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CHAPTER-1

INTRODUCTION

Back in the early eighties, TATA GROUPS had identified the watch category as a potential
consumer market for the TATA’S to enter, XERXES DESAI, a Tata veteran and then MD of
TATA press, was chosen to lead the watch venture. Titan is one of India's leading watch brands
that has brought a paradigm shift in the Indian watch market when it introduced its futuristic
quarts technology, complemented by international styling.

Titan industries has reached out to the youth segment with fastrack, its third brand, trendy
and chic. Titan industries launched Tanishq, India’s most trusted and fastest growing jewelry
brand. Titan Company has also made its foray into eyewear, launching fastrack eyewear and
sunglasses, as well as prescription eyewear.

The organization has leveraged its manufacturing competencies and branched into precision
engineering and machine building.Titan has headquarters at India and it has its presence in 4
continents and 32 countries.
The watch division boasts of over 300 exclusive showrooms christened ‘World of Titan',
placing the brand amongst the largest chains in its category backed by over 650
after-sales-service centers.

Titan Industries is also the largest jewelry retailer in India with over 119 tanishq boutiques
and zoya stores, over 28 gold plus stores and over 120 Titan Eye+stores.

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Govt. First Grade College for Women, Chitradurga

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 CHAPTER-2

2.1 INDUSTRY PROFILE

2.1.1 Growth of Watch Industry in India:
The present demand for wrist watches in India is estimated between 12 million and 15
million per year. However, at present domestic production is only 7-2 million watches. The
balancing being met by watches brought into India from abroad.

A growth projection for the industry as a whole is estimated to be 6% per annum. This
explains the positive reaction of the existing manufactures in the market to the new entrants.

The government's recent decision to open electronic digital watch manufacture to the
private sector with foreign share (up to 4%) is expected to encourage more new watch industries.

Predictions in the industry are that a shift from the present manufacture of automatic &
mechanical watches is inevitable. The current trend in the Indian markets is towards the more
sophisticated models. All over the world mechanical wound watches & to some extent the
automatic watches have given way to quartz & digital watches.

For the customer, more competitors means a greater variety & choice ,latest designs &
models ,guaranteed after-sales service & quality products from collaborative ventures with the
world's renowned watch manufacturers.

2.1.2 Corporate Citizenship

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 We ensure that a part of our resources is invested in environment and community
betterment. Titan has built on this principle over the last 15 years, almost year after year: In
1989, it was Aqura, the trendy range for the youth, colorful, smart and affordable plastic watches
for the youth: The other side of Titan for the other side of you.

● In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for the
sophisticated India woman who appreciated such things.
● In 1993, it was Insignia, very distinctive and international-looking top-end watches, for
those seeking exclusivity and status.
● In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious sports
features (200-m water resistance, high precision chronographs) for those with the
penchant for adventure.
● In 1996, it was Dash, the cute and colorful range for kids.
● In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.
● In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-heart.
● In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches for
those affluent people to whom gold is a precious acquisition.
● In 2001, it was Steel, the smart and contemporary collection for the young 21st century
executive.
2.1.3 Brands for Titan
The main brands that have reigned on the Indian market for Titan over the years are:

● EDGE
Through cutting edge watch-making technology and four years of research and
development, Titan. has created sensation by coming up with the world's slimmest wrist
watch "Titan Edge" of just 3.5 mm in thickness and a wafer thin movement of 1.15 mm
● NEBULA
The Trousseau Collection of expensive jewelry watches for women from Titan bear
intricately carved designs in paisley and floral patterns. Watches may also have pearl
dials, or studded with 16 diamonds, or deftly crafted in solid Gold of 10 carats.

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● FASTRACK
This range has become the obsessions of the Indian youth, for their digital technology,
trendy shapes, and casual and sporty designs.

● RAGA
The watches in this collection are exclusively for women, whose gold, steel and bicolor
looks with leather bands or metallic bracelets signify feminine grace and substance.
● REGALIA
The exclusive range of watches in gold and steel are meant for social occasions
● BANDHAN
The collection in gold that is solely available in pairs, has been a 'must buy' for weddings
● FLIP
The favorite among professionals, the watches enable their owners to switch from sporty
to corporate look or between professional and personal occasions with a "flip" of the dial.
● SONATA
The wide collection that includes 400 models of watches is designed for customers, who
look for a mix between durability and affordability. These wrist-gears are water resistant
(for up to 30 meters) and come in metallic and a host of other cases with a guarantee of 1
year.
● XYLYS
The collection added was another feather in Titan's cap that consisted of a premium
selection of watches that are the result of exquisite craftsmanship. The collection was
created by Titan's design advisor Michael Foley in collaboration with renowned Swiss
designer Laurent Rufenacht.
● OCTANE
Launched in early 2008, this chronograph collection for men comes in steel-and-chrome
with a choice of eye-catching dials that complement a true metrosexual.

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 And in 2008, the brand had collections like the Octane, Diva, WWF and Zoop - each of
them unique and fascinating.
The company brought about a paradigm shift in the Indian watch market, offering quartz
technology with international styling, manufactured in a state-of-the-art factory at Hosur, Tamil
Nadu. In 1995, the company diversified into jewelry under the brand Tanishq to capitalize on a
fragmented market operating with no brands in urban cities. In 2005, the company launched its
second jewelry brand, Gold Plus, to capitalize on opportunities in small towns and rural India.
The company has now entered into eyewear, launching Fastrack eye-gear sunglasses and
prescription eyewear.

2.1.4 Area of Business

Titan's main products are:

a) Watches
b) Jewelry
c) Eye wear
d) Precision engineering

a) Watches: The four main watch brands include Titan for the mid-premium segment, Fastrack
focused on the youth and trendy fashion space, Sonata for the mass market and Xylys for the
premium market. The Titan brand architecture comprises several sub-brands: Titan Edge, Titan
Raga, Nebula and several other collections like Wall Street, Heritage, Regalia, and the Aviator
series.

The company manufactures over 12 million watches per annum and has a customer base of over
100 million. Today, the Titan portfolio has over 60 per cent of the domestic market share in the
organized watch market. Watches are sold through exclusive 'World of Titan' showrooms and at
12,000 outlets in more than 2,500 cities in India and internationally in over 30 countries,
primarily in the Middle-East and Asia Pacific. Its after-sales-service is itself a benchmarked
operation with service centers and amongst the world’s fastest turnaround times. The company
has a world-class design studio for designing watches and accessories.

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b) Jewellery: Tanishq is India’s largest, fastest growing jewelry brand with a premium range of
gold jewelry studded with diamonds or colored gems, and a wide range in 22kt pure gold and
platinum jewelry. Gold Plus is the recent retail plain gold jewelry offering for the mass market.
The jewelry division has its own design studio.

c) Eye wear: Titan Eye+ retails sunglasses under the Fastrack brand and prescription eyewear
consisting of frames, lenses, sunglasses, accessories and contact lenses of its in-house brands and
other premium brands.

d) Precision engineering: The Company’s Precision Engineering Division supplies precision

components to the aviation and automotive industries. It also manufactures dashboard clocks as
OEM to car manufacturers in Europe and America, and provides fully integrated automation
solutions. This division is certified under AS9100B for the aerospace segment, TS 16949 for the
automotive segment and the coveted Ford Q1 status – the highest possible supplier recognition
from Ford.

Location
Headquartered in Bangalore, India, the company has manufacturing and assembly
operations at Hosur, Dehradun, Roorkee, and Baddi in Himachal Pradesh, Banth nagar and an
ECB plant in Goa.

