Titan’s Brand Building

&

Brand Reorganisation Strategy

BACKGROUND

Overview of the Indian Watch Market:

The watch market in India recorded an approximate volume turnover of 23

million units (1998-99). It is growing at 9% per annum. The organized sector

contributes to half the volume turnover of the industry and rest by the

unorganized sector. Tough competition is anticipated between the low priced

variants introduced by the organized sector and the unorganized sector. Watch

consumption in India is 20 units per thousand persons. The top 23 cities account

for 80% of the watches sold in India, which therefore leaves a lot of scope for

penetration in the “rural towns”. Three players dominate the organized sector,

HMT (34%  market share), Titan (39%) and Timex (23%). Besides HMT, Titan and

Timex several companies like Westar, Shivaki, Maxima, Bifora and SITCO made a

bid for the Indian watch market.  Liberalization has brought with it a host of

brands for the Indian market, viz. Piguet, Cartier, Christian Dior, Omega,

Raymond Weil, Rolex, and Tissot.

 

Segmentation of Indian Watch industry (Based on price)

Ø  Mass (Rs.350-600),

Ø  Popular (Rs.600-900),

Ø  Premium (Rs.900-1500),

Ø  Super-premium (Rs.1500-8000)

Ø  Connoisseur segments (above Rs.8000)

 

Mass Market (Rs 350 - 600):

This segment represents the low end users and the rural market. Basic

characteristic of this market is low margin and high volume.

HMT brands in this price range: Lalit, Chetan , Chetak, Rajat, Kedar, Ravi,

Kohinoor and shakti

Titan is with:  Basics, Aqura, and Sonata

Popular Watches (Rs.600-900):

This segment is slightly above the mass market segment. Somya and Tennax

from HMT targets college going men and women who see themselves as

fashionable people. A similar offering, Timex's Mariner addresses the same

profile as HMT’s Sowmya but a slightly older age group. It is difficult to categorize

Titan's Royale, Regalia and Classique as premium or popular. Though they have

a premium image they are available at prices less than Rs.1000.

Premium Watches (Rs.900-1500):

Vista  from Timex  and Chandan, and  Sangam from HMT falls in this segment.

Royal , Regalia etc of Titan can also be considerd under this range.

Super Premium Watches (Rs.1500-8000):

Titan’s Insignia, Slimline, and Bandhan; HMT's Elegance range, and Misuni;

Timex's Indiglo and Datalink are main brand offered in this market segment.

Connoiseur's Watches (Above Rs.800):

Titan's Tanishq and HMT's Gem range fall into this category. So do most of the

Swiss watches like Omega, Piaget, Longines, etc. These are bought more as

status symbols and jewelry rather than watches.

Segmentation based on user category:

Ø   Women's Watches:

Fashion and style are most visible feature of this segment

Ø   Men's Watches:

HMT's Roman is probably the only watch that addresses the men's segment.

Market research indicated that HMT wasseen as a masculine brand while Titan

was seen as a feminine brand. In keeping with its masculine image HMT

introduced the Roman range.

  Ø.Youth Watches:

Age group between 15 and 20  is treated as youth segment. Ruggedness and

durability at low price is basic feature of this segment.

Ø   Kid's Watches: Target group is children aged between 7 and 10. Mainly digital

watches fall in this category. Grey market is most dominant player of this

segment. HMT’s Zap TIMEX’s Gimmix and Titan’s Dash are branded watches

offered in category. 

Ø   Sports Watches:  Stress of this segment is on trendy designs for casual wear

with advanced features for the techno-savvy consumer.

TITAN INDUSTRIES                                                         

 

About The Company

Titan, a joint venture between Tamil Nadu Industrial Development Corporation

(TIDCO) and the renowned Indian business group Tatas, entered the watch

market in 1984. Titan changed the watch market in India completely by making

quartz watch the centerpiece of its strategy. Titan Company is the unquestioned

leader in Indian Watch Industry. Titan is one of the most powerful brands in the

Indian market, scoring very high on brand awareness, brand image and brand

preference. Over the twelve year period of its existence as a manufacturer, Titan

has added considerably both to capacity and to capability. It has a highly

integrated plant, making virtually all the parts that go into a watch. Titan is today

the sixth-largest "manufacturer-brand" in the world, after Casio, Citizen, Seiko,

Swatch and Timex of America. (Source: www.indiainfoline.com).

