EXECUTIVE SUMMARY

The present study consists of reviewing the advertisements of Titan over the brand’s
life period and the positioning strategies of Titan watches. An analysis of
repositioning strategies of Titan also forms part of the study. The main objective of
the study is to find out whether the loyal consumers of titan watches are aware of
the new positioning strategies of the company through the titan ads and how they
perceive them. The first part is to understand the titan ads from the beginning along
with the ad elements and the impact of the ads in the consumer mind.

The second part of the project comprises of conducting a survey with the help of
Questionnaire. The survey is proposed to be conducted on a sample of 30 consumers
who are loyal to Titan Company, selected through convenience sampling technique.
The questionnaire consists of appropriate mix of open ended and closed ended
questions. It is done basically to get the customer reach which is the outcome of the
ad expenditure

The conclusion part of the report would provide an insight of consumer awareness
with brand repositioning strategies and their effectiveness in revamping the brand
through titan ads and how far it helps in fixing its Brand image over consumer minds
which in turn results in sales.
Chapter 1-Introduction

Advertising is the paid form Brand promotion. It can be commercial video ads or print
ads or promotional ads. A company has to spend lot of amount in the beginning stage
to get customer awareness. The combination advertising medium used by different
companies changes typically and it is interesting to study the advertising strategy of
each firm. Some hesitate to change but some often make changes in the advertising
strategy. It is hard to measure the outcome of advertising investment as Brand value
but easily predicted in terms of sales.

There are different kinds of advertising which company does normally, They are:

• Informative advertising
• Persuasive advertising
• Reminder advertising
• Reinforcement advertising

The effectiveness of the advertisement is measured in terms of

 Reach
 Frequency
 Impact

In this study we are going to look after the strategy adopted by Titan Brand over long
period and its recent change.
Chapter 2-Research Methodology

2.1 Sources of Data Collection

The relevant data was collected from both primary sources and secondary sources.
The beginning information gathering such as industry details and the company profile
are taken from the secondary sources.
First, study of the advertising strategies of Titan was done through secondary
sources such as internet, magazines, and journals and so on. Then we conducted a
consumer awareness survey on advertising strategies and awareness of Titan ads
undertaken by Titan.

2.2 Sampling Procedure

A sample of 30 consumers who are brand loyal to Titan watches since more than a
year and in the age group of 35 – 50 years have been considered for this study. As
Titan has taken up brand repositioning strategies since July 2008, consumers who
have seen the previous and new campaign have been targeted. Also 10 consumers of
age group between 18-25 who are primarily fast track users were also taken in
sample separately.

2.3 Primary Data Collection

Data was collected through an interview schedule
, consisting of both open ended and closed ended questions. The schedule covered
parameters like reasons for consumers’ brand preference; recollection of earlier
tagline and advertisement, brand ambassador of Titan; awareness of new tagline and
campaign featuring Aamir Khan, new designs and Impact of titan ads, Perception of
consumer about the ads. The data was collected through one-to-one personal
interviews.
Chapter 3 - Industry Overview
3.1 History of the watch market

The Indian watch industry began in the year 1961 with the commissioning of the
watch division of HMT. The first watch model manufactured by HMT was the Janata
model in the year 1962. HMT was the leader in the watch market till the Tatas formed
Titan Watches in association with Tamil Nadu Industrial Development Corporation in
the year 1987. They took a major strategy decision, which later changed the face of
the Indian watch market- to manufacture only quartz watches. Liberalization in 1992
and the removal of quantitative restrictions due to WTO has opened the doors for
many foreign brands in the Indian market viz. Tissot, Swatch, Omega, Rado, TAG
Heuer, Rolex and many others. The import duties on watches are falling which makes
the Indian market attractive for the global majors like Casio, Swatch and Citizen.

3.2 Indian Watch industry:

Porter’s Five Forces Model

1. Supplier Power:

HMT has its own fully integrated operation for production of its watches. 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.

