PROJECT ON RETAIL

MARKETING MIX AND

STORE LAYOUT OF

By,
19/PCMA/140
INTRODUCTION:

Retail industry is become one of the fastest growing sectors in Indian

economy over the last few years. Though India has largest density of retail outlet in
the world, the sector is highly fragmented and is in nascent stage. Organized retail
industry is very less in India, it accounts to only 5% of total retail business.
However with the development of malls and other retail organized establishment in
the metros and other towns (tier II & tier III cities) of India, the organized sector is
looking attractive and experiencing growth. The organized retail sector is expected
to grow 25 to 30 % annually. Store designing, pricing strategy and Visual
Merchandising have become one very important aspects of retailing business. This
technique helps the retailer display the merchandise in an appealing and self
explanatory way. Visual Merchandising is the dressing up of the products and the
store in simple words. A retailer has various collections of products in various
sections and presenting them effectively for customer visual makes business easier.

Titan Industries is the worlds fifth largest and India’s leading manufacturer
of watches. Today, the Titan portfolio has over 60% of the domestic market share
in the organized watch market. The company has 273 exclusive showrooms
christened World of Titan’, making it amongst the largest chains in its category
backed by 700 after sales service centres. The company has a world-class design
studio that constantly invents new trends in wrist watches.

Titan commenced operations in 1984 under the name Titan Watches

Limited. In 1994, Titan diversified into jewellery with Tanishq and subsequently
into eyewear with Titan Eyeplus. In 2005, it launched its youth fashion accessories
brand Fastrack. As of 2019, Titan is the fifth-largest watch manufacturer in the
world.It is the largest branded jewellery maker in India, with more than 80 percent
of its total revenues coming from the jewellery segment.
BACKGROUND OF TITAN:
Back in early eighties Tata group entered the watch segment with Xerxes
Desai to lead the team of this consumer durable goods segment. Visual
merchandising and store layout were very much at the stage of “decoration” if any,
and neither the brands nor the retailers saw it as important. The watch store was
narrow and not designed properly and the location basically was in traditional
markets of the city. Their weren’t excusive showrooms, company preferred to sell
through wholesalers

1984–1990

Titan Company Limited was inaugurated on 26 July 1984 under the name Titan
Watches Limited in Chennai.A plant was set up to manufacture quartz analog
electronic watches in the State Industries Promotion Corporation of Tamil Nadu,
Ltd. Industrial area at Hosur. In November 1986, Titan Company and Casio signed
a MoU proposing to manufacture 2 million digital and analog-digital watches.In
1989, a satellite case plant was set up in Dehradun, Uttar Pradesh, Uttarakhand at
present with a manufacturing capacity of 500,000 watch cases annually.

1999–2020

In September 1993, the company changed its name to Titan Industries Ltd. As it
ventured into other range of products other than watches.In 1994, Titan launched
its jewellery brand Tanishq.

In 1998, the company launched its watch & accessories brand, Fastrack, targeted at
a younger audience in a bid to compete with Timex.

2011–2030

In 2001, Titan launched kids’ watches brand, Dash. The brand saw poor
performance and was discontinued in 2003.In 2004, the company entered into an
agreement with Moet Hennessy Louis Vuitton Group, to service the latter’s range
of watches in India through its customer care centres. In 2005, Fastrack was
positioned as an independent accessory brand targeting the urban youth. With the
objective to become a fashion brand, Fastrack launched sunglasses in the same
year and launched bags, belts and wallets in 2009.
2011–present

A Titan Octane series watch.

Titan acquired Swiss watch maker Favre-Leuba in 2011 to enter the European
market. In 2013, Titan entered the fragrances segment with the brand Skinn and
later that year, it ventured into the helmets category under its brand Fastrack.In the
same year, it changed its name to Titan Company Ltd. In 2014, it entered into a
joint venture with Montblanc to establish its retail stores in India.

In 2016, Titan opened prescription lens manufacturing facilities in Noida, Kolkata,

and Mumbai to improve its order processing time. In 2018, Titan merged its
jewellery brand, Gold Plus targeted at customers in South India with Tanishq to
establish the brand’s presence in South.

