Great Lakes Institute of Management Section B Group 13 Page 1 A BRAND AUDIT PROJECT ON TITAN FINAL REPORT Submitted by: Section B Group 13 Group Members: Abhishek Palo (FT12403) Himanshu Yadav (FT12431) P Gouthem Karthik (FT12325) S Kesavan (FT12224) Srinivasrao Dhenuvukonda (FT12467)
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Great Lakes Institute of Management
Section B Group 13 Page 1
A BRAND AUDIT PROJECT
ON
TITAN
FINAL REPORT
Submitted by:
Section B Group 13
Group Members:
Abhishek Palo (FT12403)
Himanshu Yadav (FT12431)
P Gouthem Karthik (FT12325)
S Kesavan (FT12224)
Srinivasrao Dhenuvukonda (FT12467)
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Table of Contents
History .................................................................................................................................. 3
Corporate information ........................................................................................................... 4
Product Related Attributes .................................................................................................... 4
With presence in over 4 continents and 40 countries,$ 1.46 billion company, Titan is the
worlds fifth largest and India’s largest wrist watch manufacturer. Since its inception as JV
between Tata group and TIDCO in 1984, the company has grown to develop and offer Titan,
Octane, Regalia, Fastrack, Nebula, Raga Xylys brands in the wrist watch market and has
extended to jewellery and accessories market through the brand Tanishq in 1995 and more
recently has entered into eye wear by launching eye gear sunglasses and prescription
sunglasses. As market leaders with over 60% market share in domestic organized watch
markets, Titan has recently claimed to have manufactured the world’s slimmest watch –
Titan Edge through devotion to extensive R&D activities.
Titan had set up its first plant for the manufacture of analog electronic watches in the state
industries promotion corporation of Tamil Nadu at Hosur in the year 1984 and went on to get
into an collaboration agreement with France Ebauches for technical documentation and
assistance in procurement of equipment and materials. In the year 1991 a joint venture
Company along with Economic Development Council of Goa, Daman & Diu Ltd., in the name
of Titan Time Products, Ltd., was set up at Goa, for the manufacture of Electronic Circuit
Blocks. The name of the Company was changed from Titan Watches, Ltd. to Titan Industries
Ltd. in the year 1993, in view of the fact that the Company's products consisted of not only
watches but also jewellery. Since then the company has consistently captured new markets
and thrown out many existing players to capture market leadership in the domestic market
and markets abroad.
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Corporate information
Some key changes in the history of corporate professionals profile include the induction of
Mr Jeyakodi as a director of the company in 2002 followed by resignation of Mr. Jacob
Curien in 2003. However the management was a given a boost by the appointment of Mr.
Harish Bhatt as Chief operating officer of watches and accessories division in the year 2006
followed by induction and then resignation of Mr. Sunil Palliwal as the board of director of
the company in 2007. However the following is the brief list of senior management team of
the Titan Industries as of 2011.
Name Designation
Susan Mathew Chairman / Chair Person
N Sundaradevan Director
Ishaat Hussain Director
T K Balaji Director
Vinita Bali Director
R Poornalingam Director
Name Designation
Bhaskar Bhat Managing Director
V Parthasarathy Director
N N Tata Director
C G Krishnadas Nair Director
Hema Ravichandar Director
Das Narayandas Independent Director
Product Related Attributes
All watches provide the time of day, giving at least the hour and minute, and usually the
second. Most also provide the current date, and often the day of the week as well. However,
many watches also provide a great deal of information beyond the basics of time and date.
Some watches include alarms. Other elaborate and more expensive watches, both pocket
and wrist models also incorporate striking mechanisms or repeater functions, so that the
wearer could learn the time by the sound emanating from the watch. This announcement or
striking feature is an essential characteristic of true clocks and distinguishes such watches
from ordinary timepieces. This feature is available on most digital watches.
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A complicated watch has one or more functions beyond the basic function of displaying the
time and the date; such functionality is called complication. Two popular complications are
the chronograph complication, which is the ability of the watch movement to function as a
stopwatch, and the moon phase complication, which is a display of the lunar phase.
