Titan-STP

SEGMENTATION,TARGETING and

POSITIONING OF

TITAN INDUSTRIES ”BE MORE”

Submitted by Biswas.B.C

Sreeju Seema Rani Rahul Chakraborty 1

Vivek.P.N Krishna Raj

SEGMENTATION TITAN

Titan had traditionally focused on premium segment , in the late 90s Titan segmented the market in to different groups based on different parameters. ➢

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 change with time. TITAN PERSPECTIVE

Titan markets its products for all following age groups: ➢ Less than 12 : Dash, Zoop. ➢ Between 12-20 : Dash, Fast Track, Sonata, WWF. ➢ Between 18-30 : Fast Track, Flora, Sonata, Raga, Edge, Bandhan, WWF, Nebula, Octane, Technology, Spectra, ➢ Between 30-55 : Edge, Nebula, Raga, Steel, Xylus, Regalia, Automatic,Heritage, Bandhan, Orion, Exacta, Royale, Insignia. ➢ Above 55 : Regalia, Classique, Sonata. ➢ Gender : Gender segmentation has been applied to clothing,

hairstyling cosmetics, wrist watches, magazines etc. There are certain brands, which are positioned exclusively for a specific gender. TITAN PERSPECTIVE

Titan markets its product across: 2

➢ Gents : ➢ Ladies : ➢ Married couples

Automatic, Octane, Orion, Raga, Raga Diva, Flora, Nebula, Heritage, : 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 segmenting them.

➢ ➢ ➢ ➢ ➢

TITAN PERSPECTIVE Titan offers its products with a price range to suit the different income groups such as: Low ( 1 lakh) : Sonata, Lower Middle (1 to 2.5 lakhs) : Fast track, Regalia, Middle(2.5 lakhs to 4 lakhs ) : Steel, Fast track Ladies, Raga Upper Middle( 4 to 6 lakhs) : Nebula, Edge, Steel. High ( Above 7 lakhs) : Nebula, Xylus, Bandhan, Insigna

➢ 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 Titan developed many products for new generations too. ➢ New Generation ➢ Old Generation

: :

Fast Track, Technology, Flip Sonata

➢ Social Class: Social Class segmentation is influenced by

customer choices of 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. ➢ First segment: Fashion statement: 3

These products have specialties like European leather, sapphire crystal, scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones. Example : Fast Track, Royale, Aurum, Nebula ➢ Second Segment: For this segment also, watch is all about

fashion but price does matter to them. These products have digital technology & of trendy shapes. Always splash oomph on to your ward robes and smear danger on your look. In this range, Titan has

:

Raga, Technology, Fast Track

etc. ➢ Third segment: For this segment, watch is just an device to

show the time. They invest after a lot of thoughts. In this category, Titan has Sonata, Karishma. ➢

Psychographic:

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, product which suit their

social group etc. People usually buy the 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, 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 offers a lot of option to its customers. 4

For example:In In In In In

economy category, 60 products luxury category, 26 products sports & casual category, 76 products fashion category, 99 products 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 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.

VALS NETWORK

IDEAL

INNOVATORS Insignalia, Automatic ACHIEVEMENT

S

THINKERS

Steel Orion

SELFEXPRESSION

ACHIVERS

XylusEXPERIENCERFast track Octane WWF Edge Bandhan

5 BELIEVERS

Raga Heritage

STRIVERS

Nebula

SURVIVOR

Steel, Flora

MAKERS

Sonata, Dash, Zoop Royale

The four groups with higher resources are: 1. Innovator Insignalia, Automatic People who are sophisticated, have niche oriented products, and are very high on self esteem, desires for these kinds of watches. These watches are inspired by architecture and engineered in steel, this is a watch crafted for ‘take charge’ people. 2. Thinkers

Steel, Orion. Under this category people are matured enough and try to find out the functionality in the goods. These products are known for their durability, Functionality and Value in products. 3. Achievers Xylus, Edge, Bandhan. In this category titan has tried to fulfil the desires of those people who are focused on family and career. All these three models come under this category to satisfy the requirement of a premium product. 6

4. Experiences Fast track, Octane, WWF ` This group consist of mostly enthusiastic youngsters. These watches are created to attract the trendy users today. These are really tempting the youth as well as others. These people are always searching for variety and like to experience the new trends. The four in the lower resource are: 1. Believers Raga,Herritage All those who have a very conservative kind of thinking process people fall into this group. These people are traditional and conventional , so they don’t want to experiment more and are sticking to the traditional things. 2. Strivers Nebula Titan has designed this product for those who are trendy and fun loving and resource constrained . Here the nebula is made up of 18k gold and precious stones.

