TITAN Time wear & Eye wear

Amit Jha(12006)

OBJECTIVES

MARKETING STRATEGIES BY DIFFERENT WATCH BRANDS IN INDIA. TITAN OR TIMEX? WHOSE CAPTURING A GREATER MARKET SHARE. INDIVIDUAL STRATEGIES. WHAT ARE THE CONSEQUENCES? RECOMMEMDATIONS FOR THE COMPANY HAVING LOW MARKET SHARE.

TITAN
BE MORE

One of the giant gods in Greek mythology who preceded the Olympian gods. The largest moon of the planet Saturn. World's fifth largest and India's leading manufacturer of watches. The Titan portfolio has over 60% share in the domestic market share. The company has showrooms in every nook and corner of the country that caters to the needs of every segment of the people.

TITAN
FOUNDED IN: 1987 HEADQUARTERS: India AREA SERVED: 4 continent and 32 countries India and other countries esp. Middle east, Asia Pacific and Africa Has Customer base of over 80 million. INDUSTRY: Watches PRODUCTS: Watches, Jewellery, Eyewear & Precision Engineering EMPLOYEES: 3,000 PARENT COMPANY: TATA

AWARDS ACHIEVED
The company has been awarded the following distinctions: No.1 Brand in the Consumer Durables category in the "Brand Equity" Survey of The Economic Times Won the Young Design Entrepreneur of the Year at the National Institute of Design and Business World
Retail Asia and Media Magazine Singapore adjudged Titan Industries as amongst the leading Retailing Companies in India.
Titan has won the Brand Leadership award at the India Brand Summit.

The Time Products Division of the company was awarded the JRD QV Award in 2006.

Vision

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

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

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

Strategies
Innovation Quality Creative Advertising
Aamir Effect
Catalogue Advertising

Retail

Stores 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.

BRAND POSITIONING STRATEGIES

Attribute Positioning: First to bring Quartz watches to the Indian market. This helped to penetrate the market and gain a market share. Raga, Classique and Regalia Benefit Positioning: The Fastrack Digital range offers the customer a functional watch that is attractive and has superior style. Competitor Positioning: With the entry of Omega, Tissot etc into the market who are catering to the upper end of the market titan has tried to reposition itself by increasing the price range. Quality or Price Positioning: In Indian market, Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition.

BRAND AMBASSADOR

Retail Stores
Of titan
10000 Dealers 177 Showrooms 616 Centers ALL INDIA 2300 Towns

World Of Titan

104 Towns
314 Towns

Service Centers

Market Capitalization (Rs. in Cr.)

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 Casio

International level- Espirit Swatch Citizen

Seiko

Marketing Mix (4PS)

Edge Raga Octan Zoop WWF Heritage Orion Nebula Sonata Exacta Spectra Dash Regalia Fastrack Royale Classique Xylus Eye + Titan Bandhan watches
It also markets Tommy Hilfiger watches under a licensing arrangement

Jewellery : Tanishq is India's largest and fastest growing jewellery brand with a premium range of gold jewellery studded with diamonds or coloured gems. In India it has 102 boutiques across the country.
Eye wear : Titan Eye+ produces sunglasses under Fastrack brand and prescription eyewear consisting of Frames, Lenses, Sunglasses, Accessories and Contact Lenses.

World of Titan Showrooms Time Zone Traditional Outlets Non Traditional Outlets

PRICING
Pricing Objectives
1.

Survival (i.e. Titan Exacta)

2.
3. 4.

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

1. 2.

PRICE
Raga Diva- Rs 4000-9500 Zoop- Rs 5200- 6000 Nebula- Rs 26000- 85000 Octane- Rs 5250- 7000 Orion- Rs 3200- 7500 Fastrack- Rs 500-4500

1. 2.

PROMOTION
1. 2.

3.

Advertising Sales promotion Public relation Titan brand ambassador: Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Rahul Bose Fastrack: John Abraham Titan tagline: Be more Fast track tagline: How many you have?

Public relation Gift concept Promotion On Occasions Advertising media: Television Print Internet Sales promotion Sponsorship Seasonality Promotion through Contests

SWOT Analysis
STRENGTHS
Brand image and company is Tata group parent

WEAKNESSES
High price for jewelley
Lack of scope in entering south indian market Service centres are rare Less number of low priced products

Market segments with large potential: women, youth, children, sportsmen, the budgetconscious , the big spenders. Customer value and offered after sales service in a showroom environment Worlds 5th largest watch manufacturers Popular brand ambassdors

OPPORTUNITIES
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 Continous innovation different festive occasions

THREATS
Too many players will dilute the market & the profit margin Low priced China watches Mobile phones. Government rules and regulations

Segmentation of Indian Watch industry

Based on price
Mass (Rs.350-600), Popular (Rs.600-900), Premium (Rs.900-1500), Super-premium (Rs.1500-8000) Connoisseur segments (above Rs.8000) Based on user category Mens watches Womens watches Youth watches Kids watches Sports watches

POSITIONING
Titan has been positioned as a premium brand, providing high quality products Titan initially pioneered the concept of "Gifting watches". Customers who were fed up with ugly time machines welcomed the brand Titan.

Re- Positioning as a fashion accessory.

Watches were perceived as a onetime buy and consumers seldom owned multiple watches.

Titan pushed the concept of "Matching Watches to Clothes" in the recent commercials.

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

Maturity: Sonata, Fastrack, Dash Decline: Aqura

THE EYE WEAR BUSINESS

Started in 2004-05 by marketing Sunglasses under the Fastrack brand Targeted the youth segment Achieved a sales turnover of over Rs 25 crores in 2006-07 and Rs 40 crores in 2007-08 Pilot project for Prescription Eyewear started in Q4 2006-07

10 Titan Eye+ outlets as on 31 March 2008

THE EYEWEAR MARKET AN UNTAPPED OPPORTUNITY

Incidence: 30% of population typically needs correction in vision ~ 300 mn Users: 84mn users which is about 25% of those who need the correction Consumers change their glasses / frames once in 3 to 4 years on an average

Market size: 25-35 million units per annum Rs 1500-1800 crs per annum Comparable to the watch industry Repeat purchase is a regular feature from adolescence to old age. Customer lifetime value is very high Almost everyone over 40 yrs needs correction.

Growth: Market has been growing in double digits ~ 15-20% per annum and likely to sustain Demand drivers: Urbanization, literacy, Penetration of TV & computers, Poor eye health due to lifestyles/ improper diet, etc. Margins: Overall mark ups of up to 300% exist between landed cost & retail price!

OUR BUSINESS PROPOSITION

To enter as a retail brand Chain of Stand Alone Stores
-

Product / Service Offering: Eye checking, Optometry Range of frames - Titan & licensed brands Range of Branded Lenses Sunglasses Titan, Fastrack & licensed brands Contact Lenses, Accessories

WHERE WILL WE PLAY IN THE VALUE CHAIN

OUTSOURCE
Design and Marketing

Frame and Wholesale lens blank manudistribution facturing

Lens finishing and assembly

RETAIL, SERVICE

Mfg is not yet a desirable option

Tie up with reputed lens brands & labs

Focus on strengths and high margin areas: DESIGN, RETAIL, SERVICE & MARKETING

REASONS FOR SUCESS

Brand Quality Good marketing and distribution network

Corporate social responsibility

THANK YOU