Titan Finals1

8/8/2019 Titan Finals1

1/24


2/24

Acknowledgement

I the students of Kets V. G. Vaze college would sincerely like to

place on record our gratitude towards ourProf.RAJWADE .

For giving me an opportunity to work on this project entitled wrist watch

It was a great experience while collecting information for the

successful completion of this project. Last but not the least I would also like

to thanks all those who have directly or indirectly helped me in making this

project a success.

2


3/24

INDEX

INTRODUCTION.

SEGMENTATION OF INDIAN WATCH.

COMPITATORS.

TITAN THE BOSS OF ALL WATCH.

TITAN AND ITS SUB BRANDS.

MARKET SHARE.

DISTRIBUTION.

PRICING STRATEGY OF PRODUCT.

PROMOTION.

TYPE OF ADVERTISEMENT.

CAHNGES AFFTER GLOBALZATION.

SUGGESATION.

MEDIA PREFERRED.

BUDGET.

CONCLUSION.

3


4/24

Introduction

Wrist Watches form an integral part of the personality of individuals in the

present era. Earlier seen as a luxury item, they are now witnessing a

fundamental change in perception, and are now gaining respect as an

essential utility item. For the watch industry, time seems in its favour what

with the liberalization of the Indian market coupled with the rising

purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector

organizations like Hindustan Machine Tools Ltd. (HMT) and Allwyn (also

famous for its refrigerators once upon a time!), and has now left the pioneers

far behind or nowhere in market by private sector enterprises like Titan,

Sonata, and Timex along with foreign entities jostling for display space in

the smallest of shops selling these products.

In post liberalization India, the market stood to witness intensive

competition between foreign and Indian manufacturers like Timex, Titan,

Movado, Longines, Rado, Rolex, Frderique Constant, Mont Blanc, Swatch,

and many others. Many watch makers have made significant inroads in the

industry and others are in the process of establishing themselves, currently.

Besides this, buyers are extremely choosy about the brand and type of wrist

watches they wear. Being extremely brand conscious, their tastes have

evolved over the years and have gone beyond the realms of durability to

choose in terms of aesthetics and elegance. Thus it is a buyers market with

multitude of designs that have entered and flooded the market place.

4


5/24

The size of the watch market currently is estimated to be around 40 to 45

million pieces annually. The organized sector alone contributes up to 30

percent of this figure, and the rest of the demand is being met by the

unorganized grey sector. This data is significant indeed in view of the socio

economic distribution of the Indian populace. More than 58 percent of the

population is under twenty-five and more than 80 percent of the population

is below 45 years of age.

In dollar terms, the estimated annual market size is around USD 195 million,

despite the fact that the penetration of watches is the lowest, compared

globally. Looking into this fact and the long-standing Indian tradition of

comparing watches with jewellery and other traditional items, many watch

companies are interested in setting up base in India. The average growth in

the size of the market is slated to be around 10 -15 percent per year.

A casual study of the watch market reveals that it is segmented on basis of

multiple proportions such as price, benefits and types of watches. The price

of the watches is a major motive in the minds of the customer. Accordingly,

three segments can be identified here, namely low priced, medium priced,

and high priced watches.

The lower priced segment consists of watches priced less than INR 500; the

medium price range consists of watches in the INR 500-1500 range and the

5


6/24

high priced watches come in the INR 1500 upwards range. There are other

higher categories as well such as the premium and luxury range, but they

appeal to only a small category of the watch market in India.

According to a recent study, more than 90 percent of the watches were from

the lower price ranges with international costs being less than 20 euros.

Moreover, around 20 to 25 watches are being sold for every 1000 citizens.

Thus there is enormous potential for growth of the industry in this untapped

segment. Some customers look out for features like fashion appeal,

technology, sophistication and status. Others go for durability, economy and

precision.

Many customers prefer mechanical and automatic watches, while others

prefer quartz watches. Newer segments are also on rise such as ladies

watches, childrens watches and gents watches. Customers usually base

their preferences and buying decisions on a variety of factors like price,

durability, utility, aesthetic appeal and brand name. A combination of all

these points ultimately forms the customers buying decision that translates

into the purchase of a watch.

The retail sector has just begun to boom in India. Since the early 1990s,

Indian customers are relying more on departmental stores and shopping

malls to purchase their wants and needs. This has come as a boon for watch

6


7/24

manufacturers and dealers, who are now looking forward to utilise these new

outlets to reach out to the Indian masses. Watch manufacturers are looking at

a suitable mix to market their products ranging from exclusive retail outlets

to display sections in malls and large departmental stores.

