INTRODUCTION TO THE INDUSTRY
Indian Watch Market:
The watch market in India recorded an approximate volume turnover of 29 million
units (2007-08). It is growing at 9% per annum. The organized sector contributes
to half the volume turnover of the industry and rest by the unorganized sector.
Tough competition is anticipated between the low priced variants introduced by
the organized sector and the unorganized sector. Watch consumption in India is
20 units per thousand persons. The top 23 cities account for 80% of the watches
sold in India, which therefore leaves a lot of scope for penetration in the “rural
towns”. Three players dominate the organized sector, HMT (34% market share),
Titan (39%) and Timex (23%). Besides HMT, Titan and Timex several companies
like Westar, Shivaki, Maxima, Before and SITCO made a bid for the Indian watch
market. Liberalization has brought with it a host of brands for the Indian market,
viz. Piguet, Cartier, Christian Dior, Omega, Raymond Weil, Rolex, and Tissot.
Segmentation of Indian Watch industry
Based on price
Mass (Rs.350-600),
Popular (Rs.600-900),
Premium (Rs.900-1500),
Super-premium (Rs.1500-8000)
Connoisseur segments (above Rs.8000)
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Mass Market (Rs 350 - 600):
This segment represents the low end users and the rural market. Basic
characteristic of this market is low margin and high volume.
HMT brands in this price range:
Lalit, Chetan, Chetak, Rajat, Kedar, Ravi, Kohinoor and shakti
Titan is with:
Basics, Aqura, and Sonata
Popular Watches (Rs.600-900):
This segment is slightly above the mass market segment. Somya and Tennax
from HMT targets college going men and women who see themselves as
fashionable people. A similar offering, Timex's Mariner addresses the same
profile as HMT’s Sowmya but a slightly older age group. It is difficult to categorize
Titan's Royale, Regalia and Classique as premium or popular. Though they have
a premium image they are available at prices less than Rs.1000.
Premium Watches (Rs.900-1500):
Vista from Timex and Chandan, and Sangam from HMT falls in this segment.
Royal , Regalia etc of Titan can also be considerd under this range.
Super Premium Watches (Rs.1500-8000):
Titan’s Insignia, Slimline, and Bandhan; HMT's Elegance range, and Misuni;
Timex's Indiglo and Datalink are main brand offered in this market segment.
2
Connoiseur's Watches (Above Rs.800):
Titan's Tanishq and HMT's Gem range fall into this category. So do most of the
Swiss watches like Omega, Piaget, Longines, etc. These are bought more as
status symbols and jewelry rather than watches.
Segmentation based on user category:
Fashion and style is most visible feature of this segment
Men's Watches:
HMT's Roman is probably the only watch that addresses the
men's segment. Market research indicated that HMT
wasseen as a masculine brand while Titan was seen as a
feminine brand. In keeping with its masculine image HMT
introduced the Roman range.
Youth Watches:
Age group between 15 and 20 is treated as youth segment.
Ruggedness and durability at low price is basic feature of this
segment.
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Kid's Watches:
Target group is children aged between 7 and 10. Mainly digital
watches fall in this category. Grey market is most dominant
player of this segment. HMT’s Zap TIMEX’s Gimmix and
Titan’s Dash are branded watches offered in category.
Sports Watches:
Stress of this segment is on trendy designs for casual wear with
advanced features for the techno-savvy consumer.
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TATA BRIEF INFORMATION
The foundation of what would grow to become the Tata Group was laid in 1868
by Jamsetji Nusserwanji Tata — then a 29-year-old who had learned the ropes of
business while working in his father’s banking firm — when he established a
trading company in Bombay.
The Tata Group Companies is one of India's oldest, largest and most respected
business empires. The Group's businesses are spread over seven business
sectors. It comprises of 96 companies and operates in six continents. There are
some 2,46,000 employees and put together it has a shareholder base of over two
million and market capitalization of $57.6 billion.
Activities
The main companies under the Tata Group are Tata Motors , Tata Indicom ,
Tata Steel , Tata Consultancy Services , Tata AIG Insurance , Tata Tea
Limited.
Tata Motors:
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Tata Motors Limited is India's largest automobile company, with revenues of Rs.
32,426 crores (USD 7.2 billion) in 2006-07.
Tata Indicom:
Under this there are three segments which are Tata Teleservices Ltd., Tata
Teleservices Maharashtra Ltd., Videsh Sanchar Nigam Ltd.. These are major
companies in the telecom industry.
Tata Tea Limited:
The operations of Tata Tea and its subsidiaries focus on branded product
offerings in tea but with a significant presence in plantation activity in India and
Sri Lanka.
Tata Consultancy Services (TCS):
TCS is one of the world's leading information technology companies. Through its
Global Network Delivery Model, Innovation Network, and Solution Accelerators,
TCS focuses on helping global organizations address their business challenges
effectively.
Tata Steel:
Established in 1907, Tata Steel is Asia's first and India's largest private sector
steel company.
Tata AIG Insurance:
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Tata AIG General Insurance Company Ltd. is a joint venture company, between
Tata Sons and American International Group, Inc. (AIG).
TATA CODE OF CONDUCT
1. NATIONAL INTEREST
A TATA Company shall be committed in all its actions to benefit the economic
development of the countries in which it operates and shall not engage in any
activity that would adversely affect such objective. It shall not undertake any
project or activity to the detriment of the Nation’s interests or those that will have
any adverse impact on the social and cultural life patterns of its citizens. A TATA
Company shall conduct its business affairs in accordance with the economic,
development and foreign policies, objective and priorities of the Nation’s
government and shall strive to make a positive contribution to the achievement of
such goals at the international, national and regional level as appropriate.
2. FINANCIAL REPORTING AND RECORDS
A TATA Company shall prepare and maintain its accounts fairly and accurately in
accordance with the accounting and financial reporting standards which
represent the generally accepted guidelines, principles, standards, laws and
regulations of the country in which the company conducts its business affairs.
Internal accounting and audit procedures shall fairly and
accurately reflect all of the company’s business transactions
and dispositions of assets. All required information shall be
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accessible to company auditors and other authorized parties
and government agencies. There shall be no willful
omissions of any company transaction from the books and
records, no advanced income recognition and no hidden
bank account and funds.
