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This presentation helps study how Titan watches used innovation to emerge as a brand and establish its name in the watch industry.
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A brand innovation case study
Why study Titan watches ?
Use of innovation
Broadest range of watches
Brand leader in the country of its origin
Only branded watch company to originate from a newly industrializing country
Became the best brand in a short time
Introduction : History
• World's fifth largest wrist watch manufacturer.
• Designer and manufacturer of India's largest and best-known range of personal accessories
• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation. WH
O?
WH
EN?
WH
AT?
Introduction : History
• World's fifth largest wrist watch manufacturer.
• Designer and manufacturer of India's largest and best-known range of personal accessories
• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
• Established in 1987
• Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team.
• Third Indian watch manufacturer after HMT and Allwyn.
WH
O?
WH
EN?
WH
AT?
Introduction : History
• World's fifth largest wrist watch manufacturer.
• Designer and manufacturer of India's largest and best-known range of personal accessories
• Joint venture between the Tata Group, and the Tamil Nadu Industrial Development Corporation.
• Indian designer and manufacturer of watches, jewellery and other accessories including sunglasses, wallets, bags and belt.
• Precision engineering is another area of specialisation.
• Established in 1987
• Envisioned by Mr. Xerxes Desai, a TATA Veteran and his team.
• Third Indian watch manufacturer after HMT and Allwyn.
WH
O?
WH
EN?
WH
AT?
Today, Titan watches account for more than 60% share of the total Indian Watch Market.
Sold in about 32 countries through marketing subsidiaries based in London, Aden, Dubai and Singapore.
Titan offers various brands including Steel, Regalia, Raga, Nebula, Sonata, Fastrack, Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan, Octane and the HTSE series.
Introduction : History
Evolution of Titan
1984
+
• Joint venture• Electronic watches• 150 designs
1986
+
Digital & ana-digital watches
1989
‘Aqura’ range of watches launched
• ‘Aqura’ sold to Timex• Consultancy services • Marketing strategy outsourced
1991 1992
• ‘Raga’ range of watches launched.• “Spectra” range reintroduced
1994
• ‘Tanishq’ range of watches launched• ‘Insignia’ launched in India
1995
+
‘Sonata’ range of watches launched
1996
Tim
elin
e
‘Dash’ range of watches launched
2001 2000
• ‘Cyber’ range of watches launched• ‘Titan-Fastrack’ launched• ‘Baarah nai toh tera ampaign with pizza hut• ‘Classique’ collection
launched
2004
‘Crown’ range of watches launched
‘Vizag’ range of watches launched
20052006
‘Xylys’ range of watches launched
2013
‘Edge’ and Braille watches launched
‘Octane’, ‘Obaku’, ‘Automatic’, ‘Purple’
range of watches launched
Implementing innovation is an art rather than science.
Innovation
strategies should lead to inimitability of strategic options that come from certain tacit knowledge elements or embedded organizational processes1
Strategic options an innovation provides should lead to sustainable competitive advantage.
Innovation should enable a firm to retain superiority in the market place. 2
Strategic innovation should allow a firm to pursue strategic options without loosing its flexibility. 3
Options pursued should lead to durablebenefits 4
5
Tech
nolo
gica
l
InnovationIncreased reach: Retailing
Cycle time reduction
Continuous feedback
Constant review
Multi-brand outlets
Service excellence
Slim watches
Watches for disabled
Better finishes of watches
Designing watches through visualisation
Broader ranges of watches
Robust design of watches OrganisationalInnovation
+
Innovation
InimitabilityAgility and
openness to change
SuperiorityProduct richness Flexibility
Alliance relationships,cross-functional teamingand design automation
Durability of strategic advantages innovative approach to extend the reach to all majorcustomer centers through the ‘watch supermarket’
concept.
