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Company Overview
Titan Industries Ltd. is Indias largest fashion accessories manufacturer including watches,
jewellery, sunglasses, and prescription eyewear. Titan Industries Ltd, a Joint Venture
between the Tata Group and TIDCO (Tamilnadu Industrial Development Corporation) began
on 27th July 1984. HMT was first major watch manufacturer in India and undisputed market
leader till the entry of Titan. In 1987 Titan established a manufacturing unit at Hosur for the
making watches. The main objective of the company is to manufacture analog electronic
watches. The Company projected to manufacture 2 million digital and ana-digi watches in
collaboration with Casio Computer Company of Japan. A MOU was signed between Titan
and Casio in November, 1986. Titan exports their watches in 32 countries around the world.
Now it is fifth largest watch manufacturer in the world. Titan Industries launched Tanishq; a
jewellery brand in 1995, In 2002 Titan initiated a new business unit of Precision engineering
components for aerospace, automotive, oil & gas, engineering, hydraulics, solar and medical
industry. Titan industries added Titan Eye+, an eye wear brand in the year 2007. The
company operates in Asia Pacific, Middle East and the UK. Its headquarter is located in
Bangalore, India and employs around 4514 people.
Watch segment
Jewellery segment
1 |
In its silver jubilee year, Titan Industries Limited has come out with a sterling performance.
Sales income for the year 2009-10 was Rs.4,703.12 crores, crossing the billion dollar (US)
figure and registering a growth of 22.2% over last year sales of Rs. 3,847.72 crores. The year
started on a sombre note against the backdrop of a slowdown worldwide but the recovery of
the Indian economy and strategic steps taken by Titan Industries have helped register a
historic performance. Profit before tax for the Company grew by 39.4% to Rs.321.32 crores,
while net profit grew by 57.5% over last year to Rs.250.32 crores.
2 |
Precision Engineering Division of Titan was started in 2002. It has become one of the leading
manufacturers of Precision Parts for Automotive and Aerospace Industries.
The Diverse Product range includes pointers, dashboard clusters like Fuel Gauge,
Temperature Gauge, Gear Shift Indicators, Clocks for Automobiles and any kind of Injection
molded Plastic parts, Electromechanical Assemblies for automobiles, all kinds of pressed and
turned parts for automobiles. The Tooling Sector of Precision Engineering Division
manufactures all kinds of Press Tool, Molds, Jigs, and Fixtures for various industries.
FACE OF TITAN
The Company also runs a one of a kind contest in the retail industry called the Face Of Titan
(FOT) contest to identify the most talented Sales person, Manager & Service personnel
Technician & Cashier. The contest recognizes the best based on a set of parameters that give
a measure of the overall development of the individual in each of the categories mentioned
above and is not solely on sales.
This program was conceived as an assessment centre for frontline staff - by Aparna
Ponnappa, inspired at that time by staff who expressed their desire to 'perform' and 'be
recognized' for what they do. This program enabled the retail wing of Titan to empower staff
to take charge of their own skill development and provided them with a healthy and fun
environment to compete and showcase their own talent.
The contest leapfrogged into the digital era from the year 2006-07 with the introduction of
IT in the capturing of survey data across all of its 200+ stores, that year also saw the
introduction of the data gathered at the store level being used to profile the staff at various
levels using a custom built web based software developed by I.GEN Labs
3 |
IMC Strategies
Personal Selling
The traffic and the transactions: To confirm the effectiveness of the advertising campaign,
Rado can compare the amount of customers and transactions in the periods of before, during,
and after broadcasting by calculating the foot traffic in each of the Swatch stores. This will be
calculated two weeks before broadcasting, during the broadcasting, and two weeks after
broadcasting. Also based on the transactions, Rado can analyze what product of the CreArt
Collection is selling best and can modify the lead product in the media of the Indian market.
Sales Promotion
Online Coupons: Rado can measure the effectiveness of the online coupons by providing
customers a promotion code for online coupons on the official website, Facebook, or Twitter.
