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Titan

By Lokesh
Lokesh.ubs@gmail.com

August 2013
University Business School
Panjab University
Chandigarh,Sector-14
www.ubs.puchd.ac.in

Acknowledgment

A scholarly and quality work like designing of any project can be accomplished by
motivation guidance and inspiration of quarters besides the individual efforts. Let
us in this page express our heartiest gratitude to all those who helped us in various
stages of this study.
We wish to express our deep sense of gratitude to our guide Prof. Manoj Kumar
Sharma for his valuable guidance and kind cooperation without which this project
would have not been possible.

ECONOMIC ANALYSIS OF TITAN


Lokesh
MBA(General) Section-B
August 2013

Abstract

This set of notes guides you on the format of student research projects in Business
economics.

Keywords:- research, writing, survey.

Contents

Introduction

Determinants of demand

Demand forecasting

Consumer survey

Production analysis

Cost analysis

Market structure

Conduct

Bibliography

Introduction
Titan Industries is a manufacturing company that produces India's largest and best-known range
of personal accessories watches, jewellery, sunglasses and prescription eyewear. Precision
engineering is another area of specialisation that Titan Industries excels in.Titan Industries was
established in 1984 as a joint venture between Tata and the Tamil Nadu Industrial Development
Corporation.
The company brought about a paradigm shift in the Indian watch market, offering quartz
technology with international styling, manufactured in a state-of-the-art factory at Hosur, Tamil
Nadu. In 1995, the company diversified into jewellery under the brand Tanishq to capitalise on a
fragmented market operating with no brands in urban cities. In 2005, the company launched its
second jewellery brand, Gold Plus, to capitalise on opportunities in small towns and rural India.
The company has also made its foray into eyewear, launching Fastrack eyewear and sunglasses,
as well as prescription eyewear.
Areas of business
Titan's main products are:
Watches: The four main watch brands include Titan for the mid-premium segment, Fastrack
focused on the youth and trendy fashion space, Sonata for the mass market and Xylys for the
premium market. The Titan brand architecture comprises several sub-brands, each of which is a
market leader in own space. Notable among them are Titan Edge, Titan Raga, Nebula and other
collections such as Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the
HTSE series.
The company manufactures over 15 million watches per annum and has a customer base of over
100 million. Today, the Titan portfolio has over 60 percent of the domestic market share in the
organised watch market. Watches are sold through exclusive World of Titan' showrooms and at
12,000 multi-brand outlets in more than 2,500 cities in India and internationally in over 32
countries, primarily in the Middle-East, Asia Pacific and Africa. Its after-sales-service is itself a
benchmarked operation with modern service centres offering some of the fastest turnaround

times in the world. The company has a world-class design studio for designing watches and
accessories.
Helios, India's multi-brand watch retailer, offers an unmatched range of the latest designs across
30 international brands in addition to Titan brands.
Jewellery:Tanishq offers a premium range of gold jewellery studded with diamonds and
precious, semi-precious stones in various hues in 18KT and a wide range of plain gold jewellery
in 22KT pure gold. Platinum jewellery also forms part of the product range. Gold Plus retails
plain gold jewellery offerings with designs specifically created for the semi urban and rural
Indian market and offers unique designs crafted with diamonds, american diamonds and other
precious stones. Zoya offers premium studded jewellery catering to the needs of the elite. The
jewellery division has its own design studio.
Eye wear: Titan Eye+ offers a variety of differentiated products to the end consumer consisting
of frames, lenses, contact lenses and accessories. Frames are available in both international
brands (Levis, Esprit, Hugo Boss, etc) and in-house brands Titan Eye+ and Dash. Customers
are offered a unique browse-select-buy format where all products are accessible, using world
class equipment for zero-error eye testing by qualified optometrists trained at Sankara Netralaya
and style consultants to help buyers make the right choice of frames and lenses.
Precision engineering: The divisions products span precision engineering components and subassemblies, machine building and automation solutions, tooling solutions and electronic subassemblies. The division is ISO 9001:2000 and ISO 14001:2004 certified. Additionally, the unit
catering to the aerospace segment is AS 9100B certified and the unit catering to automotive
segment is TS 16949 certified. The unit has recently been selected for the National Aerospace
and Defence Contractors Accreditation Programme for its non destructive testing capabilities.
Location
Headquartered in Bengaluru, India, the company has manufacturing and assembly operations at
Hosur, Dehradun, Roorkee, Pantnagar and Chikkaballapur, and an electronics component
manufacturing plant in Goa.

Titan is a part of the TATA Group having a turnover of about USD 30 bn, equivalent to
over 2.5% of Indias GDP and having the biggest market capitalization in India
The Tata group is Indias largest employer in the private sector 222,000+ employees
across 85 companies
The TATA group has achieved many Firsts for India:
First private sector Steel mill
First private sector Power utility
First luxury hotel (Taj)
First Airline (now Air India)
The Worlds least expensive car (Tata Nano)

Indias largest software company (TCS)


Indias largest watch & jewellery mfgr (TitanTitan is the worlds fifth largest, integrated
own brand manufacturer for watches
Commencing production in 1986-87, the Company is today the leader in the Watch &
Jewellery businesses in India
First & largest player in the branded jewellery segment (Tanishq)
>60% share of the organised watch market
Over 90 million watches sold across 30 countries, cumulatively
Manufacturing Facilities

Main Watch & Jewellery plants in Hosur near Bangalore.


Watch assembly plants at Dehradun, Baddi, and Roorkee.
ECB plant in Goa; Jewellery Plant at Dehradun
Investment of US$150 million in a 450,000 sq.ft. state-of-the-art facility.

Owned by Tata: 25.17% and TIDCO: 27.88%.


Professionally managed by TATA group & an independent Board
Recognition and Awards in many categories
The Watch Division won the coveted JRD QV (Malcolm Baldrige) Award in 2006 and its
score was affirmed in 2007.
Indias most admired consumer durables company having the most trusted brand
-TITAN.
Both TITAN and TANISHQ adjudged most admired brands for the last 4 years.
Adjudged Retail Company of the year.
Retail Asia and Media Award-Singapore, for Retailing and preferred brands.
Selected as Asian Dynamo by BCG
Ideator Awards for Titan designers.
Best Corporate Citizen Mother Teresa, Helen Keller, Rotary and Chamber of
Commerce Awards.
President of India Award for best employer of the physically challenged.

Our Brands
TITAN
SONATA
FASTRACK
XYLYS

TANISHQ
GOLD PLUS
TITAN EYE+

Highlights Businesses
Watch volume crosses 10M
Jewellery turnover crosses Rs 2000 cr.
Brands
Brand GoldPlus crossed Rs 200 Crore mark
Brand Sonata touched 5 million watches
Brand Fastrack crossed 1 million watches
Retailing
World of Titan stores crossed 225
Tanishq boutiques crossed 100
International
Watches launched in Pakistan
New Businesses
Gold Plus outlets reached 22 (from 10)
Titan Eye+ outlets reached 10 (from 1)
THE
INCOME

THREE

YEAR

JOURNEY

919
784
655

60
0

Watches

Income in Rs. Cr.

2005-06
2006-07
2007-08

Year

Jewellery

2028
1292
791

Income in Rs. Cr.


2005-06
2006-07
2007-08

Year

Company
Year

17
%

57
%

42%

CAPITAL EMPLOYED

Company

719

in Rs. Cr.

30
0

60
0

525 592

2005-062006-072007-08

Year
(The

three

year

journey..)

Jewellery
300
250
200
in Rs. Cr. 150
100
50
0

137

299

186

Watches

in Rs. Cr.

2005-06 2006-07 2007-08

Year

400
300
200
100
0

328338327

2005-06
2006-07
2007-08

Year

COMPANY PROFITABILITY (The three year journey..)

PAT

in Rs. Cr.

15
0

150
74

94

2005-062006-072007-08

Year

PBT
250

202

200
150
in Rs. Cr.

100

132
87

Market Capitalisation (Rs. Cr.)

5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0

4400

5300

3530

Market Cap.
1018
2181 5002
3
4

2002-03
2003-04
2004-05
2005-06
2006-07May-08

The Watch Market & Industry in India

India is an under-penetrated market for watches only 27 % of Indians own a watch


Total estimated market as of 2007 Volume ~ 42 mn units & Value: Rs 2700 Crores (USD
675 Mn)

Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume)
Market has been split into: Low end, Mass market, Premium,Luxury.

INTERNATIONAL BUSINESS

One of Indias first companies to market a consumer brand overseas.


Now present in 26 countries outside India
Among the top 3 brands in some Asian countries
Selling 650k watches annually with increasing presence in jewellery.
Total export sales of over Rs 130 crores in 2007-08 (up from Rs 115 crores in 2006-07).

Multiple Businesses, Brands and Geographies

UNITS

Our market and brand leadership of >50% uses the muscle of a vast distribution network

348
Towns

Watch Market Map

Nebula

OUR WATCH BUSINESS OVERVIEW

ROCE

By 2009, More than a billion $ company

Demand forecasting
WHAT IS FORECASTING:
Forecasting is not a substitute for management judgment in decision making; it is simply an aid
to that process. Managers who use forecasts in their work need to develop realistic expectations
as to what forecasting can and cannot do. In simple words we can say that forecasting demand
means prediction of future demand.
SUBJECTS OF FORECASTING:
Business uses forecasting to obtain information about many subjects. In the final analysis, firms
are interested in future sales and profits-the bottom line. But to get there, a large number of
forecasts may be necessary. There are various categories of forecast:
1) Forecasts of gross domestic product-which describes the total production of goods and
services in a country.
2) Forecasts of the components of GDP-for example, consumption expenditure, producer
durable equipment expenditure , and residential construction.
3) Industry forecasts-for Global Foods, this would represent forecasts of sales of soft
drinks, bottled water, and its other products.

4) Forecasts of sales for a specific product-for instance, diet cola.


DEMAND ESTIMATING AND DEMAND FORECASTING:
There is a great deal of similarity between demand forecasting and demand estimating. The
difference between the two lies largely in the ultimate purpose of the analysis. The demand
estimating technique will be used by a manager interested in probing the effect on the demand
(or quantity demanded) of a change in one or more of the independent variables. Thus, a pricing
manager may want to know the impact on the sales of the companys club soda as a result of a
price change, of a competitors price changes, or, for example, of a change in the companys
advertising expenses. In contrast, forecasting puts less emphasis on explaining the specific
causes of demand changes and more on obtaining information regarding future levels of sales
activity, given the most likely assumptions about the independent variables.