2. Buyer Power:
Price sensitive, Buyers’ Preferences The Indian watch buyers are very price
sensitive, especially in the lower end of the market. There is still a huge untapped
market in India with market penetration of only 20 units per thousand people while
the world average is more than 100. 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.
3. Entry Barriers:

The Indian watch market in the recent years has shown a dramatic increase in the
number of brands available in the market due to removal of quantitative restrictions.
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.

4. Threat of Substitutes:

There are no such substitutes to watch as a product. However, in terms of the

Company’s offering various variations for watches such as pendant watches and
jewelers 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.

5. Degree of Rivalry:

There are many companies in the Indian watch market, however, the product ranges
offered by them are manifold. This makes the competition very stiff. Also at the lower
end of the market it is basically the Value for Money, which differentiates the
players. The strategic stakes for the producers are very high. Titan Ltd., the largest
company in terms of market share in the organized sector has faced losses in the
quarter ended June 2001 despite increase in the market share due to
macroeconomic situation. HMT faced a similar situation when Titan was introduced
in the 1980s leading to a sharp fall in its market share.

3.3 Present Situation of the Indian Watch Market

The Indian watch market is today of 40 million units, out which 60% is in the
unorganized sector in which the maximum number of watches are sold are below
Rs.300. Quartz watches form two thirds of the organized sector and the rest is split
between mechanical and digital watches. Even in the organized sector, three fourth
of the sales by volume comes from watches that are priced below Rs.1000.
Plastic as such is not acceptable to average Indian consumers, especially those from
the small towns and rural areas who regard it as cheap and flimsy. They want
toughness which translates into a good quality metal model at a reasonable price.
Watch is one of the consumer durables whose replacement rate is very high. The
replacement rate of watch is 33.8%(Source: India market demographics report,
1998). This is also due to the fact that the estimated scrap rate of wrist watches is
7.8%, which is applicable after 6 years (Source: India market demographics report,
1998). So due to high scrap rate, outdated models, and the shift from the mechanical
watches to the quartz watches is causing a very high replacement demand for
watches. This low penetration levels represent the untapped market potential for
watches in India.

3.4 COMPETITORS
The major players in the Indian watch market include HMT, Titan and Timex. The
other players include Westar, Shivaki, Maxima, SITCO. Foreign brands such as
Cartier, Piaget, Omega, Tiffany’s and Corrum, Gucci, Longines, Casio, Citizen, Tag
Heuer and Espirit are also making an inroad into the Indian market. Titan has been
consolidating its market share over the past decade. Timex watches, which entered
in India with collaboration with Titan, now independently has also gained substantial
market share.

3.5 Segmentation of Indian Watch industry

Based on price

 Mass (Rs.350-600),
 Popular (Rs.600-900),
 Premium (Rs.900-1500),
 Super-premium (Rs.1500-8000)
 Connoisseur segments (above Rs.8000)

Based on user category

 Men’s watches
 Women’s watches
 Youth watches
 Kids watches
 Sports watches
Chapter 4 - Company Profile

4.1 Overview

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, offering quartz technology with
international styling, manufactured in a state-of-the-art factory at 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. It has also in its portfolio its first Swiss Made watch brand – Xylys. 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. 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.
Today Titan Industries is India's leading manufacturer of watches and jewellery
employing 3,800 people. Titan and Tanishq are among the most admired brands in
their categories.

4.2 Products
The company manufactures over 8 million watches per annum and has a customer
base of over 80 million. It has manufacturing and assembly operations at Hosur,
Dehradun, Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main
products are:

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 and Xylys for the premium market. The Titan brand architecture comprises
several sub-brands, each of which is a leader in its segment. Notable among them
are: 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 and several 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 65% 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. Its after-sales-service is itself a benchmarked
operation with a network of 750 service centres and amongst the world's fastest
turnaround times. The company has a world-class design studio for watches and
accessories.

