Titan Watches Project Report

8/10/2019 Titan Watches Project Report

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SYNOPSIS APPROVAL FORM

Date of Submission : September 30th, 2014

Name of Student : Rutesh. Singh

Roll No : 013030

Specialiation : !ar"eting

#itle of the $ro%ect : &REPOSITIONING STRATEGY OF TITAN

WATCHES

Name of 'uide : Dr.'agandeep Nagra

Signature of 'uide:

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DECLARATION

I hereby declare ha he REPOSITIONING STRATEGY OF TITAN

WATCHES !"b#$ed %&r he M'A De(ree a Dr) D)Y) Pa$l

*+$,er!$y-! De.ar#e+ &% '"!$+e!! Ma+a(e#e+ $! #y &r$($+al /&r0

a+d he d$!!era$&+ ha! +& %&r#ed he ba!$! %&r he a/ard &% a+y

de(ree1 a!!&c$ae !h$.1 %ell&/!h$. &r a+y &her !$#$lar $le!)

Place2

Dae2

S$(+a"re &% he S"de+

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CERTIFICATE

Th$! $! & cer$%y ha he d$!!era$&+ REPOSITIONING STRATEGY

OF TITAN WATCHES1 e+$led $! he b&+a%$de re!earch /&r0 carr$ed

&" by M!)DISHA 3ATARIA !"de+ &% M'A1 a Dr) D)Y) Pa$l

*+$,er!$y-! De.ar#e+ &% '"!$+e!! Ma+a(e#e+ d"r$+( he year 45678

45691 $+ .ar$al %"l%$ll#e+ &% he re:"$re#e+! %&r he a/ard &% he

De(ree &% Ma!er $+ '"!$+e!! Ma+a(e#e+ a+d ha he d$!!era$&+ ha!

+& %&r#ed he ba!$! %&r he a/ard .re,$&"!ly &% a+y de(ree1 d$.la1

a!!&c$ae!h$.1 %ell&/!h$. &r a+y &her !$#$lar $le)

;Dr) R) G&.al1 ;Dr)Ga(a+dee.)Na(ra1

D$rec&r1 Pr&


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AC3NOWLEDGEMENTS

I+ he %$r! .lace1 I ha+0 he Dr) D) Y) Pa$l *+$,er!$y1 De.ar#e+ &%

'"!$+e!! Ma+a(e#e+1 Na,$ M"#ba$ %&r ($,$+( #e a+ &..&r"+$y & /&r0 &+

h$! .r&


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PREFACE

#oda), a *rist*atch is considered as much of a status s)mbol as a de+ice to tell time. nan age *hen cell phones and digital pagers displa) tin) -uart cloc"s, the mechanical *rist*atch

has slo*l) become less of an ob%ect of function and more a piece of modern culture.

#he ndian *atch industr) began in the )ear 1/1 *ith the commissioning of the *atch di+ision

of !#. #he first *atch model manufactured b) !# *as the anata model in the )ear1/2. !# *as the leader in the *atch mar"et till the #atas formed #itan atches in

association *ith #amil Nadu ndustrial De+elopment orporation in the )ear 156. #itan

*as the first compan) to launch -uart *atches in ndia.

#he ndian *atch mar"et is toda) of 40 million units, out of *hich /07 is in the unorganied

sector in *hich the ma8imum number of *atches are sold are belo* Rs.300. 9uart*atches form t*o third of the organied sector and the rest is split bet*een mechanical and

digital *atches. +en in the organied sector, three fourth of the sales b) +olume comes from*atches that are priced belo* Rs.1000.

atch is one of the consumer durables *hose replacement rate is +er) high. #he replacement

rate of *atch is 33.5 7; Source: ndia mar"et demographics report, 15


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INDE?-h&)ter No Tite *&ge

No

A 2ist of T&bes

B 2ist of Figures

- 2ist of Abbre,i&tions

E3e'uti,e Summ&ry

# Introdu'tion

/ Re,ie4 of 2iter&ture

$ Ob5e'ti,e of the Study

0 Rese&r'h Methodoogy

6 Industry O,er,ie4

5.1 History

5.2 Porters five forces

5.3 Segmentation, Targeting & Positioning

5.4 BCG matrix

5.5 nsoff !o"e#

7 -om)&ny *rofie

$.1 %ntro"ction

$.2 Pro"ct

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8 Tit&n 9&t'hes:Br&nd

*ositioning Str&tegy

'.1 Strategies

'.2 Bran" Positioning

'.3 S()T na#yses

'.4 Pricing Strategy

'.5 *istri+tion Strategy

*robem Identifi'&tion

; Atern&ti,es

#" -onsumer A4&reness

Sur,ey

## -on'usion

#/ Referen'e Se'tion

12.1 estionnaire

12.2 Bi+#iogra-y

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E@ec"$,e S"##ary

!an) brands and companies are constantl) rein+igorating their businesses and positioning

