Guess ?

The Watch Industry

1980s-till date 1970-80s 1950-70s 1950s

Indian Watch Industry

-Setting up HMT in collaboration with Japanese Citizen watch company. - License to other companies e.g. Indo-Swiss, Bifora - LED (Light Emitting Diode) watches gained in popularity & Swiss watch industry declined. -Government approved indigenous watch manufacturer to set up establish capacities. : Indian watch market size is increased from 16.9 million to 24 million watches. - Recessionary pressure adversely affected the watch industry`s performance. -Removed all quantitative restrictions on the import of fully assembled watches by WTO.

Titan Industries is the world's fifth largest and India's leading manufacturer of watches. It has several popular brands in its fold including Heritage, Aviator, Regalia, Octane and WWF


The Titan portfolio has over 60% share in the domestic market


Share in the organized watch market. To ensure a dominant presence in the market, the company has showrooms in every nook and corner of the country that caters to the needs of every segment of the people.


-The company was incorporated on 26th July at Chennai. -An MOU was signed with Casio computer company of Japan to manufacture 2million digital and Ana-digital watches. -The company set up a manufacturing facility at Hosur. -The case plant at Hosur was commissioned. A new range of watches called `Aqura' was launched - Over 150 models were introduced. - The name of the Company was changed with effect from 21st Sept. from Titan Watches, Ltd. to Titan Industries Ltd.

- The Company introduced `Tanishq' range of watches. - introduced new economy range of watches called Sonata and Tanishq's -Titan Industries has announced the launch of Cyber, a range of digital clocks -Titan re-introduces Fastrack range of watches.

Mr. Jeyakodi was appointed as a director of the company. -Mr. Jacob Kurien tenders his resignation to the company. -Mr. Harish Bhatt was being appointed as chief operating officer in watches and accessories division. - Mr. Sunil Palliwal was inducted as additional director in the board of the company.

To be a world-class, innovative and progressive organization and to build Indias most desirable brands.

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

     

Total customer orientation Employee appreciation Performance culture and teamwork Creativity and Innovation Passion for excellence Corporate Citizenship

Innovation Quality Creative Advertising

Aamir Effect Catalogue Advertising

Retail Stores Cutting Edge Technology

 Creation of Edge  Slimmest commercially available watch in the universe.(thickness: 3.5 mm)  Four years of intensive R&D.  Produced indigenously.  Received Best Design Award in Lifestyle Product Category Organized by Business World.

Certified under ISO 9001 in Dec.94 ISO 14000 certification in 2002 TS 16949 certification in Feb 05

Aamir Effect

Created by TVC. TVC introduced in Oct. 2004. Sales soared exponentially. Used effectively to merchandise new models. Newspaper Cuttings.

Catalogue Advertising

10000 Dealers 177 Showrooms

ALL INDIA

2300 Towns 104 Towns

World Of Titan

119
Multi-brand-stores

Time Zones

90 Towns 314 Towns

616 Centers

Service Centers

The Design Studio:

Excellent Watch and Jewellery design. Has international award winning designs to its credit.

Sophisticated Design & Development Centre

Advanced Pro-E workstations and prototyping facility.

Every Ford Mondeo car rolling out of the plant in Genk, Belgium has a Titan Clock.

INTERNATIONAL BUSINESS
One of Indias first companies to market a consumer brand overseas. Now present in 26 countries outside India Among the top 3 brands in some Asian countries Selling 650k watches annually with increasing presence in jewellery. Total export sales of over Rs 100 crores in 2006-07 Ranked No.3 amongst the top Life style Brands in the watches category by Business Today ( Oman) for the third year in a row

Watches
1000
I c m i R. C. no e n s r

919 784 655

800 600 400 200 0

2005-06

2006-07

2007-08

Year

PBT
250
202

PAT
250 200
in R s . C r.

200
in R s. C r.

