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BRAND RE-POSITIONING OF TITAN WATCHES

INDEX

S.NO.

CONTENT

PAGE NO.

Executive summary 1 Company profile Overview Products Awards and Recognitions Data Collection SWOT Analysis Conclusion Suggestion / Recommendation Bibliography 4 5 6 7 11 14 14 15

1.1 1.2 1.3 2 3 3 4 6

Executive Summary
Today, a wristwatch is considered as much of a status symbol as a device to tell time. In an age when cell phones and digital pagers display tiny quartz clocks, the mechanical wristwatch has slowly become less of an object of function and more a piece of modern culture. The Indian watch industry began in the year 1961 with the commissioning of the watch division of HMT. The first watch model manufactured by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tatas formed Titan Watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. Titan was the first company to launch quartz watches in India. The Indian watch market is today of 40 million units, out of which 60% is in the unorganized sector in which the maximum number of watches are sold are below Rs.300. Quartz watches form two third of the organized sector and the rest is split between mechanical and digital watches. Even in the organized sector, three fourth of the sales by volume comes from watches that are priced below Rs.1000. Lately Titan has tried to reposition its Brand to capture more segments of the watch market retaining the already served market segment. Many brands and companies are constantly reinvigorating their businesses and positioning them for growth. There is a constant need to innovate, reinvigorate, update, recalibrate, or just simply fend off the competition in an effort to better explain "why buy me." The main objective of the study is to find out whether the loyal consumers of titan watches are aware of the new positioning strategies of the company and how they perceive them. The analysis of brand repositioning strategies of Titan Company has been completed on the basis of data which is collected through internet, journals, books, magazines and so on have been made use of. The data is presented using pie charts. The conclusion part of the report would provide an insight of consumer awareness regarding brand repositioning strategies and their effectiveness in revamping the brand, Titan.

Chapter 1 - Company Profile


1.1 Overview Titan Industries was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. The company brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling, manufactured in a state-of-the-art factory at Hosur, Tamil Nadu. Leveraging its understanding of different segments in the watch market, the company launched a second independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled watches at affordable prices. In addition it focused on the youth with its third brand Fastrack. It has also premium fashion watches by acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made watch brand Xylys. In 1995, the company diversified into jewellery under the brand Tanishq to capitalize on a fragmented market operating with no brands in urban cities. In 2005, the company launched its second Jewellery brand, Gold Plus, for capitalizing on the opportunity in small towns and rural India. The company has now diversified into fashion Eyewear by launching Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear. The Company leveraged its manufacturing competencies and branched into Precision Engineering Products and Machine Building from 2003. Today Titan Industries is India's leading manufacturer of watches and jewellery employing 3,800 people. Titan and Tanishq are among the most admired brands in their categories.

1.2 Products The company manufactures over 8 million watches per annum and has a customer base of over 80 million. It has manufacturing and assembly operations at Hosur, Dehradun, Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Its main products are: Watches : Currently manufactures four main watch brands viz. Titan for the premium segment, Fastrack focused on the youth and trendy fashion space, Sonata for the mass market and Xylys for the premium market. The Titan brand architecture comprises several sub-brands, each of which is a leader in its segment. Notable among them are: Titan Edge The world's slimmest watch which stands for the philosophy of "less is more"; Titan Raga the feminine and sensuous accessory for today's woman, Nebula - crafted in solid gold and precious stones and several other collections like Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop, WWF and the Aviator series, all of which form a part of the Titan wardrobe. Sonata is today India's largest watch selling brand and is priced between Rs 295/- and Rs 1200/-. The company's first Swiss Made watch Xylys is for the hi-end connoisseur and new age achiever. It also markets Tommy Hilfiger watches under a licensing arrangement and is introducing Hugo Boss. Today, the Titan portfolio has about 65% of the domestic market share in the organized watch market.

The company has 255 exclusive showrooms christened 'World of Titan', making it amongst the largest chains in its category. Titan watches are sold through over 12,000 outlets in over 2,500 cities and internationally in over 30 countries, primarily in the Middle-East and Asia Pacific. Its after-sales-service is itself a benchmarked operation with a network of 750 service centres and amongst the world's fastest turnaround times. The company has a world-class design studio for watches and accessories.

Jewellery : Tanishq is India's largest and fastest growing jewellery brand with a premium range of gold jewellery studded with diamonds or coloured gems and a wide range in 22kt pure gold. Platinum jewellery is also a part of the product range Tanishq is one of India's largest speciality retailers and is transforming the jewellery market in India 102 boutiques in 72 cities across the country. Gold Plus' is the recent retail offering for the mass market with plain gold jewellery selling through 19 stores in 19 towns. The jewellery division has its own design studio. Eye wear : Titan Eye+ is currently on a pilot mode with 5 stores in 2 cities and has sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses, Sunglasses, Accessories and Contact Lenses of in-house brands and other premium brands.

1.3 Awards The company has been awarded the following distinctions:

Being named the No.1 Brand in the Consumer Durables category in the "Brand Equity" Survey of The Economic Times, a leading Indian financial daily.

