AGGRESSIVE PRODUCT STRATEGY
In order to highlight the aggressive product strategy we in this article considered Titan watches as the best example and therefore we are deliberating on their strategies and the circumstances they entered and penetrated the market.
When Tata group company, Titan watches entered the market it was considered a novice in the field and HMT was ruling the roost with automatic mechanical movement watches. For some models HMT was even taking a few days to supply and they were considering their watch selling strategy based on the assumption that they are not meant for lower middle class and below and as such the current market segment cannot absorb quartz watches which are perceived as costly at the time when Titan was entering the Indian market.
Titan resorted to an aggressive strategy and directly entered the market with quartz watches with aesthetical designs. This was in addition to the conventional watches sold by HMT. Titan has adopted the concept of sophisticated show rooms and exclusive franchises which have caught the attention of all classes of public and within a short time Titan emerged as the leader. The core concept is still managed by them and HMT is no longer in the picture as a leading watch manufacturer. However some SEMs have gained a little market share.
Product, the No. 1 Weapon in Titanâ€™s Marketing Strategy
In its effort at developing a marketing strategy capable of confronting the leader, Titan chose â€˜productâ€™ as the No.1 weapon. Titan put on the market a wide and attractive range of quality watches. The watches were also contemporary in style. Titan added new models and dials at regular intervals.
In its effort at product augmentation, the companyâ€™s product engineering group developed a number of new watch movements including dual time, world time, alarm and longâ€“battery life watches. In short, Titan offered a product that combined quality and fashion; it provided an abundant choice in terms of styles and models. Titan currently offers a choice of over 1,000 designs.
Right Product Choiceâ€”Titan Opts for Quartz
Titan made its product choice very sensibly. When Titan entered the watch business, mechanical watches dominated the market. Those days, HMT, the market leader, was producing mechanical watches in the order of five million pieces per year. Titan had to make a conscious choice between marketing mechanical watches or follow the global trend and go in for quartz. An alternative they were considering was going in for a combination of mechanical and quartz watches.
Initially, Titan considered the option of making both mechanical and quartz watches. But, on closer examination, it decided to stick exclusively to quartz. It proved a sensible move. The world over, the trend has since been towards quartz. Moreover, setting up a mechanical watch plant required more investment. By choosing the quartz route, Titan was able to enter the industry with lesser investment; a quartz watch normally has less than half the parts of a mechanical watch. Titan was aware that the decision to go for quartz would deny Titan the market of mechanical watches, the high volume and lower end segment. Titan consciously opted for quartz.
Having made the decision in favor of quartz, Titan launched its product with a real bang. In fact, the Titan launch was so grand that the market got the impression that Titan was the first company in India to introduce quartz watches. Actually, HMT had already done it in 1981, followed by Allwyn in 1984. Titan went the whole hog towards spreading the â€˜quartzâ€™ culture.
Titan Opts for the Best Technology
Titan went in for the most modern technology and the best international collaboration.
The Titan Range Addressed to Different Segments:
Â· Classique: Distinctive watches combining the elegance of gold and leather, in 135 different designs.
Â· Royale: Stylish dress watches in all gold and precious metals, in 40 different designs.
Â· Exacta: Contemporary watches in stainless steel to withstand the rigors of daily life, in 100 different designs.
Â· Fast Track: Casual watches with an accent on youth and the outdoors, in 25 different designs.
Â· Sonata: For the low-end market.
Â· Raga: Exclusively for women.
Â· Aurum: Jewellery watches in 18 carat gold, studded with precious gems and colored stones.
Titanâ€™s collaborator in watch movement, France Ebauches, is one of Europeâ€™s leading manufacturers of watch movement. And the Citizen Company, Japan, Titanâ€™s collaborators for the watch case, is equally well known in its field. Titan also secured the best equipment from Switzerland, Japan and France.
Going in for the best technology and a better understanding and feeling the pulse of the market Titan has made the right moves to emerge as the market leader.