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Retail Mix at World of Titan

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Submitted to
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Submitted by
Hitesh Goyal

Batch PGPRM-9
Word count 4110


 
 
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At the outset, we would like to thank Titan (Corporate office) for giving us an approval to do this
project.

We thank our company guide, ~
 

 (Visual Merchandising Head), Titan for their
encouragement and contribution of time, counsel and materials.

We thank ~
?
 
 ?Faculty Guide for giving us the excellent guidance and helping us
to make the project practically a feasible one.

We would like to convey our special thanks to all the Faculty members of BMA Bangalore and
~
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?(Titan Retail, Head) and ~
?
 (Tanishq retail, Head) of Titan for
their valuable help during our project.

We would also thank franchisor owner of Garuda mall Titan showroom ~
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 and store
manager ~
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 for their permission to carry out survey inside the store with their
customers.


 
  
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xecutive Summary:................................................................................................................................ 4
INTRODUCTION: .................................................................................................................................. 5
BACKGROUND OF TITAN:.................................................................................................................. 5
Business Philosophy: ............................................................................................................................... 6
Product Catalogue and Pricing Strategy: .................................................................................................. 6
PRICING OBJCTIVS: ........................................................................................................................ 9
Merchandising planning and visual merchandising:................................................................................ 11
Safety and health policy: ........................................................................................................................ 13
xpansion plan: ..................................................................................................................................... 13
RCOMMNDATIONS: ...................................................................................................................... 14
BIBLIOGRAPHY: ................................................................................................................................ 16
Annexure ............................................................................................................................................... 17
Store design: Mixed floor plan ............................................................................................................... 19


 
 
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1.? TH ARA OF STUDY:

The study is about Titan Store in organized retail industry. The area of study is a vast one and
hence an organization has been chosen as a sample to make it more specific.

2.? TH TARGT OF STUDY:

The study targets the impact of Retail Mix such as visual merchandising, pricing strategy,
merchandising planning, store design, expansion plan and quality management towards visual
display of showrooms. It targets the ability of it affecting the purchase decision.

3.? TH OBJCTIVS OF TH STUDY:

a.? What is the Business Philosophy of Titan?

b.? How Titan categories their product?
c.? What is its pricing strategy?
d.? What is the concept behind visual merchandising and store design?
e.? How important is visual merchandising in organized retail business?
f.? The structure of visual merchandising in Titan.
g.? Visual merchandise role in Titan industry.
h.? Safety and health policies provided by Titan
i.? xpansion Plan and Break ven
j.? Quality Management

4.? MTHODOLOGY:
a.? The methodology used in carrying out this report writing is by collecting data and text
related to study from secondary sources (books and internet sites) from credible and
known textbooks and internet sites.
b.? Semi-structured personal interview with the Head of VM of Titan and survey from
customers using closed ended questionnaires.
c.? Analyzing the degree of relation therefore with available data.


 
 
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Retail industry is become one of the fastest growing sectors in Indian economy over the last few
years. Though India has largest density of retail outlet in the world, the sector is highly
fragmented and is in nascent stage. Organized retail industry is very less in India, it accounts to
only 5% of total retail business. However with the development of malls and other retail
organized establishment in the metros and other towns (tier II & tier III cities) of India, the
organized sector is looking attractive and experiencing growth. The organized retail sector is
expected to grow 25 to 30 % annually. Store designing, pricing strategy and Visual
Merchandising have become one very important aspects of retailing business. This technique
helps the retailer display the merchandise in an appealing and self explanatory way. Visual
Merchandising is the dressing up of the products and the store in simple words. A retailer has
various collections of products in various sections and presenting them effectively for customer
visual makes business easier.

Titan Industries is the worlds fifth largest and India's leading manufacturer of watches. Today,
the Titan portfolio has over 60% of the domestic market share in the organized watch market.
The company has 273 exclusive showrooms christened World of Titan', making it amongst the
largest chains in its category backed by 700 after sales service centres. The company has a
world-class design studio that constantly invents new trends in wrist watches.


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Back in early eighties Tata group entered the watch segment with Xerxes Desai to lead the team
of this consumer durable goods segment. Visual merchandising and store layout were very much
at the stage of "decoration" if any, and neither the brands nor the retailers saw it as important.
The watch store was narrow and not designed properly and the location basically was in
traditional markets of the city. Their weren¶t excusive showrooms, company preferred to sell
through wholesalers


 
 
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: 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. Technology
change: Accuracy of time and technology was changed lot to sell the product.


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  Titan expanded from 200 models to 350 models for customer to choose
from.


?! ? : Company decided to make watch segment also a lifestyle by making different
unique styles for its watch.

