1. 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 competitionanalysis.
2. INDIAN WATCH INDUSTRYIndia is an under penetrated market for watches. Only 27% of Indians own awatch.Total estimated volume as per 2008 is 44 million units and value of Rs 2700Cr. Vast proportion of Indian market is below Rs 500 by about 68%.The key players in the market are1. Titan2. HMT3. Timex Market Share of Indian Watch Industry 2009Market has been split into:i. Low endii. Mass marketiii. Premium & Luxury brands.TITANTitan India Ltd., formerly (Titan watches limited) is a joint venture betweenTata group of companies and Tamil Nadu Industrial DevelopmentCorporation (TIDCO) was incorporated in
3. 1987, and within three years of inception became a market leader. It has itsHead Quarters at Hosur, India and Titan has presence in 4 continent and 32countries.Watches: Popular Priced, Mid Priced and Premium PricedEye Gear: Sunglasses, Prescription Glasses. Contact LensesAccessories: Wallets, Purses, Wrist BandsSWOT ANALYSIS FOR TITANStrength:1. Style:Titan first introduced the ‘style’ concept in India and projected the watch asa fashion accessory. Nowadays style is a very much evident factor amongthe youth. So, Titan makes the peoples life more glorious by making stylishwristwatch.2. Models:Titan offers the best and the biggest range to customers to choose thewatch of their choice with an affordable price. It offers about 14 differentnames with about 1000 plus different varieties with a watch for literallyeveryone.3. Exclusive products:Today Titan holds the pride for say that its products both within the countryand internationally run in battle position. Its EDGE is the slimmest watch inthe world position.4. Contribution of owned brands and retail. The profit is accounted by beingin the retail space which is booming.5. Watches are available with popular functions like dates, multifunctionalities and chronographic.6. Guarantee and warranty for certain period is ascertained to thecustomers.B. Weaknesses
4. 1. Pricing:The average price of Titan in mid-price segment is very high than the othercompetitors. Average price for Titan is Rs.1100 while the price for HMT isRs.550. In the mid-price segment the company is not performing up to themark due to the lack of choice of consumers.2. Market share:As the average price of Titan wristwatch is far more than the othercompetitor, Titan has less market share. The market is more demonstrate bymiddle class people and for them Titan is quite costly. Among 75% marketshare is in mid-segment and Titan’s market share is between 18-20% whichis far lower than HMT and Timex.3. Globalized: The company is not sufficiently globalized in spite of being the marketleader in the Indian soil.C. Opportunities1. Seasonality:At the time of festival, like Diwali Titan promotes Nebula, Bandhan becausethere is demand for the products. - Gold watches and pairs are used duringthe wedding occasions. The fast track brand is promoted in month of June-August when schools and colleges re-opens.2. Gifting concept:Titan started as a brand which was associated with gifting and relations.3. Exchanging offer:The Titan gives the exchange offer for any old watch, of any make, in anycondition functional or otherwise and get a flat discount of 25% on thepurchase of a brand new, stylish and technologically advanced watch fromTitan.D. Threats1. Competitor:Lots of foreign brands are entering in our country with their brandedwatches. As the removal of quantitative restrictions on import watches leadto a threat to Titan.2. Premium segment:
5. As in premium segment Titan is getting threats from reputed internationalbrand 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 toolmanufacturing company. Over the years diversifiedinto watches, tractors, printing machinery, metal forming presses, diecasting & plastic processing machinery, CNC systems & bearings. Successfultechnology absorption in all product groups through collaborations withworld renowned manufacturers and further strengthened by continuous in-house R&D. Today, HMT comprises six subsidiaries under the ambit of aholding company, which also manages the tractors business directly.SWOT ANALYSISA. Strengths1. HMT is the market leader in the mechanical watches which serves thelower segment of the society.2. HMT has a very strong brand image because of the quality and reliabilityoffered by the brand.3. Company’s liquidity position has been quite comfortable and hasavailability of tangible assets such as land and buildings.4. Production facility is flexible enough to adapt to newer technologies.B. Weakness
6. 1. No emphasis on Research and Development.2. Competitors have successfully been able to innovate continuously therebylaunching 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 overprices and trade.4. No regular trade audits have been carried out by the company todetermine what is going around in the market.5. It restricted product development to quality development only.6. Bureaucratic and centralized decision making inhibited HMT’s ability torespond quickly with respect to market changes.C. Opportunities1. There are good diversification possibilities in products. Apart from themechanical watches HMT can also focus on multifunctional and digitalwatches with advanced technologies.2. Company can expand in the market by launching products suitable forcustomers in a particular market segment like the youth, gift fashion, sportsetc.3. Enlarge network of the sales outlets.4. Leveraging brand equity of HMT to products such as sports gear, personalaccessories.D. Threats1. Worldwide decline in the production and demand of mechanical watchesdue to growing acceptance of Quartz watches.2. Competitors successfully exploited the lifestyle segmentation which HMTfailed to.3. More of unorganized manufacturing has been haunting HMT.4. With the cheap prices and the availability of the watches by the regionalplayers has been a big reason for the decline in market share.TIMEX WATCHESTimex watches are in the market since 150 years. It has been ranked as theno. 1 in U.S.A in 2001. It is the largest selling brand in U.S.A & Canada and is
7. focused on Quartz based wrist watches in India. Lowest cost watchmanufacturer 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 lieamong the water resistant watches. It has tied up with Bret Lee as the brandambassador.SWOT ANALYSISA. Strengths1. It has a big brand image to support its presence in the Indian watchIndustry.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 ofrupees.4. It has a strong technology to support like data link, perpetual calendarcollection, water resistant watch etc.B. Weakness1. It has failed to capitalize on its big brand name and the global recognizedpresence.2. Failed to combat the tough competition from other market players.3. The company doesn’t have much variety of the products to attract thecustomers.4. The after sell services and the distribution network, retail outlets are fewas compared to competitors.C. Opportunities1. The company has opportunity to expand in the luxury and jewelrysegment of the watches and the accessories.2. As the Indian watch market is still majorly untapped more designs andprice range and after sale services should be provided to the customers.D. Threats1. The company has to work to occupy more of the market share as therehave been already well established players in the market.
8. 2. The use of mobile phones is being treated as a substitute for the watchesthese days.COMPETITIVE ANALYSIS OF MARKET PLAYERS Rating 1-5, 1- Poor, 5- ExcellentAttributes Weightage TITAN HMT TIMEXProduct Qualityand Reliability 0.2 5 4 3.5Product Design 0.2 5 3 3.5PromotionalExpenditure 0.2 4 3 3.5Price Range 0.15 4 4 3.5After salesServices 0.15 4 3.5 3Retail Outlets 0.1 4 3.5 3 1 4.4 3.475 3.375