ABSTRACT OF THE THESIS

MARKETING PRACTICES OF
TITAN INDUSTRIES LIMITED
A CASE STUDY
Marketing is one of the terms in academia that does not have one
definition which can be commonly agreed upon.

Even after a

better part of a century the debate continues. In a nutshell it

consists of the social and managerial processes by which
products, services and value are exchanged in order to fulfill
individual's or group's needs and wants.

Philip Kotler defines marketing as "Marketing is human activity

directed at satisfying needs and wants through exchange
processes". As per American Marketing Association, Marketing is
an organizational function and a set of processes for creating,
communicating and delivering value to customers and for
managing customer relationships in ways that benefit the
organization and its stakeholders". The more simpler and more
universal definition is, "Marketing is the ongoing process of moving
people closer to making a decision to purchase, use, follow or
conform to someone else's products, services or values. Simply, if
it doesn't facilitate a sale then it is not marketing." The definition

Abstract of Thesis

of Chartered Institute of Marketing (CIM) claims marketing to be

the management process of anticipating, identifying and satisfying
customer requirements profitably.

Thus, operative marketing

involves the processes of market research, new product

development, product life cycle management, pricing, channel
management as well as promotion. The Oxford University Press
defines global marketing as marketing on a worldwide scale
reconciling or taking commercial advantage of global operational
differences, similarities and opportunities in order to meet global
objectives.

Three reasons have been cited for the shift from domestic to global
marketing by Masaaki Kotabe and Kristiaan Helsen in their book
Global Marketing Management. These are:

i.

Saturation of Domestic Markets

ii.

Worldwide Competition; and

iii.

E-Commerce

Global marketing is an evolutionary process. Culture is a

problematic issue for many marketers since it is inherently
nebulous and often difficult to understand. One may violate the
cultural norms of another country without being informed of this,
and people from different cultures may feel uncomfortable in each
others presence without knowing exactly why two speakers may
unconsciously continue to attempt to adjust to reach an
incompatible preferred interpersonal distance.

-2-

Culture can be

Abstract of Thesis

looked upon as a set of traditional beliefs and values that are

shared and transmitted in a given society. It also represents the
way of life and thinking patterns that are passed on from one
generation to the next.

Culture encompasses norms, values,

customs, art, morals and laws.

Managers play at least three separate roles: interpersonal,

informational and decisional. MIS, in electronic form or otherwise,
can support these roles in varying degrees. MIS has less to
contribute in the case of a manager's informational role than for the
other two. Three levels of decision making can be distinguished
from one another: strategic, control and operational. Again, MIS
has to support each level. Strategic decisions are characteristically
one-off situations. Strategic decisions have implications for
changing the structure of an organisation and therefore the MIS
must provide information which is precise and accurate. Control
decisions deal with broad policy issues and operational decisions
concern the management of the organisation's marketing mix.

The term Global Business refers to a wide range of activities

involved in conducting business transactions across national
boundaries.

International, as opposed to multinational, business

suggests a comprehensive approach to operations of both large

and small firms engaged in business overseas.

The global

increase of business affects the world economic order profoundly.

It is a change with an impact comparable to that of the industrial
revolution. In fact, todays global activity has been described as

-3-

Abstract of Thesis

the second industrial revolution. These days, market provides not

only a multiplicity of goods, but goods from many places. It is not
surprising if your shirt comes from Taiwan, your jeans from Mexico,
and your shoes from Italy.

Wrist watches form an integral part of the personality of individuals

in the present era. Earlier seen as a luxury item, they are now
witnessing a fundamental change in perception, and are now
gaining respect as an essential utility item. For the watch industry,
time seems in its favour what with the liberalization of the Indian
market coupled with the rising purchasing power of the young and
consumerist Indians.

Indian watches market was for long

dominated by public sector organisations like Hindustan Machine

Tools Ltd. (HMT) and Allwyn, and has now left the pioneers far
behind or nowhere in market by private sector enterprises like
Titan, Sonata, Ajanta and Timex along with foreign entities jostling
for display space in the smallest of shops selling these products.
Before the establishment of HMT as the dominant player in the
Indian markets initially, the country was solely dependent on
imports to meet the internal demand. However, establishment of
HMT as the leading player in the wrist watch segment in the
1960s, changed the scenario.

In post liberalization India, the market stood to witness intensive

competition between foreign and Indian manufacturers like Timex,
Titan, Movado, Longines, Rado, Rolex, Frderique Constant, Mont
Blanc, Swatch, and many others. Many watch makers have made

-4-

Abstract of Thesis

significant inroads in the industry and others are in the process of

establishing themselves.

