Executive summary:

Titans watch segment is the Indias chief producer of watches and ranks fifth in the world in
production of watches.
Company really understands the psyche of consumer and they offered quality products in
classical design with superior technology.
Today the company has model for every prices segment and every market. Basically it deals with
three target market
High income group
Middle income group, and
Lower income group
Titan alone holds 70% market share in domestic level whereas 60% in organized market.
As our Marketing Objectives is to increases Market Share of the company by 5% in the coming
year as well as to increase the profitability of the company by 10%.
The competitor are also playing an important role to grab the market share .We as the Marketer
try to increase the market share by grabbing the opportunity from other company. To achieve
this the company have to follow the marketing strategies, which basically include the
MARKETING MIX.
The marketing strategies basically include the 4 ps .
There the marketer have to focus at first on PRICE ,which basically for The titan is not
affordable in the Mid Segment, where as the competitor like HMT and Maxima are doing good
business by holding market share of 45% where as titan hold the only the 32%,there fore it is
important for the company to reduce price in mid segment.
Though in the improperness or in
innovation of the Product, Titan
doing well, but there is need of few
changes. For example HMT, the
nearest competitor innovate BLUE
CHIP in the watches.
We also have to implement this type
of innovation to bring the
flexibleness in our product.
As it is also important to do some
creativity in advertisement by

showing the importance of Time to the mass. The company brand promoter is Amir Khan but
the company can make it attractive by endorsing Katrina Kiaf .
The place can be taken into consideration ,as it is need foe the company to open some show
rooms in the rural area and as the company don/t have so much market share in the foreign
market ,so to expand the business company should launch its showroom all over the globe in
the more number.

Market share of the competitor in domestic market

HMT

19%

Maxima

13%

Rado

7%

Casio

3%

The strongest selling point of Titan is that it is available and affordable. Titan provides watches
for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy young,
Dash for the kids, and the higher priced Regalia and Nebula to the premium segment customer.
The Indian watch market is estimated at 25 million watches a year, where the domestic sales is 6
million watches per annum. The rural segment is the diverse market in the present scenario. The
key success story of Titan is capturing the rural market on a large scale. The range costs is
between Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms and is
sold mainly in small-town in India.
Though the company faced enormous challenges from its big list of competitor, the company still
in the number one position in domestic market because of the weakness of the competitor. The
company becomes more reliable and more acceptances to the consumer because of its marketing
mix. The company has adopted the new marketing innovation to improve the feature of the
product by time to time.
Though the current financial environment is not in favor, but the company performing well and
saw an increasing trend in the profit chart.

The company trying hard to convert its weakness into strengths and threats into strengths and
threats into opportunities by bring revolution in the product style, model, features, pricing policy,
product quality, etc.

Companies certain initiatives and policy such as new innovative design, guarantee, the research
and development, wide dealer network, committed service team, discount and offers make the
company.

Introduction
When we talk about the wristwatch brand, remember the only Indian wristwatch market were
so shabby, one more ordinary than other and when the craze for imported watch was not
implemented. That was before the time of titan, a name which brought the revolution in the
Indian wristwatch market.
Titan wristwatch brand is the part of titan industry, which was launched in 1987 by TATA group.
TATA group had indentified the watch category as a potential consumer market for the TATAs to
enter.
Xerxes Desai, a TATA veteran and the MD of TATA Press was elected to that business.
By offering quality products and classic design with advanced technology to the consumers,
Titan made a success story. Outstanding services, wide variety of models and effective marketing
helped Titan to capture the market in its born stage.
The reason behind the success of Titan watches was their research on the Indian consumer
psychological mind. The company today has a model for every price segment and every market,
urban and rural, regional and international.
Titan brought quartz technology first in the Indian market and acquired first place by displacing
HMT into second place, who offers mechanically driven wristwatch.
It also brought a sense of style and design, which is only available in the West or in Japan at that
point of time.

Environmental analysis
A. The marketing environment.
Expectation from the competitor
As we all know that marketing mix is basically consist of 4 ps i. e price,
product, place and promotion.

Price:
Advantage: competitor of mid-price segment will capture the whole
market.

Disadvantage: competitor of premium price segment will enjoy the

more market.

Product:
Advantage: Increased in the quality will increase the cost which will
give benefit to the competitor.
Disadvantage: Quality decrease will help competitor to capture the
whole market.

Place:
Advantage: more number of places of operation will make the
competitor week.
Disadvantage: less number of places of operation will leads to wipe
out from the market.

Promotion:
Advantage: Increase in sales promotion will affect more market
share.
Disadvantage: decrease in sales promotion give benefit to the
competitor.