PREREQUISITES OF A GOOD FORECAST


Certain conditions should be met by any good forecast:

1) A forecast must be consistent with other parts of the business. For instance, a sales
forecast of 10 percent growth must ensure there are sufficient manufacturing facilities
and labor force to produce this increase.
2) A forecast should be based on knowledge of the relevant past. However, when
underlying conditions have changed significantly, past experiences may be of no help in
making a forecast. Moreover, sometimes there is no past on which to rely. This is the case
when we are dealing with a new product or technology. Under these circumstances,
analysts judgments must be injected into the forecasting process. In some cases,
forecasts based purely on the opinion of experts are used to formulate the forecast or
scenario for the future.
3) A forecast must consider the economic and political environment, as well as any potential
changes.
4) A forecast must be timely. An accurate forecast that is too late to be acted on may be
worthless.
NEED OF FORECAST IN PRODUCTION/OPERATIONS MANAGEMENT
In any company, everyone has to recognize that the sales forecast is not exact but should be as
accurate as you could reasonably expect for the business you are in and that, through
measurement and correction of errors, the sales forecast accuracy is improving on a product by
product basis. It is the job of the execution departments (planning, purchasing, and production)
to be able to meet the sales forecast at given this expected level of accuracy. A company that
would like to ship from stock will need to measure the accuracy by part number at the effective

procurement lead time. The procurement lead time will be supplier's lead time for a distribution
company or cumulative lead time for a manufacturing company taking into consideration any
safety stock of material, intermediate products or sub-assemblies.
General STEPS in the Forecasting Process
Following steps are involved:

1) Identify the General Need: First of all, it is required to identify the requirement of forecast.
For example, in a manufacturing department it has been observed that there is discontented
demand due to which they realized to expand the production. This situation is known as
identification of general need.
2) Select the Period (Time Horizons) of Forecast.Once the identification is realized, it is
required to select the estimate time.
3) Select the Indicators Relevant to Need At this step, as per the requirement, the one or more of
the following indicators may be identified:

a) Present competitors and projected capacity


b) Income levels
c) Economic development
d) If the product is related to population then population projection
e) Industry sales
4) Select the forecast model to be used For selecting the forecast model knowledge of various
forecasting models is required, along with the situations in which these are applicable and how
much are they reliable.
5) Data Collection With the reference of indicators identified, data is collected from various
appropriate sources. This data can also be taken from the past evaluation.
6) Prepare ForecastUsing the collected data, apply the selected model and calculate the value of
forecast.
7) Evaluate The obtained forecast through any of the model should be evaluated in terms of
confidence interval. Generally, all the forecast models have methods of calculating upper value
and lower value in which the forecast is expected to stay behind within a certain level of
possibility. Forecast can also be evaluated from logical point of view i.e. whether the obtained
value is logically feasible or not.
Forecasting is the process by which companies ponder and prepare for the future. It involves
predicting the future outcome of various business decisions. This includes the future of the
business as a whole, the future of an existing or proposed product or product line, and the future
of the industry in which the business operates.

Forecasting is used to answer some important questions:

1) How much profit will the business make?


2) How much demand will there be for a product or service?
3) How much will it cost to produce the product or offer the service?
4) How much money will the company need to borrow?
5) When and how will borrowed funds be repaid?
Forecast is an estimate of future values which is related to planning of specified indicators.
Selecting appropriate methodology for projecting the past data into future depends on the type of
past data, pattern of past data and time scope of forecast. This method for projecting the past into
future is known as Forecasting Model.
Forecast>= Time taken for preparation of plan + Time taken to implement the plan
Forecasting is also important when it comes to developing new products or new product lines.
Forecasting prevents the company from spending time and money developing manufacturing and
marketing a product that will fail. Forecasting is a process of estimating future events on the
basis of previous data. The previous data systematically collective in predetermined form to get
the estimate of the future. Whereas Prediction is a process of estimating future events which are
not based on previous data. It is usually based on subjective considerations. Financial
Forecasting is also an important aspect, as it enables management to change operations at the
right time in order to reap the greatest benefit.
FORECASTING TECHNIQUES:
There are different forecasting methods. One of the challenges facing a forecaster is choosing the
right technique. The appropriate method depends on the subject matter to be forecast and on the
forecaster. Factors that affect it are:
1) The item to be forecast.
2) The interaction of the situation with the characteristics of available forecasting methods.
The manager must judge the relation between value and cost. If a less expensive method
can be used to achieve the desired results, it certainly should be.
3) The amount of historical data available.
4) The time allowed to prepare the forecast. Selection of a specific method may depend on
the urgency of the situation.

FORECASTING TECHNIQUES can be categorized in many ways:


1)
2)
3)
4)
5)
6)

Expert Opinion
Opinion polls and market research
Surveys of spending plans
Economic indicators
Projections
Econometric models

FORECASTING HORIZONS:
1) Short Term Forecasting (1-3 Months)
2) Medium term Forecasting (12-18 months)
3) Long term Forecasting (5-10 years)

Criteria

Short Term
Forecast

Typical
Duration

1-3 Months

Nature of decision
Key

Degree
uncertainty

5-10 Years

Purely

Tactical as well as

Purely Strategic

Tactical

strategic

(Short term effects)


Mostly

Nature of data

Quantitative
of

Long Term Forecast

12-18 Months

Random

Considerations

Medium
Forecast

Low

Seasonal and

Long term trends and

Cyclical effects
Subjective and

business cycle.
Largely

Quantitative
Significant

Subjective
High

Some examples

Revising Quarterly

Annual

Production plans

Production

Rescheduling

Planning

supply of raw
material

Product

introduction
-

Capacity
augmentation

New

Facilities location
decision

New

business

development

Some of the methods can also be classified under below mentioned categories:
1) Qualitative Forecasting
2) Quantitative Forecasting

Qualitative Forecasting is based on judgments of individuals or groups. The results of


qualitative forecast may be in numerical form but generally are not based on a series of historical
data.
Quantitative forecasting, in contrast, generally uses significant amounts of prior data as a basis
for prediction. Quantitative techniques can be nave or causal. Nave forecasting projects past
data into the future without explaining future trends. Causal or Explanatory forecasting
attempts to explain the functional relationship between the variable to be estimated and the
variable that accounts for the changes.
Both Qualitative and Quantitative techniques of forecasting are used frequently and the
use of quantitative methods has been growing rapidly.
EXPERT OPINION:
Various types of techniques fit into the category of expert opinion.
1) Jury of Executive Opinion: Forecast is generated by a group of corporate executives
assembled together. The members of the panel may represent different functions within
the corporation (intra organizational) or different corporations (inter organizational).
2) The Delphi Method: This method, developed by the Rand Corporation in the 1950s, is
used primarily in predicting technological trends and changes. Delphi also uses a panel of
experts. The process is carried out by a sequential series of written questions and
answers. Although in the past such iterative procedure could have been quite time
consuming, computers and e-mail have shortened the process significantly. The iterations
are conducted until the range of answers is narrowed. Finally, a consensus is obtained.

OPINION POLLS & MARKET RESEARCH:


Opinion polls can be very useful because they may identify changes in trends, which may
escape detection when quantitative (both nave & explanatory) methods are used. Choice of the
sample population is of utmost importance because the use of an unrepresentative sample may
give completely misleading results. Further, the questions must be stated simply and clearly.
Often a question is repeated in a somewhat different form so the replies can be cross checked.
Market research is closely related to opinion polling. Market Research will indicate not only
why the consumer is or is not buying, but also who the consumer is, how he or she is using the
product, and what characteristics the consumer thinks are most important in the purchasing
decision.
SURVEYS OF SPENDING PLANS:
The use of surveys of spending plans is quite similar to opinion polling and market research,
and the methods of data collection are also quite alike. However, although opinion polling and
market research usually deal with specific products and are often conducted by individual firms.
1) Consumer Intentions: Because consumer expenditure is the largest component of the
gross domestic product, changes in consumer attitudes and their effect on subsequent
spending are a crucial variable in the forecasts and plans made by businesses. Two-well
known surveys are reviewed here:
a) Survey of Consumer, Survey Research Center, University of Michigan: This is
probably the best known among the consumer surveys conducted. Initiated in 1946, it is
conducted monthly. It contains questions regarding personal finances, general business
conditions, and buying conditions. The answers to these questions are summarized into
an overall index of consumer sentiment and a large number of indexes covering replies to
the more detailed questions.
b) Consumer Confidence Survey, The Conference Board : A questionnaire is mailed
monthly to a nationwide sample of 5,000 households. Each month a different panel of
households is selected. The resulting indexes are based on responses to questions
regarding business conditions (current and 6 months hence), employment conditions
(current and 6 months hence), and expectations regarding family income 6 months hence.
The replies are then summarized monthly into three indexes: (i) The consumer
Confidence Index (ii) The Present Situation Index and (iii) The Expectation Index. This
survey has been published since 1967.

2) Inventories and Sales expectations : A monthly survey published by the National


Association of Purchasing Agents is based on a large sample of purchasing executives.
ECONOMIC INDICATORS:
The barometric techniques of economic indicators is specifically designed to alert business to
changes in economic conditions. The success of the indicator approach to forecasting
depends on the ability to identify one or more historical economic series whose direction not
only correlates with, but also precedes that of the series to be predicated. Such indicators are
used widely in forecasting general economic activity . Any one indicator series may not be
very reliable; however, a composite of leading indicators can be used to predict. Such a series
should exhibit a slowing before overall economic activity turns down, and it should start to
rise while the economy is still experiencing low activity. Forecasting on the basis of
indicators has been practiced in an informal fashion for many years. It is said that Andrew
Carnegie used to assess the future of steel demand by counting the number of chimneys
emitting smoke in Pittsburgh. Another example contains, Much of the work of establishing
economic indicators was done at the National Bureau of Economic Research, a private
organization. Today, economic Indicators data are published monthly by The Conference
Board in Business Cycle Indicators. These monthly data are reported in the press and are
widely followed. There are three major series: Leading, Coincident, and Lagging
indicators. As their names imply, the first tells us where we are going, the second where we
are, and the third where we have been. Although the leading indicators series is probably the
most important, the other two are also meaningful. The Coincident indicators identify peaks
and troughs, and the lagging series confirms upturns and downturns in economic activity.
Many individual series are tracked monthly in the Business Cycle Indicators, but only a
limited number are used in the construction of the three major indexes. The leading indicators
index contains ten series, and the coincident and lagging indicators are made up of four and
seven components, respectively. Leading Indicators represent not present expenditures, but
commitments indicating that economic activity will take placed in the future.

