Posted at 11.04.2018
Today, a wristwatch is considered as much of a status sign as a device to share with time. The wristwatches and jewellery has not been immune to the financial climate and the whole industry suffered in overdue 2008 and in '09 2009 as consumer self-confidence fell and folks became more cautious about their spending.
The overall jewellery and designer watches market grew by 10% since 2005 to attain £4. 8 billion this year 2010 and Mintel forecasts 11% growth for the jewellery and watches market over next five years.
2011 is also going to be the year to invest in men's jewellery. Stephen Webster provided a strong case for men's jewellery at IJL in September 2010, and assuming male customer only want wristwatches and the unusual signet or string may lead to passing up on a potential wealth of customer. It's not that male customers don't want it: they just don't know they need it.
Men aren't like women and they are not used to considering what things to wear, explain Webster. "But once a man is bejewelled, there's no looking back. In addition they don't wait for special events like woman do, and they can go from zero to jewellery aficionado very quickly. "
Market research company Mintel's September 2010 report Watches and Jewellery Retailing UK discovered that 20% of male respondent said they like obtaining jewellery as a gift, and 12% said that they had purchased all of their own jewellery. So the market is evidently there to be exploited.
http://www. retail-jeweller. com/trends/in-with-the-new-2011-trends/5020089. article
Rocketing gold prices and tough economy have led many consumers to buy metallic jewellery instead of gold, with almost one in five people using more silver jewellery than silver, rising to almost three in ten women; especially young people aged 15 - 24.
The affordability and disposability of many halloween costume jewellery items means that customers will be more willing to test and try new looks without denting their lender balances
Young men aged under- 35 are usually more open to paying higher sums for a wrist 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 one when their old an example may be busted. Converging the watch's main function with health advantages would be one way of supporting create new known reasons for purchase.
http://air. mintel. com/sinatra/oxygen/display/id=479809
https://www. keynote. co. uk/market-intelligence/view/product/10331/chapter/0
Many Brands and companies are constantly reinvigorating their businesses and placing them for progress. There is a continuous need to innovate, reinvigorate, update, recalibrate, or just simply fight the competition in order to better clarify, "why buy me. "
In the market for the brand and product offerings is created by placement. It reaches a certain type of consumers and provides benefits that meet the needs of several key focus on communities and users.
Actual Approach of any company or brand's setting available on the market will depend 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 competition based on a host of items, but most notably on five key issues: Price, Quality, Product Qualities, Distribution, and Consumption Occasions.
In recent times, consumerism has been through a sea change. Consumers today are well informed about the merchandise, when compared with the earlier days. Hence, the marketplace is becoming customer centric. Realizing the importance of the customer is business composition; companies have began effecting brand repositioning exercise on regular basis.
In the recent years, a major brand repositioning exercise has been designed by Titian Sectors Ltd to be able to provide more to its customers. The company has its new position. This analysis will understand the revived placement strategies of TITAN wrist watches. An examination of repositioning strategies of Titan also kinds of the analysis.
Firstly it's important to understand the entire wrist watch industry in UK. Second to review the brand placement and re-positioning strategy of Titan wrist watches and to find out if the faithful consumers of TITAN pieces aware of the new setting strategies of the company and how they understand them.
To study primary and supplementary data have been used. Research UK wrist watch industry and brand repositioning strategies of TITAN Company has been analysed and completed based on extra data. Internet, publications, books and publications have been used for this purpose.
Project comprises executing a questionnaire survey.
http://www. scribd. com/doc/36767165/Study-of-Indian-Wrist-Watch-Industry-and-Marketing-Strategy-of-Titan-Watches
"A small business has two - in support of two - basic functions: marketing and technology" Peter Drucker
To maintain business relevance and market position, it's important to continually innovate and invent brand image on the market to stride with change and strong competitive pressure available on the market.
In this context, brand repositioning and other revitalization strategies have grown to be a business essential for fighting brand erosion. The appeal of brand repositioning is further heightened by the rising costs and risky associated with introducing a fresh brand. Increase in the price and risky related with introducing a new brand that is clearly a part of brand reposition. Brand reposition has received very importance in the marketing books and generally been cared for as a deviation of brand positioning.
Reposition can be required as the market changes and new opportunities arise. To be able to reach the customer which was never targeted at first can be targeted with brand reposition. In order to change its image on the market it's important to target towards brand repositioning, though it is one of the toughest and hardest activities in marketing to reposition a familiar brand.
