INTRODUCTION

Anna University has incorporated institutional training as a component of Master

of Business Administration (M.B.A) course. This training program is designed with a

view to enable the student to have an exposure and work experience in the field.

As a student of M.B.A., I underwent training at TITAN INDUSTRY HOSUR.

Here, I am submitting the report of the institutional training. A detailed

working experience that I have gained during the training in various departments of

TITAN INDUSTRY, Hosur and. I have also given a brief profile of the organization

to which I have been deputed as a trainee.

A study on functional areas in the TITAN INDUSTRIES LTD., deals with all the

functional departments of the company. All the departments play a vital role in the

company, each department performs separate task but they are inter related with each

other.

In order to make the work efficient the individual should be trained well.

Training is used as a tool for that and training differs based on curriculum and job

profile of each individual. The employees are given training in the organization to do

their work very easily.

The Industrial training is also helpful to acquire new manipulative skills,

technical knowledge, problem solving ability, attitude they also gain some industrial

experience during the period of training.

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CHAPTER-2

2.1 Industry profile

2.1.1 Growth of Watch Industry in India:

The present demand for wrist watches in India is estimated between 12 million

and 15 million per year. However, at present domestic production are only 7-2 million

watches. The balancing being met by watches brought into India from abroad.

A growth projection for industry as whole is estimate to be 6% per annum. This

explains the positive reaction of the existing manufactures in the market to the new

entrants.

The government recent decision to throw open electronic digital watch

manufacture to the private sector with foreign share (up to 4%) is expected to

encourage more new watch industries.

Predictions in the industry are that a shift from the present manufacture of

automatic & mechanical watches is inevitable. The current trend in the Indian markets

is towards the more sophisticated models. All over the world mechanical wound

watches & to some extent the automatic watches have given way to quartz & digital

watches.

For the customer more competitors means a greater variety & choice ,latest

designs & models ,guaranteed after sales service &quality products from collaborative

ventures with the world’s renowned watch manufactures.

.

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2.1.2 Corporate Citizenship

      - We ensure that a part of our resources is invested in environment and community

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

year: In 1989, it was Aqura, the trendy range for the youth, colorful, smart and

affordable plastic watches for the youth: The other side of Titan for the other side of

you.

In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic

India, for the sophisticated India woman who appreciated such things.

In 1993, it was Insignia, very distinctive and international-looking top-end

watches, for those seeking exclusivity and status.

In 1994, it was psi 2000, rugged, sporty and very masculine watches with

serious sports features (200-m mater resistance, high precision chronographs)

for those with the penchant for adventure.

In 1996, it was Dash, the cute and colourful range for kids.

In 1997, it was Sonata, the affordable, good quality range for the budget-

conscious.

In 1998, it was Fastrack, the cool, trendy, funky range for the young and

young-at-heart.

In 1999, it was Nebula, the sold gold and diamond-studded range of luxury

watches for those affluent people to whom gold is a precious acquisition.

In 2001, it was Steel, the smart and contemporary collection for the young 21st

century executive.

2.1.3 Brands for Titan

The main brands that have reigned on the Indian market for Titan over the years are:

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EDGE

Through cutting edge watch-making technology and four years of research and

development, Titan. has created sensation by coming up with the world's

slimmest wristwatch "Titan Edge" of just 3.5 mm in thickness and a wafer thin

movement of 1.15 mm

NEBULA

The Trousseau Collection of expensive jewelry watches for women from Titan

bear intricately carved designs in paisley and floral patterns. Watches may also

have pearl dials, or studded with 16 diamonds, or deftly crafted in solid Gold of

10 carats.

FASTRACK

This range has become the obsessions of the Indian youth, for their digital

technology, trendy shapes, and casual and sporty designs.

RAGA

The watches in this collection are exclusively for women, whose gold, steel and

bicolor looks with leather bands or metallic bracelets signify feminine grace

and substance.

REGALIA

The exclusive range of watches in gold and steel are meant for social occasions

BANDHAN

The collection in gold that is solely available in pairs, has been a 'must buy' for

weddings

FLIP

The favorite among professionals, the watches enable their owners to switch

from sporty to corporate look or between professional and personal occasions

with a "flip" of the dial.

SONATA

The wide collection that includes 400 models of watches is designed for

customers, who look for a mix between durability and affordability. These

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wrist-gears are water resistant (for up to 30 meters) and come in metallic and a

host of other cases with a guarantee of 1 year.

XYLYS

The collection added was another feather in Titan's cap that consisted of a

premium selection of watches that are the result of exquisite craftsmanship.

The collection was created by Titan's design advisor Michael Foley in

collaboration with renowned Swiss designer Laurent Rufenacht.

OCTANE

Launched in early 2008, this chronograph collection for men comes in steel-

and-chrome with a choice of eye-catching dials that complement a true

metrosexual.

And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each

of them unique and fascinating.

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 now entered into eye wear,

launching Fastrack eye-gear sunglasses and prescription eye wear.

2.1.4 Areas of business

Titan's main products are:

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a)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: Titan Edge, Titan Raga, Nebula and several other collections like Wall

Street, Heritage, Regalia, and the Aviator series.

The company manufactures over 12 million watches per annum and has a customer

base of over 100 million. Today, the Titan portfolio has over 60 per cent of the

domestic market share in the organized watch market. Watches are sold through

exclusive 'World of Titan' showrooms and at 12,000 outlets in more than 2,500 cities

in India and internationally in over 30 countries, primarily in the Middle-East and

Asia Pacific. Its after-sales-service is itself a benchmarked operation with service

centers and amongst the world’s fastest turnaround times. The company has a world-

class design studio for designing watches and accessories.

b)Jewellery: Tanishq is India’s largest, fastest growing jewellery brand with a

premium range of gold jewellery studded with diamonds or colored gems, and a wide

range in 22kt pure gold and platinum jewellery. Gold Plus is the recent retail plain

gold jewellery offering for the mass market. The jewellery division has its own design

studio.

c)Eye wear: Titan Eye+ retails sunglasses under the Fastrack brand and prescription

eye wear consisting of frames, lenses, sunglasses, accessories and contact lenses of its

in-house brands and other premium brands.

d)Precision engineering: The Company’s Precision Engineering Division supplies

precision components to the aviation and automotive industries. It also manufactures

dashboard clocks as OEM to car manufacturers in Europe and America, and provides

fully integrated automation solutions. This division is certified under AS 9100B for

the aerospace segment, TS 16949 for the automotive segment and the coveted Ford

Q1 status – the highest possible supplier recognition from Ford.

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Location

Headquartered in Bangalore, India, the company has manufacturing and assembly

operations at Hosur, Dehradun, Roorkee, and Baddi in Himachal Pradesh, Banth nagar

and an ECB plant in Goa.

Titan Industries is the organization that brought about a paradigm shift in the

Indian watch market when it introduced its futuristic quartz technology,

complemented by international styling. With India's two most recognised and loved

brands Titan and Tanishq to its credit, Titan Industries is the fifth largest integrated

watch manufacturer in the world.

The success story began in 1984 with a joint venture between the Tata Group

and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz

watches that sported an international look, Titan Industries transformed the Indian

watch market. After Sonata, a value brand of functionally styled watches at affordable

prices, Titan Industries reached out to the youth segment with Fastrack, its third brand,

trendy and chic. The company has sold 100 million watches world over and

manufactures 12 million watches every year.

With a license for premium fashion watches of global brands, Titan Industries

repeated its pioneering act and brought international brands into Indian market.