Rado then will know the number of customers who use the online coupons, the total purchase
amount, and what online shopping channels they chose to purchase from, such as Rados
official site, Amazon, or Yahoo! Shopping.
Online Ratings: Consumer engagement can be measured through ratings and comments on
the commercials on the Internet. Rado then can understand the customerscommercial
preference, and properly judge which commercial to run.
Print Ad Coupons: If Rado decides to place coupons with a promotion code in printed ads,
like newspapers and magazines, they could measure interest based on the number of
customers who redeem the coupon, the total of the purchase, where they purchase, such as in
Swatch stores or department stores.
4 |
The media coverage is examined in each medium. The success of the IMC strategy will be
determined on whether the news is covered in the main media.
The press
Television
Magazine-General interest
Cyber Marketing
Click-Through Rates
Mobile text message: The click-through rate will measure the percentage of people that
clicked on a CreArt Campaign text message to enter campaign related websites.
Internet: The click-through rate will be measured by the percentage of people that landed on
a Rado-related website and social media site and the duration in which they stayed.
Social Media: Rado MTV Playground and Swatch website, face book and twitter.
Twitter: The Swatch.br group, which was created in June 2009, and has 230 followers as of
today. The goal was to increase the number of users by 15% (by 15 people) during the
campaign. Metrics will include engagement measurements, reach measurements, and trend
measurements. These will measure the number of tweets, retweets, followers, among other
measurements. Progress can also be tracked via TwitterGrader.coms online tools.
Direct Market: Create fashionable posters and brochures that the target market will want
to keep forever. In china as a youth awareness campaign they launched a young design
prize to create a brand image and target market in china.
5 |
To maintain a direct link with end consumers, The Rado has created a retail section that
develops global retail strategies and new approaches to consumer market. The distribution
channels that they have strongly focused on are Tourbillion Boutiques, Tech-Airports,
selected Boutiques, and worldwide distribution.
IMC Mission
The overall IMC mission of the 2009 CreArt Collection campaign is to create a connection
between Swatch group and art in order to increase sales. CreArt combines events, live
music, and monumental video projections with contemporary performance art. Currently,
there are four television spots, each unique to the four artists who are highlighted in this
campaign. This campaign also utilizes a partnership with MTVs Playground website,
among other elements that are further discussed in IMC Tactics.
The Rado watch has a global target: young students or professionals, aged 18-35. The
target embodies youthful, provocative, stylish, and artistic traits. The wearable art is
suitable for this target and any casual and joyful moment they might experience. Based on
VALs, these people are Experiencers and Strivers. Experiences are motivated by selfexpression and are avid consumers who spend a comparatively high proportion of their
income on fashion, entertainment, and socializing. Their purchases reflect the emphasis that
they place on looking good and having cool stuff. Meanwhile, Strivers are trendy and fun
loving. They favour stylish products that emulate the purchases of people with greater
material wealth.
6 |
Political Factors
100% FDI is allowed in the Gems & Jewellery sector and Watch sector through the
automatic route. (Investment Communication, n.d.)
Government provide excise duty free zone where companies establish their
manufacturing units and obtain policy benefit.
(Example Titan assemble his manufacturing unit in Uttrakhand which is excise
duty free zone) (India Extension Bureau, 2009)
Social Factors
Gift trend of watches and jewellery in special occasions in India support watch and
jewellery sector.
Indian Life style is improving which is supportive for Jewellery and watch sector.
The Indian gems and jewellery market is set to cross US$ 26 billion by 2012, on the
back of getting better lifestyle and availability of skilled labour.(Investment
Communication.)
7 |
Indian Diamond Institute (IDI), National Institute of Design (NID), National Institute of
Jewellery Design (NIJD) and National Institute of Fashion Technology (NIFT) have had a
substantial impact on development of the jewellery sector in India.
Technological Factors
Companies are using innovation to establish their brand in the market (ex-Titan
produce world slimmest watch).
