Marketing_management_for_titan_watch_com.docx

Marketing Management of Titan Watch Company CHAPTER 1: INTRODUCTION OF MARKETING MANAGEMENT OF TITAN WATCH COMPANY 1.1.

Titan’s Marketing Management:

(Theory 2000 – 2011): “Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.”

Titan has incorporated sensational brand status with ethnocentric loyalty with the base of price and income level of customers for choosing target markets and they included advertising strategy with key people in India like movies star, Cricket star and also included time-retail concept for creating, delivering, and communicating superior customer value for achieving overall customer retention. (Theory 2012 – 2016 ±): “Marketing management depends on the size of the business and the industry in which the business operates. Effective marketing management will use a company's resources to increase its customer base, improve customer opinions of the company's products and services, and increase the company's perceived value.” With times Titan’s marketing management strategy also changed with broad definition. They started their business in 1984 and now they are number one watch manufacturer in India and has large capabilities of deploying exceptional customer value to customers. They still offer sensational brand status with ethnocentric loyalty and include effective ways like new features for different classes and more stylish designs for improving customer opinions of the company's products and services, and increase the company's perceived value with their extensive capabilities. 1.2.

Titan’s Vision- Mission-Business Plan- Corporate Strategy:

Vision: “We create elevating experiences for the people we touch and significantly impact the world we work in.” Here Titan’s Vision reflects their desired business position in the future.

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Marketing Management of Titan Watch Company

Mission: “We will do this through a pioneering spirit and a caring, value-driven culture that fosters innovation, drives performance and ensures the highest global standards in everything we do.” Titan’s mission expresses in objectives along with the ways to achieve these objectives to make their vision successful.

Current Business Plan of Titan Watches: Titan Industries Limited, a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation (TIDCO), is planning a capital expenditure of Rs 450 crore in 2013-14 on retail expansion and new manufacturing units, a growth of three times over last year.

In 2012-13, it had spent Rs 150 crore on capital expenditure. The company, which currently has 953 retail outlets across all its business divisions, plans to open at least 200 outlets for its watch, jewelry, eye wear and fashion accessories business. It also plans to set up two Greenfield manufacturing plants for watches in Coimbatore and precision engineering in Hosur besides setting up a Karigar centre at Hosur, Bhaskar Bhat, managing director, Titan Industries said. “We are currently manufacturing 7.6 million watches in Hosur and import high end watch, Xylys from Switzerland. We are now looking at setting up a new plant to manufacture two million mid-range and other high-end watches like Edge and Octane among others in new plant at Coimbatore. We are currently awaiting all clearances and start the work shortly,” Bhaskar Bhat said. The new plant is scheduled for completion during the fourth quarter of this fiscal. The company is looking at opening 40 World of Titan stores, 25 Helios stores for multi-brand watches and 60-70 stores for Fastrack watches and accessories.

For the year ended March 2013, Titan Industries reported a 14.3% growth in revenue at Rs 10,213 crore, with watches contributing Rs 1,675 crore.Bhat said the company would launch a unified loyalty program called ‘Encircle’ for its five million customers, wherein they can redeem their bonus points in any Titan retail outlets. The scheme will be launched on June 10, he said.

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Marketing Management of Titan Watch Company Corporate Strategy: Titan watch’s corporate strategy is that company brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling, manufactured in state of the art factor by Hosur, Tamil Nadu. Leveraging its understanding of different segments in the watch market, the company launched a second independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled watches at affordable prices. In addition it focused on the youth with its third brand – Fastrack. It has also premium fashion watches by acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss, while.

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

Attribute Positioning

User Positioning

Competitor Positioning

Price Positioning

New logo and tagline

• When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga, Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Raga has been differentiated and positioned as exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique.

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

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

• In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as ‘value- for- money’: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality.

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

Therefore Titan watches kept themselves positioning as a premium brand, providing high quality products with new ways to establish their touch of watch with customer’s current needs and demands. So the corporate strategy of Titan watches is always about serving distinct products with high quality products.

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Marketing Management of Titan Watch Company

CHAPTER 2: MARKETING ANALYSIS OF TITAN WATCH COMPANY 2.1. SWOT Analysis of Titan: SWOT Analysis The overall evaluation of a company’s strengths, weaknesses, opportunities, and threats is called SWOT analysis. It’s a way of monitoring the external (Opportunities and Threats) and internal (Strengths and Weaknesses) marketing environment.

STRENGTHS  world’s top five and India’s biggest watch manufacturer  Brand image & fashion accessory

WEAKNESSES 

Lack of futuristic approach



Lack of flexible thinking



Xylys have been camouflaged by the

 Quality or price positioning  Market segments with large potential.