Tommy Hilfiger and Hugo Boss, as well as the Swiss made watch – Xylys owe their

presence in Indian market to Titan Industries.

Titan Industries has leveraged its manufacturing competencies and branched

into precision engineering components and subassemblies, machine building and

automation solutions, tooling solutions and electronic sub-assemblies in 2002. Titan

Industries has also made its foray into prescription eyewear, launching the Titan Eye+

chain of world class optical stores in 2007.

With over 500 retail stores across a carpet area of 6, 60,000 sq. ft, Titan

Industries has emerged as India’s largest retail network. The company has over 290

exclusive ‘World of Titan', Helios and Fastrack showrooms and 745 after-sales-

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service centers. Titan Industries is also the largest jewellery retailer in India with over

140 Tanishq boutiques, Zoya and Gold Plus stores and over 75 Titan Eye+ stores.

Backed by over 4,300 employees, two exclusive design studios for watches and

jewellery, over five manufacturing units, and innumerable admirer’s world over, Titan

Industries continues to grow and sets new standards for innovation and quality. The

organization is all geared to repeat the Titan and Tanishq success story with each new

offering.

In Titan Industries,

The employees are classified into two categories

E-level-1021 employees

L-level-422 employees

Trainees-17

Shop floor (temporary)-317

Other than shop floor (temporary)-276

2.2, TITAN COMPANY PROFILE

2.2.1, INTRODUCTION

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Titan is a joint venture between TATA and Tamil Nadu Industrial Development

Corporation (TIDCO). Titan is in the forefront of the TATA value system of creating

wealth for the nation and earning the respect of all the stakeholders and the

community at large through excellence in every aspect of the business and individual

conducts. Set up in 1985 with an initial planned annual capacity of two million

watches, the company today produces over 6 million watches annually and has

successfully diversified into previous jewellery and premium clocks. The company is

acclaimed to be a visionary in the watch industry and is perhaps one of the few

profitable watch businesses in this part of the globe. The company has passionately

pursued the business excellence model based on the Malcolm Baldridge Criterion and

is assessed to be the second best in the group behind TISCO.

2.2.2, Tata:

The house of Tata’s – The largest private sector group in India. The people

who have made the most significant contribution to India’s industrialization and

progress in the 20th century through their involvement in the diverse industry.

According to the marketing white book 2005, the size of retail is as high as

85%. Within the organized retail sector, clothing and textile dominate with a 36%

share followed by watches and jewellery, which has a 17% market share.

I. Vision Statement:

a) Vision:To be innovative world class, contemporary and build India’s most desirable brands.

b) Customer focus:

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Titan passionate about understanding customer needs and expectation delighting

a customer is therefore a nature outcome.

c) Creativity and innovation:

They were ideas company creativity and innovations are lifeblood.

d) Performance culture and team work:

They dare to dream big and work together to realize it. High performance is a

way of life with them.

e) Quality:

They will attain and maintain excellence in all that they do.

f) Wealth creation:

They ensure creation of value in all that they do for stake holders.

g) Respect and care for the individual:

They value every Titanian and strive to fulfill his/her needs and aspiration.

h) Corporate citizenship:

They care about the environment and the community; they live in and will

invest a part of their resources in improving them.

II. Mission Statement:

Titan seeks to achieve these value goals through a focused pursuit of

outstanding quality in both the ends that we target and the means that we adopt. Titan

encourages and enables individuals and groups to realize their fullest potential through

rationality and creativity, cerebration and passion, transparency and informality, pride

in the past and excitement about the future.

Name of the Company:

The name TITAN is an acronym derived from the names of the promoters.

Tata Industries & Tamil Nadu Industrial Development Corp.

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“TITAN INDUSTRIES LIMITED’

2.2.3, History of Titan

Early 1980 TIDCO invites TATA to participate in a joint venture to manufacture wrist watches.

Mar. 1982 Memorandum of understanding signed between TATAS and FRANCE EBAUCHES to participate in a joint venture for the manufacture of watch movements.

Aug. 1982 Government of India accords approval to TIDCO for the project.

Mar. 1983 TATA float a new investment company - Questar Investment Limited specifically for this project.

Feb. 1984 Agreement signed between TIDCO & QUESTAR INVESTMENT LTD., to set up a joint sector wrist watch manufacturing company – TITAN WATHCES LTD.,

Jul 1984 Titan Watches Ltd., was incorporated

Mar 1985 Approval received by Titan Watches Ltd., to implement the project

May 1985 Application to Government of India for phased manufacturing

programme.

Oct. 1985 Mr. Robert Director of Overseas, Projects France Ebauche visits India for finalization of product, product mix and technology.

Mar. 1986 Commencement of building construction

May 1986 Approval received for phased manufacturing of programme for a production capacity of 2 Million Quartz Analog wrist watches.

Sep. 1994 The name “TITAN WATCHES LTD.,” changed as “ TITAN INDUSTRIES LTD.,”

2.2.4, Titan Manufacturing Division and its Products:

A Titan industry has three major manufacturing divisions namely:

Watch division

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Quartz analog wrist watches

Jewellery division

Precision jewellery watches

Bracelet and new business division.

Metallic bracelet and pieces.

2.2.5, Strategies followed by Titan:

The following strategic priorities will form the basis for developing the vision of

the division:

Titan will invest in its watch brands to create profitable, desirable and powerful

brands.

Titan will create a delightful shopping and service experience for its consumer

and build enduring and profitable relationship with its associates.

Titan will improve manufacturing efficiencies and reduce capital employed in

order to achieve significant cost reduction and improve profitability.

Titan will use its core competencies in the areas of design and retailing to

extend the brand strengths to other prestigious, personal accessory category.

Titan will ensure that it continuously delivers increasing profits and

profitability to its share holders.

2.2.6 ,Corporate Social Responsibility:

A Titan industry has a clearly defined policy in social responsibility and

believes that an organization cannot be an island of excellence in a sea of troubled

waters. CSR initiatives include children’s education, enabling the disabled, Artisan

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parks, women’s empowerment environment management programmers and other

community initiatives. Titan is a signatory to the Global compact and has been

awarded to the company.

The manufacturing units of watch and jewellery division at Hosur are certified

under ISO 9001:2002 quality management system standards as well as ISO 14001

environment system standards.

2.2.7 ,Goal of The Company:

Ensure high degree of satisfaction to all stake holders.

Pals India on the world map of high quality goods and services.

Constantly and value to the prestigious TATA name.

2.2.8 ,Titan’s Corporate Objectives:

A significant and respected global watch brand

The market leader in India

Ensure high degree of satisfaction to all stake holders

Place India on the world map of high quality goods and services

Constantly add value to the prestigious TATA name.

2.2.8 ,Five Core Values:

The Tata group has always sought to be a value driven organization .these

values continue to direct the group’s growth & business. The five core Tata values

under pinning the way do businesses are:

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Customer Focus:

We are passionate about understanding customer needs and expectations.

Delighting our customer is therefore a natural outcome.

Performance culture and term work:

We dare to dream big and work together to realize it.

High performance is the way of life with us.

Quality:

We will attain and maintain excellence in all we do.

Creativity and Innovation:

We are an ideas company.

Creativity and innovation are our lifeblood.

Wealth creation:

We ensure creation of value in all that we do for our stakeholders.

2.2.9, Titan Derivation:

The name Titan is an acronym derived from the words Tata industries and

Tamilnadu. Titan watches limited is a joint venture of Tata industries & Tamilnadu

Industrial Development Corporation Limited &located in state of Tamilnadu.