ECONOMIC INDICATORS:
Leading indicators
1)
2)
3)
4)
5)
6)
7)

Average weekly hours, manufacturing


Average weekly initial claims for unemployment insurance
Manufacturers new-orders, consumer goods and materials.
Vendor performance, slower deliveries diffusion index
Manufacturers new orders, non defense capital goods
Building permits, new private housing units
Stock prices, 500 common stocks

8) Money supply, M2
9) Interest rate spread, 10-year Treasury bonds less federal funds
10) Index of Consumer expectations
Coincident indicators
1)
2)
3)
4)

Employees on nonagricultural payrolls


Personal income less transfer payments
Industrial production
Manufacturing and trade sales

Lagging indicators
1)
2)
3)
4)
5)
6)
7)

Average duration of unemployment


Inventories to sales ratio, manufacturing and trade
Labor cost per unit of output, manufacturing
Average prime rate
Commercial and industrial loans
Consumer installment credit outstanding to personal income ratio
Consumer price index for services

BUSINESS CYCLE
The economy tends to grow and then contract alternatively. This is called a business cycle. An
unpredictable long-term pattern of alternating periods of economic growth and decline;
characterized by change in employment, industrial productivity, and interest rates is also called
an economic cycle. It is periodic in nature but irregular, the up and down movements in
economic activity, and is measured by fluctuations in real GDP and other macro economic
variables. Business Cycle have a major impact on business and on employment as well as the
national income of the country. It consist of four phases: (i) Contraction (ii) trough (iii)
expansion (iv) peak. A recession occurs if a contraction is severe enough. A deep trough is called
a slump or a depression.
CONSTANT COMPOUND GROWTH RATE
The constant compound growth rate technique is extremely simple and is widely used in business
situations. When quick estimates of the future are needed, this method has some merit. The most
rudimentary application of this method is to take the first and last years of past data, and to
calculate the constant growth rate necessary to go from the amount in the first period to the
amount in the last.

(1+i)n=E/B
Where E= Last years amount
B= First years amount
I= Growth rate
N= Number of years

TIME SERIES ANALYSIS (TIME SERIES FORECASTING)


It has various advantages:
1) It is easy to calculate. A large number of software packages is available.
2) It does not require much judgment or analytical skill by the analyst.
3) It describes the line with the best possible fit, and provides information regarding
statistical errors and statistical significance.
4) It is usually reasonably reliable in the short run, unless an absolute turn in the series
occurs.
The fact that time series analysis does not take into consideration causative factors does not
mean that an analyst using this method should not consider additional information about changes
in the underlying forces. Any analyst using this nave method of prediction should try to fine
tune the conclusions based on information that could alter the results.
When data are collected over a number of periods in the past, they usually exhibit four different
characteristics:
1) Trend: This is the direction of movement of the data over a relatively long period of
time, either upward or downward.
2) Cyclical Fluctuations: These are deviations from the trend due to general economic
conditions. For instance, if one were to observe data for the GDP over time, a long run
upward trend would be evident. Also evident in this series would be movement around
that trend as the economy rises more quickly or less quickly.
3) Seasonal Fluctuations: A pattern that repeats annually is characteristic of many products.
Time series in which data are collected more frequently than annually (monthly ,
quarterly) can exhibit seasonal variations.
4) Irregular: Departures from norm may be caused by special events or may just represent
noise in the series. They occur randomly and thus cannot be predicted.

Thus time series can be mathematically represented as:


Yt=f(Tt,Ct,St,Rt)

Where Yt= Actual value of the data in the time series at time t
Tt= Trend component at t
Ct= Cyclical component at t
St= Seasonal component at t
Rt= Random component at t

MOVING AVERAGE: The average of actual past results is used to forecast one period ahead.
The equation for this construction is simply:
Et+1=(Xt+Xt-1+_Xt-N+1)/N
Where Et+1= Forecast for the next period (t+1)
Xt, Xt-1= Actual values at their respective times
N= Number of observations included in the average
SALES FORECASTING SURVEY:
An article published in 2005 presents the results of a survey that was conducted to discover
whether forecasting practices have changed over the previous 20 years and whether forecasting
results have improved. It compares its results to two similar surveys that were conducted in 1995
and 1984. Some of the major findings of this survey were as follows:
1) The most familiar forecasting techniques were moving averages followed by exponential
smoothing, regression and straight-line projection.
2) The familiarity smoothing appeared to be the most satisfactory method, followed by trend
line analysis.
3) The satisfaction level with the various techniques appears to be declining from previous
surveys.

4) Despite the great importance in tools such as software that are now available to
forecasters, the overall degree of accuracy of the forecasts is substantially lower than that
of the previous two studies.
5) Sales forecasting performance does not affect compensation of forecasting personnel.
Judgmental Forecasting
Judgmental forecasting is the most common method of actual forecasting especially when the
decision to be taken is critical or the required data is unreliable. They may use objective data or
subjective impressions. Different methods of judgmental forecasting are as follows:
1) Personal interviews
2) Traditional meeting
3) Role playing
4) Telephone interviews
5) Mail questionnaires
6) System dynamics
7) Cross impact theory
8) Delphi
9) Structured meetings
THE DELPHI TECHNIQUE
The Delphi method is a systematic, interactive forecasting method which relies on a panel of
experts. The experts answer questionnaires in two or more rounds. After each round, a facilitator
provides an anonymous summary of the experts forecast from the previous round as well as the
the reasons they provided for their judgments. Thus, experts are encouraged to revise their earlier
answers in light of the replies of other members of their panel. It is believed that during this
process the range of the answers will decrease and the group will converge towards the 'correct'
answer. Delphi is based on the principle that forecast from a structured group of experts are more
accurate than those from unstructured groups or individuals. The technique can be adapted for
use in face-to-face meetings, and is then called mini-Delphi or Estimate-Talk-Estimate (ETE).
Opinion Capture Techniques
Based on structured accepted research methodology and survey techniques, most Hotels and
Cruise Lines fail to capture the true opinion of their guests due to flawed questionnaires and
surveys.
Nominal Group Technique
Steps involved in Nominal Group Process:
1) Silent idea generations
2) Round-robin sharing of ideas

3) Feedback to the group


4) Explanatory group discussion
5) Individual re-assessment
6) Mathematical aggregation of revised judgments
The following Three Principles are involved in Nominal Group Process to make it a
SUCCESS:
1) First, ideas should not be evaluated one at a time. Rather the facilitator should collect many
ideas before any one of them are evaluated.
2) Second, in estimating numbers, thinking again improves the accuracy of the numbers. A sort
of bootstrapping occurs, where the group members best themselves by listening to other group
members and revising their own opinions.
3) Finally, individual generation of ideas leads to more ideas and more creative ones than
generating ideas while listening to other group members.
FORECASTING BASED ON CROSS IMPACT ANALYSIS:
Technology forecasting dos not follow a fixed methodological pattern. However, the way in
which the study is approached and the choice of methods depend on the individual researcher.
Several versions of cross impact analysis have been developed by researchers. The evaluation of
the technique has not followed a single path but has produced a variety of different methods for
constructing, utilizing, and evaluating cross-impact matrices. In applying cross-impact analysis
to a particular area, it is important to select for inclusion those developments (events and trends)
whose expected impact on the future of that area is judged to be relatively greatest.
The major steps in the use of cross impact Impact analysis for evaluating future situations are:
1) Define the events and trends to be included in the analysis.
2) Define the planning interval and sub-intervals
3) Develop cross impact matrices to define the interdependencies between events and trends.
4) Estimate the entries in the cross impact matrix, i.e. information on how the occurrence of an
event E, or how the deviation of a trend T from its expected value in a given scene would affect
other event probabilities and trend values.
5) Estimate the initial occurrence probabilities of each event in each scene.
6) Estimate the value of each trend at the beginning of each scene.
7) Perform a calibration run
8) Define the policies, actions, or sensitivity tests to be run with the matrix
9) Perform the cross impact calculations
10) Evaluate results.

Forecasting through Moving Average Method:


manufacturing company has monthly demand for one of its product as follows:

Now, calculating the estimated forecast for September month by moving average method:
(520+490+550+580+600+420+510+610)/8= 535 units
Examples of Moving Average Method used to forecast sales:

In case of titan we have a sales of titan year wise as followes:-

year

Sales Rs. Million

1987

168

1988

275.9

1989

740.6

1990

1062.6

1991

1550.1

1992

1912.1

1993

2262.3

1994

2803.4

1995

3514.4

1996

4096.6

1997

4433.8

1998

4836.1

1999

6322.3

2000

6990

2001

7276.9

2002

8005.4

2003

9611.2

2004

11508.9

2005

15099.1

2006

21816.9

2007

30981.9

2008

39260.9

2009

47986.5

2010
2011

65708.6
89708.7

2012

89708.7

2013

81708.0

So now according to moving average method we have taked last three years.

sales forecast
year

Sales Rs. Million


89708.7
89708.7
81708
65708.6

47986.5
39260.9
30981.9
21816.9
15099.1
11508.9
9611.2
8005.4
7276.9
6990
6322.3
4836.1
4433.8
4096.6
3514.4
2803.4
2262.3
112
998
113
999
214
000
215
001
216
002
217
003
218
004
219
005
220
006
221
007
222
008
223
009
224
010
225
011
226
012
227
013
1987
1
1
15991
16992
17993
18994
19995
110
996
111
997
1912.1
1550.1
1062.6
740.6
168275.9
1 12988
3989
4990
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

(65708.6+89708.7+89708.7)/3 =

in 2013 the sales forecast of company is 81708

REGRESSION ANALYSIS of Titan


Introduction. Regression analysis is used when two or more variables are thought to be
systematically connected by a linear relationship. In simple regression, we have only two let us
designate them x and y and we suppose that they are related by an expression of the form y =
b0 + b1 x + e. Well leave aside for a moment the nature of the variable e and focus on the x - y
relationship. y = b0 + b1 x is the equation of a straight line; b0 is the intercept (or constant) and
b1 is the x coefficient, which represents the slope of the straight line the equation describes. To be
concrete, suppose we are talking about the relation between air temperature and the drying time
of paint. We know from experience that as x (temperature) increases, y (drying time) decreases,
and we might suppose that the relationship is linear. But suppose that we need to know the exact
nature of the relationship, so that we can predict drying time at various temperatures. How could
we discover the actual values of b0 and b1? Well, to start with, we cannot discover the actual
values.
In short Regression analysis its a stastical tool with which we are able to estimate or predict the
value of one variable(the dependent variable) from known value of the onther variable(it
dependent variable).
The regression equation of Y on x is express as :Y = a+bx
Where
Y = dependent variable
X = independent variable
a = alpha co-efficient
b = beta co-efficient.