Any willful material misrepresentation of and/or
misinformation on the financial accounts and reports shall
be regarded as violation of the code apart inviting
appropriate civil or criminal action under the relevant laws.
3. COMPETITION
A TATA Company shall fully strive for the establishment
and support of a competitive open market economy in
India and abroad and shall co-operate in the efforts to
promote the progressive and judicious liberalization of
trade and investment by a country.
Specifically, a TATA Company shall not engage in
activities, which generate or support the information of
monopolies, dominant market positions, cartels and
similar unfair trade practices.
A TATA Company shall market its products and services
on its own merits and shall not make unfair and
misleading statements about competitors’ products and
services. Any collection of competitive information shall
be made only in the normal course of business and shall
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be obtained only through legally permitted sources and
means.
4. EQUAL- OPPORTUNITIES EMPLOYER
TATA Company shall provide equal opportunities to all its employees and all
qualified applicants for employment without regards to their race, caste, religion,
color, ancestry, sex, age, nationality. Employs of a TATA Company shall be
treated with dignity and in accordance with the TATA Policy to maintain a work
environment free of sexual harassment whether physical and verbal or
psychological. Employee policies and practices shall be administrated in a
manner that would ensure that in all matters equal opportunity is provided to
those eligible and decisions are merit based.
A TATA Company and its employees shall neither receive nor offer or make
directly or indirectly, any illegal payments, remuneration, gifts, donations or
comparable benefits which are intended to or perceived to obtain business or
uncompetitive favours for the conduct of its business. However, a TATA
Company and its employees may accept and offer nominal gifts which are
customarily given and are of commemorative nature for special events.
5. POLITICAL NON-ALIGNMENT
A TATA Company shall be committed to and support a functioning democratic
constitution and system with a transparent and fair electoral system in India. A
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TATA Company shall not support directly or indirectly any specific political party
or candidate for political office. The Company shall not offer or give any company
funds or property as donations, directly or indirectly, to any specific political party,
candidate or campaign.
6. HEALTH, SAFETY AND ENVIRONMENT
A TATA Company shall strive to provide a safe and healthy working environment
and comply, in the conduct of its business affairs, with all regulations regarding
the preservation of environment of the territory it operates in. A TATA Company
shall be committed to prevent the wasteful use of natural resources and minimize
any hazardous impact of the development, production, use and disposal of any of
its products and services on the ecological environment.
7. QUALITY OF PRODUCTS AND SERVICES
A TATA Company shall be committed to supply goods and services of the
highest quality standards backed by efficient after-sales services consistent with
the requirements of the customers to ensure their total satisfaction. The quality
standards of the Company’s goods and services should at least meet the
required national standards and the Company should Endeavour to achieve
international standards.
8. CORPORATE CITIZENSHIP
A TATA Company shall be committed to be a good corporate citizen not only in
compliance with all relevant laws and regulations but also by actively assisting in
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the improvement of the quality of life of the people in communities in which it
operates with the objectives of making them self reliant. Such social
responsibility would comprise, to initiate and support community initiatives in the
field of community health and family welfare, water management, vocational
training, education and literacy and encourage application of modern scientific
and managerial techniques and expertise. This will be reviewed periodically in
consonance with national and regional priorities. The company would also not
treat these activities as optional once but would to incorporate them as integral
part of its business plan. The company would also encourage volunteering
amongst its employees and help them to work in the communities. Tata
companies are encouraged to develop social; accounting systems and to carry
out social audit of their operations.
9. CO-OPERATION OF TATA COMPANIES
A TATA Company shall co-operate with other TATA Companies by sharing
physical, human and management resources as long as this does not adversely
affect its business interests and shareholder values.
In the procurement of product and services a TATA Company give preference to
another TATA Company as long as it can provide these on competitive terms
relative to third parties.
10. PUBLIC REPRESENTATION OF THE COMPANY AND THE
GROUP
A TATA Company honours the information requirements of the public and its
stakeholders. In all its public appearance with respect to disclosing company and
business information to public constituencies such as the media, the financial
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community, employees and shareholders, a TATA Company or the Tata Group
shall be represented only by specifically authorized directors and employees. It
will be the sole responsibility of these authorized representatives to disclose
information on company.
11. THIRD PARTY REPRESENTATION
Parties which have business dealings with the TATA Group but are not the
members of the Group such as consultants, agents, sales representatives,
distributors, contractors, suppliers. Etc. shall not be authorized to represent a
TATA Company if their business conduct and ethics are known to be inconsistent
with the code.
12. USE OF THE TATA BRAND
The use of the TATA name and trademark owned by Tata sons shall be
governed by manuals, codes and agreements to be issued by Tata Sons. The
use of the TATA brand is defined in and regulated by the TATA Brand Equity &
Business Promotion Agreement.
13. GROUP POLICIES
A TATA Company shall recommend to its Board of Directors the adoption of
policies and guidelines periodically formulated by Tata Sons.
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14. SHAREHOLDERS
A TATA Company shall be committed to enhance shareholders value and
comply with all regulations and laws that govern shareholders’ rights. The Board
of Directors of a TATA Company shall duly and fairly inform its shareholders
about all relevant aspects of the Company’s business and disclose such
information in accordance with the respective regulatations and agreements.
15. ETHICAL CONDUCTS
Every employee of TATA Company, which shall include whole time Directors and
the Managing Director, shall deal on behalf of the company with professionalism,
honesty, integrity as well as high morale and ethical standards. Such conduct
shall be fair and transparent and be perceived to be as such by third parties.
Every employee shall be responsible for the implementations of and compliance
with the code of his professional environment, Failure to adhere to Code could
attract the most serve consequences including termination of employment.
16. REGULATORY COMPLIANCE
Every employee of TATA Company shall, in his business conduct, comply with all
applicable laws and regulations, both in letter and in spirit, in all the territories in
which he operates .If the ethical and the professional standards set out in the
applicable laws and regulations are below that of the Code then the standards of
the Code shall prevail.
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17. CONCURRENT EMPLOYMENT
An employee of TATA Company shall not without the prior approval of the
Managing Director of the Company, accept employment pr a position of
responsibility (such as a consultant or a director) with any other company, nor
provide “free-lance” services to anyone. In the case of a Whole-time Director or
the Managing Director such prior approval must be obtained from the Board of
Directors of the company.
