Yesterday, Today and Tomorrow

Brajesh Singh103257, SID: RB09028

XLRI, Jamshedpur, PGCBM-15

TIL was incorporated a joint venture between Tata Group of companies and TIDCO.

Titan is a part of the TATA group having a turnover of > USD 22 bn, equivalent to over 2.5% of India’s GDP and having the biggest market capitalization.

Titan is credited with transforming face of Indian watch industry.

Diversified business approaches; forayed into Jewelry, Eye wear and fashion watches.

Emerged as market leader within 4 years of its inception & almost eliminated HMT’s market share.

Offering products for customers with different age, status and preferences.

Titan & Tanishq both bagged 6 different category awards in NID-Business World Awards 2004.

The Watch Division won the coveted JRD QV (Malcolm Baldrige) Award in 2006.

India’s most admired consumer durables company having the most trusted brand -TITAN.

Both Watches and Jewellery adjudged most admired brands for the last 4 years. Also adjudged Retail Company of the year.

Retail Asia and Media Award-Singapore, for Retailing and preferred brands.

Ideator Awards for Titan designers. Best Corporate Citizen – Mother Teresa, Helen Keller, Rotary and

Chamber of Commerce Awards. President of India Award for best employer of the physically

challenged.

From very beginning Titan has invested significantly in advertisement. In 1989, it was Aqura, the trendy range for the youth, colourful, smart and affordable

plastic watches for the youth: The other side of Titan for the other side of you. In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for

the sophisticated India woman who appreciated such things. In 1993, it was Insignia, very distinctive and international-looking top-end watches, for

those seeking exclusivity and status. In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious

sports features (200-m mater resistance, high precision chronographs) for those with the penchant for adventure.

In 1996, it was Dash, the cute and colourful range for kids. In 1997, it was Sonata, the affordable, good quality range for the budget-conscious. In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-

heart. In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches for

those affluent people to whom gold is a precious acquisition. In 2001, it was Steel, the smart and contemporary collection for the young 21st century

executive. And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each of

them unique and fascinating.

Titan is an undisputed leader in Indian wrist watch market. It has captured approx 68% of premium watch segment. Titan has diversified into gold ornaments, accessories & eye wear

segment. Its attempt of going global was partially successful and forced the

management to rethink on the strategy, particularly for EU markets. Stiff competition is being given by mature and stable brands like

Swatch, Tissot, Citizen, Seiko for upper & premium segment business.

Returns on Investment have been showing negative trends as the margins are reduced due to increasing cost of row materials, marketing and skilled manpower cost.

Challenges with Titan are To leverage associated brand value of ‘TATA’ ? To retain the market leadership position and to establish its premium

segment brands (Xylys, Nebula, Orion…) into its band. To penetrate deeper into semi urban & rural customer segments. Making reach till lower middle class & gaining premium customers. To achieve its objective of becoming a Global brand in its segments To increase its CMS (Customer Market Share) and RMS (Revenue Market

Share). To formulate strategies for taking edge over other existing established

brands and ensure profitability to its Middle East, Asia pacific and European business units.

To gain strong foothold in precision engineering & OEM segments

Timex: joint venture with didn’t last longer due to different management approaches. Tata, as known is a slow & steady player wherein Timex was seen an aggressive partner. It was later realized by Tata management that Timex is actually eating Titan’s own share. Which can be termed as un-intentional cannibalization of successful brands.

Maxima: initially Maxima could not do well as people were not very used to for quartz watches and Japanese watches were considered above than any other brand. The branding was also done as Water-resistant watch.

Regalia: The other variants of citizen, swatch were available and when the series was launched, trends were for big size dials were IN fashion.

Classique: The series failed due to its pricing factors. A watch was costing approximately 4K which was too high for middle class customers during 1998-99.

