A brand innovation case study

Why study Titan watches ?

Use of innovation

Broadest range of watches

Brand leader in the country of its origin

Only branded watch company to originate from a newly industrializing country

Became the best brand in a short time

Introduction : History

• World's fifth largest wrist watch manufacturer.

• Designer and manufacturer of India's largest and best-known range of personal accessories

• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation. WH

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Introduction : History

• World's fifth largest wrist watch manufacturer.

• Designer and manufacturer of India's largest and best-known range of personal accessories

• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.

• Established in 1987

• Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team.

• Third Indian watch manufacturer after HMT and Allwyn.

WH

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WH

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WH

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Introduction : History

• World's fifth largest wrist watch manufacturer.

• Designer and manufacturer of India's largest and best-known range of personal accessories

• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.

• Indian designer and manufacturer of watches, jewellery and other accessories including sunglasses, wallets, bags and belt.

• Precision engineering is another area of specialisation.

• Established in 1987

• Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team.

• Third Indian watch manufacturer after HMT and Allwyn.

WH

O?

WH

EN?

WH

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Today, Titan watches account for more than 60% share of the total Indian Watch Market.

Sold in about 32 countries through marketing subsidiaries based in London, Aden, Dubai and Singapore.

Titan offers various brands including Steel, Regalia, Raga, Nebula, Sonata, Fastrack, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the HTSE series.

Introduction : History

Evolution of Titan

1984

+

• Joint venture• Electronic watches• 150 designs

1986

+

Digital & ana-digital watches

1989

‘Aqura’ range of watches launched

• ‘Aqura’ sold to Timex• Consultancy services • Marketing strategy outsourced

1991 1992

• ‘Raga’ range of watches launched.• “Spectra” range reintroduced

1994

• ‘Tanishq’ range of watches launched• ‘Insignia’ launched in India

1995

+

‘Sonata’ range of watches launched

1996

Tim

elin

e

‘Dash’ range of watches launched

2001 2000

• ‘Cyber’ range of watches launched• ‘Titan-Fastrack’ launched• ‘Baarah nai toh tera ampaign with pizza hut• ‘Classique’ collection

launched

2004

‘Crown’ range of watches launched

‘Vizag’ range of watches launched

20052006

‘Xylys’ range of watches launched

2013

‘Edge’ and Braille watches launched

‘Octane’, ‘Obaku’, ‘Automatic’, ‘Purple’

range of watches launched

Implementing innovation is an art rather than science.

Innovation

strategies should lead to inimitability of strategic options that come from certain tacit knowledge elements or embedded organizational processes1

Strategic options an innovation provides should lead to sustainable competitive advantage.

Innovation should enable a firm to retain superiority in the market place. 2

Strategic innovation should allow a firm to pursue strategic options without loosing its flexibility. 3

Options pursued should lead to durablebenefits 4

5

Tech

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gica

l

InnovationIncreased reach: Retailing

Cycle time reduction

Continuous feedback

Constant review

Multi-brand outlets

Service excellence

Slim watches

Watches for disabled

Better finishes of watches

Designing watches through visualisation

Broader ranges of watches

Robust design of watches OrganisationalInnovation

+

Innovation

InimitabilityAgility and

openness to change

SuperiorityProduct richness Flexibility

Alliance relationships,cross-functional teamingand design automation

Durability of strategic advantages innovative approach to extend the reach to all majorcustomer centers through the ‘watch supermarket’

concept.