Representing this diagrammatically:y

Y= a+bx

bx

thus for a known value of X,Y can be calculated.

For Titan watches:

Titan Industries Ltd.


year
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006

Sales Rs. Million


168
275.9
740.6
1062.6
1550.1
1912.1
2262.3
2803.4
3514.4
4096.6
4433.8
4836.1
6322.3
6990
7276.9
8005.4
9611.2
11508.9
15099.1
21816.9

Profit after tax Rs. Million


2.6
10.7
43.3
91.1
111
108.2
190.9
250.9
275.8
242.2
146.4
170.6
192.8
234.8
130.9
62.1
111.9
249.4
736.2
941.3

Income Rs. Million


19
2.1
5.2
4.4
4.3
5.6
10.1
8.9
14.8
148.8
68.9
123.2
164.3
156.7
77.4
193.5
88.9
98.2
62
87.1

2007 30981.9
1502.7
2008 39260.9
1589.6
2009 47986.5
2503.2
2010 65708.6
4304.2
2011 89708.7
6001.6
2012 89708.7
6001.6
2013
In this case we know that profit is dependent on sales.
Therefore we can take profit values on y-axis and sales on x-axis.

272.5
259.3
107.1
576.7
950.7
950.7

regression of profit
& sales
7000

6000
f(x) = 0.07x - 190.05
R = 0.97

5000

4000
Linear ()

profit
3000

2000

1000

0
0

20000

40000

60000

80000

sales

Onther regression of sales & year(Titan)


year
1987
1988
1989
1990
1991

Sales Rs. Million


168
275.9
740.6
1062.6
1550.1

100000

1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

1912.1
2262.3
2803.4
3514.4
4096.6
4433.8
4836.1
6322.3
6990
7276.9
8005.4
9611.2
11508.9
15099.1
21816.9
30981.9
39260.9
47986.5
65708.6
89708.7
89708.7

titan sales
12
10
8
sales in rs. Million

Linear ()

Linear ()

2
0
1985 f(x)
1990= 1995 2000 2005 2010 2015
R = 0
year

Consumer Behaviour and Brand Preference of Titan Watches


I. Introduction:
Today human begins work with the time. The various activities to be performed on generally
prescribed on the basis of time factor. Thus time is consider to be a fresher factor in every walk
of life. Now-adays we find no person without a wrist watch and a home without a clock. Thus
the watches have become almost a necessity for human begins, to whichever economic class they
belong. In the 18th and 19th century watch industry has flourished in western world only,
specifically
Switzerland but the second half of the 20th century has seen India emerging an important
manufacturer of watches. Titan Industries a TATA group company as created history in the Indian
watch industry by manufacturing and marketing different brands of watches not only in Indian
market but also in the international
market. This project work titled MARKETING OF TITAN WATCHES is a effort to study the
market response to Titan brand of watches.
Objectives Of The Study:
The following are the objectives of the study towards Marketing of Titan Watches in Haveri
City.To
study consumer attitude towards Titan range of watches.
1. To know the market share of Titan watches.
2. To know the extend of satisfaction among Titan watch users.
3. To find the extent of brand loyalty among consumers.
4. To study the factor affecting the buyers behavior.
5. To study consumer attitude towards price policies of titan watches study the
consumer attitude towards companys promotional activities.
6. To study buyer reaction to after sales service.
7. To study the marketing strategy adopted in the dealers.
8. To analyze statistically responded opinion.
9. To determine consumer demographics.
Scope Of The Study:
1. Study covers the awareness of the consumer towards Titan watches.
2. Study covers the market share of Titan watches.
3. Study covers the reasons of buying the Titan watches.
4. Study covers the consumer attitude towards the price of the Titan watches.
5. Study covers the various marketing channels of Titan watches.
6. Study covers the history of Titan watches industries.
7. Study covers the various problems faced by the company and the dealer.
8. Study is restricted to Haveri City only.
II. Research Methodology:
In the study both primary and secondary data has been used for the purpose of collecting data.

The primary data have been collected through the consumer survey and discussions were carried
out with the consumer personally.
The secondary data has been collected from various published literature (like text books,
magazines, news papers) and internet. The information regarding the organization has been
collected from report and record provided by the dealers of Titan watches.
Consumer survey:
In order to collect the primary data the consumers survey was undertaken. The sample
consumers were selected on stratified random sampling method. A structured question was used
to collect information from the sample consumer contacted. Even personal interviews were held
with the respondents to gather unbiased information. Observation method also made used to
understand the real feelings of the respondents so that study become more realistic in nature.
Limitations:
1. The study has been restricted to the users of Titan watches only.
2. The data and opinion collected are assumed to be objective.
3. The survey is restricted to 100 respondents.
4. Lack of consumer awareness about different watches.
5. Time constraint.
6. The sample size is supposed to representative of the views of the consumers.
7. The study has been restricted to Haveri city only.
III. Survey Analysis
Introduction:
Consumer survey is necessary in any form of marketing research because consumer is the king
in the market and his behavior changes day by day. Selection of products by the consumer
reflects the faith in the products. The buyers behavior changes according to their age, income,
sex and other factors. Buyers purchasing always depends on the quality and price. The study of
consumer satisfaction is necessary to know the opinion of different consumers to implement the
most effective marketing policy of the firm.
To conduct the consumer survey, questionnaire method was used. Questionnaire is the most
common research instrument. A questionnaire is a set of questions with or without space for
recording answer. The question can secure relevant facts or opinions from informed and
interested respondents included in the sample survey. In the following subsequent section, the
data obtained from the respondent are analyzed statistically. A convenient sampling technique
was made use for this survey and the number of respondents chosen was 100.
Demographic Analysis:
The demographic factors pertaining to consumers are mainly age, education, occupation and
income.
Table-1: Showing Gender Wise Classification Of Respondents
GENDE
R

No. of respondents

Percentage

MALE

80

80

Female

20

20

TOTAL

100

100

NO. of respondant

20; 20%
MALE
FEMALE
80%

As per the table, of the respondents 80% are male and 20% are female.
Table 2: Showing Classifiction Of Respondents On The Basis Of Age Group
Age group (in years)
10-20
20-30
30-40
Above 40
Total

No. of respondents
20
60
10
40
100

Percentage
20
60
10
10
100

CHART SHOWING AGE


NO.of Respondant

60
40
20
0
.10-20

20-30

30-40

Above 40

Age

The above table indicates that majority of the respondents (60%) belongs to the age group
of 20 to 30 years, 20% belong to age group of 10 to 20 years and 10% each belongs to the
age groups of 30 to 40 years and above 40 years.
Table-3: Showing Classification Of Respondents Based On Occupation
Occupation
No.of respondents
Percentage
Student
60
60
Businessmen / Professional
18
18
Government employee
8
8
Others
14
14
Total
100
100

Chart showing Occupation


60
50
40
30
20
No. of respondant

No. of respondant

10

ov
t

em

st
ud

lo
ye
e

en
t

types of occupation

The above table reveals the occupation of the respondents. Out of the total respondent 60% are
student, 18% are businessmen/ professionals, 8% are government employees and remaining 14%
are other (like housewives,
retired people etc.)
Table-4: Classification Of Respondents On The Basis Of Monhtly Income Of Family
Monthly income (in Rs)
No.of respondents
Percentage
Below5000
40
40
5000 10000
14
14
10000 15000
36
36
Above 15000
10
10
Total
100
100

Monthly income of respondant

Ab
ov
e

10
00
0

15
00
0

15
00
0

10
00
0

50
00

Be
lo
w

50
00

No. of respondant

40
30
20
10
0

Monthly income

This table classifies the respondents based on monthly income. Of the respondents 40%
belong to the income group of below Rs. 5000, 36% to the income group of Rs. 10000 to Rs.
15000, 14% to the income group of Rs.5000 to Rs. 10000 and 10% to above Rs. 15000
group.
Table 5: Classification Of Respondents Based On Qualification
Qualification
No. of respondents
Percentage
S.S.L.C.
10
10
Graduate
60
60
Post-graduate
4
4
Others
26
26
Total
100
100
From the above table it can be seen that of the respondents, 10% have studied up to
S.S.L.C., 60% are graduates, 4% are post graduate and remaining 26% are others (like
P.U.C., Engineering)
Table 6: Showing Classification Of Respondnets On The Brand Of Watches Owned
Brand of watch
No. of respondents
Percentage
Titan
40
40
Timex
24
24
Sonata
16
16
Fastrack
6
6
Others
14
14
Total
100
100

Brand of watches
Others
Fastrack
Brands

Sonata
Timex
Titan
0

10

15

20

25

30

35

40

No. of respondant

The table shows that 40% of respondents owned Titan brand watches, 24% Timex brand of
watches, 16% Sonata brand of watches, 6% Fast track brand of watches and remaining
14% owned other brand like HMT, Citizen, and Maxima etc.
Table 7: Classification Of Respondnets Based On The Source Of Information About Titan
Watches
Source of information
No. of respondents
Percentage
Advertisement
14
35
Relatives
14
35
Friends
12
30
Total
40
100%
The above table indicates the sources of information about Titan watches. Of the 40
respondents, 35% each came to know about the Titan brand of watches through
advertisement and relatives and 30% through their friends.
CHART

