Indian Watch Market

• India – Manufacturing capability of making all

components of watch
• Import duty lowered to 35 % - Competition
• Consumption - 25 watch per thousand
• Market Size
– 28 million units every year growing at 30 % per
annum
– Rs 2800 crore – organized segment – 40 %
 Indian Watch Market
• 1957 - Prime Minister Jawaharlal Nehru’s visit
to Japan
• 1961 – Hindustan Machine Tools in
collaboration with Citizen
• 1984 – Titan – Collaboration between Tata
and Tamil Nadu Industrial Development
Corporation (TIDCO).
 Indian Watch Market
Product Average Market Size Market Size
Segment (INR) Price (INR) (000 units) (INR millions)

Super premium >5001 7,500 280 2,100

Premium 2,500 -5,000 3,500 2330 8,155

Medium 1,251-2,500 1,750 4940 8,645

Economy 501- 2,500 750 8310 6,223

Low 251 - 500 400 4290 1,716

Extremely low < 250 150 7850 1,178

Total 28000 28,026

 Indian Watch Market
Value Wise share of the segments
extremely low
6%
low super premium
6% 7% super premium
economy premium premium
22% 29%
medium
economy
low
medium extremely low
30%
 Indian Watch Industry
Porter’s 5 force analysis
• Threat of new entrants
-Medium to high Porter Five Forces for Indian Watch Industry

• Bargaining power of Threat of new entrant

100
buyer – Medium 50
competitive rivakry Bargaining power of Buyer
• Bargaining power of 0

suppliers – Medium Threat of Substitute Bargainig power of Suppliers

• Threat of substitute
product - Medium
• Intensity of competitive
rivalry - Medium to high
 Players in the market
• Titan
• HMT
• Citizen
• Maxima
• Timex
• Casio
 Brand Inventory of Players
Titan HMT Timex
• EDGE • Sangam • Automatics
• Lalit • Perpetual calendar
• FASTRACK • Swarna • Chronographs
• NEBULA • Shreyas • Fashion
• RAGA • Chandan • Outdoor
• Pace • Sports, Fitness and Advanced
• STEEL
• Braille • Empera
• REGALIA • Sona • Formals
• BANDHAN • Kanchan • SLX series
• Janta • E-Tide-Temp_compass
• FLIP
• Tenmax • Retrogrades
 Brand Perception
PRICE PERCEPTION

TITAN (sonata) maxima HMT Timex TITAN (fastrack) TANISHQ TITAN(Raga) ROLEX CITIZEN CASIO RADO

ROLEX

TANISHQ

RADO
BRANDS

CASIO

CITIZEN
TITAN(Raga)

HMT TITAN (fastrack)

TITAN (sonata)
Timex
maxima

PERCEPTION
 Titan Strategy
• Titan - Focus on mid and upper-mid market
segment
• Sonata – Growing Mass Market
• Separate Sales, marketing, supply chain and
servicing facilities for two brands
 Titan Strategy – Segmentation and
Targeting
• High income / Elite consumers - Price
insensitive – Buys watch as an fashion
accessory
• Utility and fashion conscious mid Segment –
can afford a costly watch but compares with
all products in market
• Mass Market – use of watch merely as time
keeping device – hence price conscious
 Titan’s Offerings
• High Income/ Elite Customer
– Aurum and Royale in the gold/ jewellery watch
range
– Xylys, Nebula
– Stylish dress watches in all gold and precious
metals
– Price range – 20000 to 1 lakh
 Titan’s Offerings
• Utility and fashion conscious mid Segment
– Exacta range in stainless steel
– RAGA range for women
– Price range - 500 to 2000
– Good quality watches with reasonable fashion
– Ability to withstand the rigors of daily life
 Titan’s Offerings
• Mass Market – also includes college and high
school students
– Earlier had Timex for this segment
– Later on Sonata
– Dash! For children
– Price range – 200 to 500
 Watch Market Map
Formal / Classic

Omega,Rado, Longines

Raymond Weil
Tissot

TITAN, RAGA Citizen Nebula

Sonata, Timex

HMT,
Maxima XYLYS

Price

Rs 500 1000 2000 4000 5000 10000

20,000 +

Espirit, Swatch Fossil

Giordano, DKNY, Carrera
Tommy Hilfiger

Fastrack Tag Heuer Hugo Boss

C Dior

Fashion/Sporty
 Marketing mix priorities and
synchronization for Titan
• Maximizing profit through brand inventory
• Approach towards marketing mix is
methodical
• Unorganized quartz market much larger than
organized quartz market
• Carefully orchestrated marketing mix
 Titan Marketing Strategy
• During the 80s - only in the quartz watch
market (product decision)
• Titan is as good as foreign makes
• Developed the emotional appeal by projecting
the popular Titan jingle
• Transformed the `watch buying' experience
from bazaar shops to exclusive outlets which
offered ambience and comfort
 Titan Marketing Strategy
Owning watches – no more tradition needs – it’s
a lifestyle need
Shift towards LIFESTYLE needs