SustainabilitySuperior brand reputation

VisionGlobal brandWorld–class manufacturingNew image driven by innovation

High torque stepper motors for high reliabilityVapour deposition technology for appearance partsCycle time reduction through concurrent engineeringWorld’s thinnest watch movement

Technology

Concept marketing instead of product marketingBrand image building in EuropeBrand leveraging in other personal product segments

Brand Building

Global procurementTotal Quality management at the suppliers end

Procurement

HR ManagementTraining new & young staff to have a new corporate cultureCross cultural marketing

Innovation

Inno

vatio

n in

Val

ue C

hain

Conceptualisation

World class manufacturingThorough assessment of competitive trendsCustomer orientation

Design

Design studioNetworking into the world of designDesign software CAD/CAMEuropean design ideasContinuous renewal of models

Operations

Short product realisation cycle timesRich stylesIntegrated manufacturingInnovative technologiesHigh quality orientationWide range

Distribution

Multi channel distributionInstitutional salesDealer training for attitudinal change

Marketing & Sales

Flagship showroomsMulti-brand showroomsSelling competitive productsRapid increase in reach by locating outlets in smaller townsRapid brand extension

Service

Front service offersSpare parts warehousesShort service cycle timeIntensive training for service excellence

What does all the innovation lead to?

Product Range

Slim watch design

Titan has claimed to have manufactured the world's slimmest wrist watch branded as Titan Edge with a total thickness of 3.5 mm and a movement of 1.15 mm.

Watches for specially-abled

Better finishes, materials, broader ranges, robust design

Better finishes, materials, broader ranges, robust design

Better finishes, materials, broader ranges, robust design

Competition from lead competitor

Minimum return during sale period

Quality: Central focus

High torque stepper motors

Durable finishes using vacuum deposition

Large range of styles in a short time frame

Distinct in appearance & style

Art and design studio was set up

Help from European designer

Art software & computer aided design

Watches are elegant & rich in style

Retail networking and richness of productDes

ign

Strategy

Manufacturing

Strategy

+

Brandcreation

‘Telling the time’ product

‘Personal’ product

Rock-solid vision

Best staff-mix

Thorough market analysis

Right market segment

An organisation with:Design Manufacturing competence (Automation)Marketing competence

Driven by:Futuristic mindset Contextual insightBusiness foresight

Volume creation:When Titan entered the market,

the share of analog watches was just 5%Target the high opportunity segment

Position itself as a premium brand

Roadmap

BRAND CREATION

Rock-solid vision Best staff-mix

Thorough market analysis Right market segment

Why do Indians prefer watches made abroad ?Nature of marketCompetitor offeringsAnalyse operation of competing brandsCustomer requirementsIdentification of major gaps:

Styling, serviceRetail reachShowroom interiorsCapability of franchiseesAttitude of retailers towards customers

Main weakness in the Indian market: No brand had a strong personality

Started the company with a group of executives with rich but varied experiences:

MD from Tata group Professional executives with extensive experience in watch manufacturing Executives with marketing experience specifically in retailing.

Medium range market Large to handleHigh growth potential

Quick segmentation‘Doing it right the first time’:Usage of innovative advertising campaign to create & position the brand

REASONS NO. OF RESPONDENTS

Attractive Design

Reasonable price

Brand image

Good quality

39

7

22

25

Reasons for Brand Loyalty

Types of media NO. OF RESPONDENTS

TV

Magazine

Newspaper

Hoarding

46

25

36

15

Advertising

Reaching the customersSpeed and surprise are the crux of successful competitive strategy . -Art of War

Increased reach: Retailing

320 STORES 130 CITIES

Service excellenceSustainability of brand reputation comes from service excellence.

Service policy

Repair the hurt feelings of the

customerRepair the

watch

Repair the damage to

TITAN reputation

www.titancare.co.in

Repair status

Service news

Service network information

Service feedback

Do’s, Don'ts, Tips

Quality policy & Service offerings

Globalization : International reach

32 COUNTRIES2000 stores ; 135 million customers

became one of the first brands in the non-consumer goods segment from India to be sold in Middle East, East Asia as well as Europe.

* Regular interaction and systematic analysis of feedback

* Training and skill development in cross-cultural marketing

* Incremental approach supported by rapid learning and review

* Rapid learning and rapid adaptation to changing requirements in new markets.

* Continuous communication, dialogue-based goal setting & fear-free feedback.

Globalization : Strategy

Elements

Contemporary style + Excellent quality + affordable prices = Global Success G

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Globalization : Strategizing