NAME : Titan Company Limited .

FOUNDER : It was founded by Xerxes Desai in the year 1984 .

LOCATION : It has its headquarters in Chennai and Tamil Nadu .

INDUSTRY : Lifestyle .

PARENT : Tata Group

MAIN BUSINESS : Watches , Jewellery , Eyewear , Perfumes , Belts , Precision Engineering , Bags .

AREAS SERVED : World wide .

TYPE OF ORGANISATION : Public

BRIEF HISTORY
1984-1990

Titan Company Limited was inaugurated on 26th 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 Limited . In November ,1986 Titan Company and Casio signed
a Memorandum Of Understanding proposing to manufacture 2 million digital and analog digital
watches.

1991-2000

In September 1993, the company changed its name to Titan Industries Limited as it ventured into
other range of products other than watches . In 1994 , Titan launched jewellery product Tanishq .In
1998,company launched its watch and accessories brand, ‘Fastrack’ which targeted at younger
audience .

2000-2010

In 2001 ,Titan launched kids watches brand ,Dash which showed 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 range of watches . In 2005 Fastrack was positioned as an
independent accessory brand targeting the urban youth. With an objective of becoming a fashion
brand it launched Sunglasses , Bags , Belts and wallets till 2009.
2011-present

Titan acquired Swiss Watch maker Favre-leuba in 2011 to enter the European market . Titan also
entered fragrance segment with the brand Skinn (2011). In 2014 it entered into the joint venture
with Montblanc to establish its retail stores in India. In 2016 Titan opened prescription lens
manufacturing facilities . In 2018 ,Titan merged its jewellery brand ,Gold Plus to target customers in
South India with Tanishq .

VISION STATEMENT
To be a first class ,innovative and progressive organization and to build India’s most desirable brand .

MISSION STATEMENT
To create wealth for all stakeholders by building highly successful businesses based on the customer
centric approach ,and to contribute to the community .

PRODUCT PLANNING
Planning is deciding in the present what to do in the future . Thus , product planning means deciding
about the product what it should be in the future in terms of product lines , modifications , addition
or removal of product etc.

PRODUCTS
The company manufactures over 8 million watches per annum and has a customer base of over 80
million .It has manufacturing and assembly operations at Hosur , Roorkee , Dehradun , and Baddi in
Himachal Pradesh and an ECB plant in Goa .Its main products are :-

WATCHES

Currently manufactures four main watch brands viz ,Titan for the premium segment ,Fastrack –
focussed on youth and trendy fashion space , Sonata – for the mass market ,Xylys – for the premium
market .The Titan brand architecture comprises several sub brands , each of which is a leader in its
segment . Noteable among them are Titan Edge – the world’s slimmest watch which stands for
philosophy of ‘less is more’ ; Titan Raga – the feminine and sensuous accessory for today’s women;
Nebula – crafted in solid gold and precious stones and several other collections like Wall Street ,
Heritage , Regalia , Octane , Orion , Diva , Zoop . Sonata is today’s India’s largest selling brand .The
Companies first Swiss made watch – Xylys is for the high end connoisseur and new age achiever .It
also markets Tommy Hilfiger watches under a licencing arrangement and is introducing Hugo Boss.
Today , the Titan portfolio has about 65% of the domestic market share in the organised watch
market.

JEWELLERY
Tanishq is India’s largest and fastest growing jewellery brand with a premium range of gold jewellery
studded with diamonds or coloured gems and a wide range of 22kt pure gold . Platinum jewellery is
also a part of the product range Tanishq is one of India’s largest speciality retailers and is
transforming the jewellery market in India 120 boutiques in 72 cities across the country .Gold plus is
the recent retail offering for the mass market with plain gold jewellery selling through 19 stores in 19
towns . The jewellery division has its own design studio.

Eyewear

Titan Eye + is currently on a pilot mode with 5 stores in two cities and has sunglasses under Fastrack
brand and prescription eyewear consisting of frames , lenses, sunglasses , accessories and contact
lenses of in house brands and other premium brands.

PRECISION ENGINEERING

The Companies precision engineering division supplies precision components to the avionics and the
automotive industry. It also manufactures Dash boards clocks as OEM to car manufactures in Europe
and America . The division also provides fully integrated automation solutions.

