) subject to due diligence. Carat Lane was
incorporated on 20 September 2007 and is a leading online jewellery brand and sells its products
through its website Caratlane.com. The company has also developed omni-channel capabilities and has
currently 13 stores across the country with plans to ramp up the retail stores significantly in the future.
On 14 July 2016, Titan announced signing of Share Purchase Agreement for acquiring about 62% stake in
Carat Lane Trading Pvt. Ltd for a cash consideration of Rs 357.24 crore. Carat Lane clocked revenue of Rs
141 crore for the financial year ended 31 March 2016. In August 2016, Titan completed the acquisition
of about 62% stake in Carat Lane.

On 12 October 2016, Titan Company announced that the company has since inception been exploring
opportunities in personal lifestyle categories. One such category is special occasion ethnic wear for
women which will now be piloted for understanding consumer attitudes and preferences. The pilot,
which may include setting up a few stores, is expected to last about 12 months at the end of which the
company will take a decision on the future course of action.

On 16 January 2017, Titan Company announced that it has decided to consolidate its portfolio by
migrating the Gold Plus network to become a part of the Tanishq network. Titan said that customers in
the larger cities of South India have evolved in their tastes and aspirations and Titan's main jewellery
brand Tanishq has kept pace with them. Given that evolution of the customers and Tanishq as well as
the need to focus all energies and resources in today's circumstances, Titan Company has decided to
consolidate its portfolio by migrating the Gold Plus network to become part of the Tanishq network.
Titan had launched its second jewellery brand Gold Plus in 2005 for small-town South India, to better
cater to the needs of the more traditional requirements of those customers.

On 20 February 2017, Titan Company informed the stock exchanges that the High Court of Madras has
sanctioned the Scheme of Arrangement between Titan Company Limited and Titan Engineering &
Automation Limited for transfer of Precision Engineering Business Undertaking of the Titan Company
Limited to Titan Engineering & Automation Limited, a wholly-owned subsidiary of Titan Company, in
terms of an order passed on 12 December 2016.

During the year 2016-17, Titan's eyewear division added 95 new stores. Also during the year, the
company announced the introduction of 30 minute delivery of spectacles. The company purchased land
during the year to set up frame manufacturing. In the watches segment, the company ventured into
smart watch category, launching 4 smart products (Juxt, Juxt Pro, Sonata Act, Fastrack Activity Tracker
Band) to rave reviews.

1.2: Performance in Financial Year 2019

Titan Company Ltd registers a topline growth of 14.5% in Ql. Titan Company Limited reported a growth
of 14.5% in topline during Ql of FY 2019-20. The sales income grew from Rs.4269 crores last year to
Rs.4885 crores in Ql. The profit before tax for the same period grew from Rs.487 crores to Rs.523 crores
The Jewellery division recorded an income growth of 13.3% in the first quarter. The income from this
division in Ql was Rs.4047 crores as against Rs.3572 crores last year. Growth in the jewellery segment
was adversely impacted by high gold prices, especially during the month of June 2019. The Watches
business grew from Rs.594 crores in Ql last year to Rs. 715 crores this year, recording a growth of 20.4%,
powered by excellent growth in brand Titan. The Company's Eyewear business grew by 13.1% to Rs.149
crores for Ql this year. The Company's other businesses comprising accessories, fragrances and sarees
grew by 37.9%, to Rs.36 crores this year. The above are Standalone figures. The consolidated income
and PBT for Q1 of the Company were Rs.5095 crores and Rs.521 crores respectively. Retail expansion
continued with a net addition of 45 stores across all its businesses in the first quarter, ending the period
with a retail area of over 2.1 mn sq.ft nationally. The Company's retail chain is 1640 stores strong, as on
30th June 2019 and the network expansion effort will remain undiminished across all its businesses -
Watches, Jewellery and Eyewear. Mr. Bhaskar Bhat, Managing Director of the Company stated that "The
macro-economic environment coupled with lower consumption have impacted some of our businesses.
The retail growth in jewellery was driven by encouraging performance in the studded as well as wedding
jewellery segments. However, there has been a weak consumer sentiment prevailing across, especially
in jewellery with additional factors like price volatility and customs duty increase. The Watches business
has done well, with a growth of 20% while retaining its focus on healthy margins. The profit growth for
the Company appears subdued due to investments made in biennial overseas conferences for our
business associates across all divisions as well as the impact of wage settlement with our unionized
employees that was cordially concluded in this quarter. The Company is gearing up on all fronts across
its portfolio of brands and businesses to stimulate demand in the coming quarter through innovative
campaigns and new product launches

Titan Company Ltd reports a growth of 1.8% in net profit for 02. Titan Company Ltd announced a growth
in income of 0.6% for the second quarter. The income from operations in the second quarter, July to
September 2019, was Rs.4435 crores, against last year's income of Rs.4407 crores during the same
period. The income for April to September 2019, the first half of this financial year, stands at Rs.9375
crores, registering a growth of 7.4% over last year. The Standalone PBT for Q2 is Rs.429 crores, against
Rs.446 crores last year. The growth in the profit before tax for the quarter was impacted due to the flat
growth in revenues compounded by increase in certain overheads. The Jewellery business had a
subdued quarter on the back of very high gold prices, recording an income of Rs.3528 crores as
compared to Rs.3582 crores last year. The Watches business recorded an income of Rs.719 crores
against Rs.676 crores in the previous year, a growth of 6.4%. The Jewellery division continues to gain
market share registering a growth of 5.9% in revenue for the first half of this year and the Watches
business is growing at a healthy 12.9% for the same period. The Eyewear business grew well, by 28.5% in
the quarter, recording an income of Rs.154 crores as against Rs.120 crores last year. Other segments of
the Company comprising accessories, fragrances and Indian dress wear grew by 33.2% in Q2 recording
an income of Rs.44 crores. The previous year income for this segment in Q2 was Rs.33 crores. The
Company's retail chain stands at 1668 stores, as on 30th September 2019 with a retail area crossing 2.1
million sq.ft. nationally for all its brands. Mr.CK Venkataraman, Managing Director of the Company
stated that "The Company has done well across all its businesses in the second quarter given the
subdued market and consumer sentiments. The Jewellery business has done better than most players in
the industry. Both the Watches as well as Eyewear business have recorded good growth. For the second
half of FY 20 we are gearing up on all fronts to stimulate demand with innovative campaigns for new
exclusive collections that are lined up for launch across all our brands".
 Chapter 2
MARKETING STRATEGY
2.1: Titan’s confrontation strategy

Titan’s Confrontations Strategy

The confrontation marketing strategies are a type of marketing warfare strategy designed to obtain an
objective, usually market share, from a target competitor. In addition to market share, an offensive
strategy could be designed to obtain key customers, high margin market segments, or high loyalty
market segments. There are four fundamental principles involved in confrontation strategy:

1 -Assess the strength of the target competitor. Consider the amount of support that the target might
muster from allies. Choose only one target at a time.

2- Find a weakness in the target’s position. Attack at this point. Consider how long it will take for the
target to realign their resources so as to reinforce this weak spot.

3. Launch the attack on as narrow a front as possible. Whereas a defender must defend all their borders,
an attacker has the advantage of being able to concentrate their forces at one place.

4. Launch the attack quickly. The element of surprise is worth more than a thousand tanks.

Types of Confrontation Strategies

The main types of confrontation marketing warfare strategies are:

 Frontal Attack - This is a direct head-on assault. It usually involves marshaling all your resources
including a substantial financial commitment. All parts of your company must be geared up for the
assault from marketing to production. It usually involves intensive advertising assaults and often entails
developing a new product that is able to attack the target competitors’ line where it is weak. It often
involves an attempt to “liberate” a sizable portion of the target’s customer base. In actuality, frontal
attacks are rare. There are two reasons for this. Firstly, they are expensive. Many valuable resources will
be used and lost in the assault. Secondly, frontal attacks are often unsuccessful. If defenders are able to
re-deploy their resources in time, the attacker’s strategic advantage is lost. You will be confronting
strength rather than weakness. Also, there are many examples of a dedicated defender being able to
hold-off a larger attacker. The strategy is suitable when:  the market is relatively homogeneous 
brand equity is low  customer loyalty is low  products are poorly differentiated  the target
competitor has relatively limited resources  the attacker has relatively strong resources

 Envelopment Strategy - This is a much broader but subtle offensive strategy. It involves encircling the
target competitor. This can be done in two ways. You could introduce a range of products that are
similar to the target product. Each product will liberate some market share from the target competitor’s
product, leaving it weakened, demoralized, and in a state of siege. If it is done stealthily, a full scale
confrontation can be avoided. Alternatively, the encirclement can be based on market niches rather
than products. The attacker expands the market niches that surround and encroach on the target
competitor’s market. This encroachment liberates market share from the target. The envelopment
strategy is suitable when:  the market is loosely segmented  some segments are relatively free of
well endowed competitors  the attacker has strong product development resources  the attacker has
enough resources to operate in multiple segments simultaneously  the attacker has a decentralized
organizational structure.

 Leapfrog strategy - This strategy involves bypassing the enemy’s forces altogether. In the business
arena, this involves either developing new technologies, or creating new business models. This is a
revolutionary strategy that rewrites the rules of the game. The introduction of compact disc technology
bypassed the established magnetic tape based defenders. The attackers won the war without a single
costly battle. This strategy is very effective when it can be realized.

 Flanking attack - This strategy is designed to pressure the flank of the enemy line so the flank turns
inward. You make gains while the enemy line is in chaos. In doing so, you avoid a head-on confrontation
with the main force. Titan Industries, though does not completely adopt the above strategy, yet the
company uses it to a great extent in as much as it captured sizeable market share from already
established brands like HMT.

Aggressive Product Strategy of Titan

Titan has widened its products range very rapidly which suit to the need of every budget customer from
the common man to the elite category.

The brand Titan is committed to offering its consumers watches that represent the compass of their
imagination. Titan's customers are therefore consistently introduced to exciting new collections, which
connect, with various facets of their deep rooted yearnings for self-expression. The new brand philosophy
of Titan, encapsulated in the words “Be More”, touches this as well as all other aspects of the brand. The
Titan brand architecture comprises several collection and sub-brands, each of which is a leader in its
segment. Notable among them are “Titan Edge” the world's slimmest watch which stands for the
philosophy of “less is more”; “Titan Raga” the feminine and sensuous accessory for today's woman,
“Nebula” crafted in solid 18K gold and precious stones. Several other popular collections like Heritage,
Aviator, Regalia, Octane and WWF also form a part of the Titan wardrobe.1 Today, the Titan portfolio has
over 60% of the domestic market share in the organised watch market. The company has 487 exclusive
showrooms christened World of Titan', making it amongst the largest chains in its category backed by 700
after sales service centers. The company has a world-class design studio that constantly invents new
trends in wrist watches.

2.3: PRICING PRACTIES OF TITAN

Pricing Practices of Titan Pricing

is one of the four aspects of marketing. The other three parts of the marketing mix are product
management, promotion, and distribution. It is also a key variable in microeconomic price allocation
theory. Pricing involves asking questions like:

 How much to charge for a product or service?

 What are the pricing objectives?