Since its inception, Titan decided that it would be the shaper of the watch

industry and not an adapter. They created competitive advantage through

differentiation. They first concentrated on technological leadership.

The Tatas took two decisions they will manufacture only quartz (analog and

digital) and not mechanicals, and they would set up state-of-the-art plant to

manufacture watches in a wide variety of designs and prices. HMT and local

players had always looked at the functional utility of the watch. Titan was first in

India to introduce the style concept. They projected the watch as a fashion

accessory.

They clearly identified that their main competitor was not HMT, but the gray

market. A firm differentiates itself from its competitors if it can be unique at

something that is valuable to the buyer beyond simply offering low price.

Differentiation allows a firm to command a premium price, to sell more of its

products at the same price, or to gain equivalent benefits such as greater buyer

loyalty. Differentiation leads to a superior performance if the price premium

achieved exceeds any added costs of being unique.

At Titan, the products were developed in such a way so as to enhance quality

and features to increase buyer value. This was the perfect example of

differentiation through technological leadership and product technological

change. In the initial years Titan chose to concentrate on the higher end of the

market which was responsive to the style element of the watch. Also this

segment of the market was relatively price inelastic. This was done so as to build

the brand image of Titan as manufacturer of good quality stylish watches.

Over the years the Titan brand and its signature tune Mozzart’s Fifth Symphony

has become one of the most recognised in Indian consumer durable goods

segment. Company has shifted its growth strategy from adding to equipment

and manpower to one of obtaining increased production through innovative ideas

and greater operating efficiency by adopting global best practices. It has come

up with two priorities

Ø  The first priority has been to resolutely drive down unit costs through product

and process modifications and aggressive sourcing.

Ø  The second priority has been to boost asset productivity - producing more

with less: less of men, materials, machines and time - and thereby securing the

twin benefits of higher output and lower costs.

Company sold 4.76 million watches in the domestic market as against 3.97

million in the previous year.

Growth came mainly from improved market penetration and from the newly

introduced Sonata brand (now Under TATA name), which now includes over 400

models at prices which start from Rs350.

Company has recently developed a new focus on several market segments with

large potential: women, youth, children, sportsmen, the budget-conscious and, of

course, the big spenders. A systematic programme of launching these has

already commenced and highlights of the year included the relaunch of Fastrack

and Raga.

The current year has seen the launch of the children's range, Dash. 

A new, attractively priced, solid gold line, Nebula, is also being rolled out. The

Company now has 112 exclusive Titan Showrooms called 'The World of Titan'

across 69 towns and a chain of 101 Time Zone outlets covering 59 towns in

addition to being present in over 5545 dealer outlets in 1470 towns across the

country.

 

 

Sales and Marketing

Titan launched totally a new product, quartz analog watch was an entirely new

product for India in 1987. Titan’s marketing strategy was initially built around 5

features:

Ø  A product of international quality;

Ø  Indian designs;

Ø  Competitive prices;

Ø  An intensive advertising and promotion campaign; and

Ø  Specialized retail shops to control the presentation, since the general quality

of watch merchandising in India was low.

This ambitious marketing program was intended to position Titan watches as

high-quality, fashionable timepieces, available in clean and comfortable

surroundings, priced higher than other watches then on the market but not

beyond the reach of millions of potential purchasers.

It was not a program, therefore, that would place Titan watches in direct

competition with, say, mechanical watches from HMT. The marketing program

would introduce to India the type of promotional effort familiar in most developed

countries.

In order to be successful, however, all facets of the program had to come

together: attractive designs, high-quality products, sufficient inventories, a

logistical support system and, a well-timed promotional campaign. Accomplishing

these multiple tasks in a timely way was a monumental undertaking for a new,

untested company.

 

Product Portfolio of Titan

Sonata from Titan (Now sold under TATA) aims at the mass market and

advertises itself as "a Titan watch at low price". Sonata sold an estimated 0.8

million pieces (1998-99) within four years of its launch. It is probably the largest

selling sub brand from Titan. Titan entered the watch market as a premium

watch but competition from the unorganized sector and low priced options from

HMT forced Titan to introduce Sonata. Sonata was so successful that it

cannibalized the brand from the extension’s low price connotation.

