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In the modern world a wristwatch is considered as much of a status symbol as to a device to tell time. In an age when cell phones and digital pagers display tiny quartz clocks, the mechanical wristwatch has slowly become less of an object of function and more a piece of modern culture. The commissioning of the watch division of HMT in the year 1961 officially laid foundation to the Indian watch industry. 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. Titan was the first company to launch quartz watches in India.
Every brand and every company are constantly reinvigorating their business process, brand positioning and management, in order to aid them towards growth. This has created a necessity for constant need to innovate, reinvigorate, update and recalibrate. Brand positioning creates a specific place in the market for that particular brand. It reaches certain type of consumers and delivers benefits that meet the needs of several key target groups and users. A Company or brand’s positioning in the marketplace it operates in solely depends on how it communicates the benefits, product attributes and product offerings to its target consumers. A brand positioning strategy seeks to distance itself from competitors based on five key factors; • Price • Quality • Product Attributes • Distribution • Usage occasions Recently consumerism has under gone a wide range of changes. Nowadays consumers are well informed about each product and they have a sea of information to refer to in times of need, this has paved way to a customer centric market place. This has resulted in companies’ under-taking brand repositioning on a regular basis as they have recognized the importance of the customers in their business structure. Recently Titan Industries Ltd. has revamped their marketing strategy incorporating a major brand positioning exercise; this has included a change in logo and tagline as well. The communication strategy has been revamped to convey its new position. This study consists of reviewing the marketing strategies of Titan watches.
For example. it is important to understand that consumer’s minds are limited. 3. Specifically. when and how brands should be repositioned need to be addressed. The market strategy of Titan Company has been completed using a variety of webarticles.0 Why Brand Repositioning? As marketing guru Peter Drucker once mentioned “A business have two – and only two – basic functions: marketing and innovation”. journals. so that they could maintain their relevance and market position. coupled with the mixed results of repositioning attempts. while the soft drink brand. The strategic importance of brand repositioning in preserving and enhancing brand equity.A variety of data sources (both primary and secondary) have been made use in this study. People’s minds select what to remember and it is therefore significant to convince the consumers with great arguments. Levis' Jeans has been losing market share to newcomers such as The Gap. underscores the need to develop a better understanding of the dynamics of brand repositioning. brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. Numerous failed attempts at brand repositioning testify to the difficulty of developing and implementing such a tactic. books and magazines. questions of whether. Mountain Dew has remained relevant to the youth market through continuous repositioning in its thirty years of existence. The appeal of brand repositioning is further heightened by the rising costs and high risk associated with launching a new brand. Therefore. The market demand changes . Figure 1: Stages in Brand Strategy Development When striving towards a new position in the market. The intense competition and rivalry pressure together with the rapid environmental changes have demanded that brands continuously innovate and reinvent themselves. despite numerous campaigns designed to reposition the brand as trendy.
there is little supplier power in the watch market.0 Wristwatch Industry in India Power of Suppliers *No strong suppliers *Lack of bargaining power *Rise of Chinese and Taiwanese low-cost suppliers Barriers to Entry *Cluttered market *Lack of differentiation Industry Rivalry *Increased brands *Low switching costs *High strategic stakes Threat of Substitutes *No close substitutes although mobile phones may cause a slight threat Power of Buyers *Price sensitive *Differing preferences Figure 2: Porter’s Five Forces Model 1. Supplier Power: HMT has its own fully integrated operation for production of its watches. the manufacturing capacity of which is 6 million units. Buyer Power . 4. 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. Due to the large supply of watch movements available. just as Titan has done to outsource the components for Dash. where brand positioning is a component. This validates the importance of a marketing strategy. 2. Titan has its own production facilities for which it has invested roughly 1200 million rupees over the years.rapidly and therefore repositioning can be necessary to meet these demands. newer and stronger arguments have to be established to convince them to stay as loyal customers.
