Titan Watches STP (Group 12)

7/29/2019 Titan Watches STP (Group 12)

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Prof. S.SURESH( MARKETING MANAGEMENT )

SUBMITTED BY: GROUP 12

SAURABH KAPOOR (12609088) SHOBHIT AGRAWAL (12609121)

SHRUTI MITTAL (12609141) SAMUMYA BHATT (12609139)

SMIRITI SINGH (12609099) SANDEEP SETHI (12609125)

TITAN

WATCHESSTPANALYSIS


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The market surveys show that barely 20% of adult Indians own a watch and about 90% of themown a single watch. So as to sustain and strive in this scenario, a company has to market itself

well. Among those marketing strategy applied by the companies, one is STP (segmentation,

targeting, positioning) ANALYSIS. Here, STP analysis is done for a company which has got

the highest market share in the watch market of India and it is TITAN. As theworlds sixth

largest manufacturer brand of watches, the company's products attract the classes and masses

both.

The 960-crore Titan Industries Ltd (TIL) is a conglomerate between the

Tamil Nadu industrial Development Corporation and the Tata Group of Companies and it was

established in 1984. Titan Industries Ltd hassplit its mainline watch business into two:-Sonataand Titan. As their managing director says,volume growth will come from Sonata and value

growth from Titan.

CURRENT AFFAIRS:Growth Rate: Titan is maintaining agrowth rate of 30-35%.

Future Plans:

Titan is planning to roll out its own Swiss made premium watches brand Xylys'byAugust 2007, in order to lure the watch market. Xylys would be competing with premium

international brands includingTissot

andRado

. Titan is aiming to be a $1 billion company by 2010(Rs 4,700) crore hence acquiring a

three-fold growth.


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Dividing the market by grouping the customer with similar tastes and preferences into one

segment is called is calledsegmentation. Segmentation help marketers understand the needs

of different customers better and serve them with better value propositions.

A market comprises of different consumers possessing innumerable tastes and

preferences. Depending on their marketing approach and the nature of the products marketers

can adopt different level s of segmentation. The levels of market segmentation are:

Segment Marketing Individual Marketing Niche Marketing Local MarketingA) SEGMENT MARKETING: Marketers target more than one segment when it is not

economically feasible to design products and services for individual segments. The focus

of segmenting the market will be on providing enhanced service to the customer by

offering customized products that will satisfy the needs and wants of customer in that

particular segment to a large extent. Segmentation is also sometimes identifying,

capturing and retaining potential new markets.

TITAN PERSPECTIVE

Titan has segmented its business into three main categories:

Mass Mid-premium luxury

B) INDIVIDUAL MARKETING: Individual Marketing is the extreme level ofsegmentation in which marketers focus on individual customers.

TITAN PERSPECTIVE

Titan has not applied this for its marketing.

C) NICHE MARKETING: A niche is more narrowly defined group, typically a smallmarket whose needs are not well served. Marketers usually identify niches by dividing a

segment into sub segments or defining a group seeking a distinctive mix of benefits.


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TITAN PRESPECTIVE

In a study conducted to study the customers of watch market, it is revealed that 42% of

them are youth. So, TITAN tried to target this by:

introducing FAST TRACK price offering from Rs 500(affordable) watches with style statements

D) LOCAL MARKETING: Marketing programs being tailored to the needs and wants oflocal customer groups. The prominence of local marketing has also become very

dominant.

TITAN PERSPECTIVE

All the products of TITAN are addressed to all the customers as a whole. Localized

products are not available. But some products which are available in UK have some

pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal Nehru,etc. so that the customers can identify the product with those dignitaries.

CRITERIA FOR SEGMENTING CONSUMER MARKET:

Markets are mostly segmented on the basis of geographic, demographic and psychographic

factors:

Geographic segmentation:It calls for dividing the market into different geographic units such as

nations, states, regions, countries, and cities.

