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Titan industries

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  • 1. Project by Member of www.mbaguys.net CO TE TSS. 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/
  • 2. Project by Member of www.mbaguys.net I TRODUCTIOCO SUMER I DUSTRIES Encompassing everything from dish soap to automobiles, the consumer productsindustry is a vast empire made up of the multitude of material products available tocustomers, 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 namesimply, the former comprises items with (relative) staying power, like cars, homefurnishings, jewelry and electronics. The latter category includes more ephemeralmerchandise, with a life expectancy of fewer than three years, like clothing, personal careitems, and office and cleaning supplies. Others break the industry down into products thatare staples and those that are discretionary -- the difference between what consumersneed and what theyd like to have.WATCHES Extraordinary things some times make such an everlasting impression on someones personality that it becomes a symbol of grace. Watches are one of them which notonly enhance your personality with their luxurious designs but also provide you necessityin style. Project Source - http://www.mbaguys.net/t2293/
  • 3. Project by Member of www.mbaguys.net Watches have full line of quality and stylish men and women of internationallyrenowned brands also. All these men watches and women watches are designedaccording to the changing trends of the life as well as according to the taste of differentpeople. Earlier watches were used in keeping time as well as measuring the right directionwhile sailing or mobilizing in a war. Now the watches have become a symbol of statusand luxurious necessity of modern life. Watches play a magnificent role in daily life fromordinary purpose to walking on the moon every one needs them. The bridge between the years could be crossed only with design innovation, whichis among the biggest differentiators for the watch markets. "Watches are accessories.They are driven by technology but they make a lifestyle statement. Project Source - http://www.mbaguys.net/t2293/
  • 4. Project by Member of www.mbaguys.netTITA I DUSTRIES Lord Chesterfields maxim that if one takes care of the minutes, the hours will takecare of themselves, is a motto for Titan Industries, Indias premier watchmaker.Committing itself to small, continuous improvements, Titan believes, will ensure biggains. PROFILE Titan Industries is India’s leading manufacturer of watches and Jewellery and theworld’s sixth largest manufacturer brand of watches. Established in 1984 as a jointventure between the Tata Group and the Tamil Nadu Industrial DevelopmentCorporation, the company transformed the Indian watch market, offering quartztechnology with international Styling, manufactured at its state-of-the-art factory atHosur, Tamil Nadu. Leveraging its understanding of different segments in the watch market, thecompany launched a second independent watch brand — Sonata — as a value brand tothose seeking to buy functionally styled watches at affordable prices. It also entered thesegment of premium fashion watches by acquiring a license for global brands such asTommy Hilfiger. Titan has also diversified into fashion eyewear with its Fastrack EyeGear sunglasses. Further, Titan leveraged its manufacturing competencies and branchedinto precision engineering products and machine building in 2003. Titan IndustriesLimited (TIL) is a dominant player in the Indian branded watch industry. Project Source - http://www.mbaguys.net/t2293/
  • 5. Project by Member of www.mbaguys.netTitans brand watches Titan manufactures two main brands viz. Titan for the premium segment andSonata for the below-$25 category. The Titan brand architecture comprises severalbrands, 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- Childrens 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 EquitySurvey, in the Consumer durables category. Project Source - http://www.mbaguys.net/t2293/
  • 6. Project by Member of www.mbaguys.netTitan Raga Titan Raga, a brand, which deals exclusively in women’s watches, has ChosenRani Mukherjee as their brand ambassador. She promotes the Exquisite collection ofwomen’s watches in TV, print and outdoor ads. The brand intends to launch 50 new designs, which will be priced at an average ofRs 1500-5000. Titan Raga wants to promote a range of watches that will be affordable tomiddle class women. The brand wishes to promote Indianess, sensuality, beauty andfeminity and Rani Mukherjee embodies all these qualities. Titan is a major holder in the watch market and their Raga brand contributes totheir sales in a big way, hence they intend to go all out in their promotion for the Ragabrand. They have come up with a new strategy for