8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 1/6

MARKETING ASSIGNMENT

PERSONAL LEARNING PAPER- TITAN

Submitted By:

 Priya Mariam Simon

8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 2/6

TITAN

Introduction

Titan is the market leader in the Indian watch industry. Titan had revolutionizedthe watch market with its emphasis on style and international quality. It had created

strong brand equity in India and some overseas market. It has also established a strong presence in the area of branded gold jewellery. Titan with its top management team and

the backing of the TATAs has achieved one of the leading marketing companies.

Company History

Titan was set up in July 1984, under the leadership of Xerxes Desai, with its

corporate office in Bangalore. When it entered the market, HMT was the market leader .Titan went ahead with its plan to make the quartz watches. The company made only a

handful ordinary looking quartz watches and had neglected styling as a whole. Titan believed that the Indian consumers desire to own a good looking watch had been totallyignored.

Titan decided to grow the market by encouraging ownership of multiple watchesthereby stimulating the purchase of replacement watches and targeting under penetrated

segments like women and first time buyers.

Titan looked at new business opportunities. Titan realized that its watches alonemight not be able to price open the global market. The Company’s diversification into

 jewellery was a good gamble. Tanishq was branded and had been set up as an export-

oriented unit to complement the watches division. The company started the manufactureof jewellery and jewellery watches in 1994. Titan decided to focus on the domestic

market.

By the early 2000’s Titan’s share of the legal watch market had dropped. Despite

these setbacks, Titan started reworking its strategy, making several changes in the

 product and product mix. In 2002, Titan announced plan to regain its market share. Thecompany also began extension forays into silverware, leather accessories and sunglasses.

Titan also looked at opportunities in instrumentation, automobile and aerospace

industries where it could leverage its precision engineering skills.

Core Competency

Titan’s core competency is Quality delivered at each purchase and this is for thelower segment watches like HMT and Maxima. When people buy a Titan they know it’s

a piece of quality and is backed by the Tata’s. Titan’s innovations in the field of 

technology, style, uniqueness and they have a market from steel to gold to diamonds.Titan Edge is a unique creation in the world, owned by Titan.

8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 3/6

Marketing-Watches

The quartz watch was an entirely new product for India. Titan decided that itwould change the way watches were marketed in the country. Titan’s marketing strategy

had five main bases: a product of international quality, Indian designs, competitive

 prices, intensive advertising and promotion, and specialized retail shops to control the presentation.

Titan’s ambitious marketing program aimed at positioning its watches as highquality fashionable products available in clean and comfortable surroundings, priced

higher than the other watches. Titan decided not to compete directly with mechanical

watches from HMT. They put in place an integrated marketing mix consisting of attractive designs, high quality products, sufficient inventory, a logistical support system

and a well timed promotional campaign.

Distribution

Titan’s watches were sold in thousands of stores including company showrooms

and exclusive stores. In addition to this they opened hundreds of service centres to repair watches, replace batteries or change straps.

Titan’s approach to distribution marked a different example. They opted to find away around wholesalers, reaching out to the retail channels directly. Titan’s shops were

easily recognizable and located in the most fashionable shopping centres. Titan then

started a scheme of converting some of the outlets to Titan shops. These shops acted asTitan dealers, though they stocked other brands.

Segmentation, Targeting and Positioning

Titan first launched its quartz range with heavy advertising. The first

advertisement described the titan quartz as the international watch that could be bought inIndian rupees. Later campaigns also positioned the watch as a gift item, with

advertisements saying: The next time your husband wants to buy you a saree ask him for a Titan watch. This campaign was an enormous success.

Music became an essential part of Titan’s advertisements. The advertisements

featured two or more people- parents, spouses, siblings coming for specific occasions. In

the early 2000s, Titan realized it would have to use other ways to motivate people to buytheir watches.

Segmentation became an important issue as their operations expanded.Titan believed that different brands have to be created for the different segments. Titan

has segmented the watch market and identified clearly the needs of each group. Titan has

segmented the market on the basis of the following variables: Demographic (age and

social class), Psycho graphic (lifestyle and personality), Behavioural (benefits and

8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 4/6

occasions, Geographical (region), Targeting segments and User positioning. After 

carrying out an in depth market study, Titan identified three different specific market

segments for its watches. The segments were arrived at using benefit and income level asthe bases.

