a study in brand success

8/6/2019 A Study in Brand Success

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A STUDY IN BRAND

SUCCESS: TITAN

Submitted By (Group2): Anupam Saha (011/1)

Arvind Ekka (013/1)Hari Deepak M (021/1)


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TITAN BRAND OVERVIEW

Joint Venture between Tata Group and TIDCO (Tamil Nadu Industrial DevelopmentCorporation)

Titan watch division came into existence in 1984 as a joint venture between T ataGroup and TI DCO

The company has its Corporate Office in Bangalore (Karnataka) and itsManufacturing Facility in Hosur (Karnataka)

TI DCOholds 28 percent of the shares and T ata Group holds 25 percent of theshares

P ublic holding in the company is around 28 percent. The rest of the stake is held byforeign institutions, NRIs, mutual funds etc.

T itan Industries posted a revenue of US$ 1.46 billion in FY 2010-2011 . Theprojected revenue of T itan Industries in FY2011-FY2012 is US$ 1.83 billion

K ey P eople Founder Xerxes Desai Managing Director Bhaskar Bhat


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TITAN - FINANCIALSFY 2011

(Rs. Crore)FY 2010

(Rs. Crore)FY 2009

(Rs. Crore)FY 2008

(Rs. Crore)FY 2007

(Rs. Crore)

OperatingIncome

6662 4674 3881 3050 2135

Cost Of Sales 6033 4238 3535 2785 1949

PBT 601 324 242 197 134

PAT 435 256 181 153 97

Retained

Earnings

574 384 326 240 145

Earnings Per Share rose f rom 21.16 crores in FY 2007 to 96. 96 crores in FY 2011Cu rrent Ratio rose f rom 1.04 in FY 2007 to 1.2 9 in FY 2011

D ebt Eq u ity ratio reduced f rom 0.75 in FY 2007 to 0.07 in FY 2011


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THE TITAN JOURNEY

1989

Aqu r r f w tc s l unchedT r endy, co lorf u l , s rt nd ff or dab le la sti c w a tche s f or the you th

1992

Raga r ange of w a tche s launchedE thn i c r ange, ta r ge ted a t the soph isti ca ted Ind i an w oman

1993

In si gn i a r ange of w a tche s launchedDisti nc tiv e, top -end w a tche s f or peop le see ki ng e xc lu sivit y and

st a tu s


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THE TITAN JOURNEY

1994

PS I spo rts r ange w a tche s launchedRugged, spo rt y, ma s cu li ne w a tche s wit h spo rts f ea tu r e s lik e h i gh -p r ec isi on ch r onog r aph s

1996

a s h r ange of w a tche so lorf u l , cu te loo ki ng w a tche s t a r ge ted a t ki d s

1997

S ona ta r ange of w a tche s w a s launched Aff or da ble, good -qua lit y w a tche s f or the budge t con s c i ou s


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THE TITAN JOURNEY

1998 - Fast track , a cool , trendy , funky rangeof atches launched for the young-at-heart

1999 Nebula , the solid gold and diamond studded luxury range of atches launched

2001 Steel , a smart contemporary range of atches launched for young orking

executives

2008 Unique and Fascinating ranges likeOctane , Diva , WWF and Zoop launched


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TITAN - VISION

T o be a world-class, innovative and progressive organization and to b u ild India s most desired brands


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TITAN MISSION STATEMENT

T o create wealth for all o u r stakeholders by bu ilding highly s u ccessf u l b u sinesses based ona c u stomer centric approach, and to contrib u te

to the comm u nity


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TITAN VALUES AND STANDARDS


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TITAN S BUSINESSES

W atches

Jewellery

Precision Engineering

Prescription Eyewear

26 co u ntries,Footprint:

Middle-East, Asia


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TITAN PRODUCT PORTFOLIOS

Titan Eye+: EyeWear

Tanishq: Jewelry Titan: Watches

Precision Engineering Division


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TITAN MORE FACTS

December 1994: C er tified under ISO 9001ISO 14000 cer tifica tion in 2002TS 16949 cer tifica tion in Feb 05Crea tive ad ver tising

Aam ir Eff ec tCatalogue Adver tising

Emphas is on Innovation, Q u ality and delivering c u tting-edge-technology All produc ts are ind igenously producedB u siness W orld: Best Design Award in Lifestyle Product Category T itan Edge: The slimmes t commerc ially ava ilable wa tch in the world (3.5 mm)


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KEY PLAYERS IN THE INDUSTRY

INDIAN RANDS F REIGN RANDSHMT (Elegance, Roman)TitanTimex (SLX, Exped ition, Chronograph ser ies)

Wes tar (Activ, Pro file, rna te)Maxima (Gold, Attiva, Aqua)

Car tier

Piage tmega

Gucc iCas io

CitizenTag Heuer

Titan60%

HMT12%

Timex

18%

Others10%

Market Share


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TITAN 4P S


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PRODUCT

Titan RegularFast Track Focused on you th and t rendy f ash ion segmen tSonata Mass Marke tXylys Prem ium Marke tSome Notable Sub-Brands of Titan are:

Titan Edge World s slimmes t w atch ( less is more )Titan Raga The f em inine and sensuous accessory f or today s Ind ian

womanNebula It is an ultra -luxury watch cra fted in solid-gold and prec ious stonesOther no table collec tions : Wall Street, Heritage, Regalia, Octane, Orion,Diva, Zoop, WWF and Aviator series


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PRODUCT LEN TH


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PRODUCT LIFECYCLE STA ES

Int roduc tion Stage : WWF, Orion, Zoop, Diva, OctaneGrowt h Stage : Nebula, Ins ign ia, Raga, Regal ia, EdgeMatur ity Stage : Sona ta, Fas t-Track, DashDecl ine Stage : Acura


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PLACE

Over 3 11 exclus ive World of Titan ShowroomsOver 665 re ta il stores all over Ind iaOver 120 Tanishq and Zoya bou tiq ues J ewellery Re ta il cha in

Over 29 Gold Plus storesOver 15 0 Titan Eye+ storesOver 65 0 after-sale-service-centers


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PRICE

M ass Segment (Rs. 350 R s. 600 )Titan Sona ta, Aqura and Bas icsCompe tit ors : HMT Lalit , Che tan, Che tak e tc.