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?± ³There 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´


 
: Company saw this is an important tool of creating sales and brand and from day
one it is been on toes and been advertising its product.

Titan has 60% share of total organized retail share market in watch segment and is doing very
impressive in its style, sales, innovation & promotion. Company has improved version of sales
force and service network which is wide and deep and has 270 exclusive showrooms throughout
country. Today ³The World of Titan is the most prestigious and visible retail brands in the
country.´

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If we talk about verity and assortment at Titan store, it has huge product categories for every
income level of customer. They have huge verity and in verity they have huge assortment. In the
same way Titan prices its products according to its target market. It has different pricing strategy
such as combo pack where Titan offers two pair of watches at some discount, they also use


 
 
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seasonal discount, offers for pricing strategy. Some of their product catalogue, pricing strategy
and segment according to target market:

m?m
 A collection of watches will contemporary styles that are young and distinctive.
The woman¶s collection presents the all new international `Frosted¶ look, which is trendy and
chic. The Fast Track collection has elements like cool mesh straps and features that include L
back-light and dual time. It also presents 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.

Price: Rs.550-4000

Category aimed at: Youth.

m A perfect combination of dateless styling and design simplicity, xacta is the all-
steel look in Titan. veryday watches for those who value fundamental principles of durability,
reliability and affordability.

Price: Rs.595-1,140

Category aimed at: Lower Middle Class (Office Wear)

 m
 A truly unique collection of watches that combines the sturdiness of steel with the
richness of gold.

Price: Rs.650-1830

Category aimed at: Common Class

# A stunning collection of alluring gold-plated cases matched with exquisite gold-
plated straps, the `Royale¶ collection has designs that suit everyday wear.

Price: Rs.960-2,830

Category aimed at: Upper Middle Class


 
 
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 It is a exclusive watches for women. The Raga and Silver Raga collection is elegant,
delicate and feminine with each piece being truly unique. It is an existing collection that includes
decorative motifs, `Kadas¶, studded bracelets and a first of its kind three-in-one watch. The
designs are inspired by traditional Indian as well as contemporary motifs and are expressed in
ropes, `kadas¶ and ornamental bracelets. Crafted exclusively for the sophisticated woman, who
wears silver jewellery with élan, the Silver Raga makes a perfect accessory that completes a
woman¶s wardrobe.

Price: Rs.1420-4,000

Category aimed at: Upper Class

: Watches for him and her. The pair watches of the `Bandhan¶ range are Titan¶s
tribute to the everlasting quality of a bond between a man and woman The Bandhan Collection is
available in both leather straps and gold bracelets and its presented in uniquely designed
packaging.
Price: Rs.1675-8,085.

Category aimed at: Couples

#r: Magic in gold and unique futuristic material. Finely crafted sleek cases and
patterned dials with special appliqué flowing into intricately designed bracelets. A unique
combination of an all-gold and bicolour look, the `Regalia¶ range represents the essence of dress-
wear.
Price: Rs.1725-7770

Category aimed at: Upper Middle Class ± Upper Class

: The Titan DG is the Slimmest Watch in the Universe; a mere 3.5 millimetres thick,
the watch is practically invisible. Delicately crafted with precision, it has an incredibly Slim
Movement of 1.15 millimetres. Furthermore, the Titan dge is Water Resistant to a depth of 30
meters, an attribute rarely ever seen in slim watches. Titan¶s dge comes with an elemental One-
Piece case made from Non-Allergic Stainless Steel, and a Sapphire Crystal that market it Scratch
Resistant.
Price: Rs. 4,500-5,200Category


 
 
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Aimed at: Business Class

# Nebula, a range of watches crafted from solid gold embellished with precious stones,
available with both leather straps and intricately designed bracelets. With Nebula, Titan turns
watches into precious jewellery. The finishing touch to this exquisite collection is the sapphire
crystal that crowns each of the watches.

Price: 10,000-45,000

Categories aimed at: Upper Class

m ? 
? If we talk about this brand, it is an international brand but in India it is

operated by Titan. It shows that if any customer is interested in multinational brand then Titan
can fulfil their demand in India at store which makes their goodwill not only in India but also in
foreign countries.?

Price:8000-60000
Category Aimed at: Upper and Business Class

rr?$mr  Titan consists of watches that cater to various segments and to
various categories and so their pricing strategy is also in accordance to their products and the
features offered by them cashing in on monopoly, unique features, outstanding performance and
the name TITAN. Titan¶s primary pricing objective is to kill Competition. Being an Indian
manufacture and infusing the advantages of the Indian market with the dynamics of the western
market the company has carved itself a place difficult to achieve by foreign players.

The Objective for pricing are:

?
r #?In case of some of the watches titan prices them according to the features and the
value delivered by them. The exacta is a simple steel watch priced at around 600 to 1,100. This
unique combination of simplicity and good styling is to keep the brand going with its offering
being value for money.