3. Makers Sonata,Dash, Zoop, Royle , These models suits those who are humble and down to earth kind of people. They are not too much bothered about the fashion and other aspects of the watch, but he functionality of the watch. 4. Survivors Steel, Flora Lastly in this category those people who are elderly and who are loyal to their favourite brand are included. This catered to all kind of people but always been the favourite of the elderly people and those who don’t want to change their preferences. 7

➢ Behavioral

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 customers encounter 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, Gold & Steel, Steel, Raga, 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 Gold & Steel TITAN PERSPECTIVE Titan product has benefits like: ➢ It provides the”TITAN WORLD” SERVICE CENTRE in 174 towns. ➢ It provides a huge product range to choose from. ➢ It’s products have good life cycle.

TANISHQ ➢

Demographic segmentation:  Age and life cycle stage: TITAN PERSPECTIVE

Titan markets its products for all following age groups: 8

a) Between 14- 20 Earrings,Bangles of Paheli b) Between 20-30: Punjabi Nuvo c) Between 30-50 : Diamond d) Above 50

:

Design

Accolades, Fashion India, Solo, Daisy,

Moham, Aria, Zoya, Diamond Collection, wedding, Wedding collection, Kundan and Polki, Colours of Parity, Collection, Ivy, Aqua : Colours of Royalty, Ivy.

 Niche Marketing After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Tanishq positioned itself as an international brand for the Indian elite. The brand was targeted at a niche market (However they later on started targeting the mass marketing since 1997).

 Psychographic Segmentation  Life Style:

Tanishq has found that 40% of the Indian women are working and they targeted this segment wth a specific group of products called collectionG, a 9-to-5 jewellery for the working women.  Geographical Segmentation Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people.

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FAST TRACK ➢ Based on price · Mass (Rs.350-800) · Popular (Rs.800-1200), · Premium (Rs.1200-1800), Sports, Campus, · Super-premium (Rs.1800-2500)

- Essentials, Bikers, Fall - Bikers, Summer 08 - Bikers Reloaded, Summer 07, - Army, Sport

➢ Gender : Though we can classify the products according to

gender, most of the fast track glass brands are having both varieties of men as well as women. And there are glasses which fit for both men and women which comes under the category Unisex. For example under the brand Sports it has all the varieties include Guys, Girls and Unisex. So we cannot say this brand segmenting this gender. The below classification is based on general basis. TITAN PERSPECTIVE

Titan markets its product across: ➢ Gents : Army, Bikers, Bikers Reloaded, Fall ➢ Ladies : Essentials, Fall ➢ Unisex : Sports, Summer 07, Summer 08, Campus,

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TARGETING 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:

Titan 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, 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. Example : Sonata, as it caters to all segmentation.

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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 .

Targeting of Titan Watches ➢ FAST TRACK A collection of watches will contemporary styles that are young and distinctive. Designs that go from the relaxed and informal to the definitely sporty. The woman’s collection presents the all new international `Frosted’ look, which is trendy and chic. The Fastrack collection has elements like cool mesh straps and features that include EL back-light and dual time. Also presenting a range of fashion digitals in contemporary wrist hugging cases with oversized displays and features that include countdown timers, chronographs 12

lap timers, hourly chime, alarm and Hi-light glow. Price : Category Aimed at

Rs.550-1,430 : Urban youth

➢ EXACTA

A perfect combination of dateless styling and design simplicity, Exacta is the all-steel look in Titan. Everyday watches for those who value fundamental principles of durability, reliability and affordability. Price : Category Aimed at

Rs.595-1,140 : Lower Middle Class (Office Wear)

➢ SPECTRA

A truly unique collection of watches that combines the sturdiness of steel with the richness of gold. International in styling the `Spectra’ collection is designed for those who look beyond the ordinary. Price : Category Aimed at

Rs.650-1830 : Common Class

➢ ROYALE

A stunning collection of alluring gold-plated cases matched with exquisite gold-plated straps, the `Royale’ collection has designs that suit everyday wear. Price : Category Aimed at

Rs.960-2,830 : Upper Middle Class

➢ RAGA

Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An existing collection that includes decorative motifs, `kadas’, studded bracelets and a first of its kind three-in-one watch. The designs are inspired by traditional Indian as well as contemporary motifs and are expressed in ropes, `kadas’ and ornamental bracelets. Crafted exclusively for the sophisticated woman, who wears silver jewellery 13

with élan, the Silver Raga makes a perfect accessory that completes a woman’s wardrobe. Price: Rs : Category Aimed at

1,420-4,000 : Upper Class

➢ BANDHAN

Watches for him and her. The pair watches of the `Bandhan’ range are Titan’s tribute to the everlasting quality of a bond between a man and woman The Bandhan Collection is available in both leather straps and gold bracelets and its presented in uniquely designed packaging. Price : Category Aimed at

