CAT 3 PRESENTATION

ECONOMICS
 MARKET STRUCTURE
What is Market Structure?
Market structure, in economics, refers to how different industries are classified and
differentiated based on their degree and nature of competition for goods and services. It
is based on the characteristics that influence the behavior and outcomes of companies
working in a specific market.
Types of Market Structures

1. Perfect Competition- They sell similar products , lack price influence over the commodities,
and are free to enter or exit the market
2. Monopolistic Competition-Monopolistic competition refers to an imperfectly competitive
market with the traits of both the monopoly and competitive market. Sellers compete among
themselves and can differentiate their goods in terms of quality and branding to look
different.
3. Oligopoly- An oligopoly market consists of a small number of large companies that sell
differentiated or identical products. Since there are few players in the market, their
competitive strategies are dependent on each other.
4. Monopoly - a monopoly market, a single company represents the whole industry. It has no
competitor, and it is the sole seller of products in the entire market.
 ABOUT
Titan Company Ltd is the world’s fifth largest wrist watch
manufacturer and India’s leading producer of watches. The
company is engaged in manufacturing of watches, jewelry,
precision engineering and Eyewear. They produce watches
under the brand name Titan, Fastrack, Sonata, Nebula,
RAGA, Regalia, Octane and Xylys. They export watches to
about 32 countries around the world. They manufacture
precious jewellery under the Tanishq brand name. Titan
Industaries Ltd is a joint venture between the Tata Group, and
the Tamil Nadu Industarial Development(TIDCO).
AS on 31 December 2020, Titan’s retail chain stands as 1,854
stores, with a retail area crossing 2.4 million sq.ft. for all its
brands covering 292 towns.
Philosophy
The name Titan today evokes superior craftsmanship, innovative technology
and trustworthy product quality.

"Titan Company Limited continues to grow and set new standards

for innovation and quality with each new offering."

Vision
We create elevating experiences for the people we touch and significantly
impact the world we work in.

Mission
We will do this through a pioneering spirit and a caring, value-driven culture
that fosters innovation, drives performance and ensures the highest global
standards in everything we do.
 HISTORY
1984 –
The Company was Incorporated on 26th
July, at Chennai. The Manufacture analog
electronic watches with a choice of over
150 designs. The company was promoted
jointly by Questar Investments, Ltd., a
Tata Company with its associates Tata
Sons, Ltd., and Tata Press, Ltd., and Tamil
Nadu Industrial Development
Corporation, Ltd. (TIDCO).
1987 –
The Company established a manufacturing
facility at Hosur for the manufacture of
components for watches.

1989 - A new range of watches called `Aqura' was

launched in December.
1993 - The name of the Company was
changed with effect from 21st Sept. from
Titan Watches, Ltd. to Titan Industries
Ltd., in view of the fact that the
Company's products consisted of not only
watches but also jewellery.

1991 - A joint venture Company along

with Economic Development Council of
Goa, Daman & Diu Ltd., in the name of
Titan Time Products, Ltd., was set up at
Goa, for the manufacture of Electronic
Circuit Blocks.
1994 - The Company introduced
`Tanishq' range of watches made of 18
carat gold and studded with precious
stones. A new range of watch `Insignia'
manufactured for the European market
likely to be introduced in the domestic
market.
1995 - The Company proposed to set up
a joint venture company with Hour Glass
of Singapore to set up watch boutiques in
leading Indian cities for the sale of luxury
watches and also be responsible for
wholesale and after-sales operations
1996 - The Company has introduced new
economy range of watches called "Sonata"
and Tanistiq's 22 Karat ethnic Jewellery
during the year.

1998 - 3.5%, 14% and 12% redeemable

cumulative preference shares has been
fully redeemed.
2000 - Titan Industries has announced
the launch of Cyber, a range of digital
clocks. ICRA has withdrawn the A1+
rating assigned to the Rs 15 crore CP
programme of the company as there is no
outstanding against the instrument.
 TITAN MARKETSTRUCTURE
(OLIGOPOLY)
Powerlifting is a specialized way of lifting weights. One of the
companies that supply the equipment necessary for the sport is Titan.
Titan falls into the oligopoly market structure. A limited number firms
and each firm using the decisions made by other firms to make their
decisions characterize an oligopoly (Colander, 2010). The International
Powerlifting Federation, otherwise known as IPF, must approve
equipment in a powerlifting meet. There are only eight companies
approved by the IPF and five of those only for knee sleeves. There are
only three companies approved to sell squat, deadlift, and powerlifting
suits and one of those is Titan (International Powerlifting Federation,
2013). Since there are a small number of companies approved by the IPF,
and the companies pay close attention to what each other are doing when
making decisions oligopoly best describes Titan.
 PRICING DECISION
Pricing decisions of TITAN- They adopt 5 strategies for pricing
1. Penetration Pricing strategy adopted so as to establish itself in market. Prices as
low as in the range of 350 to 600, making it too affordable even for the lower class
and thereby, attracting customers.

2.Premium,super premium, exclusive Titan watches has segmented its various

watches brand based on their different pricing based on-low level income,middle level
income, high level income.

3.ODD PRICING/PSYCHOLOGICAL Titan keeps many of its products ending with

95-99. Customers believes products to be cheaper at these prices than when they are
in whole number.

4.Competitive pricing This pricing is done in response to the competitors to remain in

the market. Main competitors - Chinese brands,Indian brand - maxima, timex, HMT.

5.Pricing as per geography Within India TITAN has divided its price range for rural
and urban areas separately. Low prices watches for rural areas so that lower income
people could also afford it.
 MARKET SHARE
Titan Share Analysis Indian Jewellery Market. The Indian Jewellery market is
estimated at Rs.4.5 Lakh Crore. Out of which, the organized market accounts for ~ INR
1.4 Lakh Crore (31.1%).Titan is responsible for 4% of the overall jewellery market. It
holds a mega 12% market share in the organized segment followed by Malabar
Jewellers (10%), GRT (9%) and Kalyan Jewellers (7%).Having said that, one thing that
will make your jaws drop is that company enjoys a whopping 56% share in organised
market’s profit.
The Indian Jewellery Industry went through a lackluster phase post the outbreak of the
COVID-19 pandemic. However, things are taking a turn for the better and a full-
fledged recovery is underway. With blockbuster demand amid the festive season and
the IPO of Kalyan Jewellers coming soon, this sector has gained massive traction. In
today’s blog, we present a brief analysis of the Goliath that rules the roost – Titan
Company.
 IMPACT
Impact of new entrants in market are as follows:-
1.The entry of a new competitor in a market tends to reduce the market
prices.
2.When a new company enters your market, the variables that influence
the performance of your business change and you have to react to
maintain your position.
3.If the new entrant invests heavily, you have to examine whether they
have extensive capital resources or whether the investment has stretched
their capacity.
 THANK YOU
PRESENTATION BY:
JYOTI KUMARI (21GSOB1010451)
JAIKANT SINGH(21GSOB1010
DEVVRAT RATHORE(21GSOB1010390)