Samriti Gosain

A brand innovation case study

Why study Titan watches ?

Use of innovation

Broadest range of watches

Brand leader in the country of its origin

Only branded watch company to originate from a newly industrializing country

Became the best brand in a short time

Introduction : History

• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.

WH

O?

WH

EN?

WH

AT?

Introduction : History

• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.

• Established in 1987 • Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team. • Third Indian watch manufacturer after HMT and Allwyn.

WH

O?

WH

EN?

WH

AT?

Introduction : History

• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.

• Indian designer and manufacturer of watches, jewellery and other accessories including sunglasses, wallets, bags and belt. • Precision engineering is another area of specialisation.

• Established in 1987 • Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team. • Third Indian watch manufacturer after HMT and Allwyn.

WH

O?

WH

EN?

WH

AT?

Today, Titan watches account for more than 60% share of the total Indian Watch Market. Sold in about 32 countries through marketing subsidiaries based in London, Aden, Dubai and Singapore.

Titan offers various brands including Steel, Regalia, Raga, Nebula, Sonata, Fastrack, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the HTSE series.

Introduction : History

Evolution of Titan

1984

+

• Joint venture • Electronic watches • 150 designs

1986

+

Digital & ana-digital watches

1989

‘Aqura’ range of watches launched

• ‘Aqura’ sold to Timex • Consultancy services • Marketing strategy outsourced

1991 1992

• ‘Raga’ range of watches launched. • “Spectra” range reintroduced

1994

• ‘Tanishq’ range of watches launched • ‘Insignia’ launched in India

1995

+

‘Sonata’ range of watches launched

1996

Tim

elin

e

‘Dash’ range of watches launched

2001 2000

• ‘Cyber’ range of watches launched • ‘Titan-Fastrack’ launched • ‘Baarah nai toh tera ampaign with pizza hut • ‘Classique’ collection

launched

2004

‘Crown’ range of watches launched

‘Vizag’ range of watches launched

2005 2006

‘Xylys’ range of watches launched

2013

‘Edge’ and Braille watches launched

‘Octane’, ‘Obaku’, ‘Automatic’, ‘Purple’

range of watches launched

Innovation

strategies should lead to inimitability of strategic options that come from certain tacit knowledge elements or embedded organizational processes

1

Strategic options an innovation provides should lead to sustainable competitive advantage.

Innovation should enable a firm to retain superiority in the market place. 2

Strategic innovation should allow a firm to pursue strategic options without loosing its flexibility.

3 Options pursued should lead to durable benefits 4

5

Tech

no

logi

cal

Innovation Increased reach: Retailing

Cycle time reduction

Continuous feedback

Constant review

Multi-brand outlets

Service excellence

Slim watches

Watches for disabled

Better finishes of watches

Designing watches through visualisation

Broader ranges of watches

Robust design of watches

Organ

isation

al Innovation

+

Innovation

Agility and openness to change

Product richness Alliance relationships,

cross-functional teaming and design automation

innovative approach to extend the reach to all major customer centers through the ‘watch supermarket’

concept.

Superior brand reputation

Global brand World–class manufacturing New image driven by innovation

High torque stepper motors for high reliability Vapour deposition technology for appearance parts Cycle time reduction through concurrent engineering World’s thinnest watch movement

Concept marketing instead of product marketing Brand image building in Europe Brand leveraging in other personal product segments

Global procurement Total Quality management at the suppliers end

Training new & young staff to have a new corporate culture Cross cultural marketing

Innovation

Inn

ova

tio

n in

Val

ue

Ch

ain

Conceptualisation

World class manufacturing

Thorough assessment of competitive trends

Customer orientation

Design

Design studio

Networking into the world of design

Design software CAD/CAM

European design ideas

Continuous renewal of models

Operations

Short product realisation cycle times

Rich styles

Integrated manufacturing

Innovative technologies

High quality orientation

Wide range

Distribution

Multi channel distribution

Institutional sales

Dealer training for attitudinal change

Marketing & Sales

Flagship showrooms

Multi-brand showrooms

Selling competitive products

Rapid increase in reach by locating outlets in smaller towns

Rapid brand extension

Service

Front service offers

Spare parts warehouses

Short service cycle time

Intensive training for service excellence

What does all the innovation lead to?

Slim watch design

Titan has claimed to have manufactured the world's slimmest wrist watch branded as Titan Edge with a total thickness of 3.5 mm and a movement of 1.15 mm.

Watches for specially-abled

Better finishes, materials, broader ranges, robust design

Better finishes, materials, broader ranges, robust design

Better finishes, materials, broader ranges, robust design

Brand Extension Titan started a strong Total Quality Management initiative encompassing to extend the excellence it had achieved in watches to other products of titan as well.

