titan watches- a case study
DESCRIPTION
TITAN- The manufacturers of worlds slimmest wrist watch. Established in the year 1984 and now is the world's fifth largest manufacturers of wrist watches and exports to 32 countries around the world and accounts for 60% share of of total Indian market.titan watches offers a range of brands including Steel, Regalia, Raga, Nebula, Sonata, Fastrack, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane, the HTSE series and now claims to have manufactured world's slimmest watch.TRANSCRIPT
Samriti Gosain
A brand innovation case study
Why study Titan watches ?
Use of innovation
Broadest range of watches
Brand leader in the country of its origin
Only branded watch company to originate from a newly industrializing country
Became the best brand in a short time
Introduction : History
• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
WH
O?
WH
EN?
WH
AT?
Introduction : History
• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
• Established in 1987 • Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team. • Third Indian watch manufacturer after HMT and Allwyn.
WH
O?
WH
EN?
WH
AT?
Introduction : History
• World's fifth largest wrist watch manufacturer. • Designer and manufacturer of India's largest and best-known range of personal accessories • Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
• Indian designer and manufacturer of watches, jewellery and other accessories including sunglasses, wallets, bags and belt. • Precision engineering is another area of specialisation.
• Established in 1987 • Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team. • Third Indian watch manufacturer after HMT and Allwyn.
WH
O?
WH
EN?
WH
AT?
Today, Titan watches account for more than 60% share of the total Indian Watch Market. Sold in about 32 countries through marketing subsidiaries based in London, Aden, Dubai and Singapore.
Titan offers various brands including Steel, Regalia, Raga, Nebula, Sonata, Fastrack, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the HTSE series.
Introduction : History
Evolution of Titan
1984
+
• Joint venture • Electronic watches • 150 designs
1986
+
Digital & ana-digital watches
1989
‘Aqura’ range of watches launched
• ‘Aqura’ sold to Timex • Consultancy services • Marketing strategy outsourced
1991 1992
• ‘Raga’ range of watches launched. • “Spectra” range reintroduced
1994
• ‘Tanishq’ range of watches launched • ‘Insignia’ launched in India
1995
+
‘Sonata’ range of watches launched
1996
Tim
elin
e
‘Dash’ range of watches launched
2001 2000
• ‘Cyber’ range of watches launched • ‘Titan-Fastrack’ launched • ‘Baarah nai toh tera ampaign with pizza hut • ‘Classique’ collection
launched
2004
‘Crown’ range of watches launched
‘Vizag’ range of watches launched
2005 2006
‘Xylys’ range of watches launched
2013
‘Edge’ and Braille watches launched
‘Octane’, ‘Obaku’, ‘Automatic’, ‘Purple’
range of watches launched
Innovation
strategies should lead to inimitability of strategic options that come from certain tacit knowledge elements or embedded organizational processes
1
Strategic options an innovation provides should lead to sustainable competitive advantage.
Innovation should enable a firm to retain superiority in the market place. 2
Strategic innovation should allow a firm to pursue strategic options without loosing its flexibility.
3 Options pursued should lead to durable benefits 4
5
Tech
no
logi
cal
Innovation Increased reach: Retailing
Cycle time reduction
Continuous feedback
Constant review
Multi-brand outlets
Service excellence
Slim watches
Watches for disabled
Better finishes of watches
Designing watches through visualisation
Broader ranges of watches
Robust design of watches
Organ
isation
al Innovation
+
Innovation
Agility and openness to change
Product richness Alliance relationships,
cross-functional teaming and design automation
innovative approach to extend the reach to all major customer centers through the ‘watch supermarket’
concept.
Superior brand reputation
Global brand World–class manufacturing New image driven by innovation
High torque stepper motors for high reliability Vapour deposition technology for appearance parts Cycle time reduction through concurrent engineering World’s thinnest watch movement
Concept marketing instead of product marketing Brand image building in Europe Brand leveraging in other personal product segments
Global procurement Total Quality management at the suppliers end
Training new & young staff to have a new corporate culture Cross cultural marketing
Innovation
Inn
ova
tio
n in
Val
ue
Ch
ain
Conceptualisation
World class manufacturing
Thorough assessment of competitive trends
Customer orientation
Design
Design studio
Networking into the world of design
Design software CAD/CAM
European design ideas
Continuous renewal of models
Operations
Short product realisation cycle times
Rich styles
Integrated manufacturing
Innovative technologies
High quality orientation
Wide range
Distribution
Multi channel distribution
Institutional sales
Dealer training for attitudinal change
Marketing & Sales
Flagship showrooms
Multi-brand showrooms
Selling competitive products
Rapid increase in reach by locating outlets in smaller towns
Rapid brand extension
Service
Front service offers
Spare parts warehouses
Short service cycle time
Intensive training for service excellence
What does all the innovation lead to?
Slim watch design
Titan has claimed to have manufactured the world's slimmest wrist watch branded as Titan Edge with a total thickness of 3.5 mm and a movement of 1.15 mm.
