titan watches project report
TRANSCRIPT
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SYNOPSIS APPROVAL FORM
Date of Submission : September 30th, 2014
Name of Student : Rutesh. Singh
Roll No : 013030
Specialiation : !ar"eting
#itle of the $ro%ect : &REPOSITIONING STRATEGY OF TITAN
WATCHES
Name of 'uide : Dr.'agandeep Nagra
Signature of 'uide:
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DECLARATION
I hereby declare ha he REPOSITIONING STRATEGY OF TITAN
WATCHES !"b#$ed %&r he M'A De(ree a Dr) D)Y) Pa$l
*+$,er!$y-! De.ar#e+ &% '"!$+e!! Ma+a(e#e+ $! #y &r$($+al /&r0
a+d he d$!!era$&+ ha! +& %&r#ed he ba!$! %&r he a/ard &% a+y
de(ree1 a!!&c$ae !h$.1 %ell&/!h$. &r a+y &her !$#$lar $le!)
Place2
Dae2
S$(+a"re &% he S"de+
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CERTIFICATE
Th$! $! & cer$%y ha he d$!!era$&+ REPOSITIONING STRATEGY
OF TITAN WATCHES1 e+$led $! he b&+a%$de re!earch /&r0 carr$ed
&" by M!)DISHA 3ATARIA !"de+ &% M'A1 a Dr) D)Y) Pa$l
*+$,er!$y-! De.ar#e+ &% '"!$+e!! Ma+a(e#e+ d"r$+( he year 45678
45691 $+ .ar$al %"l%$ll#e+ &% he re:"$re#e+! %&r he a/ard &% he
De(ree &% Ma!er $+ '"!$+e!! Ma+a(e#e+ a+d ha he d$!!era$&+ ha!
+& %&r#ed he ba!$! %&r he a/ard .re,$&"!ly &% a+y de(ree1 d$.la1
a!!&c$ae!h$.1 %ell&/!h$. &r a+y &her !$#$lar $le)
;Dr) R) G&.al1 ;Dr)Ga(a+dee.)Na(ra1
D$rec&r1 Pr&
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AC3NOWLEDGEMENTS
I+ he %$r! .lace1 I ha+0 he Dr) D) Y) Pa$l *+$,er!$y1 De.ar#e+ &%
'"!$+e!! Ma+a(e#e+1 Na,$ M"#ba$ %&r ($,$+( #e a+ &..&r"+$y & /&r0 &+
h$! .r&
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PREFACE
#oda), a *rist*atch is considered as much of a status s)mbol as a de+ice to tell time. nan age *hen cell phones and digital pagers displa) tin) -uart cloc"s, the mechanical *rist*atch
has slo*l) become less of an ob%ect of function and more a piece of modern culture.
#he ndian *atch industr) began in the )ear 1/1 *ith the commissioning of the *atch di+ision
of !#. #he first *atch model manufactured b) !# *as the anata model in the )ear1/2. !# *as the leader in the *atch mar"et till the #atas formed #itan atches in
association *ith #amil Nadu ndustrial De+elopment orporation in the )ear 156. #itan
*as the first compan) to launch -uart *atches in ndia.
#he ndian *atch mar"et is toda) of 40 million units, out of *hich /07 is in the unorganied
sector in *hich the ma8imum number of *atches are sold are belo* Rs.300. 9uart*atches form t*o third of the organied sector and the rest is split bet*een mechanical and
digital *atches. +en in the organied sector, three fourth of the sales b) +olume comes from*atches that are priced belo* Rs.1000.
