Titan - A turnaround story

8/14/2019 Titan - A turnaround story

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ORLD OF TITANORLD OF TITAN


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INTRODUCTION

Titan is the largest watch company in India and the fifthlargest in the world.

Titan manufactures over 90 million watches across 30countries and cumulative.

Titan Industries was established in 1984 as a joint venturebetween the Tata Group and Tamil Nadu IndustrialDevelopment Corporation (TIDCO).

The company set up its corporate office in Bangalore(Karnataka) and its watch manufacturing facility in Hosur(Tamil Nadu).

The majority stake in the company is held by the promoters,with TIDCO having 28 per cent of the shares and TataGroup companies owning 25 percent of the shares.

Public holding in the company is around 28 per cent. The restof the stake is held by foreign institutions, non-residentIndians, mutual funds and other institutions.


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1989 : Aqura was launched, the trendy range for the youth, colour ful, smart andaffordable plastic watches: The other side of Titan for the other side of you.1992 : Raga the ethnic range, with striking symbolism from ethnic India, for thesophisticated woman1993, Insignia was launched, very distinctive and international-looking top-end watches,for those seeking exclusivity and status.1994, 2000 was launched, rugged, sporty and very masculine watches with serioussports features (200-m water resistance, high precision chronographs) for those with the

penchant for adventure.1995 Tanishq was launched, the most desirable jewellery brand was launched.1996 Dash was launched, the cute and colourful range for kids.1997 Sonata was launched, the affordable, good quality range for the budget-conscious.1998 Fastrack was launched, the cool, trendy, funky range for the young.1999, Nebula was launched, the solid gold and diamond-studded range of luxurywatches for those affluent people to whom gold is a precious acquisition.

2001, Steel was launched, the smart and contemporary collection for the young 21stcentury executive.2007 TITAN EYE+ was launched, the prescription eyewear2008 Brand collections like the Octane, Diva, WWF and Zoop - each of them uniqueand fascinating were launched.


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rofit and LostSheet


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et Income


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:ITAN Watches

+:itan Eye EyeWear :anishqJewelry

recision Engineeringivision

ORE PRODUCTS


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recisionrecisionngineeringngineeringDivisionivision


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Precision Engineering Division

Leveraging precision engineering core competencies from watch making,Titan initiated a PRECISION ENGINEERING DIVISION in 2002, catering toglobal majors across industry verticals like aerospace, automotive, oil &gas, engineering, hydraulics, solar and medical instruments.

With an investment of over $10 million, the setup has fourmain business units

Precision Engineering Components & Sub-Assemblies (PECSA)

Machine Building & Automation Solutions

Tooling Solutions

Electronic sub-assemblies


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+ITAN EYE+ITAN EYE


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ptical Lenses

Frames ontactLenses

Sunglasses

PRODUCTS


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he Inception Phase In March 2007 Titan industries and TIDCO announced their joint

venture into prescription eyewear business.

Operations started in April 2007.

Expansion plan in the offing :plan to open 150 eye+ stores and100+ franchised stores.

: +roduct and services Titan Eye: + ( ) .Frames Eye and Dash brand children and host of international brands

: , .Optical Lense Offers Essilor Kodak and Titan lenses Have entered

into a technical pact with Sankara Nethralaya for training of.retail and clinic staff : & , & .Contact Lenses Also houses contact lenses from J J B L .A variety of sunglasses including Fastrack


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D E S IG N&MARKETIN G

W H O LESALED IS TR IB U TI

O N

&F R A M ELEN S

M A N U FA C T

U R IN G

LEN SFIN IS H IN G

&ASSEMBLY

R ETA ILSE RV IC E

:Focu s on d e sig n an d h ig h m a rg in a rea s

, , & .D E S IG N R E T A IL S E R V IC E M A R K E T IN G

OUTSOURCE

Product


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TANISHQANISHQ


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Tanishq was launched in the year 1995.

It was the first time Titan had ventured into business other thanwatches.

Changed its image from a watch manufacturer to a fashionaccessories manufacturer.

Titan was renamed Titan Industries Ltd.

Tanishq today is India's most aspirational fine jewelry brand with91 stores in 64 cities.

With an exquisite range of gold jewelry studded with diamonds orcoloured gems and a wide range of equally spectacular jewelry

in 22Kt pure gold. Exquisite platinum jewelry is also part of the product range.