 Do we use profit maximization pricing?

 How to set the price?: (cost-plus pricing, demand based pricing, rate of return pricing, or competitor
indexing)

 Should there be a single price or multiple pricing?

 Should prices change in various geographical areas, referred to as zone pricing?

 Should there be quantity discounts?

 What prices are competitors charging?

 Do you use a price skimming strategy or a penetration pricing strategy?

 What image do you want the price to convey?

 Do you use psychological pricing?

 How important are customer price sensitivity and elasticity issues?

 Can real-time pricing be used?

 Is price discrimination or yield management appropriate?

 Are there legal restrictions on retail price maintenance, price collusion, or price discrimination?

 Do price points already exist for the product category?

 How flexible can we be in pricing? : The more competitive the industry, the less flexibility we have.
The price floor is determined by production factors like costs, economies of scale, marginal cost, and
degree of operating leverage. The price ceiling is determined by demand factors like price elasticity and
price points:

 Are there transfer pricing considerations?

 What is the chance of getting involved in a price war?

 How visible should the price be? - Should the price be neutral? (i.e. not an important differentiating
factor), should it be highly visible? (to help promote a low priced economy product, or to reinforce the
prestige image of a quality product), or should it be hidden? (so as to allow marketers to generate interest
in the product unhindered by price considerations).

 Are there joint product pricing considerations?

 What are the non-price costs of purchasing the product? (eg.: travel time to the store, wait time in the
store, disagreeable elements associated with the product purchase - dentist -> pain, fishmarket -> smells).

 What sort of payments should be accepted? (cash, cheque, credit card, barter). A well chosen price
should do three things:

 achieve the financial goals of the firm (eg.: profitability)

 fit the realities of the marketplace (will customers buy at that price?)

 support a products positioning and be consistent with the other variables in the marketing mix

Price is influenced by the type of distribution channel used, the type of promotions used, and the quality
of the product. Price will usually need to be relatively high if manufacturing is expensive, distribution is
exclusive, and the product is supported by extensive advertising and promotional campaigns. A low price
can be a viable substitute for product quality, effective promotions, or an energetic selling effort by
distributors.

From the marketers point of view, an efficient price is a price that is very close to the maximum that
customers are prepared to pay. In economic terms, it is a price that shifts most of the consumer surplus
to the producer. The effective price is the price the company receives after accounting for discounts,
promotions, and other incentives. Price lining in the use of a limited number of prices for all you product
offerings. This is a tradition started in the old five and dime stores in which everything cost either 5 or 10
cents. Its underlying rationale is that these amounts are seen as suitable price points for a whole range of
products by perspective customers. It has the advantage of ease of administering, but the disadvantage
of inflexibility, particularly in times of inflation or Marketing unstable prices. A loss leader is a product that
has a price set so low that it acts as a promotional device and draws customers into the store. Promotional
pricing refers to an instance where pricing is the key element of the marketing mix.

The price/quantity relationship refers to the perception by most consumers that a relatively high price is
a sign of good quality. The belief in this relationship is most important with complex product that are hard
to test, and experiential products that cannot be tested until used (such as most services). The greater the
uncertainty surrounding a product, the more consumers depend on the price/quantity hypothesis and the
more of a premium they are prepared to pay.

Premium pricing (also called prestige pricing) is the strategy of pricing at, or near, the high end of the
possible price range. People will buy a premium priced product because:

1. They believe the high price is an indication of good quality;

2. They believe it to be a sign of self worth - "They are worth it" - It authenticates their success and status;
it is a signal to others that they are a member of an exclusive group; and

3. They require flawless performance in this application - the cost of product malfunction is too high to
buy anything but the best.

Demand based pricing

refers to any of the pricing methods that use consumer demand as the central element. These include:
price skimming, price discrimination and yield management, price points, psychological pricing, bundle
pricing, penetration pricing, price lining, and premium pricing.

At Titan, different price policy is adopted for different brands of products. Titan has a wide range of
brands to offer to the common man to high profile persons. For example, Sonata, India's largest selling
watch brand, offers stylish looks at affordable prices. The thoughtfully crafted designs encompass the
aspirations of young India. The boldness and uniqueness of each design reflects the confidence of the
wearer. The brand offers a variety of looks, to suit every occasion and every wallet:

 Dressy Sona Sitara watches for special occasions

 Bold Yuva watches crafted in steel for today’s confident youth

 Contemporary Office Wear watches with formal appearance and leather strap

 Stylish and Strong Super Fibre watches

The exciting range, with over 400 designs, offers affordable prices between Rs.275 and Rs.1400. Sonata
watches are available at Titan Industries’ 10,000 authorised watch outlets and the World of Titan stores
across the country. Best quality material and several stringent quality checks ensure that Sonata watches
offer long of Titan 194 lasting value to customers. Water resistance (30m) and a one-year guarantee add
to Sonata’s array of quality features. With exquisite appearance and world-class quality, Sonata continues
to evoke pride and confidence in the customer.
 Chapter 3
History and Overview
3.1: History And Overview

