titan watches (1)

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PILLAI COLLEGE OF SCIENCE AND

COMMERCE

NAME- Roshan Prabhakar

STD- SYbms

DIVB

TOPIC- TITAN WATCH

SUBJECT- Production of Management &

Material management

Roll No- 2659

SUBMITED TO- Mrs. Prerna


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CERTIFICATE

This is to certify that the work entered in this journal is the

work of Mr. Roshan Prabhakar, Sy BMS -B, havesuccessfully completed a project report on the topicTITAN

WATCHES terms of the year20132014 in the college as laiddown by the college.

Name of the professor: Mrs Prerna

Sign Signature: ____________________


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Sr.no Content Page no

1 xecutive summary 4

2 ntroduction 5

3 esearch and methodology 8

4 rimary and secondary data 10

5 istory and company profile 11

6 Conceptual framework 14

7 nalysis and interpretation 24

8 Conclusion 28

9 Suggestion 29

10 Questionnaire 30


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Titan watches


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EXECUTIVE SUMMARY

Today, a wristwatch is considered as much of a status symbol as a device to tell time. In an age when cell

phones and digital pagers display tiny quartz clocks, the mechanical wristwatch has lowly

become less of an object of function and more a piece of modern culture. 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. Titan was the first company to launch quartz watches in India.

The Indian watch market is today of 40 million units, out of which 60% is in the unorganized sector

in which the maximum number of watches are sold are below Rs.300. Quartz watches form two third

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.Watch is one of the consumer durables whose replacement rate is very high. 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 India market demographics report, 1998 So, due to

high scrap rate, outdated models, and the shift from the mechanical watches to

the quartz watches it is causing a very high replacement demand for watches. This along

with the low penetration level represents the untapped market potential for watches in India.

After liberalization of Indian economy in 1992 many international players have entered the Indian Watch

market posing as competitive threat to the Indian companies. Lately Titan has tried to reposition its Brand tocapture more segments of the watch market retaining the already served market segment. The

strategy has been studied in deep during the project. Many brands and companies are constantly

reinvigorating their businesses and positioning them for growth conclusion part of the report would

provide an insight of consumer awareness regarding brand repositioning strategies and their

effectiveness in revamping the brand, Titan.


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INTRODUCTION

Titan Industries is the organization that brought about a paradigm shift in the Indian watch

market when it introduced its futuristic quartz technology, complemented by internationalstyling. With India's two most recognized and loved brands Titan and Tanishq to its credit,

Titan Industries is the fifth largest integrated watch manufacturer in the world.

The success story began in 1984 with a joint venture between the Tata Group and the Tamil

Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an

international look, Titan Industries transformed the Indian watch market. After Sonata, a

value brand of functionally styled watches at affordable prices, Titan Industries reached out

to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold

135million watches world over and manufactures 13 million watches every year.

With a license for premium fashion watches of global brands, Titan Industries repeated its

pioneering act and brought international brands into Indian market. Tommy Hilfiger and

FCUK as well as the Swiss made watchXylys owe their presence in Indian market to Titan

Industries.

Entering the largely fragmented Indian jewellery market with no known brands in 1995,

Titan Industries launched Tanishq, Indias most trusted and fastest growing jewellery brand.

Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India.

Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment.

Titan Industries has also made its foray into eyewear, launching Fastrack eyewear and

sunglasses, as well as prescription eyewear. The organization has leveraged its manufacturing

competencies and branched into precision engineering products and machine building.

With over 826 retail stores across a carpet area of over 10, 08,083 sq. ft. Titan Industries has

Indias largest retail network. The company has over 331exclusive World of Titan'

showrooms and over 83 Fastrack stores. It also has a large network of over 700 after-sales-

service centres. Titan Industries is also the largest jewellery retailer in India with over 130

Tanishq boutiques and Zoya stores, over 31 Gold Plus stores. It also sports over 204 Titan

Eye+ stores. The company has two exclusive design studios for watches and jewellery

Backed by over 6,000 employees, two exclusive design studios for watches and

ewellery,9manufacturing units, and innumerable admirers world over, Titan Industries

continues to grow and sets new standards for


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innovation and quality

Product development marketing research serves several goals: new product design and

market validation research, or assessing existing products. The goal -- and your overall

positioning and market strategy -- drive our product research design.

According to Solomon, position strategy is an essential part in the marketing efforts be-cause companies have

to use the elements in the marketing mix to influence the customers un-

Distending of the position. During the movement from something less attractive and relevant towards a more

attractive and relevant position several of strategic choices has to be made. Thrones responsible for the

repositioning have to evaluate why a reposition is necessary, and if the offer is the one who will change or just

the brand name. There are several risk factors that have to be taken into consideration when preparation for a

repositioning of the offering or the brand. During repositioning, the risk of losing the credibility and reliability

is high and the need for all thorough strategy is therefore necessary to avoid this occurrence. Some analyst

argue that to successfully reposition a establish brand name is almost impossible because

repositioning of a brand can make the most loyal customer to switch brand. But, in some

circumstances a repositioning is necessary to gain credibility if the brand is eroded. Whenever a reposition

is in question it has to be of relevance from a customer perspective, is this achievable? Some brands will on no

account be thought on as a luxury brand and therefore an attempt to reposition will only damage the brand

image or the actual company.

