Indian Watch Market

• India – Manufacturing capability of making all components of watch

• Import duty lowered to 35 % - Competition • Consumption - 25 watch per thousand• Market Size

– 28 million units every year growing at 30 % per annum

– Rs 2800 crore – organized segment – 40 %

Indian Watch Market

• 1957 - Prime Minister Jawaharlal Nehru’s visit to Japan

• 1961 – Hindustan Machine Tools in collaboration with Citizen

• 1984 – Titan – Collaboration between Tata and Tamil Nadu Industrial Development Corporation (TIDCO).

Indian Watch MarketProductSegment (INR)

Average Price (INR)

Market Size(000 units)

Market Size(INR millions)

Super premium >5001 7,500 280 2,100

Premium 2,500 -5,000 3,500 2330 8,155

Medium 1,251-2,500 1,750 4940 8,645

Economy 501- 2,500 750 8310 6,223

Low 251 - 500 400 4290 1,716

Extremely low < 250 150 7850 1,178

Total 28000 28,026

Indian Watch Market

Value Wise share of the segments

super premium7%

premium29%

medium30%

economy22%

low6%

extremely low6%

super premium

premium

medium

economy

low

extremely low

Indian Watch Industry

Porter’s 5 force analysis• Threat of new entrants -

Medium to high• Bargaining power of

buyer – Medium• Bargaining power of

suppliers – Medium• Threat of substitute

product - Medium• Intensity of competitive

rivalry - Medium to high

Porter Five Forces for Indian Watch Industry

0

50

100Threat of new entrant

Bargaining power of Buyer

Bargainig power of SuppliersThreat of Substitute

competitive rivakry

Players in the market

• Titan• HMT• Citizen• Maxima• Timex• Casio

Brand Inventory of Players

Titan• EDGE• FASTRACK• NEBULA• RAGA• STEEL• REGALIA• BANDHAN• FLIP

HMT • Sangam • Lalit • Swarna • Shreyas • Chandan • Pace • Braille• Sona• Kanchan• Janta• Tenmax

Timex • Automatics• Perpetual calendar• Chronographs• Fashion• Outdoor• Sports, Fitness and Advanced• Empera• Formals• SLX series• E-Tide-Temp_compass• Retrogrades

Brand PerceptionPRICE PERCEPTION

TITAN (sonata)

maxima

HMTTimex

TITAN (fastrack)

TANISHQ

TITAN(Raga)

ROLEX

CITIZEN

CASIO

RADO

PERCEPTION

BR

AN

DS

TITAN (sonata) maxima HMT Timex TITAN (fastrack) TANISHQ TITAN(Raga) ROLEX CITIZEN CASIO RADO

Titan Strategy

• Titan - Focus on mid and upper-mid market segment

• Sonata – Growing Mass Market• Separate Sales, marketing, supply chain and

servicing facilities for two brands

Titan Strategy – Segmentation and Targeting

• High income / Elite consumers - Price insensitive – Buys watch as an fashion accessory

• Utility and fashion conscious mid Segment – can afford a costly watch but compares with all products in market

• Mass Market – use of watch merely as time keeping device – hence price conscious

Titan’s Offerings

• High Income/ Elite Customer – Aurum and Royale in the gold/ jewellery watch

range – Xylys, Nebula– Stylish dress watches in all gold and precious

metals– Price range – 20000 to 1 lakh

Titan’s Offerings

• Utility and fashion conscious mid Segment – Exacta range in stainless steel– RAGA range for women– Price range - 500 to 2000– Good quality watches with reasonable fashion– Ability to withstand the rigors of daily life

Titan’s Offerings

• Mass Market – also includes college and high school students– Earlier had Timex for this segment– Later on Sonata– Dash! For children– Price range – 200 to 500

Watch Market Map

TITAN, RAGA CitizenTimex

Rs 500 1000 2000 4000 500020,000 +

Formal / Classic

Fashion/Sporty

Sonata,

Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger

Raymond WeilTissot

Omega,Rado, Longines

Tag Heuer Hugo BossC Dior

Price

Fastrack

XYLYS

10000

Nebula

HMT,Maxima

Marketing mix priorities and synchronization for Titan

• Maximizing profit through brand inventory• Approach towards marketing mix is

methodical• Unorganized quartz market much larger than

organized quartz market• Carefully orchestrated marketing mix

Titan Marketing Strategy

• During the 80s - only in the quartz watch market (product decision)

