Principles of Marketing

(BAF 3201)
Final Project

Submitted by:

Syed Aqeel Abbas [0350-BH(E)-BAF- 2018]

Syed M. Fakhar Hussain [0350-BH(E)-BAF- 2018]
Abdullah Usman [0745-BH(E)-BAF- 2018]

Submitted to:
Professor Ahmed Shahzad
Contents
Introduction: ................................................................................................................................. 3
BCG Matrix Approach: ............................................................................................................... 3
What Does BCG Matrix Tell us?............................................................................................. 4
The BCG matrix approach in case of Titan: .......................................................................... 4
Decisions That Titan should make: ......................................................................................... 5
Value Chain Analysis.................................................................................................................... 6
Value Chain Analysis of Titan Company Limited: ............................................................... 7
SWOT ANALYSIS ..................................................................................................................... 10
WHAT IS SWOT ANALYSIS? ............................................................................................. 10
SWOT ANALYSIS OF TITAN COMPANY ....................................................................... 11
Table 2.2 Contents of a Marketing Plan ................................................................................... 14
1. EXECUTIVE SUMMARY: .............................................................................................. 14
2. CURRENT MARKET SITUATION: ............................................................................... 15
3. OPPORTUNITIES AND THREAT ANALYSIS ............................................................. 16
4. OBJECTIVES AND ISSUES ............................................................................................. 17
5.MARKETING STRATEGY ............................................................................................... 18
6. ACTION PROGRAMS ...................................................................................................... 20
7. BUDGET.............................................................................................................................. 21
8. CONTROLS ........................................................................................................................ 22

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Introduction:
Titan Company Limited is an Indian fashion house that mainly manufactures fashion accessories
such as watch, jewelry, eyewear and fragrances. However, recently the company have also entered
into woman cloth market. The company came into existence by a joint venture between TATA
Groups and Tamil Nadu Industrial Development Corporation (TIDCO) in 1984. In short, we can
say that TATA Groups and Tamil Nadu Industrial Development Corporation (TIDCO) are the
parent company of Titan. Titan Company Limited is one of the most renowned brands in India. Its
last year (2020) annual revenue was ₹21,204 crore that is $3 billion dollars. The company holds
total assets of ₹1,496 crore that is $1.9 billion dollars and total equity of ₹6,579 crore that is $920
million dollars. Titan Company Limited is the fifth largest watch manufacturing brand with a
market share of more than 60% with in India and global market share around 7.4%. In jewelry
market, it is the largest jewelry make with 80% percent of the of the total revenue coming from
jewelry segment. The company is also operating in eyewear, clothes and fragrance segments but
have not gain much popularity in those markets. The company has around 7,500 employees. The
company owns around eighteen (18) brands operating in four major products like wrist watches,
jewelry, fragrance and eyewear. The company also have subsidiaries like Favre leuba and
CaratLane. Favre Leuba was acquired by the company for $2 million euros to enter in European
market and 62% of CaratLane was bough for €50 million dollars.

BCG Matrix Approach:

The BCG matrix approach or Growth-Share matrix approach is an approach that was presented
by the Boston Consulting group in 1970. In this matrix approach, the company categorizes all of
its SBUs (Strategic Business Units) according to their growth and shares that they hold within their
division. The vertical axis of this matrix measures the market growth rate and market
attractiveness. The horizontal axis of this matrix represents the relative market share of the SBUs.
This approach categorizes the SBUs into four classes:
1. Stars: the SBUs falling in this category have a high growth rate and market share. This
means that the demand for the product is increasing at a high pace and the business also
have a high market share. So, this is a great opportunity to hold and grow to the market
share. They are required to have investments due to their rapid pace. Eventually their
market growth rate will slow down and turn into Cash Cow.
2. Cash Cows: the name of this category recommends to milk your cow, make money and
invest that money in other product line. the SBUs falling in this division have low-growth
rate and high market share due to which they require less investment because the business
already enjoys high market share. These are the established, successful and mature SBUs
of the company that requires less investment to maintain their market share and company
generates a lot of cash from them. Thus, these SBUs provide business enough money to
pay their expenses and invest and support other SBUs.
3. Question marks: These are the SBUs that have low market share and have high market
growth rate. Due to high market growth rate, they require high investment to hold their

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 shares in the market. The management of the business must analyze the situation of the
market, pump the money in this product line using the right positioning, pricing,
distribution and strategy to turn them into stars. Because these are the products that have a
potential to become star for a company. Otherwise, they will become dogs.
4. Dogs: This category follows the idiom “work like a dog” which means working too hard
and working demeaning. These are the SBUs that have low growth rate and low market
share. These products produce much cash just to support themselves and do not promise
any success. All this means that the product does not have any bright future, the product
market has become mature and the product life cycle is about to end. the company does not
have much market share. So, what should a business do? The business must 1divest out all
its money from such SBU.
What Does BCG Matrix Tell us?
The following are the things that can be easily understood with the help of BCG matrix:
• Where does the business sits in markets it is competing?
• How to invest the money?
• It expresses the health of the business.
• The size of circle of each SBU shows the percentage Dollar sale of the brand that belongs
to that SBU.
The BCG matrix approach in case of Titan:
The following is the explanation of all the SBUs and the category in which they fall in case of
Titan:

Stars: All the businesses and SBUs of Titan Company Limited that are related to jewelry such as
Tanishq, CarateLane, Zoya and Mia falls in this category. It is because the Indian jewelry market

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is growing rapidly and Titan Company Limited holds a market share of 50% and it is the biggest
player in India. Tanishq has the biggest circle in the matrix followed by the CaretLane. This is
because the percentage dollar sale of Tanishq and CaretLane are higher than the other. This
happened because Tanishq is the major brand of Titan dealing in jewelry and CaretLane is new
but the biggest online jewelry brand. These brands are providing a great opportunity to hold and
grow to the market share. They are required to have investments due to their rapid pace. Eventually
their market growth rate will slow down and turn into Cash Cow.
Cash Cow: All the businesses and SBUs of Titan Company Limited that are related to watches
such as Sonata, Titan, Zoop, Xylys, Titan Raga, Octane, Favre-Leubra, SF, Nebula and Helio. The
circle of Sonata and Titan are the biggest because the percentage dollar sale of these brands is
higher than the other. this division have low-growth rate and high market share due to which they
require less investment because the business already enjoys high market share. These are the
established, successful and mature SBUs of the company that requires less investment to maintain
their market share and company generates a lot of cash from them. Thus, these SBUs provide
business enough money to pay their expenses and invest and support other SBUs. The reason why
the watch market has a lower growth rate is because the world is shifting to smart watches and
fitness bands instead of traditional watches. So, the business should milk the cow, draw the profit
from this segment and invest in smart watches and fitness bands.
Question Marks: The four brands that are falling in this Category are Taneira, Skinn, Fastrack
and Titan Eyeplus. Taneira is the youngest brand and SBU started by Titan Company Limited. It
is a brand that is deals in tradition woman saree. The Indian textile and garments industry is
growing at a rapid pace but Taneira does not have a big market share. The management of the
business must analyze the situation of the market, pump the money in this product line using the
right positioning, pricing, distribution and strategy to turn them into stars. Speaking of Skinn, the
fragrance brand has a small market share. You can see that it is located in the bottom of the question
mark category. Because the fragrance industry is growing but the pace at which it is growing is
slowing down day by day. But they do not have to worry about the slow pace fragrance industry
is not going to end. Nowadays it has become a basic necessity of life for Indians because India is
situated near equator and no one likes to smell sweat. Speaking of Titan Eyeplus, the brand is
brand is situated very close to star which means that soon the company will successfully turn it
into star. Last but not least, and the most important brand is FasTrack. Fastrack is also one of the
new entry of Titan Company that is the reason why it is situated on the extreme right of the question
mark category. It is the business that is related to digital watches and fitness band. This is the
market that is expanding at a very high pace because the world is switching from traditional
watches towards smart watches.
Decisions That Titan should make:
As we know that Titan Company Limited was initiated with the business of watches and the
company holds a great share in watch market of India. Especially it is the fifth largest watch
manufacturer around the world. But if we analyze the situation of the watch markets in the recent
five years, the world especially young generation and youth are rapidly switching to smart watches.
This is happening because the smart watches are providing tons of cool features such as heart rate

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monitoring, calories burnt and blood oxygen level, etc. All the brands related to watches are Cash
Cow for titan which means the company have huge share but the market is not growing further.
This means that soon all the businesses related to Watches will become dogs. So, Titan Company
Limited must take revenue from Watch segment and invest in smart watches (Fastrack). All the
businesses and SBUs of Titan Company Limited that are related to jewelry such as Tanishq,
CarateLane, Zoya and Mia falls in this category. It is because the Indian jewelry market is growing
rapidly and Titan Company Limited holds a market share of 50% and it is the biggest player in
India, they are required to have investments due to their rapid pace. Eventually their market growth
rate will slow down and turn into Cash Cow.

Value Chain Analysis

Titan follow the Porter’s Value chain analysis approach. This approach consists of two main
activities. First one is Primary Activity and second one is Supporting Activity. Primary activities
are those activities which have direct and immediate effect on the production, repair, sale and
maintenance of product and services. Primary Activities consist of five components;
i. Inbound Logistics: it contains all processes and steps which are adopted for the collection,
storing and distribution of Raw Material or basic components.
ii. Production: It is production line and contains all activities related to the production of
product and services. The inputs go through different operations to convert them into finish
or semi-finish form.
iii. Outbound Logistics: It contains all those activities which are related with the storage,
distribution and supply or delivery of products or services to customers.
iv. Marketing and Sale: It contains all those activities which are used to introduce product
and services in the market and use to build good customer relationship. Creating benefits
for company and customers by keeping market competition in mind, is the core object of
this component.
v. Service: it contains all those activities which are useful to maintain the value of product and
service while building a strong customer relationship.
Supportive activities in Porter’s Value Chain Analysis approach consist of all those
activities which assist primary activities. These activities provide foundation to any organization.
Following are four Supportive activities;
i. Firm Infrastructure: It is supportive activity which is use to maintain daily operations of
any organization. Management, Administrative are the examples of firm infrastructure.
ii. Human Resource Management: it contains all those activities which are based on the
development of workforce in an organization. Staff Training, Motivating, hiring and firing
etc. are different examples of Human resource management.
iii. Technological Development: It is related with the technological advancement and
developing products and services according to time and new technology. For example,
Information Technology, Innovation, Product development based on technology.

