Titan industries

Project by Member of www.mbaguys.net

CO TE TS

S. o Title
1. INTRODUCTION
2. TITAN
3. TITANS BRAND ACTIVITIES
4. TITAN- ADVERTISING & PROMOTIONAL TECHNIQUES
5. TITAN- STRATEGIES
6. COMPETITORS ACTIVITIES- TIMEX
7. CONCLUSION

Project Source - http://www.mbaguys.net/t2293/


I TRODUCTIO

CO SUMER I DUSTRIES

Encompassing everything from dish soap to automobiles, the consumer products
industry is a vast empire made up of the multitude of material products available to
customers, stretching across dozens of related industries. To get a handle on the market,
analysts often divide it into two categories, durable and non-durable goods. As the names
imply, the former comprises items with (relative) staying power, like cars, home
furnishings, jewelry and electronics. The latter category includes more ephemeral
merchandise, with a life expectancy of fewer than three years, like clothing, personal care
items, and office and cleaning supplies. Others break the industry down into products that
are staples and those that are discretionary -- the difference between what consumers
need and what they'd like to have.

WATCHES

Extraordinary things some times make such an everlasting impression on some
ones personality that it becomes a symbol of grace. Watches are one of them which not
only enhance your personality with their luxurious designs but also provide you necessity
in style.



Watches have full line of quality and stylish men and women of internationally
renowned brands also. All these men watches and women watches are designed
according to the changing trends of the life as well as according to the taste of different
people.
Earlier watches were used in keeping time as well as measuring the right direction
while sailing or mobilizing in a war. Now the watches have become a symbol of status
and luxurious necessity of modern life. Watches play a magnificent role in daily life from
ordinary purpose to walking on the moon every one needs them.
The bridge between the years could be crossed only with design innovation, which
is among the biggest differentiators for the watch markets. "Watches are accessories.
They are driven by technology but they make a lifestyle statement.



TITA I DUSTRIES

Lord Chesterfield's maxim that if one takes care of the minutes, the hours will take
care of themselves, is a motto for Titan Industries, India's premier watchmaker.
Committing itself to small, continuous improvements, Titan believes, will ensure big
gains.

PROFILE

Titan Industries is India’s leading manufacturer of watches and Jewellery and the
world’s sixth largest manufacturer brand of watches. Established in 1984 as a joint
venture between the Tata Group and the Tamil Nadu Industrial Development
Corporation, the company transformed the Indian watch market, offering quartz
technology with international Styling, manufactured at its state-of-the-art factory at
Hosur, Tamil Nadu.

Leveraging its understanding of different segments in the watch market, the
company launched a second independent watch brand — Sonata — as a value brand to
those seeking to buy functionally styled watches at affordable prices. It also entered the
segment of premium fashion watches by acquiring a license for global brands such as
Tommy Hilfiger. Titan has also diversified into fashion eyewear with its Fastrack Eye
Gear sunglasses. Further, Titan leveraged its manufacturing competencies and branched
into precision engineering products and machine building in 2003. Titan Industries
Limited (TIL) is a dominant player in the Indian branded watch industry.



Titans brand watches

Titan manufactures two main brands viz. Titan for the premium segment and
Sonata for the below-$25 category. The Titan brand architecture comprises several
brands, each of which is a leader in its segment. Notable among them are:
• Titan Edge – the world’s slimmest watch.
• ebula – in solid gold and precious stones; the Gold and Steel collection.
• Flip – India’s first and only reversible watch with two movements and dial faces.
• Fastrack -In the sporty casual category.
• Raga - Raga 9 to 5 – for the woman achiever.
• Xylys - It is targeted at new generation achievers
• Dash- Children's watch targeting the age groups of 6-14

Images Fashion Forum adjudged Titan ‘Most Admired Brand’ as well as
‘Retailer of the Year’. Titan retained it ranking as the 'No 1 Brand' in the Brand Equity
Survey, in the Consumer durables category.



