Suppose you are the marketing manager of Titan Watches, Bangalore. What are the steps you will take to guard against the phenomenon of marketing myopia?
Titan and marketing Myopia
Today the marketing is not merely the selling or promoting the goods and services. It is the process of planning and executing the conception, pricing, promotion and distribution of goods and services to create exchanges that satisfy individual and organisational goals.
As the marketing manager of Titan watches, Bangalore I should also keep an eye to prevent the marketing Myopia.
The following form of Myopia may apply in a branded watch company.
1. Narrow definition of the business.
2. Pre occupation with a product or technology.
3. The belief that the product id forever.
4. Too much faith in mass production.
5. Over optimism about the expanding population.
Titan watches Bangalore is a branch of Titan group. They have revolutionized watch retailing in India, by setting up a chain of high profile stores. The world of Titan is their face in the market, a store providing an international ambience, showcasing their entire range. This provide the customer with the compute brand experience - making it the most preferred.
Current Network
Over a period of 15 years the chain has grown to 164 showrooms at prime locations across 100 towns in India. These showrooms have grown along with the company, both in business and profits, which is testimony to the succers of the chain.
Titan is the market leader, having a variety of ranges and introducing around 200 new models every year, ensuring sustained growth.
The World of Titan is the face of 'Titan' in the marketplace. Hence, each showroom has a turnover of about Rs. 20 to 30 million a year in large cities and about Rs. half a million a year in smaller towns. All existing showrooms exhibit a consistently high growth of about 15% to 25% every year.
The World of Titan stores show a healthy return on investment of more than 24%. Although the net earning potential of a showroom varies from market to market, in all cases it exceeds market rental value of the property.
Most showrooms break even in the first year and start making profits from the second year onwards.
We have a dedicated retail team with professional expertise in setting up and operating showrooms across the country. This team is dedicated to the World of Titan and works on improving their business potential.
Besides, each of the Showrooms also has an Authorised Service Centre. This service centre is not only a profitable business by itself but also helps drive traffic to the stores it also adds equity to the showrooms and helps build trust among customers.
Testimony to the high profitability of the Titan franchise is evident from our business associates opting to open a second and, in some cases, a third store.
Our franchising system is built on the premise that the Corporation can be successful only if our franchisees are successful first. We believe in a partnering relationship with our owner/ operators, suppliers and employees. Success for Titan's Corporation flows from the success of its business partners.
Titan is, by choice, an equal opportunity franchiser, with a proven track record of franchising to enterprising women.
A key business partner of Titan in the market place is the redistribution stockist. The distribution channel handles well over 50% of the watch business of the company. The main focus of this channel is market penetration and coverage. Currently we have 65 distributors handling well over 6000 dealers across the country. Titan's growth rate in the marketplace requires us to appoint new distributors every year. The combined stockholding and credit to the market is controlled to stay within stipulated limits. The distributor channel operates independent of all other channels and reaches out to its own set of distinct dealers.
WIPING OUT MARKETING MYOPIA IN TITAN WATCHES
As a manager I have to find the symptoms of marketing myopia in Titan. And also prepare a panacea to cure the myopia. Almost all organization that shows marketing myopia will shows same symptoms. But the remedy for it varies from each case.
The main symptoms of Marketing Myopia in a business organization are as follows.
1.The narrow definition of the business.
2. Pre occupation with technology.
3.The belief that product is forever.
4. Too much faith in mass production.
5.Optimism about the expanding population.
6. Myopia in communication.
Here analyze the causes of marketing myopia and how can we overcome the same in Titan, Bangalore as a manager.
1.The narrow definition of the business.
Based on product type or class and not on the basic need, which fulfill, resulting in the decline or demise is one of the main diagnoses. Myopic vision leads Titan to believe that we are in a product specific business, independent of the generic need.
Top selling brand of HMT mechanical watches lost their market share because they defined the business narrowly, in terms of products they happened to produce at that point of time. HMT stuck to mechanical watch technology at a time when digital and quartz technologies were emerging to fulfill customer’s need for time keeping in more effective manner. Titan changed the basic perception of wrist watches from a utility product to a life style product; but the time keepers of the nation failed to keep their own time.
The case study of HMT made me beware of narrow definition of the business of Titan. So I should keep watching always to the broad definition of business. So I will inform the narrow difference of market to the higher authority. A positive approach of sensitivity towards customer mind is very important.
