Value Chain Analysis for Titan Fastracks differentiation strategy

Submitted to: Dr. A. Shivakanth Shetty

Submitted by:
Anupam Samui Sec- B 10PGDM064 IFIM B-School

 Value Chain Model:

Differentiation strategy of Titan Fastrack:

Providing high quality watches, sunglasses & handbags of fashionable designs mainly for the youths.

Value Chain Analysis:

Primary Activities:
i. Inbound Logistics: Timely ordering and delivery of raw materials. Procurement of high quality raw materials to maintain the quality. Close relationship with suppliers.

ii. Operations: Proper demand forecasting for the products Manufacturing products of new designs maintaining the quality level. Quality and defect checking of the products before final packaging.

Final packaging of the product with utmost care.

iii. Outbound Logistics: Proper tracking of orders from different regions. Bulk breaking of finished goods according to the regional orders. Maintaining as less inventory as possible. Rapid delivery to the dealers and retailers to avoid out of stock situation.

iv. Marketing & Sales: Targeting youths for the products and understanding their changing needs for stylish wearing. Selecting the proper locations to sell the products where awareness and demand for the brand is high among the youths. Creating attractive advertisements communicating differentiated features to pull the youths towards the brands. Offering premium price ranging from Rs. 900/- to Rs. 5,000/- (approximately).

v. Service: Repair or replacement facility in the retail stores. Satisfactory service warranty period offering. Maintaining store ambiance according to the brand superiority. Skilled salesperson to communicate properly with the customers. Special training to the franchisees to maintain the brand value.

Supportive Activity:
i. Firm Infrastructure: Infrastructure to produce high quality products continuously. Technologically developed infrastructure to develop new trends of designs, tracking online orders, tracking delivery reports etc. Infrastructure that provide the employees an environment which stimulates their creativity and enthusiasm.

Infrastructure of showrooms should encourage customers to buy the products

ii. Human Resource Management: Recruiting technically skilled people for quality products and creative people for superior designs. Motivational compensations to the employees to increase productivity and creativity Special trainings for sales persons in showrooms and other retail stores. Specially trained persons in the showrooms and retail stores for instant repairing. Young sales people to attract the youths more.

iii. Technological Development: Implementation of latest graphics technology for designing the product more fashionably. Upgrading technology to stimulate research & development process.

iv. Procurement: Proper quality check of the received raw materials.

Titan Fastracks differentiation strategy to counter the Porters five forces: Threat of new entrants:
It will be very difficult for a new entrant to create a consumer base after the big success of Fastrack. Extending product line like Fastrack (Watch, Sunglass & bag) will also not be easy for a new entrant.

 Bargaining power of buyers: As Fastrack is the only product to introduce watches with stylish designs and as there are very few brands presently that provide such watches, buyers will have very less power for bargaining.

Bargaining power of the suppliers: Fastrack is a potential customer for its suppliers and there is very few players in this industry. Hence, suppliers are loyal to the company and they are having less bargaining power as many suppliers are available in the market.

Threat of substitute:
Substitute for Fastrack can be the new mobile phones for the youths. But Fastrack has been able to create some emotional attachment with its users and they use it not as a watch that shows time but as a fashion wear that make them look more stylish.

Threat of competitors:
Though new brands like TIMEX have also entered in the same segment but they are not being able to be as much popular as Fastrack. As a first mover in this segment there is always many advantages for Fastrack and their brand extension helped them a lot get the maximum market share.