Watch Industry And Strategy Of Titan Watches

vigil Industry And Strategy Of hulk WatchesToday, a wrist date is considered as oftentimes of a posture symbol as a device to tell time. The correspondes and je hygienicery has not been immune to the economic climate and the whole industry suffered in late 2008 and in 2009 as consumer confidence fell and mass became more(prenominal)(prenominal) cautious ab break their spending.The overall jewellery and watches commercialize grew by 10% since 2005 to cave in 4.8 billion in 2010 and Mintel forecasts 11% growth for the jewellery and watches commercialize over next five years.2011 is overly going to be the year to invest in mens jewellery. Stephen Webster presented a stiff case for mens jewellery at IJL in September 2010, and assuming male node only want watches and the odd signet or kitchen stove could lead to missing out on a potential wealth of customer. Its not that male customers dont want it they just dont know they want it.Men bent same women and theyre not us ed to thinking about(predicate) what to wear, explain Webster. But once a man is bejewelled, theres no looking back. They also dont wait for special cause like woman do, and they can go from zero to jewellery enthusiast in no time.Market research familiarity Mintels September 2010 report Watches and jewelry Retailing UK found that 20% of male respondent said they like receiving jewellery as a gift, and 12% said that they had purchased all of their own jewellery. So the market is clearly there to be exploited.http//www.retail-jeweller.com/trends/in-with-the- unfermented-2011-trends/5020089.articleRocketing gold prices and recession impoverishment led many a(prenominal) consumers to buy silver jewellery instead of gold, with almost star in five people wearing more silver jewellery than gold, rising to nearly three in ten women particularly young people seasond 15 24.The affordability and disposability of many embodyume jewellery items means that customers are more willing t o experiment and try new looks without denting their bank balancesYoung men aged on a lower floor- 35 are more open to paying high amounts for a watch as they typically do not wear jewellery to express their individuality or consumer spending power.Some 86% of consumers wear a watch, but nearly 40% only a new adept when their old one is broken. Converging the watchs main function with health benefits would be one way of friending create new reasons for purchase.http//oxygen.mintel.com/sinatra/oxygen/display/id=479809 decision maker Summaryhttps//www.keynote.co.uk/market-intelligence/view/ result/10331/chapter/0Many Brands and companies are constantly reinvigorating their businesses and positioning them for growth. There is a constant need to innovate, reinvigorate, modify, recalibrate, or just scoopfully fend off the competition in an effort to better explain ,why buy me.In the market for the marque and product stick outings is created by positioning. It reaches a indisputa ble type of consumers and delivers benefits that meet the of necessity of several key target separates and users.Actual Approach of a lodge or marques positioning in the marketplace 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 further distance itself from competitors based on a entertain 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 diverge. Consumers today are well informed about the products, as compared to earlier times. Hence, the market has become customer centric. Recognizing the importance of the customer is business structure companies have started effecting leaf blade dislodge custom on regular basis.In the recent times, a major brand changeing exercise has been planned by Titian Industries Ltd in order to provide more to its customers. The co mpany has its new position. This study will help to understand the revived positioning strategies of TITAN watches. An analysis of memorying strategies of Titan also forms of the study.Firstly it is all-important(a) to understand the overall wrist watch industry in UK. Secondly to study the brand positioning and re-positioning dodge of Titan 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 secondary data have been used. Analysis UK wrist watch industry and brand repositioning strategies of TITAN Company has been analysed and completed on the basis of secondary data. Internet, journals, books and magazines have been used for this employment.Project comprises conducting a questionnaire survey. (function() var scribd = document.createElement( hired man) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascript s/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Introduction1.1 Theory and conceptsA business has devil and only two basic functions marketing and world Peter DruckerTo maintain business relevance and market position, it is important to continuously innovate and invent brand visualize in the market to pace with change and intense competitive pressure in the marketplace.In this context, brand repositioning and other revitalization strategies have become a business imperative for battling brand erosion. The appeal of brand repositioning is further heightened by the rising costs and high risk 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.Brand reposition has received very importance in the marketing literature and mostly been treated as a variation of brand positioning.Reposition can be required as the market change s and new opportunities occur. In order to reach the customer which was never targeted at first can also be targeted with brand reposition. In order to change its image in the market it is important to focus towards brand repositioning, although it is one of the toughest and hardest actions in marketing to reposition a familiar brand.According to Solomon, position strategy is an subjective part in the marketing efforts because companies have to use the elements in the marketing mix to influence the customers understanding the position. There has to be several choices to be, so to as to be in more attractive and relevant position. It is important for the person who is reposition for the reposition to know and understand why reposition is necessary and its need, and if the offer is the one that will change or just the brand name. While repositioning it is important to undertake and understand all the risk factors that is likely to make it in the market.A company risks its credibilit y and reliability more while repositioning 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 eroded then brand reposition becomes important.Numerous attempts to reposition brand in the market may fail which is testified by many company for example while soft drink has successfully been able to plug in with the youth though they exist for 40 years in the market but at the same Levis, jeans has been losing its market share to newcomers much(prenominal) as The crack despite numerous campaigns designed to reposition the brand trend.1.2 Literature ReviewThe reposition strategy is defined into three stages that isIntroductoryElaborationFortificationThis involves the world of a new or a repositioned brand, seeking underline the brands gr ade over others, and to broaden the brand position. It is truly hard to change the customers perceived berth 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 modify the proposition through update of the personality and through repositioning. There pros and cons with both 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.jpg name 1 Stages in brand strategy development.When a company modifies or change something that is already there in the market established in the mind of the customer that is called as repositioning.Different profession and individuals have different meaning and understanding towards Repositioning. There are few different definitions and greater understanding about this conceptRepositioning is a change, prin cipally about triggering the vision, mission and