Diversification of Titan.pptx

7/29/2019 Diversification of Titan.pptx

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Celebrating occasions

TITAN


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BUSINESS MODEL

TITANWatches andAccessories

100 millioncustomers

$450 millionUSD

665 retail stores120 boutiques

tanishq

watches

Eye +

Precisionengineering


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ORGANIZED WEDDING GIFTS- DESTSTYLE


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FACTS ON INDIAN WEDDINGS

The Indian wedding industry is over Rs 100,000 crores and isgrowing at 25 to 30 per cent annually.

The wedding market in India

No. of Indian marriages in a year: Approx 1,00,00,000

Indian wedding market worth: Rs 100,000 to Rs 110,000crores


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BRIDAL REGISTRY

The weddings in India is a major concept and theconcept of bridal registry hasnt even begun.

Being the first entrant we would have pioneeradvantage.

These registries would function out of the majorfranchises of titan pan India.


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XO Group Inc. formerly The Knot, Inc., the premiermedia and technology company devoted to weddings,pregnancy, and everything in.

Total revenue for the quarter ended June 30, 2011was $34.7 million, up 14% compared to the secondquarter of 2010.


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MAJOR GIFT ITEMS

Jewellery

Electronics

Apparel

Utensils

Crockery


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JEWELLERY

Gold and diamonds are the standard gift items.

Increases Sales for Tanishq -a Titan Subsidary .

Also has gold coins apt for the wedding market

Gold and diamond jewellery market worth: Rs60,000 crore


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APPAREL

Sarees and dress materials are the next favorites in Indianhouseholds.

The sister concern Westside is the beneficiary here.

Titan used major designer from around the world to design

watches. The same could be used for customized apparrel

Apparel market (wedding) worth: Rs 10,000 crores


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DURABLE GOODS

The Croma Connection

Durable goods market worth: Rs 30,000 crores.

Popularizes sale of goods and additional sales.

Also relatives would buy product for themselves in lieuof the discounts.


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UTENSILS

Tata steel.

Major consumers of steel-Tata Motors. The company

generated 8002.15 tonnes of metallic scrap. This metallic scrap which is recycled as a companys

commitment to environmentalism can be used toproduce utensils.


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WEDDING PLANNING

Out of the total weddings that occur in a day only 10%are organized by wedding planners.

Creating a good relationship with the client can helpyou go a long way. Some big corporate families preferto stay with the same planner throughout because thewedding planner would know everyone in the family.

Tata can use their trust factor and brand image here.These planners can operate out of Baristas


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GROWTH DRIVERS

The industry is primarily driven by increasing

affluence, and aspirations among consumers. Also thedesire for unique, elaborate-well-arranged events

without hassles coupled with the capability to pay forwedding planners, is driving the market northwards,

says Mr Bhatia Associate Director, KSA Technopak.

Some estimates put the size of the wedding planningindustry at $10 billion. the wedding planning industrywould grow at 23-30%. The size of the weddingplanning market could be about 2.5-5% of the wedding

market, says Gupta.


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MAJOR CHALLENGES

The biggest challenge is to fight the perception thatgetting the wedding organized through a weddingplanner costs the earth, although celebrity weddings

cost a lot.

This is also because of the dearth of players in themarket.


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CUSTOMIZED FESTIVAL-THALIS


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MARKET POTENTIAL

99% households spend on festivals and the evena median earning household spends about 10% oftheir annual budget on festivals. Of this around 1-

2% is spend on gifts and rituals.


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EXISTING MARKET PLAYERS

Mainly un-organized selling across shops. The margins of about20-30% but low sales volumes.

Only online customized festival gift shopping portals. Many ofthem focus on delivering gifts from India to various countries of the

world. Titan gift vouchers and gift cards already a part of it. These online portals form around 35% of the e-commerce- around

1680 crores with a bottom line of 135 crores. The customized thaliis a just a small sub-part of this. One of the major players in this is

homeshop18. However there are many smaller players. The on-store selling of festive thalis remains un-organized as no

major players is into selling customized festival thalis on-store.


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PRODUCTS

Customized thalis for festivals and associated customsspecially for Rakhi, Bhai dhuj, Holi, Diwali, Dhanteras,Gudi padwa, Ganesh chathurti, Durga pooja.