According to Solomon, position strategy can be an essential part in the marketing work because companies have to make use of the elements in the marketing blend to influence the customers understanding the positioning. There needs to be many 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 realize why reposition is essential and its own need, of course, if the offer is the one which will change or perhaps the brand name. While repositioning it is important to undertake and understand all the chance factors that is likely to affect it in the market.
A company hazards its trustworthiness and consistency more while repositioning its brand in the market and the need for an intensive strategy is very important to avoid any event. Some analyst argues that to effectively reposition a established brand name is nearly impossible because repositioning of the brand can maximize loyal customer to change brand. In case the brand is eroded then brand reposition becomes important.
Numerous attempts to reposition brand on the market may are unsuccessful which is testified by many company for example while soda has successfully been able to hook up with the junior though they are present for 40 years on the market but at the same Levis, trousers has been burning off its market share to newcomers like the Space despite numerous campaigns designed to reposition the brand trend.
The reposition strategy is described into three periods that is:
This will involve the advantages of a fresh or a repositioned brand, seeking underline the brand's value over others, and to broaden the brand position. It really is truly hard to improve the customer's recognized attitude towards a brandname, and then the risk is excellent that the attempt to repositioning might are unsuccessful.
After moving out the strategy, it is time to adjust the proposition through update of the personality and through repositioning. There pros and cons with both of this segments which is great significance that they are truly calculate when deciding the next step along the way. To comprehend it more deeply
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When an organization modifies or change something that has already been there on the market established in the mind of the customer that is named as repositioning.
Different profession and people have different so this means and understanding towards Repositioning. A couple of few different meanings and increased understanding relating to this concept:
From these meanings, it is clear that reposition is approximately moving something to more attractive and relevant position. Reposition way is often chosen in regards to what a company wants to achieve. There is also a visible relationship between price and volume aspects. Whenever a company perceives the marketplace as a demand curve, the purpose is to down stretch out or upwards curve. When moving up and there's a need for reaching the premium segment and extend up wards.
Figure: The theory of reposition.
When trying towards a fresh position on the market, it is important to understand those consumers are limited. People's imagination select what to remember and it is important to influence the consumers with higher arguments. The market always shoot for change which is quick and therefore repositioning can be essential to meet these demands, newer and stronger arguments need to be established to confident them to stay as loyal customers.
As repositioning is an extremely complicated matter and therefore there are no detailed ideas or models. Aim for repositioning is different for different person, and the one connection between all the various theories is the fact that repositioning is moving something from somewhere towards a greater position at the marketplace.
Corstjens and Doyle (1989) recognized three types of repositioning strategies:
Zero repositioning, which is not a repositioning in any way since the company maintains its initial strategy in the face of a changing environment.
Gradual repositioning, where the firm performs incremental, continuous adjustments to its placement strategy to echo the progression of its environment; and
Radical repositioning that corresponds to a discontinuous switch towards a fresh marketplace and /or a fresh competitive advantages.
After learning the repositioning of several brands from the united kingdom market, the next 8 types of repositioning have been recognized. They are:
Increasing relevance to the consumer
Increasing situations for use
Making the brand serious
Bringing in new customers
Making the rand contemporary
Differentiate from other brands
Changed market conditions
A four - phased brand repositioning procedure can be followed to achieve the intended benfits-
Phase I. Identifying the current status of the brand
Phase II. What does indeed the brand stand for today?
Phase III. Developing the brand placement platforms
Phase IV. Refining the brand Placement and Management Presentation
The advantages that can be produced from brand repositioning exercises can be summarized as:
Value over others
The hazards associated with such strategies are:
Loss of focus
Neglecting original customers
Losing credibility for the brand
Confusing the brand
Therefore, brand repositioning is more challenging than initially placing a brand because one must first help the client "UNLEARN" the current brand positioning
This can be carried out by:
Carefully made communication
New products, packaging
Associations with other brands ( co- branding, co- marketing, ingredient branding, tactical alliances, etc) that reinforce the new brand setting.
This exercise is so critical to an organization's success that the organization's and its marketing/brand management innovator should develop it, preferably with the assistance and facilitation of an outside brand - setting expert.
To study the current situation of UK wristwatch industry.
To review the brand placement strategies of different sub-brands of wrist watches.
To analyze the brand repositioning strategies of wristwatches.
To research consumer understanding and perception about the brand repositioning strategies of designer watches.
This study will help to understand the gap in its communication strategy regarding brand repositioning exercises and the further measures to be studied for effective marketing communications.
The analysis is restricted to London area only
There is likelihood of sampling errors in the study
The reactions of the consumers may well not be genuine
Questionnaire may not be comprehensive
The relevant data was gathered from both principal sources and extra sources. The starting point of my information gathering has been the secondary resources such as internet, catalogs, and journals and so on.