the company launched a second independent watch brand-Sonata. Leveraging its understanding of different segments in the watch market. Gucci. in terms of the companies offering various variations for watches such as pendant watches and jeweler watches. Timex watches. Also at the lower end of the market it is basically the Value for Money. for a new entrant is to build a brand image and price competitively. Titan Industries is India's leading manufacturer of . Today. The other players include Westar. in the current context. Longines. 3. which can be positioned and differentiated from the other players in the market. Degree of Rivalry There are many companies in the Indian watch market. Tiffany’s and Corrum. which entered in India with collaboration with Titan. especially in the lower end of the market. At the same time here are a segment of people who are willing to pay a premium for watches with good performance and with a recognized brand name. Titan has been consolidating its market share over the past decade.The Indian watch buyers are very price sensitive. However. 5. Rich consumers prefer to purchase watches more as a fashion accessory rather than simply for its typical use. 5. The strategic stakes for the producers are very high. manufactured in a state-of-the-art factory at Hosur. Tamil Nadu. Citizen. Maxima. Piaget. Tag Heuer and Espirit are also making an inroad into the Indian market. So the new entrant has to have an offering. Titan and Timex. while. the product ranges offered by them are manifold. Entry Barriers 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. This could be either price or functional or emotional appeal.1 Major Competitors The major players in the Indian watch market include HMT. The company brought about a paradigm shift in the Indian watch market. Casio. So the prime barrier for entry. Shivaki. offering quartz technology with international styling. In addition it focused on the youth with its third brand – Fastrack. has now independently gained substantial market share. This makes the competition very stiff. So understanding the buyers’ preferences is very crucial in this industry in order to gain a substantial market share. 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. some sort of substitution has developed. 4. which differentiates the players. It has also in its portfolio its first Swiss Made watch brand – Xylys. Threat of Substitutes There are no such substitutes to watch as a product. however. SITCO. It has also premium fashion watches by acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss. 4. Omega.0 Company Profile---Titan Titan Industries was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Foreign brands such as Cartier. as a value brand to those seeking to buy functionally styled watches at affordable prices.
and • Lower income group Titan alone holds 70% market share in domestic level whereas 60% in organized market.1 Titan Product Portfolio---Wristwatches Figure 3: Titan Industries-Watches The company’s watch sales grew by 18.watches and jewellery employing 3. Titan’s watch segment is the India’s chief producer of watches and ranks fifth in the world in production of watches. As our Marketing Objectives is to increases Market Share of the company by 5% in the coming year as well as to increase the profitability of the company by 10%.5 million during the second quarter of this year. Basically it deals with three target markets: • High income group • Middle income group. .8 per cent and its income increasing from Rs2553. 5. Titan and Tanishq are among the most admired brands in their categories.800 people. Company really understands the psyche of consumer and they offered quality products in classical design with superior technology.4 million during the second quarter of last year to Rs3034. Today the company has model for every prices segment and every market.
1 million.5 million compared to previous year which was Rs. *Premium segment erosion – In the premium segment Titan’s market share is being eroded by global brands such as Espirit.1 Recommended Marketing Mix 6.251. The marketing objectives is to increase market share by 5% . Swatch and Citizen. *Watch Models – 14 different models with 1000+ varieties (a watch for literally everyone).3 Marketing Objectives Titan holds 70% in Domestic level and 60% share in organized sector market. The main consideration in changing prices are the following. • Survival o Titan prices the watches according to the features .0 Recommendations 6.2 SWOT Analysis Strengths *Exclusive Products – Catering to local as well as the global wrist-watch market. by returning the old watch the customer gets a 25% discount on his new watch. *Exclusive guarantee/warranty deals. Opportunities *Seasonality – India being a multi-racial.900-1.11.The Exacta is a simple steel watch priced at Rs. • Market Share .1 Price To achieve the marketing objectives a change in pricing is inevitable. *Exchange offer – Titan offers a unique exchange offer to its loyal customers whereby. Threats *Competitors – with intense local competition and the increased participation of global brands.1. multiethnical country has a wide number of festivals. However. Weaknesses *Price – In the mid-price segment targeted at the middle-class section of India Titan is considered expensive compared to other big competitors. *Watches with multi-functional features *Distribution through wholly owned outlets in addition to other retailers. whereas HMT prices its basic range at Rs.048.5. the price of Titan is comparatively higher. One of world’s slimmest wrist-watch ‘Edge’. *Perception Creation – Titan is in the process of creating a perception towards its Gold watches targeting them towards wedding occasions. 550. *Mid-segment market share – Titan’s market share in the mid-segment only accounts for 18%20%. which helps boost sales. *Style – Titan is the pioneer in depicting the watch as a fashion accessory in India.100. 6. Figure 4: Titan Watches SWOT Analysis 5. 7. Titan industries has registered an income of Rs.