atch is one of the consumer durables *hose replacement rate is +er) high. #he replacement
rate of *atch is 33.5 7; Source: ndia mar"et demographics report, 15
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INDE?-h&)ter No Tite *&ge
No
A 2ist of T&bes
B 2ist of Figures
- 2ist of Abbre,i&tions
E3e'uti,e Summ&ry
# Introdu'tion
/ Re,ie4 of 2iter&ture
$ Ob5e'ti,e of the Study
0 Rese&r'h Methodoogy
6 Industry O,er,ie4
5.1 History
5.2 Porters five forces
5.3 Segmentation, Targeting & Positioning
5.4 BCG matrix
5.5 nsoff !o"e#
7 -om)&ny *rofie
$.1 %ntro"ction
$.2 Pro"ct
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8 Tit&n 9&t'hes:Br&nd
*ositioning Str&tegy
'.1 Strategies
'.2 Bran" Positioning
'.3 S()T na#yses
'.4 Pricing Strategy
'.5 *istri+tion Strategy
*robem Identifi'&tion
; Atern&ti,es
#" -onsumer A4&reness
Sur,ey
## -on'usion
#/ Referen'e Se'tion
12.1 estionnaire
12.2 Bi+#iogra-y
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E@ec"$,e S"##ary
!an) brands and companies are constantl) rein+igorating their businesses and positioning
them for gro*th. #here is a constant need to inno+ate, rein+igorate, update, recalibrate, or %ustsimpl) fend off the competition in an effort to better e8plain @*h) bu) me.@
?rand positioning creates a specific place in the mar"et for the brand and product
offerings. t reaches a certain t)pe of consumers and deli+ers benefits that meet the needs of
se+eral "e) target groups and users.
#he actual approach of a compan) or brandAs positioning in the mar"etplace depends on ho* it
communicates the benefits and product attributes to consumers and users. =s a result, the brand
positioning of a compan) andBor product see"s to further distance itself from competitors basedon a host of items, but most notabl) on fi+e "e) issues: $rice, 9ualit), $roduct =ttributes,Distribution, and Csage ccasions.
n recent times, consumerism has undergone a sea change. onsumers toda) are *ell
informed about the products, as compared to earlier times. ence, the mar"etplace has becomecustomer centric. Recogniing the importance of the customers in the business structure,
companies ha+e started effecting brand repositioning e8ercises on a regular basis.
n the recent times, a ma%or brand repositioning e8ercise has been planned b) #itan ndustries
>td. in order to pro+ide more to its customers. #he compan) has first gone for change in logoand tagline. #hen the communication strateg) has been re+amped to con+e) its ne*
position. #he present stud) consists of re+ie*ing the positioning strategies of #itan
*atches. =n anal)sis of repositioning strategies of #itan also forms part of the stud).
#he main ob%ecti+e of the stud) is to broadl) understand the o+erall brand positioningand reEpositioning strateg) of #itan *rist *atches and to find out *hether the lo)al consumers of
titan *atches are a*are of the ne* positioning strategies of the compan) and ho* the) percei+e
them.
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Theory & Concept"A business has two - and only two - basic functions: marketing andinnovation." -eter !rucker
#he rapid pace of change and intense competiti+e pressure in toda)As mar"etplace demand
that brands continuousl) inno+ate and rein+ent themsel+es to maintain their rele+ance and
mar"et position. n this conte8t, brand repositioning and other re+italiation strategies ha+e
become a business imperati+e for battling brand erosion. #he appeal of brand repositioning is
further heightened b) the rising costs and high ris" associated *ith launching a ne* brand.
?rand repositioning has recei+ed little attention in the mar"eting literature and has mostl) been
treated as a +ariation of brand positioning. ?iel, for e8ample, has defined brand positioning as
@building ;or rebuilding< an image for a brand@. #he goal of positioning and repositioning
strategies relates to the management of consumersA perceptions.
o*e+er, positioning focuses on the creation of brand associations E consumersA
perceptions of the attributes that differentiate the brand from competiti+e offers F *hile
repositioning also implies managing e8isting brand associations. #he uni-ue challenge of a
repositioning strateg), thus, lies in re%u+enating the brand image to ma"e it rele+ant in an
e+ol+ing en+ironment, *hile honoring the brand e-uit) heritage.
Repositioning can be re-uired as the mar"et changes and ne* opportunities occur. #hrough
repositioning the compan) can reach customers the) ne+er intended to reach in the first place. f
a brand has been established at the mar"et for some time and *ish to change their image the) can
consider repositioning, although one of the hardest actions in mar"eting is to reposition a
familiar brand.
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=ccording to Solomon, position strateg) is an essential part in the mar"eting efforts because
companies ha+e to use the elements in the mar"eting mi8 to influence the customers
understanding of the position. During the mo+ement from something less attracti+e andrele+ant to*ards a more attracti+e and rele+ant position se+eral of strategic choices has to be
made. #he ones responsible for the repositioning ha+e to e+aluate *h) a reposition is
necessar), and if the offer is the one that *ill change or %ust the brand name. #here are se+eral
ris" factors that ha+e to be ta"en into consideration *hen preparing for a repositioning of the
offering or the brand.