1984 - 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. - The Company entered into a collaboration agreement with France
Ebauches (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 ana-digi watches in collaboration with Casio
Computer Company of Japan. A MOU was signed between the Company and Casio in November, 1986.
1987 - The Company established a manufacturing facility at Hosur for the manufacture of components
for watches. - In April the Company also issued 5,25,000 - 13.5% secured redeemable partly convertible
debentures of Rs 300 each for cash at par. The debentures were allotted on preferential basis: (i) 26,250
debentures to employees/workers of the Company and associate companies (ii) 52,500 debentures to
shareholders of Tata Press Ltd. and (iii) 1,31,250 debentures to NRIs on repatriation basis. The remaining
3,04,500 debentures along with the unsubscribed portion of 78,900 debentures from the preferential
quota were offered for public subscription during April. Additional 1,31,250 debentures were allotted to
retain over-subscription. - The convertible portion of Rs 100 of the face value of each debenture was
converted into 10 equity shares of Rs 10 each at the end of three months from the date of allotment of
debentures (65,62,500 equity shares were allotted accordingly). - The non-convertible portion of Rs 200
of the face value of each debenture was to be redeemed at par at the end of the 10 years from the date
of allotment of debentures. 1989 - A new range of watches called `Aqura' was launched in December. -
The case plant at Hosur was commissioned. The plant was to produce 1.5 million watch cases. The
project cost was financed partly through internal resources and largely through borrowings from IFC,
Washington and the Tamil Nadu Industrial Development Corporation, Ltd. - The Company set up a
satellite case plant at Dehra Dun in Uttar Pradesh with a capacity of 5,00,000 watch cases per annum to
improve operating efficiency and reduce costs. - During August, the Company issued 2,52,000 - 12.5%
convertible debentures of Rs 500 each as follows: (i) 2,40,000 debentures on rights basis in the
proportion 1 debenture: 100 equity shares held and (ii) 12,000 debentures to employees/workers of the
Company on an equitable basis. A total of 2,84,455 debentures were allotted under this issue including
retention of oversubscription. - Part `A' of each debenture of face value of Rs 100 was compulsorily and
automatically converted into 10 equity shares of Rs 10 each at par on expiry of six months from the date
of allotment of debentures. - Part `B' of each debenture of the face value of Rs 200 was converted into 4
equity shares of Rs 10 each at a premium of Rs 50 per share on 1.10.92. - Part `C' the non-convertible
portion of each debenture of face value of Rs 200 was to be redeemed at par at the end of the 10th year
from the date of allotment of debentures. - The proceeds of the issue were to be utilised to meet a part
of the fund requirement of the company's project to manufacture watch cases and other critical
components inhouse. - The Company proposed to offer 40,26,700-12.5% fully convertible debentures of
Rs 100 each on Rights basis in the proportion 2 debs: 20 equity shares held. Another 2,012,340 - 12.5%
debentures were to be issued to the employees' on an equitable basis. - Rs 40 of the face value of each
debenture was to be converted into 1 equity share of Rs 10 each at a premium of Rs 30 per share on or
before 30th September, 1995. - Rs 60 of the face value of each debenture was to be converted into 1
equity share of Rs 10 each at a premium not exceeding Rs 50 per share on or before 30th September,
1996. 1991 - A joint venture Company along with Economic Development Council of Goa, Daman & Diu
Ltd., in the name of Titan Time Products, Ltd., was set up at Goa, for the manufacture of Electronic
Circuit Blocks. - The company undertook to set up a jewellery business at Hosur. The jewellery repertoire
was to include both daily-wear jewellery and luxury products. - Grant Walker, a U.K. based firm, was to
provide the necessary consultancy services and the marketing was to be undertaken worldwide through
an offshore company controlled by Titan Watches Ltd., with its mainbase in London. - The Company
along with other Tata Associates were to participate in the equity of Timex, who were to offer equity
shares of Rs 10 each at a premium of Rs 40 per share. It was also proposed to make a Partly convertible
debenture of nearly Rs 60 crores. 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. - It was
also proposed to sell the brand name `Aqura' and the right to make Aqura products to Timex, with a
view to move up market. - With a view to streamling the Company's international operations, it was
decided to set up a wholly owned subsidiary "Titan Holdings BV" in Netherlands. Approval was received
for investment of share capital of 2 million U.S. $ in that Company. - Titan Time Products, Ltd., is a joint
sector project set up with the Economic Development Council of Goa, Daman and Diu. - Titan Properties
Ltd., was incorporated to undertake land development and housing scheme for the Company's
employees at Hosur. - The Company issued 134,22,300 Rights equity shares of Rs 10 each for cash at a
premium of Rs 40 per share in the proportion 1:2 (all were taken up). - Another 5,69,000 No. of equity
shares of Rs 10 each were issued at a premium of Rs 40 per share in proportion 2 shares: 1 debenture
held to Part B holders of 12.5%. Convertible debentures issued in 1989. (all were taken up). - 6,99,600
No. of equity shares of Rs 10 each were offered at a premium of Rs 40 per share to employees of the
Company and those of promoter companies on an equitable basis (only 3,02,600 shares taken up). 1993
- The name of the Company was changed with effect from 21st Sept. from Titan Watches, Ltd. to Titan
Industries Ltd., in view of the fact that the Company's products consisted of not only watches but also
jewellery. 1994 - The Company introduced `Tanishq' range of watches made of 18 carat gold and
studded with precious stones. A new range of watch `Insignia' manufactured for the European market
likely to be introduced in the domestic market. - The Company proposed to expand the watch
manufacturing to 5 million pieces by adding some balancing equipment and productivity devices in the
component manufacturing plants. - The Company proposed to establish new facilities for the
manufacture of table clocks with a capacity of 1.5 million pieces per annum. New facilities were also
being established for the manufacture of complex integrated metal bracelets with a capacity of 1.2
million bracelets with technical assistance from a reputed manufacturer in Japan. - A new Company was
established in Singapore to market products in South and South East Asian countries. 1995 - The
Company proposed to set up a joint venture company with Hour Glass of Singapore to set up watch
boutiques in leading Indian cities for the sale of luxury watches and also be responsible for wholesale
and after-sales operations. 1996 - The Company has introduced new economy range of watches called
"Sonata" and Tanistiq's 22 Karat ethnic Jewellery during the year. - 23,00,000 Pref. shares issued on
private placement basis. 1998 - 3.5%, 14% and 12% redeemable cumulative preference shares has been
fully redeemed. - The Company now has 102 exclusive Titan Showrooms and a chain of 83 Timezone
outlets in addition to being present in over 5400 dealer outlets in 1300 towns and cities across the
country. - Mr A C Mukherji and Mr T K Balaji retire by rotation and are eligible for reappointment. -
During the year, the Tamilnadu Industrial Development Corporation (TIDCO) nominated Mr R Gopalan,
their Chairman and Managing Director. - The Research & Development Group has developed a slim
movement with date which has been introduced in the market. 2000 - Titan Industries has announced
the launch of Cyber, a range of digital clocks. - ICRA has withdrawn the A1+ rating assigned to the Rs 15
crore CP programme of the company as there is no outstanding against the instrument. - Titan
Industries has been conferred the award for excellence in electronics for the year 1998 by the ministry
of information technology (MIT). - Titan has launched a new `Style at Work' collection under its
Classique range. - Tanishq, the jewellery division of Titan Industries Ltd, has opened its second
 showroom in Kerala. - Pizza Hut has introduced baarah nahi toh tera, a new deal in which a customer
who orders a `speed lunch' gets it in 12 minutes, or gets it free. As part of the offer, Pizza Hut has
entered into a tie-up with Titan, through which a Titan Fast-track watch will be displayed on every table
to mark the 12 minute countdown. - Titan Industries' jewellery arm Tanishq is getting into an
memorandum of understading with Canara Bank and Corporation Bank to convert gold articles into
slabs. - Titan Industries is considering launching a `third brand' for the upper end. - Titan Industries
unveiled a new range of wrist-watches, called the Classique range, for Corporate Executives. - Titan
Industries has announced a new range of Fastrack watches for young women in the city 2001 - Titan
Industries Ltd. has launched three new collections of its popular Dash brand of watches for kids --
Popeye, Digital and Lumibrite. - Titan Industries on June 27 reported its profit rose 21.8 per cent in the
past year to March, reflecting strong sales growth by its jewellery division. 2002 - Titan Industries Ltd
informs that the Board of Directors have appointed Mr. V.K.Jeyakodi, IAS, Executive Director, Tamil
Industrial Development Corporation Ltd as a Director of the Company, in place of Mr. Hemant Kumar
Sinha who has resigned. - Titan Industries Ltd informs that Mr Bhaskar Bhat is appointed as Managing
Director of the Company.Mr Bhaskar Bhat succeeds Mr Xerxes Desai who steps down as Managing
Director on March 31, 2002, at the end of his tenure. -Titan Industries Ltd, the Board of Directors have
appointed Mr M Kalaivanan, appointment in place of Mr V K Jeyakodi who has resigned from the Board
on March 27, 2002.The Board of Directors have also appointed Mr Krishnadas Nair as an additional
independent Director on the Board of the Company effective May 02, 2002. - At the Board meeting of
Titan Industries Ltd held today (June 26, 2002), the Board of Directors noted and accepted the
resignation of Mr A Gowrishankar as Chairman and Director and Mr M Kalaivanan as a Director, both of
them were nominee directors of TamilNadu Industrial Development Corporation Ltd (Tidco) The
Directors have also approved the appointment of Dr R Vijaykumar as a Nominee Director of Tidco in
place of Mr M Kalaivanan. - Titan Industries Ltd decides that it would be in the long-term interest of the
company to rationalise its manpower and to improve productivity. With a view to achieve this objective
and keeping the best interests of both employees and the company in mind the company has decided to
introduce a Voluntary Retirement Scheme to its permanent employees. The scheme has been notified
today July 25, 2002 to the employees of the company. -Arun Kumar appointed as Director & Chairman of
Titan Industries. 2003 -Tanishq steps into a new segment Silverware. The silverware range has been
designed by Michael Folly, the designer for Titan. We have introduced silverware in all metros, said YL
Saroja, group manager, sales and marketing, Tanishq. This is a Rs 5,000 crore market and has few
organised and branded players. -Management decided to declare partial lock-out at the company's
manufacturing facilities at Hosur. -Floats towards automotive and aerospace precision mechatronics for
aviation and auto tools. -Mr Jacob Kurian, Chief Operating Officer gives his resignation to the company. -
Soldbusiness of publishing Readers Digest Magazine for a lumpsum consideration of Rs 150 million to
Living Media India ltd. 2004 -GVM International Ltd., a licensee of Tommy Hilfiger Licensing Inc (a
wholly-owned subsidiary of Tommy Hilfiger Corporation), and a member of the Murjani Group, enters
into an exclusive sub-licensing agreement with Titan Industries Ltd to market and distribute Tommy
Hilfiger watches in the country -Relaunches 'Raga', the women's watch range -Titan has announced the
launch of a new collection of women's watches called 'Raga Miniatures'. Small and delicate in size the
watches bracelets in 15 varieties of gold and steel and is priced at Rs 2995 onwards. -Titan Industries Ltd
announced the launch of the customer service `Original Spares' logo -Titan has announced the launch of
Raga 9 to 5 collection of watches aimed at working women. The collection comprises around 40 designs
and is targeted at women in the age group of 25 to 45. The new range is available at a price ranging
from Rs 1650 to Rs 5000. -Titan Industries on June 18, 2004, announced the launch of the Tommy
Hilfiger watch collection in India. Titan has entered into an exclusive sub-licensing arrangement with
GVM International Ltd, a member of the Murjani Group, for the marketing and distribution of Tommy
Hilfiger watches in India -Watch and jewellery manufacturer Titan Industries forayed into the fashion
accesssories industry with the launch of sunglasses, a Rs 330-crore market -Rolls out new range of
designer eyewear in Chennai -Titan Industries on July 22, 2004, launched the Flip collection - a dual-
faced watch that incorporates two watch movements embedded in a single case -Titan rolls out new
range of jewellery watches under the 'Nebula' brand -Titan Industries launches Crown Collection
watches -Titan partners with LVMH Group -Titan Industries launches Cal Track 2005 -Titan re-introduces
Fastrack range of watches -Titan introduces new gold & steel collection in Coimbatore -Titan rolls out bi-
metal range of watches in Vizag -Titan launches multiple watches under Raga coordinate range 2006 -
Titan Industries Ltd has informed that Mr. Harish Bhat is being appointed as Chief Operating Officer
(COO) - Watches and Licensing & Accessories Division of the Company. -Titan to set up Tanishq exclusive
stores in US -Titan Industries unveils Xylys watche -Titan Ind sets up boutique in Banjara Hills -Titan
Industries Ltd Issues Rights in the Ratio of 1:20 2007 -Titan Industries Ltd has informed that Mr. Sunil
Paliwal, IAS, Executive Director, Tamilnadu Industrial Development Corporation Ltd (TIDCO) has been
inducted as an Additional Director in the Board of the Company with effect from February 26, 2007. -
Titan Industries Ltd has informed that the Board of Directors of the Company at its meeting held on
October 29, 2007, inter alia, has appointed Mr. Kumar Jayant, IAS, nominee Director, Tamilnadu
Industrial Development Corporation Ltd as an Additional Director in the Board of the Company with
 effect from October 29, 2007. Mr. Sunil Paliwal, IAS, nominee Director, Tamilnadu Industrial
Development Corporation Ltd has resigned as Director of the Company. 2008 -TIL ties up with Sankara
Nethralaya 2009 - Titan Industries Ltd has appointed Mrs. Anita Praveen, IAS, Chairperson & Managing
Director of Tamilnadu Industrial Development Corporation Ltd (TIDCO) as an Additional Director of the
Company with effect from June 01, 2009. 2010 -Titan Eye Plus launches world class Lens Manufacturing
unit ! -Fastrack, India's most popular fashion accessories brand, recently signed on Genelia D'souza to be
the face of the brand. The fashion brand lends its irreverent character to Genelia bringing out the edgy,
sexy side of the previously sweet & bubbly Genelia in the "Sweet No More" Sunglasses Campaign. -
Innovation School of Management receives the prestigious "Gold Award". -Tanishq was awarded the
World Brand Congress Global Awards for “Brand Leadership” in Durables Category. 2011 -Tanishq
wins the coveted "Effie Awards". -TITAN has been ranked 10th among 16,000 of the brands studied
across 9 cities in the "The Brand Trust Report, India Study, 2011". -Titan Industries Ltd. - Jewellery
Division has won 3rd position in the "Productivity championship award" for "Innovative diamond setting
process" at IMTMA National Productivity summit conducted by IMTMA in Bangalore on 13th Dec 2011. -
Titan Industries Limited and Brand Tanishq win 3 awards at the Star Retailer and Franchise Awards 2011.
-Titan Industries, jewellery division was awarded "Gold Award" in "Engineering sector" in the Economic
Times India Manufacturing Excellence Awards 2011 -Jewellery division of Titan Industries Limited has
been awarded the Golden Peacock Innovation award for the year 2010 in the Engineering sector. -
Company has splits its Face value of Shares from Rs 10 to Re 1 -Titan Industries has given the Bonus in
the Ratio of 1:1 2012 -Titan Industries Ltd won a total of 3 awards at the ET retail wards which was held
in Mumbai on the 18th of January 2012 -Titan Wins 2 awards at the 12th edition of Images fashion
awards night -Special brooches designed by Tanishq will be worn by the Head of States at the 4th BRICS
Summit. -Titan Industries Limited has been certified to " OHSAS 18001: 2007 " Management Systems. -
Titan Industries Ltd. was selected unanimously by the jury as the Best Governed Company 2012 by Asian
Centre for Corporate Governance & Sustainability -Titan Industries won the Client of the Year award at
the Campaign India Digital Media Awards 2012. -Special brooches designed by Tanishq will be worn by
the Head of States at the 4th BRICS Summit. -The Images fashion awards were held in Mumbai on 12th
March 2012 during the course of the 12th India Fashion Forum 2013 -Titan Industries Ltd. shall be
changed to Titan Company Ltd. 2014 -Titan Company has entered into a Joint Venture agreement with
Montblanc Services B.V. Netherlands for establishing operations in India for carrying on single brand
retail trade. -Titan Company Ltd which is engaged in manufacturing of watches/accessories, jewelry,
precision engineering and eyewear stated that their jewellery division has launched first Karigar centre
 for jewellery manufacturing in Hosur. 2015 -Titan Company Ltd - Titan adds one more feather to its
Manufacturing Excellence: Commences World Class Stainless Steel Case production in Coimbatore -
Maison Montblanc has entered into a partnership with Titan Company Ltd. -Titan Company Ltd and HP
has entered into a partnership -Titan Company Ltd Joint Venture with Montblanc Services B.V,
Netherlands - Continuous Disclosure 2016 -Titan Company announced a Voluntary Retirement Scheme
(VRS) for its employees, aiming to reduce head count in order to improve productivity. -Titan introduces
satellite lens manufacturing facility 2017 - Titan migrates Gold Plus network to Tanishq network
History of the Watch Market: The Indian watch industry began in the year 1961 with the commissioning
of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the
year 1962. HMT was the leader in the watch market till the Tata‟s formed Titan Watches in association
with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy
decision, which later changed the face of the Indian watch market- to manufacture only quartz watches.
Liberalization in 1992 and the removal of quantitative restrictions due to WTO has opened the doors for
many foreign brands in the Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many
others. The import duties on watches are falling which makes the Indian market look attractive for the
global majors like Casio, Swatch and Citizen. 16 Indian Watch industry: Figure 2. Porter‟s five forces
model SUPPLIER POWER No strong suppliers Lack bargaining power Rise of China, Taiwan as low cost
suppliers. DEGREE OF RIVALRY BARRIERS TO THREAT OF ENTRY Increased number of firms SUBSTITUTES
Cluttered Market Lack Low switching costs No close substitutes of Differentiation Strategic stakes are
high BUYER POWER Price sensitivity , Buyers‟ Preferences 1. Supplier Power: HMT has its own fully
integrated operation for production of its watches. Titan has its own production facilities for which it has
invested roughly 120 crore rupees over the years, the manufacturing capacity of which is 6 million units.
Also there has been a rise of low cost producers in China & Taiwan which has provided an opportunity
for watch makers to outsource watches at low cost, just as Titan has done to outsource the components
for Dash. Due to the large supply of watch movements available, there is little supplier power in the
watch market. 2. Buyer Power: The Indian watch buyers are very price sensitive, especially in the lower
end of the market. There is still a huge untapped market in India with market penetration of only 20
units per thousand people while the world average is more than 100. At the same time there are a
segment of people who are willing to pay a premium for watches with good performance and with a
recognized brand name. So understanding the buyers‟ preferences is very crucial in this industry in
order to gain a substantial market share. 3. Entry Barriers: 17 The Indian watch market in the recent
years has shown a dramatic increase in the number of brands available in the market due to removal of
quantitative restrictions. So the new entrant has to have an offering, which can be positioned and
differentiated from the other players in the market. This could be either price or functional or emotional
appeal. So the prime barrier for entry, in the current context, for a new entrant is to build a brand image
and price competitively. 4. Threat of Substitutes: There are no such substitutes to watch as a product.
However, in terms of the companies offering various variations for watches such as pendant watches
and jewellery watches, some sort of substitution has developed. Rich consumers prefer to purchase
watches more as a fashion accessory rather than simply for its typical use. 5. Degree of Rivalry: There
 are many companies in the Indian watch market; however, the product ranges offered by them are
manifold. This makes the competition very stiff. Also at the lower end of the market it is basically the
Value for Money, which differentiates the players. The strategic stakes for the producers are very high.
Titan Ltd., the largest company in terms of market share in the organized sector has faced losses in the
quarter ended June 2001 despite increase in the market share due to macroeconomic situation. HMT
faced a similar situation when Titan was introduced in the 1980s leading to a sharp fall in its market
share. 18 Present Situation Of The Indian Watch Market: The Indian watch market is today of 40 million
units, out which 60% is in the unorganized sector in which the maximum number of watches are sold are
below Rs.300. Quartz watches form two thirds of the organized sector and the rest is split between
mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes
from watches that are priced below Rs.1000. Plastic as such is not acceptable to average Indian
consumers, especially those from the small towns and rural areas who regard it as cheap and flimsy.
They want toughness-which translates into a good quality metal model at a reasonable price. Watch is
one of the consumer durables whose replacement rate is very high. The replacement rate of watch is
33.8 % (Source: India market demographics report, 1998). This is also due to the fact that the estimated
scrap rate of wrist watches is 7.8%, which is applicable after 6 years (Source: India market demographics
report, 1998). So due to high scrap rate, outdated models, and the shift from the mechanical watches to
the quartz watches is causing a very high replacement demand for watches. These along with the low
penetration levels represent the untapped market potential for watches in India. Major Brands In Indian
Watch Market: The major players in the Indian watch market include HMT, Titan and Timex. The other
players include Westar, Shivaki, Maxima, and SITCO. Foreign brands such as Cartier, Piaget, Omega,
Tiffany‟s and Corrum, Gucci, Longines, Casio, Citizen, Tag Heuer and Espirit are also making an inroad
into the Indian market. Titan has been consolidating its market share over the past decade. Timex
watches, which entered in India with collaboration with Titan, now independently has also gained
substantial market share. 19 Segmentation of Indian Watch Industry: Based on price 1. Mass (Rs.350-
600) 2. Popular (Rs.600-900), 3. Premium (Rs.900-1500), 4. Super-premium (Rs.1500-8000) 5.
Connoisseur segments (above Rs.8000) Based on user category 1. Men’s watches 2. Women’s watches
3. Youth watches 4. Kids watches 5. Sports watches 20 TITAN WATCHES: BRAND POSITIONING
STRATEGIES Overall strategies: Since its introduction, Titan has been positioned as a premium brand,
providing high quality products. With its numerous sub-brands catering to different segments, the
challenge that Titan faces is to create a strong brand image. It follows different positioning strategies;
these strategies can also be analyzed as given below: Attribute Positioning Strategies: When the
 company launched its products, it was the first to bring quartz watches to the Indian market. The
company successfully leveraged this to penetrate the market and gain 13.a market share. Raga,
Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate
wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power
dressing now has a new weapon! As Magic in gold and bicolour look, the 'Regalia' range represents the
essence of dress-wear. Raga has been differentiated and positioned as exclusive watches for women.
The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique.
User Positioning Strategies: Titan caters to several user groups- children (the Dash), sportspersons and
adventurers (PSI4000 and Fast track range). The Fast track range is seen as being contemporary, sturdy
and reliable. The advertising, packaging and merchandising of this range is young, vibrant and „cool‟
(the ad line says “Cool watches by Titan”) Benefit Positioning Strategies: The Fast track Digital range
offers the customer a functional watch that is also attractive. The digital watch has a “techno-geek”
image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness.
Competitor positioning Strategies: With the entry of several foreign watchmakers into the market, Titan
had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega,
Tissot, and Cartier etc. Titan already had the Tanishq brand in this segment. However, it has tried to
reposition this brand by increasing the price range to encourage more customers.
3.2: Industry overview
History of the Watch Market: The Indian watch industry began in the year 1961 with the commissioning
of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the
year 1962. HMT was the leader in the watch market till the Tata‟s formed Titan Watches in association
with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy
decision, which later changed the face of the Indian watch market- to manufacture only quartz watches.
Liberalization in 1992 and the removal of quantitative restrictions due to WTO has opened the doors for
many foreign brands in the Indian market viz. Tissot, Swatch, Omega, Rado, TAG Heuer, Rolex and many
others. The import duties on watches are falling which makes the Indian market look attractive for the
global majors like Casio, Swatch and Citizen.

