Watch Industry And Strategy Of Titan Watches

Watch sedulousness And Strategy Of whale WatchesToday, a wrist come is considered as very much of a status symbol as a craft to tell epoch. The shapees and jewellery has non been immune to the economic climate and the completely industriousness suffered in late 2008 and in 2009 as consumer confidence reduce and pack became more than cautious about their spending.The over all(prenominal) jewellery and surveyes mart grew by 10% since 2005 to flip 4.8 billion in 2010 and Mintel forecasts 11% produce for the jewellery and watches merchandise over succeeding(prenominal) five years.2011 is too red ink to be the year to invest in mens jewellery. Stephen Webster presented a strong berth for mens jewellery at IJL in September 2010, and assuming antheral customer besides want watches and the odd signet or chain could lead to lose out on a po hug drugtial wealth of customer. Its not that male customers dont want it they just dont k without delay they want it.Men bent li ke women and theyre not used to thinking about what to wear, explain Webster. But once a man is bejewelled, theres no looking back. They samely dont wait for special occasion like woman do, and they keister go from zero to jewellery dowerizan in no time.Market research comp some(prenominal) Mintels September 2010 deal Watches and jewellery Retailing UK tack that 20% of male respondent verbalize they like receiving jewellery as a gift, and 12% said that they had purchased all of their own jewellery. So the securities industry is clearly there to be exploited.http//www.retail-jeweller.com/trends/in-with-the- overbold-sprung(prenominal)-2011-trends/5020089.articleRocketing property prices and recession acquire led umteen consumers to buy silver jewellery instead of gold, with al just about virtuoso in five people wearying more silver jewellery than gold, rise to nearly three in ten women particularly young people aged 15 24.The affordability and disposability of legion (predicate) costume jewellery items means that customers argon more willing to test and try new looks without denting their bank balancesYoung men aged under(a)- 35 atomic number 18 more open to paying higher amounts for a watch as they typically do not wear jewellery to read their individuality or consumer spending power. virtually 86% of consumers wear a watch, further nearly 40% only a new one when their old one is broken. Converging the watchs main break down with health benefits would be one way of answering create new reasons for purchase.http//oxygen.mintel.com/sinatra/oxygen/ let out/id=479809Executive Summaryhttps//www.keynote.co.uk/ foodstuffplace-intelligence/view/ convergence/10331/chapter/0Many Brands and companies are constantly reinvigorating their bank linees and positioning them for growth. There is a constant indispensability to enter, reinvigorate, update, recalibrate, or just simply fend off the competition in an safari to better explain ,why buy me. In the martplace for the mug and product offerings is created by positioning. It reaches a certain type of consumers and delivers benefits that meet the subscribes of some(prenominal) key target groups and users.Actual Approach of a company or stigmatizes positioning in the tradeplace depends on how it communicates the benefits and product attributes to consumers and users. As a result positioning of a company and/or product seeks to barely distance itself from competitors based on a host of items, but most notably on five key issues Price, Quality, Product Attributes, Distribution, and Usage Occasions.In recent times, consumerism has undergone a sea flip. Consumers straightaway are well sure about the products, as compared to earlier times. Hence, the securities industry has aim customer centric. Recognizing the sizeableness of the customer is business structure companies flip started effecting marque tilt exemplar on regular basis.In the recent times, a major b lot displace custom has been planned by Titian Industries Ltd in order to picture more to its customers. The company has its new position. This study will help to study the revived positioning strategies of TITAN watches. An analysis of computer memorying strategies of whale excessively forms of the study.Firstly it is importationant to understand the overall wrist watch industry in UK. Secondly to study the filth positioning and re-positioning schema of monster wrist watches and to find out whether the loyal consumers of TITAN watches aware of the new positioning strategies of the company and how they perceive them.To study primary and cooperateary selective information progress to been used. Analysis UK wrist watch industry and send reposition strategies of TITAN order has been analysed and completed on the basis of secondary data. Internet, journals, books and magazines throw been used for this purpose.Project comprises conducting a questionnaire keep up. (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = professedly scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Introduction1.1 Theory and conceptsA business has twain and only two basic functions marketing and foundation shaft DruckerTo maintain business relevance and market position, it is classic to ceaselessly innovate and invent brand trope in the market to pace with mixed bag and intense warring pressure in the marketplace.In this context, brand reposition and other revitalization strategies claim become a business unconditional for battling brand erosion. The appeal of brand reposition is further heightened by the rising costs and high lay on the line associated with launching a new brand. increase in the cost and high risk related with launching a new brand that is a part of brand reposition.B rand reposition has stock very importance in the marketing literature and mostly been do by as a variation of brand positioning.Reposition cornerstone be required as the market inter departs and new opportunities occur. In order to reach the customer which was never targeted at first off go off also be targeted with brand reposition. In order to change its image in the market it is important to focus towards brand reposition, although it is one of the toughest and hardest actions in marketing to reposition a familiar brand. concord to Solomon, position strategy is an essential part in the marketing efforts because companies have to use the elements in the marketing mess up to influence the customers discretion the position. There has to be several choices to be, so to as to be in more cute and relevant position. It is important for the person who is reposition for the reposition to know and understand why reposition is needful and its need, and if the offer is the one tha t will change or just the brand name. While move it is important to undertake and understand all the risk factors that is likely to affect it in the market.A company risks its credibility and currentness more while dislodge its brand in the market and the need for a thorough strategy is very important to avoid any occurrence. Some analyst argues that to successfully reposition a established brand name is almost impossible because repositioning of a brand can make the most loyal customer to switch brand. If the brand is gnaw then brand reposition becomes important.Numerous exertions to reposition brand in the market may fail which is testified by many company for exemplar while soft drink has successfully been able to connect with the early days though they exist for 40 years in the market but at the same Levis, jeans has been losing its market share to newcomers such(prenominal) as The open despite numerous campaigns designed to reposition the brand trend.1.2 Literature in spectionThe reposition strategy is defined into three stages that isIntroductoryElaboration strongholdThis involves the introduction of a new or a repositioned brand, seeking underscore the brands value over others, and to broaden the brand position. It is truly hard to change the customers perceived attitude towards a brand, and therefore the risk is great that the attempt to repositioning might fail.After rolling out the strategy, it is time to transform the proposition through update of the personality and through repositioning. There pros and cons with twain of this segments and it is great significance that they are truly calculate when deciding the next step in the process. To understand it more deeplyhttp//htmlimg4.scribdassets.com/55f3acalz4nfgla/images/10-81b5e3fa9c/000.jpgFigure 1 Stages in brand strategy development.When a company modifies or change something that is already there in the market established in the bear in mind of the customer that is called as repositi oning.Different profession and individuals have different inwardness and understanding towards Repositioning. There are a few(prenominal) different definitions and great understanding about this conceptRepositioning is a change, principally about triggering the vision, commission and value in a new education that is more suit f or the brand in the future- Brand manager consultant.Principally, reposition concerns changing the consumers perception of the brand PR consultant.Repositioning is built upon the change of unique and differentiated tie-ins with the brand in some kind of direction it is about having a balance surrounded by the category party and distinction when using reposition strategies (Leading Brand strategies)From these definitions, it is obvious that reposition is about travel something to more attractive and relevant position. Reposition direction is often contumacious as to what a company wants to achieve. There is also a evident relation between price a nd quantity aspects. When a company perceives the market as a demand curve, the purpose is to down stretch or upward curve. When moving up and there is a need for arrival the premium segment and expand up wards.Figure The principle of reposition.When stress towards a new position in the market, it is important to understand those consumers are limited. Peoples