titan-marketing
CONTENTS
ACKNOWLEDGEMENT
INTRODUCTION
EXECUTIVE SUMMARY
COMPANY BACKGROUND
SITUATION ANALYSIS
SWOT ANALYSIS
SEGMENTATION STRATEGY
MARKET RESEARCH
MARKETING PROGRAM
CONCLUSION
BIBLIOGRAPHY
ACKNOWLEDGEMENT
We wish to express our sincere thanks to
Prof. Mr.V.CHANDRASHEKHAR, FACULTY-LOYOLA INSTITUTE OF BUSINESS ADMINISTRATION for giving us the opportunity to work on the marketing plan of a company. This has given us the insight of how the various theoretical concepts are applied in an organization.
We are also grateful to MS. NARISHIMA – TITAN REGIONAL OFFICE and Mr.SURESH MAHBOOBANI, Proprietor “THE WORLD OF TITAN” – USMAN ROAD for their valuable inputs which helped enrich this project.
AN INTRODUCTION
Remember when the only Indian wristwatch brand you could buy came in a clutch of clunky models, one more ordinary than the other, when the craze for an `imported watch’ never seemed to wane? That was before the time of Titan, a name which changed forever the way watches made in this country were seen by Indians and the world.
Launched in 1987, Titan is credited with transforming the face of India’s watch industry. By offering consumers quality products the blended classy designs with superior technology, Titan became byword for success stories. Outstanding service, wide variety of models, and effective marketing has helped Titan consolidate its early gains, to the point where the company is a force to be reckoned with beyond Indian shores.
Understanding the Indian consumer’s psyche has been vital to Titan reaching its current position of strength. The company today has a model for every price segment and every market, urban and rural, regional and international. Within the Titan mother brand are Nebula, which comes draped in 18-carat gold; the exclusive Insignia; PSI, for those turned on by technology; and Raga, which has been designed exclusively for women. Titan’s focus has always been on India.
Research reveals some interesting facts and figures about this heterogeneous market.
The Indian market is estimated at 25 million watches a year, with 50 per cent being sold by the organized sector.
Titan is the runaway market leader, with domestic sales of 6 million watches a year.
There are 190 million watch-owning Indians; between them they own about 210 million watches.
Urban India accounts for 120 million of these watches and 90 millions are on rural wrists.
More men than women own watches in India, and more working women than housewives own watches.
It is the rural segment within this diverse market that Titan is now looking to tap. “The key to success is getting into the rural market on a larger scale. The company’s Sonata range is targeted at rural customers, and is part of a strategy where the alignment of price and reliability are crucial. The rage costs between Rs.495 and Rs.1,200 has showrooms exclusively for it, and is sold mainly in small-town India.
Welcome Titan… Welcome Innovation
EXECUTIVE SUMMARY
THE TITAN
It brought in quartz technology, displacing the mechanically driven HMT, till then number one, into second place and smaller towns. It brought a sense of style and designs, till then available only in the West, or in Japan, to its range. Even today, with so many foreign brands gaining visibility, as well as a buoyant grey market, the strongest selling point of Titan is that it is available and affordable. It provides for all segments, from the low-end Sonata for a first-time user, Fast-Track for the trendy young, Dash for kids, and the higher-priced Regalia and Nebula with its latest offerings being steel Collection (Rs.1,500 to Rs.6,700) and the world watch, and by the year-end it has ambitious plans to augment its existing ranges. But Titan’s flurry of expansion and extension, and its four-year- several-crore R&D, which has resulted in the Edge, shows that there is no room for complacency. Though the `most profitable watch company’ in the country (net profit in the last financial year Rs.23 crore, with six million watches sold), claims that it doesn’t fear foreign competitors, there’s no doubt that the high ad-spends of the Swatch group have taken some of the sheen off the biggest domestic players.
“Reparability, and visibility”, is where Titan scores. Even though a Swatch’s likelihood of needing repairs is minimal, it would have to be dissembled even for as small a thing as a change of battery.