The report titled 'India Watch Industry Outlook to 2018 - Premium Segment and Online Retail to Lead
the Growth' provides a comprehensive analysis of the various aspects such as market size,
segmentation, trends and developments and future projections of the mass, mid and premium price
wrist watches as key segments of the market. The report provides the market share of the major brands
and company profiles of key players/ brands in all the major segments (mid, affordable luxury, luxury
and super luxury) The report also covers the online watch industry and wall clock segment in India and
provides market size and future projections of economy, mid and premium price wall clocks as three
segments of the wall clock industry in the country.

The Indian watch market for timepieces has grown at a rapid pace in the past few years clocking a CAGR
of 9.3% for the period FY'2008-FY'2013. The market for timepieces includes wrist watches, table clocks,
alarm clocks and wall clocks. But the market for wrist watches formed the major proportion of the
market for time pieces with a contribution of about 89% in the total watch market in the country by
revenue while the market for wall clocks formed the rest of the market share of 11% in FY'2013.

The wristwatch market has grown in terms of value from INR 33,731.0 million in FY'2008 to INR ~ million
in FY'2013. The wrist watches market in India can be classified into three broad categories based on
price. The first is the mass price segment consisting of watches priced lower than INR 1,000 which are
mainly the wrist watches sold by the unorganized players. The second category is the mid price segment
of watches priced between INR 1,000 and INR 10,000. The third is the premium watch segment with
watches priced above INR 10,000.
In India, the mass segment of watches contributes the highest to the market in terms of volume. On the
other hand, in terms of value, each of the mass and the mid price segments contribute about 37%-38%
to the total wristwatch market in India. The rest is contributed by the premium segment which
constitutes around 25% of the INR ~ million wristwatch industry in India.

The premium wrist watch market has been the fastest growing segment in the Indian wrist watch
industry during FY'2008-FY'2013. As the size of the population with high disposable income has
increased significantly over the past years, the demand for luxury goods have substantially increased in
the country. The premium segment wristwatch market in India can be further subdivided into three
price categories. In value terms, the Affordable luxury wristwatch segment has the highest market share
of about 44% in the premium wristwatch market in India. The main consumers of this segment of
watches are the rising urban population with higher spending capacity. This segment is expected to
more than double from about ~ million in FY'2013 to about ~ million in FY'2018 by experiencing a high
growth at a CAGR of 23.3 % in the period FY'2014-FY'2018.

The luxury segment is the premium wrist watch segment which includes wrist watches priced between
INR 0.1 million and INR 1.0 million. Rolex is the leading brand in this segment and accounts for ~% of the
watch sales. This is followed by Swatch Group owned Omega which contributes ~% to the affordable
luxury segment. Rado again owned by Swatch Group is the fourth largest selling brand and accounts for
~% of the volume sales of the luxury watch segment in India. The super luxury segment is also expected
to experience a significant increase in the value on account of rise in the number of billionaires in the
country in coming years. This market is expected to grow at a CAGR of about 16.7% in the period
FY'2013-FY'2018. The market will grow from INR ~ million in FY'2014 to about INR ~ million in FY'2018.

The online retail in India has expanded tremendously in recent years. This growth has also been
witnessed in the wristwatch segment of the online retail. The primary reason behind the huge growth of
the online retail market for wrist watches is the huge increase in the number of internet users in the
country owing to the rising internet penetration. In FY'2013 the online retailer market for wrist watches
was characterized by a few e-commerce websites holding around 92.0% of the market share in the
online retail wristwatch segment. The market is majorly dominated by the five e-commerce players
 Snapdeal, Flipkart, Watchkart, Jabong and Myntra. The online retail market for wrist watches is
expected to clock a CAGR of 54.0% for the period FY'2013-FY'2018. The size of the wristwatch segment
of online retail is expected to grow from around INR ~ million in FY'2013 to about INR ~ million in
FY'2018.

The wall clock industry in India has grown from about INR 4,188.0 million in FY'2008 to INR ~ million in
FY'2013. The growth in market in the value terms is mainly driven by sales of the wall clocks brands such
as Ajanta, Sonera Industries, Opal, Sonam Quartz and Samay. The premium wall clock segment is the
fastest growing segment in the wall clock market in India and has grown at a CAGR of 12.3% in the
period FY'2008-FY'2013.

Key Topics Covered in the Report:

- The market size of the India watches industry by value.

- The market segmentation of the watches industry by wrist watches and wall clocks.

- The market size and future projections of the wrist watch market in India by value.

- Market segmentation of the wrist watch market on the basis of price.