Introduction


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Brand positioning Changed the brand positioning from that of an elitist and

Westernized offering to a more mainstream, Indian one

Shift from modern designs to more ethnic and traditional ones

Introduction of Karat-meter

Standardization of prices

Quality assurance

Besides its wide range of products, Tanishq also provides a host ofvalue added services

Golden Harvest saving scheme

Gift Voucher purchase Exchange of gold and diamonds

Anuttara


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A R K E TS H A R E

Product


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ITAN WATCHESITAN WATCHES


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Sonata Dash! Fastrack

Steel Edge Raga

Nebula XYLYS


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Purchasing power of

consumers

BRAND PURCHASING POWER (PRICE) RS. CATEGORY

FAST TRACK 550-1,430 YOUTH

EXCTA 595-1,430 LOWER MIDDLE CLASS (Office wear)

SPECTRA 650-1,830 COMMON CLASS

ROYAL 960-2,830 UPPER- MIDDLE CLASS

TITAN 2000-4000 LOWER MIDDLE CLASS & UPPER CLASS

SONATA 350-900 LOWER MIDDLE CLASS - UPPER MIDDLECLASS

RAGA 1,420-4,000 UPPER CLASS

BANDHAN 1,675-8,085 COUPLES

REGALIA 1,725-7770 UPPER MIDDLE CLASS-UPPER CLASS

EDGE 4,500-5,200 BUSINESS CLASS

NUBULA 10,000-45,000 UPPER CLASS

MarketPositioning


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ompetitor Positioning


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TITAN -WWF:

Inspired from six species namely the Tiger, Indian RahinoGnagetic river Dolphin, Red Panda, Whale shark and OliverRidley Turtle.

It include the watches namely RAGA, EDGE and NEBULA. As it isthe new collection it requires more investment for Tiatn-wwfas the market growth is also high there.

Heritage collection

Based on beautiful monument of India including The Taj-Mahal,

Lakshmi Vials Place, Jharokha, Konark ,Ajanta.


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PROMOTION

Advertising media:

Television

Print

Internet

Titan brand ambassador:

Titan Brand: Aamir Khan

Sonata: Mahendra Singh Dhoni

Raga: Gul Panag, Rani Mukherjee

Xylys: Rahul Bose

Titan tagline: Be more

Fast track tagline: How many you have?


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SWOT Analysis on titan

Strength Style

Models

Exclusive products

Other than these there have few more strength like-

Contribution of owned brands and retail. The profit is accounted by being in the retail spacewhich is booming.

Watches are available with popular functions like dates, multifunction and chronographic.

Guarantee/warrantyWeaknesses

Pricing of high end products

Globalization Threat from new entrantOpportunities

Seasonality

Gifting concept Exchanging offer

D. Threats

Competitor

Premium segment

Mobile Phones


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Promotion:

Promotional pricing:

Marketing pricing: As by opening new shops such as the world of Titan buydirectly from the dealer and hence the element of middleman is not there.

Price discount and allowances: Every year Titan comes with a price discountsale on the MRP of the watches. The allowances varies from one segment toanother.

Creative advertising: Titan introduces a contest on cartoon network in india.comwhich invites children to use creativity and design watch. The prize winning

design was launched as a new watch in summer 2002 collection.

Promotion on occasion: Titan is one of the companies which formally believe inthe policy of promotion the product based on the occasions.

Place:

Keeping in mind about the young trendy and fashionable consumers, Titandistribute its product and set up world of titan in different region. The

consumers life style in India, especially in urban area (because the turnover inurban area is 210 million, while the turnover in rural area is 90 million) plays asignificant role in the success of Titan.

A.Time Zone:Titan Industries brings together the countrys leading watch brandsunder one roof, providing the customer with variety in brands, looks and priceranges and also efficient after-sales service.

B.Value Mart:These outlets sell surplus stocks of Titan watches at reduced

prices. C.Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata &


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Turning back the clock since1995


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Titan Watches

Titan can also look into diversifying watch business to

wall clocks,

table clocks

Business digital clocks.

Should also focus more on R&D to come up with new products.

Tanishq

Titan should go about aggressively marketing Tanishq, by using properpricing strategy; so as to tab customers in tier 2 and tier 3 cities.

It should also strengthen its proper distribution chain network in these

cities.

Titan Eye+

Titan Eye+ being in nascent stages a proper pricing strategy likeTITAN watches should be adopted to build proper market segmentso as to target Tier 2 and Tier 3 cities also.

R e co m m e n d a tio n s


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Documents

Titan - A turnaround story