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 iv. Procurement: It contains all those activities which are related with the procurement to
service the customers. For example, managing relationship with suppliers and negotiate at
best price, purchase valuable raw material, outsourcing.

Value Chain Analysis of Titan Company Limited:

Titan adopted the Porter’s approach for Value Chain analysis. All activities are not equal in effort,
price and time. This approach signifies the importance of all activities depending upon the role of
these activities in product or service. Following is the list of Primary and Secondary Activities of
Titan International Inc;

1. Primary Activities;
The primary activities of Titan International Inc are directly related with the production
and selling the specific product or service to the targeted customer. The primary activities
of Titan are explained below;

1.1. Inbound Logistics;

Titan created good relationship with suppliers. It can face all those challenges which can
incurred during production phase. Titan focuses on all aspects in the production process
(Transforming raw material into finished form). Titan perform key activities like collection,
storing and internal distribution of raw material.
1.2. Operations;
Titan focus on the operations after the arrival of raw material. It focuses on all process
adopted to transform raw material into finish form and its launch in the market. Their
activities involve machining, assembling, testing and packing. Titan provide complete
analysis of operation activities. It helps to generate more products which leads toward
economic growth and profitability. Equipment maintenance and repair are also related with
the operation activities.
1.3. Outbound Logistics;
Delivering products to targeted customer through different intermediaries is done by Titan
itself. Titan provide proper analysis of handling, warehousing, receiving orders, order
processing and delivering product to destination. Titan focus on outbound at minimum cost
and better quality of product. It helps to explore competitive advantage and help to achieve
organizational goals. Titan also focus on quick delivering products to the end customer.
1.4. Marketing and Sale;
Titan highlight the key features and benefits of their products to attract customers. It also
highlights the difference between their product and competitive product. Titan knows that
only low price and high-quality product is not enough to attract customer, there is a need of

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 marketing and sale activities. At this stage Titan focus on the advertisement, promotion and
pricing activities. To build its marketing and sale structure, Titan adopt Funnel approach.
1.5. Services;
Titan offer pre-sale and post-sale services to their customers and franchises. It creates
customer loyalty and Titan pays complete attention towards it. In this era customers attract
with post-sale services and Titan provide this service to build brand reputation. Instead of
using words to attract customers, Titan provide support services.

2. Supportive Activities;
Supportive activities most commonly known as secondary Activities has its own importance
to assist and coordinate primary activities. The secondary activities of Titan International Inc
are explained below;

2.1. Firm Infrastructure;

Titan has an effective infrastructure that allow Titan to optimize the value chain analysis in
an effective way. Titan infrastructure consist of various activities such as legal, quality
management, accounting and Finance management, strategic management and planning.
Infrastructure activities or we can say the overhead cost for Titan International Inc is
controlled and well manage to strengthen the ranking in competition market.
2.2. Human Resource Management;
At this stage, Titan International Inc take different steps to management different Human
Resource aspects like Training, Hiring, Selection, Motivating and rewarding. This step
allows Titan International Inc to face market competition with an effective way. By Hiring
productive staff, Titan can achieve its cost minimization objectives. Effective workforce
allows titan to reduce competitive pressure.
2.3. Technological Development;
In this modern era, everything depends on technology. Titan realize the importance of
technological advancement. It adopted the technology in the production, distribution,
marketing and Human resource activities. Titan International Inc has divided its
Technological development activities into product and process activities. Research and
development department, advance software and website, customer service, product design
and data analytics are based on Technological development at Titan International Inc.
2.4. Procurement;

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Titan International Inc adopted the procurement activities carefully. It considers all its
activities related with the purchase of raw material, equipment, machinery and other
necessary items used to transform raw material into finished form. Titan optimize its
Inbound, Operational and Outbound activities in efficient and better way. Titan always
consider the importance of all activities and this is the main idea behind Porter’s Value Chain
Model.

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SWOT ANALYSIS

WHAT IS SWOT ANALYSIS?

