Description
profile & vision, mission of Titan, corporate governance and philosphy of Titan, organization structure of Titan, conducive factors of growth identified for Titan, factors that led to decline of Onida, SWOT analysis of Titan, strategy of Titan
2009
Titan Industries Limited – An Organizational Analysis
Group E2
Rohit S Vinay Malani Sashidhar M S Shruti Aggarwal Mohammad S Ayyubi
Titan Industries – An Organizational Analysis
Contents
Introduction .................................................................................................................................................. 4 Background ............................................................................................................................................... 4 Vision and Mission .................................................................................................................................... 5 Organizational Structure ............................................................................................................................... 6 Business Divisions...................................................................................................................................... 6 Senior Management.................................................................................................................................. 6 Conducive Factors ......................................................................................................................................... 8 The Growth of the Organisation ................................................................................................................. 10 Identified factors that led to the Expansion and Growth ........................................................................... 12 Unique Product Strategy ......................................................................................................................... 12 Innovative Product Distribution .............................................................................................................. 12 Thoughtful Product Marketing ............................................................................................................... 12 Campaign Strategy.................................................................................................................................. 13 Further expansion of the organization ....................................................................................................... 14 Branding .................................................................................................................................................. 14 Sales and Marketing ............................................................................................................................... 14 Segmentation .......................................................................................................................................... 15 SWOT Analysis............................................................................................................................................. 18 Strength................................................................................................................................................... 18 Weaknesses............................................................................................................................................. 18 Opportunities .......................................................................................................................................... 18 Threats .................................................................................................................................................... 19 Organizational Strategy .............................................................................................................................. 20 Strategy Evaluation ............................................................................................................................... 20 Positioning Strategies ............................................................................................................................ 20 Corporate Social Responsibility (CSR) ......................................................................................................... 23 Corporate responsibility begins at home ................................................................................................ 23 Successful CSR programmes.................................................................................................................... 24 Recognition of CSR .................................................................................................................................. 24 Awards & Accolades.................................................................................................................................... 25 Conclusion ................................................................................................................................................... 27 2
Titan Industries – An Organizational Analysis Learning’s from the Project ........................................................................................................................ 28 References .................................................................................................................................................. 29
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Titan Industries – An Organizational Analysis
Introduction
Titan Industries is the world?s fifth largest and India's leading manufacturer of watches. The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. The umbrella brand Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling. Today, the Titan portfolio has over 60% of the domestic market share in the organized watch market. The company has 247 exclusive showrooms christened „World of Titan?, making it amongst the largest chains in its category backed by 700 after?sales?service centers. The company has a world?class design studio that constantly invents new trends in wrist watches.
Background
Titan Industries was established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). The company set up its corporate office in Bangalore (Karnataka) and its watch manufacturing facility in Hosur (Tamil Nadu). In over two decades the company has built an impressive watch business to become India?s largest manufacturer and the world's fifth largest manufacturer of watches. This has mainly been achieved by developing a formidable distribution network. The company has amongst the world's largest retail chain of exclusive retail showrooms for watches called „The World of Titan? spread over 100 towns. It also has multi-brand outlets named „Time Zone?, service centers and dealer outlets. Globally Titan has a presence in over thirty countries through its marketing subsidiaries. Titan has also entered the jewellery business in 1995. Jewellery is sold in India through an exclusive company controlled retail chain, comprising of owned and franchised outlets. It is also exported to Singapore and the Middle East. The company has watch assembly plants at Dehradun (Uttar Pradesh) and Baddi (Himachal Pradesh) and a plant manufacturing electronic circuit boards in Goa. The majority stake in the company is held by the promoters, with TIDCO having 28 per cent of the shares and Tata Group companies owning 25 percent of the shares. Public holding in the company is around 28 per cent. The rest of the stake is held by foreign institutions, non-resident Indians, mutual funds and other institutions.
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Titan Industries – An Organizational Analysis
Vision and Mission
Vision To be a world-class, innovative and progressive organisation and to build India?s most desirable brands Mission To create wealth for all our stakeholders by building highly successful businesses based on a customercentric approach, and to contribute to the community Values and Standards Total customer orientation - Customers take precedence over all else, always Employee appreciation - We value and respect Titanians and endeavour to fulfill their needs and aspirations Performance culture and teamwork - At Titan Industries, high performance is but a way of life and is nurtured by teamwork Creativity and Innovation - Driven by innovation and creativity, we focus on smarter approaches and newer technologies Passion for excellence - In all our pursuits, we ceaselessly strive for excellence Corporate Citizenship - We ensure that a part of our resources is invested in environment and community betterment.
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Titan Industries – An Organizational Analysis
Organizational Structure
Business Divisions
Business Divisions Time Products Titan Edge Jewellery Eyewear Precision Engineering Injection moulds Progressive tools Jigs and fixtures
Tanishq
Titan Eye+
Titan Raga
Goldplus
Nebula
Sonata
Xylys
Fastrack
Senior Management
Bhaskar Bhat K F Kapadia Harish Bhat C K Venkataraman S Ravi Kant M S Shantharam B G Dwarakanath Kailasanathan N
Managing Director Chief Financial Officer COO - Time Products Division COO - Jewellery Division COO - Eyewear Division Chief Manufacturing & Technology Officer and Senior Vice President COO - Precision Engineering Division Chief Information Officer and Senior Vice President
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Titan Industries – An Organizational Analysis H G Raghunath S Ramadoss C Srinivasan Ronnie Talati L R Natarajan V Govindraj Sandeep Kulhalli Ajoy Chawla Usha Iyengar Vice President – ISCM, Time Products Division Vice President, HR & Administration Vice President - Sonata, Institutional Sales & Customer Service Vice President and Business Head – Fastrack & New Brands Vice President - ISCM, Jewellery, Goldplus Vice President - Integrated Retail Services Vice President - Retail & Marketing, Tanishq Vice President and Global Business Head - Titan & Retail General Manager and Company Secretary
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Titan Industries – An Organizational Analysis
Conducive Factors
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 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 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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Titan Industries – An Organizational Analysis 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.
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Titan Industries – An Organizational Analysis
The Growth of the Organisation
Over the last two decades, Titan has had a phenomenal growth and this can be traced across the following timeline – In 1989, it was Aqura, the trendy range for the youth, colorful, smart and affordable plastic watches for the youth: The other side of Titan for the other side of you. In 1992, it w as Raga, the ethnic range, with striking symbolism from ethnic India, for the sophisticated India woman who appreciated such things.