Design

Engineering

Manufacturing

Logistic and service support

Competition from lead competitor

Minimum return during sale period

Quality was central the

High torque stepper motors

Durable finishes using vacuum deposition

Large range of styles in a short time frame

Distinct in appearance & style

Art and design studio was set up

Help from European designer

Art software & computer aided design

Watches are elegant & rich in style

Retail networking and richness of product Des

ign

Strategy

Man

ufactu

ring

Strategy

+

‘Telling the time’ product

‘Personal’ product

Rock-solid vision

Best staff-mix

Thorough market analysis

Right market segment

An organisation with: Design Manufacturing competence (Automation) Marketing competence Driven by: Futuristic mindset Contextual insight Business foresight

Volume creation: When Titan entered the market, the share of analog watches was just 5% Target the high opportunity segment Position itself as a premium brand Roadmap

BRAND

CREATION

Rock-solid vision Best staff-mix

Thorough market analysis Right market segment

Why do Indians prefer watches made abroad ? Nature of market Competitor offerings Analyse operation of competing brands Customer requirements Identification of major gaps:

Styling, service Retail reach Showroom interiors Capability of franchisees Attitude of retailers towards customers

Main weakness in the Indian market: No brand had a strong personality

Started the company with a group of executives with rich but varied experiences:

MD from Tata group Professional executives with extensive experience in watch manufacturing Executives with marketing experience specifically in retailing.

Medium range market Large to handle High growth potential

Quick segmentation ‘Doing it right the first time’: Usage of innovative advertising campaign to create & position the brand

Loyalty

Attachment

Sense of communication

High Quality

Trustworthy

Superior

Pride

Status

Social approval

Reliable , sturdy

Long lasting & durable

Chronographs , alarms

Stylish and trendy

No. of models, colors

Segmented approach

Wrist watches Pocket watches

Brand loyalty (What about you & me?)

Brand response (What about you?)

Brand meaning (What are you?)

Brand identity (Who are you?)

RESONANCE

JUDGEMENT

PERFORMANCE

BRAND SALIENCE

Brand Association

REASONS NO. OF RESPONDENTS

Attractive Design

Reasonable price

Brand image

Good quality

39

7

22

25

Reasons for Brand Loyalty

Types of media NO. OF RESPONDENTS

TV

Magazine

Newspaper

Hoarding

46

25

36

15

Advertising

Reaching the customers Speed and surprise are the crux of successful competitive strategy . -Art of War

Increased reach: Retailing

320 STORES 130 CITIES

Exclusive outlets in the best commercial locations in major cities as well as in smaller cities at a fast pace that no other competitor could match. First watch to open exclusive watch showrooms in India.

Increased the number of showrooms, thereby expanding the reach. Increasing the coverage of retail outlets to reach as many as 6000 locations. This is about 10 times the number of outlets of the lead competitor. increase in reach = increase its volume.

SHO

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Titan reduced the time cycle, short cycle time helps in responding to changing customer needs and also helps in surprising competitors. Use of visualization, design automation, concurrent engineering and rapid test marketing.

Service excellence Sustainability of brand reputation comes from service excellence.

Titan started “Titan watch care centres” in major user areas. These exclusive front office service centres provide quality service with a very short response time. This again was an industry-first innovation achieved by Titan.

1 Titan trained its service personnel to have a good attitude to customers when they come to its service centres, so that problems are handled in a customer friendly atmosphere.

2

3 Titan started spare parts centres in major locations to improve parts logistics. The service attitude, the service focus and the service support became the basis of service excellence. This helped Titan to build up customer capital.

Through service excellence, it targeted enhancement of customer loyalty leading to customer retention. Titan, thus, evolved a business model that others found difficult to replicate.

Service Excellence

Service policy

Repair the hurt feelings of the

customer

Repair the watch

Repair the damage to

TITAN reputation

www.titancare.co.in

Repair status

Service news

Service network information

Service feedback

Do’s, Don'ts, Tips

Quality policy & Service offerings

Globalization : International reach

32 COUNTRIES 2000 stores ; 135 million customers

became one of the first brands in the non-consumer goods segment from India to be sold in Middle East, East Asia as well as Europe.

* Regular interaction and systematic analysis of feedback * Training and skill development in cross-cultural marketing * Incremental approach supported by rapid learning and review * Rapid learning and rapid adaptation to changing requirements in new markets. * Continuous communication, dialogue-based goal setting & fear-free feedback.

Globalization : Strategy

Contemporary style + Excellent quality + affordable prices = Global Success

Globalization : Strategizing

Thank You