Titan Industries . ( A Tata Group Company)

How Titan Industries managing it's business and growing by leaps and bounds.What are it's strategies to get in to the market, retain customers , Cross sales and Up Sales.After Sales Services, HR,QoS, Signet Progamme, Customer Loyalty.Branding

1. Debashish Brahma. Management & Marketing Consultant, By Speaker, Marketing Faculty, Management Blogger. TITAN

2. Titan most admired brand The Titan customer is known to indicate a strong sense of trust and loyalty towards the brand. Titan has been voted Most Admired Brand (across categories) and the Most Admired Consumer Durable Brand several times. Titan is now the 5th largest watch producer in the world. WORLD OF TITAN

3. The Watch Market & Industry in India India is an under-penetrated market for watches – only 27 % of Indians own a watch Total estimated market in 2008-09 Volume ~ 43.5 mn units & Value: Rs 3000 Crores (USD 600 Mn) Vast proportion of the Indian market is below Rs 500 ~ 68% (85% by volume) Market has been split into: Low end, Mass market, Premium, Luxury

4. INTERNATIONAL BUSINESS One of India’s first companies to market a consumer brand overseas. Now present in 26 countries outside India Among the top 3 brands in some Asian countries Selling over 675k watches annually with increasing presence in jewellery. Total export sales of over Rs 130 crores in 2008-09

5. TITAN Citizen Timex Watch Market Map Rs 500 1000 2000 4000 5000 30,000 + Formal / Classic Fashion/Sporty Sonata, HMT, Maxima Espirit, Swatch Fossil Giordano, DKNY, Carrera Tommy Hilfiger Raymond Weil Tissot Omega,Rado, Longines Tag Heuer Hugo Boss C Dior Price Fastrack XYLYS 10000 Nebula

6. The Five Year Story….Multiple Businesses, Brands & Geographies Watches Jewellery Watches Jewellery Sunglasses Eyewear Precision parts PRODUCTS TITAN SONATA TANISHQ TITAN SONATA FASTRACK XYLYS TANISHQ GOLD PLUS TITAN EYE + BRANDS 200 STORES IN INDIA AND PRESENCE IN 17 COUNTRIES 500 STORES IN INDIA AND PRESENCE IN 26 COUNTRIES GEOGRAPHIES 2 DIVISIONS 3 PLANTS WITH 2500 PEOPLE 10 SBUs 9 PLANTS WITH 4500 PEOPLE UNITS

7. Watch Care Center Close to 300 Titan service centers across Indian All repair activities follow a strict and systemic process, controlled & measured through ISO audit system A chain of high profile outlets called “the world of titan” Features: decent seating, air conditioning, magazines etc Services Offered:- Servicing of the watch. Replacement of required spare parts. Replacement of strap/bracelets and battery.

8. Frontline Performance Important Programme Recruiting right person for the right job Training given to ensure high quality customer interaction. Such as:- Greeting the customer. Problem Understanding. Resolving Doubts & quarries. The quality of service was maintained by monitoring & measuring their performance Customer satisfaction was measured through a feedback form Value addition by offering stand by watches in case of long repair times and home delivery Feedback from customers on their experience was solicited Greeting customers, problem understanding, resolving doubts

9. Point of Sale Titan is an innovative leader in the supply of Point of Sale ( POS ) software and solutions, with a special focus on the retail sector. Progressive Scalable  Affordable Retail Solutions Titan’s success in both the supply of turnkey solutions, software and other services relies on their customer centric approach This  point of sale  solutions are designed to deliver - improved operational productivity - greater control of inventory - management of the business process This is scalable from a single independent retailer through to a multi-branch enterprise

10. Multi-user Terminal POS System Invoicing Quick Search Scale Items Discounts Cash Record Payment Splits Multiple Tax Rates Re-Print Modification Option

11. Touch Point Win pos – 1.quick search 2.customer and transactions records 3.track report sales Trade soft- 1.stock control facility 2.full client history of all transactions

12. Value Addition & Re-Shaping Watch Industry In 1985-86 – No choice available In 1986-87 – Titan enter in the market Titan offer international quality/style at an affordable price Offered different range of product according to the taste & preference of the customer Shift in the structure of demand. Eg: Titan, Sonata Emergence of distinct consumer segment. Sub branding strategy Raga Fastrack Nebula

13. Gap Identification Existed in the product & retailing standards in the Indian watch industry Premium brand for luxury segment Emergence of new channels Significant increase in competitions in all segment Set up a chain of service centers, with the close proximity to the market place The Titan Signet Club Customer loyalty programme