Raga, which includes a new brandambassador, 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 youngIndians looking for watches that are fashionable and stylish. Vying for attention betweenthe usual array of dignified, restrained steel and gold watches is an eye-catching displayof trendy, young time pieces. The riot of colours belongs to Titans youth brand, Fasttrack, and its been carefully crafted to draw all eyes to it. Titan released television commercials for Fast track, the first in 18 months, andplanned extensive activities at college functions and other youth-centric activities. Theageing of the target customer was important. "The brand extension was a carefully thought-out exercise, based on in-houseresearch by Titan. Cell phones, deodorants, sports shoes, sunglasses and handbags weremost popular accessories for youngsters. While successful in its own right, the brandextension has also helped the cause of the mother brand, helping Fast track gain morevisibility and creating more distribution options. Earlier, Fast track was known for its steely look, emphasizing that it was sturdyand long-lasting. But the companys research shows that young consumers --as disposable Project Source - http://www.mbaguys.net/t2293/
  • 7. Project by Member of www.mbaguys.netincomes in the hands of the young increases, Fast track is again positioning itself as acollege goers 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, youthevents, contests and co-branded products and promotions.Xylys Xylys is Titans latest watch collection. Titan aims to bring about a redefinition ofsorts in the premium watch segment with Xylys. It is targeted at new generationachievers who go beyond the obvious, who know who they are and set their ownstandards and live by their own values. It is a style statement for those who stand apartfrom the crowd. Xylys has been created in collaboration with renowned Swiss designer LaurentRufenacht and Titans 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 ofSwiss watch making with all its intricate trappings of exquisite craftsmanship andimpeccable detailing. Actor Rahul Bose, international supermodel Saira Mohan and tennis star CarlosMoya are the three brand ambassadors of Xylys.Sonata Titan launched Sonata last year as independent of the Titan brand. Sonata waslaunched not only as a challenge to Timex and HMT, but also to the grey market and thesmall players who cater to the price-conscious consumer. Sonatas pricing rangesreasonably, 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 arewater and shock-resistant and carry a one year guarantee. Project Source - http://www.mbaguys.net/t2293/
  • 8. Project by Member of www.mbaguys.net The company’s Sonata range is targeted at rural customers, and is part of a strategywhere the alignment of price and reliability are crucial. The range costs between Rs 495and 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 whowant to make a unique impression. They believed Dhonis endorsement of Sonata wouldgo a long way towards establishing the new communication platform for the brand. Theywere confident that this association will help them in further strengthening the connectionbetween the brand and their target consumers. Dhoni would play a key role in the brandand product communication on television as well as in print and outdoor media. Hewould also feature in various promotions and merchandise that have been planned for it. Project Source - http://www.mbaguys.net/t2293/
  • 9. Project by Member of www.mbaguys.netBRA D ACTIVITIES Understanding the Indian consumers 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. Project Source - http://www.mbaguys.net/t2293/
  • 10. Project by Member of www.mbaguys.netIt has started company-owned customer care centers apart from authorisedfranchisee service points across the country.Its after sales service is itself a benchmarked operation with a network ofover 616 service centres and has one of the world’s fastest turnaroundtimes.The franchisee is a critical cog in Titan’s retail matrix. The companyorganises various programmes for franchisees, their managers andcustomer relationship officers. These include training workshops andseminars on market trends, visual merchandising, store operations andmaintenance, and customer service initiatives. Project Source - http://www.mbaguys.net/t2293/
