FIVE ECONOMIC PRINCIPLES PERTAINING TO TITAN

1.  1   Price discrimination      -  It refers to the pricing strategy where different prices are charged for different customers. Therefore, if we take a look at titan, Titan manufactures according to the needs and wants of customers. Titan creates iconic time pieces that includes old age art of watch making. It offers exclusive range for women watches as RAGA which symbolizes epitome of grace, OCTANE for confident men and also has a special segment for kids. Hence it offers different products for different customer segments according to the demographics of the population.

2.    2   People face trade-offs- In order to get something  you want, you need to sacrifice something else you want. There are many competitors in case of Titan such as FastTrack , Sonata etc.. Therefore people might face trade-offs in respect to what to buy and what not to buy.

3.   3    People respond to incentives- Incentive changes the behaviour of people.Titan offers exclusive offers on its watches accessories and jewelry. For example Titan launches seasonal offers such as 20% off on jewelry, 40% off on  watches and other accesories. Therefore people generally wait exclusively for festive seasons.

     4  Law of supply- Law of supply states that as demand changes, quantity supply also changes. When titan offered RAGA, as its first premium watch collection, people had a huge demand for the watch, which created a shortage of supply.

5  5 Opportunity Cost- The cost of next best alternative is termed as opportunity cost. The cost for which people give up buying other brands for Titan is what is the opportunity cost for titan.