INTRODUCTION TO THE INDUSTRY

Indian Watch Market:

The watch market in India recorded an approximate volume turnover of 29 million

units (2007-08). It is growing at 9% per annum. The organized sector contributes

to half the volume turnover of the industry and rest by the unorganized sector.

Tough competition is anticipated between the low priced variants introduced by

the organized sector and the unorganized sector. Watch consumption in India is

20 units per thousand persons. The top 23 cities account for 80% of the watches

sold in India, which therefore leaves a lot of scope for penetration in the “rural

towns”. Three players dominate the organized sector, HMT (34% market share),

Titan (39%) and Timex (23%). Besides HMT, Titan and Timex several companies

like Westar, Shivaki, Maxima, Before and SITCO made a bid for the Indian watch

market.  Liberalization has brought with it a host of brands for the Indian market,

viz. Piguet, Cartier, Christian Dior, Omega, Raymond Weil, Rolex, and Tissot.

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)

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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

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 HMT’s 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):

Titan’s Insignia, Slimline, and Bandhan; HMT's Elegance range, and Misuni;

Timex's Indiglo and Datalink are main brand offered in this market segment.

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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.

Segmentation based on user category:

Fashion and style is most visible feature of this segment

Men's Watches:

HMT's Roman is probably the only watch that addresses the

men's segment. Market research indicated that HMT

wasseen as a masculine brand while Titan was seen as a

feminine brand. In keeping with its masculine image HMT

introduced the Roman range.

Youth Watches:

Age group between 15 and 20 is treated as youth segment.

Ruggedness and durability at low price is basic feature of this

segment.

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Kid's Watches:

Target group is children aged between 7 and 10. Mainly digital

watches fall in this category. Grey market is most dominant

player of this segment. HMT’s Zap TIMEX’s Gimmix and

Titan’s Dash are branded watches offered in category. 

Sports Watches:

Stress of this segment is on trendy designs for casual wear with

advanced features for the techno-savvy consumer.

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TATA BRIEF INFORMATION

The foundation of what would grow to become the Tata Group was laid in 1868

by Jamsetji Nusserwanji Tata — then a 29-year-old who had learned the ropes of

business while working in his father’s banking firm  — when he established a

trading company in Bombay.

The Tata Group Companies is one of India's oldest, largest and most respected

business empires. The Group's businesses are spread over seven business

sectors. It comprises of 96 companies and operates in six continents. There are

some 2,46,000 employees and put together it has a shareholder base of over two

million and market capitalization of $57.6 billion.

Activities

The main companies under the Tata Group are Tata Motors , Tata Indicom ,

Tata Steel , Tata Consultancy Services , Tata AIG Insurance , Tata Tea

Limited.

Tata Motors:

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Tata Motors Limited is India's largest automobile company, with revenues of Rs.

32,426 crores (USD 7.2 billion) in 2006-07.

Tata Indicom:

Under this there are three segments which are Tata Teleservices Ltd., Tata

Teleservices Maharashtra Ltd., Videsh Sanchar Nigam Ltd.. These are major

companies in the telecom industry.

Tata Tea Limited:

The operations of Tata Tea and its subsidiaries focus on branded product

offerings in tea but with a significant presence in plantation activity in India and

Sri Lanka.

Tata Consultancy Services (TCS):

TCS is one of the world's leading information technology companies. Through its

Global Network Delivery Model, Innovation Network, and Solution Accelerators,

TCS focuses on helping global organizations address their business challenges

effectively.

Tata Steel:

Established in 1907, Tata Steel is Asia's first and India's largest private sector

steel company.

Tata AIG Insurance:

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Tata AIG General Insurance Company Ltd. is a joint venture company, between

Tata Sons and American International Group, Inc. (AIG).

TATA CODE OF CONDUCT

1. NATIONAL INTEREST

A TATA Company shall be committed in all its actions to benefit the economic

development of the countries in which it operates and shall not engage in any

activity that would adversely affect such objective. It shall not undertake any

project or activity to the detriment of the Nation’s interests or those that will have

any adverse impact on the social and cultural life patterns of its citizens. A TATA

Company shall conduct its business affairs in accordance with the economic,

development and foreign policies, objective and priorities of the Nation’s

government and shall strive to make a positive contribution to the achievement of

such goals at the international, national and regional level as appropriate.

2. FINANCIAL REPORTING AND RECORDS

A TATA Company shall prepare and maintain its accounts fairly and accurately in

accordance with the accounting and financial reporting standards which

represent the generally accepted guidelines, principles, standards, laws and

regulations of the country in which the company conducts its business affairs.

Internal accounting and audit procedures shall fairly and

accurately reflect all of the company’s business transactions

and dispositions of assets. All required information shall be

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accessible to company auditors and other authorized parties

and government agencies. There shall be no willful

omissions of any company transaction from the books and

records, no advanced income recognition and no hidden

bank account and funds.

Any willful material misrepresentation of and/or

misinformation on the financial accounts and reports shall

be regarded as violation of the code apart inviting

appropriate civil or criminal action under the relevant laws.

3. COMPETITION

A TATA Company shall fully strive for the establishment

and support of a competitive open market economy in

India and abroad and shall co-operate in the efforts to

promote the progressive and judicious liberalization of

trade and investment by a country.

Specifically, a TATA Company shall not engage in

activities, which generate or support the information of

monopolies, dominant market positions, cartels and

similar unfair trade practices.

A TATA Company shall market its products and services

on its own merits and shall not make unfair and

misleading statements about competitors’ products and

services. Any collection of competitive information shall

be made only in the normal course of business and shall

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be obtained only through legally permitted sources and

means.

4. EQUAL- OPPORTUNITIES EMPLOYER

TATA Company shall provide equal opportunities to all its employees and all

qualified applicants for employment without regards to their race, caste, religion,

color, ancestry, sex, age, nationality. Employs of a TATA Company shall be

treated with dignity and in accordance with the TATA Policy to maintain a work

environment free of sexual harassment whether physical and verbal or

psychological. Employee policies and practices shall be administrated in a

manner that would ensure that in all matters equal opportunity is provided to

those eligible and decisions are merit based.