No slot has to be vacant. That is every consumer or customer of a watch have his own slot in Titan range. Now this range consists of Raga Xylys upto Sonata are satisfying the customer needs.
We should keep an eye on new models new trends and new needs of customers.
Titan deals with the different models base on the following criteria.
By Occasion
Formal
Dress wears
Fashion
Sporty/Casual
Luxury
Economy
Technology
By Brand
Edge
FasTrack
Nebula
Raga
Steel
Regalia
Bandhan
FLIP
Sonata
By Gift Idea
Gift Vouchers
I have to make an extra effort to introduce or change the models appearance or schemes in accordance with the market change. I will follow many techniques to widen the definition of business.
Customize: I will offer a host of special services to personalize customer’s gift and make it even more appealing. To create a unique watch that proudly reflects the customer’s corporative image.
Back Cover Engraving : Can also engrave, customer’s logo or insignia on the back of the watch.
Special Packaging: Special watches deserve special packaging. Titan will designs packaging that will complement customer’s choice of watch.
Value for money - range: There should be a Value for money watch. Here Titan Sonata plays its role. At the same time expensive watches are there like Nebula to satisfy the aristocratic customers.
Story Cards or special tags: Can also design story cards or special tags to attach to each Titan Watch. Of these we can print a special message for the occasion or perhaps a personal message.
Exchange Offer: Titan’s exchange offer is a premium one in its range. India today boasts of approximately 200 million watches that are over ten years old and any one have one of it, who have longed to exchange for a stylish or technologically advanced new one. Titan offers 25% off in every purchase with exchange. The Titan exchange offer will be supported through a hi blitz, powerful, multi-media marketing campaign comprising television, radio, print and outdoor hoardings. The offer can be availed at all world of titan showrooms, including Bangalore showroom, then multi brand outlets, department stores and Time Zone outlets across the country.
2.Preocupation with technology
The technology driven firms manufacturing hi tech consumer product like Titan watches usually afflicts this form of myopia. The top management is often overwhelmed by the profit possibilities of technical R&D. The success of the firm in the past is attributed only to their technical expertise, research and development efforts etc. The firm tends to view itself as a manufacturing organization making things rather than satisfying consumer needs.
I have to keep an eye on over obsession with technology. It will ruin the money and manpower of Titan. At the same time, R&D is inevittable to the success of titan.
Preoccupation of technology some times will be useless. Television, MP3 and Internet on wristwatch are the technology we owned now. But the demand for the above is not so much. At the same time we spend a lot of money on R&D over it.
Global position system Receiver (GPS) on wristwatch is another invention in the field of watch. This invention by Global Watch Co. in Thaiwan is now looking for its customers.
A few ore attention to be given to the pre occupation with technology, which does not play a relevant role in the firm. The firm tends to view itself as a manufacturing organization making things rather than satisfying consumer needs. This problem will ruin the money and manpower of Titan. By the way R&D is inevitable to the success of Titan.
3.The belief that product is for ever.
No industry can ever remain a sunrise industry and no product can continue to be at the peak of its growth curve for long. There are companies organized and operated to create and capitalize on growth opportunities. Industry that assumes itself to be riding some automatic growth escalator invariably descends into stagnation. The history of every dead and dying growth industry shows a self deceiving cycle of bountiful expansion and undetected decay companies who seem to have founded their business practices on the premises that their products have no competition or substitute. That product may obsolete due to some technological innovation.
Titan should be innovative along with the innovation of modern technology. We know the mechanical watches replaced by the quartz watches. Diversification of business is very important in this regard. The world is fast growing. The technology of today will obsolete tomorrow. Method of production, type of technology, need of the consumers, purpose of the product, Change of Govt. policy, Convenience of buyers, Sociological change, changing taste and fashion etc are changed time to time. If we think our product will overcome the above hurdles, with out any innovations is a Himalayan blunder.
We can overcome this difficulty by changing ourselves from time to time. Innovative ideas on watch making and retailing helps Titan to overcome this type of marketing Myopia. Tie up with worlds other watch making companies may help Titan to produce more watches to them. Today the worldwide distribution is carried on through on exclusive distributor in each country, who is responsible for indenting, distributing, servicing, assisting and providing marketing support for the brand.
Titan can offer high quality watches and watch parts for other brands, designed according to customer requirements. We have manufacture and supply watches for several prestigious international brands. Titan manufactures complex watches and almost all the components that go into them.
