1 MARKETING STRATEGY OF TITAN WATCHES

2 TITAN WATCHES Started in 1987 Joint-venture between TATA and TIDCO Quartz watches Market leader Most admired brand for many years

3 MARKETING STRATEGY OF TITAN WATCHES Marketing environment In 1987 HMT, the undisputed leader Synonymous with watches Established player PSU Leader in mechanical watches

4 MARKETING STRATEGY OF TITAN WATCHES PEST factors Political Economical Social Technological

5 MARKETING STRATEGY OF TITAN WATCHES Political Stable government Tinges of liberalization Government had started allowing foreign brands to enter Indian market

6 MARKETING STRATEGY OF TITAN WATCHES Economic GDP growth rate was close to 3% Inflation rates stable but higher Protected economy Still highly regulated

7 MARKETING STRATEGY OF TITAN WATCHES Social Changes in lifestyle Select exposure to MNC brands Entry of Honda, Kawasaki Indians highly patronizing foreign brands Grey market Burma Bazaar’s Increasing aspirations Good quality/foreign brands bought

8 MARKETING STRATEGY OF TITAN WATCHES Technological Better technological practices Quartz watches was the future Traditional mechanical watches Increasing preference for better technological products

9 MARKETING STRATEGY OF TITAN WATCHES COMPETITIVE ENVIRONMENT HMT undisputed leader Complacent Changing worldwide trends Preference for quartz Declining market for mechanical watches Indian consumers increasingly exposed to foreign brands through grey markets

10 MARKETING STRATEGY OF TITAN WATCHES TITAN’s assessment Absence of any other major competitor Presence of HMT Complacent Higher market growth rates Quartz-the future of watch market Increasing share of grey market Lack of innovation amongst domestic players

11 MARKETING STRATEGY OF TITAN WATCHES CONSUMER ANALYSIS 50% of the watches bought by consumers are used as gifts Consumers looking for trendy watches Look at watches as a statement of their personality Market did not have trendy, designer oriented watches

12 MARKETING STRATEGY OF TITAN WATCHES PILLARS-TITAN’s MARKETING STRATEGY Wants to be a leader Resources of Tata’s Positioning strategy Marketing mix Segmentation

13 MARKETING STRATEGY OF TITAN WATCHES Wants to be a leader To become leader ‘confront’ with the leader Take HMT head-on Why Had the resources to fight the leader Backing/resources of Tata’s

14 MARKETING STRATEGY OF TITAN WATCHES Positioning strategy Limited range of HMT Titan positioned watch as an ‘ornament’ Statement of fashion Change the consumer’s perception of watches It could be gifted

15 MARKETING STRATEGY OF TITAN WATCHES Marketing Mix Product Price Place Promotion

16 MARKETING STRATEGY OF TITAN WATCHES Product Quartz technology Better product Contemporary styles Started with 750 designs Faced dilemma Mechanical versus quartz Finally quartz Avoid price competition with HMT Do not want to confront a low-cost producer on price.

17 MARKETING STRATEGY OF TITAN WATCHES Product Objective was to Consumers buy more than one watch Market size increases Augment demand for watches Different range for different segments Introduce jewellery watches Indians buying designer jewellery abroad

18 MARKETING STRATEGY OF TITAN WATCHES Pricing Unique benefits Higher prices Higher cost of manufacture Latest plant, high investment Avoid price confrontation with HMT Avoid price war Sell on differentiation

19 MARKETING STRATEGY OF TITAN WATCHES Place Comes from positioning How customers buy fashion items Creating a showroom idea Dedicated exclusive distribution Investment in a showroom Inline with product positioning Prime locations

20 MARKETING STRATEGY OF TITAN WATCHES Promotion Exploring relationships Why Gift items Promotion themes explored New relationships Market research feedback Focus on after sales network Why Poor feedback of consumers about service

21 MARKETING STRATEGY OF TITAN WATCHES Strategic Alliances Timex tie-up Titan’s strong presence in middle income segment How to increase presence in lower segments Not presence Dominated by mechanical watches Presence of grey market Sale of trendy watches

22 MARKETING STRATEGY OF TITAN WATCHES Strategic alliance with Timex Timex leader in mechanical watches Attack HMT through Timex Decimate HMT Make the competitor as weak as possible Attack from many flanks HMT loses heavily

23 MARKETING STRATEGY OF TITAN WATCHES RESULT Market leader in next five years Most envied brand Dominant market share

24 MARKETING STRATEGY OF TITAN WATCHES Learnings Understanding of environment Successful positioning Fighting a leader on differentiation Identifying competitive advantage Strategic alliances with a competitor (of HMT)

25 MARKETING STRATEGY OF TITAN WATCHES Innovative marketing strategy was the main reason for successful strategy of Titan Watches