Rs.1,675-8,085. : Couples

➢ REGALIA

Magic in gold and unique futuristic material. Finely crafted sleek cases and patterned dials with special appliqué flowing into intricately designed bracelets. A unique combination of an all-gold and bicolor look, the `Regalia’ range represents the essence of dress-wear. Price : Category Aimed at

Rs.1725-7770 : Upper Middle Class – Upper Class

➢ EDGE

The Titan EDGE is the Slimmest Watch in the Universe; a mere 3.5 millimeter thick, the watch is practically invisible. Delicately crafted with precision, it has an incredibly Slim Movement of 1.15 millimetes. Furthermore, the Titan Edge is Water Resistant to a depth of 30 meters, an attribute rarely ever seen in slim watches. Titan’s Edge comes with an elemental One-Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal that market it Scratch Resistant. Price : Category Aimed at

Rs. 4,500-5,200 : Business Class

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➢ NEBULA

Nebula, a range of watches crafted from solid gold embellished with precious stones, available with both leather straps and intricately designed bracelets. With Nebula, Titan turns watches into precious jewellery. The finishing touch to this exquisite collection is the sapphire crystal that crowns each of the watches. Price : Category Aimed at

20,000-85,000 : Upper Class

Fast Track ➢ Eye wears Fast track eye wears are obviously targeting the urban youth. That is the college students between 18 and 22 years and an extended audience of 15 to 25 years. Fast track is understanding the needs and limitations(in terms of money) and mentality of targeted group. ➢ Eye +: The range of products that Titan Eye + offers include eye-glass frames, lenses, contact lenses, sunglasses that follow the international designs and style trends. Titan Eye + also provides an array of optometric services. The friendly environment at the stores and the specially trained retail as well as clinical staff make the customers’ experience pleasant and productive Fast track is aiming to re-define eyewear and fortify the industry with quality standards, unparalleled in the history of India’s eye-care industry. Given the importance of vision to quality of life, Titan Industries foresaw the need to venture into the realm of optometry and establish a presence in clinical optical expertise. First steps were a technical collaboration, under which Sankara Netharalaya ably trained the clinical and retail staff. Titan Fast Track stores are now staffed with professional optometrists who deal with every eye-care requirement – be it a need for prescription eyeglasses for distance or nearsightedness, reading, vision correction, contact lenses or eye protection. Titan Fast Track stores are equipped to fill prescriptions for single vision lenses, progressive no line or bifocal lenses. 15

Tanishq ➢ Colours of Royalty Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical Victorian era. The collection is inspired by the classic design essence and sensibilities found in the architecture, fashion, design, drapes and patterns of the Victorian period. Aimed at

:

Those who are fashionable but love classical styles.

Zoya It is simplicity along with magnificence. The magnificence of history interwoven with linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos; oriental art embellished with occidental architecture; nature's bounty matched with man's ingenuity. Aimed at

:

Extreme luxury market

Moham The collection comprises designs, motifs inspired by nature that have been beautifully crafted. Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness the color red has in our lives. Aimed at

:

Premium segment but relatively young women.

Aria Mysteries of love; Mysteries of passion; Mysteries of envy; Bewitching; Fascinating; Enchanting; Hypnotizing; Sensuous; Captivating Aimed at

:

Those who want to be fashionable as well as trendy. 16

Kundan and Polki Influenced by the Mughal era Kundan work requires special craftsmanship and a myriad of stages, each crafted by a different set of highly skilled karigars. Tanishq as a revitaliser of traditions bring to life technologies and traditions through the exquisite collection of Kundan and Polki( Uncut Diamonds) Aimed at

:

Super Premium customers , who love the traditional

POSITIONING TITAN PERSPECTIVE 17

 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 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 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.  Titan also was pushing another strategy. Watches were perceived as a

onetime buy and 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.  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 owning concepts. Fastrack also launched a range of fashion accessories like Sunglasses trying to be a lifestyle brand.

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Positioning According to Product  WATCHES ➢ Raga “The slimmest watch in the universe” All good things are packaged small. Or we can say they are packaged slim. Titan presents a large range of Titan Edge watches –the slimmest in the world. Clean –cut, elegant designs that speak of who you are. Go ahead , choose a style that says so much with so little. And you can see it is adding an edge to your persona. ➢ Orion A unique range of watches inspired by the astral wonders of the universe. The collection celebrates the intelligence and masculinity of today’s men. ➢ Octane “Be speed, Be more” A range of high octane sports watches personifying speed and power with multi-functions, retrograde, analog-digital and chronograph. ➢ Nebula Inspired by the noble metal. Titan presents a classic collection of stunning jewelry watches-NEBULA. Crafted superbly from 18 karat solid gold and inlaid with precious stones, each piece comes with a lifetime guarantee. ➢ Zoop Titan presents Zoop- timepieces for young stars. Take your pick from floral, butterfly, duckling, and base ball themed watches or go digital with features such as dual time, countdown timer, 50 yr calendar, compass, stopwatch, alarm, EL backlight and more. ➢ WWF Titan & WWF have joined hands to celebrate the beauty & behavior of six endangered species with the launch of six new animal themed

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watches. A part of the proceeds from every watch sale is contributed to WWF towards the preservation of these animal. ➢ Raga “Unveil the real you, Be more” The magic of ornate motifs and blushing enamel casts a spell on you. From intricate dials glowing with inner radiance, to delicate bracelets that flow around you in familiar embrace. The essence of woman, Revealed at last.