It includes:
Over thirty different types of high performance jeweled quartz movement calibers.
Cases and bracelets in gold steel and brass finished in a variety of surface coatings including Physical Vapor Deposition (PVD).+
Innovation in quality control will also help Titan to overcome this marketing myopia. Today Titan’s quality compares with the best in the industry and our products are put through rigorous tests for compliances with NIHS and ISO standards. The customer is a guaranteed unparalleled quality and quick delivery at very attractive prices. Innovation can be made in the field o raw materials also. Today Titan source a variety of raw materials such as stainless steels, tools steels, leaded brasses, engineering plastics, tools, consumables, components and specialty movements for our watch manufacturer operations. For jewelry manufacture, Titan procures gold, precision stones, chains, findings, jewelry making tools and consumables. Titan’s vendors are spread across 20 countries, mainly in Asia and Europe.
The needs of diversification and innovation leads Titan to the segment of Eye wear, precision engineering, Machine building and clocks. The company’s recent retail initializes Gold plus jewelry stores for the market and Titan Eye+ eye wear stores for the prescription eyewear market are showing promising sales. While Gold plus stores are present in 12 semi urban towns, Titan Eye+ is being piloted in 5 stores across Bangalore and Nagpore.
Due to technological innovation the existing models or products may obsolete time to time. So Titan should safeguard its position through innovation of new ideas, new models, and new products. The diversification of business is also helpful to progress. Today quarter watches replace the mechanical watches. Tomorrow these quarts watches may replace. New product line may enter. So we were bewaring of it. Innovation and diversification is the only panacea for these myopic symptoms.
4.Too much Faith in Mass Production
The world demand for watches is around 600 million. Indian producers currently make about 12 million watches. Under this conclusion, if we produce 100 million watches, ie. Mass production, considering all the present models will not be viable.
The mass production may reduce the cost of production and sale price. At the same time it is the symptoms of marketing myopia. It gave importance to selling than marketing.
The mass production is favorable only under the following conditions.
1. Where the demand for the product exceeds supply.
2. Where the product cost is high and has to be brought down through increased productivity.
As a marketing manager of Titan, I have to adapt the changing patterns of consumer needs. So we can optimize the quality and quantity of performance of Titan. Today the first quarter of the financial year with the net profit zooming to Rs. 12.64 crore which is three times the net profit of the corresponding quarter in the previous year. Income from operations went up to Rs. 666.59 Crore during the current year from Rs. 449.92 crore during the corresponding period last year, and the company’s profit before taxes increased nearly five times to Rs.25.36 crore compared to Rs. 5.26 crore last year. Capital employed at Rs. 579.23 crore at the end of the first quarter of the current year is also lower compared to 31st march 2007 by Rs. 12.66 crores.
Watch segment grew by about 15% with sales income increasing from Rs.148.68 crore during the first quarter of last year to Rs. 170.92 crore during the corresponding period this year. The jewelry segment grew significantly with sales income increasing from Rs.288.25 crore during the first quarter of last year to Rs.472.85 crore during this year.
5.Optimism about the expanding population
Close to 90% of consumers in India are single watch owners. It is believed that the profits are assured due to an expanding and more affluent population. The demand of watches will increase corresponding to the increase of population is a myopic concept. If the market is expanding on its own firm tend to give up its effort of expanding it.
As the marketing manager of Titan I have take an effort to think about customer needs and product improvement. At the same time other companies in the same field become complacent in their marketing effort, lose sight to the changes taking place around them, and stop thinking about customer needs and product improvement. They become vulnerable to changes in technology, competition and consumption pattern, and to factors related to the economic, sociological and political environments.
In short we don’t produce the product, which is needed by the customer. We should produce needs among customer for our watches.
For that we can adopt several sales promotion and marketing techniques over it.
Today India boasts of approximately 200 million watches that are over 10 years old and one particular customer might also have one, which he may have longed to exchange for a stylish or technologically advanced new one, there I will adopt Titan Exchange offer. The unique exchange offer by Titan, in my mind is a unique one. Customer can bring in ANY old watch of any make, how ever old or new, in any condition, functional or not and receive a flat discount of a particular % on their purchase of any new Titan. Indian consumers generally don’t wish to dicard anything they own. Titan exchange, as a powerful trigger enabling their own a new watch while giving value for their old one. The main objective of this type of offer is to activate the replacement buyers and incentivising them to change their old one for a stylish new watch. This would thereby expand the over all watch market by reducing the purchase cycle. During this special offer, customer can choose from a wide range of Titan watches including offerings such as Titan edge, Titan Aviator, Raga shimmer, Titan Fashionista etc.
