Titan Watches- Redefining Time : Titan Watches- Redefining Time Presented by Amar Sharma Arjit Mathur Md.

Atif Farhan Rakesh Kumar Rajeev Kumar Vaibhav Khante

The Watch Industry : The Watch Industry 1950s 1950-70s 1970-80s 1980s-till date

Indian Watch Industry : Indian Watch Industry 1960-Setting up HMT in collaboration with Japanese Citizen watch company. 1972- License to other companies e.g. Indo-Swiss, Bifora 1980- LED (Light Emitting Diode) watches gained in popularity & Swiss watch industry declined. 1982-Government approved indigenous watch manufacturer to set up establish capacities. 1990-91: Indian watch market size is increased from 16.9 million to 24 million watches. 1992- Recessionary pressure adversely affected the watch industry`s performance. 1999-Removed all quantitative restrictions on the import of fully assembled watches by WTO.

About TITAN : About TITAN Titan Industries is the world's fifth largest and India's leading manufacturer of watches. It has several popular brands in its fold including Heritage, Aviator, Regalia, Octane and WWF The Titan portfolio has over 60% share in the domestic market Share in the organized watch market. To ensure a dominant presence in the market, the company has showrooms in every nook and corner of the country that caters to the needs of every segment of the people.

Company History : Company History 1985 -The company was incorporated on 26th July at Chennai. 1992 -An MOU was signed with Casio computer company of Japan to manufacture 2million digital and Ana-digital watches. 1987 -The company set up a manufacturing facility at Hosur. 1989 -The case plant at Hosur was commissioned. A new range of watches called `Aqura' was launched 1992Over 150 models were introduced. 1993- The name of the Company was changed with effect from 21st Sept. from Titan Watches, Ltd. to Titan Industries Ltd.

Contd. : Contd. 1994- The Company introduced `Tanishq' range of watches. 1996introduced new economy range of watches called Sonata and Tanishq's 2000Titan Industries has announced the launch of Cyber, a range of digital clocks 2005-Titan re-introduces Fastrack range of watches.

CORPORATE INFORMATION : CORPORATE INFORMATION 2002- Mr. Jeyakodi was appointed as a director of the company. 2003-Mr. Jacob Kurien tenders his resignation to the company. 2006-Mr. Harish Bhatt was being appointed as chief operating officer in watches and accessories division. 2007- Mr. Sunil Palliwal was inducted as additional director in the board of the company.

Vision : Vision To be a world-class, innovative and progressive organization and to build Indias most desirable brands.

Mission : 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.

Values and Standards : Values and Standards Total customer orientation Employee appreciation Performance culture and teamwork Creativity and Innovation Passion for excellence Corporate Citizenship

TITANS Businesses : TITANS Businesses Watches Jewellery Precision Engineering Currently Marketing Products in 26 countries with a larger footprint in the Middle East and Asia-Pacific regions Prescription Eyewear

Strategies : Strategies Innovation Quality Creative Advertising Aamir Effect Catalogue Advertising Retail Stores Cutting Edge Technology

Innovation : Innovation Creation of Edge Slimmest commercially available watch in the universe.(thickness: 3.5 mm) Four years of intensive R&D. Produced indigenously. Received Best Design Award in Lifestyle Product Category Organized by Business World.

Quality : Quality Certified under ISO 9001 in Dec.94 ISO 14000 certification in 2002 TS 16949 certification in Feb 05

Creative Advertising : Creative Advertising Aamir Effect Created by TVC. TVC introduced in Oct. 2004. Sales soared exponentially. Catalogue Advertising Used effectively to merchandise new models. Newspaper Cuttings.

Retail Stores : Retail Stores ALL INDIA 10000 Dealers 2300 Towns World Of Titan 177 Showrooms 104 Towns Time Zones 119 Multi-brand-stores 90 Towns Service Centers 616 Centers 314 Towns

Cutting Edge Technology : Cutting Edge Technology The Design Studio: Excellent Watch and Jewellery design. Has international award winning designs to its credit. Sophisticated Design & Development Centre Advanced Pro-E workstations and prototyping facility. Every Ford Mondeo car rolling out of the plant in Genk, Belgium has a Titan Clock.