Innovative technologies certify the finest use of gold in the electronics sector.
Japanese companies have come to Indian market with their highly technological
watches.
8 |
Swot Analysis
Strength
Tata is finest and reliable group of companies name in India and Titans collaboration
with Tata has helped them to establish their brand in the market.
Titan is market leader of watch industry in India with 60% market share.
Titan has efficient customer touch point (300 exclusive World of Titan' showrooms,
740 after-sales-service centres, 113 Tanishq boutiques and Zoya stores, 28 Gold Plus
stores, 88 Titan Eye+ stores)
Titan has capable Production capacity they have 11 manufacturing units in India.
Weakness
Opportunity
Titan can venture into different sector, as Titan doing innovation in their services
where they launch design studio where they did designer work for titan watches,
Tanishq jewellery, and fastrack gogals and bag. In 2009 Titan launched Titan trophy
where they made trophies for various companies.
Titan has developed foreign potential market, as now they are exporting watches in 32
countries.
The estimated annual watch market size is around USD 195 million. The average
growth rate is 10 -15 percent per year. (World amazing records, n.d.)
In India more than 58% of the population is under 25 years and more than 80% of the
population is below 45 years of age. (World amazing records, n.d.)
9 |
Expected to grow at 40% p.a. to US$2.2 billion by 2010, India is the fastest increasing
jewellery market in the world. Estimated jewellery export revenue of up to us $ 25-30
billion in next five year .(Investment Communication of India, n.d.a)
The auto component industry in India has possibility to grow at a CAGR of 13% to
reach US$40 billion by 2015. (Investment Communication of India, n.d.b)
Threaths
Swiss automatic, stylish and super premium watches & Japnese automatic and new
technological watches have increased the competition.
Too many players will dilute the market & the profit margin.
Mobile phones are also a threat for watches in mass market. People prefer 1000rs
mobile in which they get calculator and alarm watch.
10 |
WEAKNESSES
Brand image
Market segments with large potential:
big spenders.
Customer value and offered after sales
service in a showroom environment.
OPPORTUNITIES
Nearly 34 million watches are sold
through gray market channels.
THREATS
Too many players will dilute the
market & the profit margin
11 |
Sales(in crores)
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Watches
1060
1040
1020
1000
980
Sales(in
crores)
960
Sales(in crores)
940
920
900
2007-08
2008-09
2009-10
880
2008-09
2009-10
12 |
International Operations
The Company export turnover of Rs.101 crores during the year. Exports include sale
of watches and precision engineered components
13 |
Competitors
Top competitors
According to Data monitor (2010) these are main competitors in watch and jewellery
sector.
HMT Ltd.
Shift in
structure of
demand
Industry
rivalry
Emergence
of distinct
consumer
segments
Emergence
of new
channels
More awareness of brands and global trends among rich urban consumers
Introduction
Growth
Maturity
Decline
Obaku
Xylys
Sonata
Royal
WWF
Raga
Nebula
Regalia
Orion
Purple
Edge
Dash
Zoop
Octane
15 |
Fastrack
In growth stage sales increases because customers aware the brand and its quality so
brand needs more attention on 4ps of marketing mix for establishing brand
preference.
In maturity stage brand set its position in customer mind. Brand main goal is to
maintain market share.
In decline stage sales begin to decline as the market saturated, brand technologically
absolute, or customer taste change.
Stars
Question mark
Cash Cow
Dog
10
0.1
Titans jewellery unit come in star because it has a high market share in fast
growing sector. Jewellery sector may generate cash but model predicts that
jewellery units will have a very strong need to support their growth.
Titans watch unit come in cash cow because it market leader in Indian watch
market. Watch unit has large market share in a slow growing Industry. Because of
their market position Titan watches generate cash.
17 |
c) Ansoff Matrix
Ansoff Growth matrix is a tool that helps companies to grow depends on whether it
markets new or existing products in new or existing markets.