This term is an analysis of “SWOT” which is an acronym for Strengths, Weaknesses,
Opportunities, and Threats. Therefore, the term swot analysis is a strategic planning technique that
will help to identify these four points in a business.
Doing a Swot analysis can be helpful to look at the business from new ways and directions. It will
benefit the business's success even if it is already established since there is always room for
improvement. This success can be achieved by understanding the strengths that will help eliminate
the weaknesses of the business and take advantage of opportunities and threats in the market. Swot
analysis of a business combines its internal and external analysis.
Internal analysis of a business includes the factors that lie within the business, such as its strengths
and weaknesses. Conducting an internal analysis is relatively easy and can be achieved by
meetings with the business's stakeholders and its management.
On the other hand, the external analysis identifies the factors outside the business affecting the
business; such factors are opportunities and threats. Therefore, to identify the external factor, a
company must conduct "Pestel external analysis."
Pestel External Analysis:
It includes examining factors such as;
Political: the changes, like alteration in trade agreements of countries.
Economic: includes a change in factors like interest rates, exchange rates, and consumer
confidence.
Social: includes a change in factors like customer attitudes, lifestyle, or evolving population.
Technological: includes factors like evolving technological instruments and excessive use of the
internet.
Environmental: it involves factors like environmental law and increasing population.
includes legal existing legislation or new ones.
Combining two analyses, internal and external, will picture the strengths, weaknesses,
opportunities, and threats (SWOT) that will help businesses in future strategic decisions.

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SWOT ANALYSIS OF TITAN COMPANY

STRENGTHS
Leading Manufacture: Titan is one of the top manufacturers of watches and also India's leading
manufacturer.
Distribution: Titan has an impressive distributive network; Titan provides attractive margins to
its dealers.
Customer Base: Titan has produced over 100 million watches to date and a solid customer base
of over 80 million customers.
Market Share: Titan has over 60% of the Indian market share of the organized watch market. It
has 247 exclusive showrooms launched as "World of Titan." It makes Titan one of the largest
brands supported by its 700 after-sales service centers across the nation.
Design: Titan has a world-class design team that introduces new methods to the market that are
trendsetters.

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Style Variety: Titan attracts customers with a wide choice in style options for watches. There is
an initial range of up to 350 models in the catalog.
Retail: Titan has the largest network of offline stores, which are exclusive watch stores in the
domestic market.
Advertisement: Titan has invested significant investments in the business's advertising and
created memorable and effective responses.
Brand Ambassador: Titan has appointed brand ambassadors from big celebrities like Katrina
Kaif, Ayushman Khurana, Farhan Akhtar, Kapil Dev, etc.
Value Proposition: value offering of Titan is imposing. Giving the best watches for the price is
Titan's strength.
Quality: Titan holds impressive customer satisfaction, as the build quality and performance of the
watches are very appreciated.
Visual Merchandise: Titan promotes visual merchandising activities. Such as displayed in their
exclusive stores, which are attractive.
Customer Service: Titan has an outclass service center chain across its domestic market, watches
don't tend to require repair, but if needed, Titan replaces them within the warranty period of a
watch.
Uniqueness: Titan introduces some cutting-edge designs like the "world's slimmest watch" named
Titan edge.

WEAKNESS
Waterproof: the portfolio of the Titan does not include waterproof watches; this lack of a quality
feature affects the demand for its watches.
Raw material: availability of cheaper domestic raw material is not possible yet. Sources are
imported those increased costs.
Market Segmentation: Titan has not focused on the rural market segment, contributing 40% to
the Indian volume.
Fewer smartwatches: Titan lacks innovation in smartwatches, there is high demand for
smartwatches, but Titan doesn't offer proper and featureful smartwatches.
Global Market: Titan hasn't penetrated the international or global market; other international
brands have targeted globally.

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OPPORTUNITIES
Jewelry Market: there is a demand for jewelry items in Indian consumers, so that this scope can
become an opportunity for Titan.
Brand Extension: Titan has an opportunity to extend its business towards feminine accessories.
Promote as a gift: watches are in trend to be given as a Gift; Titan should promote its watches as
a symbol of gift.
Market Penetration: there is a big market segment in India that isn't penetrated, only approx.
35% of the population possesses watches. Therefore, Titan can maximize its market by further
segmentation.
Fashion Symbol: Titan can promote its watches not just as functional pieces but as a fashion
statement.
Variety: consumers of watches tend to have multiple collections. Titan can further introduce
newer design categories for every event.
Waterproofing: Titan watches are not mostly waterproofed; Titan can build impressive
waterproof watches for athletic consumers.
Exchange Market: Titan is a giant company with a stable business operation, so it can enter into
the exchange rate market by this company and grow further rapidly.

THREATS
Competition: biggest threats to Titan are its competitors like Citizen, Swatch, Rolex, Tag- Heuer,
and Tissot.
Raw material: the cost for the raw material is getting higher because of increased import duties.
Trend: fashion trends are changing every day rapidly.
Possible Imitation: design of Titan watches is very simple yet is easy to imitate.
Grey Market: there is an unrecognized market that Titan hasn't penetrated. Competition can make
the first move in such a market, which is a threat to Titan.
Technology: smartphones are replacing the need for watches, and another substitute is
smartwatches, which Titan hasn't targeted yet.
Luxury Market: demand for luxury items has increased significantly. Titan lacks innovation in
the luxury segment, which can be a threat to the company.