Another contributing factor to the choice of the name was its rich meaning the

word ‘Titan’ means.

One who has extraordinary size, strength, intellect or power.

Member of race of giants who were descendants of Uranus & Gaea, early

Greek Gods.

Titan industries limited was incorporates in 1984 as joint venture between the

Titan and Tamilnadu Industrial Development Corporation Limited. A government of

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Tamilnadu undertaking. The company has its registered office on Hosur an industrial

town in Tamilnadu titan corporate offices located in Bangalore Karnataka state.

2.2.10 “External Recognition for Titan Brand”:

Titan has won the “retailer of the year “award for 2005 for watches retailing

and also retailer award in overall across other categories and brands it

images fashion award successively for 5 years.

Titan bagged the “Award for brand leadership” in the consumer durables

category conducted by brand summit it also won the “retailer of the year

award “for retail excellence in the lifestyle category at the India retail

summit.

Business world “Best lifestyle product design award” was bagged by titan

“Edge” slimmest watch in the universe.

Titan world watch campaign won the “silver medal “in the year 2004.

2.2.11, Titan Franchise

Titan is the market leader, having a variety of ranges The trainees learnt to

become more approachable by observing the personnel department.

2.2.12, The World of Titan:

We have revolutionized watch retailing in India, by setting up a chain of high

profile stores. The World of Titan is our face in the market, a store providing an

international ambience showcasing our entire range. This provides the customer with

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the complete brand experience - making it the most preferred place to buy the most

preferred watch from.

2.2.13, Current Network:

Over a period of 20 years, the chain has grown to 235 showrooms at prime

locations across 113 towns in India. These showrooms have grown along with the

company, both in business and profits, which is testimony to the success of the chain.

The World of Titan is the face of 'Titan' in the marketplace. Hence, each

showroom has a turnover of about Rs. 20 to 30 million a year in large cities

and about Rs. half a million a year in smaller towns. All existing

showrooms exhibit a consistently high growth of about 15% to 25% every

year.

The World of Titan stores show a healthy return on investment of more than

24%. Although the net earning potential of a showroom varies from market

to market, in all cases it exceeds market rental value of the property.

Most showrooms break even in the first year and start making profits from

the second year onwards.

We have a dedicated retail team with professional expertise in setting up

and operating showrooms across the country. This team is dedicated to the

World of Titan and works on improving their business potential.

2.2.14, Distribution in India:

A key business partner of Titan in the marketplace, is the redistribution

stockiest. The distribution channel handles well over 50% of the watch business of the

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company. The main focus of this channel is market penetration and coverage.

Currently we have 65 distributors handling well over 6000 dealers across the country.

2.2.15, Watch Industry:

Started as a watch company, Titan Industries' main focus has been to increase

the breadth and depth of its portfolio of product offerings. International labels such as

Tommy Hilfiger and Hugo Boss are now a part of its basket, along with Fast track —

a brand targeting youth — and the mid-range brand Sonata. The company

manufactures more than nine million watches every year, has a customer base of over

80 million, and accounts for 60 per cent of India's organized watch market.

In 2005, bolstered by the success of Tanishq —- a range of premium branded

jewellery — the company launched its second jewellery brand, Gold Plus, aimed at

the mass market. The company has recently diversified into fashion eyewear by

launching Fast track Eye-Gear sunglasses and prescription eye wear. Titan's

manufacturing capabilities were leveraged into a new business unit called the

Precision Engineering Division in 2003.

2.2.16, Competitive Strengths:

o Strong brands

o Strong retailing, distribution and supply network.

o Design experience.

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o Integrated manufacturing

o Leading market position

o Focus on quality

o Experienced management and technical team.

2.2.17,World of titan showrooms:

World of Titan showrooms are both company managed and finished. Currently

they have over 179 words of titan showrooms in over 105 towns. The company

managed showrooms serve as flagship retailing stores designed to provide the best

that the world of titan has to offer to customers. They also influence the operations of

other franchisees and bring about uniformity across the retail chain.

a)Watches:

Titan currently has four main watch brands. The premium brands are Titan and

Xylys — a Swiss made watch designed to attract the highend market segment. The

company has launched two sub-brands under the Titan umbrella; Titan Edge

incorporates the world's slimmest watch movement and Titan Raga is a brand aimed at

women. Apart from these, the other offerings are Heritage, Wall Street, Regalia,

Aviator and the premium brand Nebula, which is crafted with gold and precious

stones. Sonata is India's largest selling watch brand. Fastrack focuses on youth and

trendy fashions. The company also markets Tommy Hilfiger and Hugo Boss under

licensing arrangements.

The company has more than 200 exclusive showrooms, christened 'World of

Titan', across 112 cities, making it one of the largest chains in its category. Its watches

are sold through over 12,000 outlets in over 2,500 cities and are available in over 30

countries, primarily in the Middle East and the Asia Pacific regions. Titan's after sales

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service is a benchmarked operation, with a network of 750 service centres and

amongst the world's fastest turnaround times. The company has a world-class design

studio for watches and accessories.

b)Jewellery:

Tanishq is India's largest jewellery brand, offering a range of gold and platinum

jewellery, embellished with precious stones. It is available in more than a hundred

specialty boutiques in 71 cities across the country. The new brand `Gold Plus' is a

retail offering for the mass market, selling plain gold jewellery in more than 20 cities.

The jewellery division has an exclusive design studio.

c)Eyewear:

Eye+ is Titan's new division, selling Fastrack sunglasses and a range of prescription

eyewear — frames, lenses, sunglasses, accessories and contact lenses.

d)Precision Engineering Division:

This unit supplies precision components to the avionics and the automotive industry.

It also manufactures dashboard clocks as original equipment manufacturer (OEM) to

car manufacturers in Europe and America. The division also provides fully integrated

automation solutions.

2.2.18,Location:

Headquartered in Bangalore, the company has manufacturing and assembly

operations at Hosur, Dehradun, Roorkee and Baddi (Himachal Pradesh) and an ECB

plant in Goa.

2.2.19,Process Adopted At Titan Watches::

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Titan produces stainless steel, brass watch cases by cold forging and machining

operations. Watch movements produced by titan are from highest class of precision

technology adopted by world renowned watch manufacturing in most of the areas

automatic and semi-automatic machinery’s are used for mass production.

It is worth mentioning that the tool room is equipped with state of the art

machinery’s which can produce micron accurate precession tooling for watch

movement and case manufacturing.

2.2.20, Under Watch Division:

The watch division is the mother concern for the over all titan group of

industries. At present the watch division consists of young and energetic male and

female employees 1798 and 387 respectively. Apart from 31 trainees who are engaged

in various multiskilled operators in different areas like manufacturing or watch case

components, module and watch assembly.

CHAPTER-3

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3.1 PRODUCTION DEPARTMENT

3.1.1, INTRODUCTION Titan’s state-of-the-art which and jewellery manufacturing plants are located

in Hosur in the southern state of TamilNadu spread over 55000 square meters of

build-up space’ Titan employs about 3000 highly skilled personnel.

Titan’s watch manufacturing facility was set up in 1987 in Hosur, India, with

initial technical Know – how from Europe and Japan. Over the years, the company

has grown to become one of the largest integrated watch – manufacturing units in the

world.

