Titan Plans Brand Valuation, To Launch Accessories

Leading watch maker Titan Industries plans to go in for brand valuation. "We believe we should carry out brand valuation," Bijou Kurien, vice-president (sales & marketing), Titan Industries, said.

Kurien said the valuation will put a premium and will lead to enhanced image of the brand in the market. "Brand valuation will add to our marketing efforts," he added.

According to Raghu B Viswanath, managing director of Vertebrand, a brand valuation firm, the Titan brand is worth over Rs 500 crore. "It is significantly higher now compared with that of two years ago," Viswanath said.

"After hiving off low-priced Sonata under the Tata brand, Titan has become one of the most powerful brands in the country," he added.

 

R Sridhar, industry analyst and chief executive officer of Integrated Brand.com, said: "They should do it now because the Tata brand has become extremely active now. Titan is an extremely strong brand."

Sridhar said, nearly 15 years after its launch, Titan has been able to position itself as a brand for the new generation. "They have been very innovative and are trying to remain young even now," he added.

Viswanath said by retaining Sonata under its fold, Titan's brand valuation had certainly gone down because it was catering to the low-end of the market. He, however, added, "Now, they have consciously gone into high-priced segment as well as cater to the youth."

To cash in on the brand value, Titan is also expected to launch other personal accessories such as fountain pens, sun glasses and leather bags. "We are planning a brand extension exercise also which will be in the mid- and high-end price range," Kurien said.

Kurien said these accessories will be trendy and tailored for the youth. "There is a definite gap for over Rs 500 range of accessories which we want to focus on," he added. He said the company was expected to firm up its plans for the launch of these accessories by the middle of next year.

Interbrand, one of the leading brand valuing agencies, defines brand value as the net present value of the economic profit that the brand is expected to generate in the future.

For the first seven months of the current year, Titan sold 2.8 million watches, which was 10 per cent less than that during the same period last year. During 2000-01, the company sold 6 million watches.