19240536 Titan Watches STP

SUBMITTED TO:

PROF. A SRIKANT (MARKETING MANAGEMENT 1)

 TITAN WATCHES

STP ANALYSIS

SUBMITTED BY: GROUP 8 RAJAT MATHUR (07BS3244)

RICHA SINGH (07BS3404)

RITU YADAV (07BS3460) (07BS3543) SUBHADEEP GHOSH (07BS3584) (07BS3769)

RUCHIKA BIHANI

SANDEEP LALWANI

SATYARANJAN SETHI (07BS3835)  Date of Submission: 03-08-2007

INTRODUCTION The market surveys show that barely 20% of adu lt Indians own a watch and about 90% of them own 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 co mpanies, one is STP ( segmentation  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 the world’s 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 has split  its mainline watch business into two:-Sonata and Titan. As their managing director says,”volume growth will come from Sonata and value  growth from Titan”.

CURRENT AFFAIRS:

Growth Rate: Titan is maintaining a growth rate of 30-35%. Future Plans: ✔

' by Titan is planning to roll out its own Swiss made premium watches brand ` Xylys  Xylys ' by August 2007, in order to lure the watch market. Xylys would be competing with  premium international brands including Tissot and Rado.

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

The STP Process

SEGMENTATION

 Dividing the market by grouping the customer with similar tastes and preferences into one  segment is called is called “ segmentation ”. 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 Marketing • SEGMENT MENT MARK MARKETI ETING NG: Marketers target more than one segment when it is not A) SEG 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

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Mid-premium

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luxury

INDIVI DUAL MARKETI MARKETING NG: Individual Marketing is the extreme level of  A) INDIVIDUAL segmentation in which marketers focus on individual customers. TITAN PERSPECTIVE

Titan has not applied this for its marketing. MARKETING NG: A niche is more narrowly defined group, typically a small B) NICHE MARKETI market 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.

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

• • •

LOC AL MARKE MA RKETIN TING G: Marketing programs being tailored to the needs and wants of  A) LOCAL local local cust custom omer er grou groups ps.. The The prom promin inen ence ce of loca locall mark market etin ing g has also also becom becomee very very dominant. TITAN PERSPECTIVE

All the products of TITAN are addressed to all the customers as a whole. Localized   products products are not available. 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: dividing the market into different different geographic geographic units such Geographic segmentation: It calls for dividing 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 tastes and preferences are not constant and a nd 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, Sonata, etc. b) For the age group 18-30, brands like FAST TRACK, TECHNOLOGY, SONATA, etc. c) For the age group group 30-55, 30-55, brands brands like like SONATA SONATA,, NEBULA NEBULA,, RAGA, RAGA, STEEL, STEEL, REGALIA, BANDHAN, etc.

•

Gender segmen segmentat tation ion has been been applie applied d to clothi clothing ng hairst hairstyli yling ng cosmet cosmetics ics,, Gender: Gender 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, edg e, flip) ➢ Gents (flip) ➢ Ladies (raga) ➢ Married couples (bandhan) Income: Marketers tend to segment product and services on the basis of income groups.  Nowadays,  Nowadays, companies companies have recognized 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 is deeply 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 Tit Titan deve develloped oped many many prod produc ucts ts for for new new gene genera rattions ons like FAST AST TRAC TRACK, K, TECHNOLOGY, FLIP etc. •

Social al Clas Classs segm segmen enta tati tion on is infl influen uence ced d by cust custom omer er choi choice cess of  Social Social Class: Class: Soci automobiles, interior decoration, clothing preferences etc. The tastes and preferences of  the social class also change according to time.

TITAN PERSPECTIVE

Titan has realized the demand of the society and has marketed its products for each of  the following social strata. fashion statement. statement. Titan has ROYALE, – First segment: For this segment, watch is a fashion AURUM, AURUM, and NEBULA NEBULA for this this segmen segment. t. These These produc products ts have specia specialti lties es like like European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones. –  Second Segment: For this segment segment also, watch is all about fashion but price does matter 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. They invest invest after a lot of thought thoughts. s. In this this categor category, y, Titan Titan has TIMEX, TIMEX, SONATA SONATA,, KARISHMA, etc.

 Psychographic Segment  Psychographic Segmentation: ation: 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 People generally generally exhibit different different lifestyle lifestyle depending depending upon their income, social group etc. People usually buy the product which suit their lifestyle TITAN PERSPECTIVE

According to the life style of people Titan has segmented it’s 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 endow their 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 o ffers a lot of option to its customers. For example:-

In economy category, 60 products   In sports & casual category, 76 products

In luxury category, 26 products In fashion category, 99 products

 In formal category, 14 products •

Values: Values affect customer behavior in the long run. Marketers can use values and  beliefs to segment the markets. TITAN PERSPECTIVE

Time Time has the same same value value for all irresp irrespect ective ive of cast, cast, creed creed and sex. Still Still,, Titan 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 SEGMENTATION:: Organizations can divide markets on the basis of behavior that consumer shows towards the usage usage of the product products. s. Variou Variouss variab variables les for segmen segmentin ting g market market on the basis basis of purchas purchasee  behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc.

•

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

Titan Titan also offers occasion specific products like Formal Formal (NEBULLA, (NEBULLA, STEEL, RAGA, GOLD&STEEL), Dress wear (REGALIA, RAGA, GOLD&STEEL, ROYALE), Fashion (TECHNOLOGY, STEEL, RAGA, GOLD&STEEL, FAST TRACK) •

Benefits: Mark Market et is divi divide ded d on the the basi basiss of the the benef benefit itss cust custom omer erss seek seek from from the 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 the”TITAN WORLD” SERVICE CENTRE in 174 towns.