SustainabilitySuperior brand reputation
VisionGlobal brandWorld–class manufacturingNew image driven by innovation
High torque stepper motors for high reliabilityVapour deposition technology for appearance partsCycle time reduction through concurrent engineeringWorld’s thinnest watch movement
Technology
Concept marketing instead of product marketingBrand image building in EuropeBrand leveraging in other personal product segments
Brand Building
Global procurementTotal Quality management at the suppliers end
Procurement
HR ManagementTraining new & young staff to have a new corporate cultureCross cultural marketing
Innovation
Inno
vatio
n in
Val
ue C
hain
Conceptualisation
World class manufacturingThorough assessment of competitive trendsCustomer orientation
Design
Design studioNetworking into the world of designDesign software CAD/CAMEuropean design ideasContinuous renewal of models
Operations
Short product realisation cycle timesRich stylesIntegrated manufacturingInnovative technologiesHigh quality orientationWide range
Distribution
Multi channel distributionInstitutional salesDealer training for attitudinal change
Marketing & Sales
Flagship showroomsMulti-brand showroomsSelling competitive productsRapid increase in reach by locating outlets in smaller townsRapid brand extension
Service
Front service offersSpare parts warehousesShort service cycle timeIntensive training for service excellence
What does all the innovation lead to?
Product Range
Slim watch design
Titan has claimed to have manufactured the world's slimmest wrist watch branded as Titan Edge with a total thickness of 3.5 mm and a movement of 1.15 mm.
Watches for specially-abled
Better finishes, materials, broader ranges, robust design
Better finishes, materials, broader ranges, robust design
Better finishes, materials, broader ranges, robust design
Competition from lead competitor
Minimum return during sale period
Quality: Central focus
High torque stepper motors
Durable finishes using vacuum deposition
Large range of styles in a short time frame
Distinct in appearance & style
Art and design studio was set up
Help from European designer
Art software & computer aided design
Watches are elegant & rich in style
Retail networking and richness of productDes
ign
Strategy
Manufacturing
Strategy
+
Brandcreation
‘Telling the time’ product
‘Personal’ product
Rock-solid vision
Best staff-mix
Thorough market analysis
Right market segment
An organisation with:Design Manufacturing competence (Automation)Marketing competence
Driven by:Futuristic mindset Contextual insightBusiness foresight
Volume creation:When Titan entered the market,
the share of analog watches was just 5%Target the high opportunity segment
Position itself as a premium brand
Roadmap
BRAND CREATION
Rock-solid vision Best staff-mix
Thorough market analysis Right market segment
Why do Indians prefer watches made abroad ?Nature of marketCompetitor offeringsAnalyse operation of competing brandsCustomer requirementsIdentification of major gaps:
Styling, serviceRetail reachShowroom interiorsCapability of franchiseesAttitude of retailers towards customers
Main weakness in the Indian market: No brand had a strong personality
Started the company with a group of executives with rich but varied experiences:
MD from Tata group Professional executives with extensive experience in watch manufacturing Executives with marketing experience specifically in retailing.
Medium range market Large to handleHigh growth potential
Quick segmentation‘Doing it right the first time’:Usage of innovative advertising campaign to create & position the brand
REASONS NO. OF RESPONDENTS
Attractive Design
Reasonable price
Brand image
Good quality
39
7
22
25
Reasons for Brand Loyalty
Types of media NO. OF RESPONDENTS
TV
Magazine
Newspaper
Hoarding
46
25
36
15
Advertising
Reaching the customersSpeed and surprise are the crux of successful competitive strategy . -Art of War
Increased reach: Retailing
320 STORES 130 CITIES
Service excellenceSustainability of brand reputation comes from service excellence.
Service policy
Repair the hurt feelings of the
customerRepair the
watch
Repair the damage to
TITAN reputation
www.titancare.co.in
Repair status
Service news
Service network information
Service feedback
Do’s, Don'ts, Tips
Quality policy & Service offerings
Globalization : International reach
32 COUNTRIES2000 stores ; 135 million customers
became one of the first brands in the non-consumer goods segment from India to be sold in Middle East, East Asia as well as Europe.
* Regular interaction and systematic analysis of feedback
* Training and skill development in cross-cultural marketing
* Incremental approach supported by rapid learning and review
* Rapid learning and rapid adaptation to changing requirements in new markets.
* Continuous communication, dialogue-based goal setting & fear-free feedback.
Globalization : Strategy
Elements
Contemporary style + Excellent quality + affordable prices = Global Success G
loba
lizati
on s
trat
egy
Globalization : Strategizing