In the end, though India is still considered to be a difficult market to

penetrate, due to reasons like price sensitiveness and its largely unorganized

sector. However, with the right planning and the right partners and

experienced collaborators, it is expected that both international and domestic

watch manufacturers will do well in the Indian markets.

Segmentation of Indian Watch industry

Based on price

Mass (Rs.350-600),

Popular (Rs.600-900),

Premium (Rs.900-1500),

Super-premium (Rs.1500-8000)

Connoisseur segments (above Rs.8000)

Mass Market (Rs 350 - 600):

This segment represents the low end users and the rural market. Basic

characteristic of this market is low margin and high volume. HMT brands in

this price range: Lalit, Chetan , Chetak, Rajat, Kedar, Ravi, Kohinoor and

shakti Titan is with: Basics, Aqura, and Sonata .

7


8/24

Popular Watches (Rs.600-900):

This segment is slightly above the mass market segment. Somya and Tennax

from HMT targets college going men and women who see themselves as

fashionable people. A similar offering, Timex's Mariner addresses the same

profile as HMTs Sowmya but a slightly older age group. It is difficult to

categorize Titan's Royale, Regalia and Classique as premium or popular.

Though they have a premium image they are available at prices less than

Rs.1000.

Premium Watches (Rs.900-1500):

Vista from Timex and Chandan, and Sangam from HMT falls in this

segment. Royal , Regalia etc of Titan can also be considerd under this range.

Super Premium Watches (Rs.1500-8000):

Titans Insignia, Slimline, and Bandhan; HMT's Elegance range, and

Misuni; Timex's Indiglo and Datalink are main brand offered in this market

segment.

Connoiseur's Watches (Above Rs.800):

Titan's Tanishq and HMT's Gem range fall into this category. So do most of

the Swiss watches like Omega, Piaget, Longines, etc. These are bought more

as status symbols and jewelry rather than watches.

8


9/24

COMPETITIVE ANALYSIS:

Titan:

Titan is the worlds sixth largest wrist watch manufacturer and Indias

leading producer in watches under the titan and sonata brand names. The

company was started in 1984 and launched their first product in 1987. It

exports watches to 32 countries around the world. Titan every year

manufactures 8 million watches. They are the major producer of watcher in

India and have the market share of 60%. They have also made the worlds

slimmest watch called EDGE. Their strategy is to move with the trend.

HMT WATCHES

HMT started manufacturing Wrist Watches since 1962 and today we have

four integrated manufacturing units, employing highly skilled work force,

producing over 7 million high quality watches/Watch movements per annum

in hundreds of designs, in Mechanical and Quartz. The technology for the

manufacture of Watch Movements and Watches has been acquired from

Citizen, Japan.

9

hmt

21%

titen

60%

citizen

14%

others

5%


10/24

HMT Watch manufacturing units have ISO-9001 certification.

Our Products conform to absolutely rigid quality standards and are well

accepted in the international market.

We are regularly exporting our Watches/Watch Movements to countries in

the Middle East, South East and Japan.

HMT Watches are Master Pieces in Engineering Excellence and are

designed to give years of trouble free service.

Citizen:

Citizen is the core company of a Japanese global corporate group based in

Tokyo, Japan. The company was originally founded as Shokosha Watch

Research Institute in 1918 and is currently known as the manufacturer of

CINCOM precision lathe machine tools as well as CITIZEN watches. The

trade name originated from a pocket watch CITIZEN sold in 1924. It is one

of the world's largest producers ofwatches.

Other:

There are many other brand which came in to the market but were not

successful. After globlisation there are many brands who came to india like

Rado, omega, tommy and many more but they were not aware abt india

market and were unsuccessfull brands. But some of them joint hands with

indian brands to make their business and are still in market.

10
http://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Watchhttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Corporationhttp://en.wikipedia.org/wiki/Tokyohttp://en.wikipedia.org/wiki/Japanhttp://en.wikipedia.org/wiki/Watch


11/24

Titan the boss of wrist watches

Titan Industries is the world's sixth largest wrist watch manufacturer

and India's leading producer of watches under the Titan and Sonata brandnames. It is a joint venture between one of India's most respected business

organizations, the Tata Group, and the Tamil Nadu Industrial Development

Corporation (TIDCO). Its product portfolio includes watches, clocks,

accessories and jewellery, in both contemporary and traditional designs. It

exports watches to about 32 countries around the world with manufacturing

facilities in Hosur, Dehradun, Goa and manufactures precious jewellery

under the Tanishq brand name, making it India's only national jewellery

brand. It is a subsidiary of the Tata Group.