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•

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It provides a huge product range to choose from.

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It’s 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 different groups, according to the intensity of their loyalty to these brands.

MARKET SEGMENTATION PROCEDURE It is a three step procedure: 1. Service stage: Here the researcher conducts exploratory interviews and focused groups to gain insights insights into consumer motivations motivations attitudes attitudes and behaviors. Then the researcher  researcher    prepares a questionnaire and collects data on attributes and their importance ratings,  brand awareness and brand ratings, product usage patterns, attitudes towards product categor category y and demogr demograph aphics ics,, geograp geographic hic,, psycho psychogra graphi phics cs and media media graphi graphics cs of the respondents. 2. Analysis Stage: In this the researcher applies factor analysis to the data to remove highly correlated variables then apply cluster analysis to create specific number of maximally different segments. 3. Profiling stage: Here each cluster is profiled according to its distinguishing attitudes,  behavior,  behavior, demographics demographics,, psychograph psychographics, ics, and media graphics and media patterns. patterns. Each segment is given a name depending on its dominant characteristics. Market segmentation should be redone periodically because they change.

EFFECT ECTIVE IVE SE SEGME GMENTA NTATIO TION: N: For effective segmentation, segmentation variables need to exhibit certain characteristics. These are discussed below: •

Measurable: The The varia variabl blee used used for for the the segm segmen enta tati tion on of the the mark market etss shou should ld be measur measurabl ablee to be effect effective ive.. For example, example, a variab variable le like like the purchasin purchasing g power power of   potential customer is measurable.

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•

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Substantial: When dividing the market into segments, a marketer should take enough care 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 be accessible to him. The appropriate selection of the media, its coverage and other factors like like the the prod produc uctt dist distri ribut butio ion n faci facili liti ties es play play a majo majorr role role in a mark market eter er becom becomin ing g accessible to customers. Differentiable: Each segment of the market should be different from others in terms of  its 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 marketing  programs to attract and serve potential customers effectively.

TARGETING It is the second stage of the Segment “Target” Position (STP) process. After the most attractive segments are selected, a company should s hould 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 a ctivities are given which are the bases for deciding on which segments will actually be targeted. ta rgeted.  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 company’s 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 a single product offering at a single segment in a market with many segments. For  example, Titan’s sub brand, Raga is targeting the upwardly mobile ladies in the upper   premium segment.

B) Secondly, Secondly , the marketer could ignore the differences in the segments, and choose to aim a single 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.

SONATA

FAST TRACK  C) Finally , there is a multi-segment approach. Here a marketer will target a variety of  different 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 .

CO MP ANY

SUBBRAN DS

TIT AN

EDGE

LOC AL/G LOB AL

TARGET CONSUME RS SUPER  PREMIUM SEGMENT

30% MEDIUM PREMIUM SEGMENT SUPER  PREMIUM SEGMENT ECONOMY

RETAIL INITIATIVE PUNCH LINE-HOW MANY WATCHES YOU HAVE?

PRICE RANGE (INR)

GLAMOUR WORLD LAUNCH NEW VARIED PRODUCTS

ECONOMY LOC AL

 NEBU LA SONA TA

AMIR  KHAN

PREMIUM SEGMENT

STEEL FASTTRAC K

RAGA REGA LIA

MARK  ET BRAND SHAR  ENDORS E EMENT

RANIMUKHER  JEE

AMIR  KHAN

400100000 INTRODUCE DIAM DI AMON OND D ST STUD UDDE DED D WATCH

“NEBULA” NEBULA POSITIONING Introd Int roduc uctio tion n: The The impor importa tance nce of an image image has has beco become me an emot emotio ional nal part part of every everyone one.. A bran brand d name 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 imag imagee foll follow owin ing g a parti particu cula larr name name is also also dete determ rmin ined ed by the the role role of comm communi unicat catio ion n it undergoes; undergoes; of which the followings followings are included: included: its manner, manner, personalit personality, y, 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, example, protected protected for many years by government government policy from the invasion invasion of foreign foreign brands, 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-average  profits. Brands have become assets in their own right. In addition, they represent low-risk  opportuniti opportunities es for the manufacture manufacturerr or service provider and they also represent 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 your  competition. 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. 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 a  brand 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 essence of 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 positioning itself as a fashion accessory rather than a time kee ping 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

 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 n ot 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. Titan also was pushing another strategy. strategy. Watches were perceived perceived as a oneti onetime me buy and b. Titan consumers seldom owned multiple watches. So Titan pushed the concept of "Matching Watches 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 " Cool

watches 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 wat ch own owning ing con concept cepts. s. Fas Fastra track ck als also o lau launch nched ed a ran range ge of fas fashio hion n acc access essori ories es li like ke Sunglasses trying to be a lifestyle brand.

TIL’S COMMUNICATION STRATEGY ➢

TITAN

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THE AAMIR EFFECT

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TITAN’S COLLECTIONS

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DASH

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STEEL

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EDGE

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FLIP

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SONATA

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FASTRACK – FROM COOL TO BOLD

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RAGA

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 NEBULA

CONCLUSION Titan is world’s 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 is its 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, Spa in, 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 world’s fastest turnaround times.