Titan brand Image 

Haven’t penetrated the global market

 Customer value and offered after sales service  Large network of exclusive stores and service centers  Different sub-brands  Positioning on Demographic segmentation.  Exported in over 40 countries

OPPORTUNITIES  Nearly 34 million watches are sold

THREATS 

through gray market channels  Opportunity of increased sales in

Too many players will dilute the market & the profit margin



Low priced China watches



Mobile phones

 Exchanging offer



Lack of focus in Brand strategy

 Rural market



Stiff Competition faced by foreign

compared to customers volume.

 Under penetrated market

brands

 Global expansion and tie-ups

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Marketing Management of Titan Watch Company 2.2. PESTEL Analysis of Titan: A PESTEL analysis is a framework or tool used by marketers to analyze and monitor the macro-environmental (external marketing environment) factors that have an impact on an organization. The result of which is used to identify threats and weaknesses which is used in a SWOT analysis. PESTEL stands for :P – Political, E – Economic, S – Social, T – Technological, E – Environmental, L – Legal

Political  Reduced tax structure  Friendly legal acts for environmentalregulations.  Strong political stability.  Waived trade restrictions Social  Increase career opportunities  New social trends  Modern thinking reducing age problems

Environmental  Environment friendly production  Environment friendly raw materials  Advantage market position

   

Economical Increased economic growth. Reduced interest rates in watch industry Stable exchange rate Stable inflationrate

Technological Opportunity for R&D Automation New friendly technology Reduced charge for technological advances Legal  Friendly employment law  Friendly manufacturing law  Friendly export import acts    

2.3. Michael Porter’s Five Forces: Analysis of Titan: Since its introduction in 1979, Michael Porter’s Five Forces has become the de facto framework for industry analysis. The five forces measure the competitiveness of the market deriving its attractiveness. Threat of Substitute Products

Bargaining Power of Suppliers

INTENSITY OF RIVALRY WITHIN THE INDUSTRY

Bargaining Power of Buyers (Costomers)

Threat of New Entrants

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Marketing Management of Titan Watch Company

The following is a Five Forces analysis of Titan Company Ltd. in relationship to its Titan brand in watch industry.

Threat of New Entrants/Potential Competitors: Medium Pressure 

Entry barriers are relatively low for the wrist watch industry: Lots of foreign brands are entering in the country with their branded watches. As the removal of quantitative restrictions on import watches lead to a threat to Titan. So the new entrant has to have an offering, which can be positioned and differentiated from the other players in the market. This could be either price or functional or emotional appeal. So the prime barrier for entry, in the current context, for a new entrant is to build a brand image and price competitively.



Titan is seen not only as a watch but also as a brand. It has held a very significant market share for a long time and loyal customers are not very likely to try a new brand.

Threat of Substitute Products: Low pressure Threat of substitutes is moderate for watch industry because other products of different category are serving the purpose of time keeping. However, in terms of the companies offering various variations for watches such as pendant watches and jewellery watches, some sort of substitution has developed. Rich consumers prefer to purchase watches more as a fashion accessory rather than simply for its typical use. Even nowadays people can get the time and the other feature on mobile phone. So, need of wrist watch is in decreasing trend.

The Bargaining Power of Buyers: Medium pressure Buyer power is medium, which make the watch industry moderately unfavorable. The Indian watch buyers are very price sensitive, especially in the lower end of the market. At the same time there are a segment of people who are willing to pay a premium for watches with good performance and with a recognized brand name. So understanding the buyers’ preferences is very crucial in this industry in order to gain a substantial market share. Customers have many choices to choose from, so they can easily change their mind and buy watch from other competitors.

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Marketing Management of Titan Watch Company

The Bargaining Power of Suppliers: Low pressure Titan has its own production facilities for which it has invested roughly 120 crore rupees over the years, the manufacturing capacity of which is 6 million units. Also there has been a rise of low cost producers in China & Taiwan which has provided an opportunity for watch makers to outsource watches at low cost, just as Titan has done to outsource the components for Dash. Due to the large supply of watch movements available, there is little supplier power in the watch market. Under this force, watch industry is favorable.

Rivalry Among Existing Firms: High Pressure Rivalry is high in watch industry because many well known domestic and foreign brands are the dominant players of the industry. And these competitors are trying to differentiate their watches through new features and functions. Rivalry is really unfavorable for Titan.

Due to technology improvements and competitions between different competitors already exist in the industry; four out of five forces of Titan are moderately unfavorable. 2.4. The Titan Company’s Marketing Strategy: The centerpiece of Titans strategy was Quartz which changed the Indian watch market. Titan watches without any doubt are the market leader in this segment. The core marketing concept was that the company first wanted to project the watches as something more than a normal time keeping machine and to introduce the concept of style in India was Titan. Another sub brand launched by Titan was Sonata which was a huge success because of the fact that it was a cheaper product and also it is a premium brand. Sub brands like Steel, Dash, Edge, Nebula, Fastrack, Raga and Royale were introduced to the market when Titan realized that the customers were looking for something new and exciting. Titan is trying to bring larger connection between the customers and the Titan Brand with the new concept of titan “Be More”. By shifting its focus from product attributes to emotions, yearnings, aspirations and experiences they are trying to change its portfolio.

