While a foray into leather accessories will be made under the umbrella brand Titan, sunglasses will be marketed under its existing sub brand FastTrack targeted at the young, fashion conscious consumer, Mr Bijou Kurien, chief operating officerwatches, told FE.
The Tata group company, had in fact, late last year indicated that it may diversify into leather accessories, sun glasses and writing instruments segment also. However, the company is immediately keen on only two categories. Our plans to diversify into sunglasses and leather accessories are very much in tact and we will be out with these products in a period of next three months, Mr Kurien said.
Interestingly, this will be Titans third diversification since it commenced operations in 1986 as a watch manufacturer and later diversified into jewellery in 1994.
Titans new foray will begin with a test marketing drive in Bangalore and after gauging its success will be taken forward to other cities. While the products will be sourced from independent units, the company will rely on its existing distribution network to market and distribute it.
The move clearly is in the wake of the companys decision to position itself as a personal adornment company rather than just as a watch and jewellery entity. Meanwhile, the company has earmarked an advertising budget of Rs 1.5 crore to promote its latest offeringthe slimmest watch in the universeEdge. Handled by advertising agency O&M, the multimedia campaign comprises of three spurts of TV ads, billboards, in-store display material and direct mailers. The company is not using print medium initially. Titans annual advertising budget is about Rs 30 crore.
Priced between Rs 4,495 and Rs 4,995, the new range, hopes Mr Kurien will generate Rs 15 crore turnover during the current fiscal in the domestic market. The watch with a total slimness of just 3.5mm and a thin movement of 1.15mm was showcased at the recent Bassel fair in Germany. The closest competitor to Titans Edge would be Swatch Skin which is 3.95mm thin.
At present, more than 70 per cent of the companys revenue comes from watches, while the remaining comes from Tanishq, its jewellery division.