Industrys Role
As there have many competitor exists in this Industry, the competition is too much. Whenever
any company bring changes in its marketing mix, all the companies also implement changes in
their marketing mix to sustain in the competition. By that the structure of whole industry is
changing and affects the competitive forces in the Industry.

Purchasing power of consumers

BRAND

PURCHASING
POWER (PRICE) RS.
550-1,430
595-1,430

CATEGORY

SPECTRA
ROYAL

650-1,830

COMMON CLASS

960-2,830

RAGA
BANDHAN

1,420-4,000
1,675-8,085

UPPERMIDDLE
CLASS
UPPER CLASS
COUPLES

FAST TRACK
EXCTA

YOUTH
LOWER
MIDDLE
CLASS(Office wear)

REGALIA

EDGE
NUBULA

1,725-7770

UPPER
MIDDLE
CLASS-UPPER CLASS

4,500-5,200

BUSINESS CLASS

10,000-45,000

UPPER CLASS

The companys watch sales grew by 18.8 per cent and its income increasing from Rs255.34 crore
during the second quarter of last year to Rs303.45 crore during the second quarter of this year.
On the basis of the above table and profit figure we easily understand consumer buying power in
target market.

Spending habit of consumers

Despite of high inflation, high oil prices and high volatility in gold prices, watch segment of
Titan Industries doing well in the current fiscal. For these, watch segment sales income increased
from Rs.168.83 crore during the first quarter of last year to Rs.171.89 crore during the
corresponding period this year. These data indicate that consumers spending pattern is
increasing respective target market.
From the above information we can easily understand that consumers buying more of Titan
wristwatch. There are few reasons behind the growth in sales of Titan .They are as follow.

Brand name
Quality of the products
Features ,which differentiate from others
Attractive models
New innovation

Revenues:
1. Significant growth over the past three year.
2. Rs.880 crore sales during the latest financial year (over Rs.1000 crores at retail prices)

PROFIT
* PBT (2005/06)
Rs. 90 Crore
* PBT (2006/07)
Rs. 96 Crores

ROCE
* ROCE (2005/06)
50%
* ROCE (2006/07)
50%

* PBT (2007/08)
Rs. 121 Crores

* ROCE (2007/08)
56%

Legal and regulatory forces

As the titan industries operates their business in the global area ,they have to follow lots of
regulatory norms.
The industry can be directly affected by the certain rules such as change in Taxation rate.

Technological changes
The new marketing innovation can bring a drastically changes in the marketing activities of the
company. The new innovations which can differentiate the company from the competitor are
Implementation of Heart-beat checking system in wrist watch.
Implementation of Blood pressure checking system in the wristwatch
Some companies can come with the watch which help in knowing the mood of the
person.

Sociocultural Forces
Tata believes that improve the quality of the life of people and the employee is the primary
purpose of their business. It uses its resources in the best possible way. They also takes some
reasonably steps to improve the quality of life of the people of the areas in which they operates.
Tata adopt the Corporate Citizenship Index, Tata Business Excellence Model and Tata Index for
Sustainable Development which reflect its commitment to its Corporate Social Responsibility
(CSR). Tata spends 5-7% of its profit after tax on several CSR initiatives.
These CSR initiatives are spread across three core areas, such as employee welfare, the
environment and the welfare of the community at large.

B. Target market
Identification
The titan industry basically deals in three segments for its watches. They were as follow.

High Income/Elite consumers

In this segment mainly the consumer who buys a wrist watch as a fashion accessory.
Middle group:
In this segment mainly consumers like some fashion in their watches. These consumers would
not purchase a watch without comparing various offers in the market.

 Lower-income people:
This segment mainly consisted of lower- income consumers who want watch mainly as the time
keeping device and purchase on the basis of price.

Need Analysis:
Consumers need
The demand and the need vary one market segment to another segment on the basis of prices &
quality.
The current need can be satisfied by the following ways in the different segment.
High class: Titan offered Aurum and Royale in gold watch range .They were stylish
watches in all gold and precious metals.
The price is between Rs.20,000 -1,00,000.
Middle income class: Titan offered the Exacta range in stainless steel. There were
100 different models in the range. The prices ranges are between Rs.500-700.
Lower-income group: Titan offered the Timex watches and later, when the
arrangement with Timex was terminated, the SONATA range.
The prices ranges were Rs.350-500.There was 200 different models in the ranges.

Current Marketing Objectives and Performance:

Review of Marketing Objectives
Current marketing objectives of TATA is to strengthen Indias Industrial base through the proper
utilization of resources like employee and materials. Besides, the company seeks to reach the
height of excellence atmosphere which is free from fear and threat.