PRODUCT MIX

Precision
Time Products Eyewear Jewellery
Engineering

Fastrack Frames Tanishq PECSA

Raga Lenses Gold Plus

Sonata Contact Lenses Zova

Zoop Sunglasses

Bandhan

Purple

Octane
MARKET SEGMENTATION
Segmentation of Titan Watch

 Based on Price .
 Market Segmentation .
 Based on User Category .

Titan has segmented the market on the basis of the following variables : Demographic (age and
social class ) , Psycho Graphic (lifestyle and personality), Behavioural (benefits and occasions) ,
Geographical (region).

The first consisted of the high income /elite consumers who were buying a watch as a fashion
accessory .They were also willing to buy a watch on impulse .The price tag did not matter to this
segment . The price range between Rs 20000-Rs 100000.

The next segment consisted of consumers who preferred some fashion in their watches but then
price did matter . The price range between Rs 500 and 700.

The third segment consisted of the lower income consumers who saw a watch mainly as a time
keeping device and bought mainly on the basis of price . The price range between Rs 350 and 500.

MICHAEL PORTER’S FIVE FORCES

SUPPLIER POWER

No strong Supplier.

Lack bargaining power.

Rise of China ,Taiwan as low cost suppliers.

DEGREE OF RIVALRY

Increased number of firms.

BARRIERS TO ENTRY
THREAT OF SUBSTITUTES
Cluttered market. Low switching costs.
No close substitutes
Stra
Lack of differentiation. Strategic stakes are high.

BUYER POWER

Price sensitivity

Buyer’s preferences
Since its introduction in 1979, Michael Porter’s five forces has become the de facto framework for
industry analysis. The five forces measure the competitiveness of the market deriving its
attractiveness.The following is the Five Forces Analysis of Titan Company Ltd in relationship to its
Titan brand in watch industry.

Threat of new entrants /potential competitors : medium pressure

 Entry barriers are relatively low for wrist watch industry .Lots of
foreign brands are entering in the country with their branded watches .As the removal of
quantitative restrictions on import watches lead to threat to Titan .So the new entrant has to
have an offering,which can be positioned and differentiated from the other players in the
market.This could either be price or functional or emotional appeal.So the prime barrier for
entry ,in the current context ,for a new entrant is tobuild a brand image and price
competitively.
 Titan is seen not only as a watch but also as a brand .It has held a very significant market
share for a long time and loyal customers are not very likely to try a new brand.

Threat of Substitutes Products :Low pressure

Threat of substitutes is moderate for watch industry because other products of different category
are serving the purpose of time keeping. However,in terms of the companies offering various
variations for watches such as pendent watches and jewellery watches ,some sort of substitution
has developed. Rich consumers prefer to purchase watches more as a fashion accessory rather
than simply for its typical use. Even nowadays people can get the time and other features on
their mobile phones .So need of watch is a decreasing trend.

The Bargaining Power of Buyers :Medium pressure

Buyer power is medium , which make the watch industry moderately unfavourable.The indian
watch buyers are very price sensitive ,especially in the lower end of the market .At the same time
there are segments of people who are willing to pay a premium for watches with good
performance and with a recognized brand name.So understanding the buyers preferences is very
crucial in this industry in order to gain a substantial market share.Customers have many choices
to choose from ,so they can easily change their mind and buy watch from other competitiors.

The Bargaining power of suppliers:Low pressure

Titan has its own production facilities for which it has invested roughly 120 crore rupees over the
years , the manufacturing capacity of which is 6 million units.Also there has been a rise of low
cost producers in china and Taiwan which has provided an opportunity for watch makers to
outsource watches at low cost, just as tiatn has done to outsource the components for Dash. Due
to large supply of watch movements available , there is little supplier power in the watch
market.Under this force, watch industry is favourable.
Rivalry among Existing firms:high pressure

Rivalry is high in watch industry because many well known domestic and foreign brands are the
dominant players of the industry. And these competitors are trying to differentiate their watches
through new featuresanf functions .Rivalry is really unfavourable for Titan.

Due to technology improvements the competitions between different competitors already exist
in the industry ;four out of five forces of Titan are moderately unfavourable.

MARKETING MIX
The marketing mix is a business tool used in marketing and by marketers. The marketing mix is
often crucial when determining a product or brand’s offer associated with the foue P’s: price ,
product, promotion and place .In service marketing ,however, the 4 P’s are expanded to the 7’s
to address the following nature of business.

1.PRODUCT : The Titan Company seeks to achieve both quality and leadership with the help of
products compared to its prices. When Titan was established its main focus was premium
segment of the watch market and gradually the company widened its base by creating new
segments like the mass market.