TRADITIONAL NEEDS LIFESTYLE NEEDS

Basic Necessity Leisure needs
Simple Product / Enhanced product /
Service Orientation Service Orientation
Low incremental Higher incremental
consumption YoY consumption YoY
Focus on internal Needs Focus on external Needs
 Titan Marketing Strategy
• Several variants were created at different price
points for various segments
• Effective application of sub-brands
• Effective retail network
– Exclusive Showrooms
– Multi brand outlets

`Top of mind' recall of most Indian

consumers
Titan Brand Ambassador & Advertising
strategy
• Brand Ambassador – Aamir Khan

• Perfect Fit – Both share the same values

• Titan - a new concept to promote the latest

trends in the industry with focus on important
accessory of style and fashion
 Strategy in Exchange offer
• Phenomenon:
• Two lakhs watches were exchanged between 20 days
• Reason:
• Insight from repeated brand track studies is that there is a lot
of sentimental attachment.
• Concept:
• To make it clear that you have an old watch, something that you always
had and you never noticed it.
 Sonata: mass market
h a r d w o r k in g , a p p r o p r ia te fo r
tr a d itio n a l a n d o u td o o r w o rk a n d
s tro n g c a s u a l s o c ia l
s itu a tio n s
c la s s ic
u n iv e r s a l
g o ld e n ,
m e ta llic

T IT A N
SO N ATA

d u r a b le ,
r o b u s t lo n g fe e lin g o f s e lf
la s tin g a ssu ra n ce
c o m fo r ta b le
and cheap
 Fastrack : Youth brand
• "Cool watches from Titan“

• By 2001-02 sales were stagnating.

• Repositioned the brand Fastrack was slotted as a mix

of formal and casual.

• "Fastrack's biggest competition is the mindset.

• Brand extension helped.

 RAGA: Womens’ watch
• India’s only watch brand which is designed and crafted
exclusively for women.

• A brand that a woman trusts and confides in.

• Titan Raga watches are like today’s woman — beautiful,

sensuous and feminine.

• Baseline ‘Ek khoobsoorat rishta’.

• Rani Mukherji has been signed up as the brand ambassador.

 Flip- first dual face watch
• Sophistication at a higher level

• a distinctive combination of style and dual functionality,

appeal to the evolving tastes and preferences of discerning
global customer.

• positioned in such a way that it is a perfect accessory; one

watch that anyone can wear on a shoot, a formal evening or
to a lounge bar.

• Titan had roped celebrated actor Akshay Khanna

 Xylys – niche market
• launched to a direct confrontation with Rado or Tissot

• Exuding style, attitude and power, a statement for those who

stand apart from the crowd.
•
• targeted at new generation achievers

• main challenge with this brand is that to create a signature style

for the collection.

• Actor Rahul Bose, international supermodel Saira Mohan and

tennis star Carlos Moya are the three brand ambassadors of
Xylys.
 Brand Extension
• Capitalizing on core competency (precision
technology) and brand image of Titan.
• Jewellery: TANISHQ

• Eye gear: FASTTRACK

 Threat
• Esprit, Swatch and Citizen, hitherto restricted
to the premium end, have entered the mid-
priced segment, bracketed between Rs 1,200
and Rs 3,500
• Kids seemed to be fascinated with mobile
phones rather than watches, and incidentally,
these phones showed the time too!
 Rural Market
• Sonata being made the brand for masses with
competitive price and attractive design.
• Missing on having a watch in 150-199 rupees price
segment. Planning to do so.
• Present in all towns with 10,000 population.
• Brand building at melas, haats and through mobile
vans.
• Separating sonata from Titan.
Way Forward….
• Repositioning in between the fashion brands
and the functional ones in the European
market. (previously premium segment)
• Design and color based on each countries
affiliations.
Way Forward….
Strategy:

Continued thrust on core business:

• Watches.
• Jewelry.
• International markets (especially middle east and south
east Asia.).

Developing new business segments:

• Precision Engineering.
• Mass marketing Jewelry.
• Eye wear.
THANK YOU