  • 11. Project by Member of www.mbaguys.netCOMMU ICATIO TECH IQUESTweaking the tunes Ad agencies are modifying jingles to reflect the brand personality and the mood of thecommunication. The Titan signature tune - from Mozarts Fifth Symphony - quickly becamesomething of an `earworm: the tune stayed in peoples heads, and everyone hummedalong when the tune appeared. Today, the Titan tune composed by A.R. Rahman isamong the most popular mobile ringtones. Given our inherent love for music, jingleshave been used by advertisers to sell everything from detergents to desktops. But adagencies have begun to have fun with jingles, while also making a serious effort to tiethem to the branding. While any communication is a `multi-sensory stimulus comprising audio andvisual elements, the audio part essentially enhances the visual element of thecommunication. 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 aneed to keep it relevant. It shows that a switch to a different musical style makes an admore distinct, and changing the tempo or the pace of the music helps catch the attentionof the consumer. The tune has been used in different ways: for example, in the `giftingcommercials, the music only begins to play at the moment the person - daughter, parentor wife - realises he or she has been gifted a Titan. The tune is so well-known, that whenTitan celebrated the milestone of 50 million watches in January this year, consumerscould walk into Titan watch showrooms or call in radio stations and hum the tune andwin a watch. Project Source - http://www.mbaguys.net/t2293/
  • 12. Project by Member of www.mbaguys.netVisual Merchandising Titan, which has retail outlets in 170 locations, has to keep engaging in clevervisual merchandising (VM) to ensure excitement and freshness of the product. Flashingback in 1987 watches as a category was need driven. Retail outlets were very small andextremely poor presentation of point of purchase (POP) merchandise. Today, although is a different scenario. Customers of today are driven by desireand 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 trendsentering the Indian market. Titan also changes its positioning and evolved from Titan to The World ofTitan which averred made a world of a difference. Another point in note for store designspecifically 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 thedisplay window, it is essential only to showcase a few and the rest to be displayed on thecounter. VM in India is going to be the link between brand communication and the product. Project Source - http://www.mbaguys.net/t2293/
  • 13. Project by Member of www.mbaguys.netTITA S ADVERTISI G TECH IQUES: Titan only made people wear sleek watches who were used to wearing watchesthat looked like tawas earlier. The customer suddenly discovered he could actually buyhis Titan watch in a relaxed and friendly ambience; one that he had been hithertounaccustomed to. The customer also discovered the power of advertising. So much sothat he would actually carry the ad with the model number and shape of the watch hedesired, 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 toparents, spouses, girlfriends, boyfriends and children. The brand was the market leader byfar, and dominated the category. People got used to the stylish faces and looks of theTitan watch. Everybody seemed to possess at least one. People seemed to be travelingmore 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 watchesduring monsoon season. The scheme has been structured in such a way that higher thevalue of watches purchased, greater would be the savings. The scheme would be inoperation across the country. Explaining the logic behind the discount structure, thecompany has introduced a multi-tier discount scheme for the off-season. The discountoffer was not applicable on its premium brands - Xylys, the Swiss-made watch offered byTitan and Nebula, the 18k gold watches that have a different gift scheme. Project Source - http://www.mbaguys.net/t2293/
  • 14. Project by Member of www.mbaguys.netPROMOTIO 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 Dhonis 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 Project Source - http://www.mbaguys.net/t2293/
  • 15. Project by Member of www.mbaguys.netprint and outdoor media. He would also feature in various promotions andmerchandise that have been planned for it.Titan, besides the franchisees and its own showrooms, it also sells itsproducts through other outlets. Among them are the Time Zone stores, whichstock all the leading brands, and the Value Mart outlets, which operate inBangalore and Chennai and sell surplus-to-export watches at a discount. Project Source - http://www.mbaguys.net/t2293/
  • 16. Project by Member of www.mbaguys.netTITA ’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 consumers 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, Project Source - http://www.mbaguys.net/t2293/