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Marketing Management of Titan Watch Company

Segmentation: Segmentation is based on Lifestyle, Income, Age and Gender.

Upper-Middle Segment

• For the upper-middle segment Titan introduced watches like aurum, Royale and Nebula with their price ranging between Rs20000 and Rs100000

Middle Segment

• For the middle segment Titan introduced watches like Exacta with price range between Rs 500 to Rs 700 and 100 different types of models. Titan also introduced the brand Raga for women in this segment.

Lower Segment

• For the lower segment Titan introduced watches like Sonata with price range between Rs 350 to Rs 500 and 200 different types of models. Titan also introduced the brand Dash for children in this segment

AGE GROUPS

GENDER

Youth: Titans sub brand “Fastrack” has been created for the young generation mainly comprising of sporty watches.

Men: Watches launched for men by Titan are Sonata, Steel, Nebula, Fastrack and Titan.

Elders: As elders generally prefer steel designed watches Titan has created steel series and Sonata watches.

Women: Watches launched for women are Raga and Octane.

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Marketing Management of Titan Watch Company 2.5. Marketing Mix of Titan: The marketing mix is a business tool used in marketing and by marketers. The marketing mix is often crucial when determining a product or brand's offer, and is often associated with the

four P's: price, product, promotion, and place.[1] In service marketing, however, the four Ps are expanded to the seven P's [2] or Seven P's to address the different nature of services. 1. Product: The Titan Company seeks to achieve both quality and leadership with the help of products compared to its prices. When Titan was established its main focus was premium segment of the watch market and gradually the company widened its base by creating new segments like the mass market.

2. Price: 

Survival: Some of the Titan watch brands are priced according to its different and unique features. For example: Fastrack which are for the youths are priced between Rs 550 – Rs 1,430, Edge which are normally worn by business class people are priced between Rs 4,500 - Rs 5,200, Royal for the upper middle class people are priced between Rs 960 - Rs 2,830.



Market share: Sonata watches under the brand Titan are priced at Rs 350 and above which is most commonly used or worn by the elders as a result of which 70% of sales comes from the lower segment.



Market Skimming: Titan is the only brand that provides its customers with pure gold watches, jewellery watches and watches in pair in the Indian watch industry.

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Marketing Management of Titan Watch Company 3. Place: Titan brings together all the leading brands of the country under one roof. They provide its customers with different variety of brands, efficient after sales service, looks and price ranges. Titan sells there surplus stock at reduced prices in Value Mart. But these shops do not work as normal shops and also they are not placed in the main locations. As the price for Sonata watches are cheaper, it attracts a larger number of customers and hence there is an increase in demand of these watches. Sonata stores are an authorized service centre for Titan and Sonata brands. These shops can afford to maintain full stocks of watches in demand as compared to the others.

4. Promotion: Marketing pricing: The opening of more and more new stores like the world of Titan eliminates the element of middlemen as customers can directly purchase the watches from the dealer. In such cases the retailer gets 17% profit margin on sales as they buy watches for 17-18% lesser than the marked retail price. This increases trust worthiness, differentiation, innovation and value for the product. Every year Titan provides discount on watches to its customers which attracts more customers. Creative advertising: Titan products reach its customers through advertisements on Television and Internet. A contest is organized by Titan on cartoon network for children to use their creative skills and design a watch. The design that wins the first prize is then launched as its new collection. Titan believes in producing well made and clean ads. The brand ambassador of Titan watches is Amir Khan and for its sub brands , brand ambassadors are Mahindra Singh Dhoni for Sonata, Gul Panag - Rani Mukherjee for Raga and Rahul Bose for Xylys. The Titan tagline is “Be More” and the tagline for its sub brand Fastrack is “How Many You Have”.

Promotion on occasion: Titan believes in the policy of promoting its products based on the various occasions.

5. People: Today one can schedule his/her day according to time and a watch will help him/her in executing that schedule. Titan understood this need of the people and came up with beautiful watches. Some of which are simply the masterpiece. Titan Edge is supposed to be the world's slimmest wrist watch as claimed by Titan. Apart from the Titan Edge, the list of Titan watches also includes Steel, Regalia, Raga, Fastrack, Technology, Nebula, Bandhan, Sonata, Octane and many more. Today, Titan has earned

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Marketing Management of Titan Watch Company the image of a brand which makes a compromise on quality and the overwhelming response from the people encouraged the company to run a decent number of exclusive showrooms of Titan watches. It has skilled employee to serve the customers.

6. Process: Spread across India, with over 740 service contact points in more than 250 towns, Titan Company's Service Centre network is committed to deliver a satisfying postsales experience to all the customers.