- Market size and future projections of the mass, mid and premium price wrist watch segments.

- Market share of major players in the mass, mid and premium price wrist watch segments.

- Market shares of major players in affordable luxury segment and major brands in luxury and super
luxury premium watch segments on the basis of unit sales.

- Market share of major players in the overall India wrist watch market on the basis of revenue.

- Trends and developments in the wrist watch market in India.

- Market size and future projections of the wall clock industry in India by value.

- Market segmentation of the wall clock industry on the basis of price.

 Chapter 4

BRAND POSITIONING
STRATEGIES
4.1: OVER ALL STRATIGIES

Overall strategies:

Since its introduction, Titan has been positioned as a premium brand, providing high quality products.
With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create
a strong brand image. It follows different positioning strategies; these strategies can also be analyzed as
given below:

4.2: ATTRIBUTES STRATEGIES

Attribute Positioning Strategies:

When the company launched its products, it was the first to bring quartz watches to the Indian market.
The company successfully leveraged this to penetrate the market and gain 13.a market share. Raga,
Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate
wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power
dressing now has a new weapon! As Magic in gold and bicolour look, the 'Regalia' range represents the
essence of dress-wear. Raga has been differentiated and positioned as exclusive watches for women.
The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique.

4.3: USER POSITIONING

User Positioning Strategies:

Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and
Fast track range). The Fast track range is seen as being contemporary, sturdy and reliable. The
advertising, packaging and merchandising of this range is young, vibrant and „cool‟ (the ad line says
“Cool watches by Titan”)

4.4: BENEFIT POSITIONING

Benefit Positioning Strategies:

The Fast track Digital range offers the customer a functional watch that is also attractive. The digital
watch has a “techno-geek” image, but Titan seeks to differentiate its offering on the basis of superior
style and attractiveness.

4.5: COMPETITOR POSITIONING

Competitor positioning Strategies:

With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of
the entrants are catering to the upper end of the market- Omega, Tissot, and Cartier etc. Titan already
had the Tanishq brand in this segment. However, it has tried to reposition this brand by increasing the
price range to encourage more customers.

4.6: QUALITY&PRICE POSITIONING

Quality & Price Positioning Strategies:

In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is
positioning itself as „value- for- money‟: reasonably priced (less than Swiss watches and higher than
Japanese), attractively styled and of good quality. In Indian market, Sonata is a perfect example of Price
positioning, titan came up with this segment when it was facing heavy competition from lower end
segment.
 Chapter 5

BRAND REPOSITIONING
STRATEGIES
4.1: Top 10 automobile manufacturers in India

-1 Tata Motors Ltd.

2 Mahindra & Mahindra Ltd.

3 Maruti Suzuki India Ltd.

4 Hero MotoCorp Ltd.

5 Bajaj Auto Ltd.

6 Ashok Leyland Co.

7 Sundaram Clayton Ltd.

8 TVS Motor Company Ltd.

9 Eicher Motors Ltd.

10 Force Motors Ltd.

5.1: NEW LOGO &TAGLINE

New Logo & Tagline – “Be More‟‟

Titan Industries decided to revamp its flagship watch brand, Titan, with the intention of making it more
youthful and relevant to the changing times. The brand, launched more than 24 years ago, has
undergone a major repositioning exercise only once before – five years ago, when Hindi film actor Aamir
Khan was appointed brand ambassador. What followed later was the „What‟s Your Style?‟ campaign,
which tried to increase watch consumption per person, by suggesting the use of different watches for
different occasions.

5.2: BEYOND STYLE

Beyond Style

Now Titan wants to move from style statements to personality statements. According to Harish Bhatt,
chief operating officer, watches, Titan Industries, a watch ought to denote the wearer‟s mood and
personality. “With the explosion of options in a person‟s life, our core consumer is changing. And to
keep up with them, Titan has evolved too,” he says. On the adoption of „Be More‟, Bhatt says that that
statement is supposed to denote the aspirations of consumers to make more of their lives and be
whatever they want to be. “The watch allows for such imaginative travels,” he says.

Titan’s agency, Ogilvy India, has devised a campaign featuring Aamir Khan that encourages people to
find a new strand of their personality every day. It all started with a logo change a few months ago (the
same font in a red and white combination), followed by a campaign rolled out now.

The ad film opens on a shot of Aamir Khan sitting alone on a roller coaster, stating, „Be born every day‟.
Next, he is seen chasing the shadow of an aircraft on a beach, then, sitting beside 23 a truck driver, in
the middle of nowhere, with a trail of chassis trucks behind him. Here, he asks the viewers to try the
adventure of getting off at an unknown station, of exploring unknown lands.

As he crashes his vehicle while go-karting, Khan waves to the others around him, while his voiceover
explains the importance of making one’s own mistakes. Further on, he talks of not making your passport
photos last longer than three months – you need to constantly reinvent yourself and adopt a new look
every day (cut to shots of Khan’s varied hairstyles and looks in his movies, shown in an ambient way
through posters and T-shirts).

“Shock your reflection!” says Khan, as we see him with funny accessories framing his face. The next
vignette has him practicing meditation while slyly checking out a girl walking past („Explore‟). Cut to a
shot of children, with Khan explaining how we aspired to be different people as kids – “let’s revive that
aspiration today”. Wearing amour (sword and all), Khan Reiterates, „Be Born, Every Day. Titan. Be
More‟.

Malvika Mehra, group creative director, Ogilvy & Mather Bangalore, says, “„Be More‟ pushes people to
live many lives in one. We want to trigger people into questioning, „Why should we be single minded
and boring? Time to be multi-faceted, just like Titan!”

Khan fit the bill as Ogilvy borrowed from his own life and work and his need to constantly experiment
and reinvent himself. “Be it Mangal Pandey or Lagaan or Dil Chahta Hai, Aamir always manages to look
different in every role,” explains Mehra. “So we showed him doing things that were spontaneous, such
as exploring places or go-karting.” The idea, simply put, is to live life to the fullest – with Titan being the
instrument of such expressive liberation.

5.3: THE AD MAKING

The Ad Making – Aamir Khan:

The ad was directed by Prasoon Pandey of Corcoise Films; this is Pandey’s third Titan film, the earlier
two involved Khan and his assistant, played by the late Vihang Nayak. The first film had Khan confused
about which watch to match with each outfit he’s packing before a trip, while the second film showed
him delighting a girl in a mall with a watch. “This third film has a much stronger script than those two,”
shrugs Pandey. “It’s about bringing a mindset onto the screen with a better celeb-brand marriage.”

Shot entirely in Chennai, the film has been shot in a way that suggests that multiple locations were used
for the shoot, as opposed to one city. “We had fast paced shots to spread the look of the film,” says
Pandey. When asked why Chennai, he quips, “Because it was Raining in Mumbai then!”

Several layers were added to the film. To show the aspirations of children, a young girl was shown
staring at an object and, later in the frame, you see the object is a butterfly – the girl wants to fly.

“Kids are freer in their thinking than adults and we hope this has been portrayed,” Pandey says. Even the
last frame of the ad, which has Khan dressed as a mock warrior (with an impromptu utensil serving as
his helmet), was made to look like the man had made use of things lying nearby in a spontaneous way.

Titan Raga Signs Katrina Kaif As Brand Ambassador 2012:

September 20th, 2011:

Aiming to widen its appeal amongst Indian women, Titan, India’s most preferred watch brand, today
announced their association with Bollywood’s most beautiful and charming Diva, Katrina Kaif. Ms. Kaif
has been signed as the brand ambassador for their exclusive women’s watch brand, Titan Raga.

Incepted in the year 1992, Titan Raga has won the hearts of millions. Designed exclusively for women,
these exquisite and elegant timepieces perfectly capture the essence of beauty, femininity and
sensuality. The brand has grown over a period of time in sync with the evolving tastes of the
contemporary Indian woman.
Mr. Ajoy Chawla commenting on the brand said, “Driven by continuous launch of new designs and
collections, Raga has witnessed a 27% CAGR in the last 5 years and will be Rs.400 crore brands this year!
However, the potential in the women’s segment is still huge as watch penetration even amongst SEC
A/B women is still very low. A brand ambassador will help to make the watch a desirable accessory
amongst women.

” Further talking on their association with Katrina, Mr. Chawla said, “Titan Raga stands for beauty,
femininity and sensuous self expression. While embodying these core values, Katrina also symbolizes the
changing face of the successful, graceful and contemporary Indian woman.

Talking about her association with the brand Katrina Kaif said, “(Smiles) Titan needs no introduction,
this vibrant and „up-to-the-minute‟ brand has been touching our daily lives in the most beautiful way
possible. It gives me immense pleasure and satisfaction to be associated with the most popular and only
women’s watch brand in the country. Besides being a timekeeper that helps me keep up with my busy
schedules, it also adds to my style quotient. I feel watch designs from Titan Raga are truly exclusive and
contemporary. I am really looking forward to the exciting days ahead with the iconic brand “Raga”,
which embodies beauty, sensuality and femininity with great creativity.

” As a brand ambassador of Titan Raga, the renowned actress will play a key role in shaping brand
communication on television, print, outdoor and other media.

5.4: NEW COLLECTION &DESIGN

New Collections and Designs:

1. Sonata’s sub-brand:
Sonata has launched the Yuva 2008 collection, a series of colourful watches. They are available in
both casual and formal styles to complement the young, new look for college or office wear. The
collection has watches for both men and women at price s starting at Rs 645. They are available in
both gold and steel looks, with both metal and leather straps. Sonata, the watch brand from the
Tata’s, launched the Super Fiber, targeted at the sub-Rs 500 market in urban, semi-urban and rural
India.
The watches have been designed primarily for youth in the 16-30 age group, and will be available in
a price range of Rs 275 to Rs 550. The tag line for this sub-brand is „Super Strong, Super Style.”
 The company announced 360-degree marketing campaign for the new offerings. It also unveiled its
TV commercial featuring Indian player Mahendra Singh Dhoni, “in a brand new avatar”.

2. Titan Raga – Hazel Collection

Titan Raga has launched the Hazel collection, inspired by the hues of nature. Priced between
Rs.2195 and Rs.4000, this range comprises five styles with versions in gold, steel and bi-metal finish.
They are available as bracelets and kadas with textured or patterned look and motherof-pearl dials.

3. Octane Titan has launched the Octane collection of chronograph, multifunction and retrograde
watches for the urban man. The range is described as blending style and technology. The collection
has over 35 styles and is priced between Rs. 5,000 and Rs 7,500.

4. Nebula Celeste It is a limited edition collection of jewellery timepieces. They are crafted in 18k
white and yellow gold. Prices range from Rs.6 lakhs to Rs.12 lakhs.

5. Raga Crystals Titan Industries Ltd has unveiled its new Raga Crystals collection of watches in
Kerala. The two new watches, called Venus and Fairy Dust, are available in yellow metal and bi-
metal versions. Venus is priced at Rs.4450 and Fairy Dust at Rs.4750.

