THE WATCH INDUSTRY

The story of the watch in India goes back a long way to 1957. Pandit Jawaharlal
Nehru, during his visit to Japan, received a watch as a gift inspiring him to bring
watches closer home in his country. This dream became a reality in 1961 when
Pandit Jawaharlal Nehru commissioned the first watch factory in India in 1961. This
was the watch division of HMT Ltd.
Citizen, the popular Japanese manufacturer, evinced interest to train select Indian
people at their watch manufacturing plant in Japan. The year 1962 saw the
manufacture of the first component and then began the slow but steady growth of
watch manufacture in the country. The first watch model manufactured by HMT was
the Janata model, which exists even today, was gifted by Pandit Nehru to the senior
most employee of the company. The next 10 years saw the Indian-made watches
carve a niche for themselves in the market. 15000 to 20000 mechanical watches
were made every month.
Smuggling was on a rise during the 1970s and the 80s period. To counter this the
watch manufacturing activities were beefed up. An assembly plant was set up and
the concept of a mother plant with other units in various states was pioneered.
The early 80s was a period of technological revolution with drastic changes in tastes
and preferences. The integrated chip was invented in the US and digitals were in
demand and LED watches flooded the market.
Japanese companies took over the manufacturing of LCD for digital watches. Quartz
technology had picked up and there was a shift in focus from mechanical to quartz
watches.1987 saw the establishment of Titan watches, which was formed by the
Tatas and TIDCO (Tamil Nadu Industrial Development Corporation). The Tatas took
two decisions- that they will manufacture only quartz (analog and digital) and not
mechanicals, and they would set up a state of the art plant to manufacture watches
in a wide variety of designs and prices.
Today the Indian market requirement for watches is well over 20 million watches per
year. Majority of the demand is generated by the sub-Rs. 1000 segment.
Liberalization has brought with it a host of brands for the Indian market, viz. Piget,

Christian Dior, omega, Raymond Weil, Rolex and Tissot. Indian companies are now
among the few set ups in the world those are capable of manufacturing and
integrating all parts of a watch. The industry growth rate is close to 8%. With the
penetration level of 20 pieces per 1000, the Indian market presents an ocean of
opportunity and potential for watchmakers. The new exim policy announced on 31 st
march 1999 removed all quantitative restrictions on import of fully assembled
watches a full three years ahead of commitment made to the WTO. This will lead to
significant upheavals in watch industry and the trade. Most affected will be the
watch makes with significant idle capacity, small or weak brands and host of
components suppliers to them. Least affected will be the players whose sales
exceed manufacturing capacity and who have both strong brands and strong
distribution.

SWOT Analysis of TITAN

A. Strength:
1. Style: Titan first introduced the style concept in India and
projected the watch as a fashion accessory. Now a days style is a very
much evident factor among the youth. And there is a craze for stylish
wristwatch. So, Titan makes the peoples life more glorious by making
stylish wristwatch.
2. Models:

As Titan offers the best and the biggest range to

customer to choose the watch of their choice with an affordable price.

It offers about 14 different names with about 1000plus different
varieties with a watch for literally everyone.
3. Exclusive products: Today Titan holds the pride for say that its
products both within the country and internationally running in battle
position. Its EDGE the slimmest watch in the world position.

4. Contribution of owned brands and retail. The profit is accounted

by being in the retail space which is booming.
5. Watches

are

available

with

popular

functions

like

dates,

multifunction and chronographic.

6. Guarantee/warranty

B. Weaknesses
1. Pricing: the average price of Titan in mid-price segment is very
high than the other competitor. Average price for Titan is Rs.1100
while the price for HMT is Rs.550. In the mid-price segment the
company is not performing up to the mark due to the lack of choice of
consumers.
2. Market share: As the average price of Titan wristwatch is far
more than the other competitor, Titan has less market share. The
market is more demonstrate by middle class people and for them Titan
is quite costly. Among 75% market share in mid-segment. Titan market
share is between 18-20% which is far lower than HMT and Maxima.
3. Globalized: As the company is Indian based which leads it to the
strength, where as it is the weakness also because the company not
sufficiently globalized.