Besides this, buyers are extremely

choosy about the brand and type of wrist watches they wear.
Being extremely brand conscious, their tastes have evolved over
the years and have gone beyond the realms of durability to choose
in terms of aesthetics and elegance. Thus it is a buyers market
with multitude of designs that have flooded the market place.

The size of the watch market currently is estimated to be around

40 to 45 million pieces annually.

The organized sector alone

contributes up to 30 percent of this figure, and the rest of the

demand is being met by the unorganised sector. This data is
significant indeed in view of the socio economic distribution of the
Indian populace. More than 58 percent of the population is under
twenty five and more than 80 percent of the population is below 45
years of age. Looking into this fact and the long standing Indian
tradition of comparing watches with jewellery and other traditional
items, many watch companies are interested in setting up base in
India. The average growth in the size of the market is slated to be
around 10 -15 percent per year.

The price of the watches is a major motive in the minds of the

customer. Accordingly, three segments can be identified here,
namely low priced, medium priced, and high priced watches. The
lower priced segment consists of watches priced less than INR
500; the medium price range consists of watches in the INR 5001500 range and the high priced watches come in the INR 1500

-5-

Abstract of Thesis

upwards range. More than 90 percent of the watches were from

the lower price ranges with international costs being less than 20
euros. Thus there is enormous potential for growth of the industry
in this untapped segment. Some customers look out for features
like fashion appeal, technology, sophistication and status. Others
go for durability, economy and precision. Many customers prefer
mechanical and automatic watches, while others prefer quartz
watches. Newer segments are also on rise such as ladies watches,
childrens watches and gents watches. Customers usually base
their preferences and buying decisions on a variety of factors like
price, durability, utility, aesthetic appeal and brand name.

combination of all these points ultimately forms the customers

buying decision that translates into the purchase of a watch.

Since the early 1990s, Indian customers are relying more on

departmental stores and shopping malls to purchase their wants
and needs. This has come as a boon for watch manufacturers and
dealers, who are now looking forward to utilise these new outlets to
reach out to the Indian masses. Watch manufacturers are looking
at a suitable mix to market their products ranging from exclusive
retail outlets to display sections in malls and large departmental
stores. Though India is still considered to be a difficult market to
penetrate due to reasons like price sensitiveness and its largely
unorganised sector.

The brand Titan is committed to offering its consumers watches

that represent the compass of their imagination. Titan's customers

-6-

Abstract of Thesis

are therefore consistently introduced to exciting new collections,

which connect, with various facets of their deep rooted yearnings
for

self-expression.

The

new

brand

philosophy

of

Titan,

encapsulated in the words Be More, touches this as well as all

other aspects of the brand.

The Titan brand architecture

comprises several collection and sub-brands, each of which is a

leader in its segment. Notable among them are Titan Edge the
world's slimmest watch which stands for the philosophy of less is
more; Titan Raga the feminine and sensuous accessory for
today's woman, Nebula crafted in solid 18K gold and precious
stones. Several other popular collections like Heritage, Aviator,
Regalia, Octane and WWF also form a part of the Titan wardrobe.
Today, the Titan portfolio has over 60% of the domestic market
share in the organised watch market.

The company has 487

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.

Early 2001, when Indian consumers rated Titan ahead of all other
brands as the Most Admired Brand in India across all product
categories, it did not surprise people that a 13 year-old had
managed to upstage many older and more well-known brands: it
was expected of Titan to achieve such things, it was so natural. It
was also a fitting tribute to a brand, which had not only
revolutionised the Indian watch industry, but also brought in worldclass benchmarks in product design, quality and retailing into India.

-7-

Abstract of Thesis

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 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.

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

-8-

Abstract of Thesis

consumers did not change it for 10, 15, 20 years. And when they
did change it, they did not pay a high price for the new piece
because, what the hell, they were buying another time-keeping
device.

Xerxes Desai's vision was to dramatically alter this

perception of consumers, and make Titan a fashion accessory. He

knew that that was the only way that this new brand would explode
the market and wrest control from the dominant HMT. So he and
his team went about breaking all the rules in the category:

Mechanical technology was the norm - Quartz had not really

taken off in India. Titan would go against that and build its line
based on quartz. Accuracy would become a selling-plank.

Styling was basic - This was a constraint imposed by the

technology as well the outlook of the manufacturers. Titan decided
to make style a table-stake.

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,

-9-

Abstract of Thesis

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, mesmerised consumers,
demolished competition and rode into the sunset with panache.