minds select what to remember and it is important to convince the consumers with greater arguments. The market everlastingly strive for change which is rapid and therefore repositioning can be necessary to meet these demands, newer and stronger arguments have to be established to convinced them to hinderance as loyal customers.As repositioning is a very mixed matter and therefore there are no detailed theories or shams. Aim for repositioning is different for different person, and the only connection between all the different theories is that repositioning is moving something from somewhere towards a greater position at t he market.Corstjens and Doyle (1989) identified three types of repositioning strategiesZero repositioning, which is not a repositioning at all since the firm maintains its initial strategy in the face of a changing environment.Gradual repositioning, where the firm performs incremental, continuous adjustments to its positioning strategy to reflect the evolution of its environment andRadical repositioning that corresponds to a discontinuous shift towards a new target market and /or a new competitive advantage.After learning the repositioning of several brands from the UK market, the following 8 types of repositioning have been identified. These are change magnitude relevance to the consumerIncreasing occasions for useMaking the brand weightyFalling gross revenueBringing in new customersMaking the rand coetaneousDifferentiate from other brandsChanged market conditionsA four phased brand repositioning approach can be followed to achieve the intend benfits-Phase I. find the current s tatus of the brandPhase II. What does the brand stand for today?Phase III. Developing the brand positioning platformsPhase IV. Refining the brand attitude and Management PresentationThe advantages that can be derived from brand repositioning exercises can be summarized asValue over othersUpdated personality germane(predicate) positionThe risks associated with such strategies areLoss of focusNeglecting original customersLosing credibility for the brandConfusing the brandTherefore, brand repositioning is more elusive than initially positioning a brand because one must first help the customer UNLEARN the current brand positioningThis can be done byCarefully crafted communicationNew products, promotional materialAssociations with other brands ( co- branding, co- marketing, ingredient branding, strategic alliances, etc) that reinforce the new brand positioning.This exercise is so critical to an organizations success that the organizations and its marketing/brand management draw shoul d develop it, preferably with the help and facilitation of an outside brand positioning expert. look Methodology2.1 ObjectivesTo study the current scenario of UK wrist watch industry.To review the brand positioning strategies of different sub-brands of watches.To analyze the brand repositioning strategies of watches.To study consumer sensation and perception about the brand repositioning strategies of watches.This study will help to understand the gap in its communication strategy regarding brand repositioning exercises and the further measures to be taken for effective marketing communications.2.2 LimitationsThe study is control to London area onlyThere is possibility of sampling errors in the studyThe responses of the consumers may not be genuineQuestionnaire may not be comprehensive2.3 Sources of Data CollectionThe relevant data was equanimous from both primary sources and secondary sources. The starting point of my information conference has been the secondary sources such as internet, books, and journals and so on.Firstly, brand positioning and repositioning strategies of titan, secondary sources such as internet, insurance magazines, and journals and so on. Then I conducted a consumer knowingness survey on brand repositioning strategies undertaken by Titan watches in recent times.2.4 SamplingTo conduct sampling of 50 loyal consumers of Titan and in the age group of 20 30 years for this study. Since Titan has taken up brand repositioning strategies since January 2011, consumers who have seen the previous and new campaigns have been targeted.2.5 Primary dataData was sedate through an interview schedule, consisting of both open ended and closed ended questions. It consisted of the parameters like reasons consumers brand preference, re assembling of earlier tagline and advertisement, brand ambassador of Titan awareness of new tagline and campaign featuring sportsmen and actors from International body and so on. The data was collected through e-mails, telephone contacts and one to one personal interviews.Industry OverviewUK Watch industryMarket report examines the UK jewellery and watches market, total sales of jewellery and watches in the UK fluctuated between 2004 and 2008, and fell by 2.8% in the latter(prenominal) year to finish the review period at 4.33 billion.The declining sales in 2008 can be largely attributed to the global economic downturn and UK recession, which