The Titan Design Team won the Young Design Entrepreneur of the Year award at the design awards instituted by the National Institute of Design and Business World, a leading Indian magazine. The team has won 7 accreditations also.

Both Titan and Tanishq have been adjudged "Most Admired Brands" as well as "Retailer of the Year" by Images Fashion Forum in consecutive years.

Retail Asia and Media Magazine Singapore adjudged Titan Industries as amongst the leading Retailing Companies in India.

Titan has won the Brand Leadership award at the India Brand Summit. The Time Products Division of the company was awarded the JRD QV Award in 2006.

Chapter 2- Data Collection

Q. Which sub-brand of Titan watches do you possess? Figure 1: Titan sub-brands possessed by respondents

Q. Why do you prefer Titan brand? Figure 2: Reasons for brand preference.

Q. Do you remember the original tagline of Titan watches? Figure 3: Recall of Titans original tagline

Q. Have you seen the advertisement of Titan watches? In which media have you seen the advertisement? Figure 4: Major advertisement media

Q. Who is the brand ambassador of Titan watches? Figure 5: Awareness of brand ambassador

Q. Are you aware of the new tagline of Titan? Figure 6: Awareness of new tagline Be More

Q. How do you rate the new designs of Titan? Figure 7: Consumer perception of new designs

Q. Have you seen the new campaign of Titan? Figure 8: Awareness of new campaign

Q. Do you think the new advertisement is effective in inspiring consumers to have a new look everyday and be more in lives? Figure 9: Consumer perception of new campaign

Q. How do you rate Titans exclusive showrooms? Figure 10: Consumer perception of store ambience

Q. What is your overall perception about Titan showrooms? Figure 11: Overall perception about Titan showrooms

Chapter 3 SWOT Analysis

A. Strength:
1. Style: Titan first introduced the style concept in India and projected the watch

as a fashion accessory. Now a days style is a very much evident factor among the youth. And there is a craze for stylish wristwatch. So, Titan makes the peoples life more glorious by making stylish wristwatch.
2. Models: As Titan offers the best and the biggest range to customer to choose the

watch of their choice with an affordable price. It offers about 14 different names with about 1000plus different varieties with a watch for literally everyone.
3. Exclusive products: Today Titan holds the pride for say that its products both

within the country and internationally running in battle position. Its EDGE the slimmest watch in the world position.

Other than these there have few more strength like-

4. Contribution of owned brands and retail. The profit is accounted by being in

the retail space which is booming.


5. Watches are available with popular functions like dates, multifunction and

chronographic.
6. Guarantee/warranty

B. Weaknesses 1. Pricing: the average price of Titan in mid-price segment is very high than the

other competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the mid-price segment the company is not performing up to the mark due to the lack of choice of consumers.
2. Market share: As the average price of Titan wristwatch is far more than the other

competitor, Titan has less market share. The market is more demonstrate by middle class people and for them Titan is quite costly. Among 75% market share in mid-segment. Titan market share is between 18-20% which is far lower than HMT and Maxima.
3. Globalized: As the company is Indian based which leads it to the strength, where

as it is the weakness also because the company not sufficiently globalized.

C. Opportunities 1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan

because there is demand for the products. - Gold watches and pairs are the like as a wedding occasion. -The fast track brand is promoted in month of June-August when schools and colleges re-open. 2. Gifting concept: Titan started as a brand which was associated with gifting and relation. The fight concept sells well for people have come to associate Titan with lovecare and makes emotion run high. 3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of any make, in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new, stylish and technologically advanced watch from Titan.

D. Threats 1. Competitor: As we know that lots of foreign brands are entering in our country with their branded watches. The removal of quantitative restrictions on import watches, leads to threat to titan. 2. Premium segment: As in premium segment Titan is getting threats from reputed international brand such as Espirit, Swatch and Citizen. 3. Mobile: Nowadays people can get the time and the other feature in mobile phone. So, the need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone and some people think that there is no need of wristwatch.

Chapter 4 Conclusion
In India 70% of the sales in wristwatches come from the lower segment. So, Titan captured the market by pricing the Sonata at Rs. 350 onwards. It consists of Tata guarantee. Titan prices its world watches which are compared equal to an international competitor like Calvin Klein. Here a customer pays about 4 times a value of the world watch hence penetrating the market with low prices to international players to gain market share. In the Indian watch industry there is no one offering pure gold watches, watches in pair, Jewellery watches. This concept though exists with foreign competition has just come to India. TITAN offers these products with the Indian touch in its designs, the products, and the looks. Hence it is able to skim the market with certain products in these ranges.

Chapter 5 Suggestions and Recommendation

Suggestions to improve brand image:

Varied responses were received for this question. All the responses have been summarized as follows:

Introduce more trendy and innovative designs Focus on niche markets such as working men and women Spread awareness about availability of watches in lower segments as most of the consumers feel that Titan brand is synonymous with premium watches. Take steps to change consumer perception that Titan watches are high priced. Improve after sales service.

BIBLIOGRAPHY

www.titanwold.com www.tata.com/titan www.google.com www.indianfoline.com www.thehindu.com www.economictimes.com