Titan's Exacta, a rugged steel watch starts at the low end of the price spectrum

but offers high price versions as well. It is reportedly selling 1.0 million pieces per

year because of the constant upgradation in its models.

It is difficult to categorize Titan's Royale, Regalia and Classique as premium

or popular. Though they have a premium image they are available at prices less

than Rs.1000. Regalia (estimated sales - 0.2 million units) is at the higher end

with dress watches for special occasions. The Royale range (estimated sales - 0.6

million watches) caters to the gift segment. There is also Royale Crown in the

upper end of the Royale range. Classique is an office wears accessory that is

gold-plated and leather strapped (estimated sales - 1 million units). Classique

watches are targeted at the older, male segment of the market, and profess

timeless elegance through a combination of fine leather straps, clean classic

dials and sleek cases, thus making it,  " A perfect fit for formal wear." Classique

is the embodiment of everything that is everlasting yet contemporary. These

watches tend to be generic in their simplicity, and find no real competitors,

except HMT. These watches are priced between Rs 550 to Rs 3000.  Though

there are very high priced watches in the above three ranges it is the relatively

low-priced ones that sell. They all target the upper middle class men and women

in their thirties. Royale, Classique and Regalia are the watches that gave Titan

the popularity and the prestige it enjoys.

The Spectra range in this price band is a well-designed bimetal watch

("stylishness of gold and ruggedness of steel"). It sold just 70,000 units in 1997-

98. Titan Industries launched (September, 2001) its range of watches in steel,

targeted at urban men and women in the age group of 25-35 years. The Titan

Steel collection has a range of bracelet and leather strap watches for both men

and women priced between Rs 1,250 and Rs 6,000. The range will be retailed

through World of Titan, Time Zone and other retail outlets. The launch of the

steel watches, available in 90 designs, will be followed by an aggressive

marketing campaign.

Titan's Tanishq range initially targeted the European market with limited

success. In India also Tanishq faced resistance because Indian women do not

treat watches as jewelry.

The company is exploring the possibility of filling up the gap in the super

premium segment. At present only Swiss brands have a presence in this niche.

TIL, however, has its Nebula range for both men and women priced between Rs

6,000 and Rs 32,000. The new range is expected to higher price than the Nebula

range. In fact the company's focus would be on niche segments to grow the

market. By planning to launch a brand in the super premium category, Titan

perhaps hopes to be present across all categories. 

Titan's Raga is an interesting product concept that offered to give dials that

match with designs on saris. This promise was unrealistic and Raga flopped

(estimated sales - 20,000 units). Raga is now being launched in more mellow

colors and its positioning changed. Raga silver watch range also did not fare well

because Indian dials.

Titan Industries launched its Fastrack range of watches for women (For Men It is

already present). The ladies watches are available in different finishes frosted,

polished and satin and come in varied geometric shapes with trendy leather

straps and classy metal bracelets. The watches retail from Rs 995 to Rs 1,950

and are attractively priced. The watches which have been designed at Titan's

creative studio is the outcome of research that has highlighted the need for a

watch that is fashionable, bold, unconventional and designed to accessories

western wear. A collection of watches with contemporary styles those 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 backlight 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, lap timers, hourly

chime, alarm and Hi-light glow.

 

Dash is Titan’s reply to Gimmix and Zap. Dash is available in 3 new collections

for kids - Popeye, Digital and Lumibrite. Titan is the sole licensee of Popeye in

India and this range is priced between Rs 350 and Rs 395. Giving Popeye of the

spinach-eating fame the additional responsibility of keeping time, the Popeye

brand of watches come in 6 different designs. The Digital range in a collection of

10 digital watches has features like El-light compass and Velcro straps for the

sporty and is priced between Rs 425 and Rs 495. And Lumibrite, is a glow watch

that comes at Rs 325. The company has also brought out a collection of five

watches for the girls, priced at Rs 295.