Demographic segmentation: In this the market is divided into groups on the basis of variables

such as age, family, size, life cycle, gender, income, occupation, education, religion, race,

generation, nationality, social class. These variables are the most popular basis for distinguishing

customer groups. The following are some of the demographic variables used to segment the

market:

Age and life cycle stage: Consumer wants and preferences change with age. These tastesand preferences are not constant and change with time.

TITAN PERSPECTIVE

Titan markets its products for all following age groups:

a) For the age group 12-20, brands like TIMEX, Sonata, etc.

b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA,

etc.

c) For the age group 30-55, brands like SONATA, NEBULA, RAGA, STEEL,

REGALIA, BANDHAN, etc.


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Gender: Gender segmentation has been applied to clothing hairstyling cosmetics,wristwatches, magazines etc. There are certain brands, which are positioned exclusively

for a specific sex.

TITAN PERSPECTIVE

Titan markets its product across:

Sex (steel, regalia, nebula, fast track, technology, sonata, edge, flip) Gents (flip) Ladies (raga) Married couples (bandhan)

Income: Marketers tend to segment product and services on the basis of income groups.

Nowadays, companies have recognized the potential of lower end income groups and

have started targeting them.

TITAN PERSPECTIVE

Titan offers its products with a price range to suit the different income groups such as:

- Below Rs 500

- Between Rs (500-1500)

- Between Rs (1500-3000)

- Between Rs (3000-5000)

- Between Rs (5000-10000)

- Above Rs 10000

Generation: Generation plays a major role in segmenting markets. Every generation isdeeply influenced by various activities. Such influences deeply impact their product

purchase pattern.

TITAN PERSPECTIVE

Titan has many products to satisfy all the generations. And through constant innovation

Titan developed many products for new generations like FAST TRACK,

TECHNOLOGY, FLIP etc.

Social Class: Social Class segmentation is influenced by customer choices ofautomobiles, interior decoration, clothing preferences etc. The tastes and preferences of

the social class also change according to time.

TITAN PERSPECTIVE


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Titan has realized the demand of the society and has marketed its products for each of the

following social strata.

- First segment: For this segment, watch is a fashion statement. Titan has ROYALE,AURUM, and NEBULA for this segment. These products have specialties like

European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold &

inlaid with precious stones.

- Second Segment: For this segment also, watch is all about fashion but price doesmatter to them. In this range, Titan has RAGA,TECHNOLOGY, FAST TRACK etc.

These products have digital technology & of trendy shapes. Always splash oomph on

to your ward robes and smear danger on your look.

- Third segment: For this segment, watch is just an device to show the time. Theyinvest after a lot of thoughts. In this category, Titan has TIMEX, SONATA,

KARISHMA, etc.

Psychographic Segmentation: Buyers are divided into different groups based on personality,

values, belief, lifestyle, motivation, etc. People within the same demographic group can exhibit

very different psychographic profiles.

Lifestyle: People generally exhibit different lifestyle depending upon their income, socialgroup etc. People usually buy the product which suit their lifestyle

TITAN PERSPECTIVE

According to the life style of people Titan has segmented its product to fit the box.like in

the luxury section it has NEBULA, AURUM etc. In the mid-premium section RAGA,GOLD-STEEL, TECHNOLOGY, etc. And in the mass section, it has SONATA,TIMEX

and KARISHMA .

Personality: Marketers can use personality variables to segment markets. They endowtheir products with brand personalities that correspond to consumer personalities.

TITAN PERSPECTIVE

Titan advertises its products by portraying movie stars as user of its products and it offers

a lot of option to its customers. For example:-

In economy category, 60 products In luxury category, 26 products

In sports & casual category, 76 products In fashion category, 99 products

In formal category, 14 products

Values: Values affect customer behavior in the long run. Marketers can use values andbeliefs to segment the markets.


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TITAN PERSPECTIVE

Time has the same value for all irrespective of cast, creed and sex. Still, Titan

successfully segmented its products according to customer values. But it is basically

related to type of generation they are in to. So, the segmentation is also related to that.