Company Profitability
160 140 120 100 80 60 40 20 0 2006-07 2007-08 Year 2008-09
Rs. in Crores
Dom. Watches
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 colorful range for kids. In 1997, it was Sonata, the affordable, good quality range for the budget-conscious. In 1998, it was Fastrack, the cool and trendy range for the young and young-at-heart.
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Titan Industries – An Organizational Analysis In 1999, it was Nebula, the solid gold and diamond-studded range of luxury watches for those affluent people to whom gold is a precious acquisition. 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.
Market Capitalisation
6000 5000 Rs. in Crores 4000 3000 2000 1000 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 1-Jun-09 Year
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Titan Industries – An Organizational Analysis
Identified factors that led to the Expansion and Growth
Unique Product Strategy
The consumer was offered a wide choice, both in terms of style and design. This was backed by good pricing to target different customer segments. To begin with, Titan offered four brands: Classique, Spectra, Exacta and Fastrack. Since then, the company has been introducing new designs of watches to entice Indian consumers. This was to ensure that the consumer never gets bored of visiting a Titan shop. This constant introduction of new designs gave the brand a good image in the consumers mind.
Innovative Product Distribution
Titan introduced some innovation even in its distribution strategy. Besides traditional outlets, Titan watches were showcased in places like fashion boutiques, etc. Another important step that Titan took was to open Titan shops and franchisees that changed the way watches were retailed. The locations of these outlets were chosen after great planning. Utmost care was taken to design the outlets with good ambience keeping in mind the values attached to the brand. These showrooms also offered strong after-sales service. Service was another factor in which Titan took keen interest. Since the concept of quartz watches was new in India, there was a fear among the people regarding the fragility of the watches. Customers were also worried about how to get the watches repaired since this technology was new in India. This was cleverly addressed by Titan by offering sales services in the showrooms where the customers could get their watches serviced with genuine parts and with complete assurance.
Thoughtful Product Marketing
Over the years, Titan has launched a wide range of watches with world class designs. The company?s focus was to move people from buying imported watches to Titan. This was done by showcasing trendy and good looking watches. The pricing and design also perfectly matched to address the tastes of different customers. Raga was another extension that was introduced by Titan to attract women buyers. Nebula, Titanium, Fastrack (with a sporty look design and later on with fashion-oriented sun glasses) Sonata (for the masses) are some of the products offered by Titan. Its mantra was to keep pace with the changing taste and attitudes of the new modern Indian audience. All this innovation catapulted the brand to newer heights and Titan has remained in the consideration set of the consumer every time he/she thought of buying a watch. What?s more, the brand also entered the global market with great designs to meet the taste of the international customer.
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Titan Industries – An Organizational Analysis
Watch-market map
Campaign Strategy
The task was to entice and create aspiration amongst the watch buyers to look at Titan. Here the company capitalized by showcasing the products as the hero in all its communications. This really paid- off as the customer could get a good feel and appearance of the product when it appeared in various media vehicles. The initial launch campaigns highlighted the products well. Even as time passed by and it tried to bring in some human element to break the monotony it did not sacrifice the presence of the products. The watches were well showcased and there was a good balance in each of its communications. Since color reproduction was not of good quality in the early stages, care was taken to hand pick the publication to get reproduction.
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Titan Industries – An Organizational Analysis
Further expansion of the organization
Primary factors that led to the growth and expansion of Titan industries –
Branding
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. The Titan brand has three attributes - leadership, innovation and pride in the consumer's mind. Research tells us that even to an up-market SEC A customer, Titan means style and elegance. Where we fell short was in these "softer" attributes. Primarily because innovation was less frequent and less visible from Titan in the last few years. However, we are back on the track with innovation, which is the essence of Titan, apart from leadership and pride. - Bhaskar Bhat, Managing Director, Titan Industries
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.
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Titan Industries – An Organizational Analysis
Segmentation
Titan had traditionally focused on the premium segment. In the late 1990s, Titan segmented the market into different groups based on lifestyle, socio-economic groups and personalities.
Segmentation Map – Titan Watches
Over the years, TIL launched several collections/ranges under the mother brand Titan Sonata In 1998, to exploit the huge potential in the budget segment, TIL launched Titan Sonata. Priced between Rs.300 and Rs.1,050, Sonata watches were available in plastic, leather, stainless steel and gold platedstraps. Dash! In July 1999, TIL launched Dash!, an exclusive children?s watch targeting those in the age group 6-14. The watch was priced in the range of Rs.250-395 and came in plastic straps and colorful dials. With this launch, TIL made a series attempt to change its? „elegant? and „old? image.
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Titan Industries – An Organizational Analysis
TIL tried to tap the children?s watch market, which was an unpenetrated segment, and believed to be as large as Rs.35 million. The company aimed to achieve volumes of around one million units from Dash! within a period of 2-3 years of the launch. Fastrack Fastrack was launched in the late 1990s as a product range within the Titan umbrella. These watches were positioned as ?cool watches from Titan? and as the youth face of the Titan brand. The communication of the brand also reflected the heavy fashion quotient of the watches. In the early 2000s, the company started developing Fastrack as a distinct sub-brand. A commercial featuring ace Formula-1 driver Narain Karthikeyan, with the tagline - „Are you on it?? - was launched in 2002.
Steel In September 2001, TIL launched Titan Steel watches in Kolkata. As the name suggests, the watches were created out of steel. The Titan Steel collection had a range of bracelets and leather strap watches for both men and women and were priced between Rs.1,250 and Rs.6,000.
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Titan Industries – An Organizational Analysis
Edge In May 2002, TIL launched the Titan Edge, the slimmest commercially available watch "in the universe". Produced indigenously after four years of intensive research and development, the Titan Edge had a thickness of just 3.5 mm and a wafer thin movement of 1.15 mm.
Flip (new product development) TIL launched Titan Flip in July 2004 at Mumbai's Taj Mahal Hotel. And again a celebrity -- film star Akshaye Khanna -- was invited for the launch. The watch was unique in the sense that it was India's first dual face watch with dual functionality and styling and had two movements. One could use two watches with the mere 'flip' of the dial. The dual-faced watch allowed customers to switch between international time zones and alternative lifestyles - formal/casual, minimal/sporty etc.