Firstly, brand positioning and repositioning strategies of Titan, extra sources such as internet, insurance mags, and journals and so forth. I QUICKLY conducted a consumer understanding review on brand repositioning strategies carried out by Titan wristwatches recently.
To conduct sampling of 50 dedicated consumers of Titan and in this band of 20 - 30 years for this review. Since Titan has taken up brand repositioning strategies since January 2011, consumers who've seen the previous and new promotions have been targeted.
Data was accumulated through an interview schedule, comprising both open ended and closed finished questions. It consisted of the variables like reasons consumers' brand choice, recollection of preceding tagline and advert, brand ambassador of Titan awareness of new tagline and campaign offering sportsmen and actors from International body and so forth. The info was gathered through e-mails, phone contacts and one to one personal interviews.
Market statement examines the UK jewellery and watches market, total sales of jewellery and designer watches in the UK fluctuated between 2004 and 2008, and fell by 2. 8% in the last mentioned year to complete the review period at £4. 33 billion.
The declining sales in 2008 can be largely attributed to the global economical downturn and UK tough economy, which have got a negative effect on nearly all market sectors.
Initially, the blissful luxury end of the market was relatively unaffected by the downturn, but by the finish of 2008 and 2009, it had begun to consider effect.
The jewellery and Watches market has become increasingly competitive in recent years. Even though industry has always been fragmented with a wide range of suppliers and vendors, developments in online retailing have added to it becoming increasingly translucent for information on rates and availability. This has been an optimistic trend, especially for many smaller brands that recently were not in a position to deal straight with consumers. Some bigger retailers, and a few independents, also have developed transactional sites to cope with this demand.
With around a third of the UK population running a piece of precious jewellery and practically in ten running a watch, products have a higher rate of consumer penetration.
The downturn in the UK economy is improbable showing reversal in 2009 2009, and this will continue steadily to affect all areas of consumer spending.
It seems the principles of a wrist watch have grown to be that of a status symbol rather than a practical chronometer. Relating to a study that suggest one in seven people in the UK has no need for watch, apart from as a fashion equipment.
Gadgets such as iPods, notebooks and cellular phone, represent danger to the watch industry, survey conducted by Mintel.
Even in the age of iPhones, people spend large amount of money on an excellent time piece, with high-end brands such as Rolex and Label Heuer adorning blinged up wrist of rappers, bankers and fashionistas similarly.
http://www. wharf. co. uk/2010/11/why-wrist-watches-are-dialling. html
Watch industry is growing industry which faster rate
As the population is increasing, the watch market is also expanding
Customers are not very price sensitive so far as quality watch is concerned
There is very little advertising done by watch industry
No innovation in products
There are few range of exclusive showrooms that reduces the consumer's accessibility to the product
There are few marketers, who are focused only upon a specific niche segment (Tag Heuer )
There is more need of fashionable luxury watch and fine luxury watch brands that may be targeted in UK, as customers are similar to trendsetter and fashionable.
UK especially London is a metropolitan city which makes it more attractive for the new company.
Youth will be more brand conscious than their predecessors. That contributes to the growth of the market for branded designer watches.
There are extensive foreign players coming into in the race
Too many players will dilute the marketplace and the profit margin.
Mobile phones operating as substitutes of the wristwatches.
The Indian watch industry began in the year 1961 with the commissioning of the watch division of Titan. The first watch model produced by HMT was the Janata model in the year 1962. HMT was the first choice in the watch market till the Tata's formed Titan watches in colaboration with Tamil Nadu Industrial Development Firm in the year 1987. They required a major strategy decision, which later altered the face of the Indian watch market to manufacture only quartz designer watches. Liberalisation in 1992 and removal of quantitative constraints credited to WTO has opened the doors for most the Indian market viz. Tissot, Swatch, Omega, Rado, TAGHeuer. The import duties on designer watches are falling making the Indian market look attractive for the global majors like Casio, Swatch and Citizen.
Titan is the major watch company in India and the sixth largest in the world. Titan manufactures over 7 million wrist watches per annum and has a customer foundation over 65 million.
An industry was founded in 1984 as a joint venture between your Tata Group and the Tamil Nadu Industrial Development Organization. The company brought the shift in the Indian watch market, offering quartz technology with International styling, created in a state-of-the fine art manufacturing plant at Hosur, Tamil Nadu. Leveraging its knowledge of different sections in the watch market, the company launched a second impartial watch brand Sonata, as a value brand to the people seeking buy functionally styled watches at affordable prices. In addition it centered on the youth with its third brand - fastrack.