4.3 Precision Engineering

The company's Precision Engineering Division supplies precision components to the
avionics and the automotive industry. It also manufactures dashboard clocks as OEM
to car manufacturers in Europe and America. The division also provides fully
integrated Automation solutions

4.4 Awards

The company has been awarded the following distinctions:

• Being named the No.1 Brand in the Consumer Durables category in the "Brand
Equity" Survey of The Economic Times, a leading Indian financial daily.
• The Titan Design Team won the Young Design Entrepreneur of the Year award
at the design awards instituted by the National Institute of Design and
Business World, a leading Indian magazine. The team has won 7 accreditations
also.
• Both Titan and Tanishq have been adjudged "Most Admired Brands" as well as
"Retailer of the Year" by Images Fashion Forum in consecutive years.
• Retail Asia and Media Magazine – Singapore adjudged Titan Industries as
amongst the leading Retailing Companies in India.
• Titan has won the Brand Leadership award at the India Brand Summit.
• The Time Products Division of the company was awarded the JRD QV Award in
2006.
Chapter 5-Advertising Expenditure –
Titan saw this as a vital investment. Right from Day 1, Titan invested significantly in
advertising and in that process created a set of memorable and effective properties
over the years.
So Titan, backed by world-class quality created at a world-class plant located just off
Bangalore, backed by the Tata name, was launched into the Indian market on the
back of these new rules. It created waves right in the early days, mesmerized
consumers, demolished competition and rode into the sunset with panache.
Today, in early 21st century India, it is taken for granted that a watch is a fashion
accessory. Titan dominates the market, with a 60% share of the organized sector
market (the total market, including the unorganized sector, is estimated at around 42
million units). Titan's quality record is impressive, its sales and service network is
wide and deep, and its network of exclusive showrooms, The World of Titan, is one of
the most prestigious and visible retail brands in the country, offering world-class
levels of shopping comfort and customer service.
What is truly amazing about Titan is the sheer scale of its offering and the
consequent choice it offers to multiple segments across taste, age and economic
background. Titan saw this approach as the foundation of its leadership strategy in
the early days. Even the early range had distinct offerings for different requirements;
formal watches (gold plated cases with fine leather straps) for the executive, dress
watches (gold plated cases with ornamental gold plated bracelets) for those with a
preference for jewellery, rugged watches (all steel watches with a skew to
functionality) for those whose usage demanded a certain durability.
Titan has built on this principle over the last 15 years, almost year after year:
In 1989, it was Aqura, the trendy range for the youth, colourful, smart and affordable
plastic watches for the youth: The other side of Titan for the other side of you.
In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for
the sophisticated India woman who appreciated such things.
In 1993, it was Insignia, very distinctive and international-looking top-end watches,
for those seeking exclusivity and status.
In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious
sports features (200-m mater resistance, high precision chronographs) for those with
the penchant for adventure.
In 1996, it was Dash, the cute and colourful range for kids.
In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.
In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-
heart.
In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches
for those affluent people to whom gold is a precious acquisition.
In 2001, it was Steel, the smart and contemporary collection for the young 21st
century executive.
And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each of
them unique and fascinating.
The underpinning of this entire market development and segmentation is Innovation.
Titan has kept innovation core to its strategy, realizing fully that the only way to
sustain the fashion accessory perception is by continuously coming out with
collections that make the current ones somewhat dated, thereby creating a certain
discomfort in the consumers' mind, which leads to another purchase. This impact has
shown up in every one of the collections spoken of earlier. They were fresh and
distinctive, unlike what consumers had seen before, and thus created curiosity, walk-
ins and sales.
A stellar example of Titan's Innovation is Edge, the slimmest watch in the universe.
Titan's R & D talent created a wafer-thin quartz movement, a mere 1.15mm thin, over
4 years of development work. The immensely talented Design team collaborated with
the Manufacturing group to create Edge, a 3.5-mm watch, a gem of elegance, with
water-resistance to boot! Edge was launched in India early 2002 to tremendous
market acclaim and sales success. It is a design and technological marvel, which
justly received the Best Design Award in the Lifestyle Product Category in the first
annual design contest organized by Business World and NID.
Titan also chose to invest heavily into showcasing all this innovation to the
consumer through advertising. From Day 1, the 'catalogue" advertising of Titan