Repositioning is built upon the change unique and differentiated associations with the brand in some kind ofdirection, it is about having a balance between the category party and differentiation when using reposition

strategies

(Leading brand strategist)From these definitions, it is obvious that reposition is about moving something to a

newer and hopefully to a more attractive and relevant position. The purpose of the movement differs with

regards to what the company wants to achieve. A company might want to reach out to a

larger target group, or be involved in several different positions at the market. There is also a

visible relation between price and quantity aspects. When a company perceives the market as a demand curve,

the purpose is to down stretch or up stretch in this curve. When moving down it is often spoken of as an

expansion down wards, and when moving up and there is a need for reaching the premium

segment and expand up wards. When striving towards a new position in the market, it isimportant to understand that consumers minds are limited. Peoples minds select what to remember and
http://www.google.co.in/imgres?start=265&um=1&hl=en&biw=1366&bih=643&tbm=isch&tbnid=sEn352RuqWqLqM:&imgrefurl=http://dealswebtoday.blogspot.com/2011/12/best-medical-symbols-watch-nursemates.html&docid=y0ewfvV0uQA2TM&imgurl=http://ecx.images-amazon.com/images/I/41+RSTdVznL.jpg&w=347&h=500&ei=nV8vUMKwA8LXrQeLtIHoCw&zoom=1&iact=hc&vpx=1136&vpy=74&dur=2992&hovh=270&hovw=187&tx=149&ty=164&sig=118268930042568299497&page=11&tbnh=137&tbnw=96&ndsp=30&ved=1t:429,r:21,s:265,i:335http://www.google.co.in/imgres?start=128&um=1&hl=en&biw=1366&bih=643&tbm=isch&tbnid=M3CjVcqnVioNqM:&imgrefurl=http://www.shoppeboard.com/apps/blog/show/8408688&docid=gteaaVRcFeBYAM&imgurl=http://www.pricereview.co.in/uploads/slides/300/113.jpg&w=300&h=441&ei=cl8vUIHbMofxrQeFyYGYCw&zoom=1&iact=hc&vpx=668&vpy=42&dur=512&hovh=272&hovw=185&tx=116&ty=155&sig=118268930042568299497&page=6&tbnh=140&tbnw=95&ndsp=27&ved=1t:429,r:17,s:128,i:228http://www.google.co.in/imgres?start=265&um=1&hl=en&biw=1366&bih=643&tbm=isch&tbnid=sEn352RuqWqLqM:&imgrefurl=http://dealswebtoday.blogspot.com/2011/12/best-medical-symbols-watch-nursemates.html&docid=y0ewfvV0uQA2TM&imgurl=http://ecx.images-amazon.com/images/I/41+RSTdVznL.jpg&w=347&h=500&ei=nV8vUMKwA8LXrQeLtIHoCw&zoom=1&iact=hc&vpx=1136&vpy=74&dur=2992&hovh=270&hovw=187&tx=149&ty=164&sig=118268930042568299497&page=11&tbnh=137&tbnw=96&ndsp=30&ved=1t:429,r:21,s:265,i:335http://www.google.co.in/imgres?start=128&um=1&hl=en&biw=1366&bih=643&tbm=isch&tbnid=M3CjVcqnVioNqM:&imgrefurl=http://www.shoppeboard.com/apps/blog/show/8408688&docid=gteaaVRcFeBYAM&imgurl=http://www.pricereview.co.in/uploads/slides/300/113.jpg&w=300&h=441&ei=cl8vUIHbMofxrQeFyYGYCw&zoom=1&iact=hc&vpx=668&vpy=42&dur=512&hovh=272&hovw=185&tx=116&ty=155&sig=118268930042568299497&page=6&tbnh=140&tbnw=95&ndsp=27&ved=1t:429,r:17,s:128,i:228


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it is therefore significant to convince the consumers with great arguments. The market demand changes

rapidly and

Therefore reposition can be necessary to meet these demands, newer and stronger arguments

have to be established to convince them to stay as loyal customers. As stated in the literature, repositioning is a

very complicated matter and therefore there are no detailed theories or models. The aim with repositioning

differ from person to person, and the only connection between all the different theories is that repositioning is

moving something from somewhere towards a greater position at the market. The strategic importance of

brand repositioning in preserving and enhancing brand equity, coupled with the mixed results of repositioning

attempts, underscores the need to develop a better understanding of the dynamics of brand

repositioning. Specifically, questions of whether, when and how brands should be repositioned

need to be addressed. Research into brand repositioning is relevant not only to the development of brand

management theory, but also extends to corporate strategy through an examination of

corporate brands.


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RESEARCH METHODOLOGY

OBJECTIVES

To Gain knowledge about the product and services offered by titan To analyze the marketing strategies of titan watches. To improve its brand perception and loyalty among customers. To understand its branding strategy and know the positioning from different types of

titan watches.

To figure out consumer preference regarding what type of titan watches they wouldprefer.