 

 

 

PROBLEM IDENTIFICATION 

Titan entered the watch market as a premium watch. But the unorganized sector

and low priced options from HMT gave Titan serious competition. The

unorganized sector grew very fast — almost 55% of the demand in the total

market size of 20 million watches was being met by the unorganised sector. With

the import duty reduced to 25% (earlier 50%) and with the import license for

watch movement being easy to obtain, many smalltime players cropped up.

These small players offered competition to Titan on the price front. Thus Titan

launched low priced segment Sonata. Sonata was so successful that it

cannibalized the sales of all Titan watches across the board. Titan consequently

is wary of Sonata diluting its premium image. Even if we consider sonata as

separate from Titan then it was second to titan in terms of turnover, leaving

behind Timex and HMT. Therefore Titan planed to drop its name and leave the

brand as Sonata under TATA thereby distancing the parent brand from the

extension’s low price association.

Another problem for Titan can be reflected in terms of VP marketing’s concern:

 "For us, the main concern was: Does the sum of all our communication for Raga,

Classique and Regalia add up to Titan? We felt it didn't besides; building each of

them as separate brands is a very expensive proposition. So, instead of a multi -

brand strategy here, we're going to unveil a single-brand one.

Titan has been facing a dilemma that whether it should market these brands as

independent sub-brands or not, but it because of the high costs carried on with

status quo but with more emphasis on segments.

It is also putting in place a strategy to tap the rural market rigorously. Titan is

currently in test market in rural Andhra Pradesh. While has the product and the

brand for this market in the form of 'Sonata', and reach in terms of distribution,

but in terms of Titan they don't have the communication. Mistake companies

generally make in approaching the rural market is to see as one large lump,

while in reality the market is very segmented and distinct.

Titan has been the first one to build upon style, but in terms of marketing if we

consider Classique or any other brand it was not targeting any particular

segment initially with a focus, whether it was the youngsters or the Children.

Thus there was a need to foray into these already present segments.

 

Secondary Information & Critical Analysis

 

Titan is more a marketer than a manufacturer. The strategy has theoretical

backing in the context that products reach parity and people gain enough money

to satisfy more than their basic needs, the most prized assets start shifting from

manufacturing know-how and factory machines towards the consumer

relationship section of the chain. This puts the emphasis on need identifying,

product designing and brand communication skills, with which there's greater

scope to stand apart. Titan has already made some admirable breakthroughs in

this brand-building area. As a brand, Titan sought ownership of the 'style' portion

of the target consumer's mind which was fine at the upper-end, but lacked

direction towards huge price-sensitive segment. Also the Mid-priced zone had

been less exciting HMT and Maxima have been crawling along, while Timex was

recovering. But as all branded players have discovered, the real action is at the

voluminous lower end – where the unorganized-sector and grey-market players

have been having a blast. The answer from Titan came was Sonata.

 

Titan third-quarter net jumps 28% to Rs 1.9 cr

Titan Industries Ltd has posted an increased sales turnover during the third

quarter of the fiscal by 40 per cent from Rs 105.85 crore to Rs 147.97 crore in

the current year while the company's profit after tax has gone up by 28 per cent

from Rs 1.37 crore to Rs 1.96 crore During the nine month period, Titan's watch

sales rose from 31.38 lakh pieces to 36.90 lakh units marking a growth of 18 per

cent, led by brands like Regalia, Raga, Fastrack, Sonata (plastic) and its newly

launched Dash labels.

(News Item in Financial Express)

 

 

The retail network in this segment proved to be a formidable barrier to

competition. Its strength here has helped Sonata, a relatively low-priced brand

(starting from about Rs 350apiece); achieve annual sales of almost 3 million

units within just four years of launch. Indeed, it was because of this success that

Titan needed to churn out 300,000 units more than the capacity. But this we

think was a tactical mistake made by the company. There was a dire need for

Titan to launch a watch brand for the lower segment. Now, Titan had a very

strong direct relationship with watch market than any other TATA Company, thus

it initially positioned it as a Titan sub-brand. This can be further strengthened by

the arguments given by one of the 22 immutable laws of Ries. Which says that

the association with the company name and product is a very important factor in

brand building. If instead of Titan Sonata had been under TELCO then the

association with heavy machinery would have been awkward to consumers.

