1. TITAN- A SUCCESS
STORY
Kartikeya Sharma (11DM-055)
Ritesh Khanna (11IB-047)
Shafaquat Husain (11FN-093)
Shaurya Vikram Singh (11FN-096)
Sheeny Yadav (11IB-055)
Shubhendu Gaur (11FN-102)
Tanay Agarwal (11DM-169)
2. Contents
• The world watch market- An Introduction
• The Indian watch market in 1985
• Titan’s initial strategy: Strategy I
• Changes in the market
• New strategy: Strategy II
• New strategy: Strategy III
• Current Scenario
3. The world watch market before Titan
• There were two Swiss companies -
• Allgemeine Schweizerische Uhrenindustrie AG (ASAUG)
• Societe Suisse pour l’Industrie Horlogere (SSIH)
• They owned all the well known brands of the world:
• Omega
• Tissot
• Rado
• Eterna
• Longines
• Both companies were in loss due to Japanese competition
4. Continued…
• In response they came up with the following:
• Merge ASAUG and SSIH into a single company-Swiss Corporation of
Microelectronics and Watchmaking Industries Ltd.(SMH)
• To launch low-cost, high-tech watches
• So they launched ‘the second watch’-SWATCH
• The combination of great product and great marketing put
Switzerland back on the map as a major player in the watch market
5. 1985-The Indian watch market
• The watch market was regulated
• Lagged technologically
• Technology prevalent- mechanical technology
• reliable but outdated
• time keeping was unsatisfactory
• very basic and bulky designs
• Due to the above characteristics of the Indian watch market there
was a flourishing grey(smuggled) watch market(Casio digital watches)
• Hindustan Machine Tools(HMT) and Allwyn were the only existing
players in the market.
• It was in this scenario that Titan entered the Indian watch market
6. Increased choice –
launched 350
Going with new
different models as
styling instead of the
compared to 200 of
existing basic styles
all competitors
combined
Advertising- a vital
Accuracy as a selling
investment and not
plank
an expenditure
Opting for Quartz
based technology
Titan’s Brought the concept
of retailing in the
against the prevalent
mechanical initial watch market-
established
technology showrooms
strategy
JRD Tata said : “If Quartz is the future, why invest in passe technology?”
This led to
KEY STRATEGIC VISION of only investing in Quartz watches
7. What worked for them?
• Quantum leap in technology: Launched Quartz watches at a time
when upwards of 90 percent of the watches sold at the time were
based on old ‘mechanical movements’.
• Introduced with the backing of Tata name: This led to instant
association with reliability, quality and trustworthiness from Day 1 –
attributes which require years for a brand to acquire.
• Spectacular in width and style: Its initial range offered 350 models,
one-and-a-half times the number of models available in the rest of
the Indian watch market.
9. Strategy II : New strategic moves
• Started associating the name of • Multiple ownership was the key
century old Tata strongly with the to sustained volumes which
brand to gain trust of people and Per capita would only come when watches
Quartz watches purchases of
to induce trials moved from being timekeeping
were seen to be watches every
‘expensive’ as year in USA was devices to becoming fashion
they required higher than total accessories.
frequent changes ownership of
in batteries watches in India
per capita
Sell watches at Expand
places like distribution
garment away from
• Allowed watches to be shown in an ambience that stores, jewelers traditional • Strategy of positioning Titan watches as
encouraged people to see them as ‘accessories’ etc. watch outlets fashion accessory and not merely a time
• Created high end retail presence that would be a
competitive advantage when foreign watches were keeping device
allowed in the country
10. Strategic moves and their so what’s
Introduced as ‘Titan Quartz Customers started taking tear-outs of ads to stores, with the model already selected. It brought style and fashion
from Tata’, its ‘catalogue’ to product category which was so far viewed as a functional one
style print ads was a
sample preview of what
was waiting in stores
Strategy of focusing on the Led to change in perceptions. Encouraged multiple ownership of watches. Addressed the major barrier to
‘gifting’ market extending owning multiple items that serve the same function: the sense of redundancy
the concept to all kinds of
relationships Made Titan watches Quartz equivalent of chocolates as a gift for someone you love.