The Watch Care Centres are attached to the World of Titan and Authorized Service Centres are attached to the multi-brand outlets, both offer quick and high-quality repairs for all types of watches currently sold by Titan with a six-month service guarantee. At the Titan Watch Care Centres, all repair activities follow a strict and systematic process that is controlled and measured through an ISO audit system. To ensure good quality, faster turnaround time and customer satisfaction, Titan Industries has various schemes in place. A post service follow-up (for major repair activity) is mandatory to complete the cycle of customer satisfaction. Titan’s loyalty Signet program - where customers can redeem their points is part of Titan's effort to retain and value its loyal customers.

7. Physical environment: Titan has chosen some of the supreme qualities to craft it watches. Titan watches are about high performance, quality, durability and endurance. A series of watches that epitomizes person’s character. Sensitive, elegant, energetic, imaginative, talented, simple, honest, original, smart - anyone name the quality and Titan will surprise him with its master craftsmanship in making wrist watches.

8. Packaging: Titan considers packaging as an integral element of it product because it offers protection and increased shelf-life. Therefore, Titan focuses on sourcing the best raw materials for packaging. High-end products are usually sold in high quality leather cases and medium to low-end products are offered with leather and plastic packaging.

The 4 Cs of Titan consists of Consumer, Cost, Convenience and Communication. Nowadays, it can be more useful to think of not just the ‘four Ps,’ but an equivalent ‘four Cs’ as well; the ‘four Cs’ being from your customer’s perspective. To survive in the market Titan has started moving down the ‘four Ps’ and their attendant ‘four Cs.’

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Marketing Management of Titan Watch Company

1. Consumers: Titan company try to sell what the consumer specifically wants to buy. So, it has studied consumer wants and needs in order to attract them one by one with something he/she wants to purchase. Thus based on those it has made different types of segmentation on Lifestyle, age income and gender. Then according to each segments it is manufacturing watches.

2. Costs: Titan believes watches are no more a device of time keeping as it has become the most essential accessories of fashion for consumer. Titan watches enhance the style of wearer and keep people in latest fashion. To stay abreast in the markets, the wide collection of Titan watches is designed with advanced technology which adds long lasting impression with durability and quality features in it. One can easily pick the best timepieces in accordance of latest fashion and preference, which also increase the satisfaction.

3. Communication: Titan not just thinks of selling watches but also want to build long term relationship. Titan is making its advertising interactive so it can receive constant feedback from its customers, which will allow it to improve and stay ahead of the competition.

4. Convenience: Titan knows how the target market prefers to buy, how to be there and be ubiquitous, in order to guarantee convenience to buy. With direct and Internet marketing

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Marketing Management of Titan Watch Company Titan has made the purchases more convenient for the customer. Titan facilities its customers by providing online purchase of watches and online after sale services. 2.6. Value Chain Analysis of Titan Watch: Firm Infrastructure: Financially sound, good corporate governance, well-established infrastructure to support new investment, Enterprise resource planning though SAP and strategic planning

Human Resource Management: Titan manage recruitment, training & development

Technology Development: Focus on Innovation to reduce costs, R&D programme, Customer Relationship Management (CRM), Production Technology and Product Assembly Technology

Procurement of Resources: Opportunity for local as well as global procurement, supplier/vendor development programme, build strong relationship with vendors through collaboration, preference towards domestic and eco-friendly suppliers.

Inbound Logistics  Premium product components sourced from foreign supplier  Component for Medium to low end product sourced locally

Operations  Products manufacture d locally  Efficient demand planning  State-of-art facilities

Outbound Logistics  Main distribution done through wholesalers  Use of Clearing & Forwarding Agents to reduce distribution costs

Marketing & Sales  Sell products via own exclusive showrooms  Provision of shopping online  Network of spare distributors

Competitive Advantage

Support Activities

and rewards & remuneration; encourages employees to learn, innovate and grow; Leadership development.

Service  Establish service centers close to the showroom  Focus on after-sales service and complaint handling  Customer Loyalty Program

Primary Activities

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Marketing Management of Titan Watch Company CHAPTER 3: QUALITY MANAGEMENT, CONSUMER LOYALTY AND BRANDING 3.1. Total Quality Management: Successful companies like Titan have adapted the Modern Customer-Oriented Organization Chart which is clearly stated in their Values and Standards specifying the “Total customer orientation” mindset which allows Customers take precedence over all else, always.

Customers (Watch Enthusiasts)

Frontline People

Middle Management (Marketing Managers)

Customers

Customers

(Sales and Service Centres)

Top Management (Board of Directors)

Titan Watch Company makes use of the Customer Relationship Management (CRM) to manage information about individual customers and all customer “touchpoints” to maximize loyalty. It enables the company to provide excellent real time service based on what they know about the customers and customize market offerings, services, programs, messages and media. The company is therefore able to focus on total quality through correctly identifying customer requirements, communicate the requirements to product designers, timely and accurate delivery of requirements, customer education and technical assistance for product use, after sales service and promotions, gather customer ideas for improvements and communicate to relevant sectors of the company.

