TITAN INDUSTRIES-WATCHES

Executive summary:

Titan s watch segment is the India s chief producer of watches and ranks fifth in the world in Production of watches. Company really understands the psyche of consumer and they offered quality products in Classical design with superior technology. Today the company has model for every prices segment and every market. Basically it deals with Titan alone holds 70% market share in domestic level whereas 60% in organized market. As our Marketing Objectives is to increases Market Share of the company by 5% in the coming year as well as to increase the profitability of the company by 10%. The competitor are also playing an important role to grab the market share .We as the Marketer try to increase the market share by grabbing the opportunity from other company. To achieve this company have to follow the marketing strategies, which basically include the MARKETING MIX. The marketing strategies basically include the 4 ps. There the marketer have to focus at first on PRICE, which basically for The titan is not affordable in the Mid Segment, where as the competitor like HMT and Maxima are doing good business by holding market share of 45% where as titan hold the only the 32%,there fore it is important for the company to reduce price in mid segment. Though in the improperness or in innovation of the Product, Titan doing well, but there is need of few changes. For example HMT, the nearest competitor innovate BLUE CHIP in the watches. We also have to implement this type of innovation to bring the flexibleness in our product. As it is also important to do some creativity in advertisement by showing the importance of Time to the mass. The company brand promoter is Amir Khan but the company can make it attracive by t endorsing Katrina Kiaf. The place can be taken into consideration ,as it is need foe the company to open some show rooms in the rural area and as the company don/t have so much market share in the foreign market ,so to expand the business company should launch its showroom all over the globe in the more number.

TITAN

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Market share of the competitor in domestic market HMT Maxima Rado Casio 19% 13% 7% 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides watches for all segments, like from low-cost Sonata for first time user, Fast-track for the trendy young, Dash for the kids, and the higher priced Regalia and Nebula to the premium segment customer. The Indian watch market is estimated at 25 million watches a year, where the domestic sales is 6 million watches per annum. The rural segment is the diverse market in the present scenario. The key success story of Titan is capturing the rural market on a large scale. The range costs is between Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms and is sold mainly in small-town in India. Though the company faced enormous challenges from its big list of competitor, the company still in the number one position in domestic market because of the weakness of the competitor. The company becomes more reliable and more acceptances to the consumer because of its marketing mix. The company has adopted the new marketing innovation to improve the feature of the product by time to time. Though the current financial environment is not in favor, but the company performing well and saw an increasing trend in the profit chart. The company trying hard to convert its weakness into strengths and threats into strengths and threats into opportunities by bring revolution in the product style, model, features, pricing policy, product quality, etc. Companies certain initiatives and policy such as new innovative design, guarantee, the research and development, wide dealer network, committed service team, discount and offers make the company.

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Titan wristwatch brand is the part of titan industry. wide variety of models and effective marketing helped Titan to capture the market in its born stage. The company today has a model for every price segment and every market. The marketing environment. urban and rural. The major players are- TITAN Page 3 . Titan brought quartz technology first in the Indian market and acquired first place by displacing HMT into second place. who offers mechanically driven wristwatch. which is only available in the West or in Japan at that Point of time. By offering quality products and classic design with advanced technology to the consumers. a name which brought the revolution in the Indian wristwatch market. Xerxes Desai. a TATA veteran and the MD of TATA Press was elected to that business. remember the only Indian wristwatch market were so shabby. which was launched in 1987 by TATA group. Outstanding services. y y Competitive Forces Major Competitor There are lots of competitor in wrist watch segment which directly or in directly affecting the titan watches industry. Titan made a success story. regional and international.Introduction When we talk about the wristwatch brand . The reason behind the success of Titan watches was their research on the Indian consumer psychological mind. That was before the time of TITAN . It also brought a sense of style and design. one more ordinary than other and when the craze for imported watch was not implemented. Environmental analysis A. TATA group had indentified the watch category as a potential consumer market for the TATA s to enter.

TITAN Page 4 .1100 while the price for HMT is Rs. Maxima-quartz: Strength: hitting hard at mid-price market.Domestic Level: HMT Maxima-quartz Rado Casio International level: Espirt Swatch Citizen Tag heuer Seiko Cartier Giordano Fashion Houses: Dkny Gucci Adidas Nike Bvlgary Among all these competitors.550). HMT: Strength: turnover is very high because of low price (average price for Titan is Rs. Maxima-quartz and HMT are major players . Weakness: lagging behind because of quality compared to Titan.The strength and weakness of the companies varies from segment to segment.

2.Weakness: the quality. 3. but the people who lives in urban area or metro city. Though the future is uncertain. State-owned watch maker. are having optimistic view towards economy. Swatch and Citizen compete in the mid-price segment and also trying to enter in the domestic market. all the companies also implement changes in their marketing mix to sustain in the competition. Industry s Role As there have many competitor exists in this Industry. e price. but according to the present performance of all these companies. International player like Espirit. Economic forces Economic landscape Indian corporate sector is nervous because of current Inflation. This problem occurred not only in India. As we came to know from Federation of Indian Chamber of Commerce and Industry (FICCI) that 64% of the 413 companies are running currently in worst condition from last 6 months. the competition is too much. Whenever any company bring changes in its marketing mix. attractiveness. but it affected all the countries due to United State financial crisis. TITAN Page 5 . HMT. varieties are less compared to Titan Industry. we can assume that they would be the major future competitor of the Titan wristwatch. Timex also making a spiritual comeback by capturing the mid-price segment. compete in the domestic market after almost a decade. product. By that the structure of whole industry is changing and affects the competitive forces in the Industry. 1. Consumers view As we know that Inflation is in double digit figures. place and promotion. Expectation from the competitor As we all know that marketing mix is basically consist of 4 p s i.

2.45 crore during the second quarter o this year.171. They are as follow.89 crore during the corresponding period this year.725-7770 4.000 1.83 crore during the first quarter of last year to Rs.168. There are few reasons behind the growth in sales of Titan .MIDDLE CLASS UPPER CLASS COUPLES UPPER MIDDLE CLASS-UPPER CLASS BUSINESS CLASS UPPER CLASS The company s watch sales grew by 18. Spending habit of consumers Despite of high inflation.000-45. Purchasing power of consumers BRAND PURCHASING POWER(PRICE) RS. Brand name Quality of the products Features .830 960-2.8 per cent and its income increasing from Rs255. watch segment sales income increased from Rs. 1.People think that the economic condition of our country will be improved in the near future. From the above information we can easily understand that consumers buying more of Titan wristwatch. 4.420-4. 5. For these. watch segment of Titan Industries doing well in the current fiscal.085 1.which differentiate from others Attractive models New innovation TITAN Page 6 .675-8.34 crore during the second quarter of last year to Rs303. On f the basis of the above table and profit figure we easily understand consumer buying power in target market. These data indicate that consumer s spending pattern is increasing respective target market. 3.500-5. high oil prices and high volatility in gold prices.430 650-1.         YOUTH EXCTA SPECTRA ROYAL RAGA BANDHAN REGALIA EDGE NUBULA 595-1.200 10.830 1.000 LOWER MIDDLE CLASS(Office wear) COMMON CLASS UPPER.

Our new Government took lots of steps to make the global relation as well as some steps to develop our country GDP. Rs. The performance of this sector for last few years are- Revenues: 1. TITAN Page 7 .880 crore sales during the latest financial year (over Rs. 90 Crore ROCE (2005/06) 50% *PBT (2006/07) Rs.self elected by the people the country. These all steps help the Industries to get sustain in the market. it really helps the country development. Significant growth over the past three year. Legal and regulatory forces As the titan industries operates their business in the global area . the companies always want to make good relation with the political parties.Political forces Political landscape: In 2004 /05 the new Government came through election in India. decreasing the rate of Inflation by decreasing rate of Cash Reserve ratio (CRR) as well as by decreasing the Repo rate. As all the steps help the Titan industry to compete in the watch industry.1000 crores at retail prices) PROFIT ROCE PBT (2005/06) Rs.they have to follow lots of regulatory norms. 2. 96 Crores *ROCE (2006/07) -50% *PBT (2007/08) -Rs. The industry can be directly affected by the certain rules such as change in Taxation rate. 121 Crores *ROCE (2007/08) -56% Relation with political officials As we all know that TATA group is the one of reputed companies in the world. because we know that India is a democratic country which is it. Moreover.

TITAN Page 8 . Tata adopt the Corporate Citizenship Index. In premium segment. It uses its resources in the best possible way. Titan gets advantages in the target market through innovative technology. Titan decided to manufacture only QUERTZ (Analog and digital) and not mechanical and they would start plant to manufacture watches in wide variety in design and prices. As there is too much competition. They also takes some re asonably steps to improve the quality of life of the people of the areas in which they operates. other companies will give a tough competition to titan.  Sociocultural Forces Tata believes that improve the quality of the life of people and the employee is the primary purpose of their business. The new innovations which can differentiate the company from the competitor are Implementation of Heart-beat checking system in wrist watch. Technological changes The new marketing innovation can bring a drastically changes in the marketing activities of the Company. the environment and the welfare of the community at large. such as employee welfare. Tata spends 5-7% of its profit after tax on several CSR initiatives. Implementation of Blood pressure checking system in the wristwatch Some companies can come with the watch which help in knowing the mood of the person. Titan changes the technology in that ways which help in enhance the quality and the features to increase buyers value. if Titan not accept the changes in technology then they can t sustain in the market.Technological forces Impact of Technology Changing in technology always play a great role in the target market. Tata Business Excellence Model and Tata Index for Sustainable Development which reflect its commitment to its Corporate Social Responsibility (CSR). competitor will capture whole market by improve technology. And in the mid-price segment. These CSR initiatives are spread across three core areas.

350-500. There were 100 different models in the range.00.000 -1. TITAN Page 9 .income consumers who want watch mainly as the time keeping device and purchase on the basis of price. 1. High class: Titan offered Aurum and Royale in gold watch range . Need Analysis: Consumers need The demand and the need vary one market segment to another segment on the basis of prices & quality. the SONATA range. Target market Identification The titan industry basically deals in three segments for its watches.There was 200 different models in the ranges.B. 2.500-700. High Income/Elite consumers In this segment mainly the consumer who buys a wrist watch as a fashion accessory. The prices ranges are between Rs. middle group: In this segment mainly consumers like some fashion in their watches. when the arrangement with Timex was terminated.They were stylish watches in all gold and precious metals.20. The current need can be satisfied by the following ways in the different segment. The price is between Rs. The prices ranges were Rs. These consumers would not purchase a watch without comparing various offers in the market. Middle income class: Titan offered the Exacta range in stainless steel. Lower-income group: Titan offered the Timex watches and later.000. They were as follow. 3. Lower-income people: This segment mainly consisted of lower.

TITAN Page 10 . 350 onwards.2 per cent to Rs 918. TITAN offers these products with the Indian touch in its designs. Jewellery watches. It consist of Tata guarantee. Performance Analysis Titan Industries achieved significant growth during the year ended 2007-08. the Raga Crystal for ladies. Capital employed In India 70% of the sales in wristwatches come from the lower segment.7 crore. watches in pair. the company seeks to reach the height of excellence atmosphere which is free from fear and threat.Current Marketing Objectives and Performance: Review of Marketing Objectives Current marketing objectives of TATA are to strengthen India s Industrial base through the proper utilization of resources like employee and materials. So. Titan prices its world watches which are compared equal to an internation competitor like al Calvin Klein. In the Indian watch industry there is no one offering pure gold watches. Here a customer pays about 4 times a value of the world watch hence penetrating the market with low prices to international players to gain market share. the products. All brands of the company have performed well and new introductions in gents watches. and the looks. Besides. Hence it is able to skim the market with certain products in these ranges. Watch segment sales also grew by 17. This concept though exists with foreign competition has just come to India. Titan capture the market by pricing the Sonata at Rs.

And there is a craze for stylish wristwatch. 5. 6. Style: Titan first introduced the style concept in India and projected the watch as a fashion accessory. 3. Now a day s style is a very much evident factor among the youth. Its EDGE the slimmest watch in the world position.Watches are available with popular functions like dates. The profit is accounted by being in the retail space which is booming. Other than these there have few more strength like4. Pricing: TITAN Page 11 . multifunction and chronographic.III. So. 2. Exclusive products: Today Titan holds the pride for say that its products both within the country and internationally running in battle position. Contribution of owned brands and retail. Titan makes the peoples life more glorious by making stylish wristwatch. Weaknesses 1.Guarantee/warranty B. SWOT Analysis A. Models: As Titan offers the best and the biggest range to customer to choose the watch of their choice with an affordable price. It offers about 14 different names with about 1000plus different varieties with a watch for literally everyone. Strength: 1.

Bandhan because there is demand for the products. 3. Opportunities 1. 2. in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new. The market is more demonstrate by middle class people and for them Titan is quite costly. D. The fight concept sells well for people have come to associate Titan with lovecare and makes emotion run high. Threats TITAN Page 12 . Globalized: As the company is Indian based which leads it to the strength. Titan market share is between 18-20% which is far lower than HMT and Maxima. Titan has less market share. Gifting concept: Titan started as a brand which was associated with gifting and relation. C.Gold watches and pairs are the like as a wedding occasion. 2. Among 75% market share in mid-segment.550. Average price for Titan is Rs. Market share: As the average price of Titan wristwatch is far more than the other competitor. Seasonality: At the time of festival. Exchanging offer: The Titan stores offer exchange offer of any old watch. of any make. stylish and technologically advanced watch from Titan. like Diwali Titan promotes Nebula.1100 while the price for HMT is Rs. -The fast track brand is promoted in month of June-August when schools and colleges re-open. In the mid-price segment the company is not performing up to the mark due to the lack of choice of consumers. . where as it is the weakness also because the company not sufficiently globalized. 3.the average price of Titan in mid-price segment is very high than the other competitor.

85 crore as compared to previous year which was Rs 7. Premium segment: As in premium segment Titan is getting threats from reputed international brand such as Espirit.1. Swatch and Citizen.11. 3.45 crore. TITAN Page 13 . The replica was launched on 13th August 2008 in New Delhi. Mobile: Now a days people can get the time and the other feature in mobile phone. As the removal of quantitative restrictions on import watches leads to threat to titan. Companies the marketing objectives is to increase in market share by 5% .104. Before implementing the of marketing strategies we must have to focus on certain things . Competitor: As we know that lots of Foreign brands are entering in our country with their branded watches.1. Marketing Objectives: Titan industries in watch holds 70% in Domestic level and 60% in Share in organized sector market.03.25.which include the BCG Matrix representation. So. the need of wristwatch is in decreasing trend. In all the income the Titan industry had contributed Rs. 2. IV. Titan industries has registered an Income of Rs. People can talk and see the time in a cell phone and some people think that there is no need of wristwatch.3.

EDGE and NEBULA.The INFINITY this unique 4 feet tall watch weight around 70 kgs with solid circumfarece of 8 feet and width of 30 inches.wwf collection is inspired from six species namely the Tiger.Red Panda . As in this segment these watches are playing important role so it require certain amount of money which will help it out to sustain into the market as well help in liquidity. This watch contains 800 dials and 1800 straps. Exacta. TITAN -WWF: The titan.Whale shark and Oliver Ridley Turtle. Indian Rahino Gnagetic river Dolphin .Ajanta. Marketing Mix: PRICE PRODUCT PROMOTION PLACE TITAN Page 14 . As it is the new collection it requires more investment for Tiatn-wwf as the market growth is also high there. Cash Cow: It basically include the watches Fast Track. pectra for the titan. Konark . It include the watches namely REGALIA. Jharokha. Lakshmi Vials Place. Earlier they had launched Heritage collection about a year back based on beautiful monument of India including The Taj-Mahal.

Disadvantage:Quality decrease will help competitor to capture the whole market. Disadvantage: decrease in sales promotion give benefit to the competitor. TITAN Page 15 . Disadvantage: competitor of premium price segment will enjoy the more market. Disadvantage: less number of places of operation will leads to wipe out from the market.Price:Advantage: competitor of mid-price segment will capture the whole market. Promotion: Advantage: Increase in sales promotion will affect more market share. Place: Advantage:more number of places of operation will make the competitor week. Product: Advantage:Increased in the quality will increase the cost which will give benefit to the competitor.

therefore market with low prices to international players to gain market share. Raga through pricing policy. TITAN Page 16 . Market share: As we know that 70% of sales in watches come from the lower segment.The Exacta is a simple steel watch priced at Rs. watches in pair. the love. C. B. A. Here Titan offers there product with the Indian touch in its design.Price: The main consideration will be in changing price are followings. Market Skimming: In Indian watch industry there is no one offering pure gold watches. jewellery watches.100.600-1. the product. Survival: In case of some of the watches titan prices them according to the features . therefore by pricing Sonata at 350 onwards with guarantee. As the company also deals with Spectra. Titan prices its world watches which compared equal to an international players like Calvin Klien where a customer pays 4 times as value of the world watch.