6. Titan Stambha A new ladies Heritage wrist watch ‘Stambha’ signifying fame, prosperity and good
luck was unveiled as part of Heritage collection. Mr.Vijesh Rajan, Regional Sales Manager (South),
launching the watch collection, said that plans are on the anvil to launch one new collection every
month, reflecting the 3000-year old art and cultural history of the country. A sale of around 7,500
watches has been fixed as a target for this financial year in the Heritage collection, he added. The
prices in the collection range between Rs.5000 and Rs.10000.

7. Nebula Zeus 28 It is a mechanical automatic watch in solid gold for men. Priced at Rs.1,10,000,
the limited edition watch (500 pieces) harks back to an older era of luxury and romance. The Nebula
Zeus watch has been crafted using Swiss made mechanical automatic movement with gold finish
and a sapphire crystal back cover. Other features include an instant start, a second hand stop device
for accurate time setting; 42 hours reserve powers and auto wind convenience. The watch
collection was launched by singer and actor, Vasundhara Das.

8. Raga Shimmer It comprises of a collection of exquisitely designed studded watches that

complement both Indian-wear as well as Western-wear. Priced between Rs.2995 and Rs.4495, the
new collection comprises watches in gold, steel and bi-metal finishes.

9. Raga Diva An exquisite range of watches for women in the Kerala market. Inspired by traditional
Kundan work, this collection has been rendered in a delightfully contemporary form. It is priced
between Rs.4000 and Rs.10000.

10. Titan Nebula – Duet Collection Titan Nebula, the premium 18K gold watch brand from Titan,
today launched the Duet collection – three pairs of specially crafted gold watches for the wedding
season. The most premium collection for this wedding season was unveiled by popular actor Gul
Panag.
 Chapter 6

OTHER STRATEGIES
Titan is also trying to reach new customer segments. They are now trying to target all adults

in socio economic classes A&B.

Titan is also looking at innovative retail strategies and planned to launch ten innovative

product collections soon.

6.1: MARKET SHARE OF COMPETITOR IN DOMESTIC MARKET

Market share of the Competitor in Domestic Market:

Competitor in Domestic Market Market Share

HMT 19%

Maxima 13%

Rado 7%

Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides watches

for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy young,

Dash for the kids, and the higher priced Regalia and Nebula to the premium segment customer.

The Indian watch market is estimated at 25 million watches a year, where the domestic sale is

6 million watches per annum. The rural segment is the diverse market in the present scenario.

The key success story of Titan is capturing the rural market on a large scale. The range cost is

between Rs.495 to Rs.1200. And the model is available exclusively in all showrooms and is

sold mainly in small-town in India.

Though, The Company faced enormous challenges from its big list of competitor, the company

still in the number one position in domestic market because of the weakness of the competitor.
The company becomes more reliable and more acceptances to the consumer because of its

marketing mix. The company has adopted the new marketing innovation to improve the feature

of the product by time to time.

Though the current financial environment is not in favor, but the company performing well

and saw an increasing trend in the profit chart.

The company trying hard to convert its weakness into strengths and threats into strengths and

threats into opportunities by bring revolution in the product style, model, features, pricing

policy, product quality, etc.

Companies certain initiatives and policy such as new innovative design, guarantee, the research

and development, wide dealer network, committed service team, discount and offers make the

company.

6.2: FIND OUT THE BRAND PREFERENCE FOR WATCHES

TO FIND OUT THE BRAND PREFERENCE FOR WATCHES

Environment Analysis:

A. The Marketing Environment:

Competitive Forces

There are lots of competitor in wrist watch segment which directly or in directly affecting the

titan watches industry. The major players‟ are-

Domestic Level:

· HMT

· Maxima-quartz

· Rado

· Casio

International level:

· Espirt

· Swatch

· Citizen

· Seiko

Fashion Houses:

· Dkny

· Gucci

· Adidas

· Nike

Among all these competitors, Maxima-quartz and HMT are major players. The strength and

weakness of the companies varies from segment to segment

Industry’s Role

As there have many competitor exists in this Industry, the competition is too much. Whenever

any company bring changes in its marketing mix, all the companies also implement changes in

their marketing mix to sustain in the competition. By that the structure of whole industry is
changing and affects the competitive forces in the Industry.

Economic forces

Economic landscape:

Indian corporate sector is nervous because of current Inflation. This problem occurred not

only in India, but it affected all the countries due to United State financial crisis.

As we came to know from Federation of Indian Chamber of Commerce and Industry

(FICCI) that 64% of the 413 companies are running currently in worst condition from last 6

months.

Consumers view:

As we know that Inflation is in double digit figures, but the people who lives in urban area

or metro city, are having optimistic view towards economy.

People think that the economic condition of our country will be improved in the near future.

Purchasing power of consumers:

Brand Name Purchasing Power(Price) Category

RS. Fast Track 550-1,430 Youth

Exacta 595-1,430 Lower Middle Class

(Office Wear)

Spectra 650-1,830 Common Class

Royal 960-2,830 Upper Middle Class

Raga 1,420-4,000 Upper Class

Bandhan 1,675-8,085 Couples

Regalia 1,725-7770 Upper Middle Class

Edge 4,500-5,200 Business Class

Nebula 10,000-45,000 Upper Class

The company’s watch sales grew by 18.8 per cent and its income increasing from Rs255.34

crores during the second quarter of last year to Rs303.45 crores during the second quarter of

this year. On the basis of the above table and profit figure we easily understand consumer

buying power in target market.

Spending habit of consumers:

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of

Titan Industries doing well in the current fiscal. For these, watch segment sales income

increased from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during

the corresponding period this year. These data indicate that consumer’s spending pattern is

increasing respective target market.

From the above information we can easily understand that consumers buying more of Titan

wristwatch. There are few reasons behind the growth in sales of Titan.They is as follow.

Brand name

Quality of the products

Features, which differentiate from others

Attractive models

New innovation

Political Forces:
Political landscape:

In 2004 /05 the new Government came through election in India.

Our new Government took lots of steps to make the global relation as well as some steps to

develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve

ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get

sustain in the market.

As all the steps help the Titan industry to compete in the watch industry. The performance of

this sector for last few years are-

Relation with political officials:

As we all know that TATA group is the one of reputed companies in the world, it really helps

the country development.

Moreover, the companies always want to make good relation with the political parties, because

we know that India is a democratic country which is it- self elected by the people the country.

Legal and regulatory forces

As the titan industries operates their business in the global area, they have to follow lots of

regulatory norms.

The industry can be directly affected by the certain rules such as change in Taxation rate.

Technological Forces:
Impact of Technology:

Changing in technology always play a great role in the target market. Titan decided to

manufacture only QUERTZ (Analog and digital) and not mechanical and they would start plant

to manufacture watches in wide variety in design and prices.

Titan changes the technology in that ways which help in enhance the quality and the features

to increase buyers‟ value. Titan gets advantages in the target market through innovative

technology.

As there is too much competition, if Titan not accept the changes in technology then they can’t

sustain in the market. In premium segment, competitor will capture whole market by improve

technology. And in the mid-price segment, other companies will give a tough competition to

titan.

Technological changes:

The new marketing innovation can bring a drastically changes in the marketing activities of the

company. The new innovations which can differentiate the company from the competitor are

Implementation of Heart-beat checking system in wrist watch.

Implementation of Blood pressure checking system in the wristwatch

Some companies can come with the watches which help in knowing the mood of the person.

Socio cultural forces

Tata believes that improve the quality of the life of people and the employee is the primary
purpose of their business. It uses its resources in the best possible way. They also takes some

reasonably steps to improve the quality of life of the people of the areas in which they operates.

Tata adopt the corporate citizenship index, tata business excellence model and tata index for

sustainable development which reflect its commitment to its corporate social responsibility

(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives

These CSR initiatives are spread across three core areas, such as employee welfare, the

environment and the welfare of the community at large.

TARGET MARKET

Identification

The titan industry basically deals in three segments for its watches. They were as follow.

High income/elite consumers

In this segment mainly the consumer who buys a wrist watch as a fashion accessory.

Middle group:

In this segment mainly consumers are like some fashion in their watches. These consumers

would not purchase a watch without comparing various offers in the market.

Lower-income people: this segment mainly consisted of lower- income consumers who want

watch mainly as the time –keeping device and purchase on the basis of price

Media No. Of respondents

T V 46

Magazines 25

Newspapers 36
Hoardings 15

Radio 4
 Chapter 7

MARKETING MIX
Definition: The marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market. The 4Ps make up a typical marketing mix - Price,
Product, Promotion and Place. However, nowadays, the marketing mix increasingly includes
several other Ps like Packaging, Positioning, People and even Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production, segment
targeted, ability of the market to pay, supply - demand and a host of other direct and indirect
factors. There can be several types of pricing strategies, each tied in with an overall business
plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a
product.

Product: refers to the item actually being sold. The product must deliver a minimum level of
performance; otherwise even the best work on the other elements of the marketing mix won't do
any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer and
making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers
pay a premium for the right location. In fact, the mantra of a successful retail business is
'location, location, location'.

Promotion: this refers to all the activities undertaken to make the product or service known to
the user and trade. This can include advertising, word of mouth, press reports, incentives,
commissions and awards to the trade. It can also include consumer schemes, direct marketing,
contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the business plan for
a company and handled right, can give it great success. But handled wrong and the business
could take years to recover. The marketing mix needs a lot of understanding, market research
and consultation with several people, from users to trade to manufacturing and several others.

· PRICE

· PRODUCT
· PROMOTION

· PLACE

7.1: PRICE

1. PRICE:

As achieve our marketing our marketing objectives, we can do some change in the pricing.

The main consideration will be in changing price are followings.

Survival:

In case of some of the watches titan prices them according to the features .The Exacta is a

simple steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga

through pricing policy.

Market share:

As we know that 70% of sales in watches come from the lower segment, therefore by pricing

Sonata at 350 onwards with guarantee. Titan prices its world watches which compared equal

to the international players like Calvin Klein where a customer pays 4 times as value of the

world watch, therefore market with low prices to international players to gain market share.

Market Skimming:

In Indian watch industry there is no one offering pure gold watches, watches in pair Jewellery

watches. Here Titan offers their product with the Indian touch in its design, the product, the

love.

7.2: PRODUCT

2. PRODUCT:
Quality and leadership are the two main terms for the Titan. As to achieve the marketing

objectives, these aspects should also be considered.

Product line:

To increase the sales, the differences in the prices of the watches are justified by the features.

Product pyramid:

Portfolio of Titan’s product is of 3 distinct price-range that can be defined in general, as Popular,

Mid, and Premium. At the popular segment, the emphasis is on in volumes but not in margins. At

the premium segment, the emphasis is on profits and image but not in volumes. Obviously,

company giving more emphasis at the top of the pyramid as profits at the top of the pyramid is

very high. This pyramid guided the strategy of Titan.

Product strategy:

Titan was first focused only on the premium segment of the watch market. As per the product

strategy they took, Titan moved in to the mass market for watches. To widen base, Titan created

new segments and increasingly focusing on segments individually. In the past few years Titan has

took a lot of initiatives to focused on specific segments.

Product Quality:

Quality and leadership are synonymous to Titan. It seeks to achieve both through their value for

products compared to their prices.