Titan Raga

Titan Raga, a brand, which deals exclusively in women’s watches, has Chosen
Rani Mukherjee as their brand ambassador. She promotes the Exquisite collection of
women’s watches in TV, print and outdoor ads.
The brand intends to launch 50 new designs, which will be priced at an average of
Rs 1500-5000. Titan Raga wants to promote a range of watches that will be affordable to
middle class women. The brand wishes to promote Indianess, sensuality, beauty and
feminity and Rani Mukherjee embodies all these qualities.
Titan is a major holder in the watch market and their Raga brand contributes to
their sales in a big way, hence they intend to go all out in their promotion for the Raga
brand. They have come up with a new strategy for Raga, which includes a new brand
ambassador, a new campaign and a huge number of new products.

Fast track

Fast Track is a different kettle of fish. This range is broadly aimed at young
Indians looking for watches that are fashionable and stylish. Vying for attention between
the usual array of dignified, restrained steel and gold watches is an eye-catching display
of trendy, young time pieces. The riot of colours belongs to Titan's youth brand, Fast
track, and it's been carefully crafted to draw all eyes to it.
Titan released television commercials for Fast track, the first in 18 months, and
planned extensive activities at college functions and other youth-centric activities. The
ageing of the target customer was important.
"The brand extension was a carefully thought-out exercise, based on in-house
research by Titan. Cell phones, deodorants, sports shoes, sunglasses and handbags were
most popular accessories for youngsters. While successful in its own right, the brand
extension has also helped the cause of the mother brand, helping Fast track gain more
visibility and creating more distribution options.
Earlier, Fast track was known for its steely look, emphasizing that it was sturdy
and long-lasting. But the company's research shows that young consumers --as disposable


incomes in the hands of the young increases, Fast track is again positioning itself as a
college goer's brand -- have other things on their minds, like plastic and bright colours.
They promote fast track by keeping
· Low prices i.e. at Rs 500
· Marketing for the Masala series included sponsorships of college festivals, youth
events, contests and co-branded products and promotions.

Xylys

Xylys is Titan's latest watch collection. Titan aims to bring about a redefinition of
sorts in the premium watch segment with Xylys. It is targeted at new generation
achievers who go beyond the obvious, who know who they are and set their own
standards and live by their own values. It is a style statement for those who stand apart
from the crowd.
Xylys has been created in collaboration with renowned Swiss designer Laurent
Rufenacht and Titan's own design advisor Michael Foley. It is manufactured in a state-of-
the-art factory in Switzerland, which is backed by a heritage of 80 years in the art of
Swiss watch making with all its intricate trappings of exquisite craftsmanship and
impeccable detailing.
Actor Rahul Bose, international supermodel Saira Mohan and tennis star Carlos
Moya are the three brand ambassadors of Xylys.

Sonata

Titan launched Sonata last year as independent of the Titan brand. Sonata was
launched not only as a challenge to Timex and HMT, but also to the grey market and the
small players who cater to the price-conscious consumer. Sonata's pricing ranges
reasonably, between Rs 350-to-1,150. Sonata watches are available in smart plastic, all-
weather leather, hardy stainless steel and elegant gold plated-straps. All watches are
water and shock-resistant and carry a one year guarantee.


The company’s Sonata range is targeted at rural customers, and is part of a strategy
where the alignment of price and reliability are crucial. The range costs between Rs 495
and Rs 1,200, has showrooms exclusively for it, and is sold mainly in small-town India.
Sonata was positioned as a brand for the unconventional achiever - for those who
want to make a unique impression. They believed Dhoni's endorsement of Sonata would
go a long way towards establishing the new communication platform for the brand. They
were confident that this association will help them in further strengthening the connection
between the brand and their target consumers. Dhoni would play a key role in the brand
and product communication on television as well as in print and outdoor media. He
would also feature in various promotions and merchandise that have been planned for it.



BRA D ACTIVITIES

Understanding the Indian consumer's psyche has been vital to Titan
reaching its current position of strength.

The company today has a model for every price segment and every
market, urban and rural, regional and international.

It is the rural segment within this diverse market that Titan is now looking
to tap. The company’s key to success is getting into the rural market on a
larger scale.

For its many customers Titan has Tata Signet, a 1,36,000-member club
that looks to build relationships through rewards, regular discounts and
special offers. Customers can also count on a service-centre network that’s
550-strong and spread over 30-odd cities and towns across the country.
The service centres have been deliberately kept apart from Titan’s
showrooms. The business is different and the customer is in two different
moods at the two places.

