World of Titan Introduction About Titan Industries Ltd.

Titan Industries is the world's fifth largest and India's leading manufacturer of watches. Thecompany has manufactured more than a 100 million watches till date; and has a customer base ofover 80 million. The umbrella brand Titan is one of India's leading watch brands that broughtabout a paradigm shift in the Indian watch market, offering quartz technology with internationalstyling. The company manufactures over 8 million watches per annum and has a customer base of over 80 million. It has manufacturing and assembly operations at Hosur, Dehradun, Roorkee and Baddi in Himachal Pradesh and an ECB plant in Goa. Brand Titan The brand Titan is committed to offering its consumers watches that represent the compass of their imagination. Titan's customers are therefore consistently introduced to exciting new collections, which connect, with various facets of their deeprooted yearnings for selfexpression. The new brand philosophy of Titan, encapsulated in the words "Be More", touches this as well as all other aspects of the brand. The Titan brand architecture comprises several collection and subbrands, each of which is a leader in its segment. Notable among them are: Titan Edge The world's slimmest watch which stands for the philosophy of "less is more"; Titan Raga the feminine and sensuous accessory for today's woman, Nebula crafted in solid 18k gold and precious stones. Several other popular collections like Heritage, Aviator, Regalia, Octane & WWF also form a part of the Titan wardrobe. World of Titan The Titan portfolio has over 60% of the domestic market share in the organized watch market.The company has 247 exclusive showrooms christened World of Titan', making it amongst thelargest chains in its category backed by 700 aftersalesservice centers. The company has a worldclass design studio that constantly invents new trends in wrist watches.

World of Titan

Assortment @ World of Titan Product Assortment based on Type of Merchandize Gents Watches Ladies Watches Pair Unisex Product Assortment based on Category of Merchandize Eye wear Wrist Wear Accessories Product Assortment based on BrandsTitan Titan Edge Titan Steel Titan Raga Titan Regalia Octane Nebula Zoop Fastrack Xylys Sonata Tanishq Tommy Hilfiger Hugo Boss

World of Titan 5Merchandising Policy Principle & Techniques of Merchandising Further Assortment of Fastrack Watches Water Summer Neon Disc Campus Adventure Digital Rockstar XY Tweens Aluminum Eye Gear Summer Bikes Plastic

Rimless Campus Further Classification of Xylys Classic Contemporary Sports Craftsmanship

World of Titan 6Merchandising Policy Principle & Techniques of Merchandising Price Range @ World of Titan < Rs. 500 Sonata, Fastrack Eye Gear Rs. 500 Rs. 1500 Sonata, Fastrack Eye & Wrist Gear Rs. 1500 Rs.3000Fastrack Eye & Wrist Gear, Zoop, Steel Rs. 3000 Rs. 5000 Fastrack, Zoop, Steel, Edge, Octane Rs. 5000 Rs. 10000 Steel, Edge, Raga, Regalia, Nebula, Octane > Rs 10000 Raga, Regalia, Nebula, Xylys, Tommy Hilfiger, Hugo Boss Markup Pricing

Titan goes in for the mark up pricing strategy. The Titan product carries a maximum retail priceon it. Now shops such as the world of titan exclusive showrooms buy directly from the dealerand hence the element of the middleman is not there. A retailer in this category buys the watchfor 17-18% lesser than the MRP and hence he is able to get the 17% profit margin on sales. It isup to the discretion of the retailer to offer any discount on the MRP as it would affect what hegets in return. Perceived Value Pricing Titan has also used the PERCEIVED VALUE PRICING to its advantage. It is managing tosuccessfully convince the customer of the perceived value of the WORLD WATCH usingbillboards and hoardings all around the city, increasing buyers image, trust worthiness,innovation, differentiation, value for the product. The hoardings go about to say theinternational presence of an Indian Watch. Titan has also in the past done so for its steel collection but using Commercial Advertisements. Promotional Pricing There is always a positive relationship between high prices, high quality, and a high advertisingbudget. Titan too demonstrates this feature. People are willing to pay the price for the qualityand titan spends 25 crores a year on advertising its products. This is the highest spending donein the watch industry in India. More so ever with high value and lower prices in case of thesonata, the product is the heart throb in the watch industry.