2.PRICE :

 SURVIVAL :Some of the Titan watch brands are priced according to its different and unique
features .For example: Fastrack which are for the youths are priced between rs 550-
rs1430 ,Edge which are normally worn by business class people are priced between Rs 4500-
Rs 5200,Royal for the upper middle class people are priced between Rs960-Rs2830.
 Market Share :Sonata watches under the brand Titan are priced at Rs 350 and above which is
most commonly used or worn by the elders as a result of which 70% of sales comes from the
lower segment.
 Market Skimming: Titan is the only brand that provides its customers with pure gold
watches , jewellery watches and watches in pair in the Indian watch industry.

3.PLACE:Titan brings all the leading brands of the country under one roof. They provide its
customers with different variety of brands ,efficient after sale services ,looks and price
ranges.Titan sells their surplus stock at reduced prices in Value Mart.But these shops do not work
as normal shops and also they are not place in the main locations.As the price for sonata watches
are cheaper , it attracts a large number of customers and hence there is an increase in demand of
these watches .Sonata stores are an authorised service centre for Titan and Sonata brands .Theae
shops can afford to maintain full stocks of watches in demand as compared to others.

4.PROMOTION : Marketing Pricing : the opening of more and more new stores like the world of
Titan eliminates the element of middlemen as customers can directly purchase the watches from
the dealer .I n such cases the retailers gets 17%profit margin on sales as they buy watches for 17-
18% lesser than the marked retail price.This increases trust, worthiness,differentiation,
 innovation and value for the product.Every year Titan provides discount on watches to its
customers which attracts more customers.

CREATIVE ADVERTISING :Titan products reach its customers through advertisements on

Television and Internet.A contest is organised by Titan on cartoon network for children to use
their creative skilks and design a watch.The design that wins the first prize is then launched as its
new collection.Titan believes in producing well made and clear ads .The brand ambassador of
Titan watches is Aamir Khan for its sub brands,brand ambassadors are Mahindra Singh Dhoni for
Sonata, Gul Panag –Rni Mukherjee for Raga and Rhul Bose for Xylys.The Titan Tagline for its sub
branf Fastrack is ’ HOW MANY YOU HAVE ’.

5.PEOPLE : Today one can schedule his/her day according to time and the watch will help his /her
in executing that schedule.Titan understood this need of the people and came up with beautiful
watches .Some of which are simply masterpiece. Titan Edge is supposed to be the World’s
slimmest wrist watch as claimed by Titan .Apart from the Titan Edge the list of Titan watches also
includes steel, regalia , fastrack , technology ,octane etc. Titan has emerged the image of a brand
which makes a compromise on quality and the overwhelming response from the people
encouraged the company to run a decent number of exclusive showrooms of Titan watches.

6.PROCESS : Spread over india with over 750 service contact points in more than 250 towns ,Titan
Company’s service centre network is committed to deliever a satisfying post sales experience to
all the customers.

7.PHYSICAL ENVIRONMENT : Titan has chosen some of the ssupreme qualities to craft its
watches.Titan watches are about high performance ,quality, durability and endurance.A series of
watches that epitomizes person’s character .Sensitive , elegant , energetic , imaginative , talented
, simple , honest , original , smart-anyone name the quality and Titan will surprise him with
master craftmenship in making wrist watches.

8.PACKAGING : Titan considers packaging as an integral element of its product because it offers
protection and increased shelf-life .Therefore, Titan focuses on sourcing the best raw materials
for packaging .High end products are usually sold in high quality leather cases and medium to low
end products are offered with leather and plastic packing.

PRODUCT LIFECYCLE
Introduction :WWF ,Orion , Zoop , Diva , Octane .

In the introduction stage ,the firms seeks to build product awareness and develop a market for the
product. The impact on the marketing mix are as follows :

PRODUCT branding and quality level is established,and intellectual property protection such as
patents and trademarks are obtained.

PRICING may low penetration pricing to build market share rapidliy or high skim pricing to recover
developmental costs.

DISTRIBUTION is selective until consumers show acceptance of the product.

PROMOTION is aimed at innovators and early adopters .Marketing communications seeks to build
product awareness and to educate potential consumers about the product.

Growth :Nebula , Raga , Royal , Regalia , Edge etc

In the growth stage , the firms seek to build brand preference and increase market share.