Titan Industries is the organization that brought about a paradigm shift in the Indian
watch market when it introduced its futuristic quartz technology, complemented by international
styling. With India's two most recognised and loved brands Titan and Tanishq to its credit, Titan
Industries is the fifth largest integrated watch manufacturer in the world.

The success story began in 1984 with a joint venture between the Tata Group and the
Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an
international look, Titan Industries transformed the Indian watch market. After Sonata, a value
brand of functionally styled watches at affordable prices, Titan Industries reached out to the
youth segment with Fastrack, its third brand, trendy and chic. The company has sold 100 million
watches world over and manufactures 12 million watches every year.

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 With a license for premium fashion watches of global brands, Titan Industries repeated its
pioneering act and brought international brands into the Indian market. Tommy Hilfiger and
Hugo Boss, as well as the Swiss made watch – Xylys owe their presence in the Indian market to
Titan Industries.

Titan Industries has leveraged its manufacturing competencies and branched into
precision engineering components and subassemblies, machine building and automation
solutions, tooling solutions and electronic sub-assemblies in 2002. Titan Industries has also made
its foray into prescription eyewear, launching the Titan Eye+ chain of world class optical stores
in 2007.

With over 1,480 retail stores across a carpet area of 1.9 Million sq. ft, Titan Industries has
emerged as India’s largest retail network. The company has over 290 exclusive ‘World of Titan',
Helios and Fastrack showrooms and 745 after-sales-service centers. Titan Industries is also the
largest jewelry retailer in India with over 140 Tanishq boutiques, Zoya and Gold Plus stores and
over 75 Titan Eye+ stores.

Backed by over 4,300 employees, two exclusive design studios for watches and jewelry,
over five manufacturing units, and innumerable admirer’s world over, Titan Industries continues
to grow and sets new standards for innovation and quality. The organization is all geared to
repeat the Titan and Tanishq success story with each new offering.

In Titan Industries,
The employees are classified into two categories

E-level 1021 employees

L-level 422 employees

Trainees 17 employees

Shop floor (temporary) 317 employees

Other than shop floor (temporary) 276 employees

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 2.2, COMPANY PROFILE OF TITAN

2.2.1, INTRODUCTION

Titan is a joint venture between TATA and Tamil Nadu Industrial Development
Corporation (TIDCO). Titan is in the forefront of the TATA value system of creating wealth for
the nation and earning the respect of all the stakeholders and the community at large through
excellence in every aspect of the business and individual conducts. Set up in 1985 with an initial
planned annual capacity of two million watches, the company today produces over 6 million
watches annually and has successfully diversified into previous jewelry and premium watches.
The company is acclaimed to be a visionary in the watch industry and is perhaps one of the few
profitable watch businesses in this part of the globe. The company has passionately pursued the
business excellence model based on the Malcolm Baldridge Criterion and is assessed to be the
second best in the group behind TISCO.

2.2.2, Tata:
The house of Tata’s is the largest private sector group in India. The people who have
made the most significant contribution to India’s industrialization and progress in the 20th century
through their involvement in the diverse industry.

According to the marketing white book 2005, the size of retail is as high as 85%. Within
the organized retail sector, clothing and textile dominate with a 36% share followed by watches
and jewelry, which has a 17% market share.

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 I. Vision Statement:
a) Vision:
To be innovative, world class, contemporary and build India’s most desirable brands.
b) Customer focus:
Titan passionate about understanding customer needs and expectation delighting a
customer is therefore a natural outcome.
c) Creativity and innovation:
They were ideas, company creativity and innovations are lifeblood.
d) Performance culture and teamwork:
They dare to dream big and work together to realize it. High performance is a way of life
with them.
e) Quality:
They will attain and maintain excellence in all that they do.
f) Wealth creation:
They ensure creation of value in all that they do for stakeholders.
g) Respect and care for the individual:
They value every Titanian and strive to fulfill his/her needs and aspirations.
h) Corporate citizenship:
They care about the environment and the community; they live in and will invest a part of
their resources in improving them.

II. Mission Statement:

Titan seeks to achieve these value goals through a focused pursuit of outstanding quality
in both the ends that we target and the means that we adopt. Titan encourages and enables
individuals and groups to realize their fullest potential through rationality and creativity,

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celebration and passion, transparency and informality, pride in the past and excitement about the
future.
Name of the Company:
The name TITAN is an acronym derived from the names of the promoters.
Tata Industries & Tamil Nadu Industrial Development Corp.
“TITAN COMPANY LIMITED’
2.2.3, History of Titan

Early 1980 TIDCO invites TATA to participate in a joint venture to manufacture wrist
watches.
Mar. 1982 Memorandum of understanding signed between TATAS and FRANCE
EBAUCHES to participate in a joint venture for the manufacture of watch
movements.
Aug. 1982 Government of India accords approval to TIDCO for the project.
Mar. 1983 TATA floated a new investment company - Questar Investment Limited
specifically for this project.
Feb. 1984 Agreement signed between TIDCO & QUESTAR INVESTMENT LTD.,
to set up a joint sector wrist watch manufacturing company – TITAN
WATCHES LTD.,
Jul 1984 Titan Watches Ltd., was incorporated
Mar 1985 Approval received by Titan Watches Ltd., to implement the project
May 1985 Application to Government of India for phased manufacturing programme.
Oct. 1985 Mr. Robert Director of Overseas, Projects France Ebauche visits India for
finalization of product, product mix and technology.
Mar. 1986 Commencement of building construction
May 1986 Approval received for phased manufacturing of programme for a
production capacity of 2 Million Quartz Analog wrist watches.
Sep. 1994 The name “TITAN WATCHES LTD.,” changed as
“ TITAN INDUSTRIES LTD.,”
1996 Tanishq

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 1997 Sonata,Exist Timex Sv
2004 Fastrack & Precision Engineering
2005 Goldplus
2006 Xylys
2007 Eyewear
2009 Zaya
2010 Accessories Helios
2013 SKINN Perfumes fastrack,helmets,e-commerce
2014 Entry into Jewellery Dubai/Singapore Subsidiarization of precision
Engineering
2015 Launch of July Smartwatches,Rollout of mount Blane stores
2016-2 Acquisition of “CaratLane” pilot launch of “Taneira” saree with rollout of
017 2 stores.

2.2.4, Titan Manufacturing Division and its Products:

A Titan industry has three major manufacturing divisions namely:
● Watch division

⮚ Quartz analog wrist watches

● Jewelry division

⮚ Precision jewelry watches

● Bracelet and new business division.

⮚ Metallic bracelet and pieces.

2.2.5, Strategies followed by Titan:

The following strategic priorities will form the basis for developing the vision of the
division:
● Titan will invest in its watch brands to create profitable, desirable and powerful brands.

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 ● Titan will create a delightful shopping and service experience for its consumer and build
enduring and profitable relationships with its associates.
● Titan will improve manufacturing efficiencies and reduce capital employed in order to
achieve significant cost reduction and improve profitability.
● Titan will use its core competencies in the areas of design and retailing to extend the
brand strengths to other prestigious, personal accessory categories.
● Titan will ensure that it continuously delivers increasing profits and profitability to its
shareholders.

2.2.6, Corporate Social Responsibility:

A Titan industry has a clearly defined policy in social responsibility and believes that an
organization cannot be an island of excellence in a sea of troubled waters. CSR initiatives
include children’s education, enabling the disabled, Artisan parks, women’s empowerment,
environment management programmers and other community initiatives. Titan is a signatory to
the Global compact and has been awarded to the company.
The manufacturing units of the watch and jewelry division at Hosur are certified under
ISO 9001:2002 quality management system standards as well as ISO 14001 environment system
standards.

