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7/31/2019 brandaudittitan-111201005711-phpapp02

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Great Lakes Institute of Management

Section B Group 13 Page 1

A BRAND AUDIT PROJECT

ONTITAN

FINAL REPORT

Submitted by:

Section B Group 13

Group Members:

Abhishek Palo (FT12403)

Himanshu Yadav (FT12431)

P Gouthem Karthik (FT12325)

S Kesavan (FT12224)

Srinivasrao Dhenuvukonda (FT12467)


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Table of Contents

History .................................................................................................................................. 3

Corporate information ........................................................................................................... 4

Product Related Attributes .................................................................................................... 4

Brand portfolio....................................................................................................................... 6

Communication, pricing and distribution ................................................................................ 6

Customer Knowledge ............................................................................................................ 7

Sources of Brand Equity ....................................................................................................... 8

CBBE Model for Titan Watches ............................................................................................. 9

TITAN in various Brand Ratings .......................................................................................... 10

TITANs Brands Architecture.............................................................................................. 11

TITANs Brand Hierarchy Evaluation ................................................................................... 11

TITANs fit in a broader brand portfolio ................................................................................ 12

TITANs Growth strategy Assessment ................................................................................. 12

Brand Awareness ................................................................................................................ 14

Brand Attitude ..................................................................................................................... 15

Attitude- Product ................................................................................................................. 16

Level of Desire for the Brand ............................................................................................... 17

Behavioural Tendencies ...................................................................................................... 18

Recommendations .............................................................................................................. 22

References ......................................................................................................................... 23


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History

With presence in over 4 continents and 40 countries,$ 1.46 billion company, Titan is the

worlds fifth largest and Indias largest wrist watch manufacturer. Since its inception as JV

between Tata group and TIDCO in 1984, the company has grown to develop and offer Titan,

Octane, Regalia, Fastrack, Nebula, Raga Xylys brands in the wrist watch market and has

extended to jewellery and accessories market through the brand Tanishq in 1995 and more

recently has entered into eye wear by launching eye gear sunglasses and prescription

sunglasses. As market leaders with over 60% market share in domestic organized watch

markets, Titan has recently claimed to have manufactured the worlds slimmest watch

Titan Edge through devotion to extensive R&D activities.

Titan had set up its first plant for the manufacture of analog electronic watches in the state

industries promotion corporation of Tamil Nadu at Hosur in the year 1984 and went on to get

into an collaboration agreement with France Ebauches for technical documentation and

assistance in procurement of equipment and materials. In the year 1991 a joint venture

Company along with Economic Development Council of Goa, Daman & Diu Ltd., in the name

of Titan Time Products, Ltd., was set up at Goa, for the manufacture of Electronic Circuit

Blocks. The name of the Company was changed from Titan Watches, Ltd. to Titan Industries

Ltd. in the year 1993, in view of the fact that the Company's products consisted of not only

watches but also jewellery. Since then the company has consistently captured new markets

and thrown out many existing players to capture market leadership in the domestic market

and markets abroad.


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Corporate information

Some key changes in the history of corporate professionals profile include the induction of

Mr Jeyakodi as a director of the company in 2002 followed by resignation of Mr. Jacob

Curien in 2003. However the management was a given a boost by the appointment of Mr.

Harish Bhatt as Chief operating officer of watches and accessories division in the year 2006

followed by induction and then resignation of Mr. Sunil Palliwal as the board of director of

the company in 2007. However the following is the brief list of senior management team of

the Titan Industries as of 2011.

Name Designation

Susan Mathew Chairman / Chair Person

N Sundaradevan Director

Ishaat Hussain Director

T K Balaji Director

Vinita Bali Director

R Poornalingam Director

Name Designation

Bhaskar Bhat Managing Director

V Parthasarathy Director

N N Tata Director

C G Krishnadas Nair Director

Hema Ravichandar Director

Das Narayandas Independent Director

Product Related Attributes

All watches provide the time of day, giving at least the hour and minute, and usually the

second. Most also provide the current date, and often the day of the week as well. However,

many watches also provide a great deal of information beyond the basics of time and date.