This type of offers will be supported through a hi blitz, powerful, multi-media marketing campaign comprising television, radio, print and out door hoardings.
Publicity and propaganda will influence the increasing population.
Award
At the same time increasing population will not be a cause of increasing sales and profit. We can use the publicity and propaganda in this context to increase sales. Different titles and awards got by Titan can be the matter of publicity. Now the Titan industries Ltd. has won SAP ACE 2007 Award for customer Excellence, in the best consumer product sector implementation large enterprises category. The award was in recognition of a knowledge portal developed by Titan industries Ltd. for its watch assembly, sales and marketing and knowledge and business excellence management functions.
Then the growth in the size of the consuming population alone cannot guarantee success for every firm in the industry. In order to succeed, firms must understand the needs of the customer.
Now a day, some people do not use watches, who have the purchasing power. Instead they use mobile phone to know the time. They think watch is an additional burden to them or treated it as an obsolete style. Here Titan or other watch dealers could not get the benefit of increasing population. Then we realize that the growth in the size of the consuming population alone cannot guarantee success for every firm in the industry. In this regard I shall organize the turn over of Titan with a proportion of the needers, not the population. Before that I have to change population to the maximum extent that have the need for watch, particularly Titan watch. Here I will use all marketing sales promotion techniques.
6.Myopia in communication
Every business firm is judged from the quality and contents of its business communications. What, people speak or think about the firm is depending upon what, the firm speaks to them. The policy and commitments of the firm, here Titan is to be understood by public, through its business communication.
Legendary in service, absolute integrity, uncompromising quality, dedication, to core competencies, skilled, capable, and motivated employees, strong alliances, commitment to the community etc is realized by people through business communication of Titan.
The official and business communication should be effective. The business communication towards public is also being termed as advertising. Some time the advertising did not make any change in status quo, even we pay a lot for it. It indicates the effective communication is not done through that. Or it didn’t reached at the targeted audience.
So the business communication of Titan should be at right time, right way, at right manner, to the right audience. We can use logos, mottos, theme music, and quotations etc, which are simple but strong to communicate Titan’s idea.
As a marketing manager of Titan Bangalore, I have to ensure the following things.
• Quick response
• Quick and quality repairs
• Repair guarantee
• Signet points on service billing at watch care centers.
• Titan gift voucher acceptance at watch care centers.
• Credit card acceptance
• Provision for stand by watch
• Wide range of watch accessories
• Conversion of old watches to new on selected design/models
• Home delivery of watches at nominal cost at selected outlets
• Repair of all Titan watches
• Fully automated billing at most service centers
• Dedicated and company trained customer care hostess and service technicians.
The Titan signet is a selected club that recognizes the loyalty of Titan customers at world of Titan showrooms. It is designed to give these select signet members, exciting rewards as well as tangible benefits in recognition of their loyalty to Titan and the world of Titan showroom. These rewards and benefits increase in value as the members increase their purchases from any world of Titan showroom or Titan watch care center participating in the Signet programme. The Titan Signet also provides a platform for direct feed back from these valued customers. The signet membership is valid for a period of 3 years from the date of enrollment. ‘You win some…..and then you win some more.’ That’s the idea behind the Signet Reward Scheme a host of exclusive services and benefits are available to signet members, such as
• Exclusive offers on watches and clocks at the world of Titan, Titan watch care centers as well as on other premium brands.
• Being the first to know about new products and invites to preview.
• Free gift delivery services through the world of Titan
• Priority service at the Titan watch Care centers.
More over I shall very keen against any symptoms of Myopia like
• Shadow of obsolescence
• Population myth
• Production pressure
• Dangers of R&D etc.
I have to take special steps to widen the definition of business. To study the customer needs every time, and market behaviour. And beware of shadow of obsolescence, population myth, production pressure, dangers of research and development etc. Then act upon that. Timely changes widen our panorama. Titan now itself is the symbol of lifestyle more over a time machine. Titan having hung on to its leading position in the market with aggressive marketing is upbeat about the future. By wiping out the marketing myopia from the Titan I can lift up the watch company to sure success.