Penetration through Used attractive new ranges in terms of design and watches for specific segments as other ways of encouraging
segmentation multiple watch ownership.
Building an emotional bond Music was an intrinsic part of building this bond
with India
Titan tune has become a signature of the brand. It is a segment from Mozart’s 25th symphony with different
musical variations that brought in touches of Indian classical music, folk music, rock and more.
11. Strategy III:Focus on Youth and Penetration
through Segmentation
“In India the penetration rate is just 25 per 1000 watches as
compared to the global average of 250 watches per 1000
people”
• Penetration through Segmentation
“In a study conducted to study the consumers of watch market
it was revealed that 42% of them are youth”
• Introduction of brands to attract the younger consumers-
Fastrack, Dash etc.
12. SUB- TARGET MARKET BRAND PRICE
BRANDS CONSUMER SHARE ENDORSEM RANGE
S ENT (MRF)
Automatic Maldivian 10% Amir Khan MRF 300/-
Orion high class to 1000/-
with style
Octane and quality.
Edge Age group.
Penetration through
Steel 21 to 27
Raga Maldivian 5% Rani MRF 600/-
Raga Crystal high class Mukherjee to 2000
Ladies. With
an elegant
and Luxury.
Segmentation
Look for age
group 21 to
27
Bandhan Matching
Pair of
watch,
perfect gift
for couples.
13. Penetration through Segmentation SUB- TARGET MARKET BRAND PRICE
BRANDS CONSUMER SHARE ENDORSEM RANGE
S ENT (MRF)
FastTrack With 5% Amir Khan MRF 700/-
colourful, to 1500/-
style and
fashiionable
designs, its
targeted
especially
for teenage
girls and
boys
Classique With its 15% Amir Khan MRF 300/-
classique to 800/-
continued…
look and
elegant, its
targeted for
gentlemen(
age group
28 to 35)
14. Penetration through Segmentation
SUB- TARGET MARKET BRAND PRICE
BRANDS CONSUMER SHARE ENDORSEM RANGE
S ENT (MRF)
Raga Diva With its 10% Amir Khan MRF 300/-
unique, to 800/-
Luxury Diva Rani MRF 1000/-
look. Its Mukherjee to 2000/-
targeted to
High class
Ladies (age
group 28 to
35)
Regalia Mainly 15% Amir Khan MRF 300/-
targeted for & Rani to 1000/-
continued…
Royal
foreigners, Mukherjee
Karishma with its gold
expensive
look
16. Strategic moves and their so what’s : Dash! (focus on
kids)
Unpenetrated
segment of 35 million
urban children Launched children’s watch Dash! targeted
Revamp required at children in age group 6-14 years and
from ‘old’ and
‘elegant’ image of priced at a range of Rs. 250 to Rs. 395
Titan
HMT’s brand Zap and
Timex’s Gimmick did
not yield major results Dash! was launched with adequate
in the absence of
mega advertising advertising and marketing investments to
promotions
establish the brand
17. Strategic moves and their so what’s : Fastrack
(focus on youth)
No existing
youth segment Launched Fastrack ,targeted for age group
oriented watch
brand.
18 years onwards.
• Fastrack volumes touched 80,000-85,000 units surpassing the targeted
break-even level of 50,000 units
• Tag line: ‘How many do you have?’ actively encouraged youngsters to
see Fastrack as a multiple ownership product
• In 2011 Fastrack added range of products such as eyewear ,bags wjth
freewheeling, contemporary persona with a huge appeal to youth
• Tag line changed to: ‘Move on’
18. Current Scenario
• Titan dominates the watch market with an income of Rs.1266.46
Crores, a healthy growth of 23.3% and enhanced market share to 45.1%
• Launched new ‘Purple’ range of watches
• Untapped market waiting - 600 people in India do not wear a watch
• The role of watch as a timekeeping instrument is diminishing by the day
(with coming up of cellphones) and Titan will need to compete not on
the basis of being a ‘watch brand’ but metamorphosing into something
beyond watches.
19. Titan has embraced environments from watches(Titan) to youth lifestyles(Fastrack) to personal
adornment(Tanishq), and is likely to prosper even in new environments
Tanishq
Rebel Replica
Fast Track Aqura
