Titan,Casio and Timex

To Study the Channel Management & Product

Distribution of Titan

Submitted By: (Group # 2)

Krishna Chandran (10024)

Nikunj Patel (10029)

Piyush Kakkar (10030)

Pooja Saxena (10031)

Vishal Roy (10118)

Submitted To:

Prof. Jojo Joy N

SDM IMD, Mysore

Contents Introduction: ....................................................................................................................... 4

Industry ........................................................................................................................... 4

Companies under study ..................................................................................................... 4

Titan ............................................................................................................................ 4

Timex .......................................................................................................................... 4

Casio............................................................................................................................ 5

Objective of the study........................................................................................................... 5

Methodology ....................................................................................................................... 5

Primary method: .............................................................................................................. 5

Secondary Method:........................................................................................................... 6

Titan’s Distribution Channel .................................................................................................. 6

Distribution Channel in Karnataka ...................................................................................... 9

Timex: ............................................................................................................................. 9

Casio: .............................................................................................................................. 9

Outlet visits: .......................................................................................................................10

Layout of the outlets: ..........................................................................................................10

Layout 1: Multibrands outlet.............................................................................................10

Layout 2: World of titan (WOT)..........................................................................................10

Product range: (available in retail outlets)..............................................................................13

TITAN .............................................................................................................................13

TIMEX ............................................................................................................................16

Casio ..............................................................................................................................17

Organizational structure ......................................................................................................18

Credit policy of Titan ...........................................................................................................18

Credit policies for dealers: ................................................................................................18

Types of dealers ...........................................................................................................19

Credit Policy for Retailers:.................................................................................................19

Replacement Policies: ..........................................................................................................19

For the multi brand outlets: ..............................................................................................19

For Exclusive Titan outlets: ...............................................................................................19

Supply of Goods - Lead Time.................................................................................................20

Margins:.............................................................................................................................20

Multi brand outlet: ..........................................................................................................20

World of Titan: ................................................................................................................20

Warranties Being Offered:....................................................................................................20

Display...............................................................................................................................21

Requirements for outlets: ....................................................................................................21

Sales executives Management: .............................................................................................21

Some of their important clients: ........................................................................................22

Feedback and appraisal:.......................................................................................................22

Target customers for Retail Outlets: ......................................................................................23

Promotional Offers & Schemes: ............................................................................................23

Titan: .............................................................................................................................23

Timex: ............................................................................................................................30

Casio: .............................................................................................................................30

Advertisement & Promotion strategy: ...................................................................................30

For multi brand outlets.....................................................................................................30

For World of Titan showrooms ..........................................................................................30

Selection & training of WOT employee: .................................................................................30

Appraisal of WOT stores: ..................................................................................................31

Behaviour Of consumer:.......................................................................................................32

Segmentation .....................................................................................................................33

Positioning .........................................................................................................................34

Gap Identification ...............................................................................................................34

Introduction:

Industry

The Indian watch market is today of 40 million units, out which 60% is in the unorganized

sector in which the maximum number of watches are sold are below Rs.300.Quartz watches

form two thirds of the organized sector and the rest is split between mechanical and digital

watches. Even in the organized sector, three fourth of the sales by volume comes from

watches that are priced below Rs.1000.

Plastic as such is not acceptable to average Indian consumers, especially those from the

small towns and rural areas who regard it as cheap and flimsy. They want toughness-which

translates into a good quality metal model at a reasonable price.

Watch is one of the consumer durables whose replacement rate is very high. The

replacement rate of watch is 33.8%(Source: India market demographics report, 1998).This is

also due to the fact that the estimated scrap rate of wrist watches is 7.8%, which is

applicable after 6 years . So due to high scrap rate, outdated models, and the shift from the

mechanical watches to the quartz watches is causing a very high replacement demand for

watches.

Notwithstanding the presence of global players and the opening up of the market, the

Indian market has always been dominated by a single player. In the past, till the late 80‟s, in

the mechanical era, HMT dominated the market. And after that it has again been the

domination of a single company, Titan. The average growth rate of industry is 10-15% per

year.

Companies under study

Titan

One of the reasons why Titan is always mentioned along TATA i s basically for two reasons.