14. Customer Relationship Model

15. After Sales Service

16. Human Resources Appointment of right staff & train them to ensure high quality customer interaction Interaction involved- Greeting the customer, Problem Understanding, Stand by watches in case of long repair, Home delivery Collected feedbacks from customers Increased service period by two hours i.e. 9am- 7pm with no breaks in b/w -before it was 9am -5pm The Human Resources Focus checks the appraisal system, the work environment, and the Training and development of the employees High quality tools and equipment was supplied to sustain repair quality Updates on technical information were provided The quality of service was maintained by monitoring and measuring their performance

17. Complaint Handling Technique Titan realized that relationship with its customers just starts with the customer buying its product. Set up After Sales Service & support centre called ‘Watch care Centers, through out the country. It Includes: Decent seating-A/c, Drinking water, Magazines, Browsing, Pleasant music, Education posters, See through repair Shop to let customer know what is taking place .

18. Benchmarking Bench marked better with best service centers to improve efficiency-customer evaluated service on 10 parameters & gave their feed back on 10 points-suggestions were welcomed & best suggestions were rewarded-introduced SIGNET program focused on Building a special relationship with high lifetime value titian customers Recognizing & rewarding the loyalty of customer to titan Providing a platform for direct feedback from the valued customers to the company Company has a world class design studio for watches

19. 85% of Watch Population Titan received the award for the most admired Time wear Brand of the year in 2009 Titan is ranked No.1 in the consumer durable category Titan is a leading brand in India & the World’s fifth largest watchmakers Titan watches collections caters everyone’s fashion taste Value for money Innovative Technology

20. Quality of Service Replacement of required spare parts Battery replacement Replacement of strap and bracelet Home delivery facility at nominal cost Extended maintenance warranty 2 years guarantee from the date of retail purchase Guarantee of plating and battery for the period of 1 year from the date of original purchase Titan Customer Service markets spares and accessories, such as batteries, leather and metal bracelets to all outlets that sell Titan, Sonata and Fastrack watches Staff encourage customers to use only original spares in order to ensure quality and satisfaction Titan Customer Service, is ISO 9001 & 14001 certified All repair activities follow a strict and systematic process that is controlled and measured through an ISO audit system

21. Feedback Forms We enjoy having you as our customer and we are committed to making our relationship together as exciting as possible. In order to continue this journey smoothly we would like to appreciate your suggestion and would like to know about our service. Your name Your address Your email-id Your mobile

22. Customer expectation Offering quartz technology with international styling It brought international brand into Indian Market. eg .: Tommy Hilfiger Integrated supply chain management changed the way watches are designed, manufacture and marketed Understanding the Indian consumer’s psyche Best quality material and watches offer long-lasting value to customer Titan follow 3R’s Repair the hurt feeling of customer Repair the watch. Repair damage to Titan reputation.

23. Signet Programme Titan has Titan Signet a 130000 member club that looks to build relationship through rewards, regular discount and special offers Titan Signet also provide a platform for direct feedback from these valued customers Titan Signet enrollment and membership card is provide if he become a member of titan Signet Most of exclusive service and benefits are available to Signet member

24. A host of exclusive services and benefits are available to Signet members , such as: Exclusive Offers on Watches and eye gear at The World of Titan , Titan Watch Care Centres as well as on other premium brands Being the first to know about new product launches & Invites to previews Free Gift Delivery Service through The World of Titan Priority Service at the Titan Watch Care Centres

25. The key to availing rewards and benefits is the Titan Signet enrollment and the Titan Signet membership card. Any customer at The World of Titan can become a member of The Titan Signet if he / she has bought: Any single product worth Rs 2000 or more Any Titan Raga Watch (irrespective of price) Any Fastrack watch or eye gear worth Rs.995 or more A total bill value of Rs.3000 or more which may include Titan Gift Vouchers

26. Earn reward points every time you shop at World of Titan; these points can be accumulated and availed as a discount on future purchases An investment for future purchases Receive a welcome gift on enrolment Be privy to exclusive offers/bonus points from time to time Receive regular updates via sms and e-mail on new arrivals, latest offers and campaigns Titan Signet is the exclusive Loyalty Programme of the World of Titan. As a Signet member, you will -

27. Transformation of Satisfied to Loyal Customer The role of salespeople in the world of titan is both building and promoting relationship   The basic premise of Titan’s Service Program is to offer superior value to customers in an effort to turn prospects into customers, customers into satisfied customer, satisfied customer into loyal customers.

