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Titan Case Study

SUBMITTED TO:
DR. H GAYATHRI

PRESENTED BY:
ANAND M DILIP
(16006)
NILINA LIZBETH
(16030)
KANGNA DUTTA
(16018)
BHOJANA
TANVI
Wristwatch industry
The wrist watches industry forms 89% of the time pieces
market in India .
It is estimated to be around Rs 5000 crore and is expected
to grow at the rate of 15% to touch Rs 15000 crore by
2020. Market Share
40% of the wristwatch industry is commanded by the
organized players and is estimated to be around rs1500
crore.
40.00%
The rest 60% by the unorganized segment. 60.00%
Male buyers outnumbers females and accounts for 65% of
sales.
Students accounts for 30% of the sales and is the largest
segment of buyers. Organised Unorganised
WRIST WATCH MARKET IN
INDIAMid Price Segment
Mass price segment Premium watch segment
price < Rs1000 Rs 10,00- Rs10,000 Price is above Rs 10,000
Mostly sold by Mostly Titan , Timex , Brand name that signifies growth &
unorganised segments Citizen prosperity
Dominated by Titan , International players- Ranges- premium ( luxury ), affordable
PA Time industries & Diesel, Espirit , Fossil, Luxury (44% market share)&( super
Citizen Tommy Hilfiger, luxury) prestige price
Titan- Sonata( men & Giordano , Guess , Luxury segment priced between 1 lakh
women) & Zoop (kids) Kenneth Cole , Police -10 lakhs (growth rate 15-20%)
PA Time Industries- Contributes around 37- Affordable Luxury expected growth CAGR
Maxima 38% in terms of value. of 23.3% by 2014-2018
Citizen-Q&Q Super luxury expected growth rate at a
Contributes highest to CAGR 16.7%
market in terms of Premium & Luxury segment contributes
volume & value (37%- around 25% to the market in terms of
38%) value.
Fastest growing Segment during
2008-2013
TITAN OPERATES IN FOUR SEGMENTS
Wristwatch segment
Jewellery segment
Eyewear segment
Precision engineering components
WRISTWATCH SEGMENT
Came to market in 1987
It is now the worlds 5th largest integrated own brand manufacturer of watches.
In fY 2013-2014 it experienced growth rate of 6.9% and contributed 15% to the revenue
and profit of the company.
Jewellery segment

Titan diversified into jewellery segment under the brand name


TANISHQ.
It has become the fastest growing jewellery brand with
premium jeweller, studded with diamonds or colour gems in
18 kt. Gold, 22 kt. Pure gold and platinum jewellery.
Goldplus (elegant gold jewellery) is strongly positioned to
serve the 22 kt. Gold wedding jewellery market in smaller
towns and rural markets.
Titan launched zoya stores in 2009, boasts the finest quality in
India and is on par with the best in the world.
Jewellery segment witnessed growth of 6.5% in FY2013-14 and
contributed around 80% to the revenue and profit of the
company.
EYEWEAR SEGMENT
Titan eye+ was launched into the organized eyewear segment in
march 2007.
Offers a variety of differentiated products to the end consumer
consisting of frames, lenses and accessories.
Frames are available in both international brands(Levis, Espirit,
Hugo Boss) and in-house brands-titan eye+, dash(offering for
children).
Revenue from eyewear segment grew by 20.7% in FY 2013-14.

PRECISION ENGINEERING COMPONENTS


In the year 2003, the company branched into precision engineering
products and machine building.
Titan initiated precision engineering division in 2005, catering to
global majors across industry verticals like aerospace, solar and
medical instruments.
Titans Sub Brands
Brands Target Positioning Price Range Brand Product
(in Rs ) Ambassadors Line
Fastrack Urban Youth Earlier for the age group 650-5000 Virat Kohli , actors Sunglasses(i
( Aged 20-25 : Cool Watches -John Abraham & n 2005) &
between From Titan Genelia Dsouza Bags
18-30 ) For age group 18-30 Belts
years : How Many do ,Wallets ( in
You Have 2009)

Sonata Mass As a brand for 400-3,600 Mahendra Singh Dhoni


segment unconventional achievers-for
Value for those who want to make a
money unique impression
brand