INTERNATIONAL BUSINESS : INTERNATIONAL BUSINESS One of Indias first companies to market a consumer brand overseas. Now present in 26 countries outside India Among the top 3 brands in some Asian countries Selling 650k watches annually with increasing presence in jewellery. Total export sales of over Rs 100 crores in 2006-07 Ranked No.3 amongst the top Life style Brands in the watches category by Business Today ( Oman) for the third year in a row

THE THREE YEAR JOURNEYINCOME : THE THREE YEAR JOURNEYINCOME

THE THREE YEAR JOURNEY COMPANY PROFITABILITY : THE THREE YEAR JOURNEY COMPANY PROFITABILITY

THE THREE YEAR JOURNEYCAPITAL EMPLOYED : THE THREE YEAR JOURNEYCAPITAL EMPLOYED

Market Capitalization (Rs. in Cr.) : Market Capitalization (Rs. in Cr.) Crossed Billion $

Major Competitors : Major Competitors

External Marketing Environment : External Marketing Environment Competitive factors Technological factors Social factor Economic factors

Slide 29:

Michael Porter Model

Competitive forces : Competitive forces

Marketing Mix (4P`S) : Marketing Mix (4P`S)

Product : Product Product type convenience specialty Segmentation of TITAN Watch Market segmentation Based on user category Competitive prices

Brand profile of TITAN : Brand profile of TITAN Edge Raga Octane Zoop WWF Heritage Orion Nebula Sonata Exacta Titan Bandhan watches Spectra Dash Regalia Fastrack Royale Classique xylus

Product life cycle : Product life cycle Sales Time Introduction : WWF, Orion, Zoop, Diva, Octane Growth: Nebula, Insignia, Raga, Royal, Regalia, Edge etc Maturity: Sonata, Fastrack, Dash Decline: Aqura

Place : Place World of Titan Showrooms Time Zone Traditional Outlets Non Traditional Outlets

Distribution channels : Distribution channels

Slide 37: TITAN PRICING Pricing Objectives Survival (i.e. Titan Exacta) Market share (i.e. Titan Sonata) Market skimming (i.e. Titan Nebula) Product quality Pricing method Product line pricing Promotional pricing Application of pricing strategy Lower segment 1000 plus segment

Slide 38: TITAN Citizen Timex Watch Market Map Rs 500 1000 2000 4000 5000 30,000 + Formal / Classic Fashion/Sporty Sonata, HMT, Maxima Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger Raymond Weil Tissot Omega,Rado, Longines Tag Heuer Hugo Boss C Dior Price Fastrack XYLYS 10000 Nebula

Slide 39: PROMOTION:- Advertising Sales promotion Public relation Advertising media: Television Print Internet Titan brand ambassador: Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Rahul Bose Titan tagline: Be more Fast track tagline: How many you have?

Slide 40: Public relation Gift concept Promotion On Occasions Sales promotion Sponsorship Seasonality Promotion through Contests

SWOT Analysis : SWOT Analysis

STRENGTHS : STRENGTHS Watches as a fashion accessory Quality or price positioning Brand image Market segments with large potential: women, youth, children, sportsmen, the budget-conscious and, of course, the big spenders. Customer value and offered after sales service in a showroom environment.

WEAKNESSES : WEAKNESSES Main USP is low cost watch. Lack of futuristic approach Lack of flexible thinking

OPPORTUNITIES : OPPORTUNITIES Nearly 34 million watches are sold through gray market channels. Currently, sales in India stand at an low number of 25 watches per 1,000 people, compared with 250 watches per 1,000 people in a developed society. Exchanging offer Rural market

THREATS : THREATS Too many players will dilute the market & the profit margin Low priced China watches Mobile phones.

Q: How does Titan plan to succeed in a market segment where bargain prices and cultural associations often outweigh brand cachet? : Q: How does Titan plan to succeed in a market segment where bargain prices and cultural associations often outweigh brand cachet?

Slide 47: They have reason to be confident. The Indian watch market is currently estimated to be around 42 million units, of which only 15 million units are from the organized-retail players Titan leads the pack with a lion's share of around 11 million units across its watch portfolio of four brands: the flagship brand Titan (mid- and premium segments), Sonata (the budget segment), Fast Track (the youth segment) and Xylys (Titan's top-end, Swiss-manufactured brand). "Super Fiber." range is priced below US$10. A Cricket Connection-Mahendra Singh Dhoni hails from the small town of Ranchi.

Conclusion : Conclusion The opening of the Indian market and the arrival of premium Swiss brands has certainly led to Indian consumers being exposed to global brands, styles and various price levels. To the Indian consumers, the high price of Swiss

watches has helped them to realize the value of Indian brands, particularly of Titan, which offers equivalent quality, but at lower prices and with better distribution and service. Titan has shown its differentiation, and customer centric approach which helped them to get the market.