C. Opportunities

1. Seasonality: At the time of festival, like Diwali Titan promotes

Nebula, Bandhan because there is demand for the products.
- Gold watches and pairs are the like as a wedding occasion.
-The fast track brand is promoted in month of June-August when
schools and colleges re-open.
2. Gifting concept: Titan started as a brand which was associated with
gifting and relation. The fight concept sells well for people have come
to associate Titan with lovecare and makes emotion run high.
3. Exchanging offer: The Titan stores offer exchange offer of any old
watch, of any make, in any condition functional or otherwise and
receive a flat discount of 25% on their purchase of a brand new, stylish
and technologically advanced watch from Titan.
D. Threats
1. Competitor: As we know that lots of Foreign brands are entering in
our country with their branded watches. As the removal of quantitative
restrictions on import watches leads to threat to titan.
2. Premium segment: As in premium segment Titan is getting threats
from reputed international brand such as Espirit, Swatch and Citizen.
3. Mobile: Now a days people can get the time and the other feature in
mobile phone. So, the need of wristwatch is in decreasing trend. People can
talk and see the time in a cell phone and some people think that there is no
need of wristwatch.

Marketing Objectives:
Titan industries in watch holds 70% in Domestic level and 60% in Share in organized sector
market.
Companies the marketing objectives is to increase in market share by 5% .
Before implementing the of marketing strategies we must have to focus on certain things ,which
include the BCG Matrix representation.
Titan industries has registered an Income of Rs.1,104.85 crore as compared to previous year
which was Rs 7,25.11. In all the income the Titan industry had contributed Rs.3,03.45 crore
Here we are considering the different watches as in different segment according to its
performance as well as the market share.

(INFINITY):

As the Titan launched a 4 feet tall watch Replica created by acclaimed sculptor Artist Mr.Arun
Verma .
The replica was launched on 13th August 2008 in New Delhi.
The INFINITY this unique 4 feet tall watch weight around 70 kgs with solid circumfarece of 8
feet and width of 30 inches. This watch contains 800 dials and 1800 straps.

TITAN -WWF:
The titan- wwf collection is inspired from six species namely the Tiger, Indian Rahino Gnagetic
river Dolphin ,Red Panda ,Whale shark and Oliver Ridley Turtle.
Earlier they had launched Heritage collection about a year back based on beautiful monument of
India including The Taj-Mahal, Lakshmi Vials Place, Jharokha, Konark ,Ajanta. As it is the new
collection it requires more investment for Tiatn-wwf as the market growth is also high there.
It include the watches namely REGALIA, EDGE and NEBULA.

Cash Cow:
It basically include the watches Fast Track, Exacta, pectra for the titan. As in this segment these
watches are playing important role so it require certain amount of money which will help it out
to sustain into the market as well help in liquidity.

Marketing Mix:
Price:
As achieve our marketing our marketing objectives, we can do some change in the pricing .
The main consideration will be in changing price are followings.
A. Survival:
In case of some of the watches titan prices them according to the features .The Exacta is a
simple steel watch priced at Rs.600-1,100. As the company also deals with Spectra, Raga
through pricing policy.
B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore by
pricing Sonata at 350 onwards with guarantee.

Titan prices its world watches which compared equal to an international players like
Calvin Klien where a customer pays 4 times as value of the world watch, therefore market with
low prices to international players to gain market share.
C. Market Skimming: In Indian watch industry there is no one offering pure gold
watches, watches in pair, jewellery watches. Here Titan offers there product with the Indian
touch in its design, the product, the love.