3.1.2,Production Department and Functions:

a)Auto-Turning:

The manufacture of all cylindrical watch components.

b)Assembly:

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Manufacturing

Module Case Assembly

Auto turning Gear Hobbing Stepper Motor Module Press Shop Ebauche Treatment

Case Press shop Case Machine Shop Case Polishing Shop

Case Plating Ion Plating

Case Assembly

Casing Module

Planning and supervising process of assembly watch case parts.

c)Case polishing:

Buffing and polishing watch cases to improve surface finish.

d)Case plating:

Providing a various surface coating to case parts and straps.

e)Costing:

Comparing actual and standard value and so find out the variance in order to

reduce the cost.

f)Designs:

Design innovation and the preparation of standards technical design

incorporating manufacturing details of finished products.

g)Excise:

Full of documentation for both excise duty and service tax of finished goods and

manufacturing.

h)Gears and assembly:

The production of all gears required for watch manufacturing.

i)Inspection and quality control:

Complete quality control through all stages of manufacturing and assembly.

j)Press shop:

The production of steel metal components required for the manufacture of watch

module.

3.1.3, An Overview of Titan Manufacturing Facilities:

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Titan has one of the largest and most integrated manufacturing facilities in

the word for watches. The capabilities in each area are given below.

3.1.4, Manufacturing process:

Watch and its parts

Watch

Movement Parts Appearance parts

Movement Parts Case Dial Hands Strap

Or

Bracelet

o Main Plate (EBAUCHE)

o Pressed components

o Turned components

o Electronic components

Any watch can be primarily divided into 2 parts; which is the appearance parts and

movement parts. The appearance parts are the visible parts of the watch, which serve

both the aesthetic and functional purposes and include the case, bezel ring, crown,

dial, hands, strap and crystal. The movement parts are the mechanism of the watch

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that enables it to depict time. The more functions of a watch the greater the number of

parts.

They have the facilities to manufacture all the parts of a watch. The subsidiary in Goa

manufactures and sources to their movements and integrated circuit boards while their

unit in Hosur manufacturers all the Assembly parts. Though they have the capacity of

manufacturing watch bracelets, they outsource the same as it is

more cost effective.

3.1.5,The activity flow in the department is described below:

Realize of production order and material requisition by PPC.

(Production planning control)

Draw material from stores/previous operation and PPC.

Carry out production as per the work instruction.

Dispatch the components as per procedures.

Inspect the components as per procedure.

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3.1.6,Design and Development:

This is one of the core strengths of Titan. The designs department is well

equipped with workstations and computers to enable the designers to have free hand.

The designs department uses to latest software’s like AutoCAD, Pro Engineer where

in all their solid modeling, drafting is carried out. They have excellent co-ordination

between various departments to support the manufacturing activities. Various

developments has enabled the designs to be flexible and in line with manufacturing as

well as with the market. The types of design is product design tool design packaging

design. Design innovation and the preparation of standard technical designs

incorporating manufacturing details.

3.1.7,Tooling:

The tool room is equipped with CNC wire cutting machines capable of

handling upto 0.03mm wire, precision CNC milling, Jig Boring, Spark EDM

Cylindrical grinding and other supporting machines. The tools manufactured are

Progressive dies, multi station – cross travel combination tools, multi-cavity prevision

moulds, forming dies, cutting tools, high precision step drills, jigs and fixtures.

3.1.8,Press working:

Stamping presses of 25T and 35T capable of handling upto 130 SPM,

friction screw presses, hydraulic presses upto 300T, 25T secondary operation presses

with die cushion, and hot forging press. The products are precision forgings in

stainless steel and brass, complex stainless steel sheet – metal parts with high

accuracy, coined parts in Stainless steel, compacting and profile

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3.1.9,Precision turning:

About 200 machines comprising of sliding head stock automats

(Peterman P3 and P7), CNC sliding head stock automats (CINCOM) and CNC turning

centers. Titan currently handle precision turned parts for telecom industry and

speedometer parts apart from the regular watch parts.

3.1.10,Moulding:

35T and 75T Aurburg and 25T Batten field closed loop CNC. The products

are precision watch movement parts, dashboard pointer parts, speedometer parts.

3.1.11,Surface finishing:

Automatic polishing and buffing facilities for round parts, flexible

components (such as bracelets), super finishing of small / miniature / slender parts (by

planetary tumbling), fine sand blasting and staining.

3.1.12,Plating / coating:

Wet plating capable of heavy plating of precious metals and PVD coating.

3.1.13,Automation / Machine building:

Integrated facility for design, fabrication and commissioning of Assembly

automation and special purpose machines.

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3.1.14,Heat Treatment:

Comprehensive facility including vacuum hardening.

3.1.15,Electronics:

A state of the art facility for manufacture of stepper motors, and high quality

electronic circuit blocks (ECBs)

3.1.16,Assembly:

Assembly facility suitable for any type of assembly operation.

3.1.17,Quality management:

Titan have an in-house standards room, a well equipped reliability test lab,

metallurgical test lab apart from the measuring and test equipment required at

each production shop

The manufacturing facilities are certified for ISO 9000 quality systems.

Titan is also certified for ISO 14000 Environmental Management Systems.

27

3.2, SYSTEMS DEPARTMENT

3.2.1,INTRODUCTIONThe IT requirement of Titan is fulfilled by the systems department. The system

department is integrated in its set up and is located at Hosur plant. The system

department primarily caters the hardware as well as software needs of Titan. It

supports its manufacturing, sales, finance and all the functions. The following chart

shows the brief functions of the systems department.

28

Systems

Hardware Software

Hardware Software

Certification Certification

Maintenance Maintenance

Outsourcing Outsourcing

Development Development

Up gradation

The whole of Titan’s manufacturing activities, marketing, finance, planning are

integrated through one of the leading and quality enterprise resource planning

software called SAP R3. The main advance of this software is that it can take care of

the entire activities of the plant.

The advantages of SAP are

Inventory reduction

Product lead timer education

Better utilization of machines

Better planning

Seamless integration with marketing

Lean manufacturing

Better Management Information System

Integration of SBU’s (Strategic Business Units)

29

3.3,FINANCE DEPARTMENT

3.3.1,INTRODUCTION

Today, Titan has over 60 per cent of the domestic market share in the organized watch

market. Its exclusive retail showroom chain – World of Titan – is amongst the largest

in its category.

For the year 2008-09, Sales income grew to Rs. 3,847.72 crores increasing

by 26.5% from Rs.3,041.09 crores.

Profit before taxes grew by 14% to Rs. 230.56 crores from Rs. 202.30

crores during the previous year.

Net profit for the year stood at Rs. 158.96 crores as compared to Rs. 150.27

crores in the previous year.

Watch segment sales grew by 3.6% to Rs. 908.49 crores, while Jewellery

sales went up by 36.3% to Rs. 2,763.20 crores.

Sales of other products, including Eyewear, Accessories and Precision

Engineering components, rose by 48.8% to Rs. 136.29 crores.

3.3.2,International Operations

The Company achieved an export turnover of Rs.130 crores during the year. Exports

include sale of Watches, Jewellery and Precision engineered components.

a)Dividend

The Directors are pleased to recommend payment of dividend on equity shares

at the rate of 100% (Rs.10.00 per equity share), including a special Silver Jubilee

dividend of 20%, subject to approval by the shareholders at the Annual General

Meeting.

30

b)Finance

During the year under review, the Company raised a total of Rs. 249.20 crores

from borrowings, of which Rs. 239.82 crores were from Commercial banks the

balance of Rs. 9.38 crores from other sources. Borrowings of Rs. 287.55 crores

were repaid during the year.

c)Depreciation

During the year 2008-09, the Company revised the estimated useful life

of Furniture & Fixtures from 15 years to 5 years which has resulted in an

additional depreciation charge of Rs. 7.90 crores.

