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POPULARITY OF TITAN
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IN
SMALL CITIES
DEVELOPED FOR
TITAN COMPANY
AT
CITY OF GLASS
FIROZABAD

BY
NISHANT GUPTA
ROLL NO. 8155
UNDER THE GUIDANCE OF
MS.RICHA VERMA
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This is to certify that NISHANT GUPTA ROLL NO 8155 a TRAINEE OF MANAGEMANT

PERSUING POST GRADUATE DIPLOMA IN MANAGEMENT from IME-INSTITUTE OF
MANAGEMENT EDUCATION has done his full-semester project training in ,TITAN company, in city
of FIROZABAD, from 22 DEC 2008TO 30 DEC 2008

The project work entitled “POPULARITY OF TITAN IN SMALL CITIES” embodies the original work
done by NISHANT GUPTA during his above full semester project training period.

Ms. RICHA VERMA Dr. TARUNA GAUTAM

AST.DIRECTOR

Prof. SIDDHART VERMA

(Head, Training Division)
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Acknowledgement

I express my heartiest gratitude to Dr. DHARM PAUL GOYAL (DIRECTOR OF IME)

and Prof. SIDDHART VERMA who gave me privileged opportunity to do the project work on and
guided me with his valuable suggestions, which helped to give my project a final touch.

I am highly indebted to my project guide Ms. RICHA VERMA, who constantly helped and
directed me to carry out my project efficiently. I thank her for all informal discussions, constructive
criticism and for valuable suggestion in completing the project work in spite of her busy schedule. Her
added encouragement and consideration in intervals of time helped me in the successful completion of the
project.

Most sincere thanks to Prof. SIDDARTA VERMA and Dr.TARUNA GAUTAM

(Programmer). I express my deep sense of gratitude to them for their precious and valuable guidance
during the completion of this project. I am also thankful to all other project trainees for their valuable
suggestions, support and co-operation at every stage of project development.

Finally, I am grateful to all those persons who have rendered their valuable co-operation by
way of encouragement, personal interviews, sympathy and well wishes.

NISHANT GUPTA
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Abstract

This Project is to know the Brand Image of TITAN Company in small cities. And to
retrieve more information from the database like category-wise break-up on the basis of gender, family
members, family income, education level, need based, age based and according to necessities.

This project is very useful for the TITAN Company, so they can interpret their
decision about various fields such as Market Promotion in small cities, consumer satisfaction survey in
those cities in which they have their competition with their own brands, impact of sales promotion on
consumer perception, comparative study in different brands, market segments. By this study TITAN can
effectively monitor the performance or can check their value.

This project show that TITAN have large share in the market but they have to
include SONATA share also specially for the small cities and they loses share in the sector of premium
watches as the competition increases and new Brands of watches come in INDIAN market. Mainly
TITAN customer range of TITAN is 1500-10000 below these ranges of customer have various options
such as MAXIMA and LOCAL Brands and above this range of customer like to go for other premium
watches such as TAGHUER, RADO and OMEGA.

So this project show what the factor responsible for the image of the TITAN
Company in the mind of the customer.

NISHANT GUPTA
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S.NO. Topics Page NO.

1. ORGANISATION PROFILE
1.1 About Watches industry
1.2 About TITAN

2. PROJECT DESCRIPTION
2.1 Objectives
2.2 Need of study
2.3 Scope of study
2.4 Limitations

3. LITERATURE REVIEW

4. RESEARCH METHODOLOGY

4.1 Purpose of the research

4.2 Research approach

4.3 Research strategy

5. DATA ANALYSIS

5.1 Data selection method

5.2 Sample selection

5.3 Data analysis

6. CONCLUSIONS AND SUGGESTION

REFERENCES
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ORGANISATION PROFILE
1.1 ABOUT WATCHES INDUSTRY:-
The first pocket watch was created in Germany by Peter Henlein in
1524. Others appear in 1548 and more were produced in Switzerland and England after 1575. At this time
the main problem was the driving mechanism. Typically, weights were used, which made portable
watches impractical, but it was a period of great advancement and innovation. The first movements were
made of steel, then later brass. They had no balance springs and were notoriously inaccurate. The watches
had only an hour hand and had to be wound twice daily. Soon the spiral leaf mainspring appeared the
greatest innovation at the time as it allowed long-term power without weights. Because of a difference in
timing between the long arcs and the short arcs, accuracy could only be improved by using a limited
portion of the mainspring. Germany produced a watch with a cam at the end of a barrel arbor to
compensate for variations in spring tension, but it was the English and French solution to use the fusee.
This stopped the watch during winding to prevent over oscillation of the balance wheel. Additional stops
were included as regulators.

In 1848, Louis Brandt opened a workshop in La Chaux-de-Fonds which was to

later become the Omega Watch Company. It was the Americans, around 1850, who were first to go into
mass production, with mixed results, the main companies being Waltham, Elgin and Hamilton.

In 1884, Greenwich, England was named the zero meridians, a worldwide acceptance
of a starting point for global time zones. After 1900, advances in metallurgy improved the mechanisms,
primarily because the balance spring was sensitive to temperature and position. Self-compensating
balances were made with bi-metallic properties to compensate for high and low temperatures, and
eventually a balance was created that could compensate for middle temperature errors. In 1905 the Rolex
Watch Company was started by Hans Wilsdorf. 1914 saw the first wristwatch with an alarm. Seiko was
started in Tokyo in 1924.
The main milestones of watch evolution can be state Prior to 1600 – the Earliest Watches

Ø 1600-1675 – The Age of Decoration.

Ø 1675-1700 – The Balance Spring.
Ø 1700-1775 – Steady Progress
Ø 1775-1830 – The First Chronometer
Ø 1830-1900 - The Era of Complications
Ø 1900 on – Metallurgy to the Rescue

Some Important Years of Watches Industry

Ø 1500s: Germany: Peter Henlein creates the first pocket watch.