Some watches include alarms. Other elaborate and more expensive watches, both pocket

and wrist models also incorporate striking mechanisms or repeater functions, so that the

wearer could learn the time by the sound emanating from the watch. This announcement or

striking feature is an essential characteristic of true clocks and distinguishes such watches

from ordinary timepieces. This feature is available on most digital watches.


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A complicated watch has one or more functions beyond the basic function of displaying the

time and the date; such functionality is called complication. Two popular complications are

the chronograph complication, which is the ability of the watch movement to function as a

stopwatch, and the moon phase complication, which is a display of the lunar phase.

Other more expensive complications include Tourbillon, Perpetual calendar, Minute

repeater, and Equation of time. A truly complicated watch has many of these complications

at once. Some watches can both indicate the direction of Mecca and have alarms that can

be set for all daily prayer requirements. Among watch enthusiasts, complicated watches are

especially collectible. Some watches include a second 12-hour display for UTC (as Pontos

Grand Guichet GMT).

The similar-sounding terms chronograph and chronometer are often confused, although

they mean altogether different things. A chronograph has a stopwatch complication, as

explained above, while a chronometer watch has a high quality mechanical or a thermo-

compensated quartz movement that has been tested and certified to operate within a certain

standard of accuracy by the COSC (Contrle Officiel Suisse des Chronomtres). The

concepts are different but not mutually exclusive; so a watch can be a chronograph, a

chronometer, both, or neither.

Many computerized wristwatches have been developed, but none have had long-term sales

success, because they have awkward user interfaces due to the tiny screens and buttons,

and a short battery life. As miniaturized electronics became cheaper, watches have been

developed containing calculators, tonometer, barometers, altimeters, a compass using both

hands to show the N/S direction, video games, digital cameras, key drives, GPS receivers

and cellular phones. In the early 1980s Seiko marketed a watch with a television in it. Such

watches have also had the reputation as unsightly and thus mainly geek toys. Several

companies have however attempted to develop a computer contained in a wristwatch.

Braille watches have analogue displays with raised bumps around the face to allow blind

users to tell the time. Their digital equivalents use synthesised speech to speak the time on

command.

Some key unique features of Titan are:

1) Distinct watches in Gold and Leather

2) Stylish watches in Gold and Precious metals

3) Contemporary watches in stainless steel to withstand rigors of daily life


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Distribution

The company has over 317 exclusive World of Titan' showrooms and over 50 Fastrack

stores. It also has a large network of over 650 after-sales-service centres.

Customer Knowledge

TITAN has revolutionized the watch market by making quartz its watch and is the

unquestioned leader in the segment. Many consumers brand associations for TITAN were

simple and stylish, Elegant, High Quality. The mental map is given below for the TITAN

watches.

Image:Time

Amazing DesignElegantSimple and StylishTotally Inspiring, Talismanic, Amazing andNiceRemember the titans movieWatchPower of TIMEDistinct sound of their advertisementsTITANSGreek GOD

Performance:Ruggedness

Durability

Sports:TrendyAdvanced FeaturesDigital

People:High-ClassFashionStyle

Negative

People

Performance

TITAN

Sports

Image


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Brand Associations: By being associated with Amir Khan, M.S. Dhoni, Rani Mukherjee it

has clearly communicated that this watch is the choice of Leaders.

CBBE Model for Titan Watches

In the CBBE model, Titan is undoubtedly in the Resonance stage. People used Titan

watches over time and they seem quite satisfied and happy with their experience, which

explains the repeat purchases. Titan as a brand is extremely strong and also has delivered

Wrist Watches

Pocket Watches

Reliable, Sturdy,

Long lasting or durable,

Chronographs, alarms,

Available in diff prices

Stylish and trendy,

No. of models, Colours,

Segmented approach,

Huge no of outlets

High Quality,

Trustworthy,

Superior, likeable

Pride,

Status,

Social Approval

Loyalty,

Attachment,

Sense of community

Brand Response

(What about you?)