150 100 50
87

132

150

150
94

100 50

74

0
2005-06 2006-07 2007-08

0
2005-06 2006-07 2007-08

Year Year

Watches
400
328
i R. C. n s r

338

327

300 200 100 0

2005-06 2006-07 2007-08

Year

Market Cap.
5000 4000 3000 2000 1018 1000 0
200203 200304 200405 200506 2006- May-08 07

4400 3530

5300

500 218

Crossed Billion $

Domestic Level

HMT Maxima-quartz Rado Casio

International level

Espirit Swatch Citizen Tag Heuer Seiko Cartier Giordano

Fashion Houses

DKNY Gucci Adidas Nike Bvlgary

Competitive factors Technological factors Social factor Economic factors

Michael Porter Model

Product type
 

convenience specialty Market segmentation Based on user category Competitive prices

Segmentation of TITAN Watch

  

Edge Raga Octane Zoop WWF Heritage Orion Nebula Sonata Exacta Titan Bandhan watches Spectra Dash Regalia Fastrack Royale Classique xylus

Introduction : WWF, Orion, Zoop, Diva, Octane Growth: Nebula, Insignia, Raga, Royal, Regalia, Edge etc

Maturity: Sonata, Fastrack, Dash

Decline: Aqura

World of Titan Showrooms Time Zone Traditional Outlets Non Traditional Outlets

TITAN PRICING
Pricing Objectives 1. Survival (i.e. Titan Exacta) 2. Market share (i.e. Titan Sonata) 3. Market skimming (i.e. Titan Nebula) 4. Product quality Pricing method

1. Product line pricing 2. Promotional pricing Application of pricing strategy 1. Lower segment 2. 1000 plus segment

Formal / Classic
Raymond Weil Tissot Sonata, HMT, Maxima Omega,Rado, Longines

Nebula XYLYS Price

TITAN

Citizen

Rs 500

1000

2000

4000

5000

10000

30,000 +

Timex Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger

Fashion/Sporty

Tag Heuer Hugo Boss C Dior

PROMOTION:1. Advertising 2. Sales promotion 3. Public relation

Advertising media: Television Print Internet

Titan brand ambassador: Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Rahul Bose

Titan tagline: Be more Fast track tagline: How many you have?

Public relation Gift concept Promotion On Occasions

Sales promotion Sponsorship Seasonality Promotion through Contests

SWOT

STRENGTHS
Watches as a fashion accessory Quality or price positioning Brand image Market segments with large potential: women, youth, children, sportsmen, the budget-conscious and, of course, the big spenders. Customer value and offered after sales service in a showroom environment.

WEAKNESSES
Main USP is low cost watch. Lack of approach futuristic

Lack of flexible thinking

OPPORTUNITIES
Nearly 34 million watches are sold through gray market channels. Currently, sales in India stand at an low number of 25 watches per 1,000 people, compared with 250 watches per 1,000 people in a developed society. Exchanging offer Rural market

THREATS
Too many players will dilute the market & the profit margin Low priced China watches Mobile phones.

Q:

They have reason to be confident.

 

 

The Indian watch market is currently estimated to be around 42 million units, of which only 15 million units are from the organized-retail players Titan leads the pack with a lion's share of around 11 million units across its watch portfolio of four brands: the flagship brand Titan (mid- and premium segments), Sonata (the budget segment), Fast Track (the youth segment) and Xylys (Titan's top-end, Swiss-manufactured brand). "Super Fiber." range is priced below US$10. A Cricket Connection-Mahendra Singh Dhoni hails from the small town of Ranchi.

Conclusion
The opening of the Indian market and the arrival of premium Swiss brands has certainly led to Indian consumers being exposed to global brands, styles and various price levels. To the Indian consumers, the high price of Swiss watches has helped them to realize the value of Indian brands, particularly of Titan, which offers equivalent quality, but at lower prices and with better distribution and service. Titan has shown its differentiation, and customer centric approach which helped them to get the market.