Ca se s tudy |
Case 7: Titan Industries Ltd: Providing Real-Value to
Customers
Introduction
Titan Industries Ltd, India’s leading watch manufacturer was es-
tablished in 1984, as a joint venture between the Tata Group and
the Tamil Nadu Industrial Development Corporation (TIDCO). The
company brought about a paradigm shift in the Indian watch market,
offering quartz technology with international styling. Leveraging its
understanding of different segments in the watch market, it launched
a second brand, Sonata, as a value brand to those seeking to buy
functionally-styled watches at affordable prices.1
Diversification
In India, gold is used as an ornament as well as an investment. The
inherent demand for gold from Indian households has made it a huge
industry today.2
Titan diversified into jewellery in 1995 under the brand name Tan-
ishq after taking stock of the huge opportunities and the large size of
the jewellery business in India.
In 2005, in order to capture the market in small towns and rural India,
the company launched its second jewellery brand; Gold Plus.1 Tan-
ishq has established some new rules in the jewellery market over the
last ten years. It has set a benchmark for quality in a market rampant
with unethical practices, and also introduced the concept of profes-

sional retailing through a national network in a disorganized bazaar.
The company also focuses on fashion and style in a tradition bound
category. Over the last 10 years, the brand has consistently delivered
real-value to its customers in product quality, retail experience, and
consumer aspiration.2 After its success in the gold business, the com-
pany has diversified into the optics business by launching a chain of
optical stores. The “World of Titan” exclusive showrooms have also
been hugely successful.
6 Million 50,000, what is the probability of obtaining sales greater
Success Through Rebranding
Titan Industries set a milestone during 2006–2007, by crossing the
Rs 20,000 million mark by obtaining a sales income of Rs 21,360
million. This is a growth of 44% from the previous year with profit
after taxes growing to Rs 943.3 million as compared to Rs 745.5
million in the previous year.3 In order to maintain this growth, Titan
has decided to go in for a rebranding exercise for its watch brands.
The company has already decided to invest Rs 150 million for the
next two years. Ogilvy & Mather, the advertising agency in charge of
the campaign has roped in Aamir Khan to launch the new campaign.
Mr Piyush Pandey, Chairman, Ogilvy India stated, “Titan has been a
restless brand, be it in design or its advertising. The challenging part
for us was to capture every thing that the brand represents and show
it in a way that is easily understood, engaging and entertaining.”4
1. Suppose Titan Sonata has launched a new watch. The retail
price of this product varies from Rs 920 to Rs 950 in various
X
Uniform Distribution Question
X
showrooms of the country. If a price is randomly selected,
what is the probability that it will fall between Rs 930 and
Rs 940. What is the average price, standard deviation and,
variance of the distribution?
2. Suppose Titan has launched new jewellery designs under the
Tanishq brand for working Indian women. Past record indi-
cates that the mean sales of this brand from various show
rooms located across various towns is Rs 20 million. If the dis-
tribution of sales is normal with standard deviation of Rs
than Rs 35 milion this year? What is the probability of
generating sales between Rs 15 to Rs 25 million? What is
the probability of generating sales between Rs 15 million and
Rs 18 million?
3. In a busy Titan showroom, suppose the arrival of customers is
Poisson distributed with an average arrival rate of 10.2 per
minute.
(a) What is the probability that at least 25 minutes will elapse
between arrivals?
(b) What is the probability that at least 12 minutes will elapse
between arrivals?
(c) What is the probability that at least 6 minutes will elapse
between arrivals?
(d) What is the probability that at least 1 minute will elapse
between arrivals? X
Exponential Distribution Question