A TATA Company and its employees shall neither receive nor offer or make

directly or indirectly, any illegal payments, remuneration, gifts, donations or

comparable benefits which are intended to or perceived to obtain business or

uncompetitive favours for the conduct of its business. However, a TATA

Company and its employees may accept and offer nominal gifts which are

customarily given and are of commemorative nature for special events.

5. POLITICAL NON-ALIGNMENT

A TATA Company shall be committed to and support a functioning democratic

constitution and system with a transparent and fair electoral system in India. A

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TATA Company shall not support directly or indirectly any specific political party

or candidate for political office. The Company shall not offer or give any company

funds or property as donations, directly or indirectly, to any specific political party,

candidate or campaign.

6. HEALTH, SAFETY AND ENVIRONMENT

A TATA Company shall strive to provide a safe and healthy working environment

and comply, in the conduct of its business affairs, with all regulations regarding

the preservation of environment of the territory it operates in. A TATA Company

shall be committed to prevent the wasteful use of natural resources and minimize

any hazardous impact of the development, production, use and disposal of any of

its products and services on the ecological environment.

7. QUALITY OF PRODUCTS AND SERVICES

A TATA Company shall be committed to supply goods and services of the

highest quality standards backed by efficient after-sales services consistent with

the requirements of the customers to ensure their total satisfaction. The quality

standards of the Company’s goods and services should at least meet the

required national standards and the Company should Endeavour to achieve

international standards.

8. CORPORATE CITIZENSHIP

A TATA Company shall be committed to be a good corporate citizen not only in

compliance with all relevant laws and regulations but also by actively assisting in

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the improvement of the quality of life of the people in communities in which it

operates with the objectives of making them self reliant. Such social

responsibility would comprise, to initiate and support community initiatives in the

field of community health and family welfare, water management, vocational

training, education and literacy and encourage application of modern scientific

and managerial techniques and expertise. This will be reviewed periodically in

consonance with national and regional priorities. The company would also not

treat these activities as optional once but would to incorporate them as integral

part of its business plan. The company would also encourage volunteering

amongst its employees and help them to work in the communities. Tata

companies are encouraged to develop social; accounting systems and to carry

out social audit of their operations.

9. CO-OPERATION OF TATA COMPANIES

A TATA Company shall co-operate with other TATA Companies by sharing

physical, human and management resources as long as this does not adversely

affect its business interests and shareholder values.

In the procurement of product and services a TATA Company give preference to

another TATA Company as long as it can provide these on competitive terms

relative to third parties.

10. PUBLIC REPRESENTATION OF THE COMPANY AND THE

GROUP

A TATA Company honours the information requirements of the public and its

stakeholders. In all its public appearance with respect to disclosing company and

business information to public constituencies such as the media, the financial

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community, employees and shareholders, a TATA Company or the Tata Group

shall be represented only by specifically authorized directors and employees. It

will be the sole responsibility of these authorized representatives to disclose

information on company.

11. THIRD PARTY REPRESENTATION

Parties which have business dealings with the TATA Group but are not the

members of the Group such as consultants, agents, sales representatives,

distributors, contractors, suppliers. Etc. shall not be authorized to represent a

TATA Company if their business conduct and ethics are known to be inconsistent

with the code.

12. USE OF THE TATA BRAND

The use of the TATA name and trademark owned by Tata sons shall be

governed by manuals, codes and agreements to be issued by Tata Sons. The

use of the TATA brand is defined in and regulated by the TATA Brand Equity &

Business Promotion Agreement.

13. GROUP POLICIES

A TATA Company shall recommend to its Board of Directors the adoption of

policies and guidelines periodically formulated by Tata Sons.

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14. SHAREHOLDERS

A TATA Company shall be committed to enhance shareholders value and

comply with all regulations and laws that govern shareholders’ rights. The Board

of Directors of a TATA Company shall duly and fairly inform its shareholders

about all relevant aspects of the Company’s business and disclose such

information in accordance with the respective regulatations and agreements.

15. ETHICAL CONDUCTS

Every employee of TATA Company, which shall include whole time Directors and

the Managing Director, shall deal on behalf of the company with professionalism,

honesty, integrity as well as high morale and ethical standards. Such conduct

shall be fair and transparent and be perceived to be as such by third parties.

Every employee shall be responsible for the implementations of and compliance

with the code of his professional environment, Failure to adhere to Code could

attract the most serve consequences including termination of employment.

16. REGULATORY COMPLIANCE

Every employee of TATA Company shall, in his business conduct, comply with all

applicable laws and regulations, both in letter and in spirit, in all the territories in

which he operates .If the ethical and the professional standards set out in the

applicable laws and regulations are below that of the Code then the standards of

the Code shall prevail.

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17. CONCURRENT EMPLOYMENT

An employee of TATA Company shall not without the prior approval of the

Managing Director of the Company, accept employment pr a position of

responsibility (such as a consultant or a director) with any other company, nor

provide “free-lance” services to anyone. In the case of a Whole-time Director or

the Managing Director such prior approval must be obtained from the Board of

Directors of the company.

18. CONFLICT OF INTEREST

An employee of TATA Company shall not engage in any business, relationship or

activity which might detrimentally conflict with the interest of his Company or the

Group. A conflict of interest, actual or potential, may arise where, directly or

indirectly, (a) an employee of TATA Company engages in a business, (b) an

employee is in a position to derive a personal benefit or a benefit to any of its

relatives by making or influencing decisions relating to any transaction, and (c)

an independent judgement of a Company’s or Group’s best interest cannot be

exercised.

The main areas of such actual or potential conflicts of interest would include the

following:

Financial interest of an employee of a TATA Company or

his relatives including the holding of an investment in the

subscribed share capital of any company or a share in

any firm which is an actual or potential competitor,

supplier, customer, distributor, joint venture or other

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alliance partner of the TATA Company. (The ownership

of upto 1% of the subscribed share capital of a publicly

held company shall not ordinarily constitute a financial

interest for his purpose.)