Ø 1485: Leonardo da Vinci sketches a fusee for a clock.
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Ø Early 1600s: Form watches becoming popular. Cases are shaped like animals and objects. Religious
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Ø 1635: Around this time that the fusee was adapted from clocks to watches.
Ø 1659 - 1675: Christian Huygens invents the "Remontoire".
Ø 1687: Daniel Quare patents the repeating mechanism that uses bells to sound quarter hours and the
hours.
Ø 1704: Peter and Jacob Debaufre, Nicolas Facio, are the first to use rubies in watch movements.
Ø 1750: Watch makers began using enamel on watch dials.
Ø 1759: Thomas Mudge invents the English lever escapement.
Ø 1775: Abraham Louis Breguet sets up his own watch making shop in Paris, France.
Ø 1780: Abraham Louis Perrelet invents the self winding movement.
Ø 1786: Breguet is the first to use guilloche on watch dials.
Ø 1791: J.F. Bautte founded the watch company that would eventually become Girard-Perregaux.
Ø 1807: Thomas Young invents the recording chronograph.
Ø 1809: Luther Goddard of Shrewsbury, Massachusetts is the first watch manufacturer in America.
Ø 1820: Thomas Prest registers a patent for the self winding watch.
Ø 1833: Antoine LeCoultre starts his own watchmaking business which later become Jaeger-LeCoultre.
Ø 1837: First Tiffany store opens.
Ø 1843: Adrien Philippe develops a watch with winding and setting through the crown.
Ø 1844: The start, stop, and reset chronograph is invented by Adolph Nicole.
Ø 1844: Antoine LeCoultre invents the millionometre.
Ø 1848 : Louis Brandt opens his own workshop in La Chaux-de-Fonds which eventually became the
Omega Watch Company.
Ø 1853: Tissot makes the first dual time zone watch.
Ø 1858: Minerva is founded.
Ø 1860: Heuer is founded.
Ø 1865: Zenith founded.
Ø 1881: Movado founded.
Ø 1884: Greenwich, England is officially named the zero meridian and used as the world wide recognized
basis of time zones.
Ø 1886: Geneva Seal established.
Ø 1894: Universal Geneve established.
Ø 1905: Hans Wilsdorf starts the Rolex Watch Company.
Ø 1914: Eterna introduces the first wristwatch with an alarm.
Ø 1918: Japan : Shakosha Watch Company opened. This would become Citizen in 1931.
Ø 1923: John Harwood is the first to mass produce a self winding wristwatch.
Ø 1924: Tokyo : Seiko brand name is launched by Kinttaro Hattori.
Ø 1926: Rolex introduces the first waterproof case called the "Oyster".
Ø 1929: First anti magnetic watch created by Tissot.
Ø 1933: Ingersoll introduces the "Mickey Mouse" watch.
Ø 1956: Rolex introduces their first model that displays the day and date.
Ø 1957: Hamilton introduces the world's first battery driven watch.
Ø 1962: Rado produces the world's first scratch proof watch called the "Diastar 1".
Ø 1962: ETA of Switzerland develops the first quartz battery operated watch.
Ø 1970: Hamilton releases the "Pulsar", the first electronic digital watch.
Ø 1972: Longines and Seiko introduce the LCD, (Liquid Crystal Display).
Ø 1980: Hublot founded.
Ø 1983: SMH of Switzerland launches the Swatch brand.
Ø 1985: Swiss Heuer Company merges with TAG to form TAG Heuer.
Ø 1986: Audemars Piguet introduces the first self winding tourbillion.
Ø 1991: Franck Muller founded.
Ø 1999: Casio innovates with the first wristwatch with a built-in Global Positioning System (GPS).
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THE WATCH INDUSTRY IN INDIA

India is an under penetrated market for watches around 27 of owns INDIANS watches total estimate
market as of 2005 volume -35 mn units and value : RS 2328 crs (USD 530mn) Vast proportion of the
Indian market is below Rs 500Market has been split into : low end mass market mid market premium

1.2 ABOUT TITAN -

Titan Industries is the world's sixth largest wrist watch manufacturer and India's leading producer
of watches under the Titan, Fastrack and Sonata brand names. It is a joint venture between one of India's
most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development
Corporation (TIDCO).[1] Its product portfolio includes watches, clocks, accessories and jewellery, in both
contemporary and traditional designs. It exports watches to about 32 countries around the world with
manufacturing facilities in Hosur, Dehradun, Goa and manufactures precious jewellery under
the Tanishq brand name, making it India's only national jewellery brand. It is a subsidiary of the Tata
Group. The Company was incorporated on 26th July, 1984 at Chennai. The Manufacture analog
electronic watches with a choice of over 150 designs. The company was promoted jointly by Questar
Investments, Ltd., a Tata Company with its associates Tata Sons, Ltd., and Tata Press, Ltd., and Tamil
Nadu Industrial Development Corporation, Ltd. (TIDCO). The main objective of the company is to
manufacture analog electronic watches with a choice of over 150 designs.

TITAN company collaborated with some of the company such as France

Ebauches(FE) of France, in (1984), Casio computer of Japan in 1986,Grant Walker, a U.K. based firm,
was to provide the necessary consultancy services(1991), In 2000, Pizza hut tied up with TITAN. In 1992,
it was also proposed to sell the brand name `Aqura' and the right to make Aqura products to Timex. In
1993, the name of the Company was changed with effect from 21st Sept. from Titan Watches, Ltd. to
Titan Industries Ltd.

In 1984, The Company undertook to set up a plant for the manufacture of quartz
analog electronic watches in the State Industries Promotion Corporation of Tamil Nadu, Ltd. Industrial
area at Hosur. In 1987, The Company established a manufacturing facility at Hosur for the manufacture of
components for watches in 1989, The Company set up a satellite case plant at Dehra Dun in Uttar
Pradesh.

In 1989 a new range of watches called `Aqura' was launched in December. In 1992 June
150 new model of new range name as RAGA was introduced. In 1992 `Spectra' a range of watches in
steel and gold plated was reintroduced with a new look in August. In 1994 introduced TANISHQ range of
watches made of 18 carot gold with precious stone. In 1994, also introduced Insignia range of watches for
European market. In 1996, The Company has introduced new economy ranges watches called
Sonata.Tanistiq's 22 Karat ethnic Jewellery during the year. In 2000, Titan Industries has announced the
launch of Cyber range of digital clocks. Titan Industries unveiled a new range of wrist-watches, called the
Classique range, for Corporate Executives. Titan Industries has announced a new range of Fastrack
watches for young women in the city In 2001,Titan Industries Ltd. has launched three new collections of
its popular Dash brand of watches for kids -- Popeye, Digital and Lumibrite Relaunches 'Raga', the
women's watch range. Rolls out new range of designer eyewear in Chennai Titan Industries on July 22,
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2004, launched the Flip collection A dual-faced watch that incorporates two watch movements embedded
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launches Crown Collection watches Titan Industries launches Cal Track 2005 Titan re-introduces
Fastrack range of watches.

STRENGTH

Titan retained no .1 brand in the brand equity survey (a&m magazine), superbrand 2003,brand equity
award ,images fashion award integrated manufacturing and world class design (collaborated with
NID)skills powerful distribution and customer service network large and hi-quality retail network: world
of TITAN over the time successful positioning of their brands with suitability celebrities Successful
identified changing consumer tastes about watches and posiotned it as lifestyle and fashion product
branded chain outlets :-6000 outlet across the country 680 service centre

WEAKNESS

Still waterproof watches are not in the portfolio of Titan non availability of cheaper raw material from
domestic source Titan weakness is that titan has not focused on lower end level in rural area which is
contributing about @40% share in Indian volume Spurious watches

OPPORTUNITY

Branded jewellery is less than 2% of the overall market Importance of jewellery to Indian consumers
Globalalisation and revamping of” brand India” and “Indian brands “Huge market in the exchange
business Marketing of other brands in consumer attitudes Increasing penetration will drive growth of low
end and mass market segments Low penetration level [-27own a watch] Higher multiple ownership will
drive growth of mid upper segment

THREAT

Luxury watches are highly cyclical Changing trends in fashion Liberalized import of watches in the exim
policy allows major international players to enter in the high end segment Raw material costs are said to
be high because of high import duties Unorganized players out of 28 million pieces [80% of these below
rs 1000) that are sold annually .18 millions are sold in the organized sector

The entire evaluation of strategies are being carried out on the basis of 4 p’s of the marketing pieces

v Product
v Price
v Place
v Promotion

ENTRY level strategy –

India is technical collaboration with French Ebauches provide the raw material (quartz)and installed
plant with capacity of 2m watches Introduced 70 model for different classes of the market against 40 of
HMT at initial period to attract the lower end segment , Titan underpriced the replacement cost for repair
and battery to break penetration of HT in this segment
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PRODUCT AND PRICE STRATEGIES