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Economic Inability: Businesses can get affected by the country's economic recession and
increasing economic issues.

Table 2.2 Contents of a Marketing Plan

1. EXECUTIVE SUMMARY:

An executive summary is also known as management

summary. It is short section of a document constructed
by the business notify its purposes and main goals. It
is generally consisting of a brief statement of
proposals in the major documents of the company,
its main goals, its background information, plan
for management, analysis and conclusions. These
summaries are an aid to decision-making by
management. It is also considered as the most
important part of business plan. Now speaking of
TITAN COMPANY LIMITED. Their main goals are
to increase the market share by 5% in each category of
product they are dealing in, increase profitability by 10% each year, capture larger portion of mid-
range customers because their competitors growing rapidly in that segment, become more and
recognized brand, provide the best quality of product according to the price range and promote
Indian culture throughout the world. Now before recommending the plan for management review,
first we need to understand what is management review? It is one of the internal controls that we
have also studied in Auditing. It is basically a routine evaluation of management system
considering that whether they are working effectively and efficiently or not and in case any gap
found it is fulfilled with internal Auditing. Now my recommendation of the plan for manage to
TITAN COMPANY LIMITED that will eventually help top management find plans for major
points quickly is to follow ISO 9001. ISO stands for International Organization for
Standardization. It is generally a set of quality management systems that ensures an organization
that they accomplish customers and other stakeholders needs regulatory requirements related to
products or services. As recommended by ISO 9001, The organization should conduct
management review at least once a year. Conducting management review once a year is the best
option because it is not possible to repeat the same process again and again. Basically, ISO is
recommending quality over quantity. The things that must be reviewed are management
responsibility, manage review scheduling, agenda and minutes or reports. The major point that
must be reviewed are customer feedback, audit results and analysis of gap between plan and
practical results. In the end, it must address the possible needs for changes in policies that will help
the company achieving their goals.

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2. CURRENT MARKET SITUATION:

Target Markets:
The TITAN COMPANY LIMITED is targeting various markets
that includes watch market, jewelry market, eye-wears market,
fragrance market and now newly started SBU that includes
clothing market and smart watch market. In short, I must conclude
it by saying that TITAN COMPANY LIMITED is targeting all
the fashion accessory markets. In case of watch market, TITAN
COMPANY LIMITED holds 70% of the domestic market share
and 60% of the organized market share. In case of jewelry market,
TITAN COMPANY LIMITED holds 50% of the market share
jointly from Tanishq, Zoya, Mia and CaratLane. Now speaking
of fragrance, eyewear, clothes and smart watch market, TITAN
COMPANY LIMITED doesn’t holds a huge market share in these
categories because these are newly initiated SBUs.
Major Segments:
In all the targeted markets that TITAN COMPANY LIMITED is majorly segmenting their
customers into three categories that includes High income group, Middle income group, and Lower
income group.
Customer needs:
As we know the company is segmented their customers into three categories. Their demands and
needs where are you from one segment to another segment.
High income group: TITAN COMPANY LIMITED Is offering a
premium, Royale and high-quality products that ranges from
Rs.30,000-500,000+ in both watches and jewelry market.
Middle income group: they are offering jewelry and watches that
ranges from 5000-30,000 through brands such as Zoya and
Octane.
Lower income group: they are offering cheap watches through brands such as Sonata, Zoop, etc.
that produces watches for daily use. And they also produce artificial jewelry through their virtual
store such as CaratLane.
Most importantly TITAN COMPANY LIMITED is producing the best quality possible, in
accordance to price ranges.

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Factors affect customer purchasing in market environment:
The factors that affect the purchasing decisions over customer are age, occupation, income, etc.
Product review:
The sales of TITAN COMPANY LIMITED have increased from 192 billion Indian rupee to 201
billion Indian rupee. Most of this jump was from jewelry segment. As I have already discussed
rises in above paragraphs the gross margin of the company in each price range is from 10% up to
12%.
Competitor’s review:
TITAN COMPANY LIMITED have multiple competitors in domestic markets international
market and fashion house. Speaking of domestic market, its competitors are HMT, Maxima, Rado
and Casio. These competitors are doing well in mid-range price group of products and holds a
higher share than TITAN COMPANY LIMITED in that segment. Else they are using almost an
identical marketing strategy as Titan. Speaking of international competitors, they are Esprit,
Swatch, Citizen, Tag Heuer, Seiko and Cartier. They’re competing with Titan in high income
group segments and are attractive towards youth because of their sporty category of watches. This
is something that Titan is lagging at.
Distribution channel:
The distribution channel that TITAN COMPANY LIMITED is using is vertical distribution
channel. According to vertical distribution, the company is producing, wholesaling and retailing
products by itself and delivering products to ultimate consumers.

