Professional Documents
Culture Documents
&
NETAI KHATUA
FROM
TITAN INDUSTRIES-WATCHES
(MARKETING PLAN)
Executive summary:
Titan’s watch segment is the India’s chief producer of watches and ranks fifth in the world in
production of watches.
Company really understands the psyche of consumer and they offered quality products in classical
design with superior technology.
Today the company has model for every prices segment and every market. Basically it deals with three
target market
Titan alone holds 70% market share in domestic level whereas 60% in organized market.
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%.
The competitor are also playing an important role to grab the market share .We as the Marketer try to
increase the market share by grabbing the opportunity from other company. To achieve this the
company have to follow the marketing strategies, which basically include the MARKETING MIX.
There the marketer have to focus at first on PRICE ,which basically for The titan is not affordable in
the Mid –Segment, where as the competitor like HMT and Maxima are doing good business by
holding market share of 45% where as titan hold the only the 32%,there fore it is important for the
company to reduce price in mid –segment.
Though in the improperness or in innovation of the Product, Titan doing well, but there is need of few
changes. For example HMT, the nearest competitor innovate ‘BLUE CHIP’ in the watches.
We also have to implement this type of innovation to bring the flexibleness in our product.
The place can be taken into consideration ,as it is need foe the company to open some show rooms in
the rural area and as the company don/t have so much market share in the foreign market ,so to
expand the business company should launch its showroom all over the globe in the more number.
Market share of the competitor in domestic market
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 sales 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 costs 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.
Introduction
When we talk about the “wristwatch brand”, remember the only Indian wristwatch market were so
shabby, one more ordinary than other and when the craze for “imported watch” was not implemented.
That was before the time of titan, a name which brought the revolution in the Indian wristwatch market.
Titan wristwatch brand is the part of titan industry, which was launched in 1987 by TATA group.
TATA group had indentified the watch category as a potential consumer market for the TATA’s to
enter.
Xerxes Desai, a TATA veteran and the MD of TATA Press was elected to that business.
By offering quality products and classic design with advanced technology to the consumers, Titan
made a success story. Outstanding services, wide variety of models and effective marketing helped
Titan to capture the market in its born stage.
The reason behind the success of Titan watches was their research on the Indian consumer
psychological mind. The company today has a model for every price segment and every market, urban
and rural, regional and international.
Titan brought quartz technology first in the Indian market and acquired first place by displacing HMT
into second place, who offers mechanically driven wristwatch.
It also brought a sense of style and design, which is only available in the West or in Japan at that point
of time.
Environmental analysis
Competitive Forces
Major Competitor
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
Tag heuer
Seiko
Cartier
Giordano
Fashion Houses:
Dkny
Gucci
Adidas
Nike
Bvlgary
Among all these competitors, Maxima-quartz and HMT are major players .The strength and weakness
of the companies varies from segment to segment.
Maxima-quartz:
Strength: hitting hard at mid-price market.
Weakness: the quality, attractiveness, varieties are less compared to Titan Industry.
1. State-owned watch maker, HMT, compete in the domestic market after almost a decade.
2. International player like Espirit, Swatch and Citizen compete in the mid-price segment and also
trying to enter in the domestic market.
Though the future is uncertain, but according to the present performance of all these companies, we can
assume that they would be the major future competitor of the Titan wristwatch.
Price:
Advantage: competitor of mid-price segment will capture the whole market.
Disadvantage: competitor of premium price segment will enjoy the more market.
Product:
Advantage: Increased in the quality will increase the cost which will give benefit to the
competitor.
Disadvantage: Quality decrease will help competitor to capture the whole market.
Place:
Advantage: more number of places of operation will make the competitor week.
Disadvantage: less number of places of operation will leads to wipe out from the market.
Promotion:
Advantage: Increase in sales promotion will affect more market share.
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.
The company’s watch sales grew by 18.8 per cent and its income increasing from Rs255.34 crore
during the second quarter of last year to Rs303.45 crore 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.
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 are as follow.
Brand name
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-
Revenues:
Significant growth over the past three year.
Rs.880 crore sales during the latest financial year (over Rs.1000 crores at retail prices)
PROFIT ROCE
PBT (2005/06) - Rs. 90ROCE (2005/06) - 50%
Crore
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.
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
Some companies can come with the watch which help in knowing the mood of the person.
Sociocultural 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.
Middle group:
In this segment mainly consumers 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.
Need Analysis:
Consumers need
The demand and the need vary one market segment to another segment on the basis of prices & quality.
The current need can be satisfied by the following ways in the different segment.
High class: Titan offered Aurum and Royale in gold watch range .They were stylish watches in
all gold and precious metals.
Middle income class: Titan offered the Exacta range in stainless steel. There were 100
different models in the range. The prices ranges are between Rs.500-700.
Lower-income group: Titan offered the Timex watches and later, when the arrangement with
Timex was terminated, the SONATA range.
The prices ranges were Rs.350-500.There was 200 different models in the ranges.
Performance Analysis
Titan Industries achieved significant growth during the year ended 2007-08. Watch segment sales also
grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed well and new
introductions in gents’ watches, the Raga Crystal for ladies.
In India 70% of the sales in wristwatches come from the lower segment. So, Titan capture the market
by pricing the Sonata at Rs. 350 onwards. It consist of Tata guarantee. Titan prices its world watches
which are compared equal to an international competitor like Calvin Klein. Here a customer pays about
4 times a value of the world watch hence penetrating the market with low prices to international players
to gain market share.
In the Indian watch industry there is no one offering pure gold watches, watches in pair, Jewellery
watches. This concept though exists with foreign competition has just come to India. TITAN offers
these products with the Indian touch in its designs, the products, and the looks. Hence it is able to skim
the market with certain products in these ranges.