Product expansion
In June 2004, the company diversified into other lifestyle products like eyewear by extending its watch sub-brand Fastrack and perfumery with a new brand Evolve, launched in early 2005. The main manufacturing plants of the company were situated at Hosur in Tamil Nadu.
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Titan Industries – An Organizational Analysis
SWOT Analysis
Strength
1. Style - Titan first introduced the „style? concept in India and projected watches as fashion accessories. Style is an evident factor amongst the youth. And there is no dearth in demand for stylish wristwatches 2. Models -Titan offers the best and the largest range of watches for customers to choose from with an affordable price tag 3. Exclusive products - Titan has exclusive products both within the country and internationally. Its EDGE model is the slimmest watch in the world 4. Contribution of owned brands and retail. The profit is accounted by being in the booming retail space 5. Provides guarantee/warranty for all watches/accessories under its umbrella
Weaknesses
1. Pricing - The average price of Titan watches in the mid-price segment is relatively higher than other competitors 2. Market share - As the average price of Titan wristwatches are far higher than other competitors, Titan has a relatively less market share. The market is influenced more by people in the middle class of society and Titan proves costly for this segment 3. Globalization – Though the company had been expanding globally, it has not posed an aggressive globalization strategy. Much of the company?s efforts are India centric
Opportunities
1. Seasonality - During festive times, like Diwali, Titan capitalizes on market demand by promoting its Nebula and Bandhan brands because there is huge demand for these products. The „Fastrack? brand is promoted in the months of June-August when schools and colleges re-open.
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Titan Industries – An Organizational Analysis 2. Gifting concept - Titan started as a brand which was associated with gifting. The „gift? concept sells well to people who have come to associate Titan with emotions and relationships. 3. Exchanging offer - Titan stores promote exchange offers of any old watch, of any make, in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new, stylish and technologically advanced watch from Titan.
Threats
1. Competitors - Many foreign brands are entering India with their branded watches. And the removal of quantitative restrictions on import watches also leads to a formidable threat to Titan. 2. Premium segment - In the premium segment, Titan faces competitive threats from reputed international brands such as Espirit, Swatch and Citizen. 3. Cell Phones – Today?s cell phones come with many features which deem watches more as accessories than necessities. Titan needs to reinvent itself because customers see no necessity in buying watches when they could as well look into their phones to check the time.
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Titan Industries – An Organizational Analysis
Organizational Strategy
Strategy Evaluation
Titan banks on Cutting edge technology that has helped Titan create value-for-money price and the result is extraordinary marketing presence in about 40 countries, with a network of some 3,500 retailers abroad and high volume of domestic presence. Till date Titan is able to single-mindedly convey a point of differentiation that strikes the consumer then whether it is in terms of price (Sonata) or extraordinary beauty (Slim “Edge” watches). But the point is that whether the strategies which Titan is following will take Titan to a position of global uniqueness: a brand which brings information and ideas together from around the world, to fulfill human needs in novel ways and still go on for profitable growth. But maybe what's required is a campaign with executional variety a TV campaign that uses attention-getting devices to drive home the message. This would require greater creative risk. But then, if the stakes are reaching gigantic proportions it's time to get one's eyes in.
The Five-year story of Titan
Positioning Strategies
Since its introduction, Titan has been positioned as a premium brand, providing high quality products. With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create a strong brand image. It follows different positioning strategies and these strategies can also be analyzed in the present context of Sonata, Fastrack, dash and Raga, Classique and Regalia as
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Titan Industries – An Organizational Analysis Attribute positioning When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! Regalia as 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 allgold and bicolor look, the 'Regalia' range represents the essence of dress-wear. Raga has been differentiated and positioned as Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An exciting 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, the Silver Raga makes a perfect accessory that completes a woman's wardrobe.
User positioning
Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being contemporary, sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant and „cool? (the ad line says “Cool watches by Titan”)
Benefit positioning The Fastrack Digital range offers the customer a functional watch that is also attractive. The digital watch has a “techno-geek” image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness.
Competitor positioning With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, Cartier etc. Titan already had the Tanishq brand in this segment. However, it has tried to reposition this brand by increasing the price range to encourage more customers.
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Titan Industries – An Organizational Analysis Quality or price positioning In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as „value- for- money?: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality. In India Market Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition from lower end segment.
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Titan Industries – An Organizational Analysis
Corporate Social Responsibility (CSR)
Titan Industries has a clearly defined policy for Corporate Social Responsibility (CSR). As part of the company?s CSR initiative, the manufacturing units of Watch and Jewellery Divisions at Hosur have acquired the certifications „ISO 9001: 2000 Quality Management System Standards? and „ISO 14001:2000 Environment System Standard? emphasising the efforts to be an ecologically responsible organisation. The company?s diverse CSR initiatives include: 1. Children?s education 2. Enabling the disabled 3. Artisan parks 4. Women?s empowerment 5. Environment management programmes 6. Miscellaneous community initiatives Titan Industries? community initiatives are committed to build partnership for social development, focus on sustainable initiatives and improve the quality of life of the communities where the initiatives operate. With a dedicated force of 250 enthusiastic employee volunteers, the company has formed a Community Development Forum. This forum works towards mobilizing society and volunteers to make the community initiatives a success. The company?s miscellaneous community development activities include orphanage support, HIV/Aids awareness, village adoption, vision improvement program, a program to provide work to rural unemployed women, community rehabilitation, tsunami relief work, eradication of child labor and environment protection, to name a few. The company has made a positive change in the lives of over 2000 people.