Titan and marketing Myopia
Today the marketing is not merely the selling or promoting the goods and services. It is the process of planning and executing the conception, pricing, promotion and distribution of goods and services to create exchanges that satisfy individual and organisational goals.
As the marketing manager of Titan watches, Bangalore I should also keep an eye to prevent the marketing Myopia.
The following form of Myopia may apply in a branded watch company.
1. Narrow definition of the business.
2. Pre occupation with a product or technology.
3. The belief that the product id forever.
4. Too much faith in mass production.
5. Over optimism about the expanding population.
Titan watches Bangalore is a branch of Titan group. They have revolutionized watch retailing in India, by setting up a chain of high profile stores. The world of Titan is their face in the market, a store providing an international ambience, showcasing their entire range. This provide the customer with the compute brand experience - making it the most preferred.
Current Network
Over a period of 15 years the chain has grown to 164 showrooms at prime locations across 100 towns in India. These showrooms have grown along with the company, both in business and profits, which is testimony to the succers of the chain.
Titan is the market leader, having a variety of ranges and introducing around 200 new models every year, ensuring sustained growth.
The World of Titan is the face of 'Titan' in the marketplace. Hence, each showroom has a turnover of about Rs. 20 to 30 million a year in large cities and about Rs. half a million a year in smaller towns. All existing showrooms exhibit a consistently high growth of about 15% to 25% every year.
The World of Titan stores show a healthy return on investment of more than 24%. Although the net earning potential of a showroom varies from market to market, in all cases it exceeds market rental value of the property.
Most showrooms break even in the first year and start making profits from the second year onwards.
We have a dedicated retail team with professional expertise in setting up and operating showrooms across the country. This team is dedicated to the World of Titan and works on improving their business potential.
Besides, each of the Showrooms also has an Authorised Service Centre. This service centre is not only a profitable business by itself but also helps drive traffic to the stores it also adds equity to the showrooms and helps build trust among customers.
Testimony to the high profitability of the Titan franchise is evident from our business associates opting to open a second and, in some cases, a third store.
Our franchising system is built on the premise that the Corporation can be successful only if our franchisees are successful first. We believe in a partnering relationship with our owner/ operators, suppliers and employees. Success for Titan's Corporation flows from the success of its business partners.
Titan is, by choice, an equal opportunity franchiser, with a proven track record of franchising to enterprising women.
A key business partner of Titan in the market place is the redistribution stockist. The distribution channel handles well over 50% of the watch business of the company. The main focus of this channel is market penetration and coverage. Currently we have 65 distributors handling well over 6000 dealers across the country. Titan's growth rate in the marketplace requires us to appoint new distributors every year. The combined stockholding and credit to the market is controlled to stay within stipulated limits. The distributor channel operates independent of all other channels and reaches out to its own set of distinct dealers.
WIPING OUT MARKETING MYOPIA IN TITAN WATCHES
As a manager I have to find the symptoms of marketing myopia in Titan. And also prepare a panacea to cure the myopia. Almost all organization that shows marketing myopia will shows same symptoms. But the remedy for it varies from each case.
The main symptoms of Marketing Myopia in a business organization are as follows.
1.The narrow definition of the business.
2. Pre occupation with technology.
3.The belief that product is forever.
4. Too much faith in mass production.
5.Optimism about the expanding population.
6. Myopia in communication.
Here analyze the causes of marketing myopia and how can we overcome the same in Titan, Bangalore as a manager.
1.The narrow definition of the business.
Based on product type or class and not on the basic need, which fulfill, resulting in the decline or demise is one of the main diagnoses. Myopic vision leads Titan to believe that we are in a product specific business, independent of the generic need.
Top selling brand of HMT mechanical watches lost their market share because they defined the business narrowly, in terms of products they happened to produce at that point of time. HMT stuck to mechanical watch technology at a time when digital and quartz technologies were emerging to fulfill customer’s need for time keeping in more effective manner. Titan changed the basic perception of wrist watches from a utility product to a life style product; but the time keepers of the nation failed to keep their own time.
The case study of HMT made me beware of narrow definition of the business of Titan. So I should keep watching always to the broad definition of business. So I will inform the narrow difference of market to the higher authority. A positive approach of sensitivity towards customer mind is very important.