Successfully identified the changing trends in the lifestyle of the Indian consumer and launches the
relevant brands over the period of time through exclusive product quality and finishing titan used the gold
and stainless steel Strong brands for each segment of the market which suite their need and traits for
various age group for various type of access /occasion for all level of community people they made their
brand

DISTRIBUTION STRATEGY

Titan successfully identified consumers psyche about the outlets of watch as “watch store “ Titan by the
exclusive outlets for selling the brands of titan called “The World of Titan “changed the perception of
consumer delivery was done on day to day basis MIS used to identify the distribution system since 1999
Titan watches are sold through over 9000 outlets in over 2300 cities and internationally in over 30
countries including the UK ,Spain Greece and countries in the middle east and Asia pacific

APPLIED THREE LEVEL STRATEGIES

v Promotional strategies
v International strategy of titan
v Distribution strategy

Apply 5 force analyses to Indian watch industry:-

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RIVALRY AMONY COMPETITORS (HIGH)

So many foreign player are in competition-- E.g. Citizen, Casio, Rolex, omega, Tissot, Tag longiness
Smuggled watches gives the strong option to the buyers for the lowers segment market for those who are
price sensitive local players also create obstacles

THREATS FROM NEW ENTRANTS (LOW)

Barriers of entry deep rooted brand appeal strong government regulation switching costs

THREAT FROM SUBSTITUTE PRODUCT (HIGH)

Mobile phones (close substitute), also positioned on the base of time keeping device e.g. Nokia 1600,
1110ietc Handset market is growing 45 % while in watch market is growing at 27% Wall clock &
computer (far substitute)

BARGAINING POWER OF SUPPLIER (HIGH)

High import duty backs titan to get cheaper raw material, which increase bargaining power of Ebauches
(French supplier) Price of gold is highly clical so it increase bargaining power of supplier, bargaining
power of buyer (low), Product uniqueness, Large customer

CONSUMER SEGMENTATION ON PRICE BASIS

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COMPETITORS
Titan sells around 7 million watches annually , Timex sells under 1.2 million watches ,other brand (all put together sell less
than .5 million watches The Japanese –citizen Casio have been present ,while Seiko has not made any significant movies in
INDIA THE Swiss –Rolex ,Omega ,Rado, Tissot Taglonginess, Cartier ,ebel ……and a host of others The fashion brands –
Espirt Giordano ,Tommy Hilfiger ,Calvin klien , fossil swatch ….and many more have recently entered the Indian market

2 NEW INITIATIVE BY THE BRAND EXTENSION

3 THE EYE WEAR BUSINESS
4 Started in 2004-05 by marketing sunglasses under the Fastrack brand Targeted the youth segment Achieved a sales turnover of
over 12 crores in 2005 06 Pilot project for prescription eyewear planned during this year with outlets to open in q4

2. PROJECT DESCRIPTION:-
Brand Image of TITAN in small cities has designed and developed for the
TITAN companies to know about the image and brand value of the TITAN companies.

This project is to get the real image of the company in small cities so that
they can improve the performance in the small cities. This research project is show how the gender, age,
mentality, their profession, their income level, effect the purchasing of the watches

2.1 OBJECTIVES:-
v To know the Promotion Technique of TITAN.
v To know the Purchasing Power of customer.
v To know the Craze of watches now.
v To study the Behavior of retailer.
v To know the Image of TITAN in small cities.
v To get real demand of watches in small cities.

2.2 NEED OF THE STUDY:-

In India, there are four metro cities and only 15-20 big cities that contain only 25% of total
India population and about 75% of the population live in small cities. If we not give attention of this
major population then any company cannot be successful in market.

This type of study is very important for the TITAN Company. In this study, consumer research
done on brand image of about 100 customer of various tastes and preferences and various customer give
their various view about the company and about its product and this project include actual fig of various
data which obviously is very much imp for any of the company this data is also need by the company so
they can change their promotions and their marketing technique according to the need of the market and
also can varying the product this project is not only include customer view as well as retailer view and
this whole data is processed in this project and provide various information to the company by the use of
various pie charts which give the easily readable data to the company . Such as and this data also
processed in this project
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2.3 SCOPE OF THE STUDY :-

The scope of this study is very much because it include all the problems
of the company that face in small cities. In India almost 40 % of the population living in semi urban area
or small cities so this is very important for the company to know the image of their company or other
important data included their age level , their income and other which important question which is
necessary to know the company so that company can implement their marketing and promotion
techniques according to the need of the company.

2.3 LIMITION OF THE STUDY:-

In this research sample size is such a large so we
cannot survey the whole population it need such a large amount of resources in terms of money and physical
resources or man power by taking just a small amount of survey and by using with any of the technique we
cannot find the exact problem or exact situation so that correct verification and correct measurement can be
done by company .

3. LITREATURE REVIEW:-
Initial time used as time keeping device but now trend changed and
perceived as life style product turned as female and male necessary and use different watches for
different occasion analog and digital watches are also use for formal and office purpose variants and also
to promote these industry Govt. made it liberalized opening of gates for MNCs to operate in India
economic benefit to these companies is globalization, Increase in the ppp of Indian people, Increase In the
disposable income technologically these Industry use advances techniques and made new product such
as:-analog watches, quartz watches ,cad/ cam is being used as per WTO guidelines It opened flood gates
of completely finished watches in India As per report of Indian commerce ministry , wrist watches in
millions increased from .23m in 1999 to 2.1 million in 2003 – 2004 Due to this the average unit price
decreased from rest 523 to 294 indicating a steep decline in the international prices Increased proliferation
of international brands. Most of the brands like sonata and Fastrack watches are made from outsourced
components Titan refuses to enter in the rural where a the market exists for good quality, rugged and
reasonable priced watch . This is claimed on the basis of increase in the ppp of rural India Threat from
foreign labels (Swiss authorities) following the removal of quantitative restrictions on the imports of
watches .Titans market share in the mass market , through its sonata brand , is only between 18 to 20
percent Established Distribution channel was one bigger issue for titan in abroad since many of them
didn’t want to keep Indian brand and demanded six month credit To do international business under its
own brand name Saudi Arabia and other golf countries middle east countries market demand are for
costlier watch and presently Titan has gold finished sub brand classic and royal (golden dial and strap
watches ) but having limited range and model collection was one important issue in international business
for falling the mission objectives at short term Government exim policy for foreign players to set up the
manufacturing plant in India (In scribd by Anand verma)
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Titan is a high quality, high growth domestic consumption story. Its offers strong brand equity, widew w . A B B Y Y .c o m
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distribution & high quality mgmt coupled with strong structural growth drivers.

Strong earnings outlook; ahead of consensus

We forecast Titan’s EPS to grow 44% in FY08E, 43% in FY09E and 53% in FY10E. The acceleration in
FY10E assumes turnaround in precision engineering and take-off in eyewear. Assuming this does not
happen, we estimate FY10E EPS will nonetheless grow strongly by 40%. Our estimates are 7-29% ahead
of consensus in FY09 and FY10.
We expect Titan’s watch business to benefit from mix up-trading and distribution moving more towards
high margin channel of “World of Titan”. In jewelry, we expect volume growth to remain explosive at
~40% as Titan forays into second tier cities with the new value format “Gold Plus”. In the premium
“Tanishq” format, larger stores and higher efficiencies should drive margins. Lastly, we expect the new
venture of prescription eyewear to take off & account for 4% of EBITDA in FY10E.

