Beruflich Dokumente
Kultur Dokumente
Titan Industries
International
Academy
of Renu R
Management PGPM/0911/039
& 2009-2011
Entrepreneurship
Titan Industries
Nature of the Business
Turnover
The company currently has its 281 "World of Titan" stores across 123 cities.
35 per cent of the group's turnover of Rs 3,500 crore came from its watches
business.
The company was growing at a rate of 17 per cent every year.
Titan Industries reported a turnover of Rs 3,847.72 crore.
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Senior Management
Managing Director
Bhaskar Bhat assumed the position of Managing Director of Titan
Industries on 1st April 2002.
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History
Titan, a Tata group company entered the watch market in 1987. Since
then it has developed into one of the most recognized brands in India.
Back in the early eighties, the Tata Group had identified the watch
category as a potential consumer market for the Tatas to enter. Xerxes
Desai, a Tata veteran and the then MD of Tata Press, was chosen to lead
that venture.
The watch shops were narrow, dingy and typically located in the older,
traditional markets of the city. You went there only to buy a watch, never
to browse, never to simply check out. Visual merchandising was very
much at the stage of "decoration" if any, and neither the brands nor the
retailers saw it as important. The companies themselves did not have
much contact with retailers, preferring to sell through wholesalers, doing
well that way. There was hardly any need for consumer contact or
research. It was a sellers' market.
Today, in early 21st century India, it is taken for granted that a watch is a
fashion accessory. Titan dominates the market, with a 60% share of the
organised sector market (the total market, including the unorganised
sector, is estimated at around 42 million units). Titan's quality record is
impressive, its sales and service network is wide and deep, and its
network of exclusive showrooms, The World of Titan, is one of the most
prestigious and visible retail brands in the country, offering world-class
levels of shopping comfort and customer service.
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Strategy and Initiatives
Our Mission:
To create wealth for all our stakeholders by building highly successful
businesses based on a customer-centric approach, and to contribute to
the community.
Employee appreciation
- We value and respect Titanians and endeavour to fulfill their needs
and aspirations.
Corporate Citizenship
- We ensure that a part of our resources is invested in environment
and community betterment.
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Merger and Acquisition
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 11 million watches every year.
Changes it made
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worked with titanium, which is the hardest yet lightest metal. This
thickness is something nobody‟s ever done before.”
Responsible for all this is the Titan Design Studio and Innovedge, a
technology group created by the company early last year that continually
churns out ideas and innovations for other SBUs and divisions.
Rome however wasn‟t built in a day and it took two decades of contrarian
leadership to hammer in a culture of risk taking. When Titan entered the
watch market in 1986, it chose to collaborate with the French and not
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with Japanese or Swiss, two countries globally known for watch
manufacturing expertise. And instead of gunning for large volumes to
take on the market leader HMT in mechanical watches, Titan decided to
transform the market itself. For the first time in India, the company used
quartz as a technology base for its watches and offered international
designs to carve a contemporary image. Similarly, in its manpower
hiring strategy, Titan‟s threw all caution to the wind. Instead of hiring
technically trained manpower from the ITIs and poaching experienced
hands from rival camps, Titan hired young villagers in and around Hosur
district, who knew nothing about watches.
Quartz had not really taken off in India. Titan would go against that and
build its line based on quartz. Accuracy would become a selling-plank.
Titan saw this as a vital investment. Right from Day 1, Titan invested
significantly in advertising and in that process created a set of
memorable and effective properties over the years.
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Market Development And Segmentation
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, colourful, 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 1994, it was psi 2000, rugged, sporty and very masculine watches with
serious sports features (200-m mater resistance, high precision
chronographs) for those with the penchant for adventure.
In 1996, it was Dash, the cute and colourful 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 2001, it was Steel, the smart and contemporary collection for the
young 21st century executive.
And in 2008, the brand has collections like the Octane, Diva, WWF and
Zoop - each of them unique and fascinating.
Titan’s R&D
Titan also chose to invest heavily into showcasing all this innovation to
the consumer through advertising. From Day 1, the 'catalogue"
advertising of Titan became its trademark as it was used regularly and
effectively to merchandise new models. The catalogue ads also helped
customers to shop off the page and almost decide which model they
wanted to pick. Retailers also became used to seeing customers walking
into shops with newspaper "cuttings", asking for the models shown
there. This approach continues to this day, with mostly the same effect.