Today, in early 21st century India, it is taken for granted that a

watch is a fashion accessory. Titan dominates the market, with a
60% share of the organised sector market (the total market,
including the unorganised sector, is estimated at around 42 million
units). Titan's quality record is impressive, its sales and service
network is wide and deep, and its network of exclusive
showrooms, The World of Titan, is one of the most prestigious and
visible retail brands in the country, offering world-class levels of
shopping comfort and customer service.

What is truly amazing about Titan is the sheer scale of its offering
and the consequent choice it offers to multiple segments across
taste, age and economic background. Titan saw this approach as

- 10 -

Abstract of Thesis

the foundation of its leadership strategy in the early days. Even the
early range had distinct offerings for different requirements: formal
watches (gold plated cases with fine leather straps) for the
executive, dress watches (gold plated cases with ornamental gold
plated bracelets) for those with a preference for jewellery, rugged
watches (all steel watches with a skew to functionality) for those
whose usage demanded a certain durability.

Titan has built on this principle over the last 15 years, almost year
after year:

In 1989, it was Aqura, the trendy range for the youth,

colourful, smart and affordable plastic watches for the youth:
The other side of Titan for the other side of you.
In 1992, it was Raga, the ethnic range, with striking
symbolism from ethnic India, for the sophisticated India
woman who appreciated such things.
In 1993, it was Insignia, very distinctive and internationallooking top-end watches, for those seeking exclusivity and
status.
In 1994, it was psi 2000, rugged, sporty and very masculine
watches

with

serious

sports

features

(200-m

mater

resistance, high precision chronographs) for those with the

penchant for adventure.
In 1996, it was Dash, the cute and colourful range for kids.
In 1997, it was Sonata, the affordable, good quality range for
the budget-conscious.

- 11 -

Abstract of Thesis

In 1998, it was Fastrack, the cool, trendy, funky range for the
young and young-at-heart.
In 1999, it was Nebula, the sold gold and diamond-studded
range of luxury watches for those affluent people to whom
gold is a precious acquisition.
In 2001, it was Steel, the smart and contemporary collection
for the young 21st century executive.
And in 2008, the brand has collections like the Octane, Diva,
WWF and Zoop - each of them unique and fascinating.

The underpinning of this entire market development and

segmentation is Innovation. Titan has kept innovation core to its
strategy, realising fully that the only way to sustain the fashion
accessory perception

is by continuously coming out with

collections that make the current ones somewhat dated, thereby

creating a certain discomfort in the consumers' mind, which leads
to another purchase. This impact has shown up in every one of the
collections spoken of earlier. They were fresh and distinctive,
unlike what consumers had seen before, and thus created
curiosity, walk-ins and sales.

A stellar example of Titan's

Innovation is Edge, the slimmest watch in the universe. Titan's

R&D talent created a wafer-thin quartz movement, a mere 1.15mm
thin, over 4 years of development work. The immensely talented
Design team collaborated with the Manufacturing group to create
Edge, a 3.5-mm watch, a gem of elegance, with water-resistance
to boot.

It is a design and technological marvel, which justly

received the Best Design Award in the Lifestyle Product Category

- 12 -

Abstract of Thesis

in the first annual design contest organised by Business World and

NID. Titan also chose to invest heavily into showcasing all this
innovation to the consumer through advertising. From Day 1, the
'catalogue" advertising of Titan became its trademark as it was
used regularly and effectively to merchandise new models. The
catalogue ads also helped customers to shop off the page and
almost decide which model they wanted to pick. Retailers also
became used to seeing customers walking into shops with
newspaper "cuttings", asking for the models shown there. This
approach continues to this day, with mostly the same effect.

In the early nineties, Titan chose to develop the "Gifting" market.

Watches had always been favourite things to gift, and Titan had
benefited from that. Titan was convinced that there lay a greater
potential in that segment. A set of 3 films were developed in 1991
around 3 relationships, where the gifting of a Titan culminated in a
moving personal moment and a strengthening of the bond
between the protagonists. These films became a big hit and
created a genre of advertising films which lasted a good 8 years.
During those years, a series of films involving a variety of
characters (father, daughter, teacher, boyfriend, ex-boyfriend,
thief!) and with local flavour were created and released. These not
only helped build a good-sized gift segment for Titan, but also
became Titan's Theme Campaign, building strong emotional
values for the brand. One of the films in the series, where a man
and his younger daughter conspire to give his older daughter a
Titan as a surprise gift at her wedding, released around 1994, went

- 13 -

Abstract of Thesis

on to become the most popular Titan film ever, even voted by the
viewers of Zee Television as the second most liked TV
commercial.