Key issues: higher gold prices and rising competition

In India gold price is invariably a ‘pass through’ for jewelry retailers. But sharp rise in gold prices tends to
hit jewelry demand. We contend this is a macro risk but our investment argument for Titan is the shift of
jewelry sales from unorganized market to organized market. The latter accounts for just 3.5% of category
sales. Secondly, competition is rising but the market pie is large and Titan is far ahead in terms of
distribution, consumer understanding and retailing learning curve.

Company Description
Titan Industries, a Tata Group company, is India's leading watches and jewelry retailer. It has a strong
brand franchise and a wide distribution network of 300+ exclusive brand outlets. The company has
recently made a foray into prescription eyewear.

Titan is India’s largest watch and jewelry manufacturer and retailer. Its brand Titan, is synonymous with
watches across urban and semi urban India. In jewelry, its brand Tanishq symbolizes trust to the urban
Indian woman. This is a very critical intangible for the company as jewelry in India is sold primarily on
purity and weight of gold and prices fluctuate daily with change in gold price.

The Titan story so far….

Starting in 1987, Titan displaced earlier established companies by 1992 to become India’s largest watch
company. This was accomplished through wider product range; effective advertising and watches
positioned as more than just utility products. Tata pioneered the branded jewelry concept in 1996 and
after many years of gestation and teething troubles arrived at an appropriate business model by around
FY05. Since then jewelry business grown ~ 4 xs. We estimate from FY08 onwards jewelry EBITDA will
almost equal watch EBITDA.

…And the story going forward

Premiumization in watches – Watches in India is a price sensitive category with more that 80% of
watches selling at <US$25/unit. For Titan, almost half of its volumes are sold at <US$25. But up-trading
is beginning to happen with watches being positioned as fashion accessories. We forecast Titan’s
“premium” portfolio to grow faster leading to higher average realizations and higher margins. Watch
distribution moving to higher margin channel – Titan sells watches through a mix of exclusive brand
outlets (EBOs), multi brand outlets and dealers. EBOs offer the highest margins and this channel is
growing the fastest. Over the next three years we expects number of EBOs to rise by 33% and account for
almost two-third of Titan’s watch sales. Tanishq – focus on higher same store sales growth – On a pan
India basis Tanishq is today the largest branded jeweler but on an individual city basis it is invariably
much smaller than the city market leader. Management’s focus now is to set up larger Tanishq stores in
the existing cities and offer wider variety to drive higher footfalls. We expect this to lead to higher store
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efficiencies. Tanishq – rising share of higher margin studded jewelry – Indians have traditionally
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gradually, in top tier cities where disposable incomes are rising strongly and hence demand for diamond
and other precious stones jewelry is growing. For Tanishq, studded jewelry currently accounts for one
third of sales. We believe this share will rise though to be conservative, we have not built this in our
earnings model. Gold jewelry moving to second tier towns – Titan has recently launched a new value
format, Gold Plus in second tier cities. Product offerings will be limited to pure gold jewelry to drive
volumes from a consumer base that is less focused on design and more on investment. We estimate Gold
plus will account for one third of Titan’s jewelry sales by FY10. Prescription eye wear – This is Titan’s
latest venture, currently in pilot stage. Management estimates market opportunity to be Rs24bn and
expects turnover of Rs3bn by FY10E with margins similar to watches. We have conservatively built a
turnover of Rs2bn and margin at half of watches in FY10E.

Our Buy rating is led by the following:

Huge market opportunity and structural growth drivers – In watches, we expect Titan to ride the up-
trading trends. In jewelry, it benefits from a huge structural growth driver. Organized jewelry sales
account for only 3.5% of total jewelry sales in the country. Growing nuclear families, more mobility and
more focus on design is driving consumers away from the “family jeweler” to organized retail formats
such as Tanishq. Strong brand name and early mover advantage – Titan is synonymous with watches. In
jewelry it has built its reputation on trust and its expanding designs ensure that store footfalls keep
growing. Gold purity has been a key concern for consumer buying jewelry from neighborhood stores.
Titan has been a pioneer in addressing this issue and hence builds very powerful brand equity.
Management has track record of pioneering new businesses – We have seen this in watches and jewelry
and we believe this makes the company very well positioned to succeed in the new prescription eyewear
business. Strong earnings growth, higher than consensus – We forecast Titan’s EPS to grow 44% in
FY08E, 43% in FY09E and 53% in FY10E. The acceleration is led by eye wear kicking in and precession
engineering turning around in FY10E. We estimate we are 7-29% ahead of consensus in FY09 and FY10.
Reasonable valuation – Titan trades at P/E of 27xFY09E and 18xFY10E. This implies a premium to the
Sensex of 40% in FY09E and 7% in FY10E. We believe the strong growth outlook underpins this
valuation. Recent stock underperformance – Over the last six months Titan has performed in line with the
market and over the last three months it has underperformed by 5%. We believe this presents a good
buying opportunity

