LITERATURE REVIEW:

The repositioning strategy is rolled out in three stages: introductory, elaboration and

fortification stages. This involves the introduction of a new or a repositioned brand, seeking to

underline the brand’s value over others, and to broaden the brand proposition. It is truly tough

to change the customer’s perceived attitude towards a brand, and therefore the risk is great that

the attempt to repositioning might be unsuccessful.

After rolling out the strategy, it is time to modify the proposition through update of the

personality and through repositioning. There are benefits and risks with both of this segments

and it is of great significance that they are truly evaluated when deciding the next step in the

process.

Figure 1: Stages in brand strategy development

The implication with the term” repositioning” is that a company modifies something that is

already present in the market and in the consumer’s mind. The definition of repositioning

changes different individuals and professions.

Establishing the

Brand Proposition

Selecting Appropriate Marketing Mix

Rolling Out the Strategy

-Introductory Stage

-Elaboration Stage

-Fortification Stage

Modifying the Proposition

-Repositioning

-Updating the Personality

To view the different definitions and perceive a greater understanding about this concept,

three examples of repositioning given by individuals in different professions is stated below:

“Repositioning is a change, principally about trigging the vision, mission and value in a new

direction that is more suited for the brand in the future”.

-Brand manager consultant

“Principally, reposition concerns change the consumer’s perception of the brand”

-PR- consultant

“Repositioning is built upon the change unique and differentiated associations with the brand

in some kind of direction, 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.

Objectives:

1. To review the brand positioning strategies of different sub-brands of Titan watches.

2. To analyze the brand repositioning strategies of Titan watches.

3. To study consumer awareness and perception about the brand repositioning

Strategies of Titan watches.

4. To recommend suitable measures to be taken by the Titan Company to further

Improve its brand perception and loyalty among its customers.

This study would help titan industry to understand the gaps in its communication

strategy regarding brand repositioning exercises and the further measures to be taken for

effective marketing communications.

Limitations:

The study is confined to Navi Mumbai area only

There is possibility of sampling errors in the study

The responses of the consumers may not be genuine

The questions included in the questionnaire may not be comprehensive.

Sources of Data collection

The relevant data was collected from both primary sources and secondary sources.

The starting point of my information gathering has been the secondary sources such as

internet, books, and journals and so on.

First, I made a study of the brand positioning and repositioning strategies of Titan

watches through secondary sources such as internet, insurance magazines, and journals

and so on. Then I conducted a consumer awareness survey on brand repositioning

strategies undertaken by Titan watches in recent times.

Sampling Procedure:

A sample of 50 consumers who are brand loyal to Titan watches since more than a

year and in the age group of 20 – 30 years have been considered for this study. As Titan has

taken up brand repositioning strategies since July 2008, consumers who have seen the

previous and new campaign have been targeted

Primary Data Collection :

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

and closed ended questions. The schedule covered parameters like reasons for consumers’

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

Titan; awareness of new tagline and campaign featuring Aamir Khan, new designs and so on.

The data was collected through e- mails, telephone contacts and one-to-one personal

interviews.

INTRODUCTION

India is an under penetrated market for watches. Only 27% of Indians own a watch. Total

estimated volume as per 2008 is 44 million units and value of

Rs.2700crores. Vast proportion of Indian market is below Rs 500 by about 68%. The market

Share of Indian Watch Industry 2009 Market has been split into:

Low end

Mass market

Premium and Luxury Brands

50 million wristwatches are sold in India every year. Notwithstanding the presence of global

players and the opening up of the market, the Indian market has always been dominated by a

single player. In the past, till the late 80’s, in the mechanical era, HMT dominated the market.

And after that it has again been the domination of a single company, Titan. Today Titan has

almost 65% market share of the organized watch market in the country. The organized watch

market itself is estimated at 35% of the total industry size. In value terms, the size of the

organized market is estimated at around Rs. 1500 crores, which means that the average price

of watches sold even today is less than Rs.1000.

Watches are typically segmented into specialist watches and fashion watches. All

International watch brands have a clear position as to where they belong. In India most sales

are in the fashion segment and this fine distinction has not yet been used by marketers. Male

watch buyers far outnumber females and account for around 65% of sales. Students are the

largest segment of buyers accounting for approximately 30% of the sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of scope to

grow both in value and volume. The jury is still out though whether the Indian companies

like Titan will lead this growth or the global majors like Seiko, Citizen Etc. After all the

domestic players have hitherto grown because of a retail strategy and the wining global

players are clearly focused on product.

