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Executive Summary:
Titan’s watch segment is the India’s chief producer of watches and
ranks fifth in the world in production of watches.
Today the company has model for every prices segment and every
market. Basically it deals with three target market
Titan alone holds 70% market share in domestic level whereas 60% in
organized market.
The place can be taken into consideration ,as it is need foe the
company to open some show rooms in the rural area and as the
company don’t have so much market share in the foreign market ,so to
expand the business company should launch its showroom all over the
globe in the more number.
METHODOLOGY
Survey was carried out at Titan World.
• Secondary data:
(a) Internet
(b) Magazines
(c) E-media
Introduction
When we talk about the “wristwatch brand”, remember the
only Indian wristwatch market were so shabby, one more ordinary
than other and when the craze for “imported watch” was not
implemented. That was before the time of titan, a name which
brought the revolution in the Indian wristwatch market.
Xerxes Desai, a TATA veteran and the MD of TATA Press was elected
to that business.
today has a model for every price segment and every market, urban
and rural, regional and international.
Maxima 13%
Rado 7%
Casio 3%
for the kids, and the higher priced Regalia and Nebula to the
premium segment customer.
-Socio-cultural environment.
-Psychological field.
General environment.
-Socio-cultural environment.
-Legal environment.
-Technological environment.
Specific environment
-Customers
-Competitors
-Marketing intermediaries
Competitive Forces
Major Competitor
There are lots of competitor in wrist watch segment which directly or in directly affecting the
titan watches industry. The major players’ are-
➢ Domestic Level:
• HMT
• Maxima-quartz
• Rado
• Casio
➢ International level:
• Espirt
• Swatch
• Citizen
• Tag heuer
• Seiko
• Cartier
• Giordano
➢ Fashion Houses:
• Dkny
• Gucci
• Adidas
• Nike
• Bvlgary
Among all these competitors, Maxima-quartz and HMT are major players .The strength and
weakness of the companies varies from segment to segment.
Industry’s Role
As there have many competitor exists in this Industry, the competition is too much.
Whenever any company bring changes in its marketing mix, all the companies also
implement changes in their marketing mix to sustain in the competition. By that the structure
of whole industry is changing and affects the competitive forces in the Industry.
Economic forces
Economic landscape
Indian corporate sector is nervous because of current Inflation. This problem occurred not
only in India, but it affected all the countries due to United State financial crisis.
As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI)
that 64% of the 413 companies are running currently in worst condition from last 6 months.
Consumers view
As we know that Inflation is in double digit figures, but the people who lives in urban area or
metro city, are having optimistic view towards economy.
People think that the economic condition of our country will be improved in the near future.
The company’s watch sales grew by 18.8 per cent and its income increasing from Rs255.34
crore during the second quarter of last year to Rs303.45 crore during the second quarter of
this year. On the basis of the above table and profit figure we easily understand consumer
buying power in target market.
From the above information we can easily understand that consumers buying more of Titan
wristwatch. There are few reasons behind the growth in sales of Titan .They are as follow.
➢ Brand name
➢ Quality of the products
➢ Features ,which differentiate from others
➢ Attractive models
➢ New innovation
Political forces
Political landscape:
In 2004 /05 the new Government came through election in India.
Our new Government took lots of steps to make the global relation as well as some steps to
develop our country GDP, decreasing the rate of Inflation by decreasing rate of Cash Reserve
ratio (CRR) as well as by decreasing the Repo rate. These all steps help the Industries to get
sustain in the market.
As all the steps help the Titan industry to compete in the watch industry. The performance of
this sector for last few years are-
Moreover, the companies always want to make good relation with the political parties,
because we know that India is a democratic country which is it- self elected by the people the
country.
The industry can be directly affected by the certain rules such as change in Taxation rate.
Technological forces
Impact of Technology
Changing in technology always play a great role in the target market.
Titan decided to manufacture only QUERTZ (Analog and digital) and not
mechanical and they would start plant to manufacture watches in wide
variety in design and prices.
Titan changes the technology in that ways which help in enhance the
quality and the features to increase buyers’ value. Titan gets advantages
in the target market through innovative technology.
As there is too much competition, if Titan not accept the changes in technology then they
can’t sustain in the market. In premium segment, competitor will capture whole market by
improve technology. And in the mid-price segment, other companies will give a tough
competition to titan.
Technological changes
The new marketing innovation can bring a drastically changes in the marketing activities of
the company. The new innovations which can differentiate the company from the
competitor are
Sociocultural Forces
Tata believes that improve the quality of the life of people and the employee is the primary
purpose of their business. It uses its resources in the best possible way. They also takes some
reasonably steps to improve the quality of life of the people of the areas in which they
operates.