3. OPPORTUNITIES AND THREAT ANALYSIS

Analysis of the external factors identifies the factors outside the business affecting the business;
such factors are opportunities and threats. Therefore, to determine the external factors, a company
must conduct "Pestel external analysis." It includes examine change in political, economic,
social, technological, environmental or legal factors.

Opportunities And Threats To Titan:

Titan has the following opportunities that their management must consider to boost up the brand's
profitability:

• Titan can expand its products related to Jeweler Market as the demand for them is very
high.
• Titan has an opportunity to extend business towards feminine accessories.
• Watches are in trend as a Gift. Therefore, Titan should promote its watches as a symbol of
gift.

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 • There is a significant market segment that is not penetrated yet in India. Therefore, Titan
can maximize its market by further segmentation.
• Titan can promote its watches not just as functional pieces but as a fashion statement.
• Titan can further introduce newer design categories for every event.
• Titan watches are not waterproof. However, Titan can build impressive waterproof watches
for athletic consumers.
• Titan is a giant company with a stable business operation, so it can enter into the exchange
rate market by this company and grow further rapidly.
Titan has the following threats, and their management should be concerned about them.

• The biggest threats to Titan are its competitors like Citizen, Swatch, Rolex, Tag- Heuer,
and Tissot.
• The cost for the raw material is getting higher because of increased import duties.
• Fashion trends are changing every day rapidly.
• The design of Titan watches is straightforward yet is easy to imitate.
• There is an unrecognized market that Titan hasn't penetrated. As a result, competition can
make the first move in such a market, which threatens Titan.
• Smartphones are replacing the need for watches, and another substitute is smartwatches,
which Titan hasn't targeted yet.
• Demand for luxury items has increased significantly. However, Titan lacks innovation in
the luxury segment, which can be a threat to the company.

4. OBJECTIVES AND ISSUES

Objectives
Titan is a name that evokes superior craftsmanship, innovative technology, and reliable product
quality. Titan aims to provide an elevating experience to its customers and benefit the environment
around them. They will achieve it by caring for a value-driven culture that fosters innovation. Titan
is one of the largest integrated brands of watches. For the last three decades, Titan has expanded
into underpenetrated markets and made special selection range categories.
Currently, Titan holds 70% market share in the domestic market and 60% in the organized market.
For the coming year, the objective of Titan is to raise its market share by 5% and its profitability
by 10%.
The main marketing objective of Titan is to make changes in the pricing policy of their products.
Titan also aims to focus on the quality of the products and to promote them with outstanding
leadership. To achieve its marketing objectives, the company needs to focus on its pricing and
make innovations.

Issues

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Titan is performing well over the years with the help of its marketing strategies. However, with
the increase of innovation and technology replacing analogue watches, Titan is struggling to
sustain its growth rate. People consider using smartphones to look for time rather than carrying a
separate wristwatch.
These issues are restraining Titan from achieving its marketing objectives. Watches of titan lack
features that competition is marketing
aggressively.
Another marketing issue is people's perception
regarding watches. With so many gadgets around,
the need for a wristwatch has vanished.
Wristwatches are now only worn as luxury
watches for a fashion statement or fitness tracking
as smartwatches.
Titan is struggling to market its luxury watches. Their product "Titan Edge" and "Skinn" are both
segmented for the luxury market. However, Titan struggles to raise the profits from the luxury
market, and this is due to people's perception of the brand people buy Seiko or Hugo boss for the
same prices. So, they should change their brand's forte from mass segment to luxury market or
entirely target them as a new brand.
Also, they penetrated the smartwatches market late and did not introduce many features or
advanced technological products. So, it is an issue for the company.
5.MARKETING STRATEGY
Customer value
Titan created a stunning brand image with ethnocentric customer loyalty on price to value
proposition offerings. People compare brands upon the value of the product, which states the
quality of the product and the experience it provides to the consumer. Titan creates an excellent
customer value through its established brand name, reasonable prices, good quality, and an
extraordinary after-buying experience. People buy exclusive watches like Titan Raga that satisfy
the customer for its representation of the status symbol.
Target market
Setting a target market is one of the most critical decisions for a company. It can be very highly
rewarding if the market responds positively or can be a massive loss to a company. Titan is a well-
established company and currently deals in three target markets. It deals with:
1. High-income group: people from this segment buy wristwatches to wear as a fashion
statement.
2. Middle-Income group: a consumer from this segment usually seeks a stand-out design
and compares the market offerings.
3. Lower-Income group: a consumer from this segment buys a wristwatch for a timekeeping
device, and they usually don't compare, but their purchase base on prices.