SHOWING

SOURCE

30

OF

INFORMATION

35
Advertisement
Relatives
35

Friends

The above table indicates the sources of information about Titan watches. Of the 40
respondents, 35% each came to know about the Titan brand of watches through
advertisement and relatives and 30% through their friends.
Table8-: Classification Of Respondents On The Basis Of Plan To Change Watch
Period (in years)
No.of respondents
Percentage
Less than year
20
20
1 to 3
34
34
3 to 5
28
28
Above 5 years
18
18
Total
100
100
.
PERIOD IN YEARS

35
30
25
percentage

20
15
10
5
0
Less then year

1to3

3to5

above 5 years

years

As per the above table, 34% of the respondents wants to change the watch in a period of 3
years, 28% in 3 to 5 years, 20% in less than a year and 18% after 5 years.
Table-9: Showing The Table Of Respondent On The Basis Of Opinion Abou The
Performance Of Titan Watch
Opinion
No. of respondents
Percentage
Excellent
14
35
Good
16
40
Satisfied
6
15
Unsatisfied
4
10
Total
40
100

CHART SHOWING OPINION ABOUT THE PERFORMANCE OF TITAN WATCH

10
15

35

excellent
good

40

satisfied
unsatisfied

The above table indicates the opinion of the respondents regarding the performance of
titan watches. Of the 40 respondents, 35% consider the performance as excellent, 40% as
good, 15% as satisfied and remaining 10% are not satisfied with the performance of titan
watches.
Respondents Regarding After Sales Service Of The Company
Of the respondents 90% of the satisfied of the after sales service of the dealer and remaining
10% feel dis-satisfied with the after sales service of the dealer.
Major Survey Findings:
1. Majority of the respondents are male.
2. Most of the respondents belong to the age group of 20-30 years.
3. Most of the respondent belongs to the occupation of student.
4. Majority of the respondents monthly income were below Rs.5000.
5. Most of the respondents belong to the qualification of graduates.
6. The majority of respondents owned titan brand watches.
7. The majority of respondents are come to know about the titan brand watches through
advertisement and relatives.
8. Most of the respondents belong to the plan to change watch in a period of 3 years.
9. Most of the respondents belong to the wish price range of Rs.500-1500.
10. The majority of respondents feel that the price of the titan watches as high.
11. Most of the respondents belongs to the mode of owning watch are bought.
12. The majority of respondents are occasion of watch gift from birthday.
13. The majority of respondents are occasion of watch bought from birthday.
14. Most of respondents belong to the opinion about the performance of titan watch as good.
15. Majority of respondents feel satisfied about the after sales service.

IV. Suggestions And Conclusion


Suggestions:
The survey of consumers has revealed the like and dislikes and taste regarding wrist watches and
satisfaction level in relation to Titan industries Ltd. The consumers have forwarded the following
suggestions
for the consideration of the company and dealers.
1. The respondents feel that the price of Titan watches is too high. They anticipate a reduction in
the price,
which can be affordable to all common class of people.
2. The service for the new watches should be improved.
3. One service mechanic must be provided by the company at every showroom to ensure
consumers good
service and advice.
4. Some respondents feel that the price of spares of Titan watches is high and suggest for a
reduction in prices.
5. Some more attractive festival offers and gifts should be given on purchases.
6. All varieties of watches should be made available in show room, which cater to the taste of
different income
group customers.
7. Quality of the leather straps (belt) of watches should be improved.
8. Advertisements in local media should be increased. This may cover rural areas also.
9. Guarantees should be given for costly interior parts of watch.
10. Some respondents suggested that Titan industries Ltd., should manufacture separate kids and
sports
watches.
11. The dealer has to improve after sales service to satisfy the customers.
Conclusion:
The Titan brand of watches coming from the Titan industries is known for quality and
performance in the domestic and international markets. The consumer of Titan brand watches are
highly satisfied customers having pride in owning and wearing the most sophisticated, highly
reliable and superior performance watch.
Titan brand watches are in great demand not only in India but also abroad. It is owing to a fact
that they come from a Tata group company.
The turnover of titan brand of watches has shown uptrend from year to year. Titan watches enjoy
a lions share in the domestic watch market.
Though, there, is increasing demand for all varieties of Titan a watch, a few suggestions given by
the respondents is to be considered by Titan industries. The company has to put its efforts in
improving quality of its watches, introduce new varieties with changing out look to appeal and
attract potential customers for its products. Again the company can also consider for a reduction
in the prices which may make it market leader in the years to come.
Finally it can be said that the performance of Titan watches is not only amazing but also highly
satisfactory. The company can achieve further success by improvement the suggestions of the
consumers.

PRODUCTION ANALYSIS
INTRODUDCTION
Production implies provision of goods and services, often described as services. Production is
an important economic activity. It directly or indirectly satisfies the wants and needs of the
people. Satisfaction of human wants is the objective of production.
MEANING OF PRODUCTION
Production is the conversion of input into output. The factors of production and all other things
which the producer buys to carry out production are called input. The goods and services
produced are known as output. Thus production is the activity that creates or adds utility and
value. In the words of Fraser, "If consuming means extracting utility from matter, producing
means creating utility into matter". According to Edwood Buffa, Production is a process by
which goods and services are created".
FACTORS OF PRODUCTION
As already stated, production is a process of transformation of factors of production (input) into
goods and services (output). The factors of production may be defined as resources which help
the firms to produce goods or services. In other words, the resources required to produce a given
product are called factors of production. Production is done by combining the various factors of
production. Land, labor, capital and organization (or entrepreneurship) are the factors of
production (according to Marshall). We can use the word CELL to help us remember the four
factors of production: C. capital; Entrepreneurship; L land: and L labor.
PRODUCTION FUNCTION
Production is the process by which inputs are transformed in to outputs. Thus there is relation
between input and output. The functional relationship between input and output is known as
production function. The production function states the maximum quantity of output which can
be produced from any selected combination of inputs. In other words, it states the minimum
quantities of input that are necessary to produce a given quantity of output.
The production function is largely determined by the level of technology. The production
function varies with the changes in technology. Whenever technology improves, a new
production function comes into existence. Therefore, in the modern times the output depends not
only on traditional factors of production but also on the level of technology.
The production function can be expressed in an equation in which the output is the dependent
variable and inputs are the independent variables. The equation is expressed as follows:
Q= f (L, K, Tn)
Where, Q = output
L = labor
K = capital
T = level of technology
n = other inputs employed in production.

There are two types of production function - short run production function and long run
production function. In the short run production function the quantity of only one input varies
while all other inputs remain constant. In the long run production function all inputs are variable.
The production function of TITAN can be calculated by using various factors like output, labour
cost, capital. So now we will calculate by using these factors.
Output- It is the Net sales of the TITAN.
Labor Cost: - It is the total compensation that is paid to the employees of the Titan.
Capital Cost: - It is the cost of shared capital of Titan.
The table is been given below:year
sales
2000
6322.3
2001
6990
2002
7276.9
2003
8005.4
2004
9611.2
2005
11508.9
2006
15099.1
2007
21816.9
2008
30981.9
2009
39260.9
2010
47986.5
2011
65708.6
2012
89708.7
2013
102063.7

labor cost
652.6
673.4
690.1
651.3
772.7
890.8
1018.6
1450.2
1950.5
2670.2
3500.5
4190.8
5215.5
8400.8

capital cost
4099.3
4220.1
4433
4670.8
4070.1
3181.9
2679.3
2470.2
2574.9
1754
728
677
113.1
60.3

120000
100000
80000
60000
Amount in millions

sales

40000

labor cost

20000

capital cost

20
12

20
10

20
08

20
06

20
04

20
02

20
00

YEAR

The graphs for the various heads of labor, capital and total income are shown as below.
After we are done with the graphs, we would find the:
1.) Output as a function of labour and capital.
2.) Output as a function of labour only (capital being considered constant).
Sales in millions (Rs..)

sales

20
00
20
02
20
04
20
06
20
08
20
10
20
12

Amount in millions

100000
90000
80000
70000
60000
50000
40000
30000
20000
10000
0

year

labor cost and capital cost


10000
8000
Amount in millions

6000

labor cost

4000

capital cost

2000

20
12

20
09

20
06

20
03

20
00

year

1.) Output as a function of labor and capital using the function:


Sales, O = f (L, K)
L= Labor cost
K= Capital cost.
or
O = A* L^ * K^
To obtain the values of alpha and beta we have to use the regression analysis. To do so we take
log on both the sides.
Ln (O) = Ln (L) + Ln (K) + Ln (A).
The various values for the logarithms are given as below:
year
sales
labor cost capital cost Ln(sales)
Ln(labor cost) Ln(capital cost)
8.75179089
2000
6322
652.6
4099.3
3
6.480964384
8.318571506
8.85223583
2001
6990
673.4
4220.1
5
6.512339507
8.347614103
8.89246022
2002
7276.9
690.1
4433
6
6.536836515
8.396831835
8.98787159
2003
8005.4
651.3
4670.8
3
6.478970366
8.449085642
9.17068436
2004
9611.2
772.7
4070.1
4
6.649890875
8.311422848
9.35087592
2005
11508.9 890.8
3181.9
8
6.792119935
8.065233782
9.62239041
2006
15099.1 1018.6
2679.3
8
6.926184414
7.893310845
9.99044017
2007
21816.9 1450.2
2470.2
8
7.279456757
7.812054398
2008
30981.9 1950.5
2574.9
10.34115844 7.575841029
7.853565977
2009
39260.9 2670.2
1754
10.5779843 7.889908655
7.469654173

2010
2011
2012
2013

47986.5
65708.6
89708.7
102063.
7

3500.5
4190.8
5215.5

728
677
113.1

9
10.778675
8.160661094
11.09298509 8.340646925
11.40432303 8.55939024

8400.8

60.3

11.53335241 9.036082218

6.590301048
6.517671273
4.728272383
4.099332104

Then we use regression analysis to calculate the values thereof.