18. CONFLICT OF INTEREST
An employee of TATA Company shall not engage in any business, relationship or
activity which might detrimentally conflict with the interest of his Company or the
Group. A conflict of interest, actual or potential, may arise where, directly or
indirectly, (a) an employee of TATA Company engages in a business, (b) an
employee is in a position to derive a personal benefit or a benefit to any of its
relatives by making or influencing decisions relating to any transaction, and (c)
an independent judgement of a Company’s or Group’s best interest cannot be
exercised.
The main areas of such actual or potential conflicts of interest would include the
following:
Financial interest of an employee of a TATA Company or
his relatives including the holding of an investment in the
subscribed share capital of any company or a share in
any firm which is an actual or potential competitor,
supplier, customer, distributor, joint venture or other
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alliance partner of the TATA Company. (The ownership
of upto 1% of the subscribed share capital of a publicly
held company shall not ordinarily constitute a financial
interest for his purpose.)
An employee of a TATA Company conducting business
on behalf of his company or being in a position to
influence a decision with regard to his company’s
business with supplier or customer of which his relative
is a principal, officer, or representative, resulting in a
benefit to him or his relative.
Award of benefits such as increase in salary or other
remuneration, posting, promotion or recruitment of a
relative of an employee of a TATA Company such an
individuals in a position to influence the decision with
regard to such benefits.
Acceptance of gifts, donations, hospitality and/or
entertainment beyond the customary level from existing
or potential suppliers, customers or other third parties
which have business dealings with the company.
Notwithstanding that such or other instances of the conflict of interest exist due to
an y historical reasons, adequate and full disclosure by the interested employees
should be made to the company’s management. It is also incumbent upon every
employee to make a full disclosure of any interest which the employee or his
immediate family, which would include parents, spouse and children, may have
in a company or firm which is a supplier, customer, distributor of or has other
business dealings with his company.
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Every employee who is required to make a disclosure as mentioned above shall
do so, in writing, to his immediate superior who shall forward the information
along with his comments to the person designated for this purpose by the
MD/CEO who in turn will place it before the MD/CEO and the Board of
Directors/Executive Committee appointed by the Board and, upon a decision
being taken in the matter, the employee concerned will be required to take
necessary action as advised to resolve the conflict.
If an employee fails to make a disclosure as required herein and the
management of its own accord becomes aware of an instance of conflict of
interest that ought to have been disclosed by the employee, the management
would take a serious view of the matter and consider suitable disciplinary action
against the employee.
19. SECURITIES TRANSACTIONS AND CONFIDENTIAL
INFORMATION
An employee of a TATA Company and his immediate family shall not derive any
benefit or assist others to derive any benefit from the access to and possession
of information about the company or the group, which is not in the public domain,
and thus constitutes insider information.
An employee of a TATA Company shall not use or proliferate information that is
not available to the investing public and which therefore constitutes insider
information for making or giving advice on investment decisions on the securities
of the TATA Company on which such insider information has been obtained.
Such insider information might include the following: -
Acquisition and divestiture of business units.
Financial information such as profits, earning and
dividends
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Announcements of new product introductions or
developments.
Asset revaluations.
Investment decisions/plans.
Restructuring plans.
Major supply and delivery agreements.
Raising finances.
20. PROTECTING COMPANY ASSETS
The assets of a TATA Company should not be misused but employed for the
purpose of conducting the business for which they are duly authorized. These
include intangible assets such as equipments and machinery, systems, facilities,
materials, resources as well as intangible assets such as proprietary information,
relationships with the customers and suppliers, etc.
21. CITIZENSHIP
The employee of a TATA Company shall in his private life be free to pursue an
active role in civic or political affairs as long it does not adversely affect the
business or interests of the Company or the group.
22. INTEGRITY OF DATA FURNISHED
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Every employee of a TATA Company shall ensure, at all times, the integrity of
data or information furnished by him to the company.
23. REPORTING CONCERNS
Every employee of a TATA Company shall promptly report to the management
any actual or possible violation of the code or any event he became aware of that
could affect the business or reputation of his or any other TATA Company.
24. GOVERNMENT AGENCIES
A TATA Company and its employees shall not offer or give any company fund or
property as donation o any government agencies or their representatives, directly
or through intermedries, in order to obtain any favorable performance of official
duties.
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The Titan Story
Early 2001, when Indian consumers rated Titan ahead of all other brands as the
Most Admired Brand in India across all product categories (the first ever such
survey done by Brand Equity), it did not surprise people that a 13 year-old had
managed to upstage many older and more well-known brands: it was expected of
Titan to achieve such things, it was so natural.
It was also a fitting tribute to a brand, which had not only revolutionized the
Indian watch industry, but also brought in world-class benchmarks in product
design, quality and retailing into India.
Back in the early eighties, the Tata Group had identified the watch category as a
potential consumer market for the Tatas to enter. Xerxes Desai, a Tata veteran
and the then MD of Tata Press, was chosen to lead that venture.
In those days of pre-liberalization the watch market, like most consumer markets
in India, was way behind the rest of the world. The technology in vogue was the
reliable, but outdated "Mechanical" technology, which used the unwinding of a
mechanical spring to tell time. Not only was the accuracy of time-keeping not
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good enough, but the bulky mechanical movement did not permit the creation of
sleek products. The industry was dominated by the public sector which had
brought in watch manufacturing into India, enjoyed tremendous goodwill in the
market, but had not really invested in evolving itself and its consumers: styling
still remained basic, choice was limited.
The watch shops were narrow, dingy and typically located in the older, traditional
markets of the city. You went there only to buy a watch, never to browse, never
to simply check out. Visual merchandising was very much at the stage of
"decoration" if any, and neither the brands nor the retailers saw it as important.
The companies themselves did not have much contact with retailers, preferring to
sell through wholesalers, doing well that way. There was hardly any need for
consumer contact or research. It was a sellers' market.
All this affected the consumers. Watches remained a time-keeping device, so
one watch was enough, thank you. Since the quality of the watch was quite good,
it lasted quite a while, and the consumers did not change it for 10, 15, 20 years.