This study would help Titan company build up the gap between the customer views and

preference and help them improve their marketing strategy.

LIMITATION

The study is made in Navi Mumbai (panvel) area only.

There may be sampling area in the study. The responses of the consumer may not be genuine. The question included in the questionnaire may not be comprehensive. The relevant data was collected from both primary and secondary sources .the

primary data was collected in the form of questionnaire and the secondary data was

collected from internet books etc.

SAMPLING PROCEDURE

A sample of 30 consumer who are brand loyal to titan watches since 2 to 3 years in the age

group of 10 to 25 years have been considered in this study this study shows that people are

still loyal to the brand but due to new other brands the is a fall as compared with the years in

the past.

SWOT ANALYSIS OF THE UK WATCH INDUSTRY:

Strengths:

Watch industry is growing industry which faster rate

As the population is rising, the watch market is also expanding

Customers are not very price sensitive as far as quality watch is concerned

Weakness:

There is not much advertising done by watch industry

No innovation in products


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There are few number of exclusive showrooms that reduces the consumers accessibility to

the product

There are few marketers, who are concentrated only upon a particular niche segment (Tag

Heuer)

Opportunities:

There is more need of fashionable luxury watch and fine luxury watch brands that can be

targeted in UK, as customers are more like trendsetter and fashionable.

UK especially London is a metropolitan city which makes it more attractive for the new

company.

Youth are more brand conscious than their predecessors. That leads to the expansion of the

market for branded watches.

Threats:

There are many foreign players entering in the race

Too many players will dilute the market and the profit margin.

Mobile phones acting as substitutes of the watches.

The Indian watch industry began in the year 1961 with the commissioning of the watch

division of Titan. 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 removal of quantitative

restrictions due to WTO has opened the doors for many the Indian market viz. Tissot,

Swatch, Omega, Rado, Gatherer. The import duties on watches are falling which makes the

Indian market look attractive for the global majors like Casio, Swatch and Citizen

PRIMARY AND SECONDARY DATA

Primary data:

Data was collected through an interview schedule, consisting of both open ended and

closed ended questions. It consisted of the parameters like reasons consumers brand

preference, recollection of earlier tagline and advertisement, brand ambassador of

Titan awareness of new tagline and campaign featuring sportsmen and actors from

International body and so on. The data was collected through e-mails, telephone

contacts and one to one personal interview.

Secondary data:

1) To study and analyze various factors influence the consumers

2) To purchase the fastrack watches.


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HISTORY AND COMPANY PROFILE

History

Titan Watch division was started in 1987. At launch it was the third watch company in Indiaafter HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until 1998,

and set up a distribution network across India. As of 2010, Titan watches account for a 60%

share of the total Indian market and are also sold in about 40 countries through marketing

subsidiaries based in London, Aden, Dubai and Singapore. In October 2012, Titan partnered

up with Zee Watch Group, becoming the sole distributors of Titan watches in the Americas.

Titan watches are sold in India through retail chains controlled by Titan Industries.

Titan Industries has claimed to have manufactured the world's slimmest wrist watch branded

as Titan Edge. Produced indigenously after four years of research and development, the Titan

Edge has a total thickness of 3.5 mm and a movement of 1.15 mm. Apart from the Titan

Edge, Titan also offers Steel, Regalia, Raga, Fastrack, Technology, Nebula, Bandhan, Sonata,and Octane, special. Fastrack is a popular brand among youth in India. Fastrack watches

come in a variety of styles, shapes and colors. On 4 March 2010, Titan Industries announced

the launch of its first Titan flagship store, located at Opposite Shoppers Stop, Bandra Linking

Road, Mumbai, India. The store is spread over 2,500 sq ft (230 m2) and houses more than

1500 watches on display from Titan like Purple, Automatics, Orion, Raga, Edge, Nebula, and

many more.

On November 16, 2011, Titan Industries acquired Swiss watch maker Favre-Leuba for Euro

2 million.

In July 2011, Titan launched the HTSE (High Tech Self Energized) collection of watcheswhich run on light. According to Titan, these watches can be charged with as low as 200 lux

of light, which makes them chargeable with light even from a candle. In its press release, the

company said that "HTSE draws its design inspiration from the most complex self-energizing

bodies built by mankindspace stations, satellites and spaceships. Targeted at the tech-

savvy, young urban male, this ultra-modern assortment is truly an epitome of style and

technology." These watches are at current available at select outlets in select cities throughout

the world.

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 assoc with Tamil Nadu IndustrialDevelopment Corporation in the year 1987. They took 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 look attractive for the

global majors like Casio, Swatch and Citizen.


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Company Profile:

Overview

Titan is one of the largest watch producer in India and sixth largest in the world. Titan

manufactures over 7 million watches per annum and has 65 million customers.

In 1984 titan was established as a joint venture between the Tata Group and Tamil Nadu

Industrial Development Corporation. Manufacturing in a state- ofthe art at Hosur, Tamil

Nadu the company brought the large change in Indian market, by offering quartz technology

with international styling. By understanding the different segments in the market, the

company launched its second brand Sonata watch, as value brand for those who like styled

watches with affordable prices.