Corporate responsibility begins at home
Titan Industries believes that corporate responsibility begins with the employees. The company ensures that the harmony, peace and inclusive approach at work place are maintained. Efforts are made to engage the employees in programs designed to fulfill our ecological and social responsibility. Various work-place initiatives are conducted to achieve this: War on Waste - an initiative that reduced the impact of manufacturing operations on the environment. At Titan Industries, Corporate Social Responsibility is more than philanthropy - it is an internal process that reflects the soul of the company. 23
Titan Industries – An Organizational Analysis
Successful CSR programmes
Titan Industries has embarked on and completed several community development programmes as part of its CSR initiative. A few among these successful projects are: Titan Scholarship - for students in Dharmapuri and Krishnagiri districts (Tamil Nadu), based on academic performance and socio-economic background for over 550 students form the economically backward section Titan Township – a sustainable community in Hosur (Tamilnadu), that provides housing to 1300 residents collaborating with NGOs MCA and Ashraya Employment - to over 120 physically challenged people Karigar Park – a social entrepreneurship project with six parks, benefiting over 400 artisans Titan School and Titan Foundation for Education - a primary school with over 550 students, expanding to classes IX and X with a provision to accommodate 160 more students Meadow Project (Myrada) – a collaborated effort with self-help groups of rural women to provide gainful employment to more than 400 rural women in and around Hosur (Tamil Nadu)
Recognition of CSR
As an appreciation of its significant contribution to the community welfare, Titan Industries has received the „President of India?s Award' for employing the disabled. Titan Industries, a signatory to the Global Compact, is a recipient of the prestigious „Helen Keller Award? and the „Mother Teresa Award?. The company has also been ranked as one of the top four and top ten companies in the „Karmayog CSR Rating of India?s Top 500 Companies? in December 2007 and 2008 respectively. Other noteworthy awards for CSR include: • FICCI-SEDF Award for Social Responsibility • The Rotary Club of Bangalore Award for Corporate Citizenship • The PHDCII Award for Good Corporate Citizenship
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Titan Industries – An Organizational Analysis
Awards & Accolades
Over the years, Titan Industries has received several prestigious awards and distinctions. Some of the recent and most noteworthy recognitions are:
Titan Industries
Named „No.1 Brand? in the „Consumer Durables? category in the „Brand Equity Survey 2008?, by The Economic Times, a leading Indian financial daily Adjudged one of the „World?s 50 Local Dynamos? by Boston Consulting Group, India, 2008 Won the „No. 2 Retailer in the Country Award? by Retail Asia Publishing, Singapore Adjudged 'The Retailer of the Year?
Titan Industries Design team
Won the „Young Design Entrepreneur of the Year Award? by National Institute of Design and Business World
Titan Industries Time Product Division
Received „The Sona Kaizen Champions Trophy? Won „The Golden Peacock Award for Environment Management? in 2007 by Institute of Director (IOD) in association with World Environment foundations(WEF), New Delhi Won „The Amity Corporate Excellence Award? in 2009 by IIPM & Sunday Times
Titan
Featured at number 4 in the „Top 100 Brands? in the Annual Survey conducted by The Economic Times, 2008 Acknowledged as the 'Fashion Retailer of the Year' by Image Retail Forum Won „The Brand Leadership Award? at the India Brand Summit Adjudged 'Most Admired Brand' in „Time Wear? category for the 8th consecutive year at the Images Retail in 2009 Won „Innovation for India Award 2008?, for the design and development of its ultra-slim movement watch, Titan Edge by Marico Innovation Foundation 25
Titan Industries – An Organizational Analysis
Sonata
Featured at number 96 in the „Top 100 Brands? in the Annual Survey conducted by The Economic Times, 2008
Tanishq
Acknowledged as the 'Fashion Retailer of the Year' by Image Retail Forum Received the „Solitaire of India Award? by The Gem & Jewellery Export Promotion Council for „transforming the jewellery industry? at the 25th Anniversary of India International Jewellery Show at Mumbai, 2008 Adjudged 'Most Admired Brand' in „Jewellery? category for the 6th consecutive year at the Images Retail
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Titan Industries – An Organizational Analysis
Conclusion
Titan rewrote the history of the watch industry. HMT, a household name in the 1970s was not able to combat Titan and in the bargain succumbed to the aggressive marketing by Titan. Titan did not restrict itself to the watch category and moved to the fashion space and cleverly entered the jewelry market and the eye care market. The mantra was very clear for the brand: to give world- class products in the fashion space. In this vision, the brand has been supported with some sound marketing and advertising strategies and excellent customer service. Many feel that this is just a beginning and a lot more would be seen from this watch giant. What is more credible is that all this has been accomplished in a span of two decades. But that?s not all. The road ahead for Titan should revolve around two major points. Firstly, the best way to improve your position is by constantly attacking it. In other words, Titan should strengthen its position by introducing new products that make obsolete its existing ones. It is better to take business away from yourself than have someone else do it for you. This puts the competition in a tough spot, as a moving target is harder to hit than a stationary one. Titan should continuously innovate and introduce new models. The importance of R&D (Research and Development) has been realized only recently. In recent times it has been R & D that has provided the edge to both products and brands. However this strategy can be applied mainly to the lower range or digital range of Titan?s watches, as the concept of „class? remains constant over a period of time. Attacking yourself may sacrifice short-term profits, but it has one fundamental benefit. It protects market share, the ultimately weapon in any marketing battle. Any company that hesitates to attack itself usually loses market share and ultimately market leadership.
Secondly, most companies have only one chance to win, but leaders like Titan have two. If Titan misses an opportunity to attack itself, it can often recover simply by copying the competitive move. However, the leader ought to move rapidly before the attacker gets established. There is no room for oversized egos or complacency in marketing. Blocking works well for a leader as it takes time for an attacker to make an impression in the mind of the target customer.
