Debashish Brahma.Management & Marketing

Consultant, BySpeaker, Marketing Faculty, Management

Blogger.

TITAN

Titan most admired brand

•The Titan customer is known to indicate a strong sense of trust and loyalty towards the brand.

• Titan has been voted Most Admired Brand (across categories) and the Most Admired Consumer Durable Brand several times. •Titan is now the 5th largest watch producer in the world.

WORLD OF TITAN

The Watch Market & Industry in India

• India is an under-penetrated market for watches – only 27 % of Indians own a watch

• Total estimated market in 2008-09 Volume ~ 43.5 mn units & Value: Rs 3000 Crores (USD 600 Mn)

• Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume)

• Market has been split into: Low end, Mass market, Premium, Luxury

INTERNATIONAL BUSINESS• One of India’s first companies to market a

consumer brand overseas.• Now present in 26 countries outside India• Among the top 3 brands in some Asian

countries• Selling over 675k watches annually with

increasing presence in jewellery. • Total export sales of over Rs 130 crores in

2008-09

TITAN Citizen

Timex

Watch Market Map

Rs 500 1000 2000 4000 5000 30,000 +

Formal / Classic

Fashion/Sporty

Sonata, HMT,Maxima

Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger

Raymond WeilTissot

Omega,Rado, Longines

Tag Heuer Hugo BossC Dior

Price

Fastrack

XYLYS

10000

Nebula

The Five Year Story….Multiple Businesses, Brands & Geographies

WatchesJewellery

WatchesJewellery

SunglassesEyewear

Precision parts

PRODUCTS

TITANSONATATANISHQ

TITANSONATA

FASTRACKXYLYS

TANISHQGOLD PLUSTITAN EYE +

BRANDS

200 STORES IN INDIA

ANDPRESENCE

IN 17COUNTRIES

500 STORES IN INDIA

ANDPRESENCE

IN 26COUNTRIES

GEOGRAPHIES

2 DIVISIONS3 PLANTS

WITH2500

PEOPLE

10 SBUs9 PLANTS

WITH4500

PEOPLE

UNITS

Watch Care CenterClose to 300 Titan service centers across Indian

All repair activities follow a strict and systemic process, controlled & measured through ISO audit system

A chain of high profile outlets called “the world of titan”

Features: decent seating, air conditioning, magazines etc

Services Offered:-• Servicing of the watch.• Replacement of required spare parts.• Replacement of strap/bracelets and battery.

Frontline Performance Important Programme

Recruiting right person for the right jobTraining given to ensure high quality customer interaction. Such as:-

• Greeting the customer.• Problem Understanding.• Resolving Doubts & quarries.

The quality of service was maintained by monitoring & measuring their performanceCustomer satisfaction was measured through a feedback formValue addition by offering stand by watches in case of long repair times and home deliveryFeedback from customers on their experience was solicitedGreeting customers, problem understanding, resolving doubts

Point of SaleTitan is an innovative leader in the supply of Point of Sale ( POS ) software and solutions, with a special focus on the retail sector.

•Progressive•Scalable •Affordable Retail Solutions

Titan’s success in both the supply of turnkey solutions, software and other services relies on their customer centric approach

This point of sale solutions are designed to deliver - improved operational productivity - greater control of inventory - management of the business process This is scalable from a single independent retailer through to a multi-branch enterprise

Multi-user Terminal POS System

Invoicing

Quick Search

Scale Items

Discounts

Cash Record

Payment Splits

Multiple Tax Rates

Re-Print

Modification Option

Touch PointWin pos – 1.quick search 2.customer and transactions records 3.track report sales

Trade soft- 1.stock control facility 2.full client history of all transactions

Value Addition & Re-Shaping Watch Industry

In 1985-86 – No choice available

In 1986-87 – Titan enter in the market

Titan offer international quality/style at an affordable price

Offered different range of product according to the taste & preference of the customer

Shift in the structure of demand. Eg: Titan, Sonata

Emergence of distinct consumer segment.

Sub branding strategy• Raga• Fastrack• Nebula

Gap Identification

Existed in the product & retailing standards in the Indian watch industryPremium brand for luxury segment

Emergence of new channels

Significant increase in competitions in all segment

Set up a chain of service centers, with the close proximity to the market place

The Titan Signet Club

Customer loyalty programme

Customer Relationship Model

After Sales Service

Human ResourcesAppointment of right staff & train them to ensure high quality customer interaction

Interaction involved- Greeting the customer, Problem Understanding, Stand by watches in case of long repair, Home delivery

Collected feedbacks from customers

Increased service period by two hours i.e. 9am- 7pm with no breaks in b/w -before it was 9am -5pm

The Human Resources Focus checks the appraisal system, the work environment, and the Training and development of the employees

High quality tools and equipment was supplied to sustain repair quality

Updates on technical information were provided

The quality of service was maintained by monitoring and measuring their performance

Complaint Handling Technique

Titan realized that relationship with its customers just starts with the customer buying its product.