BEHAVIORAL SEGMENTATION:

Organizations can divide markets on the basis of behavior that consumer shows towards the

usage of the products. Various variables for segmenting market on the basis of purchase behavior

of customers are occasions, benefits, user status, usage rate, loyalty, etc.

Occasions: Markets can be classified on the basis of various occasions that customersencounter because people need different products for different occasions.

TITAN PERSPECTIVE

Titan also offers occasion specific products like Formal (NEBULLA, STEEL, RAGA,

GOLD&STEEL), Dress wear (REGALIA, RAGA, GOLD&STEEL, ROYALE), Fashion

(TECHNOLOGY, STEEL, RAGA, GOLD&STEEL, FAST TRACK)

Benefits: Market is divided on the basis of the benefits customers seek from the products.Benefit segmentation can be used to position various brands within the same product

category.

TITAN PERSPECTIVE

Titan product has benefits like:

It provides theTITAN WORLD SERVICE CENTRE in 174 towns. It provides a huge product range to choose from. Its products have good life cycle.

Usage Rate: The usage rate of a particular product/service can be divided into heavy,medium and light. Marketers are usually attracted to heavy users than other type of users.

Loyalty Status: The loyalty status of a particular market can be divided into differentgroups, according to the intensity of their loyalty to these brands.


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MARKET SEGMENTATION PROCEDURE

It is a three step procedure:

1. Service stage: Here the researcher conducts exploratory interviews and focused groupsto gain insights into consumer motivations attitudes and behaviors. Then the researcher

prepares a questionnaire and collects data on attributes and their importance ratings,

brand awareness and brand ratings, product usage patterns, attitudes towards productcategory and demographics, geographic, psychographics and media graphics of the

respondents.

2. Analysis Stage: In this the researcher applies factor analysis to the data to remove highlycorrelated variables then apply cluster analysis to create specific number of maximallydifferent segments.

3. Profiling stage: Here each cluster is profiled according to its distinguishing attitudes,behavior, demographics, psychographics, and media graphics and media patterns. Eachsegment is given a name depending on its dominant characteristics. Market segmentation

should be redone periodically because they change.

EFFECTIVE SEGMENTATION:

For effective segmentation, segmentation variables need to exhibit certain characteristics. These

are discussed below:

Measurable: The variable used for the segmentation of the markets should bemeasurable to be effective. For example, a variable like the purchasing power of potentialcustomer is measurable.

Substantial: When dividing the market into segments, a marketer should take enoughcare to see that each segment consist of adequate number of customers worth catering to.

Accessible: The segment of the market that a marketer is trying to target should beaccessible to him. The appropriate selection of the media, its coverage and other factors

like the product distribution facilities play a major role in a marketer becoming accessible

to customers.

Differentiable: Each segment of the market should be different from others in terms ofits needs and wants. Each segment requires different marketing strategies because it

responds to different strategies differently.

Actionable: A segmentation variable should help marketers develop effective marketingprograms to attract and serve potential customers effectively.


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It is the second stage of the Segment Target Position (STP) process. After the most attractivesegments are selected, a company should not directly start targeting all these segments. The

attractiveness of the segments is also depending on other important factors. In the main

activity of defining a target market, four sub activities are given which are the bases for

deciding on which segments will actually be targeted.

The four sub activities within targeting are:

1. Defining the abilities of the company and resources needed to enter a market

2. Analyzing competitors on their resources and skills

3. Considering the companys abilities compared to the competitors

4. Deciding on the actual target markets.

After the market has been separated into its segments, the marketer will select a segment or

series of segment and target it/them. Resources and efforts will be targeted at the:

A) The first is the single segment with a single product. In other word, the marketer targets asingle product offering at a single segment in a market with many segments. For

example, Titans sub brand, Raga is targeting the upwardly mobile ladies in the upper

premium segment.