Tata adopt the Corporate Citizenship Index, Tata Business Excellence Model and Tata Index
for Sustainable Development which reflect its commitment to its Corporate Social
Responsibility (CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives.
These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.
A. Target market
Identification
The titan industry basically deals in three segments for its watches. They were as follow.
In this segment mainly the consumer who buys a wrist watch as a fashion accessory.
Middle group:
In this segment mainly consumers like some fashion in their watches. These consumers
would not purchase a watch without comparing various offers in the market.
Lower-income people:
This segment mainly consisted of lower- income consumers who want watch mainly as the
time –keeping device and purchase on the basis of price.
Marketing Mix:
• PRICE
• PRODUCT
• PROMOTION
• PLACE
Price:
As achieve our marketing our marketing objectives, we can do some change in the pricing .
A. Survival:
In case of some of the watches titan prices them according to the features .The Exacta is a
simple steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga
through pricing policy.
B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore by pricing
Sonata at 350 onwards with guarantee.
Titan prices its world watches which compared equal to an international players like Calvin
Klien where a customer pays 4 times as value of the world watch, therefore market with low
prices to international players to gain market share.
C. Market Skimming: In Indian watch industry there is no one offering pure gold watches,
watches in pair, jewellery watches. Here Titan offers there product with the Indian touch in
its design, the product, the love.
Product:
Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.
A. Product line: To increase the sales, the difference in the prices of the watches are justified
by the features.
C. Product strategy: Titan was first focused only on the premium segment of the watch
market. As per the product strategy they took, Titan moved in to the mass market for
watches. To widen base, Titan created new segments and increasingly focusing on segments
individually. In the past few years Titan has took a lot of initiatives to focused on specific
segments.
D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve both
through their value for products compared to their prices.
Promotion:
Promotional pricing:
A. Marketing pricing: As by opening new shops such as the world of Titan – buy
directly from the dealer and hence the element of middleman is not there.
Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they
are able to get the 17% profit margin on sales.
Price discount and allowances: Every year Titan comes with a price discount sale on the
MRP of the watches. The allowances varies from one segment to another.
The prize winning design was launched as a new watch in summer 2002 collection .
Type of advertising: Titan believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Titan
watches.
As here we can say that a female actress would be more effective for the promotional
purpose. It can be Katrina Kaif, as now she is one of the popular actress in Bollywood.
Place:
Keeping in mind about the young trendy and fashionable consumers, Titan distribute its
product and set up ‘world of titan’ in different region. The consumers life style in India,
especially in urban area(because the turnover in urban area is 210 million, while the turnover
in rural area is 90 million) plays a significant role in the success of Titan.
A. Time Zone: Titan Industries brings together the country’s leading watch brands under one
roof, providing the customer with variety in brands, looks and price ranges and also efficient
after-sales service. These 1142 Time Zones located across 89 towns which offer its customer
the complete watch shopping experience.
B. Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. By
doing these it offering fabulous value for money with the same warranty as a regular full-
priced watch enjoy. However these shops would not be placed in the main locations and not
working as a normal shops. This is to make the customer go to the shop rather than the shop
calling the customer and hence the locations are not very suitable for shopping.
C. Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata & Titan
brands. Sonata store meet the large scale demand for the watch and also to attract customers
in more. These shops had full stocks of the watch in demand whereas the others could afford
to maintain only limited stock.
Social
A.Cultural Factors
• Value, perception, and preferences
• Nationalities, religion, race, geographical regions
• Social class
A.Social Factors
• Reference Groups
• Social Class
dress than just a time showing machine. They are also realising
that, unlike other forms of art that are meant to be admired, high-
end jewellery watches have that added bonus: practical luxury with
a function other than beauty. Watches have joined the list of tie,
deodorant and shoes to represent the occasion and flaunt your
status.
– Dress Wear
Titan has three brands positioned for this segment: Nebula,
Regalia and Insignia.
Nebula:
Marketed as the “Jewellery collection from Titan”, Nebula is
targeted towards affluent men who consider wearing gold jewellery
a symbol of status. Magical blend of most coveted of metals, Gold
and craftsmanship; Nebula is more of a connoisseur watch with the
lowest price model at Rs.5500. It is marketed as a “watch for
discerning individual” positioned as a gold jewel.
Regalia:
“Incredibly eye-catching…. magic in gold”.
The watch uses the unique combination of gold and bicolour
looks representing the essence of dress-wear. In India, gold-look is
associated with status but at the same time, the silver-look is the
fashion of the day in international watches. With the combination of
both, this watch is targeted towards affluent businessmen. The
elegant looks and colours make it a strong competitor to the foreign
brands like the Tissot, Piaget and Rado.
