PRESENTATION ON

INTERNATIONAL
MARKETING
Export of Titan wrist watch to China

Presented by: Ankit Patel

Presented to : Prof. Jitendra Sharma
Flow of Presentation

 History
 Geographical settings
 Social institution
 Business customs & practices
 Religion and aesthetics
 Language distribution
 Economical analysis
 Developing Marketing plan
History and Culture

 Early China

 Chinese civilization originated in various regional centers

along both the Yellow River and the Yangtze River valleys in
the Neolithic era, but the Yellow River is said to be the Cradle
of Chinese Civilization. The writtenhistory of China can be
found as early as the Shang Dynasty (c. 1700 – c. 1046 BC)
 The origins of
Chinese culture, literature and philosophy developed during
the Zhou Dynasty (1045-256 BC).
 The conventional view of Chinese history is that of alternating
periods of political unity and disunity, with China
occasionally being dominated by Inner Asian peoples
 Most of whom were in turn assimilated into the Han
Chinese population. Cultural and political influences from
many parts of Asia, carried by successive waves
ofimmigration, expansion, and cultural assimilation, are part
of the modern culture of China.
Geography

 Land boundaries: total: 22,117 km

 Coastline: 14,500 km

 Maritime claims: territorial sea: 12 nm contiguous zone: 24 nm

exclusive economic zone: 200 nm continental shelf: 200 nm or to
the edge of the continental margin
 
 Climate: Current Weather extremely diverse; tropical in south to
subarctic in north

 Terrain: mostly mountains, high plateaus, deserts in west; plains,

deltas, and hills in east
 Natural Resources:
 coal, iron ore, petroleum, natural gas, mercury, tin, tungsten,
antimony, manganese, molybdenum, vanadium, magnetite,
aluminum, lead, zinc, uranium, hydropower potential (world's
largest)
Government

 Type: Communist party-led state.

Constitution: December 4, 1982; revised several times, most
recently in 2004.

 Political parties: Chinese Communist Party, 76 million

members; 8 minor parties under Communist Party supervision
ECONOMY

 Nationality: Chinese
Population (July 2010 est.): 1,330,141,295
Population growth rate (2010 est.): 0.494%
 Age Structure:
 0-14 years: 19.8% (male 140,877,745/female 124,290,090)
 15-64 years: 72.1% (male 495,724,889/female 469,182,087)
 65 years and over: 8.1% (male 51,774,115/female
56,764,042) (2010 est.)
 Birth Rate: 12.17 births/1,000 population (2010 est.)
 Death Rate: 6.89 deaths/1,000 population (July 2010 est.)

 Life expectancy at birth:

 total population: 74.51 years
 male: 72.54 years
 female: 76.77 years (2010 est.
CONT…

 GDP (2009): $4.814 trillion (exchange rate-based).

 Per capita GDP (2009): $3,678 (exchange rate-based).
 GDP real growth rate (2009): 8.7%.
 Exports (2009)--$1.194 trillion: electrical and other
machinery, including data processing equipment, apparel,
textiles, iron and steel, optical and medical equipment.
 Imports (2009)--$921.5 billion: electrical and other
machinery, oil and mineral fuels, optical and medical
equipment, metal ores, plastics, organic chemicals. 
Religion

 The five state-sanctioned “patriotic religious associations” are

Buddhism, Taoism, Islam, Catholicism, and Protestantism.
 100 million Buddhists in China.
 There are 20 million Muslims, 20 million Protestants, and 5.3
million Catholics.
Chinese Business Etiquettes

 Conservative suits for men with subtle colors are the norm.
 Women should avoid high heels and short sleeved blouses.
The Chinese frown on women who display too much.
 Subtle, neutral colors should be worn by both men and
women.
 Casual dress should be conservative as well.
 Men and women can wear jeans. However, jeans are not
acceptable for business meetings.
 Revealing clothing for women is considered offensive to
Chinese businessmen.
Behavior

 Do not use large hand movements. The Chinese do not speak

with their hands. Your movements may be distracting to your
host
 Personal contact must be avoided at all cost. It is highly
inappropriate for a man to touch a woman in public
  Do not point when speaking
  To point do not use your index finger, use an open palm.
  It is considered improper to put your hand in your mouth.
  Avoid acts that involve the mouth
  Gift giving is a very delicate issue in China
Reason for Choosing

 Lower price and good quality than chinese market.