• The first consisted of the high income/ elite consumers who were buying a

watch as a fashion accessory. They were also willing to buy a watch onimpulse. The price tag did not matter to this segment. The price range

 between Rs.20, 000 and Rs.1 lakh.

• The next segmented consisted of consumers who preferred some fashionin their watches but to them price did matter. The price range between

Rs.500 and 700.

• The third segment consisted of the lower income consumers who saw awatch mainly as a time keeping device and bought mainly on the basis of 

 price. The price range between Rs.350 and 500.

FasTrack, Raga, Sonata, Xylys, Nebula and Flip are sub-brands within Titan

that are aimed at the youth, men, women and children Sonata is the value for moneywatch brand from Titan industries. It is targeted at consumers seeking durability and

value with a clear positioning of “No compromise watch”.

FasTrack was positioned as a youth brand. The young Indian racing driver 

 Narain Karthikeyan was the brand ambassador. The company used focused distributionsupplementing its watch outlets with youth focused outlets like music stores and internet 

café’s for FasTrack.

Titan targeted its Raga watches at women in the premium segment which gave

them the feeling of intimacy. The company realized that more women were wearing

watches for functions. It offered slimmed down and sleeker watches for women. TheRaga range remained for more special reasons, like marriages or parties. 

Xylys comes from the House of Titan, is targeting a new generation of achievers

who are looking for symbols to reflect their lifestyle, attitude, moods and beliefs. 

Nebula-precious jewellery watches from Titan. It is a collection of intricately

carved designs for women inspired by floral patterns and these watches are engraved with beautiful patterns in gold and precious stones. This is for the premium segment.

Titan Edge and Titan Steel are the mainstream Titan products which enhance the

 brands image of leadership, innovation and pride. Titan is considered to have one of thesuccessful segmentation and targeting.

Titan adopted a strategy of focus. Titan tries to achieve competitive advantage byoptimizing its strategy in the different market segments.

8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 5/6

Pricing Strategy

Titan prices according to the features and value delivered. They get the maximummarket share from Sonata. Since there is no one offering pure gold watches and jewellary

watches so it is able to skim the market with their distinct products. Titan comes out

every year with a price discount sale on watches. The differences in the prices are justified with its important features and style. They are trying to maximize their profits

with the help of different product mix.

Promotion

Titan ties up with various magazines, television and outlets where Titan watcheswere given as gifts for winning a particular contest. Another of promoting the Titan

watches is through seasons. For example gold watches are preferred for a wedding

occasion. Titan is directly tapping the customers by sponsoring major events, culturalsand other fests in colleges, schools and other happenings. Titan introduced a contest on

cartoonnetworkindia.com which invites children to use their creativity and imagination to

design a watch. The best design was launched as the new summer collection and also thereceived the first watch of that collection.

Conclusion

Titan chooses to see that its product can survive, rise and be the product leader.

They have achieved a balance between cost focus and differentiation focus. They help in

 providing customers convenience in their shopping. Titan has its shop in almost alllocalities so it’s feasible for the customers to walk in to the Titan shops at any time

irrespective to the distance. Titan provides the best quality watches at affordable priceand design. This is the most salient feature of Titan. Titan concentrates on all economicclass of customers there by achieving maximum customer base. Also its advertising

strategy is so brilliant that it captures the minds of customers thereby imparting an

emotional thirst and motivating them to buy Titan brands.

REFERENCES

Marketing Management 12e South Asian Perspective- Philip Kotler and et al

www.titanworld.com

http://www.tata.com/titan/articles/20051011_timing.htm

http://www.icmrindia.org/casestudies/catalogue/Marketing1/MKTA013.htm

http://analyticsbhups.blogspot.com/2007/07/brand-dilution-is-as-important-as-brand.html

8/8/2019 43361968-Titan[1]

http://slidepdf.com/reader/full/43361968-titan1 6/6