The Watch Industry

1980s-till date
1970-80s

1950-70s

1950s
 Indian Watch Industry
 -Setting up HMT in collaboration with Japanese Citizen
watch company.
 - License to other companies e.g. Indo-Swiss, Bifora
 - LED (Light Emitting Diode) watches gained in
popularity & Swiss watch industry declined.
 -Government approved indigenous watch manufacturer to
set up establish capacities.
 : Indian watch market size is increased from 16.9
million to 24 million watches.
 - Recessionary pressure adversely affected the watch
industry`s performance.
 -Removed all quantitative restrictions on the import of
fully assembled watches by WTO.
 Innovation
 Quality
 Creative Advertising
 Aamir Effect
 ‘Catalogue’ Advertising
 Retail Stores
 Cutting Edge Technology
• Creation of Edge
 Slimmest commercially available watch “in
the universe”.(thickness: 3.5 mm)

 Four years of intensive R&D.

 Produced indigenously.

 Received Best Design Award in

Lifestyle Product Category
• Organized by Business World.
 Certified under ISO 9001 in Dec.’94

 ISO 14000 certification in 2002

 TS 16949 certification in Feb ‘05

 Aamir Effect
 Created by TVC.
 TVC introduced in Oct. 2004.
 Sales soared exponentially.
 Catalogue Advertising
 Used effectively to merchandise new models.
 Newspaper “Cuttings”.
 10000 2300
Dealers ALL INDIA Towns

177 104
World Of Titan
Showrooms Towns

119 90
Time Zones
Multi-brand-stores Towns

616 314
Service Centers
Centers Towns
 The Design Studio:
– Excellent Watch and Jewellery design.
– Has international award winning designs to its credit.

 Sophisticated Design & Development Centre

– Advanced Pro-E workstations and prototyping facility.

 Every Ford Mondeo car rolling out of the plant in Genk,

Belgium has a Titan Clock.
 Watches
1000 919
784
Income in Rs. Cr.

800 655
600
400
200
0
2005-06 2006-07 2007-08

Year
 PBT PAT
250
202 250
200
200
in Rs. Cr.

132 150
150

in Rs. Cr.
150
87 94
100
100 74
50
50
0
2005-06 2006-07 2007-08 0
2005-06 2006-07 2007-08
Year
Year
 Watches

400 338
328 327
300
in Rs. Cr.

200

100

0
2005-06 2006-07 2007-08

Year
 Market Cap.
5000 5300
4400
4000 3530

3000

2000
1018 Crossed
1000 500 Billion $
218
0
2002- 2003- 2004- 2005- 2006- May-08
03 04 05 06 07
 • HMT
• Maxima-quartz
Domestic • Rado
Level • Casio

• Espirit
• Swatch
• Citizen
• Tag Heuer
International • Seiko
level • Cartier
• Giordano

• DKNY
• Gucci
• Adidas
Fashion • Nike
Houses • Bvlgary
 Competitive factors

 Technological factors

 Social factor

 Economic factors
Introduction : WWF, Orion, Zoop, Maturity: Sonata, Fastrack, Dash
Diva, Octane

Growth: Nebula, Insignia, Raga, Decline: Aqura

Royal, Regalia, Edge etc
 Product type
 convenience
 specialty
 Segmentation of TITAN Watch
 Market segmentation
 Based on user category
 Competitive prices
 Edge
 Raga
 Octane
 Zoop
 WWF
 Heritage
 Orion
 Nebula
 Sonata
 Exacta
 Titan Bandhan watches
 Spectra
 Dash
 Regalia
 Fastrack
 Royale
 Classique
 xylus
 World of Titan Showrooms
 Time Zone
 Traditional Outlets
 Non Traditional Outlets
TITAN PRICING
• Pricing Objectives
1. Survival (i.e. Titan Exacta)
2. Market share (i.e. Titan Sonata)
3. Market skimming (i.e. Titan Nebula)
4. Product quality
• Pricing method

1. Product line pricing

2. Promotional pricing
• Application of pricing strategy
1. Lower segment
2. 1000 plus segment
PROMOTION:-

1. Advertising
2. Sales promotion
3. Public relation

• Advertising media:
• Television
• Print
• Internet

• Titan brand ambassador:

• Titan Brand: Aamir Khan

• Sonata: Mahendra Singh Dhoni
• Raga: Gul Panag, Rani Mukherjee
• Xylys: Rahul Bose

Titan tagline: Be more

Fast track tagline: How many you have?
Public relation
•Gift concept
•Promotion On Occasions

Sales promotion
•Sponsorship
•Seasonality
•Promotion through Contests
SWOT
 STRENGTHS
 Watches as a fashion accessory

 Quality or price positioning

 Brand image

 Market segments with large potential:

women, youth, children, sportsmen, the
budget-conscious and, of course, the big
spenders.

 Customer value and offered after sales

service in a showroom environment.
 WEAKNESSES

 Main USP is low cost

watch.

 Lack of futuristic
approach

 Lack of flexible thinking

 OPPORTUNITIES

 Nearly 34 million watches are sold through gray market

channels.

 Currently, sales in India stand at an low number of 25 watches

per 1,000 people, compared with 250 watches per 1,000
people in a developed society.

 Exchanging offer

 Rural market
 THREATS
 Too many players will dilute the market &
the profit margin

 Low priced China watches

 Mobile phones.
 Conclusion
 The opening of the Indian market and the arrival of premium
Swiss brands has certainly led to Indian consumers being
exposed to global brands, styles and various price levels. To
the Indian consumers, the high price of Swiss watches has
helped them to realize the value of Indian brands, particularly
of Titan, which offers equivalent quality, but at lower prices
and with better distribution and service. Titan has shown its
differentiation, and customer centric approach which helped
them to get the market.