In last two decade the company has build an very good impression in watch business to

become Indias largest manufacturer and world largest sixth manufacturer of watches. This

was mainly because good formidable distribution network. Being one of largest retail chainof exclusive retail showroom for watches called The world of Titan spread over 100 towns.

Titan have branches over 30 countries, its also have multi brand outlets named Time Zone,

service centers and dealer outlets. The company has watch plant at Dehradun (UP) and Baddi

(Himachal Pradesh) and electronic circuit boards in Goa. The promoters held majority stake

of the company, with Tesco having 28% of the shares and Tata Group companies owing 25%

of the shares and the public sharing holding around 28% in the company. The rest of the stake

held by the foreign institution, nonresident Indian, mutual fund and other institution.

It also 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 capitalizes to brand Tanishq as diversified into jewellery in fragmented

market operating no brand in urban city.

Also in 2005 the company launched its second Jewellery brand, Gold Plus, as using its

opportunity for capitalizing in small town and rural India. Its also diversified into fashion

Eyewear by launching Fastrack Eye Gear sunglasses as well as prescription eyewear.


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CONCEPTUAL FRAMEWORK

Titan-Marketing strategies

Internationally, Timex is seen as a mid-priced quality watchmaker. Its

associa t ion wi th T i tan in Ind ia led to wrong segment target ing . Here , themid d le an d h ig h er in co me g ro u p s were b u y in g i t s wa tch es . In 1 9 9 8 , th i s

association came to an end erasing Titan's presence in the lower segment. Since

then, it has launched the Sonata range of watches that is in direct competition with the Timex

range.

Early 2001, when Indian consumers rated Titan ahead of all other brands as the Most

Admired Brand in India across all product categories (the first ever such survey

done b y B r a n d E q u i t y ) , i t d i d n o t s u r p r i s e p e o p l e t h a t a 1 3 y e a r -

o l d h a d m a n a g e d t o upstage many older and more well-known brands: it was

expected of Titan to achieve such things, it was so nature

It was also a fitting tribute to a brand, which had not only revolutionised theIndian watch industry, but also brought in world-class benchmarks in product design, quality

and retailing into India. Back in the early eighties, the Tata Group had

id ent if i ed the wat ch cat egor y a s a potential consumer market for the Tatas

to enter. Xerxes Desai, a Tata veteran and the then MD of Tata Press, was chosen to

lead that venture .In those days of pre-liberalisation the watch market, like most

consumer markets in I n d i a , w a s w a y b e h i n d t h e r e s t o f t h e w o r l d .

T h e t e c h n o l o g y i n v o g u e w a s t h e r e l i a b l e , b u t o u t d a t e d

"Mechan ical" technology , which used the unwind ing o f a mechan ical

spring to tell time. Not only was the accuracy of time-keeping not good enough,

b u t t h e bu l k y me c ha n i ca l m ov em e nt d id n o t p e rmi t t h e c r ea t i on o f s l e e k

p r od u c t s . T h e in dus t r y wa s d o mi n at ed b y t h e p ub l i c s ec t o r wh i ch ha db r ou gh t i n watch manufacturing into India, enjoyed tremendous goodwill in the market,

but had not rea lly invest ed in evolving itse lf and its consumers : styl in g sti ll

remained basic, choice was limited. The watch shops were narrow, dingy and

typically located in the older, traditional markets of the city. You went there

only to buy a watch, never to browse, never to simply check out. Visual

merchandising was very much at the stage of "decoration" if a n y ,

T h ey d id n o t h av e mu ch co n tac t w i th r e t a i l e r s , p re fe r r in g to se l l

t h ro u gh wholesalers, doing well that way. There was hardly any need for consumer contact

or research. It was a sellers' market. All this affected the consumers. Watches

remained a time-keeping device, so one watch was enough, thank you. Since the

quality of the watch was quite good, it last equate a while, and the consumers did notchange it for 10, 15, 20 years. And when they did change it, they did not pay a high

price for the new piece because, what the hell, they were buying another time-keeping device.

Xerxes

Desai's vision was to dramatically alter this perception of consumers, and make

Titan a fashion accessory. He knew that tha t was the only way th at this new brand

would explode the market and wrest control from the dominant HMT. So he and his team

went about breaking all the rules in the category:

Mechanical technology was the norm

Styling was basic

- This was a constraint imposed by the technology as well the outlook of the

manufacturers. Titan decided to make style a table-stake.Choice was limited


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- You had 200 models to pick from, that was it. Titan decided to inundate

consumers with a wide choice in style, functions and price. The initial range was

350 models.

Shops were dark, dingy and uninteresting

- There was no importance given to presentation, and therefore no attempt made

at it. Titan brought in the concept of retailing into th e watch mark e t ,e s t ab l i sh ed a n e two rk o f f in e sh o wro o ms wh ich wo u ld l a t e r b eco me th e

wo r ld ' s l a rg es t n e two rk o f ex c lu s iv e wa tch s to res . T h ese s to res n o t

o n ly h e lp ed T i t an to g a in l ead er sh ip su b s tan t i a l ly , b u t a l so i r r ev o cab ly

altered the retail landscape of the watch market through demonstration effect

onthe traditional dealers.