3.3.3, Objectives for 2008-09

Turnover to grow by about 30% over previous year, to target Rs 4,000 crores

Operating Profit to grow in similar fashion

Significant retail network expansion

Balance sheet :

Mar ' 09 Mar ' 08 Mar ' 07

Sources of funds

Owner's fund

Equity share capital 44.39 44.39 44.39

Share application money - - -

Preference share capital - - -

Reserves & surplus 506.85 391.78 283.06

Loan funds

Secured loans 116.76 188.11 172.67

Unsecured loans 58.65 69.78 74.34

31

Mar ' 09 Mar ' 08 Mar ' 07

Total 726.65 694.06 574.45

Uses of funds

Fixed assets

Gross block 593.04 558.07 515.48

Less : revaluation reserve - - -

Less : accumulated depreciation 318.56 285.61 264.34

Net block 274.48 272.46 251.15

Capital work-in-progress 19.52 9.99 15.97

Investments 7.66 47.39 27.02

Net current assets

Current assets, loans & advances 1,492.42 1,280.79 999.33

Less : current liabilities & provisions 1,067.44 916.58 723.22

Total net current assets 424.98 364.21 276.10

Miscellaneous expenses not written - - 4.21

Total 726.65 694.06 574.45

INTERPRETATIONS:

The sources of funds have been raised more from equity shares. They have

been gradually increased from 2005 to 2009.

There is an increase of flow of funds from reserves and surplus.

The funds from secured and unsecured loans have been decreased because

there is enough funds from reserve.

Funds are minimum utilized in investments of fixed assets.

The capital has been increases twice more than previous year .]

3.3.4,PERFORMANCE--2008-09 :

32

Income (Rs. In crores)

3.3.5,Profit before tax (PBT) (Rs. In crores)

33

3.3.6,Capital Employed (Rs. In crores)

34

3.3.7 INVENTORY MANAGEMENT AND CONTROL

Need for inventory control:

  Inventory is maintained basically to ensure operational smoothness. It is the

materials department’s responsibility to ensure that this operational smoothness is

carried out at the minimum cost commensurate with efficiency. This is done through

inventory control. 

Inventory control may be defined as a set of policies and procedures by which an

organization determines what materials it should hold in stock and the quantities of

each that it should carry.

        Inventory consist of:

Stores inventory: raw materials, spares, components, etc.

Work-in-process: semi-finished goods on the factory floor.

Finished goods lying is the warehouse prior to dispatch for sale.

Large inventories tie up large amounts of money. On the other, too little

inventory might end up in work stoppages, extra machine set ups, lost sales and loss

of customer goodwill because of inability to deliver the product. It is of prime

importance that a business organization determines and maintains an adequate

inventory for a given of business.

Inventory is created for two general purposes- protection and economy.

Protection refers to the provision of the necessary raw material with minimum delay.

Whereas economy refers to effect lower product cost by realizing the economies

resulting from longer quantities per order. There are two fundamental questions which

normally arise in inventory control:

35

How much to buy at one time?

When to buy this quantity?

Four fundamental factors that govern this are:

Requirements: This is based on the information

Quantity in stock or on order

Procurement time or lead time

Obsolescence.

3.3.8,STORES ACCOUNTING AND RECORDS

 Stores records:

        Various records are used in the stores.

Bin cards: These cards are very simple, giving the description of the item

including the code no., the unit of issues, the quantity of the item, etc.

Stock cards: These are kept in the stores office. There are various kinds of

stock cards- Showing the quantity only, Showing the quantities and unit price,

Showing the quantities, unit price, value of stock, value of the balance in stock.

Stores Transfer Note

Material return note

Goods inward note / goods receipt no.

Materials reject no.

Scrap note

Gate pass

Inventory for Temporary loan

 

36

3.3.9,Techniques of stocktaking:

Annual stocktaking

Perpetual inventory method

Daily stocktaking

Checking by stores- in-charge

Periodic checking

Stock valuation : there are various methods of valuing material issues.

FIFO: First in first out

LIFO: last in first out

HIFO: Highest in first out

NIFO: Next in first out

Base stock

Simple average

Weighted average

Standard average

Replacement price

From all the above mentioned concepts and advantages, it is clear that stores

and inventory management plays a major role in successful completion of any

infrastructure project and also accounts a major chunk of profitability of the

contractor.

37

3.4,HUMAN RESOURCE DEPARTMENT

3.4.1,INTRODUCTION

The company has a total of 3134 permanent employees as on 2006, working

in various departments including corporate office, company owned show rooms,

factories and other units, they also have various trainees, contract workers and

apprentices who are hired on a job work or on a temporary contract.

Employees are classified into different levels, namely:

1. ‘E’ Level: It constitutes the workmen at the factories.

2. ‘L’ Level: It constitutes junior to middle management.

‘R’ are those employees who work in both watch and jewellery division.

(Retail outlets).

3. Senior Management level.

Qualification Number of Employees Percentage

Undergraduates 900 29

Diploma and ITI 568 18

Graduates 915 29

Post Graduates 383 12

MBAs 172 5

Professionals 196 6

Total 3,134 100

38

3.4.2,Recruitment:

In case of recruitment for the vacancies approved by the Management, the

recruitment will be done automatically except if the indenting section wants to

postpone or advance it, in which case they have to send a separate note for it.

As far as possible internal mobilization of people would be looked into and in

case of non availability of the right manpower within the company, we may either

refer to the application bank or advertise.

Recruitment will be carried out according to the standards specified in the

recruitment Standards Annexure.

As far as possible, the vacancies will be filled with trainees and wherever

previous experience is a must we will resort to experienced people. For each category

the selection process will be as follows.

3.4.3,Process of Selection:

Category Selection Process

Operator Trainee (OPT) Psycho Diagnostic Test (PDT) Written Test, (WT), Practical Test (PT), Interview, Medical & Security Verification (SC)

Craftsperson Trainee (CPT) PDT, WT, PT, Interview, Medical & SV

Graduate trainee PDT, WT, Intelligence Quantitative Test (IQT), Interview, Medical, SV & Personality Test

Technician Trainee / Supervisor Trainee (TT/ ST)

PDT, WT, IQT, Interview, Medical, SV & Personality Test

39

Programmer Trainee / Engineer Trainee / Personnel Officer Trainee (PT /E T / POT)

PDT, WT, Interview, Medical & Personality test.

Officer Trainee (OT) Group Discussion (GD), Interview & Medical

Management Trainee (MT) GD, Interview & Medical

Others Upto L3 PDT, WT if needed, Interview, Medical & SV

L4 to L5 GD – if needed, Interview by Panel, f needed to be seen by VP concerned Medical & Business Head

L6 and above Candidate Panel Interview / Concerned VP should be seen by Business Head or approval on Bio – Data to be obtained before recruiting the candidate.

Interview candidates will be reimbursed their traveling expenses depending

upon the category, if they travel beyond 40 kms radius from place of interview.

For L1, L2, L3, L4, L5 category actual to and bus fare will be paid. If the

travel by train, second class train fare will be paid.

For a Managerial position either first class train fare or air fare will be

reimbursed as being mentioned in the call letter. The decision will be made by the

respective VP and Head of Human Resources.

3.4.4,Guidelines for issuing Appointment Letters:

Authority of issuing Appointment Letters –

All letters of appointment will be issued as per following guidelines.