Brand Meaning

(What are you?)

Brand Identity

(Who are you?)

Resonance

Judgement

Performance

Brand Salience

Feelings

Imagery

Brand Loyalty

(What about you & me?)


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its promise over the years. So, there is a sense of satisfaction/accomplishment when the

product is used, which in turn means Titan has connected extremely well with its target

audience through all its brands. Customers feel attached to Titan watches and hence exhibit

great loyalty towards it.

TITAN in various Brand Ratings

In 2001, Indian consumers rated Titan as Most Admired Brand in India in a first ever

survey done by Brand Equity.

In 2011, TITAN is ranked 73rd in Economic Times Brand Equity Indias Most Trusted

Brands.

According to the Brand Trust Report, India Study, 2011, Titan is at no 10 among the

total of 16000 brands studied in the report. Titan brand won the Most Valuable Brand in the State award at the IIPM & The

Sunday Times STATE EXCELLENCE AWARD

Both Titan and Sonata feature in the Top 100 Brands-2009 in the Annual Survey

conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase

their rank to 86. Titan is ranked number 1 in the consumer durables category.


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TITANs Brands Architecture

Brand architecture goes beyond the visual/graphic naming relationship of brands and sub-

brands. It is about the overall experience created for your customer segments.

The Titan brand architecture comprises of several sub-brands:

Titan Edge - world's slimmest watch based on the philosophy less is more,

Titan Raga - feminine and sensuous accessory for today's woman,

Nebula - crafted with solid 18k gold and precious stones.

Several other popular collections like Heritage, Aviator, Automatic, Regalia, Obaku, HTSE

also form a part of the Titan portfolio. Generally brand architecture comprises of two major

tiers. The top tier happens to be the corporate brand, TITAN and the second tier comprises

of sub-brands, Nebula, Heritage.

Tier One focus: Companies that develop the corporate or parent brand as the

umbrella for overall products and services.

Tier Two focus: Companies that primarily support their product/service brands.

A New Tier: One of the most innovative solutions is to create a new model that introduces a

new, third tier sitting between the parent and the product/service brands. This tier serves as

a platform for marketing efforts that is valuable from a number of perspectives. In the TITAN

portfolio of high premium watches, there seems to be a mismatch for the Tier twoapproaches. TITAN corporate brand covers the Connoisseur segment watches but at the

same time these brands are on their own. A brand portraying the elegance is missing, which

might help TITAN to attract customers in that segment. TITAN which is basically known for

its product catering to semi premium segments, the high end segment requires more

branding and attention.

TITANs Brand Hierarchy Evaluation

The brand hierarchy of TITAN is apt. The core brand acts as the umbrella brand which

represents the institution as a whole. The sub brand identities of Nebula, Aviator, and

heritage are great and delivered their promise of elegance. The below diagram shows how

the brand has delivered, feeling of elegance and superiority right from the attribute level to


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the highest level,. TITAN as a brand has been very conservative in approach but still has

managed to push itself as a sought after brand in the young generation.

TITANs fit in a broader brand portfolio

The TITAN portfolio owns around 60% of domestic market share in organized watch market.

The TITAN brand has been extended to eye wear, which retails sunglasses under the fast

track brand. It has overall developed a sense of homely and indigenous product which has

mastered the latest technology and offers a wide range of products.

TITANs Growth strategy Assessment

Titan Industries Ltd has posted an increased sales turnover during the third quarter of the

fiscal by 40 per cent from Rs.105.85crore to Rs147.97crore in the current year while the

Something Bigger

Elegant, Feeling

Superior

Functional Benefit

Durable

Emotional End Benefit

Socially Acceptable.

