CONTENTS

ACKNOWLEDGEMENT

INTRODUCTION

EXECUTIVE SUMMARY

COMPANY BACKGROUND

SITUATION ANALYSIS

SWOT ANALYSIS

SEGMENTATION STRATEGY

MARKET RESEARCH

MARKETING PROGRAM

CONCLUSION

BIBLIOGRAPHY

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

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 company must carry the TATA mark.

The Tata’s may be a 102-year-old company, but they want to be

seen as a young, contemporary, new, entity”,. Besides evolving a

central brand for all companies, the Tata group has also

redefined its objectives and laid down three key themes that

would guide the philosophy of the “new Tatas” – global, futuristic

and modern. The target audience? Generation next.

The Tata Open

The battle ground for this new strategy of synergy started with

the Tata Open (India’s biggest tennis tournament) held every

year in December – January. The tata’s have paid Rs.10 crore

for the three-year contract. For the Tatas themselves, it meant

more than just sponsorship – it signaled the beginning of a new

era in the Tata regime.

One of the main reasons for the sponsor of this event is “Global

event like these provide a great opportunity to corporates to

satisfy their marketing objectives and cross-promote their

brands”,

Creative Advertising

Titan introduced a contest on cartoonnetworkindia.com which

invites children to use their creativity and imagination to design a

watch. The prize –winning design was launched as a new watch

in the Summer 2002 collection and the winner received the first

watch of this collection. The Top 5 won a Dash! Watch each and

all participants were awarded certificates.

Type Of Advertising

Titan believes in making its ads clean, well made, touch an

emotional chord, convey the message, have catchy jungles and

make an impact. The use of celebrities, superstars is not there.

These only ad to the expense packet of the company and

companies only catering to the niche market of the upper cream

like a Rolex or an Omega afford these. Majority of the people are

rational buyers and very rarely get carried away by celebrity

endorsements. They also know that they will eventually end up

paying for such celebrity endorsement. Rich kids, Young DINKS

(Double income, no kids) and Yuppies may fall for such ads but

not ordinary people. At the end of the day, if your product or

service is not good enough or does not offer value for money,

your advertising will get no where.

Promotion On Occasions

Titan is one of the companies which formally believes in the

policy of promotion the product based on the occasions of the

calendar. With every occasion having a special memory attached

to it exploits this memory aspect and pushes its products. Not

only the promotion of the existing products is done on these

occasions but new products which would sell like hot cakes are

launched for the sole reason it creates an impact in the minds of

customers and appeals to the occasion thus making it even more

special. In this context TITAN launched the THE BIG HEART

OFFER FROM TITAN FASTRACK where fashionable jewellery

was a gift on purchase of any Fastrack watch. This jewellery set

of a pendant and earrings is contemporary and unique in form

and material, with steel and acrylic being used together for

stunning effect. This was launched for Valentines day where the

name scheme, The watch being advertised for (Fast track) as it

pertains to the youth, jewellery (for the youth), valentines day

(more so for the youth) and adding to the excitement is A

LIMITED EDITION FASTRACK VALENTINE'S COLLECTION

that is being made available in four designs. Only 300 watches of

each design will be on sale across cities during this fortnight.

These watches are designed is steel with leather straps in the

colors of the season – black, red and silver. The dials are in

matched colors with heart patterns, making the collection a true

blend of fashion and romance. "Young couples are looking for

new ways to discover their relationships and this set of special

watches and matching jewellery from Fastrack, gives them just

the reason to do so. The `promotion was in Mumbai, Delhi, Pune

and Bangalore from Feb 1–14.

Musical Advertisements – Subtle Advertisements

With changes coming up in the way one advertises Titan has

changed too from the trend of constantly bombarding the

consumer with the name of advertisements to subtle advertising.

Through this titan is reinforcing just the name Titan and not any

one of its products. The tune used by titan is Wolfgang Amadeus

Mozart's 24th symphony as its signature tune. In the recent trend

of advertising Titan uses only music to get its message across,

with the company name making only a brief appearance.