An employee of a TATA Company conducting business

on behalf of his company or being in a position to

influence a decision with regard to his company’s

business with supplier or customer of which his relative

is a principal, officer, or representative, resulting in a

benefit to him or his relative.

Award of benefits such as increase in salary or other

remuneration, posting, promotion or recruitment of a

relative of an employee of a TATA Company such an

individuals in a position to influence the decision with

regard to such benefits.

Acceptance of gifts, donations, hospitality and/or

entertainment beyond the customary level from existing

or potential suppliers, customers or other third parties

which have business dealings with the company.

Notwithstanding that such or other instances of the conflict of interest exist due to

an y historical reasons, adequate and full disclosure by the interested employees

should be made to the company’s management. It is also incumbent upon every

employee to make a full disclosure of any interest which the employee or his

immediate family, which would include parents, spouse and children, may have

in a company or firm which is a supplier, customer, distributor of or has other

business dealings with his company.

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Every employee who is required to make a disclosure as mentioned above shall

do so, in writing, to his immediate superior who shall forward the information

along with his comments to the person designated for this purpose by the

MD/CEO who in turn will place it before the MD/CEO and the Board of

Directors/Executive Committee appointed by the Board and, upon a decision

being taken in the matter, the employee concerned will be required to take

necessary action as advised to resolve the conflict.

If an employee fails to make a disclosure as required herein and the

management of its own accord becomes aware of an instance of conflict of

interest that ought to have been disclosed by the employee, the management

would take a serious view of the matter and consider suitable disciplinary action

against the employee.

19. SECURITIES TRANSACTIONS AND CONFIDENTIAL

INFORMATION

An employee of a TATA Company and his immediate family shall not derive any

benefit or assist others to derive any benefit from the access to and possession

of information about the company or the group, which is not in the public domain,

and thus constitutes insider information.

An employee of a TATA Company shall not use or proliferate information that is

not available to the investing public and which therefore constitutes insider

information for making or giving advice on investment decisions on the securities

of the TATA Company on which such insider information has been obtained.

Such insider information might include the following: -

Acquisition and divestiture of business units.

Financial information such as profits, earning and

dividends

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Announcements of new product introductions or

developments.

Asset revaluations.

Investment decisions/plans.

Restructuring plans.

Major supply and delivery agreements.

Raising finances.

20. PROTECTING COMPANY ASSETS

The assets of a TATA Company should not be misused but employed for the

purpose of conducting the business for which they are duly authorized. These

include intangible assets such as equipments and machinery, systems, facilities,

materials, resources as well as intangible assets such as proprietary information,

relationships with the customers and suppliers, etc.

21. CITIZENSHIP

The employee of a TATA Company shall in his private life be free to pursue an

active role in civic or political affairs as long it does not adversely affect the

business or interests of the Company or the group.

22. INTEGRITY OF DATA FURNISHED

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Every employee of a TATA Company shall ensure, at all times, the integrity of

data or information furnished by him to the company.

23. REPORTING CONCERNS

Every employee of a TATA Company shall promptly report to the management

any actual or possible violation of the code or any event he became aware of that

could affect the business or reputation of his or any other TATA Company.

24. GOVERNMENT AGENCIES

A TATA Company and its employees shall not offer or give any company fund or

property as donation o any government agencies or their representatives, directly

or through intermedries, in order to obtain any favorable performance of official

duties.

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The Titan Story

Early 2001, when Indian consumers rated Titan ahead of all other brands as the

Most Admired Brand in India across all product categories (the first ever such

survey done by Brand Equity), it did not surprise people that a 13 year-old had

managed to upstage many older and more well-known brands: it was expected of

Titan to achieve such things, it was so natural.

It was also a fitting tribute to a brand, which had not only revolutionized the

Indian watch industry, but also brought in world-class benchmarks in product

design, quality and retailing into India.

Back in the early eighties, the Tata Group had identified the watch category as a

potential consumer market for the Tatas to enter. Xerxes Desai, a Tata veteran

and the then MD of Tata Press, was chosen to lead that venture.

In those days of pre-liberalization the watch market, like most consumer markets

in India, was way behind the rest of the world. The technology in vogue was the

reliable, but outdated "Mechanical" technology, which used the unwinding of a

mechanical spring to tell time. Not only was the accuracy of time-keeping not

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good enough, but the bulky mechanical movement did not permit the creation of

sleek products. The industry was dominated by the public sector which had

brought in watch manufacturing into India, enjoyed tremendous goodwill in the

market, but had not really invested in evolving itself and its consumers: styling

still remained basic, choice was limited.

The watch shops were narrow, dingy and typically located in the older, traditional

markets of the city. You went there only to buy a watch, never to browse, never

to simply check out. Visual merchandising was very much at the stage of

"decoration" if any, and neither the brands nor the retailers saw it as important.

The companies themselves did not have much contact with retailers, preferring to

sell through wholesalers, doing well that way. There was hardly any need for

consumer contact or research. It was a sellers' market.

All this affected the consumers. Watches remained a time-keeping device, so

one watch was enough, thank you. Since the quality of the watch was quite good,

it lasted quite a while, and the consumers did not change it for 10, 15, 20 years.

And when they did change it, they did not pay a high price for the new piece

because, what the hell, they were buying another time-keeping device.

Xerxes Desai's vision was to dramatically alter this perception of consumers, and

make Titan a fashion accessory. He knew that that was the only way that this

new brand would explode the market and wrest control from the dominant HMT.

So he and his team went about breaking all the rules in the category:

Mechanical technology was the norm - Quartz had not really taken off in India.

Titan would go against that and build its line based on quartz. Accuracy would

become a selling-plank.

Styling was basic - This was a constraint imposed by the technology as well the

outlook of the manufacturers. Titan decided to make style a table-stake.

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Choice was limited - You had 200 models to pick from, that was it. Titan decided

to inundate consumers with a wide choice in style, functions and price. The initial

range was 350 models.