The prize winning design will be launched as a new watch in summer 2011 collection . the emphasis is on volume sold but not on margins.1. 6. Type of advertising o Titan known for its precise quality has contracted Aamir Khan the Bollywood superstar known for his precise and perfect thinking to be its • • .3 Promotion • Promotional pricing o Titan is in the process of opening wholly owned retail shops which ensures that the middleman inflation in prices won’t affect price conscious buyers. This can be a dual edged sword for Titan. the difference in the prices of the watches should be justified by the features.com which invites children to use their creativity and design a watch. Therefore the pricing of the Sonata at Rs. • Product pyramid o Portfolio of Titan’s product is of 3 distinct price-range that can be defined in general as Popular. Creative advertising o Titan introduces a contest on cartoon network in india. The company should give more emphasis at the top of the pyramid as profits at the top of the pyramid is very high. The allowances varies from one segment to another.• o 70% of watch sales come from the low-income segment in India. 6. Market Skimming o Titan has introduced the premium Gold watch which none of the competitors provide. the emphasis is on profit margin and image but not on volume. • Price discount and allowances o Every year Titan comes with a price discount sale on the MRP of the watches. This pyramid will guide the strategy of Titan. 350 looks apt. And these come in pairs which is an added advantage and also matches the Indian traditional and cultural levels where Gold is given a prominent status. At the premium segment.1. At the same time Titan has priced its premium watch range at a much lower price compared to other international brands. At the popular segment. Mid and Premium. The retailer (middlemen) buy watches for 17-18% lesser than MRP and hence they are able to get the 17% profit margin on sales.2 Product • Product line: o To increase the sales.
1. The Raga and Silver Raga collection are elegant. Sonata store meet the large scale demand for the watch and also to attract customers in more. The company successfully leveraged this to penetrate the market and gain a market share. • Time Zone o Titan Industries brings together the country’s leading watch brands under one roof. but definite impression and fusion of function and sophistication. . the 'Regalia' range should be communicated to represent the essence of dress-wear. Classique and Regalia should come under this strategy. The Fastrack range is seen as being contemporary.brand ambassador. The advertising. the challenge that Titan faces is to create a strong brand image. providing high quality products. 6. especially in urban area plays a significant role in the success of Titan. Titan has been positioned as a premium brand. The consumers life style in India. Raga has to be differentiated and positioned as exclusive watches for women. With its numerous sub-brands catering to different segments. User Positioning Titan caters to several user groups. • Promotion on occasion o Titan is one of the companies which formally believe in the policy of promotion the product based on the occasions. These shops had full stocks of the watch in demand whereas the others could afford to maintain only limited stock. these strategies can also be analyzed as given below: Attribute Positioning When the company launched its products. As for the female brand ambassador it is in talks with Katrina Kaif the latest craze among teenagers. looks and price ranges and also efficient after-sales service.2 Recommended Brand Positioning Since its introduction. There are 1142 Time Zone stores located across 89 towns which offer its customers the complete watch shopping experience. packaging and merchandising of this range is young.4 Place Keeping in mind about the young trendy and fashionable consumers. Power dressing now has a new weapon! As Magic in gold and bicolor look.children (the Dash). delicate and feminine with each piece being truly unique. Classique has to be positioned as elegant corporate wear that leaves a quiet. • Value Mart o These outlets sell surplus stocks of Titan watches at reduced prices • Sonata Stores o Sonata stores is also an Authorized Service Centre for Sonata & Titan brands. sportspersons and adventurers (PSI4000 and Fastrack range). It should follow different positioning strategies. it was the first to bring quartz watches to the Indian market. 6. providing the customer with variety in brands. Raga. Titan distribute its product and set up ‘world of titan’ in different region. sturdy and reliable.
Titan. The brand. 6.vibrant and ‘cool’ (the ad line says “Cool watches by Titan”). Most of the entrants are catering to the upper end of the market Omega. The new advertisements should clearly portray this. Competitor Positioning With the entry of several foreign watchmakers into the market.0 Conclusion The marketing strategy for Titan was to re-brand their watches and to increase their sales by at least 5%. Benefit Positioning The Fastrack Digital range offers the customer a functional watch that is also attractive. . Tissot. launched more than 30 years ago. the second repositioning will occur when Hindi film actor Aamir Khan has been appointed brand ambassador. Titan already has the Tanishq brand in this segment. which will try to increase watch consumption per person. However. What follows would be the ‘What’s Your Style?’ campaign. by suggesting the use of different watches for different occasions. but Titan should seek to differentiate its offering on the basis of superior style and attractiveness. Cartier etc. The recommendations provided above are well sufficient to ensure that they are achieved.3 Campaign Titan Industries decided to revamp its flagship watch brand. it has to try to reposition this brand by increasing the price range to encourage more customers. The digital watch has a “techno-geek” image. Titan has to counter the threat. 7. with the intention of making it more youthful and relevant to the changing times. has undergone a major repositioning exercise only once before-13 years ago.