Traditional ethnic look. Make and include designer Rakhis designed by the

existing designers at Titan. Also make gold Rakhis andadvertise them as long term commitments.

Use of biodegradable colors for the holi thali.

Inclusion of Gold coins specially in dhanteras thalis.


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COUNTERING STRATEGIES

Exclusive designer festival thalis under a brand name.

Customizing thalis according to the customers specificneeds.

Use of existing showrooms for displaying as a lot of timespend there.

Can promote the sales of pooja thalis with the wedding

registry.

Use of Tata steel for steel thalis and gold from Tanishq.


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T V CHANNEL ON OCCASIONS


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EXPECTED GROWTH AND SCENARIOS IN TVINDUSTRY

Year size(bn $) advtg revenue(bn$) subs. revenue(bn$)

2009 257 194 103

2010 297 222 118

2011 341 253 136

2015 630 416 214


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EXPECTED GROWTH AND SCENARIOS IN TVINDUSTRY

Media spends in India as a percentage of GDP is0.41%.

Media spends in half of the world as a percentage ofGDP is 0.80%.


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BENEFITS TO TITAN

ENTERING IN A FIELD WHICH HAS HIGHGROWTH

ADVERTISEMENT OF THEIR PRODUCTS AS THEME OF CHANNEL IS OCCASIONS.

MORE OCCASIONS IT CAN BRING TO INDIA

AND CAN MAKE PRODUCTS RELATED TOTHAT.

REVENUES GENERATED BY CHANNEL


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CONTENTS OF TV CHANNELS ON OCCASIONS

FESTIVALSSTORIESBEHIND

FESTIVALS

BUSINESS ANDPRODUCTSAROUNDFESTIVALS

COMMUNITYCELEBERATING

THATFESTIVALS

SHOWSRELATED TOFESTIVALS

INTERNATIONALFESTIVALS

LIKE TOMATINOFESTIVALS IN

SPAIN.

WEDDINGS INDIAN ANDINTERNATIONAL

PARTIESLOT OF DAYS

LIKE VALENTINE,FRIENDS, NEWYEAR ETC.

VARIOUSCULTURES


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FEASIBILITY AND COMPETITION THERE ARE APPROXIMATELY 500 CHANNELS IN INDIA.

THE DISTRIBUTION IS 37% GEC, 27% NEWS CHANNELS, 7% MOVIESCHANNELS AND REST IS MUSIC, SPORTS, LIFESTYLE, RELIGION ETC.

THE TREND OF CHANNELS DEDICATED TO ONE PARTICULAR THINGHAS STARTED.

LAST YEAR THREE CHANNELS DEDICATED TO FOOD ONLY STARTEDFOOD FIRST, FOOD FOOD, KHANA KHAZANA.

THERE IS STILL 75% MARKET IS SUPPLIED BY CABLE PEOPLE WHICHIS GOING TO END IN 5 YEARS. SO THE REVENUES IN TV WILLINCREASE.

THE COMPETITION WILL BE MAINLY FROM NEWS CHANNELS AS THEYSHOW THINGS ABOUT OCCASIONS. BUT THERE IS NO DEDICATEDCHANNELS TILL NOW.


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LEATHER GOODS


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LEATHER GOODS

CAGR expected is 20%

Around $2.8 billion industry

Indian domestic leather goods market is worth Rs16,300 crore


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FOOTWEAR

Segments Price Ranges in Rs % of growth

Mass market 185 700 60% (Liberty Bata)

Economy market 700- 1000 30% (Bata Liberty)

Sports market 1000 3000 7% (Nike Adidas)

Premium leathers 3000- 5000 5% (Charles and Keith)

Luxury 10000- 50000 1% (Gucci Louis Vuitton)

Segments Price Ranges in Rs % of growth

Traditional footwear 699 999 5%Designer Footwear 599 799 10%

Formals 299 699 40%

Casual Wear 499 799 25%

Sports Shoes 500- 699 20%


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TATA INTERNATIONAL LEATHER(INHOUSE STRENGTH)

TATA international leather sells 80 million sq. ft.p.a. worldwide

The in-house product development cell and designstudios spread across Italy, Spain, China and India

It has an existing capacity of 5 million pairs per

annum.


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GAPS: TO ENTER IN MARKET

More than 4000 units are engaged inmanufacturing, of which 95% are SME.