STRENGTHING:Values: Values affect customer behavior in the long run. Marketers can use values and beliefs to segment the markets. TITAN PERSPECTIVE Time has the same value for all irrespective of cast, creed and sex. Still, Titansuccessfully segmented its products according to customer values. But it is basicallyrelated to type of generation they are in to. So, the segmentation is also related to that. BEHAVIORAL SEGMENTATION: Organizations can divide markets on the basis of behavior that consumer shows towards theusage of the products. Various variables for segmenting market on the basis of purchase behavior of customers are occasions, benefits, user status, usage rate, loyalty, etc. Occasions: Markets can be classified on the basis of various occasions that customersencounter because people need different products for different occasions. TITAN PERSPECTIVE Titan also offers occasion specific products like Formal (NEBULLA, STEEL, RAGA,GOLD&STEEL), Dress wear (REGALIA, RAGA, GOLD&STEEL, ROYALE), Fashion(TECHNOLOGY, STEEL, RAGA, GOLD&STEEL, FAST TRACK)

 Benefits: Market is divided on the basis of the benefits customers seek from the products. Benefit segmentation can be used to position various brands within the same product category. TITAN PERSPECTIVE Titan product has benefits like: It provides the TITAN WORLD SERVICE CENTRE in 174 towns. It provides a huge product range to choose from. Its products have good life cycle.

Usage Rate : The usage rate of a particular product/service can be divided into heavy,medium and light. Marketers are usually attracted to heavy users than other type of users. Loyalty Status: The loyalty status of a particular market can be divided into differentgroups, according to the intensity of their loyalty to these brands. MARKET SEGMENTATION PROCEDURE It is a three step procedure: 1.

Service stage: Here the researcher conducts exploratory interviews and focused groupsto gain insights into consumer motivations attitudes and behaviors. Then the researcher prepares a questionnaire and collects data on attributes and their importance ratings, brand awareness and brand ratings, product usage patterns, attitudes towards productcategory and demographics, geographic, psychographics and media graphics of therespondents. 2. Analysis Stage: In this the researcher applies factor analysis to the data to remove highlycorrelated variables then apply cluster analysis to create specific number of maximallydifferent segments. 3. Profiling stage: Here each cluster is profiled according to its distinguishing attitudes, behavior, demographics, psychographics, and media graphics and media patterns. Eachsegment is given a name depending on its dominant characteristics. Market segmentationshould be redone periodically because they change. EF F ECTIVE SEGMENTATION: For effective segmentation, segmentation variables need to exhibit certain characteristics. Theseare discussed below: Measurable: The variable used for the segmentation of the markets should bemeasurable to be effective. For example, a variable like the purchasing power of potential customer is measurable. Substantial: When dividing the market into segments, a marketer should take enoughcare to see that each segment consist of adequate number of customers worth catering to.

Accessible: The segment of the market that a marketer is trying to target should beaccessible to him. The appropriate selection of the media, its coverage and other factors

like the product distribution facilities play a major role in a marketer becomingaccessible to customers. Differentiable: Each segment of the market should be different from others in terms of its needs and wants. Each segment requires different marketing strategies because itresponds to different strategies differently. Actionable: A segmentation variable should help marketers develop effective marketing programs to attract and serve potential customers effectively. TARGETING It is the second stage of the Segment Target Position (STP) process. Afterthe most attractive segments are selected, a company should not directlystart targeting all these segments. The attractiveness of the segments isalso depending on other important factors. In the main activity of defining atarget market, four sub activities are given which are the bases for decidingon which segments will actually be targeted. The four sub activities within targeting are: 1. Defining the abilities of the company and resources needed toenter a market 2. Analyzing competitors on their resources and skills3. Considering the companys abilities compared to thecompetitors 4. Deciding on the actual target markets. After the market has been separated into its segments, the marketer will select a segment or series of segment and target it/them. Resources and efforts will be targeted at the:

POSITIONING Introduction :

The importance of an image has become an emotional part of everyone. A brand namerepresents the image, character and personality of a brand. A brand name should be clear, lucid,easy to remember, distinct from the competition and should not be generic to the category. Itshould become customer's Top of the mind brand (TOMB). Most successful brand names wouldsatisfy these criterions to quite an extent. Brand loyalty is one thing which has made the branding more popular. As someone rightly said "Brand loyalty is not dead, it's just more likeloyalty to a girl/boyfriend than loyalty to a husband/wife".Vast flow of names today makes a brand harder to differentiate them unless they come out withtheir own uniqueness. This way, they could come to their special position in everyday life. Theimage following a particular name is also determined by the role of communication itundergoes; of which the followings are included: its manner, personality, behavior, ethics,values, etc. The importance of brands depends on the true ambitions of the company.The increasing spread and domination of international brands has seemed inevitable for at leastthe last 30 years. All around the world we have witnessed the disappearance of local brands andlocal variants. But despite this trend, local and regional brands still remain strong. In India, for example, protected for many years by government policy from the invasion of foreign brands,homegrown brands dominate many sectors - Tata automobiles and Titan watches, to name but afew. In the end people want both global and local brands - brands that make them feel part of wider international community and brands that root them in their home culture. Why are brands so important? Strong brands help a company to maintain market share in the face of a changing competitiveenvironment and it has been shown that a strong market share is associated with above-average profits. Brands have become assets in their own right. In addition, they represent low-risk opportunities for the manufacturer or service provider and they also represent reduced risk for the consumer. What is meant by brand positioning? Positioning is statement that shows how you are different, better or more special than your competition. Position is that one thing that one descriptive sentence or slogan the company isknown for that one specific idea that first comes to mind about the product. It is that onecharacteristic that sets the service apart from competitors.For Volvo that one thing is Safety.

