A STUDY IN BRAND SUCCESS: TITAN

Submitted By (Group2): Anupam Saha (011/1) Arvind Ekka (013/1) Hari Deepak M (021/1)

TITAN BRAND OVERVIEW

Joint Venture between Tata Group and TIDCO (Tamil Nadu Industrial Development Corporation) Titan watch division came into existence in 1984 as a joint venture between Tata Group and TIDCO The company has its Corporate Office in Bangalore (Karnataka) and its Manufacturing Facility in Hosur (Karnataka) TIDCO holds 28 percent of the shares and Tata Group holds 25 percent of the shares Public holding in the company is around 28 percent. The rest of the stake is held by foreign institutions, NRIs, mutual funds etc. Titan Industries posted a revenue of US$ 1.46 billion in FY 2010-2011. The projected revenue of Titan Industries in FY2011-FY2012 is US$ 1.83 billion Key People

Founder Xerxes Desai Managing Director Bhaskar Bhat

TITAN - FINANCIALS
FY 2011 (Rs. Crore) Operating Income Cost Of Sales PBT PAT Retained Earnings 6662 6033 601 435 574 FY 2010 (Rs. Crore) 4674 4238 324 256 384 FY 2009 (Rs. Crore) 3881 3535 242 181 326 FY 2008 (Rs. Crore) 3050 2785 197 153 240 FY 2007 (Rs. Crore) 2135 1949 134 97 145

Earnings Per Share rose from 21.16 crores in FY 2007 to 96.96 crores in FY 2011  Current Ratio rose from 1.04 in FY 2007 to 1.29 in FY 2011 Debt Equity ratio reduced from 0.75 in FY 2007 to 0.07 in FY 2011

THE TITAN JOURNEY

Aqur r f w tc s l unched Trendy, colorful, s rt nd ffordable youth lastic watches for the

1989

1992

Raga range of watches launched Ethnic range, targeted at the sophisticated Indian woman

1993

Insignia range of watches launched Distinctive, top-end watches for people seeking exclusivity and status

THE TITAN JOURNEY

PSI sports range watches launched Rugged, sporty, masculine watches with sports features like highprecision chronographs

1994

1996

ash range of watches olorful, cute looking watches targeted at kids

1997

Sonata range of watches was launched Affordable, good-quality watches for the budget conscious

THE TITAN JOURNEY

1998 - Fast track, a cool, trendy, funky range of atches launched for the young-at-heart

1999 Nebula, the solid gold and diamond studded luxury range of atches launched 2001 Steel, a smart contemporary range of atches launched for young orking executives 2008 Unique and Fascinating ranges like Octane, Diva, WWF and Zoop launched

TITAN - VISION

To be a world-class, innovative and progressive organization and to build India s most desired brands

TITAN MISSION STATEMENT

To create wealth for all our stakeholders by building highly successful businesses based on a customer centric approach, and to contribute to the community

TITAN VALUES AND STANDARDS

TITAN S BUSINESSES
Watches

Jewellery

26 countries, Footprint: Middle-East, Asia

Precision Engineering

Prescription Eyewear

TITAN PRODUCT PORTFOLIOS

Titan Eye+: Eye Wear

Tanishq: Jewelry

Titan: Watches

Precision Engineering Division

TITAN MORE FACTS

   

December 1994: Certified under ISO 9001 ISO 14000 certification in 2002 TS 16949 certification in Feb 05 Creative advertising
 

Aamir Effect Catalogue Advertising

   

Emphasis on Innovation, Quality and delivering cutting-edgetechnology All products are indigenously produced Business World: Best Design Award in Lifestyle Product Category Titan Edge: The slimmest commercially available watch in the world (3.5 mm)

KEY PLAYERS IN THE INDUSTRY

INDIAN RANDS
    

F REIGN RANDS
      

HMT (Elegance, Roman) Titan Timex (SLX, Expedition, Chronograph series) Westar (Activ, Profile, rnate) Maxima (Gold, Attiva, Aqua)

Market Share
Others 10%

Cartier Piaget mega Gucci Casio Citizen Tag Heuer

Timex 18% HMT 12%

Titan 60%

TITAN 4P S

PRODUCT
    

Titan Regular Fast Track Focused on youth and trendy fashion segment Sonata Mass Market Xylys Premium Market Some Notable Sub-Brands of Titan are:
 

Titan Edge World s slimmest watch ( less is more ) Titan Raga The feminine and sensuous accessory for today s Indian woman Nebula It is an ultra-luxury watch crafted in solid-gold and precious stones Other notable collections: Wall Street, Heritage, Regalia, Octane, Orion, Diva, Zoop, WWF and Aviator series

PRODUCT LEN TH

PRODUCT LIFECYCLE STA ES

Introduction Stage: WWF, Orion, Zoop, Diva, Octane Growth Stage: Nebula, Insignia, Raga, Regalia, Edge Maturity Stage: Sonata, Fast-Track, Dash Decline Stage: Acura

