Customer-Driven Marketing Strategy of Titan (Watch Division)IntroductionThe company we have chosen to analyze in our assignment is the world's fifth largest wrist watch manufacturer and India's leading producer of watches, Titan. This assignment tells us briefly what Titan actually is, its customer driven marketing strategy, how they create value for target customer view on the size and sales of the company and also the various market segmentation strategies, target market strategies and differentiation and positioning their products to desired market with customer satisfaction.Titan entered the Indian market of wrist watches in 1984, at a time when HMT watches were enjoyin ...view middle of the document...
Market segmentation tends to focus on the marketing activities in the value chain in which Titan commands a very formidable position. This also allows Titan to find out how it should serve each segment.Titan believed that different brands have to be created for the different segments. Titan has segmented the watch market and identified clearly the needs of each group. Titan has segmented the market on the basis of the following variables: Demographic (age and social class), Psycho graphic (lifestyle and personality), Behavioural (benefits and occasions, Geographical (region), Targeting segments and User positioning. After carrying out an in depth market study, Titan identified three different specific market segments for its watches. The segments were arrived at using benefit and income level as the bases.The first consisted of the high income/ elite consumers who were buying a watch as a fashion accessory. They were also willing to buy a watch on impulse. The price tag did not matter to this segment. The price range between Rs.20, 000 and Rs.1 lakh.The next segmented consisted of consumers who preferred some fashion in their watches but to them price did matter. The price range between Rs.500 and 700.The third segment consisted of the lower income consumers who saw a watch mainly as a time keeping device and bought mainly on the basis of price. The price range between Rs.350 and 500.Segmentation on the basis of age and life cycle stage:For the age group 12-20, brands like Sonata, etcFor the age group 18-30, brands like Fast Track, Technology, Sonata etcFor the age group 30-55, brands like Sonata, Nebula, Raga, Steel, Regalia, Bandhan etcGender wise segmentation:Gents (e.g. Flip)Ladies (e.g. Raga)Married couples (e.g. Bandhan)Market Targeting of TitanThe strategy that Titan adopted in recent years is that of focus. It has segmented the market into different need groups and tailored its strategy to the exclusion of others. By optimizing its strategy for the target segments, it seeks to achieve a competitive advantage in its target segmentsDuring market targeting Titan consider two types targeting job1. Evaluation the market segments2. Selecting Target market segmentEvaluation the market segments:In evaluation Titan follow 3 criteria. Such as-Segments size and growth of Titan:Titan divide their segments on basis of the size of segments. For each segments they introduce different types of product. They divide the market according to the financial condition. For that they are able to sell their product to middle and lower class people.Structural attractiveness of market segments:Titan looks at the attractiveness of each segment and launches the desirable products. For instance they had launched Fast Track for youth.Company objectives and resources:Titan balance their supply on the basis of their company's target and available resources.Selecting Target market SegmentsAfter doing all evaluation Titan decide to choose differentiated marketing poli...