TATA

TITAN

SONATA

 

The price differential between the two ranges -- Sonata and Titan -- was not very

significant. If  Sonata was priced at Rs 845, a similar-looking Titan would be

priced at Rs 1,200.  What's more, the look of the two watches was not very

different either. They sold through the same distribution outlets.

As a result, very often, a value-conscious Titan buyer would end up settling for a

Sonata. Cannibalization between Titan and Sonata rose from 15-20% in the first

year to almost 30% by the end of the second year.  Titan's initial reaction was to

cap Sonata's volumes at 2 million watches so that it did not cut into the mother

brand's volumes. But that meant that Sonata was unable to stem the onslaught

of the unorganised competition. Now in a change of tactic Titan has decided to

take the grey market head on. Says vice-president, sales and marketing, Bijou

Kurien: "Earlier, the pricing and positioning of Sonata vis-a-vis the grey market

was tentative." As a part of the new strategy, Sonata, with an ad budget of Rs 5

crore which is double than last year’s is being positioned as an aspirational watch

for the grey market consumer. 

In 1998-99 if we consider Sonata as different from Titan then this 2-year-old

brand managed to clock sales of nearly 2.4 million units, marginally less than

numero uno Titan. To prevent cannibalization and drive distribution penetration,

Titan is creating a dedicated distribution infrastructure for Sonata.

Now Sonata will be sold as under the banner of TATA. For instance, earlier the

same distributor salesman would go to sell both Titan and Sonata to a retailer.

Now that system has been changed. Two different salesmen go on different days

to the same retailer to sell Titan and Sonata as separate brands. That way,

instead of competing with each other for space, Titan and Sonata can hope to

grab market share away from other brands.

Already, Sonata has also added 500 outlets in the last one year, thereby pushing

up the total coverage to 6,000 outlets.  Sonata's next big opportunity is to open

up new markets. The company now plans to set up about 10 Sonata showrooms

—exclusive franchised outlets—this fiscal. The strategy, however, will be to go

into smaller towns, such as Bhopal, where it is opening its first Sonata

showroom.. Within these towns, Sonata showrooms will be located in ‘watch

localities’ rather than ‘hot and happening places’. ‘‘We now have to get into

smaller towns and make it an economic proposition,’’ Mr Kurien said.

Further, to tackle the competition—primarily from the unorganised sector—

Sonata will be penetrated into the rural market. Currently, Titan and Sonata are

available only in around 1,400 towns and they have no presence in smaller

villages. Having sold 2 million units last year, which is expected to touch 3 million

units this year, Sonata will lead Titan's drive into the rural market.  Sonata is

clear evidence of Titan's new brand strategy. It now wants to be a full pyramid

player addressing every segment in the market.

Titan by foraying into Fastrack and Dash has made it apparent its strategy of

identifying the segments, sizing the market, and finding ways of penetrating it.

From the earlier strategy of catch all the strategy now is to focus on the different

segments more sharply. Having created the desire now Titan wants it to

translate it into demand.  Close on the heels of watch brands for children and the

youth, Titan Industries will launch an exclusive line for college girls. According to

Xerxes Desai, vice chairman and managing director, Titan Industries, main gap in

the portfolio was the target segment containing girls. To plug this gap, Titan has

developed a new line positioned at girls between the ages of 16 and 24. So far,

Titan had treated this segment as part of its youth brand ‘FasTrack’ without

producing products specifically for it. The girls line may be priced within the

FasTrack price band: Rs 850-Rs 1500.

The debate is whether to launch this new line under the ‘FasTrack’ umbrella or as

a new brand altogether. So while keeping to the FasTrack brand field and

imagery, Titan may launch a “different look” one that would be more feminine

and colourful in comparison to the men’s line which is more instrumental, sporty

and macho. Once the  product is with a ‘fashion’ tag, then the realisation of its

fickleness and thereby, constant change is the only way to survive. Titan

Industries, which forayed into fashion watches in 1998 with Fastrack, has

recognised the greater need for upgradation in this segment more than any

other, and will come out with a new collection for men and women by the year-

end.

Fastrack, though positioned for the 15-25 years age group, has a lot of older

customers in its net as well. In the Titan portfolio, Fastrack contributes to 4 per

cent in value and the company has decided to establish it as an independent

brand because of its high penetration potential.