Product:
Quality and leadership are the two main terms for the Titan. As to achieve the marketing
objectives this aspects should also be considered.
A. Product line: To increase the sales, the difference in the prices of the watches are
justified by the features.
B. Product pyramid: Portfolio of Titans product is of 3 distinct price-range that can be
defined in general, as Popular, Mid, and Premium. At the popular segment, the emphasis is on in
volumes but not in margins. At the premium segment, the emphasis is on profits and image but
not in volumes. Obviously, company giving more emphasis at the top of the pyramid as profits at
the top of the pyramid is very high. This pyramid guided the strategy of Titan.
C. Product strategy: Titan was first focused only on the premium segment of the watch
market. As per the product strategy they took, Titan moved in to the mass market for watches. To
widen base, Titan created new segments and increasingly focusing on segments individually. In
the past few years Titan has took a lot of initiatives to focused on specific segments.
both

D. Product Quality: Quality and leadership are synonymous to Titan. It seek to achieve
through
their
value
for
products
compared
to
their
prices.

Promotion:
Promotional pricing:
A. Marketing pricing: As by opening new shops such as the world of Titan buy
directly from the dealer and hence the element of middleman is not there.
Here the retailer in this category buys watches for 17-18% lesser than MRP and hence they are
able to get the 17% profit margin on sales.
It is managing to successfully convince to the customer of the perceived value of WORLD
WATCH using hoarding all around the city, increasing buyer image, trust worthiness,
innovation, differentiation, value for the product.

Price discount and allowances: Every year Titan comes with a price discount sale on the MRP
of the watches. The allowances varies from one segment to another.
B. Creative advertising: Titan introduces a contest on cartoon network in india.com
which invites children to use creativity and design watch.
The prize winning design was launched as a new watch in summer 2002 collection .
Type of advertising: Titan believes in making its ads clean, well made, touch on emotional
chord. As the company is using celebrities or superstars that is Amir Khan for the Titan watches.
As here we can say that a female actress would be more effective for the promotional purpose. It
can be Katrina Kaif, as now she is one of the popular actress in Bollywood.
C. Promotion on occasion: Titan is one of the company which formally believes in the
policy of promotion the product based on the occasions.

Place:
Keeping in mind about the young trendy and fashionable consumers, Titan distribute its product
and set up world of titan in different region. The consumers life style in India, especially in
urban area(because the turnover in urban area is 210 million, while the turnover in rural area is
90 million) plays a significant role in the success of Titan.
A.Time Zone: Titan Industries brings together the countrys leading watch brands under one
roof, providing the customer with variety in brands, looks and price ranges and also efficient
after-sales service. These 1142 Time Zones located across 89 towns which offer its customer the
complete watch shopping experience.
B.Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices. By doing
these it offering fabulous value for money with the same warranty as a regular full-priced watch
enjoy. However these shops would not be placed in the main locations and not working as a
normal shops. This is to make the customer go to the shop rather than the shop calling the
customer and hence the locations are not very suitable for shopping.

Marketing Implementations:
Marketing plan basically implemented on the basis of market segmentation .
We have gone through the target market segment which basically include

 High income class

Middle income class
Lower income class

The marketing mix is the part of marketing strategies ,which help to the company to match the
needs of the consumer as well as the need of company, because we know that MARKETING
IS THE SOCITAL PROCESS WHICH HELP IN FULLFILLMENT OF THE NEED
,DEMAND OF THE CONSUMER AT A PROFIT.
Implementation is an integral part of strategy. It make sense when it is implemented into Indian
jewellery market it saw an opportunity for an organized sector. The customer was moving
towards branded goods in other segments. Titan did the process of creating brands in the minds
of customer.

Budget and control:

It is very important to make a control on Budget to reduce the operating cost which we can
reduce to certain amount by the following ways.
Retailing:
Titan bring in the concept of retailing into the watch market ,which will really help in making
the Direct relation with customer. This will help in reducing the cost of intermediaries.
Advertisements cost:
As for reducing the cost of companies we can take advertisement into consideration. We can
reduce the TV ads cost by reducing the duration of advertisement