NAME: SHRUTI CHAMARIA
Roll no: 015
COMPANY: TITAN
ASSIGNMENT 1 TASK 1
TITAN COMPANY LIMITED
Titan Company Limited, introduces and started its operation
in 1984, was a joint venture between the Tata Group and the
Tamil Nadu Industrial Development Corporation (TIDCO),
Titan is one of the most appreciated engineering company in
India. Titan owns many successful brands such as Titan
Watch, Jewellery, Titan-eye plus etc. Titan comes under the
top 5 integrated own brand manufacturers in world. Over past
30 years, Titan have spread into available market or potential
market and establish a lifestyle brand for people of all
category in different product sector.
What is Strategic Planning?
Strategic Planning is a process of growing and controlling a
strategic fit between the company’s goal and efficiency and its
changing market opportunities. Strategic planning is the base
for the remaining planning in the company. At corporate
level, the company has to start strategic planning process by
specifying the overall goal and mission.
Defining the company Setting company Designing the Planning marketing
mission objectives & goals business portfolio and other functional
strategies
Like the marketing strategy,
the broader company Company-wide strategic planning
strategy must be customer guides marketing strategy &
focused planning
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Strategic Planning from the point of view of Titan Company
Limited
When Titan Industries started its operation, they started with an
innovative offering i.e. “Quartz Watches” that had a forceful impact
on the Indian watch trade. Due to the innovative idea at Titan industry
it has led to significant achievement, for modernization and strategic
planning of the company “Titan Edge” which is the globes thinnest
watch is a very good example.
Vision statement of Titan
“We create elevating experiences for the people we touch and
significantly impact the world we work in”
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Mission Statement of Titan
“We will do this through a pioneering spirit and a caring, value-driven
culture that fosters innovation, drives performance and ensures the
highest global standards in everything we do.”
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Philosophy of Titan
“The name Titan today evokes superior craftsmanship, innovative
technology and trustworthy product quality.”
"Titan Company Limited continues to grow and set new standards for
innovation and quality with each new offering."
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Titans value and Standards
1. Focus: Titan is a customer-oriented company as customer comes
first over anything else
2. Respect and Value: Titan respects and values all the
“TITANIANS” and aim to fulfil their demand and desire.
3. Focus on teamwork: For high performance at Titan, company
believes in teamwork
4. Journey to Excellence: In all the fields, Titan aims for
excellence
5. CSR: Company makes sure that part of their profit is invested
for the betterment of the community and environment.
Profit Sector for Titan:
As seen in the ‘Titan Annual Report 2017-2018’ it shows a
tremendous year of overall business performance. Titan showed a
growth of 52.6% in FY 2017-2018. The business which had the
highest sales record of ‘₹13,036 corers’ was the ‘Jewellery’
business. Every diamond sold as well as the revised gold exchange
policy by the customer was profitable for the company. The company
saw growth of ‘24.3%’ in the ‘Jewellery’ business in FY 2017-2018.
During FY 17-18 there were 7 new collections launched in jewellery
where the business continues to grow higher in ‘High Value
Diamond Jewellery Segment’ as well as ‘Wedding Jewellery
Segment’.
The ‘Karigar’s’ are the most important part of Titan as they are been
provided with enthusiastic workstations, comfortable and affordable
accommodation and fair remunerations. By giving them the dignity
and sustainable employment, the Karigar’s are committed towards
providing that Indian art and Karigar’s work harder and better for
decades.
As mentioned above the jewellery business of Titan had shown a
growth of 24.3% so the goal of Titan should be to achieve growth in
its remaining sectors. As the mission states “Ensures the highest
global standards in everything we do.”
Not-for-Profit Sector
Total CSR spending as percentage of Profit after Tax (INR): `
23.44 Crores under section 135 of Companies Act equivalent to
2.25% of Average Net Profit of the Company for last 3 financial
years.
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During the FY 2017-2018 the programmes run by the company has
reached about 3.5 lakhs individuals. There were two major CSR
activity done Titan during the year which are
1. The Titan Design Impact Award for Social Change.
2. The Holistic Engagement of the Girl Child Program at
Kattumannar Koli in TamilNadu and Yadgir in Karnataka.
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During the year, the company had 425 employees working for more
than 8000 man-hours in local causes or any CSR projects.
The Not-for-Profit activity that is the CSR activity which every
company does in a different way shows their dedication towards the
people and the nation, by the work they do. Titan mission already
states that “We will do this through a pioneering spirit and a caring,
value-driven culture” so the goal which company should set is to keep
people happy in the upcoming years by
1. Adopting comprehensive approach to girl child program.
2. Create a Titan Centre of Excellence.
Titan SWOT analysis:
1. Strengths:
In the recent years Titan had come up with many exclusive
stores and service centres on a large scale
Different sub-brands are also running successfully
Titan have positioned itself very well as it exports to more than
Forty countries.