Ln(A)= -0.39465854
= 1.287155574
= 0.116799396
Now, Ln(O) = -0.39465854+1.287155574 Ln(L) + 0.116799396 Ln(K)
Ln(A) = -0.39465854
A = 0.673910113+
1.287155574+0.116799396 =1.403955
+ = >1
Now we have following observations for the value (+ ).
1. If (+ ) = 1, the production function exhibits constant returns to scale, increasing both
inputs by a factor A raises output by exactly the same factor. It is linearly homogeneous.
And

2. If (+ ) > 1, the production function exhibits increasing returns to scale.

3. If (+ ) < 1, the production function exhibits decreasing returns to scale.


ANALYSIS :The value of (+ ) is more than 1, so the net sale comes out to be increasing
function of labor & capital. Increasing returns to scale means a proportionate increase in all
inputs leads to a more than proportional increase the output. In this case doubling all inputs
would lead to more than a doubling of output. In this case, + = 1.403955 indicates a 100 %
increase in (or doubling of) the inputs leads to a 140.39 % increase in the output level.
2.) Output as a function of labour only using the function:
Sales, O = f (L)
L= labor cost
Now, We define
O = A* L^
To obtain the values of alpha and beta we have to use the regression analysis. To do so we
take log on both the sides.
Ln (O) = Ln (L) + Ln (A).
The various values for the logarithms are given. Then we use regression analysis to calculate
the values thereof.

year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

sales
6322.3
6990
7276.9
8005.4
9611.2
11508.9
15099.1
21816.9
30981.9
39260.9
47986.5
65708.6
89708.7
102063.7

labor cost
652.6
673.4
690.1
651.3
772.7
890.8
1018.6
1450.2
1950.5
2670.2
3500.5
4190.8
5215.5
8400.8

Then we use regression analysis to calculate the values..

Ln(sales)
7.600902
7.601402
7.601902
7.602401
7.6029
7.603399
7.603898
7.604396
7.604894
7.605392
7.60589
7.606387
7.606885
7.607381

Ln(labor cost)
8.751838
8.852236
8.89246
8.987872
9.170684
9.350876
9.62239
9.99044
10.34116
10.57798
10.77868
11.09299
11.40432
11.53335

Ln A = 1.714412317
= 1.117479612
Ln(O) = 1.117479612 Ln(L)+ 1.714412317
Now we get..
Ln( A) = 1.714412317
A = e 1.714412317
A = 5.553410908
Thus, the estimated equation in its multiplicative form is:
O = 5.553410908L1.1175
And
= 1.117479612
Now we have following observations for the value ().
1. If () = 1, the production function exhibits constant returns to scale, increasing both
inputs by a factor A raises output by exactly the same factor. It is linearly homogeneous.
2. If () > 1, the production function exhibits increasing returns to scale.
3.

4.

If () < 1, the production function exhibits decreasing returns to scale.

ANLAYSIS: The value of is Greater then 1 so the net sales comes out to be increasing
function of labor. It shows a given percentage change in labor would generate a Greater
percentage change in output. The term elastic is used to describe the responsiveness of
output to labor input in this case. In this increasing the labor would lead to increase the
output at more then 110 %. In this case, = 1.117479612 which indicates more then 100 %
increase in the output.
Average product of labor, APL = Sales/ labor cost
Marginal product of labor, MPL = * (sales/ labor cost)
AVERAGE PRODUCT & MARGINAL PRODUCT:
Total output
Average product = Variable input

Marginal product =

Changetotal output
Changetotal input

Therefore, Average product of labor (APL) =


Marginal product of labor (MPL) =

Total sales
Total labor cost

Changetotal sales
Changetotal labor cost

Similarly Average product of capital (APC) =

= * APL

Total sales
Total capital cost

and Marginal product of capital (MPC) =

Changetotal sales
Changetotal capital cost

= * APC

The values of APC & MPC is calculated and plotted for different fiscal years as follows:
year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012

sales
6322
6990
7276.9
8005.4
9611.2
11508.9
15099.1
21816.9
30981.9
39260.9
47986.5
65708.6
89708.7

labor
cost
652.6
673.4
690.1
651.3
772.7
890.8
1018.6
1450.2
1950.5
2670.2
3500.5
4190.8
5215.5

AVERAGE PRODUCT OF MARGINAL PRODUCT OF


LABOR (APL)
LABOR (MPL)
9.687404229
16.60820513
10.38016038
17.7958748
10.54470367
18.07796984
12.29141717
21.07255698
12.43846253
21.32465337
12.91973507
22.14975293
14.82338504
25.41339388
15.04406289
25.79172671
15.884081
27.23186411
14.70335555
25.20761386
13.70847022
23.50197018
15.67924979
26.88069895
17.20040265
29.48858215

2013

102063.
7

8400.8

12.1492834

20.8288811

COST ANALYSIS
We will now do cost analysis for State Bank Of India. We have collected data for the expenses
and income statements of the bank for the previous six years.
The expenses have been divided on various bases such as
rent and lease rent

insurance premium paid

treasury operations expenses

compensation to employees

interest paid

provisions and contingencies

The income has been divided on various bases such as

Income from financial services

Interest

Dividends

Treasury operations

Other Income

Prior period income and extraordinary income

Although there are other bases also but these are the most important of them of all. Also some of
the bases have zero figures , so we have selected some of them for doing our cost analysis.
Years
Sales
Selling and Admin Percentage
Expenses
2004
2005
2006
2007
2008
2009
2010
2011

958.92
1134.66
1481.37
2136.46
3041.09
3848
4703
6571

0
157.34
193.8
262.36
301.6
157.34
193.8
262.36

0
0.13866709
0.13082484
0.12280127
0.09917497
0.04088877
0.04120774
0.03992695

2012
2013

8970.86
10206.4

301.6
385.72

0.03361997
0.03779212

Percentage
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Percentage

Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

12000
10000
8000
6000
Sales

4000

Selling and Admin Expenses

2000

Ye
ar
s
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13

Sales vs Other manufacturing Expenses


Years

Sales

Other
Manufacturing Percentage
Expenses

2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

958.92
1134.66
1481.37
2136.46
3041.09
3848
4703
6571
8970.86
10206.36

0
3.67
3.67
5.77
6.25
3.67
3.67
5.77
6.25
9.21

0
0.003234449
0.002477436
0.002700729
0.002055184
0.000953742
0.000780353
0.000878101
0.0006967
0.000902379

Percentage
0
0
0
0
0
0
0
0

Percentage

Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

12000
10000
8000
6000
4000
2000

Ye
ar
s
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13

Other Manufacturing
Expenses
Sales

Sales VS miscellaneous Expense:


Years

Sales

Miscellaneous Expenses

Percentage

2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

958.92
1134.66
1481.37
2136.46
3041.09
3848
4703
6571
8970.86
10206.4

146.75
33.03
52.33
62.01
109.29
33.03
52.33
62.01
109.29
90.59

0.15303675
0.029110042
0.035325408
0.029024648
0.035937772
0.00858368
0.01112694
0.00943692
0.012182778
0.008875838

Percentage
0.16
0.14
0.12
0.1

Percentage

0.08
0.06
0.04
0.02
0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

12000
10000
8000
Ex
pe
ns
es

6000
4000

20
13

20
11

20
09

20
07

20
05

0
Ye
ar
s

Miscellaneous Expenses

SaM
leis
sce
lla
ne
ou
s

2000

Sales

Percentage
0.1
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0

Percentage

Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Years

Sales

2004
958.92
2005
1134.66
2006
1481.37
2007
2136.46
2008
3041.09
2009
3848
2010
4703
2011
6571
2012
8970.86
2013
10206.4
Sales Vs Employee cost

Employee Cost

Percentage

94.78
96.6
111.95
159.99
193.36
96.6
111.95
159.99
193.36
237.25

0.09884036
0.08513564
0.07557194
0.07488556
0.06358247
0.02510395
0.02380395
0.02434789
0.02155423
0.02324531

12000
10000
8000
Sales

6000

Employee Cost
4000
2000
0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Percentage
0.01
0.01
0.01
0.01
0.01

Percentage

0.01
0
0
0
0
0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

12000
10000
8000
Sales

6000

Power and fuel cost


4000
2000
0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Years
Sales
2004
958.92
2005
1134.66
2006
1481.37
2007
2136.46
2008
3041.09
2009
3848
2010
4703
2011
6571
2012
8970.86
2013
10206.4
Sales Vs Power and Fuel cost:

Power and fuel cost


8.9
10.05
10.26
11.81
14.18
10.05
10.26
11.81
14.18
16.39

Percentage
0.00928127
0.00885728
0.00692602
0.00552784
0.0046628
0.00261175
0.00218159
0.00179729
0.00158067
0.00160586

Sales vs. Raw Materials

Years
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013

Sales
958.92
1134.66
1481.37
2136.46
3041.09
3848
4703
6571
8970.86
10206.4

Raw materials
593.76
748.86
975.54
1,616.03
2,426.59
2,936.02
3,558.07
5,302.38
7,371.95
8,387.02

12000

Percentage
0.619196596
0.659986251
0.658539055
0.756405456
0.797934293
0.76299896
0.756553264
0.806936539
0.821766252
0.821744481

9000
8000

10000

7000
6000

8000

5000

6000

4000

4000

3000
2000

2000

1000

0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Sales
Raw materials

Percentage
0.9
0.8
0.7
0.6

Percentage

0.5
0.4
0.3
0.2
0.1
0
Years 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

MARKET STRUCTURE

Market is defined as the institutional relationship between buyers and sellers ; it refers to the
interaction between buyers and seller of a god at a mutually agreed upon price. Market structure
is best defined as the organizational and other characteristics of a market. There are different
parameters on which markets may be characterised:I.
Nature of Competition:- This refers to the number , size and distribution of seller in an
market . There can be a market in which a very large number of seller exist and size of an
individual seller is very small , whereas there can be another market with only one very
large player , without and competitor.
II.

Nature of Product:- This refers to whether the product is homogeneous or differentiated .


The market we face may have sellers producing the same products which are almost
identical. Then there can be a market with large number of sellers selling similar yet
somewhat different products like cosmetic.

III.

Number and size of buyers:-We know that any market has two players , a buyer and a
seller . As we can categorise markets on the basis of number and size of sellers, so also
can be done on the basis of number and size of buyers.

IV.

Freedom to enter into or exit from the Market:-Some markets may be very difficult to
enter , there may be financial restriction , legal compulsions and technological
constraints on entry . At teh other extreme , entering a market may be very easy , without
any such restriction .