them for gro*th. #here is a constant need to inno+ate, rein+igorate, update, recalibrate, or %ustsimpl) fend off the competition in an effort to better e8plain @*h) bu) me.@

?rand positioning creates a specific place in the mar"et for the brand and product

offerings. t reaches a certain t)pe of consumers and deli+ers benefits that meet the needs of

se+eral "e) target groups and users.

#he actual approach of a compan) or brandAs positioning in the mar"etplace depends on ho* it

communicates the benefits and product attributes to consumers and users. =s a result, the brand

positioning of a compan) andBor product see"s to further distance itself from competitors basedon a host of items, but most notabl) on fi+e "e) issues: $rice, 9ualit), $roduct =ttributes,Distribution, and Csage ccasions.

n recent times, consumerism has undergone a sea change. onsumers toda) are *ell

informed about the products, as compared to earlier times. ence, the mar"etplace has becomecustomer centric. Recogniing the importance of the customers in the business structure,

companies ha+e started effecting brand repositioning e8ercises on a regular basis.

n the recent times, a ma%or brand repositioning e8ercise has been planned b) #itan ndustries

>td. in order to pro+ide more to its customers. #he compan) has first gone for change in logoand tagline. #hen the communication strateg) has been re+amped to con+e) its ne*

position. #he present stud) consists of re+ie*ing the positioning strategies of #itan

*atches. =n anal)sis of repositioning strategies of #itan also forms part of the stud).

#he main ob%ecti+e of the stud) is to broadl) understand the o+erall brand positioningand reEpositioning strateg) of #itan *rist *atches and to find out *hether the lo)al consumers of

titan *atches are a*are of the ne* positioning strategies of the compan) and ho* the) percei+e

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Theory & Concept"A business has two - and only two - basic functions: marketing andinnovation." -eter !rucker

#he rapid pace of change and intense competiti+e pressure in toda)As mar"etplace demand

that brands continuousl) inno+ate and rein+ent themsel+es to maintain their rele+ance and

mar"et position. n this conte8t, brand repositioning and other re+italiation strategies ha+e

become a business imperati+e for battling brand erosion. #he appeal of brand repositioning is

further heightened b) the rising costs and high ris" associated *ith launching a ne* brand.

?rand repositioning has recei+ed little attention in the mar"eting literature and has mostl) been

treated as a +ariation of brand positioning. ?iel, for e8ample, has defined brand positioning as

@building ;or rebuilding< an image for a brand@. #he goal of positioning and repositioning

strategies relates to the management of consumersA perceptions.

o*e+er, positioning focuses on the creation of brand associations E consumersA

perceptions of the attributes that differentiate the brand from competiti+e offers F *hile

repositioning also implies managing e8isting brand associations. #he uni-ue challenge of a

repositioning strateg), thus, lies in re%u+enating the brand image to ma"e it rele+ant in an

e+ol+ing en+ironment, *hile honoring the brand e-uit) heritage.

Repositioning can be re-uired as the mar"et changes and ne* opportunities occur. #hrough

repositioning the compan) can reach customers the) ne+er intended to reach in the first place. f

a brand has been established at the mar"et for some time and *ish to change their image the) can

consider repositioning, although one of the hardest actions in mar"eting is to reposition a

familiar brand.

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=ccording to Solomon, position strateg) is an essential part in the mar"eting efforts because

companies ha+e to use the elements in the mar"eting mi8 to influence the customers

understanding of the position. During the mo+ement from something less attracti+e andrele+ant to*ards a more attracti+e and rele+ant position se+eral of strategic choices has to be

made. #he ones responsible for the repositioning ha+e to e+aluate *h) a reposition is

necessar), and if the offer is the one that *ill change or %ust the brand name. #here are se+eral

ris" factors that ha+e to be ta"en into consideration *hen preparing for a repositioning of the

offering or the brand.