became its trademark as it was used regularly and effectively to merchandise new
models. The catalogue ads also helped customers to shop off the page and almost
decide which model they wanted to pick. Retailers also became used to seeing
customers walking into shops with newspaper "cuttings", asking for the models
shown there. This approach continues to this day, with mostly the same effect.
In the early nineties, Titan chose to develop the "Gifting" market. Watches had
always been favorite things to gift, and Titan had benefited from that. Titan was
convinced that there lay a greater potential in that segment. A set of 3 films were
developed in 1991 around 3 relationships, where the gifting of a Titan culminated in a
moving personal moment and a strengthening of the bond between the protagonists.
These films became a big hit and created a genre of advertising films which lasted a
good 8 years. During those years, a series of films involving a variety of characters
(father, daughter, teacher, boyfriend, ex-boyfriend, thief!) and with local flavour (for
Onam in Kerala, Puja in Bengal) were created and released. These not only helped
build a good-sized gift segment for Titan, but also became Titan's Theme Campaign,
building strong emotional values for the brand. One of the films in the series, where a
man and his younger daughter conspire to give his older daughter a Titan as a
surprise gift at her wedding, released around 1994, went on to become the most
popular Titan film ever, even voted by the viewers of Zee Television as the second
most liked TV commercial on the channel.
The most enduring part of the Titan advertising has been the music track. Chosen by
Xerxes Desai and the creative head of O & M in 1987 for its class and western vibes,
the segment from Mozart's 25th Symphony has arguably become Indian Advertising's
most memorable track (incidentally, and perhaps not coincidentally, this was the
most liked advertising track in the same Zee TV survey). Starting in 1987 in its pure
classical versions, with a single violin playing the melody, this piece has been
rendered in countless innovative versions over the years: Indian Classical, Indian
Folk, Operatic, Rock, Funk, And has become such a powerful audio mnemonic for the
brand.
Another successful customer-facing aspect about Titan has been its stores.
Organized retailing did not exist in the late eighties. The concept of exclusive brand
stores was almost non-existent. In a pioneering effort that dramatically altered
industry standards, the World of Titan was born. Located in the newer parts of a city,
with a good frontage and layout, the showroom immediately stood out on the street
and attracted walk-ins. Once inside, you were totally impressed with the
presentation. You walked along the wall, where recessed "mood windows"
showcased specific collections in the appropriate context with the help of visuals,
decorative props and word (the place looked almost like an art gallery). You could
get a better idea about that collection through such a contextual presentation and
could make up your mind which collection was right for your requirement. Then you
would walk along to the selling area, where the entire range was displayed in style.
Smart and helpful salespeople waited on you there and helped you choose the best
piece by giving you information and suggestions. You walked away overwhelmed.
This experience now has over 255 branches and has penetrated the width and
breadth of India. Helping the brand increase sales, increase price premium, sell the
more expensive watches, improve image, keep competition at bay and keep the
brand name salient on the high streets of the country. Refurbished with a
contemporary look in 2001, this chain has become even more integral to the brand's
destiny today.
Doing all this in style has earned Titan enormous goodwill and respect. Titan was
voted the Most Admired Brand (across categories) in India by consumers, in the first
such study by Brand Equity done in 2001. Titan was voted the Most Admired
Consumer Durables Marketer by industry professionals, 8 out of 9 times (the ninth
time it was No 2), in A & M's annual survey done between 1992 and 1999. Titan was
voted as “The Most Respected Consumer Durables Company” in a Business World
Survey in 2003. Consumers and professionals alike have resonated equally to Titan's
successful efforts in bringing international standards to India. And in 2008, it
emerges as the 24th Most Admired Brand in the ET Most Admired Brands survey done
annually; it was also the most admired Consumer Durable brand.
Titan has also done the seemingly impossible reverse thing, taking Indian quality to
international markets. Since starting export operations in a small scale to the Middle
East in the early nineties to exploit the resident NRI population, Titan has come a
long way. Moving into the European market in the mid-nineties and Asia Pacific in the
late nineties, Titan today sells in the UK, Spain, Portugal, Greece, Singapore,
Dubai, Malaysia, Oman, Philippines and many more countries. The customers are no
longer only NRIs. They are the Thais, the Greeks, the Arabs, the Filipinos - through a
combination of Contemporary Style, Great Quality and Great Prices, Titan has put
together an irresistible proposition for the people of these countries. With over 100
million satisfied consumers and a track record of breaking the rules, Team Titan
faces the 21st Century with a mix of passion, excitement and energy.