out of which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs. Top 3 Players (as per last year) o Titan = ~Rs. This is also due to the fact that the estimated scrap rate of wrist watches is 7. 1998).200 million The world of Titan has an approximately 45% market share • • • .0 • Appendix The Indian watch market is today of 40 million units. which is applicable after 6 years (Source: India market demographics report.300. three fourth of the sales by volume comes from watches that are priced below Rs.8%.8 %( Source: India market demographics report. 1998). outdated models. Even in the organized sector. So. Quartz watches form two third of the organized sector and the rest is split between mechanical and digital watches.1240 million o HMT=~Rs.8. After liberalization of Indian economy in 1992 many international players have entered the Indian Watch market posing as competitive threat to the Indian companies. Watch is one of the consumer durables whose replacement rate is very high. due to high scrap rate.16.7300 million o Timex=~Rs. and the shift from the mechanical watches to the quartz watches it is causing a very high replacement demand for watches.150 million o Total Market=~Rs. This along with the low penetration level represents the untapped market potential for watches in India. The replacement rate of watch is 33.1000.
but also brought in world-class benchmarks in product design. never to browse. the Tata Group had identified the watch category as a potential consumer market for the Tatas to enter. and neither the brands nor the retailers saw it as important.com/titan_stories) Early 2001. traditional markets of the city. choice was limited.titanworld. enjoyed tremendous goodwill in the market. Not only was the accuracy of time-keeping not good enough. Xerxes Desai. it was so natural. which used the unwinding of a mechanical spring to tell time. never to simply check out. a Tata veteran and the then MD of Tata Press. In those days of pre-liberalisation the watch market. quality and retailing into India.The Titan Story (source: http://www. which had not only revolutionized the Indian watch industry. was chosen to lead that venture. The companies . The watch shops were narrow. like most consumer markets in India. The industry was dominated by the public sector which had brought in watch manufacturing into India. Visual merchandising was very much at the stage of "decoration" if any. when Indian consumers rated Titan ahead of all other brands as the Most Admired Brand in India across all product categories (the first ever such survey done by Brand Equity). Back in the early eighties. but the bulky mechanical movement did not permit the creation of sleek products. but outdated "Mechanical" technology. dingy and typically located in the older. but had not really invested in evolving itself and its consumers: styling still remained basic. It was also a fitting tribute to a brand. it did not surprise people that a 13 year-old had managed to upstage many older and more well-known brands: it was expected of Titan to achieve such things. The technology in vogue was the reliable. was way behind the rest of the world. You went there only to buy a watch.
Styling was basic . So Titan. it lasted quite a while. backed by world-class quality created at a world-class plant located just off Bangalore. that was it. doing well that way. Titan brought in the concept of retailing into the watch market. Watches remained a time-keeping device. and therefore no attempt made at it. thank you.Titan saw this as a vital investment. they did not pay a high price for the new piece because. So he and his team went about breaking all the rules in the category: Mechanical technology was the norm .You had 200 models to pick from. mesmerized consumers. Since the quality of the watch was quite good. And when they did change it. and make Titan a fashion accessory. Right from Day 1. demolished competition and rode into the sunset with panache. It created waves right in the early days. Advertising was expenditure . All this affected the consumers.This was a constraint imposed by the technology as well the outlook of the manufacturers. what the hell. These stores not only helped Titan to gain leadership substantially. Shops were dark. dingy and uninteresting . 15. There was hardly any need for consumer contact or research.themselves did not have much contact with retailers. Titan invested significantly in advertising and in that process created a set of memorable and effective properties over the years. established a network of fine showrooms which would later become the world's largest network of exclusive watch stores. Titan would go against that and build its line based on quartz. Titan decided to inundate consumers with a wide choice in style. was launched into the Indian market on the back of these new rules.There was no importance given to presentation. backed by the Tata name. He knew that that was the only way that this new brand would explode the market and wrest control from the dominant HMT. Choice was limited . preferring to sell through wholesalers. so one watch was enough. functions and price. Xerxes Desai's vision was to dramatically alter this perception of consumers. . It was a sellers' market. they were buying another time-keeping device. but also irrevocably altered the retail landscape of the watch market through a demonstration effect on the traditional dealers. Accuracy would become a selling-plank.Quartz had not really taken off in India. and the consumers did not change it for 10. 20 years. The initial range was 350 models. Titan decided to make style a table-stake.
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