Titan Watches and Strategies for Its Market - Case Study Example

Titan Watches Executive Summary This report summarizes an in-dept analysis of Titan Watches and assesses strategies for its market. Titan Watches is a product of Titan Industries Limited, an extremely successful company in India having captured more than 50% of the market. It has penetrated the global market having established the Titan brand in many centers in Europe, Asia Pacific and the Middle East. The objective of the report is to perform an in-dept analysis of the watch industry, including Titan Industries Limited and develop strategic marketing tools that will help in the marketing decision of Titan Watches. 1. Strategic Plan The strategic plan will be a management tool that will present the direction and goals of Titan Watches in response to the understanding of what the customer needs, and the current opportunities and challenges that the company is facing. The first five-year period of this strategic plan will focus on appraising and deepening Titan Watches’ approaches to its brand marketing work. Concurrently, Titan Watches will take more of a leadership role in the watch industry developing a market focus that is yet untapped in a global standing, while protecting its image in India. 1.1 Vision In the coming years, the company is envisioned to be a world leader in the watch and jewelry business being at par with the Swiss and Japanese watches and capturing a large global market. 1.2 Mission Having established itself well in the Indian Market, Titan Watches’ mission is: Establishing a substantial and unique brand presence by developing lucrative niches in the global market such as the UK and USA 1.3 Summary of the Environmental Scan One of the most important parts of the strategic plan is a summary of the environmental scan which documents and determines facts and trends in the environment of an organization that will likely affect it. 1.3.1 PEST Analysis The PEST analysis helps to scan the external macro-environment in which the company operates. It assesses the Political, Economic, Social and Technological factors. Presented below is the summary of the PEST analysis of Titan Watches: PEST Analysis Political -Indian watch market generates sales of almost 25 million units per annum -Indian National Disability Act has introducing employment. Economic -Grey market operator and imported cheap watches from china affect growth in the market. Social -Due to change in consumer perception of watches, there are a considerable number of designer trendy watches in the market. -Watch has become a fashion wear now rather than being necessity and customers choose for brand so as to make an impression in their society. - Influence on cultural change of India. Technological Technological advancement has developed watch industry so as to maintain the status of watch industry. GPS, calculator, torch and all have been incorporated into watches. 1.3.2 SWOT Analysis The SWOT analysis analyzes both the internal and external factors affecting the organization. The following is a brief summary of the strengths, weaknesses, opportunities, and threats of Titan Watches. 1.3.2.1 Strengths Titan Watches’ key strengths include the organization’s positive brand image of good quality, value, durability, fashion forward and price competitive offerings. Moreover, it enjoys 100% brand recognition and has become a household name in India with 80% market share. The company offers a wide variety of selection that caters to all segments in the society. The company has a very high grade facility, in excellent condition and with state of the art tools and equipments having acquired technology and developed technical skills in producing contemporary watches. It also houses a talented in-house design Studio which assimilates the latest fashion trends and creates cutting-edge products. The company also has a well built management structure and has a well developed system for capturing market information and tracking the competition. 1.3.2.2 Weaknesses Although Titan has established itself in the local market, it has weakly established its brand in the global market and global recognition is still yet to be achieved. This reflects the lack of marketing experience in the international watch and jewelry market. 1.3.2.3 Opportunities At its present state or position, the company can tap into many opportunities in marketing their product. Since the global market is the main target of the company, opportunities should be more focused on these aspects. Since the major Swiss and Japanese brands are eyeing the Indian market, it will be a great opportunity to merge or have a tie up in successfully launching the foreign brands. The tie up will also give the company the opportunity to tap better the global market. The company can also look into the rapid technological change developing products that are in collaboration of mobile companies. Developing new products or kind of watches that are “high-tech” and not just contemporary watches will give the company edge in leading technology. The company can utilize Indians who are strategically placed globally and introduce the products through opening stores globally that have high-end image. 1.3.2.4 Threats The company revenues may be impacted by the economic recession as people may reduce its expenditures on watches and other luxury items. The entrance of international brands such as Swiss and Japanese manufacturers may cut some of the market share of the company. Technological preferences of the market such as prevalence of cellular phones and other gadgets as a means of time devices may weaken the market of new generation. Below is the summary of the SWOT analysis of the company. Strengths Weaknesses 1. Titan’s manufacturing units are in excellent condition. They sustain reputation of cleanliness and hygiene. All the systems are computerized equipped with state of art tools and equipments. 