28. Positive Image Building Its mission was to create a sense of belonging of the customer to the store and vice versa by. Building a special relationship with high life time value Titan customers • Recognizing and rewarding his/her loyalty to Titan • Providing a platform for direct feedback from these valued customers to the company

29. Brand Ambassadors Titan Brand: Aamir Khan Sonata: Mahendra Singh Dhoni Raga: Gul Panag, Rani Mukherjee Xylys: Farhan Akhtar

30. World of Titan Store Titan provides an ‘extra’ touch to its special customers at the exclusive “World of Titan stores” where Titan Signet is the exclusive Loyalty program Complimentary membership Reward points Welcome gift on enrolment Gift Cards

31. Sense of Belonging/Mind Share Service centre Feedback system Gift card

32. Building Customer Loyalty Trained Showroom Personnel Tracking of enrolments in the program are tracked on a monthly basis for each showroom, along with data on purchases made by Signet members who have returned to the showroom to buy again.

33. Retain Loyal Customer Titan's loyalty Signet program - where customers can redeem their points – is part of Titan’s effort to retain and value its loyal customers Titan Industries’ service centre network is committed to deliver a satisfying post-sales experience to all the customers. A post service follow-up (for major repair activity) is mandatory to complete the cycle of customer satisfaction. Signet operations form a part of the quarterly appraisal for their showrooms, thereby ensuring that they earn more marks on their efficient and effective performance • A grievance re- dressal system is in place to ensure that our valued customers are responded to within stipulated time.

34. Up selling Up-selling is a sales technique whereby a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sales. Some examples of up-sales include: Suggesting a premium brand of alcohol when a brand is not specified by a customer (such as if a customer simply requests a “Rum and Coke"). Suggesting a customer purchase more RAM or a larger hard drive when servicing his or her Computer Selling luxury finishing on a vehicle Suggesting a brand of watch that the customer hasn't previously heard of as an alternative to the one being considered

35. Cross Selling Cross-selling is the action or practice of selling an additional product or service to an existing customer Examples A Life Insurance company suggesting its customer sign up for car or health insurance An wholesale mobile retailer suggesting a customer choose a network or carrier after one purchases a mobile. A television brand suggesting its customers go for a [home theater] of its or another's brand. Factors that Increase Cross-Sales First is the price . Also, how well the additional product or service fits their needs and wants, how much the customers appreciate the main product they want to buy.

36. Subconscious Brand Shape Right Brain Habitual Habits Left Brain Logical Reasoning creative 5% - 15% 95% - 85% Habitual Buying behavior

37. QUESTIONNAIRE   1.Which sub-brand of Titan watches do you possess? a) Fastrack   b) Sonata c) Raga d) Nebula e) Others, please specify……………………………   2.Since how many months / years have you been using Titan watch?   3.Why do you prefer Titan brand? a) Attractive designs,  b) Reasonable price c) Brand image d) Good quality   4.Do you remember the original tagline of Titan watches? If yes, please mention.   5.Have you seen the advertisement of Titan watches? a) Yes b)No   6.In which media have you seen the advertisement? a) TV  b) Newspaper  c) Magazines d) Hoardings e) Radio

38. 7.Who is the brand ambassador of Titan watches?   8.Are you aware of the new tagline of Titan?   9.How do you rate the new designs of Titan? a) Poor   b) Average c) Above Average d) Good e) Excellent   10.Have you seen the new campaign of Titan? a)Yes b) No   11.Do you think the new advertisement is effective in inspiring consumers to have a newl ook everyday and be more in lives? a) Not at all effective  b) Effective c) Highly effective   12.How do you rate Titan’s exclusive showrooms with respect to the following: (1–Poor, 2-Average, 3-Above Average, 4-Good, 5-Excellent) a) Ambience b)Sales personnel c)After sales service d)Display of watches e)Overall showroom   13. What suggestions would you like to give to improve Titan’s brand image among customers?

39. 3D’S DATABASE Membership through value based enrollment which records profile of the customer through data base DIALOGUE Process of interacting directly with prospects and customers DIRECT MEDIA Rewards programme through points reward system for each purchase

40. Market Share of Key Players

41. Market Capitalization (Rs. Crores) Crossed US$ 1 Billion

42. Significant growth over the past three years Rs. 800 Crores Sales excluding exports and after-sales service (over Rs 1200 crores at retail prices) Profits Consistent growth PBT (2005/06) - Rs. 90 Crores PBT (2006/07) - Rs. 96 Crores PBT (2007/08) - Rs. 133 Crores PBT (2008/09) - Rs. 127 Crores ROCE ROCE (2005/06) - 50% ROCE (2006/07) - 50% ROCE (2007/08) - 62% ROCE (2008/09) - 52% Revenues ROCE OUR WATCH BUSINESS – OVERVIEW

43. Major Competitors