2.2.7, Goal of the Company:

⮚ Ensure high degree of satisfaction to all stakeholders.

⮚ Pals India on the world map of high quality goods and services.

⮚ Constantly and value the prestigious TATA name.

2.2.8, Titan’s Corporate Objectives:

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 ⮚ A significant and respected global watch brand

⮚ The market leader in India

⮚ Ensure high degree of satisfaction to all stakeholders

⮚ Place India on the world map of high quality goods and services

⮚ Constantly add value to the prestigious TATA name.

2.2.8, Five Core Values:

The Tata group has always sought to be a value driven organization .These values
continue to direct the group’s growth & business. The five core Tata values underpinning the
way do businesses are:

Customer Focus:

❖ We are passionate about understanding customer needs and expectations.

❖ Delighting our customer is therefore a natural outcome.

Performance culture and term work:

❖ We dare to dream big and work together to realize it.

❖ High performance is our way of life.

Quality:

❖ We will attain and maintain excellence in all we do.

Creativity and Innovation:

❖ We are an ideas company.

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 ❖ Creativity and innovation are our lifeblood.

Wealth creation:

❖ We ensure creation of value in all that we do for our stakeholders.

2.2.9, Titan Derivation:

The name Titan is an acronym derived from the words Tata industries and Tamilnadu. Titan
watches limited is a joint venture of Tata industries & Tamilnadu Industrial Development
Corporation Limited & located in the state of Tamilnadu.
Another contributing factor to the choice of the name was its rich meaning the word ‘Titan’
means.
● One who has extraordinary size, strength, intellect or power.
● Member of the race of giants who were descendants of Uranus & Gaea, early Greek
Gods.
Titan industries limited was incorporated in 1984 as a joint venture between the Titan and
Tamilnadu Industrial Development Corporation Limited. A Government of Tamilnadu
undertaking. The company has its registered office in Hosur , an industrial town in Tamilnadu
and corporate offices located in Bangalore Karnataka state.

2.2.10 “External Recognition for Titan Brand”:

● Titan has won the “retailer of the year “award for 2005 for watches retailing and also
retailer award in overall across other categories and brands it images fashion award
successively for 5 years.

● Titan bagged the “Award for brand leadership” in the consumer durables category
conducted by brand summit; it also won the “retailer of the year award “for retail
excellence in the lifestyle category at the India retail summit.
● Business world “Best lifestyle product design award” was bagged by titan “Edge”
slimmest watch in the universe.
● Titan world watch campaign won the “silver medal “in the year 2004.

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2.2.11, Titan Franchise
● Titan is the market leader, having a variety of ranges The trainees learnt to become
more approachable by observing the personnel department.

2.2.12, The World of Titan:

We have revolutionized watch retailing in India, by setting up a chain of high profile
stores. The World of Titan is our face in the market, a store providing an international ambience
showcasing our entire range. This provides the customer with the complete brand experience -
making it the most preferred place to buy the most preferred watch from.

2.2.13, Current Network:

Over a period of 20 years, the chain has grown to 235 showrooms at prime locations
across 113 towns in India. These showrooms have grown along with the company, both in
business and profits, which is testimony to the success of the chain.
● The World of Titan is the face of 'Titan' in the marketplace. Hence, each showroom
has a turnover of about Rs. 20 to 30 million a year in large cities and about Rs. half a
million a year in smaller towns. All existing showrooms exhibit a consistently high
growth of about 15% to 25% every year.
● The World of Titan stores show a healthy return on investment of more than 24%.
Although the net earning potential of a showroom varies from market to market, in all
cases it exceeds market rental value of the property.
● Most showrooms break even in the first year and start making profits from the second
year onwards.
● We have a dedicated retail team with professional expertise in setting up and
operating showrooms across the country. This team is dedicated to the World of Titan
and works on improving their business potential.
2.2.14, Distribution in India:
A key business partner of Titan in the marketplace, is the redistribution stockist. The
distribution channel handles well over 50% of the watch business of the company. The main

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focus of this channel is market penetration and coverage. Currently we have 65 distributors
handling well over 6000 dealers across the country.
2.2.15, Watch Industry:
Started as a watch company, Titan Industries' main focus has been to increase the breadth
and depth of its portfolio of product offerings. International labels such as Tommy Hilfiger and
Hugo Boss are now a part of its basket, along with Fast track — a brand targeting youth — and
the mid-range brand Sonata. The company manufactures more than nine million watches every
year, has a customer base of over 80 million, and accounts for 60 per cent of India's organized
watch market.

In 2005, bolstered by the success of Tanishq —- a range of premium branded jewelry —

the company launched its second jewelry brand, Gold Plus, aimed at the mass market. The
company has recently diversified into fashion eyewear by launching Fast track Eye-Gear
sunglasses and prescription eyewear. Titan's manufacturing capabilities were leveraged into a
new business unit called the Precision Engineering Division in 2003.

2.2.16, Competitive Strengths:

o Strong brands
o Strong retailing, distribution and supply network.
o Design experience.
o Integrated manufacturing
o Leading market position
o Focus on quality
o Experienced management and technical team.

2.2.17, World of titan showrooms:

World of Titan showrooms are both company managed and finished. Currently they have
over 1,480 Exclusive Stores in 276 cities/towns Spanning over 1.9 Million Sq ft of Retail Space.
The company managed showrooms serve as flagship retailing stores designed to provide the best

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that the world of titan has to offer to customers. They also influence the operations of other
franchisees and bring about uniformity across the retail chain.
A) Watches:
Titan currently has four main watch brands. The premium brands are Titan and Xylys —
a Swiss made watch designed to attract the high end market segment. The company has launched
two sub-brands under the Titan umbrella; Titan Edge incorporates the world's slimmest watch
movement and Titan Raga is a brand aimed at women. Apart from these, the other offerings are
Heritage, Wall Street, Regalia, Aviator and the premium brand Nebula, which is crafted with
gold and precious stones. Sonata is India's largest selling watch brand. Fastrack focuses on youth
and trendy fashions. The company also markets Tommy Hilfiger and Hugo Boss under licensing
arrangements.

The company has more than 200 exclusive showrooms, christened 'World of Titan',
across 112 cities, making it one of the largest chains in its category. Its watches are sold through
over 12,000 outlets in over 2,500 cities and are available in over 30 countries, primarily in the
Middle East and the Asia Pacific regions. Titan's after sales service is a benchmarked operation,
with a network of 750 service centers and amongst the world's fastest turnaround times. The
company has a world-class design studio for watches and accessories.

B) Jewelry:
Tanishq is India's largest jewelry brand, offering a range of gold and platinum jewelry,
embellished with precious stones. It is available in more than a hundred specialty boutiques in 71
cities across the country. The new brand `Gold Plus' is a retail offering for the mass market,
selling plain gold jewelry in more than 20 cities. The jewelry division has an exclusive design
studio.

C) Eyewear:
Eye+ is Titan's new division, selling Fastrack sunglasses and a range of prescription eyewear
— frames, lenses, sunglasses, accessories and contact lenses.

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 D) Precision Engineering Division:
This unit supplies precision components to the avionics and the automotive industry. It
also manufactures dashboard clocks as original equipment manufacturer (OEM) to car
manufacturers in Europe and America. The division also provides fully integrated automation
solutions.
2.2.18,Location:
Headquartered in Bangalore, the company has manufacturing and assembly operations at
Hosur, Dehradun, Roorkee and Baddi (Himachal Pradesh) and an ECB plant in Goa.