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Marketing Management of Titan Watch Company Accordingly, by maintaining a strong value chain model the company is able to take an organization-wide approach to continuously improve the quality of its processes, products and services and implement the Total Quality Management (TQM) approach. 3.2. Customer Loyalty: The company with the focus on building loyalty is creating superior products, services and experiences for all its target segments. It has developed individual websites for each of its watch brands providing its customers with detailed product information, sales and service centre locations, Online Purchase Portals in partnership with various product websites and Customer Blogs for discussions and feedbacks ensuring the company to maintain the database of information of customer needs, preferences, contacts, purchase frequency and satisfaction.

But most importantly, taking a cue from brands which have unified loyalty cards with diverse brands Titan Industries has merged its loyalty programs across three brands into one Encircle Loyalty card. Titan ran three separate loyalty programs – Vista for its Titan Eye Plus, Anuttara for Tanishq and Signet for its World of Titan. Now, customers of Titan can expend points across these three brands as well as at exclusive Fastrack Stores and at Helios, its multi-brand watch chain.

Accordingly, the combined database of customers across all five Titan brands is huge: Eight million customers and still ticking. The unified loyalty program has helped in understanding and connecting with the customer base for the right strategies. Titan customers can now redeem points across 950 stores of its various brands whereas earlier it was limited to only one channel. 3.3. The Brands & Branding: Titan Company is the fifth largest integrated own brand watch manufacturer in the world. The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Titan Company transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Titan Company reached out to

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Marketing Management of Titan Watch Company the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 150 million watches world over and manufactures over 15 million watches every year. The Brand Creation Process for Titan Watch Company:

Best Staff Mix

Rock Solid Vision An organization with:

Volume Creation:

Started company with few executives with rich but varied

Design,

Only 5% Share of analog watch

experience:

Automation,

High Opportunity Segment

MD from Tata Group Professionals with watch manufacturing exposure

Marketing Competence Driven by:

Professionals with marketing and retail exposure

Premium Brand:

Futuristic Mindset Contextual Insight

Road Map:

BRAND CREATION Right Market Segment

Market Analysis Nature of Market

Medium Range Market:

Competitor Operations and Offerings

Large to handle

Customer Requirements

High growth Potential

Identification of Major Gaps:

Quick Segmentation:

Styling, Service, Store Interior

“Doing it right the first time”

Main Weakness:

Use of Innovative Advertising to create and position

No brand has Strong Personality

the brand

Capturing the important market segments and the changing fashion trends, Titan Company has • Titan:

brought

which

forth

is

designed

four

core

for

the

watch

mid-premium

brands:

segment

• Fastrack: which is crafted to fit the trendy fashion space with a focus on the youth • Sonata: which is created for the mass market and has emerged as India’s largest selling watch

brand

• Xylys: which is fashioned for the premium market, aiming at the connoisseur and new-age achiever

The Titan brand architecture comprises several sub-brands, each of which is a market leader in its own space. Notable among them are: Titan Edge, Titan Raga, Nebula and several other collections like Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the

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Marketing Management of Titan Watch Company HTSE series. The Titan brand portfolio owns over 60% of the domestic market share in the organized watch market. The Branding Strategy for Titan Watch Company: The Specific Branding strategy focused on by Titan Watch Company is Emotional Branding which has some of its own characteristics;

1. From Consumers to People 2. From Product to Experience 3. From Honesty to Trust 4. From Quality to Preference

5. From Notoriety to Aspiration 6. From Identity to Personality 7. From Functions to Feel 8. From Ubiquity to Presence 9. From Communication to Dialogue 10. From Service to Relationship Brand Positioning Strategies:

Overall strategies: Since its introduction, Titan has been positioned as a premium brand, providing high quality products. Titan is struggling to have a strong brand image in UK market due to its numerous sub-brands that caters to different segments in India. It follows different positioning strategies; these strategies can also be analyzed as given below:

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Marketing Management of Titan Watch Company Attribute Positioning: • When the company launched its products, it was the first to bring quartz watches to Indian market. The company successfully leveraged this to penetrate the market. Raga, Classique and Regalia come under this strategy. Classique positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Regalia ranger represents the elegant-wear. Raga has been differentiate and positioned as exclusive watch. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece truly unique.

User Positioning: • Titan caters to several user groups – children (the Dash), sportspersons and adventurers. The fastrack range is seen as being contemporary, reliable and sturdy. The advertising, packaging and merchandising of this range is young, cool and vibrant.

Benefit Positioning: • Titan seeks to differentiate its offering on the basis of superior style and attractiveness which is offered by fastrack Digital range

Competitors Positioning: • With the entry of several foreign watchmakers into the market, Titan had to encounter the threat. Most the entrants are catering to the upper end of the market – Omega, Cartier etc.

