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MARKETING STRATEGY OF TITAN WATCHES

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MARKETING STRATEGY OF TITAN WATCHES

TITAN WATCHES

• Started in 1987

• Joint-venture between TATA and TIDCO

• Quartz watches

• Market leader

• Most admired brand for many years

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MARKETING STRATEGY OF TITAN WATCHES

Marketing environment

• In 1987

• HMT, the undisputed leader

• Synonymous with watches

• Established player

• PSU

• Leader in mechanical watches

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MARKETING STRATEGY OF TITAN WATCHES

PEST factors

• Political

• Economical

• Social

• Technological

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MARKETING STRATEGY OF TITAN WATCHES

Political

• Stable government

• Tinges of liberalization

• Government had started allowing foreign brands to enter Indian market

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MARKETING STRATEGY OF TITAN WATCHES

Economic

• GDP growth rate was close to 3%

• Inflation rates stable but higher

• Protected economy

• Still highly regulated

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MARKETING STRATEGY OF TITAN WATCHES

Social• Changes in lifestyle• Select exposure to MNC brands• Entry of Honda, Kawasaki• Indians highly patronizing foreign brands• Grey market• Burma Bazaar’s• Increasing aspirations• Good quality/foreign brands bought

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MARKETING STRATEGY OF TITAN WATCHES

Technological

• Better technological practices

• Quartz watches was the future

• Traditional mechanical watches

• Increasing preference for better technological products

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MARKETING STRATEGY OF TITAN WATCHES

COMPETITIVE ENVIRONMENT• HMT undisputed leader• Complacent• Changing worldwide trends• Preference for quartz• Declining market for mechanical watches• Indian consumers increasingly exposed to

foreign brands through grey markets

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MARKETING STRATEGY OF TITAN WATCHES

TITAN’s assessment• Absence of any other major competitor• Presence of HMT• Complacent• Higher market growth rates• Quartz-the future of watch market• Increasing share of grey market• Lack of innovation amongst domestic players

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MARKETING STRATEGY OF TITAN WATCHES

CONSUMER ANALYSIS

• 50% of the watches bought by consumers are used as gifts

• Consumers looking for trendy watches

• Look at watches as a statement of their personality

• Market did not have trendy, designer oriented watches

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MARKETING STRATEGY OF TITAN WATCHES

PILLARS-TITAN’s MARKETING STRATEGY

• Wants to be a leader

• Resources of Tata’s

• Positioning strategy

• Marketing mix

• Segmentation

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MARKETING STRATEGY OF TITAN WATCHES

Wants to be a leader

• To become leader

• ‘confront’ with the leader

• Take HMT head-on

• Why

• Had the resources to fight the leader

• Backing/resources of Tata’s

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MARKETING STRATEGY OF TITAN WATCHES

Positioning strategy

• Limited range of HMT

• Titan positioned watch as an ‘ornament’

• Statement of fashion

• Change the consumer’s perception of watches

• It could be gifted

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MARKETING STRATEGY OF TITAN WATCHES

Marketing Mix

• Product

• Price

• Place

• Promotion

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MARKETING STRATEGY OF TITAN WATCHES

Product• Quartz technology• Better product• Contemporary styles• Started with 750 designs• Faced dilemma• Mechanical versus quartz• Finally quartz• Avoid price competition with HMT• Do not want to confront a low-cost producer on

price.

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MARKETING STRATEGY OF TITAN WATCHES

Product

• Objective was to• Consumers buy more than one watch• Market size increases• Augment demand for watches

• Different range for different segments

• Introduce jewellery watches

• Indians buying designer jewellery abroad

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MARKETING STRATEGY OF TITAN WATCHES

Pricing• Unique benefits• Higher prices• Higher cost of manufacture• Latest plant, high investment• Avoid price confrontation with HMT• Avoid price war• Sell on differentiation

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MARKETING STRATEGY OF TITAN WATCHES

Place• Comes from positioning• How customers buy fashion items• Creating a showroom idea• Dedicated exclusive distribution• Investment in a showroom• Inline with product positioning• Prime locations

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MARKETING STRATEGY OF TITAN WATCHES

Promotion• Exploring relationships• Why• Gift items• Promotion themes explored• New relationships• Market research feedback• Focus on after sales network• Why• Poor feedback of consumers about service

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MARKETING STRATEGY OF TITAN WATCHES

Strategic Alliances• Timex tie-up• Titan’s strong presence in middle income

segment• How to increase presence in lower segments• Not presence• Dominated by mechanical watches• Presence of grey market• Sale of trendy watches

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MARKETING STRATEGY OF TITAN WATCHES

Strategic alliance with Timex

• Timex leader in mechanical watches

• Attack HMT through Timex

• Decimate HMT

• Make the competitor as weak as possible

• Attack from many flanks

• HMT loses heavily

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MARKETING STRATEGY OF TITAN WATCHES

RESULT

• Market leader in next five years

• Most envied brand

• Dominant market share

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MARKETING STRATEGY OF TITAN WATCHES

Learnings

• Understanding of environment

• Successful positioning

• Fighting a leader on differentiation

• Identifying competitive advantage

• Strategic alliances with a competitor (of HMT)

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MARKETING STRATEGY OF TITAN WATCHES

Innovative marketing strategy was the main reason for successful strategy of Titan Watches