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MARKETING STRATEGY OF TITAN WATCHES

MARKETING STRATEGY OF TITAN WATCHES. 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. MARKETING STRATEGY OF TITAN WATCHES. Marketing environment In 1987

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MARKETING STRATEGY OF TITAN WATCHES

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  1. MARKETING STRATEGY OF TITAN WATCHES

  2. 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

  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

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