2.2.19, Process Adopted At Titan Watches:

Titan produces stainless steel, brass watch cases by cold forging and machining
operations. Watch movements produced by titan are from the highest class of precision
technology adopted by world renowned watch manufacturing in most of the areas automatic and
semi-automatic machineries are used for mass production.
It is worth mentioning that the tool room is equipped with state of the art machinery which
can produce micron accurate precision tooling for watch movement and case manufacturing.

2.2.20, Under Watch Division:

The watch division is the mother concern for the overall titan group of industries. At present
the watch division consists of young and energetic male and female and differently-abled
employees 1865 and 105 respectively. Apart from 31 trainees who are engaged in various multi
skilled operators in different areas like manufacturing or watch case components, module and
watch assembly

2.3, ORGANIZATION STRUCTURE

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CHAPTER-3

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 3.1 PRODUCTION DEPARTMENT

3.1.1, INTRODUCTION

Titan’s state-of-the-art jewelry and jewelry manufacturing plants are located at Hosur in
the southern state of Tamilnadu spread over 55000 square meters of build-up space’ Titan
employs about 3000 highly skilled personnel.

Titan’s watch manufacturing facility was set up in 1987 in Hosur, India, with initial
technical Know – how from Europe and Japan. Over the years, the company has grown to
become one of the largest integrated watch – manufacturing units in the world.

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3.1.2, Production Department and Functions:

a) Auto-Turning:
The manufacture of all cylindrical watch components.
b) Assembly:
Planning and supervising process of assembly watch case parts.
c) Case polishing:
Buffing and polishing watch cases to improve surface finish.
d) Case plating:
Providing a various surface coating to case parts and straps.
e) Costing:
Comparing actual and standard value and so find out the variance in order to reduce the
cost.
f) Designs:
Design innovation and the preparation of standards technical design incorporating
manufacturing details of finished products.
g) Excise:
Full of documentation for both excise duty and service tax of finished goods and
manufacturing.
h) Gears and assembly:
The production of all gears required for watch manufacturing.
i) Inspection and quality control:
Complete quality control through all stages of manufacturing and assembly.
j) Press shop:
The production of steel metal components required for the manufacture of watch
modules.

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3.1.3, An Overview of Titan Manufacturing Facilities:
Titan has one of the largest and most integrated manufacturing facilities in the world
for watches. The capabilities in each area are given below.

3.1.4, Manufacturing process:

Watch and its parts

Watch

Movement Parts Appearance parts

Movement Parts Case Dial Hands Strap

Or
Bracelet

o Main Plate (EBAUCHE)

o Pressed components
o Turned components
o Electronic components
Any watch can be primarily divided into 2 parts; which is the appearance parts and movement
parts. The appearance parts are the visible parts of the watch, which serve both the aesthetic and
functional purposes and include the case, bezel ring, crown, dial, hands, strap and crystal. The

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movement parts are the mechanism of the watch that enables it to depict time. The more
functions of a watch the greater the number of parts.

They have the facilities to manufacture all the parts of a watch. The subsidiary in Goa
manufactures and sources their movements and integrated circuit boards while their unit in
Hosur manufactures all the Assembly parts. Though they have the capacity of manufacturing
watch bracelets, they outsource the same as it is
more cost effective.

3.1.5, The activity flow in the department is described below:

Realization of production order and material requisition by PPC.

(Production planning control)

Draw material from stores/previous operations and PPC.

Carry out production as per the work instruction.

Dispatch the components as per procedures.

Inspect the components as per procedure.

3.1.6, Design and Development:

This is one of the core strengths of Titan. The designs department is well equipped with
workstations and computers to enable the designers to have free hand. The designs department
uses the latest softwares like AutoCAD, Pro Engineer where in all their solid modeling, drafting

23
is carried out. They have excellent coordination between various departments to support the
manufacturing activities. Various developments has enabled the designs to be flexible and in line
with manufacturing as well as with the market. The types of design is product design tool design
packaging design. Design innovation and the preparation of standard technical designs
incorporating manufacturing details.

3.1.7, Tooling:
The tool room is equipped with CNC wire cutting machines capable of handling
0.03mm wire, precision CNC milling, Jig Boring, Spark EDM Cylindrical grinding and other
supporting machines. The tools manufactured are Progressive dies, multi station – cross travel
combination tools, multi-cavity prevision molds, forming dies, cutting tools, high precision step
drills, jigs and fixtures.

3.1.8, Press working:

Stamping presses of 25T and 35T capable of handling 130 SPM, friction screw
presses, hydraulic presses 300T, 25T secondary operation presses with die cushion, and hot
forging press. The products are precision forgings in stainless steel and brass, complex stainless
steel sheet – metal parts with high accuracy, coined parts in Stainless steel, compacting and
profile

3.1.9, Precision turning:

About 200 machines comprising sliding head stock automats (Peterman P3 and P7),
CNC sliding head stock automats (CINCOM) and CNC turning centers. Titan currently handles
precision turned parts for telecom industry and speedometer parts apart from the regular watch
parts.

3.1.10, Molding:
35T and 75T Aur burg and 25T Batten field closed loop CNC. The products are
precision watch movement parts, dashboard pointer parts, speedometer parts.

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3.1.11, Surface finishing:
Automatic polishing and buffing facilities for round parts, flexible components (such
as bracelets), super finishing of small / miniature / slender parts (by planetary tumbling), fine
sand blasting and staining.
3.1.12, Plating / coating:

❖ Wet plating capable of heavy plating of precious metals and PVD coating.

3.1.13,Automation / Machine building:

❖ Integrated facility for design, fabrication and commissioning of Assembly automation
and special purpose machines.
3.1.14,Heat Treatment:

❖ Comprehensive facility including vacuum hardening.

3.1.15,Electronics:

❖ A state of the art facility for manufacture of stepper motors, and high quality electronic

circuit blocks (ECBs)

3.1.16,Assembly:

❖ Assembly facility suitable for any type of assembly operation.

3.1.17,Quality management:

✔ Titan have an in-house standards room, a well equipped reliability test lab, metallurgical

test lab apart from the measuring and test equipment required at each production shop

✔ The manufacturing facilities are certified for ISO 9000 quality systems.

Titan is also certified for ISO 14000 Environmental Management Systems.

25
 3.2, SYSTEMS DEPARTMENT

3.2.1, INTRODUCTION
The IT requirement of Titan is fulfilled by the systems department. The system
department is integrated in its set up and is located at Hosur plant. The system department
primarily caters the hardware as well as software needs of Titan. It supports its manufacturing,
sales, finance and all the functions. The following chart shows the brief functions of the systems
department.

26
The advantages of SAP are

⮚ Inventory reduction

⮚ Product lead timer education

⮚ Better utilization of machines

⮚ Better planning

⮚ Seamless integration with marketing

⮚ Lean manufacturing

⮚ Better Management Information System

⮚ Integration of SBU’s (Strategic Business Units)

27
 3.3, FINANCE DEPARTMENT

3.3.1, INTRODUCTION
Today, Titan has over 60 per cent of the domestic market share in the organized watch market. Its
exclusive retail showroom chain – World of Titan – is amongst the largest in its category.

28
 ● For the year 2017-18, Sales income grew to Rs.15,656 crores increasing from
Rs.12,999 crores.

● Profit before taxes grew to Rs. 2,126 crores from Rs. 2,053 crores during the previous
year.

● Net profit for the year stood at Rs. 1,163 crores as compared to Rs. 762 crores in the
previous year.