(Nag, 2008, P.245)
(Ansoff Matrix Model)
Existing
Existing Product
New Products
Market penetration
Product development
Market development
Diversification
Markets
New
Markets
Market penetrationTitan has two brands in jewellery segment and Indian jewellery industry growth rate
is 40% pa. The company promote their brand at high level in this growing industry.
Market developmentIndian Tier II and Tier III cities are growing rapidly and Titan SBUs Eyewear and
Jewellery sector need more retail network to reach them.
Product developmentTitan has good opportunity to introduce new technological watches like iPod watch
(music enable), voice recorder watch, hard drive watch and USB interface to control
it. Because Titan is market leader of Indian wrist watch market with 60% market
share and company have to do innovations in their products for maintaining their
market share.
18 |
Segmentation
Target Customer
Titan Watches
Casual Wear
Mid-premium Class
Edge Watches
Premium Class
Nebula Watches
Jewellery watches
Octane Watches
Sporty
Premium Class
Casual wear
Premium Class
Orion Watches
Casual wear
Mid-premium Class
WWF Watches
Nature lover
Mid-premium Class
Party wear
Premium Class
Zoop Watches
Kids
Premium class
Trendy
Obaku Watches
Casual wear
Middle class
Automatic Watches
Premium Class
Xylys Watches
New-age achiever
Youth
Mass market
Sonata Watches
Casual wear
Mass market
Party wear
Tanishq jewellery
Party wear
Titan Eye+
Casual, Trendy
Bags, Belts.
19 |
Positioning Strategy
Titan mainly focus on two positioning strategy for their watch brands
Lifestyle
(Nag, 2008, P.125)
Xylus
Nebula
500
1000
2000
4000
5000
10000
Zoop
Fastrack
Fashion/Sporty
Analyse two web pages for making Titan perceptual Map (Infibeam, 2010a )(Titan, 2009c)
20 |
20000+
Titan previous tagline was Whats your style, by which they want to create
perception in consumers mind as a fashion accessory. Titan repositioning itself with
new tagline Be More with this new campaign they move from style statement to
personality statement. Titans brand ambassador Aamir khan provides much needed
frame to fire.
Fastrack is a brand for youth. Fastracks brand ambassador actor Genelia D'Souza and
cricketer Virat Kohli using tagline Move on in television campaign and Fastrack
want to create perception that we are sporty, stylish and moving towards Success.
Xylys positioned as a premium class watch. They are targeting new age achiever. By
their new television campaign they Creating perception that Xylys is a exceptional
brand, which can change your thinking in this campaign they are using tagline You
dont possess a Xylys, it possesses you
Eye+ is being positioned as a style foil. Eye+ has the tagline Kuch To Hua Hai"
meaning Something has happened to you". In this campaign they are creating
perception that Eye+ makes you attractive and Eye+ is nothing but very basic.
21 |
Promotional Activities
The company use different communication technique for promoting their brands.
a) Advertising media:
Print(Magazines, newspaper)
Internet
Hoardings, billboards.
b) Public relation
Gift concept (Any customer picking up a Nano booking form from a World of Titan
outlet gets gift voucher worth Rs 200.)
Exchange offer (Aug 16 2010 Titan Exchange Offer 2010. The exchange offer
allows the customer to avail a flat 20% discount on exchange of any old watch)
c) Sales promotion
Sponsorship
Seasonal campaign (Tanishq, successful promotion the Queen of Diamonds in 200910 first quarter of the year, Jewellery segment sales grew by 26.8 %.)
Titan uses their brand ambassador for promoting their brands which suites brand
personality
Titan: Aamir Khan
Sonata: Mahendra Singh Dhoni
Raga: Amrita Rao
Xylys: Rahul Bose
Fastrack: Genelia dsouza, Virat Kohli
22 |
Titan Customer Service centres are certified with the ISO 9001 & 14001
certification, focuses on the best post-sale experience and complete customer
contentment
The company encourage their employees give fast and better services to
customers.