Advertising was expenditure

- Titan saw this as a vital investment. Right from Day1, 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, back ed by the Ta ta name, was launch ed into the

Indian market on the b a c k o f t h e s e n e w r u l e s . I t c r e a t e d w a v e s r i g h ti n t h e e a r l y d a y s , m e s m e r i s e d 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 organised sector market (the total market, including the

unorganised sector, is estimated at around 42million units).

Present situation of titan watch in India

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. Quart watchesform 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 these

mall 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 w rist watches is 7.8%,

wh ich i s ap p l i cab le a f t e r 6 y ea r s

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 along with the low penetration levels represents the

untapped market potential for watches in India.

Major brands in the Indian watch market

The major players in the Indian watch market include HMT, Titan and Timex. The other players include

Westar, Shivaki, Maxima, and SITCO. Foreign brands such as Cartier, Piaget,Omega, Tiffanys

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 gainedsubstantial market share.


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Product:

Quality and leadership are the two main terms for the Titan. As to achieve the marketing objectives this aspects

should also be considered.

A. Product line:

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

Portfolio of Titans product is of 3 distinct price-range that can be de-fined in general, as Popular, Mid, and

Premium. At the popular segment, the emphasis is on in volumes but not in margins. At the premium

segment, the emphasis is on profits and image but not in volumes. Obviously, company giving more emphasis

at the top of the pyramid as profits at the top of the pyramid is very high. This pyramid guided the strategy of

Titan.

C. Product strategy:

Titan was first focused only on the premium segment of the watch market. As per the product

strategy they took, Titan moved in to the mass market for watches. To widen base, Titan created

new segments and increasingly focusing on segments individually. In the past few years Titan has took a lot of

initiatives to focus on specific segments.D. Product Quality:

Quality and leadership are synonymous to Titan. It seeks to achieve both through their value for products

compared to their prices.

Promotion: Promotional pricing:

Marketing pricing:

As by opening new shops such as the world of Titanbuy directly from the dealer and hence the

element of middleman is not there. Here the retailer in this category buys watches for 17-18% lesser than MRP

and hence they are able to get the 17% profit margin on sales. It is managing to successfully convince

to the customer of the perceived value of WORLDWATCH using hoarding all around the city,

increasing buyer image, trust worthiness, innovation, differentiation, value for the product.

Price discount and allowances:

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

segment to another.

Creative advertising: Titan introduces a contest on cartoon network in india.com which invites

children to use creativity and design watch. The prize winning design was launched as a new watch in summer

2002 collection.

Type of advertising:

Titan believes in making its ads clean, well made, touch on emotional chord. As the company is using

celebrities or superstars that is Amir Khan for the Titan watches. As here we can say that a femaleactress would be more effective for the promotional purpose. It can be Katrina Kaif, as now she is

one of the popular actresses in Bollywood.

Promotion on occasion:

Titan is one of the companies which formally believe in the policy of promotion the product based

on the occasions.

Place:

Keeping in mind about the young trendy and fashionable consumers, Titan distributes its

product and set up world of titan in different region. The consumers life style in India,

especially in urban area (because the turnover in urban area is 210 million, while the turnover in rural area is

90 million) plays a significant role in the success of Titan.A. Time Zone:


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Titan Industries brings together the countrys leading watch brands under one roof, providing the

customer with variety in brands, looks and price ranges and also efficient

After sales service. These 1142 Time Zones located across 89 towns which offer its customer

the complete watch shopping experience.

B. Value Mart:

These outlets sell surplus stocks of Titan watches at reduced prices. By doing these it offeringfabulous value for money with the same warranty as a regular full-priced watch

enjoy. However these shops would not be placed in the main locations and not working as a normal shops.

This is to make the customer go to the shop rather than the shop calling the customer and hence the locations

are not very suitable for shopping.

C. Sonata Stores:

Sonata stores are also an Authorized Service Centre for Sonata & Titan brands. Sonata store

meet the large scale demand for the watch and also to attract customers in more. These shops

had full stocks of the watch in demand whereas the others could afford to maintain only limited

stock

Mens segment:With Titan positioning its range of watches as a life-style, the Indian market started viewing

watch more as a complement to dress than just a time showing machine. They are also realising that,

unlike other forms of art that are meant to be admired, high-end jewellery

watches have that added bonus: practical luxury with a function other than beauty. Watches

have joined the list of tie, deodorant and shoes to represent the occasion and flaunt your status.

-

Dress Wear

Titan has three brands positioned for this segment: Nebula, Regalia and Insignia.

Nebula:

Marketed as the Jewellery collection from Titan, Nebula is targeted towards affluent men

who consider wearing gold jewellery a symbol of status. Magical blend of most coveted of

metals, Gold and craftsmanship; Nebula is more of a connoisseur watch with the lowest price

model at Rs.5500. It is marketed as a watch for discerning individual positioned as a gold

jewel.

Regalia:

Incredibly eye-catching. magicin gold.