Insignia:
‘The World Watch from Titan.’
The watch with fascinating designs and precision engineering
was targeted towards the European markets. The complexity of this
watch is 10 times more than a regular titan watch. Though it didn’t
meet with much of a success in Europe, this tag line and keyword
“International” are used to position this watch as a world-class
watch for international traveller with European tastes.
– Classic Watches
Watches that are for every-day use and those with less frills
and more value are classified as Classic watches. These watches
are normally targeted towards middle and upper middle-income
class consumers.
Classique:
“Power dressing now has a new weapon!”
“Timeless elegance captured on the wrist.”
Classique' is marketed as a fusion of function and
sophistication. Classique with its looks fits the formal corporate
image and is positioned as a watch for corporate employees. This
also reinforces the importance of watch along with the dress worn.
These watches are generic in their simplicity and find no real
competitors except HMT.
Royale:
“Collection of designs that suit everyday wear”.
Royale with its gold plated case and golden straps represents
a formal every day watch targeted towards the employees who
can’t afford multiple watches for occasions. The watch includes
designs from simple to dressy eveningwear switching between
informal and formal looks based on the place and situation.
Spectra:
“Designed for those who look beyond the ordinary”.
This brand from Titan extends over wide range of prices from
900-7000. It is a classic premium watch with style, which boasts of
combining the sturdiness of steel with richness of gold. The
positioning of the watch is not very clear as it is targeted towards
the salary earners with its lower price point models and appealing
models for the corporate executives at the higher end.
– Sports Watches
In the Indian scenario the sport awareness is not quite there.
And the market is not mature enough that consumers buy special
watches for sporting except in the super-premium and segments
above that. A sports watch in the mind of an average Indian is a
polyamide watch with stopwatch and trendy look. So there is no
clear distinction between sports watches and casual watches. But in
the available market Timex, Casio, and Titan are major players and
after the lifting of QR restrictions, world famous Tag- Heur has also
entered India but in the Connoisseur segment of sports watches.
PSI2000:
Titan has introduced a range of contemporary Precision Sports
watches. The brand is marketed as tough, outdoor, adventure
brand. (Psychographically segmented) Ranging from 800 to 7500,
these watches are in direct competition with foreign brands like
Swatch Irony.
– Casual Wear:
The segment of watches that has a variety of brands and
models to appeal to the youth and mentally young people is casual
wear. The watches in this segment are mainly sporty watches, which
are unconventional and typically symbolize the attitudes of younger
generation.
– Technology Watches
Wrist Watches have changed a lot from the inception- a time
showing convenience machine to a status symbol. But the
underlying concept remained unchanged, convenience. Stretching
this concept a bit with the development of technology are the
technology watches available in the market. Watch for time, status
has in the new technology era is looked for convenience of carrying
data. In to the competitive market with people willing to pay a
premium for that advantage, a good number of brands have
ventured.
Technology (2350-8200):
“Multi-functional watches for the Tech-savvy”.
This brand is marketed as mergers of classic elegance and
technological mastery giving rise to multi-functional chronographs
using the solar power. This brand is positioned to compete against
the Citizen’s EcoDrive.
Women’s segment
– Dress Wear
Titan has chiefly three brands in this category.
Nebula (6000-65000)-
“The Jeweler’s Collection”
Nebula is a precious jewellery watch from Titan. It is marketed
as ‘a magical blend of most coveted of metals and engineering
excellence’. The Nebula range of watches is positioned as objects of
ornamentation. A 21 carat gold watch, studded with gems it is
targeted at the upper most end of the market in competition with
brands such as Rolex and Cartier.
Regalia
– Casual Wear
Fastrack
The woman's collection presents the all-new international
'Frosted' look, which is trendy and chic. The ad line : ‘Fastrack- ‘Cool
watches from Titan’, aims at building the brand around the ‘cool ‘
concept.
Children’s Segment
Titan has a brand called Dash! for kids. These are bright,
colorful watches targeted at children aged 6-14 years. These
watches are priced Rs.250 onwards to Rs.495 and are marketed
under the ad line: “Wow! Watches from Titan”. The three main
collections from Dash include the ‘Popeye Collection’, which feature
cartoon character Popeye, and his friends. There is also a Digital
Snehal Mehta --- NIS Academy Page 23
Titan Industries (Watches)
Bibliography
Source of information’s:
www.titanwold.com
www.tata.com/titan
www.google.com
www.indianfoline.com
www.thehindu.com
www.economictimes.com
BOOKS REFERED