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B) Secondly, the marketer could ignore the differences in the segments, and choose to aim asingle product at all segments i.e. the whole market. For example, Sonata and Fast track

brands of Titan are targeting mass and mid premium segment.


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SONATA

FAST TRACK

C) Finally, there is a multi-segment approach. Here a marketer will target a variety ofdifferent segments with a series of differentiated products. For example, Titan itself

provides with the number of different brands/products which are targeting different

segments in the market. Following is the table which represents the various sub brands

and their targeted segments of TITAN .


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NNEEBBUULLAA

CO

MP

ANY

SUB-

BRAN

DS

LOC

AL/G

LOB

AL

TARGET

CONSUME

RS

MARK

ET

SHAR

E

BRAND

ENDORS

EMENT RETAIL INITIATIVE

PRICE

RANGE

(INR)

TIT

AN EDGE

LOC

AL

SUPERPREMIUM

SEGMENT

30%

AMIR

KHAN

PUNCH LINE-HOWMANY WATCHES YOU

HAVE?

400-

100000

STEEL

PREMIUM

SEGMENT GLAMOUR WORLD

FAST-

TRAC

K ECONOMY

LAUNCH NEW

VARIED PRODUCTS

RAGA MEDIUM

RANI-

MUKHERJEE

INTRODUCE

DIAMOND STUDDEDWATCH

REGALIA

PREMIUMSEGMENT

AMIR

KHANNEBU

LA

SUPERPREMIUM

SEGMENT

SONA

TA ECONOMY


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Introduction:

The importance of an image has become an emotional part of everyone. A brand name represents

the image, character and personality of a brand. A brand name should be clear, lucid, easy to

remember, distinct from the competition and should not be generic to the category. It should

become customer's Top of the mind brand (TOMB). Most successful brand names would satisfy

these criterions to quite an extent. Brand loyalty is one thing which has made the branding more

popular. As someone rightly said "Brand loyalty is not dead, it's just more like loyalty to a

girl/boyfriend than loyalty to a husband/wife".

Vast flow of names today makes a brand harder to differentiate them unless they come out with

their own uniqueness. This way, they could come to their special position in everyday life. The

image following a particular name is also determined by the role of communication it undergoes;

of which the followings are included: its manner, personality, behavior, ethics, values, etc. The

importance of brands depends on the true ambitions of the company.

The increasing spread and domination of international brands has seemed inevitable for at least

the last 30 years. All around the world we have witnessed the disappearance of local brands and

local variants. But despite this trend, local and regional brands still remain strong. In India, for

example, protected for many years by government policy from the invasion of foreign brands,homegrown brands dominate many sectors - Tata automobiles and Titan watches, to name but a

few. In the end people want both global and local brands - brands that make them feel part of

wider international community and brands that root them in their home culture.

Why are brands so important?

Strong brands help a company to maintain market share in the face of a changing competitive

environment and it has been shown that a strong market share is associated with above-averageprofits. Brands have become assets in their own right. In addition, they represent low-risk

opportunities for the manufacturer or service provider and they also represent reduced risk for

the consumer.

What is meant by brand positioning?

Positioning is statement that shows how you are different, better or more special than yourcompetition. Position is that one thing that one descriptive sentence or slogan the company is

known for that one specific idea that first comes to mind about the product. It is that one

characteristic that sets the service apart from competitors.


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For

Volvo that one thing is Safety.

McDonalds is A fun place for kids.

In Jakarta, Indonesia, Bluebird is The safest way to travel by taxi.

Why brand positioning is important?

We need to be clear about why it is important to position a brand-and exactly what a brand is. As

consumers, we are all influenced by the effects of a powerful brand positioning-"brainwashed,"so to speak-to have preference for one versus another. But today there are so many choices for

consumers that this term has a secondary derivation-"whitewashing."

That is, the brand choices are so varied and the differentiation so minimal in terms of product

functionality that we're faced with a sea of indiscernible offerings. This is why it is critical for abrand to be well positioned and uniquely differentiated.