One to assure international quality. As TATA’s for generations are known for their quality

products and in watch industry quality is something which is beyond compromise. Two to

emphasize on being an Indian brand. .With plethora of foreign brands available in the

country and Titan’s emphasis on being an Indian enables it to overcome the threat. Thus

Titan has identified itself as a brand offering high quality watches at prices significantly

below those of comparable foreign brands. Moreover its tagline “Be More “conveys the

same idea to ask more without compromising on price.

Timex

Timex is has always been known for its technological excellence. The watch is

technologically superior to any other watch brand. Timex is used by the Who is Who of

Celebrities from Bill Clinton to Bill Gates, Terminator to George Bush, Brett Lee to Harsha

Bhogle. Timex brand is also known for its style, multifunctionality and durability. Timex have

the age old positioning of “Technology that keeps you t icking". In India, the brand has

changed the tagline frequently. At one point of time, the tagline was “Time on your side”.

Now the brand comes with the tagline “What next" Technology first was the brand motto.

Along with this the brand is perceived to be stylish and durable.

Casio

Casio has continually progressed the watch making market by developing its skills in the

electronic markets. It was one of the earliest manufacturers of quartz crystal watches, both

digital and analog. It also began selling calculator watches during this time. It was one of the

first manufacturers of watches that could display the time in many different time zones and

of watches with temperature, atmospheric-pressure, altitude, and even GPS position

displays. It always focuses on improvement. It always brings something new for the next

generation..Even its tagline “The Unexpected Extra” reiterates the fact. Today, Casio is

most commonly known for durable, large sized watches. Especially popular are its dual

function (LCD and analog) watches, some of which, called Wave Ceptors, receive radio

signals daily from an atomic clock to keep accurate time. Casio watches are stylish, large

sized and its bands available in different colours that makes it wearable with every apparel

and are a trend in itself.

Objective of the study The study aims…

To study the channel network and management of Titan and its competing

brands Casio and Timex

To study the promotional strategies of these brands and behavior of the end

users

Methodology Collection of data was done by:

1. Primary method

2. Secondary method

Primary method:

1. Visiting exclusive show rooms’ of company (Titan) in Mysore city

2. Visiting multi brand retail outlets in Mysore city.

3. Interviewing the people of the channel.

Secondary Method:

This method was used because of insufficient data from the primary sources. Secondary

data/information collection is proposed from:

1. Company websites as well as other related websites including data collection firms or

agencies

2. Referring available research studies and journals

3. Speaking to company representative through Phone or e-mail.

Titan’s Distribution Channel

Multi-channel retailing is a concept pioneered by Titan in Watch Industry

Titan has pioneered the concept of specialty retailing in the watches business. Organised

retailing did not exist in the late eighties. The concept of exclusive brand stores was almost

non-existent. In a pioneering effort that dramatically altered industry standards, the World

of Titan (WOT) was born.

The company reaches out to its target customers through multiple channels. Various

distribution channels through which the different products and sub-brands of Titan flows is

shown in the following chart

Titan Industries ltd

Institutions CSD WOT Time Zone Direct Dealers Redistributio

n Stockists

Institutional

customers

Defence

Personnel

Indirect

Dealers

Customers

World of Titan Showrooms

Time Zone

Traditional Outlets

Non Traditional Outlet

WOT Time Zone

Location Posh Markets, Malls Various Markets

Ambience As these are located in Posh Markets so the ambience of these stores are made to make

customer feel very relaxed and comfortable. Moreover, showrooms are

designed in such a manner that products are available at eye-level. The colours

used are vibrant so that it creates impulse buying in customers.

Since, they sell products of various brands, their ambience is decent enough. But again these

are not as good as WOT

Channel offering These stores stock

the entire range of Titan, sell select models of Sonata (lower end), Fast Track (sporty and youth end),

Raga(women’s accessory), Oriono and Tommy Hilfiger (licensed brand) watches.

This channel offers special membership to regular customers. This

membership helps customers to avail discounts and different

schemes. Again, this channel offers 5-year extended warranty.

These stores offer

selective range of Titan Products mainly sub-brands –Titan and Sonata. The selective

range here refers to the lower end products of these two brands.

The other offerings such as special membership, extended warranty and

exchange scheme are not available at these stores.

Type of customers Titan targets medium to high profile customers through this channel. The customers

who visit WOT want latest design and check on the availability of the latest

products. People who view watch as fashion accessory visits

these stores. The style-conscious women are also targeted

through these stores.