value in a new direction that is more worthy 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 unequaled and differentiated associations with the brand in some kind of direction it is about having a balance between the category party and differentiation when using reposition strategies (Leading Brand strategies)From these definitions, it is obvious that reposition is about moving something to more attractive and relevant position. Reposition direction is often decided as to what a company wants to achieve. There is also a visible relation between price and quantity aspects. When a company perceives the market as a demand curve, the purpose is to down str and so on or upward curve. When moving up and there is a need for reaching the premium segment and expand up wards.Figure The principle of re position.When striving 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 always 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 bank check as loyal customers.As repositioning is a very complicated matter and therefore there are no detailed theories or models. excogitation 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 the 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.Gra dual 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 areIncreasing relevance to the consumerIncreasing occasions for use make the brand seriousFalling salesBringing in new customersMaking the rand contemporaryDifferentiate from other brandsChanged market conditionsA four phased brand repositioning approach can be followed to achieve the intended benfits-Phase I. ascertain the current status of the brandPhase II. What does the brand stand for today?Phase III. Developing the brand positioning platformsPhase IV. Refining the brand put and Management PresentationThe advantages that can be derived from brand repositioning e xercises can be summarized asValue over othersUpdated personalityRelevant positionThe risks associated with such strategies areLoss of focusNeglecting original customersLosing credibility for the brandConfusing the brandTherefore, brand repositioning is more difficult than initially positioning a brand because one must first help the customer UNLEARN the current brand positioningThis can be done bycautiously crafted communicationNew products, packagingAssociations 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 loss leader should develop it, preferably with the help and facilitation of an outside brand positioning expert.Research Methodology2.1 ObjectivesTo study the current scenario of UK wrist watch industry.To canvass the brand positioning strategies of different sub-brands of watches.To analyze the brand repositioning strategies of watches.To study consumer awareness 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 confined to capital of the United Kingdom area onlyThere is possibility of sampling errors in the studyThe responses of the consumers may not be genuineQuestionnaire may not be general2.3 Sources of entropy CollectionThe relevant data was collected from both primary sources and secondary sources. The starting point of my information gathering 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 awareness survey o n 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 collected through an interview schedule, consisting of both open ended and closed ended questions. It consisted of the parameters like reasons consumers brand preference, recollection 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 year to make out 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 preserve on nearly all industries.Initially, the prodigality 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 wide range of suppliers and retailers, developments in online retailing have contributed to it fit increasingly transparent for information on pricing and availability. This has been a positive trend, especially for many smaller brands that previously were not able to deal forthwith 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 existence own ing 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 parsimoniousness is unlikely to show reversal in 2009, and this will continue 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 form 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 huge amount of money on a quality time piece, with high-end brands such as Rolex and Tag Heuer adorning blinged up wrist of rappers, bankers and fashionistas alike.http//www.wharf.co.uk/2010/11/why-wrist-watches-are-dialling.htmlSWOT ANALYSIS OF THE UK WATCH INDUSTRYStrengthsWatch industry is growing industry which faster rateAs the population i s 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 accessibility 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 profit 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 manufactured 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 schooling 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 quantitative restrictions collectible 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 major like Casio, Swatch and Citizen.Company ProfileOverviewTitan is the largest watch company in India and the sixth largest in the world. 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 be tween the Tata Group 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. Leveraging 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 addition 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 manufacturer and the worlds sixth manufacturer of watches. This has mainly been achieved by developing a formidable distribution 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 Time Zone, service centers and head out lets. Globally Titan has a presence in over 30 countries through its marketing subsidiaries.The company has watch assembly forms 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 safekeeping in the company is around 28 per cent. The rest of the stake is held by foreign institutions, non resident Indians, mutual 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 watch brand Xylys.1995, the company diversified into jewellery under the brand Tanishq to capitalize on fragmented market operating with no brands in urban cities. In 2005, the launched its second jewelry brand, GoldPlus, for capitalizing on the opportun ity in small towns and rural India.The company has now diversified into fashion Eyewear by launching Fastrack Eye-Gear sunglasses, as well as ethical drug 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 PositioningWhen 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 diffe rentiate 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 existence 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 attractiveness 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 Omega, 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), attra ctively styled and of good quality.TITAN WATCHES BRAND RE-POSITIONING STRATEGIES FOR GLOBALISATIONTitan has managed to get fair market in Middle East and Africa but its failure in Europe was a downturn for the Company as the return was not as good as investment made for the expansion. Titan has decided to vamp up its flagship watch brand in Europe mainly in UK. Titan wants to reposition it more youthful and relevant to the changing times.Titan has entered the International markets in 1989 through the export 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 reached 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 needs good reason to stock the brand. Titan needs to r e-position its brand image in the UK market. And so Titan decided to against soft option of driving its globalisation through private label exports. It would launch its product under its own brand with market positioning Therefore Titan found a bulky 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 improve 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 impart and television to broadcast 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) )()