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Titan Industries – An Organizational Analysis
Learning’s from the Project
These are the following learning points from the project – The manner in which organizational structure and design of Titan contributed to the huge success of the organisation Use of innovation and technology Use of core competency to gain competitive advantage – Bringing in to the market a large range of products across varied price ranges The way in which Titan has undergone an Organizational change across different time periods in order to improve efficiency and tackle competition Importance of having a firm mission along with specific long term and short term goals that guide managers and employers The role of effective governance mechanism to align the interests of principal and agent so that both parties have the incentive to work together to maximize organizational effectiveness Effective methods of branding and segmentation Contingency plans and approaches that Titan has used to face uncertainty The manner in which norms and values of the organisation contribute to the growth of the organisation Use of business level strategies whereby an organisation produces products aimed at particular market segments
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Titan Industries – An Organizational Analysis
References
www.titanwold.com www.tata.com/titan www.indianfoline.com www.thehindu.com www.economictimes.com www.angeltrade.com Tata Review www.knowledge.wharton.upenn.edu/india
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doc_233912551.docx
profile & vision, mission of Titan, corporate governance and philosphy of Titan, organization structure of Titan, conducive factors of growth identified for Titan, factors that led to decline of Onida, SWOT analysis of Titan, strategy of Titan
2009
Titan Industries Limited – An Organizational Analysis
Group E2
Rohit S Vinay Malani Sashidhar M S Shruti Aggarwal Mohammad S Ayyubi
Titan Industries – An Organizational Analysis
Contents
Introduction .................................................................................................................................................. 4 Background ............................................................................................................................................... 4 Vision and Mission .................................................................................................................................... 5 Organizational Structure ............................................................................................................................... 6 Business Divisions...................................................................................................................................... 6 Senior Management.................................................................................................................................. 6 Conducive Factors ......................................................................................................................................... 8 The Growth of the Organisation ................................................................................................................. 10 Identified factors that led to the Expansion and Growth ........................................................................... 12 Unique Product Strategy ......................................................................................................................... 12 Innovative Product Distribution .............................................................................................................. 12 Thoughtful Product Marketing ............................................................................................................... 12 Campaign Strategy.................................................................................................................................. 13 Further expansion of the organization ....................................................................................................... 14 Branding .................................................................................................................................................. 14 Sales and Marketing ............................................................................................................................... 14 Segmentation .......................................................................................................................................... 15 SWOT Analysis............................................................................................................................................. 18 Strength................................................................................................................................................... 18 Weaknesses............................................................................................................................................. 18 Opportunities .......................................................................................................................................... 18 Threats .................................................................................................................................................... 19 Organizational Strategy .............................................................................................................................. 20 Strategy Evaluation ............................................................................................................................... 20 Positioning Strategies ............................................................................................................................ 20 Corporate Social Responsibility (CSR) ......................................................................................................... 23 Corporate responsibility begins at home ................................................................................................ 23 Successful CSR programmes.................................................................................................................... 24 Recognition of CSR .................................................................................................................................. 24 Awards & Accolades.................................................................................................................................... 25 Conclusion ................................................................................................................................................... 27 2
Titan Industries – An Organizational Analysis Learning’s from the Project ........................................................................................................................ 28 References .................................................................................................................................................. 29
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Titan Industries – An Organizational Analysis
Introduction
Titan Industries is the world?s fifth largest and India's leading manufacturer of watches. The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. The umbrella brand Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling. Today, the Titan portfolio has over 60% of the domestic market share in the organized watch market. The company has 247 exclusive showrooms christened „World of Titan?, making it amongst the largest chains in its category backed by 700 after?sales?service centers. The company has a world?class design studio that constantly invents new trends in wrist watches.
Background
Titan Industries was established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO). The company set up its corporate office in Bangalore (Karnataka) and its watch manufacturing facility in Hosur (Tamil Nadu). In over two decades the company has built an impressive watch business to become India?s largest manufacturer and the world's fifth largest manufacturer of watches. This has mainly been achieved by developing a formidable distribution network. The company has amongst the world's largest retail chain of exclusive retail showrooms for watches called „The World of Titan? spread over 100 towns. It also has multi-brand outlets named „Time Zone?, service centers and dealer outlets. Globally Titan has a presence in over thirty countries through its marketing subsidiaries. Titan has also entered the jewellery business in 1995. Jewellery is sold in India through an exclusive company controlled retail chain, comprising of owned and franchised outlets. It is also exported to Singapore and the Middle East. The company has watch assembly plants at Dehradun (Uttar Pradesh) and Baddi (Himachal Pradesh) and a plant manufacturing electronic circuit boards in Goa. The majority stake in the company is held by the promoters, with TIDCO having 28 per cent of the shares and Tata Group companies owning 25 percent of the shares. Public holding in the company is around 28 per cent. The rest of the stake is held by foreign institutions, non-resident Indians, mutual funds and other institutions.
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Titan Industries – An Organizational Analysis
Vision and Mission
Vision To be a world-class, innovative and progressive organisation and to build India?s most desirable brands Mission To create wealth for all our stakeholders by building highly successful businesses based on a customercentric approach, and to contribute to the community Values and Standards Total customer orientation - Customers take precedence over all else, always Employee appreciation - We value and respect Titanians and endeavour to fulfill their needs and aspirations Performance culture and teamwork - At Titan Industries, high performance is but a way of life and is nurtured by teamwork Creativity and Innovation - Driven by innovation and creativity, we focus on smarter approaches and newer technologies Passion for excellence - In all our pursuits, we ceaselessly strive for excellence Corporate Citizenship - We ensure that a part of our resources is invested in environment and community betterment.
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Titan Industries – An Organizational Analysis
Organizational Structure
Business Divisions
Business Divisions Time Products Titan Edge Jewellery Eyewear Precision Engineering Injection moulds Progressive tools Jigs and fixtures
Tanishq
Titan Eye+
Titan Raga
Goldplus
Nebula
Sonata
Xylys
Fastrack
Senior Management
Bhaskar Bhat K F Kapadia Harish Bhat C K Venkataraman S Ravi Kant M S Shantharam B G Dwarakanath Kailasanathan N
Managing Director Chief Financial Officer COO - Time Products Division COO - Jewellery Division COO - Eyewear Division Chief Manufacturing & Technology Officer and Senior Vice President COO - Precision Engineering Division Chief Information Officer and Senior Vice President
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Titan Industries – An Organizational Analysis H G Raghunath S Ramadoss C Srinivasan Ronnie Talati L R Natarajan V Govindraj Sandeep Kulhalli Ajoy Chawla Usha Iyengar Vice President – ISCM, Time Products Division Vice President, HR & Administration Vice President - Sonata, Institutional Sales & Customer Service Vice President and Business Head – Fastrack & New Brands Vice President - ISCM, Jewellery, Goldplus Vice President - Integrated Retail Services Vice President - Retail & Marketing, Tanishq Vice President and Global Business Head - Titan & Retail General Manager and Company Secretary
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Titan Industries – An Organizational Analysis
Conducive Factors
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 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 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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Titan Industries – An Organizational Analysis 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.
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Titan Industries – An Organizational Analysis
The Growth of the Organisation
Over the last two decades, Titan has had a phenomenal growth and this can be traced across the following timeline – In 1989, it was Aqura, the trendy range for the youth, colorful, smart and affordable plastic watches for the youth: The other side of Titan for the other side of you. In 1992, it w as Raga, the ethnic range, with striking symbolism from ethnic India, for the sophisticated India woman who appreciated such things.
Company Profitability
160 140 120 100 80 60 40 20 0 2006-07 2007-08 Year 2008-09
Rs. in Crores
Dom. Watches
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 colorful range for kids. In 1997, it was Sonata, the affordable, good quality range for the budget-conscious. In 1998, it was Fastrack, the cool and trendy range for the young and young-at-heart.
