STRATEGIC MANAGEMENT

SWOT ANALYSIS AND BCG MATRIX

Submitted To, Dr. GHS Prasad Associate Professor, FMS Department, NIFT, Hyderbad.

SUBMITTED ON: 31st AUGUST 2012

Submitted By, Deepika Sarode, 2nd Year 1st Semester, FMS Department, NIFT, Hyderabad.

TITAN OF INDIA HISTORY Titan watch division was started in 1987. It is a joint venture between one of India's most respected business organizations, the Tata Group, and the Tamil Nadu Industrial Development Corporation (TIDCO). It is the worlds fifth largest and Indias leading manufacturer of watches. At launch it was the third watch company in India after HMT and Allwyn. Titan formed a joint venture with Timex, which lasted until 1998, and setup a strong distribution network across India. Vision: Vision: To be a world-class, innovative and progressive organization and to build Indias most desirable brands. Mission: 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. Values and Standards: Values and Standards Total customer orientation Employee appreciation Performance culture and teamwork Creativity and Innovation Passion for excellence Corporate Citizenship TITANS Businesses: TITANS Businesses Watches, Jewellery, Precision Engineering Currently Marketing Products in 26 countries with a larger footprint in the Middle East and Asia-Pacific regions Prescription Eyewear Innovation: Innovation Creation of Edge Slimmest commercially available watch in the

universe.(thickness: 3.5 mm) Four years of intensive R&D. Produced indigenously. Received Best Design Award in Lifestyle Product Category Organized by Business World.

Retail Stores: Retail Stores ALL INDIA 10000 Dealers 2300 Towns World Of Titan 177 Showrooms 104 Towns Time Zones 119 Multi-brand-stores 90 Towns Service Centers 616 Centers 314 Towns Cutting Edge Technology: Cutting Edge Technology The Design Studio: Excellent Watch and Jewellery design. Has international award winning designs to its credit. Sophisticated Design & Development Centre Advanced Pro-E workstations and prototyping facility. Every Ford Mondeo car rolling out of the plant in Genk, Belgium has a Titan Clock. INTERNATIONAL BUSINESS: INTERNATIONAL BUSINESS One of Indias first companies to market a consumer brand overseas. Now present in 26 countries outside India Among the top 3 brands in some Asian countries Selling 650k watches annually with increasing presence in jewellery. Total export sales of over Rs 100 crores in 2006-07 Ranked No.3 amongst the top Life style Brands in the watches category by Business Today ( Oman) for the third year in a row Product: Product Product type convenience specialty Segmentation of TITAN Watch Market segmentation Based on user category Competitive prices Product life cycle: Product life cycle Sales Time Introduction: WWF, Orion, Zoop, Diva, Octane Growth: Nebula, Insignia, Raga, Royal, Regalia, Edge etc Maturity: Sonata, Fastrack, Dash Decline: Aqura

Titan collections and customer and price based segmentation:

that are young and distinctive. Price: Rs.550-1,430.

dateless styling and design simplicity. Price: Rs.595-1,140

combines the sturdiness of steel with the richness of gold. Price: Rs.650-1830 plated cases matched with exquisite gold-plated straps. Price: Rs.960-2,830. imed at Upper Class. Exclusive watches for women. It is elegant, delicate and feminine with each piece being truly. Unique. Price: Rs.1,420-4,000. -8,085. aimed at: Upper Middle Class Upper Class. Magic in gold and unique futuristic material. Price: Rs.1725-7770

Universe. Price: Rs. 4,500-5,200

embellished with precious stones. Price: 10,000-45,000 Titan Industries is the world's fifth largest and India's leading manufacturer of watches. It has several popular brands in its fold including Heritage, Aviator, Regalia, Octane and WWF. The Titan portfolio has over 60% share in the domestic market Share in the organized watch market. To ensure adominant presence in the market the company has showrooms in every nook and corner of the country that caters to the needs of every segment of the people.

SWOT Analysis Titan has a domestic market share of 60 per cent, in the organized watch market. India's leading watch manufacturer and the world's fifth largest. Their global sourcing and economies of scale give a significant price advantage and enable to offer an easy entry for consumers to the branded world at this price point. Strengths: 1. Titan is the leader in the watch market of India 2. The varied offerings to diverse segments with a clear cut positioning. 3. Innovation is core to its strategy. Weakness: 1. Havent penetrated the global market as some other international watch makers 2. Pricing 3. Low market share as compare to the other watch manufacturers. Opportunities: 1. Distributing channels 2. Seasonality 3. Gifting concept 4. Exchanging offer 5. Introducing waterproof watches. 6. Rural market may be tapped. Threats: 1. 2. 3. Competitors: Premium segment: Mobile:

Strengths: 1. Titan is the leader in the watch market of India Tata group being is one of the respected groups in India, Titan has the government support. Being owned by Tata group, it has a good Tata culture. They care for their employees. Titan Industries is the world's fifth largest and India's leading manufacturer of watches. The company has manufactured more than a 100 million watches till date; and has a customer base of over 80 million. Titan invests a good amount of money for their research and new innovation. As such they keep on changing their model as per the taste and preference of customers. The Titan portfolio has over 60% of the domestic market share in the organized watch market. The company has 247 exclusive showrooms christened World of Titan', making it amongst the largest chains in its category backed by 700 after-sales-service centers. The Company has a world-class design studio that constantly invents new trends in wrist watches. Titan decided to inundate consumers with a wide choice in style, functions and price. The initial range was 350 models. Retailer: 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. 2. The varied offerings to diverse segments with a clear cut positioning. After carrying out an in-depth market study, Titan identified three distinct market segments for its watches. These segments are determined based on benefit and income level. High Income Segment: This is for high income/ elite consumers who buy watch as a fashion accessory not as a mere instrument showing time. They are also willing to buy a watch on impulse. The price tag does not matter to them. Titan offered Aurum and Royale in the gold / jewellery watch range. The prices are between Rs. 20,000 and Rs. 1 lakh.

Medium Income Segment: These consumers prefer some fashion in their watches but to them price does matter. While they have the capacity to pay the price required for a good watch, they will not purchase a watch without comparing various offers in the market. For this segment, Titan offered the Exacta range in stainless steel, aimed at withstanding the rigors of daily life. The price range is Rs. 500-700. Titan also offered the RAGA range for women in this segment. Low Income Segment: The third segment consists of the lower-income consumers who see a watch mainly as a time-keeping device and buy mainly on the basis of price. Titan first offered the TIMEX watches and later, when the arrangement with Timex was terminated, it offered the SONATA range. The price range was Rs. 350-500. 3. Innovation is core to its strategy: Innovation Creation of Edge Slimmest commercially available watch in the universe. (thickness: 3.5 mm) Four years of intensive R&D. Produced indigenously. Received Best Design Award in Lifestyle Product Category Organized by Business World. Titan Industries has claimed to have manufactured the world's slimmest wrist watch - Titan Edge. Produced indigenously after four years of research and development, the Titan Edge has a total slimness of just 3.5 mm and a wafer thin movement of 1.15 mm. Cutting Edge Technology The Design Studio: Excellent Watch and Jewellery design. Has international award winning designs to its credit. Sophisticated Design & Development Centre Advanced Pro-E workstations and prototyping facility. Every Ford Mondeo car rolling out of the plant in Genk, Belgium has a Titan Clock. Weakness: 1. Havent penetrated the global market as some other international watch makers Retail Stores: Retail Stores ALL INDIA

10000 - Dealers 2300 - Towns World Of Titan 177 - Showrooms 104 - Towns Time Zones 119 - Multi-brand-stores 90 - Towns Service Centers 616 - Centers 314 - Towns Titan watches are exported in over 40 countries. Tag Heuer, Swatch, Rolex, are present in most of the developed countries.

Globalized: As the company is Indian based which leads it to the strength, where as it is the weakness also because the company not sufficiently globalized 2. Pricing: The average price of Titan in mid-price segment is very high than the other competitor. Average price for Titan is Rs.1100 while the price for HMT is Rs.550. In the mid-price segment the company is not performing up to the mark due to the lack of choice of consumers. Main USP is low cost watch. Low cost watches like sonata, titan raga, and octane are most selling while xylus, nebula are least selling variants as they are premium.

3. Market share As the average price of Titan wristwatch is far more than the other competitor, Titan has less market share. The market is more demonstrate by middle class people and for them Titan is quite costly. Among 75% market share in mid-segment. Titan market share is between 18-20% which is far lower than HMT and Maxima. Opportunities: 1. Distributing channels: Nearly 34 million watches are sold through gray market channels. Currently, sales in India stand at an low number of 25 watches per 1,000 people, compared with 250 watches per 1,000 people in a developed society. Exchanging offer Rural market. 2. Seasonality With a changing consumer attitude, people like to possess multiple watches for different occasions and events. At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there is demand for the products. - Gold watches and pairs are the like as a wedding occasion. The fast track brand is promoted in month of June-August when schools and colleges re-open. 2. Gifting concept Titan started as a brand which was associated with gifting and relation. The fight concept sells well for people have come to associate Titan with love care and makes emotion run high. 3. Exchanging offer The Titan stores offer exchange offer of any old watch, of any make, in any condition functional or otherwise and receive a flat discount of 25% on their purchase of a brand new, stylish and technologically advanced watch from Titan.

D. Threats 1. Competitors: Too many players will dilute the market& the profit margin As we know that lots of Foreign brands are entering in our country with their branded watches. As the removal of quantitative restrictions on import watches leads to threat to titan. Premium international watch brands such as Swatch, Esprit, Tissot, Longines, Citizen, Rado and Omega entered in India. a. Japanese- Citizen, Casio b. Swiss- Rolex, Omega, Rado, Tissot, Tag Heur, etc. c. Chinese watches d. Unorganized sector/ Grey market. 2. Premium segment: As in premium segment Titan is getting threats from reputed international brand such as Espirit, Swatch and Citizen. Stiff Competition faced by foreign brands, particularly in the premium segment 3. Mobile: Mobile phones acting as substitutes of the watches Now a days people can get the time and the other feature in mobile phone. So, the need of wristwatch is in decreasing trend. People can talk and see the time in a cell phone and some people think that there is no need of wristwatch.

Now that the Indian market is widely open to importations, it will be extremely difficult for the Indian players to maintain a sustainable growth.

Competitors: 1. Timex 2. Casio 3. Citizen 4. Swatch 5. Rolex 6. Tag Heuer

BCG MATRIX

BCG matrix helps to understand the watches playing a important role for titan industries. Here we are considering the different watches as in different segment according to its performance as well as the market share. ? (Infinity): As the titan launched the 4 feet tall watch replica created by the acclaimed by the sculptor artist Mr. Arun Verma. The replica was launched on 13th August 2008 in Delhi. The INFINITY this unique 4 feet tall watch weight around 70 kgs with solid circumference of 8 feet and width of 30 inches. This watch contains 800 dials and 1800 straps.

TITAN - WWF: The Titan- WWF collection is inspired from six species namely the Tiger, Indian Rahino Gnagetic river Dolphin , Red Panda ,Whale shark and Oliver Ridley Turtle. Earlier they had launched Heritage collection about a year back based on beautiful monument of India including The Taj-Mahal, Lakshmi Vials Place, Jharokha, Konark, Ajanta. As it is the new collection it requires more investment for Tiatn - WWF as the market growth is also high there. It includes the watches namely REGALIA, EDGE and NEBULA. Cash Cow: It basically includes the watches Fast Track, Exacta, Pectra for the titan. As in this segment these watches are playing important role so it require certain amount of money which will help it out to sustain into the market as well help in liquidity.

REFERENCES www.titanwold.com www.tata.com/titan www.google.com www.indianfoline.com www.thehindu.com www.tatagroup.com www.titan.com www.economictimes.com http://www.scribd.com/doc/19029098/Titan-Brand-Auditdps http://www.mbaskool.com/brandguide/lifestyle-and-retail/2666-titan.html http://www.authorstream.com/Presentation/kaifi-238115-titan-education-ppt-powerpoint/