Now based on all the above parameters we can characterise the market in the following : PERFECT COMPETITION:Features of Perfect Competition
Presence of Large number of Buyers and Sellers

Homogeneous Product

Freedom of Entry and Exit

Perfect Knowledge

Perfectly elastic Demand Curve

Perfect Mobility of Factors of Production

No Government Intervention

Firm is Price Taker

MONOPOLY:- A monopoly is a market in which a single seller sells a product of service


which has no substitute.
Features of Monopoly
Single Seller

Single Product

No Difference between Firm and Industry

Independent Decision Making

Restricted Entry

MONOPOLISTIC COMPETITION:- Monopolistic competition is a market situation in


which a relatively large number of producers offer similar but not identical procuts.
Features of Monopolistic Competition
Large Number of Buyers and Sellers

Heterogeneous Products

Selling Costs

Independent Decision Making

Imperfect Knowledge

Unrestricted Entry and Exit

OLIGOPOLY:- Oligopoly is a market where a few dominant sellers sell differentiated or


homogenous products under continuous consciousness of rivals actions.
Features of Oligopoly
Few Sellers

Products may be differentiated or homogeneous

Entry Barriers

Interdependent Decision Making

Non Price Competition

Indeterminate Demand Curve

Strength:
Style: Titan first introduced the style concept in India and projected the watch as a
fashion accessory. Now a days style is a very much evident factor among the youth. And there is
a craze for stylish wristwatch. So, Titan makes the peoples life more glorious by making stylish
wristwatch.
Models: As Titan offers the best and the biggest range to customer to choose the watchof
their choice with an affordable price.It offers about 14 different names with about 1000plus
different varieties with a watch for literally everyone.
Exclusive products: Today Titan holds the pride for say that its products both within thecountry
and internationally running in battle position. Its EDGE the slimmest watch in the
world position.Other than these there have few more strength likeContribution of owned brands and retail. The profit is accounted by being in
theretail space which is booming.
Watches are available with p o p u l a r f u n c t i o n s l i k e d a t e s , m u l t i f u n c t i o n &
chronographic.
Guarantee/warranty

weakness
Pricing: t h e a v e r a g e p r i c e o f T i t a n i n m i d - p r i c e s e g m e n t i s v e r y h i g h t h a n
t h e o t h e r competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In
the m i d - p r i c e s e g m e n t t h e c o m p a n y i s n o t p e r f o r m i n g u p t o t h e m a r k d u e
t o t h e l a c k o f choice of consumers.
Market share: A s t h e a v e r a g e p r i c e o f T i t a n w r i s t w a t c h i s f a r m o r e t h a n t h e
o t h e r competitor, Titan has less market share. The market is more demonstrate by middle
class people and for them Titan is quite costly. Among 75% market share in midsegment.Titan market share is between 18-20% which is far lower than HMT and Maxima.
Globalized: As the company is Indian based which leads it to the strength, where as it isthe
weakness also because the company not sufficiently globalized.

Opportunities

Seasonality:
A t t h e t i m e o f f e s t i v a l , l i k e D i w a l i . T i t a n p r o m o t e s N e b u l a , B a n d h a n becau
se there is demand for the products.- Gold watches and pairs are the like as a wedding occasion.
The fast track brand is promoted in month of June-August when schools
a n d colleges re-open.
Gifting concept:
Titan started as a brand which was associated with gifting and relation .The fight concept
sells well for people have come to associate Titan with love care and makes emotion
run high.
Exchanging offer:
The Titan stores offer exchange offer of any old watch, of any make ,i n a n y c o n d i t i o n
functional or otherwise and receive a flat discount of 25% on
t h e i r purchase of a brand new, stylish and technologically advanced watch from Titan.
Threats
Competitor:
As we know that lots of Foreign brands are entering in our country withtheir branded
watches. As the removal of quantitative restrictions on import watches leads
tothreat to titan.
Premium segment:
As in premium segment Titan is getting threats from reputed international brand such as
Espirit, Swatch and Citizen.
Mobile:
Now a days people can get the time and the other feature in mobile phone. So,the need of
wristwatch is in decreasing trend. People can talk and see the time in a cell
phoneand some people think that there is no need of wristwatch.
Marketing Objectives:
Titan industries in watch holds 70% in Domestic level and 60% in Share
in organized sector market.Companies the marketing objectives is to increase in market share
by 5% .Before implementing the of marketing strategies we must have to focus on certain
things ,whichinclude the BCG Matrix representation.Titan industries has registered an
Income of Rs.1,104.85 crore as compared to previous year which was Rs 7,25.11. In all
the income the Titan industry had contributed Rs.3,03.45 crore.

BCG matrix helps us to understand the watches playing a important role for Titan industries here
we are considering the different segment according to its performance as well as market share.
The titan- wwf collection is inspired from six species namely the Tiger, Indian
Rahino Gnageticriver Dolphin ,Red Panda ,Whale shark and Oliver Ridley Turtle.Earlier they
had launched Heritage collection about a year back based on beautiful monument of India
including The Taj-Mahal, Lakshmi Vials Place, Jharokha, Konark ,Ajanta. As it is the
newcollection it requires more investment for Tiatn-wwf as the market growth is also high
there.It include the watches namely REGALIA, EDGE and NEBULA.
Cash Cow:
It basically include the watches Fast Track, Exacta, pectra for the titan. As in this segment
thesewatches are playing important role so it require certain amount of money which will help it
outto sustain into the market as well help in liquidity.
Marketing Mix:
PRICE
PRODUCT
PROMOTION
PLACE
Price:
As achieve our marketing our marketing objectives, we can do some change in the pricing .The
main consideration will be in changing price are followings
Survival:
In case of some of the watches titan prices them according to the features .The Exacta is a
simples t e e l w a t c h p r i c e d a t R s . 6 0 0 - 1 , 1 0 0 . A s t h e c o m p a n y a l s o d e a l s w i t h
S p e c t r a , R a g a t h r o u g h pricing policy.

B. Market share:
As we know that 70% of sales in watches come from the lower segment, therefore
by pricingSonata at 350 onwards with guarantee.Titan prices its world watches which
compared equal to an international players like CalvinKlien where a customer pays
4 times as value of the world watch, therefore market with low prices to international
players to gain market share.
C. Market Skimming:
In Indian watch industry there is no one offering pure gold watches, watches in pair,
jewellery watches. Here Titan offers there product with the Indian touch in itsdesign, the product,
the love.
Product:
Q uali t y and l eader s hip ar e the tw o ma in ter ms f or the Titan. As to
a c h i e v e t h e m a r k e t i n g objectives this aspects should also be considered.
A. Product line:
To increase the sales, the difference in the prices of the watches are justified bythe features.
B. Product pyramid:
Portfolio of Titans product is of 3 distinct price-range that can be definedi n g e n e r a l , a s
P opula r, M id, and Pr e mi u m. At the popular s egment, the e mphas is is on
i n volumes but not in margins. At the premium segment, the emphasis is on profits and image
butnot in volumes. Obviously, company giving more emphasis at the top of the pyramid as
profits atthe top of the pyramid is very high. This pyramid guided the strategy of Titan.
C. Product strategy:
Titan was first focused only on the premium segment of the watch market.As per the product
strategy they took, Titan moved in to the mass market for watches. To widen base, Titan created
new segments and increasingly focusing on segments individually. In the pastfew years Titan has
took a lot of initiatives to focused on specific segments.
Promotion:
Promotional pricing:
A. Marketing pricing:
A s b y o p e n i n g n e w s h o p s s u c h a s t h e w o r l d o f T i t a n b u y directly from the
dealer and hence the element of middleman is not there Here the retailer in this category buys
watches for 17-18% lesser than MRP and hence they areable to get the 17% profit margin on
sales .It is managing to successfully convince to the customer of the perceived value
of
WORLDWATC H u s i n g h o a r d i n g a l l a r o u n d t h e c i t y, i n c r e a s i n g b u y e r i m a
g e , t r u s t w o r t h i n e s s , innovation, differentiation, value for the product.
Price discount and allowances:
Every year Titan comes with a price discount sale on the MRP of the watches. The allowances
varies from one segment to another.
B. Creative advertising:

Titan introduces a contest on cartoon network in india.com which invites children to use
creativity and design watch.The prize winning design was launched as a new watch in summer
2002 collection .
Type of advertising:
Titan believes in making its ads clean, well made, touch on emotional chord. As the
company is using celebrities or superstars that is Amir Khan for the Titan watches.As here we
can say that a female actress would be more effective for the promotional purpose. Itcan be
Katrina Kaif, as now she is one of the popular actress in Bollywood.
C. Promotion on occasion:
Titan is one of the company which formally believes in the policy of promotion the product
based on the occasions

Conduct

BOARD OF DIRECTORS
Hans Raj Verma, (Chairman) (from 31.10.2012)
N.S. Palaniappan, (from 30.01.2013)
T.K. Arun, (from 31.07.2012)
Bhaskar Bhat, (Managing Director)
Ishaat Hussain
N.N. Tata

T.K. Balaji
C.G. Krishnadas Nair
Vinita Bali
Hema Ravichandar
Das Narayandas
Ireena Vittal, (from 30.01.2013)

Our Mission and Vision

Titan Group aspires to be an admired company in the region, which delivers high values
to the stakeholders through the deployment of the best available technology combined
with strategic marketing and management practice.

In the wholehearted effort to make that dream a reality, we firstly pursue trusted customer
relationship by creating and adding value to customers by the deployment of solutions
that conform to the best management practices.

Equally important is how we can develop high return business portfolio through
continuous expansion in strategic and profitable investments. All ventures that we enter
into should maximize Titan's business value and, in return, sustain our growth.

Philosophy of the Company

Our beliefs and values drive behaviors and enable achievement of our mission.Our Group
of companies is committed to major "shared" values:

Acting in accordance with our beliefs and values will keep us on the right course, and
will continually increase the strength of our company.

INTEGRITY, Operating with integrity is one of our most fundamental group


philosophies. We are committed to conduct all aspects of our practice with integrity.
Integrity is at the heart or our relationships. Each of us is accountable for doing the right
thing, which includes internal operations as well as external interaction with customers,
vendors and business partners. We maintain the highest standards of professional and
ethical practices. We are relentless in uncovering and sharing the truth and being honest
with ourselves, our co-workers, stakeholders and the community at large.