Shops were dark, dingy and uninteresting - There was no importance given to

presentation, and therefore no attempt made at it. Titan brought in the concept of

retailing into the watch market, established a network of fine showrooms which

would later become the world's largest network of exclusive watch stores. These

stores not only helped Titan to gain leadership substantially, but also irrevocably

altered the retail landscape of the watch market through a demonstration effect

on the traditional dealers.

Advertising was expenditure - Titan saw this as a vital investment. Right from

Day 1, Titan invested significantly in advertising and in that process created a set

of memorable and effective properties over the years.

So Titan, backed by world-class quality created at a world-class plant located just

off Bangalore, backed by the Tata name, was launched into the Indian market on

the back of these new rules. It created waves right in the early days, mesmerized

consumers, demolished competition and rode into the sunset with panache.

Today, in early 21st century India, it is taken for granted that a watch is a fashion

accessory. Titan dominates the market, with a 60% share of the organized sector

market (the total market, including the unorganized sector, is estimated at around

42 million units). Titan's quality record is impressive, its sales and service

network is wide and deep, and its network of exclusive showrooms, The World of

Titan, is one of the most prestigious and visible retail brands in the country,

offering world-class levels of shopping comfort and customer service.

What is truly amazing about Titan is the sheer scale of its offering and the

consequent choice it offers to multiple segments across taste, age and economic

background. Titan saw this approach as the foundation of its leadership strategy

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in the early days. Even the early range had distinct offerings for different

requirements: formal watches (gold plated cases with fine leather straps) for the

executive, dress watches (gold plated cases with ornamental gold plated

bracelets) for those with a preference for jewellery, rugged watches (all steel

watches with a skew to functionality) for those whose usage demanded a certain

durability.

Titan has built on this principle over the last 15 years, almost year after year:

In 1989, it was Aqura, the trendy range for the youth, colourful, smart and

affordable plastic watches for the youth: The other side of Titan for the other side

of you.

In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India,

for the sophisticated India woman who appreciated such things.

In 1993, it was Insignia, very distinctive and international-looking top-end

watches, for those seeking exclusivity and status.

In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious

sports features (200-m mater resistance, high precision chronographs) for those

with the penchant for adventure.

In 1996, it was Dash, the cute and colourful range for kids.

In 1997, it was Sonata, the affordable, good quality range for the budget-

conscious.

In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-

at-heart.

In 1999, it was Nebula, the sold gold and diamond-studded range of luxury

watches for those affluent people to whom gold is a precious acquisition.

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In 2001, it was Steel, the smart and contemporary collection for the young 21st

century executive.

And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop -

each of them unique and fascinating.

The underpinning of this entire market development and segmentation is

Innovation. Titan has kept innovation core to its strategy, realising fully that the

only way to sustain the fashion accessory perception is by continuously coming

out with collections that make the current ones somewhat dated, thereby creating

a certain discomfort in the consumers' mind, which leads to another purchase.

This impact has shown up in every one of the collections spoken of earlier. They

were fresh and distinctive, unlike what consumers had seen before, and thus

created curiosity, walk-ins and sales.

A stellar example of Titan's Innovation is Edge, the slimmest watch in the

universe. Titan's R & D talent created a wafer-thin quartz movement, a mere

1.15mm thin, over 4 years of development work. The immensely talented Design

team collaborated with the Manufacturing group to create Edge, a 3.5-mm watch,

a gem of elegance, with water-resistance to boot! Edge was launched in India

early 2002 to tremendous market acclaim and sales success. It is a design and

technological marvel, which justly received the Best Design Award in the Lifestyle

Product Category in the first annual design contest organised by Business World

and NID.

In the early nineties, Titan chose to develop the "Gifting" market. Watches had

always been favourite things to gift, and Titan had benefited from that. Titan was

convinced that there lay a greater potential in that segment. A set of 3 films were

developed in 1991 around 3 relationships, where the gifting of a Titan culminated

in a moving personal moment and a strengthening of the bond between the

protagonists. These films became a big hit and created a genre of advertising

films which lasted a good 8 years. During those years, a series of films involving

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a variety of characters (father, daughter, teacher, boyfriend, ex-boyfriend, thief!)

and with local flavour (for Onam in Kerala, Puja in Bengal) were created and

released. These not only helped build a good-sized gift segment for Titan, but

also became Titan's Theme Campaign, building strong emotional values for the

brand. One of the films in the series, where a man and his younger daughter

conspire to give his older daughter a Titan as a surprise gift at her wedding,

released around 1994, went on to become the most popular Titan film ever, even

voted by the viewers of Zee Television as the second most liked TV commercial

on the channel.

The most enduring part of the Titan advertising has been the music track.

Chosen by Xerxes Desai and the creative head of O & M in 1987 for its class and

western vibes, the segment from Mozart's 25th Symphony has arguably become

Indian Advertising's most memorable track (incidentally, and perhaps not

coincidentally, this was the most liked advertising track in the same Zee TV

survey). Starting in 1987 in its pure classical versions, with a single violin playing

the melody, this piece has been rendered in countless innovative versions over

the years: Indian Classical, Indian Folk, Operatic, Rock, Funk,. And has become

such a powerful audio mnemonic for the brand.

Another successful customer-facing aspect about Titan has been its stores.

Organized 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 was born. Located in the newer

parts of a city, with a good frontage and layout, the showroom immediately stood

out on the street and attracted walk-ins. Once inside, you were totally impressed

with the presentation. You walked along the wall, where recessed "mood

windows" showcased specific collections in the appropriate context with the help

of visuals, decorative props and word (the place looked almost like an art

gallery). You could get a better idea about that collection through such a

contextual presentation and could make up your mind which collection was right

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for your requirement. Then you would walk along to the selling area, where the

entire range was displayed in style. Smart and helpful salespeople waited on you

there and helped you choose the best piece by giving you information and

suggestions. You walked away overwhelmed.

This experience now has over 255 branches and has penetrated the width and

breadth of India. Helping the brand increase sales, increase price premium, sell

the more expensive watches, improve image, keep competition at bay and keep

the brand name salient on the high streets of the country. Refurbished with a

contemporary look in 2001, this chain has become even more integral to the

brand's destiny today.