Popular Segment (Rs. 600 R s. 900 )

Titan ZoopCompe tit ors : HMT Somya

Premium Segment (Rs. 900 R s. 1500 )Titan Fas t-TrackCompe tit ors : Timex Vista, HMT Sangam

Super-Premium Segment (Rs. 1500 R s. 8000 )Titan Raga, Titan Purple, Titan Orion, Titan Octane , Titan EdgeCompe tit ors : HMT Elegance, Timex Ind iglo

Connoisseur Segment (Rs. 8000 R s. 1 ,50 ,000 )Titan Nebula , Titan Xylys

Compe tit ors : Omega, Tisso t , Piage t , Long ines, HMT Gem


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WATCH MAR KET MAP

Citizen

TimexRs 500 1000 2000 4000 5000

30,000 +

Formal / Classic

Fashion/Sporty

Sonata (Mass-Segment)

Swa tchGiord ano, arrer a (Tag Heuer)

Tissot

O ega, R ado,Longines

P rice

XYLY S

10000

Nebula

Raga

Octane


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P ROMOTION

Advertising M edia:Tele visionPrint M ed ia

Titan Brand Ambassadors:Titan Brand : Aam ir Khan

Sona ta : Mahendra Singh Dhon iRaga : Ran i MukherjeeXylys: Rahul Bose

Public Relation:Gift Concep tPromo tion on occas ions

Sales Promotions:Sponsorsh ipSeasonal ityPromo tion through con tes tsExchange Off ers


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TITAN BRAND POSITIONING

Titan s ne w concep t of Matching W atches to C lothes in its recen t commerc ialsFast T rack was in itially pos itioned as C ool W atches From T itan targe ting 20-25 year oldsBased on the marke t sur vey repor t w h ich concluded tha t 42% of Fast T rack c u stomers belonged to the 15 -20 years age category its pos ition ing statemen t w as changed to H ow Many yo u have? Fast T rack brand pos ition ing statemen t encourages mul tiple watch ownage concep tFast T rack also launched range of f ash ion accessor ies like sunglasses and bags wit h the inten tion of becom ing a lif es tyle brand


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TITAN BRAND POSITIONING (CONTD.)

Titan in itially p ioneered the concep t of Gifting WatchesWit h the ne w t agline B e More Titan has repos itioned its watches as a f ash ion accessory

Titan Aviator It i s pos itioned as For those who love f lyingTitan Her itage is insp ired by cultural/her itage monumen tsTitan Octane It i s pos itioned as For those who are f asc ina ted by car rac ing

Titan Raga It i s pos itioned as the sensual, luxury range f or women


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TITAN MUSIC TRACK

Titan s mus ic t rack is an endur ing par t in its ad ver tisemen tsSegmen t f rom Mozar t s 25 th symphony chosen by Xerxes Desa i

It is arguably Ind ian ad ver tising s mos t memorable t rack

It has been rendered in many inno vative alterna ted vers ions :Ind ian Class ical, Ind ian Folk, Opera tic, Rock and Funk


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PORTERS FIVE FORCES MODEL

D egree of Rivalry Increased number of firmsLow swit ch ing cos ts

Su pplier power No Strong Suppl iersLack of barga in ing PowerRise of Ch ina, Ta iwan as low-

cos t suppl iers

B u yer Power Price Sens itivit yBuyer Pre f erences

T hreat of S u bstit u tesMob ile Phones

Barriers to Entry Clutt ered marke tLack of

Diff eren tiation


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TITAN SWOT ANALYSIS

StrengthsStyle Fashion AccessoryQuality or Price PositioningBrand ImageM arket Segments with large potential

Presence of popular features likedates, multifunction and chronographs

Guarantee / Warranty Schemes

WeaknessesM ain USP is low-end watchLack of Futuristic visionLack of Flexible thinking

OpportunitiesSales in India stand at 2 5 watches per

thousand people compared to 2 5 0 watchedper 1000 people in developed economies

Rural M arketExchange Offers

ThreatsReduced Profit M argins - Too many

players can dilute the marketThreat of low-priced watches from ChinaM obile Phones


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TITAN REPOSITIONING STRATEGIES

Tagline and logo changed in 2008 - N ew Tagline B e More f rom W hat s yo u r style

Use of Aam ir Khan e ff ec tively as a brand ambassador in TVcommerc ialsIncrease Pene t ra tion in Tier -3 citiesTitan should int roduce a ne w brand in n iche marke tRe ta in Existing cus tomers I ncreas ing number of ser vice cen ters and loyal ty cards


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CONCLUSION

To tal volume of Ind ian watch marke t is around 42 m illion un its ou t of wh ich only 15 m illion un its are f rom organ ized re ta il players P o ten tial is hugeThe cr icke t connec tion wit h Mahendra Singh D honi As the young work f orce of Ind ia is rap idly gro wing, d isposable income is rising . Hence Titan should f ocus on promo ting super -prem ium and conno isseur segmen tsMarke t Pene tra tion st ra tegy into rural marke ts f or Mass and Popular Segmen ts (eg . Sona ta)They ha ve to f ocus more on de velop ing R&D wh ich wi ll help them in compe ting wit h interna tional players like T ag H e u er and T issot


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a study in brand success

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