SYMBIOSIS INSTITUTE OF TELECOM MANAGEMENT

MARKETING MANAGEMENT ASSIGNMENT -

2
Indian Wrist Watch Industry
Marketing mix of the Leading Players

Vismay Sood
PRN-09020541053
Systems & Finance
Identify the market leader and analyze the strategies followed by this company
in terms of the marketing mix that are different from the other players.
TITAN

Titan Industries was established in 1984 as a joint venture between the Tata
Group and the Tamil Nadu Industrial Development Corporation. The
company brought about a paradigm shift in the Indian watch market.
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 it also has in its portfolio its
first Swiss Made watch brand – Xylys.

PRODUCTS
Watches: Currently manufactures four main watch brands viz.

Titan- for the premium segment

Fastrack – focused on the youth and trendy fashion space
Sonata- for the mass market
Xylys- for the premium market.

Sub-Brands:
Titan Edge – The world’s slimmest watch which stands for the philosophy of
"less is more"
Titan Raga – the feminine and sensuous accessory for today's woman
Nebula - crafted in solid gold and precious stones
Other collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva,
Zoop, WWF and the Aviator series, all of which form a part of the Titan
wardrobe.

Sonata is today India's largest watch selling brand and is priced between Rs
295/- and Rs 1200/. The company's first Swiss Made watch – Xylys is for the
hi-end connoisseur and new age achiever. It also markets Tommy Hilfiger
watches under a licensing arrangement and is introducing Hugo Boss.
Today, the Titan portfolio has about 60% of the domestic market share in
the organized watch market. The company has 255 exclusive showrooms
christened 'World of Titan', making it amongst the largest chains in its
category. Titan watches are sold through over 12,000 outlets in over 2,500
cities and internationally in over 30 countries, primarily in the Middle-East
and Asia Pacific. It’s after-sales-service is itself a benchmarked operation
with a network of 750 service centers and amongst the world's fastest
turnaround times. The company has a world-class design studio for watches
and accessories.

JEWELLERY
In 1995, the company diversified into jewellery under the brand – Tanishq to
capitalize on a fragmented market operating with no brands in urban cities.
In 2005, the company launched its second Jewellery brand, Gold Plus, for
capitalizing on the opportunity in small towns and rural India.
Tanishq is India's largest and fastest growing jewellery brand with a
premium range of gold jewellery studded with diamonds or coloured gems
and a wide range in 22kt pure gold. Platinum jewellery is also a part of the
product range Tanishq is one of India's largest specialty retailers and is
transforming the jewellery market in India 102 boutiques in 72 cities across
the country. ‘Gold Plus' is the recent retail offering for the mass market with
plain gold jewellery selling through 19 stores in 19 towns. The jewellery
division has its own design studio.

FASHION ACCESSORIES

The company has now diversified into fashion Eyewear by launching

Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear. The
Company leveraged its manufacturing competencies and branched into
Precision Engineering Products and Machine Building from 2003.

Eye Gear: Sunglasses, Prescription Glasses. Contact Lenses

Accessories: Wallets, Purses, Wrist Bands

MARKETING MIX OF TITAN

PRODUCT
Quality and leadership are the two main terms for the Titan. To achieve the
marketing objectives these aspects are also be considered.

i. Product line:
To increase the sales, the difference in the prices of the watches is justified
by the features.

ii. Product pyramid:

Portfolio of Titan’s product is of 3 distinct price-ranges that can be defined in
general, as Popular, Mid, and Premium. At the popular segment, the
emphasis is on in volumes but not in margins. At the premium segment, the
emphasis is on profits and image but not in volumes. Obviously, company
giving more emphasis at the top of the pyramid as profits at the top of the
pyramid is very high. This pyramid guided the strategy of Titan.

iii. 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 focus on specific segments.

ATTRIBUT
ES TITAN TIMEX HMT
Mediu Mediu Mediu
High m Low High m Low High m Low
Watches for
Youth Yes Yes Yes

Jewelry Yes Yes Yes

Eye Gears Yes Yes Yes

Accessories Yes Yes Yes

PLACE

Keeping in mind about the young trendy and fashionable consumers, Titan
distributes its product and set up ‘world of titan’ in different region. The
consumer’s 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.

i. Time Zone:
Titan Industries brings together the country’s leading watch brands under on
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.

Ii. 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.

Iii. Sonata Stores:

Sonata stores are 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.
ATTRIBUT
ES TITAN TIMEX HMT
Mediu Mediu Mediu
High m Low High m Low High m Low
Organized
Retail Yes Yes Yes
Urban Area Yes Yes Yes
Rural Area Yes Yes Yes Yes
Online
Purchase

PRICE

i. Survival:
The Exacta is a simple steel watch priced at Rs.600-1,100. The company also
deals with Spectra, Raga through pricing policy.

ii. 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.

BRAND PURCHASING CATEGORY

POWER (PRICE)
RS.
FAST TRACK 550-1,430 YOUTH
RAGA 1,420-4,000 UPPER CLASS
REGALIA 1,725-7770 UPPER MIDDLE
CLASS-UPPER CLASS
EDGE 4,500-5,200 BUSINESS CLASS
NUBULA 10,000-45,000 UPPER CLASS
Price bands of various brands
ATTRIBU
TES TITAN TIMEX HMT

Mediu Mediu Lo Mediu Lo

High m Low High m w High m w

Low end Yes Yes Yes

Mass
market Yes Yes Yes
Premium
&
Luxury
brands. Yes Yes Yes

PROMOTION

i. Marketing pricing:
As by opening new shops such as the world of Titan – buy directly from the
dealer and hence the element of middleman is not there. Here the retailer in
this category buys watches for 17-18% lesser than MRP and hence they are
able to get the 17% profit margin on sales. It is managing to successfully
convince to the customer of the perceived value of ‘WORLD WATCH’
and using hoarding all around the city, increasing buyer image, trust
worthiness, innovation, differentiation, value for the product.

Price discount and allowances:

Every year Titan comes with a price discount sale on the MRP of the
watches. The allowances vary from one segment to another.

ii. Creative advertising:

 Titan introduces a contest on cartoon network in india.com this invites
children to use creativity and design watch. The prize winning design was
launched as a new watch in summer 2002 collection.

Type of advertising:

Titan believes in making its ads clean, well made, touch on emotional chord.
As the company is using celebrities or superstars that is Amir Khan for the
Titan watches. As here we can say that a female actress would be more
effective for the promotional purpose. It can be Katrina Kaif, as now she is
one of the popular actresses in Bollywood.

iii. Promotion on occasion

Titan is one of the companies which formally believe in the policy of

promotion the product based on the occasions.

ATTRIBUT
ES TITAN TIMEX HMT
Mediu Mediu Mediu
High m Low High m Low High m Low
Advertisem
ent Yes Yes Yes
Brand
Ambassado
r Yes Yes Yes

Tagline Yes Yes Yes

Brand Trust Yes Yes Yes

Promotional
Programme Yes Yes Yes