Titan - pricing PDF

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Summary

this is a marketing based topic. it discusses the strategies used by the titan watches in pricing their products to earn more sales....

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PRICING Titan makes watches under various names:

Titan raga – for the bold and beautiful women of today Zoop – fun and youthfulness Edge – slimmest watch Nebula – crafted with solid 18k gold and precious stones Sonata – stylish and contemporary watches for everyone. Captures the aspirations and imaginations of those young at heart , etc.

PENETRATION PRICING Pricing strategy adopted so as to establish itself in market. Prices as low as in the range of 350 to 600, making it too affordable even for the lower class and thereby, attracting customers.

PREMIUM, SUPER PREMIUM, EXCLUSIVE The titan watches has segmented its various watches brands based on their different pricing as for – low level income, middle level income, high level income. It makes watches under the name Titan – 350 – 900

Zoop – 400-900

Sonata – 400 – 3600

Fastrack – 750-5000 Edge collection – 9000- 20000

Raga – 2000-18000 Nebula – 29000- 6 lakhs

ODD PRICING/ PSYCHOLOGICAL Titan keeps the prices of many of its products ending with ’95 – ’99. This is done keeping in mind the psychological reactions of customers when they see these figures. Customers believe products to be cheaper at these prices than when they are in whole numbers. For eg. Consumers are more attracted towards product when priced at Rs 99 than Rs 100 whole.

PRICING FOR This involves discount offers, gift coupons, etc. Titan provides promo codes, coupons codes with discounts up to 70% on its online stores or during festive season. They provide special offers when purchasing pair watches, making them cheaper than purchasing single watches. Titan also provides gift cards in the denominations off Rs. 500, 1000, 2000 and 5000.

PRICING AS PER GEOGRAPHIC Titan is established internationally and its prices vary in different locations, although the difference in not that much. For eg,

Titan analog watches – Rs 5500 (India), Rs 6500 (Bangladesh) Sonata – Rs 900 (India), Rs 1100 (Nepal) Rs 800-1000 (India), Rs 1600 (Philippines) Within India, titan has divided its price range for rural and urban areas separately. People in rural areas comprise of fairly a very large sector. The range of five-10 women’s and men’s watches were initially be sold at under Rs300 in rural areas to make it affordable for low income people, while the prices in urban remain higher.

COMPETITIVE PRICING This is the strategic pricing done in response to the competitors, to remain in the market. Main competitors – Chinese imports with prices as low as around 100, Indian brands, HMT, maxima, Timex. Timex has cheaper range of watches compared to titan. It has majority in low-end mid range. Maxima too has lower range of watches when compared to titan overall. Titan works on its pricing accordingly wrt its competitor’s prices to remain in competition. But instead of reducing its prices beyond a certain limit, titan provides better quality, designs and premium ranges of watches comparatively which proves to be of an advantage. Also, to reduce costs, titan outsources as well as manufactures in-house the components required to make these watches. Timex sells annually less than 1.2 million watches whereas titan makes sure to sell over 4 million under sonata alone....