Titan plans to make a foray into two new categories—leather accessories and sunglasses. A foray into leather accessories will be made under the umbrella brand Titan, sunglasses will be marketed under its existing sub brand FastTrack targeted at the young, fashion conscious consumer.
According to industry analysts this will be Titan’s third diversification since it commenced operations in 1986 as a watch manufacturer and later diversified into jewellery in 1994.
Titan’s new foray will begin with a test marketing drive in Bangalore and after gauging its success will be taken forward to other cities. While the products will be sourced from independent units, the company will rely on its existing distribution network to market and distribute it.
The move clearly is in the wake of the company’s decision to position itself as a personal adornment company rather than just as a watch and jewellery entity. The company has earmarked an advertising budget of Rs 1.5 crore to promote its latest offering—the slimmest watch in the universe—Edge. Handled by advertising agency O&M, the multimedia campaign comprises three spurts of TV ads, billboards, in-store display material and direct mailers. The company is not using print medium initially. Titan’s annual advertising budget is about Rs 30 crore.
At present, more than 70 per cent of the company’s revenue comes from watches, while the remaining comes from Tanishq, its jewellery division.
Source: Financial Express