Doing all this in style has earned Titan enormous goodwill and respect. Titan was

voted the Most Admired Brand (across categories) in India by consumers, in the

first such study by Brand Equity done in 2001. Titan was voted the Most Admired

Consumer Durables Marketer by industry professionals, 8 out of 9 times (the

ninth time it was No 2), in A & M's annual survey done between 1992 and 1999.

Titan was voted the Most Respected Consumer Durables Company in a

Business World Survey in 2003. Consumers and professionals alike have

resonated equally to Titan's successful efforts in bringing international standards

to India. And in 2008, it emerges as the 24th Most Admired Brand in the ET Most

Admired Brands survey done annually, it was also the most admired Consumer

Durable brand.

Titan has also done the seemingly impossible reverse thing: taking Indian quality

to international markets. Since starting export operations in a small scale to the

Middle East in the early nineties to exploit the resident NRI population, Titan has

come a long way. Moving into the European market in the mid-nineties and Asia

Pacific in the late nineties, Titan today sells in the UK, Spain, Portugal, Greece,

Singapore, Dubai, Malaysia, Oman, Philippines and many more countries. The

customers are no longer only NRIs. They are the Thais, the Greeks, the Arabs,

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the Filipinos - through a combination of Contemporary Style, Great Quality and

Great Prices, Titan has put together an irresistible proposition for the people of

these countries.

INTRODUCTION OF TITAN INDUSTRIES:

A CONCERN OF TATA GROUP

About The Company

Titan, a joint venture between Tamil Nadu Industrial Development Corporation

(TIDCO) and the renowned Indian business group Tatas, entered the watch

market in 1984. Titan changed the watch market in India completely by making

quartz watch the centerpiece of its strategy. Titan Company is the unquestioned

leader in Indian Watch Industry. Titan is one of the most powerful brands in the

Indian market, scoring very high on brand awareness, brand image and brand

preference. Over the twelve year period of its existence as a manufacturer, Titan

has added considerably both to capacity and to capability. It has a highly

26

integrated plant, making virtually all the parts that go into a watch. Titan is today

the sixth-largest "manufacturer-brand" in the world, after Casio, Citizen, Seiko,

Swatch and Timex of America.).

Since its inception, Titan decided that it would be the shaper of the watch

industry and not an adapter. They created competitive advantage through

differentiation. They first concentrated on technological leadership. The Tatas

took two decisions they will manufacture only quartz (analog and digital) and not

mechanicals, and they would set up state-of-the-art plant to manufacture

watches in a wide variety of designs and prices. HMT and local players had

always looked at the functional utility of the watch. Titan was first in India to

introduce the style concept. They projected the watch as a fashion accessory.

They clearly identified that their main competitor was not HMT, but the gray

market. A firm differentiates itself from its competitors if it can be unique at

something that is valuable to the buyer beyond simply offering low price.

Differentiation allows a firm to command a premium price, to sell more of its

products at the same price, or to gain equivalent benefits such as greater buyer

loyalty. Differentiation leads to a superior performance if the price premium

achieved exceeds any added costs of being unique. At Titan the products were

developed in such a way so as to enhance quality and features to increase buyer

value. This was the perfect example of differentiation through technological

leadership and product technological change. In the initial years Titan chose to

concentrate on the higher end of the market which was responsive to the style

element of the watch. Also this segment of the market was relatively price

inelastic. This was done so as to build the brand image of Titan as manufacturer

of good quality stylish watches. Over the years the Titan brand and its signature

tune Mozzart’s Fifth Symphony has become one of the most recognized in Indian

consumer durable goods segment. Company has shifted its growth strategy from

adding to equipment and manpower to one of obtaining increased production

through innovative ideas and greater operating efficiency by adopting global best

27

practices. It has come up with two priorities the first priority has been to resolutely

drive down unit costs through product and process modifications and aggressive

sourcing. The second priority has been to boost asset productivity - producing

more with less: less of men, materials, machines and time - and thereby securing

the twin benefits of higher output and lower costs.

Company sold 4.76 million watches in the domestic market as against 3.97

million in the previous year. Growth came mainly from improved market

penetration and from the newly introduced Sonata brand (now Under TATA

name), which now includes over 400 models at prices which start from Rs350.

Company has recently developed a new focus on several market segments with

large potential: women, youth, children, sportsmen, the budget-conscious and, of

course, the big spenders. A systematic programme of launching these has

already commenced and highlights of the year included the relaunch of Fastrack

and Raga. The current year has seen the launch of the children's range, Dash.  A

new, attractively priced, solid gold line, Nebula, is also being rolled out.

Sales and Marketing

Titan launched totally a new product, quartz analog watch was an entirely new

product for India in 1987. Titan’s marketing strategy was initially built around five

features:

A product of international quality; Indian designs; Competitive prices; An

intensive advertising and promotion campaign; and Specialized retail shops to

control the presentation, since the general quality of watch merchandising in

India was low.

28

This ambitious marketing program was intended to position Titan watches as

high-quality, fashionable timepieces, available in clean and comfortable

surroundings, priced higher than other watches then on the market but not

beyond the reach of millions of potential purchasers. It was not a program,

therefore, that would place Titan watches in direct competition with, say,

mechanical watches from HMT. The marketing program would introduce to India

the type of promotional effort familiar in most developed countries. In order to be

successful, however, all facets of the program had to come together: attractive

designs, high-quality products, sufficient inventories, a logistical support system

and, a well-timed promotional campaign. Accomplishing these multiple tasks in a

timely way was a monumental undertaking for a new, untested company.

Titan Industries is a manufacturing company that produces India's largest and

best-known range of personal accessories – watches, jewellery, sunglasses and

prescription eye wear. 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 a state-of-the-art

factory at Hosur, Tamil Nadu.

29

Titan’s Main Products

PRODUCTS:

The company manufactures over 8 million per annum and has a customer base

of over 75 million. It has manufacturing and assembly operations at hosur,

dehradun, roorkee and himachal Pradesh and an ECB plant in goa. Its main

products are:

Watches: The company currently manufactures three main watch brand viz.

