CASE STUDY Titan Industries Ltd: Providing Real Value to Customers

Introduction
Titan Industries Ltd, India’s leading watch
manufacturer was established in 1984, as a joint
venture between the Tata Group and the Tamil Nadu
Industrial Development Corporation (TIDCO). The
company brought about a paradigm shift in the Indian
watch market offering quartz technology with
international styling. Leveraging its understanding of
different segments in the watch market, it launched a
second brand, Sonata, as a value brand to those
seeking to buy functionally style watches at affordable
prices.1
Diversification
In India, gold is used as an ornament as well as an
investment. The inherent demand for gold jewellery
from Indian households has made it a huge industry
today.2
Titan diversified into jewellery in 1995 under the brand
named Tanishq after taking stock of the huge
opportunities and the large size of the jewellery
business in India.
In 2005, in order to capture the market in small towns
and rural India, the company launched its second
jewellery brand; Gold Plus.1
Tanishq has established some new rules in the
jewellery market over the last ten years. It has set a
benchmark for quality in a market rampant with
unethical practices, and also introduced the concept of
professional retailing through a national network in a
disorganized bazaar. The company also focuses on
fashion and style in a tradition bound category. Over
the last 10 years, the brand has consistently delivered
real value to its customers in product quality, retail
experience, and consumer aspiration.2 After its success
in the gold business, the company has diversified int
the optics business by launching a chain of optical
stores. The “World of Titan” exclusive showrooms have
also been hugely successful.
Success Through Rebranding
Titan Industries set a milestone during 2006-207, by
crossing the Rs 20,000 million mark by obtaining a sales
income of Rs 21,360 million. This is a growth of 44%
from the previous year with profit after taxes growing
to Rs 943.3 million as compared to Rs 745.5 million in
the previous year.3 In order to maintain this growth,
Titan as decided to go in for a rebranding exercised for
its watch brands. The company has already decided to
invest Rs 150 million for the next two years. Ogilvy &
Mather, the advertising agency in charge of the
campaign has roped in Aamir Khan to launch the new
campaign. Mr Piyush Pandey, Chairman, Ogilvy India
stated, “Titan has been a restless brand, be it in design
or its advertising. The challenging part for us was to
capture every thing that the brand represents and
show it in a way that is easily understood, engaging and
entertaining

1. Suppose Titan Sonata has launched a new watch. The retail price of this product varies from Rs 920 to 950 in various
showrooms of the country. If a price is randomly selected, what is the probability that it will fall between Rs 930
and Rs 940. What is the average price, standard deviation and variance of the distribution ?

2. Suppose Titan has launched new jewellery designs under the Tanishq brand for working women. Past record
indicates that the mean sales of this brand from various showrooms located across various towns is Rs 20 million.
If the distribution of the sales is normal with standard deviation of Rs 6 million what is the probability of the
generating sales between Rs 15 and 25 million ? What is the probability of generating sales between Rs 15 million
and Rs 18 million ?

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 3. In a busy Titan showroom, suppose the arrival of customers is Poisson distributed with an average arrival rate of
10.2 per minute.
a. What is the probability that atleast 25 minutes will elapse between arrivals ?
b. What is the probability that atleast 12 minutes will elapse between arrivals ?
c. What is the probability that atleast 6 minutes will elapse between arrivals ?
d. What is the probability that atleast 1 minutes will elapse between arrivals ?

NOTES
1. www.titanworld.com/titan/stores/watches/Profile.asp, accessed July 2008
2. Prowess (V.2.6), Centre for Monitoring Indian Economy Pvt Ltd. Mumbai, accessed July 2008, reproduced
with permission
3. Prowess (V.3.1), Centre for Monitoring Indian Economy Pvt Ltd. Mumbai, accessed September 2008,
reproduced with permission.
4. www.thehindubusinessline.com/2008/07/04/stories/2008070451480500.htm, accessed July 2008

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