HOW DID THE TITAN MUSIC ORIGINATE

The idea of using the flamboyant third movement from Mozart's 25th Symphony in G
minor, written when Mozart was only 17 years old, came from Suresh Mullick who
was O & M's creative head in 1986 when Titan's first TV campaign was being
planned. Mozart's symphony had already been immortalized for contemporary non-
cognoscenti in one of the greatest movies of our time, AMADEUS, which was
released in 1984.
The music was such a resounding success that it was never ever dropped, and no
thoughts were ever entertained of making a change.
But the original score did go through numerous metamorphoses as it was rendered
with musical instruments that Mozart could not have even heard of, leave alone
heard. Perhaps it is in the nature of great and enduring music that it can be adapted
to such a variety of powerful visual images united only by a single mood and
message.
The music was singularly appropriate: it exuded enthusiasm and energy,
flamboyance and power, tenacity and triumph. It was young and full of zest, typical of
the composer himself. Yet it was classy and elegant. And, of course, it was very
European. Both the music and the man who wrote it perhaps the greatest musical
genius of all time had all the right connotations and fitted so very well with the
character of the brand and of the organization that we were seeking to create.
Chapter 6-AD-ANALYSIS:
Primary Ad-categories:
• Couple album

• Love rain

• Festival occasions

• Wedding gift

• Stage show

• Grand parents

• Fashion model

• Adventure

• Sports touch

Recent theme:
“BE MORE”-defining the personality of “Titan” customer.

PRIMARY AD- ELEMENTS:

• Jingle

• Celebrities (Recent past)

• Relationship/spirit

6.1 AD-STRATEGY:
The positioning of the brand in the earlier stages was quite clear as “Premium” brand
and meant for giving “Memorable Gift”. Hence ads never spoke about the personality
of the Titan user or buying it for own use and served the purpose of gift. But we
spotted that most of the ads were targeted on female gender to be presented with
Titan watches though the background scene changes from wedding to festival. To
solve this they came up with brand extension Titan-Raga exclusively for female
gender so that Titan still remained premium segment for both genders. Problems
arose when they tried to increase the categories to sports and adventures. The old
ads. The slight change in the jingle depending on the back ground of the
advertisement added plus to every ads.

Re-positioning:
They dropped the idea of gifts and came with a new line”BE MORE”. Thus they
defined the Titan user and also created need to wear Titan. Introduction of new
brands “fast track “and “sonata” in the own company helped them to stay away from
fancy extension and concentrate on premium brand. Celebrities like “Amir Khan” and
“Rani mukerjee” helped in defining Titan user. Now titan ads are more about the
personality and spirit with the same Titan signature jingle in latest version.

Good part is that though they had change in positioning of the brand they didn’t leave
the feature of the brand in the ads such as “jingle” and “premium outlook”.

From ads which showed joy and relationship with lot of people they have come to the
new way of execution with just celebrity and portraying spirit. Ads which showed the
care for memorable persons in life has taken shift to make their own life memorable
with spirit. The best example of premium quality in the brand is the innovation of new
slimmest watch “EDGE”. That ad for promoting it cast by Amir khan showed that
even celebrity is popular only with “Titan-edge” it clearly shows the premium nature
of the brand.

6.2 SURVEY OUTCOME:

Among the 30 sample of management level executives; 15 of them were hard core
Titan consumers they felt the new repositioning step has increased the premium
brand value of the brand and Titan should move in the same path. Some of them were
using other leading premium brand watches. They felt titan should become more
premium to attract the high level segment. But they all were aware of titans and they
did like Titan ads.
Remaining 10 samples of fast track users were asked special question of “will they
use Titan brand watches as they grow up in career?”. 5 of them were able to say
“yes”, 3 of them preferred other brands and two feel fine with “fast track”.

Chapter 7 Bibliography: