titan case study

5/20/2018 Titan case study

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Titan Industries Limited, is a joint venture of the Tata Group an

Nadu Industrial Development Corporation (TIDCO)

Entered the watch market in 1984.

In 1987 set up production facilities for the manufacture of Quaanalogue electronic watches.

Leader in Indian Quartz watch market- the fastest growing seg

the industry.

Sold 7,50,000 watches in the very first year and crossed the 3 Mmark by fourth year.

Titan has more than 60% share of the Quartz watch market.

Introduction


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1990s were a decade of expansion and growth for Titan.

Motion expansion plan in quick succession for achieving capacity ofpieces.

By 2001, Titan was making and marketing over 6 Million watches.

Became 6thlargest global player in the manufacturer brand category

The companys currently sold in about 40 countries of the world.

Expansion and Growth


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The entire evaluation of the strategies are being carried out on the of the 4 Ps of marketing mix

Product (High Quality product)

Price (High Profile distribution)

Place (Effective Brand selling)

Promotion (Effective Promotion)

Marketing Strategy


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Titan made its product choice very sensibly.

Options available : Mechanical and Quartz.

HMT already established a benchmark in Mechanical.

Titan decided to go for both, stick exclusively to Quartz.

Choosing Quartz, Titan was able to enter the industrywith lesser investment.

Market Study


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A wide product rangeover 1000 models.

By offering wide range, customers tempted to own more thenwatch

Designed different watches that matches Ones dress and occa

Segmented the market and made distinct offers for each segm

Spotted a market in India for expensive Jewellery watches.

Introduced Aurum line in the price range Rs. 20,000 to Rs 1,00

Bought in designer watches, the Euro Collections, designed byEuropean designers.

Product Strategy


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Early stages, Titan had to obtain a good portion of component

outsourcing from vendors developed within the country.Titan was clear over the long term, bulk of requirements shoul

made in-house.

In-house manufacturing was essential to maintain high produc

Soon launched a programme of Vertical Integration.

First phase involved watch case manufacture, later moved on tproduct components.

To Ensure Quality, Titan resorts to vertical Integrat


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Titan has been positioned as a premium brand, providing high

productsTitan changed the consumers very perception about watches.

Re- Positioning as a fashion accessory.

Titan initially pioneered the concept of "Gifting watches".

Customers who were fed up with ugly time machines welcomebrand Titan.

Positioning Strategy


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Voted for the showroom idea and started franchising a networ

trendy Titan Showrooms.More emphasis was laid on dcor, the ambiance, the selection

and the level of inventories.

Titan insisted on attractive showroom in the best location as criterion in dealer selection.

Titan wanted to franchisees to perceive the Titan business as odealing in ornaments, rather then watches.

Titan was able to recruit excellent franchisees within a short pe

Distribution Strategy


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Titan watches are now sold from more than 6000 retail shops,

throughout the country, covering 1200 towns.Titans 140 exclusive showrooms(World of Titan) and 150 mult

showrooms (Titan Time Zones) have set a new trend for watch in India.

Spent over Rs 20 Crore per year for advertising in the initial ye

Sales promotion schemes like Gold Bonanza

Dealers and Promotion


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Titan laid down its service objectives very carefully.

Titan belief that when customer walks into a shop to get a Titaserviced, there are in fact three types of repairs which need to effected: repairing the watch, repairing the feelings of the custrepairing the damage done to company's image.

Titan made its service a much talked about affair.

Titan under priced repair and service charges, and battery andreplacement spares.

Marketing Mix : Customer service


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Branching off into the international markets would help in gro

would also fortify the brands image in home market.Entered global market with its Euro collection and jewellery wa

Two distinct segment, namely the Rs 9,000 to Rs 15,000 mediucategory and the Rs 15,000 to Rs 80,000 top of the line categor

Started a company in London- Titan International Marketing Lt

Titan watches are now selling in over 350 shops in UAE, Omanand Qatar.

Going Global


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Titan entered the low price segment to enlarge its business.

Huge potential in the Rs 300 to 500 segment, virtually untappeIndian manufacturers.

Nearly 50 % of lower segment of the 20 million unit watch wasmainly by grey market operators.

Titan worked out a tie up with Timex Corporation of the US.

With Timex Corporation, mass production has always been thesuccess.

To start with, Timex offered around 200 models in four distinct

Plan was to release 800 models over a period of five years.

Titan with Timex


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Tie up with Timex served Titans overall strategy of confrontati

HMT.Idea was to Knock out HMT in lower end of watch market with

getting into the mechanical segment.

By offering a lower priced Quartz model, the switchover frommechanical could be accelerated.

Titan succeed in making inroads into HMTs stronghold througWith Timex, it was able to capture 75 % of Quartz watches ma

India,

HMT started to decline and losses went up to Rs 53 Crore in 19

Titan Attacks HMT in Low Price Segment


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HMT launched its Elegance series of watches in the prices range of RRs 3,500.

Rs, 5 crore investment in ad campaign for Elegance series in order toQuartz range in particular.

To strengthen position in lower end, HMT launched low priced digitaand the plastic Quartz rangepace and Astra.

New strategy had to naturally cover the distribution aspect.

Came with a plan to renovate 30 showrooms and expanding its deal

network from 700 to 1,000.Invest Rs 100 crore for expansion and technological up gradation.

Introduced some attractive sales promotion schemes like Festival of

Also offered items like air-conditioned Maruti Omni as prizes to retaenlist their support for campaign.

HMTs Defense


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HMT had unique strengths like its infrastructure, its cast techn

manpower and capability to make almost all the components oQuartz in house.

But HMT failed to work out a winning marketing strategy usingstrengths.

It did not adequately recognize the need for aesthetics and var

product like watch.It had a very limited number of designs unlike Titan.

HMTs assessment that Quartz would remain a restricted markproved wrong.

Reasons for HMTs Decline


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Titan wanted to target the semi-urban and rural consumers as

Titan launched a detailed study of the Rural markets, based onset up outlets in Rural areas with a view of getting closer to con

Titan wanted to modify its positioning as well, which was origipositioned as an elite product.

Titan stood as an omnipresent national watch brand, meeting

demands in quality, fashion and prices.Wanted to strengthen their distribution and promotion furthe

Titan allocated an advertisement budget of Rs 42 Crore, for fis2001 as compared to rs 35 Crore, the previous year.

Factors Forcing Titan to Modify market Strateg


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Launched another Gold range watch Nebula with 24 models. A

well to do, 25 years plus segment.Moved up in technology and brought in the Digital Fastracka

digital watchers, designed exclusively for the young and sporty.

The range consist of features like multiple time zones and alarmcountdown timers, stopwatches and format digital display.

Titan launched Dash!, a new exciting brand of watches for chithe market for children watches in India is virtually untapped.

Dash was made available in 28 cute designs with Sporty looks fand pretty patterns for girl, affordably priced between Rs 250 a

Product Innovation


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The first priority has been to resolutely drive down unit costs t

product and process modifications and aggressive sourcing.The second priority has been to boost asset productivity by pro

more with less: less of men, materials, machine and time.

Resorted to re-engineering of virtually all its watch movementensuring greater cost advantage.

Launch of SAP R/3 based enterprise resource planning (ERP) syincorporating a supply chain management progress across the decision.

Titan Develops Cost Advantage


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titan case study

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