Attributes

Time, Good, Sharp

Colour


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company's profit after tax has gone up by 28 per cent from Rs1.37crore to Rs1.96crore

During the nine month period, Titan's watch sales rose from 31.38 lakh pieces to 36.90 lakh

units marking a growth of 18 per cent, led by brands like Regalia, Raga, Fastback, Sonata

(plastic) and its newly launched Dash labels. The growth has been exceptionally great and is

attributed to the following factors.

The Customer and Market Focus checks how the company determines customer

groups

Strategic Planning criterion examines how the company develops strategic objectives

The Information and Analysis criteria check whether the organisation has key metrics

in place

The Human Resources Focus checks the appraisal system, the work environment

Process management examines the product design, production and delivery process


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H0: Geography is independent of familiarity with brand

HI: Geography is dependent on familiarity with brand

The results from the test gave a p-value (probability) of less than 0.05, which indicates that

there is enough statistical evidence to reject the null hypothesis. Therefore, geography does

have an influence on whether the respondent will be familiar with the brand.

Chi-Square Tests

Value d

Asp. Sig. (2-

sided)

Pearson Chi-

Square

5.033a 4 .004

Likelihood Ratio 5.427 4 .006

N of Valid Cases 248

Brand Attitude

The second brand characteristic that was investigated was Attitude towards the TITAN

brand. Attitudes are usually measured with multi-attribute scales that are suitable for survey

research, such as a Liker scale.

1. Correlation Tests between Geography and Brand Attitude Variables

(Likeability, Quality, Attractive, Desirable & Superior)

Coefficients

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 Constant .240 1.046 .230 .019

Likeability -.381 .341 -.230 -1.116 .021

Quality .698 .267 .483 2.609 .012

Attractive

ness

-.115 .272 -.086 -.421 .076

Desire -.108 .267 -.094 -.407 .460

Superior .354 .285 .265 1.242 .221

a. Dependent Variable: Geography


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2. Correlation Tests between Gender and Brand Attitude Variables (Likeability,

Quality, Attractive, Desirable & Superior).

Variables

Score d Sig.

Step 0 Variables Likeability .639 1 .024

Quality .250 1 .017

Attractiveness .462 1 .550

Desire .436 1 .039

Superior .518 1 .472

Overall Statistics .769 5 .979

Dependent Variable: Gender

Attitude- Product

1. Correlation Tests between Geography and Product Attitude Variables

(Interesting, beneficial, fond of, value for money, exceptional).

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Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta1 (Constant) -.265 1.222 -.217 .029

Interesting .416 .284 .317 1.466 .015

Beneficial .014 .301 .008 .048 .006

Fond of -.396 .245 -.333 -1.612 .015

Value for money .438 .258 .273 1.702 .006

Exceptional .126 .300 .094 .421 .076

a. Dependent Variable: Geography


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The p-value for this test is 0.03, indicating that there is enough statistical evidence to reject

the Null hypothesis. It was found that there is a significant difference between the means of

the various geographic groups.

Whether there is a relationship between Desire for the Brand and Product Usage

A one-way variance test was applied to determine whether there was a difference in the

means

Between those respondents who have used TITAN products and their level of desire for the

Brand. The null hypothesis and alternative hypothesis for this test is:

H0: Desire for the brand is not related to Usage of TITAN products

HI: Desire for the brand is related to Usage of TITAN products

The results of the test yielded a p-value of less than 0.01, which indicates that there is

enough Statistical evidence to reject the null hypothesis. The results indicate that the desire

of those Respondents who have used TITAN products is stronger.

Behavioural Tendencies

The fifth brand characteristic that was investigated was the specific Behavioural

Tendencies with regard to the usage / purchase of Titan products. The information that was

sought included:

Which ethnic group is the majority user of Titan products?

How many respondents have used TITAN products as well as products from category?

