About the History, development and business of TATA-Titan watches in India.

1. TITAN
ONE COMPANY, MANY BRANDS
From Style Statement to Personality Statement

2. Company Profile
SL NO PARTICULAR DETAILS
1 Incorporated in 26-07-1984
2 Name of the Company TITAN COMPANY LIMITED
3 Category Consumer Products
4 Sector Lifestyle and Retail
5 Principle Business Activity 1. Jewellery (77.30%)
2. Watches (17.31%)
6 % Share Holding of Promoters TITAN (46.94%)
TIDCO (27.88%)
TATA Sons Ltd (20.85%)
TATA Invt Corp ltd (2.01%)
7 Total Sales (in units) 15 million
8 Market Share 55-60%
9 Exports Share in total sales 15%
10 Global Ranking 5th

3. Financial & Market Status
2015-16
INFORMATION DATA ANALYSIS
Total Sales (2015-16) 11,295.74 Cr. The Company’s sales income declined
by 5.4 % to 11,295.74 crores
compared with ` 11,936.71 crores in
the previous year.
Net Profit (2015-16) 705.85 Net profit declined by 14.2% to 705.85
crores.
Reasons for decline
(Overall)
Decline in
Jewellery
segment 7.6%
This performance came in the
backdrop of an environment where
the consumer sentiment did not pick
up as expected and regulatory
measures adversely affected the
jewellery business.
Status on Watch Industry Growth of 1.7% The Watches business of the Company
recorded an income of 1,953.55
crores, a growth of 1.7%

4. Comparative Analysis of the financial
performance for the year 2015
Particulars TITAN (Rs. In
crores)
CITIZEN
(thousands of
US dollars)
TIMEX
(Rs. In lakhs)
Total Sales 11,295.74 $ 3,082,012 17,030
Loss for the Year ------------------- --------------------- 927
Profit for the Year 1,953.55 $ 0.37 -------------------
Growth level
compared to 2014
1.7% 3%

5. GROWTH OF RETAIL
ORGANISATION• PHASE-1(1987 to 1992)
 1st showroom in Bangalore, with a single objective of showcasing the
‘Titan Brand’.
 Introduction of Quartz watches, superior in terms of accuracy and styling
options.
 Large range of watches under one roof with greater ambience and
comfortable environment and also the prices were uniformly displayed.
• PHASE-2(1992 to 1998)
 opened first few stores with just an interest in showcasing the Brand.
 These showrooms were “immensely profitable”.
 World of Titan became one of the serious channels of business and also
became a catalyst to Titan watch which trade in general.
 Success of WOTs encouraged trade to make a shift from just selling to
retailing.
 These developments saw a growth in the market and also enhanced
profitability.

6. • PHASE-3(1998-2004)
 Increasing penetration in smaller towns and cities.
 Dual focus where these showrooms are reinvented every five years
in terms of looks, trends, ambience, retail experience and also to
match with international standards.
 Competition with international brands.
 New layouts, innovative wall displays interspersed with accessories
and islands like counters, which encouraged the modern evolved
customer.
 Breaking away the concept of ‘selling from behind the counter’.
 Each showroom has a turnover of about Rs.20 to 30 million p.a in
large cities & Rs. half million p.a in smaller towns.
 High growth of about 15% to 25% every year.
 More than 24% of return on investment.
 Professional expertise in setting up & operating showrooms.
 ‘Authorised service centre’ besides each showroom

9. STP
Segment Watch brands from luxury to sporty to fashion
Target Group Mid and Premium Market Working men and women
Positioning Not just a watch, but a style statement
Product Portfolio
Brands
1.Fastrack
2.Sonata
SWOT Analysis
Strengths
1. Large network of exclusive stores and service centres
2. High Top of the mind recall, especially for the Mid market segment
3. Different sub-brands under the brand Titan have been successful in their positioning based
on Demographic segmentation
4. One of the world’s top five and India’s biggest watch manufacturer
5. Titan watches are exported in over 40 countries
Weaknesses
1. Premium category Titan brands like Xylys have been camouflaged by the Titan brand Image
of being a mid-market player
2. Haven’t penetrated the global market as some other international watch makers
Opportunities
1. India is an under penetrated market for watches
2. Global expansion and tie-ups with global watch and Jewellry brands
Threats
1. Broad Target segment may lead to lack of focus in Brand strategy
2. Stiff Competition faced by foreign brands, particularly in the premium segment
Competition
Competitors
1. Timex
2. Casio
3. Citizen

10. HMT-What it did wrong, and How it
could’ve been done better (1)
• HMT had the overall market share of 26% during 1997-
98 and it dropped to 14% during 2001-02.
• Out of this, HMT still had 70% market share of
Mechanical watches during 1997-98,which increased to
94% during 2001-02.
• Company performed poor in Quartz market, it had
market share of 8% for five year during 1998-2002.
• This shows how the sale of mechanical watches
dropped drastically. The value curve for Mechanical
watches kept falling and there was no driving force
from HMT to oppose this.

11. 2. HMT remained into losses for last 5 years. Though it launched many
watches to gain the market share into the quartz market, it could not capitalize
on the success of these watches due to many reasons.
3. Some of the decisions made by HMT were unreasonable given the
production ability of the company itself. To meet requirements of the
quartz market, company outsourced the production of various visual
parts (dial, cases etc.) [Outsourced from Tennmax India Ltd.]. It got
large these parts in large volume from this organization, while its
own production capacity of dials and cases remained underutilized at
34% and 47% respectively.
4. HMT started outsourcing the watch manufacturing to other firms.
Suspensions of services from these firms lead the problem of
stopping them to use the HMT logo in their production. HMT also
started to employ vendors with quite less experience and less
technical expertise. Outsourcing led spurious watches in the market.
HMT failed to act immediately and took 15 months to take follow up
action in July 2002.