Backdrop

• 1998-99 - An uneventful year, much like the

previous one
• Consumers continuing to be value conscious
• Many companies have seen low turnover
growth but have managed costs splly.interest
better
• 1999 seems to have opened on a more
confident note
 The Watch Market
( Source: Retail Audit)

• The watch market declined by 4%

• Titan grew by 6%
• HMT Q up by 18%
• Both Titan and HMT Q gained at the
cost of Timex which dropped by 28%
• Westar withdrew from the market
• Citizen launched in Oct ‘98- not upto
trade’s expectations
• Maxima continued blietzkrig
Estimated Primary sales 98-99

(in lakhs)
1998-99 1997-98

Titan 47 39.5
Timex 13 17.5
Hmt Q 6 5
Others * 14 13
Total 80 75
Includes Maxima, Bentex, Westar, Citizen
 Sales Trends
1000
• Graphs
800
Primary
600
Trade
400
Stock
200

0
Retail Sales Trends
4.5

3.5 Ad
Spends(cr)
3
Ret Sales (l)
2.5

2 Grow th

1.5
Trade Stk
1

0.5

0
ug
n

ct

b
pr

c
Ju

Fe
De
O
A

A
Performance by Product Clusters

Ytd Feb’99 Ytd Feb’98 Grt

( Trade Prim. 000 nos. )
Titan 1631 1749 -7%
Sonata-M 1345 1024
31%
Plastics 374
 Product Clusters ( contd..)
• High Performers
– Ladies Raga (41%)
– Gents Insignia (25%)
– Ladies Regalia (10%)
• Low Performers
– Gents Classique (-17%)
– Gents Exacta (-13%)
 Performance by Price Bands
Price Band Cont98 Cont99 (Grth)
< Rs. 1000 44% 54% 50%
Rs.1000 - 1501 37% 32% 3%
Rs.1501 - 2000 12% 7% 28%
Rs.2001 - 3000 5% 5% 17%
Rs.3001 - 5000 1% 1% 9%
> Rs. 5000 <1% <1% 7%
 Performance by Markets
(lakh nos.)
REGION YFeb98 YFeb99 Grth

EAST 545.2 674.2 (24%)

NORTH 737.4 835.5 (13%)

...contd.
 Performance by Markets
(lakh nos.)
REGION YFeb98 YFeb99 (Grth)

SOUTH847.1 1077.0 (27%)

WEST 643.0 772.7
( 20%)
TOTAL 2772.7 3359.5
(21%)
 Markets (contd..)
• High Performers
– MP ( 43%)
– Kerala (41%)
– TN ( 34%)
– WB (27%)
– AP (25%)
 Markets
• Low Performers
– Maharashtra (15%)
– Karnataka (16%)
– Rajasthan, Punjab, Haryana,JK (6%)
Performance by Channels
Grt Contrn Contrn
98-99 97-98
Shrm 36% 20% 18%
TZ 25% 7% 7%
MBO 16% 58% 60%
Ins -3% 9% 10%
CSD 61% 6% 5%
 Brand Spends on Advertising
• Titan : 6.26 crores
• Sonata : 2.00 crores
• Maxima : 5.83 crores
• Timex : 4.87 crores
• HMT : 3.26 crores
• Citizen : 1.17 crores
• The Swiss: 3.92 crores

• Watch Category : 34.06 crores

( Ytd Dec )
 S& M Plans : 98-99
• Ambitious retail sales growth target of
25%
• Significant growth at low end
• Introduction of plastic watches
• New product introductions at middle and
high end
... contd..
 S& M Plans : 98-99
• Two brand strategy
• Focus on retailing and dealer loyalty
• Reorganising sales force and logistics
• Improved customer service
• Cost control
 Achievements : 98-99
• Ytd Jan retail sales grt : 20%, Feb very
encouraging
• Sonata growth 68%
• Plastics : Estimated primary 4.5 L in trade
– High institutions
• Titan & Sonata working wonders
• Fastrack & Raga doing well
 Achievements : 98-99

• Retailing : 9 WOT and 12 TZ

• Dealer loyalty programmes commenced
• Sales force reorganised
• TAT reduced from 7 days to 4 days for 95%
• Cost reduction thro’ AOR, CFA
rationalisation & inventory management
Expected competitive scenario
• HMT’s watch division with cash influx could
get more aggressive
• Citizen will get its act together
• Timex will claw back into the market
• Maxima and Classic will continue to mature
into “brands”
• The Swiss will develop the high end but may
also make inroads with Tissot and Swatch (?)
 Significant plans

• A resurgent Titan
• Continued growth in Sonata
• Restructuring the clock business
• Greater focus on distribution and micro
markets
• Rural marketing initiative
• Supply chain management
 Sales Plan : 99-2000
• Est Retail 98-99 38.00 L
• Less : Plastics 3.5 L
• Est Metal Retail 98-99 34.5 L
• Tgt Grt 18% 6.25 L
• Est Metal Sales 99-00 40.75 L
• Est Sonata Plastics 7.5 L
• “Dash” Sales Plan 1.0 L
• Total Trade 99-00 49.25 L
• Ins + CSD 6.5 L
• Total Domestic55.75 L
 Plan - Watches and Clocks
(Rs. In Crores)
(BRC) Watches Clocks

Volumes 55.75 L (50.00L) 4.19 L (8.20L)

UCP 563 (540) 18.39
(23.43)
Discount 21% (22%) 21% (22.66%)
Ad Budgets 25 (25) 3 (3)
 Expected Volumes 1999-2000
Volume (lakhs) % of share

Titan 56 58
Timex 15 15.5
HMT 8 8
Citizen 2 2
Others 16 16.5
----- -------
97 100
----- --------
 Concerns

• Continued decline in brand visibility

• High trade stock
• Costs
• Recruiting and retaining people
• Time management