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The need of the market can vary based on price and quality. Currently, Titan is offering different
target market with products like:
1. For Elite class: Titan offers nebula and titan edge in luxury and gold watch range. These
are impressive gold and customized watches priced between 30000-500000.
2. For the Middle-class: Titan offers two brands, FastTrack and Octane, in stainless steel
priced between 3000-7000. Titan offers over 100 designs in this segment.
3. For the Lower-class: Titan is offering Sonata and Zoop for the lower segment. Here
watches are priced between 700-2500 and have over 700 different designs to choose from.
Despite the current high oil prices and high inflation, Titan is doing well in the current fiscal year.
It indicates that consumer is spending more in the respective target market.
Brand positioning
The way a company positions its brand or differentiates it from competitors impacts the company's
profitability. Advertisement is the best strategy used to position a brand. First, it creates an
impressive customer-focused proposition. Second, it is the reason why the targeted market should
select one's product. Upon inspecting the advertisement of Titan, it is clear that the brand positions
its products according to the segments. For instance, the celebrity "Amir khan" is an ambassador
for Titan, a more luxury product.
Similarly, "John Abraham" and "Virat Kohli" endorse the "FastTrack," as these celebrities are
more athletic-focused. Using this strategical approach for differentiating the brand helps position
it effectively. Titan created a unique customer-focused proposition and filled the gap between
segments through multiple products.
Marketing mix
The best marketing tactic to sell a product in a segment with an effective response is the marketing
mix. This strategical tool is a combination of 4P's of marketing. It helps a company achieve its
objectives and business goals. Titan has focused on
the 4P's (Product, Price, Place, Promotion) and
achieved its goals. The marketing mix and strategy of
Titan are listed below:
• Product Strategy:
As we know, Titan is a leading watch and
accessories brand in India and is offering
products range from watches to belts and
wallets. This multiple product offering
represents Titan's marketing mix strategy.
Also, Titan offers many sub-brands for their
watches like Titan raga, octane, edge, retro,
and aurora. In addition, they launched a
collection named Titan Bandhan, which is
exclusively made for couples. All new Titan

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 watches ushers a new era and innovation. They offer watches for all different occasions
and offers multiple configuration options to customize watch for one's taste.
• Pricing Strategy:
Titan has multiple pricing strategies that they follow in their marketing mix. They have
offerings ranging from 500-900, and this pricing is for the watches sell at masses. For their
premium and exclusive price segment, each of the collections is designed and priced
differently. For example, their most selling Titan sonata ranges from 400-3600. However,
on the other hand, watches like edge and Raga range between 5000-20000.
• Place/ Distribution Strategy:
Titan has its manufacturing facilities in Tamil and Uttaranchal. They are using high-quality
machines made from Swiss and Japanese technology. They have several outlets around the
country and also have exclusive showrooms called the "world of Titan." They are running
438 showrooms across 120 cities. Also, they have 740 aftersales service centers to facilitate
consumers effectively. In addition, they have international stores in London, Singapore,
and UAE, not just that they also have a solid online-selling chain.
• Promotion strategy:
Titan successfully uses the best tactical strategy of marketing communication to position
its brand as needed. They have marketed the brand through all major platforms like tv,
print, or digital media. It is a part of their effective marketing mix promotion strategy. Titan
has been associated with a lot of celebrities over the years for the promotion of the brand.
Many others are included in the list, including Amir Khan, Katrina kaif M.S Dhoni, Vir
Das, etc. Their excellent advertisement campaigns are always created around a story that
conveys a beautiful message for society. They work with the company Ogilvy & Mather
for creative advertisements. In addition, they have sponsored many shows, events, and
radio talks for the awareness of the brand.

6. ACTION PROGRAMS

Titan adopt 5 steps for the creation of successful marketing action plan. These 5 steps are;

1. Analyzing current state of affairs with Marketing Efforts of Titan:

In the very first step in the creation of marketing action plan, Titan take a complete look of its
goals and the current position of business. This activity helps Titan to analyzing the current
position of company and through it, Titan find a space which can be filled by a plan. In this step
Titan focuses on three questions; Currently company is facing which types of problems? Which
decisions have positive impact on business? Does company possess power, tools and knowledge
to overcome these problems.

2. Creating a List of which can improve Marketing Efforts:

When Titan is busy in its operations, company cannot take a reverse step from what they are
doing now. At that time every company is focusing to invest more time and efforts. In this

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situation Titan create a list of their powers and capabilities that can help company to boost its
marketing efforts.

3. First and Foremost concern with List:

If the list of Titan contains 8 things, company critically focuses upon 80 things which are
relevant and can influence directly or indirectly to the business. From that list company has to
choose their top priorities and work on them. Initially, the most important projects consist of
Highest impact ratio and easy to implement qualities. Many projects of Titans are interrelated
and have something common in them.

4. Creation of Action plan:

In this step, Titan create an action plan which is based on the duration of 10, 30 and 90 days. The
main goal is divided into sub groups and the management achieve their sub divided goal in a
given time period. By achieving its small goals, Titan achieve its goals before assigned time
period. In this step the time management system of Titan plays important role to achieve specific
goals of company. After adopting step 3 to analyzing company's priorities, Titan focuses on
those tasks which seem lesser time consuming and higher beneficial for company.