What does the result of brand positioning research show?

The market position of a brand shows where a specific brand is located. It also shows the

relationship to competitive brands. We can determine the market position of a brand on the basis

of the answers to the following four questions:

1. Why (which benefits and advantages does the new brand bring to the consumer)2. When (determining the opportunities for which the brand is most suitable)3. For whom (it is about the determination of the consumer of a brand or target group)4. Against whom (determining the main competitive brands)

TITAN PERSPECTIVE

a. Titan initially pioneered the concept of "Gifting watches". The ads captured the essenceof gifting and along with the trendy music, easily caught the imagination of the market.

Customers who were fed up with ugly time machines welcomed the brand and Titan had

a dream run for many years. Titan then moved away from gifting. Titan was positioningitself as a fashion accessory rather than a time keeping device. Titan also found its

persona in Mr. Aamir khan which provided the much needed edge to the brand. Titan

was careful in keeping the brand above the celebrity. The ads were fresh and neatly

executed. The idea was to make watches that would be seen as style and fashion

accessories rather than just utilitarian devices. The company decided to use Aamir in


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brand and product communication on television and in the print and outdoor media.

Though, the vast distribution and service network of TIL had served as an effective entry

barrier in the 1990s, foreign brands were becoming increasingly popular in the early

2000s, thanks to the paradigm shifts in the retail scenario and the growing affluence of

the Indian consumers.

And TIL found that it was not safe even at the bottom of the pyramid. The grey market

with cheap Chinese imports and the unorganized sector had cornered a sizable chunk of

the low-end market. The appointment of Aamir Khan as brand ambassador for the Titan

brand was seen as an attempt to broad base the appeal of the Titan brand.

b. Titan also was pushing another strategy. Watches were perceived as a onetime buy andconsumers seldom owned multiple watches. So Titan pushed the concept of " MatchingWatches to Clothes" in the recent commercials. Since men are becoming more serious

customers of fashion accessories, this is strategy that is worth trying out. For Titan, even

if the concept fails, It has created the much needed freshness in the brand.

c. Earlier Fastrack was targeted at 20-25 year olds and positioned along the line "Coolwatches from Titan". Then the company found out that the youth in the age group of 11-

20 years account for 42% of watch buying in India. Based on this insight, the company

relaunched the brand lowering the target segment to 18-30 year olds with the baseline

How many you have?". Again the strategy aimed at promoting the multiple watch

owning concepts. Fastrack also launched a range of fashion accessories like Sunglasses

trying to be a lifestyle brand.

TILS COMMUNICATION STRATEGY

TITAN THE AAMIR EFFECT TITANS COLLECTIONS DASH STEEL EDGE FLIP SONATA FASTRACKFROM COOL TO BOLD RAGA NEBULA


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Titan is worlds sixth largest manufacturer plant for watches. It has achieved this position by

its wonderful marketing strategies. From time to time, it has been involved in STP analysis to

sustain its brand image and growth rate and also to become the leader in the Indian watch

market. Through its meticulous segmentation, it has been able to reach out to every possible

single segment of consumers. The product range varies from Rs.350 to Rs. 1, 00,000 covering

all the economy and super premium segments. In addition to giving a tough competition to

various Local brands in India, it is also a strong competitor of various leading International

watch makers. The main competitors of Titan are Timex, Citizen, Esprit, and Swatch.HMT isits closest competitor in numbers. Titan manufactures over 7 million watches per annum and

has a customer base of over 65 million. Titan has over 60 per cent of the domestic market

share in the organized watch market. Its exclusive retail showroom chain World of Titan is

amongst the largest in its category. Titan watches are sold through over 9,000 outlets in over

2,300 cities and internationally in over 30 countries including the UK, Spain, Greece and

countries in the Middle East and Asia Pacific. Its after sales service is itself a benchmarked

operation with a network of over 616 service centers and has one of the worlds fastest

turnaround times.

Titan Watches STP (Group 12)

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