The paper “ Titan’ s Macro-Environment Audit " is a cogent example of a case study on marketing. The company’ s External Analysis begins with the learning of political and economic factors affecting the business. Indian watch market generates sales of almost 25 million units per annum. Due to a change in consumer perception of watches, the watch market is flooded with designer trendy watches. The sale of watches supports the economy. Social factorsWatch has emerged as fashion wear now instead of being a necessity. The watches and their brand carries a lot of importance now and the customer goes for the brand so as to make an impression on society. Technological factorsHuge technological development is taking place in the watch industry so as to maintain the status of the watch industry.
GPS, calculator, torch and all have been incorporated into watches. 12 C Culture/Consumer Behavior Consumption Communication Watch has become a fashion accessory All the segments of consumers. Word of mouth, advertisements. Commitment Contractual obligations Capacity to pay Quality, durability and the warranty offered Different obligations in different countries Increased consumer spending leads to increased expenditure on watches. Choices Channels Caveats Many suppliers in the market, hence consumers have a wide array of options Retailers and distributors New designs ad patters to offer a differentiated product Maslow Need for Hierarchy Porter’ s Five Forces Model Company Analysis 7M Manpower Titan employs almost 2500 workforce, 10% of which is disabled individuals. Machine Launching of Titan Edge – the world’ s slimmest watch Minutes New technologies are adapted to make watches more customer-friendly and trendy. Materials Use of various metals like gold, silver, and steel along with jewels to enhance the exquisite look and finish of watches. Market The market is competitive because of the presence of many watch companies. Money Titan has performed well in terms of revenue.
However, due to the economic slowdown, sales have reduced by 7%. Methods Products are sold with the help of heavy advertising and appealing to customers emotionally. 5C Customers Due to the increased variety of watches offered by the company, customers have now more options to choose from.
The customer base ranges from professionals to housewives to kids. Competition High competition globally as well as in India. Costs The cost of manufacturing fashion wear is high. Newline introduced can become completely redundant because of several factors like weather change Channels to Market Supermarkets, Company showrooms, retail outlets. World of titan Communication Word of mouth, Advertisements. 7S Shared values The company has strong ethical values and has a reputation for its values. Strategy Titan follows competitive strategies by innovating the watches in look, design, and materials.
Customer interface, brand management, and reputation management are the keywords. Structure The structure is Functional division, the responsibility trickling down the hierarchy. System Titan works towards constantly innovating the looks of the watch offered along with maintaining the quality and delivering the promises. Staff Ethical standards are followed across the company, hence staff is maintained well. Style Leadership management style Skills Directional, Innovative and creative, Employee management, customer retention through customer satisfaction and value delivery Segmentation Ansoff matrix Existing products New products Existing market Promoting business by aggressive store marketing & encouraging customers to buy New designs and range introduced in every category for all segments of customers. Newmarket Globally expanding fast. In the process of introducing watches with the camera, GPS, etc. BCG Matrix Market GrowthProduct positioning Financial Ratios - Titan Current Ratio – 4.32(2002).
The current ratio is strong showing that the company has four times the asset to the liabilities. The financial position of the company is strong which is important for the survival of the business. Profitability ratio - Net Profit Margin – 0.058(2002). The net profit margin earned by the company in moderate as per the industry. Sales Growth Ratio – 6% year on year, considered being moderate for growing company SWOT S 1.
Titan’ s manufacturing units are in excellent condition. They maintain high standards of cleanliness and hygiene. All the systems are computerized equipped with state of art tools and equipment. 2. The emphasis is on quality, design and affordability aspects. 3. In-house jewelry production unit facilitating the reduced cost. 4. Titan management structure is well built; the roles are well defined without ambiguity resulting in enhanced performance and clear objectives. 5. Titan offers many options to the customers and the brand is segregated into many customer segments.
These segments are decided based upon the role and the financials of the customers. Every segment offers exclusive variety. 6. Innovation and efficient management of the resources is the key to the success of Titan. 7. Has a positive brand image of good quality, value, durability, fashion-forward and price-competitive offerings. 8. Titan enjoys 100% brand recognition and has become a household name in India over the years. 9. 80% market share in India. W 1. Titan is still a small company in terms of global recognition. 2.
Titan does not target the Indian people residing in foreign while advertising. O 1. To spread its popularity in the international market. 2. To attract the Indians residing outside India to hike the sales and also start making a brand image. 3. Maintaining brand recognition in India. 4. Vast opportunity in terms of incorporating watches with various electric devices to make it more customers friendly. T 1. Due to the economic recession, Consumer spending on watches may reduce. 2. The entrance of other competitors in the market. 3. Swiss and US companies finding the Indian market lucrative. SoWOT MatrixS g S1 with O1 & O2 can pave the way for Reiss to enter the International market while bridging the gap. W2 and O2 together will lead to international expansion after due market research to overcome the threat. Taking care of W1 by using S7 and S5. T2 can be overcome by and converted into strength with the help of O4. .