The sector could be organized and branded. Leather belts and wallets are major male

accessories, hence men should be targeted.


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GLASSWARE INDUSTRY

Indian Crockery market revenues:1086 cr and 217 MillionUSD

Competitors: yera,La Opela

Marketing strategies: need to develop the Indian market rapidly for both

retail and institutional sales

need to focus on great designs and superior qualityand cater Indian market.

Create a brand for the overseas and domestic market.


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GAPS: TO ENTER IN MARKET

largely done by traders

Most of the brands are under forming as they played bymanagement issues and are inadequate.

the absence of Brands that can assume leadership roleand grow the category at a faster pace

the fact that most of the production is done without any

quality check and unscrupulous means doesn't help iteither.


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INDIAN CROCKERY AND MARKET

Almost 50% of the market is comprised of organized players withbrands like LA OPALA,YERA,LUMINARC etc.

Most of these brands are under performing as they are played bymanagement issues and inadequate marketing and investmentsin distribution and manufacturing.

Type Source Rs. Cr Million USD

Organized Domestic 224 45

Imported 324 65Unorganized Domestic 287 57

Imported 251 50

Indian crockery market 1086 217


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TITAN PERFUMES


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CURRENT MARKET SCENARIO The global perfume market is estimated at $ 40 billion, out of which

India and China have a considerable share.

The total domestic luxury perfume market in India is around Rs 600-700 crore.

And is growing at a rate of 75-80 % year-on-year.

Could be a natural progression for Titan since perfumes are todayperceived as an extension of a persons identity & with the increase indisposable incomes Indian customers have started spending on

luxury perfume brands.


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COMPETITORS

Christian Dior, Hugo Boss, Calvin Klein,

Burberry etc.

Have been trying to make inroads since 1997.

The unfavorable tax structure has prevented themfrom applying proper marketing strategies.

15-20% of the costs are spent in training the salespersonnel who are instrumental in convincing

customers to upgrade to premium brands.

Also since the retail scenario was not that developed, itcaused further problems in reach and distribution.


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Taxation structure in India raises the costs of importedperfumes by around 100%, making them expensive.

If Titan produces in India it would have a great cost

advantage.

Titan currently has a customer base of 100 millioncustomers worldwide.

Cross selling it with watches and jewellery is a goodoption.


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Titan has one of the best distribution capabilities with665 retail stores, 311 exclusiveWorld of Titanstores, 150 Titan eye+ stores, 120 Tanishq stores & 29Goldplus stores.

It can start selling the perfumes in the existing Tanishq,World of Titan, retail stores since the segment ofcustomers being targeted will be the same.

Since the customer is already buying jewellery or

watches, he would not mind spending some timechecking out the perfume range.


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Also discount coupons can be given on the purchase ofjewellery and watches so that the customer can avail adiscount on the perfumes.

Perfumes do not require too much of store space andhence one display can be given to them in the currentTitan retail stores.

Training of staff would not cost much as the staff isalready trained to premium watches and jewellery.


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TITAN APPAREL

Even after being exposed to western wear, the Indian EthnicApparel market has hardly suffered.

The Indian womens ethnic wear market is currently a 31000

crore market and is set to grow at 12 percent annually.

It is set to reach 45000 crores by 2014.

Indian ethnic wear comprises 70 percent of a womans

wardrobe.


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OPPORTUNITY

The female workforce has gone up from 5 million to 8 million in the last 4years.

Most Indian women still prefer to wear Indian traditional formals to office.

Also Indian ethnic wear is still preferred in traditional ceremonies and

marriages.

There is a huge potential for a big branded retailer in the mid to superpremium segment.

There are very few branded chains in this segment like Biba, W, FabIndia,

Hakoba etc. Most importantly no organised branded retailer has been able to expand

beyond their region.


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Titan can start a new brand and start retailing through westside(tata group company) and also through retail chains likeShoppers stop.

In the coming years it can also think about starting its ownflagship outlets.

It can distribute vouchers and coupons with the other productsof Titan, like jewellery and watches.

Also catalogues need to be made with all different designs andprice (as practiced by chains like maanyawar)

These catalogues should be given to most wedding halls andcaterers who can promote them to the customers in return they

Diversification of Titan.pptx

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