During repositioning, the ris" of losing the credibilit) and reliabilit) is high and the need for a

thorough strateg) is therefore necessar) to a+oid this occurrence. Some anal)st argue that to

successfull) reposition a establish brand name is almost impossible because repositioning of a

brand can ma"e the most lo)al customer to s*itch brand. ?ut, in some circumstances a

repositioning is necessar) to gain credibilit) if the brand is eroded.

hene+er a reposition is in -uestion it has to be of rele+ance from a customer perspecti+e, is this

achie+ableG Some brands *ill on no account be thought on as a lu8ur) brand and therefore an

attempt to reposition *ill onl) damage the brand image or the actual compan).

Numerous failed attempts at brand repositioning testif) to the difficult) of de+eloping and

implementing such a tactic. Hor e8ample, *hile the soft drin" brand, !ountain De* has

remained rele+ant to the )outh mar"et through continuous repositioning in its thirt) )ears

of e8istence, >e+isA eans has been losing mar"et share to ne*comers such as #he 'ap,

despite numerous campaigns designed to reposition the brand as trend).

#he strategic importance of brand repositioning in preser+ing and enhancing brand e-uit),

coupled *ith the mi8ed results of repositioning attempts, underscores the need to de+elop a

better understanding of the d)namics of brand repositioning. Specificall), -uestions of *hether,

*hen and ho* brands should be repositioned need to be addressed.

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L$era"re Re,$e/

#he repositioning strateg) *ill be rolled out in three stages: introductor), elaboration and

fortification stages. #his in+ol+es the introduction of a ne* or a repositioned brand,see"ing to underline the brands +alue o+er others, and to broaden the brand proposition. t

is trul) tough to change the customers percei+ed attitude to*ards a brand, and therefore the

ris" is great that the attempt to repositioning might be unsuccessful.

=fter rolling out the strateg), it is time to modif) the proposition through update of the

personalit) and through repositioning. #here are benefits and ris"s *ith both of this segmentsand it is of great significance that the) are trul) e+aluated *hen deciding the ne8t step in

the process.

#he implication *ith the termI repositioningI is that a compan) modifies something thatis alread) present in the mar"et and in the consumers mind. #he definition of

repositioning changes different indi+iduals and professions. &Repositioning is built upon the

change of uni-ue and differentiated associations *ith the brand in some "ind of direction, it isabout ha+ing a balance bet*een the categor) part) and differentiation *hen using reposition

strategiesI ;#itan brand strategisto* ; 1 la"h< : Sonata,

>o*er !iddle ;1 to 2.( la"hs< : Hast trac", Regalia,

!iddle;2.( la"hs to 4 la"hs < : Steel, Hast trac" >adies, Raga

Cpper !iddle; 4 to / la"hs< : Nebula, dge, Steel.

igh ; =bo+e 6 la"hs< : Nebula, )lus, ?andhan, nsigna

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Ge+era$&+ 2

'eneration pla)s a ma%or role in segmenting mar"ets. +er) generation is deepl) influenced b)

+arious acti+ities. Such influences deepl) impact their product purchase pattern.

TITAN PERSPECTIVE

#itan has man) products to satisf) all the generations. =nd through constant inno+ation #itan

de+eloped man) products for ne* generations too.

Ne* 'eneration : Hast #rac", #echnolog), Hlip

ld 'eneration : Sonata

S&c$al Cla!! :

Social lass segmentation is influenced b) customer choices of automobiles, interior decoration,

clothing preferences etc. #he tastes and preferences of the social class also change according to

time.

TITAN PERSPECTIVE

#itan has realied the demand of the societ) and has mar"eted its products for each of the

follo*ing social strata.

F$r! !e(#e+2 Hashion statement :#hese products ha+e specialties li"e uropeanleather, sapphire cr)stal, scratch resistant, crafted *ith 15 ct. solid gold M inlaid *ith

precious stones.

8ample: Hast #rac", Ro)ale, =urum, Nebula

Sec&+d Se(#e+2Hor this segment also, *atch is all about fashion but price doesmatter to them. #hese products ha+e digital technolog) M of trend) shapes. =l*a)s

splash oomph on to )our *ard robes and smear danger on )our loo".

n this range, #itan has : Raga, #echnolog), Hast #rac" etc.

