SYMBIOSIS INSTITUTE OF TELECOM MANAGEMENT
MARKETING MANAGEMENT ASSIGNMENT – 1 Indian Wrist Watch Industry Competition Analysis of Market Players Vismay Sood PRN-09020541053 Systems & Finance
Select any industry of your choice. Identify 3/4 leading competitors in this industry. Analyze the strategies followed by the lead players & carry out the competition analysis.
INDIAN WATCH INDUSTRY India is an under penetrated market for watches. Only 27% of Indians own a watch. Total estimated volume as per 2008 is 44 million units and value of Rs 2700 Cr. Vast proportion of Indian market is below Rs 500 by about 68%. The key players in the market are 1. Titan 2. HMT 3. Timex
Market Share of Indian Watch Industry I ndustry 2009
Market has been split into: i. Low end ii. Mass market iii. Premium & Luxury brands.
TITAN
Titan India Ltd., formerly formerly (Titan watches watches limited) limited) is a joint joint venture venture between Tat Tata a grou group p of comp compan anie ies s and and Tami Tamill Nadu Nadu Indu Indust strrial ial Dev Developm lopme ent Corporation (TIDCO) was incorporated in
1987, and within three years of inception became a market leader. It has its Head Quarters at Hosur, India and Titan has presence in 4 continent and 32 countries.
Watches: Popular Priced, Mid Priced and a nd Premium Priced Eye Gear: Sunglasses, Prescription Glasses. Contact Lenses Accessories: Wallets, Purses, Wrist Bands
SWOT ANALYSIS FOR TITAN Strength: 1. Style: Titan first introduced the ‘style’ concept in India and projected the watch as a fashion accessory. Nowadays style is a very much evident factor among the youth. So, Titan makes the peoples life more glorious by making stylish wristwatch. 2. Models: Titan offers the best and the biggest range to customers to choose the watch of their choice with an affordable price. It offers about 14 different names with about 1000 1000 plus different different varietie varieties s with a watch watch for literally literally everyone. 3. Exclusive products: Today Titan holds the pride for say that its products both within the country and international internationally ly run in battle position. position. Its EDGE is the slimmest slimmest watch in the world position. 4. Contribution of owned brands and retail. The profit is accounted by being in the retail space which is booming. 5. Watches are availabl able with functionalities and chronographic.
popular
functions
like
dates,
multi
6. Guar Guaran ante tee e and and warr arranty anty for for certa ertain in per period is asce ascerrtai tained ned to the the customers.
B. Weaknesses
1. Pricing: The average price of Titan in mid-price segment is very high than the other competitors. 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. 2. Market share: As the the aver averag age e pric price e of Tita Titan n wris wristw twat atch ch is far far more more than than the the othe otherr 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 is in mid-segment and Titan’s market share is between 18-20% which is far lower than HMT and Timex. 3. Globalized: The company is not sufficiently globalized in spite of being the market leader in the Indian soil.
C. Opportunities Opportunities 1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there is demand for the products. products. - Gold watches and pairs are used during during the wedding occasions. The fast track brand is promoted in month of JuneAugust when schools and colleges re-opens. 2. Gifting concept: Titan started as a brand which was associated ass ociated with gifting and relations. 3. Exchanging offer: The Titan gives the exchange offer for any old watch, of any make, in any condit condition ion function functional al or otherw otherwise ise and get a flat flat dis discou count nt of 25 25% % on the purchase of a brand new, stylish and technologically advanced watch from Titan. D. Threats 1. Competitor: Lots Lots of fore foreig ign n brand brands s are are ente enteri ring ng in our our coun countr try y with with thei theirr bran brande ded d watches. As the removal of quantitative restrictions on import watches lead to a threat to Titan.
2. Premium segment:
As in premium segment Titan is getting threats from reputed international brand such as Espirit, Swatch and Citizen.
3. Mobile: Nowadays people can get the time and the other feature on mobile phone. So, the need of wristwatch is in decreasing trend.
HMT (Hindustan Machine Tools)
HMT was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Over the years diversified into into watche watches, s, tracto tractors, rs, printi printing ng machin machiner ery, y, metal metal formin forming g presse presses, s, die casting & plastic processing machinery, CNC systems & bearings. Successful techno technolog logy y absorpt absorption ion in all produc productt groups groups throug through h collab collabora oratio tions ns with with world renowned manufacturers and further strengthened by continuous inhouse house R&D. R&D. Today, Today, HMT compri comprises ses six subsidi subsidiari aries es under under the ambit ambit of a holding company, which also manages the tractors business directly.
SWOT ANALYSIS A. Strengths 1. HMT is the market leader in the mechanical watches which serves the lower segment of the society. 2. HMT has a very strong brand image because of the quality and reliability offered by the brand. 3. Comp Compan any’ y’s s liqu liquid idit ity y posi positi tion on has has been been quit quite e comf comfor orta tabl ble e and and has has availability of tangible assets such as land and buildings. 4. Production facility is flexible enough to adapt to newer technologies.
B. Weakness
1. No emphasis on Research and Development. 2. Competitors have successfully been able to innovate continuously thereby launching newer designs in the market where as HMT has failed to do so. 3. HMT did not have control over their retailers hence they lost control over prices and trade. 4. No regu regula larr trad trade e audi audits ts have have been been carr carrie ied d out out by the the comp compan any y to determine what is going around in the market. 5. It restricted product development to quality development only. 6. Bureaucrat Bureaucratic ic and centralize centralized d decision decision making making inhibited inhibited HMT’s ability ability to respond quickly with respect to market changes. C. Opportunities Opportunities 1. There are good diversification possibilities in products. Apart from the mechan mechanica icall watche watches s HMT can also also focus focus on multif multifunc unctio tional nal and digita digitall watches with advanced technologies. 2. Company can expand in the market by launching products suitable for customers in a particular market segment like the youth, gift fashion, sports etc. 3. Enlarge network of the sales outlets. 4. Leveraging brand equity of HMT to products such as sports gear, personal accessories.
D. Threats 1. Worldwide decline in the production and demand of mechanical watches due to growing acceptance of Quartz watches. 2. Competitors successfully exploited the lifestyle segmentation which HMT failed to. 3. More of unorganized manufacturing has been haunting HMT. 4. With the cheap prices prices and the availabili availability ty of the watches by the regional regional players has been a big reason for the decline in market share.
TIMEX WATCHES
Timex watches are in the market since 150 years. It has been ranked as the no. 1 in U.S.A in 2001. It is the largest selling brand in U.S.A & Canada and is
focuse focused d on Quar Quartz tz base based d wris wristt watc watche hes s in Indi India. a. Lowe Lowest st cost cost watc watch h manufacturer in the world. The target market segment for TIMEX watches in India includes the youth, kids, high end society, fashion, luxury, sports etc. The unique features lie among the water resistant watches. It has tied up with Bret Lee as the brand ambassador.
SWOT ANALYSIS A. Strengths 1. It has a big brand image to support its presence in the Indian watch Industry. 2. The company has watch for all the different segments for kids, youth, luxury oriented etc. 3. There are different price band available from hundreds to thousands of rupees. 4. It has a strong technology to support like data link, perpetual calendar collection, water resistant watch etc.
B. Weakness 1. It has failed to capitalize on its big brand name and the global recognized presence. 2. Failed to combat the tough competition from other market players. 3. The company doesn’t have much variety of the products to attract the customers. 4. The after sell services and the distribution network, retail outlets are few as compared to competitors.
C. Opportunities Opportunities 1. The The comp compan any y has has oppo opport rtun unit ity y to expa expand nd in the the luxu luxury ry and and jewe jewelr lry y segment of the watches and the accessories. 2. As the Indian watch market is still majorly untapped more designs and price range and after sale services should be provided to the customers.
D. Threats 1. The company has to work to occupy more of the market share as there have been already well established players in the market.
2. The use of mobile phones is is being treated as a substitute substitute for the watches these days.
COMPETITIVE ANALYSIS OF MARKET PLAYERS Rating 1-5, 1- Poor, 5Excellent Attributes Weightage Prod Produ uct Quali uality ty and Reliability 0.2
TITAN
HMT
TIMEX
5
4
3.5
Product Design Promotional Expenditure
0.2
5
3
3.5
0.2
4
3
3.5
Price Range After Services
0.15
4
4
3.5
0.15
4
3.5
3
0.1
4
3.5
3
1
4.4
3.475
3.375
sales
Retail Outlets