The target customers are of low to medium profile. The primary target of these stores is the people

who want a good branded product at an affordable price.

They are not style conscious and don’t look for latest designs and

availability.

Customer buying behaviour

The customers look for differentiated product. They take a lot of time in

decision-making while buying. They want to show their

affluence. They want some extra service for which they are

ready to pay premium price.

Here, the customers look for product at best available price.

They do not look for trendy or latest designs but want a quality

product at low price.

Reason for customer

using the particular channel

Customer gets a wide

range of variety to choose from. In WOT they get the latest

designs and trendy products. The customers have a high

class shopping experience

The customers get

branded products at low prices

Distribution Channel in Karnataka

CFA agents are located in 3 cities in the state. It is through these agents, that the WOT

receives its stocks.

Hubli caters to the needs of North Karnataka whereas Tumkur and Bangalore caters to the

needs of South Karnataka.

Distribution is based on the regions.

Chamraj Nagar

Mandya

Mysore

Timex:

The shops we visited got their watches’ consignment (stock) from a distributor in Bangalore named

‘Rashmi Electricals’

Casio:

For Casio the distributor from Bangalore was ‘MODERN MARKETING’

Karnataka

Bangalore Hubli

Tumkur

Same Distributor

No. Of “World of titan”

In Mysore 2 exclusive show rooms are available. No. Of excusive outlets per area are

mentioned above. Apart from these World of titan, Multibrand outlets are also available.

Outlet visits: We visited two kinds of retail outlets:

1. World of Titan – Exclusive outlets for Titan watches are named as ‘World of

titan’ worldwide

Product range: They have Gold plated, silver plated Titan watches, Xylus,

Titan couple watches, Tommy Hilfiger, Zoop eron and Tycoon watches.

Of which Tycoon (embedded with diamonds)and Xylus (which has a

scheme of Free Nokia handset) are for the premium segment customers.

2. Multibrand outlets

Product Range: It had watches for almost all brands including Titan,

Timex, Casio, Fast track, Citizen, Fossil, Maxima, Q&Q)

Layout of the outlets:

Layout 1: Multibrands outlet

Layout 2: World of titan (WOT)

330+ (india)

100 (South India)

30 (Bangalore)

2 (Mysore)

Product range: (available in retail outlets)

TITAN

Titan Raga:

Titan Raga is a range of watches exclusively for women. Titan Raga watches are all about

feeling special, from simple clean modern designs to pieces with intricate dials and motifs,

there is a Raga watch to suit your every mood or occasion.

Under this titan has brands like Titan raga, Titan Raga Flora, Titan Raga Crystal, Titan Raga

Diva, Titan Raga Chocolat etc.

*photos of the available watches in the stores are taken from

company websites.

Titan Obaku:

The Ttan Obaku collection is available for both Men and

Women, catering to both their tastes and style. The Obaku

collection is priced between Rs 3,000 to Rs 7,000.

Titan Purple:

Titan Purple is a brand committed to bring the latest

international fashion. Titan purple is available for men and

women. Collection of watches is priced between Rs. 2,500 and

Rs. 7,000.

Titan Raga Flora Titan Raga Diva Titan Raga Crystal

Titan Orion:

Titan Orion is the collection of watches for men. The collection

comprises 15 styles and priced up to Rs. 8,000

Titan Octane:

Titan Octane watches are multifunction chronographs with an

international touch. There are around 35 styles available in the

Titan Octane range. Octane is priced between Rs. 2,500 to Rs. 7,500.

Titan Automatic:

Titan Automatic is a premium collection that has been crafted

to bring together technology and aesthetics. It is priced

between Rs. 7995 to Rs. 15995 , available in 13 styles.

Titan Edge:

Titan EDGE - The world's thinnest watch – a wrist watch barely

thicker than its strap. These edge watches have a quartz movement

measuring an incredible 1.15mm.

Titan Nebula:

Titan Nebula is available in bracelets for women and pure

gold for men with some diamonds. The collection of these

watches are priced between Rs. 55,000 to Rs. 85,000

Titan Zoop:

The Zoop watches from Titan, has been designed to attract the kids

with its colorful floral patterns and designs. The watches are

available at the price range of Rs 300 to Rs 800. The brand of Zoop

watches has targeted among kids of age between 6 to 10.