Titan earlier launched into several sub-brands, but it cared little to communicate

their meaning to consumers. Now Titan is changing the position with Titan as

umbrella link brand with clear differentiation of the sub-brands. Coming up with

Fastrack Titan is using smart new designs (for men and women) to counter

Swatch and Esprit, which have won the admiration of the style – conscious Indian

youngster. There is a fine example of this strategy in form of advertising

campaign for DASH As a marketing experiment at the showrooms, Titan decided

to have the Dash display at the height of 3.5 feet to make it more accessible to

the child. It also kept colorful stools for the children to stand on to have a better

look at the watches. Inspired by nightlife and urban lifestyle, a multimedia

campaign will herald the launch of this dramatic product-line. This includes

television commercial, print ads, billboards, in-store display material and web-

based promotions.

THE TATA BUSINESS EXCELLENCE MODEL (TBEM):

Titan Industries has signed up to implement the compliance plan laid out by the

TBEM.Beginning July 2000, it will be evaluated on 7 parameters that constitute

the TBEM: leadership, strategic planning, customer and market focus,

information and analysis, process management, human resources focus, and

business results. The goal is to reach a score of 600 in next five years. Titan

currently stands second in the Tata group, with a score of 450, after Tata Steel.

The objectives of TBEM are:

Ø  To provide a framework for the group to become competitive.

Ø  To work as a competition to ensure participation.

Ø  To acquire competitiveness using quality as the route.

Ø  To monitor the progress through ratings.

Ø  To become a transformational tool for every company.

The TBEM drives excellence across functions in the following manner:

1. The Leadership criterion checks how senior leaders create leadership

system based on

Group values. With the able leader in form of Mr. Xerxes Desai at the helm of

affairs, Titan has become a dynamic, vibrant and pro-active organization.

2. The Customer and Market Focus checks how the company determines

customer groups, key

Customer needs, and complaint-management issues. Titan has always been a

customer centric organisation and always has focused on satisfying the customer

demands.

3. The Strategic Planning criterion examines how the company develops

strategic objectives,

Action plans, and resource-allocation. Since its inception, Titan has been the

shaper of the watch industry. It has identified the future trends well in advance

and taken appropriate steps in the right direction to emerge as the leader in the

industry.

4. The Information and Analysis criteria check whether the organisation

has key metrics in place

To measure and analyse performance. Being market-driven, Titan has its

information systems in place and has its hand on the pulse of the watch market.

5. The Human Resources Focus checks the appraisal system, the work

environment, and the

Training and development of the employees.

6.                 Process management examines the product design, production

and delivery process, and

Supply chain management. Titan has pioneered the style concept in the watch

industry and is the undoubted leader in design.

Strategy Evaluation

 

Titan banks on Cutting edge technology that has helped Titan create value-for-

money price and the result is extraordinary marketing presence in about 40

countries, with a network of some 3,500 retailers abroad and high volume of

domestic presence.

Till date Titan is able to single-mindedly convey a point of differentiation that

strikes the consumer then whether it is in terms of price (Sonata) or

extraordinary beauty (Slim “Edge” watches). But the point is that whether the

strategies which Titan is following will take Titan to a position of global

uniqueness: a brand which brings information and ideas together from around

the world, to fulfill human needs in novel ways and still go on for profitable

growth. But maybe what's required is a campaign with executional variety a TV

campaign that uses attention-getting devices to drive home the message. This

would require greater creative risk. But then, if the stakes are reaching gigantic

proportions it's time to get one's eyes in.

Titan has segmented the market on the basis of the following variables:

Ø  Demographic: The segmentation here is done on the basis of social class i.e.

working class, middle income group etc. since marketing is potentially and

intimately connected with the “ability to pay” this segmentation is meaningful in

analysing buying patterns of a particular class.Age, children, young, adults,

Social class: upper, middle and lower come in this category.

Ø  Psycho graphic: In Psychographic segmentation buyers are divided into

different groups on the basis of lifestyle and personalities. People within the

same demographic group can exhibit very different Psychographic profiles.