Titan’s products have come down from being a rich man’s watch to that of everybody’s watch with TITAN still being something for somebody and not everything for everybody.
THE TARGET MARKET AND WHY THE TARGET MARKET NEEDS THE PRODUCT?
FAST TRACK
A collection of watches will contemporary styles that are young and distinctive. Designs that go from the relaxed and informal to the definitely sporty. The woman’s collection presents the all new international `Frosted’ look, which is trendy and chic. The Fastrack collection has elements like cool mesh straps and features that include EL back-light and dual time. Also presenting a range of fashion digitals in contemporary wrist hugging cases with oversized displays and features that include countdown timers, chronographs, lap timers, hourly chime, alarm and Hi-light glow.
Price: Rs.550-1,430
Category Aimed at : Youth
EXACTA
A perfect combination of dateless styling and design simplicity, Exacta is the all-steel look in Titan. Everyday watches for those who value fundamental principles of durability, reliability and affordability.
Price: Rs.595-1,140
Category Aimed at : Lower Middle Class (Office Wear)
SPECTRA
A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. International in styling the `Spectra’ collection is designed for those who look beyond the ordinary.
Price: Rs.650-1830
Category Aimed at : Common Class
ROYALE
A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps, the `Royale’ collection has designs that suit everyday wear.
Price : Rs.960-2,830
Category Aimed at : Upper Middle Class
RAGA
Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An existing collection that includes decorative motifs, `kadas’, studded bracelets and a first of its kind three-in-one watch. The designs are inspired by traditional Indian as well as contemporary motifs and are expressed in ropes, `kadas’ and ornamental bracelets. Crafted exclusively for the sophisticated woman, who wears silver jewellery with élan, the Silver Raga makes a perfect accessory that completes a woman’s wardrobe.
Price: Rs.1,420-4,000
Category Aimed at : Upper Class
BANDHAN
Watches for him and her. The pair watches of the `Bandhan’ range are Titan’s tribute to the everlasting quality of a bond between a man and woman The Bandhan Collection is available in both leather straps and gold bracelets and its presented in uniquely designed packaging.
Price: Rs.1,675-8,085.
Category Aimed at : Couples
REGALIA
Magic in gold and unique futuristic material. Finely crafted sleek cases and patterned dials with special appliqué flowing into intricately designed bracelets. A unique combination of an all-gold and bicolor look, the `Regalia’ range represents the essence of dress-wear.
Price: Rs.1725-7770
Category Aimed at : Upper Middle Class – Upper Class
EDGE
The Titan EDGE is the Slimmest Watch in the Universe; a mere 3.5 millimeter thick, the watch is practically invisible. Delicately crafted with precision, it has an incredibly Slim Movement of 1.15 millimetes. Furthermore, the Titan Edge is Water Resistant to a depth of 30 meters, an attribute rarely ever seen in slim watches. Titan’s Edge comes with an elemental One-Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal that market it Scratch Resistant.
Price: Rs. 4,500-5,200
Category Aimed at : Business Class
NEBULA
Nebula, a range of watches crafted from solid gold embellished with precious stones, available with both leather straps and intricately designed bracelets. With Nebula, Titan turns watches into precious jewellery. The finishing touch to this exquisite collection is the sapphire crystal that crowns each of the watches.
Price: 10,000-45,000
Category Aimed at : Upper Class
SITUATIONAL ANALYSIS
COMPETITIVE ANALYSIS:
COMPETITORS TO TITAN
HMT
RADO
CASIO
SEIKO
ESPRIT
CITIZEN
SWATCH
CARTIER
GIORDANO
LONGINESS
MAXIMA QUARTZ
IMFQ-INDIAN MADE FOREIGN QUARTZ
FASHION HOUSES – DKNY, GUCCI, ADIDAS, NIKE, BVLGARY
Titan’s portfolio comprises of products from Rs.295 – Rs.45000. Many competitors do not go beyond a certain range or do not come down below a certain range.