Titan Xylys:

Titan Xylys is catering to the premier segment. Collections of the

Xylys is priced between Rs. 16000 to Rs. 125000

Titan Tycoon:

Titan Tycoon is available for men and women. Collection of the

watches starts from Rs. 7000

HTSC Watches are new product of the Titan and both Exclusive show rooms and multibrand

shops have it. Exclusive show rooms of titan i.e. “World of Titan” has all the products

mentioned above in availability but multibrand stores doesn’t have high end watches like

Xylys and Tycoon (They can order it on the customer needs, If any)

TIMEX

Sports luxury

Available for men and women

Expedition

No classification

Chronograph


Retrograde Sports & fitness Fashion


Crystal collection

Available for women

Aura


Empera


and pair

Multibrand outlet sales Timex watches. They have product ranging from Rs. 1000 to Rs.

12000. All the above products are of the brand Timex. Helix is also the brand managed by

the Timex group. In Mysore, Multi brand watch outlets sales both the brands (Timex &

Helix).

We did not find other brands of Timex group in Mysore (In stores we visited).

Other brands of Timex group are Tarun Tahiliani, Salvatore Ferragamo, Versace etc.

Casio

G-sharp Edifice Futurist

Multibrand outlets also sales Casio watches ranging from Rs. 2995 to Rs. 12000

Other than these products sales regular digital watches of Casio

Organizational structure

World of Titan, in Mysore, has one cashier, who looks after the orders and cash. Apart from

him there are other employees like Customer Relation Officer, Service technicians and 7

sales people.

Whereas the multi brand outlets generally had a structure having a head followed by a

manager and 7 other people including – 1 Service technician and 6 sales executives.

Credit policy of Titan

Credit policies for dealers:

World Of Titan

CROs (Ms. Mithra, Mr. Chetan)

Service technicians

7 Sales People

Cashier

If the dealers pays within 45 days

13.5%

Within 30 days 14.5%

Within 7 days 15.5%

According to the target, the dealers will get additional benefits as mentioned below. Target

is set on a yearly basis with a nominal increase of 10% {no of units} over the previous financial year.

If the dealers achieve yearly target

2%

If the dealers achieve

Quarter target

2%

If the dealers achieve monthly target

2%

Types of dealers

365 units or 30 lacs Champion dealer

30 lacs to 45 lacs Winner club

45 lacs to 1 crore Titanium club

Above 1 Crore Titanium club

Credit Policy for Retailers:

The retailers do not enjoy any credit policy and follow a cash and carry policy. However the

WOT outlets and franchise may pay the next day (i.e. max credit period for them is of one

day)

Replacement Policies:

For the multi brand outlets:

They generally return the defaulted pieces to Service Centre and either get the credit notes

or get it replaced.

For Exclusive Titan outlets:

They have two channels –

1. When the stock that they get is defective - they send it back to the CFAs-

2. When the customers returns the watches due to some defects – it is sent to Service

centres

Supply of Goods - Lead Time All the retail outlets, that we visited, mentioned that the lead time is of 2 days. They order,

get billed the same day and receive the order in 2 Days. They get watches, for nearly all

brands, within two days including TITAN, TIMEX and CASIO.

Margins: There was some amount of variation in the margins between the exclusive and multi brand

outlets.

Multi brand outlet:

Margin for Titan: 17% + Yearly slab target based

Margin for Timex: Margin based on MRP

995 – 1,500: 15%

1,500 – 10,000: 17%

Above 10,000: 17%

Margin for Casio: 15% - 20%

World of Titan:

Margin on titan watches: 20%

Warranties Being Offered: For Titan watches: (Same for both multi brand and WOT)

Machinery: 2 Years

Plating and battery: 1year

For Timex watches:

Machinery: 1Year

No Guarantee for color or plating unless it is a gold plated watch.

