Transcript titan watches

MARKETING STRATEGY OF
TITAN WATCHES
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MARKETING STRATEGY OF
TITAN WATCHES
TITAN WATCHES
• Started in 1987
• Joint-venture between TATA and TIDCO
• Quartz watches
• Market leader
• Most admired brand for many years
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MARKETING STRATEGY OF
TITAN WATCHES
Marketing environment
• In 1987
• HMT, the undisputed leader
• Synonymous with watches
• Established player
• PSU
• Leader in mechanical watches
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MARKETING STRATEGY OF
TITAN WATCHES
PEST factors
• Political
• Economical
• Social
• Technological
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MARKETING STRATEGY OF
TITAN WATCHES
Political
• Stable government
• Tinges of liberalization
• Government had started allowing foreign
brands to enter Indian market
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MARKETING STRATEGY OF
TITAN WATCHES
Economic
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GDP growth rate was close to 3%
Inflation rates stable but higher
Protected economy
Still highly regulated
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MARKETING STRATEGY OF
TITAN WATCHES
Social
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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
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MARKETING STRATEGY OF
TITAN WATCHES
Technological
• Better technological practices
• Quartz watches was the future
• Traditional mechanical watches
• Increasing preference for better
technological products
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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
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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
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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
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MARKETING STRATEGY OF
TITAN WATCHES
PILLARS-TITAN’s MARKETING STRATEGY
• Wants to be a leader
• Resources of Tata’s
• Positioning strategy
• Marketing mix
• Segmentation
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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
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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
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MARKETING STRATEGY OF
TITAN WATCHES
Marketing Mix
• Product
• Price
• Place
• Promotion
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MARKETING STRATEGY OF
TITAN WATCHES
Product
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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.
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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
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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
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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
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MARKETING STRATEGY OF
TITAN WATCHES
Promotion
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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
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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
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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
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MARKETING STRATEGY OF
TITAN WATCHES
RESULT
• Market leader in next five years
• Most envied brand
• Dominant market share
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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)
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MARKETING STRATEGY OF
TITAN WATCHES
Innovative marketing strategy was the
main reason for successful strategy of
Titan Watches
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