Taneira is an ethnic wear brand from Titan that retails hand-woven sarees from
different weaving clusters of India. The brand was launched in 2016. The first
retail store was opened in Bengaluru in 2017 with more stores followed in New
Delhi and Hyderabad.

Also, Titan announced recently (during the last quarter of 2016) about launching a
series of affordable smartwatches under its brands like Sonata and Fastrack soon.

In 2016, Titan entered the wearable devices market by introducing its smartwatch,
Juxt, made through a collaboration with Hewlett Packard.In 2017, the company
launched a fitness tracker, named Gesture Band under its youth accessories brand,
Fastrack.In the same year, it invested $3 million in a Singapore based wearable
tech company, CoveIoT.In 2018, the company added new fitness tracker bands.
The company had a 7.4% market share in the wearable devices market as of 2021.

Business Philosophy:
Evolution of Titan: Xerxes Desai’s vision was to dramatically alter this
perception of consumers, and make Titan a fashion accessory. He knew that that
was the only way that this new brand would explode the market and wrest control
from the dominant HMT.
 Technology change: Accuracy of time and technology was changed lot to
sell the product.

Various products: Titan expanded from 200 models to 350 models for customer to
choose from.

Styling was basic: Company decided to make watch segment also a lifestyle by
making different unique styles for its watch.

Shops were dark, dingy and uninteresting – “There was no importance given to
presentation, and therefore no attempt made at it. Titan brought in the concept of
retailing into the watch market, established a network of fine showrooms which
would later become the world’s largest network of exclusive watch stores.

These stores not only helped Titan to gain leadership substantially, but also
irrevocably altered the retail landscape of the watch market through a
demonstration effect on the traditional dealers”

Advertising: Company saw this is an important tool of creating sales and brand and
from day one it is been on toes and been advertising its product.

Titan has 60% share of total organized retail share market in watch segment and is
doing very impressive in its style, sales, innovation & promotion. Company has
improved version of sales force and service network which is wide and deep and
has 270 exclusive showrooms throughout country. Today “The World of Titan is
the most prestigious and visible retail brands in the country.”

Product Catalogue and Pricing Strategy:

If we talk about varity and assortment at Titan store, it has huge product
categories for every income level of customer. They have huge verity and in verity
they have huge assortment. In the same way Titan prices its products according to
its target market. It has different pricing strategy such as combo pack where Titan
offers two pair of watches at some discount, they also use seasonal discount, offers
for pricing strategy. Some of their product catalogue, pricing strategy and segment
according to target market:

FAST TRACK:

A collection of watches will contemporary styles that are young and

distinctive. The woman’s collection presents the all new international `Frosted’
look, which is trendy and chic. The Fast Track collection has elements like cool
mesh straps and features that include EL back-light and dual time. It also presents a
range of fashion digitals in contemporary wrist hugging cases with oversized
displays and features that include countdown timers, chronographs, lap timers,
hourly chime, alarm and Hi-light glow.

Price: Rs.550-4000

Category aimed at: Youth.

EXACTA:

A perfect combination of dateless styling and design simplicity, Exacta is

the all-steel look in Titan. Everyday watches for those who value fundamental
principles of durability, reliability and affordability.

Price: Rs.595-1,140

Category aimed at: Lower Middle Class (Office Wear)

SPECTRA:

A truly unique collection of watches that combines the sturdiness of steel

with the richness of gold.

Price: Rs.650-1830

Category aimed at: Common Class

ROYALE:

A stunning collection of alluring gold-plated cases matched with exquisite

gold-plated straps, the `Royale’ collection has designs that suit everyday wear.

Price: Rs.960-2,830

Category aimed at: Upper Middle Class

RAGA:

It is a exclusive watches for women. The Raga and Silver Raga collection is
elegant, delicate and feminine with each piece being truly unique. It is an existing
collection that includes decorative motifs, `Kadas’, studded bracelets and a first of
its kind three-in-one watch. The designs are inspired by traditional Indian as well
as contemporary motifs and are expressed in ropes, `kadas’ and ornamental
bracelets. Crafted exclusively for the sophisticated woman, who wears silver
jewellery with élan, the Silver Raga makes a perfect accessory that completes a
woman’s wardrobe.