For Casio watches:

Regular watches: 1 Year

Edifice: 2 Year

(Both only for machinery)

Display

Red and White is the internal official color of World of titan outlets. The internal

architecture and layout is decided by the company. There has been a shift in the interior

design of the Titan outlets recently. Earlier they preferred Horizontal displays and had less

of vertical ones. Now they are stressing more on the vertical displays rather. The shops

which have the previous design, like the ones in Mysore, are undergoing makeovers. Also, to

attract customers, Titan has asked its showrooms to keep products like shades in the front

display window (Combination of eye gears and Wrist gears is the requirement)

Whereas the multi brand outlets face no interference from the company ’s side regarding

the place of display of their watches or anything else. Generally the managers themselves

decide the location and placement of watches. They told us that watches displayed near

POP changes according to occasions. For example - During Festivals like Dussehra, they

preferred to keep Gold plated watches near Point of Purchase (POP) whereas for the rest of

the year they keep silver plated watches near POP area. Also they keep on changing

placement according to the schemes being offered by the various brands. The companies or

watches with highest discounts were kept at the vertical displays at the shops.

Requirements for outlets:

There were no peculiar restrictions or rules for these multi brand outlets. However, a

particular amount, margin, had to be kept with the company. That was the sole

requirement. Even with the policies like number of people employed, floor space etc,

companies did not interfere.

Whereas for the exclusive Titan outlets, the number of people employed was fixed and was

decided by the company.

Sales executives Management:

The World of Titan (WOT) employs 7 Salesmen but they are not allotted any territories.

However they do focus on Institutional selling during Festivals. They were of the view that

during important festivals the factory owners and institutions like Infosys etc. give their

employees some sort of gifts and these sales executives approach them during that period.

However even there there is nothing like Quota, whoever is good at such B to B marketing

goes for the deals.

Some of their important clients:

1. TRITON VALVES: they give their employees gifts on successful completion of 10

years of their service.

2. SDMIMD: Purchased around 1000 watches fro WOT last year.

They provide facilities like

Patented Logo Printing on dial

Back Cover engraving

However the sales executives at the multi brand outlets did not go for any such B to B

marketing. They remain in the shops and look after the visiting clients.

Feedback and appraisal:

For the multi brand outlets one person visits the store weekly. In case of TITAN, the person

represents the Company however for Casio and Timex the supervisor is from the

distributor’s side.

Whereas for WOT a supervisor designated as ‘TIL’ visits the outlet often, checks and

supervises:

Consignee checklist

Walk-In tracks – How many customers visit the store, Number of people

converted to buyers and how many return without purchasing.

Target allotment- Targets are allotted on a monthly basis, however

during special offers the targets are allotted on a daily basis.

Morning Meetings

Blue Book (It is a very important document which generally maintains

records and measures where the store is heading- will they achieve

monthly targets ? etc)

CATCHMENT ANALYSIS (Good/dark): it answers ‘Where are we getting

customers from?’

Other officers visiting WOT include:

Sales officer / Retail executive – Every month

Visual Merchandise Officer – Every Month

Area salesman Officer – Quarterly

Target customers for Retail Outlets:

While discussing with the people at multi brand outlets we learnt that they feel even the

watches under the same umbrella - Fast track and Titan compete with each other. Even

though the positioning is different for both the brands but still they compete for the share

of mind and customers shift from one brand to the other very often.

Marketing campaign {from company’s perspective}

Titan decided that it would change the way watches were marketed in the country. Titan’s

marketing strategy had five main bases:

Product of international quality

Indian designs, competitive prices

Intensive advertising and promotion

Specialized retail shops to control the presentation

Titan’s ambitious marketing program aimed at positioning its watches as high quality

fashionable products available in clean and comfortable surroundings, priced higher than

the other watches. They put in place an integrated marketing mix consisting of attractive

designs, high quality products, sufficient inventory, a logistical support system and a well

timed promotional campaign.

Price discount and allowances: Every year Titan comes with a price discount sale on the MRP

of the watches. The allowances vary from one segment to another.

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.

Promotion on occasion: Titan is one of the companies which formally believes in the policy

of promoting the product based on the occasions

Promotional Offers & Schemes:

Titan:

The manager at the multi brand outlet informed us that they generally offer 20% discount

during festival season. Out of which 15 % is offered by company and 5% is offered by the

outlets themselves, which is not the case with the exclusive Titan outlets since they do not

offer anything more than the discount given by the company itself since they want to tap

their ‘exclusivity’ feature. They said their motive was ‘exclusivity’. However these exclusive

outlets have several other schemes going on at their outlet like:

Gift with purchase

Scratch and win

Revlon Gift vouchers (with ‘Raga’ collection)

They even have tie ups with HUL for Gift hampers/ Cards etc.

