The Watch Industry

1980s-till date 1970-80s 1950-70s 1950s

Indian Watch Industry

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

Innovation Quality Creative Advertising

Aamir Effect Catalogue Advertising

Retail Stores Cutting Edge Technology

 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.

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

Aamir Effect

Created by TVC. TVC introduced in Oct. 2004. Sales soared exponentially.

Used effectively to merchandise new models. Newspaper Cuttings.

Catalogue Advertising

10000 Dealers 177 Showrooms 119

Multi-brand-stores

ALL INDIA

2300 Towns

World Of Titan

104 Towns
90 Towns 314 Towns

Time Zones

616 Centers

Service Centers

 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.

Watches
1000
919 784 655

Income in Rs. Cr.

800 600 400 200 0

2005-06

2006-07

2007-08

Year

PBT
250 200
in Rs. Cr.
in Rs. Cr.

PAT
202 132

250 200
150

150 100 50 0
87

150
94

100 50

74

2005-06 2006-07 2007-08

0
2005-06 2006-07 2007-08

Year

Year

Watches
400
328 338 327

in Rs. Cr.

300 200 100 0

2005-06 2006-07 2007-08

Year

Market Cap.
5000 4000 3000 2000 1000 0 218
200203

4400 3530

5300

1018 500
200304 200405 200506

Crossed Billion $

2006- May-08 07

Domestic Level

HMT Maxima-quartz Rado Casio

Espirit Swatch Citizen Tag Heuer International Seiko level Cartier Giordano

Fashion Houses

DKNY Gucci Adidas Nike Bvlgary

Competitive factors Technological factors Social factor Economic factors

Introduction : WWF, Orion, Zoop, Diva, Octane Growth: Nebula, Insignia, Raga, Royal, Regalia, Edge etc

Maturity: Sonata, Fastrack, Dash

Decline: Aqura

Product type

convenience specialty
Market segmentation Based on user category Competitive prices

Segmentation of TITAN Watch

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

World of Titan Showrooms Time Zone Traditional Outlets Non Traditional Outlets

TITAN PRICING
Pricing Objectives 1. Survival (i.e. Titan Exacta) 2. Market share (i.e. Titan Sonata)

3. Market skimming (i.e. Titan Nebula)

4. Product quality Pricing method

1. Product line pricing 2. Promotional pricing Application of pricing strategy

1. Lower segment
2. 1000 plus segment

PROMOTION:1. Advertising 2. Sales promotion 3. 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?

Public relation Gift concept Promotion On Occasions

Sales promotion Sponsorship

Seasonality
Promotion through Contests

SWOT

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

Main USP is low cost watch. Lack of approach futuristic

Lack of flexible thinking

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

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

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.