No slot has to be vacant. That is every consumer or customer of a watch have his own slot in Titan range. Now this range consists of Raga Xylys upto Sonata are satisfying the customer needs.
We should keep an eye on new models new trends and new needs of customers.
Titan deals with the different models base on the following criteria.
By Occasion
Formal
Dress wears
Fashion
Sporty/Casual
Luxury
Economy
Technology
By Brand
Edge
FasTrack
Nebula
Raga
Steel
Regalia
Bandhan
FLIP
Sonata
By Gift Idea
Gift Vouchers
I have to make an extra effort to introduce or change the models appearance or schemes in accordance with the market change. I will follow many techniques to widen the definition of business.
Customize: I will offer a host of special services to personalize customer’s gift and make it even more appealing. To create a unique watch that proudly reflects the customer’s corporative image.
Back Cover Engraving : Can also engrave, customer’s logo or insignia on the back of the watch.
Special Packaging: Special watches deserve special packaging. Titan will designs packaging that will complement customer’s choice of watch.
Value for money - range: There should be a Value for money watch. Here Titan Sonata plays its role. At the same time expensive watches are there like Nebula to satisfy the aristocratic customers.
Story Cards or special tags: Can also design story cards or special tags to attach to each Titan Watch. Of these we can print a special message for the occasion or perhaps a personal message.
Exchange Offer: Titan’s exchange offer is a premium one in its range. India today boasts of approximately 200 million watches that are over ten years old and any one have one of it, who have longed to exchange for a stylish or technologically advanced new one. Titan offers 25% off in every purchase with exchange. The Titan exchange offer will be supported through a hi blitz, powerful, multi-media marketing campaign comprising television, radio, print and outdoor hoardings. The offer can be availed at all world of titan showrooms, including Bangalore showroom, then multi brand outlets, department stores and Time Zone outlets across the country.
2.Preocupation with technology
The technology driven firms manufacturing hi tech consumer product like Titan watches usually afflicts this form of myopia. The top management is often overwhelmed by the profit possibilities of technical R&D. The success of the firm in the past is attributed only to their technical expertise, research and development efforts etc. The firm tends to view itself as a manufacturing organization making things rather than satisfying consumer needs.
I have to keep an eye on over obsession with technology. It will ruin the money and manpower of Titan. At the same time, R&D is inevittable to the success of titan.
Preoccupation of technology some times will be useless. Television, MP3 and Internet on wristwatch are the technology we owned now. But the demand for the above is not so much. At the same time we spend a lot of money on R&D over it.
Global position system Receiver (GPS) on wristwatch is another invention in the field of watch. This invention by Global Watch Co. in Thaiwan is now looking for its customers.
A few ore attention to be given to the pre occupation with technology, which does not play a relevant role in the firm. The firm tends to view itself as a manufacturing organization making things rather than satisfying consumer needs. This problem will ruin the money and manpower of Titan. By the way R&D is inevitable to the success of Titan.
3.The belief that product is for ever.
No industry can ever remain a sunrise industry and no product can continue to be at the peak of its growth curve for long. There are companies organized and operated to create and capitalize on growth opportunities. Industry that assumes itself to be riding some automatic growth escalator invariably descends into stagnation. The history of every dead and dying growth industry shows a self deceiving cycle of bountiful expansion and undetected decay companies who seem to have founded their business practices on the premises that their products have no competition or substitute. That product may obsolete due to some technological innovation.
Titan should be innovative along with the innovation of modern technology. We know the mechanical watches replaced by the quartz watches. Diversification of business is very important in this regard. The world is fast growing. The technology of today will obsolete tomorrow. Method of production, type of technology, need of the consumers, purpose of the product, Change of Govt. policy, Convenience of buyers, Sociological change, changing taste and fashion etc are changed time to time. If we think our product will overcome the above hurdles, with out any innovations is a Himalayan blunder.
We can overcome this difficulty by changing ourselves from time to time. Innovative ideas on watch making and retailing helps Titan to overcome this type of marketing Myopia. Tie up with worlds other watch making companies may help Titan to produce more watches to them. Today the worldwide distribution is carried on through on exclusive distributor in each country, who is responsible for indenting, distributing, servicing, assisting and providing marketing support for the brand.
Titan can offer high quality watches and watch parts for other brands, designed according to customer requirements. We have manufacture and supply watches for several prestigious international brands. Titan manufactures complex watches and almost all the components that go into them.