Levels E1- L9 Head of Human Resources – GM – HR

DMs and above MANAGING DIRECTOR

40

All appointment Letters will be issued in duplicate and one copy of the letter

will be duly signed by the candidate to be retained in the personal file of the

employees.

3.4.5,HR initiatives:

There is a HR initiative called ‘IDEA+’. In these, employees are welcomed to

provide suggestions to improve quality, performance, cost reduction, etc., If their

suggestions are feasible, they are accepted and the others are rejected. A cash award of

Rs.50 is given to them as a token of appreciation. After implementing the suggestions,

if they yield a good profit. 10% of the profit amount is shared with the concerned

employee.

3.4.6,Performance Appraisal:

‘Performance Appraisal is an objective assessment of an individual’s

performance against well defined bench marks’. The performance appraisal method

followed is based on the subordinate relationship, whereby the superiors rate their

subordinates.

3.4.7,Training:

Training is an ongoing processes aimed at capability building of the employees at all

levels. Training programs are classified into the following categories:

Skills

Knowledge

Behavioral

41

3.4.8,Workmen capability building:

Training and development for unionized employees at the manufacturing units is

focused on skills programs like ‘personal touch’ to address interpersonal are related

issues were conducted.

Employee retention/ Incentive plans:

Company has an annual appraisal system in place and pursuant to this

system, performance linked pay, annual variable pay and/or commission is paid to the

employees.

The performance of the employees is classified into namely:

A. Extremely High performer

B. High performer

C. Good performer and

D. Performer

3.4.9,Trade union:

The company has one registered union being the Titan employee union (“union”),

which is registered or affiliated with any political party or other organization.

3.4.10,Tata code of conduct:

All the employees are bound by the Tata code of conduct under which they are

required to deal on behalf of the company with professionalism, honesty, integrity, as

well as high moral and ethical standards. Such conduct is to be fair and transparent

and be perceived.

42

3.4.11,Manpower and Business Plan:

o Manpower Planning and the requisite budget will be prepared at the end of the

financial year.

o General Manager HR will prepare manpower budget and get the approval for

any new recruitment from concerned.

3.4.12,Exit policy:

o Resignation

o Notice period

o Authorized signatory to issue the relieving letter.

o Exit interview.

3.4.13,Respecting and valuing employee:

o Fairness

o Improving quality of life

o Human approach

o Empowerment of people

o Partnering

o Encouraging people innovation.

3.4.14,Creating a positive work culture:

o Non- hierarchical, non-burr a wretch transparent style.

o Consensus based decision making process.

o Performance and merits orientation.

43

3.4.15,Educational Policy:

College level/ Professional Courses:

1. Full time regular employees may take college – level / professional courses for

position related and career – related purposes, including study for a

professional degree.

2. For an employee to take advance of this privilege, his / her course of study

must be:

3. Approved by a Department / Unit head and Human Resource Department

4. Related to the employee’s current position or part of an approved career –

related program.

Two increments for additional qualification-

‘E’ Level:

Effective 01.04.1996, it has been decided to grant two additional increments in

their respective grades to those ‘E’ level employees who satisfy any one of the

following conditions:

a) Those employees possessing additional technical qualifications from

Government recognized it is, or Diploma in Engineering (3 years) course from

recognized polytechnics or Graduation from a recognized University.

Certificate courses will not qualify for grant of the additional increments.

44

b) Those employees who have been recruited into the Company initially on a

contractual basis and who have been placed in regular grades after the initial

contractual period.

3.4.16, Quality Committee:

Quality Committee plays an important role in implementing the various quality

concepts and improvement schemes, which form part of the world – class

Manufacturing concepts

3.4.17, Safety Committee:

Safety Committee takes care of the employee’s safety in their work place. It

also ensure the fulfillment of various requirements under factories act.

3.4.18, Canteen Committee:

Canteen Committee is a statutory compliance under the factories act and plays

a vital role in the quality of food and also helps in fixing the menu of the canteen on a

monthly basis.

3.4.19, Payroll Month:

Normally attendance will be closed on the 14th of every month. Accordingly

the salary will be calculated based on the attendance for the period 15th of previous

month to 14th of the current month.

3.4.20, Salary Payments:

45

Payroll department is responsible for handling salaries. The HR Department

shall intimate to the payroll Department, every month details – regarding new joinees,

resignation, retirement, loss of pay, leave etc.,

Training and Development Policy:

Responsibility : All Training Centers

Applicability : All Regions

3.4.21, Employee Training & Development:

A. General Provision:

i. It is the company’s policy to provide appropriate learning opportunities to

assist employees in gaining job – related skills and knowledge that will

contribute to improved performance and career development.

ii. All training educational programs will be coordinated through the Human

Resource Department.

B. Development Planning:

i. The Human Resource Department. In consultation with managers and

supervisors will ascertain group and / or individual training needs. Every

employee is eligible to request as formal development plan which is

realistic, job related and upon completion would result in greater employee

capability

3.4.22,Training Centre:

46

The company has a full – fledged and well equipped training Centre at Hosur,

which is used for conducting in-house programs.

The training programs are conducted in two-ways:

In-house using internal facility

Customized programs using external faculty.

E-Level Employees:

The training needs for the E level employees are arrived at keeping in mind the

Individual, Departmental and organizational needs.

Since the current focus of the entire organization is on World Class

Manufacturing (WCM) the individual needs are also aligned to the organizational goal

and both Technical and Behavioural inputs are provided in the key areas.

L-Level Employees:

The Individual training and developmental needs of the employees, spread over

the various locations, are identified based on the developmental plan drawn by the

employees/ superiors in the performance appraisal forms. The departmental needs are

identified through the department head. The organizational needs are identified form

the Business Plan.

Training Calendar

The training needs are consolidated at the beginning of the financial year and a

training calendar is designed. The calendar provides the information regarding the

dates of the various programmes, the time duration, the faculty (internal or external)

and it is circulated to all the departments. Nominations for the respective training

programmes are receive from the department heads well in advance and the program

is organized accordingly.

47

Induction Program:

All new entrants to the company will be required to go through an Induction

program to acquaint him / her with TITAN. This would vary from one week to three

weeks at TRAINING CENTRE, depending on the position for which the new

employee is recruited.

3.5, MARKETING MANAGEMENT

3.5.1, INTRODUCTION

Titan’s watch segment is the India’s chief producer of watches and ranks fifth

in the world in production of watches.

Company really understands the psyche of consumer and they offered quality

products in classical design with superior technology.

Today the company has model for every prices segment and every market.

Basically it deals with three target market

High income group

Middle income group, and

Lower income group

Titan alone holds 60% market share in domestic level whereas 60% in

organized market.

As our Marketing Objectives is to increases Market Share of the company by

5% in the coming year as well as to increase the profitability of the company by 10%.

The competitor are also playing an important role to grab the market

share .We as the Marketer try to increase the market share by grabbing the

opportunity from other company. To achieve this company have to follow the

marketing strategies, which basically include the marketing mix.

The marketing strategies basically include the 4 ps .

48

There the marketer have to focus at first on PRICE ,which basically for The

titan is not affordable in the Mid –Segment.

We also have to implement this type of innovation to bring the flexibleness in

our product.

As it is also important to do some creativity in advertisement by showing the

importance of Time to the mass. The company brand promoter is Amir Khan but the

company can make it attractive by endorsing Katrina Kiaf .