New competition in watches – We see a number of new names offering watches at all price points – from
~Rs100 at the bottom end to super premium in luxury category. Titan’s target market is the middle
segment – Rs500-30,000. This market is growing and Titan is far ahead of competition in terms of
distribution reach and after sales service. Still, if Titan’s volume growth in watches were to be lower by
1% than our estimates in FY09, it will impact EPS by only 0.5%. However, if margins were to be lower
by 1%, impact on EPS is 3%. New competition in jewelry – Tanishq success is propelling a number of
Indian jewelry exporters to foray into branded domestic retailing. We believe Titan is miles ahead of
competition in terms of consumer understanding, retailing learning curve and a powerful brand name.
Higher gold prices tend to hit jewelry demand – Indian jewelry consumers are highly price sensitive and
sharp gold price run up tends to hit demand. We contend this is a macro risk but our investment argument
for Titan is the shift of jewelry sales from unorganized market to organized market. The latter accounts
for only 3.5% of category sales. Having said this, a 1% lower jewelry volume will impact our earnings by
only 0.4%. However, a 1% lower EBIDTA margin in jewelry will impact earnings by 8.6%. What if the
new eyewear business flops and precision engineering does not turnaround? – Assuming no profit or loss
from these businesses, we estimate our EPS in FY10E will be lower by 9%. However, EPS growth would
still remain strong at 40% instead of our base case of 53%. We note we would still be 17% ahead of
consensus in FY10E.■ Titan does not benefit from up-trading as ■ We have built in an improvement in
watch realizations (7% p.a.) as Titan should benefit from foreign brands capture the entire premium the
up-trading. Segment growth. As a result watch realizations remain flat. Watch volumes continue to grow
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at a healthy ■ with 46% of the total watch market already in ■ Titan is likely to focus on mix
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improvement rather than volume growth in the mass segment. Pace as more people in the middle andw w . A B B Y Y .c o m
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lower the organized segment, watch volume we est. volume growth in premium segment to income levels
buy branded watches. growth slows down. Be 14% while in mass segment at 10%. Organized retail
penetration in jewelry is the ■ High gold prices impact jewelry demand ■ Jewelry sales should rise at 45-
50% p.a. for the company driven by higher volumes from plain lowest across categories at only 3.5%.
Hence resulting in modest growth in sales for the gold jewelry as the company expands to Tier-II huge
opportunity for growth for the Company in cities through Gold Plus. Growth in Tanishq may Tanishq has
the Tata parentage and trust built ■ New emerging competitors like Gitanjali, decelerate but will remain
strong. with the consumer. It is the only brand of Rajesh Exports etc improves their product significance
with a nationwide presence. Will quality and provide strong competition to continue to benefit from boom
in branded Tanishq. Jewellary space. Mix improvement will result in margin gains. ■ Rent and salary
costs are rising sharply in ■ We est watch margins to improve from 17% to Sonata’s margins are half that
of Titan. 20% over FY07-10 helped by mix improvements retail and hence may put additional pressure
and new stores achieving break-even levels. New stores being opened in malls will start to on margins.
Break-even adding to margins. ■ Higher share of lower margin pure gold jewelry from Gold Plus drives
margin down ■ Margins decline over FY09-10 due to higher share of Gold Plus. We have assumed share
of studded jewelry remains stable in Tanishq sales. ■ Titan has already exhibited its strong execution new
line of business and is different from capabilities with the establishment of jewellary and watch segment.
Titan may not business. We believe the company would be able find it easy to establish itself in this to
achieve success in prescription eyewear as business well. ■ We have assumed break-even in FY10 at
EBIDTA level from this business. Order flow slows down. ■ We expect the division to break-even at
EBIDTA Gets more orders in low margin automotive level in FY09 and obtain 10% margin in FY10 on
sales of Rs2.5bn – in line with management space resulting in longer time to break-even guidance.
Trading at the top end of its historic PE band ■ Valuations not expensive considering the growth
potential. Trading at a FY09 PEG of only 0.63x. Expensive compared to global peers on absolute PE
basis ■ Our PO of Rs1,850 is based on DCF valuation.Jewelry margins ■ Margins improve driven by
higher share of
high margin studded jewelry

Eyewear

■ No nationwide branded player in this segment. Huge opportunity for growth. ■ Titan already has a
presence in fashion eyewear through Fastrack sunglasses and hence is not completely new to this
segment.Precision engineering Valuations■ Gets orders in the high margin aerospace segment, resulting
in high margins and early break-even■ Strong secular growth story and consumption ■ boom in the
country should continue to drive ■ the re-rating. ■ 50% premium to Sensex, which is near the lowest in
past 2 years, might expand. Titan has far stronger earnings growth potential and significantly higher RoE
than Sensex cos.

Management strategy
Jewelry - Tap the under-penetrated market
The US$18bn jewelry market in India is hugely under-penetrated with organized retail accounting for
only 3.5% of sales. Titan through its brand ‘Tanishq’ is the only branded name of significance with a pan-
India presence. Management’s focus is to capture more of this unorganized market and drive volumes up.

Tanishq – Focus on larger stores, market share gains

The rollout for Tanishq stores from hereon may be relatively slower as they have already established a
wide geographic presence with 100 stores currently. Management focus here is to improve on the same
store sales growth currently running at over 30%. While Tanishq is the No. 1 national jewelry brand, it is
not the leading jeweler in any of the cities it operates in. Invariably it's a local jeweler who has the lead
position. The target for management is to make Tanishq the leading store in each of the cities it operates
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in. This will be achieved through moving to larger stores in a nearby location (local leader normally has a
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larger store) and more frequent launches of new designs and collections suited to local tastes andw w . A B B Y Y .c o m
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preferences.

Gold Plus – New format, focus on volume growth Titan has launched ‘Gold Plus’ in the largely untapped
mass segment. Gold Plus sells mostly plain gold jewelry which fetches lower margins than Tanishq,
which is positioned at the premium end. Management intends to rapidly roll out Gold Plus stores in Tier-
II & III cities. The target is to reach 30 stores by FY08 end from 10 at the end of FY07. We expect Gold
Plus to account for onethird of jewelry sales by FY10 Chart 5: No of stores – Tanishq & Gold Plus 140
120 100 80 60 40 20 FY06 FY07 FY08E Gold Plus

Watches – Gain from ‘premiumisation’

Unlike jewelry, watch is fairly well penetrated category with organized retail accounting for 46% of
watch sales. The key growth driver for this category is uptrading to premium watches and this is what
Titan aims to benefit from. We expect Titan’s premium brands (> Rs1,000) to grow at a faster pace (14%
p.a.) than mass brands (9-10% p.a.) over FY08-10.

New collections, sub-brands in premium category

Management aims to focus on launching new collections in the premium category. These collections
would be targeted primarily at the young, fashion conscious consumer who owns multiple watches, is an
impulsive buyer and is not very price conscious.Titan launched ‘Xylys’ a premium ‘Swiss-made’ watch
brand last year. The company has launched a number of sub-brands / new collections under the ‘Titan’
umbrella over the last few years such as Raga, Regalia, Gold & Steel, Edge and Bandhan. We expect the
trend to continue going forward with more collections designed for the premium segment.
Realizing that the malls attract large footfalls and this is especially true for the target segment which Titan
intends to focus on, Titan plans to open most of its new ‘World of Titan’ stores in malls. We estimate the
proportion of stores in malls to rise from less than 10% in FY06 to about one-third by the end of FY08.
Stores in malls are expected to sell more of the premium range and hence average realizations for watches
should rise for the company and so should the margins. Further, most of these outlets will be company
owned unlike the older ones which are mostly franchised

Licensing arrangements with premium global brands

Titan has recently entered into an exclusive licensing arrangement with Hugo Boss for retailing of
watches in India. These watches would be in the range of Rs13,500-50,000/- and would be sold through
up-market department stores and select World of Titan stores. Titan has a similar licensing arrangement
with Tommy Hilfiger as well. Sales from licensed brands is currently less than 10% of its total watch
sales and retail margins are similar to what it earns from its own brands.

Eyewear – New growth engine

The company has identified ‘prescription eyewear’ as the new potential growth engine. It has opened 6
pilot stores under the brand name ‘Titan Eye+’. The company plans to aggressively roll-out the stores
only in FY09 once it is through with the learning curve. Titan already has a presence in eyewear segment
through its line of ‘Fastrack’ sunglasses. This will compliment well with its foray into prescription
eyewear and will help position ‘Titan Eye+’ as a one-stop shop for all optical needs. Management intends
to roll out 250 outlets and achieve sales of Rs3bn by FY10. The size of eyewear market in India currently
stands at Rs24bn and is growing at 10-15% p.a. This implies a target share of about 10% by FY10.

Global ambitions
Titan plans to open two pilot jewelry stores in US – in Chicago and New Jersey, to tap the large Indian
community residing there. Further roll out of stores would depend upon the success of these two stores.
Our cap estimate of Rs550mn p.a. includes cap on these stores. However, we have not assumed any
upside from these stores in our profit estimates. Titan had earlier (in the nineties) made a foray into
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European watch market which turned out to be unsuccessful. However, unlike its European venture, the
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foray into the US jewelry market is targeted mainly at the Indian community whose tastes andw w . A B B Y Y .c o m
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preferences, especially with regard to traditional jewelry, may not be very different from that of an Indian
consumer. Further, unlike in the past, the company is taking a very cautious approach and starting with
only two pilot stores.

