Demand and supply of TITAn Watches

INTRODUCTION

Remember when the only Indian wristwatch brand you could buy came in a clutch of clunky models, one more ordinary than the other, when the craze for an `imported watch’ never seemed to wane? That was before the time of Titan, a name which changed forever the way watches, made in this country were seen by Indians and the world.

Titan Industries was established in 1984 as a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. The company brought about a paradigm shift in the Indian watch market, offering quartz technology with international styling, manufactured in a state-of-the-art factory at Hosur, Tamil Nadu. Leveraging its understanding of different segments in the watch market, the company launched a second independent watch brand-Sonata, as a value brand to those seeking to buy functionally styled watches at affordable prices. In addition it focused on the youth with its third brand – Fastrack. It has also premium fashion watches by acquiring a licence for global brands such as Tommy Hilfiger and Hugo Boss, while. It has also in its portfolio its first Swiss Made watch brand – Xylys.

Titan is credited with transforming the face of India’s watch industry. By offering consumers quality products the blended classy designs with superior technology, Titan became byword for success stories. Outstanding service, wide variety of models, and effective marketing has helped Titan consolidate its early gains, to the point where the company is a force to be reckoned with beyond Indian shores.

Understanding the Indian consumer’s psyche has been vital to Titan reaching its current position of strength. The company today has a model for every price segment and every market, urban and rural, regional and international. Within the Titan mother brand are Nebula, which comes draped in 18-carat gold; the exclusive Insignia; PSI, for those turned on by technology; and Raga, which has been designed exclusively for women. Titan’s focus has always been on India.
Research reveals some interesting facts and figures about this heterogeneous market.

Titan is the runaway market leader, with domestic sales of 6 million watches a year. There are 190 million watch-owning Indians; between them they own about 210 million watches.Urban India accounts for 120 million of these watches and 90 millions are on rural wrists. More men than women own watches in India, and more working women than housewives own watches.

It is the rural segment within this diverse market that Titan is now looking to tap. “The key to success is getting into the rural market on a larger scale. The company’s Sonata range is targeted at rural customers, and is part of a strategy where the alignment of price and reliability are crucial. The rage costs between Rs.495 and Rs.1,200 has showrooms exclusively for it, and is sold mainly in small-town India.

Thus broadly speaking TITAN has 60% of the watch market in India Today because companies existing have a niche market where as TITAN gives the flexibility to the customer to choose a watch more or less than his budget giving him the same guarantee, the name TATA, a wide dealer network, an international store, and more so ever value for money.

The Indian Watches Market

The Indian watches market is estimated at 42 million watches in the fiscal year 2007-08. This represents value growth of 12% over the previous year. In relative terms, growth at the premium end of the market has exceeded growth in the mass market. Overall, double-digit growth of the Indian watches market portends well for the Company’s future. Such growth has been driven by marketing initiatives undertaken by several brands, including your Company which remains the clear market leader. It is estimated that over 55 global brands of watches are currently marketed in India, which has become a focal market for all watch and fashion majors. In our view, the combined marketing investments of all these brands will continue to strongly drive consumer demand for watches in our country, particularly at the premium end. Potential for growth in India is therefore immense particularly at the economy end of the market. A key challenge remains the large, faceless and relatively lawless unorganised sector, which accounts for nearly 60% of the total market, with no accountability to either the government or the consumer. Despite increased global competition, the Company has successfully defended and increased market share in the Indian market. During 2007, the Company’s already signifi cant market share grew by a further 4%, driven by a slew of aggressive marketing and sales initiatives.

This was made possible by a strong portfolio of brands – Titan which is our fl agship brand, Titan Raga for women, Fastrack for youth, Sonata for the economy market and Xylys, our Swiss-made offering at the premium end of the market. We continued to invest strongly in all these brands. Our expanding nationwide reach – stretching across 12,000 multi-brand outlets, 200 large format stores, and over 240 “World of Titan” exclusive retail stores – added to our dominance. Our vision of being world-class, innovative, contemporary and building India’s most desirable brands continues to power our growth. Based on this strong and impregnable foundation, the domestic watches business of the Company grew by a robust 17% during 2007- 08. The Time Products Division of the Company delivered ROCE of over 40% on capital employed of Rs. 331 crores.

Watch Business:

The grey market continues to be a threat to our mass-market brand Sonata and the high indirect tax component on branded watches in the mass-market segment only results in favouring the grey market players.

Competition from International brands is becoming intense in the domestic markets and the Company has taken the route of licensing internationally reputed brands and opening multi brand store in the premium segment to counter the same. The risk of the product category losing its functional value and hence positioning the same as a Fashion accessory has become imperative.

The Company continues to spend on brand building and leading the category and growing the watch market to this end. The high cost of manufacturing at Hosur works primarily due to high wages in that area continues to be a concern and the Company is resorting to selective manufacturing so as to maximise value in manufacturing in terms of criticality, control and value addition.

In 1993, Titan changed its name from Titan Watches Ltd., to Titan Industries Ltd., to accommodate the wide range of other accessories it was planning. In the late 1980s, the country was in a foreign exchange crisis and the government was unable to meet the needs of companies and so asked the companies to earn their foreign exchange on their own. Foreign exchange was necessary for Titan to purchase equipments and other raw material from overseas market. To earn foreign exchange for the company, Titan decided to export jewellery to foreign markets. But when Titan was finally ready to export, the conditions changed. The foreign currency crisis ended in the country. Other Asian countries also started responding to the market potential, and the supply exceeded the demand. Titan decided to look inwards and explore the potential of the domestic market. During themid-1990s, Titan identified the INR40,000 crore domestic jewellery market as a potential market. The market was dominated by unorganized players with more than 30% market share. To exploit the potential, Titan launched its range of jewellery watches under the name Tanishq. It was the first branded jewellery in the country. In its first year (1995), it had poor response to its 18-carat standard gold designs. These standards of gold were accepted worldwide for gold jewellery. But the Indian households preferred buying 22-carat gold accessories from traditional stores. So, the products were re-launched in the 22-carat standards and the first store for Tanishq jewellery was started in 1996 in Chennai (Exhibit IV). By 1995, Titan was market leader in watch manufacturing in the country with a market share of 44%withHMT controlling only 22%. Titan sold around 3.2 million watches in the year “Indian watch industry”, when compared to HMT which sold three million watches. The same year, Titan introduced its watches in the European market. Its strategy overseas was to appoint sole distributors who took care of sales, distribution and after sales service. Its distributors were mostly of Indian origin who targeted the Indian community in the overseas market. The same year, Titan, owing to internal conflict, broke its joint venture with Timex. However, Timex was allowed to use Titan’s distribution network for two years until it established its network. After the break up, Titan had to enter the lower segment all alone. It launched more brands for the lower segment to tap the potential. Its Spectra and Exacta range of watches were targeted for lower segment of the market. These products were independently manufactured and marketed after dissolving the joint venture. The major competition was from Timex, which already had a strong presence in the lower-end of the market.

Table clocks, a new product line were launched in 1995. Organized players were not in existence in this segment and therefore were an unexploited opportunity for Titan. Moreover, the new line was related to its core product line of wristwatches, making the manufacturing and marketing aspects easy. These products were sold in company stores along with the wristwatches.

In 1998, Titan launched ‘Sonata’ for the lower segment of the wrist watch market. Titan had two major umbrella brands in its portfolio, ‘Titan’ and ‘Sonata’. It adopted a twin brand strategy. While Titan was meant for the premium segment, Sonata targeted the lower segment of the market. The brand was positioned as ‘a Titan watch at low price’. The prices ranged from INR 350 to INR 1400 and were sold in exclusive stores in small towns in the country.

Titan’s ‘Fastrack’ watches, introduced in 1998, were targeted for the age group of 14-18 years. They were positioned as ‘Cool watches from Titan’ with a starting price of INR 850. The young generation in the country was emerging as a very profitable segment with exposure to TV advertising. To the existing customers, its premium watches stood for a high quality image. But their children needed watches that matched their dynamic lifestyles. Keeping in view the young customers, it launched ‘Fastrack’, aluminium strapped watches. They were sporty watches that matched with trendy designs and casual wear. Within 10 months, the sales volumes of ‘Fastrack’ reached about 85,000 units.

In 1999, Titan launched its new brand ‘Dash’ for the children in the ages of 6-14 years. It was the fourth major brand of Titan. Their prices ranged from INR 250 to 395, and were primarily positioned as a gifting idea. The brand was targeted on the growing aspirations among the young children for watch possession. The brand was a success and in the first three days, about 30-day stock of ‘Dash’ was sold out. The product was constantly improved by adding features and colours to designs. Its major competitors in the segment were unorganized players and grey market sellers. With its innovative designs backed by advertising excellence and strong distribution network, Titan was leading the market among the organized players. By 2003, it had a market share of 25%in the total market including the unorganized sector. The figure was about three times more than its immediate competitor, HMT. By the end of 2003, net sales and profits had reached INR807.5 crore and INR 11.46 crore respectively (Exhibits VII and VIII). But, with the opening up of the economy, new challenges emerged. Quantitative restrictions on imports were removed allowing easier imports into the domestic market. Titan, in addition to unorganized players, had to face competition from big brands of the world. In the mid premium segment (above INR 2,000), it had to face tough competition from international brands like Omega, Swatch and others. At the same time, in the lower-end (less that INR 500) of the market, it had to face competition from grey markets, imports from countries like China and unorganized players. In addition, Timex was posing challenge in the premium and the mid-market segment (INR1000-INR2000).

To strengthen its market reach, Titan had spent heavily on distribution networks and complimented it with different campaigns. As per its new marketing initiatives, Titan was revamping its showrooms and was spending on advertising campaigns. Its campaign for the brand ‘Edge’ was a clutter breaker, according to a survey. Among the vast range of product varieties, the high technology and quality image was regained. It was positioned as the ‘slimmest watch in the universe’, delivering a pride of possession. Titan was also planning to extend its customer service outlets to cover 90% of its 450 million customer base. Plans were also underway to obtain 74% stake in HMT, which could help Titan strengthen its access in the rural market. Out of the total 800 million potential market for watches, 80%was from rural India. In view of the huge potential, Titan identified the strong brand of HMT as a viable option for exploiting the opportunity. According to Titan, the opening up of the market was also at its advantage. Explaining their stand, Bhaskar Bhat said, “The entry of new players in the watch trade will fuel increased advertising and sales promotion, which, in turn, will increase visibility and interest in the watch product category, this will benefit Titan.”24 Moreover, the watch penetration in the market was very low with only 10 people out of 200 owning a watch in the country.25 This offered huge potential for Titan. In addition, Titan’s strong distribution network and after sales service gave it an advantage over the foreign entrants. For the premium segment, it was concentrating on retailing and product innovations while for the lower-end customers, price and strong distribution network were its priorities. Titan, with its contemporary styles and designs, high technology sophisticated watches, affordability and durability was moving ahead. Concurring on this, Bhaskar Bhat said, “We created new segments, brought in international trends, entered new markets and ventured into new businesses (jewellery). Our effort was to remain contemporary. Titan was less worried about the competition and according to him, “Titan’s philosophy is more customer-centric than competition driven. By constantly monitoring consumer trends, we are able to adapt our entire marketing mix toits needs.

Sales:

The above given chart shows the sales of the overall Titan Watches in India in the last Seven Years, i.e. from 2002 to 2008. Looking at the chart the Titan Watches sales were increasing every year except the year 2003 but then also it didn’t decrease comparing to last year. The reason behind the low sales was because of the competition. After globalization there were some norms and conditions for the company which were actually not from India but dealing in India e.g. Timex, Citizen, etc which are the nearest competitors of the Titan Watches, so in 2003 all the norms and conditions were removed like limited imports, fees, etc. So because of these the watches become much cheaper and the market become much tougher to sustain, so because of these the sales got affected. But later on to increase the sales, Titan Watches decided to increase the advertising and to strengthen their distribution network. One major activity that Titan did in this period was, they endorsed Amir Khan for there product which in fact worked for them, they increase the advertisement campaign and used different techniques, like putting much more ads on News Paper during Diwali and Marriage seasons.

Comparison of Income for year 2006-07 & year 2007-08

The above chart shows the comparison of the Income part of the overall Titan Watches from the last year i.e. 2006-7 with the current year 2007-8.

Comparison of profit after tax for year 2006-07 & year 2007-08

This chart reflects the comparison of the Profit After Tax, comparing the last year 2006-07 to 2007-08.

Share Market Analysis of one fiscal year i.e. April 2007 – March 2008

The above all the four charts deals with the stock prices of the Titan Watches in the year 2007-2008 at the BSE and NSE respectively.

Monitoring the chart properly it clearly reflects that how good Titan Watch Company is. The black line is about the points of the Sensex & Nifty, the blue line tells about the prices of the Titan Watches in the BSE & NSE. As there is a direct relationship between the performance of the company and stock price of the company of the share, so from the start of the financial year 2007-08 the Titan Watches was performing well, infact it was better then the average, in the chart there were only two downfall for the Titan Watches and that was because of the US Financial Crisis, which has a huge role to play in the Indian Market because of which many Indian Company has to suffer including Titan Watches, which is not an exceptional.

The above chart deals with the Share Holding Pattern of the Titan Watches

Watch Market

Now let us just see what different brands of Titan are there in the market. Titan is the only company which has different brands of products available for all sorts of customers.

In the above graph X axis shows the prices as you travel to right on this axis the price range og watches goes on increasing. On the other hand the Y axis shows the style change in the watches i. e. as you move down on Y axis the watches will become stylish.

We are showing the different price ranges in the titan that facilitates the people in the formal watches. There are also other brand which are having different price ranges that people can also intend to go for different watch companies. This company Titan has launched the various ranges of watches that all kind of people can afford to wear a Titan watch.

This company has Sonata, which is for very low range that Titan has to compete in the market. There are also many companies like HMT, Maxima, and Timex that are playing in this range with this company. The price range varies from 500 - 1000 so that all those who are in middle class and lower middle class income group, can buy this watch. Other companies are also good but the trust that titan have in the market had good image and brand quality.

For a range from 1000-5000, Titan have three different products namely:-

• Raga
• Edge
• Steel

These product are varies from like men and women which are suitable for people. The Raga is specially made for girls and women, Raga watches are specially designed for women so they have a very delicate look. The Edge is for men and are designed for the people who are working in the corporate world. They are also very attractive that these watches we can wear on formal as well as informal. The people had option to choose the different design in the Titan.

This range of Titan is specially made for middle and upper middle class. Steel is another product that Titan is having in this range which deals with the metallic look in watches. This also targets the people who opt for the formal watches.

There are few more companies like Citizen and Timex which are playing in the same segment. Citizen is some what expensive as compared to Timex. Its available in the range of 3000 – 5000. And Timex is available in the range of 1000 – 3000 but Timex is having much stylish look as compared to Citizen.

Titan also has collection in premium ranges so that those who don’t mind spending on the watches. This ranges varies from 10000-30000. The names of these are Xylys, Nebula the people who are very rich they can buy this watch. There are many other brands in these range like Raymond Weil, Tissiot, Omega, Rado and Logines these are came in the market but nobody knows about the Xylys and Nebula because Titan had not named in their international market for heavy ranges. Other company have brand named in the market so that people tend to buy these watches with its name. The premium ranges had people not trust in market.

This company had also launched the sporty watches that named Fastrack which are very good in their sporty look. The teenager and youth are very much crazy about this brand of watch because in this range they are very famous. These company launched the ranges from 1000-2000 so that people can buy the product .In these people can buy timex also but there are not design in the watch.

There are ranges from 5000-10000 that have like Esiprit ,swatch ,Fossil, Giordiano, Dkny, Carrere , Tommy Hilfiger are various brand which are very high range and there should be who are not willing to buy a very high prices of watches. So the titan had doing research and find the brand which people can buy easily. These brand are of foreign which came into India and very costly to people. The sporty and fashionable watches are had huge collection of in the market.

There are also premium ranges in the watch have that 30000 that for who can spent lavishly on the watch. There should be a lot pf brand in these like we had a Tag Heuer , Hugo Boss C, Dior that have from foreign name and they quality have good. There are those people who are very rich in the income sources.

The company titan not found the product very costly in the sporty watches so that there should be not one people can buy in the market. So these company had not brought these costly product in the market.

Industry Volume Grown Significantly

There should be in 1997-98 the mass market the people would be from income has low there should be the ranges up to 400 which there are people about 7.5 million those who buy these watch are found in Chinese market. There are 400-1000 ranges that about 9.5 million people are buy these watch. There are middle class where people can buy that watches that ranges 1000-5000 that people about 3.5 million in the market. In luxury market there are people having high income about 5000 those people have total about 0.015. These are found in the watch like tissiot.

In 2001-2002 the range of 400 can buy many people are about 9.5 million. There are low level income about 400-1000 are range and buy about 12 million watches like sonata. There are middle income about 1000-5000 the people about 3.7 million and preferred like titan, spirit .swatch etc. There are about luxurious watches there are tissiot, omega etc which people can afford to buy.

In 2006-07 there should be people of buy range of 400 because the net disposable income increases. In range of 400-1000 people increase sales .there should be a people who opted 3.7 million who going for the range of 1000-5000 and 0.22 million people can buy the luxury watches.

There are watches sold in 1997-98 are approx are 21 million and in 2001-02 there are increase about 25 million and in 2006-07 is the number of pieces sold is 35 -40 million.

Watch Brand

The company has earned revenue of Rs 6100 because of good brand quality and image. There are other company like Timex that earned revenue of about 500in the market. There are Kamla Dials has earn about 200 revenue in the market.

There are HMT who have earned about Rs 100 million and other company that earned about 50 million in the market. So we know that titan had good name in the market.

SWOT ANALYSIS

STRENGTHS

Ø Wide Range of Products: Titan industry limited produces over 2000 designs and 116 new products

Ø Easy Availability: The watches are easily available in urban, semi urban, as well as in rural areas. The distribution is done in following two ways:

· Exclusive- World of Titan.

· Multi Brand Outlet- Time Zone.

Ø Large and Varied Segment: Titan says that “a watch for every occasion and for every one”. Titan has targeted almost every segment of customers with respect to Demography, Geography, Psychographic and Behaviour.

Ø Wide Range of Price: Titan offers a very vast range of price varying from Rupees 400.00 and up to Rupees 12.00 Lakhs.

Ø After Sale Services: In every outlet there is a section of after sales service Titan gives one year guarantee on every watch

WEAKNESS

Ø Titan doesn’t give emphasis on the growing affluent class in the country. The watch market for this class exists in India and is growing with the participation of foreign brands viz. Swatch, Giordano, Fossil etc. Recently Titan launched its product named “Xylus” for this segment.

OPPURTUNITY

Ø Titan has a strategic alliance with ITC e-choupal. This alliance can lead to further rural market penetration with its less than Rs. 400 range. Also it is noted that 70% of Indian population is from rural areas.

Ø Titan has an overall market penetration rate of about 3% only.

THREATS

Ø Saturation of the Watch Market: After the globalisation, Government liberalised the import rules and reduced the taxes on import of goods. This has lead to a spree of global brands in India, thus greater competition and as result saturation in the watch market.

Ø Growing Unorganised Segment: The major threat is from China, because China has been dumping huge volume of its cheap watches into the Indian Market. These watches are readily available at rail platforms, roadside hawkers and other public places.

Supply Analysis of Titan Industries Ltd.:

Titan is the largest player in the watch market it is acquiring around 69% of watch market. This is possible because of the extensive distribution network which TIL is having in India. From yeas Titan is running its business with local watch retailers. In this long run they further decided to start their own extensive show rooms where their customer would find only Titan variety. These show rooms are called as “World of Titan”, which are present in all big cities through out the country.

Presence of Titan watches in the country is as follows

1. Retailer: - Titan is having around 10000 retailers and dealers present in around 2300 towns throughout the country.
2. World of Titan:- Titan is having around 207 Company outlets and franchisees in around 105 cities.
3. Time Zone: - These are the multi brand showrooms. There are 129 stores in 99 towns.
4. Service centres: - Titan is having 679 service centres in 330 towns for which are dealing with warranty claims and other repair work.

Demand Analysis

The Demand analysis of the company is nothing but the analysis of the sale and the market share that company is having. We did two different surveys, first is of retailers and second is of consumers.

In retailers survey we visited different showrooms of watches. Following graph shows the total demand of Titan watches at different places.

In this two showroom were selling watches of all brands, and remaining were only dealing with Titan Watches. We collected Data about no of watches a shop sell in one month for different companies like Titan, Sonata, Fastrack, Timex, Citizen. We took an average of this sale of different shop to find avg. sales. Following graph shows monthly sale of watches of above companies

In the above graph we see sale of Titan is highest with 68.88% of total, next is Timex with 13.3% and then Citizen with 3%, and remaining area is acquired by other companies. This graph shows the Demand of titan watches in market.

But as we know there are different brands available in the market under the heading of Titan. The demands of these different brands in Titan are as shown in the following graph.

We did a survey at different places like Sangli, Nashik, Navi Mumbai, Mumbai etc. and we get increase in the sales in every next place respectively. While searching for the reason we came to know that, in every next place the per head capita of the place goes on increasing that is the change in demand with respect to the change in the income of the customer, which is nothing but the Income elasticity of demand. Following graph shows the income elasticity of demand.

Here we can clearly see that as the income of the customer changes the demand goes on increasing. In Sangli which is relatively small city the demand is less compared to Nashik which is better than Sangli and Bandra which is having the highest income and correspondingly highest demand.

In the second survey we asked three different questions to 100 people which are selected randomly. So they are of different age, gender, income, place etc. so we think they represent the real population. The first question asked to them was

1. Do you have any of the following watch?

a. Titan

b. Sonata

c. Fastrack

d. Xylys

e. Other

According to the answers we have prepared a pie chart as follows

This pie chart shows out of 100 people 30 use Sonata, 24 Fastrack, 22 use Titan, only one person use Xylys, 23 use other watches than this. So this is the true Market share that titan is having according to the customer’s survey.

The next question which we asked was

2. If you are given a chance to buy a watch which will you prefer?

a. Titan

b. Timex

c. Not Fixed

The answer which we get of this question gives the future demand for Titan and Timex. This is shown in the following graph

This means in the future also the demand for Titan watches is going to be the same which is near to 57%. Where as Timex is 23%.

The third question which we asked was related to the prise of the watch.

3. How much you are ready to spend on a watch.

a. below 400

b. 400- 1000

c. 1000-3000

d. Above 3000

The answers are tabulated in the following graph

Now this graph shows that how the demand varies with varying prise. Up to 400 people go for unorganised market so that is the very important competitor which affects the demand in that segment. And then onwards the demand decreases with increase in prise, which is called as the prise elasticity of demand.

Demand Forecasting:

Some of the factors that determine the demand for the product in the future are Company image, past performance and future plans etc.

Company Image:

For Titan the company image is very much popular as Tata is the parent company and in India Tata products are very much trusted by the people. So from the image of the company we can say that they are going to have great future.

Past performance:

As we have already seen the growing trend in the sales of the company. In last two to three years company has shown tremendous growth. Hence seeing at the past performance of the company we can say that its growing at good rate and they will try to maintain it in the future.

Future plans:

Company has mentioned or estimated the growth till the year 2010. Some of the estimations are as follows:

In the above graph company has mentioned their expectations for the year 2010. There are basically four segments in the graph:

Ø Titan time product segments:

In the product segment they have divided it in four levels as per their economic levels i.e.

§ Below Rs.400 – Mass level

§ Between Rs.400-1000 – Economy level

§ Between Rs.1000-5000 - Mid upper level

§ Above Rs.5000 – Premium level

They have divided it in these levels to differentiate the market according to the income group.

Ø Estimated size – 2010:

According to the different product segments they have given the estimated size for volume of the products in units, volume in rupees and share volume.

§ For Mass Level: company is expecting the product volume of 5 million worth Rs.19 billion contributing 40% of the share of the market.

§ For Economy level: company is expecting the product volume of 17 million worth Rs.8 billion contributing 36% share in the market.

§ For Mid upper level: company is expecting the product volume of 10.6 million worth Rs.16 billion contributing the 22% share in the market.

§ For Premium level: company is expecting the product volume of 1 million worth Rs.3 billion contributing 2% share in the market.

Ø Estimated volume growth:

As per this estimation there will be 5%-7% growth in the volume of the Mass level products, For Economic level there will be 13%-16% growth in the volume, for Mid upper level there will be 3%-5% growth in the volume and for Premium level there will be 25%-35% growth in the volume.

Here there is a high growth in the volume of watches for Premium level because there is not much production by any company for these kinds of watches but as the level of disposable income of the people is increasing there will demand for these products so they need to produce this at high level too. Whereas, for the Mid upper level; there will be low increase as there is already in high demand and many company is already producing these kinds of watches at high level.

Ø Competing Brands:

§ Mass Level: for Mass level company does not have any brand product but as announced by the Ratan Tata that after the successful launch of the Nano car he is planning to launch the watch worth Rs.100. for the moment only grey market is having share in this level.

§ Economy Level: for economy level company is having brands like Sonata and Fastrack and their competitive brands are HMT, Timex, Maxima etc.

§ Mid upper level: for mid upper level company is having some of the brands like Titan, Steel, Edge and Raga and their competitive brands are Citizan, Timex and Swatch. As we can see that company is having good number of brands for this level as our most of the Indian people fall under this category. So this is the main level at which company can concentrate more to increase the demand level.

§ Premium level: for premium level company has the brand Xylys and the competitors are many like Fossil, Calvin Klein, Espirit etc. a moderate level of growth is expected in this level as the peoples disposable income is increasing and people now considering the watches as a part of style and status.

Apart from this company has also given the estimation for their revenue till the year 2010 through the following graph:

In the above graph company has considered three cases for rise in the revenue of the company…

Optimistic:

If company goes with very positive attitude expecting there will not be any problems than there revenue for the future will be

Years	Revenue (Rs. In bn)
2008	9.8
2009	11.14
2010	13

Our Estimation:

Company has given their own estimation taking into consideration their plans i.e. they are very keen in launching new brands every two months there revenue will be

Years	Revenue (Rs. In bn)
2008	7.5
2009	8.5
2010	10

Normal:

They have also estimated the normal growth in their revenue giving consideration to some of the future uncertainties. As the normal estimation there revenue will be

Years	Revenue (Rs. In bn)
2008	7.2
2009	8
2010	9

Conclusion

• From the above study we understood how this company has evolved from time to time. They grow themselves as brand and created a brand image in peoples mind.

• We have also seen what different threats a company can have and what strategy they have adopted to survive in the market. We have also seen how to form an effective distribution network.

• While doing the market survey we study the price elasticity and the income elasticity of the demand. Looking at the demand the company is forecasting itself to grow tremendous in the future

• Needless to talk about the peoples faith and the companied goodwill, we too see the companies prosperous future