[39]

The watch uses the unique combination of gold and bicolour looks representing the essence of dress-wear.

In India, gold-look is associated with status but at the same time, the silver-look is the fashion

of the day in international watches. With the combination of both, this watch is targeted towardsaffluent businessmen. The elegant looks and colours make it a strong competitor to the foreign brands like the

Tissot, Piaget and Rado. This is also marketed as a watch for gift Special Watch for special occasion,

positioning this as a costly gift.

Insignia:

The World Watch fromTitan.Thewatch with fascinating designs and precision engineering was targeted towards

the European markets. The complexity of this watch is 10 times more than a regular titan

watch. Though it didnt meet with much of a success in Europe, thi s tag line and keyword

International are used to position this watch as a world-class watch for international

traveller with European tastes.

-


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Classic WatchesWatches that are for every-day use and those with less frills and more value are classified as

Classic watches. These watches are normally targeted towards middle and upper

middle-income class consumers.

Classique:

Power dressing now has a new weapon!Timeless elegance captured on the wrist.Cacique' is marketedas a fusion of function and sophistication. Cacique with its looks fits the formal corporate

image and is positioned as a watch for corporate employees. This also reinforces the

importance of watch along with the dress worn. These watches are generic in their simplicity and

find no real competitors except HMT.

Royale:

Collection of designs that suit everyday wear.Royale with its gold plated case and golden straps

represents a formal every day watch targeted towards the employees who cant afford

multiple watches for occasions. The watch

Includes designs from simple to dressy eveningwear switching between informal and formal

looks based on the place and situation.

Spectra:Designed for those who look beyond the ordinary. This brand from Titan extends over wide range

of prices from 900-7000. It is a classic premium watch with style, which boasts of combining

the sturdiness of steel with richness of gold. The positioning of the watch is not very clear as

it is targeted towards the salary earners with its lower price point models and appealing

models for the corporate executives at the higher end.

-

Sports WatchesIn the Indian scenario the sport awareness is not quite there. And the market is not mature

enough that consumers buy special watches for sporting except in the super-premium and segments above

that. A sports watch in the mind of an average Indian is a polyamide watch with stopwatch

and trendy look. So there is no clear distinction between sports watches and casual watches.

But in the available market Timex, Casio, and Titan are major players and after the lifting of

QR restrictions, world famous Tag- Heur has also entered India but in the Connoisseur segment

of sports watches.

PSI2000:

Titan has introduced a range of contemporary Precision Sports watches. The brand is

marketed as tough, outdoor, adventure brand. (Psycho graphically segmented) Ranging

from800 to 7500, these watches are in direct competition with foreign brands like Swatch Irony.

-

Casual Wear

: The segment of watches that has a variety of brands and models to appeal to the youth andmentally young people is casual wear. The watches in this segment are mainly

sporty watches, which are unconventional and typically symbolize the attitudes of younger generation.

Titan Fast Track

Cool watches from Titan.

[41]

The target audience for this watch, in the 20-35 age groups include working adults and

postgraduate students of both sexes in metros and mini metros. The Fast Track user, in terms

of attitude is one who wears an informal dress, wears branded jeans, shirts, sunglasses and

branded informal shoes. The Fast Track personality is that of a young, energetic, achievement

oriented person, who seeks to express his or her individuality by braking free from constraints of formal

environment, without being a rebel. Built around the Cool concept, this watch from Titan hasvirtually very few competitors because no one offers the feature combination and price but


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Casio (in digital range) and Spirit and Swatch (in the analogy range) can be considered as

competitors feature-wise.

-

Technology Watches

Wrist Watches have changed a lot from the inception- a time showing convenience ma-chine to a status

symbol. But the underlying concept remained unchanged, convenience. Stretchingthis concept a bit with the development of technology are the technology watches available in

the market. Watch for time, status has in the new technology era is looked for convenience of carrying

data. In to the competitive market with people willing to pay a premium for that advantage, a

good number of brands have ventured.

Technology (2350-8200):

Multi-functional watches for the Tech-savvy. This brand is marketed as mergers of classic elegance and

technological mastery giving rise to multi-functional chronographs using the solar power. This

brand is positioned to compete against the Citizens EcoDrive.

Womens segment

-Dress Wear

Titan has chiefly three brands in this category.

Nebula (6000-65000)-

The JewellersCollectionNebula is a precious jewellery watch from Titan. It is marketed as a

magical blend of most coveted of metals and engineering excellence. The Nebula range of watches is

positioned as objects of ornamentation. A 21 carat gold watch, studded with gems it is targeted

at the upper most end of the market in competition with brands such as Rolex and Cartier.

Regalia

Regalia range is positioned as Essence of dress wear. It is marketed as Incredibly eye

catchingmagic in gold. With the unique combination of gold and bicolour looks and sleek

case, Regalia is targeted towards middle-aged women who consider watch to be a status

symbol and also representing their delicacy. It is available in many price points

betweenRs.1800 onwards.

Raga and the Silver Raga

Raga and the Silver Raga collection are positioned as Ethnic Indian styling for the so-phisticated woman.

