Study of Macro Environmental Factors of Titan Watches

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Gitam Institute of Foreign Trade

Gitam Campus, Gandhinagar, Rushikonda

Vishakhapatnam - 45

Marketing Assignment

Study of Micro-Environmental Factors of Titan Industries

Faculty: Dr. D. Ravinath

Prepared By:

Debashree Rout

About the Tata Group

As much an institution as it is a business conglomerate, the Tata Group is unique in more ways than one. Established by Jamsetji Tata in the second half of the 19th century, the Group has grown into one of India's biggest and most respected business organisations, thanks in no small part to its entrepreneurial vision, its commitment to ideals that put people before profits, and its fortitude in the face of adversity. The founder of the Tata Group began with a textile mill in central India in the 1870s. His powerful vision inspired the steel and power industries in the country, set the foundation for technical education, and helped India leapfrog from backwardness to the ranks of industrialised nations.

The Tata Group comprises 96 operating companies in seven business sectors: information systems and communications; engineering; materials; services; energy; consumer products; and chemicals. The Group was founded by  in the mid 19th century, a period when India had just set out on the road to gaining independence from British rule. Consequently, Jamsetji Tata and those who followed him aligned business opportunities with the objective of nation building. This approach remains enshrined in the Group's ethos to this day.

The Tata Group is one of India's largest and most respected business conglomerates, with revenues in 2005-06 of $21.9 billion (Rs 967,229 million), the equivalent of about 2.8 per cent of the country's GDP, and a market capitalisation of $56.3 billion as on August 30, 2007. Tata companies together employ some 2,46,000 people. The Group's 28 publicly listed enterprises — among them stand out names such as , ,  and  — have a combined market capitalisation that is the highest among Indian business houses in the private sector, and a shareholder base of over  2 million. The Tata Group has operations in more than 85 countries across six continents, and its companies export products and services to 80 countries.

The Tata family of companies shares a set of five core values: integrity, understanding, excellence, unity and responsibility. These values, which have been part of the Group's beliefs and convictions from its earliest days, continue to guide and drive the business decisions of Tata companies. The Group and its enterprises have been steadfast and distinctive in their adherence to business ethics and their commitment to corporate social responsibility. This is a legacy that has earned the Group the trust of many millions of stakeholders in a measure few business houses anywhere in the world can match.

It entered into the watch making business in 1984 with Tamil Nadu Industrial Development Corporation. Titan, to go back in time, was launched in 1987. It was arguably the most significant product launch of that time. While taking on slumbering giant HMT, Titan quite simply changed the way the product was made, sold and bought in this country. People who were used to wearing watches that looked like tawas discovered what wearing a sleek watch was all about. Previously they had to smuggle one in from Singapore, past the eyes of prying customs officials! The customer suddenly discovered he could actually buy his Titan watch in a relaxed and friendly ambience; one that he had been hitherto unaccustomed to.

Titan Industries

Profile

Titan Industries is India’s leading manufacturer of watches and jewellery and the world’s sixth largest manufacturer brand of watches. Established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation, the company transformed the Indian watch market, offering quartz technology with international styling, manufactured at its state-of-the-art factory at Hosur, Tamil Nadu. In 1995, the company diversified into jewellery under the brand Tanishq.                                                                                 

 

Leveraging its understanding of different segments in the watch market, the company launched a second independent watch brand — Sonata — as a value brand to those seeking to buy functionally styled watches at affordable prices. It also entered the segment of premium fashion watches by acquiring a license for global brands such as
Tommy Hilfiger. Titan has also diversified into fashion eyewear with its Fastrack Eye Gear sunglasses. Further, Titan leveraged its manufacturing competencies and branched into precision engineering products and machine building in 2003.

Areas of business

Titan manufactures over 7 million watches per annum and has a customer base of over 65 million. The company has manufacturing and assembly operations at Hosur, Dehradun and Himachal Pradesh. Its main products are:

Watches: Titan manufactures two main brands viz. Titan for the premium segment and Sonata for the below-$25 category. The Titan brand architecture comprises several brands, each of which is a leader in its segment. Notable among them are: Titan Edge – the world’s slimmest watch; Nebula – in solid gold and precious stones; the Gold and Steel collection; Raga 9 to 5 – for the woman achiever; Flip – India’s first and only reversible watch with two movements and dial faces; and Fastrack in the sporty casual category.

Today, Titan has over 60 per cent of the domestic market share in the organised 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 UK, Spain, Greece and countries in the Middle East and Asia Pacific. Its after sales service is itself a benchmarked operation with a network of over 616 service centres and has one of the world’s fastest turnaround times. The company has a world-class design centre both for watches and jewellery.

Jewellery: Tanishq is India’s largest and fastest growing jewellery brand. Tanishq has 75 boutiques in 55 cities across the country with a premium range of gold jewellery studded with diamonds or coloured gems and a wide range in 22kt pure gold. Platinum jewellery and designer silverware are also a part of the product range. Tanishq is one of India’s largest speciality retailers and is transforming the jewellery market in India.

Precision engineering: The company’s precision engineering division manufactures dashboard clocks as OEM to car manufacturers in Europe and America. It also supplies precision components to the avionics and the automotive industry.

Eyewear: Recently it entered the eye gear market with its brand Fastrack mainly targeted at the premium segment.

Achievements


Titan Industries has been awarded the following:

  • The President of India’s Award for employing the disabled.
  • Friends of BIL Award for employing the handicapped.
  • The Titan Design team received 7 accreditations at the NID — Business World Awards, including the 'Young Design Entrepreneur of the Year'.
  • Titan and Tanishq were adjudged 'Most Admired Brands' as well as 'Retailer of the Year' by Images Fashion Forum.
  • Titan retained it ranking as the 'No 1 Brand' in the Brand Equity Survey, in the Consumer Durables category.

Corporate social responsibility


Titan has a clearly defined policy on social responsibility. Its CSR initiatives include children’s education, employing the disabled, women's empowerment, environment management programmes and other community initiatives. The company is a signatory to the Global Compact and has been awarded the Helen Keller and Mother Teresa awards. Its Watch and Jewellery Divisions are certified under ISO 9001 :2000 quality management system standards as well as the ISO 14001 environment system standard.

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The Company’s Microenvironment

The microenvironment consists of the actors close to the company that affect its ability to serve its customers – the company, suppliers, marketing intermediaries, customer markets, competitors, and publics.

The Company

In designing marketing plans, marketing management takes other company groups into account – groups such as top management which sets the company’s mission, objectives, broad strategies etc., finance, research and development (R&D), purchasing, operations and accounting.

Top Management: The Tata Group is headed by Group chairman Ratan Tata. The Group Executive Office and the Group Corporate Centre are the two ...

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