  • 17. Project by Member of www.mbaguys.netwhich has been designed exclusively for women. Titan’s focus has alwaysbeen on India.It is the rural segment within this diverse market that Titan is now looking totap. The company’s key to success is getting into the rural market on alarger scale.The company’s Sonata range is targeted at rural customers, and is part of astrategy where the alignment of price and reliability are crucial. The rangecosts between Rs 495 and Rs 1,200, has showrooms exclusively for it, and issold mainly in small-town India.Fast Track is a different kettle of fish. This range is broadly aimed at youngIndians 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 changethat with enhanced advertising and a different marketing strategy.Titan had also planned extensive ad campaign during the year for thedifferent brands of watches. The ad spend, would go up from Rs. 70 crorelast year to Rs. 100 crore with watches going up from Rs. 50 crore to Rs. 70crore. 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. Project Source - http://www.mbaguys.net/t2293/
  • 18. Project by Member of www.mbaguys.net 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 outmarketing strategy for sub-brands ENTICING YOUTH. Titan Industries in associationwith MTV launched the "masala collection" — ten trendy unisex watches, all priced atRs. 500 each. Titan Industries is looking at a modest Rs. 50 crore this year from the sale of itsre-launched Fastrack collection. This would take Fastrack’s share from five per cent tonine per cent in the overall revenues of Titan. The strategy was simple — pricepositioning 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 companyplanned 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 studioand endorsed and promoted by MTV. The brand also revealed a new logo, whichsignifies the spirit of bonding among todays youth. Project Source - http://www.mbaguys.net/t2293/
  • 19. Project by Member of www.mbaguys.netMARKETI G RESEARCH Research reveals some interesting facts and figures about this heterogeneousmarket. The Indian market is estimated at 25 million watches a year, with 50 per centbeing sold by the organised sector. Titan is the runaway market leader, with domesticsales of 6 million watches a year. There are 190 million watch-owning Indians; betweenthem they own about 210 million watches. Urban India accounts for 120 million of these watches and 90 million are on ruralwrists. More men than women own watches in India, and more working women thanhousewives own watches. Project Source - http://www.mbaguys.net/t2293/
  • 20. Project by Member of www.mbaguys.netCOMPETITORS ACTIVITIES The Timex Corporation is a privately owned company headquartered inMiddlebury, Connecticut, USA with affiliate offices located throughout North America,South America, Europe, and Asia. For over 150 years, Timex has been providinginnovative, well-designed, affordable, and reliable timepieces. With hundreds of stylesamong its Fashion, Sports, Outdoor and Youth lines, Timex is the largest selling watchbrand in America and has sold more than one-billion watches worldwide. Brand Timex iswell-known in India for its sporty, techie and fashionable watches Titans average purchase value has had a comfortable lead over rival brands suchas Timex and HMT. The average value of a Titan watch sold is Rs 1,100, while that ofTimex and HMT is Rs 700 and Rs 550 respectively. Interestingly, Timex claims that itsaverage 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 infocus to the segment priced above Rs 1,000. Until last year, Timex in India was seenlargely as a player in the mass market, where watches are priced below Rs 1,000, andaddressed to budget conscious buyers. The brand recently revamped its portfolio, aimingfor 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 massmarket. Now, we sell 62 per cent of our volumes below Rs 1,000, 35 per cent between Rs1,000 to Rs 3,500 and three per cent above Rs 3,500. We expect volumes in the Rs 1,000to 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 exclusiveshowrooms. 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 beforethe current year ends. Project Source - http://www.mbaguys.net/t2293/
  • 21. Project by Member of www.mbaguys.net Timex made a conscious effort to launch products that met the needs of theyounger generation at prices that they could easily afford. CO CLUSIO Titan Industries is India’s leading manufacturer of watches and Jewellery and theworld’s sixth largest manufacturer brand of watches. Titan has over 60 per cent of thedomestic market share in the organised watch market. Its exclusive retail showroomchain – World of Titan – is amongst the largest in its category. Titan watches are soldthrough 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 theidea being to ensure a dominant presence in all market areas through different kinds ofstores, and to assure the availability of every Titan product. Titan retained its ranking as the No 1 Brand in the Brand Equity. Titan wasadjudged Most Admired Brands as well asRetailer of the Year by Images FashionForum. Project Source - http://www.mbaguys.net/t2293/
  • 22. Project by Member of www.mbaguys.netProject Source - http://www.mbaguys.net/t2293/

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