Each piece is truly unique and represents elegance, delicacy and Femi-nine. The designs and

the bracelets represent traditional Indian ornaments as well as contemn- porarystyle.Both the

watches are exclusively designed to appeal to women more as an ornamental possession than

a watch. The Silver Raga has been crafted exclusively for the sophisticated woman who believes

in value-for-money and who wears silver jewellery with lan. At the beginning, when the brands were

launched, they were positioned as Watches for all dresses with changeable dials matching the sari colour.But the proposition was viewed withskepticism and hence didnt meet with much success. Keeping

in mind Indian womens love for jewellery, both these brands are repositioned as a

perfec t accessor y that complet es womans wardrobe.

-

Casual WearThe woman's collection presents the all-new international 'Frosted' look, which

is trendy and chic. The ad line : Fastrack- Cool watches from Titan, aims at building the

brandaround the cool concept.Fastrack is targeted at a personality that is young, energetic, achievement-

oriented, whoseeks to express her individuality by breaking free from constraints imposed by formal

environments, without being a rebel. The positioning of Fastrack for men and women is

almost the same.


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Childrens SegmentTitan has a brand called Dash! For kids. These are bright, colourful watches targeted at

children aged 6-14 years. These watches are priced Rs.250 onwards to Rs.495 and are marketed under the

ad line: Wow! Watches from Titan. The three main collections from Dash include the

Popeye Collection, which feature cartoon character Popeye, and his friends. There is also a

Digital Range, which has features like alight, compass, Velco straps. So Titan is positioning Dash watches asFun watches for kids. Its features such as comic characters also appeal to the frivolous nature of the

children. Dash also has a special collection for girls, with changeable bezel rings, priced at Rs.295.

Need Analysis: Consumers need

The demand and the need vary one market segment to another segment on the basis of prices &quality. The

current need can be satisfied by the following ways in the different segment.

High class:Titan offered Aurums and Royale in gold watch range .They were stylish watches in all gold and

precious metals. The price is between Rs.20, 000 -1, 00,000.

Middle income class:Titan offered the Exacta range in stainless steel. There were 100 different models in the

range. The prices ranges are between Rs.500-700.

Lower-income group:Titan offered the Timex watches and later, when the arrangement with Timex was terminated, the SONATA

range. The prices ranges were Rs.350-500.There was 200 different models in the ranges.

Current Marketing Objectives and Performance: Review of Marketing Objectives

Current marketing objectives of TATA are to strengthen Indias Industrial base through the proper utilization

of resources like employee and materials. Besides, the company seeks to reach the height of excellence

atmosphere which is free from fear and threat.

Performance Analysis

Titan Industries achieved significant growth during the year ended 2007-08. Watch segment

sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the company have performed

welland new introductions in gents watches

Market share of the Competitor in Domestic

The strongest selling point of Titan is that it is available and affordable. Titan provides watches for all

segments, like from low-cost Sonata for first time user, Fast-track for the trendy young, Dash for the

kids, and the higher priced Regalia and Nebula to the premium segment customer. The Indian watchmarket is estimated at 25 million watches a year, where the domestic sale is 6 million watches per

annum. The rural segment is the diverse market in the present scenario. The key success story of Titan

is capturing the rural market on a large scale. The range cost is between Rs. 495 to Rs. 1200. And the

model is available exclusively in all showroom sand is sold mainly in small-town in India. Though,

The Company faced enormous challenges from its big list of competitor, the company still in the

number one position in domestic market because of the weakness of the competitor. The company

becomes more reliable and more acceptances to the consumer be-cause of its marketing mix. The

company has adopted the new marketing innovation to improve the feature of the productby time to

time. Though the current financial environment is not in favour, but the company performing

well and saw an increasing trend in the profit chart. The company t rying hard to convertits weakness into s trengths and threats into strengths and threats into opportunities by


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bring revolution in the product style, model, features, pricing policy, product quality, etc.

Companies certain initiatives and policy such as new innovative design, guarantee, the

research and development, wide dealer network, committed service team, discount and offers

make the company. To find out the brand preference for watches

Among all these competitors, Maxima-quartz and HMT are major players .The strength and

weakness of the companies varies from segment to segment

Industrys Role

As there have many competitor exists in this Industry, the competition is too much.

Whenever any company bring changes in its marketing mix, all the companies also

implement changes in their marketing mix to sustain in the competition. By that the structure

of whole industry is changing and affects the competitive forces in the Industry.

New Collections and Designs Sonatas sub-brands

Sonata has launched the Yuva 2008 collection, a series of colour ful watches. They

are available in both casual and formal st yles to complement the young, new

look for college or office wear. The collection has watches for both men and

women at price s starting at Rs 645.They are available in both gold and steel looks, withboth metal and leather straps. Sonata, the watch brand from the Tatas, launched the

Super Fibre, targeted at the sub-Rs500 market in urban, semi-urban and rural India. The

watches have been designed primarily for youth in the 16-30 age groups, and will be

available in a price range of Rs 275 to Rs550. The tag line for this sub-brand is

Super Strong, Super Style.

The company announced 360-degree marketing campaign for the new offerings.