For E.G. To start of with the lower segment maxima quartz, HMT, IMFQ (Chinese watches), Titan offers its Sonata brand which comprises of about 47-50% of the titan sales (Figures according to showroom owners), backed by the guarantee of TATA-India’s biggest business house which people have faith in. The guarantee, the Research and development, value for money, new innovative designs, wide dealer network, the committed service team, discounts and offers is some of the things which means a lot a price sensitive market, the lower segment in which Titan carves itself the path to being the market leader.
Moving on a little above top what is the future of the watch industry and is the fastest growing segment today Swatch which is known for it name in watches owns a segment in the range of aboutRs.3500-10000. More so ever these watches are more of the sporty type with steel being their trademark of it’s the entire range of formal watches but both the sporty and the formal are difficult to find under one name In view to these companies Titan offers its world watch, The steel collection, the fast track, the edge, the bandhan, the world watch (a part of it). The titan portfolio in these ranges boast of steel watches, the formal wear, the slimmest watch in the world, a gold plated watch, the tendy youth watches, and the World Watch – International Styling Indian Prices. Competition is head on with such companies which are gaining importance in today’s society. These companies have a Niche market for themselves and pertain to a particular segment but Titan its more flexible in pricing offering more value for money.
Moving on further up the pricing ranges we come to a market which is not price sensitive but wants an exclusive product and who do not mind paying the price. Rado which is known for its expensive diamond watches, have a niche for the top cream of the society. Titan manages to cater to these segments with the Nebula, the Edge, the Insignia, the World watch, distinguishing itself for example as the slimmest watch in the world giving oneself the identity no one can offer, pure gold watches and combined with Tanishq which apparently has gained a status of its own jewellery with watches. This unique concept plays well for titan to offer a wide range of products with the Indian touch and providing the customer a well designed international store, these products offer satisfaction and a sense of well being (based on research details), couples watches, the gifting technique, wide dealer network , selling on emotions, the use of festivals and occasions, combining new products with the old ones which one no one in the watch market can boast of are some of the techniques none in the upper market can do.
Thus broadly speaking TITAN has 60% of the watch market in India Today because companies existing have a niche market where as TITAN gives the flexibility to the customer to choose a watch more or less than his budget giving him the same guarantee, the name TATA, a wide dealer network, an international store, and more so ever value for money.
SEGMENTATION STRATEGY
After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. The segments were arrived at using benefit and income level as the bases.
The first consisted of the high income/ elite consumers who were buying a watch as a fashion accessory not as a mere instrument showing time. They were also willing to buy a watch on impulse. The price tag did not matter to this segment.
The next segment consisted of consumers who preferred some fashion in their watches but to them price did matter. While they had the capacity to pay the price required for a good watch, they would not purchase a watch without comparing various offers in the market.
The third segment consisted of the lower-income consumers who saw a watch mainly as a time-keeping device and bought mainly on the basis of price.
For the first segment, Titan offered Aurum and Royale in the gold/ jewellery watch range. They were stylish dress watches in all gold and precious metals. The prices between Rs.20,000 & 1 lakh.
For the middle segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigours of daily life. There were 100 different models in the range. The price range was Rs.500-700. Titan also offered the RAGA range for women in this segment.
And, for the third segment, Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, the SONATA range. The price range was Rs.350-500. It was offered in 200 different models. Titan also offered the “Dash!” range for children. In-depth segmentation helped Titan launch segment-specific product.
THE TITAN VIEW OF A WATCH
A watch is now looked at as a personal accessory, an extension of a person’s lifestyle. The design of the dial and the strap influence a buyer’s choice rather than just the function. Also, a whole new range of technologically superior watches has also entered the market.
With the emergences of this trend, TITAN has clearly segmented their consumer base targeting niche markets with different products. While Titan introduced `Dash’ targeted at children, it introduced `Raga’ exclusively for Ladies Party Wear.
Another niche segment caters to the technology savvy consumers, with brands such as `Edge’, `Technology’, `PSI 2000’ to cater to this segment.