7.3: PROMOTION

3. PROMOTION:

Promotional pricing:

A. Marketing pricing:

As by opening new shops such as the world of Titan – buy directly from the dealer and hence the

element of middleman is not there.

Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they are

able to get the 17% profit margin on sales.

It is managing to successfully convince to the customer of the perceived value of „WORLD

WATCH‟ using hoarding all around the city, increasing buyer image, trust worthiness, innovation,

differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the MRP of

the watches. The allowance varies from one segment to another.

a) Creative advertising: Titan introduces a contest on cartoon network in india.com

which invites children to use creativity and design watch.

The prize winning design was launched as a new watch in summer 2002 collection.

Type of advertising: Titan believes in making its ads clean, well made, touch on emotional chord.

As the company is using celebrities or superstars that is Amir Khan for the Titan watches.

b) Promotion on occasion: Titan is one of the company which formally believes in the

policy of promotion the product based on the occasions.

7.4: PLACE

4. PLACE:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute its product

and set up „world of titan‟ in different region. The consumer‟s life style in India, especially in

urban area (because the turnover in urban area is 210 million, while the turnover in rural area is 90

million) plays a significant role in the success of Titan.

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 and also efficient after-sales service. These

1142 Time Zones located across 89 towns which offer its customer the complete watch shopping

experience.

Value Mart:

These outlets sell surplus stocks of Titan watches at reduced prices. By doing these it offering

fabulous value for money with the same warranty as a regular full-priced watch enjoy. However

these shops would not be placed in the main locations and not working as a 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 Stores:

A Sonata store is also an Authorized Service Centre for Sonata & Titan brands. Sonata store meet

the large scale demand for the watch and also to attract customers in more. These shops had full

stocks of the watch in demand whereas the others could afford to maintain only limited stock.
 Chapter 8

Consumer behavior
 Buyer decision process (or customer buying process) helps markets to identify
how consumers complete the journey from knowing about a product to
making the purchase decision.

Understanding the customer’s buying process is essential for marketing and

sales.

The buyer decision process will enable to set a marketing plan that convinces
them to purchase the product or service for fulfilling the buyer’s or consumer’s
problem.

Consumers go through 5 stages in taking the decision to purchase any goods

or services.

1. Problem Recognition.

2. Information Search.

3. Evaluation of Alternatives.
4. Purchase Decision.

5. Post-Purchase Evaluation.

When making a purchase, the buyer goes through a decision process

consisting of 5 stages.

Clearly, the buying process starts long before the actual purchase and
continues long after.

The marketer’s job is to understand the buyer’s behavior at each stage and
the influences that are operating. The figure implies that consumers pass
through all five Stages with every purchase.

Let’s explain all 5 stages of the buyer decision process.

Need or Problem Recognition

During need or problem recognition, the consumer recognizes a problem or
need that could be satisfied by a product or service in the market.

Problem Recognition is the first stage of the buyer decision process.

At this stage, the consumer recognizes a need or problem. The buyer feels a
difference between his or her actual state and some desired state.

This could be a simple as “I’m hungry, I need food.”

The need may have been triggered by internal stimuli (such as hunger or
thirst) or external stimuli (such as advertising or word of mouth).

Information Search
Once the need is recognized, the consumer is aroused to seek more
information and moves into the information search stage.

The second stage of the purchasing process is searching for information.

 After the recognition of needs, the consumers try to find goods for satisfying
such needs. They search for information about the goods they want.

Consumers can get information about goods from different sources.

 Personal sources: This includes family, friends, neighbors, acquaintance, etc.

 Commercial source: This includes advertising, salespeople, dealers,

packaging, display, etc.

 Public sources: This includes mass media, consumer rating organizations, etc.
they also become confidential to provide information.

 Experimental sources: This includes handling, examining, using, etc. Such

information becomes decisive and confidential.

Evaluation of Alternatives
With the information in hand, the consumer proceeds to alternative
evaluation, during which the information is used to evaluate” brands in the
choice set.

Evaluation of alternatives is the third stage of the buying process. Various

points of information collected from different sources are used in evaluating
different alternatives and their attractiveness.

While evaluating goods and services, different consumers use different bases.

Generally, the consumers evaluate the alternatives on the basis of attributes of

the product, the degree of importance, belief in the brand, satisfaction, etc. to
choose correctly.

Purchase Decision
After the alternatives have been evaluated, consumers take the decision to
purchase products and services. They decide to buy the best brand.
But their decision is influenced by others’ attitudes and situational factors

5. Post-Purchase Evaluation
In the final stage of the buyer decision process, postpurchase behavior, the
consumer takes action based on satisfaction or dissatisfaction.

In this stage, the consumer determines if they are satisfied or dissatisfied with
the purchasing outcome. Here is where cognitive dissonance occurs, “Did I
make the right decision.”

Consumers go through the 5 stages of the buyer decision process in taking

the decision to purchase any goods or services.
8.1 CULTURAL FACTOR

Cultural Factors:
There is a subtle influence of cultural factors on a consumer’s decision
process. Consumers live in a complex social and cultural environment.
The types of products and services they buy can be influenced by the
overall cultural context in which they grow up to become individuals.
Cultural factors includes race and religion, tradition, caste and moral
values. Culture also includes subcultures, sub-castes, religious sects
and languages.

1. Culture:
It influences consumer behaviour to a great extent. Cultural values
and elements are passed from one generation to another through
family, educational institutions, religious bodies and social
environment. The cultural diversity influences food habits, clothing,
customs and traditions. For example, consuming alcohol and meat in
certain religious communities is not restricted, but in certain
communities, consumption of alcohol and meat is prohibited.

2. Subculture:
Each culture consists of smaller subcultures that provide specific
identity to its members. Subcultures include sub-castes, religious sects
(Roman Catholics, Syrian Catholics, Protestant Christians, etc.),
geographic regions (South Indians, North Indians) and language
(Marathi, Malayali, Gujarati).

The behaviour of people belonging to various subcultures is different.

Therefore, marketers may adopt multicultural marketing approaches,
that is, designing and marketing goods and services that cater to the
tastes and preferences of the consumers belonging to different
subcultures.

Every group or society has a culture, and cultural influences on buying behavior may vary greatly from
place to place. Failure to adjust to these differences can result in ineffective marketing or embarrassing
mistakes. International and National marketers must understand the culture in each of their markets
and adapt their marketing strategies accordingly. Marketers are always trying to find cultural shifts in
order to discover new products that might be wanted. For example, the cultural shift toward greater
concern about health and fitness has created a huge industry for exercise equipment and clothing, low-
fat and more natural foods, and health and fitness services. The shift toward informality has resulted in
more demand for casual clothing and simpler home furnishings. The increased desire for leisure time
has resulted in more demand for convenience products and services, such as microwave ovens and fast
food.

Culture can be acquired from the family, from the region or from all that has been around us while we
were growing up and learning the ways of the world. Culture forms a boundary within which an
individual thinks and acts. When one thinks and acts beyond these boundaries, he is adopting a
crosscultural behaviour and there are cross-cultural influences as well. The nature of cultural influences
is such that we are seldom aware of them. One feels, behaves, and thinks like the other members of the
same culture. It is all pervasive and is present everywhere. Norms are the boundaries that culture sets
on the behaviour. Norms are derived from cultural values, which are widely held beliefs that specify
what is desirable and what is not. Most individuals obey norms because it is natural to obey them.
Culture outlines many business norms, family norms, behaviour norms, etc. How we greet people,

how close one should stand to others while conducting business, the dress we wear and any other
patterns of behaviour. Generally, how we perceive things, how we think, how we believe, are
determined by our cultural environment and by the different people with whom we interrelate.

In an attempt to explain how a societal culture influences consumers’ buying behaviour Hofstede (1980)
came up with a useful cultural dimension. He saw culture as the interactive aggregate of common
characteristics that influence a group’s response to its environment. His cultural dimensions according
to (Nokata and Silva Kumar, 2000) serve as the most influential culture theory among social science
research. (Sondergaard, 2001) added that these cultural framework has received strong empirical
support Hofstede (1980) separated cultures on the basis of the following dimensions: Masculinity-
feminity, Power distance, uncertainty avoidance and Individualism-collectivism. By Individualism-
collectivism, He refers to the basic level of behaviour regulation, whether by individuals or groups.
People high on individualism view self and immediate family as relatively more important than the
collective. He defines collectivism as a social pattern that consists of individuals who see themselves as
an integral part of one or more collectives or in-groups, such as family and coworkers or settlement.
People who are more collectivist are often motivated by norms and duties imposed by the in-group,
they give priority to the goals of the in-group and try to emphasize connectedness with the in-group.
These social patterns are expected to influence buying behaviour through their affect on a person’s self-
identify, responsiveness to normative influences, and the need (or lack of need) to suppress internal
beliefs in order to act appropriately.

The ability to focus on group preferences and group harmony in collectivist cultures leads to an ability
to repress internal (personal) attributes in certain settings. Accordingly, people in collectivist cultures
often shift their behaviour depending on the context of what is “right” Among collectivist a person is
generally seen as more mature when he/she puts personal feelings aside and acts in a socially
appropriate manner rather than in a way consistent with personal attitudes and beliefs This pattern is
likely to affect the buying behaviour of clothes. (Triandis, 1995). In individualist cultures, for instance,
people would often ignore the potential negative consequences of their buying and consumption
behaviour, preferring to focus on the positive consequences of their actions and on their own feelings
and goals. This may not be true for people from collectivist cultures, which are more likely to focus on
the potential negative consequences of their behaviour and the effect of their actions on in-group
members.

Empirical research on the influence of culture on consumer buying behaviour, conducted by Kacea and
Lee (2002) revealed that there is a powerful and consistent influence of culture at both ethnicity level
and the individual level. The study added that among many aspects of consumer buying behaviour
which cultural factors moderate include self-identity, normative influences, the suppression of emotion,
and the post pavement of instant gratification. The study was based on individualism collectivism as
cultural dimension. Highly individualist countries such as U.S.A. and Australia and highly collectivist
countries such as Malaysia and Hong Kong were examined. It was concluded that although collectivists
posses the buying tendencies in equal measure with the individualists, they suppress the negative
tendencies and act in manner that is consistent with cultural norms, beliefs and values, in this case
reducing their purchases for self fulfillment, which has been characterized as highly individualistic
behaviour.

Other specific cultural-dimensions that make culture a powerful force in determining consumer buying
behaviour according to Hofstede (1980) are the masculinity/ feminity, power distance, uncertainty
avoidance and long term orientation dimensions. Power distance represents the extent to which formal
authority is adhered to and the degree to which the lesser powerful accept the prevailing standard in
the society. High power distance cultures have members who are much more comfortable with those at
the top and often being influenced to behave in certain conforming manners. Uncertainty avoidance
refers to how much people in a given society feel threatened by ambiguity, and orientation low on
uncertainty avoidance prefer situations that are free and not bound by rules and regulations governing
their behaviours short term orientation involves the tendency toward consumption and maintaining
materialistic status Feminity versus masculinity deals with different cultural beliefs held by male and
female in a particular society (Pavlov and Chai, 2002).

8.2 SOCIAL FACTOR

Social Factors:The social factors such as reference groups family, and

social status affects the buying behaviour. Social factors in turn reflect
a constant and dynamic influx through which individuals learn
different meanings of consumption.