3.3.2, International Operations

The Company achieved an export turnover of Rs.130 crores during the year. Exports include
sale of Watches, Jewellery and Precision engineered components.
a)Dividend
The Directors are pleased to recommend payment of dividend on equity shares at the
rate of 100% (Rs.10.00 per equity share), including a special Silver Jubilee dividend of
20%, subject to approval by the shareholders at the Annual General Meeting.

b)Finance
During the year under review, the Company raised a total of Rs. 249.20 crores from
borrowings, of which Rs. 239.82 crores were from Commercial banks and the balance of
Rs. 9.38 crores from other sources. Borrowings of Rs. 287.55 crores were repaid during
the year.

c)Depreciation
During the year 2008-09, the Company revised the estimated useful life of
Furniture & Fixtures from 15 years to 5 years which has resulted in an additional
depreciation charge of Rs. 7.90 crores.

STATEMENT OF PROFIT & LOSS:

STANDALONE CONSOLIDATED

29
 2017-2018 2016-2017 2017-2018 2016-2017

Revenue from operation 15,656 12,999 16,156 13,383

Other Income 86 65 89 70
Total Income 15,742 13,064 16,245 13,453
Expenditure 13,922 11,804 14,511 12,227
Profit before exceptional
items,finance costs,depreciation and 1,820 1,260 1,734 1,226
taxes

Finance Costs 48 37 53 37
Depreciation/Amortisation 110 93 131 111
Profit before share of profit/(loss) of an
associate and joint venture and
exceptional items and taxes 1,662 1,130 1,550 1,078
Share of profit/(loss) of a associate and
jointly controlled entity - - (3) (2)
Profit before exceptional items and 1,662 1,130 1,547 1,076
taxes 91 97 17 103
Exceptional items 1,571 1,033 1,530 973
Profit before taxes
Income taxes
-Current 446 300 450 302
-Deferred (38) (29) (22) (26)
Profit for the year 1,163 762 1,102 697
Attributable to
-Shareholders of the Company 1,163 762 1,130 711
-Non-controlling interests - - (28) (14)
Profit brought forward 1,268 1,012 1,190 984
Appropriations
Dividend on Equity Shares (excluding
tax) (231) - (231) -
Tax on dividends (47) - (47) -
Transfer to general reserve (250) (506) (250) (505)
Closing Balance in Retained Earnings 1.903 1,268 1,792 1,190

3.3.4,PERFORMANCE--2008-09 :Income (Rs. In crores)

30
3.3.5,Profit before tax (PBT) (Rs. In crores)

31
3.3.6,Capital Employed (Rs. In crores)

32
 3.3.7 INVENTORY MANAGEMENT AND CONTROL

Need for inventory control:

Inventory is maintained basically to ensure operational smoothness. It is the materials

department’s responsibility to ensure that this operational smoothness is carried out at the
minimum cost commensurate with efficiency. This is done through inventory control. Inventory
control may be defined as a set of policies and procedures by which an organization determines
what materials it should hold in stock and the quantities of each that it should carry.Inventory
consist of:

● Stores inventory: raw materials, spares, components, etc.

● Work-in-process: semi-finished goods on the factory floor.
● Finished goods lying in the warehouse prior to dispatch for sale.

Large inventories tie up large amounts of money. On the other hand, too little inventory
might end up in work stoppages, extra machine set ups, lost sales and loss of customer goodwill
because of inability to deliver the product. It is of prime importance that a business organization
determines and maintains an adequate inventory for a given business.Inventory is created for two
general purposes- protection and economy. Protection refers to the provision of the necessary
raw material with minimum delay. Whereas economy refers to the effect of lower product cost
by realizing the economies resulting from longer quantities per order. There are two fundamental
questions which normally arise in inventory control:

● How much to buy at one time?

● When to buy this quantity?

Four fundamental factors that govern this are:

● Requirements: This is based on the information

● Quantity in stock or on order

33
 ● Procurement time or lead time
● Obsolescence.

3.3.8, STORES ACCOUNTING AND RECORDS

STORES RECORDS:

Various records are used in the stores.

● Bin cards: These cards are very simple, giving the description of the item including the
code no., the unit of issues, the quantity of the item, etc.
● Stock cards: These are kept in the store's office. There are various kinds of stock cards-
Showing the quantity only, Showing the quantities and unit price, Showing the quantities,
unit price, value of stock, value of the balance in stock.
● Stores Transfer Note
● Material return note
● Goods inward note / goods receipt no.
● Materials reject no.
● Scrap note
● Gate pass
● Inventory for Temporary loan

3.3.9, Techniques of stocktaking:

● Annual stocktaking
● Perpetual inventory method
● Daily stocktaking
● Checking by stores- in-charge
● Periodic checking

Stock valuation: there are various methods of valuing material issues.

● FIFO: First in first out

34
 ● LIFO: last in first out
● HIFO: Highest in first out
● NIFO: Next in first out
● Base stock
● Simple average
● Weighted average
● Standard average
● Replacement price

From all the above mentioned concepts and advantages, it is clear that stores and
inventory management plays a major role in successful completion of any infrastructure project
and also accounts for a major chunk of profitability of the contractor.

35
 3.4, HUMAN RESOURCE DEPARTMENT

3.4.1, INTRODUCTION
The company has a total of 7420 permanent employees as of 2018, working in various
departments including corporate office, company owned showrooms, factories and other units,
they also have various trainees, contract workers and apprentices who are hired on a job or on a
temporary contract.

Employees are classified into different levels, namely:

1. ‘E’ Level: It constitutes the workmen at the factories.
2. ‘L’ Level: It constitutes junior to middle management.
‘R’ are those employees who work in both watch and jewelry divisions. (Retail outlets).
3. Senior Management level.

Workforce Number of Employees

SMT 68
(Senior Management Team)

Middle Management 1278

Executives 4307
Non-Executives 1767
Franchisee,Employees, 9586
Agency roll,
Casual Contract,
Apprentices

Total 17,006

36
3.4.2, Recruitment:
In case of recruitment for the vacancies approved by the Management, the recruitment
will be done automatically except if the indenting section wants to postpone or advance it, in
which case they have to send a separate note for it.

As far as possible internal mobilization of people would be looked into and in case of non
availability of the right manpower within the company, we may either refer to the application
bank or advertise.

Recruitment will be carried out according to the standards specified in the recruitment
Standards Annexure.

As far as possible, the vacancies will be filled with trainees and wherever previous
experience is a must we will resort to experienced people. For each category the selection
process will be as follows.
3.4.3, Process of Selection:

Category Selection Process

Operator Trainee (OPT) Psycho Diagnostic Test (PDT)
Written Test, (WT), Practical Test (PT),
Interview, Medical & Security Verification
(SC)

Craftsperson Trainee (CPT) PDT, WT, PT, Interview, Medical & SV

Graduate trainee PDT, WT, Intelligence Quantitative Test
(IQT), Interview, Medical, SV & Personality
Test

37
Technician Trainee / Supervisor Trainee (TT/ PDT, WT, IQT, Interview, Medical, SV &
ST) Personality Test

Programmer Trainee / Engineer Trainee / PDT, WT, Interview, Medical & Personality
Personnel Officer Trainee (PT /E T / POT) test.
Officer Trainee (OT) Group Discussion (GD), Interview & Medical

Management Trainee (MT) GD, Interview & Medical

Others L3 PDT, WT if needed, Interview, Medical & SV

L4 to L5 GD – if needed, Interview by Panel, f needed

to be seen by VP concerned Medical &
Business Head

L6 and above Candidate Panel Interview / Concerned VP

should be seen by Business Head or approval
on Bio – Data to be obtained before recruiting
the candidate.

Interview candidates will be reimbursed their traveling expenses depending upon the
category, if they travel beyond 40 kms radius from the place of interview.

For L1, L2, L3, L4, L5 category actual to and bus fare will be paid. If you travel by train,
second class train fare will be paid.