It also unveiled its TV c ommercial featuring Indian ODI captain Mahindra Singh

Dhoni, in a brandnew avatar.


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ANALYSIS & INTERPRETATION

Analysis of Data

The Respondents and the Choice of Districts

Data were collected from the Kottayam district of Kerala State. The researcher interviewed

250 respondents in the district.

Age of the Respondents

The majority of the respondents fall in the age group of 15-22, 45% of the respondents

belongs to this category. 39% of the respondents come under the age group of

23-30. 6% each belong to the age groups 31-35 and above 45. 4% of the respondents are inthe age group 36-45. Table 1 gives a clear picture of the age group distribution of the total

respondents.

Age of the Respondents


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Number of RespondentsAmong the 250 respondents, 160 (64%) are males and the others are females.

Among the total respondents 53 (21%) are married and 197 (79%) are single

Education of the RespondentsEducation level of the persons can influence their thinking pattern and thereby the selection

of the product. The criteria of an educated person will be different from that of an uneducated

person in selecting a watch.In the sample 50% of the respondents are graduates and 35% are post graduates.

8% have Plus Two education and 7% have below Class 12 education.


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Monthly Family Income of the RespondentsOne of the most important factors that influence the buying behavior of the individuals is the

family income. To a great extent they make their selection according to the income they have.

29% of the respondents are under the monthly income group of 4001-6000.

22% belong to the income group 6001-10000. 18% of the respondents come under theincome group above 15000. 16% are having a monthly income 2001-4000. 10% of the

respondents are in the income range below 2000. 5% of the respondents fall under the income

group 10001-15000. The details regarding the number of respondents in each income group

are available from Table 3 and the pie chart.

Number of watches owned by the RespondentsUsually people in our society own one or two watches at a time. It is noted that among the

respondents 52% have only one watch and another 27% have two watches.

15% of the respondents own 3 watches. 4% have four watches. 1% each have five watches

and more than five watches. From this it can be concluded that like other ornaments watches

are not used for luxury purposes but for necessity. When we say this also another significant

fact is that the design and quality influence the customers in choosing the watches. Table 4

gives the clear picture about the number of watches that the respondents own

Currently using Brand of Watches

Most of the respondents (33%) use Titan watches. The brands that come next are HMT (19%)and Sonata (18%). Other important brands of watches that the respondents use are Citizen

(8%), Timex (8%), Classic (6%), Rado (4%) and Casio (4%). Table 6 provides a clear picture

of the brands of watches currently being used by the respondents

Factors influencing PurchaseAnother important area to be considered is the factors influencing the interest or concern of

the customers in buying the product. There are some common factors that

Influence the customers in their selection of an item. Some of those concerns are design,

price, durability (life period) etc. Among the respondents 37% are bothered about the design

of the product. They are not bothered about the price, durability etc of the product but the

design of the watch. 26% take into account price of the watch before they buy it whereas 17%

of them are concerned about the brand name. 13% of the respondents give priority todurability while 7% consider after-sales service as more important.


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0

5

10

15

20

25

30

35

40

attractive desgin brand image good quality reasonable price

Series 3

Series 2

Series 1


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SUGGESTION

Titan has a good brand image but still the is a need for more innovation of their product.

Need for new trendy designs

Focus on their product for youngsters and also make a growth in the sales of the working

men and women

Take steps to change consumer perception that titan watches are high priced.

Provide proper information about the product.

Improve the sale and after sale service.

Work on their brand image.

Also provide a lot of variety and increase their productivity

CONCLUSION

Introduce exclusive collection for working women which is more contemporary and

complements both traditional and western wear.

Majority of the population in India live in rural areas. So, showrooms should be set up at

places nearer to them.

Introduce cheaper and rough use watches for this segment.

After sales service has to be improved. That is, the process of servicing and repairing of watches should be

made faster. This can be done by ensuring the spare parts availability and training all sales personnel in Titan

showrooms to undertake these tasks.

Tie up with international watch brands and make them available locally.

Make use of internet to spread awareness among consumers about the brand.

Invest more in R&D as customer expectations are changing rapidly. Though Titan has got

more product collections, it should focus on introducing more varieties in already existing

product collections. In other words, having a limited but more depth in product collections would be more

advantageous

To increase its visibility, Titan Company can sponsor events similar to fashion shows in which all latest

designs launched are displayed. This would have multiplier effect as a thelatest design launched by the

company gets noticed by different segments of the customers in varied ways.


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QUESTIONNAIR

1] Name :

2] Age :

3] Telephone No:

4] Address :

5] Do you like watches : yes No?

6] How many watches do you have? : One Two More

7] When did you get the first watch? : 8thstd10th STD Others

8] Was it a gift? : Yes No

9] Do you use branded watches : Yes No

10] Which brand do you like? : Titan Timax Others

11] What brand are you wearing? : Titan Timax Others

12] Would you recommend this brand: Yes No

to others?

13] Do you like digital or analog? : Digital Analog

14] What features do you prefer? : Formal Sporty

15] Write one sentence about TITAN :

Watch

titan watches (1)

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