Set up After Sales Service & support centre called ‘Watch care Centers, through out the country.

It Includes: Decent seating-A/c, Drinking water, Magazines, Browsing, Pleasant music, Education posters, See through repair Shop to let customer know what is taking place.

BenchmarkingBench marked better with best service centers to improve efficiency-customer evaluated service on 10 parameters & gave their feed back on 10 points-suggestions were welcomed & best suggestions were rewarded-introduced SIGNET program focused on

Building a special relationship with high lifetime value titian customers

Recognizing & rewarding the loyalty of customer to titan

Providing a platform for direct feedback from the valued customers to the company

Company has a world class design studio for watches

85% of Watch Population

Titan received the award for the most admired Time wear Brand of the year in 2009

Titan is ranked No.1 in the consumer durable category

Titan is a leading brand in India & the World’s fifth largest watchmakers

Titan watches collections caters everyone’s fashion taste

Value for money

Innovative Technology

Quality of Service

Replacement of required spare partsBattery replacementReplacement of strap and braceletHome delivery facility at nominal costExtended maintenance warranty2 years guarantee from the date of retail purchaseGuarantee of plating and battery for the period of 1 year from the date of original purchaseTitan Customer Service markets spares and accessories, such as batteries, leather and metal bracelets to all outlets that sell Titan, Sonata and Fastrack watchesStaff encourage customers to use only original spares in order to ensure quality and satisfactionTitan Customer Service, is ISO 9001 & 14001 certifiedAll repair activities follow a strict and systematic process that is controlled and measured through an ISO audit system

Feedback Forms

We enjoy having you as our customer and we are committed to making our relationship together as exciting as possible. In order to continue this journey smoothly we would like to appreciate your suggestion and would like to know about our service.

Your nameYour addressYour email-idYour mobile

Customer expectationOffering quartz technology with international styling

It brought international brand into Indian Market. eg.: Tommy Hilfiger

Integrated supply chain management changed the way watches are designed, manufacture and marketed

Understanding the Indian consumer’s psyche

Best quality material and watches offer long-lasting value to customer

Titan follow 3R’s• Repair the hurt feeling of customer• Repair the watch.• Repair damage to Titan reputation.

Signet Programme

Titan has Titan Signet a 130000 member club that looks to build relationship through rewards, regular discount and special offers

Titan Signet also provide a platform for direct feedback from these valued customers

Titan Signet enrollment and membership card is provide if he become a member of titan Signet

Most of exclusive service and benefits are available to Signet member

A host of exclusive services and benefits are available to Signet members , such as:

Exclusive Offers on Watches and eye gear at The World of Titan , Titan Watch Care Centres as well as on other premium brands

Being the first to know about new product launches & Invites to previews

Free Gift Delivery Service through The World of Titan

Priority Service at the Titan Watch Care Centres

The key to availing rewards and benefits is the Titan Signet enrollment and the Titan Signet membership card. Any customer at The World of Titan can become a member of The Titan Signet if he / she has bought: Any single product worth Rs 2000 or more

Any Titan Raga Watch (irrespective of price)

Any Fastrack watch or eye gear worth Rs.995 or more

A total bill value of Rs.3000 or more which may include Titan Gift Vouchers

•Earn reward points every time you shop at World of Titan; these points can be accumulated and availed as a discount on future purchases

•An investment for future purchases •Receive a welcome gift on enrolment •Be privy to exclusive offers/bonus points from time to time •Receive regular updates via sms and e-mail on new arrivals, latest offers and campaigns

Titan Signet is the exclusive Loyalty Programme of the World of Titan. As a Signet member, you will -

Transformation of Satisfied to Loyal Customer

The role of salespeople in the world of titan is both building and promoting relationship   The basic premise of Titan’s Service Program is to offer superior value to customers in an effort to turn prospects into customers, customers into satisfied customer, satisfied customer into loyal customers.

Positive Image Building

Its mission was to create a sense of belonging of the customer to the store and vice versa by.

Building a special relationship with high life time value Titan customers

• Recognizing and rewarding his/her loyalty to Titan

• Providing a platform for direct feedback from these valued customers to the company

Brand Ambassadors

Titan Brand: Aamir Khan

Sonata: Mahendra Singh Dhoni

Raga: Gul Panag, Rani Mukherjee

Xylys: Farhan Akhtar

World of Titan Store

Titan provides an ‘extra’ touch to its special customers at the exclusive “World of Titan stores” where Titan Signet is the exclusive Loyalty program

•Complimentary membership•Reward points •Welcome gift on enrolment•Gift Cards

Sense of Belonging/Mind Share

Service centre

Feedback system

Gift card

Building Customer Loyalty

Trained Showroom Personnel

Tracking of enrolments in the program are tracked on a monthly basis for each showroom, along with data on purchases made by Signet members who have returned to the showroom to buy again.