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Titan Industries – An Organizational Analysis In 1999, it was Nebula, the solid gold and diamond-studded range of luxury watches for those affluent people to whom gold is a precious acquisition. 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.
Market Capitalisation
6000 5000 Rs. in Crores 4000 3000 2000 1000 0 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 1-Jun-09 Year
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Titan Industries – An Organizational Analysis
Identified factors that led to the Expansion and Growth
Unique Product Strategy
The consumer was offered a wide choice, both in terms of style and design. This was backed by good pricing to target different customer segments. To begin with, Titan offered four brands: Classique, Spectra, Exacta and Fastrack. Since then, the company has been introducing new designs of watches to entice Indian consumers. This was to ensure that the consumer never gets bored of visiting a Titan shop. This constant introduction of new designs gave the brand a good image in the consumers mind.
Innovative Product Distribution
Titan introduced some innovation even in its distribution strategy. Besides traditional outlets, Titan watches were showcased in places like fashion boutiques, etc. Another important step that Titan took was to open Titan shops and franchisees that changed the way watches were retailed. The locations of these outlets were chosen after great planning. Utmost care was taken to design the outlets with good ambience keeping in mind the values attached to the brand. These showrooms also offered strong after-sales service. Service was another factor in which Titan took keen interest. Since the concept of quartz watches was new in India, there was a fear among the people regarding the fragility of the watches. Customers were also worried about how to get the watches repaired since this technology was new in India. This was cleverly addressed by Titan by offering sales services in the showrooms where the customers could get their watches serviced with genuine parts and with complete assurance.
Thoughtful Product Marketing
Over the years, Titan has launched a wide range of watches with world class designs. The company?s focus was to move people from buying imported watches to Titan. This was done by showcasing trendy and good looking watches. The pricing and design also perfectly matched to address the tastes of different customers. Raga was another extension that was introduced by Titan to attract women buyers. Nebula, Titanium, Fastrack (with a sporty look design and later on with fashion-oriented sun glasses) Sonata (for the masses) are some of the products offered by Titan. Its mantra was to keep pace with the changing taste and attitudes of the new modern Indian audience. All this innovation catapulted the brand to newer heights and Titan has remained in the consideration set of the consumer every time he/she thought of buying a watch. What?s more, the brand also entered the global market with great designs to meet the taste of the international customer.
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Titan Industries – An Organizational Analysis
Watch-market map
Campaign Strategy
The task was to entice and create aspiration amongst the watch buyers to look at Titan. Here the company capitalized by showcasing the products as the hero in all its communications. This really paid- off as the customer could get a good feel and appearance of the product when it appeared in various media vehicles. The initial launch campaigns highlighted the products well. Even as time passed by and it tried to bring in some human element to break the monotony it did not sacrifice the presence of the products. The watches were well showcased and there was a good balance in each of its communications. Since color reproduction was not of good quality in the early stages, care was taken to hand pick the publication to get reproduction.
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Titan Industries – An Organizational Analysis
Further expansion of the organization
Primary factors that led to the growth and expansion of Titan industries –
Branding
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. The Titan brand has three attributes - leadership, innovation and pride in the consumer's mind. Research tells us that even to an up-market SEC A customer, Titan means style and elegance. Where we fell short was in these "softer" attributes. Primarily because innovation was less frequent and less visible from Titan in the last few years. However, we are back on the track with innovation, which is the essence of Titan, apart from leadership and pride. - Bhaskar Bhat, Managing Director, Titan Industries
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.
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Titan Industries – An Organizational Analysis
Segmentation
Titan had traditionally focused on the premium segment. In the late 1990s, Titan segmented the market into different groups based on lifestyle, socio-economic groups and personalities.
Segmentation Map – Titan Watches
Over the years, TIL launched several collections/ranges under the mother brand Titan Sonata In 1998, to exploit the huge potential in the budget segment, TIL launched Titan Sonata. Priced between Rs.300 and Rs.1,050, Sonata watches were available in plastic, leather, stainless steel and gold platedstraps. Dash! In July 1999, TIL launched Dash!, an exclusive children?s watch targeting those in the age group 6-14. The watch was priced in the range of Rs.250-395 and came in plastic straps and colorful dials. With this launch, TIL made a series attempt to change its? „elegant? and „old? image.
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Titan Industries – An Organizational Analysis
TIL tried to tap the children?s watch market, which was an unpenetrated segment, and believed to be as large as Rs.35 million. The company aimed to achieve volumes of around one million units from Dash! within a period of 2-3 years of the launch. Fastrack Fastrack was launched in the late 1990s as a product range within the Titan umbrella. These watches were positioned as ?cool watches from Titan? and as the youth face of the Titan brand. The communication of the brand also reflected the heavy fashion quotient of the watches. In the early 2000s, the company started developing Fastrack as a distinct sub-brand. A commercial featuring ace Formula-1 driver Narain Karthikeyan, with the tagline - „Are you on it?? - was launched in 2002.
Steel In September 2001, TIL launched Titan Steel watches in Kolkata. As the name suggests, the watches were created out of steel. The Titan Steel collection had a range of bracelets and leather strap watches for both men and women and were priced between Rs.1,250 and Rs.6,000.
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Titan Industries – An Organizational Analysis
Edge In May 2002, TIL launched the Titan Edge, the slimmest commercially available watch "in the universe". Produced indigenously after four years of intensive research and development, the Titan Edge had a thickness of just 3.5 mm and a wafer thin movement of 1.15 mm.
Flip (new product development) TIL launched Titan Flip in July 2004 at Mumbai's Taj Mahal Hotel. And again a celebrity -- film star Akshaye Khanna -- was invited for the launch. The watch was unique in the sense that it was India's first dual face watch with dual functionality and styling and had two movements. One could use two watches with the mere 'flip' of the dial. The dual-faced watch allowed customers to switch between international time zones and alternative lifestyles - formal/casual, minimal/sporty etc.
Product expansion
In June 2004, the company diversified into other lifestyle products like eyewear by extending its watch sub-brand Fastrack and perfumery with a new brand Evolve, launched in early 2005. The main manufacturing plants of the company were situated at Hosur in Tamil Nadu.