• Titan is as good as foreign makes• Developed the emotional appeal by projecting

the popular Titan jingle• Transformed the `watch buying' experience

from bazaar shops to exclusive outlets which offered ambience and comfort

Titan Marketing StrategyOwning watches – no more tradition needs – it’s

a lifestyle need

Shift towards LIFESTYLE needs

TRADITIONAL NEEDSBasic NecessitySimple Product / Service OrientationLow incremental consumption YoYFocus on internal Needs

LIFESTYLE NEEDSLeisure needsEnhanced product / Service OrientationHigher incremental consumption YoYFocus on external Needs

Titan Marketing Strategy

• Several variants were created at different price points for various segments

• Effective application of sub-brands• Effective retail network

– Exclusive Showrooms– Multi brand outlets

`Top of mind' recall of most Indian consumers

Titan Brand Ambassador & Advertising strategy

• Brand Ambassador – Aamir Khan

• Perfect Fit – Both share the same values

• Titan - a new concept to promote the latest trends in the industry with focus on important accessory of style and fashion

Strategy in Exchange offer

• Phenomenon:• Two lakhs watches were exchanged between 20 days

• Reason:• Insight from repeated brand track studies is that there is a lot

of sentimental attachment.

• Concept:• To make it clear that you have an old watch, something that you always

had and you never noticed it.

Sonata: mass market

T IT A NS O N A T A

fe e lin g o f s e lfa s s u ra n c e

c o m fo rta b lea n d c h e a p

d u ra b le ,ro b u s t lo n g

la s tin g

g o ld e n ,m e ta llic

h a rd w o rk in g ,tra d itio n a l a n d

s tro n g

a p p ro p ria te fo ro u td o o r w o rk a n d

c a s u a l s o c ia ls itu a tio n s

c la s s icu n iv e rs a l

Fastrack : Youth brand• "Cool watches from Titan“

• By 2001-02 sales were stagnating.

• Repositioned the brand Fastrack was slotted as a mix of formal and casual.

• "Fastrack's biggest competition is the mindset.

• Brand extension helped.

RAGA: Womens’ watch• India’s only watch brand which is designed and crafted

exclusively for women.

• A brand that a woman trusts and confides in.

• Titan Raga watches are like today’s woman — beautiful, sensuous and feminine.

• Baseline ‘Ek khoobsoorat rishta’.

• Rani Mukherji has been signed up as the brand ambassador.

Flip- first dual face watch• Sophistication at a higher level • a distinctive combination of style and dual functionality,

appeal to the evolving tastes and preferences of discerning global customer.

• positioned in such a way that it is a perfect accessory; one watch that anyone can wear on a shoot, a formal evening or to a lounge bar.

• Titan had roped celebrated actor Akshay Khanna

Xylys – niche market• launched to a direct confrontation with Rado or Tissot

• Exuding style, attitude and power, a statement for those who stand apart from the crowd.

• • targeted at new generation achievers

• main challenge with this brand is that to create a signature style for the collection.

• Actor Rahul Bose, international supermodel Saira Mohan and tennis star Carlos Moya are the three brand ambassadors of Xylys.

Brand Extension

• Capitalizing on core competency (precision technology) and brand image of Titan.

• Jewellery: TANISHQ

• Eye gear: FASTTRACK

Threat

• Esprit, Swatch and Citizen, hitherto restricted to the premium end, have entered the mid-priced segment, bracketed between Rs 1,200 and Rs 3,500

• Kids seemed to be fascinated with mobile phones rather than watches, and incidentally, these phones showed the time too!

Rural Market

• Sonata being made the brand for masses with competitive price and attractive design.

• Missing on having a watch in 150-199 rupees price segment. Planning to do so.

• Present in all towns with 10,000 population.• Brand building at melas, haats and through mobile

vans.• Separating sonata from Titan.

Way Forward….

• Repositioning in between the fashion brands and the functional ones in the European market. (previously premium segment)

• Design and color based on each countries affiliations.

Way Forward….Strategy:

Continued thrust on core business:• Watches. • Jewelry.• International markets (especially middle east and south

east Asia.).

Developing new business segments:• Precision Engineering.• Mass marketing Jewelry.• Eye wear.

THANK YOU