Other more expensive complications include Tourbillon, Perpetual calendar, Minute
repeater, and Equation of time. A truly complicated watch has many of these complications
at once. Some watches can both indicate the direction of Mecca and have alarms that can
be set for all daily prayer requirements. Among watch enthusiasts, complicated watches are
especially collectible. Some watches include a second 12-hour display for UTC (as Pontos
Grand Guichet GMT).
The similar-sounding terms chronograph and chronometer are often confused, although
they mean altogether different things. A chronograph has a stopwatch complication, as
explained above, while a chronometer watch has a high quality mechanical or a thermo-
compensated quartz movement that has been tested and certified to operate within a certain
standard of accuracy by the COSC (Contrôle Officiel Suisse des Chronomètres). The
concepts are different but not mutually exclusive; so a watch can be a chronograph, a
chronometer, both, or neither.
Many computerized wristwatches have been developed, but none have had long-term sales
success, because they have awkward user interfaces due to the tiny screens and buttons,
and a short battery life. As miniaturized electronics became cheaper, watches have been
developed containing calculators, tonometer, barometers, altimeters, a compass using both
hands to show the N/S direction, video games, digital cameras, key drives, GPS receivers
and cellular phones. In the early 1980s Seiko marketed a watch with a television in it. Such
watches have also had the reputation as unsightly and thus mainly geek toys. Several
companies have however attempted to develop a computer contained in a wristwatch.
Braille watches have analogue displays with raised bumps around the face to allow blind
users to tell the time. Their digital equivalents use synthesised speech to speak the time on
command.
Some key unique features of Titan are:
1) Distinct watches in Gold and Leather
2) Stylish watches in Gold and Precious metals
3) Contemporary watches in stainless steel to withstand rigors of daily life
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4) Casual watches for youngsters and for outdoor use
5) Jewellery watches in 18 carat Gold, studded with Gems and coloured stones
6) Use of plastic dials for bold and contemporary design
Brand portfolio
Some of the most notable brands in the TITAN’s portfolio are
Titan Edge - World’s slimmest watch (at 3.45mm) that epitomizes the philosophy ‘less is
more’.
Titan Raga - a feminine and opulent accessory for today's affluent woman
Nebula - watches crafted with solid 18k gold and precious stones
Sonata - India's largest selling watch brand to suite the common man's wallet
Xylys - a Swiss-made, impeccably designed watch for the connoisseur and new age
achiever
Fastrack – watches created to accessories the trendy youth of today
The watch division also boasts of collections such as Automatic, Heritage, Nebula,
Orion, Raga, Zoop and series like Aviator, Octane and WWF.
Communication, pricing and distribution
Communication
Aamir khan is the brand ambassador for TITAN
Mahendra Sing Dhoni is the brand ambassador for SONATA.
Rani Mukherjee is the brand ambassador for Raga
Also Titan releases lot of advertising during festivals.
Pricing
Mass –INR 350-600
Popular-INR 600-900
Premium- INR 900-1500
Super premium-INR 1500-8000
Connoisseur segments –INR 8000- 150000
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Distribution
The company has over 317 exclusive ‘World of Titan' showrooms and over 50 Fastrack
stores. It also has a large network of over 650 after-sales-service centres.
Customer Knowledge
TITAN has revolutionized the watch market by making quartz its watch and is the
unquestioned leader in the segment. Many consumers’ brand associations for TITAN were
“simple and stylish”, “Elegant”, “High Quality”. The mental map is given below for the TITAN
watches.
Image: Time Amazing Design Elegant Simple and Stylish Totally Inspiring, Talismanic, Amazing and Nice Remember the titans movie Watch Power of TIME Distinct sound of their advertisements TITANS Greek GOD
Performance: Ruggedness Durability Sports: Trendy Advanced Features Digital People: High-Class Fashion Style
Negative
People
Performance
TITAN
Sports
Image
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Sources of Brand Equity
The brand name “TITAN” is classical and is based on Greek mythology.