 
 
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: In India 70% of the sales in watches come from the lower segment and hence
by pricing the sonata at 350 onwards, backing it with a TATA guarantee no one can match the
value for the price of Rs.350. Titan prices its world watches which are compared equal to an
international Player Like Calvin Klein where a customer pays about 4 times a value of the world
watch hence penetrating the market with low prices to international players to gain market share.

~
m?r~~r: In the Indian watch industry there is no one offering pure gold watches,
watches in pair, Jewellery watches and this concept though exists with foreign competition has
just come to India. Though foreign competition has set in to these concepts, TITAN offers these
products with the Indian touch in its designs, the products, and the looks. Hence it is able to skim
the market with certain products in these ranges.

m?%#rm? Quality and leadership are synonymous to Titan. It seeks to achieve both
through their value for products compared to their prices.

rr?~m?

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rr ± Titan goes in for the mark up pricing strategy. The Titan product carries
a maximum retail price on it. Now shops such as the world of titan ± exclusive showrooms buy
directly from the dealer and hence the element of the middleman is not there. A retailer in this
category buys the watch for 17-18% lesser than the MRP and hence he is able to get the 17%
profit margin on sales. It is up to the discretion of the retailer to offer any discount on the MRP
as it would affect what he gets in return.

In the recent past Titan has also used the PRCIVD VALU PRICING to its advantage. It is
managing to successfully convince the customer of the perceived value of the WORLD WATCH
using billboards and hoardings all around the city, increasing buyers image, trust worthiness,
innovation, differentiation, value for the product. The hoardings go about to say the international
presence of an Indian Watch. Titan has also in the past done so for its steel collection but using
Commercial Advertisements.

There is always a positive relationship between high prices, high quality, and a high advertising
budget. Titan too demonstrates this feature. People are willing to pay the price for the quality and


 
 
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titan spends 25 crores a year on advertising its products. This is the highest spending done in the
watch industry in India. More so ever with high value and lower prices in case of the sonata, the
product is the heart throb in the watch industry.

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?!
 : Titan once a year comes out with a Price discount sale on the
MRP of the watches. Now this is entirely based on the stock carried by the company at the year
end. Allowances are more on the company to the retailer where the retailer gets a special
allowance if the store picks up more than a certain quantity.

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 : Titan promotes sales by adding a free warranty or service
contract to its watches and this is backed up by the name TATA which is especially needed to
convince and march ahead in the lower segment market.

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: The differences in the prices of the watches are justified by the features,
the style, and the differences which make up each watch. Titan prices all its watches in such a
way that it maximizes the total profit on the total mix.

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? There is a general buzz in the market about titan being more
expensive than the rest in terms of servicing and the parts used by TITAN. Titan watches, the
lower end ones are cheap but the straps and the battery with services is generally expensive.

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Merchandise selling is the primary objective of retailing. A merchandise mix is developed that
represents the full range of products mixture that is held by a retailer to target customers. An
appropriate combination of product lines, product items and product units will determine a good
merchandise mix. This is exhibited by the variety of merchandise the retailer stocks, that shows
the number of different product lines they possess. Merchandising management depends upon
various factors. Retail atmospherics and space management will enable a retailer have good


 
 
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merchandise management. Retail atmospherics comprises of exterior atmospherics, interior
atmospherics, store layout and visual merchandising. Visual merchandising can be defined as the
display of products in order to sell the products. Visual merchandising includes various aspects
to be effective such as store floor plan, store windows, merchandise display, space design,
hardware fixtures and many more. Visual merchandising helps in educating, attracting and
informing the customer about the product/service being provided in an effective and creative
way. It makes a customer roam around the store to find novelties. It helps in building a store
image. The arrangement gives easy access to merchandise. Visual merchandising enables a
customer to make the purchase decision since it draws the attention of the customer and gives
him a clear picture. This helps the retailer in introducing new products since it becomes self
explanatory as they are displayed. From the customer point of view it gives an idea on how to
use the product. This attracts a customer to enter the shop. This technique provides a creative
medium to display the product thereby creates a long lasting impression on the customer [Bajaj,
2005, P 423] [Kotler & Keller, 2009, P 442] [Michael & Weitz, 2009, P 605].

The shoppers are affected by the atmospherics created at a store. The customer can be
displeasured if he/she did not like the atmospherics created. The customers sometimes tend to
decrease their arousal for buying a product based on factors like music played in the store. So the
retailers have to be extremely careful while creating store atmospherics. In the service
environment the interior colors of the store create great deal in the nature of mood to be created.
Some may feel dull colors or light colors are boring and depressing. At the same time bright
colors cannot be considered as lively either it may make it absurd. Largely customers¶ senses,
emotions and shopping behaviour are affected due to different preference of shoppers. Visual
merchandising therefore sometimes has a negative impact on the customers. Visual
merchandising may sometimes tell too much about itself making the customer form his own
opinion towards the product. In order to avoid such things a retailer has to be very careful on the
visual display based on the product or service [Bajaj, 2005, P 405] [Michael & Weitz, 2009, P
610].

The coverage of VM can be divided into four main segments, which are:


 
  
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: If we talk about xterior Presentation, Titan is using eexterior signs,
billboards, Awnings, Window Displays. (See exhibition-1)


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Mixed floor plan (See exhibition 1)


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?As a store theme, Titan is using music background, odour, lightning and color
scheme.
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? ? As an interior display, Titan is using Fixtures & Hardware and Mannequins.
(See exhibition-1)

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If we talk about safety and health policy at Titan Store, it has numerous rule and regulations,
instruments and policy such as whenever any new employee joins Titan, It provides 10-15 days
training and soft skills classes which help them to interact with customer in effective manner. In
the same way they have policy like It provides free insurance to its employees where it has tie-up
with its own Insurance company. They reserve 10-15% from their salaries as gratuity, funds and
allowances. Similarly it has all instruments which help them to protect its customers and
employees from any type of accident such as fire. Titan uses hidden cameras, barcode, checking
machine and instrument at gate by security guard which also protect them from any type of theft
in store.

 

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If we talk about Titan expansion plan, The Indian market is estimated at 25 million watches a
year, with 50 per cent being sold by the organized sector. Titan is the runaway market leader,
with domestic sales of 6 million watches a year. There are 190 million watch-owning Indians;
between them they own about 210 million watches. Urban India accounts for 120 million of
these watches and 90 millions are on rural wrists. More men than women own watches in India,
and more working women than housewives own watches. It is the rural segment within this
diverse market that Titan is now looking to tap. ³The key to success is getting into the rural
market on a larger scale. The company¶s Sonata range is targeted at rural customers, and is part


 
 
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of a strategy where the alignment of price and reliability are crucial. The rage costs between
Rs.495 and Rs.1200 has showrooms exclusively for it, and is sold mainly in small-town India.

Titan Industries Ltd has utilized about half of its planned capex for FY09 as a slowdown in
consumer spending hurts demand, and will proceed cautiously with expansion plans for FY10.
³Our original budget for the year was about 112 crore (Rs1.12 billion), we have utilized about
half of that and The watch and jewellery retailer plans to add about 100 stores in FY10, but
would study the market carefully before launching new outlets. ´ managing director Bhaskar
Bhat said.

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Titan is the SBU (Strategic Business Unit) of Tata. If we talk about Tata, Tata is considered as
second name of trust and truth. Since they have started their business till today they offer
qualitative products and service which make them market leader in every field of their business.
In the same way they provide trust and quality if we talk about watches segments.

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There are few areas where we would like to recommend Titan with regards to the visual
merchandising aspect. The recommendations are summarized as follows:

1.? Although the visual merchandising done is self explanatory the company has to
concentrate on making it easy for the customers to differentiate each series and sect of
products which will be based on various factors. We could find from the analysis that the
customers were not able not able to understand the differences.
2.? Some products as being told by Head of VM for Titan are available only in metros and
cities whereas the up-country stores do not merchandise them. The concept behind this
being the high price of the models (ex: Titan Automatic series) which they feel would not
have any demand in such areas. We can see today¶s trend that cars like Jaguar are
available in up-country markets due to the increasing disposable income of the customers
therefore we recommend Titan that they should consider merchandising even the high
end models in those markets.


 
 
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Magazine ±

Images retail, Vol 8 no 3 March 2009, pg no- 43

Text books ±

1.? Bajaj, C. (2005). Retailing Management. New Delhi. Oxford University Press.
2.? Beri, G . Marketing Research. (3rd ed). New Delhi. Tata McGraw-Hill Publishing Ltd.
3.? Micheal, L. & Weitz, B. A. (2009). Retailing Management. (10th edition). New Delhi.
Tata McGraw-Hill Publishing Ltd.
4.? Kotler, P. & Keller, K. L. (2009). Marketing management. (13th edition). New Delhi.
Prentice-Hall of India Pvt Ltd.

Web sites-

1.? Organized retail and it growth retrieved on 18 July, 2009

www.business.mapsofindia.com/india-retail
2.? Organized retail information retrieved on 18 July, 2009 www.indiaretailing.com
3.? Titan industries information on background retrieved on www.titanstores.com
4.? Products and stores of Titan retrieved on 20 June, 2009 www.titanworld.com


 
 
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