CASE STUDY ON TITAN

Presented by : Rupal Trivedi 2nd yr MMS

K .B .S

Background:

The foundation of the Tata Group was laid in 1868 by Jamsetji Tata.The Tata Group expanded regularly into new spheres of business. The more prominent of these ventures were• Tata Chemicals (1939), • Tata Motors and Tata Industries (both 1945), • Voltas (1954),• Tata Tea (1962),• Tata Consultancy Services (1968) and• Titan Industries (1984).

Background (continued):

• Titan, a joint venture between Tamil Nadu Industrial Development Corporation (TIDCO) and the renowned Indian business group Tatas, entered the watch market in 1984.

• Titan changed the watch market in India completely by making quartz watch the centrepiece of its strategy.

• The watch market in India recorded an approximate volume turnover of 23 million units (1998-99).

• It is growing at 9% per annum. • Titan has 60% share in organized sector

Positioning :

• Titan entered the market as a premium brand.• Titan initially pioneered the concept of "Gifting watches". • The ads captured the essence of gifting and along with the trendy

music, easily caught the imagination of the market.

Problems faced by Titan :

• The unorganized sector and low priced options from HMT gave Titan serious competition.

• With the import duty reduced to 25% (earlier 50%) and with the import license for watch movement being easy to obtain, many smalltime players cropped up.

• These small players offered competition to Titan on the price front.

Titan’s move

• Titan made a big mistake.• It wanted to play the volume game.• Titan launched another brand Sonata. • Sonata was a huge success - it was a cheap product • but at the cost of the mother brand Titan. • Titan was perceived to be a premium brand but with Sonata

(at that time "Sonata from Titan") endorsed by Titan took away the premium image from the mother brand.

Problems faced by Titan :

• Another problem with Titan ---it mainly operates in the mid-priced segment

• keeping the segment underdeveloped.

• Titan’s move• Titan realizing that the market wanted

something to be exciting • Carefully segmented the market • Developed sub brands for each segment.• Sub brands like:• Edge, Steel, Dash, Nebula, Classique, Royale,

Fast Track, Raga, and the recently launched Wall street .

Titan’s diversification and growth strategy:• Titan launched Tanishq in 1995, India's largest,

most desirable jewellery brand in India.Differentiation:• Diligent care and quality processes ensure

that the Tanishq finish is unmatched by any other jeweller in the country.

Titan’s diversification and growth strategy:

• Under the brand Fastrack comprising watches and sunglasses• Titan is now looking at the possibility of adding accessories like bags and belts

and so on.• To make this segment more attractive, Titan is planning to open exclusive

Fastrack stores.• Eyewear is fast becoming a fashion statement and Titan is focusing on design and

retail.• Titan has also entered in prescribed eyewear segment and has opened 30 stores

across 12 cities.• Each of them is positioned as a complete optical store where under one roof

customer can have a wide range of frames and lenses including some very famous global brands.

.

TITAN

SONATA

FASTRACK

XYLYS

TANISHQ

GOLD PLUS

TITAN EYE+

BRANDS

Segment and Target market

DEMOGRAPHICAge: 6-11, 12-19, 20-34, 35-49, 50-64, 65+Gender: Male, FemaleOccupation: Professionals, Retired, Students, Homemakers, SportsmenSocial Class: Working Class, Middle Class, Upper Middle Class, Lower Upper,

Upper Uppers

PSYCHOGRAPHICLifestyle: Culture- Oriented, Sports- Oriented, Outdoor- Oriented Personality: Gregarious, Ambitious

THANK YOU