Quality or Price Positioning: • In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as “value-for-money” (less than Swiss watches and higher than Japanese), attractively styled and of good quality.

Other Strategies: • Titan is also trying to reach new customer segments. They are now trying to target all adults in socio economic classes A&B. • Titan is also looking at innovative retail strategies and planned to launch ten innovative product collections soon.

3.4. The Box Analysis for Brand Elements: Memorable •The company has a memorable brand name and all its sub brands of watches such as Fastrack, Sonata, Xylys,Titan Edge, Titan Raga, Nebula, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the HTSE have unique names that are memorable.

Meaningful •The Brand categories are built based on the respective target markets having a meaningful representation for each consumer segment.

Likable

Transferable

Adaptable

Protectable

•All Titan Watch Brands are aesthetically appealing to the respective segments with unique designs and functions for the consumers.

•The Brand name is definitely transferable as already proven by the company since the original watch company has now expanded into the jewelery, eyewear and other accessories markets.

•The Brand is also Adaptable as proven by the company itself when they re launched the logo of the brand during the market expansion.

•The brand has also become legally protectable as the brand name itself signifies the product category.

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Marketing Management of Titan Watch Company 3.5. The Brand Dynamics Pyramid:

Nothing else beats it

Does it offer something better than others?

TITAN WATCH COMPANY BONDING

ADVANTAGE

Strong Relationship/ High Share of Category Expenditure

Can it deliver? PERFORMANCE

Does it offer me something?

RELEVANCE

Do I know about it?

PRESSENCE

Weak Relationship/ Low Share of Category Expenditure

At Titan Watch Company, Relationships are a sacred bond of trust for them. The Company has built relationships and forged lasting bonds with customers, employees, shareholders, network of business associates, and suppliers. With their futuristic designs, the company created a desire in the minds of customers and offered them accessories for every occasion. In a small way, they have been a part of all their celebrations. ‘Customer First’ - an initiative driven by the company is an embodiment of the customer-focused culture that imbibed from the very beginning. The company continues to foster greater customer commitment by making product lines more comprehensive.

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Marketing Management of Titan Watch Company CHAPTER 4: ADVERTISING AND MASS COMMUNICATION

4.1.

The 5 Ms of Advertising:

Message Money

Mission - Achieving highest sales and maximize revenue - Reaching highest number of potential clients and effective brand positioning

- PLC: Maturity (Most of the brands) - Market Share and Consumer Base: One of the top 5th brands and mostly mid income family based - Competition & Clutter: Many Intl brands, local brands, and dulicate brands. - Regular in all Media - Highly Substitutable

4.2.

Mass Communication:

4.2.1. Advertising Budget & Campaign Cost

- Message generation - Message evaluation - Message execution - Social Responsibility Review

Media -

Reach, Freq, Impact major media types

-

TV, Print, Billboard, Radio etc

-

Broadcasting time, frequency in a month

-

Geographical location of major TG.

Measurement - Communication: Positive word of mouth, increase in brand awareness and recognition - Sales Impact: Increase in sales volume and revenue

Stage in the Product Life Cycle Considering the span of time in market and variety of brands that are launched at different times, Titan’s various brands are in different stage of PLC. Some are in maturity and some are in declining stage.

Market Share and Consumer base TITAN is one of the leading watch manufacturers in the world. They are holding majority shares of the South Asian Market by their economical product range and the consumer section is mainly based on middle income group and young generation. Competition and Clutter TITAN had been always been under pressure from the international brands and the other cheap watch manufacturers and the other category of the manufacturers who make duplicate products. All the products are of same kind and used for only one common purpose therefore, scope of differentiation is very low and brand positioning entirely depends on the image of the company and the brand itself.

Advertising Frequency

To be on top of every brand and establish a strong brand positioning it is suggested to be more available and frequent in front of the consumers by any means. Now a days media is playing a very vital role on decision making process. Thus, effective ad in an influential media can result to exceptional growth on business. Product Substitutability Wrist watch is such thing that could be easily substituted by the other wrist watches, mobiles, tabs, personal computer etc. Now a days hardly few people are found who are in need of this product thus, product substitutability is very high in this business and it is quite crucial to manage this.

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Marketing Management of Titan Watch Company The advertising budget of a business is typically a subset of the larger sales budget and, within that, the marketing budget. Advertising is a part of the sales and marketing effort. Money spent on advertising can also be seen as an investment in building up the business. Budgeting Methods: There are several allocation methods used in developing a budget. The most common are listed below: Percentage of Sales method

Objective and Task method

Competitive Parity method

Market Share method

Unit Sales method

All Available Funds method

Affordable method

We are considering objective and task method for TITAN since most of their advertisings are purpose specific and made for a certain target group. This method begins by setting specific marketing objectives and deciding on the tasks required to meet those objectives. (Example: Increase out-of-state clients by 5% using online promotions.) Then determine your budget by estimating the costs of carrying out those tasks. If you can’t afford to fund all your ideas, rank them and focus on the top few.