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Th$rd !e(#e+2Hor this segment, *atch is %ust an de+ice to sho* the time. #he)in+est after a lot of thoughts. n this categor), #itan has Sonata, Oarishma.

P!ych&(ra.h$c 2

?u)ers are di+ided into different groups based on personalit), +alues, belief, lifest)le,

moti+ation, etc. $eople *ithin the same demographic group can e8hibit +er) different

ps)chographic profiles.

L$%e!yle 2

$eople generall) e8hibit different lifest)le depending upon their income, social group etc. $eopleusuall) bu) the product *hich suit their lifest)le

TITAN PERSPECTIVE

=ccording to the life st)le of people #itan has segmented its product to fit the bo8. >i"e in the

lu8ur) section it has Nebula, =urum etc. n the midEpremium section Raga, 'old ESteel,

#echnolog) etc. =nd in the mass section, it has Sonata, and Oarishma.

Per!&+al$y 2

!ar"eters can use personalit) +ariables to segment mar"ets. #he) endo* their products *ith

brand personalities that correspond to consumer personalities

TITAN PERSPECTIVE

#itan ad+ertises its products b) portra)ing mo+ie stars as user of its products and it offers a lot ofoption to its customers.

#he four groups *ith higher resources are:

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1. nno+ator

nsignalia, =utomatic$eople *ho are sophisticated, ha+e niche oriented products, and are

+er) high on self esteem, desires for these "inds of *atches. #hese *atches are inspired b)architecture and engineered in steel, this is a *atch crafted for Pta"e charge people.

2. #hin"ers

Steel, rion.Cnder this categor) people are matured enough and tr) to find out the

functionalit) in the goods. #hese products are "no*n for their durabilit), Hunctionalit) and

Lalue in products.

3. =chie+ers)lus, dge, ?andhan. n this categor) titan has tried to fulfil the desires of those people

*ho are focused on famil) and career. =ll these three models come under this categor) tosatisf) the re-uirement of a premium product.

#he four in the lo*er resource are:

1.?elie+ers

Raga,erritage=ll those *ho ha+e a +er) conser+ati+e "ind of thin"ing process people fall

into this group. #hese people are traditional and con+entional , so the) dont *ant toe8periment more and are stic"ing to the traditional things. .

2.Stri+ers

Nebula#itan has designed this product for those *ho are trend) and fun lo+ing and resource

constrained . ere the nebula is made up of 15" gold and precious stones. 3.

3. !a"ers

Sonata,Dash, Joop, Ro)le,#hese models suits those *ho are humble and do*n to earth "ind

of people. #he) are not too much bothered about the fashion and other aspects of the *atch,

but he functionalit) of the *atch. 4.

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4.Sur+i+ors

Steel, Hlora>astl) in this categor) those people *ho are elderl) and *ho are lo)al to their

fa+ourite brand are included. #his catered to all "ind of people but al*a)s been the fa+ourite

of the elderl) people and those *ho dont *ant to change their preferences.

'eha,$&ral

rganiations can di+ide mar"ets on the basis of beha+ior that consumer sho*s to*ards the

usage of the products. Larious +ariables for segmenting mar"et on the basis of purchasebeha+ior of customers are occasions, benefits, user status, usage rate, lo)alt), etc.

Occa!$&+! 2

!ar"ets can be classified on the basis of +arious occasions that customers encounter becausepeople need different products for different occasions.

TITAN PERSPECTIVE

#itan also offers occasion specific products li"e Hormal ;Nebulla, Steel, Raga, 'old M SteelDI SRL N#R in 164 to*ns.

t pro+ides a huge product range to choose from.

ts products ha+e good life c)cle.

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TANISH

De#&(ra.h$c !e(#e+a$&+ 2

A(e a+d l$%e cycle !a(e 2

TITAN PERSPECTIVE

#itan mar"ets its products for all follo*ing age groups:

o 'e/ee+ 6B8 45 2Design =ccolades, Hashion arrings,?angles of ndia, Solo, Dais),$ahelib! DN#H=#N

o +erlapping of sub brands

o ompetitors entering mid price mar"et range ;RS 1(00E3(00

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Titan Watches Project Report