And when they did change it, they did not pay a high price for the new piece
because, what the hell, they were buying another time-keeping device.
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.
So he and his team went about breaking all the rules in the category:
Mechanical technology was the norm - Quartz had not really taken off in India.
Titan would go against that and build its line based on quartz. Accuracy would
become a selling-plank.
Styling was basic - This was a constraint imposed by the technology as well the
outlook of the manufacturers. Titan decided to make style a table-stake.
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Choice was limited - You had 200 models to pick from, that was it. Titan decided
to inundate consumers with a wide choice in style, functions and price. The initial
range was 350 models.
Shops were dark, dingy and uninteresting - There 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.
Advertising was expenditure - Titan saw this as a vital investment. Right from
Day 1, Titan invested significantly in advertising and in that process created a set
of memorable and effective properties over the years.
So Titan, backed by world-class quality created at a world-class plant located just
off Bangalore, backed by the Tata name, was launched into the Indian market on
the back of these new rules. It created waves right in the early days, mesmerized
consumers, demolished competition and rode into the sunset with panache.
Today, in early 21st century India, it is taken for granted that a watch is a fashion
accessory. Titan dominates the market, with a 60% share of the organized sector
market (the total market, including the unorganized sector, is estimated at around
42 million units). Titan's quality record is impressive, its sales and service
network is wide and deep, and its network of exclusive showrooms, The World of
Titan, is one of the most prestigious and visible retail brands in the country,
offering world-class levels of shopping comfort and customer service.
What is truly amazing about Titan is the sheer scale of its offering and the
consequent choice it offers to multiple segments across taste, age and economic
background. Titan saw this approach as the foundation of its leadership strategy
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in the early days. Even the early range had distinct offerings for different
requirements: formal watches (gold plated cases with fine leather straps) for the
executive, dress watches (gold plated cases with ornamental gold plated
bracelets) for those with a preference for jewellery, rugged watches (all steel
watches with a skew to functionality) for those whose usage demanded a certain
durability.
Titan has built on this principle over the last 15 years, almost year after year:
In 1989, it was Aqura, the trendy range for the youth, colourful, smart and
affordable plastic watches for the youth: The other side of Titan for the other side
of you.
In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India,
for the sophisticated India woman who appreciated such things.
In 1993, it was Insignia, very distinctive and international-looking top-end
watches, for those seeking exclusivity and status.
In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious
sports features (200-m mater resistance, high precision chronographs) for those
with the penchant for adventure.
In 1996, it was Dash, the cute and colourful range for kids.
In 1997, it was Sonata, the affordable, good quality range for the budget-
conscious.
In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-
at-heart.
In 1999, it was Nebula, the sold gold and diamond-studded range of luxury
watches for those affluent people to whom gold is a precious acquisition.
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In 2001, it was Steel, the smart and contemporary collection for the young 21st
century executive.
And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop -
each of them unique and fascinating.
The underpinning of this entire market development and segmentation is
Innovation. Titan has kept innovation core to its strategy, realising fully that the
only way to sustain the fashion accessory perception is by continuously coming
out with collections that make the current ones somewhat dated, thereby creating
a certain discomfort in the consumers' mind, which leads to another purchase.
This impact has shown up in every one of the collections spoken of earlier. They
were fresh and distinctive, unlike what consumers had seen before, and thus
created curiosity, walk-ins and sales.
A stellar example of Titan's Innovation is Edge, the slimmest watch in the
universe. Titan's R & D talent created a wafer-thin quartz movement, a mere
1.15mm thin, over 4 years of development work. The immensely talented Design
team collaborated with the Manufacturing group to create Edge, a 3.5-mm watch,
a gem of elegance, with water-resistance to boot! Edge was launched in India
early 2002 to tremendous market acclaim and sales success. It is a design and
technological marvel, which justly received the Best Design Award in the Lifestyle
Product Category in the first annual design contest organised by Business World
and NID.
In the early nineties, Titan chose to develop the "Gifting" market. Watches had
always been favourite things to gift, and Titan had benefited from that. Titan was
convinced that there lay a greater potential in that segment. A set of 3 films were
developed in 1991 around 3 relationships, where the gifting of a Titan culminated
in a moving personal moment and a strengthening of the bond between the
protagonists. These films became a big hit and created a genre of advertising
films which lasted a good 8 years. During those years, a series of films involving
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a variety of characters (father, daughter, teacher, boyfriend, ex-boyfriend, thief!)
and with local flavour (for Onam in Kerala, Puja in Bengal) were created and
released. These not only helped build a good-sized gift segment for Titan, but
also became Titan's Theme Campaign, building strong emotional values for the
brand. One of the films in the series, where a man and his younger daughter
conspire to give his older daughter a Titan as a surprise gift at her wedding,
released around 1994, went on to become the most popular Titan film ever, even
voted by the viewers of Zee Television as the second most liked TV commercial
on the channel.
The most enduring part of the Titan advertising has been the music track.
Chosen by Xerxes Desai and the creative head of O & M in 1987 for its class and
western vibes, the segment from Mozart's 25th Symphony has arguably become
Indian Advertising's most memorable track (incidentally, and perhaps not
coincidentally, this was the most liked advertising track in the same Zee TV
survey). Starting in 1987 in its pure classical versions, with a single violin playing
the melody, this piece has been rendered in countless innovative versions over
the years: Indian Classical, Indian Folk, Operatic, Rock, Funk,. And has become
such a powerful audio mnemonic for the brand.
Another successful customer-facing aspect about Titan has been its stores.
Organized retailing did not exist in the late eighties. The concept of exclusive
brand stores was almost non-existent. In a pioneering effort that dramatically
altered industry standards, the World of Titan was born. Located in the newer
parts of a city, with a good frontage and layout, the showroom immediately stood
out on the street and attracted walk-ins. Once inside, you were totally impressed
with the presentation. You walked along the wall, where recessed "mood
windows" showcased specific collections in the appropriate context with the help
of visuals, decorative props and word (the place looked almost like an art
gallery). You could get a better idea about that collection through such a
contextual presentation and could make up your mind which collection was right
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for your requirement. Then you would walk along to the selling area, where the
entire range was displayed in style. Smart and helpful salespeople waited on you
there and helped you choose the best piece by giving you information and
suggestions. You walked away overwhelmed.