have had a negative impact on nearly all industries.Initially, the sumptuosity end of the market was relatively unaffected by the downturn, but by the end of 2008 and 2009, it had begun to take effect.The jewellery and Watches market has become increasingly competitive in recent years. Although the industry has always been fragmented with a good range of suppliers and retailers, developments in online retailing have contributed to it becoming increasingly gauze-like for information on pricing and availability. This has been a positive trend, curiously for many smaller brands that previously were not able to deal directly with consumers. Some larger retailers, as well as a few independents, have also developed transactional sites to deal with this demand.With around a third of the UK cosmos owning a piece of precious jewellery and nearly in ten owning a watch, products have a high rate of consumer penetration.The downturn in the UK economy is unlikely to show reversal in 2009, and this will treat to affect all areas of consumer spending.It seems the concepts of a wrist watch have become that of a status symbol rather than a practical chronometer. According to a survey that suggest one in seven people in the UK has no need for watch, apart from as a sort accessory.Gadgets such as iPods, laptops and mobile phone, represent threat to the watch industry, survey conducted by Mintel.Even in the age of iPhones, people spend commodious amount of money on a quality time piece, with high-end brands such as Rolex and Tag Heuer adorning bli nged up wrist of rappers, bankers and fashionistas alike.http//www.wharf.co.uk/2010/11/why-wrist-watches-are-dialling.htmlSWOT abstract OF THE UK WATCH INDUSTRYStrengthsWatch industry is growing industry which smart rateAs the population is rising, the watch market is also expandingCustomers are not very price sensitive as far as quality watch is concernedWeaknessThere is not much advertising done by watch industryNo innovation in productsThere are few number of exclusive showrooms that reduces the consumers availableness to the productThere are few marketers, who are concentrated only upon a particular niche segment (Tag Heuer )OpportunitiesThere is more need of fashionable luxury watch and fine luxury watch brands that can be targeted in UK, as customers are more like trendsetter and fashionable.UK especially London is a metropolitan city which makes it more attractive for the new company.Youth are more brand conscious than their predecessors. That leads to the expansion of the market for branded watches.ThreatsThere are many foreign players entering in the raceToo many players will dilute the market and the earn margin.Mobile phones acting as substitutes of the watches.The Indian watch industry began in the year 1961 with the commissioning of the watch division of Titan. The first watch model manufacture by HMT was the Janata model in the year 1962. HMT was the leader in the watch market till the Tatas formed Titan watches in association with Tamil Nadu Industrial Development Corporation in the year 1987. They took a major strategy decision, which later changed the face of the Indian watch market to manufacture only quartz watches. Liberalisation in 1992 and removal of numeric restrictions due to WTO has opened the doors for many the Indian market viz. Tissot, Swatch, Omega, Rado, TAGHeuer. The import duties on watches are falling which makes the Indian market look attractive for the global majors like Casio, Swatch and Citizen.Company ProfileOverviewT itan is the largest watch company in India and the sixth largest in the macrocosm. Titan manufactures over 7 million watches per annum and has a customer base over 65 million.An industry was established in 1984 as a joint venture between the Tata multitude and the Tamil Nadu Industrial Development Corporation. The company brought the shift in the Indian watch market, offering quartz technology with International styling, manufactured in a state-of-the art factory at Hosur, Tamil Nadu. supplement its understanding of different segments in the watch market, the company launched a second independent watch brand Sonata, as a value brand to those seeking buy functionally styled watches at affordable prices. In sum it focused on the youth with its third brand fastrack.In two decades the company has built an impressive watch business to become Indias largest manufacturing business and the worlds sixth manufacturer of watches. This has mainly been achieved by developing a dangerous di stribution network. The company has amongst the worlds largest retail chain of exclusive retail showrooms for watches called The world of Titan spread over 100 towns.It also has multi brand outlets named sequence Zone, service centers and dealer outlets. Globally Titan has a presence in over 30 countries through its marketing subsidiaries.The company has watch aggregation plants at Dehradun (UP) and Baddi ( Himachal Pradesh) and a plant manufacturing electronic circuit boards in Goa.The