Organised retailing did not exist in the late eighties. The concept of
exclusive brand stores was almost non-existent. In a pioneering effort
that dramatically altered industry standards, the World of Titan was
born. Located in the newer parts of a city, with a good frontage and
layout, the showroom immediately stood out on the street and attracted
walk-ins. Once inside, you were totally impressed with the presentation.
You walked along the wall, where recessed "mood windows" showcased
specific collections in the appropriate context with the help of visuals,
decorative props and word (the place looked almost like an art gallery).
You could get a better idea about that collection through such a
contextual presentation and could make up your mind which collection
was right for your requirement. Then you would walk along to the selling
area, where the entire range was displayed in style. Smart and helpful
salespeople waited on you there and helped you choose the best piece by
giving you information and suggestions. You walked away overwhelmed.
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This experience now has over 255 branches and has penetrated the width
and breadth of India. Helping the brand increase sales, increase price
premium, sell the more expensive watches, improve image, keep
competition at bay and keep the brand name salient on the high streets
of the country. Refurbished with a contemporary look in 2001, this chain
has become even more integral to the brand's destiny today.
Doing all this in style has earned Titan enormous goodwill and respect.
Titan was voted the Most Admired Brand (across categories) in India by
consumers, in the first such study by Brand Equity done in 2001. Titan
was voted the Most Admired Consumer Durables Marketer by industry
professionals, 8 out of 9 times (the ninth time it was No 2), in A & M's
annual survey done between 1992 and 1999. Titan was voted the Most
Respected Consumer Durables Company in a Business World Survey in
2003. Consumers and professionals alike have resonated equally to
Titan's successful efforts in bringing international standards to India.
And in 2008, it emerges as the 24th Most Admired Brand in the ET Most
Admired Brands survey done annually, it was also the most admired
Consumer Durable brand.
Titan has also done the seemingly impossible reverse thing: taking
Indian quality to international markets. Since starting export operations
in a small scale to the Middle East in the early nineties to exploit the
resident NRI population, Titan has come a long way. Moving into the
European market in the mid-nineties and Asia Pacific in the late
nineties, Titan today sells in the UK, Spain, Portugal, Greece, Singapore,
Dubai, Malaysia, Oman, Philippines and many more countries. The
customers are no longer only NRIs. They are the Thais, the Greeks, the
Arabs, the Filipinos - through a combination of Contemporary Style,
Great Quality and Great Prices, Titan has put together an irresistible
proposition for the people of these countries. With over 100 million
satisfied consumers and a track record of breaking the rules, Team Titan
faces the 21st Century with a mix of passion, excitement and energy.
The Time Products division is where the Titan story began. Today, this
division has placed Titan Industries among the world‟s largest retail
networks and earned the company the place of fifth largest integrated
watch manufacturer in the world. With over 2350 employees spread
over 3 business units in Bangalore, India, a manufacturing unit at Hosur
and 3 assembly plants located in the north of India, the division
continues to add world-class brands to the company‟s portfolio.
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Outstanding brands - Our customers have been at the core of this
growth and the division offers a slew of products that cater to their
inherent needs. Some of the most notable brands in the division‟s
portfolio are:
Titan Edge - the world's slimmest watch (at 3.45mm) that epitomizes
the philosophy „less is more‟.
Nebula - watches crafted with solid 18k gold and precious stones
Sonata - India's largest selling watch brand to suite the common man's
wallet
The brand Titan enjoys a 60% market share in the organised watch
market in India.
Market Structure
Market share –
TIL at 20% in volume terms and 25% in value terms
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The “Titan” brand commands >50% organized value market share
“Sonata” is the only brand with double digit market share – 18% in
the mass-economy segment
Timely performance
TIL‟s ideology of innovation and buyer value has led to Titan becoming
the world‟s sixth largest, integrated watch manufacturer brand and
India‟s largest with an organized market share of >50%
Wide range: TIL produces over 2,000 designs and
a record 116 new products were launched in the
portfolio in FY06
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Reach: “World of Titan” with 180 stores located in
106 cities (includes presence in 10 Malls)
SWOT Analysis
STRENGTHS
Largest player with excellent brand presence
Attractive pricing power for urban and semi urban segment.
WEAKNESS
Lower emphasis on growing affluent class –now being addressed
through Xylys
OPPORTUNITY
Low Penetration - 3%
ITC e-choupal tie-up can lead to further rural market. penetration
with its Rs.500 range
THREATS
Imports and global brands to saturate mid & premium category
Unorganized players are now localizing to unleash own brands
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Company Financials
Income Statement
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Key ratios
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The 2010 Vision
Rs.33bn revenue by 2010
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