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Marketing Management of Titan Watch Company 4.2.2. Sales Promotion Tactics For The Wrist Watches Of Titan:

Coupons: Occasionally: Eid, Puja, Christmas etc.

Premiums: Cash Refund Offers:

Purpose specific offers, for ex, dinner arrangement for 2 in a luxurious hotel etc

For being a member of certain society, club or org.

Consumer Directed Tie in Promotions: Price Offs:

In store promo, promo through fashion product or in the places where TGs are found

For purchasing 2nd time or more than one product

Prizes: Wedding Gifts, Celebration Gifts, Prize for Contest winners etc

Trade-Directed: Price offs

Allowances

Sales contests

Trade shows

•In order to attract the business buyers, company may offer price offs. The dealers will get free samples of each brand they purchase.

•For purchasing a certain quantity of good, the transport charges may be paid of by the TITAN. This would also help to maintain healthy relationship.

•The dealer with highest sales will get the opportunity to visit a country with his sales force. In the downtime, whoever achieves the set target of the company will get benefit through cash or kind.

•Attending trade shows with flashy presentation and smart offer will attract good number of buyers. Now a days trade shows are organized different parts of the country but it is necessary to understand the brand suitability with the spectators of the event.

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Marketing Management of Titan Watch Company

Using Sales Promotion: Establish Objective: Creating Brand Awareness/Increasing the Usage/Attracting potential consumer base Select Tools based on the objective: Coupons/Price Offs/Premiums/Prizes Develop Program: Sequence of promotional programs that would launch chronologically. Pre-test: Testing the effectiveness with the sample group whether the promotional programs are really effective and fruitful. Implement and Control: Executing the promotional plans and monitor the programs and keeping record. Evaluate Result: Increase/decrease/Indifferent sales volume, change in consumer tastes, new customer group creation etc.

4.2.3. Events And Experiences There are many advantages to events and experiences. They are relevant, involving and implicit. For a watch manufacturer like TITAN, it is also important to be near to its clients. But, the watch is sometimes a symbol of pride, honour, achievement thus, it has to be represented such way that the clients feel it’s important on every aspect of their life. The objectives are; Identifying particular target market or life style: •Child/Young/Mid Aged/Elderly

Increasing brand awareness •Through poster, play card, stalls and booths etc

Creating experiences and evokes feelings •Gives the opportunity to the people to give an initial try

Sometime expressing commitment to community •Cleanness event with TITAN

To entertain key clients or reward employees •Entertainment shows arranged for the special clients to enhance the brand loyalty and rewarding the clients

To permit merchandising or promotional opportunities

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Marketing Management of Titan Watch Company 4.2.4. Public Relations Public relations (PR) involves a variety of programs designed to promote or protect a company‘s image to its individual products. In terms of launching new product, for example a new brand and maintain sound promotion and sometimes to get additional benefit, it is important to maintain well and effective relationship with the stakeholders. Stakeholders may include government body, media, consumers, dealers etc. Public Relations Functions

• • •

Press relations Corporate communications Counseling

Product publicity Lobbying

For a well established brand like TITAN, below are the crucial tasks that are aided by Public Relations: • • • • •

Launching new watch brand with new features for specific group of people. Repositioning an old brand that has the potential to be a profitable one. Building interest in a product category: Introducing special category, watch for blinds. Influencing specific target groups: Meeting the social group leader and influencing. Building the corporate image in a way that reflects favorable on products

Major Tools in Marketing PR: • • • • •

Publications: Watch related articles in related newspaper and magazines that are followed by the target consumers. Events: Hosting important events, trade seminars, nationally important meetings, Seminar Sponsorships: Sponsoring events in order to strengthen the relationship with government body, like, sponsoring picnic etc. News: News on daily newses, highlighting the company image. Public Service Activities: Donation for

4.2.5. Corporate Social Responsibility (CSR) of Titan Corporate social responsibility is a basic element of TITAN Group’s governing objective and one of its corporate values. CSR is not a practice but a tradition in the Titan Company and is embedded in its corporate DNA. Its business approaches that creates long-term stakeholder value by balancing economic, environmental and social factors. It spends every year in Corporate Social Responsibility (CSR) activities, which include a wide range of programmes in skills development, livelihoods, education, health and nutrition, bio-diversity and disaster relief.