As per the product strategy they took. A. To widen base. In the past few years Titan has took a lot of initiatives to focused on specific segments. Obviously. C. TITAN Page 17 . as Popular. Product Quality: Quality and leadership are synonymous to Titan. At the premium segment. and Premium.Product: Quality and leadership are the two main terms for the Titan.Product line: To increase the sales. Product pyramid: Portfolio of Titan s product is of 3 distinct price-range that can be defined in general. At the popular segment. the emphasis is on profits and image but not in volumes. the difference in the prices of the watches is justified by the features. company giving more emphasis at the top of the pyramid as profits at the top of the pyramid is very high. B. It seek to achieve both through their value for Products compared to their prices. the emphasis is on in volumes but not in margins. Titan moved in to the mass market for watches. Product strategy: Titan was first focused only on the premium segment of the watch market. Mid. Titan created new segments and increasingly focusing on segments individually. As to achieve the marketing objectives this aspects should also be considered. This pyramid guided the strategy of Titan. D.

Creative advertising: Titan introduces a contest on cartoon network in india. As here we can say that a female actress would be more effective for the promotional purpose. B. As the company is using celebrities or superstars that is Amir Khan for the Titan watches.Promotion on occasio n: Titan is one of the company which formally believes in the policy of promotion the product based on the occasions. value for the product. increasing buyer image. The prize winning design was launched as a new watch in summer 2002 collection .com which invites children to use creativity and design watch. Type of advertising: Titan believes in making its ads clean. as now she is one of the popular actress in Bollywood. It is managing to successfully convince to the customer of the perceived value of WORLD WATCH using hoarding all around the city. well made.Promotion: Promotional pricing: A. It can be Katrina Kaif. trust worthiness. Price discount and allowances: Every year Titan comes with a price discount sale on the MRP of the watches. The allowances varies from one segment to another. Marketing pricing: As by opening new shops such as the world of Titan buy directly from the dealer and hence the element of middleman is not there. touch on emotional chord. Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they are able to get the 17% profit margin on sales. TITAN Page 18 . innovation. differentiation. C.

Bangalore . B. 202. A. showrooms: Offices Address Telephone Fax Email Corporate Office Tower A. while the turnover in rural area is 90 million) plays a significant role in the success of Titan.Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata & Titan brands. Sonata store meet the large scale demand for the watch and also to attract customers in more. +91-80-6660 9027.Place: Keeping in mind about the young trendy and fashionable consumers. Titan distribute its product and set up world of titan in different region. providing the customer with variety in brands. +910-2526 3001 Webmaster@titan.co. +91-80-6660 9028+91-80-25269923. This is to make the customer go to the shop rather than the shop calling the customer and hence the locations are not very suitable for shopping. C.co. These shops had full stocks of the watch in demand whereas the others could afford to maintain only limited stock.Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. However these shops would not be placed in the main locations and not working as a normal shops. Golden Enclave Airport Road. By doing these it offering fabulous value for money with the same warranty as a regular full-priced watch enjoy. The consumers life style in India. Okhla Industrial 011-66603260 / 011-26321994webmaster@titan.Head office. Time Zone: Titan Industries brings together the country s leading watch brands under one roof.560 017 +91-80-66609000. looks and price ranges and also efficient after-sales service. regional office. especially in urbanarea(because the turnover in urban area is 210 million.in Regional No.in TITAN Page 19 . These 1142 Time Zones located across 89 towns which offer its customer the complete watch shopping experience. D.

Budget and control: It is very important to make a control on Budget to reduce the operating cost which we can reduce to certain amount by the following ways.which help to the company to match the needs of the consumer as well as the need of company. We can reduce the TV ads cost by reducing the duration of advertisement.Marketing Implementations: Marketing plan basically implemented on the basis of market segmentation .com www.com/titan TITAN Page 20 . Source of information s: www. DEMAND OF THE CONSUMER AT A PROFIT . because we know that MARKETING IS THE SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED. Titan did the process of creating brands in the minds of customer. We have gone through the target market segment which basically include High income class Middle income class Lower income class The marketing mix is the part of marketing strategies . Retailing: Titan bring in the concept of retailing into the watch market .tata.which will really help in making the Direct relation with customer. This will help in reducing the cost of intermediaries. The customer was moving towards branded goods in other segments. Advertisements cost: As for reducing the cost of companies we can take advertisement into consideration. Implementation is an integral part of strategy. It make sense when it is implemented into Indian jewellery market it saw an opportunity for an organized sector.titanwold.