The Story of Titan Made By: Hiteshwar Jindal Rachit Jain Utkarsh Verma Megha Gupta Salman Ali
The Brand Titan • Titan Industries is the worlds fifth largest • Established in 1984, has emerged as a watch, eyewear & jewellery brand • Customer base of 80 million, add 1.2 million customers every year Major Highlights of its Success • 247 exclusive ‘World of Titan’ showrooms in 110 cities • 12000 outlets in 2500+ cities • International presence in 30 countries • Manufactures 8 million. Watches, 1.5 lac pieces of jewellery • 700 after sales service centers • A world−class design studio (R&D)that constantly invents new trends in wrist watches
Vision To be a world-class, innovative and progressive organization and to build India’s most desirable brands.
The Watch Market & Industry in India• India is an under-penetrated market for watches – only 27 % of Indians own a watch• Total estimated market in 2008-09 Volume - 20 Mn units & Value: Rs 1600 Crores• Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume)• Market has been split into: Low end, Mass market, Premium, Luxury• Organised Sector = 46%
The Competition in India• Titan sells around 7-8 million watches annually• Timex sells under 1.2 million watches• Other Brands (all put together sell less than 0.5 million watches)• The Japanese – Citizen, Casio, have been present, while Seiko has not made any significant moves in India.• The Swiss – Rolex, Omega, Rado, Tissot, Tag, Longines, Cartier, Ebel and a host of others• The fashion brands – Esprit, Giordano, Tommy Hilfiger, Calvin Klien, Fossil, Swatch and many more have recently entered the Indian market
Watch Market Map Formal / Classic Omega,Rado, L ongines Raymond Weil Tissot NebulaSonata,HMT, TITAN CitizenMaxima XYLYS PriceRs 500 1000 2000 4000 5000 10000 30,000 + Timex Espirit, Swatch Fossil Giordano, DKNY, Fastrack Carrera Tag Heuer Tommy Hilfiger Hugo Boss C Dior Fashion/Sporty
USPAn Indian Company Offering International Quality
Mass marketing (undifferentiated marketing):offering the same product to theentire consumer population
Breaking the Rules• Mechanical technology was the norm - Quartz had not really taken off in India. Titan built its line based on quartz• Styling was basic - This was a constraint imposed by technology. Titan decided to make style a table-stake.• Choice was limited - You had 200 models to pick from, that was it. Titan decided to inundate consumers with a wide choice in style, functions and price. The initial range was 350 models.• Shops were dark, dingy and uninteresting - no importance given to presentation. Titan brought in the concept of retailing in watches.• Advertising was expenditure - Titan saw this as a vital investment. Right from Day 1, Titan invested significantly in advertising.
Making the Rules• ‘If can’t be first Be Better’ – they used aggressive advertising to make the consumers believe about their superior quality• Essentially positioned as a premium brand• J.V. with Timex to cover the lower segment• Targeted gray market and not the HMT• Differentiation• Increased buyer value• Build upon The TATA name though never using to promote itself but neither hide it.• Decided to be the Shaper and not adapter
Customer RelationsManagement • Titan has given a headway in CRM • Implemented no. of small, yet significant measures • Watch Care Centre’s • Receptionist – Local Language • Posh showrooms • Late working hours • No LunchTime • 24 Hrs. Voice mail • Also, Home Delivery • Incresed Consumer Loyalty And Brand Awareness
Product OfferingsYear Brand Target Symbolisim1989 Aqura Youngsters Affordable1992 Raga Women Ethnic Range1993 Insignia High end Exclusivity1994 PSI 2000 Adventurous Sporty1996 Dash Kids Colourful Range1997 Sonata Budget Conscious Affordable,Quality1998 Fastrack Youth Trendy1999 Nebula Affluent Luxury Watches2001 Steel Young Executives Smart, Contemporary2008 Octane High End Unique, Fascinating
Our businesses B2C businesses: Products B2C businesses: RetailPremium 2 stores 1 store 2,700 sq ft 6,700 sq ftMid- 273 stores 2,50,000 sq ft 77 storespremium 115 stores 68,000 sq ft Fastrack 2,25,000 sq ft accessories 7 stores,3500 sq ftMass 30 stores 48,000 sq ft Watches Jewellery Others Watches Jewellery Others + B2B businesses: PED and MBA
Why HMT lost its leadership?• Not responding to change• Being a PSU didn’t helped the company either• Mere 18% of the High Margin Quartz Segment
Strengths• The quality of watches is impressive.• Innovation is core to its strategy.• Visual Merchandizing has been Titan’s strength ever since its inception.• Good retail network by “WORLD OF TITAN”• Excellent customer service.
Weaknesses• Rural India does not form a substantial part of customer base.• Kids are fascinated with mobile phones rather than watches and incidentally, they show the time.
Opportunities• Only 35% (approx) of Indian population possesses watches.• Watches positioned as a fashion wear rather than just utility products.• Huge market in the exchange business.• Rural market may be tapped
Threats• Chinese Watches• Big Multinationals• Unorganized Sector/Grey Market• Fashion Trends keeps on changing
Promotional Plan• Titan Positions the Generic Device-Watch-As an Ornament• Distribution and Promotion Further Strengthened• Always remember the USP• Don’t neglect Public Relations
The Road Ahead…• A Marketing War…• Defensive Strategies to be used: • Courage To Attack Yourself • Strong Competitive Moves Should Always Be Blocked