Price: Rs.1420-4,000

Category aimed at: Upper Class

BANDHAN:

Watches for him and her. The pair watches of the `Bandhan’ range are
Titan’s tribute to the everlasting quality of a bond between a man and woman The
Bandhan Collection is available in both leather straps and gold bracelets and its
presented in uniquely designed packaging.

Price: Rs.1675-8,085.

Category aimed at: Couples

REGALIA:
 Magic in gold and unique futuristic material. Finely crafted sleek cases and
patterned dials with special appliqué flowing into intricately designed bracelets. A
unique combination of an all-gold and bicolour look, the `Regalia’ range represents
the essence of dress-wear.

Price: Rs.1725-7770

Category aimed at: Upper Middle Class – Upper Class

EDGE:

The Titan EDGE is the Slimmest Watch in the Universe; a mere 3.5
millimetres thick, the watch is practically invisible. Delicately crafted with
precision, it has an incredibly Slim Movement of 1.15 millimetres. Furthermore,
the Titan Edge is Water Resistant to a depth of 30 meters, an attribute rarely ever
seen in slim watches. Titan’s Edge comes with an elemental One-Piece case made
from Non-Allergic Stainless Steel, and a Sapphire Crystal that market it Scratch
Resistant.

Price: Rs. 4,500-5,200

Category aimed at: Business Class

NEBULA:

Nebula, a range of watches crafted from solid gold embellished with

precious stones, available with both leather straps and intricately designed
bracelets. With Nebula, Titan turns watches into precious jewellery. The finishing
touch to this exquisite collection is the sapphire crystal that crowns each of the
watches.

Price: 10,000-45,000

Categories aimed at: Upper Class

Tommy Hilfiger:
 If we talk about this brand, it is an international brand but in India it is
operated by Titan. It shows that if any customer is interested in multinational brand
then Titan can fulfil their demand in India at store which makes their goodwill not
only in India but also in foreign countries.

Price:8000-60000

Category Aimed at: Upper and Business Class

PRICING OBJECTIVES:

Titan consists of watches that cater to various segments and to various

categories and so their pricing strategy is also in accordance to their products and
the features offered by them cashing in on monopoly, unique features, outstanding
performance and the name TITAN. Titan’s primary pricing objective is to kill
Competition. Being an Indian manufacture and infusing the advantages of the
Indian market with the dynamics of the western market the company has carved
itself a place difficult to achieve by foreign players.

The Objective for pricing are:

SURVIVAL:
 In case of some of the watches titan prices them according to the features
and the value delivered by them. The exacta is a simple steel watch priced at
around 600 to 1,100. This unique combination of simplicity and good styling is to
keep the brand going with its offering being value for money.

MARKET SHARE:

In India 70% of the sales in watches come from the lower segment and
hence by pricing the sonata at 350 onwards, backing it with a TATA guarantee no
one can match the value for the price of Rs.350. Titan prices its world watches
which are compared equal to an international Player Like Calvin Klein where 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.

MARKET SKIMMING:

In the Indian watch industry there is no one offering pure gold watches,
watches in pair, Jewellery watches and this concept though exists with foreign
competition has just come to India. Though foreign competition has set in to these
concepts, TITAN offers these products with the Indian touch in its designs, the
products, and the looks. Hence it is able to skim the market with certain products in
these ranges.

PRODUCT QULAITY:

Quality and leadership are synonymous to Titan. It seeks to achieve both

through their value for products compared to their prices.

PRICING METHOD:

MARK UP PRICING :

Titan goes in for the mark up pricing strategy. The Titan product carries a
maximum retail price on it. Now shops such as the world of titan – exclusive
showrooms buy directly from the dealer and hence the element of the middleman is
not there. A retailer in this category buys the watch for 17-18% lesser than the
MRP and hence he is able to get the 17% profit margin on sales. It is up to the
discretion of the retailer to offer any discount on the MRP as it would affect what
he gets in return.