Segmentation

Titan started its activity of marketing under the name TITAN as a

brand not promoting on basis of the models it had. Gradually

when markets became more demanding it felt that the brand

needed to be segmented. This was in the years of 96 and

onwards titan segmented because it felt the need that people

know about different brands and the target audience was easy to

identify. This was because titan was just entering the market and

needed to meet specific people for their needs. For eg, it went on

with the regalia, sonata brand which met different needs of

different sets of people in the market. Thus titan got known

among every one in the market cause they knew what was in

store for them from the titan's stable rather than just knowing that

titan manufactures watches.

50 Million Concept

Titan achieved the 50 million mark and hence it had a great

slogan to blow the trumpet loud. The 50 million concept signifies

the concept that 50 million happy faces who not only own but a

sense of love, care and prestige, associated with what the titan

has given them and will be giving them. This was aimed at all the

categories with the smiling faces of the common man. Seeing

this one gets the message of 50 million watches, the landmark

titan has achieved, which means the name has metal in it and is

something which can be trusted at the same time the emotions

portrayed in the ad make emotions run high in the blood and one

wants to be associated with the brand rather than buying some

other watch.

Strategic Implementations

Implementation is an integral part of strategy. Strategy is not just

a set of ideas removed from reality. It becomes visible only when

you implement it. When Titan entered Indian jewellery market it

signaled an opportunity for an organized sector. The customer

was moving towards branded goods in other segments. The

concept of brands was not familiar with the Indian customer.

Titan did the process of creating brands in the minds of

customer. A consumer goes to Tanishq because she believes

the brand stands for purity and good design. This insight, along

with the increasing mobility of Indian customers, is helping

Tanishq mature into a national jeweller.

Focus

The strategy that Titan adopted in recent years is that of focus. It

has segmented the market into different need groups and

tailored its strategy to the exclusion of others. By optimizing its

strategy for the target segments, it seeks to achieve a

competitive advantage in its target segments. Market

segmentation is concerned with identifying differences in the

buyer behaviour, allowing a firm to match its capabilities with

distinctive products and related marketing programs. Market

segmentation tends to focus on the marketing activities in the

value chain in which Titan commands a very formidable position.

This also allows Titan to find out how it should serve each

segment.

Strategic implementation

Companies must have robust processes to develop strategies

irrespective of the personality of the CEO. `THE WORLD OF

TITAN’ our exclusive showrooms for watches are our assets. As

retail formats change the role of the showrooms may also

change. Initiatives need to be prioritized. Some of the

showrooms have been done up last year. However we must start

today. Pragmatism has also set in perhaps because of the

downturn. The depth to Equity ratio in titan is high where Titan

faces a financial risk and hence their current initiatives involve

any thing which do not require much financing.

Banners-Hoardings

It is not difficult to see TITAN hoardings displaying its

prominence in the streets of an urban city. The prime locations,

next to dealer outlets hoardings with attractive, clear, simple but

catchy slogans are put up and a particular product or some times

the name TITAN in general. One of the hoarding promotes the

World Watch where the hoarding states “MADE IN INDIA”

“CHERISHED IN GREECE”. Like this many catchy ones are

there. Older ones state “THE PERFECT VALENTINE GIFT” was

released a month before valentine’s day.

Sponsorship

Titan is involved in sponsoring major events, culturals and other

fests in colleges, schools and nation wide happenings. This way

of promotion gives it the extra mileage to increase its data base

by directly tapping the customers to convince them about a

TITAN.