There is also the fashion segment, where TITAN has a collection for men and women. For instance, Titan has `Fast track’, and Raga, Regalia and Royale in the stylisth segment. International styling, such as the `WORLD WATCH’ which was launched a few months ago is also to keep up with trends in the market. While most foreign brands have their products targeted at one niche segment, either fashion of function or style, TITAN has different products targeted at different segments.
The stress is one constant innovation in style, design and products that would keep the interest alive in the various segments. This is a challenge every player is facing to keep up its market share. It again battles to the survival of the best or the Rule of three where the top three players in the market would survive. Titan figures not only in one among them but the leader among them. At TITAN innovation and leadership are part and parcel of the company and this trend is reflected in their products and the synonymous name the “The Watch” has in the Indian market.
TITAN’S PRODUCT PYRAMID
Titan’s portofolio of products spanning 3 distinct price-bands that can be defined, in general, as Popular, Mid, and Premium. At the bottom, the emphasis is on volumes-not margins. At the top, the emphasis is on profits and image not volumes. Obviously, profits are concentrated at the top of the pyramid, but the base acts as both an entry-barrier and a caretaker of the company’s fixed costs. This pyramid guided the strategy of Titan. Titan was first focused only on the premium segment of the watch market. As per the above-mentioned strategy Titan moved in to the mass market for watches. To broaden the mass base, Titan created new segments and increasingly focusing on segments individually. In the past few years Titan has launched at a number of initiatives focused on specific segments.
DIFFERENTIATION
At Titan the products are developed in such a way so as to enhance quality and features to increase buyer value. This is a perfect example of differentiation through technological leadership and product technological change. Titan creates competitive advantage through differentiation. The first concentration is on technological leadership. They decided to manufacture only quartz (analog and digital) and not mechanicals, and they would set up state-of-the-art plant to manufacture watches in a wide variety of designs and prices.
STYLES
Titan was first in India to introduce the `style’ concept. They projected the watch as a fashion accessory. They clearly identified that their main competitor was not HMT, but the gray market. Style is a very evident factor in Titan watches and is a part and parcel of the company. Titan products are shapers and not adapters. Over the years Titan had built a formidable distribution and support network. Titan’s customer orientation was reflected through their advertising campaigns. Whereas HMT called themselves “timekeepers of the nation”, Titan tells the masses “if you have the inclination, we have the time”. By providing a lifestyle product Titan not only got a premium but also convinced consumers to buy multiple watches.
MODELS IN PRODUCT LINE
Today titan offers the best and the biggest range to choose from offering from the scratch to the highest level in watches. With offering such a variety of models. Titan provides variety to the customer and still is able to segment itself creating not a niche but its ability to segment takes it a step further in terms of its product offerings. If offers about 14 different names with about 1000 plus different varieties with a watch for literally everyone.
EXCLUSIVE PRODUCTS
Today TITAN holds the monopoly, pride to say that it owns products both within the country and internationally which no one offer. Its EDGE the slimmest watch in the world positions the company’s product where the fashionable, the business class, the innovative would got in for this EDGE since it being unique in the world and the concept of UNIQUENESS is catching in any business whether it being construction or clothing. In the country it offers the Sonata which is the watch every player would dream to have under his portfolio for the guarantee the quality the trust the innovativeness every thing for as low as Rs.495 which is very much acceptable in the Indian market. This watch can be sold to the first time user, the price sensitive user, in the rural markets, as a gift on occasions, a great time piece, simplicity with style and value. These products designed with the view of monopoly go a long way to outshine titan to its competitors.
CORE COMPETENCY
The TITAN core competency is on many fronts with Quality being the top runner in the list. This is the area where a Titan beats players hollow. This is for the lower segment watches like HMT and Maxima. People when they buy a Titan they know it’s a piece of quality and backed up by the Tata’s and the company’s strong presence in India rather now the world the watch is one which creates absolutely no doubt at all for its quality.
In the Higher priced segments Titan is famous for pioneering innovations with innovations being in the field of Technology, Style, Uniqueness, and having a market for every one to offer from steel to gold to diamonds. The titan Edge a unique creation in the world only owned by Titan, The Bandhan “The Pair” the concept first started by Titan in Indian, The Nebula “Solid Gold Watches” and a list of many more.
PRODUCT OFFERINGS FOR EACH MARKET
Titan Industries
High Income- Elite Group
For the Fashion Conscious
Low Income Group
Watch – fashion accessory
Impulse Purchase
Price Tag-No issue
(Nebula, World Watch)
Prefer Fashion
Price Does Matter
(Regalia, Raga, Classique)
Watch-time keeping device
Price is a critical Issue
(Sonata)
FEATURES THAT MAKE THE TITAN
CURVES AND CONTOURS
LEATHER STRAPS WITH OFFBEAT CONSTRUCTIONS AND SHADES
ERGONOMIC INTERGRATION
FASHION SPORT IN SPIRIT
BOLDER AND CLEANER DIALS
ROMAN AND ARABICS FOR FASHION
STREAK PRINTED HANDS
POPULAR FUNCTIONS LIKE DATES, MULTI FUNCTIONS AND CHRONOGRAPHS
GUARENTEE/ WARRANTY
BECOMING A PART OF THE 50 MILLION TITAN FAMILY
LOVE, TRUST AND RESPECT
A UNIQUE TIME PIECE IN STYLE OR QUALITY
The various brands of Titan and the price range in which they fall are tabulated which follows.
Brand Price Range No. of Models (Approx)
Insignia Gents Rs.3750 to Rs.7750 98
Insignia Ladies Rs.1600 to Rs.7500 89
PSI2000 Gents Rs.1780 to Rs.7500 61
PSI2000 Ladies Rs.800 to Rs.4350 36
Regalia Gents Rs.1820 to Rs.7790 157
Regalia Ladies Rs.1725 to Rs.7770 168
Royale Gents Rs.960 to Rs.2810 123
Royale Ladies Rs.1120 to Rs.2830 91
Classique Gents Rs.850 to Rs.2450 268
Classique Ladies Rs.565 to Rs.2930 161
Spectra Gents Rs.1140 to to Rs.1830 57
Spectra Ladies Rs.650 to Rs.1410 22
Exacta Gents Rs.600 to Rs.1170 48
Exacta Ladies Rs.595 to Rs.800 25
Fast Track Gents Rs.550 to Rs.1430 57
Fast Track Ladies Rs.850 to Rs.1050 11
Technology Rs.2350 to Rs.8170 55
Raga Ladies Rs.1420 to Rs.4000 123
Nebula Gents Rs.8950 to Rs.13500 8
Nebula Ladies Rs.5950 to Rs.6950 4
Bandhan Rs.1675 to Rs.8085 34
Sonata Gents Rs.295 to Rs.1195 200
Sonata Ladies Rs.350 to Rs.1100 96
Sonata Pair Rs.1495 to Rs.2000 10
Dash Boys Rs.295 to Rs.395 15
Dash Girls Rs.250 to Rs.350 13
PRICING OBJECTIVES
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.
The Objective for pricing are mixed with them being
Survival : Exacta, Spectra, Raga
Maximum Market Share – Sonata, World Watch
Market Skimming- Nebula, The Steel collection Insignia
Product Quality - Leadership – All watches in their respective segments.
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.
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.
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 QULAITY – Quality and leadership are synonymous to Titan. It seek to achieve both through their value for products compared to their prices.
PRICING METHOD
MARK UP PRICING – Titan goes in for the mark up pricing strategy. The Titan product carries a maximum retail price on it. Now shops such as the world of titan – exclusive showrooms buy directly from the dealer and hence the element of the middleman is not there. A retailer in this category buys the watch for 17-18% lesser than the MRP and hence he is able to get the 17% profit margin on sales. It is up to the discretion of the retailer to offer any discount on the MRP as it would affect what he gets in return.