Watches for specially-abled
Better finishes, materials, broader ranges, robust design
Better finishes, materials, broader ranges, robust design
Better finishes, materials, broader ranges, robust design
Brand Extension Titan started a strong Total Quality Management initiative encompassing to extend the excellence it had achieved in watches to other products of titan as well.
Design
Engineering
Manufacturing
Logistic and service support
Competition from lead competitor
Minimum return during sale period
Quality was central the
High torque stepper motors
Durable finishes using vacuum deposition
Large range of styles in a short time frame
Distinct in appearance & style
Art and design studio was set up
Help from European designer
Art software & computer aided design
Watches are elegant & rich in style
Retail networking and richness of product Des
ign
Strategy
Man
ufactu
ring
Strategy
+
‘Telling the time’ product
‘Personal’ product
Rock-solid vision
Best staff-mix
Thorough market analysis
Right market segment
An organisation with: Design Manufacturing competence (Automation) Marketing competence Driven by: Futuristic mindset Contextual insight Business foresight
Volume creation: When Titan entered the market, the share of analog watches was just 5% Target the high opportunity segment Position itself as a premium brand Roadmap
BRAND
CREATION
Rock-solid vision Best staff-mix
Thorough market analysis Right market segment
Why do Indians prefer watches made abroad ? Nature of market Competitor offerings Analyse operation of competing brands Customer requirements Identification of major gaps:
Styling, service Retail reach Showroom interiors Capability of franchisees Attitude of retailers towards customers
Main weakness in the Indian market: No brand had a strong personality
Started the company with a group of executives with rich but varied experiences:
MD from Tata group Professional executives with extensive experience in watch manufacturing Executives with marketing experience specifically in retailing.
Medium range market Large to handle High growth potential
Quick segmentation ‘Doing it right the first time’: Usage of innovative advertising campaign to create & position the brand
Loyalty
Attachment
Sense of communication
High Quality
Trustworthy
Superior
Pride
Status
Social approval
Reliable , sturdy
Long lasting & durable
Chronographs , alarms
Stylish and trendy
No. of models, colors
Segmented approach
Wrist watches Pocket watches
Brand loyalty (What about you & me?)
Brand response (What about you?)
Brand meaning (What are you?)
Brand identity (Who are you?)
RESONANCE
JUDGEMENT
PERFORMANCE
BRAND SALIENCE
Brand Association
REASONS NO. OF RESPONDENTS
Attractive Design
Reasonable price
Brand image
Good quality
39
7
22
25
Reasons for Brand Loyalty
Types of media NO. OF RESPONDENTS
TV
Magazine
Newspaper
Hoarding
46
25
36
15
Advertising
Reaching the customers Speed and surprise are the crux of successful competitive strategy . -Art of War
Increased reach: Retailing
320 STORES 130 CITIES
Exclusive outlets in the best commercial locations in major cities as well as in smaller cities at a fast pace that no other competitor could match. First watch to open exclusive watch showrooms in India.
Increased the number of showrooms, thereby expanding the reach. Increasing the coverage of retail outlets to reach as many as 6000 locations. This is about 10 times the number of outlets of the lead competitor. increase in reach = increase its volume.
SHO
WR
OO
MS
REA
CH
PR
OD
UC
T D
ESIG
N
Titan reduced the time cycle, short cycle time helps in responding to changing customer needs and also helps in surprising competitors. Use of visualization, design automation, concurrent engineering and rapid test marketing.
Service excellence Sustainability of brand reputation comes from service excellence.
Titan started “Titan watch care centres” in major user areas. These exclusive front office service centres provide quality service with a very short response time. This again was an industry-first innovation achieved by Titan.
1 Titan trained its service personnel to have a good attitude to customers when they come to its service centres, so that problems are handled in a customer friendly atmosphere.
2
3 Titan started spare parts centres in major locations to improve parts logistics. The service attitude, the service focus and the service support became the basis of service excellence. This helped Titan to build up customer capital.
Through service excellence, it targeted enhancement of customer loyalty leading to customer retention. Titan, thus, evolved a business model that others found difficult to replicate.
Service Excellence
Service policy
Repair the hurt feelings of the
customer
Repair the watch
Repair the damage to
TITAN reputation
www.titancare.co.in
Repair status
Service news
Service network information
Service feedback
Do’s, Don'ts, Tips
Quality policy & Service offerings
Globalization : International reach
32 COUNTRIES 2000 stores ; 135 million customers
became one of the first brands in the non-consumer goods segment from India to be sold in Middle East, East Asia as well as Europe.
* Regular interaction and systematic analysis of feedback * Training and skill development in cross-cultural marketing * Incremental approach supported by rapid learning and review * Rapid learning and rapid adaptation to changing requirements in new markets. * Continuous communication, dialogue-based goal setting & fear-free feedback.
Globalization : Strategy
Contemporary style + Excellent quality + affordable prices = Global Success
Globalization : Strategizing
Thank You