Titan: it is for the premium segment.

Fastrack: focused on the youth and trendy fashion space. Fastrack, India was

lounched in 1998 as a sub-brand of the moguls of the wrist-watch industry, titan.

30

Fastarck’s mantra from the get-go has been to capture the essence of what the

youth seek: Individuality, style, affordability.

Fastrack entered the market of designer watches & eye gear saturated with

International designer labels and soon carved a niche for itself with designs that

were refreshingly different, causal, chic, eclectic & fun with prices that would not

burn a whole through the pockets of the youth with no compromise of quality.

With a team of young designers who incorporate unique, edgy, unconventional

designs into every watches & pair of sunglasses, fastrack has now established

itself as quality youth brand. But the fastrack market does not extend only to

teens & young adults.

All those who seek an individual’s style that sets them apart from the masses, a

nonconformist spark and panache have fastrack adorning their wrists and eyes.

Present in over 4000 outlets across 450 town, fastrack has added exclusive

brand kiosks in metro mails to its multi-channel distribution network, Large formet

chain stores viz. Shoppers stop. Lifestyle, central, big bazaar etc, multi brand

watch & optical outlets.

Sonata- it is for the below us$25 category and is India’s largest selling watch

brand. Sonata is value for money watch brand from Titan Industries Ltd. it is

targeted at consumers seeking durability and value with a clear positioning of “No

compromise watch”. Sonata comes with the backing of being a Tata product with

five clear functional attributes, Affrodability, looks, 1 year guarantee, waterproof

(up to 30m water resistant) and Durability. It is therefore known as “5 ghadi k

barabar” and equivelant for non-compromise watch. It is India’s largest selling

watch brand with a sale of over 30 lakhs watches in 2007-08.

Sonata has a wide range of over 400 watches in different traditional designs for

gents and ladies. The range starts from Rs.395 and goes up to Rs.1250 . the

31

exclusive designs are made with best quality material, undergoing several

stringent test. Primarily, Sonata is known for being a brand that is strong in gold

plated watches, but now it also has a very good collection of steel watches.

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 women.

Nebula – precious jewellery watches from Titan. A

collection of intricately carved designs for women inspired by paisley and floral

patterns. Priced between Rs.18000 & Rs.45000, these watches are engraved

with beautiful patterns in gold. Adding to the exclusive is elegant mother of pearl

dials, available in nature and light-champagne hues.

An elegant kada watch with 16 diamonds that sparks delicately around the

watchicesn – like a crown jewel. Perfect to complement a traditional or

contemporary outfit. Crafted in solid gold and precious stones and several other

collections like wall street, Regalia and gold & steel, all of which from a part of

the Titan wardrobe.

The company has launched its first swiss made watch –Xylys for the hi-end

connoisseur and new age achiever. It also markets Tommy hifiger watches under

32

a licensing arrangement. Today, the titan portfolio has over 60% of the domestic

market share in the organized watch market.

DRESSWEAR WATCHES-

Splendid dress watches for lifestyle that flies high. Fusing the

ethnic with the contemporary, these designers come in all-gold

and bicolar look with intricate bracelets and patterned dials to add

that finishing touch to your ansemble.

FORMAL WATCHES-

Collection that fuse elegance to bring you the perfect wrist-wear

for your work environment. Bringing you the haute fashin of

leather and metal combination, the cool sophistication of steel

watches and design on the cutting edge of watch making

technology like edge, the slimmest watch in the universe. Formal

wear that is perfect for your finely tuned sense of style.

FASHION WATCHES-

Crafted from the metal that is driving the world wide. Watches in

steel gold, steel leather and all steel for the young professional

with an eye on every trend. In designs that range from serious

fashion to statements of minimalist funk.

SPORTY/CASUAL WATCHES-

33

Access the raw essence of hip with these edgy fastrack watches walk the fashion

tightrope with groovy colors and chunky styles. Kick start cool with bold broad

straps and trendy metal bracelets for the girls and sports watches in leather and

metal straps for the guys. Digital-tech and trendy shapes splash oomph and onto

your wardrobe and smear danger on your look.

34

Organization Structure of Titan

35

Product Portfolio of Titan

Sonata: From Titan (Now sold under TATA) aims at the mass market and

advertises itself as "a Titan watch at low price". Sonata sold an estimated 0.8

million pieces (2007-08) within four years of its launch. It is probably the largest

selling sub brand from Titan. Titan entered the watch market as a premium watch

but competition from the unorganized sector and low priced options from HMT

36

forced Titan to introduce Sonata. Sonata was so successful that it cannibalized

the brand from the extension’s low price connotation.

Titan's Exacta, a rugged steel watch starts at the low end of the price spectrum

but offers high price versions as well. It is reportedly selling 1.0 million pieces per

year because of the constant up gradation in its models.

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. Regalia (estimated sales - 0.3 million units) is at the higher end

with dress watches for special occasions. The Royale range (estimated sales -

0.6 million watches) caters to the gift segment. There is also Royale Crown in the

upper end of the Royale range. Caciques are an office wears accessory that is

gold-plated and leather strapped (estimated sales - 1 million units). Classique

watches are targeted at the older, male segment of the market, and profess

timeless elegance through a combination of fine leather straps, clean classic

dials and sleek cases, thus making it,”A perfect fit for formal wear." Caciques are

the embodiment of everything that is everlasting yet contemporary. These

watches tend to be generic in their simplicity, and find no real competitors, except

HMT: These watches are priced between Rs 550 to Rs 3000.  Though there are

very high priced watches in the above three ranges it is the relatively low-priced

ones that sell. They all target the upper middle class men and women in their

thirties. Royale, Classique and Regalia are the watches that gave Titan the

popularity and the prestige it enjoys.