1 Reference groups:

A reference group is a small group of people such as colleagues at

workplace, club members, friends circle, neighbours, family members,
and so on.
The reference groups influence the members in following
manner:
a. They influence members’ values and attitudes.

b. They expose members to new behaviours and lifestyles.

c. They create pressure to choose certain products or brands.

2. Family:
The family is the main reference group that may influence the
consumer behaviour. Nowadays, children are well informed about
goods and services through media or friends circle, and other sources.
Therefore, they influence considerably in the decisions of buying both
fast moving consumer goods and durable items.

3. Roles and status:

A person performs certain roles in a particular group such as family,
club, organization, and so on. For example, a person may perform the
role of a vice president in a firm and another person may perform the
role of a marketing manager.

The vice president may enjoy higher status in the organization as

compared to the marketing manager. People may purchase the
products that conform to their roles and status, especially in the case
of branded clothes, luxury watches, luxury cars, and so on.

8.3 PERSONAL FACTOR

The personal factors such as age, occupation, lifestyle, social and economic status and the gender of a

consumer may affect the buying decisions of the consumers individually or collectively.
1. Age factor:

The age factor greatly influences the buying behaviour. For example, teenagers prefer trendy clothes,

whereas office executives prefer sober and formal clothing.

2. Gender:

The consumer behaviour varies across gender. For example, girls prefer certain feminine colours such as

pink, purple and peach, whereas boys go for blue, black and brown.

3. Education:

Highly educated persons may spend on books, personal care products, and so on. But a person with low

or no education may spend less on books and more on personal grooming products.

4. Income level:

Normally, the higher the income level, the higher is the level of spending and vice versa. But this may not

be the case in developing countries, especially in the rural areas.

5. Status in the society:

Persons enjoying higher status in the society spend a good amount of money on luxury items such as

luxury cars, luxury watches, premium brands of clothing, jewellery and perfumes.

8.4 PSYCOLOGICAL FACTOR

A person’s buying behaviour is influenced by the psychological factors such as the following:
1. Learning:

It refers to changes in individual behaviour that are caused by information and experience. For example,

when a customer buys a new brand of apparels, and is satisfied by its use, then they are more likely to buy

the same brand the next time. Through learning, people acquire beliefs and attitudes, which in turn

influence the buying behaviour.

2. Attitude:

It is human tendency to respond in a given manner to a particular situation or object or idea. Consumers

may develop a positive, or a negative, or a neutral attitude towards certain products or brands, which in

turn affects their buying behaviour.

3. Motives:

A motive is the inner drive that motivates a person to act or behave in a certain manner. A marketer must

identify the buying motives of the target customers and influence them to act positively towards the

marketed products.

Some of the buying motives include the following factors:

a. Pride and possession

b. Love and affection

c. Comfort and convenience

d. Sex and romance

4. Beliefs:

A belief is a descriptive thought that a person holds about certain things. It may be based on knowledge,

opinion, faith, trust and confidence. People may hold certain beliefs of certain brands/products. Beliefs

develop brand images, which in turn can affect the buying behaviour.
 Chapter 9

NEED ANALYSIS
9.1 CONSUMER NEED

1. Functionality

Customers need your product or service to function the way they need in
order to solve their problem or desire.

2. Price

Customers have unique budgets with which they can purchase a product or
service.

3. Convenience

Your product or service needs to be a convenient solution to the function your

customers are trying to meet.

4. Experience

The experience using your product or service needs to be easy -- or at least

clear -- so as not to create more work for your customers.

5. Design

Along the lines of experience, the product or service needs a slick design to
make it relatively easy and intuitive to use.

6. Reliability

The product or service needs to reliably function as advertised every time the
customer wants to use it.

7. Performance

The product or service needs to perform correctly so the customer can

achieve their goals.

8. Efficiency

The product or service needs to be efficient for the customer by streamlining

an otherwise time-consuming process.

9. Compatibility
The product or service needs to be compatible with other products your
customer is already using.
Service Needs
10. Empathy

When your customers get in touch with customer service, they want empathy
and understanding from the people assisting them.

11. Fairness

From pricing to terms of service to contract length, customers expect fairness

from a company.

12. Transparency

Customers expect transparency from a company they're doing business with.

Service outages, pricing changes, and things breaking happen, and
customers deserve openness from the businesses they give money to.

13. Control

Customers need to feel like they're in control of the business interaction from
start to finish and beyond, and customer empowerment shouldn't end with the
sale. Make it easy for them to return products, change subscriptions, adjust
terms, etc.

14. Options

Customers need options when they're getting ready to make a purchase from
a company. Offer a variety of product, subscription, and payment options to
provide that freedom of choice.

15. Information

Customers need information, from the moment they start interacting with your
brand to days and months after making a purchase. Business should invest in
educational blog content, instructional knowledge base content, and regular
communication so customers have the information they need to successfully
use a product or service.

16. Accessibility
Customers need to be able to access your service and support teams. This
means providing multiple channels for customer service. We'll talk a little more
about these options later.

9.2 CURRENT MARKETING OBJECTIVE & PERFORMANCE

Promote New Products or Services

If your upcoming plans include launching new offerings, your marketing objectives should include
promoting those new products and services.

Grow Digital Presence

If your brand doesn’t have a large footprint online, your marketing plans may be to start search
engine optimization (SEO) and grow your visibility in search engine rankings as well as social media
platforms.

Lead Generation

If your pipeline isn’t full, you may want to focus on lead generation tactics that grow your email list
and fill your client relationship management (CRM) system with qualified prospects.

Target New Customers

You may choose this goal if you already have a loyal client base but would like to expand out and
reach new audiences, customers, and clients.

Retain Existing Customers

Rather than focus on new customer acquisition, you may want to focus on keeping the existing
customers you already have.

Build Brand Awareness

If your brand is new or only known to a small audience, one of the marketing objectives to focus on
could be expanding your reach and getting more people to learn about your brand.

Develop Brand Loyalty

If audiences already know your brand, you may want to focus on building not just awareness, but a
deeper brand affinity and loyalty.

Increase Sales and/or Revenue

If you are selling products or services, you may want to focus on selling more of those offerings. This
is one of the marketing objectives that will increase revenue and the amount of money coming into
your business.

Increase Profit

This marketing objective is different from increasing sales and revenue, because you may increase
your profit through means other than selling more. This objective may include cutting expe nses and
overhead, selling more items that have higher margins, or other changes that increase profit (which
may not necessarily increase revenue).

Expand Into a New Market

If your brand is already well-known or successful in a specific industry or geographic area, you may
want to expand out into a new target market, vertical, or location.

Grow Market Share

Instead of growing into a new area, you may want to expand your footprint in your current market.
This objective helps you get more available customers in your industry or geographic location.

Build Industry Authority

Another way to grow your visibility in an industry is to become an expert in the field. You can focus
on establishing your brand as an authority in your vertical.

It may be tempting to look at this list and want to choose five, 10, or even all of the marketing
strategies. But it’s important to note you should keep your list of marketing objectives relatively
short. Take time to focus on two to three objectives at a time, and then create plans to revisit and
refocus on other goals at a later time.

How to Define Clear Marketing Objectives

Once you know which marketing objectives you want to focus on, it’s time to drill down into the
details of those goals.
It’s not enough to just outline the marketing goals you want to accomplish. You also need to validate
your plans and make sure they are practical, useful, and reasonable. You must check to see if your
objectives are SMART.

SMART marketing objectives are:

 Specific: The goals are clearly defined and outlined so the whole team understands the
objective and why it’s important.
 Measurable: The goals have key performance indicators (KPI) and benchmarks that allow
you to measure your success.
 Achievable: The goals are within the ability of your company and team. While you want to
set a high bar, you also need to remember to set goals within your means, so you don’t set
your team up for failure.
 Relevant: The goals are relevant to your brand mission and direction of your business. You
should have good reasons for each of your marketing objectives.
 Time-Bound: The goals need to have a timeline that indicates when the objectives begin and
end.

PERFORMANCE OF TITAN

Titan Company Ltd registers a profit growth of 31.4% in Ql. The first quarter of FY 2018-19 was an
extremely good quarter for Titan Company limited. The Company reported a growth of 31.4% in profit
before tax for the quarter. The sales income grew from RS.4002 crores last year to RS.4269 crores in Ql.
The profit before tax for the same period grew from RS.371 crores to Rs.487 crores The Jewellery division
recorded an income growth of 5.6% in the first quarter. The income from this division in Ql was Rs.3572
crores as against Rs.3381 crores last year. The Watches business grew from RS.517 crores in Qllast year
to Rs.594 crores this year, recording a growth of 14.9%, powered by excellent growth in brand Titan. The
Company's Eyewear business grew by 16.4% to Rs.132 crores for Ql this year. The Company's other
businesses comprising accessories, fragrances and sarees grew by 31.5%, to Rs.26 crores this year. All
these are Standalone figures. The consolidated income and PBT for Ql of the Company were RS.4407
crores and Rs.467 crores respectively. Retail expansion continued with a net addition of 27 stores across
all its businesses in the first quarter, ending the period with a retail area of over 1.95 mn sq.ft nationally.
The Company's retail chain is 1520 stores strong, as on so" June 2018 and is expanding with growth plans
in place for all its retail businesses - Watches, Jewellery and Eyewear. Mr. Bhaskar Bhat, Managing Director
of the Company stated that "This has been a great quarter for us recording a growth of over 31% in PBT.
All our core businesses have shown a healthy growth in profit in addition to market share gains. The
modern retail formats for our Watches business have recorded good growth. The jewellery industry went
through a soft patch in the first quarter with decline in imports of gold by 39%. Despite the single digit
revenue growth of our jewellery business in Ql, the profits grew by a healthy 16%. The Company has put
together plans to stimulate demand for all its product categories through innovative advertising
campaigns and new product launches in the coming quarters."
 Chapter 10

STP ANALYSIS
 STP ANALYSIS
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

10.1 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

10.2 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.

10.3 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

10.4 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.

 Chapter 11

SEGMENTATION
CRITERIA FOR SEGMENTING CONSUMER MARKET:
Markets are mostly segmented on the basis of geographic, demographic and psychographic
factors:
11.1 GEOGRAPHIC SEGMENTATION

It calls for dividing the market into different geographic units such as nations, states, regions,
countries, and cities.
11.2 DEMOGRAPHIC SEGMENT ATION

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.
11.3 GENDER SEGMENTATION

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)
11.4 INCOME SEGMENTATION

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
11.5 GENERATION SEGMENTATION

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, and FLIP
etc.
11.6 SOCIALCLASS SEGMENTATION

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, and FASTRACK 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
11.7 PSYCOLOGICAL SEGMENTATION

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.
11.8 BEHAVIOURAL SEGMENTATION

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
FormalNEBULLA,
STEEL,
RAGA,
GOLD&STEEL,
Dress wear –
REGALIA,
RAGA,
GOLD&STEEL,
ROYALE.
FashionSTEEL,
RAGA,
GOLD&STEEL,
FAST TRACK.
55
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.
Its 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.
56
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