This experience now has over 255 branches and has penetrated the width and
breadth of India. Helping the brand increase sales, increase price premium, sell
the more expensive watches, improve image, keep competition at bay and keep
the brand name salient on the high streets of the country. Refurbished with a
contemporary look in 2001, this chain has become even more integral to the
brand's destiny today.
Doing all this in style has earned Titan enormous goodwill and respect. Titan was
voted the Most Admired Brand (across categories) in India by consumers, in the
first such study by Brand Equity done in 2001. Titan was voted the Most Admired
Consumer Durables Marketer by industry professionals, 8 out of 9 times (the
ninth time it was No 2), in A & M's annual survey done between 1992 and 1999.
Titan was voted the Most Respected Consumer Durables Company in a
Business World Survey in 2003. Consumers and professionals alike have
resonated equally to Titan's successful efforts in bringing international standards
to India. And in 2008, it emerges as the 24th Most Admired Brand in the ET Most
Admired Brands survey done annually, it was also the most admired Consumer
Durable brand.
Titan has also done the seemingly impossible reverse thing: taking Indian quality
to international markets. Since starting export operations in a small scale to the
Middle East in the early nineties to exploit the resident NRI population, Titan has
come a long way. Moving into the European market in the mid-nineties and Asia
Pacific in the late nineties, Titan today sells in the UK, Spain, Portugal, Greece,
Singapore, Dubai, Malaysia, Oman, Philippines and many more countries. The
customers are no longer only NRIs. They are the Thais, the Greeks, the Arabs,
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the Filipinos - through a combination of Contemporary Style, Great Quality and
Great Prices, Titan has put together an irresistible proposition for the people of
these countries.
INTRODUCTION OF TITAN INDUSTRIES:
A CONCERN OF TATA GROUP
About The Company
Titan, a joint venture between Tamil Nadu Industrial Development Corporation
(TIDCO) and the renowned Indian business group Tatas, entered the watch
market in 1984. Titan changed the watch market in India completely by making
quartz watch the centerpiece of its strategy. Titan Company is the unquestioned
leader in Indian Watch Industry. Titan is one of the most powerful brands in the
Indian market, scoring very high on brand awareness, brand image and brand
preference. Over the twelve year period of its existence as a manufacturer, Titan
has added considerably both to capacity and to capability. It has a highly
26
integrated plant, making virtually all the parts that go into a watch. Titan is today
the sixth-largest "manufacturer-brand" in the world, after Casio, Citizen, Seiko,
Swatch and Timex of America.).
Since its inception, Titan decided that it would be the shaper of the watch
industry and not an adapter. They created competitive advantage through
differentiation. They first concentrated on technological leadership. The Tatas
took two decisions they will manufacture only quartz (analog and digital) and not
mechanicals, and they would set up state-of-the-art plant to manufacture
watches in a wide variety of designs and prices. HMT and local players had
always looked at the functional utility of the watch. Titan was first in India to
introduce the style concept. They projected the watch as a fashion accessory.
They clearly identified that their main competitor was not HMT, but the gray
market. A firm differentiates itself from its competitors if it can be unique at
something that is valuable to the buyer beyond simply offering low price.
Differentiation allows a firm to command a premium price, to sell more of its
products at the same price, or to gain equivalent benefits such as greater buyer
loyalty. Differentiation leads to a superior performance if the price premium
achieved exceeds any added costs of being unique. At Titan the products were
developed in such a way so as to enhance quality and features to increase buyer
value. This was the perfect example of differentiation through technological
leadership and product technological change. In the initial years Titan chose to
concentrate on the higher end of the market which was responsive to the style
element of the watch. Also this segment of the market was relatively price
inelastic. This was done so as to build the brand image of Titan as manufacturer
of good quality stylish watches. Over the years the Titan brand and its signature
tune Mozzart’s Fifth Symphony has become one of the most recognized in Indian
consumer durable goods segment. Company has shifted its growth strategy from
adding to equipment and manpower to one of obtaining increased production
through innovative ideas and greater operating efficiency by adopting global best
27
practices. It has come up with two priorities the first priority has been to resolutely
drive down unit costs through product and process modifications and aggressive
sourcing. The second priority has been to boost asset productivity - producing
more with less: less of men, materials, machines and time - and thereby securing
the twin benefits of higher output and lower costs.
Company sold 4.76 million watches in the domestic market as against 3.97
million in the previous year. Growth came mainly from improved market
penetration and from the newly introduced Sonata brand (now Under TATA
name), which now includes over 400 models at prices which start from Rs350.
Company has recently developed a new focus on several market segments with
large potential: women, youth, children, sportsmen, the budget-conscious and, of
course, the big spenders. A systematic programme of launching these has
already commenced and highlights of the year included the relaunch of Fastrack
and Raga. The current year has seen the launch of the children's range, Dash. A
new, attractively priced, solid gold line, Nebula, is also being rolled out.
Sales and Marketing
Titan launched totally a new product, quartz analog watch was an entirely new
product for India in 1987. Titan’s marketing strategy was initially built around five
features:
A product of international quality; Indian designs; Competitive prices; An
intensive advertising and promotion campaign; and Specialized retail shops to
control the presentation, since the general quality of watch merchandising in
India was low.
28
This ambitious marketing program was intended to position Titan watches as
high-quality, fashionable timepieces, available in clean and comfortable
surroundings, priced higher than other watches then on the market but not
beyond the reach of millions of potential purchasers. It was not a program,
therefore, that would place Titan watches in direct competition with, say,
mechanical watches from HMT. The marketing program would introduce to India
the type of promotional effort familiar in most developed countries. In order to be
successful, however, all facets of the program had to come together: attractive
designs, high-quality products, sufficient inventories, a logistical support system
and, a well-timed promotional campaign. Accomplishing these multiple tasks in a
timely way was a monumental undertaking for a new, untested company.
Titan Industries is a manufacturing company that produces India's largest and
best-known range of personal accessories – watches, jewellery, sunglasses and
prescription eye wear. Titan Industries was established in 1984 as a joint venture
between the Tata group and the Tamil Nadu Industrial Development Corporation.