The company is also contemplating opening an assembling plant in Vietnam which enjoys duty benefits
under the SAFTA. This would give company access to markets in South-east Asia and Pakistan. As the
plan is still on the drawing board we have not built any upside from this in our model. Rising disposable
incomes. Change in consumer preference towards branded products. More discerning consumer with
rising awareness about quality issues with the traditional ‘family jeweler’. Rising female working
population resulting in increased purchasing power.

Key issues
Intensifying competition – Large jewelry exporters like Rajesh Exports and Gitanjali Gems starting to
aggressively pursue domestic jewelry retailing. Fluctuating gold prices – Jewelry demand in India has
been price sensitive. Artificial / Imitation jewelry emerging as a substitute to gold/diamond jewelry.

Industry size and structure

India is the largest gold jewelry market in the world… The total gold jewelry retail market in India has
been pegged at over ~700 tonnes per annum (~US$18bn). This makes India the largest gold jewelry
market in the world accounting for 23% of the total demand. About 83% of jewelry sold in India
comprises plain gold jewelry. In terms of total jewelry market size (including diamond, platinum etc) US
ranks first with ~30% share, with China and India coming next with 8-9% share. Jewelry has a cultural
and religious significance in India and hence the high consumption. Chart 9: Annual demand for gold - 10
yr avg (1996-2005)
UAE S. Arabia Turkey China USA India 0 200 400 te 600 800 India China
Source: World Gold Council, Merrill Lynch
…and is growing Jewelry demand in India (in volume terms) has shown a secular rise over the last 6-7
quarters despite gold prices having risen nearly 50% during the same period (Refer Chart below). This is
contrary to the long term trend which does show a moderation in jewelry demand with rise in gold prices.
Clearly, rising disposable incomes and healthy economic scenario is helping sustain demand at such high
levels. In 2QCY07 (the latest quarter for which data is available) demand was more than twice that of the
quarterly average for last many years. Highly fragmented market, organized retail share at 3.5% the
jewelry market is highly fragmented in India with the local ‘family jeweler’ dominating the market. There
are as many as 0.3mn independent / local jewelers and hardly any pan-India branded jeweler with the
exception of Tanishq. These local jewelers have long established relationship of trust with the consumers
in their neighborhood and hence they continue to dominate the market. As a result, organized retail
penetration at 3.5% is among the lowest in the jewelry segment.

Titan’s competitive edge in jewelry

Titan with its brand Tanishq is the only branded jewelry player with a pan-India presence. Tanishq has
40% share in branded jewelry segment in India. Strong brand franchise built on ‘trust’ The Company has
a very strong domestic brand franchise. Its brand ‘Tanishq’ has met with huge success in terms of
building ‘trust’ among consumers. This is extremely essential given that jewelry is widely regarded as an
investment vehicle in India and purity of gold becomes very important issue. Coming from the Tatas’
stable (one of the most reputed business families in India) has played a major role in building this faith.
Expansive distribution network Titan has a wide distribution network which includes 100 Tanishq stores
across 60+ cities. Such a wide consumer reach gives a strong competitive advantage to Titan.
Understanding of varied consumer tastes and preferences In jewelry, tastes and preferences of consumers
vary widely across regions. Titan has over the years built this understanding and more importantly been
able to establish artisan base across regions to source the right product suited to local tastes. First mover
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advantage The company enjoys the first mover advantage in branded jewelry retailing. In our view,
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replicating the brand franchise and distribution network which Titan has built over the years, is a difficult,w w . A B B Y Y .c o m
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expensive and time consuming exercise.

We note that competition in the jewelry space is intensifying. Reliance Retail plans to make a foray into
this space with 300 stores over next 3 years. Gitanjali Gems and Rajesh Exports (large jewelry exporters)
too have aggressive plans for retailing in India. We believe branded jewelry is still largely an untapped
space (< 4% of total market is organized) and hence there is enough space for multiple players. Hence, at
this point in time, given Titan’s core strengths, we will not be too concerned about the competition. Table
6: Competitive landscape in jewelry Segment Players
Unorganized local players 0.3mn independent jewelers Organized regional players Tribhuvandas Bhimji
Zaveri (Mumbai) Notandas & Sons (Mumbai) P.C. Chandra (Kolkata) Mehrasons Jewellers (Delhi) MP
Jewellers (Kolkata) Organized national players Titan Industries Gitanjali Gems Rajesh Exports Sheetal
Manufacturing Co Rosyblue Group Pantaloon Retail
Source: Industry, Merrill Lynch

Tanishq, Gold Plus D'damas, Asmi, Sangini, Gili, Nakshatra Oyzterbay, Subh, Laabh Kiah Orra,
Intergold Navras

Watches
Key growth drivers
Rising disposable incomes. This should result in up-trading to premium watches. Watches increasingly
being viewed as a fashion wear rather than utility wear. This is resulting in multiple possession of watches
and higher frequency of buying.

Key issues
A highly penetrated segment and hence the growth potential is not as large as in jewelry. Growth
potential, especially in the mass segment, is also limited by the fact that watches have lost their utility
value due to advent of mobile phones. Intensifying competition with many international players making
an entry in the premium segment.Highest organized retail penetration in watchesThe total size of the
Indian watch market is estimated at Rs40bn (Indian Retail Report 2007). Organized retail penetration at
46% is the highest in watches among various consumer categories.Titan dominant player across all
segments.In the organized watch market, Titan has a dominant 65% market share (in value terms). In the
overall market, Titan’s market share is 23% (by volumes). Timex – the No 2 player has 5% share.Mass
segment The lowest end of this segment is dominated by the unorganized players. Titan through its
economy brand Sonata has 13% share (by volumes). Sonata is the only brand in the economy watch
segment with a double digit market share. The other players in the mass segment include Timex, HMT
(has seen a steady decline in market share over the last decade), Maxima, Classic and TimeWell.
Premium segment In the premium watch segment (Rs1000-5000 per watch), Titan has 67% market share
(by volumes). The only other player of significance in this segment is Timex. Super-premium segment
The super-premium segment (above Rs5,000 per watch), though still small, is dominated by foreign
players. The Swatch group has six brands in India – Omega, Rado, Longines, Tissot, Briguet and Swatch.
Besides, the other players include Citizen, Seiko and Espirit. The foreign players have met with limited
success in India primarily due to lack of distribution reach. With the prolific growth in malls and premium
department stores, growth of these premium watch brands should pick up. Titan launched its Swiss made
brand called Xylys in this segment in 2H’06 and has met with decent success. Titan is also the exclusive
licensee for Tommy Hilfiger watches in India and has recently signed a licensing deal with Hugo Boss as
well to sell its range of super-premium watches (in the price segment Rs13,500-50,000).