It includes:
Over thirty different types of high performance jeweled quartz movement calibers.
Cases and bracelets in gold steel and brass finished in a variety of surface coatings including Physical Vapor Deposition (PVD).+
Innovation in quality control will also help Titan to overcome this marketing myopia. Today Titan’s quality compares with the best in the industry and our products are put through rigorous tests for compliances with NIHS and ISO standards. The customer is a guaranteed unparalleled quality and quick delivery at very attractive prices. Innovation can be made in the field o raw materials also. Today Titan source a variety of raw materials such as stainless steels, tools steels, leaded brasses, engineering plastics, tools, consumables, components and specialty movements for our watch manufacturer operations. For jewelry manufacture, Titan procures gold, precision stones, chains, findings, jewelry making tools and consumables. Titan’s vendors are spread across 20 countries, mainly in Asia and Europe.
The needs of diversification and innovation leads Titan to the segment of Eye wear, precision engineering, Machine building and clocks. The company’s recent retail initializes Gold plus jewelry stores for the market and Titan Eye+ eye wear stores for the prescription eyewear market are showing promising sales. While Gold plus stores are present in 12 semi urban towns, Titan Eye+ is being piloted in 5 stores across Bangalore and Nagpore.
Due to technological innovation the existing models or products may obsolete time to time. So Titan should safeguard its position through innovation of new ideas, new models, and new products. The diversification of business is also helpful to progress. Today quarter watches replace the mechanical watches. Tomorrow these quarts watches may replace. New product line may enter. So we were bewaring of it. Innovation and diversification is the only panacea for these myopic symptoms.
4.Too much Faith in Mass Production
The world demand for watches is around 600 million. Indian producers currently make about 12 million watches. Under this conclusion, if we produce 100 million watches, ie. Mass production, considering all the present models will not be viable.
The mass production may reduce the cost of production and sale price. At the same time it is the symptoms of marketing myopia. It gave importance to selling than marketing.
The mass production is favorable only under the following conditions.
1. Where the demand for the product exceeds supply.
2. Where the product cost is high and has to be brought down through increased productivity.
As a marketing manager of Titan, I have to adapt the changing patterns of consumer needs. So we can optimize the quality and quantity of performance of Titan. Today the first quarter of the financial year with the net profit zooming to Rs. 12.64 crore which is three times the net profit of the corresponding quarter in the previous year. Income from operations went up to Rs. 666.59 Crore during the current year from Rs. 449.92 crore during the corresponding period last year, and the company’s profit before taxes increased nearly five times to Rs.25.36 crore compared to Rs. 5.26 crore last year. Capital employed at Rs. 579.23 crore at the end of the first quarter of the current year is also lower compared to 31st march 2007 by Rs. 12.66 crores.
Watch segment grew by about 15% with sales income increasing from Rs.148.68 crore during the first quarter of last year to Rs. 170.92 crore during the corresponding period this year. The jewelry segment grew significantly with sales income increasing from Rs.288.25 crore during the first quarter of last year to Rs.472.85 crore during this year.
5.Optimism about the expanding population
Close to 90% of consumers in India are single watch owners. It is believed that the profits are assured due to an expanding and more affluent population. The demand of watches will increase corresponding to the increase of population is a myopic concept. If the market is expanding on its own firm tend to give up its effort of expanding it.
As the marketing manager of Titan I have take an effort to think about customer needs and product improvement. At the same time other companies in the same field become complacent in their marketing effort, lose sight to the changes taking place around them, and stop thinking about customer needs and product improvement. They become vulnerable to changes in technology, competition and consumption pattern, and to factors related to the economic, sociological and political environments.
In short we don’t produce the product, which is needed by the customer. We should produce needs among customer for our watches.
For that we can adopt several sales promotion and marketing techniques over it.
Today India boasts of approximately 200 million watches that are over 10 years old and one particular customer might also have one, which he may have longed to exchange for a stylish or technologically advanced new one, there I will adopt Titan Exchange offer. The unique exchange offer by Titan, in my mind is a unique one. Customer can bring in ANY old watch of any make, how ever old or new, in any condition, functional or not and receive a flat discount of a particular % on their purchase of any new Titan. Indian consumers generally don’t wish to dicard anything they own. Titan exchange, as a powerful trigger enabling their own a new watch while giving value for their old one. The main objective of this type of offer is to activate the replacement buyers and incentivising them to change their old one for a stylish new watch. This would thereby expand the over all watch market by reducing the purchase cycle. During this special offer, customer can choose from a wide range of Titan watches including offerings such as Titan edge, Titan Aviator, Raga shimmer, Titan Fashionista etc.
