cb part 2 titan group project report

8/7/2019 CB Part 2 Titan group project report

1/12

Page | 1 of 12

Institute of Management Technology, Dubai

CONSUMER BEHAVIOR (MKT: 812)

PART 2: GROUP TERM PROJECT

ON

TITAN

Submitted to:

Dr. Mohan Lal Agarwal

Submitted by: (Group 5)

Pranay Sachdev (Smba 09049)

Siddharth Verma (Smba 09069)

Vaibhav Khurana (Smba 09077)



2/12

Page | 2 of 12


ACKNOWLEDGEMENT

We are grateful to our Marketing Professor at IMT Dubai, Our Project Mentor and Guide, Dr.

Mohan Lal Agarwal for his continuous encouragement and support throughout the course of

the project. We are thankful to him for trusting our capabilities to handle the creative work

and for giving his valuable inputs to improve it even further. It was a pleasure and a true

learning experience working under his guidance and support.

Group 5

Pranay Sachdev (SMBA09049)

Siddharth Verma (SMBA09069)

Vaibhav Khurana (SMBA09077)


3/12

Page | 3 of 12


EXECUTIVE SUMMARY

Titan is a brand which is well renowned especially among Indians. It is the world fifth largest

manufacturer of watches and has till date manufactured around 100 million watches. In 1991,Titan set up a company called Titan International (ME) FZE in Dubai and this was also titan's

first step in its internationalisation journey in the Middle East Market. The decision was

based on market research and one simple indisputable fact that the region had a large Indian

population, for whom Titan was already an established and well-known brand. Company

have a wide distribution network, attractively designed retail outlets, efficient after-sales

service and focused advertising. The Target market segment that Titan focuses on in Middle

east is the Medium and High End watches as general population here have enough money to

spend and in case of watches which is a commodity which is purchased once in fortnights, a

middle class person would buy a watch which is stylish and not too expensive. The sole

distributor of Titan in the UAE is ETA (Electro mechanics).

Our group selected Titan watch as our topic because we feel that the perception that people

carry that it is not a global brand and that its competition in international market with brands

like swatch, fossil spirit etc. makes them the last choice. Our group tried to highlight

problems and challenges that Titan faces here in Dubai. In order for it to become a

international global brands it would have change it approach and come with innovative idea

to tap international market as the competition is really stiff.


4/12

Page | 4 of 12


TABLE OF CONTENTS

S. No. Topic Page No.

1. Introduction 4

2. Focus Industry- Watches 6

3. Benefits of Global Branding 7

4. Titan In UAE 7

5. Titan Marketing Strategy 7

6. Consumer Segment Challenges 9

7. Responses 9

8. Learning Outcome 9

9. Future Plans of Titan In UAE 11

10. References 12


5/12

Page | 5 of 12


INTRODUCTION

In the previous Report we commented on the role of Consumer Buying Process of Singles at

30 plus in UAE. As per the data collated by us of single men and women of 30 plus we wereable to analyse the consumer purchasing power. We found that the total UAE population of

males and females according to the recent statistics released by UAE government is that

single men 30+ are 35, 04,000 and single women 30+ are 15, 62,000 and the total population

of single at 30 plus in UAE is 50, 66,000.

LIFESTYLE OF SINGLE MEN & WOMEN IN MIDDLE EAST

Our focus was primarily towards the emirate, Dubai. Since Dubai is considered to be hub of

enjoyment for those who can spend and also due to greater scope of employment. Dubai isthe best Emirate to spend lots of money on enjoyment like parties, branded food and

clothing. The main lifestyle of singl e men and women at 30 plus is

1. Singles at 30 plus are generally employed.2. They live a Comfortable life3. They are the sole decider for their own actions4. They are having lot of money for themselves5. They are having plenty of time for themselves

NATIONALITY DISTRIBUTION OF SINGLE MEN AND WOMEN

0 2 4 6 8 10 12

Indians

Arabs

Phillipines

Europeans

7

5

4

2

4

3

2

3

Single Men

Single Women


6/12

Page | 6 of 12


The primary data was collected through surveys and random sampling methods. We had

taken data from 30 respondents which include 18 men and 12 women which included

nationalities like Europeans, Arabs, Philippines and Indian.

The second part of our presentation that is Response of Marketer operating in the middle east.Our group focused on the issues faced by Titan watches as a global brand.

FOCUS INDUSTRY: WATCHES

Our group focused on consumer buying process in the first part of our presentation and in the

second part we are focusing on the marketers perspective and its response in this part of the

world for the Indian brand Titan. As per the data collated by us we found that the average

Salary of 30 plus singles is 15000-22,000 AED. The average spending by 30 plus singles on

watches for luxury watches is 5000 9000 AED. The average spending by 30 plus singles on

watches for Economical watches is 1500 - 4000 AED. Mostly consumers in UAE givepreference to high End Brands while doing shopping for watches.

Titan

Titan Industries is the worlds fifth largest and India's leading manufacturer of watches. The

company has manufactured more than a 100 million watches till date and has a customer base

of over 80 million. The umbrella brand Titan is one of India's leading watch brands that

brought about a paradigm shift in the Indian watch market, offering quartz technology with

international styling.