In the recent past Titan has also used the PERCEIVED VALUE PRICING to its advantage. It is managing to successfully convince the customer of the perceived value of the WORLD WATCH using billboards and hoardings all around the city, increasing buyers image, trust worthiness, innovation, differentiation, value for the product. The hoardings go about to say the international presence of an Indian Watch. Titan has also in the past done so for its steel collection but using Commercial Advertisements.
There is always a positive relationship between high prices, high quality, and a high advertising budget. Titan too demonstrates this feature. People are willing to pay the price for the quality and titan spends 25 crores a year on advertising its products. This is the highest spending done in the watch industry in India. More so ever with high value and lower prices in case of the sonata, the product is the heart throb in the watch industry.
PROMOTIONAL PRICING
Price Discounts and Allowances
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.
Warranties and Service Contracts
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.
APPLICATION OF THE PRICING STRATEGY IN PRODUCTS
The main plank of the watch market is in the less-than-Rs.1,000 price category. Effectively, about 70 per cent of the sales in the watch industry in India is in this category. None of the foreign brands has a presence in this category. Only cheap Chinese watches are present in this bracket and they compete with the unorganized manufacturers, who are more expensive than them. So, the unorganized sector is getting hit from the bottom by Chinese products and at the top by the organized sector brands, such as Sonata.
LOWER SEGMENT
The SONATA Brand which proudly emphasizes it to be a TATA product is the watch for the common man and for the lower class of the society. Pricing itself between Rs.300 – Rs.900 is Titan’s fastest selling watch. This watch was launched to make titan everybody’s company from the image of it being a Richman’s company. Watches were offered for as low as Rs.300 with a guarantee of 1 year and the styles were very appealing for the price. Titan in this case has followed the Penetration policy. Maxima Quartz is a competitor with similar offerings at Rs.350. The lower end market being price sensitive, such pricing used to drive away competition, making people buy the product to make one trust what a Titan is all about was promptly why this low price was offered. There are many in the stable such as the Exacta, Spectra and Fast Track which is priced at what one would pay for a simple but impressive watch. These watches deliver value for money with Titan’s name and the innovation done by the company to deliver better models at the same price.
THE 1000 PLUS SEGMENT
The TITAN market share is actually growing because of the increased share that has been cornered in the Rs.1,000 – 2,000 range, which is the main strength for Titan plus a growing contribution from people upgrading to Rs.1,500 range.
In the last 2 years TITAN has been introducing lot of products in this range and have been growing in this segment. The Indian watch market itself is expanding in the price bracket of greater-than-Rs.2,500. This has been happening for the last couple of years. The greater-than-Rs.2,500 price bracket is the highest growth category, though it might be a small contributor to the total watch market. This segment is growing because of the interest that has been created by the international brands. Titan was quick to launch the steel collection, the world watch and its bandhan, insignia comes in these ranges.
Titan used its technological prowess as its unique selling point. Priced in the Rs..4,500-Rs.5000 range, Titan targeted the brand at the techno-savy consumer looking for a prestigious watch, who would otherwise go in for a foreign brand.
`The WORLD WATCH TITAN’S’ latest offering to the Indian market is a watch which is made in India but which shows off a truly international look with styling rare to the Indian market. This is a product which none of the Indian watch makers can offer as of today but meets with competition from foreign players like Swatch and Esprit. The watches taken out are priced between Rs.2700 – Rs.5500. This range of pricing can be associated with Skim the cream pricing used by titan. These watches represented true international quality for an Indian price. The same watch by Calvin Klein would cost the Indian customer about 4 times a titan watch and hence he would prefer the titan watch for the same value for lesser price. There has been societal changes and a growing demand for these price watches with the culture of the west coming in and the smart move to get these watches to India. The Indian consumer is still a price sensitive player even though it be a high value product.