Titan is also evaluating the potential to launch a brand priced at Rs 10,000
and above, which offers the ``consumers a set of values distinct from Titan
and competitive in that space they know that they cant fight global brands
in image and stature. So they are focused on fashion and style with
international quality.

The company has made efforts to ensure that it is present in all product
segments, and has thus shifted its growth strategy from equipment and
manpower addition to increased production through fresh ideas and
greater operating efficiency by adopting the best practices followed
globally.


It has started company-owned customer care centers apart from authorised
franchisee service points across the country.

Its after sales service is itself a benchmarked operation with a network of
over 616 service centres and has one of the world’s fastest turnaround
times.

The franchisee is a critical cog in Titan’s retail matrix. The company
organises various programmes for franchisees, their managers and
customer relationship officers. These include training workshops and
seminars on market trends, visual merchandising, store operations and
maintenance, and customer service initiatives.



COMMU ICATIO TECH IQUES

Tweaking the tunes

Ad agencies are modifying jingles to reflect the brand personality and the mood of the
communication.
The Titan signature tune - from Mozart's Fifth Symphony - quickly became
something of an `earworm': the tune stayed in people's heads, and everyone hummed
along when the tune appeared. Today, the Titan tune composed by A.R. Rahman is
among the most popular mobile ringtones. Given our inherent love for music, jingles
have been used by advertisers to sell everything from detergents to desktops. But ad
agencies have begun to have fun with jingles, while also making a serious effort to tie
them to the branding.
While any communication is a `multi-sensory stimulus' comprising audio and
visual elements, the audio part essentially enhances the visual element of the
communication. Therefore, its form changes with time, but it is even more of a constant,
and even more intrinsically linked to the brand than the visual element, and so there is a
need to keep it relevant. It shows that a switch to a different musical style makes an ad
more distinct, and changing the tempo or the pace of the music helps catch the attention
of the consumer.
The tune has been used in different ways: for example, in the `gifting'
commercials, the music only begins to play at the moment the person - daughter, parent
or wife - realises he or she has been gifted a Titan. The tune is so well-known, that when
Titan celebrated the milestone of 50 million watches in January this year, consumers
could walk into Titan watch showrooms or call in radio stations and hum the tune and
win a watch.



Visual Merchandising

Titan, which has retail outlets in 170 locations, has to keep engaging in clever
visual merchandising (VM) to ensure excitement and freshness of the product. Flashing
back in 1987 watches as a category was need driven. Retail outlets were very small and
extremely poor presentation of point of purchase (POP) merchandise.
Today, although is a different scenario. Customers of today are driven by desire
and latest trends. Stores have become a lot more glamorous. In the current day and age,
VM will become increasingly significant with more and more international design trends
entering the Indian market.
Titan also changes its positioning and evolved from 'Titan' to 'The World of
Titan' which averred made a world of a difference. Another point in note for store design
specifically was that what was correct today might not be relevant tomorrow. Also,
showing less did not mean selling less. Clusters of product are a definite no-no. On the
display window, it is essential only to showcase a few and the rest to be displayed on the
counter.
VM in India is going to be the link between brand communication and the product.



TITA S ADVERTISI G TECH IQUES:

Titan only made people wear sleek watches who were used to wearing watches
that looked like tawas earlier. The customer suddenly discovered he could actually buy
his Titan watch in a relaxed and friendly ambience; one that he had been hitherto
unaccustomed to. The customer also discovered the power of advertising. So much so
that he would actually carry the ad with the model number and shape of the watch he
desired, to show the sales person at the showroom.
Titan had a dream run for several years. Its spirit of innovation guided its fortunes.
It pioneered the concept of gifting watches. People gifted watches and only watches to
parents, spouses, girlfriends, boyfriends and children. The brand was the market leader by
far, and dominated the category. People got used to the stylish faces and looks of the
Titan watch. Everybody seemed to possess at least one. People seemed to be traveling
more often than not and were exposed to cheaper, and in some cases, better-looking,
watches.