During repositioning, the ris" of losing the credibilit) and reliabilit) is high and the need for a
thorough strateg) is therefore necessar) to a+oid this occurrence. Some anal)st argue that to
successfull) reposition a establish brand name is almost impossible because repositioning of a
brand can ma"e the most lo)al customer to s*itch brand. ?ut, in some circumstances a
repositioning is necessar) to gain credibilit) if the brand is eroded.
hene+er a reposition is in -uestion it has to be of rele+ance from a customer perspecti+e, is this
achie+ableG Some brands *ill on no account be thought on as a lu8ur) brand and therefore an
attempt to reposition *ill onl) damage the brand image or the actual compan).
Numerous failed attempts at brand repositioning testif) to the difficult) of de+eloping and
implementing such a tactic. Hor e8ample, *hile the soft drin" brand, !ountain De* has
remained rele+ant to the )outh mar"et through continuous repositioning in its thirt) )ears
of e8istence, >e+isA eans has been losing mar"et share to ne*comers such as #he 'ap,
despite numerous campaigns designed to reposition the brand as trend).
#he strategic importance of brand repositioning in preser+ing and enhancing brand e-uit),
coupled *ith the mi8ed results of repositioning attempts, underscores the need to de+elop a
better understanding of the d)namics of brand repositioning. Specificall), -uestions of *hether,
*hen and ho* brands should be repositioned need to be addressed.
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L$era"re Re,$e/
#he repositioning strateg) *ill be rolled out in three stages: introductor), elaboration and
fortification stages. #his in+ol+es the introduction of a ne* or a repositioned brand,see"ing to underline the brands +alue o+er others, and to broaden the brand proposition. t
is trul) tough to change the customers percei+ed attitude to*ards a brand, and therefore the
ris" is great that the attempt to repositioning might be unsuccessful.
=fter rolling out the strateg), it is time to modif) the proposition through update of the
personalit) and through repositioning. #here are benefits and ris"s *ith both of this segmentsand it is of great significance that the) are trul) e+aluated *hen deciding the ne8t step in
the process.
#he implication *ith the termI repositioningI is that a compan) modifies something thatis alread) present in the mar"et and in the consumers mind. #he definition of
repositioning changes different indi+iduals and professions. &Repositioning is built upon the
change of uni-ue and differentiated associations *ith the brand in some "ind of direction, it isabout ha+ing a balance bet*een the categor) part) and differentiation *hen using reposition
strategiesI ;#itan brand strategisto* ; 1 la"h< : Sonata,
>o*er !iddle ;1 to 2.( la"hs< : Hast trac", Regalia,
!iddle;2.( la"hs to 4 la"hs < : Steel, Hast trac" >adies, Raga
Cpper !iddle; 4 to / la"hs< : Nebula, dge, Steel.
igh ; =bo+e 6 la"hs< : Nebula, )lus, ?andhan, nsigna
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Ge+era$&+ 2
'eneration pla)s a ma%or role in segmenting mar"ets. +er) generation is deepl) influenced b)
+arious acti+ities. Such influences deepl) impact their product purchase pattern.
TITAN PERSPECTIVE
#itan has man) products to satisf) all the generations. =nd through constant inno+ation #itan
de+eloped man) products for ne* generations too.
Ne* 'eneration : Hast #rac", #echnolog), Hlip
ld 'eneration : Sonata
S&c$al Cla!! :
Social lass segmentation is influenced b) customer choices of automobiles, interior decoration,
clothing preferences etc. #he tastes and preferences of the social class also change according to
time.
TITAN PERSPECTIVE
#itan has realied the demand of the societ) and has mar"eted its products for each of the
follo*ing social strata.
F$r! !e(#e+2 Hashion statement :#hese products ha+e specialties li"e uropeanleather, sapphire cr)stal, scratch resistant, crafted *ith 15 ct. solid gold M inlaid *ith
precious stones.
8ample: Hast #rac", Ro)ale, =urum, Nebula
Sec&+d Se(#e+2Hor this segment also, *atch is all about fashion but price doesmatter to them. #hese products ha+e digital technolog) M of trend) shapes. =l*a)s
splash oomph on to )our *ard robes and smear danger on )our loo".
n this range, #itan has : Raga, #echnolog), Hast #rac" etc.
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Th$rd !e(#e+2Hor this segment, *atch is %ust an de+ice to sho* the time. #he)in+est after a lot of thoughts. n this categor), #itan has Sonata, Oarishma.
P!ych&(ra.h$c 2
?u)ers are di+ided into different groups based on personalit), +alues, belief, lifest)le,
moti+ation, etc. $eople *ithin the same demographic group can e8hibit +er) different
ps)chographic profiles.
L$%e!yle 2
$eople generall) e8hibit different lifest)le depending upon their income, social group etc. $eopleusuall) bu) the product *hich suit their lifest)le
TITAN PERSPECTIVE
=ccording to the life st)le of people #itan has segmented its product to fit the bo8. >i"e in the
lu8ur) section it has Nebula, =urum etc. n the midEpremium section Raga, 'old ESteel,
#echnolog) etc. =nd in the mass section, it has Sonata, and Oarishma.
Per!&+al$y 2
!ar"eters can use personalit) +ariables to segment mar"ets. #he) endo* their products *ith
brand personalities that correspond to consumer personalities
TITAN PERSPECTIVE
#itan ad+ertises its products b) portra)ing mo+ie stars as user of its products and it offers a lot ofoption to its customers.
#he four groups *ith higher resources are:
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1. nno+ator
nsignalia, =utomatic$eople *ho are sophisticated, ha+e niche oriented products, and are
+er) high on self esteem, desires for these "inds of *atches. #hese *atches are inspired b)architecture and engineered in steel, this is a *atch crafted for Pta"e charge people.
2. #hin"ers
Steel, rion.Cnder this categor) people are matured enough and tr) to find out the
functionalit) in the goods. #hese products are "no*n for their durabilit), Hunctionalit) and
Lalue in products.
3. =chie+ers)lus, dge, ?andhan. n this categor) titan has tried to fulfil the desires of those people
*ho are focused on famil) and career. =ll these three models come under this categor) tosatisf) the re-uirement of a premium product.
#he four in the lo*er resource are:
1.?elie+ers
Raga,erritage=ll those *ho ha+e a +er) conser+ati+e "ind of thin"ing process people fall
into this group. #hese people are traditional and con+entional , so the) dont *ant toe8periment more and are stic"ing to the traditional things. .
2.Stri+ers
Nebula#itan has designed this product for those *ho are trend) and fun lo+ing and resource
constrained . ere the nebula is made up of 15" gold and precious stones. 3.
3. !a"ers
Sonata,Dash, Joop, Ro)le,#hese models suits those *ho are humble and do*n to earth "ind
of people. #he) are not too much bothered about the fashion and other aspects of the *atch,
but he functionalit) of the *atch. 4.
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4.Sur+i+ors
Steel, Hlora>astl) in this categor) those people *ho are elderl) and *ho are lo)al to their
fa+ourite brand are included. #his catered to all "ind of people but al*a)s been the fa+ourite
of the elderl) people and those *ho dont *ant to change their preferences.
'eha,$&ral
rganiations can di+ide mar"ets on the basis of beha+ior that consumer sho*s to*ards the
usage of the products. Larious +ariables for segmenting mar"et on the basis of purchasebeha+ior of customers are occasions, benefits, user status, usage rate, lo)alt), etc.
Occa!$&+! 2
!ar"ets can be classified on the basis of +arious occasions that customers encounter becausepeople need different products for different occasions.
TITAN PERSPECTIVE
#itan also offers occasion specific products li"e Hormal ;Nebulla, Steel, Raga, 'old M SteelDI SRL N#R in 164 to*ns.
t pro+ides a huge product range to choose from.
ts products ha+e good life c)cle.
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TANISH
De#&(ra.h$c !e(#e+a$&+ 2
A(e a+d l$%e cycle !a(e 2
TITAN PERSPECTIVE
#itan mar"ets its products for all follo*ing age groups:
o 'e/ee+ 6B8 45 2Design =ccolades, Hashion arrings,?angles of ndia, Solo, Dais),$ahelib! DN#H=#N
o +erlapping of sub brands
o ompetitors entering mid price mar"et range ;RS 1(00E3(00