Retain Loyal Customer

Titan's loyalty Signet program - where customers can redeem their points – is part of Titan’s effort to retain and value its loyal customers

Titan Industries’ service centre network is committed to deliver a satisfying post-sales experience to all the customers.

A post service follow-up (for major repair activity) is mandatory to complete the cycle of customer satisfaction.

Signet operations form a part of the quarterly appraisal for their showrooms, thereby ensuring that they earn more marks on their efficient and effective performance

• A grievance re- dressal system is in place to ensure that our valued customers are responded to within stipulated time.

Up selling

Up-selling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sales.

Some examples of up-sales include:•Suggesting a premium brand of alcohol when a brand is not specified by a customer (such as if a customer simply requests a “Rum and Coke").•Suggesting a customer purchase more RAM or a larger hard drive when servicing his or her Computer•Selling luxury finishing on a vehicle•Suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one being considered

Cross Selling

Cross-selling is the action or practice of selling an additional product or service to an existing customer

Examples•A Life Insurance company suggesting its customer sign up for car or health insurance•An wholesale mobile retailer suggesting a customer choose a network or carrier after one purchases a mobile.•A television brand suggesting its customers go for a [home theater] of its or another's brand.

Factors that Increase Cross-SalesFirst is the price . Also, how well the additional product or service fits their needs and wants, how much the customers appreciate the main product they want to buy.

Subconscious Brand Shape

Right Brain

Habitual Habits

Left Brain

Logical Reasoning creative

5% - 15%95% - 85%

Habitual Buying behavior

QUESTIONNAIRE 1.Which sub-brand of Titan watches do you possess?a) Fastrack  b) Sonatac) Ragad) Nebulae) Others, please specify…………………………… 2.Since how many months / years have you been using Titan watch? 3.Why do you prefer Titan brand?a) Attractive designs, b) Reasonable pricec) Brand imaged) Good quality 4.Do you remember the original tagline of Titan watches? If yes, please mention. 5.Have you seen the advertisement of Titan watches? a) Yes b)No 6.In which media have you seen the advertisement?a) TV b) Newspaper c) Magazinesd) Hoardingse) Radio

7.Who is the brand ambassador of Titan watches? 8.Are you aware of the new tagline of Titan? 9.How do you rate the new designs of Titan?a) Poor  b) Averagec) Above Averaged) Goode) Excellent 10.Have you seen the new campaign of Titan?a)Yes b) No  11.Do you think the new advertisement is effective in inspiring consumers to have a newl ook everyday and be more in lives?a) Not at all effective b) Effectivec) Highly effective 12.How do you rate Titan’s exclusive showrooms with respect to the following:(1–Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent)a) Ambienceb)Sales personnelc)After sales serviced)Display of watchese)Overall showroom 13. What suggestions would you like to give to improve Titan’s brand image among customers?

3D’SDATABASEMembership through value based enrollment which records profile of the customer through data base

DIALOGUEProcess of interacting directly with prospects and customers

DIRECT MEDIARewards programme through points reward system for each purchase

Market Share of Key Players

Market Capitalization (Rs. Crores)

Crossed US$

1 Billion

* Significant growth over the past three years * Rs. 800 Crores Sales excluding exports and after-sales service (over Rs 1200 crores at retail prices)

Profits

Consistent growth * PBT (2005/06) - Rs. 90 Crores * PBT (2006/07) - Rs. 96 Crores * PBT (2007/08) - Rs. 133 Crores* PBT (2008/09) - Rs. 127 Crores

ROCE

* ROCE (2005/06) - 50% * ROCE (2006/07) - 50% * ROCE (2007/08) - 62%* ROCE (2008/09) - 52%

Revenues

ROCE

OUR WATCH BUSINESS – OVERVIEW

3 8

T h e la s t f iv e y e a rs s a w a th re e - fo ld g ro w th … .

11351481

2136

30413848

0

1000

2000

3000

4000

5000

2005 2006 2007 2008 2009

Incom e in R s C rores

3 8

… and in the n ex t five ye a rs w e w ill be com e a U S $ 2 b illion co m pan y !

45625776

7266

933011450

0

3000

6000

9000

12000

2010 2011 2012 2013 2014

Incom e in R s C ro res

MAJOR COMPETITORS

Domestic Level• HMT• Maxima-quartz• Rado• Casio

International level

• Espirit• Swatch• Citizen• Tag Heuer• Seiko• Cartier• Giordano

Fashion Houses•DKNY•Gucci•Adidas•Nike•Bvlgary