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Titan Industries – An Organizational Analysis
SWOT Analysis
Strength
1. Style - Titan first introduced the „style? concept in India and projected watches as fashion accessories. Style is an evident factor amongst the youth. And there is no dearth in demand for stylish wristwatches 2. Models -Titan offers the best and the largest range of watches for customers to choose from with an affordable price tag 3. Exclusive products - Titan has exclusive products both within the country and internationally. Its EDGE model is the slimmest watch in the world 4. Contribution of owned brands and retail. The profit is accounted by being in the booming retail space 5. Provides guarantee/warranty for all watches/accessories under its umbrella
Weaknesses
1. Pricing - The average price of Titan watches in the mid-price segment is relatively higher than other competitors 2. Market share - As the average price of Titan wristwatches are far higher than other competitors, Titan has a relatively less market share. The market is influenced more by people in the middle class of society and Titan proves costly for this segment 3. Globalization – Though the company had been expanding globally, it has not posed an aggressive globalization strategy. Much of the company?s efforts are India centric
Opportunities
1. Seasonality - During festive times, like Diwali, Titan capitalizes on market demand by promoting its Nebula and Bandhan brands because there is huge demand for these products. The „Fastrack? brand is promoted in the months of June-August when schools and colleges re-open.
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Titan Industries – An Organizational Analysis 2. Gifting concept - Titan started as a brand which was associated with gifting. The „gift? concept sells well to people who have come to associate Titan with emotions and relationships. 3. Exchanging offer - Titan stores promote exchange offers of any old watch, of any make, in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new, stylish and technologically advanced watch from Titan.
Threats
1. Competitors - Many foreign brands are entering India with their branded watches. And the removal of quantitative restrictions on import watches also leads to a formidable threat to Titan. 2. Premium segment - In the premium segment, Titan faces competitive threats from reputed international brands such as Espirit, Swatch and Citizen. 3. Cell Phones – Today?s cell phones come with many features which deem watches more as accessories than necessities. Titan needs to reinvent itself because customers see no necessity in buying watches when they could as well look into their phones to check the time.
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Titan Industries – An Organizational Analysis
Organizational Strategy
Strategy Evaluation
Titan banks on Cutting edge technology that has helped Titan create value-for-money price and the result is extraordinary marketing presence in about 40 countries, with a network of some 3,500 retailers abroad and high volume of domestic presence. Till date Titan is able to single-mindedly convey a point of differentiation that strikes the consumer then whether it is in terms of price (Sonata) or extraordinary beauty (Slim “Edge” watches). But the point is that whether the strategies which Titan is following will take Titan to a position of global uniqueness: a brand which brings information and ideas together from around the world, to fulfill human needs in novel ways and still go on for profitable growth. But maybe what's required is a campaign with executional variety a TV campaign that uses attention-getting devices to drive home the message. This would require greater creative risk. But then, if the stakes are reaching gigantic proportions it's time to get one's eyes in.
The Five-year story of Titan
Positioning Strategies
Since its introduction, Titan has been positioned as a premium brand, providing high quality products. With its numerous sub-brands catering to different segments, the challenge that Titan faces is to create a strong brand image. It follows different positioning strategies and these strategies can also be analyzed in the present context of Sonata, Fastrack, dash and Raga, Classique and Regalia as
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Titan Industries – An Organizational Analysis Attribute positioning When the company launched its products, it was the first to bring quartz watches to the Indian market. The company successfully leveraged this to penetrate the market and gain a market share. Raga Classique and Regalia come under this strategy. Classique has been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion of function and sophistication. Power dressing now has a new weapon! Regalia as 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 allgold and bicolor look, the 'Regalia' range represents the essence of dress-wear. Raga has been differentiated and positioned as Exclusive watches for women. The Raga and Silver Raga collection is elegant, delicate and feminine with each piece being truly unique. An exciting 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, the Silver Raga makes a perfect accessory that completes a woman's wardrobe.
User positioning
Titan caters to several user groups- children (the Dash), sportspersons and adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being contemporary, sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant and „cool? (the ad line says “Cool watches by Titan”)
Benefit positioning The Fastrack Digital range offers the customer a functional watch that is also attractive. The digital watch has a “techno-geek” image, but Titan seeks to differentiate its offering on the basis of superior style and attractiveness.
Competitor positioning With the entry of several foreign watchmakers into the market, Titan had to counter the threat. Most of the entrants are catering to the upper end of the market- Omega, Tissot, Cartier etc. Titan already had the Tanishq brand in this segment. However, it has tried to reposition this brand by increasing the price range to encourage more customers.
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Titan Industries – An Organizational Analysis Quality or price positioning In the overseas market, especially in Europe where it is competing with Swiss and Japanese watches, it is positioning itself as „value- for- money?: reasonably priced (less than Swiss watches and higher than Japanese), attractively styled and of good quality. In India Market Sonata is a perfect example of Price positioning, titan came up with this segment when it was facing heavy competition from lower end segment.
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Titan Industries – An Organizational Analysis
Corporate Social Responsibility (CSR)
Titan Industries has a clearly defined policy for Corporate Social Responsibility (CSR). As part of the company?s CSR initiative, the manufacturing units of Watch and Jewellery Divisions at Hosur have acquired the certifications „ISO 9001: 2000 Quality Management System Standards? and „ISO 14001:2000 Environment System Standard? emphasising the efforts to be an ecologically responsible organisation. The company?s diverse CSR initiatives include: 1. Children?s education 2. Enabling the disabled 3. Artisan parks 4. Women?s empowerment 5. Environment management programmes 6. Miscellaneous community initiatives Titan Industries? community initiatives are committed to build partnership for social development, focus on sustainable initiatives and improve the quality of life of the communities where the initiatives operate. With a dedicated force of 250 enthusiastic employee volunteers, the company has formed a Community Development Forum. This forum works towards mobilizing society and volunteers to make the community initiatives a success. The company?s miscellaneous community development activities include orphanage support, HIV/Aids awareness, village adoption, vision improvement program, a program to provide work to rural unemployed women, community rehabilitation, tsunami relief work, eradication of child labor and environment protection, to name a few. The company has made a positive change in the lives of over 2000 people.