The most enduring part of the Titan advertising has been the music
track. Chosen by Xerxes Desai and the creative head of O&M in
1987 for its class and western vibes, the segment from Mozart's
25th Symphony has arguably become Indian Advertising's most
memorable track. Starting in 1987 in its pure classical versions,
with a single violin playing the melody, this piece has been
rendered in countless innovative versions over the years: Indian
Classical, Indian Folk, Operatic, Rock, Funk. And has become
such a powerful audio mnemonic for the brand.

Another

successful customer-facing aspect about Titan has been its stores.

Organised retailing did not exist in the late eighties. The concept of
exclusive brand stores was almost non-existent. In a pioneering
effort that dramatically altered industry standards, the World of
Titan was born. Located in the newer parts of a city, with a good
frontage and layout, the showroom immediately stood out on the
street and attracted walk-ins.

Titan was voted the Most Admired Brand (across categories) in

India by consumers, in the first such study by Brand Equity done in
2001. Titan was voted the Most Admired Consumer Durables
Marketer by industry professionals, 8 out of 9 times (the ninth time
it was No 2), in A & M's annual survey done between 1992 and
1999. Titan was voted the Most Respected Consumer Durables

- 14 -

Abstract of Thesis

Company in a Business World Survey in 2003. Consumers and

professionals alike have resonated equally to Titan's successful
efforts in bringing international standards to India. And in 2008, it
emerges as the 24th Most Admired Brand in the ET Most Admired
Brands survey done annually, it was also the most admired
Consumer Durable brand.

Titan has also done the seemingly impossible reverse thing: taking
Indian quality to international markets. Since starting export
operations in a small scale to the Middle East in the early nineties
to exploit the resident NRI population, Titan has come a long way.
Moving into the European market in the mid-nineties and Asia
Pacific in the late nineties, Titan today sells in the UK, Spain,
Portugal, Greece, Singapore, Dubai, Malaysia, Oman, Philippines
and many more countries. The customers are no longer only NRIs.
They are the Thais, the Greeks, the Arabs, the Filipinos - through a
combination of Contemporary Style, Great Quality and Great
Prices, Titan has put together an irresistible proposition for the
people of these countries. With over 100 million satisfied
consumers and a track record of breaking the rules, Team Titan
faces the 21st Century with a mix of passion, excitement and
energy.

In the back drop of a recovering economy and positive consumer

sentiment, Titan Industries Limited has come up with a record
performance, tripling its profit after tax to Rs.78.35 crore, in Q3 this
year as against Rs.23.52 crore last year. The net profit in the same

- 15 -

Abstract of Thesis

quarter last year however was impacted to the tune of Rs.19.44

crore : Rs.12.78 crore due to reduction in the discount rate for
actuarial valuation of Gratuity & Leave Salary and Rs.6.66 crore
towards interest on income tax of earlier years. Even after
accounting for these, PAT has shown a healthy increase of 82.4%
over the same quarter last year.1

The Company recorded a growth of Rs.29.5% in income, growing

from Rs.1034.88 crore last year to Rs.1399.77 crore this year in
the Q3. The Company's PBT stands at Rs.98.28 crore in Q3 as
against Rs.41.01 crore during the same period last year. For the
nine month period ended December 2009, PBT crossed the
Rs.250 crore mark and stood at Rs.259.37 crore as against Rs.
199.60 crore during the same period last year.

Both the mature businesses of the company, watches and

jewellery, recorded good growth in Q3. Jewellery income in Q3
was Rs.1054.52 crore a growth of 34% over last year's income of
Rs.788.69 crore. The watches business recorded an income of
Rs.240.94 crore as against Rs.193.11 crore last year in Q3, a
growth of 25%. The Company's other businesses declined by 6.8%
over last year to Rs.40.25 crore in Q3, due to the postponement /
cancellation of orders from overseas customers in the Precision
Engineering Division. The new Eyewear business has grown its
retail presence through Titan Eye+ stores to over 40 towns.

Economic Times, 29th January 2010.

- 16 -

Abstract of Thesis

The Company maintained the momentum of retail expansion

across all its businesses and closed December 2009 with 518
stores nationally, with a total retail area of 6.6 lakh sq.ft. in 143
towns.

Net profit of the Company for the nine months' period

ended December 2009 was Rs.199.07 crore as against Rs.133.09

crore last year, a growth of 50%. During the nine months ended
December 2009, the Watch Division sales grew by 11.5% from Rs.
668.45 crore last year to Rs.745.03 crore this year. Jewellery
division grew by 16.5% to Rs.2512.69 crore this year from
Rs.2156.59 crore during the corresponding period last year.