Xylys: Xylys name has not been very friendly to watch lovers as there are international brands such as Tag-heuver, Omega, Hugo Boss, D&G, Cartier etc who have also made entry into indian markets. Mall culture has provided great space & better shopping opportunity for all such brands which have been obstacles for Xylys to be stabilized.

Zoop: This series is a recent (re)launched series of Titan which targets teenagers, school goers and funky style youths. This is modified & corrected version of old Dash series. However availability of variants from Swatch, Timex, are giving very strong competition.

Product related:◦ Core, Technical & Emotional:

The core of Titan products should be latest technology, superior quality and state-of-art designs which will gradually reach at higher level of acceptance.

◦ Pricing factors: The differentiation line between Sonata, Titan- Nebula, Heritage,

Classique, Regalia, Raga, Octane, Theme series (WWF etc) & Orion has to be defined very clearly which will help customers & market forces to give needful impetus of desired brand / product line.

◦ Attributes: Innovative features, attractive designs and Quality in services are

some factors which need more attention to build strong perception about Titan products.

Brand related:◦ Leveraging brand ‘TATA’ in brand architecture: Tata is highly

reputed name in India and since last few years it is also being accepted widely across the globe. A product from Tata gets customer’s trust faster than others. Titan should use this to leverage this for all its product lines. Mother brand Titan should go along with entire product line.

◦ Visibility & TOMA: catalogue marketing, celebrity endorsement, exchange offers, publicity thru electronic and print media (business magazines for Premium/ middle class, sports magazines for youth) are better options for creating higher TOMA and brand awareness. Displays at prominent places will give Titan an added advantage.

◦ Brand recall & recognition: Titan should develop customized advertising & promotion plan to up-sell its low penetration brands like Raga, Nebula, Orion, Heritage and Xylys. Such as Sonata, Maxima have been made.

◦ Social status & acceptance size: some brands like Xylys, Orion and Nebula need to be given more attention as either most of people are not aware about them or there are better substitutes like Swatch, Cartier, Pierre Cardin are available.

◦ Merchandise & POS display: Wrist watches are not limited to be only a timekeeping devices. It has beyond and now have become more a status symbol. Most of the time buying decisions for a watch go impulsive if any specific product is displayed at Posit of Sales.

Reach & channel related◦ Channels of Distribution: To capitalize upon existing retail channels

World of Titan, Time Zone. Deeper penetration in emerging retail chains Lifestyle, Shoppers Stop etc.

◦ Surrogate Retailing: Along with these existing ones, Tanishq show rooms, Gold plus stores can also be explored as retail outlets for premium segment watches. Raga series watches can be made available at leading jewelers stores for women customers. Purchasing capacity comes to peak when women are at jewelers shop.

◦ Exclusivity & differentiation: Dedicated brand shops for prominent brands like Regalia, Orion, Rage etc. Such outlets should not carry other brand below certain price level and can be opened at prominent places across A, A+ cities across the world. This will also work as entry barrier and entry qualifiers and will provide Brand efficacy to customers.

Marketing strategies related◦ Endorsement: message & purpose from brand & brand

ambassador has to be delivered effectively. Along with Aamir Khan, MS Dhoni, John Abraham some child artists like Taare Jameen par

fame Darsheel, Balika Badhu fame girl can also be taken for ZOOP brands.

◦ Premium products like Raga, Regalia, Orion & Octane kinds of products with distinguished portfolio, need strong brand ambassador who can endorse the brand not only in India but can also drive the message for its global business operations.

◦ Brand Orientation & Engagement initiatives are needed particularly for Octane, Heritage and Xylys brands.

◦ Customized marketing plans needs to be developed for transnational markets.

Existing retail & sales channel network of Titan industries is arguably one of the best and robust network of any wrist watch, eye wear and organized jewellery company in India.