A. Strength:
Style: Titan first introduced the ‘style’ concept in India and projected the watch as a fashion
accessory. Now a day’s style is a very much evident factor among the youth. And there is a
craze for stylish wristwatch. So, Titan makes the peoples life more glorious by making stylish
wristwatch.
Models: As Titan offers the best and the biggest range to customer to choose the watch of their
choice with an affordable price.
It offers about 14 different names with about 1000plus different varieties with a watch for
literally everyone.
Exclusive products: Today Titan holds the pride for say that its products both within the
country and internationally running in battle position. Its EDGE the slimmest watch in the
world position.
Watches are available with popular functions like dates, multifunction and
chronographic.
Guarantee/warranty
Weaknesses
Pricing: the average price of Titan in mid-price segment is very high than the other competitor.
Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the mid-price segment
the company is not performing up to the mark due to the lack of choice of consumers.
Market share: As the average price of Titan wristwatch is far more than the other competitor,
Titan has less market share. The market is more demonstrate by middle class people and for
them Titan is quite costly. Among 75% market share in mid-segment. Titan market share is
between 18-20% which is far lower than HMT and Maxima.
Globalized: As the company is Indian based which leads it to the strength, where as it is the
weakness also because the company not sufficiently globalized.
Opportunities
Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there
is demand for the products.
-The fast track brand is promoted in month of June-August when schools and colleges re-
open.
2. Gifting concept: Titan started as a brand which was associated with gifting and relation. The
fight concept sells well for people have come to associate Titan with lovecare and makes
emotion run high.
3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of any make, in any
condition functional or otherwise and receive a flat discount of 25% on their purchase of a
brand new, stylish and technologically advanced watch from Titan.
D. Threats
1. Competitor: As we know that lots of Foreign brands are entering in our country with their
branded watches. As the removal of quantitative restrictions on import watches leads to threat to titan.
2. Premium segment: As in premium segment Titan is getting threats from reputed international
brand such as Espirit, Swatch and Citizen.
3. Mobile: Now a days people can get the time and the other feature in mobile phone. So, the
need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone and some
people think that there is no need of wristwatch.
Before implementing the of marketing strategies we must have to focus on certain things ,which
include the BCG Matrix representation.
Titan industries has registered an Income of Rs.1,104.85 crore as compared to previous year which was
Rs 7,25.11. In all the income the Titan industry had contributed Rs.3,03.45 crore.
BCG matrix helps us to understand the watches playing a important role for Titan industries.
Here we are considering the different watches as in different segment according to its performance as
well as the market share.
? (INFINITY):
As the Titan launched a 4 feet tall watch Replica created by acclaimed sculptor Artist Mr.Arun Verma
.
The INFINITY this unique 4 feet tall watch weight around 70 kgs with solid circumfarece of 8 feet
and width of 30 inches. This watch contains 800 dials and 1800 straps.
TITAN -WWF:
The titan- wwf collection is inspired from six species namely the Tiger, Indian Rahino Gnagetic river
Dolphin ,Red Panda ,Whale shark and Oliver Ridley Turtle.
Earlier they had launched Heritage collection about a year back based on beautiful monument of India
including The Taj-Mahal, Lakshmi Vials Place, Jharokha, Konark ,Ajanta. As it is the new collection
it requires more investment for Tiatn-wwf as the market growth is also high there.
Cash Cow:
It basically include the watches Fast Track, Exacta, pectra for the titan. As in this segment these
watches are playing important role so it require certain amount of money which will help it out to
sustain into the market as well help in liquidity.
Marketing Mix:
PRICE
PRODUCT
PROMOTION
PLACE
Price:
As achieve our marketing our marketing objectives, we can do some change in the pricing .
A. 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.
B. 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 an international players like Calvin Klien
where a customer pays 4 times as value of the world watch, therefore market with low prices to
international players to gain market share.
C. Market Skimming: In Indian watch industry there is no one offering pure gold watches, watches in
pair, jewellery watches. Here Titan offers there product with the Indian touch in its design, the product,
the love.
Product:
Quality and leadership are the two main terms for the Titan. As to achieve the marketing objectives this
aspects should also be considered.
A. Product line: To increase the sales, the difference in the prices of the watches are justified by the
features.
B. 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.
C. 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.
D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve both through
their value for products compared to their prices.
Promotion:
Promotional pricing:
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 allowances varies from one segment to another.
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.
As here we can say that a female actress would be more effective for the promotional purpose. It can be
Katrina Kaif, as now she is one of the popular actress in Bollywood.
Promotion on occasion: Titan is one of the company which formally believes in the policy of
promotion the product based on the occasions.
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 consumers 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.
A.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.
B.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.
C.Sonata Stores: Sonata stores 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.
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Marketing Implementations:
We have gone through the target market segment which basically include
The marketing mix is the part of marketing strategies ,which help to the company to match the needs
of the consumer as well as the need of company, because we know that “MARKETING IS THE
SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED ,DEMAND OF THE
CONSUMER AT A PROFIT”.
Implementation is an integral part of strategy. It make sense when it is implemented into Indian
jewellery market it saw an opportunity for an organized sector. The customer was moving towards
branded goods in other segments. Titan did the process of creating brands in the minds of customer.
Retailing:
Titan bring in the concept of retailing into the watch market ,which will really help in making the
Direct relation with customer. This will help in reducing the cost of intermediaries.
Advertisements cost:
As for reducing the cost of companies we can take advertisement into consideration. We can reduce
the TV ads cost by reducing the duration of advertisement.
Source of information’s:
BOOKS REFERED
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