For a Managerial position either first class train fare or air fare will be reimbursed as
being mentioned in the call letter. The decision will be made by the respective VP and Head of
Human Resources.

3.4.4, Guidelines for issuing Appointment Letters:

Authority of issuing Appointment Letters –
All letters of appointment will be issued as per following guidelines.
Levels E1- L9 Head of Human Resources – GM – HR
DMs and above MANAGING DIRECTOR

38
 All appointment Letters will be issued in duplicate and one copy of the letter will be duly
signed by the candidate to be retained in the personal file of the employees.

3.4.5, HR initiatives:
There is a HR initiative called ‘IDEA+’. In these, employees are welcomed to provide
suggestions to improve quality, performance, cost reduction, etc., If their suggestions are
feasible, they are accepted and the others are rejected. A cash award of Rs.50 is given to them as
a token of appreciation. After implementing the suggestions, if they yield a good profit. 10% of
the profit amount is shared with the concerned employee.

3.4.6, Performance Appraisal:

‘Performance Appraisal is an objective assessment of an individual’s performance against
well defined benchmarks’. The performance appraisal method followed is based on the
subordinate relationship, whereby the superiors rate their subordinates.

3.4.7, Training:
Training is an ongoing process aimed at capability building of the employees at all levels.
Training programs are classified into the following categories:
● Skills
● Knowledge
● Behavioral

3.4.8, Workmen capability building:

Training and development for unionized employees at the manufacturing units is focused
on skills programs like ‘personal touch’ to address interpersonal related issues.
Employee retention/ Incentive plans:

Company has an annual appraisal system in place and pursuant to this system,
performance linked pay, annual variable pay and/or commission is paid to the employees.

39
The performance of the employees is classified into namely:
A. Extremely High performer
B. High performer
C. Good performer and
D. Performer

3.4.9, Trade union:

The company has one registered union being the Titan employee union (“union”), which
is registered or affiliated with any political party or other organization.

3.4.10, Tata code of conduct:

All the employees are bound by the Tata code of conduct under which they are required
to deal on behalf of the company with professionalism, honesty, integrity, as well as high moral
and ethical standards. Such conduct is to be fair and transparent and be perceived.

3.4.11, Manpower and Business Plan:

o Manpower Planning and the requisite budget will be prepared at the end of the financial
year.
o General Manager HR will prepare a manpower budget and get the approval for any new
recruitment from concerned people.

3.4.12, Exit policy:

o Resignation
o Notice period
o Authorized signatory to issue the relieving letter.
o Exit interview.

40
3.4.13, Respecting and valuing employee:
o Fairness
o Improving quality of life
o Human approach
o Empowerment of people
o Partnering
o Encouraging people to innovate.

3.4.14, Creating a positive work culture:

o Non- hierarchical, non-burr a wretch transparent style.
o Consensus based decision making process.
o Performance and merits orientation.

3.4.15, Educational Policy:

College level/ Professional Courses:
1. Full time regular employees may take college – level / professional courses for position
related and career – related purposes, including study for a professional degree.
2. For an employee to take advance of this privilege, his / her course of study must be:
3. Approved by a Department / Unit head and Human Resource Department
4. Related to the employee’s current position or part of an approved career – related
program.

Two increments for additional qualification-

‘E’ Level:
Effective 01.04.1996, it has been decided to grant two additional increments in their
respective grades to those ‘E’ level employees who satisfy any one of the following conditions:

a) Those employees possessing additional technical qualifications from Government

recognized it is, or Diploma in Engineering (3 years) course from recognized

41
 polytechnics or Graduation from a recognized University. Certificate courses will not
qualify for grant of the additional increments.
b) Those employees who have been recruited into the Company initially on a contractual
basis and who have been placed in regular grades after the initial contractual period.

3.4.16, Quality Committee:

Quality Committee plays an important role in implementing the various quality concepts
and improvement schemes, which form part of the world – class Manufacturing concepts

3.4.17, Safety Committee:

The Safety Committee takes care of the employee’s safety in their workplace. It also
ensures the fulfillment of various requirements under factories act.

3.4.18, Canteen Committee:

Canteen Committee is a statutory compliance under the factories act and plays a vital role
in the quality of food and also helps in fixing the menu of the canteen on a monthly basis.

3.4.19, Payroll Month:

Normally attendance will be closed on the 14th of every month. Accordingly the salary
will be calculated based on the attendance for the period 15th of previous month to 14th of the
current month.

3.4.20, Salary Payments:

Payroll department is responsible for handling salaries. The HR Department shall
intimate to the payroll Department, every month details – regarding new joinees, resignation,
retirement, loss of pay, leave etc.,
Training and Development Policy:

Responsibility : All Training Centers

42
Applicability : All Regions

3.4.21, Employee Training & Development:

A. General Provision:
i. It is the company’s policy to provide appropriate learning opportunities to assist
employees in gaining job – related skills and knowledge that will contribute to
improved performance and career development.
ii. All training educational programs will be coordinated through the Human Resource
Department.

B. Development Planning:
i. The Human Resource Department. In consultation with managers and supervisors
will ascertain group and / or individual training needs. Every employee is eligible to
request as formal development plan which is realistic, job related and upon
completion would result in greater employee capability

3.4.22, Training Centre:

The company has a full – fledged and well equipped training Centre at Hosur, which is
used for conducting in-house programs.
The training programs are conducted in two-ways:

⮚ In-house using internal facility

⮚ Customized programs using external faculty.

E-Level Employees:
The training needs for the E level employees are arrived at keeping in mind the
Individual, Departmental and organizational needs.

43
 Since the current focus of the entire organization is on World Class Manufacturing
(WCM) the individual needs are also aligned to the organizational goal and both Technical and
Behavioral inputs are provided in the key areas.

L-Level Employees:
The Individual training and developmental needs of the employees, spread over the
various locations, are identified based on the developmental plan drawn by the employees/
superiors in the performance appraisal forms. The departmental needs are identified through the
department head. The organizational needs are identified from the Business Plan.

Training Calendar
The training needs are consolidated at the beginning of the financial year and a training
calendar is designed. The calendar provides the information regarding the dates of the various
programmes, the time duration, the faculty (internal or external) and it is circulated to all the
departments. Nominations for the respective training programmes are received from the
department heads well in advance and the program is organized accordingly.

Induction Program:
All new entrants to the company will be required to go through an Induction program to
acquaint him / her with TITAN. This would vary from one week to three weeks at TRAINING
CENTRE, depending on the position for which the new employee is recruited.

44
 3.5, MARKETING MANAGEMENT

3.5.1, INTRODUCTION
Titan’s watch segment is India's chief producer of watches and ranks fifth in the world in
production of watches.
Company really understands the psyche of the consumer and they offer quality products
in classical design with superior technology.
Today the company has a model for every price segment and every market. Basically it
deals with three target market
● High income group
● Middle income group, and
● Lower income group

Titan alone holds 60% market share in domestic level whereas 60% in organized market.

