SEGMENTATION OF ROLEX AND TITAN

AAKRITI BHUPAL
DIKSHA THARAD
GETSHEE P
SHRIYA RAJGARIA
YASH ALMAL

Narsee Monjee Institute of Management Studies, Hyderabad.

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Abstract

Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share traits such as similar interests,
needs, or locations. Market segmentation makes it easier for marketers to personalize their
marketing campaigns.
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Introduction
Rolex is a swiss luxury watchmaker. The company and its subsidiary montres tudor sa design,
manufacture, distribute and service wristwatches sold under the Rolex and Tudor brands.

The motto and slogans of Rolex's company is "A CROWN FOR EVERY ACHIEVEMENT"
Rolex was founded in 1905, in London,United Kingdom by Alfred Davis and Hans Wilsdorf.
And its Headquarters is in Geneva , Switzerland and the current CEO is jean-Frederic Dufour.
And the company’s revenue is about 7.9 billion USD (2020).

Titan is India's pioneer manufacturer of Quartz watches.It’s the first company who introduced
designer watches in India.Titan edge, a completely indigenously developed watch that is
recognized as the slimmest (1.15 mm) water resistant watch in the world. Distict and stylish
watches in gold and leather It also has contemporary watches in stainless steel and casual
watches for youngsters for outdoor wear .The tagline of Titan is BE MORE.

Titan was founded in 1984, in Karnataka , India by Xerxes Desai. And its Headquatres is in
Bangalore ,India and the current CEO is Suparna Mitra. And the company’s revenue is About 3.7
billion USD. Titan is an Indian brand with International styling and unlimited variation. Large
network of after sale services and exclusive stores.

Marketing Segmentation

Market segmentation is the activity of dividing a broad consumer or a business market, normally

consisting of existing and potential customers, into sub-groups of consumers (known
as segments) based on some type of shared characteristics.

There are four key types of market segmentation that you should be aware of, which include
demographic, geographic, psychographic, and behavioral segmentations

Market segmentation assumes that different market segments require different marketing
programs – that is, different offers, prices, promotion, distribution or some combination of
marketing variables.
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 Insights from segmentation analysis are subsequently used to support marketing strategy
development and planning. Many marketers use the S-T-P approach; Segmentation → Targeting
→ Positioning to provide the framework for marketing planning objectives. That is, a market is
segmented, one or more segments are selected for targeting, and products or services are
positioned in a way that resonates with the selected target market or markets.

STP Model

The STP model is a Main concept in marketing that is the key to serving a market successfully.
STP refers to three models : segmentation, targeting, and positioning. Marketers segment
markets and identify attractive segments to target, before developing suitable positioning
strategies and allocating resources to priorities marketing activities.
Segmentation
The STP model starts with dividing the market, which is called market segmentation. Market
segmentation refers to the division of a large market into identifiable and distinct groups
(segments). Each of these segments has common characteristics and needs, and displays similar
responses to marketing actions. Various segmentation criteria can be used to divide up the
market, including demographic, geographic, psychographic and behavioral variables.
Targeting
The second part of the STP model is targeting. This refers to determining which,of the segments
which are not covered should be targeted and made the focus of a comprehensive marketing
programme.
According to the popular “DAMP” approach to targeting, as defined by Philip Kotler (1984), for
market segmentation to be effective, all segments must be:
Distinct: each segment must clearly differ from other segments, which makes different
marketing mixes necessary.
Accessible: buyers must be able to be reached through appropriate promotional activities and
distribution channels.
Measurable: the segment must be easy to identify and measure.
Profitable: the segment must be sufficiently large to provide a stream of constant future
revenues and profits.
Positioning
The last part of the STP model is positioning, which means to ensure that a brand occupies the
right spot in the mind of target consumers. Positioning is the means by which goods and services
can be differentiated from one another and thereby give consumers a reason to buy. It
encompasses two key elements. The first concerns the physical attributes, functionality, and
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capability that a brand offers, such as a car’s engine specification and design. The second
element concerns the way in which a brand is communicated and how consumers perceive the
brand relative to competing brands in the marketplace.
STP Model of ROLEX

The market for Rolex is pretty specific: people with purchasing power that are willingness to
invest a good amount of money in a watch and also in luxury accessory.

Marketers for the company segment, the market by demography, especially by income and also
focus on age above 25 and focus both for male and female. Income levels influences consumers
needs and determine their buying power. These characteristics are relevant in the fine watch
industry. Rolex understands the PSYCHOGRAPHIC and provides both dress watches and Sports
watches and by giving options to its costumers Rolex increases market share and profits.

As an example, in New York you can find a Rolex store or retailer all over the upper east side,
where the income rate is the highest in the city. A clear example of Geo
demographic segmentation. Characterized by potential customers and lifestyle.

Positioning: Rolex made us believe through its products that they are the most effective within
the game. Potential customers will always consider Rolex when buying a fashionable watch. By
being a pioneer in many segments of the industry, Rolex made us perceive the brand as
the parameter of quality. The brand occupies number one spot within the watch industry over the
years and it's presumably to remain this manner.

In GEOGRAPHIC , Rolex is preferred only in Urban areas only and Behaviour wise Its
preferred best for Social Gathering and also for Best formal events .

STP Model of Titan

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The market for Titan is Broad segment which focuses on The rich , middle men and also the
Lower. POSITIONING : Titan is positioned as a premium brand providing high quality
products.Titan initially pioneered as gifting watches.Customer woofed up with ugly time
machine welcomed the brand titan .Repositioning as a fashion accessory.Titan was careful in
keeping the brand above celebrity.The advertisement were fresh and neatly executed .The ideas
was to make watches that would be seen as style & fashion accessories .Aamir as a brand
ambassador as an attempt to broad base the appeal of titan brand.