PRODUCT quality is maintained and additional features and support services may be added.

PRICING is maintained as the firm enjoys increasing demand with little competition.

DISTRIBUTION channels are added as demand increases and customers accept the product..

PROMOTION is aimed at a broader audience.

Maturity : Sonata , Fastrack, Dash .

At maturity , the strong growth in sale diminishes .Competition may appear with similar products .
The primary objective at this point is to defend market share while maximizing profit.

PRODUCT features may be enhanced to differentiate the product from that of competitors.
PRICING may be lower due to new competition.

DISTRIBUTION becomes more intensive and incentives may be offered to encourage preference over
competing products.

PROMOTION emphasizes product differentiation.

Decline : Aqura.

As sales declines ,the firms has many options:

Maintain the product ,possibly rejuvenating it by adding new features and finding new users.

Harvest the product –reduce costs and continue to offer it , possibly to a loyal niche segment.

Discontinue the product , liquidating remaining inventory or selling it to another firm that is willing to
continue the product.

The marketing mix decisions in the decline phase will depend in the selected strategy. For
example ,the product may be changed if it is been rejuvenated or left unchanged if it is been
harvested or liquidated .The price may be maintained if the product is harvested or reduced
drastically if liquidated.

TARGET CONSUMERS

 Demographic
Age : 6-11 , 12-19 , 20-34 , 35-49 , 50-64 , 65+
Gender: Male ,Female.
Occupation :Professionals , Retired , Students , Homemakers , Sportsmen .
Social Class :Working class , Middle Class , Upper Middle Class , Lower Upper , Upper Uppers.
 Psychographic

Lifestyle : Culture oriented , Sports oriented , Outdoor oriented.

Personality : Gregarious , Ambitious .

PRODUCT

 Product Type
- Convenience .
- Shopping .
- Speciality .

VALUE CHAIN ANALYSIS OF TITAN

1.Firm’s Infrastructure :Financially sound ,Good corporate governance, well established
infrastructureto support new investments ,enterprise resource planning though SAP and
strategic planning.

2.Human Resource Management : Titan manage recruitment ,training and

development ,rewards and remuneration ;encourages employees to learn ,innovate and grow
;leadership development.

3.Technology Development :Focus on innovation t reduce costs, R&D programme ,Customer

relationship management,Production Technology and Product Assembly Technology.

4.Procurement of Resources : Opportunity to local as well as global procurement

,supplier/vendor development programme ,build strong relationship with vendors through
collaboration ,preference towards domestic and eco friendly suppliers.

PRIMARY ACTIVITIES

5.Inbound Logistics :Premium product components sourced from foreign

suppliers.Component for medium to low and product sourced locally.

6.Operations : Products manufactured locally,efficient demand planning, state of art facilities.

7.Outbound Logistics : Main distribution done through wholesalers , Use of clearing anf
forwarding agents to reduce distribution costs.

8.Marketing and Sales: Sell products via own exclusive showrooms, Provision of shopping
online, Network of spare distributors.

9.Service :Establish service centers close to showrooms, Focus on after sale service and
complaint handling, Customer loyalty program.

SWOT ANALYSIS OF TITAN

STRENGHTS WEAKNESSES

-Worlds top five and India’s biggest watch -Lack of futuristic approach.
manufacturer. -Lack of flexible thinking.
-Brand image and fashion accessory. -Xylys have been camouflaged by the Titan
-Quality or price positioning. brand image.
-Market segments with large potential. -Haven’t penetrated the global market.
-Customer value and offered after sale
service.
-Exported in 40 countries.
-Different sub brands.
-Positioning on demographic segmentation.
OPPORTUNITIES
-Nearly 35 million watches are sold through
gray market channels.
-Opportunity of increased sales in
compared to customer volume.
-Exchanging offer.
-Rural market.
-Under penetrated market.
-Global expansions and tie ups.
THREATS
-Too many players will dilute the market and
profit margin.
-Low priced china watches.
-Mobile phones.
-Lack of focus on brand strategy.
-Stiff competition faced by foreign brands.

QUALITY MANAGEMENT ,CUSTOMER LOYALTY AND BRANDING

TOTAL QUALITY MANAGEMENT

Successful companies like Titan have adopted the modern customer oriented organization
chart which is clearly stated in their Values and Standards specifying the ‘Total Customer
Orientation ‘mindset which allows customers take precedence over all else, always.