 The size of the watch market currently is estimated to be
around 40 to 45 million pieces annually.
 Titan’s portfolio comprises of products from Rs.295 –
Rs.45000. Many competitors do not go beyond a certain range
or do not come down below a certain range. 
History of wrist watch

 Today, a wristwatch is considered as much of a status symbol

as a device to tell time
 Walk into the boardroom of any Fortune 500 company and
you’re likely to see dozens of prestigious wristwatches
 Very few companies produced watch in quantity, with the vast
majority of those being small ladies’ models
 Change started in the nineteenth century, when soldiers
discovered their usefulness during wartime situations
 In 1906, the evolution of wristlets took an even bigger
 Later on they came up with use of leather covers, snapped into
place over the watch
 The success of the wristwatch was born out of necessity
About company
About Titan

 Industry: Watches
 Founded:1987
 Headquarter: Bangalore, India
 Area served:4 continent and 40 countries. India and other
countries esp. Middle east, Asia Pacific and Africa
 Key people:Xerxes Desai,Founder
 Products:Watches, Jewellery,Eyewear & Precision
Engineering
 Employees:3,000
 Parent:Tata Group
 Website:www.titanworld.com
SWOT ANALYSIS FOR TITAN

Strength:
 1. Style:
 Titan first introduced the ‘style’ concept in India and
projected the watch as a fashion accessory. Nowadays style is
a very much evident factor among the youth. So, Titan makes
the peoples life more glorious by making stylish wristwatch.
 2.Models:
 Titan offers the best and the biggest range to customers to
choose the watch of their choice with an affordable price. It
offers about 14 different names with about 1000 plus different
varieties with a watch for literally everyone.
  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.
 Contribution of owned brands and retail. The profit is
accounted by being
 in the retail space which is booming.
 Watches are available with popular functions like dates, multi
 functionalities and chronographic.
 Guarantee and warranty for certain period is ascertained to the
customers
weakness

 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.
  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.
 Globalized:
 The company is not sufficiently globalized in spite of being the market
 leader in the Indian soil.
Opportunities

 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.
 Gifting concept:
 Titan started as a brand which was associated with gifting and
relations.
 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
Threats

 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.
 Premium segment:- As in premium segment Titan is getting
threats from reputed international
 brand such as Espirit, Swatch and Citizen.
 Mobile:
 Nowadays people can get the time and the other feature on
mobile phone.
 So, the need of wristwatch is in decreasing trend
Competitors to TITAN in India

 HMT 
 RADO 
 CASIO 
 SEIKO 
 ESPRIT 
 CITIZEN 
 CIZER
 MAXIMA
Competitors in China

 SWATCH 
 CARTIER 
 GIORDANO 
 LONGINESS 
 MAXIMA QUARTZ 
 IMFQ-INDIAN MADE FOREIGN QUARTZ 
 BVLGARY 
 RADO
Exchange rate

 Saturday, December 18, 2010

 1 Chinese Yuan Renminbi = 6.94370 Indian Rupee 

1 Indian Rupee (INR) = 0.14402 Chinese Yuan Renminbi
(CNY)
Launching Model

 Indian Rate :-

 Insignia Gents Rs.3750 to Rs.7750  

Insignia Ladies Rs.1600 to Rs.7500

 Chinese Rate :-

 Insignia Gents CYN. 700 to CYN.1120 

Insignia Ladies CYN. 350 to CYN.1100
 
Pricing strategy

 Titan’s primary pricing objective is to kill Competition.

 Being an Indian manufacture and infusing the advantages of

the China market with the dynamics of the western market the
company will carve itself a place difficult to achieve by
players present in Chinese market.
Segmentation Strategy

 After carrying out an in-depth market study, Titan identified

three distinct market segments for its watches. The segments
were arrived at using benefit and income level as the bases.

 The first consisted of the high income/ elite consumers who

were buying a watch as a fashion accessory not as a mere
instrument showing time. 
 The next segment consisted of consumers who preferred some
fashion in their watches but to them price did matter.

 The third segment consisted of the lower-income consumers

who saw a watch mainly as a time-keeping device and bought
mainly on the basis of price. 
Target Market

 Target City: Shanghai & Beijing.

 Urban Population: 9,495,701 & 7,296,962
 Total Retailers: 700 & 900

 Age : < 20 years

 Income : Middle & Higher middle class
 Target market: 50% of the retailers customers.

 Target Retailers: Top 800

 I assume that every retailer has to sell minimum 400 watches

per annum.
 Profit Expectation
(for men Watches)
35
 Profit Expectation
(for women watches)
36
Revenue Generation

 Total quantity sold = 1,60,000 + 1,60,000

= 3,20,000

 Total Profit = 3,20,000 * 50

= 1,60,00,000 CHF

 Profit in INR = 1,60,00,000*6.94

=11,10,40,000 Rs.
 Finance
38

Expenses Amount

Warehousing cost 2,00,000

Insurance 8,00,000

Distribution expenses 40,000

Shipment cost 80,000

Total Cost 11,20,000

Export Duty 10%

THANK YOU