Corporate responsibility begins at home
Titan Industries believes that corporate responsibility begins with the employees. The company ensures that the harmony, peace and inclusive approach at work place are maintained. Efforts are made to engage the employees in programs designed to fulfill our ecological and social responsibility. Various work-place initiatives are conducted to achieve this: War on Waste - an initiative that reduced the impact of manufacturing operations on the environment. At Titan Industries, Corporate Social Responsibility is more than philanthropy - it is an internal process that reflects the soul of the company. 23
Titan Industries – An Organizational Analysis
Successful CSR programmes
Titan Industries has embarked on and completed several community development programmes as part of its CSR initiative. A few among these successful projects are: Titan Scholarship - for students in Dharmapuri and Krishnagiri districts (Tamil Nadu), based on academic performance and socio-economic background for over 550 students form the economically backward section Titan Township – a sustainable community in Hosur (Tamilnadu), that provides housing to 1300 residents collaborating with NGOs MCA and Ashraya Employment - to over 120 physically challenged people Karigar Park – a social entrepreneurship project with six parks, benefiting over 400 artisans Titan School and Titan Foundation for Education - a primary school with over 550 students, expanding to classes IX and X with a provision to accommodate 160 more students Meadow Project (Myrada) – a collaborated effort with self-help groups of rural women to provide gainful employment to more than 400 rural women in and around Hosur (Tamil Nadu)
Recognition of CSR
As an appreciation of its significant contribution to the community welfare, Titan Industries has received the „President of India?s Award' for employing the disabled. Titan Industries, a signatory to the Global Compact, is a recipient of the prestigious „Helen Keller Award? and the „Mother Teresa Award?. The company has also been ranked as one of the top four and top ten companies in the „Karmayog CSR Rating of India?s Top 500 Companies? in December 2007 and 2008 respectively. Other noteworthy awards for CSR include: • FICCI-SEDF Award for Social Responsibility • The Rotary Club of Bangalore Award for Corporate Citizenship • The PHDCII Award for Good Corporate Citizenship
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Titan Industries – An Organizational Analysis
Awards & Accolades
Over the years, Titan Industries has received several prestigious awards and distinctions. Some of the recent and most noteworthy recognitions are:
Titan Industries
Named „No.1 Brand? in the „Consumer Durables? category in the „Brand Equity Survey 2008?, by The Economic Times, a leading Indian financial daily Adjudged one of the „World?s 50 Local Dynamos? by Boston Consulting Group, India, 2008 Won the „No. 2 Retailer in the Country Award? by Retail Asia Publishing, Singapore Adjudged 'The Retailer of the Year?
Titan Industries Design team
Won the „Young Design Entrepreneur of the Year Award? by National Institute of Design and Business World
Titan Industries Time Product Division
Received „The Sona Kaizen Champions Trophy? Won „The Golden Peacock Award for Environment Management? in 2007 by Institute of Director (IOD) in association with World Environment foundations(WEF), New Delhi Won „The Amity Corporate Excellence Award? in 2009 by IIPM & Sunday Times
Titan
Featured at number 4 in the „Top 100 Brands? in the Annual Survey conducted by The Economic Times, 2008 Acknowledged as the 'Fashion Retailer of the Year' by Image Retail Forum Won „The Brand Leadership Award? at the India Brand Summit Adjudged 'Most Admired Brand' in „Time Wear? category for the 8th consecutive year at the Images Retail in 2009 Won „Innovation for India Award 2008?, for the design and development of its ultra-slim movement watch, Titan Edge by Marico Innovation Foundation 25
Titan Industries – An Organizational Analysis
Sonata
Featured at number 96 in the „Top 100 Brands? in the Annual Survey conducted by The Economic Times, 2008
Tanishq
Acknowledged as the 'Fashion Retailer of the Year' by Image Retail Forum Received the „Solitaire of India Award? by The Gem & Jewellery Export Promotion Council for „transforming the jewellery industry? at the 25th Anniversary of India International Jewellery Show at Mumbai, 2008 Adjudged 'Most Admired Brand' in „Jewellery? category for the 6th consecutive year at the Images Retail
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Titan Industries – An Organizational Analysis
Conclusion
Titan rewrote the history of the watch industry. HMT, a household name in the 1970s was not able to combat Titan and in the bargain succumbed to the aggressive marketing by Titan. Titan did not restrict itself to the watch category and moved to the fashion space and cleverly entered the jewelry market and the eye care market. The mantra was very clear for the brand: to give world- class products in the fashion space. In this vision, the brand has been supported with some sound marketing and advertising strategies and excellent customer service. Many feel that this is just a beginning and a lot more would be seen from this watch giant. What is more credible is that all this has been accomplished in a span of two decades. But that?s not all. The road ahead for Titan should revolve around two major points. Firstly, the best way to improve your position is by constantly attacking it. In other words, Titan should strengthen its position by introducing new products that make obsolete its existing ones. It is better to take business away from yourself than have someone else do it for you. This puts the competition in a tough spot, as a moving target is harder to hit than a stationary one. Titan should continuously innovate and introduce new models. The importance of R&D (Research and Development) has been realized only recently. In recent times it has been R & D that has provided the edge to both products and brands. However this strategy can be applied mainly to the lower range or digital range of Titan?s watches, as the concept of „class? remains constant over a period of time. Attacking yourself may sacrifice short-term profits, but it has one fundamental benefit. It protects market share, the ultimately weapon in any marketing battle. Any company that hesitates to attack itself usually loses market share and ultimately market leadership.
Secondly, most companies have only one chance to win, but leaders like Titan have two. If Titan misses an opportunity to attack itself, it can often recover simply by copying the competitive move. However, the leader ought to move rapidly before the attacker gets established. There is no room for oversized egos or complacency in marketing. Blocking works well for a leader as it takes time for an attacker to make an impression in the mind of the target customer.
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Titan Industries – An Organizational Analysis
Learning’s from the Project
These are the following learning points from the project – The manner in which organizational structure and design of Titan contributed to the huge success of the organisation Use of innovation and technology Use of core competency to gain competitive advantage – Bringing in to the market a large range of products across varied price ranges The way in which Titan has undergone an Organizational change across different time periods in order to improve efficiency and tackle competition Importance of having a firm mission along with specific long term and short term goals that guide managers and employers The role of effective governance mechanism to align the interests of principal and agent so that both parties have the incentive to work together to maximize organizational effectiveness Effective methods of branding and segmentation Contingency plans and approaches that Titan has used to face uncertainty The manner in which norms and values of the organisation contribute to the growth of the organisation Use of business level strategies whereby an organisation produces products aimed at particular market segments
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Titan Industries – An Organizational Analysis
References
www.titanwold.com www.tata.com/titan www.indianfoline.com www.thehindu.com www.economictimes.com www.angeltrade.com Tata Review www.knowledge.wharton.upenn.edu/india
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