The place can be taken into consideration ,as it is need foe the company to

open some show rooms in the rural area and as the company don/t have so much

market share in the foreign market ,so to expand the business company should launch

its showroom all over the globe in the more number.

Market share of the competitor in domestic market

HMT 17%

Maxima 13%

Rado 7%

Casio 3%

The strongest selling point of Titan is that it is available and affordable. Titan

provides watches for all segments, like from low-cost Sonata for first time user, Fast-

track for the trendy young, Dash for the kids, and the higher priced Regalia and

Nebula to the premium segment customer.

The Indian watch market is estimated at 25 million watches a year, where the

domestic sales is 6 million watches per annum. The rural segment is the diverse

market in the present scenario. The key success story of Titan is capturing the rural

market on a large scale. The range costs is between Rs. 495 to Rs. 1200. And the

model is available exclusively in all showrooms and is sold mainly in small-town in

India.

49

Though the company faced enormous challenges from its big list of competitor,

the company still in the number one position in domestic market because of the

weakness of the competitor.

The company becomes more reliable and more acceptances to the consumer

because of its marketing mix. The company has adopted the new marketing

innovation to improve the feature of the product by time to time.

Though the current financial environment is not in favor, but the company

performing well and saw an increasing trend in the profit chart.

The company trying hard to convert its weakness into strengths and threats into

strengths and threats into opportunities by bring revolution in the product style, model,

features, pricing policy, product quality, etc.

Companies certain initiatives and policy such as new innovative design,

guarantee, the research and development, wide dealer network, committed service

team, discount and offers make the company.

When we talk about the “wristwatch brand”, remember the only Indian

wristwatch market were so shabby, one more ordinary than other and when the craze

for “imported watch” was not implemented. That was before the time of titan, a name

which brought the revolution in the Indian wristwatch market.

Titan wristwatch brand is the part of titan industry, which was launched in

1987 by TATA group. TATA group had indentified the watch category as a potential

consumer market for the TATA’s to enter.

Xerxes Desai, a TATA veteran and the MD of TATA Press was elected to that

business.

By offering quality products and classic design with advanced technology to

the consumers, Titan made a success story. Outstanding services, wide variety of

models and effective marketing helped Titan to capture the market in its born stage.

50

The reason behind the success of Titan watches was their research on the

Indian consumer psychological mind. The company today has a model for every price

segment and every market, urban and rural, regional and international.

Titan brought quartz technology first in the Indian market and acquired first

place by displacing HMT into second place, who offers mechanically driven

wristwatch.

It also brought a sense of style and design, which is only available in the West or in

Japan at that point of time.

3.5.2, ENVIRONMENTAL ANALYSIS

The marketing environment.

Competitive Forces

Competitor

There are lots of competitor in wrist watch segment which directly or in directly

affecting the titan watches industry. The major players’ are-

Domestic Level:

HMT

Maxima-quartz

Rado

Casio

International level:

Espirt

Swatch

Citizen

Tag heuer

Seiko

Cartier

51

Giordano

Fashion Houses:

Dkny

Gucci

Adidas

Nike

Bvlgar

3.5.3, Purchasing power of consumers

BRAND PURCHASING

POWER (PRICE) RS.

CATEGORY

FAST TRACK 550-1,430 YOUTH

EXCTA,SONATA,

TITAN

595-1,430 LOWER MIDDLE

CLASS(Office wear)

SPECTRA 650-1,830 COMMON CLASS

ROYAL 960-2,830 UPPER- MIDDLE CLASS

RAGA 1,420-4,000 UPPER CLASS

BANDHAN 1,675-8,085 COUPLES

REGALIA 1,725-7770 UPPER MIDDLE CLASS-

UPPER CLASS

EDGE

4,500-24,200 BUSINESS CLASS

The company’s watch sales grew by 18.8 per cent and its income increasing

from Rs255.34 crore during the second quarter of last year to Rs303.45 crore during

the second quarter of this year.

On the basis of the above table and profit figure we easily understand consumer

buying power in target market.

52

3.5.4, Various models of Titan Watches:

Titan Sonata Women Titan Sonata Men

Rs.525.00 Rs.535.00

Titan Fastrack Men Titan Fastrack Women

Rs.1915.00 Rs.1035.00

Titan Raga Men Titan Raga Women

53

Rs. 1995.00 Rs. 2095.00

Titan Regalia Men Titan Regalia Women

Rs. 2495.00 Rs. 3495.00

Titan Steel Men Titan Edge

Rs. 3300.00 Rs. 4440.00

Titan Xylys Women Titan Nebula

Rs. 9250.00 Rs. 70000.00

54

Titan Xylys Men Titan Xylys Women

Rs. 19000.00 Rs. 18000.00

Taj Heritage Titan Steel

Rs. 10000.00 Rs. 5700.00

Titan Regalia Titan Ladies Watch

Rs. 4700.00 Rs. 1995.00

Titan Sonata Ladies Titan Sonata

55

Rs. 1245.00 Rs. 415.00

3.5.5, Marketing Mix:

PRODUCT

PRICE

PLACE

PROMOTION

1.Product:

Quality and leadership are the two main terms for the Titan. As to achieve the

marketing objectives this aspects should also be considered.

A. Product line: To increase the sales, the difference in the prices of the watches are

justified by the features.

B. Product pyramid: Portfolio of Titan’s product is of 3 distinct price-range that can

be defined in general, as Popular, Mid, and Premium. At the popular segment, the

emphasis is on in volumes but not in margins. At the premium segment, the emphasis

is on profits and image but not in volumes. Obviously, company giving more

emphasis at the top of the pyramid as profits at the 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

56

focusing on segments individually. In the past few years Titan has took a lot of

initiatives to focused on specific segments.

D. Product Quality: Quality and leadership are synonymous to Titan. It seek to

achieve both through their value for products compared to their prices.

2.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.

A. Survival:

In case of some of the watches titan prices them according to the features .The Exacta

is a simple steel watch priced at Rs.600-1,100. As the company also deals with

Spectra, Raga through pricing policy.

B. Market share:

As we know that 70% of sales in watches come from the lower segment, therefore by

pricing Sonata at 350 onwards with guarantee.

Titan prices its world watches which compared equal to an international players like

Calvin Klien 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 its design, the product, the love.

3.Place:

Keeping in mind about the young trendy and fashionable consumers, Titan distribute

its product and set up ‘world of titan’ in different region. The consumers life style in

57

India, especially in urban area(because the turnover in urban area is 210 million, while

the turnover in rural area is 90 million) plays a significant role in the success of Titan.

A.Time Zone: Titan Industries brings together the country’s leading watch brands

under one roof, providing the customer with variety in brands, looks and price ranges

and also efficient after-sales service. These 1142 Time Zones located across 89 towns

which offer its customer the complete watch shopping experience.

B.Value Mart: These outlets sell surplus stocks of Titan watches at reduced prices.

By doing these it offering fabulous value for money with the same warranty as a

regular full-priced watch enjoy. However these shops would not be placed in the main

locations and not working as a normal shops. This is to make the customer go to the

shop rather than the shop calling the customer and hence the locations are not very

suitable for shopping.

C.Sonata Stores: Sonata stores is also an Authorized Service Centre for Sonata &

Titan brands. Sonata store meet the large scale demand for the watch and also to

attract customers in more. These shops had full stocks of the watch in demand

whereas the others could afford to maintain only limited stock.

Marketing Implementations:

Marketing plan basically implemented on the basis of market segmentation .