McDonalds is A fun place for kids.In Jakarta, Indonesia, Bluebird is The safest way to travel by taxi.

Why brand positioning is important? We need to be clear about why it is important to position a brand-and exactly what a brand is. Asconsumers, we are all influenced by the effects of a powerful brand positioning-"brainwashed,"so to speak-to have preference for one versus another. But today there are so many choices for consumers that this term has a secondary derivation-"whitewashing."That is, the brand choices are so varied and the differentiation so minimal in terms of productfunctionality that we're faced with a sea of indiscernible offerings. This is why it is critical for a brand to be well positioned and uniquely differentiated. What does the result of brand positioning research show ?The market position of a brand shows where a specific brand is located. It also shows therelationship to competitive brands. We can determine the market position of a brand on the basisof the answers to the following four questions: 1. Why (which benefits and advantages does the new brand bring to the consumer) 2. When (determining the opportunities for which the brand is most suitable) 3. For whom (it is about the determination of the consumer of a brand or target group) 4. Against whom (determining the main competitive brands) TITAN PERSPECTIVE a. Titan initially pioneered the concept of "Gifting watches". The ads captured the essenceof gifting and along with the trendy music, easily caught the imagination of the market.Customers who were fed up with ugly time machines welcomed the brand and Titan hada dream run for many years. Titan then

moved away from gifting. Titan was positioningitself as a fashion accessory rather than a time keeping device. Titan also found its persona in Mr. Aamir khan which provided the much needed edge to the brand. Titanwas careful in keeping the brand above the celebrity. The ads were fresh and neatlyexecuted.The idea was to make watches that would be seen as style and fashionaccessories rather than just utilitarian devices. The company decided to use Aamir in brand and product communication on television and in the print and outdoor media.Though, the vast distribution and service network of TIL had served as an effective entry barrier in the 1990s, foreign brands were becoming increasingly popular in the early

2000s, thanks to the paradigm shifts in the retail scenario and the growing affluence of the Indian consumers.And TIL found that it was not safe even at the bottom of the pyramid. The grey marketwith cheap Chinese imports and the unorganized sector had cornered a sizable chunk of the low-end market. The appointment of Aamir Khan as brand ambassador for the Titan brand was seen as an attempt to broad base the appeal of the Titan brand. b. Titan also was pushing another strategy. Watches were perceived as a onetime buy andconsumers seldom owned multiple watches. So Titan pushed the concept of " MatchingWatches to Clothes " in the recent commercials. Since men are becoming more seriouscustomers of fashion accessories, this is strategy that is worth trying out. For Titan, evenif the concept fails, It has created the much needed freshness in the brand. c. Earlier Fastrack was targeted at 20-25 year olds and positioned along the line " Coolwatches from Titan ". Then the company found out that the youth in the age group of 11-20 years account for 42% of watch buying in India. Based on this insight, thecompany relaunched the brand lowering the target segment to 18-30 year olds with the baseline How many you have?

". Again the strategy aimed at promoting the multiplewatch owning concepts. Fastrack also launched a range of fashion accessories likeSunglasses trying to be a lifestyle brand. TILS COMMUNICATION STRATEGY TITAN THE AAMIR EFFECT TITANS COLLECTIONS DASH STEEL EDGE FLIP SONATA FASTRACK FROM COOL TO BOLD RAGA NEBULA

CONCLUSION Titan is worlds sixth largest manufacturer plant for watches. It hasachieved this position by its wonderful marketing strategies. From time totime, 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.Through its meticulous segmentation, it has been able to reach out toevery possible single segment of consumers. The product range variesfrom Rs.350 to Rs. 1, 00,000 covering all the economy and super premiumsegments. In addition to giving a tough competition to various Localbrands in India, it is also a strong competitor of various leadingInternational watch makers. The main competitors of Titan are Timex, Citizen, Esprit, and Swatch .

HMT is its closest competitor in numbers. Titanmanufactures over 7 million watches per annum and has a customer baseof over 65 million. Titan has over 60 per cent of the domestic market sharein 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 UK, Spain, Greece and countries in the MiddleEast and Asia Pacific. Its after sales service is itself a benchmarked operation with a network of over 616 service centers and has one of theworlds fastest turnaround times.