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Marketing Management of Titan Watch Company

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Marketing Management of Titan Watch Company CHAPTER 5: BUDGET, EXPENDITURE, PRICING AND BREAKEVEN ANALYSIS 5.1. Marketing Budget And Expenditure:

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Marketing Management of Titan Watch Company 5.2. Pricing Strategy: Titan consists of watches that cater to various segments and to various categories and so their pricing strategy is also in accordance to their products and the features offered by them cashing in on monopoly, unique features, outstanding performance and the name TITAN. Titan's primary pricing objective is to kill Competition. Being an Indian manufacture and infusing the advantages of the Indian market with the dynamics of the western market the company has carved itself a place difficult to achieve by foreign players.

Survival In case of some of the watches titan prices them according to the features and the value delivered by them. The exacta is a simple steel watch priced at around 600 to 1,100. This unique combination of simplicity and good styling is to keep the brand going with its offering being value for money.

• Exacta, Spectra, Raga

Maximum Market Share

In India 70% of the sales in watches come from the lower segment and hence by pricing the sonata at 350 onwards, backing it with a TATA guarantee no one can match the value for the price of Rs.350. Titan prices its world watches which are compared equal to an international Player Like Calvin Klein where 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.

• Sonata, World Watch

Market Skimming In the Indian watch industry there is no one offering pure gold watches, watches in pair, Jewellery watches and this concept though exists with foreign competition has just come to India. Though foreign competition has set in to these concepts. TITAN offers these products with the Indian touch in its designs, the products, the looks. Hence it is able to skim the market with certain products in these ranges. Product Quality Quality and leadership are synonymous to Titan. It seek to achieve both through their value for products compared to their prices.

• Nebula, The Steel collection Insignia •Leadership all watches in their respective segments.

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Marketing Management of Titan Watch Company Promotional Pricing for Titan Watches

Price Discounts and Allowances

Warranties and Service Contracts

•Titan once a year comes out with a Price discount sale on the MRP of the watches. Now this is entirely based on the stock carried by the company at the year end. Allowances are more on the company to the retailer where the retailer gets a special allowance if the store picks up more than a certain quantity.

•Titan promotes sales by adding a free warranty or service contract to its watches and this is backed up by the name TATA which is especially needed to convince and march ahead in the lower segment market.

Product Line Pricing •The differences in the prices of the watches are justified by the features, the style, and the differences which makes up each watch. Titan prices all its watches in such a way that it maximizes the total profit on the total mix.

Captive Product Pricing •There is a general buzz in the market about titan being more expensive than the rest in terms of servicing and the parts used by TITAN. Titan watches, the lower end ones are cheap but the straps and the battery with services is generally expensive.

5.3. Break-Even Analysis: TITAN is currently running profitably with high consumer growth in indian market. They have already established operation plant in different parts of India in order to produce high quality watches in a minimum cost. Due to having own plant it is easier for the company to minimize cost and achieve high margin. Fixed cost for TITAN: As said, they have already built their own plant therefore, they have already spend a big amount of money on establishing the plant. In case of any other requirement, they might change the plant or establish new one. Variable Cost: Variable cost may occur for every unit they produce. These costs are dependent on the number of units. The cost may include, the price of raw materials, labour cost, advertising and distribution cost etc. Due to having control over the fixed cost, it is easier for TITAN to run well over the margin and achieve high growth in every aspect.

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Marketing Management of Titan Watch Company CHAPTER 6: RECOMMENDATIONS

1. Titan does not believe in winning pockets, but hearts and minds, so Titan Company can sponsor events similar to fashion shows where it can get notice by different segment of customers. 2. Titan has set an example for the others for achieving phenomenal success within a very short period of time through a dynamic marketing strategy, thus to become market leader it should invest more in R&D as customer expectations are changing rapidly. 3. Titan still has a scope of increasing its market share in some rural areas of India by taking up effective strategies. So, showrooms and service centres should be set up near those places. 4. Titan should not ignore its competitors (Timex and Maxima). Even many international brands are competing with it. The company should be always alert against it competitors. 5. Additionally, titan can make more use of internet to spread awareness among customers about brand.

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Marketing Management of Titan Watch Company CHAPTER 7: CONCLUSION Titan Company brought about a paradigm shift in the Indian watch market when it introduced its futuristic quartz technology, complemented by international styling. Backed by over 7,000 employees, two exclusive design studios for watches and jewellery, 10 manufacturing units, and innumerable admirers’ world over, Titan Company continues to grow and set new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering. After two decades of building relationships with their customers, and learning from all the successes and failures that came their way, now is the time for TITAN to pause, reflect and celebrate.

It is time to honour the indispensable role of their people, their business associates and suppliers, who have enriched the fabric of Titan Company, as we know it today. TITAN is proud to have withstood the test of time and maintained our dedication to the values upon which Titan Company was founded.

Over the years in business, TITAN has already achieved many milestones for their constant focus on innovation and spontaneous marketing effors in each and every possible sectors. Even though we tried to analyze their marketing management through out the paper but still we are incomplete because they are always innovating new technologies and idea everyday to remain as the leader in Indian market and have a strong hold in the international market as well.

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