In two decades the company has generated an impressive watch business to be India's largest manufacturer and the world's 6th manufacturer of wrist watches. This has mainly been attained by creating a formidable syndication network. The business has between the world's greatest retail chain of exclusive retail showrooms for wrist watches called 'The world of Titan multiply over 100 towns'.
It also has multi brand outlet stores named 'Time Area', service centers and dealer stores. Globally Titan has a occurrence in over 30 countries through its marketing subsidiaries.
The company has watch set up plants at Dehradun (UP) and Baddi ( Himachal Pradesh) and a plant manufacturing electronic circuit planks in Goa.
The majority stake in the business is held by the promoters, with Tidco having 28 percent of the shares and Tata Group companies getting 25 percent of the shares. Public keeping in the business is around 28 per cent. All of those other stake is organised by foreign establishments, non citizen Indians, mutual funds and other organizations.
It has also premium fashion wristwatches by acquiring a permit for global brands such as Tommy Hilfiger and Hugo Supervisor, while. It has also in its portfolio its first Swiss Made watch brand - Xylys.
1995, the business varied into jewellery under the brand - Tanishq to capitalize on fragmented market operating with no brands in metropolitan towns. In 2005, the launched its second Jewellery brand, GoldPlus, for capitalizing on the ability in small towns and rural India.
The company has now diversified into fashion Eyewear by introducing Fastrack Eye-Gear sun glasses, as well as Prescription Eyewear.
Since its benefits, Titan has been located as reduced brand, providing high quality products. Titan is struggling to have a strong brand image in UK market due to its numerous sub-brands that suits different sections in India. It uses different placement strategies; these strategies can even be analyzed as listed below:
When the company launched its products, it was the first to bring quartz pieces to Indian market. The business efficiently leveraged this to permeate the market. Raga, Classique and Regalia come under this strategy. Classique situated as elegant commercial wear that leaves a quiet, but distinct impression and fusion of function and style. Regalia ranger represents the elegant-wear. Raga has been differentiate and positioned as exclusive watch. The Raga and Metallic Raga collection is tasteful, delicate and female with each piece truly unique.
Titan caters to several user organizations - children (the Dash), sportspersons and adventurers. The fastrack range is seen as being modern day, reliable and durable. The advertising, packaging and merchandising of the range is young, cool and vibrant.
Titan seeks to identify its offering based on superior style and attractiveness which is proposed by fastrack Digital range.
With the entrance of several international watchmakers in to the market, Titan were required to encounter the menace. Most the entrants are catering to the high end of the marketplace - Omega, Cartier etc.
Quality or Price Positioning:
In the abroad market, especially in European countries where it is contending with Swiss and Japanese designer watches, it is placing itself as "value-for-money" (significantly less than Swiss watches and greater than Japanese), attractively styled and of good quality.
Titan has got fair market in Middle East and Africa but its inability in European countries was a downturn for the business as the go back was not as effective as investment made for the enlargement. Titan has decided to revamp its flagship watch brand in European countries mainly in UK. Titan would like to reposition it more youthful and highly relevant to the changing times.
Titan has inserted the International market segments in 1989 through the export of watch movements. Titan's first global footprint was placed in the UAE - the most significant market in the Middle East then it transferred 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 calendar year of its introduction. It started to move internationally and steps towards Sri Lanka, Bangladesh, Maldives and Nepal.
After its extensive survey, it concluded that it needs good reason to stock the brand. Titan must re-position its brand image in the united kingdom market. And so Titan decided to against smooth option of generating its globalization through private label exports. It would launch its product under its own brand with market placement Therefore Titan found an enormous advertising campaign to produce brand awareness. In addition, it participated in the good which showcases the world's biggest watch brand on the planet.
http://www. moodiereport. com/images/luxury_watch_tables_jan10_04. jpg
http://www. moodiereport. com/images/luxury_watch_tables_jan10_05. jpg
The suggestions to improve consumer awareness about brand repositioning strategy of Titan are as follows:
To increase its visibility, Titan Company can sponsor incidents much like fashion shows which all latest designs launched are exhibited. That is important as it has a great influence on different segments of the clients in various ways.
It is important to acquire Tie up with radio programs and television set to transmit and telecast its advert about various sales promotion every once in awhile.
R&D needs more investment as customer prospects are changing speedily. It should concentrate more on introducing more kinds and luxury items in the market at regular period.
Introduce exclusive collection for working women which is more contemporary and complements any fashion styles.
Tie up with international watch brands to help make the product stronger on the market.
To use internet to pass on understanding among consumer about the brand.
http://www. scribd. com/doc/8661127/Titan-The-Real-War