Their current ties up is with HP: If a customer purchases a HP laptop, he

is given a TITAN gift card

Similar schemes are present with HDFC, Visa cards etc.

Current promotional offers*:

20% Flat exchange offer:

Under this scheme customer can go to Titan shop and exchange his/her old watch on buying

of a new TITAN watch. Customer will be getting 20 % flat discount on the price of the new

watch he purchase.

Powerplay Watches:

Powerplay watches are basically the models on which Titan offering 40% flat discount.

Powerplay watch scheme is a seasonal scheme.

Get Nokia C3 on Xylys watches:

Xylys is a watch brand of Titan. On purchases of the Xylys watch above Rs. 10000 customer

will get Nokia C3 free.

Free sunglasses on Zoop:

Zoop is the kids watches brand by Titan. Titan offers free sunglasses on Zoop watches of

priced on or above Rs. 395

Get a BlackBerry with Nebula:

On purchase of a Nebula watch worth more than Rs. 50000 Titan offers free BlackBarry

*Scanned copy of the promotional offers ads are attached bellow.

Timex:

Generally offers Slab wise discounts:

Up to 1,000: 10% on purchase price



Casio:

Casio was offering a discount of 10% till last month

Advertisement & Promotion strategy:

For multi brand outlets

They promote their shops by giving various advertisements on daily newspapers

such as star of Mysore and other local newspaper.

Display hoardings in Bangalore – Mysore highway and within the city premises

*They do not get any sort of support from the companies regarding financing etc.

For World of Titan showrooms

Display hoardings at highway, ring road and JP Nagar and in this case expenditure is

sometimes divided equally between the company and franchise

Advertisements in newspapers and leaflets (these expenses are taken up by the

franchise itself, Company is not involved)

During festivals, company comes up with special gift items like last year they had

Deepawali Diyas for the customers. (Cost was borne by the company and the

franchise equally)

Selection & training of WOT employee: Since Timex, Casio were being displayed in multi brand outlets in Mysore and hence these

companies could not interfere in the shop operations. Whereas WOT stores had various

interesting competitions for CROs:

They have ‘FACE OF TITAN’ competition for CROs (From December to March). It happens at

various levels-

Store level – Regional Level – National level

The one who wins national level gets a huge cash amount others get certificates for

participation and other goodies.

There are various levels of training also present for the people working with Titan. Generally

each post like CRO, store Manager etc. have 3 levels of training program.

Training Program for sales Executives include:

Level 1: Improves knowledge about the product

Level 2: Increase knowledge about product, company policies and customers

Level 3: Improves managerial skills

Appraisal of WOT stores:

The appraisal sheet known as ‘Consignee checklist’ is written and signed by 3 key officials:

The TIL (Titan – Company representative), the store manager and the CRO.

The entire criterion of evaluation is divided into seven key parameters:

Exteriors of the showroom:

1. Whether World of Titan signage is in good condition and whether visibility is

good or not?

2. Whether exteriors are free of cobwebs, POP chip offs and seepage?

3. Whether visuals on front glazing are updated or not?

4. Whether entry foyer is neat and has pleasant smell or not?

5. Whether front glass is clean or not?

Interiors of showroom:

1. Whether pleasant smell is there or not?

2. Whether beds are neatly arranged or not?

3. Whether visitor book is well maintained or not?

4. Whether lights are properly working or not?

5. Whether air conditioners are working or not?

6. Whether floor is clean or not?

VERTICALS:

1. Whether each verticals contains specific watches or not?

Flat bed orders:

1. Whether the counter is clean or not?

2. Whether proper Price tags are maintained or not?

3. Whether the cloth of counter is clean or not?

4. Whether the Glass of counter is Clean and scratch free?

Customer Interaction:

1. Whether the Security Guard was present or not?

2. Whether CRO greets the customers properly or not?

3. Whether CRO is cheerful or not?

4. Whether CRO provides enough information about the product?

5. Whether Cashier is entering all the details or not?

6. Whether CRO is bidding farewell to customers or not?

Operations:

1. Whether WALK-INS and CONVERSATION TRACKING is done or not?

2. Whether MORNING MEETINGS are happening or not?

3. Whether CROs are aware of their day’s/month’s target or not?

4. BLUE BOOK has been maintained or not?

5. CATCHMENT TRACKING is done or not?

6. SIGNET Register is being maintained properly or not?

7. EDC and ETP machines properly working or not

EDC – Card swapping machine

ETP – Software use at the shop

8. Whether the outlet is ensuring ‘No manual billing’ policy or not?

Staff:

1. Whether staff is wearing proper uniforms or not?

2. The product knowledge of sales executives and other members is acceptable

or not?