Brand Name:
Tagline: BE MORE. WHAT’S YOUR STYLE
Logo:
The pervasive blue-coloured Tata logo which was planned by the Wolff Olins consultancy
was given a modification to make it more Greek like , curbing the circle around to make a
base and giving it black and grey colour amalgamations and so the TITAN logo was born .
The logo represents indefiniteness.
Brand Meaning: Titan personifies anything of size, strength, or achievement.
Memorability: The name is very easy to recall and recognize
Likeability: The brand name is fundamentally expressive and cogent.
Transferable: The name Titan means achievement and anybody wearing a Titan is an
achiever is what is communicated. It can easily be applied across all product categories and
geographies.
Legal Protection: The brand name is legally protected in watches.
Slogan: “BE MORE”
Titan was launched in 1987 when watches were seldom stylish and catered to the basic
need of knowing the time. TITAN brought in the style concept and gradually built its brand
equity.
Jingle: Mozart’s Fifth Symphony
Titan has a typical signature tune taken from Mozart’s fifth symphony. TITAN pioneered the
concept of gifting watches and with the signature tune the watches caught the attention of
many.
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Brand Associations: By being associated with Amir Khan, M.S. Dhoni, Rani Mukherjee it
has clearly communicated that this watch is the choice of Leaders.
CBBE Model for Titan Watches
In the CBBE model, Titan is undoubtedly in the Resonance stage. People used Titan
watches over time and they seem quite satisfied and happy with their experience, which
explains the repeat purchases. Titan as a brand is extremely strong and also has delivered
Wrist Watches
Pocket Watches
Reliable, Sturdy,
Long lasting or durable,
Chronographs, alarms,
Available in diff prices
Stylish and trendy,
No. of models, Colours,
Segmented approach,
Huge no of outlets
High Quality,
Trustworthy,
Superior, likeable
Pride,
Status,
Social Approval
Loyalty,
Attachment,
Sense of community
Brand Response
(What about you?)
Brand Meaning
(What are you?)
Brand Identity
(Who are you?)
Resonance
Judgement
Performance
Brand Salience
Feelings
Imagery
Brand Loyalty
(What about you & me?)
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its promise over the years. So, there is a sense of satisfaction/accomplishment when the
product is used, which in turn means Titan has connected extremely well with its target
audience through all its brands. Customers feel attached to Titan watches and hence exhibit
great loyalty towards it.
TITAN in various Brand Ratings
• In 2001, Indian consumers rated Titan as Most Admired Brand in India in a first ever
survey done by Brand Equity.
• In 2011, TITAN is ranked 73rd in Economic Times Brand Equity India’s Most Trusted
Brands.
• According to the Brand Trust Report, India Study, 2011, Titan is at no 10 among the
total of 16000 brands studied in the report.
• Titan brand won the “Most Valuable Brand in the State” award at the IIPM & The
Sunday Times STATE EXCELLENCE AWARD”
• Both Titan and Sonata feature in the Top 100 Brands-2009 in the Annual Survey
conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase
their rank to 86. Titan is ranked number 1 in the consumer durables category.
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TITAN’s Brand’s Architecture
Brand architecture goes beyond the visual/graphic naming relationship of brands and sub-
brands. It is about the overall experience created for your customer segments.
The Titan brand architecture comprises of several sub-brands:
• Titan Edge - world's slimmest watch based on the philosophy ‘less is more’,
• Titan Raga - feminine and sensuous accessory for today's woman,
• Nebula - crafted with solid 18k gold and precious stones.
Several other popular collections like Heritage, Aviator, Automatic, Regalia, Obaku, HTSE
also form a part of the Titan portfolio. Generally brand architecture comprises of two major
tiers. The top tier happens to be the corporate brand, TITAN and the second tier comprises
of “sub-brands”, Nebula, Heritage.
• Tier One focus: Companies that develop the corporate or parent brand as the
umbrella for overall products and services.
• Tier Two focus: Companies that primarily support their product/service brands.