The company brought about a paradigm shift in the Indian watch market, offering
quartz technology with international styling, manufactured in a state-of-the-art
factory at Hosur, Tamil Nadu.
29
Titan’s Main Products
PRODUCTS:
The company manufactures over 8 million per annum and has a customer base
of over 75 million. It has manufacturing and assembly operations at hosur,
dehradun, roorkee and himachal Pradesh and an ECB plant in goa. Its main
products are:
Watches: The company currently manufactures three main watch brand viz.
Titan: it is for the premium segment.
Fastrack: focused on the youth and trendy fashion space. Fastrack, India was
lounched in 1998 as a sub-brand of the moguls of the wrist-watch industry, titan.
30
Fastarck’s mantra from the get-go has been to capture the essence of what the
youth seek: Individuality, style, affordability.
Fastrack entered the market of designer watches & eye gear saturated with
International designer labels and soon carved a niche for itself with designs that
were refreshingly different, causal, chic, eclectic & fun with prices that would not
burn a whole through the pockets of the youth with no compromise of quality.
With a team of young designers who incorporate unique, edgy, unconventional
designs into every watches & pair of sunglasses, fastrack has now established
itself as quality youth brand. But the fastrack market does not extend only to
teens & young adults.
All those who seek an individual’s style that sets them apart from the masses, a
nonconformist spark and panache have fastrack adorning their wrists and eyes.
Present in over 4000 outlets across 450 town, fastrack has added exclusive
brand kiosks in metro mails to its multi-channel distribution network, Large formet
chain stores viz. Shoppers stop. Lifestyle, central, big bazaar etc, multi brand
watch & optical outlets.
Sonata- it is for the below us$25 category and is India’s largest selling watch
brand. Sonata is value for money watch brand from Titan Industries Ltd. it is
targeted at consumers seeking durability and value with a clear positioning of “No
compromise watch”. Sonata comes with the backing of being a Tata product with
five clear functional attributes, Affrodability, looks, 1 year guarantee, waterproof
(up to 30m water resistant) and Durability. It is therefore known as “5 ghadi k
barabar” and equivelant for non-compromise watch. It is India’s largest selling
watch brand with a sale of over 30 lakhs watches in 2007-08.
Sonata has a wide range of over 400 watches in different traditional designs for
gents and ladies. The range starts from Rs.395 and goes up to Rs.1250 . the
31
exclusive designs are made with best quality material, undergoing several
stringent test. Primarily, Sonata is known for being a brand that is strong in gold
plated watches, but now it also has a very good collection of steel watches.
The Titan brand architecture comprises several sub-brands, each of which is a
leader in its segment. Notable among them are..
Titan Edge- The world’s slimmest watch which stands for the philosophy of
“less is more”.
Titan Raga- the feminine and sensuous accessory for today’s women.
Nebula – precious jewellery watches from Titan. A
collection of intricately carved designs for women inspired by paisley and floral
patterns. Priced between Rs.18000 & Rs.45000, these watches are engraved
with beautiful patterns in gold. Adding to the exclusive is elegant mother of pearl
dials, available in nature and light-champagne hues.
An elegant kada watch with 16 diamonds that sparks delicately around the
watchicesn – like a crown jewel. Perfect to complement a traditional or
contemporary outfit. Crafted in solid gold and precious stones and several other
collections like wall street, Regalia and gold & steel, all of which from a part of
the Titan wardrobe.
The company has launched its first swiss made watch –Xylys for the hi-end
connoisseur and new age achiever. It also markets Tommy hifiger watches under
32
a licensing arrangement. Today, the titan portfolio has over 60% of the domestic
market share in the organized watch market.
DRESSWEAR WATCHES-
Splendid dress watches for lifestyle that flies high. Fusing the
ethnic with the contemporary, these designers come in all-gold
and bicolar look with intricate bracelets and patterned dials to add
that finishing touch to your ansemble.
FORMAL WATCHES-
Collection that fuse elegance to bring you the perfect wrist-wear
for your work environment. Bringing you the haute fashin of
leather and metal combination, the cool sophistication of steel
watches and design on the cutting edge of watch making
technology like edge, the slimmest watch in the universe. Formal
wear that is perfect for your finely tuned sense of style.
FASHION WATCHES-
Crafted from the metal that is driving the world wide. Watches in
steel gold, steel leather and all steel for the young professional
with an eye on every trend. In designs that range from serious
fashion to statements of minimalist funk.
SPORTY/CASUAL WATCHES-
33
Access the raw essence of hip with these edgy fastrack watches walk the fashion
tightrope with groovy colors and chunky styles. Kick start cool with bold broad
straps and trendy metal bracelets for the girls and sports watches in leather and
metal straps for the guys. Digital-tech and trendy shapes splash oomph and onto
your wardrobe and smear danger on your look.
34
Organization Structure of Titan
35
Product Portfolio of Titan
Sonata: From Titan (Now sold under TATA) aims at the mass market and
advertises itself as "a Titan watch at low price". Sonata sold an estimated 0.8
million pieces (2007-08) within four years of its launch. It is probably the largest
selling sub brand from Titan. Titan entered the watch market as a premium watch
but competition from the unorganized sector and low priced options from HMT
36
forced Titan to introduce Sonata. Sonata was so successful that it cannibalized
the brand from the extension’s low price connotation.
Titan's Exacta, a rugged steel watch starts at the low end of the price spectrum
but offers high price versions as well. It is reportedly selling 1.0 million pieces per
year because of the constant up gradation in its models.
It is difficult to categorize Titan's Royale, Regalia and Classique as premium or
popular. Though they have a premium image they are available at prices less
than Rs.1000. Regalia (estimated sales - 0.3 million units) is at the higher end
with dress watches for special occasions. The Royale range (estimated sales -
0.6 million watches) caters to the gift segment. There is also Royale Crown in the
upper end of the Royale range. Caciques are an office wears accessory that is
gold-plated and leather strapped (estimated sales - 1 million units). Classique
watches are targeted at the older, male segment of the market, and profess
timeless elegance through a combination of fine leather straps, clean classic
dials and sleek cases, thus making it,”A perfect fit for formal wear." Caciques are
the embodiment of everything that is everlasting yet contemporary. These
watches tend to be generic in their simplicity, and find no real competitors, except
HMT: These watches are priced between Rs 550 to Rs 3000. Though there are
very high priced watches in the above three ranges it is the relatively low-priced
ones that sell. They all target the upper middle class men and women in their
thirties. Royale, Classique and Regalia are the watches that gave Titan the
popularity and the prestige it enjoys.