WATCH MARKET MAP

The watch market can be broadly sub divided into formal, classic, fashionable and sporty

kind. The preference of the ‘watch kind’ depends on an array of factors ranging from age

group, income corridor, taste and preference, peer and reference group, occupation, to price,

gender, Fad or trend. The market segmentation may also be done on such basis where various

brands concentrate on specific type, from classic to sporty. More so, the formal and classic

watches are more often than not on the higher range side, while fashionable and sporty

watches generally have a wider price range. There is also the unorganized sector which

majorly deals in fashionable and sporty watches at a much lower price, which becomes a

major concern for the organized sector.

MAJOR PLAYERS

HMT-

First major watch manufacturer in India and undisputed market leader till the entry of

Titan

Offshoot of India’s self-reliance and import substitution concept

Main quality offered sturdiness and reliability

As a market leader very few aggressive advertisement campaign

No new advertisement drive in recent years

Still holds a small market share among the old faithful loyal

Lack of new and trendy design has led to erosion of value among the new generation

TITAN -

A joint venture between the Tata group and the Tamil Nadu Industrial Development

Corporation

Launched in 1984

Titan is today world’s sixth largest, integrated watch manufacturer and India’s largest

4 factories - main watch and jewellery plants in Hosur near Bangalore

(India’s ‘Silicon valley’), Watch Assembly plants at Dehradun and in Himachal

Pradesh, with an ECB plant in Goa

Investment of over US$130 million. A 450,000 sq.ft. state-of-the-art facility

Leader in the watch and jewellery businesses in India

First and largest branded player in the jewellery (Tanishq)

Covers more than 50% share of the organized watch market

Over 60 million watches sold across 30 countries

Brands offered: Steel, Edge, Raga, Sonata, Fastrack, Regalia, Bandhan, Sonata,

Nebula, Flip, Purple, Chocolate, Ocean etc.

Recently Titan has taken a drive to improve its image as a maker of contemporary

style and design in wrist watches

Titan is trying to offer international quality/style at an affordable price

TIMEX -

The main focus is on reflecting a sporty and fashionable look for the men

In the ladies segment it is offering highly stylized bangle bracelet watches that are

sleek and sophisticated.

The advertising campaign aims at focusing on power, precision and timing.

Brett Lee was their brand ambassador.

OTHER PLAYERS-

Mainly Rado, Tommy Hilfiger and Evidenza from Longines.

Tommy Hilfiger is positioned in the mid and premium segment while the other two

players are in the luxury segment.

Trying to catch the up-market, urban, western-minded youth.

Also offer a sense of exclusivity and style as their products are distributed through

some selected outlets.

Using high society and stylish brand ambassadors such as Shahrukh Khan, Aishwarya

Rai, Yana Gupta, Lisa Ray.

CHAPTER 1:

1.1 THEORY & CONCEPT:

"A business has two - and only two - basic functions: marketing and innovation."

- Peter Drunker

The rapid pace of change and intense competitive pressure in today's marketplace demand

that brands continuously innovate and reinvent themselves to maintain their relevance and

market position. In this context, brand repositioning and other revitalization strategies have

become a business imperative for battling brand erosion. The appeal of brand repositioning is

further heightened by the rising costs and high risk associated with launching a new brand.

Brand repositioning has received little attention in the marketing literature and has

mostly been treated as a variation of brand positioning. Biel, for example, has defined brand

positioning as "building (or rebuilding) an image for a brand". The goal of positioning and

repositioning strategies relates to the management of consumers' perceptions. However,

positioning focuses on the creation of brand associations - consumers' perceptions of the

attributes that differentiate the brand from competitive offers – while repositioning also

implies managing existing brand associations. The unique challenge of a repositioning

Strategy, thus, lies in rejuvenating the brand image to make it relevant in an evolving

environment, while honoring the brand equity heritage.

Repositioning can be required as the market changes and new opportunities occur.

Through repositioning the company can reach customers they not intended to reach in the first

place. If a brand has been established at the market for some time and wish to change their

image they can consider repositioning, although one of the hardest actions in marketing is to

reposition a familiar brand.

According to Solomon, position strategy is an essential part in the marketing efforts because

companies have to use the elements in the marketing mix to influence the customers

understanding 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. The ones 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 a 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.