The Spectra range in this price band is a well-designed bimetal watch

("stylishness of gold and ruggedness of steel"). It sold just 70,000 units in 1997-

98. Titan Industries launched (September, 2001) its range of watches in steel,

targeted at urban men and women in the age group of 25-35 years. The Titan

37

Steel collection has a range of bracelet and leather strap watches for both men

and women priced between Rs 1,250 and Rs 6,000. The range will be retailed

through World of Titan, Time Zone and other retail outlets. The launch of the

steel watches, available in 90 designs, will be followed by an aggressive

marketing campaign.

Titan's Tanishq range initially targeted the European market with limited success.

In India also Tanishq faced resistance because Indian women do not treat

watches as jewelry.

The company is exploring the possibility of filling up the gap in the super

premium segment. At present only Swiss brands have a presence in this niche.

TIL, however, has its Nebula range for both men and women priced between Rs

6,000 and Rs 32,000. The new range is expected to higher price than the Nebula

range. In fact the company's focus would be on niche segments to grow the

market. By planning to launch a brand in the super premium category, Titan

perhaps hopes to be present across all categories. 

Titan's Raga is an interesting product concept that offered to give dials that

match with designs on saris. This promise was unrealistic and Raga flopped

(estimated sales - 20,000 units). Raga is now being launched in more mellow

colors and its positioning changed. Raga silver watch range also did not fare well

because Indian dials.

Titan Industries launched its Fastrack range of watches for women (For Men It is

already present). The ladies watches are available in different finishes frosted,

polished and satin and come in varied geometric shapes with trendy leather

straps and classy metal bracelets. The watches retail from Rs995 to Rs1,950 and

are attractively priced. The watches which have been designed at Titan's creative

studio is the outcome of research that has highlighted the need for a watch that is

38

fashionable, bold, unconventional and designed to accessories western wear. A

collection of watches with contemporary styles those are young and distinctive.

Designs that go from the relaxed and informal to the definitely sporty. The

woman's collection presents the all-new international 'Frosted' look, which is

trendy and chic. The Fastrack collection has elements like cool mesh straps and

features that include backlight and dual time. Also presenting a range of fashion

digitals in contemporary wrist hugging cases with oversized displays and features

that include countdown timers, chronographs, lap timers, hourly chime, alarm

and Hi-light glow.

 

Dash is Titan’s reply to Gimmix and Zap. Dash is available in 3 new collections

for kids - Popeye, Digital and Lumibrite. Titan is the sole licensee of Popeye in

India and this range is priced between Rs350 and Rs395. Giving Popeye of the

spinach-eating fame the additional responsibility of keeping time, the Popeye

brand of watches come in 6 different designs. The Digital range in a collection of

10 digital watches has features like El-light compass and Velcro straps for the

sporty and is priced between Rs425 and Rs 495. and Lumibrite.

39

OBJECTIVES

To know the promotion technique of TITAN.

To know the purchasing power of customers.

To know the craze of watches now.

To study the behavior of retailers.

To know the image of Titan in small cities.

To get the real demand of watches in small cities.

NEED OF STUDY

In India there are 4 metro cities and only 15 to 20 big cities that contain only 25%

of total population of our country and about 75% of the population live in small

cities. If we do not give attention to this major population then any company

cannot be successful in market.

This type of study is very important for Titan Company, in this study customer

research done on the brand image of about 100 customers of various tastes and

preferences and various customers give their views about the company and

about its products and this project include actual figures of various data which is

very important for any of the company. This project not only includes customer’s

views but also the retailer’s views that provide various information to the

company by the use of various pie charts, which give the easily readable data to

the company.

40

RESEARCH METHODOLOGY

Research Brief:-

Keeping the objective of the study in mind it was decide to carry out a survey

among dealers in the various routes in Jaipur. It was done with the help of

questionnaire. This process was carried over a period of 30 days. About 40

dealers were contacted.

This study was aimed to get information about the Image of Titan in small cities

I used some parameters for attaining objectives of the survey, there are as

follows:

(a) In questionnaire, direct question was asked to the dealers.

(b) I have direct discussion with dealers regarding to the sales and about

the competitors.

PROJECT DESCRIPTION

BRAND IMAGE OF TITAN IN SMALL CITIES has designed and developed for

the TITAN Company to know about the image and brand value of the Titan

Company.

This project is to get the real image of the company in small cities so that they

can improve the performance in small cities. This research project is to show how

The gender

The age

The mentality

Their profession

Their income levels

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Research Design

The Research was “descriptive” in nature as is dealt with describing the market

and the behaviour of consumers. The research was designed to discover the

potentiality of “BRAND IMAGE OF TITAN IN SMALL CITIES” at Jaipur and also

the survey of the individuals to know about their perception, the psychological

factors associated with the product, the benefits they are looking forth from the

product and how do they rank in terms of risk and returns associated with it.

Sample Design

The first step in order to accomplish the task was to draw a sample. To serve this

purpose, the sample technique adapted was “Random Sampling”. Sample Size

for the conduct of survey was taken as 50 dealers to get the details with

necessary and reliable information. Also by adopting this procedure it was

ensured that the sample drawn would have the same composition and

characteristics of the population.

Type of Universe

The dealers and retailers, who were dealing in the Titan and other brands, were

the sources of getting information.

Sample Size

Since the population was homogenous in nature to large extent, hence a sample

size of 50 respondents was taken into account to achieve the objective of the

42

study. Other prominent factors, kept in view while determining the size of the

sample, the number of questions in the schedule, the sampling procedure

adopted and the time constraints. Thus it fulfilled the requirements of efficiency,

reliability and flexibility.

Data collection

I have used primary data in research study and it was collected by using

“Random Survey technique”. Keeping the objective of dealers in the various

route of city, it was done with the help of questionnaire. This process was carried

over a period of about 40 days.

Data Sources

Primary data: Interviewing the dealers and collected primary data by the

questionnaire method.

Secondary data: Secondary data was collected from some magazines and

some website and with the help of Mr. Ujjwal.

Research Instruments

Research was done with the help of questionnaire consists of 11 sample

questions.