The Spectra range in this price band is a well-designed bimetal watch
("stylishness of gold and ruggedness of steel"). It sold just 70,000 units in 1997-
98. Titan Industries launched (September, 2001) its range of watches in steel,
targeted at urban men and women in the age group of 25-35 years. The Titan
37
Steel collection has a range of bracelet and leather strap watches for both men
and women priced between Rs 1,250 and Rs 6,000. The range will be retailed
through World of Titan, Time Zone and other retail outlets. The launch of the
steel watches, available in 90 designs, will be followed by an aggressive
marketing campaign.
Titan's Tanishq range initially targeted the European market with limited success.
In India also Tanishq faced resistance because Indian women do not treat
watches as jewelry.
The company is exploring the possibility of filling up the gap in the super
premium segment. At present only Swiss brands have a presence in this niche.
TIL, however, has its Nebula range for both men and women priced between Rs
6,000 and Rs 32,000. The new range is expected to higher price than the Nebula
range. In fact the company's focus would be on niche segments to grow the
market. By planning to launch a brand in the super premium category, Titan
perhaps hopes to be present across all categories.
Titan's Raga is an interesting product concept that offered to give dials that
match with designs on saris. This promise was unrealistic and Raga flopped
(estimated sales - 20,000 units). Raga is now being launched in more mellow
colors and its positioning changed. Raga silver watch range also did not fare well
because Indian dials.
Titan Industries launched its Fastrack range of watches for women (For Men It is
already present). The ladies watches are available in different finishes frosted,
polished and satin and come in varied geometric shapes with trendy leather
straps and classy metal bracelets. The watches retail from Rs995 to Rs1,950 and
are attractively priced. The watches which have been designed at Titan's creative
studio is the outcome of research that has highlighted the need for a watch that is
38
fashionable, bold, unconventional and designed to accessories western wear. A
collection of watches with contemporary styles those are young and distinctive.
Designs that go from the relaxed and informal to the definitely sporty. The
woman's collection presents the all-new international 'Frosted' look, which is
trendy and chic. The Fastrack collection has elements like cool mesh straps and
features that include backlight and dual time. Also presenting 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.
Dash is Titan’s reply to Gimmix and Zap. Dash is available in 3 new collections
for kids - Popeye, Digital and Lumibrite. Titan is the sole licensee of Popeye in
India and this range is priced between Rs350 and Rs395. Giving Popeye of the
spinach-eating fame the additional responsibility of keeping time, the Popeye
brand of watches come in 6 different designs. The Digital range in a collection of
10 digital watches has features like El-light compass and Velcro straps for the
sporty and is priced between Rs425 and Rs 495. and Lumibrite.
39
OBJECTIVES
To know the promotion technique of TITAN.
To know the purchasing power of customers.
To know the craze of watches now.
To study the behavior of retailers.
To know the image of Titan in small cities.
To get the real demand of watches in small cities.
NEED OF STUDY
In India there are 4 metro cities and only 15 to 20 big cities that contain only 25%
of total population of our country and about 75% of the population live in small
cities. If we do not give attention to this major population then any company
cannot be successful in market.
This type of study is very important for Titan Company, in this study customer
research done on the brand image of about 100 customers of various tastes and
preferences and various customers give their views about the company and
about its products and this project include actual figures of various data which is
very important for any of the company. This project not only includes customer’s
views but also the retailer’s views that provide various information to the
company by the use of various pie charts, which give the easily readable data to
the company.
40
RESEARCH METHODOLOGY
Research Brief:-
Keeping the objective of the study in mind it was decide to carry out a survey
among dealers in the various routes in Jaipur. It was done with the help of
questionnaire. This process was carried over a period of 30 days. About 40
dealers were contacted.
This study was aimed to get information about the Image of Titan in small cities
I used some parameters for attaining objectives of the survey, there are as
follows:
(a) In questionnaire, direct question was asked to the dealers.
(b) I have direct discussion with dealers regarding to the sales and about
the competitors.
PROJECT DESCRIPTION
BRAND IMAGE OF TITAN IN SMALL CITIES has designed and developed for
the TITAN Company to know about the image and brand value of the Titan
Company.
This project is to get the real image of the company in small cities so that they
can improve the performance in small cities. This research project is to show how
The gender
The age
The mentality
Their profession
Their income levels
41
Research Design
The Research was “descriptive” in nature as is dealt with describing the market
and the behaviour of consumers. The research was designed to discover the
potentiality of “BRAND IMAGE OF TITAN IN SMALL CITIES” at Jaipur and also
the survey of the individuals to know about their perception, the psychological
factors associated with the product, the benefits they are looking forth from the
product and how do they rank in terms of risk and returns associated with it.
Sample Design
The first step in order to accomplish the task was to draw a sample. To serve this
purpose, the sample technique adapted was “Random Sampling”. Sample Size
for the conduct of survey was taken as 50 dealers to get the details with
necessary and reliable information. Also by adopting this procedure it was
ensured that the sample drawn would have the same composition and
characteristics of the population.
Type of Universe
The dealers and retailers, who were dealing in the Titan and other brands, were
the sources of getting information.
Sample Size
Since the population was homogenous in nature to large extent, hence a sample
size of 50 respondents was taken into account to achieve the objective of the
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study. Other prominent factors, kept in view while determining the size of the
sample, the number of questions in the schedule, the sampling procedure
adopted and the time constraints. Thus it fulfilled the requirements of efficiency,
reliability and flexibility.
Data collection
I have used primary data in research study and it was collected by using
“Random Survey technique”. Keeping the objective of dealers in the various
route of city, it was done with the help of questionnaire. This process was carried
over a period of about 40 days.
Data Sources
Primary data: Interviewing the dealers and collected primary data by the
questionnaire method.
Secondary data: Secondary data was collected from some magazines and
some website and with the help of Mr. Ujjwal.