The NEBULA is Titan’s price catch and is also watch selling in top of the line. These solid gold watches gracefully and elegantly shows off richness of the gold and the design makes it stand out from a regular gold watches. Preferred on occasions of Diwali and marriages it is priced between 10000 to 40000. Titan is able to do so for the reason it is a pure gold watch and the same time no one else in the market can offer these watches. A pure gold watch for a festival or marriage would be 90% of the times bought by titan.
Thus whatever may be the price titan carefully chooses it to see that its product is able to survive, rise and become the product leader and at times after skimming the market it attains price leadership with cutting prices slightly or waiting for competition to come in and promote the market. One final statement that can be made is the objectives and the price go hand in hand as it should always go.
Titan has tried to achieve a balance of cost focus and differentiation focus. By this we mean that in the lower - end (Popular segment) of the market, it seeks to achieve a cost advantage by exploiting the differences in cost behavior. In the mid-and higher–end (Mid Premium segment) of the market, it seeks differentiation by providing better designs.
Titan firmly believes in providing total customer convenience in shopping. This fact is justified by the location of their outlets and the recent move by the company to go in for a major renovation of all the WORLD OF TITAN show rooms updating it to modern selling concepts, saving space, making it more attractive for the customer, easy maintenance, a show room which stands out from the rest. This has been done to the highest standards taking care of even of the minute details.
Titan’s retail operations are a mix of company-owned and franchisee outlets, with the idea being to ensure a dominant presence in all market areas through different kinds of stores, and to assure the availability of every Titan product. Titan has concentrated on customer perspective, and have engineered the entire chain to suit different customers.
Titan concentrates more on the customer theme. Earlier there was no attempt in the retailing sector to entice customer to buy a watch, but Titan has tried to bring the brand to the customer in an appropriate setting. The company does this through its `World of Titan’ show rooms.
The franchisee is a critical cog in Titan’s retail matrix. The company organizes various programmes for franchisees, their managers and customer relationships officers. These include training workshops and seminars on market trends, visual merchandising, store operations and maintenance, and customer service initiative. However, the real challenge in retailing is managing the franchisee network through processes and systems that ensure a superior brand experience for every customer. Franchisee relationship management is important because of increasing competition, not only from the watch business but also from other business in the retail industry.
Besides the franchisees and its own showrooms, Titan sells its product through other outlets as well. Among them are the Time Zone stores, which stock all the leading brands, and the Value Mart outlets, which operate in Bangalore and Chennai and sell surplus – to export watches at a discount.
For its many customers Titan has Tata Signet, a 1,36,000 member club that looks to build relationships through rewards, regular discounts and special offers. Customers can also count on a service-centre network that’s 550-strong and spread over 30-odd cities and towns across the country. The service centers have been deliberately kept apart from Titan’s showrooms. The business is different and the customer is in two different moods at the two places Titan’s blueprint for the future including making watches for international heavyweights such as YSL, Christian Dior and Gucci. Titan believes there is huge potential at the designer end of the market. The marketing investment is however lower because “the brand is doing the marketing for you”. Also on the anvil are specialty stores for niche customers, and an expansion into product categories like sunglasses and leather goods.
However, it is staying ahead of the competition that is the overall priority: “We have to ensure Titan has the best wristwatch store in any given city or town”. You don’t really have to watch this space for confirmation on that count.
Titan stores can be broadly classified into 4 stores each having its different features making TITAN attractive to everyone.
WORLD OF TITAN
To experience the touch of Titan, all you have to do is walk into the stylish World of Titan showroom anywhere in India. Prepare to be floored by the cool international ambience and the staggering choice of over a 1000 watches and trendy accessories. And because the customer has to be given special treatment, we deliver your gifts, offer gift vouchers for your loved ones, and what’s more, we invite you to join the Signet Club, our loyalty programme with lots of special privileges. Come closer to us at The World of Titan!
The world of Titan is the biggest among all stores of the company and is an exclusive dealer in Titan watches. These showrooms are generally about 1000-2000 sq.ft and have an extensive range of watches. These showroom are the major revenue generators of the company and every 5 years the showroom is fully done up updating it to modern international standards.