Xylys Premium For new age achievers 8000-30,000 Farhan Akhtar


Watch Who go beyond obvious (Contemporary,
Segment know who they are Classic &Sport)
Live by their own values
Style statement for those
who stand apart from the
croud.
Titan-Watch Brand (targeted for mid-
premium)
Sub Launched Price Range Key Points
Brands in
Edge 2002 6000-18,000 Slimmest & thinnest watch in the world
Won coveted Red Dot award for design( 2013,2014)
Recognised for quality & excellence globally
Positioned as slimmest & as a unique creation in the
world.
Raga 1992 1300-22,000 Positioned as occasional wear watch (bought on
special occasions)
Targets women in the metro cities.
Brand Ambassadors : Rani Mukherjee & Katrina Kaif
Nebula 2000 29,000- Premium 18 karat gold watch (plain & embellished
2,65,000 with pearls & diamonds), 70 models
Brand Ambassador: Yami Gautam
Zoop 450-900 Targeted for kids aged 5-12 years
Positioned as Be Cool.Be more
Bandhan 1800-12500 Targets couples with pair watches
HTSE 8000-13,000 Targets urban youth (men segments)
range
Octane 3,500-9500 Caters men segment (sporty offerings)
Competitors:
Maxima (1996) Citizen (1938) Timex (1854)
Part of PA Time Japanese multinational company in Range : Rs1000 to
INDUSTRIES 150 countries Rs25000
Major operations in Mass 70 years Heritage in Japanese Outdoor , Sports and
segment and competes watch making Style categories
with sonata RANGE : Rs3000 to Rs39000 Product range :
Price Range : Rs300 to Men and Women in Mid-Premium Intelligent Quartz
Rs4000 segment (Men), Weekender ,
80 Distributors ; 6000 Strong brand image (sophistication Expedition sports
retailers ; ecommerce and style) Ironman , E- class
Product range : gold 600+ across India Outlets & 20 ,Classics , Bangle
watch , waterproof watch exclusive showrooms (women)
,watch for scuba 50 Shop-in-shops to promote brands Outlets are called Timex
divers ,promotional 3 categories Complications , Pro world which was known
watches etc sports & Radio controlled as TIME FACTORY
Continued
Seiko ( 1969)
100% Subsidiary of SEIKO Watch corp., Japan .
350 Watch models Ranging from Rs7000 to Rs5,00,000
Targets Premium and luxury segments
Product range : Velatura , Premier , sports, Astron, Grand and Ananta
Launched in India in 2007 and has a CAGR of 50%
350 Premium multi brand watch stores in the country
Promotional Activities : Supporting International events like Olympics , FIFA world
cups , Athletic world championships and many more.
CURRENT POSITION AND FUTURE
OUTLOOK OF PREMIUM WRISTWATCH
SEGMENT
Constitutes to 25% of approximately 5000 crore wrist watch
market and contribution is growing at over 20% y-o-y.
Other premium and luxury brands are opening more stores to
reach more customers.
High-decibel launches and celebrity endorsements ensure that
awareness levels of other luxury watch brands remains
constantly high.
Customization by international luxury brands to boost sales.
Titan aims to increase revenue by 2.5 times in next 5 years by
seeing the aggressive strategies from international brands.
Nearly 10% of Titans revenue comes from premium watch
brands.
Titan is the only brand which is selling nearly 16 million watches
per year.
An observation of 6.9% in the watch segment is going to be an uphill
task for Titan.
Titan is the only brand which is selling nearly 16 million watches per
year.
An observation of 6.9% in the watch segment is going to be an uphill
task for titan.
Titan currently is focusing on watches that cost upwards Rs.5000.
40% of watch revenue came from price band this year.
Titan has experienced 25% growth in the price range of Rs10000-
Rs.25000.
Titan has lost its aspirational value as customers might go for an
international brand when they are ready to spend more than Rs.10000.
The company needs to spend considerably on the brand building
exercise and enhance the brand image to be at par with international
brands.
SWOT ANALYSIS:
STRENGTH WEAKNESS
Market leader in organised sector
Strong retail network Inability to position Xylys
Brand image
Wide variety of watches catering the
needs of different segments
Sub-branding

OPPURTUNITIES THREATS
Wrist watch industry about to grow at
15% by 2020 Competition from organised sector
CAGR of 23.3% in affordable luxury (luxury watch brands)
segment Competition from unorganized section
Penetration into the global market
Tie up with international watch brand
What strategic decisions and branding exercise
should the company adopt to become a lifestyle
aspirational premium brand?
SUGGESTONS:
International actors or known sports personality should be taken as their brand
ambassador
Sponsoring Indian and international sports events like Premium Leagues and Olympics
They can come up with technological advancement like smart watches
They can go for product placement in high budgeted movies and music videos for
premium brands
Making upcoming launches visible in international fashion shows and beauty pageants
Mass customization in the premium segment
They can go for ingredient branding with Taj Hotels by providing promotional
catalogue of Titan Xylys to their premium segment guests.