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A Project Report on

“A Study Of In Store Customer Experience At Fastrack Store”

BY

PRABHU HIREMATH

1PI09MBA61

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY,

BELGAUM

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Project work carried out at

TITAN INDUSTRIES LIMITED

Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. K.R.Ravi Mr. Vipin Nair

Professor Retail Executive

PESIT MBA Titan Industries Limited

Department of MBA

PES INSTITUTE OF TECHNOLOGY,

BANGALORE-85

(2009-2011 Batch)



DECLARATION

I, Prabhu Hiremath, student of MBA, PESIT, hereby declare that this project report

titled “A Study Of In Store Customer Experience At Fastrack Store” done at TITAN

INDUSTRIES Ltd, Bangalore is prepared in partial fulfillment of the requirement for the

award of the degree in MBA during my academic year 2009-2011 under guidance of Prof.

K.R.Ravi, Professor, MBA department, PESIT, Bangalore.

The information given is authenticated and true to my knowledge .and I also declare

that this project has not been submitted to any other university/institution for the award of

any degree.

Place: Bangalore Prabhu Hiremath

Date:

USN: 1PI09MBA61 (signature of candidate)

ACKNOWLEDGEMENT

Feb-July 2011 2



I owe a great many thanks to great many people who helped andsupported me during this project.

My respectful thanks to Dr. M.S.Ranga Raju, HOD, PES MBADepartment & Dr. KNB Murthy, Principal, PESIT, for extending

their support

I’m highly obliged to Prof K.R Ravi, Professor, PESIT MBA

Department, and the Guide of the project, for his constant

encouragement, valuable guidance & innovative ideas, without

which the project would not have been a professional work.

My deep sense of gratitude to Mr. Vipin Nair, Retail Executive,

TITAN INDUSTRIES LTD, Bangalore for sparing their valuable

time, knowledge & encouragement, including keen interest &

guiding me at every stage of the project, without whom this report

would not had reached this stage. My thanks and appreciation to

helpful people at TITAN INDUSTRIES LTD for their support

I also thank my institution and faculty members without whom

this project would have been a distant reality. I also extend my

heartfelt thanks to my family and well wishers

Last but not the least; I’m highly obliged to the Almighty

without whose inspiration it would have been really difficult in

completing the project.

PRABHU HIREMATH

USN: 1PI09MBA61

EXECUTIVE SUMMARY

Feb-July 2011 3



Since the past decade, Indian watch industry is witnessing a number of changes that caused a

revolution in the watch market. Right from mechanical watches to quartz watches, a time

keeping device to a style statement, public sector players to private sector players like Titan,

Timex, Maxima, from dark, dingy shops to branded/exclusive ambience filled showrooms,

from limited variants to unlimited choice of different watches.

The project is a study on,

“A Study of In Store Customer Experience at Fastrack Store”

The study was conducted with a sample size of 100 conveniently chosen respondents of

customers who visited the Fastrack exclusive store and the college going students. The aim

was to gain a better understanding of the general choice of preference of the customers while

buying Fastrack products and evaluate the awareness level of the Fastrack Exclusive store

Jayanagar among the respondents.

The interesting findings from the survey are the existing customers of Fastrack are satisfied

with the brand quality, price, service, stock availability and staff behavior. The samples

collected from the youth results that the awareness level of Fastrack has a brand is high but

42% of respondents are not aware of Fastrack exclusive showroom in Jayanagar. 29% of the

respondent who are aware of Fastrack exclusive showroom but they are not aware of Fastrack

exclusive showroom in Jayanagar. The respondents are not visiting the exclusive store due to

no discounts and offers and the store is not easily accessible.

The project brought into light the different facets of consumers today, and

helped us gain an understanding of their attitudes and behaviour that varied

from one group to another. The information gathered from the data will help us

in designing marketing strategies, such as various internal and external

promotions and media campaigns.

CONTENTS Feb-July 2011 4



PART A

CHAPTER NO NAME OF THE CHAPTER PAGE NO.

Chapter 01 INDUSTRY PROFILE 1-4

1.1 History of the watch market 2

1.2 Size of the Indian watch market 2-3

1.3 Market Segmentation 3

1.4 Market Strategy 4

Chapter 02 COMPANY PROFILE 5-23

2.1 Background 5-9

2.2 Nature of business 10-12

2.3 Vision and mission statement 12

2.4 Products & services profile 13-17

2.5 Area of operation 17

2.6 Ownership pattern 18

2.7 Competitors information 19

2.8 Infrastructural facilities 20

2.9 Achievements & awards 21

2.10 Work flow model 22

2.11 Future Growth 22-23

Chapter 03 MCKENSEY’S 7S FRAMEWORK 24-29

Chapter 04 SWOT ANALYSIS 30-31

Feb-July 2011 5



Chapter 05 Analysis of Financial Statement 32-34

Chapter 06 LEARNING EXPERIENCE 35-37

PART B

CHAPTER NO NAME OF THE CHAPTER PAGE NO.

Chapter 01 INTRODUCTION TO FASTRACK 38-45

1.1 Background of Fastrack 391.2 Re launch of the brand 39-401.3 STP Analysis 40-421.4 Marketing mix 43-44

Chapter 02 INTRODUCTION TO THE STUDY 45-48

2.1 Title of the Study 46

2.2 Objective of the study 462.3 Scope of the study 46

2.4 METHODOLOGY 47

2.4.1 Sampling plan 472.4.2 Plan of analysis 472.5 Limitation of the study 48

Chapter 03 ANALYSIS AND EVALUATION OFDATA

49-77

3.1 Introduction to the Study 503.2 Demographic Data 51-77

Feb-July 2011 6



3.3 Study Data 51-77

Chapter 05 RECOMMENDATIONS ANDCONCLUSIONS

78-79

LIST OF TABLES

TABLE NO TOPIC PAGE NO

1. Shopping Destination 512. Watch purchase period 523. Brand preference 534. Brand perception 555. Ad recall 566. Ad likeliness 577. Ad uniqueness 588 Dislike in ad 589 Visit to store 59

10 Store awareness 6011 Jayanagar store awareness 6112 Like to visit store 6213 Need gap 6314 Reasons 6415 Purchase decision 6516 Stock Availability 6617 Ambience 6718 Staff behavior 6819 Product Quality 6920 Offers 7021 Price 7122 Store location 7223 After sales service 73

Feb-July 2011 7



24 Overall satisfaction 7425 Likely to visit again 7526 Recommendation 76

LIST OF GRAPHS

GRAPH NO TOPIC PAGE NO

1. Shopping Destination 512. Watch purchase period 523. Brand preference 544. Brand perception 55

5. Ad recall 566. Ad likeliness 577 Visit to store 598 Store awareness 609 Jayanagar store awareness 6110 Like to visit store 6211 Need gap 6312 Reasons 6413 Purchase decision 6514 Stock Availability 6615 Ambience 68

16 Staff behavior 6917 Product Quality 7018 Offers 7119 Price 7220 Store location 7321 After sales service 7422 Overall satisfaction 7523 Likely to visit again 7624 Recommendation 77

Feb-July 2011 8



CHAPTER 1

INDUSTRY PROFILE

Feb-July 2011 9



1.1 History of the Indian Watch Market

Wrist Watches form an integral part of the personality of individuals in the present

era. Earlier seen as a luxury item, they are now witnessing a fundamental change in

perception, and are now gaining respect as an essential utility item. For the watch industry,

time seems in its favour what with the liberalization of the Indian market coupled with the

rising purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector organisations like Hindustan

Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators once upon a time!),

and has now left the pioneers far behind or nowhere in market by private sector enterprises

like Titan, Sonata, Ajanta and Timex along with foreign entities jostling for display space in

the smallest of shops selling these products.

Before the establishment of HMT as the dominant player in the Indian markets initially, the

country was solely dependent on imports to meet the internal demand. However,

establishment of HMT as the leading player in the wrist watch segment in the 1960’s,

changed the scenario

In post liberalization India, the market stood to witness intensive competition between

foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex,

Fréderique Constant, Mont Blanc, Swatch, and many others. Many watch makers have made

significant inroads in the industry and others are in the process of establishing themselves,

currently.

Besides this, buyers are extremely choosy about the brand and type of wrist watches they

wear. Being extremely brand conscious, their tastes have evolved over the years and have

Feb-July 2011 10



gone beyond the realms of durability to choose in terms of aesthetics and elegance. Thus it is

a buyers’ market with multitude of designs that have entered and flooded the market place

1.2 Size of Indian watch market

The size of the watch market currently is estimated to be around 40 to 45 million pieces

annually. The organized sector alone contributes up to 30 percent of this figure, and the rest

of the demand is being met by the unorganised grey sector. This data is significant indeed in

view of the socio economic distribution of the Indian populace. More than 58 percent of the

population is under twenty five and more than 80 percent of the population is below 45 years

of age.

In dollar terms, the estimated annual market size is around USD 195 million, despite the fact

that the penetration of watches is the lowest, compared globally. Looking into this fact and

the long standing Indian tradition of comparing watches with jewellery and other traditional

items, many watch companies are interested in setting up base in India. The average growth

in the size of the market is slated to be around 10 -15 percent per year.

1.3 Market Segmentation

A casual study of the watch market reveals that it is segmented on basis of multiple

proportions such as price, benefits and types of watches. The price of the watches is a major

motive in the minds of the customer. Accordingly, three segments can be identified here,

namely low priced, medium priced, and high priced watches.

The lower priced segment consists of watches priced less than INR 500; the medium price

range consists of watches in the INR 500-1500 range and the high priced watches come in the

INR 1500 upwards range. There are other higher categories as well such as the premium and

luxury range, but they appeal to only a small category of the watch market in India.

According to a recent study, more than 90 percent of the watches were from the lower price

ranges with international costs being less than 20 euros. Moreover, around 20 to 25 watches

are being sold for every 1000 citizens. Thus there is enormous potential for growth of the

industry in this untapped segment. Some customers look out for features like fashion appeal,

technology, sophistication and status. Others go for durability, economy and precision.

Many customers prefer mechanical and automatic watches, while others prefer quartzwatches. Newer segments are also on rise such as ladies watches, children’s watches and

Feb-July 2011 11



gent’s watches. Customers usually base their preferences and buying decisions on a variety of

factors like price, durability, utility, aesthetic appeal and brand name. A combination of all

these points ultimately forms the customer’s buying decision that translates into the purchaseof a watch.

1.4 Marketing Strategy

The retail sector has just begun to boom in India. Since the early 1990’s, Indian customers are

relying more on departmental stores and shopping malls to purchase their wants and needs.

This has come as a boon for watch manufacturers and dealers, who are now looking forward

to utilize these new outlets to reach out to the Indian masses. Watch manufacturers are

looking at a suitable mix to market their products ranging from exclusive retail outlets to

display sections in malls and large departmental stores.

In the end, though India is still considered to be a difficult market to penetrate, due to reasons

like price sensitiveness and its largely unorganized sector. However, with the right planning

and the right partners and experienced collaborators, it is expected that both international and

domestic watch manufacturers will do well in the Indian markets.

Feb-July 2011 12



CHAPTER 2

COMPANY PROFILE

Feb-July 2011 13



2.1 BACKGROUND

The TITAN Story

Early 2001, when Indian consumers rated Titan ahead of all other brands as the Most

Admired Brand in India across all product categories (the first ever such survey done by

Brand Equity), it did not surprise people that a 13 year-old had managed to upstage many

older and more well-known brands: it was expected of Titan to achieve such things, it was so

natural.

It was also a fitting tribute to a brand, which had not only revolutionised the Indian watch

industry, but also brought in world-class benchmarks in product design, quality and retailinginto India.

Back in the early eighties, the Tata Group had identified the watch category as a potential

consumer market for the Tatas to enter. Xerxes Desai, a Tata veteran and the then MD of

Tata Press, was chosen to lead that venture.

In those days of pre-liberalization the watch market, like most consumer markets in India,

was way behind the rest of the world. The technology in vogue was the reliable, but outdated

"Mechanical" technology, which used the unwinding of a mechanical spring to tell time. Notonly was the accuracy of time-keeping not good enough, but the bulky mechanical movement

did not permit the creation of sleek products. The industry was dominated by the public

sector which had brought in watch manufacturing into India, enjoyed tremendous goodwill in

the market, but had not really invested in evolving itself and its consumers: styling still

remained basic, choice was limited.

The watch shops were narrow, dingy and typically located in the older, traditional markets of

the city. You went there only to buy a watch, never to browse, never to simply check out.

Visual merchandising was very much at the stage of "decoration" if any, and neither the

brands nor the retailers saw it as important. The companies themselves did not have much

contact with retailers, preferring to sell through wholesalers, doing well that way. There was

hardly any need for consumer contact or research. It was a sellers' market.

All this affected the consumers. Watches remained a time-keeping device, so one watch was

enough, thank you. Since the quality of the watch was quite good, it lasted quite a while and

the consumers did not change it for 10, 15, 20 years. And when they did change it, they did

Feb-July 2011 14



not pay a high price for the new piece because, what the hell, they were buying another time-

keeping device.

Xerxes Desai's vision was to dramatically alter this perception of consumers, and make Titan

a fashion accessory. He knew that that was the only way that this new brand would explode

the market and wrest control from the dominant HMT. So he and his team went about

breaking all the rules in the category:

Mechanical technology was the norm - Quartz had not really taken off in India. Titan would

go against that and build its line based on quartz. Accuracy would become a selling-plank.

Styling was basic - This was a constraint imposed by the technology as well the outlook of

the manufacturers. Titan decided to make style a table-stake.Choice was limited - You had 200 models to pick from, that was it. Titan decided to inundate

consumers with a wide choice in style, functions and price. The initial range was 350 models.

Shops were dark, dingy and uninteresting - There was no importance given to presentation,

and therefore no attempt made at it. Titan brought in the concept of retailing into the watch

market, established a network of fine showrooms which would later become the world's

largest network of exclusive watch stores. These stores not only helped Titan to gain

leadership substantially, but also irrevocably altered the retail landscape of the watch market

through a demonstration effect on the traditional dealers.

Advertising was expenditure - Titan saw this as a vital investment. Right from Day 1, Titan

invested significantly in advertising and in that process created a set of memorable and

effective properties over the years.

Titan’s First Milestone

Titan commenced production end 1986 and hit the market in March 1987 with its brand

‘Titan’. The analogue electronic Quartz range met instant acclaim, appeasing a hungry watch-

starved consumer market. This spurred encouragement and manufacture extended to

bracelets, cases, electronic circuitry and step motors.

Along The Way

Spanning 25-years of growth, the Titan Watch Project became Titan Watch Division and

ultimately Titan Industries. Production kept an impressive pace, topping the 10 million plus

mark per year. Three years down the trail produced a dividend of 15% – today, 2009, sees adeclaration of 100%. Feb-July 2011 15



Audaciously challenging the Swiss, Titan now is the world's largest integrated manufacturer

of watches. A major brand player, Titan stakes claim to 60% of the organized watch market,

with over 100 million pieces sold across 30 countries collectively.

Ventures

Diversification accelerates progress. Titan’s expansion plans in 1993 turned to jewellery,

with a brand launch ‘Tanishq’ in 1996. Then a spate of new ventures followed suit, Fastrack

– the youth watch and accessories line in 2003; Precision Engineering in 2005, Goldplus the

standardized mass marketing of jewellery in 2006 and the Titan Eyewear Division in 2007 - a

project of prescription eyewear, complete with specialized outlets, catering to customers’every need.

Foreign Exchange being no consequence subsequently caused Titan to focus exclusively on

the home market. Today, Tanishq - the first branded jewellery player and Goldplus, are

righteous equivalents of the Cartier, Tiffany, Esprit, and Ernest Jones of the West in

credibility, standards and fame.

Growth of Titan

Titan is the sheer scale of its offering and the consequent choice it offers to multiple

segments across taste, age and economic background. Titan saw this approach as the

foundation of its leadership strategy in the early days.

Even the early range had distinct offerings for different requirements:

• Formal watches (gold plated cases with fine leather straps) for the executive,

• Dress watches (gold plated cases with ornamental gold plated bracelets) for those

with a preference for jewellery,

• Rugged watches (all steel watches with a skew to functionality) for those whose

usage demanded certain durability.

Titan has built on this principle over the last 15 years, almost year after year:

Feb-July 2011 16



In 1989, it was Aqura, the trendy range for the youth, colourful, smart and affordable plastic

watches for the youth: The other side of Titan for the other side of you.

In 1992, it was Raga, the ethnic range, with striking symbolism from ethnic India, for the

sophisticated India woman who appreciated such things.

In 1993, it was Insignia, very distinctive and international-looking top-end watches, for those

seeking exclusivity and status.

In 1994, it was psi 2000, rugged, sporty and very masculine watches with serious sports

features (200-m mater resistance, high precision chronographs) for those with the penchant

for adventure.

In 1996, it was Dash, the cute and colourful range for kids.

In 1997, it was Sonata, the affordable, good quality range for the budget-conscious.

In 1998, it was Fastrack, the cool, trendy, funky range for the young and young-at-heart.

In 1999, it was Nebula, the sold gold and diamond-studded range of luxury watches for those

affluent people to whom gold is a precious acquisition.

In 2001, it was Steel, the smart and contemporary collection for the young 21st century

executive.

And in 2008, the brand has collections like the Octane, Diva, WWF and Zoop - each of them

unique and fascinating.

2.2 TITAN’S NATURE OF BUSINESS

Feb-July 2011 17



Titan started its business with the manufacture of Watches, and then diversified into

Jewellery and Eyewear. They also provide Precision Engineering services to the top notch

countries around the world.

2.2.1 TIME DIVISION

The Time Products division is where the Titan story began. Today, this division has placed

Titan Industries among the world’s largest retail networks and earned the company the place

of fifth largest integrated watch manufacturer in the world With over 624 retail stores across

a carpet area of over 7,70,848 sq. ft. Titan Industries has India’s largest retail network. The

company has over 300 exclusive ‘World of Titan' showrooms and over 650 after-sales-service centre

2.2.2 JEWELLERY DIVISION

Tanishq, Titan’s flagship line of jewellery is today a resounding success with discerning

customers. Tanishq has performed exceedingly well and has set standards, in what could best

be described as a largely unorganised and unscrupulous jewellery market.

The growth of the brand has once again been a testament to our customer focus. Tanishq is

today a hallmark of trust, an island of purity. It is a certified division under the ISO

9001:2000 Quality Management System Standards. Established to addresses the urban

market, its growth has transformed Titan into the largest integrated jewellery manufacturer

and outsourcing company of India. Titan Industries is also the largest jewellery retailer in

India with over 119 Tanishq boutiques and Zoya stores , over 28 Gold Plus stores.

2.2.3 PRECISION ENGINEERING DIVISION

Feb-July 2011 18



Precision Engineering Division is ISO 9001:2000 and ISO 14001:2004 certified. Additionally

the unit catering to Aerospace segment is AS 9100B certified and the unit catering to

automotive segment is TS 16949 certified.Depicting a significant and progressive growth drive, listed below are some of the Division’s

top customers

2.2.4 EYEWEAR DIVISION

Titan Eye+, the third major venture of consumer business by Titan Industries, launched into

the eyewear segment in March 2007. This initiative was to re-define eyewear and fortify the

industry with quality standards, unparalleled in the history of India’s eye-care industry.Titan

Eye+ heralded standardisation by benchmarking with the world’s best, in sync with the

TATA principles of quality and trust.

Feb-July 2011 19



2.3 Titan’s Mission and Vision

2.3.1 Mission:

To create wealth for all our stakeholders by building highly successful businesses based on a

customer-centric approach, and to contribute to the community.

2.3.2 Company Vision:

To be a world-class, innovative and progressive organization and to build India’s most

desirable brands.

2.4 PRODUCTS AND SERVICES OF TITAN

Titan’s products range in the category of Watches, Jewellery and Eyewear and their services

include Precision Engineering.

2.4.1 WATCH DIVISION

Different Brands under the Watch segment are:

Feb-July 2011 20



Titan is one of India's leading watch brands that brought about a paradigm shift in the Indian

watch market, offering quartz technology with international styling. The Titan portfolio ownsover 60% of the domestic market share in the organised watch market.

The Titan brand architecture comprises several collections and sub-brands, each of which is a

leader in own space. Notable among them are: Titan Edge - world's slimmest watch based on

the philosophy ‘less is more’, Titan Raga - feminine and sensuous accessory for today's

woman, Nebula - crafted with solid 18k gold and precious stones. Several other popular

collections like Heritage, Aviator, Regalia, also form a part of the Titan portfolio.

Sonata, India's largest selling watch brand, offers stylish looks at affordable prices. The

thoughtfully crafted designs encompass the aspirations of young India. The boldness and

uniqueness of each design reflects the confidence of the wearer.

The brand offers a variety of looks, to suit every occasion and every wallet:

Dressy Sona Sitara watches for special occasions

Bold Yuva watches crafted in steel for today’s confident youth

Contemporary Office Wear watches with formal appearance and leather strap

Stylish and Strong Super Fibre watches.

Fastrack was launched in 1998 as a sub-brand of Titan. It was spun off as an independent

brand of watches targeting the urban youth in 2005. Since then, it has carved a niche for itself

with designs that were refreshingly different and affordable. During that time, Fastrack also

extended its footprint into eye gear and in the last 4 years has quickly notched up the title of

being the largest sunglass brand in the country.

Feb-July 2011 21



Fastrack has now chartered into newer categories – bags, belts, wallets and wrist bands – as

part of its vision to become a complete fashion brand for the youth. With enough categoriesto fill up one cool store.

Xylys, is an exclusive brand of Swiss Made watches brought to you by Titan. An eloquent

interpretation of Swiss watch making with the trappings of exquisite craftsmanship and

impeccable detailing, all Xylys watches are created with a fine sense of design and painstakingly made from carefully selected materials.

.

Tommy Hilfiger Watches

Tommy Hilfiger, one of the best-known American fashion brands, has its roots in Elmore, New York. The brand is recognized world over for watches, jeans, fragrance.

Titan Industries Limited has made Tommy Hilfiger Watches available in India at most

‘World of Titan’ stores, leading multi-brand watch outlets, and department stores like

Shoppers Stop, Central and Lifestyle.

Hugo Boss Watches

Hugo Boss, one of the world’s most popular European brands, has its roots in Germany.

Hugo Boss is known for shoes, accessories, and fragrances. Watches complement and

complete the portfolio. Hugo Boss watches were launched globally early this year. The Hugo

Boss watch designs connote European elegance and couture and are a symbol of power and

sophistication.

Hugo Boss watches are now available in India, thanks to Titan Industries Limited.

3.4.2 JEWELLERY DIVISION

Feb-July 2011 22



Tanishq, India's largest, most trusted and fastest growing jewellery brand, offers traditional as

well as trendy designs in gold, diamond and platinum. Stringent quality standards ensure that

every product at Tanishq is crafted to perfection with unmatched finish. With innovations like

the karat meter - the only non-destructive means to check the purity of gold .Tanishq

introduced specialised retailing in the fragmented jewellery market of India. Today, with 115

opulent stores in 75 Indian cities, Tanishq continues to rule the jewellery space.

Titan Industries’ Goldplus is designed for the jewellery preferences of the semi-urban and

rural Indian customer the brand also offers impressive designs embellished with diamonds,American diamonds (Cubic Zirconia) and other precious stones. The Goldplus jewellery

comes with the assurance of purest 22-karat (916) and 18-karat (750) gold and premium

craftsmanship. With a presence in 30 towns spread across 6 states, Goldplus is the largest

jewellery retail chain in Tamil Nadu.In addition to gold jewellery,. Every Goldplus product is

endorsed by a certificate that states the purity of the gold and the quality of diamonds used in

the article.

2.4.3 EYEWEAR DIVISION

Feb-July 2011 23



Products

The range of products that Titan Eye + offers include eye-glass frames, lenses, contact lenses,

sunglasses that follow the international designs and style trends.

Services

• Zero-error eye testing in state-of-the-art optometry clinics

• Style consultancy to select the right frames

• Browse, Select & Buy format

INTERNATIONAL BRANDS

Titan Eye+ stocks a selection of fashion and prescription frames as well as sunglasses from

internationally renowned apparel brands such as Esprit, Tommy Hilfiger, Hugo Boss,

Versace and Armani.The Titan Eye + stores also offer high-end lifestyle brands such as Mont

Blanc, Swarovski and Bulgari all of which cater to the premium segment of Titan’s clientele.

2.4.4 PRECISION ENGINEERING DIVISION

Leveraging precision engineering core competencies from watch making, Titan initiated a

PRECISION ENGINEERING DIVISION in 2002, catering to global majors across industry

verticals like aerospace, automotive, oil & gas, engineering, hydraulics, solar and medical

instruments.

With an investment of over $10 million, this setup has four main business units:

• Precision Engineering Components & Sub-Assemblies (PECSA)

• Machine Building & Automation Solutions

• Tooling Solutions

• Electronic sub-assemblies

Feb-July 2011 24

http://www.titan.co.in/business-divisions/precision-engineering-division/precision-engineering-components-sub-assemblies-pe

http://www.titan.co.in/business-divisions/precision-engineering-division/machine-building-and-automation-solutions

http://www.titan.co.in/business-divisions/precision-engineering-division/tooling-solutions

http://www.titan.co.in/business-divisions/precision-engineering-division/electronic-sub-assemblies

http://www.titan.co.in/business-divisions/precision-engineering-division/machine-building-and-automation-solutions

http://www.titan.co.in/business-divisions/precision-engineering-division/tooling-solutions

http://www.titan.co.in/business-divisions/precision-engineering-division/electronic-sub-assemblies

http://www.titan.co.in/business-divisions/precision-engineering-division/precision-engineering-components-sub-assemblies-pe



2.5 AREA OF OPERATION

Titan is available across India in “WORLD OF TITAN EXCLUSIVE SHOWROOMS”,Multi Brand outlets and dealers. Titan’s also touched the International foray.

Titan notably left its’ footprint in Europe in 1993; then came a major one in the Middle East

and the Asia-Pacific regions. Titan now happily ticks its way across twenty-six countries

around the globe. Internationally, Titan’s business amounts to over 675k watches annually

Titan today sells in

• UK

• Spain

• Portugal

• Greece

• Singapore

• Dubai

• Malaysia

• Oman

• Philippines

2.6 OWNERSHIP PATTERN

Titan Industries Limited was promoted by the Tamilnadu Industrial Development

Corporation Limited (TIDCO) and the Tata Group. As on March 31, 2010 Share holding

pattern is shown below

Feb-July 2011 25



Particular No. Of Shares Percent Shares (%)

Promoter Holding 23687548 53.36

Foreign Promoters 0 0

Non-Promoter holdings (Other than Public)

Financial Institutions/Banks 166683

FII/Foreign Fin Inst/Foreign

Banks

4971393 11.2

Corporate Bodies 1764250 3.97

OCB 450 0

NRI 0 0

Mutual Funds 3545155 7.99

Other Foreign Holdings 0 0

General Public

Individual Holding Upto Rs. 1

lakh

5359230 12.07

Individual Holding Excess of

Rs. 1 lakh

4879399 10.99

Others 15200 0.03

Total 44389308 100

Feb-July 2011 26



2.7 COMPETITORS INFORMATION

Throughout the voyage of Titan, competitors have always been a part and parcel. HMT, at

one point of time as a competitor were overtaken by Titan when Quartz watches were

introduced. In the current scenario, Titan faces stiff competition from the Foreign company

brands.

2.8 INFRASTRUCTURAL FACILITIES

With over 624 retail stores across a carpet area of over 7,70,848 sq. ft. Titan Industries has

India’s largest retail network. The company has over 300 exclusive ‘World of Titan'

showrooms and over 650 after-sales-service centers. Titan Industries is also the largest

jewellery retailer in India with over 119 Tanishq boutiques and Zoya stores, over 28 Gold

Plus stores and over 120 Titan Eye+ stores. The company has two exclusive design studios

for watches and jewellery

Backed by 4,934 employees, two exclusive design studios for watches and jewellery, 11

manufacturing units, and innumerable admirers’ world over, Titan Industries continues to

grow and sets new standards for innovation and quality. The organization is all geared to

repeat the Titan and Tanishq success story with each new offering.

Feb-July 2011 27



2.9 ACHEIVEMENTS AND AWARDS

Over the years, Titan Industries has received several prestigious awards and distinctions.

Some of the recent and most noteworthy recognitions are:

• Titan Industries received the Award for the Most Admired Timewear Brand of the

Year in 2009 for the ninth successive year for Titan, and the Most Admired

Jewellery Brand of the Year for the seventh consecutive year for Tanishq.

•

Goldplus bags 2 dragons and 2 certificates of merits at the Promotion marketingawards of Asia 2009.

• Jewellery Division was declared the winner of the “GOLD AWARD" in FMCG

sector in the GreenTech Environment Excellence Award 2009.

• Jewellery Division wins first prize in “Innovation in Supply Chain Management”

organized by Indian Institute of Material Management for the second consecutive year

and ranked amongst the top five amongst 50 global entries at Europen Business

School, Weisbaden Germany .

Feb-July 2011 28



• Titan brand won the “Most Valuable Brand in the State” award at the IIPM & The

Sunday Times STATE EXCELLENCE AWARD.

• Both Titan and Sonata feature in the Top 100 Brands-2009 in the Annual Survey

conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase

their rank to 86. Titan is ranked number 1 in the consumer durables category.

• Jewellery Division of Titan Industries Limited won the Eight Annual Madras

Management Association award on Managerial Excellence for Manufacturing sector.

• Titan Industries bagged 19th position across all industry categories and 1st position in

the Retail Industry category in the Economic Times – Great Place to Work Institute

study. The survey results show that 92% employees across Titan Industries feel that

Titan is a Great Place to work!

Titan Industries was one of the five organizations to be awarded the "Corporate Social

Responsibilities" award - Best Commercial and Industrial Institute for 2009 - 10 by the

Government of Tamil Nadu.

2.10 WORK FLOW MODEL

Feb-July 2011 29



2.11 FUTURE GROWTH & PROSPECTS

Titan’s future lies in the innovation and introduction of new watches time and again to be on

par with the trend and to maintain the competitive advantage that they possess and remain the

market leader.

Titan’s recent collection, TITAN RAGA AQUA, TITAN AUTOMATIC, TITAN PURPLE

Elita Nymph Pearl

Feb-July 2011 30

RAGA AQUA



Valence

Feb-July 2011 31

TITAN PURPLE

TITAN AUTOMATIC



CHAPTER 3

MCKINSEYS 7S FRAMEWORK WITH

SPECIAL REFERENCE TO TITAN

INDUSTRIES LTD

3.1 INTRODUCTION TO MCKENSY’S 7S FRAMEWORK

Feb-July 2011 32



The McKinsey 7S model was named after a consulting company, McKinsey and Company,

which conducted applied research in business and industry (Pascale & Athos, 1981; Peters &

Waterman, 1982).

Looking at each element specifically:

• Strategy: the plan devised to maintain and build competitive advantage over the

competition.

• Structure: the way the organization is structured and who reports to whom.

• Systems: the daily activities and procedures that staff members engage in to get the

job done.

• Shared Values: called "super ordinate goals" when the model was first developed,

these are the core values of the company that are evidenced in the corporate culture

and the general work ethic.

• Style: the style of leadership adopted.

• Staff: the employees and their general capabilities.

• Skills: the actual skills and competencies of the employees working for the company.

3.1.1. Structure

Business needs to be organized in a specific form of shape that is generally referred to

as organizational structure. The structure of the company often dictates the way it operates

and performs. Titan Industries ltd basically comprises of Marketing, Finance, Human

Resource, Design, Purchase, Stores. The functional heads of various Brand Divisions is

shown in the Table below. The organization structure at Titan Industries is “Hierarchical”

in nature. The heads of different Brand divisions governs all the directors. The decision

making process is a combination of centralized as well as decentralized, where in the

employees are allowed to take decision under their premises and consult their head for major

decision respectively.

Table 1: Showing the Brand Divisional Heads

Feb-July 2011 33

http://www.coursework4you.co.uk/sprtbus70.htm

http://www.coursework4you.co.uk/sprtbus70.htm



Name Designation

Bhaskar Bhat Managing Director

Harish Bhat COO – Time Product Division

C.K. Venkataraman COO – Jewellery Division

Ravi Kant COO – Eyewear Division & Sr V.P

Corporate Communications

Kailasanathan N COO – Precision Engineering Division

H.G Raghunath Chief Manufacturing Officer, Watches

S. Ramadoss Chief Human Resource Officer

Subbu Subramaniam Chief Financial Officer

C. Srinivasan Vice President- Sonata, Institutional Sales

Ronnie Talati Vice president – Fastrack & New Brands

L.R. Natarajan Chief Manufacturing Officer, Jewellery

V. Govindraju Vice President – Integrated Retail Service

Sandeep Kulhalli Vice President – Retail & marketing, Tanishq

Ajoy Chawla Vice President & Global Business Head

Ramesh.C.S Head – I.T Division

A.R. Rajaram Head – Legal & Company Secretary

3.1.2 Strategy

Strategy is the plan of action an organization prepares in response to, or anticipation

of changes in its external environment. It deals with essentially three questions

➢ Where is the organization standing at this moment of time?

➢ Where the organization wants to be in a particular length of time?

➢ How to get there?

Pricing Strategy

Out of various strategies adopted by the company since from its inception, pricing strategy,

marketing strategy and positioning of each of their brands has placed the Titan brand at the

Feb-July 2011 34



top slot with respect to its core competitors, compared to its major competitors (Foreign

Brands)

3.1.3 Systems

Every organization has some systems or internal processes to support and implement

the strategy and run day-to-day affairs. For example, a company may follow a particular

process for distribution, order execution etc. These processes are strictly followed and are

designed to achieve maximum effectiveness.

Titan Industries system of distribution is as follows.

Chart showing the Distribution pattern of Titan:

3.1.4 Skills

Skills refer to the facts that the employees have the necessary skills to carry the

company’s Strategy. Training and development ensures employees to do their jobs well and

stay up to date with latest techniques.

3.1.5 Style

All organizations have their own distinct culture and management style. It includes

the dominant values, beliefs and norms which develop over time and become relatively

enduring features of the organizational life. It also entails the way managers interact with the

employees and the way they spend their time

Top down and Bottom up.

Titan Industries Ltd adopts both the styles i.e. Top down and Bottom up accordingly as

required. While taking suggestions from employees, they follow the Bottom up style. And for

any management decision to be implemented, they follow Top down style. The particular

departmental heads collects the needed information to take part to solve problem and submits

to the top management, and accordingly the work or decision are being taken.

Feb-July 2011 35



Authoritarian/Participative

In this style of management the superiors will participate while solving any problem

in the company. Titan believes in Participative style. Here the superiors take theresponsibility for the completion of work within time and provide workably environment to

the workers.

The objective behind Participative style is

➢ For achieving the company’s objective.

➢ To keep co-ordination among the staff at various levels.

➢ To maintain discipline.

➢ To suggest improved and new ideas.

3.1.6 Staff

Staffs represent the employees who are recruited, deployed and developed. Titan Industries

ltd has hired able people, trained them well and assigned them the right jobs. Selection,

training, motivation and assignment to appropriate work are done by the HR personnel at

various divisions when necessity arises.

3.1.7 Shared Values:

Every organization has a set of core values and standards which the employees are meant to

follow to fulfil the Mission and achieve the Vision of the Company. Titan’s values and

standards are:

Total customer orientation

- Customers take precedence over all else, always.

Employee appreciation

- We value and respect Titanians and Endeavour to fulfill their needs and

aspirations.

Performance culture and teamwork

- At Titan Industries, high performance is but a way of life and is nurtured by

teamwork.

Creativity and Innovation

- Driven by innovation and creativity, we focus on smarter approaches and newer technologies.

Feb-July 2011 36



Passion for excellence

- In all our pursuits, we ceaselessly strive for excellence.

Corporate Citizenship- We ensure that a part of our resources is invested in environment and community

betterment.

CHAPTER 5

SWOT ANALYSIS OF TITAN

Feb-July 2011 37



5.1 SWOT ANALYSIS OF TITAN

SWOT Analysis is a powerful technique for understanding the Strengths and Weaknesses,

and for looking at the Opportunities and threats that the company face. Used in a business

context, it helps to carve a sustainable niche in the market.

SWOT ANALYSIS MATRIX OF TITAN

Chapter 5

Analysis Of Financial Statement

Feb-July 2011 38



5.1 Ratio Analysis

2006 2007 2008 2009 2010

Current Ratio

current ratio 1.67:1 1.38:1 1.40:1 1.40:1 1.39:1

Current Asset 653.76 999.33 1,280.

79

1,492.

42

1,821.

65

Current Liability 390.61 723.22 916.58 1,067.

44

1,307.

02

ratio 1.67368

99

1.3817

79

1.3973

58

1.3981

3

1.3937

43

Liquid Ratio/ Quick

ratio

liquid ratio 0.76:1 0.56:1 0.31:1 0.29:1 0.41:1

Current Asset 653.76 999.33 1,280.

79

1,492.

42

1,821.

65

LESS -

Investment

374.39 677.48 1,021.

09

1,202.

69

1,340.

33

liquid ASSET 279.37 321.85 259.7 289.73 481.32

Feb-July 2011 39



liquid liability 363.89 571.26 842.68 974.00 1,172.

28

ratio 0.76773

2

0.5634

04

0.3081

83

0.2974

64

0.4105

85

DEBT.TO EQUITY RATIO

DEBT.TO EQUITY

RATIO

1.15 0.75 0.59 0.32 0.10

Total Debt 267.93 247.01 257.89 175.41 72.79

Networth 232.58 327.45 436.17 551.24 724.38

RETURN ON

EQUITY

RETURN ON

EQUITY

31.65% 28.81

%

34.45

%

28.84

%

34.56

%

Reported Net

Profit

73.62 94.33 150.27 158.96 250.32

Networth 232.58 327.45 436.17 551.24 724.38

PROPRIETORY RATIO

PROPRIETORY

RATIO

0.46 0.57 0.63 0.76 0.91

Networth 232.58 327.45 436.17 551.24 724.38

Total Assets 500.49 574.45 694.05 726.64 797.18

Feb-July 2011 40



Interpretation:

Current Ratio:

It represents the short term financial position and policy it is an indicator of firmsability to meet its short term liabilities. A relatively low ratio (< 2:1) indicatesfirm will find difficulty in meeting its liability. As the current ratio in the year2005-06 is 1.67and has reduced to 1.40 in 2008-09 and reduced to 1.39 in 2009-10. This shows that its ability to meet short liabilities is reducing from 2006 to2010.

Liquid ratio:

It is similar to current ratio but it does not consider inventory, so it shows more liquidity. As

the liquid ratio is 0.76 in the year 2005-06 and reduced to 0.29 in 2008-09 and then increased

to 0.41in 2009-10. This shows that they are unable to meet short term liabilities in 2009-10

compared to 2005-06.

DEBT.TO EQUITY RATIO

This ratio measures the relationship between long term debt and shareholders

fund, as the debt to equity ratio is 1.15 in the year 2005-06 and has reduced to

0.32 in 2008-09 and again reduced to 0.10 in 2009-10. This shows that from

2006 to 2010 there is a higher claim of owners on the asset of the company than

the creditors.

RETURN ON EQUITY:

As the ROE in the year 2005-06 is 31.65% and has reduced to 28.84% in 2008-09

and again is increased to 34.56% in 2009-10, this shows that the return on the

owners fund employed by the company is increasing from 2005-06 to 2009-10. That means the share holders money has been used efficiently by the company.

PROPRIETORY RATIO

As the Proprietary ratio in the year 2005-06 is 0.46 and has increased to 0.76 in

2008-09 and is increased to 0.91 in 2009-10. This shows that the there is

increase in the number of shareholders from 2005-06 to 2009-10 and increase in

the financial strength of the company.

Feb-July 2011 41



CHAPTER 6

LEARNING EXPERIENCE

Feb-July 2011 42



6.1 LEARNING EXPERIENCE

The experience from TITAN INDUSTRIES LTD. helped me gain knowledge and insights

into how a company functions and helped me understand the practical aspect of what I

studied in the class room. It gave me practical knowledge and understanding with regards to

the functioning of the organization, right from its culture, values and beliefs, strategies and

organizational structures. I heartily thank TITAN for giving me the opportunity to do my

project work.

The company firstly exposed me to the brands they deal in. I was under the Fastrack division

and working on the Fastrack exclusive store. The company gave me general inputs of the

product such as their launch, target market, marketing strategies used. They expected me to

bridge the gap with this project of what was done and what could be done in future to

improve more walk ins into the Fastrack exclusive stores. This approach helped me

understand the value of scanning thoroughly about the product under study and the different

aspects and approaches required to understand the brand.

This project helped me understand the market of Fastrack watches, sun glasses and other

accessories that is, its awareness, feasibility in terms of features, price and quality and the

various market factors affecting Fastrack products.

It enriched my practical knowledge about the field work experience in marketing

specialization. The study showed the need for improvement of advertisement for the storesand to understand the awareness level.

Feb-July 2011 43



6.2 Objective:

The main objective of undergoing this project work is to understand the target and their

preferences, and examine the reasons for few walk ins in the Jayanagar Fastrack exclusive

store.

6.3 Experience:

➢ Got to understand practical functions and implementation of various marketing strategies

by the company.

➢ Was able to analyze the various strategies adopted to market Fastrack products.

➢ Could understand the application of theoretical concepts into business decisions in the

organization.

➢ Gained knowledge about all round view of the marketing and sales operation.

➢ Understood the behavior and culture of an organization.

6.4 Observation:

➢ Got to interact with customers and observe their reaction and get feedback on the

watches.

➢ The pros and cons of various marketing strategies.

➢ The perception of various watch buyers towards Fastrack exclusive stores.

Feb-July 2011 44



PART-B

CHAPTER 1

INTRODUCTION TO FASTRACK

Feb-July 2011 45



1.1 BACKGROUND OF FASTRACK

Timex had entered the Indian market through a joint venture with Titan and which

was their offering for the youth market. When that JV broke off in 1997 and Timex went

independent, there was a gap in Titan’s portfolio and it only made sense to fill that need

through their offering. Fastrack was launched as a range of watch ware under Titan and was

called Titan Fastrack. Subsequently, it grew from a range to a sub-brand, where Titan was

upfront in the logo and the association was strong. They used the jazzy version of the Mozart

tune, which is Titan’s signature tune. So, the link with Titan was very strong. When they

launched, they targeted predominantly the early jobber 23-30 year-old male executive. It was

only a year or two later that they launched a line for women.

1.2 RE-LAUNCH OF THE BRAND

They took off and did well in the start but started stagnating in 2001-2003, and that’s

when they went for a reality check. Titan had simultaneously launched the steel collection,

which was an attempt to contemporize for a Titan audience. But what was happening was the

collection in terms of looks, price point and consumer buying behaviour was very similar to

Fastrack, including advertising. The parent brand needed to continue in its endeavour to keep

it contemporary and hence repositioned Fastrack to younger audience in sub-25 range.

Awareness of Fastrack was very low and was linked to Titan. There was no

independent identity. Research had also shown that the fact that it had the backing of Titan

was a positive assurance. However, kids didn’t like to be serious and sober like their parents.

Fastrack needed to break away and hence changed the logo to bring in a youthful,

spontaneous, energetic and fun identity and also removed Titan from the upfront association

in the logo. They however, kept it at the bottom, saying it’s a Titan product. This helped carrythe assurance of the trusted Titan brand. They also stopped using the Mozart tune in

advertising.

Fastrack was launched with new products, a new identity, new advertising and a new

logo in June 2005. The year took off so well that they ran out of stock very quickly and ended

the year with a 150 per cent growth and the demand was growing continuously. Next year,

they recorded another 100 per cent growth.

Feb-July 2011 46



When re-launch was started, Fastrack brand was worth about Rs 29 crore but

however they have grown almost ten times of that over the last three years. Fastrack has a

presence in over 6000 outlets across 800 towns, with new exclusive brand kiosks in MetroMalls and its multi-channel distribution network which covers the 228 strong World of Titan

Network, 122 Large Format Chain stores viz. Shoppers Stop, Lifestyle, Central, Westside,

Pantaloons and Multi-brand watch & optical outlets. Fastrack is actually among the few

brands where people come asking for the brand. They have adopted a fashion based strategy,

where they launch about 3-4 collections in a year in both categories. Collection-based

strategy has helped them very well.

It has been twin approach of constantly innovating on product design, yet being

affordable, and to reach out to consumers in a language that connects to them that led to their

success. It’s not your typical fashion brand talking down saying you must look cool and you

must look like me. With their advertising, they were able to relate to the youth in a setting

they were familiar with.

Fastrack, in its journey to being a fashion accessories brand has expanded it’s

portfolio to now include not just watches and sunglasses but bags, belts, wallets and

wristbands too. With this, it now has enough categories to open a fashion accessories store –

and that’s just what they’ve done!

1.3 STP ANALYSIS

1.3.1 Segmenting:

Wrist watch can be majorly segmented on the basis demographic factors and price. On the

basis price the market can be segmented into low priced, medium priced and high priced. The

low priced watches are priced less than Rs.1000, medium priced watches are priced from

Rs1000 to Rs.3000 and highly priced are priced above Rs.3000. Fastrack has unveiled

products in all the segments. The range of Fastrack watches is from Rs. 500 to Rs.4000.

On demographic grounds, the market could be segmented on the basis of age. The watches

could be targeted at kids, youth and middle aged people. Fastrack watches were launched to

cater to the needs of youth at first however it introduced watches for kids also later on.

1.3.2 Targeting:

Feb-July 2011 47



Fastrack has products caters to the products in all the segments. The range of Fastrack

watches is from Rs. 500 to Rs.4000. Hence it is catering to all the three segments of low,

medium and highly priced segments. However more emphasis is laid on medium and high priced segments.

Collection Price range

Sport 2000-4000

Army 2000-3500

Adventure 1000-2000

Basics 500-1500

Grunge 1000-2500

Aluminium 500-1000

Colour Play 1000-2000

Digital Fashion 500-2000

Essentials 1000-2500

Party 1500-3000

Pairs 3000-3500

Neon - Disc 1000-2500

Neon 500-1500

XY 1500-3000

On demographic grounds, Fastrack watches were launched to cater to the needs of youth atfirst however it introduced watches for kids also later on. Hence it is targeting both youth and

kids segments.

Feb-July 2011 48

http://fastrack.in/Products/FastrackProducts.aspx?key=17






























Collection Target

Sport Men only

Army Both men and women

Adventure Both men and women

Basics Both men and women

Grunge both men and women

Aluminium Women only

Colour Play Women only

Digital Fashion Both men and women

Essentials Both men and women

Party Both

Pairs Pair

Neon - Disc Men only

Neon Men only

XY Both

1.3.3 Positioning:

Fastrack positions itself as both trendy and affordable range. These two attributes were

usually considered as two poles wide apart. Fastrack has taken the challenge of combining

both the features to offer a greater value proportion to its customers.

Feb-July 2011 49































1.4 MARKETING MIX OF FASTRACK

1.4.1 Product and Price:

There are a variety of collections of Fastrack watches specifically targeted to men and

women. Each product is includes a different set of features to meet the need of specific

customers.

COLLECTION PRICE RANGE TARGET

Sport 2000-4000 Men onlyArmy 2000-3500 Both men and women

Adventure 1000-2000 Both men and women

Basics 500-1500 Both men and women

Grunge 1000-2500 Both men and women

Aluminium 500-1000 girls only

Colour Play 1000-2000 girls only

Digital Fashion 500-2000 Both men and women

Essentials 1000-2500 Both men and women

Party 1500-3000 Both men and women

Pairs 3000-3500 Pair

Neon - Disc 1000-2500 Men only

Neon 500-1500 Men only

XY 1500-3000 Both men and women

1.4.2 Promotion:

• Advertising: advertising is in the form of television commercials. The company uses

youth icons to portray the trendy and funky look of the brand and to associate with it.

Feb-July 2011 50































• Public displays also play an important role in promotion. The colourful and lively bill

boards play an important role in promotion.

1.4.3 Place:

• Channels: The product is sold at almost all the leading watch stores and

shopping malls. The company has also established branded stores and it is also

available in Titan stores.

• Coverage: the products are available all over India.

Feb-July 2011 51



CHAPTER 2

INTRODUCTION TO THE STUDY

Feb-July 2011 52



2.1 TITLE OF THE STUDY

The research topics selected for the purpose of desertion is entitled as:

“A study of In Store Customer Experience at Fastrack Store”

2.2 OBJECTIVE OF THE STUDY

To understand how the youth react to the brand and what their preferences are.

To understand the buying motives of youth.

To understand the awareness level of the Jayanagar store.

Understand the reason for very few walk ins.

2.3 SCOPE OF THE STUDY

The study showed the need for improvement in the awareness of the store. And

most of the customers are looking for some extra benefits. First time buyers are looking for

discounts and offers.

The following areas of research have been covered in this study

To help the management to understand the customers preferences. Gain information on the consumers desires and wants.

Understanding the in store customer experience.

To determine awareness level with respect to the Jayanagar store

Feb-July 2011 53



2.4 METHODLOGY

2.4.1 SAMPLING PLAN

2.4.1.1 Sample size:

The sample size chosen for this study is 50 respondents in store, to know the customer

experience and 50 young respondents between the age group of 20 to 30 to know the

awareness level of Fastrack brand and Jayanagar Fastrack exclusive store. The respondents

filled the questionnaire by themselves and were assisted and explained for their

understanding.

2.4.1.2 Sources of Data Collection:

Primary data collection:

Primary data was collected through survey method choosing the respondents at

convenience. A questionnaire was used to collect data, as the population covered was

large in number. It consisted of multiple choice questions.

2.4.2 PLANS OF ANALYSIS

Systematic objective quantitative analysis of the contents through the questionnaire was

done. Detailed tables were developed showing the data collected from the respondents. From

the tables the percentages were calculated on the basis of which the data was analysed.

The various research measuring tools used are:

a) Questionnaire

b) Personal Interview

c) Tables

Feb-July 2011 54



d) Percentages

e) Pie-charts

f) Bar-chart2.5 LIMITATION OF THE STUDY

• The study was confined only to Bangalore (Jayanagar) and the data collected may or

may not be relevant to other cities.

• The study was carried out over a period of six weeks and any information beyond this

date is not applicable or covered.

• Time constraint was also a limitation.

• There might have been tendencies among the respondents to filter their responses

under the given conditions.

• The customer’s opinion might have been biased and may not represent whole

population.

Feb-July 2011 55



CHAPTER 3

ANALYSIS AND EVALUATION OF THE

DATA

Feb-July 2011 56



3.1 INTRODUCTION TO THE STUDY:

In the questionnaire part one the research is carried out to understand the

awareness of the Fastrack brand and the Jayanagar Fastrack exclusive store .The

questionnaires handed over to respondents is presented, which is followed by graphical

representation of the questionnaires and then the Interpretation and Findings.

In the questionnaire part two of the research the in store customer experience is

examined at Jayanagar Fastrack store, the questionnaires handed over to respondents is

presented, which is followed by graphical representation of the questionnaires and then the

Interpretation and Findings.

Interpretations given are the results interpreted from the graphs and Findings are

the result of interview with the respondents while handing over questionnaires.

Feb-July 2011 57



Questionnaire Part One:

1. What is your preferred shopping destination?

Table 1:

Responses Percentage

Shopping Malls 29 58%

Exclusive outlet 9 18%

Retail outlet 10 20%

Local market 2 4%

online 0 0%

50

Graph 1:

Interpretation:

Out of the 50 respondents, 29(58%) respondents preferred visiting shopping malls for

shopping. 9(18%) respondents preferred visiting Exclusive outlets for shopping. 10(20%)

respondents preferred visiting Retail outlets for shopping. 2(4%) respondents preferred

visiting local market for shopping. No one preferred shopping online.

Findings:

Majority of the respondents preferred shopping malls for shopping, as shopping malls

provided them various brands and products at a single destination. Some of the respondents prefer shopping in exclusive outlet, retail outlet and local market.

Feb-July 2011 58



2. How often do you purchase watches?

Table 2:


Once a year 19 38%

Once in 3 years 12 24%

More than 3 years 7 14%

On impulse 6 12%

During sales and

discounts only

5 10%

Any other 1 2%

50

Graph 2:

Interpretation:

Out of the 50 respondents, 21(42%) respondents purchase watches once a year. 12(24%)

respondents purchase watches once in 3 years. 7(14%) respondents purchase watches more

than 3 years. 6 (12%) respondents purchase watches on impulse. 5(10%) respondents

purchase watches during sales and discounts only. 1(2%) respondents purchase watches insome occasions.

Findings:

Majority of the respondent prefer to buy a watch once in a year and the next most respondent

responded to buy watch once in a 3 year and few responded they buy watch in more 3 year or

on impulse or only during sales and discounts.

Feb-July 2011 59



3. Which is your preferred brand?

Table 3:


Fastrack 31 62%

Timex 9 18%

Esprit 5 10%

Swatch 3 6%

Other 2 4%

50

Graph 3:

Interpretation:

Out of 50 respondents, 32(64%) respondents preferred brand was Fastrack. 9(18%)

respondents preferred brand was Timex. 5(10%) respondents preferred brand was Esprit.

3(6%) respondents preferred brand was Swatch. 2(4%) respondents preferred brand was Titan

and Casio.

Findings:

Majority of the respondents preferred brand was Fastrack. Next to Fastrack respondents

preferred Timex and very few respondent preferred Esprit, Swatch and others.

Feb-July 2011 60



4. What is the first word that comes to mind when you think about FASTRACK?

Table 4:


Value for money 10 20%

Quality 9 18%Style 18 36%

Brand 10 20%

Durability 2 4%

Praise from friends 1 2%

Other 0 0%

50

Graph 4:

Interpretation:

Out of 50 respondents, 10(20%) respondents perceive Fastrack provides value for money.

9(18%) respondent perceive Fastrack provides Quality product. 18(36%) respondents

Feb-July 2011 61



perceive Fastrack provides style. 10(20%) respondents perceive Fastrack provides brand.

2(4%) respondents perceive Fastrack provides durability. 1(2%) respondents perceive

Fastrack provides praise from their friends.

Findings:

Majority of the respondent perceives Fastrack as stylish products. Some of the respondents

perceive Fastrack provides value for money, quality product and a Brand Image. Very few

think it provides durable products.

5. Which Fastrack ads do you recall?

Table 5:


Genelia Airport 13 26%

Genelia and virat hickey 9 18%

Genelia and virat ATM 5 10%

Hip hop 10 20%

Can’t say 12 24%

Other 1 2%

50

Graph 5:

Interpretation:

Out of 50 respondents, 13(26%) respondents can recall the ad of Genelia Airport. 9(18%)

respondents can recall the ad of Genelia and Virat hickey. 5(10%) respondents can recall the

ad of Genelia and Virat ATM. 10(20%) respondents can recall the ad of Hip Hop. 12(24%)

respondents were not able to recall any ad of Fastrack. 1(2%) respondent can recall the ad of

John Abraham eye gear.

Feb-July 2011 62



Findings:

Majority of the respondents were able to recall the ad of Genelia Airport. Quarter percentage

of respondents was unable to recall any ad of Fastrack and some of the respondents were able

to recall the ad of Genelia and Virat hickey, Genelia and Virat ATM and Hip Hop.

6. Did you like the ad?

Table 6:


Yes 34 89%

No 4 11%

38

Graph 6:

Interpretation:

Out of 38 respondents who were able to recall the Fastrack ad, 34(89%) respondents liked the

ads by Fastrack. 4(11%) respondent did not like the ads by Fastrack.

Findings:

Majority of the respondents who recalled the ads by Fastrack liked the ad and very few

respondents did not like the ads.

7.

a. If yes what you did you like in the ad?

Table 7:

Genelia Airport

Genelia and

virat hickey

Genelia and virat

ATM Hip hop

tag line costumes chemistry between

virat and

dance

Feb-July 2011 63



Genelia

5 people likes Genelia 4 people likes virat trendy brand display

tag line

product style

showcase move on its creative

good concept

2 people likes

Genelia

2 people say style

statement

colour full watches

and dance

suits youth of today good concept good concept

b. If No what you didn’t like in the ad?

Table 8:

Genelia Airport Genelia and virat hickey Genelia and virat ATM Hip hop

---------------- not attractive was boring no good models

8. Have you visited Fastrack exclusive showroom?

Table 9:


Yes 32 64%

No 18 36%

50

Graph 7:

Interpretation:

Out of 50 respondents, 32(64%) respondents have visited Fastrack exclusive showroom.

18(36%) respondents have never visited Fastrack exclusive showroom.

Feb-July 2011 64



Findings:

Majority of the respondents have visited the Fastrack exclusive showroom. And some of the

respondents have never visited the Fastrack exclusive showroom.

9. Do you know Fastrack have its exclusive showroom?

Table 10:


Yes 41 82%

No 9 18%

50

Graph 8:

Interpretation:

Out of 50 respondents, 41(82%) respondents know that Fastrack has its exclusive showroom.

9(18%) respondents do not know that Fastrack has its exclusive showroom.

Findings:

Majority of the respondent are aware about the existence of Fastrack exclusive showroom.

Very few are not aware of Fastrack exclusive showroom. And 22% of the respondents know

that Fastrack has exclusive showroom but they have never visited the showroom due busy

schedule, location, discount, offers etc.

10. Do you know Fastrack have its exclusive showroom in Jayanagar?

Feb-July 2011 65



Table 11


Yes 29 58%

No 21 42%

50

Graph 9:

Interpretation:

Out of 50 respondents, 29(58%) respondents know that Fastrack has its exclusive showroom

in Jayanagar. 21(42%) respondents do not know that Fastrack has its exclusive showroom in

Jayanagar.

Findings:

Majority of respondents are aware of Fastrack exclusive showroom in Jayanagar. 42% of

respondents are not aware of Fastrack exclusive showroom in Jayanagar. 29% of the

respondent who are aware of Fastrack exclusive showroom but they are not aware of Fastrack

exclusive showroom in Jayanagar.

11. Now there is a new store in Jayanagar, would you like to visit?

Table 12:


Yes 14 67%

No 1 5%

Can’t say 6 29%

21

Feb-July 2011 66



Graph 10:

Interpretation:

Out of 21 respondents who have never visited Fastrack exclusive store in Jayanagar, 14(67%)

respondents would like to visit Jayanagar store. 6(28%) respondents they might or might not

visit Jayanagar store. 1(5%) respondent will not visit the Jayanagar store.

Findings:

Majority of the respondents who are not aware of Fastrack exclusive store in Jayanagar arewilling to visit the store and some of the respondents are not sure of visiting the store.

12. What makes you to visit the store?

Table 13:

Suggestions No. of Responses

nearby / short distance 1

Ambience 2

quality product 2

more variety 3

discount and offers 12

more outlets 1

value for money 1

gift for friends 2

when need arise 1

low prices 1

new collection 8

attractive products 1

brand Image 2

Feb-July 2011 67



more stylist products 1

watches 1

Graph 11:

Findings:

Majority of the respondents feel discounts and offers are the factors which makes them to

visit Fastrack stores. Some of the respondents feel new collection makes them visit the store.

13. Why you have not visited the store?

Table 14:

Reasons No. of Responses

busy Schedule 5

Can't say 1

not conveniently located 2

No offers 2

Not aware 4

Recently came to know 1

Prefer other brand 1

not got any occasion to buy 1

waiting for new arrival to

come

1

Graph 12:

Findings:

Feb-July 2011 68



Majority of the respondents responded, due to their busy schedule and being not aware about

the store is the reason why they have not visited the store. And some of the respondents

responded that the store has no offers and is not conveniently located.

14. Do discounts/free gifts and so on, affect your purchase decision?

Table 15:


Yes 39 78%

No 11 22%

50

Graph 13:

Interpretation:

Out of 50 respondents, 39(78%) respondents said that their purchase decision is affected by

the discounts, free gifts etc. 11(22%) respondents said that their purchase decision is not

affected by the discounts, free gifts etc.

Findings:

Majority of the respondents agreed that their purchase decision is affected by the discounts,

free gifts etc. and very few respondents said their purchase decision is not influenced by

discounts, free gifts etc.

Questionnaire part two:

1. Please rate the Fastrack store on the following attributes, on a scale of 1 to 7

(7=very good, 1= very poor)

Stock Availability:

Table 16:

Feb-July 2011 69




Very Poor 0 0%

Poor 4 8%

Below Average 4 8%

Average 9 18%

Above Average 18 36%

Good 7 14%

Very Good 8 16%

50

Graph 14:

Interpretation:

out of 50 responses, 4(8%) respondents rated it as poor. 4(8%) respondents rated it as below

average. 9(18%) respondents rated it as average. 18(36%) respondents rated it as above

average. 7(14%) respondents rated it as good. And 8(16%) respondents rated it as very good.

Findings:

Majority of the respondents rated the stock availability as above average. Some of the

respondents rated as average, good and very good.

Ambience:

Table 17:


Feb-July 2011 70



Very Poor 0 0%

Poor 2 4%

Below Average 0 0%

Average 5 10%


Good 17 34%

Very Good 14 28%

50

Graph 15:

Interpretation:

Out of 50 responses, 2(4%) respondents rated it as poor. 5(10%) respondents rated it asaverage. 12(24%) respondents rated it as above average. 17(34%) respondents rated it as

good. And 14(28%) respondents rated it as very good.

Findings:

Majority of the respondents rated ambience as good and some of the respondents felt store

has very good ambience.

Staff behaviour:

Feb-July 2011 71



Table 18:


Very Poor 1 2%

Poor 2 4%

Below Average 0 0%

Average 5 10%


Good 14 28%

Very Good 12 24%

50

Graph 16:

Interpretation:

out of 50 respondents, 1(2%) rated it as very poor. 2(4%) respondents rated it as poor.

5(10%) respondents rated it as average. 16(32%) respondents rated it as above average.

14(28%) respondents rated it as good. 12(24%) respondents rated it as very good.

Findings:

Majority of the respondents rated staff behaviour as above average and some respondents

rated it as good and very good.

Product Quality:

Table 19:


Very Poor 0 0%

Poor 2 4%

Below Average 3 6%

Average 5 10%

Feb-July 2011 72



Above Average 9 18%

Good 20 40%

Very Good 11 22%

50

Graph 17:

Interpretation:

Out of 50 respondents, 2(4%) respondents rated it as poor. 3(6%) respondents rated it as

below average. 5(10%) respondents rated it as average. 9(18%) respondents rated it as above

average. 20(40%) respondents rated it as good. 11(22%) respondents rated it as very good.

Findings:

Majority of the respondents rated product quality as good and some of the respondent rated it

as very good and average.

Offers:

Table 20:


Very Poor 4 8%

Poor 5 10%

Below Average 8 16%

Average 10 20%


Good 5 10%

Very Good 6 12%

50

Graph 18:

Feb-July 2011 73



Interpretation:

Out of 50 respondents, 4(8%) respondents rated it as very poor. 5(10%) respondents rated it

as poor. 8(16%) respondents rated it as below average. 10(20%) respondents rated it as

average. 12(24%) respondents rated it as above average. 5(10%) respondents rated it as good.

6(12%) respondents rated it as very good.

Findings:

Majority of the respondents rated offers provided by the Fastrack as above average and some

of the respondents rated it as average and good.

Price:

Table 21:


Very Poor 0 0%

Poor 4 8%Below Average 8 16%

Average 14 28%

Above Average 9 18%

Good 8 16%

Very Good 7 14%

50

Graph 19:

Interpretation:

Out of 50 respondents, 4(8%) respondents rated it as poor. 8(16%) respondents rated it as

below average. 14(28%) respondents rated it as average. 9(18%) respondents rated it as

above average. 8(16%) respondents rated it as good. 7(14%) respondents rated it as very

good.

Feb-July 2011 74



Findings:

Majority of the respondents rated the pricing of Fastrack as average and most of the

respondents rated it as a fair pricing.

2. Store is conveniently located

Table 22:


Very strongly agree 10 20%

Strongly agree 21 42%

Agree 13 26%

Disagree 2 4%

Strongly disagree 4 8%

Very strongly disagree 0 0%

50

Graph 20:

Interpretation:

Out of 50 responses, 10(20%) of the respondents very strongly agree that store is

conveniently located. 21(42%) of the respondents strongly agree that store is conveniently

located. 13(26%) of the respondents agree that store is conveniently located. 2(4%) of therespondents disagree that store is conveniently located. 4(8%) of the respondents strongly

disagree that store is conveniently located.

Findings:

Majority of the respondents were not only from Jayanagar but visited from the surrounding

regions of Jayanagar and they strongly agree that store is conveniently located from their

residence.

3. After purchase service (warranty, repair, customer service etc) Feb-July 2011 75



Table 23:


Very unsatisfied 6 12%

Satisfied 34 68%

Somewhat satisfied 4 8%

Very satisfied 5 10%

Extremely satisfied 1 2%

50

Graph 21:

Interpretation:

Out of 50 responses, 6(12%) respondents are very unsatisfied with the after purchase service.

34(68%) respondents are satisfied with the after purchase service. 4(8%) respondents are

somewhat satisfied with the after purchase service. 5(10%) respondents are very satisfied

with the after purchase service. 1(2%) respondent is extremely satisfied with the after

purchase service.

Findings:

Majority of the respondents are satisfied with the after purchase services like warranty,

repair, customer service etc. Very few of respondents are very satisfied and very unsatisfied.

4. Overall, how satisfied are you with STORE

Table 24:


Very unsatisfied 5 10%

Satisfied 23 46%

Somewhat satisfied 8 16%

Very satisfied 11 22%

Extremely satisfied 3 6%

Feb-July 2011 76



50

Graph 22:

Interpretation:

Out of 50 respondents, 5(10%) respondents are very unsatisfied with store. 23(46%)

respondents are satisfied with store. 8(16%) respondents are very somewhat satisfied with

store. 11(22%) respondents are very satisfied with store. 3(6%) respondents are very

unsatisfied with store.

Findings:

Majority of the respondents are satisfied with the store. Some of the respondents are very

much satisfied with the store. And very few respondents are not satisfied with the store.

5. How likely are you to visit STORE again?

Table 25:


Definitely 23 46%

Probably 21 42%

Might or might not 4 8%

Probably not 1 2%

Definitely not 1 2%

50

Graph 23:

Interpretation:

Feb-July 2011 77



Out of 50 responses, 23(46%) of the respondents are definitely willing to visit the store again.

21(42%) of the respondents are probably visiting the store. 4(8%) of the respondents might or

might not visit the store again. 1(2%) of the respondent probably will not visit the store again.1(2%) of the respondent will definitely not visit the store again.

Findings:

Majority of the respondents would like to visit the store again. Very few respondents are not

sure or not willing to visit the store again.

6. Would you recommend this STORE to others?

Table 26:


Definitely 37 74%

Probably 10 20%

Might or might not 2 4%

Probably not 1 2%

Definitely not 0 0%

50

Graph 24:

Interpretation:

Out of 50 responses, 37(74%) of the respondents are definitely willing to recommend the

store to others. 10(20%) of the respondents are probably recommend the store to others.

2(4%) of the respondents might or might not recommend the store to others. 1(2%) of the

respondent probably will not recommend the store to others. 0(0%) of the respondent will

definitely not recommend the store.

Findings:

Feb-July 2011 78



Majority of the respondents will recommend the store to others as many of the customers are

satisfied with store an all attributes. Very few respondents are not sure or not willing to

recommend the store to others.

CHAPTER 5

RECOMMEMDATIONS &

CONCLUSION

Feb-July 2011 79



5.1 CONCLUSION AND RECOMMENDATION

Based on the above study we would like to recommend Fastrack to target the market

with new variants of watches on regular basis. Fastrack has to increase its exclusive stores

from its current 6 stores. As most of the people like to visit store in their region due to time

constrains. In addition to these Fastrack should open its exclusive stores in shopping malls as

58% of the respondents prefer shopping mall as shopping destination. Fastrack should use

television, print media and start some brand magazine for their advertisements and to keep

their existing customers update of any new variants of watches as around 66% of people

would like to change their watches in less than 3years. Most important point is around 74%

of people would like to recommend others to visit Fastrack exclusive store in Jayanagar and

around 64% of people prefer Fastrack has their preferred brand. The above type of

advertisements can help Fastrack to improve the loyalty customer base. As the positioning of

Fastrack targeted trendy, affordable ranges in youth segment and it is been accepted by most

of the people but they would like to have more and more variants and features in this segment

Following recommendations are the key features to be added and improvements for Fastrack

New trends year on year

More exclusive stores

Promotions in televisions and print media

Providing special offers for the loyal customers

Feb-July 2011 80



Associations with various youth activities (fests, events, etc...)

Providing special offers during Festivals.

Theme based marketing at different occasions.

BIBLIOGRAPHY

Feb-July 2011 81



BIBLIOGRAPHY

BOOKS REFERRED:

1. Marketing Management........................................... Philip Kotler

2. Research Methodology............................................. C.R. Kothari

3. Marketing research – techniques and cases…………Dr. R. Nargundkar

Websites:

1. http://www.titan.co.in

2. http://www.titanworld.com

3. http://www.fastrack.in

4. http://www.moneycontrol.com

5. http://www.sulekha.com

Feb-July 2011 82

http://www.titan.co.in/

http://www.titanworld.com/

http://www.fastrack.in/

http://www.moneycontrol.com/

http://www.sulekha.com/

http://www.titan.co.in/

http://www.titanworld.com/

http://www.fastrack.in/

http://www.moneycontrol.com/

http://www.sulekha.com/



Feb-July 2011 83



ANNEXURES

QUESTIONNAIRES:

PART ONE:

Dear Sir / Madam,

I am a student of PESIT pursuing MBA. I am doing a brief survey to find out more about

consumer preference regarding Fastrack. We would be grateful if you could spare few

minutes to participate in it. Thank you for your cooperation.

NAME:

ADDRESS:

OCCUPATION:

1. AGE:

2. SEX:

Male

Female

Feb-July 2011 84



3. INCOME GROUP:

Less than Rs. 2 lakh

Rs.2 lakh to Rs. 3 lakh

Rs. 3 lakh to Rs. 5 lakh

More than Rs.5 lakh

4. What is your preferred shopping destination?

Shopping Malls

Exclusive outlet

Retail outletLocal market

online

5. How often do you purchase watches?

Once a year

Once in 3 yearsMore than 3 years

On impulse

During sales and discounts only

Any other

6. Which is your preferred brand?

Fastrack

Timex

Esprit

Swatch

Other (Please specify)………………………

7. What is the first word that comes to mind when you think about FASTRACK?

Value for money

Quality

Style

Feb-July 2011 85



Brand

Durability

Praise from friendsOther (please specify)……………………..

8. Which Fastrack ads do you recall?

Genelia Airport

Genelia and virat hickey

Genelia and virat ATM

Hip hop

Can’t say

Other (Please specify)…………………………

9. Did you like the ad?

Yes

No

10. If Yes what did you like in the ad?

If No what you didn’t like in the ad?

______________________________________________________

11. Have you visited Fastrack exclusive showroom?

Yes

No

12. Do you know Fastrack have its exclusive showroom?

Yes

No

13. Do you know Fastrack have its exclusive showroom in Jayanagar?

Yes

No

Feb-July 2011 86



14. Now there is a new store in Jayanagar, would you like to visit?

Yes

No

Can’t say

15. What makes you to visit the store?

________________________________________________________

16. Why you have not visited the store?

_______________________________________________________

17. Do discounts/free gifts and so on, affect your purchase decision?

Yes

No

Thank you for your time and valuable input.

PART TWO:

Dear Sir / Madam,

I am a student of PESIT pursuing MBA. I am doing a brief survey to find consumer

satisfaction regarding Fastrack. We would be grateful if you could spare few minutes to

participate in it. Thank you for your cooperation.

NAME:

ADDRESS:

OCCUPATION:

1. AGE:

Feb-July 2011 87



2. SEX:

Male

Female

3. INCOME GROUP:

Less than Rs. 2 lakh

Rs.2 lakh to Rs. 3 lakh

Rs. 3 lakh to Rs. 5 lakh

More than Rs.5 lakh

4. Please rate the Fastrack store on the following attributes, on a scale of 1 to 7

(7=very good, 1= very poor)

1 2 3 4 5 6 7

Stock Availability |-------------|--------------|-------------|-------------|--------------|-------------|

Ambience |-------------|--------------|-------------|-------------|--------------|-------------|

Staff behaviour |-------------|--------------|-------------|-------------|--------------|-------------|

Product Quality |-------------|--------------|-------------|-------------|--------------|-------------|

Offers |-------------|--------------|-------------|-------------|--------------|-------------|

Price |-------------|--------------|-------------|-------------|--------------|-------------|

5. Store is conveniently located

Very strongly agree

Strongly agree

Agree

Disagree

Strongly disagree

Very strongly disagree

Feb-July 2011 88



6. After purchase service (warranty, repair, customer service etc)

Very unsatisfied

Satisfied

Somewhat satisfied

Very satisfied

Extremely satisfied

7. Overall, how satisfied are you with STORE

Very unsatisfied

Satisfied

Somewhat satisfied

Very satisfied

Extremely satisfied

8. How likely are you to visit STORE again?

Definitely

Probably

Might or might not

Probably not

Definitely not

9. Would you recommend this STORE to others?

Feb-July 2011 89



Definitely

Probably

Might or might notProbably not

Definitely not

Thank you for your time and valuable input.

BALANCE SHEET Rs. In Crores

Mar '06 Mar '07 Mar '08 Mar '09 Mar '10

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds

Total Share Capital 82.28 44.39 44.39 44.39 44.39

Equity Share Capital 42.28 44.39 44.39 44.39 44.39

Share Application Money 0 0 0 0 0

Preference Share Capital 40 0 0 0 0

Reserves 150.3 283.06 391.78 506.85 679.99

Revaluation Reserves 0 0 0 0 0

Networth 232.58 327.45 436.17 551.24 724.38Secured Loans 148.84 172.67 188.11 116.76 72.79

Unsecured Loans 119.09 74.34 69.78 58.65 0

Total Debt 267.93 247.01 257.89 175.41 72.79

Total Liabilities 500.51 574.46 694.06 726.65 797.17



Application Of FundsGross Block 420.42 515.48 558.07 593.04 624.33

Feb-July 2011 90



Less: Accum. Depreciation 243.97 264.34 285.61 318.56 361.7

Net Block 176.45 251.14 272.46 274.48 262.63

Capital Work in Progress 19.56 15.97 9.99 19.52 12.29

Investments 27.02 27.02 47.39 7.66 7.63

Inventories 374.39 677.48 1,021.09 1,202.69 1,340.33

Sundry Debtors 90.12 92.06 96.45 106.22 93.61

Cash and Bank Balance 38.29 50.73 51.91 54.69 61.72

Total Current Assets 502.8 820.27 1,169.45 1,363.60 1,495.66

Loans and Advances 150.96 179.06 111.34 128.82 200.99

Fixed Deposits 0 0 0 0 125Total CA, Loans &Advances 653.76 999.33 1,280.79 1,492.42 1,821.65

Deffered Credit 0 0 0 0 0

Current Liabilities 363.89 571.26 842.68 974 1,172.28

Provisions 26.72 151.96 73.9 93.44 134.74

Total CL & Provisions 390.61 723.22 916.58 1,067.44 1,307.02

Net Current Assets 263.15 276.11 364.21 424.98 514.63

Miscellaneous Expenses 14.31 4.21 0 0 0

Total Assets 500.49 574.45 694.05 726.64 797.18

Contingent Liabilities 64.22 76.01 58.41 65.46 72.19

Book Value (Rs) 45.55 73.77 98.26 124.18 163.19

PROFIT AND LOSS ACCOUNT: Rs. In Crores


Sales Turnover 1,509.92 2,181.69 3,098.20 3,926.09 4,703.12

Excise Duty 41.19 46.22 47.35 44.34 28.7

Net Sales 1,468.73 2,135.47 3,050.85 3,881.75 4,674.42

Other Income -9.74 4.71 -4.39 -5.91 8.62

Stock Adjustments 72.58 246.22 297.89 178.67 111.66

Total Income 1,531.57 2,386.40 3,344.35 4,054.51 4,794.70

Expenditure

Raw Materials 981.62 1,620.65 2,431.79 2,940.86 3,561.05

Power & Fuel Cost 10.02 11.55 13.9 16.11 17.47

Employee Cost 109.41 157.4 189.66 234.2 275.64

Other ManufacturingExpenses 3.46 5.6 5.96 8.99 6.11

Selling and Admin Expenses 248.68 331.79 358.05 427.47 458.69

Miscellaneous Expenses 41.01 69.63 84.12 86.2 30.86

Preoperative ExpCapitalised -0.89 -0.52 -0.02 -0.09 -0.04

Total Expenses 1,393.31 2,196.10 3,083.46 3,713.74 4,349.78



Operating Profit 148 185.59 265.28 346.68 436.3

Feb-July 2011 91



PBDIT 138.26 190.3 260.89 340.77 444.92

Interest 31.71 33.07 39.44 68.46 63.52

PBDT 106.55 157.23 221.45 272.31 381.4

Depreciation 19.66 25.59 29.73 41.76 60.08

Other Written Off 0 0 0 0 0

Profit Before Tax 86.89 131.64 191.72 230.55 321.32

Extra-ordinary items -0.93 -0.2 2.57 -10.92 -2.92

PBT (Post Extra-ord Items) 85.96 131.44 194.29 219.63 318.4

Tax 12.34 37.32 44.02 60.68 68.08

Reported Net Profit 73.62 94.33 150.27 158.96 250.32

Total Value Addition 411.69 575.44 651.68 772.88 788.73

Preference Dividend 2.72 0.39 0 0 0

Equity Dividend 13.32 22.19 35.51 44.39 66.58

Corporate Dividend Tax 2.25 3.83 6.04 7.54 11.06

Per share data(annualised)

Shares in issue (lakhs) 422.76 443.89 443.89 443.89 443.89

Earning Per Share (Rs) 16.77 21.16 33.85 35.81 56.39

Equity Dividend (%) 30 50 80 100 150

Book Value (Rs) 45.55 73.77 98.26 124.18 163.19

prabhu hiremath(1pi09mba61)

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