3. All CROs are trained or not?

4. If there are adequate number of CROs or not?

These kind of appraisal of shops happen periodically to maintain proper standards.

Behaviour Of consumer:

There were different views that we got from the multi brand outlets and the exclusive

company outlets on the aspect of behavior of customer. Multi brand owner feels that

loyalty is high amongst customers and the frequency of purchase is low. He also feels that

the people coming to the shops generally refer to watches they have seen other people

wearing or get impressed by the kind of watches worn by the model endorsing the brand.

However the WOT CRO explained that purchasing behavior of customers is changing. People

like to change their watches as often as they replace their mobile phones. He also noted

that though the industry feared obsolescence with the increasing mobile handset sales, but

exactly the opposite happened, the frequency of purchase has increased. He also explained

that the actual back bone of titan watches are the rural people. The amount of rural buying

is much more than the urban buying. The rural people enter store hoping to get HMT, Rado

watches and learn about Titan overtaking HMT and end up buying Titan watches. Though it

is a single purchase but the purchase value is high.

Segmentation After carrying out an in-depth market study, watch industry has three main segments. The

segments were arrived at using benefit and income level as the bases.

a) The first consisted of the high income / elite consumers who were buying a watch as

a fashion accessory not as a mere instrument showing time. They were also willing to

buy a watch on impulse. The price tag did not matter to this segment.

Titan - Titan has ROYALE, AURUM, XYLYS, TYCOON, HERITAGE and NEBULA for this

segment. These products have specialties like European leather, sapphire crystal,

scratch resistant, crafted with 18 ct. solid gold & inlaid with precious stones.

Timex - Timex has AURA H403, FASHION T2M490, GH23, FORMAL JJ02 these

products have speciality like 18 ct solid gold and platinum plating.

Casio - Casio has PROTREK, SGW series, MENs series.

b) The next segment consisted of consumers who preferred some fashion in their

watches but to them price did matter. While they had the capacity to pay the price

required for a good watch, they would not purchase a watch without comparing

various offers in the market.

Titan - Titan has RAGA and FAST TRACK for this segment.

Timex – Timex has KEO5 series, FASHION LJ11 series, and KUO1 series.

Casio - Casio has WS series, AW series, and EDIFICE series.

c) The third segment consisted of the lower-income consumers who saw a watch

mainly as a time-keeping device and bought mainly on the basis of price.

Titan – has SONATA , KARISHMA which offer good quality at low price

Timex – has FORMALS B303, KHO4, AO45, NM12 series which are catering the needs

of this segment.

Positioning

TITAN TIMEX CASIO

FASTEST MOVING RANGE

1200-3000 900-4000 2000- 4500

POSITIONED AS High-Quality,

Fashionable Timepieces

Stylish ,

Multifunctional and Durable Watches

Next generation

Watches, Durable and Trendy

U.S.P. An Indian Company offering international

quality

Technological Excellence

Stylish

TAG LINE BE MORE “What Next” The Unexpected Extra

Gap Identification

Focus on up country markets

Rural market is booming and there is enough evidence to suggest that

the companies which manage to crack the rural enigma will certainly do

wonders with its businesses. Titan is currently the market leader with deep

penetration better than its rivals. But, there is a growing necessity to improve

the distribution in these markets and substantiate and grow effectively in these

pockets to maintain its status as the market leader.

Consignment or Payment on sale schemes

Timex and Casio have adopted a unique credit system in association with

the channel partners. This allows the company to display their products

{predominantly, the high end ones}, in the stores and the retailer is entitled to

pay, only when the product is sold and goes off the shelf.

Titan follows a strict credit system with the retailers having to pay within

a stipulated time gap. Titan could rework on the credit system to make it more

flexible which would encourage the channel partners to promote their products

further.

Effective usage of promoters

Casio and Timex employ promoters to push their products in retail

outlets, especially in NTOs {Non traditional outlets}. Titan till date does not

follow the policy of employing promoters. This strategic decision can be

explored and people can be employed for the same.

Documents

Titan,Casio and Timex