The market surveys show that barely 20% of adult Indians own a watch and about 90% of them own a single watch. So as to sustain and strive in this scenario, a company has to market itself well. Among those marketing strategy applied by the companies, one is STP (segmentation, targeting, positioning) ANALYSIS. Here, STP analysis is done for a company which has got the highest market share in the watch market of India and it is TITAN. As the world’s sixth largest manufacturer brand of watches, the company's products attract the classes and masses both. The 960-crore Titan Industries Ltd (TIL) is a conglomerate between the Tamil Nadu industrial Development Corporation and the Tata Group of Companies and it was established in 1984. Titan Industries Ltd has split its mainline watch business into two:-Sonata and Titan. As their managing director says,”volume growth will come from Sonata and value growth from Titan”.
Growth Rate: Titan is maintaining a growth rate of 30-35%. Future Plans: ✔ Titan is planning to roll out its own Swiss made premium watches brand `Xylys' by
August 2007, in order to lure the watch market. Xylys would be competing with premium international brands including Tissot and Rado. ✔ Titan is aiming to be a $1 billion company by 2010(Rs 4,700) crore hence acquiring a
The STP Process
Dividing the market by grouping the customer with similar tastes and preferences into one segment is called is called “segmentation”. Segmentation help marketers understand the needs of different customers better and serve them with better value propositions. A market comprises of different consumers possessing innumerable tastes and preferences. Depending on their marketing approach and the nature of the products marketers can adopt different level s of segmentation. The levels of market segmentation are: • Segment Marketing • Individual Marketing • Niche Marketing • Local Marketing A) SEGMENT MARKETING: Marketers target more than one segment when it is not economically feasible to design products and services for individual segments. The focus of segmenting the market will be on providing enhanced service to the customer by offering customized products that will satisfy the needs and wants of customer in that particular segment to a large extent. Segmentation is also sometimes identifying, capturing and retaining potential new markets. TITAN PERSPECTIVE
Titan has segmented its business into three main categories: ➢ ➢ ➢ Mass Mid-premium luxury
B) INDIVIDUAL MARKETING: Individual Marketing is the extreme level of
segmentation in which marketers focus on individual customers. TITAN PERSPECTIVE
Titan has not applied this for its marketing.
C) NICHE MARKETING: A niche is more narrowly defined group, typically a small
market whose needs are not well served. Marketers usually identify niches by dividing a segment into sub segments or defining a group seeking a distinctive mix of benefits. TITAN PRESPECTIVE
In a study conducted to study the customers of watch market, it is revealed that 42% of them are youth. So, TITAN tried to target this by:
• • •
introducing FAST TRACK price offering from Rs 500(affordable) watches with style statements
D) LOCAL MARKETING: Marketing programs being tailored to the needs and wants of
local customer groups. The prominence of local marketing has also become very dominant. TITAN PERSPECTIVE
All the products of TITAN are addressed to all the customers as a whole. Localized products are not available. But some products which are available in UK have some pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal Nehru, etc. so that the customers can identify the product with those dignitaries. CRITERIA FOR SEGMENTING CONSUMER MARKET: Markets are mostly segmented on the basis of geographic, demographic and psychographic factors: Geographic segmentation: It calls for...