PLACE
     

Over 311 exclusive World of Titan Showrooms Over 665 retail stores all over India Over 120 Tanishq and Zoya boutiques Jewellery Retail chain Over 29 Gold Plus stores Over 150 Titan Eye+ stores Over 650 after-sale-service-centers

PRICE


Mass Segment (Rs. 350 Rs. 600)

 

Titan Sonata, Aqura and Basics Competitors: HMT Lalit, Chetan, Chetak etc. Titan Zoop Competitors: HMT Somya Titan Fast-Track Competitors: Timex Vista, HMT Sangam Titan Raga, Titan Purple, Titan Orion, Titan Octane , Titan Edge Competitors: HMT Elegance, Timex Indiglo Titan Nebula , Titan Xylys Competitors: Omega, Tissot, Piaget, Longines, HMT Gem

Popular Segment (Rs. 600 Rs. 900)

 

Premium Segment (Rs. 900 Rs. 1500)

 

Super-Premium Segment (Rs. 1500 Rs. 8000)

 

Connoisseur Segment (Rs. 8000 Rs. 1,50,000)

 

WATCH MARKET MAP

Formal / Classic Raga
Sonata (MassSegment) Tissot O ega, Rado, Longines

Nebula
Citizen

XYLYS Price

Rs 500

1000

2000

4000

5000

10000

30,000 +

Timex

Swatch Giordano,

arrera (Tag Heuer)

Octane Fashion/Sporty

PROMOTION


Advertising Media:  Television  Print Media Titan Brand Ambassadors:  Titan Brand: Aamir Khan  Sonata: Mahendra Singh Dhoni  Raga: Rani Mukherjee  Xylys: Rahul Bose Public Relation:  Gift Concept  Promotion on occasions Sales Promotions:  Sponsorship  Seasonality  Promotion through contests  Exchange Offers

TITAN BRAND POSITIONING

  

 

Titan s new concept of Matching Watches to Clothes in its recent commercials Fast Track was initially positioned as Cool Watches From Titan targeting 20-25 year olds Based on the market survey report which concluded that 42% of Fast Track customers belonged to the 15-20 years age category its positioning statement was changed to How Many you have? Fast Track brand positioning statement encourages multiple watch ownage concept Fast Track also launched range of fashion accessories like sunglasses and bags with the intention of becoming a lifestyle brand

TITAN BRAND POSITIONING (CONTD.)

 

  

Titan initially pioneered the concept of Gifting Watches With the new tagline Be More Titan has repositioned its watches as a fashion accessory Titan Aviator It is positioned as For those who love flying Titan Heritage is inspired by cultural/heritage monuments Titan Octane It is positioned as For those who are fascinated by car racing Titan Raga It is positioned as the sensual, luxury range for women

TITAN MUSIC TRACK

   

Titan s music track is an enduring part in its advertisements Segment from Mozart s 25th symphony chosen by Xerxes Desai It is arguably Indian advertising s most memorable track It has been rendered in many innovative alternated versions: Indian Classical, Indian Folk, Operatic, Rock and Funk

PORTERS FIVE FORCES MODEL

Supplier power No Strong Suppliers Lack of bargaining Power Rise of China, Taiwan as lowcost suppliers Barriers to Entry Cluttered market Lack of Differentiation Threat of Substitutes Mobile Phones

Degree of Rivalry Increased number of firms Low switching costs

Buyer Power Price Sensitivity Buyer Preferences

TITAN SWOT ANALYSIS

Strengths
Style Fashion Accessory Quality or Price Positioning Brand Image Market Segments with large potential Presence of popular features like dates, multifunction and chronographs Guarantee / Warranty Schemes

Weaknesses
Main USP is low-end watch Lack of Futuristic vision Lack of Flexible thinking

Opportunities
Sales in India stand at 25 watches per thousand people compared to 250 watched per 1000 people in developed economies Rural Market Exchange Offers

Threats
Reduced Profit Margins - Too many players can dilute the market Threat of low-priced watches from China Mobile Phones

REASONS FOR TITAN S DECLINE

Sales
Sales declining due to emergence of international brands

Image Techn ology

People feel that Titan is a very conservative brand

Change in technology is not being implemented at a rate comparable to other brands

TITAN REPOSITIONING STRATEGIES



  

Tagline and logo changed in 2008 - New Tagline Be More from What s your style Use of Aamir Khan effectively as a brand ambassador in TV commercials Increase Penetration in Tier-3 cities Titan should introduce a new brand in niche market Retain Existing customers Increasing number of service centers and loyalty cards

CONCLUSION


 

Total volume of Indian watch market is around 42 million units out of which only 15 million units are from organized retail players Potential is huge The cricket connection with Mahendra Singh Dhoni As the young workforce of India is rapidly growing, disposable income is rising. Hence Titan should focus on promoting superpremium and connoisseur segments Market Penetration strategy into rural markets for Mass and Popular Segments (eg. Sonata) They have to focus more on developing R&D which will help them in competing with international players like Tag Heuer and Tissot