TRUST (and RESPECT), We strive to display honesty, dignity, and respect to our
members, business partners, clients, and vendors by trusting, respecting and empowering
our employees, and operating every single day with authenticity, openness and reliability.
We thoughtfully consider other's ideas and viewpoints, and recognize our differences. We
thrive under high standards, prospering when an individual grows and meets new
challenges.

OPENNESS, We believe that to an open and effective communication channel is the key
to understand each other to make Titan a better company. We pursue and value each other
perspectives, and desire to learn about opinions and decisions different from our own. Via
an open communication, internally and externally, we encourage fresh ways to address
business issues to make the group moves toward its goal.

FUN, Together with hard work and high spirit, we want all Groups members and those
people with whom we interact to have fun in their work. Our Group's goal is to create fun
workplace in order to create an enjoyable working environment. At Titan we recognize
that in almost every action we are part of a team, and through our collaborative efforts we
align the workforce.

Brand Positioning
Since its introduction, Titan has been positioned as a premium brand, providing highquality
products. With its numerous sub-brands catering to different segments, the challengethat Titan
faces is to create a strong brand image. It follows different positioning strategies,these strategies
can also be analysed as given below:
Attribute Positioning: When the company launched its products, it was the first to bring quartz
watches to the Indian market. The company successfully leveraged this to penetrate the market
and gain a market share. Raga, Classique and Regalia come under this strategy. Classique has
been positioned as elegant corporate wear that leaves a quiet, but definite impression and fusion
of function and sophistication. Power dressing now has a new weapon! As Magic in gold and
bicolour look, the 'Regalia' range represents the essence of dress-wear. Raga has been
differentiated and positioned as exclusive watches for women. The Raga and Silver Raga
collection is elegant, delicate and feminine with each piece being truly unique.

User Positioning: Titan caters to several user groups- children (the Dash), sportspersons and
adventurers (PSI4000 and Fastrack range). The Fastrack range is seen as being contemporary,
sturdy and reliable. The advertising, packaging and merchandising of this range is young, vibrant
and cool (the ad line says Cool watches by Titan).
Competitor Positioning: With the entry of several foreign watchmakers into the market, Titan
had to counter the threat. Most of the entrants are catering to the upper end of the marketOmega, Tissot, and Cartier etc. Titan already had the Tanishq brand in this segment. However, it
has tried to reposition this brand by increasing the price range to encourage more customers.
Price Positioning: In the overseas market, especially in Europe where it is competing with Swiss
and Japanese watches, it is positioning itself as value- for- money: reasonably priced (less than
Swiss watches and higher than Japanese), attractively styled and of good quality. In Indian
market, Sonata is a perfect example of Price positioning, titan came up with this segment when it
was facing heavy competition from lower end segment.
Market Segmentation
Mens segment:
With Titan positioning its range of watches as a life-style, the Indian market started viewing
watch more as a complement to dress than just a time showing machine. They are also realising
that, unlike other forms of art that are meant to be admired, high-end jewellery watches have that
added bonus: practical luxury with a function other than beauty. Watches have joined the list of
tie, deodorant and shoes to represent the occasion and flaunt your status.
Nebula
Marketed as the Jewellery collection from Titan, Nebula is targeted towards affluent men who
consider wearing gold jewellery a symbol of status. Magical blend of most coveted of metals,
Gold and craftsmanship; Nebula is more of a connoisseur watch with the lowest price model at
Rs.5500. It is marketed as a watch for discerning individual positioned as a gold jewel.
Regalia: Incredibly eye-catching. magic in gold.
The watch uses the unique combination of gold and bicolour looks representing theessence of
dress-wear. In India, gold-look is associated with status but at the same time, thesilver-look is the
fashion of the day in international watches. With the combination of both,this watch is targeted
towards affluent businessmen. The elegant looks and colours make it astrong competitor to the
foreign brands like the Tissot, Piaget and Rado.
This is also marketed as a watch for gift Special Watch for special occasion, positioning this as
a costly gift.
Insignia:The World Watch from Titan.The watch with fascinating designs and precision
engineering was targeted towardsthe European markets. The complexity of this watch is 10 times
more than a regular titanwatch. Though it didnt meet with much of a success in Europe, this tag
line and keyword International are used to position this watch as a world-class watch for
international traveller with European tastes.

Classique:
Power dressing now has a new weapon!
Timeless elegance captured on the wrist.
Classique' is marketed as a fusion of function and sophistication.
Classique with its looks fits the formal corporate image and is positioned as a watch for
corporate employees. This also reinforces the importance of watch along with the dress worn.
These watches aregeneric in their simplicity and find no real competitors except HMT.
Spectra:
Designed for those who look beyond the ordinary. This brand from Titan extends over wide
range of prices from 900-7000. It is a classic premium watch with style, which boasts of
combining the sturdiness of steel with richness of gold. The positioning of the watch is not very
clear as it is targeted towards the salary earners with its lower price point models and appealing
models for the corporate executives at the higher end.
Sports Watches:
In the Indian scenario the sport awareness is not quite there. And the market is notmature enough
that consumers buy special watches for sporting except in the super-premiumand segments above
that. A sports watch in the mind of an average Indian is a polyamidewatch with stopwatch and
trendy look. So there is no clear distinction between sportswatches and casual watches. But in
the available market Timex, Casio, and Titan are major players and after the lifting of QR
restrictions, world famous Tag- Heur has also enteredIndia but in the Connoisseur segment of
sports watches.
PSI2000:
Titan has introduced a range of contemporary Precision Sports watches. The brand ismarketed as
tough, outdoor, adventure brand. (Psychographically segmented) Ranging from800 to 7500,
these watches are in direct competition with foreign brands like Swatch Irony.
Casual Wear:
The segment of watches that has a variety of brands and models to appeal to the youth and
mentally young people is casual wear. The watches in this segment are mainly sporty watches,
which are unconventional and typically symbolize the attitudes of younger generation.
Titan Fast Track:
Cool watches from Titan.The target audience for this watch, in the 20-35 age groups include
working adults and postgraduate students of both sexes in metros and mini metros. The Fast
Track user, in termsof attitude is one who wears an informal dress, wears branded jeans, shirts,
sunglasses and branded informal shoes. The Fast Track personality is that of a young,
energetic,achievement oriented person, who seeks to express his or her individuality by braking
freefrom constraints of formal environment, without being a rebel. Built around the Coolconcept,
this watch from Titan has virtually very few competitors because no one offers the feature
combination and price but Casio (in digital range) and Espirit and Swatch (in the analog range)
can be considered as competitors feature-wise.
Technology Watches:
Wrist Watches have changed a lot from the inception- a time showing conveniencemachine to a
status symbol. But the underlying concept remained unchanged, convenience.Stretching this

concept a bit with the development of technology are the technology watchesavailable in the
market. Watch for time, status has in the new technology era is looked for convenience of
carrying data. In to the competitive market with people willing to pay a premium for that
advantage, a good number of brands have ventured.
Womens segment
Dress Wear
Titan has chiefly three brands in this category.
Nebula (6000-65000)The Jewellers Collection Nebula is a precious jewellery watch from Titan. It is marketed as a
magical blend of most coveted of metals and engineering excellence. The Nebula range of
watches is positioned as objects of ornamentation. A 21 carat gold watch, studded with gems it
istargeted at the upper most end of the market in competition with brands such as Rolex
andCartier.
Regalia
Regalia range is positioned as Essence of dress wear. It is marketed as Incredibly eye
catchingmagic in gold. With the unique combination of gold and bicolour looks andsleek
case, Regalia is targeted towards middle-aged women who consider watch to be a statussymbol
and also representing their delicacy. It is available in many price points betweenRs.1800
onwards.
Raga and the Silver Raga
Raga and the Silver Raga collection are positioned as Ethnic Indian styling for thesophisticated
woman. Each piece is truly unique and represents elegance, delicacy andfeminine. The designs
and the bracelets represent traditional Indian ornaments as well ascontemporary style.
Fastrack
The woman's collection presents the all-new international 'Frosted' look, which istrendy and chic.
The ad line: Fastrack- Cool watches from Titan aims at building the brand around the cool
concept.Fastrack is targeted at a personality that is young, energetic, achievement-oriented,who
seeks to express her individuality by breaking free from constraints imposed by
formalenvironments, without being a rebel. The positioning of Fastrack for men and women
isalmost the same.
New logo and tagline - Be MoreBeyond style
Now, Titan wants to move from style statements to personality statements. Accordingto Harish
Bhat, chief operating officer, watches, Titan Industries, a watch ought to denote thewearers
mood and personality. With the explosion of options in a persons life, our coreconsumer is
changing. And to keep up with them, Titan has evolved too, he says.On the adoption of Be
More, Bhat says that that statement is supposed to denote theaspirations of consumers to make
more of their lives and be whatever they want to be. Thewatch allows for such imaginative
travels, he says.Titans agency, Ogilvy India, has devised a campaign featuring Aamir Khan
thatencourages people to find a new strand of their personality every day. It all started with a

logochange a few months ago (the same font in a red and white combination), followed by
acampaign rolled out now.The ad filmopens on a shot of Aamir Khan sitting alone on a roller
coaster, statin, Be born every day. Next, he is seen chasing the shadow of an aircraft on a
beach, then,sitting beside a truck driver, in the middle of nowhere, with a trail of chassis trucks
behindhim. Here, he asks the viewers to try the adventure of getting off at an unknown station,
of exploring unknown lands.
The Integrated Retail Services Group was responsible for the highest ever networkexpansion
during 2012-13, setting up a total of 140 stores (2,36,166 sq. ft). The networkas on 31st March
2013 was as follows:
No of stores
Area (in sq. ft)
World of Titan
364
3,74,864
Fastrack
140
76,237
Helios
46
64,348
Tanishq
146
5,20,969
Goldplus
31
74,319
Zoya
2
6,628
Eye+
224
1,54,274
742
60,000
During 2013-14, the Company has augmented plans to add 145 stores in Watches
andAccessories, 45 stores in Jewellery and 55 stores in Eyewear.

Bibliography
[1] Statical methods : S.P.Gupta
[2]Marketing Management : Philip Kotler
[3] Websites : www.titan.com
[4] www.titanworld.com