Titan which makes use of Customer relationship ,anagement to manage information about
individual customers and all customers touchpoints to maximize loyalty. It enables the
company to provide excellent real time service based on what they know about the customer
and customize market offerings , services, programs ,messages and media.The company is
therefore able to focus on total quality through correctly identifying customer
requirements ,communicate the requirements to product designers ,timely and accurate
delievery of requirements, customer education and technical assistance for product use ,after
sale service and promotions ,gather customer ideas for improvements and communicate to
relevant sectors of the company.

Accordingly , by maintaining a strong value chain model the company the company is able to
take an organization wide approach to cintinuosly improve the quality of its
processes ,products and services and implement the Total Quality Management approach.

CUSTOMER LOYALTY

The company with th efocus on building loyalty is creating superior products ,services and
experiences for all its target segments . It has developed individual websites for each of its
watch brands providing its customers with detailed product information,sales and service
center locations , online purchase portals in partnership with various product websites and
customer blogs for discussions and feedbacks ensuring the company to maintain the
database of information for customer needs, preferences ,contacts, purchase frequency and
satisfaction.
But more importantly taking acue for brands which have unified loyalty cards with diverse
brands Titan Industries have merged its loyalty programs across three brands into one
encircle Loyalty card. Titan ran three separate loyalty programs-Vista for its Titan Eye Plus ,
Anuttara for Tanishq and Signet fot its World of Titan. Now customers of Titan are expanded
across these three brands as well as exclusive Fastrack Stores and at Helios , its multi brand
watch chain.

Accordingly the combined database of customers across all th efive Titan brands is huge .8
million customers are still ticking. The unified loyalty program has helped in understanding
and connecting with the customer base for right strategies. Titan customers can now redeem
points across 950 storesc of its various brands whereas earlier it was limited to only one
channel.

THE BRANDS AND BRANDING

Titan is the fifth largest integrated own brand watch manufacturer in the world. The success
stry began in 1984 with a joint venture between the TATA group and Tamil Nadu Industrial
Development Corporation. Presently Titan Quartz watches that sported an international
look ,Titan company transformed the indian watch market.The company reached the youth
segment with Fatrack , its tjird brand trendy and chic .

BCG MATRIX

STAR PRODUCTS OF TITAN QUESTION MARKS OF TITAN

-Tanishq -Octane.
-Titan Edge. -Tycoon
-Titan Raga -Helios watch store.
CASH COWS OF TITAN DOGS OF TITAN
-Orion . -Gesture band
-Obaku.
-Sonata.

Marketing Strategy of Titan

The center piece of Titan’s strategy was Quartz which changed the Indian watch market.
Titan watches without any doubt are the market leader in this segment. The core marketind
concept was that the company first wanted to project as something more than normal time
keeping machine and to introduce the concept of style in India was Titan .Another sub brand
launched by Titan was Sonata which was a hugh success because of the fact that it was a
cheaper product and also it is a ptemium brand .Sub brands like steel, dash, nebula,fastrack ,
royale, raga, edge were introduced to the market when Titan realized that the customers
were looking for somwthing new and exciting . Titan is trying to bring larger connections
between the customers and the Titan brand with the new concept of titan ‘BE MORE’ .By
shifting its focus from product attributes to emotions , earnings , aspirations and experiences
they are trying to change its portfolio.

CURRENT BUSINESS PLAN OF TITAN

Titan Industries Limited a joint venture between TATA group and the Tamil Nadu Industrial
Development Corporation (TIDCO) is planning a capital expenditure of Rs 450 crore on retail
expansion and new manufacturing units , a growth of three times since last year.

In 2012-2013 ,it has spend Rs 150 crore on capital expenditure.The company which currently
has 953 retail outlets across all its business divisions ,plans to open atleast 200 outlets for its
watch , jewellery,eyewear and fashion accessory business.It also plans to set up two
Greenfield Manufacturing Plants for watches in Coimbatore and precision engineering in
Hosur besides setting up a karigar centre at Hosur ,bhaskar bhat.Managing Director of Titan
Industries said,’We are currently manufacturing 7.6 million watches in Hosur and import high
end watches , Xylys from Switzerland .We are now looking up at setting a new plant to
manufacture 2 million mid range and other high end watches like Edge among others in new
plant at Coimbatore.We are awaiting for all clearences and start the work shortly .For the
year ended march 2013 Titan Industries reported a 14.3% growth in revenue at Rs 10213
crore with watches contributing Rs 1675 crores .