Company Overview
Titan Industries is a part of the Tata group – India’s premier business group. It is India’s largest jewelry
and watch manufacturer and retailer with dominant market share in both the categories. The company has
also recently forayed into prescription eyewear. Titan also has a small B2B division which manufactures
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and markets precision engineered components and sub-assemblies, utilizing highly specialized skills
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inherent in watch manufacturing. Titan started in 1984 as a joint venture between the Tata group and thew w . A B B Y Y .c o m
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Tamil Nadu Industrial Development Corporation (TIDCO). Tatas, as co-promoters, currently own 25% of
the company, while its joint-venture partner TIDCO holds 28%. The balance is free float. The day to day
operations is headed by Mr. Bhaskar Bhat, Managing Director. The Board is represented equally by the
two promoters – Tatas and TIDCO. However, as a matter of policy, TIDCO does not interfere in the day
to day affairs of the company. We estimate jewelry to contribute 67% of sales in the current fiscal.
Watches, however, is likely to have a higher share in profits, constituting 54% of EBIDTA. Refer Charts
below.Strong brand franchiseTitan has a very strong brand portfolio in both watches and jewelry and this
is its greatest strength. In watches, it has brands which straddle across the price segments and target
groups and each of them is dominant in the segment in which it operates. In jewelry, through its brand
‘Tanishq’, it has been able to create trust among the consumers which is extremely essential for success in
Indian jewelry market. Gold Plus is its new jewelry retail format positioned in the mass end. Table below
gives a snapshot of the brand portfolio. Table 7: Brand portfolio Brand About the brand WatchTitan
Sonata Fastrack Xylys Tommy Hilfiger Hugo Boss Flagship brand. Various sub-brands / collections -
Nebula, Raga, Regalia, Gold & Steel, Edge, Bandhan India's largest selling watch brand Youth brand for
personal accessories - watches & sunglasses Swiss made - launched in 2HCY06 Exclusive license for
India Exclusive license for India

Price Segment
Mid-premium (Rs1,000-8,000) Mass (<Rs1,000) Rs500-2000 Super-premium (>Rs5,000) Super-premium
(>Rs5,000) Super-premium (>Rs13,50050,000) Premium Mass

Target Group
Middle & upper class who already own a watch First time watch users Youth, trendy college students
Upper middle & upper class fashion conscious Fashion conscious urban youth Upper class

Jewelry
Tansihq Gold Plus Flagship jewelry brand Pure gold jewelry brand Middle & upper class urban Semi
urban / rural Manufacturing capacity and sourcing Watches – The watch manufacturing capacity is 6 mn
pieces per annum and the assembly capacity is 13 mn pieces. While the manufacturing capacity is
unlikely to change in the near-term, the assembly capacity will keep on increasing with sales. The intent is
to outsource the manufacturing of most of the mass segment watches. Currently, 70% of Sonata
components are outsourced while for Titan only 10% is outsourced. Assembling is all done in-house.

Jewelry – Jewelry manufacturing is a highly skilled job and is highly labour intensive. Further, it requires
strict controls as gold needs to be released to the craftsman or ‘karigar’ for manufacturing jewelry. The
company has set up special ‘karigar parks’ at Hosur for this purpose where in addition to keeping
controls, adherence to quality standards is ensured. Further, craftsman across different regions specialize
in different types of jewelry. Hence, apart from its own manufacturing base, the company needs to
supplement its collection by sourcing from karigars across various regions.

An expansive distribution network

Watches – There are multiple distribution channels for watches (Refer Chart below). About half of the
sales come directly from the retail outlets (owned / franchised, exclusive / multi-brand) while the other
half is accounted for by ~10,000 independent dealers. Jewelry – Unlike in watches, entire jewelry sales
come from retail outlets, which can be company operated, management agent based or franchised. Most
company operated outlets are on lease. The difference between management agency and franchise is that
in case of the former the stock lies with the company and the agent gets paid on some ‘fixed plus
percentage of sales’ basis. In the case of later, the stock is sold to the franchisee. Chart 14: Distribution
channel for Titan
Titan Distribution Channel
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Watches Company operated (9) Exclusive brand outlets World of Titan (209) Franchised (200) Tanishqw w . A B B Y Y .c o m
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(88) All franchised Multi-brand outlets Time Zone (123) In JewelryExclusive brand outlets Gold Plus
(10)Company operated (9) Department Stores Mgmt agent based (35) Dealers (# ~10,000)All
franchisedFranchised (44)Institutional & CSD (for defence)Titan Industries (TTNIF)
Our PO of Rs1,850 for Titan is based on DCF valuation. This is based on explicit forecasts till FY10 and
thereafter average free cash flow growth of 18% till FY17. In addition, we take a terminal growth rate of
5% and WACC of 11%. At our price objective of Rs1850, Titan will trade at 36xFY09E and 24xFY10E.
Risks are jewelry demand getting impacted by rising gold prices, intensifying competition and execution
risk in eyewear.(Manish sarawagi Research analyst Dsp merill launch INDIA, Vandana Luthra, Research
analyst, Dsp merill launch INDIA)

3 METHODOLOGY:-
In this part the methodology used for conducting this research will be presented. First he
research purpose will be discussed, followed by what kind of research approach is used. After this the research
strategy and data collection method is being discussed, as well as sample selection and analysis of data. Finally,
the quality standards will be discussed.

3.1 PURPOSE OF THE RESEARCH:-

Research can be divided into different categories of studies. The different types of studies mentioned by the
authors may be categorized into following three groups

· Exploratory research
· Descriptive research
· Explanatory research.

In my project I am using Descriptive research as I’ll describe that my whole study is on topic of Brand image
of Image of TITAN in small cities and it include the answer of all the question including what age group like
which type of Brand, which type of style, which income group is effected and like to purchase TITAN watches
that company needed in figures as closer as possible and try to analysis it in simple way and show in pie charts
as clear as possible

3.2 RESEARCH APPROACH:-

Definition of qualitative versus quantitative research explains the
researchers approach to the study. Yin (1994) also mentioned; when conducting research there are two different
methods that can be used; Qualitative and Quantitative. These methods refer to the way the researchers’ treats
and analyses the collected data.

· QUALITATIVE RESEARCH :-
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Qualitative research is less formal and based on unsystematic and
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answers. Qualitative verbal analysis is often used in order to gain better understanding.

· QUANTITATIVE RESEARCH :-
The quantitative research is based on numerical data, which then
are analyzed and presented in figures with statistics. For the reason that the quantitative research often is more
structured than qualitative one, the planning of quantitative research is more standardized. A positive aspect of
the quantitative approach is that it is rather easy to generalize from the gathered information.

3.3 RESEARCH STRATEGY:-

According to Yin, there are five research strategies to choose among when
conducting social science. These are experiment, survey, analysis of archival information, histories and case
studies. Each strategy has advantages and disadvantages and can be used for the same research purpose. The
difference between the strategies is the different way of collecting and analyzing the empirical evidence.

According to Yin the differences between the strategies depend on three conditions:

· The types of research question.

· The level of control investigator has over actual behavioral events.
· The focus on contemporary as opposed to historical phenomena.

Relevant situation for the research strategies are illustrated in figure 3.1.

My research based on survey in small cities including close ended questionnaire in which I am trying to include
all age group and all income group of people so that my research is not restricted with only limited ideas I am
trying to get the exact market information so company can easily use the data and for this reason I am also
including view and idea of small retailer who is big source of exact information about any of the company
product

3.4 DATA COLLECTION METHOD

To be able to understand the research area more in detail empirical data must be collected. There are two
different types of empirical data that can be collected: primary and secondary. The primary data is collected for
specific problems, while the secondary data is collected for more general purpose.

