Retail Strategy of Titan

Presented By: Ankita Shriwardhankar (PM1325)Vaishakh Nethrekere (PM1319)SIMSREE Part Time Batch 2013-16

Index

Overview of Titan - Watches

Retail Strategy

Retail Market & Retail Format

Building Sustainable Competitive Advantage

Retail Branding

Retail Positioning

Multiple Sources of Advantage

Growth Strategy

Market Penetration

Conclusion

Overview of Titan - Watches

• Titan Industries was established in 1984 as a joint venture between the Tata Group and Tamil Nadu Industrial Development Corporation (TIDCO).

• Corporate office in Bangalore (Karnataka) & watch manufacturing facility in Hosur (Tamil Nadu).

• Titan Industries Limited is the world's fifth largest wrist watch manufacturer.

• Titan manufactures over 100 million watches across 30 countries and cumulative. Has 10 manufacturing bases across India. Customer base of over 80 million

• Brands under Titan- Steel, Regalia, Raga, Fastrack, Nebula, Xylys, Bandhan, Sonata, Octane, Purple, Classique, Automatic, Zoop.

• MD- Mr. Bhaskar Bhat, Mr. H G Raghunath- CEO, Titan watches and accessories, Mr. C Srinivasan Vice President - Chief Sales & Retail Officer

Retail Strategy• A retail strategy is a statement identifying • The retailers target market • The format of retailers plans to use to satisfy the target

market needs and• The bases upon which the retailers plans to build the

sustainable competitive advantage• The target market is the market segment towards which

the retailers plans to focus its resources and retailers mix.

Introduction to the world of retailing

Merchandise

Management

Store managem

ent

Retailing strategy

Retail Market

First segment

High income/ elite

consumers

Price Range - Rs 34,000 -Rs

25,000

Brands - Xylys, Helios

Second Segment

Higher middle class and middle

class

Price Range- Rs 24,000 - Rs 11,000

Brands-Raga, Regalia,

Edge, HTSE, Automatic ,

Octane

Third Segment

Middle Class & Young

salaried class

Price Range- Rs 10,000 -

Rs 2500

Brands-Fastrack, HTSE, Octane, Purple, Raga,

Steel, Classique, Sonata

Forth Segment

Lower class

Price Range - Rs 2500 - Rs

500

Brands- Fastrack, Sonata,

Zoop, Purple

Retail FormatWorld of Titan Showrooms - HeliosTime Zone

Traditional OutletsNon Traditional Outlets

10,000 Dealers

113 Towns226 Showrooms

2300 Towns

117 Multi Brand Stores

348 towns751 centers

104 Towns

Across India

Service Centers

Time Zone

World of Titan

Sustainable Competitive Advantage (SCA) for Titan

• SCA- New benchmarks in design and style.

• Vision & Mission- Create elevating experiences for the people through innovation and value addition.

• Received Best Design Award in Lifestyle Product Category Organized by Business World

Retail Branding

• Retail Branding is THE EXPERIENCE! It’s “your BRAND in ACTION! ” It’s how your brand translates/transforms into a tangible feeling.

Retail Positioning

Demographics• Raga,

exclusive watches for women

Age Group Youth• FastTrack

Digital, with “techno-geek” image

Reliability• FastTrack,

contemporary, sturdy & reliable

Technology• Edge,

slimmest collection of watches

Affordability• Sonata,

‘value for money’

Multiple Sources of Advantage

• Titan has not been dependent on single approach such as low cost or quality product instead built a high wall around its position for every brand.

• Eg: Raga- Feminine and classy• FastTrack- Fashion Statement • Xylys- Designer watches

• Additional sources of advantage which helped build a high wall is marketing & distribution of Titan watches

Growth Strategy• Increased focus on higher priced watches, as

it looks to recover margins, improve its brand image and fire up sales growth

• Titan has also acquired the 18th century Swiss brand Favre Leuba as part of its plan to launch its luxury offering in the range of Rs 75,000 to Rs 1 lakh

• Earlier, each brand operated on its own and had separate management teams. Now only the Helios brand, which has 60 stores, remains a separate business.

• All the watches under the brand of Titan will be sold in Helios.

Market Penetration• Built brand visibility and weight through social media website like face book and

Twitter• New ad campaigns• Sales promotion across the year-

– Flat 20% off, Exchange offers, – Gold and Diamond Tanishq pendant free on the purchase of watches priced below Rs.

60,000 – Launch new brands every time with trendy designs.– Advertising with celebrities like Katrina Kaif and Amir Khan– Making the watches available on the e-c commerce websites.

Distribution Strategy

• Currently we have 65 distributors handling well over 11,000 dealers across the country.

• Titan's growth rate in the marketplace requires us to appoint new distributors every year.

• The distributor channel operates independent of all other channels and reaches out to its own set of distinct dealer

Creative Advertising

• Be one with the wild Amir Khan Ad brought a range of watches dedicated to wild life.

• Titan also found its persona in Aamir. Aamir provided the much needed edge to the brand.

• Fastrack “Move on” Ad made a strong impact on youth.

• The Raga ad spoke about elegance

• The Farahan Akhtar ad brought the class distinction for Xylys.

Conclusion

• Titan is classic example of sensational brands having made in India tag. it's high on latest technology, precision & features, Indian cultural ethos and International fashion. Titan boosts large customer base with ethnocentric loyalty. Titan boosts large indigenous R&D centre and has proved its calibre and capabilities. Titan has large product range of successful subsidiary brands under its credit.