45
 Our Marketing Objective is to increase Market Share of the company by 5% in the
coming year as well as to increase the profitability of the company by 10%.
The competitors 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 companies. To
achieve this, companies have to follow the marketing strategies, which basically include the
marketing mix.
The marketing strategies basically include the 4 ps .
There the marketer has to focus at first on PRICE ,which basically for The titan is not
affordable in the Mid –Segment.
We also have to implement this type of innovation to bring flexibility in our product.
As it is also important to do some creativity in advertisement by showing the importance of Time
to the masses. The Company brand promoter is Amir Khan but the company can make it
attractive by endorsing Katrina Kaif .
The place can be taken into consideration ,as it is needed for the company to open some
showrooms in the rural area and as the company don/t have so much market share in the
foreign market ,so to expand the business the company should launch its showroom all over the
globe in greater numbers.
Market share of the competitor in domestic market

HMT 17%
Maxima 13%
Rado 7%
Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan provides
watches for all segments, from low-cost Sonata for first time users, 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

46
scenario. The key success story of Titan is capturing the rural market on a large scale. The range
costs are between Rs. 495 to Rs. 1200. And the model is available exclusively in all showrooms
and is sold mainly in small-town India.
Though the company faced enormous challenges from its big list of competitors, the
company is still in the number one position in the domestic market because of the weakness of
the competitor.

The company becomes more reliable and more accepting to the consumer because of its
marketing mix. The company has adopted the new marketing innovation to improve the features
of the product from time to time.
Though the current financial environment is not in favor, the company performed well
and saw an increasing trend in the profit chart.
The company is trying hard to convert its weaknesses into strengths and threats into
strengths and threats into opportunities by bringing revolution in the product style, model,
features, pricing policy, product quality, etc.
Certain initiatives and policies such as new innovative design, guarantee, the research and
development, wide dealer network, committed service team, discount and offers make the
company.

When we talk about the “wristwatch brand”, remember the only Indian wristwatch
market was so shabby, one more ordinary than other and when the craze for “imported watch”
was not implemented. That was before the time of titan, a name which brought the revolution in
the Indian wristwatch market.

Titan wrist watch brand is part of the titan industry, which was launched in 1987 by
TATA group. TATA group had identified the watch category as a potential consumer market for
the TATA’s to enter.

Xerxes Desai, a TATA veteran and the MD of TATA Press was elected to that business.

47
 By offering quality products and classic design with advanced technology to the
consumers, Titan made a success story. Outstanding services, wide variety of models and
effective marketing helped Titan to capture the market in its born stage.

The reason behind the success of Titan watches was their research on the Indian
consumer psychological mind. The company today has a model for every price segment and
every market, urban and rural, regional and international.

Titan brought quartz technology first in the Indian market and acquired first place by
displacing HMT into second place, who offers mechanically driven wristwatches.
It also brought a sense of style and design, which was only available in the West or in Japan at
that point of time.

3.5.2, ENVIRONMENTAL ANALYSIS

The marketing environment.

❖ Competitive Forces
Competitor

There are lots of competitors in the wrist watch segment which directly or indirectly affect the
titan watches industry. The major players’ are-
⮚ Domestic Level:
● HMT
● Maxima-quartz
● Rado

48
 ● Casio
⮚ International level:
● Esprit
● Swatch
● Citizen
● Tag heuer
● Seiko
● Cartier
● Giordano
⮚ Fashion Houses:
● Dkny
● Gucci
● Adidas
● Nike
● Bvlgari

3.5.3, Purchasing power of consumers

BRAND CATEGORY

FAST TRACK YOUTH

EXACTA,SONATA, TITAN LOWER MIDDLE CLASS(Office wear)

SPECTRA COMMON CLASS

ROYAL UPPER- MIDDLE CLASS
RAGA UPPER CLASS
BANDHAN COUPLES
REGALIA UPPER MIDDLE CLASS-UPPER CLASS

49
 BUSINESS CLASS
EDGE

The company’s watch sales grew by 18.8 percent and its income increased from Rs
255.34 crore during the second quarter of last year to Rs 303.45 crore during the second quarter
of this year.
On the basis of the above table and profit figure we easily understand consumer buying
power in the target market.

3.5.4, Various models of Titan Watches:

Titan Sonata Women Titan Sonata Men

Titan Fastrack Men Titan Fastrack Women

Titan Raga Men Titan Raga Women

50
Titan Regalia Men Titan Regalia Women

Titan Steel Men Titan Edge

Titan Xylys Women Titan Nebula

Titan Xylys Men Titan Xylys Women

51
 Taj Heritage Titan Steel

Titan Regalia Titan Ladies Watch

Titan Sonata Ladies Titan Sonata

3.5.5, Marketing Mix:

● PRODUCT
● PRICE
● PLACE
● PROMOTION

52
1.Product: Quality and leadership are the two main terms for the Titan. As to achieve the
marketing objectives these aspects should also be considered.

A. Product line: To increase the sales, the difference in the prices of the watches are justified by
the features.
B. Product pyramid: Portfolio of Titan’s product is of 3 distinct price-ranges that can be
defined in general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on
volumes but not in margins. At the premium segment, the emphasis is on profits and image but
not in volumes. Obviously, companies give more emphasis at the top of the pyramid as profits at
the top of the pyramid are very high. This pyramid guided the strategy of Titan.
C. Product strategy: Titan was first focused only on the premium segment of the watch market.
As per the product strategy they took, Titan moved into the mass market for watches. To widen
its base, Titan created new segments and increasingly focused on segments individually. In the
past few years Titan has taken a lot of initiatives to focus on specific segments.
D. Product Quality: Quality and leadership are synonymous to Titan. It seeks to achieve both
through their value for products compared to their prices.

2.Price: As we achieve our marketing objectives, we can do some change in the pricing .
The main consideration will be in changing the price are the following.
A. Survival:
In case of some of the watches titan prices them according to the features .The Exacta is a simple
steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga through
pricing policy.

B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore by pricing
Sonata at 350 onwards with guarantee.
Titan prices its world watches comparable to international players like Calvin Klien where a
customer pays 4 times the value of the world watch, therefore markets with low prices to
international players to gain market share.

53
C. Market Skimming: In the Indian watch industry there is no one offering pure gold watches,
watches in pairs, jewelry watches. Here Titan offers their product with the Indian touch in its
design, the product, the love.

3.Place: Keeping in mind the young trendy and fashionable consumers, Titan distributed its
product and set up ‘world of titan’ in different regions. The consumer's lifestyle in India,
especially in urban areas(because the turnover in urban areas is 210 million, while the turnover in
rural areas is 90 million) plays a significant role in the success of Titan.
A. Time Zone: Titan Industries brings together the country’s leading watch brands under one
roof, providing the customer with variety in brands, looks and price ranges and also efficient
after-sales service. These 1142 Time Zones are located across 89 towns which offer its customers
the complete watch shopping experience.
B. Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. By doing
this it offers fabulous value for money with the same warranty as a regular full-priced watch.
However these shops would not be placed in the main locations and not work as normal shops.
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. Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata & Titan brands.
Sonata stores meet the large-scale demand for the watch and also to attract customers in more.
These shops had full stocks of the watch in demand whereas the others could afford to maintain
only limited stock.

Marketing Implementations:
Marketing plan basically implemented on the basis of market segmentation .
We have gone through the target market segment which basically include
⮚ High income class
⮚ Middle income class

54
 ⮚ Lower income class

The marketing mix is the part of marketing strategies ,which help to the company to match the
needs of the consumer as well as the need of company, because we know that “MARKETING
IS THE SOCIETAL PROCESS WHICH HELP IN FULFILLMENT OF THE NEED
,DEMAND OF THE CONSUMER AT A PROFIT”.
Implementation is an integral part of strategy. It makes sense when it is implemented into the
Indian jewelry market it saw an opportunity for an organized sector. The customer was moving
towards branded goods in other segments. Titan did the process of creating brands in the minds
of customers.
4. Promotion:
Promotional pricing:
A. 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.

Promotion:
Marketing pricing:
in this category buys watches for 17-18% lesser than MRP and hence they are able to get the
17% profit margin on sales.
It is managing to successfully convince the customer of the perceived value of ‘WORLD
WATCH’ using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the MRP
of the watches. The allowances vary from one segment to another.
Creative advertising: Titan introduces a contest on cartoon network india.com which invites
children to use creativity and design watches.