On the basis of research findings, the researcher would like to

submit some useful suggestions to the government bodies as well
as exporters who can help boost Indias export marketing strategy.
Some of the worthy suggestions may be mentioned as follows:

Managerial effectiveness is the key issue in the present

context. As such, sincere efforts should be put in by Titan for
developing managerial class at all levels of the management.

It is suggested that Titan Industries Limited should fully adopt

total quality management philosophy and best corporate
governance practices of international standards in order to
have firm footing in the global markets.

In the present environment, it is suggested that Titan should

solve all problems with QC tools and PDPC (Progress
Decision Programme Chart) and PDCA cycle and TEI (Total
Employees Involvement).

- 17 -

Abstract of Thesis

It is further suggested that there is urgent need for the

development of world class R&D activities and changing the
traditional practices. For this purpose, the executives should
be

trained,

re-trained

and

continuous

improvement

programmes be implemented with the help of Kaizen

continuous improvement.

It is again suggested that Titan should develop teamwork for

quality. There should be CATs (corrective action teams) and
CIT (continuous improvement teams).

Titan should also

emphasise on team building and multi-culturism.

It is further suggested that quality culture should be developed

and arrangement should be made for the development of
multi-culturism in Titan so that it becomes world class quality
organization.

Titan Industries need dynamic and innovative leadership for

inspiring change because organizational, managerial and
financial changes have taken place in the present times in
these organizations.

In order to compete in the price sensitive market, Titan should

lay emphasis on right planning with right business partners
and collaborators.

Next important suggestion is the strengthening of quality

circles (QCs) and benchmarking programmes. Benchmarking
programmes are very necessary for companies like Titan
Industries Limited. The benchmarking process involves five
phasesplanning, analysis, integration, action and maturity.

- 18 -

Abstract of Thesis

It is suggested that pro-active programmes be initiated so that

barriers to change are minimized and constant synergistic
results are obtained by Titan.

There is also need for the development of joint ventures and

foreign collaborations with the help of 10P model of global
strategic management which covers people, purpose,
perspective, positioning, productivity, partnerships, product,
planning, policies and performance.

It is also necessary that inception, RFT (right first time), TPM

(total

productive

maintenance)

and

PM

(preventive

maintenance), CM (corrective maintenance), IM (improvement

maintenance) should be adopted for successful marketing
programmes in future.

It is suggested that organizational re-engineering programmes

QFD (Quality Function Deployment) and DPM (Daily Process
Management) and quality audit activities be adopted so that
the organizations become the best organizations in their
activities in global market.

The study reveals that there is urgent need for developing

international economic policies and economic principles by
Titan for the purpose of strengthening global business.

It is further suggested that there is urgent need for the

development

of

global

business

management

and

international marketing strategies by Titan Industries. It will be

possible only when international promotional strategy and
international

production

and

developed.

- 19 -

operations

strategies

are

Abstract of Thesis

It is suggested that more trade incentives be given by the

Government to encourage the exporters to promote exports
from the country.

The research findings suggest that there is urgent need for

assessing the global marketing opportunities and developing
global strategies by Titan Industries to develop the competitive
edge.

Improvement and expansion in infrastructure facilities at Ports

is very necessary because speedy and unhurdled clearance
would boost the export trade and also facilitate the exporters
in exporting their products and services.

The small producers, retail traders need immediate attention

so that they also come in the line to enter into global business.

Titan should also try to join hands with abroad business

partners to have a larger share in the international business.
For this purpose acquisitions of plants and facilities in
overseas markets are very necessary.

Simplification of paper work is also necessary because

cumbersome and difficult paper work and documentation
create obstructions to the exporters.

It is further suggested that there should be productivity

improvement including improvement of product quality as well
as packaging and delivery systems.

Joint ventures constitute an important route for carrying on

international business.

As such, strategy be formulated for

setting up joint ventures in foreign markets.

- 20 -

Abstract of Thesis

International supply chain management should be well

defined. For this purpose lessons from well established firms
should be learnt.

It is also necessary that encouragement be given for buying

out on-going brands in different countries.

International

advertisement campaigns should be simple and result

oriented.

It is further suggested that niche markets be encouraged.

Several niche markets for Titan brands exist in foreign
countries in a fairly developed form that can be exploited with
moderate resources.

The researcher hopes that the suggestions given above would be

found useful by the officials of the company who are responsible
for policy formulation and implementation and also the exporters
and commodity boards. The researcher further hopes that further
in-depth and extensive research studies would be undertaken to
enlarge the scope of the present study.

- 21 -