INTRODUCTION

Titan is one of India’s leading watch, jewelry and eye wear manufacturer. The company was established in
the June, 1984 with the joint venture between the Tata groups and the TIDCO(Tamil NADU Industrial
Development Corporation).The major development was in the manufacturing of analogue electronic quartz
watches which was new to the Indian market. Analogue watches means the time is represented by the spin
around dial and points to a location. The digital watches shows only the numeric value of time. The
production of Quartz watches was a major success for the company in the watch manufacturing. Titan has
always done high end innovations for developing better products and quality. Titan has also expanded to
the European, Middle East and other overseas countries. They were challenging the European watches by
better investment in innovation and increasing the brand quality of the products. The expansion from
watch manufacturers to jewelry manufacturing began in the early 2000s by creating brand “Tanishq” and
Gold plus which was a major success for the jewelry business of the company and became a major segment
for earning revenues of Titan. Later Titan also diversified to “FastTrack” which was targeted to the youth
market. Titan also increased its product line to Titan Eyewear in 2004 to take advantage of the booming
eye care industry.

REASONS FOR PRODUCT LINE EXPANSION

The Titan Company should have product line expansions because:

1. Market shares: It helps the company in earning the market share of the products or commodities.
The Titan Company has launched various brands of watches for the different target groups, this has
helped them to increase the market share of the company. The company launched sonata for the
mass market, FastTrack for the middle market, xylys and Nebula for the premium market and Favre
Leuba for the luxury market. This helped to sell the products to all the segments and increasing the
market share.
2. Diversification of Risk: The product line expansions helps in diversifying the risks caused by the
decrease in one or more products which can be offset by the profits caused by the other products.
The diversification of risks helps in mitigating the risks and helps in proper functioning of the
business by providing better funds. The profits caused by the jewelry segments has helped in
reducing the risks caused by the declined margins of the EYEWEAR and Watch business.
3. Brand Loyalty: If the business will provide better expertise and quality products to the various
segments of the customers it will increase the brand loyalty of the customers. It will increase the
goodwill of the customers and maintain good customer relationship.
4. Brand promotions: The increase in product line expansions for the various target and segments
groups will increase the brand image of the company and help in brand promotions. Titan is having
a very good brand image by selling quality watches, jewelry under Tanishq brand name and Titan
Eyewear.
5. Market opportunities: Product line expansions helps in increasing market opportunities for the
business and helps in gaining revenues in the new untapped market. When Titan was launched as a
watch company in 1984.During the early 2000 the company entered into jewelry business under
the brand name “Tanishq” which became very successful. The product line expansion helps in
earning profits which cannot be possible by just selling watches by Titan.
Recommendations of product line expansion:

1. Increase in product launches in Jewelry segments: The jewelry is the most profitable segment of
the Titan Company. It helps in generating revenues more than 80% of the overall revenues. The
margin of the jewelry business is very high. Tanishq is successful brand in terms of business. The
company should launch new jewelry products because the government has provided the benefits
of no custom duty hike for importing of gold from other countries. Tanishq should focus more on
studded and wedding jewelries which will help them earn higher margins.
2. Innovation: There should be continuous innovation in improving the designs, quality and reliability
of the products. Better innovations will help in developing better products. The high end innovation
will help in creating better products to meet the changing lifestyle and demands of the customers.
Innovations are very important for the business to increase the product line expansion.
3. Increase in stores: There should be increase in the stores of the business for increasing the sales.
Titan should increase the sales of products by increasing the stores available to sell the goods.
There is need for increasing the sales of the products in an organization. There is increasing need
for the increase of Titan.

4. Satisfying the needs of customers: Titan should increase the product lines by creating products
which will help them in satisfying the needs of the customers and help the customers to achieve
some purpose. There should be high customer approach to meet the demands of the consumers
and increase the customer value towards the products.

5. Strengthening the watch segment: Titan is most commonly known as the “watch “brand and it
should focus on gaining the market share and earning the most from the watch business. Titan was
started as the watch business and the later entered into jewelry business. The company should not
be reliable on the watches which was a pioneer business for Titan. The first thing that comes to
mind of customers after hearing “Titan” is watch. People think Titan as a core watch business. The
company should try to increase the product line in a manner which will increase the sales of the
watch business and increase the profitability. Increasing the growth and increasing margin will help
in earning huge profits for the company.

6. Decrease Advertising Cost: There is a huge expenditure for the company paying in advertising
which may affect their profitability. The expected advertising budget for the company in 2018 was
around 700 crores. The company is spending 15-20% of its marketing budget on digital marketing
which helps in targeting the youth brands such as FastTrack and Titan Jewelry. Titan advertises
most of its product lines individually, Titan Raga is advertised separately whereas the studded and
marriage jewelries are advertised separately. This increases the cost of the advertising expenses.
Titan should advertise the product lines under one head, this will decrease the advertising cost and
improve the margins of products.
7. Taniera Long Term vision: Taniera is a saree brand launched by Titan to provide traditional sarees
to young urban women. Titan is trying to take advantage of the unorganized saree markets.
Taniera’s first store was opened in Bangalore in 2017. The company is trying to expand its store in
all the major cities and not only the metros. Taniera 2017 profit was around RS 20 crores, which
was expected to get doubled in 2018 to RS 40-45 crores. Taneira is planning to launch around 50
stores in five years. This could be a game changer for Titan saree business. Titan has long term
vision from the Taniera to earn revenues. This would make Titan look more like a lifestyle brand.
Titan goodwill and brand image in front of customers would make Taniera a successful saree
business. The saree market in India is around RS 500 billion markets. Saree market in India is
unorganized and mostof the sarees are sold through traditional saree stores. Taniera can prove to
be a successful brand for the organized saree retailing.

8. Competitive eye wea productsr: Titans eye wear business has reported loss. This is the only
segment which has reported loss. Titan should try to launch new Titan eye wear products at a
competitive prices. Titan eye business are selling glares and the sunglasses are sold through
Fastrack. The company has nearly 350 Titan outlets and the company is trying to increase its outlets
which will increase the revenues for Titan. Titan should decrease the cost of advertising for
eyewear by targeting non-conventional methods of advertising. The company is also trying to sell
glares outside India which will increase its revenue.