We have gone through the target market segment which basically include

High income class

Middle income class

Lower income class

The marketing mix is the part of marketing strategies ,which help to the company to

match the needs of the consumer as well as the need of company, because we know

that “MARKETING IS THE SOCITAL PROCESS WHICH HELP IN

58

FULLFILLMENT OF THE NEED ,DEMAND OF THE CONSUMER AT A

PROFIT”.

Implementation is an integral part of strategy. It make sense when it is implemented

into Indian jewellery market it saw an opportunity for an organized sector. The

customer was moving towards branded goods in other segments. Titan did the process

of creating brands in the minds of customer.

4.Promotion:

Promotional pricing:

A. Marketing pricing: As by opening new shops such as the world of Titan –

buy directly from the dealer and hence the element of middleman is not there.

Promotion:

Marketing pricing: in this category buys watches for 17-18% lesser than MRP and hence they are able to

get the 17% profit margin on sales.

It is managing to successfully convince to the customer of the perceived value of

‘WORLD WATCH’ using hoarding all around the city, increasing buyer image, trust

worthiness, 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.

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 .

59

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. It can be Katrina Kaif, as now she is one of the popular actress in

Bollywood.

A. Promotion on occasion: Titan is one of the company which formally

believes in the policy of promotion the product based on the occasions.

.

3.5.6 Branding and advertising:

Advertising, sales promotions and visual merchandising are essential for marketing

consumer durable products like watches. The company handles advertising at the

national and regional levels. This includes national advertising in press and TV and

producing and distributing point of sale material like posters. They use celebrity

endorsements to increase the visibility of their brands. Each of celebrity endorsers are

carefully picked, keeping in mind their status in the market and its reflection on

brands.

For fastrack sunglasses they have signed up with Bollywood celebrity John Abraham

for promoting sunglasses amongst the young audience. For titan watches they have

signed with Amir Khan to promote multiple ownership of watches.

Quality Assurance:

The time products division received ISO14001-1996 accreditation in March 2002.

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Titan derives is main strength from its Sales and Marketing team. The detailed

list of the sales and other distribution network is given below.

Titan has categorized the demand of watches to attract various sections of the

society. Their marketing teams were able to break the myth of the society that Watch

is just a piece of valuable to a fashion accessory. Watch for an occasion was their

motto. Initially the presence was felt only the urban society. Later they penetrated the

rural section by introducing a range for the likes of the rural section. Currently Titan

has watches for every occasion and for a variety of price range starting from Rs. 250

to Rs. 1,80,000/-.

CHAPTER-4

4. LEARNING FROM IPT

The Plant layout is well designed to facilitate the workers in their work.

The inter relationship between the departments are good.

Welfare facilities provided are very good.

They are maintaining the Relationship with employers and employees.

They conducting the training programs very effectively for employees.

They have very good canteen facilities.

The Infrastructure is very well for working condition.

CSR activities well done by Titan industry

They are maintaining good customer relationship.

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4.1, SWOT Analysis

A. Strength:

1. Style: Titan first introduced the ‘style’ concept in India and projected the

watch as a fashion accessory. Now a day’s 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.

2. Models: As Titan offers the best and the biggest range to customer to choose

the watch of their choice with an affordable price.

It offers about 14 different names with about 1000plus different varieties with a

watch for literally everyone.

3. Exclusive products: Today Titan holds the pride for say that its products

both within the country and internationally running in battle position. Its EDGE

the slimmest watch in the world position.

Other than these there have few more strength like-

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4. Contribution of owned brands and retail. The profit is accounted by being in

the retail space which is booming.

5. Watches are available with popular functions like dates, multifunction and

chronographic.

6. Guarantee/warranty

A. Weaknesses

1. Pricing: the average price of Titan in mid-price segment is very high than the

other competitor. Average price for Titan is Rs.1100 while the price for HMT

is Rs.550. In the mid-price segment the company is not performing up to the

mark due to the lack of choice of consumers.

2. Market share: As the average price of Titan wristwatch is far more than the

other 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 mid-segment. Titan market share is between 18-20% which is far

lower than HMT and Maxima.

3. Globalized: As the company is Indian based which leads it to the strength,

where as it is the weakness also because the company not sufficiently

globalized.

B. Opportunities

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1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula,

Bandhan because 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

and colleges re-open.

2. 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 lovecare and makes emotion run high.

3. Exchanging offer: The Titan stores offer exchange offer of any old watch, of

any make, in any condition functional or otherwise and receive a flat discount

of 25% on their purchase of a brand new, stylish and technologically advanced

watch from Titan.

D. Threats

1. Competator: As we know that lots of Foreign brands are entering in our

country with their branded watches. As the removal of quantitative restrictions on

import watches leads to threat to titan.

2. Premium segment: As in premium segment Titan is getting threats from

reputed international brand such as Espirit, Swatch and Citizen.

3. 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 phone and some people think that there is no need of wristwatch

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4.2, PEST ANALYSIS OF TITAN INDUSTRY

. We need to understand the complete competitive landscape – things like

economic trends, technology and other factors impacting our organization.

One of the

more popular analytical models for environmental assessment is PEST:

Political – Understanding the political environment. For example, politicians

can create

new issues for a company, such as new reporting requirements for publicly

traded

companies per passage of the Sarbanes-Oxley Act.

Economic – Changes in the economy will impact a company, such as lower

investment

rates, higher interest rates, slower economic growth, and changes in

consumer

spending.

Social – Trends in demographics, population shifts, lifestyles, and other

changes in

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society can influence an organization.

Technology – Sudden changes can occur with new technologies, especially

for those

companies that depend upon technology for producing and distributing

products and services.

4.3, FINDINGS

Overlapping of sub brands

Competitors entering mid price market range (RS 1500-3500)

Stiff competition in premium segment market by international players.

Premium segment market are the only revenue generating market.

Failure of launch in European market.

How to create global brand identity like TOMMY,ESPIRIT etc.

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SUGGESTIONS

The company should earmark more money for the advertisement and sales

promotion of its products. It helps to increase the brand awareness and image.

The company should concentrate on markets in the international arena where

its competitors are less powerful.

Complaints should be rectified in the shortest possible time. For this a customer

satisfaction cell should be organized.

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CHAPTER-5

5.1,CONCLUSION

Titan is world’s Fifth largest manufacturer plant for watches. It has achieved

this position by its wonderful marketing strategies.

From time to time, it has been involved in STP analysis to sustain its brand

image and growth rate and also to become the leader in the Indian watch market.

The product range varies from Rs.275 to Rs. 1,75,000 covering all the economy

and super premium segments.

In addition to giving a tough competition to various Local brands in India, it is

also a strong competitor of various leading International watch makers.

Titan has over 60 per cent of the domestic market share in the organized watch

market.

Its exclusive retail showroom chain – World of Titan – is amongst the largest in

its category.

Titan watches are sold through over 9,000 outlets in over 2,300 cities and

internationally in over 30 countries including the Middle East and Asia Pacific.

Its after sales service is itself a benchmarked operation with a network of over 616 service centers and has one of the world’s fastest turnaround times.

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Bibliography

. S. P. RAO, Human Resource Management, Edition 2002

PHILIP KOTLER, Principles of Marketing, Edition 2005

M. PANDEY, Financial Management, Edition 2006

http://www.titanworld.com/titan_stories

http://www.tata.com/

http:// en.wikipedia.org/wiki/Titan_Industries

http://www.moneycontrol.com/stocks/company_info/company_history.php?sc_did=TI01

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