 Lifestyle : professionals, affluent  Personality: adventurous, “cool”, traditional

Ø  Behavioral:  Benefits: functional, attractive, reliable, Occasions: gifts, special

occasions

Ø  Geographical:  Region: Europe, Middle-east

 

Complementing this segmentation Titan is pursuing a 3-pronged strategy

Ø  Create a separate brand for the lower end of the segment.

Ø  Create new (sub) brands for unaddressed segments, like kids.

Ø  Re-aim existing sub-brands (Raga, Classique and Regalia etc) to attract     

specific customer segments, like businessmen, women etc.

Initially Mozart’s symphony number 25 (Titan’s signature tune) imprinted the

brand in the minds of consumers, its utility faded as Titan introduced more (and

cheaper) watches. As more customers - belonging to very different socio-

economic categories - entered Titan’s fold, the brand turned mass market. The

chauffeur and the owner, both had Titan on their wrists.

This was the major re-emphasise of the sub-brands. Titan’s first attempt at

emphasizing its sub-brands didn’t yield the desired results. Instead of targeting

different customer segments with different sub-brands (as is being done now),

the watchmaker focused on product differentiation as the selling platform With

product differentiation being replaced by segment-based focus, Titan’s sub-

brands building has got bright chances of creating an identity of their own.

Positioning Strategies

Since its introduction, Titan has been positioned as a premium brand, providing

high quality products. With its numerous sub-brands catering to different

segments, the challenge that Titan faces is to create a strong brand image. It

follows different positioning strategies, these strategies can also be analysed in

the present context of Sonata, Fastrack, dash and Raga, Classique and Regalia

as ;

Ø  Attribute positioning:

  When the company launched its products, it was the first to bring quartz

watches to the Indian market. The company successfully leveraged this to

penetrate the market and gain a market share. Raga Classique and Regalia come

under this strategy. Classique has been positioned as elegant corporate wear

that leaves a quiet, but definite impression and fusion of function and

sophistication. Power dressing now has a new weapon! Regalia as 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 bicolour look, the 'Regalia' range represents the essence of

dress-wear. Raga has been differentiated and positioned as Exclusive watches for

women. The Raga and Silver Raga collection is elegant, delicate and feminine

with each piece being truly unique. An exciting 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 with elan,

the Silver Raga makes a perfect accessory that completes a woman's wardrobe.

 

Ø User positioning:

Titan caters to several user groups- children (the Dash), sportspersons and

adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being

contemporary, sturdy and reliable. The advertising, packaging and

merchandising of this range is young, vibrant and ‘cool’ (the ad line says “Cool

watches by Titan”)

 

 Ø Benefit positioning:

The Fastrack Digital range offers the customer a functional watch that  is also

attractive. The digital watch has a “techno-geek” image, but Titan seeks to

differentiate its offering on the basis of superior style and attractiveness.

Ø Competitor positioning:

   With the entry of several foreign watchmakers into the market, Titan had to

counter the threat. Most of the entrants are catering to the upper end of the

market- Omega, Tissot, Cartier etc. Titan already had the Tanishq brand in this

segment. However, it has tried to reposition this brand by increasing the price

range to encourage more customers.

Ø  Quality or price positioning:

In the overseas market, especially in Europe where it is competing with Swiss

and Japanese watches, it is positioning itself as ‘value- for- money’: reasonably

priced (less than Swiss watches and higher than Japanese), attractively styled

and of good quality. In India Market Sonata is a perfect example of Price

positioning, titan came up with this segment when it was facing heavy

competition from lower end segment.

Laws of Branding and Titan

In order to truly gauge the extent to which Titan has built itself into a nationally

recognized brand, we need only refer to marketing guru Al Ries’ definition of the

word, which is “a brand is a proper noun that can be used in place of a common

word”. In the Indian context Titan can be taken as for the watches. This is what

marks the difference between a mere name of a product, and a brand.

Perhaps one of the most highly regarded works on brand building is the now

classic ‘22 Immutable Laws of Branding’ by the father and daughter team of Al

and Laura Ries. Using these laws we can see the Titans Brand building strategies.