Revamping the titan Brand Image

Titan after all its marketing efforts in the market is going back to

step one where it started when its first marketing activity

concentrated on titan name rather than the different watches it

offered. Then came the segmentation of the brand where every

different product was advertised individually that is every product

got its own identity. Titan felt that the segmentations was high

and the brands have got their own name rather than titan being

associated with them, so titan has gone back to revamp the

brand image and market this product on the name titan. For this

all its ads from September 2003 onwards would focus on titan as

a name, this includes the showrooms are being re modeled to

suit the strategy. The focus now is on titan rather than fast track

and regalia the logo would promote TITAN. The policy is in

accordance with the advertisement released on television which

simply and subtly promotes TITAN.

Seasonality

One major way of promoting the titan product is through

seasons. To understand a little more about it for Example. During

a wedding season or for Diwali Titan promotes Nebula, Bandhan

because there is demand for the product. Gold watches and

pairs are the likes of a wedding occasion., similarly the fast track

brand is promoted in the months of June – August when schools

and colleges re open and since these watches cater to the

segments of youth, these watches get the extra mileage on sales

if promoted during these seasons.

Gifting Concept

Titan initially started of as a brand which was associated with

gifting and relations. Today also titan is associated with the

image it stated off with. The fight concept sells well for people

have come to associate titan with love, care and makes emotions

run high. More so ever the product is that of quality and style.

The titan Nebula and Bandhan would fall more aptly in this

category and the Dash is promoted with the gifting concept in

mind because a parent gifts the child a watch.

Strategic Flexibility

Keeping your options open means building flexibility in the

strategy. For instance in 1998 – 99 Titan announced its intention

to become a global player, to address the multiple segments

emerging in the Indian market through multiple brands and sub

brands, and to offer terrific value for money through differentiated

design, retailing and brand image. The company addressed

multiple segments through brands such as sonata, fast track,

Raga etc. it realized that as the market became more competitive

multiple brands would be the best way to address the needs of

the market. When you have multiple brands you are more flexible

and less vulnerable. Titan has gone in for multiple brands.

Promotion Through Contests

TITAN ties up with various magazines, televisions, outlets where

TITAN gifts could be own for winning the contest. One of them is

THE WEEK magazine where one could win TITAN watches and

also many magazines offer many watches depending upon their

needs. TITAN also offers bulk discounts to players who pick up in

lots offering it as a gift to schemes and to companies for their

employees.

Promotion Through Television Programs

TITAN sponsors a program or a serial or ties u with for example

a show like MTV TIMECHECK done by ESPRIT, time wear.

Such promotion done as an exclusive sponsor and targeted at a

particular segment. For example, if a youth program then fast

Track would be focused on and on CNBC or CNN business

programs the Steel or the World watch.

CONCLUSION

In the Journey from being a watch manufacturing unit to the

watch leader in the industry the journey to the 50 million watch

mark has just shown the METAL of which Titan is made of.

In this MEMORABLE TRANSFORMATION Titan has at every

step taken FULL `N’ FULL care of each person that entered its

50 MILLION STRONG FAMILY which has made it possible to be

what it is today.

TITAN COULD BE CALLED BY VARIOUS NAMES.

“The Company that brought Quartz watches in India”.

“Everyone’s Brand yet different products to different people”

“The company that made watches a fashion statement than a

time piece”

And many more…

Titan has proved its true identity taking the Indian name to

foreign soil and shining on soil not its own, the respect the name

commands in the watch industry has been achieved in a very

short time.

50,000,000

& STILL GOING STRONG

WELL DONE TITAN

BIBLIOGRAPHY

WEB SITES

www.titanwold.com

www.tata.com/titan

www.google.com

www.indianfoline.com

www.thehindu.com

www.economictimes.com

BOOKS REFERED

MARKETING MANAGEMENT – PHILIP KOTLER

MARKETING BASICS - RAJAN SAXENA

ON SITE INFORMATION

THE WORLD OF TITAN SHOWROOMS

INTERACTIVE SESSIONS WITH MS.NARISHIMA AT THE

REGIONAL OFFICE AND WITH THE PROPRIETOR OF “THE

WORLD OF TITAN” - USMAN ROAD MR.SURESH

MAHBOOBANI