In the recent past Titan has also used the PERCEIVED VALUE PRICING
to its advantage. It is managing to successfully convince the customer of the
perceived value of the WORLD WATCH using billboards and hoardings all
around the city, increasing buyers image, trust worthiness, innovation,
differentiation, value for the product. The hoardings go about to say the
international presence of an Indian Watch. Titan has also in the past done so for its
steel collection but using Commercial Advertisements.

There is always a positive relationship between high prices, high quality,

and a high advertising budget. Titan too demonstrates this feature. People are
willing to pay the price for the quality and titan spends 25 crores a year on
advertising its products. This is the highest spending done in the watch industry in
India. More so ever with high value and lower prices in case of the sonata, the
product is the heart throb in the watch industry.

PROMOTIONAL PRICING:

Price Discounts and Allowances:

Titan once a year comes out with a Price discount sale on the MRP of the
watches. Now this is entirely based on the stock carried by the company at the year
end. Allowances are more on the company to the retailer where the retailer gets a
special allowance if the store picks up more than a certain quantity.

Warranties and Service Contracts: Titan promotes sales by adding a free warranty
or service contract to its watches and this is backed up by the name TATA which is
especially needed to convince and march ahead in the lower segment market.

Product Line Pricing:

The differences in the prices of the watches are justified by the features, the
style, and the differences which make up each watch. Titan prices all its watches in
such a way that it maximizes the total profit on the total mix.
Captive Product Pricing:

There is a general buzz in the market about titan being more expensive than
the rest in terms of servicing and the parts used by TITAN. Titan watches, the
lower end ones are cheap but the straps and the battery with services is generally
expensive.

Merchandising planning and visual merchandising:

Merchandise selling is the primary objective of retailing. A merchandise mix

is developed that represents the full range of products mixture that is held by a
retailer to target customers. An appropriate combination of product lines, product
items and product units will determine a good merchandise mix. This is exhibited
by the variety of merchandise the retailer stocks, that shows the number of
different product lines they possess. Merchandising management depends upon
various factors. Retail atmospherics and space management will enable a retailer
have good merchandise management. Retail atmospherics comprises of exterior
atmospherics, interior atmospherics, store layout and visual merchandising. Visual
merchandising can be defined as the display of products in order to sell the
products.

Visual merchandising includes various aspects to be effective such as store

floor plan, store windows, merchandise display, space design, hardware fixtures
and many more. Visual merchandising helps in educating, attracting and informing
the customer about the product/service being provided in an effective and creative
way. It makes a customer roam around the store to find novelties. It helps in
building a store image. The arrangement gives easy access to merchandise. Visual
merchandising enables a customer to make the purchase decision since it draws the
attention of the customer and gives him a clear picture. This helps the retailer in
introducing new products since it becomes self explanatory as they are displayed.
From the customer point of view it gives an idea on how to use the product. This
attracts a customer to enter the shop. This technique provides a creative medium to
display the product thereby creates a long lasting impression on the customer.

The shoppers are affected by the atmospherics created at a store. The

customer can be displeasured if he/she did not like the atmospherics created. The
customers sometimes tend to decrease their arousal for buying a product based on
factors like music played in the store. So the retailers have to be extremely careful
while creating store atmospherics. In the service environment the interior colors of
the store create great deal in the nature of mood to be created. Some may feel dull
colors or light colors are boring and depressing. At the same time bright colors
cannot be considered as lively either it may make it absurd. Largely customers’
senses, emotions and shopping behaviour are affected due to different preference
of shoppers. Visual merchandising therefore sometimes has a negative impact on
the customers. Visual merchandising may sometimes tell too much about itself
making the customer form his own opinion towards the product. In order to avoid
such things a retailer has to be very careful on the visual display based on the
product or service [Bajaj, 2005, P 405] [Michael & Weitz, 2009, P 610].

Promotional pricing:
The coverage of VM can be divided into four main segments, which are:

Exterior Presentation:

Exterior Presentation, Titan is using exterior signs, billboards, Awnings,

Window Displays.

Store design and layout:

Store layout, it is using Angular, Geometric and Mixed floor plan

Store Interiors:

As a store theme, Titan is using music background, odour, lightning and

colour scheme.

