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 budgetconscious. • 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.
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2.1.3
Brands for Titan
The main brands that have reigned on the Indian market for Titan over the years are: •
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.
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•
SONATA
The wide collection that includes 400 models of watches is designed for customers, who look for a mix between durability and affordability. These 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 steeland-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 stateof-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.
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2.1.4
Areas of business
Titan's main products are:
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 worldclass 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
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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.
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
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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-salesservice 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
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2.2, TITAN COMPANY PROFILE 2.2.1, INTRODUCTION 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.
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I.
Vision Statement:
a) Vision: To be innovative world class, contemporary and build India’s most desirable brands.
b) Customer focus: 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. 10
Name of the Company: The name TITAN is an acronym derived from the names of the promoters. Tata Industries & Tamil Nadu Industrial Development Corp. “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 Mar May
1984 1985 1985
Titan Watches Ltd., was incorporated Approval received by Titan Watches Ltd., to implement the project Application to Government of India for phased manufacturing
Oct.
1985
programme. Mr. Robert Director of Overseas, Projects France Ebauche visits India for finalization of product, product mix and technology.
Mar. May
1986 1986
Commencement of building construction 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: 11
A Titan industry has three major manufacturing divisions namely: • Watch division 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: 12
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 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: 13
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:
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.
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• 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 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.
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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 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.
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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 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.
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2.2.16, Competitive Strengths: o Strong brands o Strong retailing, distribution and supply network. o Design experience. 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.
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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 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
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operations at Hosur, Dehradun, Roorkee and Baddi (Himachal Pradesh) and an ECB plant in Goa.
2.2.19,Process Adopted At Titan Watches:: 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.
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CHAPTER-3 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.
Manufacturing
Module
Auto turning Gear Hobbing Stepper Motor Module Press Shop Ebauche Treatment
Case
Case Press shop Case Machine Shop Case Polishing Shop Case Plating Ion Plating Case Assembly
Assembly
Casing Module
3.1.2,Production Department and Functions: a)Auto-Turning:
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The manufacture of all cylindrical watch components.
b)Assembly: 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.
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3.1.3, An Overview of Titan Manufacturing Facilities:
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
Movement Parts
Appearance 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 23
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 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.
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3.2, SYSTEMS DEPARTMENT 3.2.1,INTRODUCTION The 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.
Systems Hardware
Software
Hardware
Software
Certification
Certification
Maintenance
Maintenance
Outsourcing
Outsourcing
Development
Development Up gradation
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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)
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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.
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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 :
Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve
Mar ' 09
Mar ' 08
Mar ' 07
44.39 506.85
44.39 391.78
44.39 283.06
116.76 58.65 726.65
188.11 69.78 694.06
172.67 74.34 574.45
593.04 -
558.07 -
515.48 31
Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total
Mar ' 09 318.56 274.48 19.52 7.66
Mar ' 08 285.61 272.46 9.99 47.39
Mar ' 07 264.34 251.15 15.97 27.02
1,492.42 1,067.44 424.98 726.65
1,280.79 916.58 364.21 694.06
999.33 723.22 276.10 4.21 574.45
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 : Income (Rs. In crores)
32
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:
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• 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
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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.
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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 Undergraduates Diploma and ITI Graduates Post Graduates MBAs Professionals Total
Number of Employees 900 568 915 383 172 196 3,134
Percentage 29 18 29 12 5 6 100
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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 Operator Trainee (OPT)
Selection Process Psycho Diagnostic Test (PDT) Written Test, (WT), Practical Test (PT), Interview, Medical & Security Verification (SC)
Craftsperson Trainee (CPT) Graduate trainee
PDT, WT, PT, Interview, Medical & SV 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
Programmer Trainee / Engineer Trainee /
PDT, WT, Interview, Medical & Personality
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Personnel Officer Trainee (PT /E T / POT) Officer Trainee (OT)
test. 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
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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
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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.
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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.
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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. 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.
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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: 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.,
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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: 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.
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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.
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.
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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 . 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.
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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 Maxima Rado Casio
17% 13% 7% 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, Fasttrack 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. 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.
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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. 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.
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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
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• Cartier • Giordano Fashion Houses: •
Dkny
• Gucci • Adidas • Nike • Bvlgar
3.5.3, Purchasing power of consumers BRAND FAST TRACK EXCTA,SONATA,
PURCHASING POWER (PRICE) RS. 550-1,430 595-1,430
CATEGORY YOUTH LOWER MIDDLE
TITAN SPECTRA ROYAL
650-1,830 960-2,830
CLASS(Office wear) COMMON CLASS UPPER- MIDDLE CLASS
RAGA BANDHAN REGALIA
1,420-4,000 1,675-8,085 1,725-7770
UPPER CLASS COUPLES UPPER MIDDLE CLASS-
4,500-24,200
UPPER CLASS BUSINESS CLASS
EDGE 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.
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On the basis of the above table and profit figure we easily understand consumer buying power in target market.
3.5.4, Various models of Titan Watches:
Titan Sonata Women
Rs.525.00
Titan Fastrack Men
Rs.1915.00
Titan Sonata Men
Rs.535.00
Titan Fastrack Women
Rs.1035.00
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Titan Raga Men
Rs. 1995.00
Titan Regalia Men
Rs. 2495.00 Titan Steel Men
Rs. 3300.00 Titan Xylys Women
Titan Raga Women
Rs. 2095.00
Titan Regalia Women
Rs. 3495.00 Titan Edge
Rs. 4440.00 Titan Nebula
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Rs. 9250.00
Rs. 70000.00
Titan Xylys Men
Titan Xylys Women
Rs. 19000.00
Taj Heritage
Rs. 10000.00 Titan Regalia
Rs. 4700.00
Rs. 18000.00
Titan Steel
Rs. 5700.00 Titan Ladies Watch
Rs. 1995.00
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Titan Sonata Ladies
Rs. 1245.00
Titan Sonata
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
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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 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.
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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 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
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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
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.
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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 .
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. 60
Quality Assurance: The time products division received ISO14001-1996 accreditation in March 2002. 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.
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The Infrastructure is very well for working condition. CSR activities well done by Titan industry They are maintaining good customer relationship.
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.
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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-
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
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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
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.
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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 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.
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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/co mpany_history.php?sc_did=TI01
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