Titan launches off-season discount scheme
With a view to riding out the impact of the off-season due to the monsoon,
watchmaker Titan Industries Ltd is launching a hefty discount scheme for its watches
during monsoon season. The scheme has been structured in such a way that higher the
value of watches purchased, greater would be the savings. The scheme would be in
operation across the country. Explaining the logic behind the discount structure, the
company has introduced a multi-tier discount scheme for the off-season. The discount
offer was not applicable on its premium brands - Xylys, the Swiss-made watch offered by
Titan and Nebula, the 18k gold watches that have a different gift scheme.



PROMOTIO AL ACTIVITIES

Titan Raga, a brand, which deals exclusively in women’s watches, has
Chosen Rani Mukherjee as their brand ambassador. She promotes the
Exquisite collection of women’s watches in TV, print and outdoor ads.

Titan Raga wants to promote a range of watches that will be affordable to
middle class women. The brand wishes to promote Indianess, sensuality,
beauty and feminity and Rani Mukherjee embodies all these qualities.

Titan released television commercials for Fast track, the first in 18
months, and planned extensive activities at college functions and other
youth-centric activities.

Titan promotes fast track by keeping
· Low prices i.e. at Rs 500
· Marketing for the Masala series included sponsorships of college
festivals, youth events, contests and co-branded products and promotions.

One of the promotional strategies adopted by Titan Xylys was to endorse
Actor Rahul Bose, international supermodel Saira Mohan and tennis star
Carlos Moya as their three brand ambassadors.

Titan believed Dhoni's endorsement of Sonata would go a long way towards
establishing the new communication platform for the brand. They were
confident that this association will help them in further strengthening the
connection between the brand and their target consumers. Dhoni would play
a key role in the brand and product communication on television as well as in



print and outdoor media. He would also feature in various promotions and
merchandise that have been planned for it.

Titan, besides the franchisees and its own showrooms, it also sells its
products through other outlets. Among them are the Time Zone stores, which
stock all the leading brands, and the Value Mart outlets, which operate in
Bangalore and Chennai and sell surplus-to-export watches at a discount.



TITA ’S STRATEGIES

In October 2004, Titan Industries Ltd. (TIL), a leading manufacturer and
marketer of watches, jewelry, eyewear, and other lifestyle products,
appointed Aamir Khan (Aamir) as the brand ambassador for its Titan range
of watches. The company decided to use Aamir in brand and product
communication on television and in the print and outdoor media.

TIL hoped to promote the latest trends in the industry. The idea was to make
watches that would be seen as style and fashion accessories rather than just
utilitarian devices.

Titan captures the single-minded objective of increasing the style quotient of
watches amongst grooming accessories.

Titan offered consumers quality products that blended classy designs with
superior technology; it became a byword for success stories.

Outstanding service, a wide variety of models, and effective marketing has
helped Titan consolidate its early gains, to the point where the company is a
force to be reckoned with beyond Indian shores.

Understanding the Indian consumer's psyche has been vital to Titan reaching
its current position of strength.

The company today has a model for every price segment and every market,
urban and rural, regional and international. Titan’s mother brands Nebula,
which comes draped in 18-carat gold; the exclusive Insignia; and Raga,


which has been designed exclusively for women. Titan’s focus has always
been on India.

It is the rural segment within this diverse market that Titan is now looking to
tap. The company’s key to success is getting into the rural market on a
larger scale.

The company’s Sonata range is targeted at rural customers, and is part of a
strategy where the alignment of price and reliability are crucial. The range
costs between Rs 495 and Rs 1,200, has showrooms exclusively for it, and is
sold mainly in small-town India.

Fast Track is a different kettle of fish. This range is broadly aimed at young
Indians looking for watches that are fashionable and stylish.

Dash, a range that Titan launched for children. Introduced in early 2000,
Dash is priced low, but it hasn’t sold too well. The company plans to change
that with enhanced advertising and a different marketing strategy.

Titan had also planned extensive ad campaign during the year for the
different brands of watches. The ad spend, would go up from Rs. 70 crore
last year to Rs. 100 crore with watches going up from Rs. 50 crore to Rs. 70
crore.

The Titan umbrella brand had mapped out the marketing strategy for its
different sub-brands — Raga (for women), Fastrack (youth) and Tommy
Hilfiger (high-end), besides Sonata, the second brand of the company.
These products, commanded a share of 50 per cent of the organized
market. Of the Rs.1135 crore revenue, exports were Rs. 80 crore and it
was a "significantly" growing market.