•   The Law of Contraction: A brand becomes stronger when its focus is

narrowed. This does not imply carrying a limited product line, but rather limiting

and focusing a brand on only one type of core product, which in Titan’s case

happens to be watches. Titan, though possessed of a wide product line, has stuck

to its focus. It hasn’t launched other types of products and stuck them with the

Titan name, which would have only gone on to cannibalize the value of the core

brand. As a result of this, Titan has developed for itself an image of being “time-

keeping experts” in the minds of the consumers. Although no it is going for the

brand extension (wallets, writing instruments, luggage etc.) but still the core

focus is Watch Industry.

•   The Law of Advertising: Once born, a brand needs to actively advertise in

order to stay healthy and maintain market share. If done right, advertising is

more of an investment than an expense. Titan has implemented this by always

maintaining a high degree of visibility when it comes to it’s advertising. In

addition, it possesses one of the most recognizable ad-jingles in the history of

Indian advertising.

• The Law of the Word: As we have seen in the STAS and Long term

advertising effects, any brand should strive to retain words in the mind of the

consumer. Titan in Indian watch market seems to have done this.

• The Law of Quality: Though quality is essential to the survival and growth of

any brand, the fact remains that brands are not built by quality alone. The

perception of the brand is as, if not more significant than mere quality. It is here

that Titan “scores”. As mentioned previously Titan more or less owns the word

“quality” in the minds of the consumers, thereby implying that it is perceived as

a quality product. Thus, it’s actual quality, as well as it’s perception of being a

quality product combine to work towards building the strength of the Titan

brand.

• The Law of the Name: In the long run, a brand is nothing more than a name.

The difference between products is thus not so much between the products, as it

is between their names, or perceptions of the names. Seeing as how its name is

perhaps the most important element of a brand, we feel that this point warrants

a slightly more in-depth discussion. First of all, the name ‘Titan’ itself comes from

Greek mythology, and symbolizes greatness, grandeur and power. It is easy to

pronounce, as well as to remember. Even Titan sounds more classy and

sophisticated than Hindustan Machine Tools (HMT).

• The Law of the Company: Brands are brands, and companies are

companies. There is a difference. Titan is owned by the Tata Group, who though

highly regarded in Indian industry are associated more with heavy industries

such as steel and truck building, than with watch making. Chances are that no

one would buy a Tata watch (it’s name invoking the same, if not greater reaction

than an HMT). People would, however buy a Titan.

Conditions Necessary for segmentation Vs Titan

Substantiality: This refers to the size of segmented markets. Segments should

be large enough to permit viable market effort directed towards them. Titan has

fully satisfied this condition as its models i.e. Psi 2000, regalia (premium

segment), Classique (office wear), Fastrack (Youth) etc are all large & profitable

enough to direct marketing effort towards them.

Accessibility: Could be attained through the existing channel of distribution.

The segments must permit the firm to direct successfully different marketing

effort towards the segments. The existing channels of distribution for Titan like

exclusive showrooms and shop dealers can support titans various segments.

Representability: Segments should be large and profitable enough to be

considered as a separate market. Such segments must be representative in

nature and must have individuality of their own. For example this condition is

fulfilled in the kids segment, which is cornered by  “Dash”

Measurable: The size, purchasing power, and characteristics of the segments

have to be measurable. This has been clearly satisfied by titan through its pricing

and branding policy. While foraying into the Youngsters and Kids segment titan

was sure   that this segment is already present there and just the need was to

differentiate and position itself.

Managerial Opinion 

In our view the disassociation of the Sonata brand from the parent Titan and its

further association with TATA was a well long term planned strategy, as the

association of Sonata built in quite strong with Titan and Titan in Indian context is

synonymous with Watches thus a strong association of Sonata with the watches

segment developed. But as we have seen that the sonata has been cannibalizing

the Titan sub-brands, whether this strategy is able to bring back the style image

of Titan back.  This all exercise leads to the conclusion that Titan is on a path of

Fortification

 

 

by means of building image through launch of new product categories of watches

for various segments, after the initial introductory and elaboration phase. 

 

 

 

 

 

Introduction                            Elaboration                             Fortification

In 1984 onwards with   Launch of Classique, Sonata                Launch of Fastrack,

 the launch of Titan       and other products around          Dash and further focu 

1990’s (late )                              -sed segmentation.