Earlier fast track was targeted at 20-25 year old and positioning doing the line.“cool watches
from Titan”

The market by demography focuses on small as well as 70 year old people ,both for men and
female.Titan understands the PSYCHOGRAPHIC as it is a Cultural , sports and also casual
outdoor oriented watches and the Social Class of Lower to Middle to high income group and
Semi urban and urban groups are the targeted Geographic of Titan . Titan is generally worn for
Formal as well as informal events

Comparison Applying Marketing Mix

The marketing mix has been defined as the "set of marketing tools that the firm uses to pursue
its marketing objectives in the target market". Thus the marketing mix refers to four broad levels
of marketing decision: product, price, place, and promotion.

Rolex Product Strategy

• Rolex were the first company to introduce waterproof wristwatches, first to introduce
wristwatches where the date and time on the dial changed automatically, first to introduce
wristwatches that showed two time zones together and the first company that earned
chronometer certification. Their products are known for its accuracy and the watch
movement is very accurate. Rolex also offers 9 varieties of watches for men collection
and 6 models for women’s collection. The series of Rolex products are
• CELLINI

• DAY-DATE

• DAYTONA
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Titan Product Strategy

• Titan can launch the handcrafted watches into the market. Titan provides a choice for
customer to customize the wristwatch. Titan can give customer to choose the shape,
colour, functions (chronograph, alarm etc), and strap (platinum, gold, silver, jewellery
etc) to assemble own wristwatch which is suits to his or her style. In children segment,
children have opportunity to design own wristwatch or choose the cartoon which they
like it. The delivery time for the custom wristwatch is up to one week after customers
make the purchase. Titan will give a three days trial period for customer to feel the watch,
whether suitable to them or not. This special innovative product strategy can help Titan to
attract more new customer and beat the international brand watches The series of
products are
• RAGA

• FASTRACK

• OMEGA.

Rolex Price Strategy

Rolex caters to a niche segment and it sets premium price for its products. The prices of
watches range from $5,000 and go beyond millions. Basically, the prices of the products are
based on the model and the cost of the materials used. The marketing mix pricing strategy of
Rolex is based on quality, type and competition. Additionally, labour cost is also high as
highly skilled workers are required to make these masterpieces. Rolex wrist watches are
perceived as an exclusive product made for wealthy class of people. Rolex is a price setter in
the market and hence does not set its prices for the products based on its competitors, rather it
sets the price for its own products. Also it never offers any kind of discount or sales offer to
the customers. Hence it can be said that Rolex follows high end exclusive pricing strategy.

Titan Price Strategy

Titan should practice the competitive pricing strategy in the low end product. Titan should adjust
the price match with the competitors offering because these segment consumers are very price
sensitive and they just saw a wristwatch as a time keeping device. Titan practice the competitive
pricing strategy able to get it lost market shares from competitors in the middle segment and
target the larger scale of consumer especially in the rural market. It is a not a luxury brand so the
price range is 500 Rs –1 lakh INR.

Rolex Place distribution

Rolex maintains high level of accuracy in terms of its mechanism through its in-house
manufacturing plants. Most of its watches are manufactured in Switzerland and then distribution
takes place through certified dealers. Rolex believes in making personal bonding with the clients.
It allows its retailers to sell at most two watches in year as it believes in maintaining its premium
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value. Rolex does not sell its products in smaller stores, rather it targets upscale areas. The
products are available in selected and premium showrooms in order to conserve its brand value.
It also does not promote sales through internet.
Titan Place distribution

Nowadays, people are busy on working and do not have free time to shopping. Online
shopping is a good channel for customer to shop. Titan should establish website by
providing feature of online shopping. In the website, Titan offer whole range of watches
which start from general watches to premium watches. After customer makes the
purchase, Titan should delivered directly to customer door on next day. This strategy
able helps Titan to attract the new customer who prefer purchase products online and
also can enhance Titan image by providing great sales and services.

Rolex Promotion

Rolex company is known for aggressively promoting its watches. The promotional strategy in its
marketing mix strategy is comprehensive and uses all media. Logo of Rolex, it quite simple and
contains a crown. It shows that the crown is precious and only lucky ones get to wear this crown.
It depicts its product as symbol of prosperity, success and luxurious brand. It also adds to the
social status of the user. Rolex promotes itself by sponsoring with high profile events such as car
races, Australian open, Wimbledon and many golf tournaments. Rolex tries to advertise itself
through its special connection with tennis wherein Rolex is an official time keeper. It has always
marketed its product as personalised watch for each and every high end customer. Rolex
introduced their own Magazine. The brand has been associated with global celebrities for
endorsements like tennis superstar Roger Federer. Hence, this concludes the marketing mix of
Rolex.
Titan Promotion

Titan ties up with various magazines, television and outlets where Titan watches were given as
gifts for winning a particular contest. watches placement in the movie and TV serial can raise the
memorable of the brand and increase the sales of Titan. It also interested in linking with well-
known celebrities. It introduced a contest on cartoon network.
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References
https://trackmaven.com/marketing-dictionary/market-segmentation/

http://www.managementparadise.com/knt.nallasamygounder/documents/4877/segmentation-
targeting-positioning-of-titan/

https://www.mbaskool.com/marketing-mix/products/16757-rolex.html#:~:text=Marketing
%20Mix%20of%20Rolex%20analyses,have%20helped%20the%20brand%20grow.

https://www.ukessays.com/essays/marketing/strategy-plan-of-titan-watch-industry-in-india-
marketing-essay.php