Interior Display:

As an interior display, Titan is using Fixtures & Hardware and Mannequins.

Safety and health policy:

 Safety and health policy at Titan Store, it has numerous rule and regulations,
instruments and policy such as whenever any new employee joins Titan, It
provides 10-15 days training and soft skills classes which help them to interact
with customer in effective manner. In the same way they have policy like It
provides free insurance to its employees where it has tie-up with its own Insurance
company. They reserve 10-15% from their salaries as gratuity, funds and
allowances. Similarly it has all instruments which help them to protect its
customers and employees from any type of accident such as fire. Titan uses hidden
cameras, barcode, checking machine and instrument at gate by security guard
which also protect them from any type of theft in store..

Expansion plan:

If we talk about Titan expansion plan, The Indian market is estimated at 25

million watches a year, with 50 per cent being sold by the organized sector. Titan
is the runaway market leader, with domestic sales of 6 million watches a year.
There are 190 million watch-owning Indians; between them they own about 210
million watches. Urban India accounts for 120 million of these watches and 90
millions are on rural wrists. More men than women own watches in India, and
more working women than housewives own watches. It is the rural segment within
this diverse market that Titan is now looking to tap. “The key to success is getting
into the rural market on a larger scale. The company’s Sonata range is targeted at
rural customers, and is part of a strategy where the alignment of price and
reliability are crucial. The rage costs between Rs.495 and Rs.1200 has showrooms
exclusively for it, and is sold mainly in small-town India.

Titan Industries Ltd has utilized about half of its planned capex for FY09 as
a slowdown in consumer spending hurts demand, and will proceed cautiously with
expansion plans for FY10. “Our original budget for the year was about 112 crore
(Rs1.12 billion), we have utilized about half of that and The watch and jewellery
retailer plans to add about 100 stores in FY10, but would study the market
carefully before launching new outlets. ” managing director Bhaskar Bhat said.
Quality Management:

Titan is the SBU (Strategic Business Unit) of Tata. If we talk about Tata,
Tata is considered as second name of trust and truth. Since they have started their
business till today they offer qualitative products and service which make them
market leader in every field of their business. In the same way they provide trust
and quality if we talk about watches segments.

RECOMMENDATIONS:
There are few areas where we would like to recommend Titan with regards to the
visual merchandising aspect. The recommendations are summarized as follows:

1. Although the visual merchandising done is self explanatory the

company has to concentrate on making it easy for the customers to
differentiate each series and sect of products which will be based on various
factors. We could find from the analysis that the customers were not able not
able to understand the differences.

2. Some products as being told by Head of VM for Titan are available

only in metros and cities whereas the up-country stores do not merchandise
them. The concept behind this being the high price of the models (ex: Titan
Automatic series) which they feel would not have any demand in such areas.
We can see today’s trend that cars like Jaguar are available in up-country
markets due to the increasing disposable income of the customers therefore
 we recommend Titan that they should consider merchandising even the high
end models in those markets.

World of Titan – Thiyagaraya nagar Showroom

Layout :
Store design: Mixed floor plan

BIBLIOGRAPHY:

Magazine –

Images retail, Vol 8 no 3 March 2009, pg no- 43

Text books –

1.Bajaj, C. (2005). Retailing Management. New Delhi. Oxford University Press.

2.Beri, G . Marketing Research. (3rd ed). New Delhi. Tata McGraw-Hill

Publishing Ltd.

3.Micheal, L. & Weitz, B. A. (2009). Retailing Management. (10th edition). New

Delhi. Tata McGraw-Hill Publishing Ltd.

4.Kotler, P. & Keller, K. L. (2009). Marketing management. (13th edition). New

Delhi. Prentice-Hall of India Pvt Ltd.
Web sites-

1.Organized retail and it growth retrieved on 18 July, 2009

www.business.mapsofindia.com/india-retail

2.Organized retail information retrieved on 18 July, 2009 www.indiaretailing.com

3.Titan industries information on background retrieved on www.titanstores.com

4.Products and stores of Titan retrieved on 20 June, 2009 www.titanworld.com