This type of offers will be supported through a hi blitz, powerful, multi-media marketing campaign comprising television, radio, print and out door hoardings.
Publicity and propaganda will influence the increasing population.
Award
At the same time increasing population will not be a cause of increasing sales and profit. We can use the publicity and propaganda in this context to increase sales. Different titles and awards got by Titan can be the matter of publicity. Now the Titan industries Ltd. has won SAP ACE 2007 Award for customer Excellence, in the best consumer product sector implementation large enterprises category. The award was in recognition of a knowledge portal developed by Titan industries Ltd. for its watch assembly, sales and marketing and knowledge and business excellence management functions.
Then the growth in the size of the consuming population alone cannot guarantee success for every firm in the industry. In order to succeed, firms must understand the needs of the customer.
Now a day, some people do not use watches, who have the purchasing power. Instead they use mobile phone to know the time. They think watch is an additional burden to them or treated it as an obsolete style. Here Titan or other watch dealers could not get the benefit of increasing population. Then we realize that the growth in the size of the consuming population alone cannot guarantee success for every firm in the industry. In this regard I shall organize the turn over of Titan with a proportion of the needers, not the population. Before that I have to change population to the maximum extent that have the need for watch, particularly Titan watch. Here I will use all marketing sales promotion techniques.
6.Myopia in communication
Every business firm is judged from the quality and contents of its business communications. What, people speak or think about the firm is depending upon what, the firm speaks to them. The policy and commitments of the firm, here Titan is to be understood by public, through its business communication.
Legendary in service, absolute integrity, uncompromising quality, dedication, to core competencies, skilled, capable, and motivated employees, strong alliances, commitment to the community etc is realized by people through business communication of Titan.
The official and business communication should be effective. The business communication towards public is also being termed as advertising. Some time the advertising did not make any change in status quo, even we pay a lot for it. It indicates the effective communication is not done through that. Or it didn’t reached at the targeted audience.
So the business communication of Titan should be at right time, right way, at right manner, to the right audience. We can use logos, mottos, theme music, and quotations etc, which are simple but strong to communicate Titan’s idea.
As a marketing manager of Titan Bangalore, I have to ensure the following things.
• Quick response
• Quick and quality repairs
• Repair guarantee
• Signet points on service billing at watch care centers.
• Titan gift voucher acceptance at watch care centers.
• Credit card acceptance
• Provision for stand by watch
• Wide range of watch accessories
• Conversion of old watches to new on selected design/models
• Home delivery of watches at nominal cost at selected outlets
• Repair of all Titan watches
• Fully automated billing at most service centers
• Dedicated and company trained customer care hostess and service technicians.
The Titan signet is a selected club that recognizes the loyalty of Titan customers at world of Titan showrooms. It is designed to give these select signet members, exciting rewards as well as tangible benefits in recognition of their loyalty to Titan and the world of Titan showroom. These rewards and benefits increase in value as the members increase their purchases from any world of Titan showroom or Titan watch care center participating in the Signet programme. The Titan Signet also provides a platform for direct feed back from these valued customers. The signet membership is valid for a period of 3 years from the date of enrollment. ‘You win some…..and then you win some more.’ That’s the idea behind the Signet Reward Scheme a host of exclusive services and benefits are available to signet members, such as
• Exclusive offers on watches and clocks at the world of Titan, Titan watch care centers as well as on other premium brands.
• Being the first to know about new products and invites to preview.
• Free gift delivery services through the world of Titan
• Priority service at the Titan watch Care centers.
More over I shall very keen against any symptoms of Myopia like
• Shadow of obsolescence
• Population myth
• Production pressure
• Dangers of R&D etc.
I have to take special steps to widen the definition of business. To study the customer needs every time, and market behaviour. And beware of shadow of obsolescence, population myth, production pressure, dangers of research and development etc. Then act upon that. Timely changes widen our panorama. Titan now itself is the symbol of lifestyle more over a time machine. Titan having hung on to its leading position in the market with aggressive marketing is upbeat about the future. By wiping out the marketing myopia from the Titan I can lift up the watch company to sure success.
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