2. The emphasis is on quality, design and affordability aspects. 3. In-house jewelry production unit facilitating the reduced cost. 4. Titan management structure is well built; the roles are well defined and clear resulting in enhanced performance and clear objectives. 5. Innovation and efficient management of the resources is the key to success of Titan. 6. Titan offers many options to the customers and the brand is separated by many customer segments. These segments are decided based upon the role and the financials of the customers. Every segment offers exclusive variety. 7. Has positive brand image of good quality, value, durability, fashion forward and price competitive offerings. 8. Titan enjoys 100% brand recognition and has become a household name in India over the years. 9. 80% market share in India. 1. Titan is still a small company in terms of Global recognition. 2. Lack of Experience in terms of international watch and jewellery market Opportunities Threats 1. To spread its popularity in international market. 2. To attract the Indians residing outside India to hike the sales and also start making brand image. 3. Maintaining Brand recognition in India. 4. Vast opportunity in terms of incorporating watches with various electric devices to make it more customers friendly. 1. Due to economic recession, Consumer spending on watches may reduce. 2. Entrance of other competitors in the market. 3. Swiss and US companies finding Indian market profitable. The following is also the SoWOT Matrix and its outcome: S H M L H M L T O H M L W 1.4 Strategic Direction Based on the understanding of the Titan Watches’ mission, assessment of the macro-environmental factors, and opportunities and threats in the current environment, the next few years will be a time of assessing and deepening its approaches to work in strategizing courses of action towards company expansion in the global market. Simultaneously, the company will take a more leadership role in the watch industry in the local market, strengthening its position and brand values to its market with possible collaboration with leading key players in the world market. 1.5 Goals and Objectives In order to pursue the strategic direction above, Titan Watches will fulfill the following goals and objectives: Goals: Titan Watches will continue to provide extreme quality products and services to its customers by continually providing updated and innovative products with stylish looks and quality. The company will increase the quality of service and value by collaboration and merging with leaders in the market and at the same time increase revenues and avoid capital losses in the international market. Objectives: 1. Strengthen presence in the Indian market by continuous product awareness through massive advertising campaigns 2. More Indian people will prefer to buy Titan watches for its durability and stylish look but being functional. 3. Introduction of other brands that will cater to all levels of market locally and globally. 4. Develop innovative watches with updated technological features with more functions or features such as GPS, Calculator, portable phone, PDA and camera. 5. Open high-end imaged stores world wide or in UK and US markets initially. 6. Increase returns and capture larger global market share. 2. Channel Development Strategy Identifying the Channel Development Strategy that Titan Watches need to undertake is relative as there is no right or wrong strategy. The strategy can be restricted to only one type or it can be a strategy where all the potential content providers accept the channel type recommended of a uPortal committee whose task is to clearly identify the best channel type for any given application (Channel Development Strategies, 2008). The UK revenue body has defined channel strategy as: ““A directive and differentiated approach that clearly guides customers to the most appropriate channel that meets both the needs of the customer and the organization and achieves compliance at the lowest cost.” (OECD, 2007). The company has a good website that contains all the information about the company, its products and services. Several channel types can be used for the strategy of the company, and every company must move the contact volume from the lower part of the triangle upwards. (No Contact) Web Phone Email Correspondence Face-to-Face With this in mind, the company has to look at the direction that it will take and accomplish the goals and objectives set taking into consideration the environmental factors, opportunities, and threats in mind. In this modern world, the web has been the fastest in innovation and the company can tap that resource for its channel development. 2.1 Useful Channels The other types of channels that can be used in developing strategies for the company are: image, inline frame, RSS, web proxy, simple XML, remote channel, custom, and applet. The company wants to tap the global market thus it has to be on top of technology today in order to do that and making use of the various channels in the web will give competitive edge in tapping to the market outside India. Faster communication is required to reach prospective customers and the company needs to be on top and in line with technology. However, the outside market needs to be assessed and this done with strategic models and tools as described below. 