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Project

Title- Economic Analysis of World Of TITAN, Ludhiana.

Under the guidance of

Submitted By:-

Dr. Piyush Verma

Deepak Leekha - 401107013

Faculty Coordinator

Ajitesh Mukherji - 401107004

LMTSM

Aakash Saluja - 401107002

1. INTRODUCTION
Titan Company Ltd. is an Indian designer and manufacturer of watches, jewellery, precision
engineering components and other accessories including sunglasses, wallets, bags and belts. It is
a joint venture between the Tata Group, and the Tamil Nadu Industrial Development
Corporation. Titan is the world's fifth largest wrist watch manufacturer and exports watches to
nearly 32 countries around the world. Some of the well known brands of Titan include Fastrack,
Sonata, Raga, Edge, Octane, Xylys, Titan Eye+ and Tanishq, Goldplus, Zoya. Its tag line is 'BE
MORE' and the unique selling proposition is that it is an Indian brand with International styling.
WORLD OF TITAN, Ludhiana is a Franchise store of the TITAN company ltd. and was opened
in 1989. The franchise is owned by a partnership firm M/S Haveli Ram Bansi Lal.
The store is located in Feroze Gandhi Market in Ludhiana which is the prime commercial district
of the city. The location is very prime as it is visible from the main road of the city i.e. the
Ferozepur Road (i.e. NH 95).When the store was first opened in 1989, it was the first in Punjab
and covered about 1000 sq. feet of space.
2. ABOUT THE BRAND
Titan Industries Limited engages in the manufacture and retail of watches and eyewear in India
and internationally. The company provides watches under the brands of Titan Edge, Titan Raga,
Nebula, Sonata, Xylys, and Fastrack, as well as Tommy Hilfiger and Hugo Boss. It also offers
jewelry under the Tanishq and Goldplus brand names, as well as operates a chain of luxury
jewelry boutiques under the Zoya brand. In addition, the company provides eyewear, including
frames, lenses, contact lenses, sunglasses, as well as optometric services through its optical
outlets under the Titan Eye+ brand. Further, it offers precision engineering components and subassemblies, machine building and automation solutions, tooling solutions, and electronic subassemblies to the aerospace, automotive, oil and gas, engineering, hydraulics, solar, and medical
instruments industries. The company operates a network of approximately 560 retail stores,
including 300 World of Titan showrooms and 740 after-sales-service centers; 110 Tanishq
boutiques and Zoya stores; 25 Gold Plus stores; and 85 Titan Eye+ stores. Titan Industries
Limited was founded in 1984 and is based in Bangalore, India.

3. ABOUT THE FIRM


M/s Haveli Ram Bansi Lal is a partnership firm based in Ludhiana. The firm was initially
established in 1918 as a trading firm for paints and chemicals. It later diversified into various
businesses like Industrial Paints, Chemicals and allied industries. Ultimately it shifted its focus
and is currently into retailing with two franchise stores, Tanishq Boutique and another watch
store World of Titan. The firm has been associated with Titan Company Ltd. for more than 25
years now since 1987. The firm enjoys a very good reputation in the city and is one of the most

respected business organizations in the industrial circle of the city. The partners of the firm enjoy
a very good reputation with the top management of Titan Company Limited and have a personal
relationship with them.

4. ORGANISATIONAL STRUCTURE AT WORL OF TITAN

Cashier

The Franchise/Owner are the partners of M/s Haveli Ram Bansi Lal. The store has one Store
Manager to look after the overall day to day operations of the store, making strategies for selling,
liaisoning wit the company, motivating the staff etc. There is a team of 5 sales people who show
watches to customers, sell them and follow up on customers. Then there is a cashier who looks
after the billing and collection of cash/payments etc. There are 2 helpers who do the cleaning and
help gift wrap new watches. The security staff is outsourced from an external agency.

5. THE BUSINESS MODEL


It is a franchise store of the Titan Company Ltd. and is known as The World of Titan. It deals in
watches, sunglasses, perfumes and Leather accessories. It has the following brands under its
Umbrella such as Titan (Sub brands: Raga, Edge, Purple, Octane), Fastrack, Tommy Hilfiger,
Xylys (Swiss made), Obaku (Swedish), Sonata, etc. The stock is bought out by the franchisee
and the mark up is 25%. All expenses have to borne by the franchisee.
Advertisement expenses are borne by both the franchisee and the parent company. All the
expenses related to the store like establishment expenses, staff salaries, electricity and other
operating and running expenses are all borne by the franchisee. The cost of renovation of the
store and all the investment in fixed assets and the premises is borne by the franchisee along with
the expenses related to stock like investment, insurance of the stock and the shipping expenses

are borne by the franchisee. During an offer or a scheme, the discount is compensated by the
company.

6. SWOT ANALYSIS

SWOT Analysis

Strength

1. Large network of exclusive stores and service centres


2. High Top of the mind recall, especially for the Mid market
segment
3. Different sub-brands under the brand Titan have been successful
in their positioning based on Demographic segmentation
4. One of the worlds top five and Indias biggest watch
manufacturer
5. Titan watches are exported in over 40 countries

Weakness

1. Premium category Titan brands like Xylys have been camouflaged


by the Titan brand Image of being a mid-market player
2. Havent penetrated the global market as some other
international watch makers

Opportunity

Threats

1. India is an under penetrated market for watches


2. Global expansion and tie-ups with global watch and Jewellry
brands

1. Broad Target segment may lead to lack of focus in Brand strategy


2. Stiff Competition faced by foreign brands, particularly in the
premium segment

Competition

1. Timex
2. Casio
3. Citizen

Competitors
7. SALES FIGURES

The graphs below show three critical factors of the business, namely:

sales figures for the recent years.


gross profit for the recent years
additional income provided by the Titan company to The world of Titan store

Sales (lakhs)
190
185

183

185

180

175

175

Sales (lakhs)

170
164

165
160
155
150
2010-11

2011-12

2012-13

2013-14

Gross Profit (lakhs)


45

41

42

40

37

35

30

30

Gross Profit (lakhs)

25
20
15
10
5
0
2010-11

2011-12

2012-13

2013-14

Additional Income (Lakhs)


7

6
5
4

2010-11

2011-12

2012-13

Additional Income (Lakhs)

3
2
1
0
2013-14

The graphs clearly show that there is a fall in the total sales and the gross profit of the store. This
was because of unfavorable market conditions and due to opening of a new store in the same city
itself. This lead to a rise in additional income which the Titan company provided to the Store.

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