Watch & Time keeping devices: More than Men, Women own watches in India. India is an under-penetrated market for watches – only 27 % of Indians own a watch Total estimated market as of 2007 Volume ~ 39 mn units & Value: Rs 2500 Crores (USD 550 Mn) Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume) Market has been split into: Low end, Mass market, Mid market, Premium

Jewellery:

• Size of market: Rs 65000 crores (~ US$ 15 billion)

• Urban market is about 38% of this base.

• Branded jewellery is less than 2% of the overall market

• Importance of jewellery to Indian consumers: Gold is seen as auspicious, an investment, for adornment.

• Product mix: largely plain gold 22kt, with gem set.

• Jewellery constituting less than 20% of the market.

• Key players: Fragmented market, mainly retailer driven.

• Most retailers are unorganized and stand alone, absence of hallmarking

• Increased investment by industry bodies (DTC, PGI, WGC) is spurring rapid growth of the branded jewellery market in India

Precision Industry: growing as a manufacturing base for precision products across industries. Cost pressures and offset requirements guarantee a long term opportunity. High cost of switching for customers. The global market for precision engineering products addressable by Titan is Rs.135,000 cr.

Wrist Watch : ◦ Should continue its focus on premium segment of watches and take edge

over existing brands.◦ Distribution of brands like Hugo Boss & Tommy Hilfiger with Titan brand.◦ Designer watches Raga, Nebula & Heritage should get place at Tanishq

stores so that can also be substituted with gold jewels.◦ Intense marketing plan for Octane & Orion brand is needed so that

acceptance level can touch competitive products. Jewellery:

◦ Emerging demand of Diamond based & designer jewellery to be looked into.◦ To drive plans to develop bonding with house wives & working women.◦ Quality assurance drives to develop credence value and customer’s faith in

brand and product.◦ Standardization of product to compete with ‘me too’ kind of goldsmiths.

Precision Engg. / OEM: ◦ Precision Components: Opportunities in progressive Die-sets, multi-station cross

travel combination tools, multi-cavity precision moulds and forming dies.◦ Aerospace & Automotive solutions: OEM supplies to high tech products that requires

time keeping devices. Consumer durable manufacturers who can give in built time devices in their products.

◦ Should Medical Equipments: Should also capture manufacturers like GE, Siemens, Hitachi, Philips, Ericsson who make electronics/ medical devices.

◦ Calendar & Dash board instruments: Gift items, Bookstores, retail chains, corporate gift etc.

Eye wear:◦ Should give impetus on establishing brand Titan Eye+ so as to it can compete with upper

middle class players like Ray-Ban, ESPIRIT, Cartier, D&G, Diesel and Police etc.◦ Should develop strong portfolio for Sunglass as currently the focus is more on frames.◦ Accessories of Fastrack-product line should also be made available at Titan Eye+ stores

to attracts youth which will build strong customer relationship that will last longer.

Happening India :A $ 270 Billion market !!

Emerging consumption patterns driven by upwardly mobile young adult, working women, the new rich & aspiring middle class.

Changing Consumption Basket - Lifestyle related spends moving up at the expense of Regular spends

Urban working women in India , on an average , spend about 24% of their earnings on enhancing the quality of their own life & on self grooming as compared to 13% on household purchases .

Tanishq & Raga … two very esteemed brands close to hearts of many Indian women.

The Rural and semi urban renaissance and life style change in Tier II and III cities with estimated spend of $34 billion.

Sonata and Gold Plus : Mass focused products that are seizing the opportunities

Top 9 cities account for 30% of urban market, next 130 cities provide an equally large market

Distribution of malls to be 50% in Tier I cities and 50% in Tier II and III cities 50% of India’s population are less than 25 years of age and still young affluent on the rise. India adds around 3 million young earners in the age group 20-24 annually. 80 million new jobs opening up in by 2011.

Wrist watches

Titan Eye+ and Fastrack

Precision Engg.. OEM

Tanishq : Gold & Diamond Jewellery

Miss India Universe Crown Miss India World Crown designed and made by Tanishq

Miss India Earth Crown designed & made by Tanishq