World of Titan 7Merchandising Policy Principle & Techniques of Merchandising Price Discount & Allowances Titan once a year comes out with a Price discount sale on the MRP of the watches. Now this isentirely based on the stock carried by the company at the year end. Allowances are more on

thecompany to the retailer where the retailer gets a special allowance if the store picks up more thana certain quantity. Warranties & Service Contracts Titan promotes sales by adding a free warranty or service contract to its watches and this isbacked up by the name TATA which is especially needed to convince and march ahead in thelower segment market. Product Line Pricing The differences in the prices of the watches are justified by the features, the style, and thedifferences which makes up each watch. Titan prices all its watches in such a way that itmaximizes the total profit on the total mix. Captive Product Pricing There is a general buzz in the market about titan being more expensive than the rest in terms ofservicing and the parts used by TITAN. Titan watches, the lower end ones are cheap but thestraps and the battery with services is generally expensive.

World of Titan 8Merchandising Policy Principle & Techniques of Merchandising Quality Standards The company brought about a paradigm shift in the Indian watch market, offering quartztechnology with international styling. The Company leveraged its manufacturing competenciesand branched into Precision Engineering Products and Machine Building from 2003. Thecompany's Precision Engineering Division supplies precision components to the avionics and theautomotive industry. It also manufactures dashboard clocks as OEM to car

manufacturers inEurope and America. The division also provides fully integrated Automation solutions. 'World of Titan' showrooms ensures the availability of spares and accessories is critical to ensurethat every watch sold can be quickly and reliably repaired so that Titan's customers remain loyaland satisfied. Titan has a network of spares distributors across the country, and stays connectedusing a web application. In fact, they are able to place approximate orders before the productionbegins, thus helping Titan produce closer to market requirements. If there is excess inventoryafter all the orders are met, it gets released into this system for all prospective buyers. As theconsignments are dispatched, the company's logistics service provider ensures that distributorscan track their consignment online without manual intervention. Brand Offerings World of Titan has all the Titan products such as Titan, Titan Edge, Raga, Steel, Sonata, Regalia. Nebula, Zoop, Fastrack, and Octane. International Brands like Xylys (Swiss watches from Titan), Tommy Hilfiger, & Hugo Boss are sold at World of Titan. Exclusivity World of Titan has in-house brands as well as the international brands. Apart from World of Titan, the Titan products are available at various Multi brand outlets. Fashion Leadership Brand Titan with Raga, Xylys, Fastrack, Octane, Regalia & Nebula can be classified as Middle of Road Fashion. Fashion Leaders in this wrist watch segment are RADO, CASIO, SEIKO, ESPRIT, SWATCH (Tissot), LONGINESS, TAG HEUER.
Retailing Organised retailing is gaining rapid pace in India. We are strongly positioned in this space, with our premier retail chain, the 'World of Titan'. During the year,'World of Titan' grew to 211 stores in 112 cities across the country. The chain was also awarded the 'Retail Brand of the Year' award by the Images Fashion and Retail Forum. A key milestone during the year was the launch of our first flagship store in New Delhi, spanning 2,000 square feet. The large flagship store uses the theme of 'celebration' to create a shopping destination which is at once elegant, stylish, warm and contemporary. An array of value-added services make the flagship store a compelling experience. Yet another key retailing initiative was the launch of Fastrack kiosks, located in malls, to retail Fastrack watches and eyegear to youth. Malls are transforming the retail landscape in urban India, and are also becoming preferred 'hangouts' for youth. We have put in place a focused mall strategy to leverage this modern retailing space. Other key areas of retailing focus during the year included the training, motivation and retention of retail frontline staff; and building strong partnerships with large format departmental stores like Shoppers' Stop, Pantaloons, Central, Lifestyle and Westside as well as emerging hypermarkets and discount stores.