Titan Industries was established in 1984 as a joint venture between the

Tata Group and the Tamil Nadu Industrial Development Corporation. The

company brought about a paradigm shift in the Indian watch market,

offering quartz technology with international styling, manufactured in astate-of-the-art factory at Hosur, Tamil Nadu. Leveraging its understanding

of different segments in the watch market, the company launched a second

independent watch brand-Sonata, as a value brand to those seeking to buy

functionally styled watches at affordable prices. In addition it focused on the

youth with its third brand Fastrack. It has also premium fashion watches

by acquiring a licence for global brands such as Tommy Hilfiger and Hugo

Boss, while. It has also in its portfolio its first Swiss Made watch brand

Xylys.

In 1995, the company diversified into jewellery under the brand

Tanishq to capitalize on a fragmented market operating with no brands in

11
http://en.wikipedia.org/wiki/Wrist_watchhttp://en.wikipedia.org/wiki/Sonatahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/Hosurhttp://en.wikipedia.org/wiki/Dehradunhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Tanishqhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tata_Grouphttp://en.wikipedia.org/wiki/Wrist_watchhttp://en.wikipedia.org/wiki/Sonatahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/TIDCOhttp://en.wikipedia.org/wiki/Hosurhttp://en.wikipedia.org/wiki/Dehradunhttp://en.wikipedia.org/wiki/Goahttp://en.wikipedia.org/wiki/Tanishqhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Tata_Group


12/24

urban cities. In 2005, the company launched its second Jewellery brand,

Gold Plus, for capitalizing on the opportunity in small towns and rural India.

The company has now diversified into fashion Eyewear by launching

Fastrack Eye-Gear sunglasses, as well as Prescription Eyewear. The

Company leveraged its manufacturing competencies and branched into

Precision Engineering Products and Machine Building from 2003.

Today Titan Industries is India's leading manufacturer of watches and

jewellery employing 3,800 people. Titan and Tanishq are among the most

admired brands in their categories.

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. Its main products are :

Watches : Currently manufactures four main watch brands viz. Titan forthe premium segment, Fastrack focused on the youth and trendy fashion

space, Sonata for the mass market and Xylys for the premium market. The

Titan brand architecture comprises several sub-brands, 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 gold and precious stones and several other collections like

Wall Street, Heritage, Regalia and the Aviator series, all of which form a

part of the Titan wardrobe. Sonata is today India's largest watch selling

brand and is priced between Rs 295/- and Rs 1200/-. The company's first

12


13/24

Swiss Made watch Xylys is for the hi-end connoisseur and new age

achiever. It also markets Tommy Hilfiger watches under a licensing

arrangement and is introducing Hugo Boss. Today, the Titan portfolio has

over 60% of the domestic market share in the organised watch market.

The company has 222 exclusive showrooms christened 'World of Titan',

making it amongst the largest chains in its category. Titan watches are sold

through over 12,000 outlets in over 2,500 cities and internationally in over

30 countries, primarily in the Middle-East and Asia Pacific. Its after-sales-

service is itself a benchmarked operation with a network of 750 service

centres and amongst the world's fastest turnaround times. The company has

a world-class design studio for watches and accessories.

13


14/24

MARKET SHARE In India 70% of the sales in watches come from

the lower segment and hence by pricing the sonata at 350 onwards, backing

it with a TATA guarantee no one can match the value for the price of

Rs.350. Titan prices its world watches which are compared equal to an

international Player Like Calvin Klein where a customer pays about 4 times

a value of the world watch hence penetrating the market with low prices to

international players to gain market share.

The World of Titan - The Exclusive Titan Showroom

We have revolutionized watch retailing in India, by setting up a chain of

high profile stores. The World of Titan is our face in the market, a store

providing an international ambience showcasing our entire range. This

provides the customer with the complete brand experience - making it the

most preferred place to buy the most preferred watch from.

Network

Over a period of 20 years, the chain has grown to 235 showrooms at prime

locations across 113 towns in India. These showrooms have grown along

with the company, both in business and profits, which is testimony to the

success of the chain.

Distribution in India

A key business partner of Titan in the marketplace, is the redistribution

stockist. The distribution channel handles well over 50% of the watch

business of the company. The main focus of this channel is market

penetration and coverage. Currently we have 65 distributors handling well

14


15/24

over 6000 dealers across the country. Titan's growth rate in the marketplace

requires us to appoint new distributors every year. The combined

stockholding and credit to the market is controlled to stay within stipulated

limits. The distributor channel operates independent of all other channels

and reaches out to its own set of distinct dealers.

Worldwide

We distribute through an exclusive distributor in each country, who is

responsible for indenting, distributing, servicing, assisting and providing

marketing support for the brand.