When collecting empirical data, the researcher has to choose between using question methods; like questioners,
personal interview, using observation or documents. The questions are often less structured in a questionnaire
and the respondent answer to them without any explanation and without any influence from the researcher’s
part. However, by using telephone or personal interviews the researcher can pose more complex questions and
explain possible misunderstandings. The duration of an interview is often limited when doing telephone
interviews, therefore personal interviews are from this point of view more preferable. Concerning observations
the researcher can only observe ongoing processes, situations and behaviors. The positive aspect of observations
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is that they do not depend on the respondent’s willingness to reveal more personal information. Documentations
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diaries, newspaper, journal, branch literature and brochures can be used for collecting secondary empirical data.

Yin brings up six different sources of evidence that can be used when collecting data for case studies.

3.5 SAMPLE SELECTION

In this study I tried to use cluster sampling for selecting appropriate sample. For this reason some requirements
had to be fulfilled by the chosen sample in order to be suitable for this study. This company is active in not only
in watches but also in sunglasses and some other product also. Company producing watches so It must have the
after-sales service system and have long time experience in this field. By considering this condition I selected
the TITAN, which is one of top watches producing industry in INDIA and comes under top 10 in all over the
world. So this company can give the field of complete study

3.6 DATA ANALYSIS

Data analysis implies examining, categorizing, tabulating, or otherwise recombining the collected data. Every
investigation should involve a general analytical strategy in order to come in terms with what to analyze and
why. Further, the main goal is to treat the evidence fairly, to produce compelling analytic conclusions and to
rule out alternative interpretations.

· Relying on survey prepositions in this method in which researcher derives the research questions from
the studies conducted from the new studies and from the new research earlier. So that new idea and new
research can be completed depends on new facts. In this study we contrite on that part which is not find
till now

This strategy will be used for project as there are previous studies conducted on the subject and the focus can
therefore be on the relevant data.

In this research I am doing data analysis with the help of different pie chart which can easily show the all
information of all the data which is collected by me as on primary basis I am using three pie charts to
clarify my objective and using 60 sample size and 5 retailers by which I am trying use cluster analysis so
that every income level and age group of customer I can include
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Fig 1.1:- In this first pie charts showing the different income level of customer in small cities this pie
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A B B Y Y . ccharts is important to check the targeted customer may be company is producing that product which not . A B B Y Y . c
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for this level of customer and company wasting so many amount in promotions or company producing
their product for that income level of customer but for any other reason company not able to finding of
customer and thinking any other thing so this piechart clearly show about the income level of the
customer
By this chart we can see that in small cities almost about 50% population is below 15000 per month then
company need to see the capacity level of that customer and by our questionnaire we can also predict
about the customer their how aware is customer about the company.

Fig 1.1
Fig 1.2:- In this customer ranked the Titan company in their own view and also share about the what is
most important for him for the Titan in this pie chart this is clearly shown about brand image of Titan is
most important for the customer
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Fig 1.2

Fig 1.3:- In this pie chart customer tell about what his preference when he is going for purchase what is
most important to him in this pie chart we know what brand image of Titan is most imp for the company
but in this pie chart company cannot neglect anything for their consideration because every single percent
is showing their sales value
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Fig 1.3

CONCLUSION:-
According to the data collected by the survey method about the company I found that
company performed well if we take over all market of INDIA but if we take only small cities company not able
to perform well so many things that required correct for the marketing of the company so that company can
also well performed in small cities. Generally Titan brand is not for the small cities or low income group people
Titan already made different alternative in the name of sonata but still there is lot of customer who can afford
Titan but not purchase it because of some reason as service time taken by the company, sometimes there is not
availability of high range watches, sometime will go for other premium watches the main targeted customer is
between 1500-10000 because after 10000 customer will go for another premium watches because of new model
and high brand and before 1500 customer have no option to buy this and sometime retailer convinces the
customer to other brands due to unawareness of customer and low price range or high discount for the retailer
but still there is high believe of customer in Titan company just need to increase the awareness of customer and
increase the direct relationship between the company and customer
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Ø Improved feedback systems online /offline.

Ø Need to operate customer care office to identify the problem of customer.
Ø Need to improve their service or reduce the time.
Ø New promotion technique should used in small cities also.
Ø Should maintain the dealer standard also this will increase the sale of premium standard watches.
Ø Provide some special furniture to the dealers to maintain the standards of the company.
Ø Try to keep a strong relationship between the customer and the company.
Ø Improve their service centers performance.
Ø Special discount for loyalty customer
Ø Can implement special card system for the royal customer
Ø Give special credit to the small cities for premium watches
Ø Organize a contest between a customer and retailer such as display contest
Ø Company should launch new sports model in Fastrack in low range
Ø Company can also launch new attractive model between range Rs 1000-1500

REFERENCE:-
BANWARI LAL & CO. in Firozabad

Book :- Research methodology by C. R. Kothari

Imp web links:- Moneycontrol.com

Clocksonly.com
Google.co.in
Scribd.com
Emeraldinsight.com
Wikipedia.org
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TITAN [Questionnaire]
Objective: - To Know the Brand Image of TITAN in small cities
TICK [√] THE OPTION BELOW
Q1. What is your name……………
Q2. Gender M [ ] F [ ]
Q3. Married Yes [ ] No [ ]
Q4. How many members in your family?
1 to 3[ ] 4 [ ] 5 [ ] 6 [ ] 7 [ ] 8 [ ] 9 [ ] more than9 [ ]
Q5. What is your family monthly income?
1.-15000[ ] 2.25000[ ] 3.50000[ ] 4. +100000[ ]
Q6. Which age group you belong?
Less than 14[ ] 14-22[ ] 22-30 [ ] More than 30[ ]
Q7. You are
Under 10th [ ] 12th [ ] Graduate [ ] Postgraduate [ ]
Q8.You are
Student [ ] House person [ ] business person [ ] serviceperson [ ]
Q9. When you wear watches
Daily [ ] Weekly [ ] occasionally [ ] Never [ ]
Q10. In which way you prefer watches
Necessities [ ] Fashion [ ] Need [ ] Jewellery [ ]
Q11. Preferences of wearing watch?
Classic [ ] Sports [ ] Party wear [ ] stainless steel [ ]
Q12. Which watches company you prefer for watches?
1. TITAN [ ] 2.TIMEX [ ] 3.MAXIMA [ ] 4.SONATA [ ] 5.PREMIUM WATCHES [ ]
6. Local watches [ ]
Q13.Have you ever gifted watches to anybody or receive
Yes [ ] No [ ]
Q14 How many watches have you
No [ ] 1[ ] 2 [ ] more than 2[ ]
Q15 what promotion induces you to purchase TITAN BRAND?
Retailer [ ] Advertisement [ ] Image [ ] Discount [ ] Brand endorsement [ ]
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Q16 Give the Ranking of TITAN watches on the basis of following round the no. [O]between 1 to 10
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Brand
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Service [1 2 3 4 5 6 7 8 9 10]
Quality [1 2 3 4 5 6 7 8 9 10]
Price [1 2 3 4 5 6 7 8 9 10]
Guarantees [1 2 3 4 5 6 7 8 9 10]
Style [1 2 3 4 5 6 7 8 9 10]