Titan also provides after sale services.
Titan has large market segment with its large potential.
2. Weakness:
Titan haven’t entered global market as there are still some
international brands present in the market
Titan lacks modern approach.
3. Opportunities:
Titan should start the policy of exchange offers
Titan for its survival should tie-up with international brands for
watches as well as for jewellery which will help them in global
expansion also.
Titan should focus on brand awareness
4. Threats:
Titan faces solid competition by foreign brands, mainly in the
premium segment.
As there is broad target segment company may lack its focus on
brand strategy.
As there too many market players present profit margin reduces.
PESTEL analysis of Titan
1. Political: Indian government launched the watch industry in
1961 with the launch of Hindustan Machine Tools (HMT).
HMT ruled the market leadership till 1991 as there was
extensive restriction which were imposed by foreign products.
In 1991 when Titan entered the sequence of events changed
drastically as liberalization policy was adopted. When
government reduced the trade barriers many more company
came into the Indian watch industry.
2. Economical: Exchange rate of India has always been volatile
due to which there was effect on the investment plan which was
made by Titan company in short term as well as in long term. If
there is increase in the liberalization of the trade policy in India
which help Titan to invest into the areas which is not under the
reach of the firm.
3. Social: Migration has a negative impact on the on the company
as company cannot bring foreign managers and leaders to
manage the organization in that particular country. Demographic
being another one has a positive impact on the country because
of the growing youth.
4. Technological: Technology has decreased the PLC of the
products which allows the suppliers to develop new products
quickly. Due to this organisations marketing department had lot
of pressure as they had to launch new products to keep the
suppliers happy.
5. Environmental: Renewal technology is another area in Titan
company. Titan is providing subsidies to invest in the renewal
sector. Organisation also makes plan to comply to rules and
regulations as well as expectation in the consumer sector.
6. Legal: Employment law in the India and how they are impacting
the business model of the Jewellery & Silverware.
Michael Porter’s Five Forces
1. Threat of New Market competitors: Medium Pressure
Entry of new market competitors for wrist watch is relatively low.
There are lots of foreign brands entering into the market. Removal
of quantitative restrictions on the imported is a threat on Titan. If
there is a new entrance in the market they have to position
themselves strong and should be different from the other existing
players. In the current circumstance it is important for new market
player to build their price competitively and also form a brand
image.
2. Threat of Substitution Products: Low Pressure
Threat of substitutes is balanced in the watch industry because
there are other brands already present in the market. In case of
another variant’s substitution has developed.
3. The Bargaining Power of Buyers: Medium Pressure
The India there are two types of buyer one is the price sensitive
buyer who will think twice before buying and the other type are the
one who are willing to pay premium price for a stylish watch of a
well-known brand. So, it is very important to understand the
preference of the buyers and also gain the substantial market share.
4. The Bargaining Power of Supplier: Low Pressure
Titan has invested nearly ₹120 crore for having their own
production house, where 6 million watches can be produced. There
is an increase in number of low-cost producers in China and
Taiwan due to which other watch brands outsource watch at a
lower price, like the way Titan has done. Due to large supply of
watches, the supplier power of watch had increased in the market.
Under this force, watch market is favourable
5. Rivalry Among Existing Firms: High Pressure
As the foreign and domestic brands are the dominate players in the
market rivalry is very high in the watch market. The competitors
come up with new designs and features and functions due which
this force is unfavourable
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Bibliography
Company, T., n.d. Titan company About us. [Online]
Available at: https://www.titancompany.in/about-us
[Accessed 05 may 2019].
Kotler, P. T., Armstrong, G. & Opresnik, M. O., 2017. Principles of Marketing. 17th ed. Engloand:
Pearson.
report, T. c. a., 2017-2018. Annual report. [Online]
Available at: https://www.titancompany.in/sites/default/files/Titan%20Annual%20Report%202017-
18_0.pdf
[Accessed 03 MAY 2019].
share, s., 2011. https://www.slideshare.net/kunal777biz/titan-watches-7994118. [Online]
Available at: https://www.slideshare.net/kunal777biz/titan-watches-7994118
[Accessed 24 july 2019].
share, S., 2013. https://www.slideshare.net/jai12029/titan-16639742. [Online]
Available at: https://www.slideshare.net/jai12029/titan-16639742
[Accessed 24 July 2019].