15


16/24

APPLICATION OF THE PRICING STRATEGY IN

PRODUCTS

The main plank of the watch market is in the less-than-Rs.1,000 price

category. Effectively, about 70 per cent of the sales in the watch

industry in India is in this category. None of the foreign brands has a

presence in this category. Only cheap Chinese watches are present in

this bracket and they compete with the unorganized manufacturers,

who are more expensive than them. So, the unorganized sector is

getting hit from the bottom by Chinese products and at the top by the

organized sector brands, such as Sonata.

16


17/24

Changes after globalization

The biggest change that took place in India after globalization is that many

foreign investors came to India to invest their money but hardly any onesurvived. If u see the watch industry then many new branded wrist watch

company came to invest such redo, swatch etc but they could not survive.

The main reason for their frailer is that they didnt understand the Indian

market there was poor marketing research. One more thing was their watch

were of super premium class and as we all know that the huge junk of

population India is mass population (middle class) their product failed. And

this gave Indian investor an opportunity to publish in the market and so titan

made a huge success.

17


18/24

GEN X

Heres introducing the first ever worlds smallest iPod watch with

some unique features to wear on..

You can use this Watch for multi-purpose as an iPod, Watch. It is all

in one-design gadgets and everyone use this iPod in future. Get this watch

and get the experience. This watch has been introduced with all the features

of an iPod, and its time to show people your unique style not with that same

old fashion.

This wristwatch comes with the features of USB connectivity for

software uploads, downloads, 60 gm package that looks and wears like a

standard watch... and yes, it even tells the time.

The Watch is provided with the following specifications:

Sporty Elegant look with different shades to choose from withleather strap.

Mp3: support ACC/mp3.

FM Radio.

Memory: 128MB built in memory (expandable).

USB: for data transfer and recharging.

Bluetooth 2.0.

With stereo Bluetooth headphones.

18


19/24

GEN --- X

19


20/24

Price

GEN X has taken the advantage of being first in the market

and adopts skimming the cream policy where we have charged

exceptionally to an innovative product and before the competitors

come in.

As our watch is the first to enter in the market with such

features theres no fear of the competitors at first. GEN X is the

first to enter it has chosen to charge it in the range of the premium

watches based on price. The strategy that GEN X is following

will be that it would first use the market skimming strategy to enter

into the market.

Our primary aim is to skimming and then penetrating the

mass market immediately and in doing so we generate substantial

sales volume and a large market share.

So GEN X would be charged from Rs. 1150 start.

20


21/24

Market Strategy

As it was rightly quoted in the introduction that out the total

population of India 80% of them are of age below 45 years, so our target

audience are these segment of the market. According to our market strategy

we have targeted the mass market as 80% of the population emerges from

this segment.

As we all know that Indian market segment consists more of Mass

market. So get along with this and to increase our profit, we onlooked upon

the opportunity to target the mass segment of market. As to get into a new

segment of market a product should have something innovative features we

are launching a product, which will make an individual to think, walk, and

also talkMUSICAL.

21


22/24

Promotion

Promotion is one of the important elements of Marketing. In

present with the world economy passing through a recession, the

importance of the consumer has skyrocketed to unprecedented

heights. The consumer has started evaluating each offer minutely

as value for money has gone up. What we find today is a buyers

market. Through promotion the consumers can not only be

persuaded but also given a proper justification of the price charged

and the returns obtained by them.

GEN X will promote its product by using different media

for its advertisement such as:

Television media.

Print media.

Outdoor publicity.

Television commercials showing the products specifications

will be featured on Sport channels, News channels between Ads.

In using print media it will publish the ad in business

magazines, leading newspapers.

In using outdoor advertisement we will put the hoardings on

the highways, malls.

22


23/24

MEDIA PREFERRED

In India the mens dont have enough time to watch television but the

maximum people in India hear reads newspaper every day so I prefer u to

give ads in the leading news papers with some unique features of the watch

in the ads and in the the city like Mumbai there are millions of people who

travel by trains, bus, and taxi. And while they travel they would see the

holdings and think of purchasing the product and also go for magazine ads,

which last for longer time. If we go this means of promotion for our product

then the approximate budget of advertisement is Rs. 10000000.

Newspaper ads: Half page ads.

Times of India cost Rs 43,00,000.

Hindu cost Rs. 24,00,000.

Magazine ads: full page ads.

India today cost Rs. 19,00,000.

Weekly cost Rs. 9,00,000.

Outdoor ads:

Holdings cost for to cities 4,00,000

Total cost for advertising 99,00,000

23


24/24

Conclusion

In the end, though India is still considered to be a difficult market to

penetrate, due to reasons like price sensitiveness and its largely unorganized

sector. However, with the right planning and the right partners and

experienced collaborators, it is expected that both international and domestic

watch manufacturers will do well in the Indian markets.

Documents

Titan Finals1