43

Contact Method

Initially dealers were informed about the project that it is the practical fulfillment of

the course and then requested to give their response to the questionnaire. The

only problem faced here was that some they could not spare their time

immediately to give response. Some time dealers were not aware of English

Language. Thus the language was explained to them in the local language and

then answers were got from them. Thus a structured interview was taken.

Steps to be followed:

Formulation of research problem.

Collection of data.

Analysis of data.

Interpretation.

Presentation of report.

44

FACTS AND FINDINGS

1. CONSUMER SEGMENTATION ON PRICE BASIS

S No. Price BRAND PERCENTAGE

1. Below 400 Grey market-Chinese watches 11

2. 400-1000 Maxima, HMT 43

3. 1000-5000 Titan, Citizen 33

4. Above 5000 Omega, Insigma Calvin 13

2. FAMILY MONTHLY INCOME

S No.

Monthly

Income Percentage

1. Below 10000 47

2. 10000-25000 33

3. 25000-50000 17

4. Above 50000 3

45

3. RANKING OF TITAN IN CONSUMER VIEW

S No. Basis

Percentag

e

1. Brand Image 15

2. Service 20

3. Price 7

4. Guarantee 22

5. Style 9

6. Quality 17

PREFERENCE INDUCES TO PURCHASE

S NO. PREFERENCE

PERCENTAGE

1. Word of Mouth 14

2. Discount 29

3. Brand Endorsement 10

4. Image 47

46

ANALYSIS AND INTERPRETATION

1. CONSUMER SEGMENTATION ON PRICE BASIS

S No. Price BRAND PERCENTAGE

1. Below 400

Grey market-Chinese

watches 11

2. 400-1000 Maxima, HMT 43

3. 1000-5000 Titan, Citizen 33

4. Above 5000 Omega, Insigma Calvin 13

47

2. FAMILY MONTHLY INCOME

S No.

Monthly

Income Percentage

1. Below 10000 47

2. 10000-25000 33

3. 25000-50000 17

4. Above 50000 3

48

In this customer ranked the Titan Company in their own view and also share

about what is the most important for him for the Titan. In this pie chart this is

clearly shown that brand image of Titan is most important for the consumer.

3. RANKING OF TITAN IN CONSUMER VIEW

S No. Basis Percentage

1. Brand Image 15

2. Service 20

3. Price 7

4. Guarantee 22

5. Style 9

6. Quality 17

49

In this pie chart consumer tells about his preference when he is going for

purchase what is most important to him in this pie chart. We know that brand

image of Titan is most important for the consumer but in this pie chart company

cannot neglect anything for their consideration because every single percent is

showing their sales value.

4. PREFERENCE INDUCES TO PURCHASE

S NO. PREFERENCE PERCENTAGE

1. Word of Mouth 14

2. Discount 29

3. Brand Endorsement 10

4. Image 47

50

SWOT ANALYSIS

STRENGTH

Titan retained no. 1 brand in the brand equity survey

Super brand 2003-brand equity award.

WEAKNESS

51

Non-availability of cheaper raw material from domestic sources. Titan weakness

is that Titan has not focused on lower end level rural areas which is contributing

about 40% share in Indian watches market.

OPPORTUNITY

Branded jewelry is less than 2% of the over all market so there is importance of

jewelry to Indian customers. Globalization and revamping of brand India and

Indian brands. Huge market in the exchange business marketing of other brands

in consumer attitude increasing penetration will drive growth of low end mass

market segments.

THREATS

Luxury watches are highly cyclical.

Changing trends in fashion liberalized.

Import of watches in the EXIM policy allows major international players to

enter in the high-end segment. Raw material cost are said to be high

because of high import duties.

CONCLUSION

According to the data collected by the survey method about the company I found

that company performed well if we take overall market of INDIA but if we take

only small cities company do not perform so well. Generally TITAN Brand is not

for the small cities or low-income group people.

52

Titan already made different alternatives in the name of SONATA but still there

are lot of customers who can afford Titan but not purchase it because of some

reason as: Service time taken by the company, sometime there is not availability

of high range watches.

The main targeted customer is between the range of 1500-10,000 because after

10,000 customer will go for another premium watches because of new model and

brand and before 1500 customer has no option to buy this and sometime

retailers convince the customer to other brands due to unawareness of the

customer in Titan company.

SUGGESTION

Improved feedback system.

Need to improve their service or reduce the time.

53

New promotional techniques should be used in small cities also.

Special discount for the loyal customers.

Company should launch new sports model in Fastrack in low range.

New attractive models in range of 1000 to 1500.

Need to operate Customer Care Office to identify the problems of

customer.

Give special credit to small cities for Premium Watches.

Try to keep a strong relationship between the customer and the company.

TITAN QUESTIONNAIRE

NAME_____________________________

1. Gender ?

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M [ ] F [ ]

2. Married ?

Y [ ] N [ ]

3. Members in family ?

a) <2 b) 2-4 c) >4

4. Monthly family income ?

a) >5000 b) 5000-10000 c) 10000-25000 d)<25000

5. Age group you belong ?

a) <15yrs. b) 15-21yrs. c) 21-30yrs. d) >30yrs.

6. You are ?

a) under 10th b)12th c) graduate d) post graduate

7. You are ?

a) student b) house person c) business person d) service person

8. When you wear watches ?

a) daily b) weekly c) occasionally d) never

9. In which way you prefer watches ?

55

a) necessity b) fashion c) need d)jewelry

10. Preference of wearing watches ?

a) classic b) sports c) party wear d) stainless steel

11. Which watch company you prefer wearing ?

a) Titan b) Timex c) maxima d) HMT

12. Have you ever gifted watches to anybody or received ?

Yes [ ] No [ ]

13. How many watches you have ?

a) none b) one c) two d) more than two

14. What promotion induced you to purchase TITAN brand?

a) retailer b) advertisement c) image d) discount e) brands endorsement

BIBLIOGRAPHY

BOOKS

56

Research Methodology by C.R. Kothari

WEB

www.clocksonly.com

www.google.co.in

Wikipedia.org

www.indiainfoline.com

MAGAZINES

1. Business World

2. Business Today

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