Titan Customer Service also sale spares and accessories, such as batteries, leather
and metal bracelets. Staffs actively encourage customers to use only original
spares in order to ensure quality and satisfaction
Titan authorised Service Centres are attached to the Multi-brand outlets both offer
quick and high-quality service for all types of watches.
To ensure good quality and customer satisfaction Titan Industries gives various
schemes.
Titan's loyalty Signet program is component of Titans effort to retain and value its
loyal customers. Under this program they give membership to their customer for
joining the club.
Titan gives opportunity to their customer every year to exchange their watch by new
one in Exchange Offer Campaign.
23 |
Pricing strategy
Titan Industries mainly used three types pricing Objectives
i) Market share - In this objective product capture market share price main purpose
is serve maximum people. (i.e. Titan, Sonata, Fastrack, Goldplus)
ii) Market skimming product main objective is maximize the profit and attract
price sensitive customer. (i.e. Titan Nebula, Raga, Tanishq)
iii) Value-based pricing - product based on the value it creates for the
customer(zoop)
24 |
TITAN
Mass Market 400-1,500
Mid-
HMT
MAXIMA
400-1,500 380-1,200
TIMEX
CITIZEN
600-1,500
2000-4,000
-----
-------
2,500-6,000
2,760-6,000
Premium
5,000-10,000
-------
-------
6,000-10,000
8,000-14,000
Super
10,000-85,000
--------
--------
premium
14,000-31,100
Premium
Distribution of products/services
Titan Industries operates stores under the flagship of World of Titan, Tanishq boutiques,
Zoya Stores, Gold plus Stores, Titan Eye+ Stores. It also provides after sale services, home
delivery, and repairing services of watches. The company expanding its retail network with a
net addition of 52 stores of Watches, Jewellery and Eyewear businesses. As on 31st March
2010, the Company has a total of 539 stores, with over 6, 85,000 sq. ft of retail space.
25 |
Titan Industries Limited tied up with Sankara Nethralaya for supporting their Titan
eye+ brand.
The company tied-up with Essilor and Kodak for manufacturing lenses
Titan has entered into an exclusive sub-licensing arrangement in 2003 with GVM
International Ltd, for marketing and distribution of Tommy Hilfiger watches in
India.
Diversification
Diversification into jewellery sector, with upper class and middle class brand Tanishq,
Goldplus. Because Indian jewellery sector is unorganized and one of the fastest growing
sector of India.
26 |
The Titan Design team received 7 accreditations at the National Institute of Designs Business World Awards, including the 'Young Design Entrepreneur of the Year'.
Titan retained its ranking as the 'Number 1 Brand' in the Brand Equity Survey, in the
Consumer Durables category.
Strategy Recommendation
1. Expand the showroom numbers in Tier II and III cities Titan eye+, Fastrack and
tanishq)
2. The company should diversification in other products (fastrack Belt, Cap)
3. Titan should launch new brand in premium goggle market
4. Promotion in foreign market
5. Promotion campaigns of Sonata Yuva collection & TitanEye+ on Internet advertising
(Tier2 &Tier3 cities for new age achievers)
6. More focus Jewellery segment because In jewellery Market growth rate is 40% p.a.
27 |
The opening of the Indian market and the arrival of premium Swiss brands has certainly led
to Indian consumers being exposed to global brands, styles and various price levels. To the
Indian consumers, the high price of Swiss watches has helped them to realize the value of
Indian brands, particularly of Titan, which offers equivalent quality, but at lower prices and
with better distribution and service same time it has also exposed them to real quality and
style. Titan has shown its differentiation, and customer centric approach which helped them
to get the market. Whereas Rado is maintaining its international standards and targeting a
totally different class, but if they really want to compete Titan in Indian market they have
to reframe their pricing strategy by launching some medium priced watches with
international standards to target mass. It also need to target different Indian masses with a
wide range of differentiated products.
Both the companies had a lot to learn from each others unique strategies in all respect.
28 |
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