Numerous failed attempts at brand repositioning testify to the difficulty of developing

and implementing such a tactic. For example, while the soft drink brand, Mountain Dew has

remained relevant to the youth market through continuous repositioning in its thirty years of

existence, Levis' Jeans has been losing market share to newcomers such as The Gap, despite

numerous campaigns designed to reposition the brand as trendy.

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.

A Time-Tested Symbol of Craftsmanship

Rado watches are associated with top quality timepieces made from the finest scratchproof

materials in the world and the brand has succeeded over a short period in building up a

distinctive brand with successful worldwide distribution. In 1983, Rado joined the elite SMH

group, now known as the Swatch Group, the biggest watch conglomerate in the world. Rado's

sister brands within the Group include Omega, Breguet, Hamilton, Longines and Tissot.

Rado watches are unique in every way. The history of Rado begins in 1917 in the small Swiss

town of Lengnau, when the three brothers Fritz, Ernst, and Werner Schlup open the Schlup &

Co. clockwork factory initially producing watch movements only. In 1957 the company

launched its first collection of watches under the RADO brand. Since its formation, Rado has

continually fascinated watch lovers all over the world with its groundbreaking innovations.

With the classic Original, Rado introduced the first scratch-proof watch to the market in

1962. Many more high-tech developments have followed.

A Brief History of Time

From the earliest periods man has used some form of time measurement, be it

only the seasons of the year or phases of the moon. Earliest of time keeping

instruments were developed along two main lines - from the shadow stick,

probably the earlier, and then the water clock. Sundials (first used in ancient

Egypt, 1500-1300 BC) and water clocks (developed by the Greeks, 400BC)

were eventually developed to give surprising accuracy. Various other

methods were also used. Alfred the Great of England was reputed to use

burning candles to measure time (980 AD) while burning incense was in use

in China about the same time.

By the 1400s mechanical clocks were built in Europe using a mainspring and balance wheel.

In 1510 Peter Heinlein, a Nuremberg locksmith, introduced portability by inventing the

pocket watch. In 1583, Galileo Galilei realizes that the frequency of a pendulum's swing

depends on its length and in 1657 Christiaan Huygens used this theoretical advance to invent

the first pendulum clock, capable of far greater accuracy than any preceding timekeeper. But

the clock did not work at sea, and this was a crucial flaw. In 1759 John Harrison built a clock

that only lost 5 seconds on a voyage from England to Jamaica.

The rise of Swiss watch making

Geneva had been a center for the jewelry industry for centuries, but John

Calvin, a famous theologian and protestant reformist frowned upon it as

a manifestation of luxury and excess. Calvin took power in Geneva in

1541 and promulgated his Ordonnances Ecclesiastiques, one of whose

provisions banned the wearing of the jewelry. The jewelers rapidly

turned their craft skills, knowledge of metals and artistic flair to a useful

industry – watch making. The Watchmakers' Guild of Geneva was formed in 1601 and was

the first watchmakers’ guild in the world. A century after Calvin, Geneva was becoming

overcrowded and many watch makers decided to move out of the city into the surrounding

Jura Mountains. By 1790, Geneva was already exporting more than 60,000 watches. The

explosion of the industrial revolution in England forced the Swiss industry to face the

challenge of foreign competition, particularly in the market for exports. The fragmented

Swiss industry undertook several cooperative actions to defend its competitive position. The

industry established several watch making academies at home and watch-repair schools in

major foreign markets.

To differentiate themselves from large foreign competitors, the Swiss industry banded its

small firms together under the umbrella ‘Swiss made’ brand. By 1920, this brand (‘place of

origin’ in legal terms) had become an important symbol of quality, style and prestige. To this

day, watches, clocks and alarm clocks manufactured in Switzerland bear the designation

‘Swiss made’ (or its abbreviation ‘Swiss’) as well as the logo of the producer or distributor.

And globalization of trade has done nothing to diminish its importance. ‘Swiss made’

embodies a concept of quality that includes the technical quality of watches (accuracy,

reliability, water-resistance and shock-resistance), as well as their aesthetic quality (elegance

and originality of design). It covers both traditional manufacturing and new technologies like

micro-electronics.

Even as it continued to push the frontiers of technology, the Great Depression that began in

1929 forced the Swiss industry to consolidate. In 1930, a number of firms including Omega

and Tissot banded together to form SSIH (Societe Suisse pour l’Industrie d’Horlogerie).

Another large consolidation in 1931 led to the formation of ASUAG (Allgemeine

Schweizerische Uhren AG) of which Rado was also a part of. Both groups included watch

brands and companies that were 150 to 200 years old.