The prize winning design was launched as a new watch in the summer 2002 collection .
Type of advertising: Titan believes in making its ads clean, well made, and touches on
emotional chords. As the company is using celebrities or superstars that is Amir Khan for the
Titan watches.

55
As here we can say that a female actress would be more effective for the promotional purpose. It
can be Katrina Kaif, as now she is one of the popular actresses in Bollywood.
A. Promotion on occasion: Titan is one of the companies which formally believes in the
policy of promoting the product based on the occasions.

3.5.6 Branding and advertising:

Advertising, sales promotions and visual merchandising are essential for marketing consumer
durable products like watches. The company handles advertising at the national and regional
levels. This includes national advertising in press and TV and producing and distributing point of
sale material like posters. They use celebrity endorsements to increase the visibility of their
brands. Each celebrity endorser is carefully picked, keeping in mind their status in the market
and its reflection on brands.
For fastrack sunglasses they have signed up with Bollywood celebrity John Abraham for
promoting sunglasses amongst the young audience. For titan watches they have signed with
Amir Khan to promote multiple ownership of watches.

Quality Assurance:
The time products division received ISO 14001-1996 accreditation in March 2002.
Titan derives its main strength from its Sales and Marketing team. The detailed list of the sales
and other distribution networks is given below.

Titan has categorized the demand of watches to attract various sections of the society.
Their marketing teams were able to break the myth of the society that Watch is just a piece of
valuable to a fashion accessory. Watch for an occasion was their motto. Initially the presence
was felt only in urban society. Later they penetrated the rural section by introducing a range for
the likes of the rural section. Currently Titan has watches for every occasion and for a variety of
price range starting from Rs. 250 to Rs. 1,80,000/-.

CHAPTER-4

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 4. LEARNING FROM INTERNSHIP TRAINING:

⮚ The Plant layout is well designed to facilitate the workers in their work.

⮚ The inter relationship between the departments are good.

⮚ Welfare facilities provided are very good.

⮚ They are maintaining relationships with employers and employees.

⮚ They conduct the training programs very effectively for employees.

⮚ They have very good canteen facilities.

⮚ The Infrastructure is very good for working conditions.

⮚ CSR activities well done by Titan Company.

⮚ They are maintaining good customer relationships.

4.1, SWOT Analysis

A. Strength:
1. Style: Titan first introduced the ‘style’ concept in India and projected the watch as a
fashion accessory. Now a day’s style is a very much evident factor among the youth. And
there is a craze for stylish wristwatch. So, Titan makes people's lives more glorious by
making stylish wristwatches.

2. Models: As Titan offers the best and the biggest range to customers to choose the watch
of their choice with an affordable price.

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 It offers about 14 different names with about 1000plus different varieties with a watch for
literally everyone.
3. Exclusive products: Today Titan holds the pride to say that its products both within the
country and internationally are in a battle position. Its EDGE is the slimmest watch in the
world.
Other than these there have few more strength like-

4. Contribution of owned brands and retail. The profit is accounted for by being in the retail
space which is booming.
5. Watches are available with popular functions like dates, multifunction and chronograph.
6. Guarantee/warranty

B.Weaknesses

1. Pricing: the average price of Titan in the mid-price segment is very high than the other
competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the
mid-price segment the company is not performing up to the mark due to the lack of
choice of consumers.
2. Market share: As the average price of Titan wrist watch is far more than the other
competitor, Titan has less market share. The market is more demonstrated by middle
class people and for them Titan is quite costly. Among 75% market share in the
mid-segment. Titan market share is between 18-20% which is far lower than HMT and
Maxima.
3. Globalized: As the company is Indian based which leads it to the strength, whereas it is
the weakness also because the company is not sufficiently globalized.

C.Opportunities

1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan
because there is demand for the products.

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 - Gold watches and pairs are like a wedding occasion.
-The fast track brand is promoted in the month of June-August when schools and
colleges reopen.

2. Gifting concept: Titan started as a brand which was associated with gifting and relation.
The fight concept sells well for people who have come to associate Titan with love and
care and makes emotion run high.

3. Exchanging offer: The Titan stores exchange offers of any old watch, of any make, in any
condition functional or otherwise and receive a flat discount of 25% on their purchase of
a brand new, stylish and technologically advanced watch from Titan.

D. Threats
1. Competitor: As we know lots of Foreign brands are entering our country with their
branded watches. As the removal of quantitative restrictions on import watches leads to threat to
titan.
2. Premium segment: As in premium segment Titan is getting threats from reputed
international brands such as Esprit, Swatch and Citizen.
3. Mobile: Nowadays people can get the time and other features in mobile phones. So, the
need for wristwatches is decreasing. People can talk and see the time in a cell phone and some
people think that there is no need for a wristwatch.

4.2, PEST ANALYSIS OF TITAN INDUSTRY:

We need to understand the complete competitive landscape – things like

economic trends, technology and other factors impacting our organization. One of the
more popular analytical models for environmental assessment is PEST:

Political – Understanding the political environment. For example, politicians can create
new issues for a company, such as new reporting requirements for publicly traded

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companies per passage of the Sarbanes-Oxley Act.
Economic – Changes in the economy will impact a company, such as lower investment
rates, higher interest rates, slower economic growth, and changes in consumer
spending.
Social – Trends in demographics, population shifts, lifestyles, and other changes in
Society can influence an organization.
Technology – Sudden changes can occur with new technologies, especially for those
companies that depend upon technology for producing and distributing products and services.

4.3, FINDINGS

❖ Overlapping of sub brands

❖ Competitors entering mid price market range (RS 1500-3500)

❖ Stiff competition in the premium segment market by international players.

❖ Premium segment markets are the only revenue generating market.

❖ Failure of launch in European market.

❖ How to create a global brand identity like TOMMY, ESPRIT etc.

SUGGESTIONS

● The company should earmark more money for the advertisement and sales promotion of
its products. It helps to increase brand awareness and image.

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 ● The company should concentrate on markets in the international arena where its
competitors are less powerful.

● Complaints should be rectified in the shortest possible time. For this a customer
satisfaction cell should be organized.

CHAPTER-5

5.1, CONCLUSION

⮚ Titan is the world's Fifth largest manufacturer of watches. It has achieved this position by

its wonderful marketing strategies.

⮚ From time to time, it has been involved in STP analysis to sustain its brand image and

growth rate and also to become the leader in the Indian watch market.

⮚ The product range varies from Rs.275 to Rs. 1,75,000 covering all the economy and super

premium segments.

⮚ In addition to giving a tough competition to various Local brands in India, it is also a

strong competitor of various leading International watch makers.

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 ⮚ Titan has over 60 per cent of the domestic market share in the organized watch market.

⮚ Its exclusive retail showroom chain – World of Titan – is amongst the largest in its

category.

⮚ Titan watches are sold through over 9,000 outlets in over 2,300 cities and internationally

in over 30 countries including the Middle East and Asia Pacific.

Its after sales service is itself a benchmarked operation with a network of over 616 service
centers and has one of the world’s fastest turnaround times.

Bibliography

● S. P. RAO, Human Resource Management, Edition 2002

● PHILIP KOTLER, Principles of Marketing, Edition 2005

● M. PANDEY, Financial Management, Edition 2006

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 http://www.titanworld.com/titan_stories

http://www.tata.com/

http:// en.wikipedia.org/wiki/Titan_Industries

http://www.moneycontrol.com/stocks/company_info/company_history.php?sc_did=TI01

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