Research Instruments
Research was done with the help of questionnaire consists of 11 sample
questions.
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Contact Method
Initially dealers were informed about the project that it is the practical fulfillment of
the course and then requested to give their response to the questionnaire. The
only problem faced here was that some they could not spare their time
immediately to give response. Some time dealers were not aware of English
Language. Thus the language was explained to them in the local language and
then answers were got from them. Thus a structured interview was taken.
Steps to be followed:
Formulation of research problem.
Collection of data.
Analysis of data.
Interpretation.
Presentation of report.
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FACTS AND FINDINGS
1. CONSUMER SEGMENTATION ON PRICE BASIS
S No. Price BRAND PERCENTAGE
1. Below 400 Grey market-Chinese watches 11
2. 400-1000 Maxima, HMT 43
3. 1000-5000 Titan, Citizen 33
4. Above 5000 Omega, Insigma Calvin 13
2. FAMILY MONTHLY INCOME
S No.
Monthly
Income Percentage
1. Below 10000 47
2. 10000-25000 33
3. 25000-50000 17
4. Above 50000 3
45
3. RANKING OF TITAN IN CONSUMER VIEW
S No. Basis
Percentag
e
1. Brand Image 15
2. Service 20
3. Price 7
4. Guarantee 22
5. Style 9
6. Quality 17
PREFERENCE INDUCES TO PURCHASE
S NO. PREFERENCE
PERCENTAGE
1. Word of Mouth 14
2. Discount 29
3. Brand Endorsement 10
4. Image 47
46
ANALYSIS AND INTERPRETATION
1. CONSUMER SEGMENTATION ON PRICE BASIS
S No. Price BRAND PERCENTAGE
1. Below 400
Grey market-Chinese
watches 11
2. 400-1000 Maxima, HMT 43
3. 1000-5000 Titan, Citizen 33
4. Above 5000 Omega, Insigma Calvin 13
47
2. FAMILY MONTHLY INCOME
S No.
Monthly
Income Percentage
1. Below 10000 47
2. 10000-25000 33
3. 25000-50000 17
4. Above 50000 3
48
In this customer ranked the Titan Company in their own view and also share
about what is the most important for him for the Titan. In this pie chart this is
clearly shown that brand image of Titan is most important for the consumer.
3. RANKING OF TITAN IN CONSUMER VIEW
S No. Basis Percentage
1. Brand Image 15
2. Service 20
3. Price 7
4. Guarantee 22
5. Style 9
6. Quality 17
49
In this pie chart consumer tells about his preference when he is going for
purchase what is most important to him in this pie chart. We know that brand
image of Titan is most important for the consumer but in this pie chart company
cannot neglect anything for their consideration because every single percent is
showing their sales value.
4. PREFERENCE INDUCES TO PURCHASE
S NO. PREFERENCE PERCENTAGE
1. Word of Mouth 14
2. Discount 29
3. Brand Endorsement 10
4. Image 47
50
SWOT ANALYSIS
STRENGTH
Titan retained no. 1 brand in the brand equity survey
Super brand 2003-brand equity award.
WEAKNESS
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Non-availability of cheaper raw material from domestic sources. Titan weakness
is that Titan has not focused on lower end level rural areas which is contributing
about 40% share in Indian watches market.
OPPORTUNITY
Branded jewelry is less than 2% of the over all market so there is importance of
jewelry to Indian customers. Globalization and revamping of brand India and
Indian brands. Huge market in the exchange business marketing of other brands
in consumer attitude increasing penetration will drive growth of low end mass
market segments.
THREATS
Luxury watches are highly cyclical.
Changing trends in fashion liberalized.
Import of watches in the EXIM policy allows major international players to
enter in the high-end segment. Raw material cost are said to be high
because of high import duties.
CONCLUSION
According to the data collected by the survey method about the company I found
that company performed well if we take overall market of INDIA but if we take
only small cities company do not perform so well. Generally TITAN Brand is not
for the small cities or low-income group people.
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Titan already made different alternatives in the name of SONATA but still there
are lot of customers who can afford Titan but not purchase it because of some
reason as: Service time taken by the company, sometime there is not availability
of high range watches.
The main targeted customer is between the range of 1500-10,000 because after
10,000 customer will go for another premium watches because of new model and
brand and before 1500 customer has no option to buy this and sometime
retailers convince the customer to other brands due to unawareness of the
customer in Titan company.
SUGGESTION
Improved feedback system.
Need to improve their service or reduce the time.
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New promotional techniques should be used in small cities also.
Special discount for the loyal customers.
Company should launch new sports model in Fastrack in low range.
New attractive models in range of 1000 to 1500.
Need to operate Customer Care Office to identify the problems of
customer.
Give special credit to small cities for Premium Watches.
Try to keep a strong relationship between the customer and the company.
TITAN QUESTIONNAIRE
NAME_____________________________
1. Gender ?
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M [ ] F [ ]
2. Married ?
Y [ ] N [ ]
3. Members in family ?
a) <2 b) 2-4 c) >4
4. Monthly family income ?
a) >5000 b) 5000-10000 c) 10000-25000 d)<25000
5. Age group you belong ?
a) <15yrs. b) 15-21yrs. c) 21-30yrs. d) >30yrs.
6. You are ?
a) under 10th b)12th c) graduate d) post graduate
7. You are ?
a) student b) house person c) business person d) service person
8. When you wear watches ?
a) daily b) weekly c) occasionally d) never
9. In which way you prefer watches ?
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a) necessity b) fashion c) need d)jewelry
10. Preference of wearing watches ?
a) classic b) sports c) party wear d) stainless steel
11. Which watch company you prefer wearing ?
a) Titan b) Timex c) maxima d) HMT
12. Have you ever gifted watches to anybody or received ?
Yes [ ] No [ ]
13. How many watches you have ?
a) none b) one c) two d) more than two
14. What promotion induced you to purchase TITAN brand?
a) retailer b) advertisement c) image d) discount e) brands endorsement
BIBLIOGRAPHY
BOOKS
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Research Methodology by C.R. Kothari
WEB
www.clocksonly.com
www.google.co.in
Wikipedia.org
www.indiainfoline.com
MAGAZINES
1. Business World
2. Business Today
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