 FAST TRACK ➢ Titan Fast track is positioned as an essential thing for the trendy youth

of today. With its special offerings it is really serving the urban youth. Its strongest offerings are availability and affordability. ➢ Titan Eye+ of Titan Industries offers sunglasses under its Fastrack brand. Prescription eyewear such as lenses and contact lenses is also part of the range. Titan Eye+ offers frames, sunglasses, and accessories of Titan Industries’ in-house brands as well as other premium brands. ➢ Fast track was spun of as independent brand of watches targeting the

urban youth In 2005. Since then it has carved a niche for itself with designs that were refreshingly different and affordable. During that time, Fastrack also extended its footprint into eye gear and in the last 4 years has quickly notched up the title of being the largest sunglass brand in the country. ➢ Fastrack has now chartered into newer categories – bags, belts, wallets and wrist bands – as part of its vision to become a complete fashion brand for the youth. With enough categories to fill up one cool store, Fastrack has ‘moved on’ to open its own stores for its young consumers. The store is positioned as a complete accessories destination with all Fastrack gear under one roof. ➢ Titan Fast Track provides an impressive range of stylish and contemporary eyewear, through exclusive optical outlets. Currently, Titan Fast Track boasts 70 stores across 41 cities. Titan Fast Track heralded standardisation by benchmarking with the world’s best, in sync with the TATA principles of quality and trust. Sales counters now 20

offer products and services of international quality standards coupled with transparency in pricing, style, and upbeat designs.

Tanishq ➢ Colours of Royalty :

Coloured jewelry corrected the impression of tanishq having only modern design ➢ Aarka:

Positioned thanishq as high fashion 22 karrat gold collection ➢ Fashion earrings:

being a 

A collection of studded jewelry , an attempt to move tanishq from traditional studded collection.

Brand Positioning of Tanishq Promise of purity and a unique experience. Design and retail innovation have been the hallmark of tanishq all these years. ➢ Promise of purity and unique experience ○ Design and retail innovation have been the hallmark of tannishq all these years ○ First and only jeweler to guarantees the purity of its gold jewelry and certifies the quality of its diamonds and coloured gems in writing. ➢ Trust ○ It has established itself as a highly ethical player in a market that was rated as having the highest incidents of under karatage (bis) ○ They even have gold meters where one can check the purity of the gold. ➢ Luxury ○ Tanishq also has been positioned as a branded jewelry of luxury rather than commodity. It moves jewelry beyond investments to the fashion and adornment sector. ○ Superionr Product ○ In order to compete with the regional players tanishq introduced the concept of ‘consistency in delivering promise’ ○ Tanishq is known for its ability to develop specialized design collection 21

○ It is the only jewelers that houses a full fledged design studio with a team of several international award winning Indian designers. ○ Offer a totally new perspective to jewelry buying especially when it comes to exquisite oriental jewelry.

BCG MATRIX It is used to identify how corporate cash resources can best be used to maximize a company’s future growth and profitability

Fast Track Steel

STAR

COW

Sonata Raga

? Flora Heritage

Xylus Edge

DOG

A. Stars For titan the star is undoubtedly the fast track. Since titan is promoting Fast Track than any other product and it gives high revenue in return the star is Fast Track. B. Cow Sonata was a star of yesterday. Today without spending much on sonata they are getting high profits from sonata( Sonata is the most selling watch in india) C. Question These can be the stars, cow or dogs. Here the Edge and Xylus were launched recently and the company is spending good amount of money in these products. But it is too young to predict the future. D. Dog

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Though titan is not having any product as dog, these two products are comparatively less in sales. And Business is situated at a declining stage.

Ansoff’s Product Market Expansion Grid

Current Products Current Market

Sonata, Fast Track Though Sonata is the No 1 selling watch brand in India, still there remains a huge potential market. They can go much deeper into the market

New Market

Edge This is one of the best products of Titan, as it holds the world record for the slimmest watch. So this product can be used in other countries to attract the new market.

New Products Orion, Automatic Though Titan has many brands in this segment, titan is keep on bringing new products like Orion and Automatic to bring variety to the market.

WWF This new brand is the result of titans diversification strategy. They are trying to tap the new market with this new product.

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