Comparison of the three geographic groups that were analysed throughout the study and

identifies which geographic group has the most positive usage behaviour of Titan products.

A chi square test was applied to analyse whether there is a dependence of Geography

(variable 1) on used Titan products (variable 2). The null hypothesis and alternative

hypothesis for this test are:

H0: Geography is independent of product usage

HI: Geography is dependent on product usage


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The results of the test yielded a p-value of 0.046 which indicates that there is enough

statistical evidence to reject the null hypothesis. Therefore, ethnicity does have an influence

on whether the consumer has used any Titan products.

Value Proposition

The sixth, and final, brand characteristic that was investigated was the Value Proposition of

the brand. The information that was sought included:

The ability to determine which ethnic group places the most / least emphasis on functional,

emotional and self-expressive benefits as sought by the brand / products. Only one test was

found to be statistically significant. The result of a one-way analysis of variance test of

geography (variable 1) and functional benefits sought by the using the brand (variable 2).

The null and alternative hypotheses are as follows:

H0:south India =North India=west India=east India=central India

HI: At least one of the means of these populations differs

The p-value for this test is 0.01, indicating that there is enough statistical evidence to reject

the null hypothesis. After the Bonferroni adjustment and the post-hoc test, it was found that

there is a significant difference between the means of the various geographic groups.


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Summary of the Statistically Significant Tests ( = 0.05)

Brand Characteristic Variable1Variable 2

Statistic Test

employed p-value

Brand awareness Geography

Familiarity with

brand

Chi-square

0.004

Brand attitude

Geography Likeability

Linear regression

0.021

Geography Quality 0.012

Geography Attractive 0.076

Geography Desire 0.46

Geography Superior 0.221

Gender Likeability

Logistic regression

0.024

Gender Quality 0.017

Gender Attractive 0.55

Gender Desire 0.039

Gender Superior 0.472

Attitude -product

Geography Interesting

Linear regression

0.015

Geography Beneficial 0.006

Geography Fond of 0.015

Geography

Value for

money0.006

Geography Exceptional 0.076

Income bracket Interesting

Linear regression

0.006

Income bracket Beneficial 0.032

Income bracket Fond of 0.042

Income bracket

Value for

money

0.041

Income bracket Exceptional 0.078

Desirability Geography

Positive

towards the

brand

one way Anova

0.03

Behavioural

Tendencies

Geography

Preference to

the brandone way Anova

0.01

Geography

Loyalty to the

brandone way Anova

0.046

Value preposition

Geography

Emotional

benefitsone way Anova

0.01

Geography

Self-expressive

benefitsone way Anova

0.01


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TITAN- BRAND EQUITY PYRAMID BASED EMPIRICAL RESEARCH


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S ti B G 13 P 23

The company can have tie-ups with schools and colleges across the country and can increase its

market penetration by recommending the educational institutions to offer their products to the new

students. Also the company must try to understand the emerging consumer needs in the young

generation and try to be updated and also some disruptive technological innovation like having a

radio tuner card in a watch, health monitor incorporated in a watch, having a speedometer, digital

camera etc. to stay abreast with the competition and maintain and grow market share.

Titan can extend into new markets like wallets, handbags, clothes etc. before any of its competitors

in this product category would enter and thereby increase its brand equity and develop long term

relationships with its customers.

References

1. http://www.trustadvisory.info/allindia.html

2. http://www.titanworld.com/country/in/the-titan-story

3. http://economictimes.indiatimes.com/topbrands.cms

4. http://www.trustadvisory.info/allindia.html

5. http://www.youtube.com/results?search_query=brand+titan+&aq=f

6. Strategic brand management, third edition, by Kevin lane Keller

7. http://www.infibeam.com/Watches/Titan.xhtml

8. http://www.managementparadise.com/tirthsoni/documents/535/

9. http://www.authorstream.com/Presentation/Hamid403-642094-product-and-brand-

managment/

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