2.2 Models /Analysis of the Market The following marketing tools can be used to determine more extensively the market that is needed to be tapped particularly the global market and in order to determine what elements that affect and will affect the business. 2.2.1 5C’s of Marketing Strategy The 5C’s outline below will determine the checklist on some important things to consider in determining the right channel to develop in strategically marketing the Titan Watches products. The matrix is shown below: 2.2.2 7Ps This extended Marketing Mix model which utilizes to analyze the Product, Price, Place, Promotion, People, Process and Physical evidence will help in generating the optimal response of the target market and define the best channel strategy to use. The 7P model of Titan Watches is shown below: Product Well- known brand in India, Quality & Fashion watches wide range of watches and introduce jewelry watches to international market, To create brand image with Indian culture, Designing modern packaging and luxury shops. (Main points) Price Price ranges from affordable to expensive depending on style and class of watches. Focus on value for money and fashionable style, are different in each type of watches and targeted segments. Place Own distribution channel, Department stores, retail shops, Internet and location: in the city centre of major city and service is nice specialist, good knowledgeable about watches. Emerging the stores to large city in UK and USA. Promotion Make people aware of the new product range and put advertising on magazines, TV and newspapers. Take more active the relationship with media maintained and new media. People Sales service and marketing, sale assistants, specialist for watches and excellent customer service. Process Titan’s manufacture ->provide materials for products -> Marketing research for consumer views and product needs -> Continuous new product ideas ->production -> accurate service Delivery ->distributing products on time to Retail shops and home. Physical evidence special packaging with modern style and used as a differential packaging for each watches style, add more value to the product-perceived as an original and unusual gift-inside booklet explaining the functional product. Excellent Specialists at stores introduce Titan’s watches including new product is coming, qualification of them that help build more confident for product and to attract their target audience on brand. 3. Brand Strategy Brand strategy is one of the most important areas of marketing. One must understand first the organization’s business strategy before a strategy for a bland can be made. A company needs to brand its products in order to persuade the consumers that the values it conveys is align with theirs. The company must extensively know the target consumers in order to plan the kind of product brand they want to market. 3.1 Porter’s Five Forces Model The Porter’s 5 forces model can be used to think outside-in business unit strategy. The Porter 5 competitive forces for Titan Watches are shown below. Using the web is a more advanced approach today in creating a fast marketing campaign. The tool Porter’s Five Forces Model 3.2 Market Segmentation An important aspect in branding or brand strategy is determining, identifying and grouping the total market into similar motivations, needs or characteristics that are likely to exhibit homogenous purchase behavior (12Manage, 2008). This process can be done by doing a marketing segmentation. Marketing segmentation allow marketing to be targeted to the select groups. The company can pursue certain segments with specific offers or a niche or can do customization. The following were seen at Titan Watches: 1. High end- Both of women & Men between 35 and 44 years old, high disposable income, luxury watches, valuable. 2. Medium end -Working people, housewives both of women & men, between 25-34 years old. 3. International market – offering luxury jewellery watches for men & women in USA and UK. 4. Targeted at Young, students between 15-24 years old, low income, into fashion conscious, and new trends 3.3 Ansoff Matrix The Ansoff Matrix makes use of analyzing both the target market and the products. This can provide information on the potential and existing market as well as the present company product and competitor’s products after the channel and environmental forces have been identified. With the defined objectives given below, the Ansoff Matrix of Titan Watches is presented: OBJECTIVES 1. Has Strengthen presence in the India market. 2. To develop New technology with more functional of watches, such as GPS, calculator, phone, PDA, camera. 3. Emerging markets to International market to (UK and USA) 4. Further develop innovative and new design, quality,reliability of watches 5. To maintain brand recognition and strong image in India 6. Explore new channels to market 7. Introduce Luxury jewellery watches Ansoff Matrix* *the number corresponds to the objectives 3.4 Brand Analysis Triangle The Brand Analysis triangle can also help in the brand strategy as it asses the attributes, personality, positioning and promise of the brand in mind. References “Channel Development Strategy”. 2008. Online. Available from: http://barrett.cit.cornell.edu/JA-SIG-CDS/. [04 August 2008] Drummond, G. et. al. 2001. Strategic Marketing: Planning and Control. Oxford: Butterworth-Heinemann. Forum on Tax Administration, Tax Services Sub-group. 2007. Improving Taxpayer Service Delivery: Channel Strategy Development. OECD.Online. Available from: www.oecd.org/dataoecd/34/47/38528306.pdf. [04 August 2008] Gorshels, L.. 2005. 3rd Ed. The Product Manager’s Handbook. New York: McGraw-Hill Professional. “Market Segmentation”. 2008. Online. Available from: http://www.12manage.com/description_market_segmentation.html. [05 August 2008] Read More