Performance AnalysisTitan Industries achieved significant growth during the year ended
2007-08. Watch segment sales also grew by 17.2 per cent to Rs 918.7 crore. All brands of the
company have performed well and new introductions in gents watches, the Raga Crystal for
ladies.Three year overview of income and capital employed:

Income

capital employed

In India 70% of the sales in wristwatches come from the lower segment. So, Titan capture the
market by pricing the Sonata at Rs. 350 onwards. It consist 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.

III. 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 like4. 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

C. 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.

D. 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. As 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: Now a days 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.

IV. Marketing Objectives:

Titan industries in watch holds 70% in Domestic level and 60% in Share in organized sector
market.
Companies the marketing objectives is to increase in market share by 5% .
Before implementing the of marketing strategies we must have to focus on certain things ,which
include the BCG Matrix representation.

Titan industries has registered an Income of Rs.1,104.85 crore as compared to previous year
which was Rs 7,25.11. In all the income the Titan industry had contributed Rs.3,03.45 crore.

Marketing Mix:

PRICE
PRODUCT
PROMOTION
PLACE

Price:
As achieve our marketing our marketing objectives, we can do some change in the pricing .
The main consideration will be in changing price are followings.
A. Survival:
In case of some of the watches titan prices them according to the features .The Exacta is a simple
steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga through
pricing policy.
B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore by pricing
Sonata at 350 onwards with guarantee.
Titan prices its world watches which compared equal to an international players like Calvin
Klien where a customer pays 4 times as value of the world watch, therefore market with low
prices to international players to gain market share.
C. Market Skimming: In Indian watch industry there is no one offering pure gold watches,
watches in pair, jewellery watches. Here Titan offers there product with the Indian touch in its
design, the product, the love.

Product:
Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.
A. Product line: To increase the sales, the difference in the prices of the watches are justified by
the features.
B. Product pyramid: Portfolio of Titans product is of 3 distinct price-range that can be defined
in general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on in volumes

but not in margins. At the premium segment, the emphasis is on profits and image but not in
volumes. Obviously, company giving more emphasis at the top of the pyramid as profits at the
top of the pyramid is very high. This pyramid guided the strategy of Titan.
C. Product strategy: Titan was first focused only on the premium segment of the watch market.
As per the product strategy they took, Titan moved in to the mass market for watches. To widen
base, Titan created new segments and increasingly focusing on segments individually. In the past
few years Titan has took a lot of initiatives to focused on specific segments.
D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve both
through
their
value
for
products
compared
to
their
prices.

Promotion:
Promotional pricing:
A. Marketing pricing: As by opening new shops such as the world of Titan buy
directly from the dealer and hence the element of middleman is not there.
Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they are
able to get the 17% profit margin on sales.
It is managing to successfully convince to the customer of the perceived value of WORLD
WATCH using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.
Price discount and allowances: Every year Titan comes with a price discount sale on the MRP
of the watches. The allowances varies from one segment to another.
B. Creative advertising: Titan introduces a contest on cartoon network in india.com
which invites children to use creativity and design watch.
The prize winning design was launched as a new watch in summer 2002 collection .
Type of advertising: Titan believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Titan watches.
As here we can say that a female actress would be more effective for the promotional purpose. It
can be Katrina Kaif, as now she is one of the popular actress in Bollywood.
C. Promotion on occasion: Titan is one of the company which formally believes in the
policy of promotion the product based on the occasions.

Place:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute its product
and set up world of titan in different region. The consumers life style in India, especially in
urban area(because the turnover in urban area is 210 million, while the turnover in rural area is
90 million) plays a significant role in the success of Titan.
Marketing Implementations:
Marketing plan basically implemented on the basis of market segmentation .
We have gone through the target market segment which basically include
High income class
Middle income class
Lower income class
The marketing mix is the part of marketing strategies ,which help to the company to match the
needs of the consumer as well as the need of company, because we know that MARKETING
IS THE SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED
,DEMAND OF THE CONSUMER AT A PROFIT.
Implementation is an integral part of strategy. It make sense when it is implemented into Indian
jewellery market it saw an opportunity for an organized sector. The customer was moving
towards branded goods in other segments. Titan did the process of creating brands in the minds
of customer.

Budget and control:

It is very important to make a control on Budget to reduce the operating cost which we can
reduce to certain amount by the following ways.
Retailing:
Titan bring in the concept of retailing into the watch market ,which will really help in making
the Direct relation with customer. This will help in reducing the cost of intermediaries.
Advertisements cost:
As for reducing the cost of companies we can take advertisement into consideration. We can
reduce the TV ads cost by reducing the duration of advertisement.