The brand Titan is committed to offering its consumers watches that represent the compass of

their imagination. Titan's customers are therefore consistently introduced to exciting new

collections, which connect, with various facets of their deeprooted yearnings for self-

expression. The new brand philosophy of Titan, encapsulated in the words "Be More",

touches this as well as all other aspects of the brand.

The main features:

1. Consumer prefers recognised and global brands.Brand is the personality that identifies a product, service or company (name, term, sign,

symbol, or design, or combination of them). Singles at 30 plus in UAE engaged in branding

seek to develop or align the expectations behind the brand experience, creating the

impression that a brand associated with a product or service has certain qualities or

characteristics that make it special or unique as global brands transcend their origins and

create strong enduring relationships with consumers across countries and cultures.

2. Consumers prefer a mix of Utility/Value & Fashion.


7/12

Page | 7 of 12


The value of a product is the mental estimation a consumer makes of it. Value in marketing

can be defined by both qualitative and quantitative measures. On the qualitative side, value is

the perceived gain composed of individual's emotional, mental and physical condition plus

various social, economic, cultural and environmental factors. On the quantitative side, value

is the actual gain measured in terms of financial numbers, percentages, and dollars. A

consumer prefers to buy a product that is a blend of subtle, unique and portrays some stylestatement.

BENEFITS OF GLOBAL BRANDING

In addition to taking advantage of the outstanding growth opportunities, the following drives

the increasing interest in taking brands global:

1. Economies of scale (production and distribution).2. Lower marketing costs.3. Laying the groundwork for future extensions worldwide.4. Maintaining consistent brand imagery.5. Quicker identification and integration of innovations (discovered worldwide).6. Increasing international media reach (especially with the explosion of the Internet) is

an enabler.

Titan In UAE

1. In 1991, Titan set up a company called Titan International (ME) FZE in Dubai.2. Titan's first step in its internationalisation journey was in the Middle East.3. The decision was based on market research and one simple indisputable fact that the

region had a large Indian population, for whom Titan was already an established and

well-known brand.

4. With innovation and technology, Titan is carving for itself a sizeable niche in thecompetitive West Asian markets.

5. Company have a wide distribution network, attractively designed retail outlets,efficient after-sales service and focused advertising.

6. The Target market segment that Titan focuses on in Middle east is the Medium andHigh End watches as general population here have enough money to spend and in

case of watches which is a commodity which is purchased once in fortnights, a middle

class person would buy a watch which is stylish and not too expensive.

7. The sole distributor of Titan in the UAE is ETA (Electro mechanics).8. Exclusive outlets of Titan in UAE are located in Lulu Hypermarket, Mega Mall in

Sharjah, Time Square Mall, Lamcy Plaza and Deira city centre.

TITAN MARKETING STRATEGY

1. Titan selects advertising media strategically, in order to maximise its reach andvisibility.


8/12

Page | 8 of 12


Advertising as we all know is basically a form of communication intended to persuade an

audience (viewers, readers or listeners) to purchase or take some action upon products, ideas,

or services. Titan uses advertising as a strategy especially in middle east to attract and expand

its customers. The UAE market is a potential market but because of its lack of recognition as

a global brand it faces huge setbacks. To cover these grey areas Titan uses strategy like

advertising.

2. Brand promotion is conducted year-round, through outdoor media, radio and TV.To establish the positive brand image is essential and beneficial for Titan. It helps in

promoting the business of the company. This technique enables to retain the customers for

longer time. This is feasible by creating an everlasting and positive impression on the mind of

the customers. Therefore, brand building and promotion is vital for any organization and

especially for Titan where it has to create awareness among its customers for new products

and promotions.

3. Sales promotion initiatives such as dealer and consumer promotions are heldseasonally for greater mileage.

Sales promotion is an initiative undertaken by Titan to promote an increase in sales, usage or

trial of a product or service. Here are some of examples as how Titan used to do its sales

promotion.

1. Buy-One-Get-One-Free (BOGOF)2. Customer Relationship Management (CRM)3. New media4. Free gifts .5. Discounted.6. Vouchers and coupons.7. Competitions and prize draws8. Cause-related and fair.

Titan Watches

Here are few popular brands of Titan in UAE:

1. Titan Raga2. Titan Nebula3. Titan Edge4. Titan heritage5. Titan Orion6. Titan WWF7. Titan Octane

The Titan brand architecture comprises several collection and subbrands, 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


9/12

Page | 9 of 12


accessory for today's woman, Nebula crafted in solid 18k gold and precious stones. Several

other popular collections like Heritage, Aviator, Regalia, Octane & WWF also form a part of

the Titan wardrobe.

CONSUMER SEGMENT CHALLENGES

1. Consumers do not perceive Titan as a global brand.2. Brand switching/ lack of customer loyalty.3. Existence of Gray market.4. No expansion of Product line i.e. lack of production and development or creation of

watches by Titan which the market is demanding.