5. Analyzing Required Resources for the Plan;

The 5th and final step in the creation of marketing plan is to analyses the resources requirements
of the plan and then compare them with available resources. In many cases Titan find its
resources insufficient for the plan but with the help of efficient team work Titan become able to
manage the situation by using available resources in an efficient way. Many times, the dedicated
team of Titan help their company to overcome this hard situation. Titan does not use loan or
investment for the purchase of inefficient marketing resources.
7. BUDGET

The budget intended to spend on projects related to marketing over a quarter or a fiscal year is
known as the marketing budget. For example, advertising expenses, sponsored web content, and
new marketing-related stuff are part of marketing budgets.
Titan is one of the largest manufacturers in India, requires a considerable budget for its marketing
campaigns and related operations. In the fiscal year 2020, titan claim to have spent around Rs 100
crore (INR) on their advertising & marketing campaigns. However, due to covid-19, the recovery
from sales was slow at first but then catch up later in July and August. As a result, for 2020, they
recorded an increase of 30-40% in their sales across all channels.
Projected Figures
With the ongoing pandemic situations in India, titan decides to spend 50% more on its digital ads
for watches and wearables in the fiscal year 2021. As compared to the previous year, their digital
expenses contributed only 15%. Therefore, it will eventually double the online sales of titan.

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However, the profits wouldn’t increase much due to the decrease in In-stores sales. However, if
the pandemic situation remains unchanged, the cost of production and operation would decrease.
These estimates will help titan to plan their decisions related to the purchase of material and
marketing operations. Titan must schedule their budget with less operating costs at offline stores
and spend the digital marketing budget and get benefits from online sales. Moreover, they must
rethink their marketing budget for this unprecedented time of covid crises.

8. CONTROLS

The term “Marketing Control" refers to the activities related with the measurement and monitoring
of the Marketing plan. A plan always comes with control. There is no plan without control.
Necessary adjustments are adopted in this part which are used to keep Marketing plan in organized
manner. Plan is just like a road map, it guides you towards your goals but on the other hand,
Control is just like a guide who teaches about the right path, which step should company take and
when company achieve its goals. The term Control states that it is a system of measurement,
monitor and evaluation. Control guide about the effectiveness of current decisions and what type
of alterations required in plan to achieve goals. Every organization suffers with scarcity of
resources. Control set the standards and utilize scarce resources in productive manner.
In many fields, control help Titan to manage its problems. Following are some approaches
of Titan's Control;
1. Marketing Information System
2. Marketing research
3. Market share analysis
4. Customer feedback survey
5. Customer relationship management
6. Activities of competitors
7. Performance of marketing plan
8. Aspects of marketing plan
9. Sales according to segments
10. Service level
11. Market relations

Example of Control in Titan’s Marketing Plan

Market Share;
The percentage of sale which is dominated by any company is known as market share. Before
implementation, a perfect marketing plan of Titan highlight the market share of company. When
the plan comes to its end the business analyst highlights the performance and effectiveness of plan.
In 2012 the marketing plan of Titan was expecting market share of 7 percent. During this journey
Titan achieve 5.9 percent of market share. Company did not meet its goal. Titan started analyzing

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the weak point of plan, reason behind its failure and the way which will adopted to correct the
plan.

Target Market Sale;

Sale is calculated by 3 things; unit sold, profit earn and amount of revenue generated. Each
company mention the target Sale in its marketing plan and effect of sales on target market. This
activity is completed with the help of market survey. Several retail and wholesale vendors
contribute in this survey. Actual Sale and planned sale are comparing side by side to analyses the
effectiveness of plan and if analysts find any error in performance of plan, quick decision are made
by management. If Titan wants to sale its product to those customers whose ages are between 18
to 35, then sales must be monitor. If the sale is lesser than expectation then Titan do research to
know the reason why customers are not responding. Sometimes plan is 100% accurate but the
target market of plan is incorrect. In this case company creates new target market which is based
on market and sale research.

Analyzing Customer Feedback;

The main purpose of marketing is to provide awareness. This act becomes a source to boost sales
and sometimes people like to invest in a specific activity after getting product awareness. While
the purpose of Control is to provide specific monitoring and do survey to know customers
feedbacks. Titan do both online survey and individual interviews to get customer feedbacks. Titan
knows the likes and dislike of its customers. If customer dislikes any product, then Titan put that
product out from marketing plan list.

Expenses on Budget and Monitoring Activities;

Titan marketing budget is always at balance situation. The marketing budget and the revenue
earned from marketing plan of Titan is always equal. Titan controls its marketing budgets through
various steps. The cost of marketing activity is reduced by decreasing cost of market research,
video advertising, marketing budget and travelling cost for advertisements. Titan closely monitor
these activities to minimize cost and maximize profit. With the help of close Monitoring, Titan
maintain its budget and track that activity which is consuming more money and having poor
outcome.

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