Titan has come up with a new strategy for Raga, which includes a new
brand ambassador, a new campaign and a huge number of new products.

The company has made efforts to ensure that it is present in all product
segments, and has thus shifted its growth strategy from equipment and
manpower addition to increased production through fresh ideas and greater
operating efficiency by adopting the best practices followed globally.

Titan Industries joins MTV
Titan Industries joins MTV to launch trendy unisex watches, which Maps out
marketing strategy for sub-brands ENTICING YOUTH. Titan Industries in association
with MTV launched the "masala collection" — ten trendy unisex watches, all priced at
Rs. 500 each.
Titan Industries is looking at a modest Rs. 50 crore this year from the sale of its
re-launched Fastrack collection. This would take Fastrack’s share from five per cent to
nine per cent in the overall revenues of Titan. The strategy was simple — price
positioning and different distribution network, away from the traditional selling points.
The points of sale would be youth hangouts such as malls and cafes where the company
planned to set up kiosks and promotional activities. The move was clear-cut as "impulse"
was the driving point for purchases made by the youth.
These watches have been conceptualized and designed by Titan Design studio
and endorsed and promoted by MTV. The brand also revealed a new logo, which
signifies the spirit of bonding among today's youth.



MARKETI G RESEARCH

Research reveals some interesting facts and figures about this heterogeneous

market. The Indian market is estimated at 25 million watches a year, with 50 per cent

being sold by the organised sector. Titan is the runaway market leader, with domestic

sales of 6 million watches a year. There are 190 million watch-owning Indians; between

them they own about 210 million watches.

Urban India accounts for 120 million of these watches and 90 million are on rural

wrists. More men than women own watches in India, and more working women than

housewives own watches.



COMPETITORS ACTIVITIES

The Timex Corporation is a privately owned company headquartered in
Middlebury, Connecticut, USA with affiliate offices located throughout North America,
South America, Europe, and Asia. For over 150 years, Timex has been providing
innovative, well-designed, affordable, and reliable timepieces. With hundreds of styles
among its Fashion, Sports, Outdoor and Youth lines, Timex is the largest selling watch
brand in America and has sold more than one-billion watches worldwide. Brand Timex is
well-known in India for its sporty, techie and fashionable watches
Titans average purchase value has had a comfortable lead over rival brands such
as Timex and HMT. The average value of a Titan watch sold is Rs 1,100, while that of
Timex and HMT is Rs 700 and Rs 550 respectively. Interestingly, Timex claims that its
average purchase value has climbed steadily to Rs 1,050 from Rs 650 two years ago.
There will be some upward movement in the case of Timex mainly because of its shift in
focus to the segment priced above Rs 1,000. Until last year, Timex in India was seen
largely as a player in the mass market, where watches are priced below Rs 1,000, and
addressed to budget conscious buyers. The brand recently revamped its portfolio, aiming
for a major push in the price bracket of Rs 1,000 to Rs 5,000.
Two years ago, about 90 per cent of Timex’s sales in India came from the mass
market. Now, we sell 62 per cent of our volumes below Rs 1,000, 35 per cent between Rs
1,000 to Rs 3,500 and three per cent above Rs 3,500. We expect volumes in the Rs 1,000
to Rs 3,500 bracket to be the mainstay of our business in the years ahead.
Timex claims to be present in 5,000 odd retail points, which include 27 exclusive
showrooms. The brand is poised for an aggressive expansion by foraying into non-
traditional outlets and expects to add another 300 retail points through this route before
the current year ends.


Timex made a conscious effort to launch products that met the needs of the
younger generation at prices that they could easily afford.

CO CLUSIO

Titan Industries is India’s leading manufacturer of watches and Jewellery and the
world’s sixth largest manufacturer brand of watches. Titan has over 60 per cent of the
domestic market share in the organised 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.
Titan’s retail operations are a mix of company-owned and franchisee outlets, with the
idea being to ensure a dominant presence in all market areas through different kinds of
stores, and to assure the availability of every Titan product.

Titan retained its ranking as the 'No 1 Brand' in the Brand Equity. Titan was
adjudged 'Most Admired Brands' as well as'Retailer of the Year' by Images Fashion
Forum.


Titan industries

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