5. Lack of futuristic approach.6. Main USP is low cost watches i.e. their focus is still capturing market with low

market value watches.

RESPONSES

1. Enhanced Sales Promotion/ Advertisements Media Marketing.2. Celebrity Endorsement Amir Khan.3. Certificate and Warranty/Guarantee card available at Licensed Stores Value Added

Services

4. Added Wide range of new products in Luxury collection & high end products for theniche markets.

5. Exchange offer/ Be more legend coming up in Dubai in 2011.

LEARNING OUTCOME 1

1. Problem recognition2. Information of services3. Evaluation of alternatives4. Purchase decision5. Post purchase decision

This enables us to understand the buying process of the consumer towards a brand in this caseTitan, which is not a recognised brand in UAE. Following the process illustrated above it can

solve its issues and hopefully capture the market.

LEARNING OUTCOME 2

The Rational Perspective of Consumer Behavior


10/12

Page | 10 of 12


Consumers do not always think rationally because rational thinking is based on reasons or

facts and is hence much more calculating and realistic. All people are capable of thinking

rationally, but people will tend to cloud this ability because of emotions or prejudices.

Rational thinking refers to logical or reasoning being involved in the thought process. It

refers to providing reasons or rational behind thoughts or ideas. It adds an element of

calculation and planning to a steam of thoughts rather then basing them on emotion orpersonal opinion

The evidence is due to:

1. Brand SwitchingConsumer decision to purchase a different watch from that previously or usually purchased.

Brand switching can be instigated by price promotions, in-store displays, superior

availability, perceived improvements or innovations in competitive brands, desire for novelty,

number of available brands, perceived risk, frequency of purchase, changes in quality, or

level of satisfaction with the most recent purchase. These are the few reasons because of

which Titan does not have customer a base.

2. Variety SeekingThis describes a customer's desire to switch to alternative watch out of curiosity. Even if the

customer is very satisfied with the current watches s/he uses, the customer has the desire to

try other competitors' products and therefore switches to other brands.

LEARNING OUTCOME 3

The Star Power is there which signifies what is beautiful Is Good also.

Halo effect:

The brand ambassador of Titan is Amir Khan. The star power attracts the customer to

purchase the product or at times help remembering the product via the actor. When we

consider Titan watches a good (or bad) in one category, we are likely to make a similar

evaluation in other categories. It is as if we cannot easily separate categories. It may also be

connected with dissonance avoidance, as making them good at one thing and bad at another

would make an overall evaluation (which we do anyway) difficult.

LEARNING OUTCOME 4

Perception plays a very important role in consumer purchase behavior. As perception is the

process of attaining awareness or understanding of sensory information. So, we learnt what

one perceives is a result of interplays between past experiences of using the watches, and the

interpretation of the perceived.

The processes of perception routinely alter what Asians see. When people view Titan watches

with a preconceived concept about it, they tend to take those concepts and see them whether


11/12

Page | 11 of 12


or not they are there. This problem stems from the fact that Asians are unable to understand

new information, without the inherent bias of their previous knowledge. A persons

knowledge creates his or her reality as much as the truth, because the human mind can only

contemplate that to which it has been exposed. When products (Titan watches) are viewed

without understanding, the mind will try to reach for something that it already recognizes, in

order to process what it is viewing. That which most closely relates to the unfamiliar fromour past experiences, makes up what we see when we look at things that we dont

comprehend.

LEARNING OUTCOME 5

The Purchase Process:

The purchase process usually starts with a Demand or requirements.

This could be for a

physical part (inventory) or a service. A requisition is generated, which details the

requirements which actions the procurement department. A Request for Proposal (RFP) or

Request for Quotation (RFQ) is then raised. Suppliers send their quotations in response to theRFQ, and a review is undertaken where the best offer (typically based on price, availability

and quality) is given the purchase order. Accordingly there are different types of shoppers as

follows:

1. Fully Planned shoppers2. Partially Planned shoppers3. Unplanned shoppers4. Compulsive shoppers

FUTURE PLANS OF TITAN IN UAE

1. Titans future growth plans comprises of:1.1 Increasing market shares through geographical diversification.1.2 Improving sales through change in product mix.

2. In the domestic market it has plans to expand its portfolio of Licensed brands &Accessories.


12/12

Page | 12 of 12


REFERENCES:

1. http://www.icmrindia.org/casestudies/catalogue/Marketing/MKTG110.htm2. http://www.titan.co.in/business-divisions/time-products-division/titan3. http://www.fibre2fashion.com/news/company-news/titan-

industries/newsdetails.aspx?news_id=317484. http://yp.theemiratesnetwork.com/biz/United_Arab_Emirates/Sharjah/Titan_24997.ht

ml

5. http://www.allbusiness.com/glossaries/brand-switching/4966011-1.html6. http://www.blurtit.com/q617632.html7. http://rationalperspective.wordpress.com/ 8. http://changingminds.org/explanations/theories/halo_effect.htm 9. http://en.wikipedia.org/wiki/Perception 10.http://www.titanworld.com/titan_stories

cb part 2 titan group project report

Documents