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 backed by efficient after-sales service. Presenting Time Zones – the chain of trusted watch shops. Conveniently located, these 1142 Time Zones across 89 towns offer you the complete watch shopping experience.
VALUE MART
These outlets sell surplus stocks of Titan watches at reduced prices, offering fabulous value for money with the same warranty as a regular, full-priced watch. These concepts in the recent past have caught up with any product with it being total value for money. However these shops would not be placed in the main locations so as to interfere with the working of the 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.
SONATA STORE
If you’re looking for Sonata watch, visit these exclusive Sonata outlets which also have an Authorised Service Centre for Sonata & Titan brands. The idea of a Sonata store came upto cater to the large scale demand for the watch and to open Titan to more customers. More over these shops had full stocks of the watch in demand whereas the others could afford to maintain only limited stock.
THE EXPERIENCE OF SHOPPING IN THE WORLD OF TITA
A truly luxurious store which helps you relax and enter the world of comfort, nirvana and soothes your entire body down, its breath taking interiors with elegantly done up parts of the show room make every one feel they are into something good. The collection of 4000 plus watches with every model being different from the other makes you just want more and more. The ever courteous and well dressed staff of the showroom shows you around catering to the perfect watch for your wrist. They go about explaining the features of the watch with precise details. Customer service reaches peaks at times with customers being offered a drink while they shop and a place to sit and wait for your partner while they take their sweet time to get a perfect Titan time piece. Titan show rooms have a distinction from the rest of them in the business with paintings of modern art and marbo-granite flooring. Titan showrooms after revamping have been made such as to promote the customer to look at watches on his own rather than being assisted. The customer feels more at ease and it saves placed and lesser sales staff are needed. The customer can take a look at the entire range by walking around the showroom than from the previous method of jumping from counters. He sips his drink, relaxed strolls around to pick his choice inviting him to choose not only from his budget but to what he likes. The watches are displayed in cupboards than counters with the sales staff behind them. This has lead to considerable saving of space and more could be accommodated in lesser space. To distinguish the high end Nebula, The Edge, and the latest offering the World Watch, a separate counter exclusively for these watches are maintained so that the customer knows the names. Each cupboard has the brand name like Regalia, Sonata written on its and it clearly identifies the product and its brand.
The customer shopping id redefined to suit him in a variety of ways which not only makes him to want to buy more but also to come back more frequently and to catch the customer to buy a Titan than the other brands, Titan when it spends so much on its product development, its showrooms, the image of the brand support it very well to enhance the brand image.
C & F Agent
DISTRIBUTION NETWORK
World of Titan (WOT)
Direct Dealers (DD)
Re-Dsitribution Stockist (RS)
Time Zone & Non-traditional Outlets
Titan – 1 Titan – 3 Titan & Titan &
Sonata – 1 Sonata – 4 Sonata – 9 Sonata – 3
PROMOTION
We want people to hear one voice, rather than a cacophony
Of sounds”. – The new age TATA’s
For the past few months, the one-point agenda of the Tata group has been to bring about synergy among its individual companies, and to promote Tata as a single, unified, central brand. “The Tata’s have realized that many of their companies are addressing the same target clientele and share a common customer base. So it makes sound business sense to synergies the marketing efforts for these companies.
The main reason behind Tata doing this was the results of a survey which revealed that: “the Tata brand is like sameone who is established, but not modern, large but not focused, profitable but not in top gear, a warm person but not efficient, Tata group is so large and fragmented that the central brand gets lost in the vastness of the empire. As a result, the top-of-the-mind recall of the Tata brand-pegged at Rs.10,000 crore – is not so strong amongst its various products, be it Taj hotels, Titan watches or Westside garments.
Tata has come to realize that their biggest asset is their name TATA and not their factories and hence like the value of the assets the value of a brand can also come down and so is the name coming down, now the Tata Brand Equity and Business Promotion Agreement states that – advertisements and commercials by any Tata