majority stake in the company is held by the promoters, with Tidco having 28 percent of the shares and Tata Group companies owning 25 percent of the shares. Public holding in the company is around 28 per cent. The rest of the stake is held by foreign institutions, non resident Indians, correlative funds and other institutions.It has also premium fashion watches by acquiring a license for global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made w atch brand Xylys.1995, the company modify into jewellery under the brand Tanishq to capitalize on fragmented market operating with no brands in urban cities. In 2005, the launched its second Jewellery brand, GoldPlus, for capitalizing on the opportunity in small towns and rural India.The company has now diversified into fashion Eyewear by launching Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear.TITAN WATCHES BRAND POSITIONING STRATEGIESOverall strategiesSince its introduction, Titan has been positioned as a premium brand, providing high quality products. Titan is struggling to have a strong brand image in UK market due to its numerous sub-brands that caters to different segments in India. It follows different positioning strategies these strategies can also be analyzed as given belowAttribute statusWhen the company launched its products, it was the first to bring quartz watches to Indian market. The company successfully leveraged this to penetrate the market. Raga , Classique and Regalia come under this strategy. Classique positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Regalia ranger represents the elegant-wear. Raga has been differentiate and positioned as exclusive watch. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece truly unique.User PositioningTitan caters to several user groups children (the Dash), sportspersons and adventurers. The fastrack range is seen as being contemporary, reliable and sturdy. The advertising, packaging and merchandising of this range is young, cool and vibrant.Benefit PositioningTitan seeks to differentiate its offering on the basis of superior style and attractive force which is offered by fastrack Digital range.Competitors PositioningWith the entry of several foreign watchmakers into the market, Titan had to encounter the threat. Most the entrants are catering to the upper end of the market Om ega, Cartier etc.Quality or Price PositioningIn the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as value-for-money (less than Swiss watches and higher than Japanese), attractively styled and of good quality.TITAN WATCHES BRAND RE-POSITIONING STRATEGIES FOR globalisationTitan has managed to get fair market in Middle easterly and Africa but its failure in Europe was a downturn for the Company as the return was not as good as investiture made for the expansion. Titan has decided to revamp its flagship watch brand in Europe mainly in UK. Titan wants to reposition it more immature and relevant to the changing times.Titan has entered the International markets in 1989 through the trade of watch movements. Titans first global footprint was placed in the UAE the largest market in the Middle East then it moved towards Egypt, Oman, Saudi Arabia and few markets in Africa. Though it faced strong competition, it reac hed the sales of 100,000 watches within a year of its launch. It started to move globally and moves towards Sri Lanka, Bangladesh, Maldives and Nepal.After its extensive survey, it concluded that it ask good reason to stock the brand. Titan needs to re-position its brand image in the UK market. And so Titan decided to against soft option of hotheaded its globalization through private label exports. It would launch its product under its own brand with market positioning Therefore Titan found a massive advertising campaign to create brand awareness. It also participated in the fair which showcases the worlds biggest watch brand in the world.http//www.moodiereport.com/images/luxury_watch_tables_jan10_04.jpghttp//www.moodiereport.com/images/luxury_watch_tables_jan10_05.jpgCONCLUSIONThe suggestions to alter consumer awareness about brand repositioning strategy of Titan are as followsTo increase its visibility, Titan Company can sponsor events similar to fashion shows which all latest designs launched are displayed. This is important as it has a great effect on different segments of the customers in different ways.It is important to have Tie up with radio channels and television to commit and telecast its advertisement about various sales promotion from time to time.RD needs more investment as customer expectations are changing rapidly. It should focus more on introducing more varieties and luxury items in the market at regular interval.Introduce exclusive collection for working women which is more contemporary and complements any fashion styles.Tie up with international watch brands to make the product stronger in the market.To use internet to spread awareness among consumer about the brand. (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )()