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Indian Wrist Watch Industry Competition Analysis of Market Leaders 120329072806 Phpapp02
Indian Wrist Watch Industry Competition Analysis of Market Leaders 120329072806 Phpapp02
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.
Market Share of Indian Watch Industry 2009 Market has been split into: i. Low end ii. Mass market iii. Premium & Luxury brands.
TITAN
Titan India Ltd., formerly (Titan watches limited) is a joint venture between Tata group of companies and Tamil Nadu Industrial Development 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 Premium Priced Eye Gear: Sunglasses, Prescription Glasses. Contact Lenses Accessories: Wallets, Purses, Wrist Bands
6. Guarantee and warranty for certain period is ascertained to 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 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 is in mid-segment and Titans 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 1. Seasonality: At the time of festival, like Diwali Titan promotes Nebula, Bandhan because there is demand for the products. - Gold watches and pairs are used 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 with gifting and relations. 3. Exchanging offer: The Titan gives the exchange offer for any old watch, of any make, in any condition functional or otherwise and get a flat discount of 25% on the purchase of a brand new, stylish and technologically advanced watch from Titan. D. Threats 1. Competitor: Lots of foreign brands are entering in our country with their branded 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.
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. Companys liquidity position has been quite comfortable and 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 regular trade audits have been carried out by the company to determine what is going around in the market. 5. It restricted product development to quality development only. 6. Bureaucratic and centralized decision making inhibited HMTs ability to respond quickly with respect to market changes. C. Opportunities 1. There are good diversification possibilities in products. Apart from the mechanical watches HMT can also focus on multifunctional and digital 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 and the availability of the watches by the 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
focused on Quartz based wrist watches in India. Lowest cost watch 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 doesnt 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 1. The company has opportunity to expand in the luxury and jewelry 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 being treated as a substitute for the watches these days.