A New Tier: One of the most innovative solutions is to create a new model that introduces a
new, third tier sitting between the parent and the product/service brands. This tier serves as
a platform for marketing efforts that is valuable from a number of perspectives. In the TITAN
portfolio of high premium watches, there seems to be a mismatch for the Tier two
approaches. TITAN corporate brand covers the Connoisseur segment watches but at the
same time these brands are on their own. A brand portraying the elegance is missing, which
might help TITAN to attract customers in that segment. TITAN which is basically known for
its product catering to semi premium segments, the high end segment requires more
branding and attention.
TITAN’s Brand Hierarchy Evaluation
The brand hierarchy of TITAN is apt. The core brand acts as the umbrella brand which
represents the institution as a whole. The sub brand identities of Nebula, Aviator, and
heritage are great and delivered their promise of elegance. The below diagram shows how
the brand has delivered, feeling of elegance and superiority right from the attribute level to
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the highest level,. TITAN as a brand has been very conservative in approach but still has
managed to push itself as a sought after brand in the young generation.
TITAN’s fit in a broader brand portfolio
The TITAN portfolio owns around 60% of domestic market share in organized watch market.
The TITAN brand has been extended to eye wear, which retails sunglasses under the fast
track brand. It has overall developed a sense of homely and indigenous product which has
mastered the latest technology and offers a wide range of products.
TITAN’s Growth strategy Assessment
Titan Industries Ltd has posted an increased sales turnover during the third quarter of the
fiscal by 40 per cent from Rs.105.85crore to Rs147.97crore in the current year while the
Something Bigger
Elegant, Feeling
Superior
Functional Benefit
Durable
Emotional End Benefit
Socially Acceptable.
Attributes
Time, Good, Sharp
Colour
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company's profit after tax has gone up by 28 per cent from Rs1.37crore to Rs1.96crore
During the nine month period, Titan's watch sales rose from 31.38 lakh pieces to 36.90 lakh
units marking a growth of 18 per cent, led by brands like Regalia, Raga, Fastback, Sonata
(plastic) and its newly launched Dash labels. The growth has been exceptionally great and is
attributed to the following factors.
• The Customer and Market Focus checks how the company determines customer
groups
• Strategic Planning criterion examines how the company develops strategic objectives
• The Information and Analysis criteria check whether the organisation has key metrics
in place
• The Human Resources Focus checks the appraisal system, the work environment
• Process management examines the product design, production and delivery process
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Brand Awareness
The first brand characteristic that was investigated was Brand Awareness.
The information that was sought included.
1. The total extent of brand awareness
2. Which geographic group is most familiar with the brand
3. The degree to which the brand is easily recognized as distinct from competitors
The total extent of brand awareness:
Fig 1
Fig 2
TITAN brand awareness is seen as 86% on an overall India basis. West India has got
most (100%) brand awareness, followed by North India.
Figure 1 compares the three geographic groups that were analysed throughout the study
and
Identifies which geographic group is most familiar / least familiar with the brand. A chi square
test was applied to analyse whether there is a dependence of ‘geography’ (variable 1) on
‘familiarity with brand’ (variable 2).
The null hypothesis (H0) and alternative hypothesis (HI) for this test is:
48%
30%
12%8%
2%
0%
10%
20%
30%
40%
50%
60%
Geography Brand
Awareness
South India 77.8%
North India 94.4%
West India 100.0%
East India 80.0%
Central India 50.0%
Total India 86.0%
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H0: Geography is independent of familiarity with brand
HI: Geography is dependent on familiarity with brand
The results from the test gave a p-value (probability) of less than 0.05, which indicates that
there is enough statistical evidence to reject the null hypothesis. Therefore, geography does
have an influence on whether the respondent will be familiar with the brand.
Chi-Square Tests
Value d
Asp. Sig. (2-
sided)
Pearson Chi-
Square
5.033a 4 .004
Likelihood Ratio 5.427 4 .006
N of Valid Cases 248
Brand Attitude
The second brand characteristic that was investigated was Attitude towards the TITAN
brand. Attitudes are usually measured with multi-attribute scales that are suitable for survey
research, such as a Liker scale.
1. Correlation Tests between “Geography” and Brand Attitude Variables