Presented By: Pentagon

The Brand Titan• Joint Venture: Tata’s & Tamil Nadu Industrial Developmental Corporation• Established in 1984, has emerged as a watch, eyewear & jewellery brand• Customer base of 80 million, add 1.2 million customers every year

Major Highlights of its Success• 247 exclusive ‘World of Titan’ showrooms in 110 cities• 12000 outlets in 2500+ cities• International presence in 30 countries• Manufactures 8 million. Watches, 1.5 lac pieces of jewellery• 700 after sales service centers• A world−class design studio (R&D)that constantly invents new trends in

wrist watches

Mass marketing (undifferentiated marketing): offering the same product to the entire consumer population

Breaking the Rules

• Mechanical technology was the norm - Quartz had not really taken off in India. Titan built its line based on quartz

• Styling was basic - This was a constraint imposed by technology. Titan decided to make style a table-stake.

• Choice was limited - 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 - no importance given to presentation. Titan brought in the concept of retailing in watches.

• Advertising was expenditure - Titan saw this as a vital investment. Right from Day 1, Titan invested significantly in advertising.

Challenge faced• Heterogeneity of the market

Build Brand Titan• Segments its customers into clusters

• Caters to all segments of consumers (Target Market)- High Income Group- Middle Income Group- Low Income Group

• Marketing plan based on product & media mix for the respective target audience

Effective Targeting Requires…

• Identify and profile distinct groups of buyers who differ in their needs and preferences

• Select one or more market segments to enter

• Establish and communicate the distinctive benefits of the market offering.

Product OfferingsYear Brand Target Symbolisim

1989 Aqura Youngsters Affordable

1992 Raga Women Ethnic Range

1993 Insignia High end Exclusivity

1994 PSI 2000 Adventurous Sporty

1996 Dash Kids Colourful Range

1997 Sonata Budget Conscious Affordable,Quality

1998 Fastrack Youth Trendy

1999 Nebula Affluent Luxury Watches

2001 Steel Young Executives Smart, Contemporary

2008 Octane High End Unique, Fascinating

Watch market in India

• India is an under penetrated market for watches – 27 % of Indians own a watch

• Total estimated market as of 2009 Volume ~ 40-45 mn units & Value: Rs 3000 Crs (USD 1 Billion US $)

• Organised sector : 46%

• Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume)

• Market has been split into: Low end, Mass market, Mid market, Premium

Watch Market in India

0

500

1000

1500

Value, Luxury (> Rs.

5k), 37000Cr

Value, Mid-upper (Rs.

1k -5k), 93800C

r

Value, Low-end (Rs.

400-1000), 1200

00Cr

Value, Mass (< Rs.

400), 30000Cr

Forces transforming the Indian watch industry

• Structure of demand changing – lower end and premium- Volume Growth driven by low end- Value growth driven by luxury segment

• Emergence of global and local brand- Luxury end : Swiss brands- Mid to upper end : Global fashion/ Japanese brands- Low end : Local/regional IMFQs, Chinese imports

•Brands ‘Titan’ and ‘Sonata’

•Exploring new brand for luxury

segment•Licensing: Tommy

Hilfiger watches

• New channels- New retail outlets emerging (Dept. stores/malls)- Existing outlets (MBOs) getting smarter looking- Unorganised retail at low-end

• Emergence of distinct consumers- Sharply defined consumer segments around distinct

buying factors- More awareness of brands and global trends among

urban consumers

Sub-branding strategy: Raga,

Fastrack, Nebula

Dominant retail presence: ‘World

of Titan’ Showrooms, TimeZones

Forces transforming the Indian watch Industry

Market Segmentation

Basis for Segmentation:

Descriptive

Geographic location Demographic

Behavioural

PsychographicBenefits

Basis for Market Segmentation

Opportunity Titan

• Low penetration:- Target undermined rural market- Cater to the illiterate

• Low multiple usage : - A watch is viewed as a time keeping device- break that notion- Device multiple usages eg. Calculators, timers, torch lights, word timers

Presented By: Pentagon