ankit im ppt

8/7/2019 Ankit IM PPT

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PRESENTATION ON

INTERNATIONAL MARKETING

Presented by: Ankit Patel

Presented to : Prof. Jitendra Sharma

Export of Titan wrist watch to China


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Flow of Presentation

History

Geographical settings

Social institution

Business customs & practices

Religion and aesthetics

Language distribution

Economical analysis

Developing Marketing plan


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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 Cradleof Chinese Civilization. The writtenhistory of China can be

found as early as the Shang Dynasty (c. 1700 c. 1046 BC)


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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 alternatingperiods of political unity and disunity, with China occasionally

being dominated by Inner Asian peoples


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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 modernculture of China.


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Geography

Land boundaries: total: 22,117 km

Coastline: 14,500 km

Maritime claims: territorial sea: 12 nm contiguous zone: 24 nmexclusive economic zone: 200 nm continental shelf: 200 nm or to theedge 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


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Natural Resources:

coal, iron ore, petroleum, natural gas, mercury, tin, tungsten,

antimony, manganese, molybdenum, vanadium, magnetite,

aluminum, lead, zinc, uranium, hydropower potential (world'slargest)


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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


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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/female56,764,042) (2010 est.)


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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.


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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, metalores, plastics, organic chemicals.


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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 5.3million Catholics.


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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 toChinese businessmen.


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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 highlyinappropriate 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


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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.

Titans 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.


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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

youre 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


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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


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About company


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About Titan

Industry: Watches

Founded:1987

Headquarter: Bangalore, India

Area served:4 continent and 40 countries. India and othercountries esp. Middle east, Asia Pacific and Africa


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Key people:Xerxes Desai,Founder

Products:Watches, Jewellery,Eyewear & Precision Engineering

Employees:3,000

Parent:Tata Group

Website:www.titanworld.com


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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 verymuch evident factor among the youth. So, Titan makes thepeoples 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. Itoffers about 14 different names with about 1000 plusdifferent varieties with a watch for literally everyone.


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Exclusive products:

Today Titan holds the pride for say that its products both withinthe countryand internationally run in battle position. Its EDGE isthe slimmest watch inthe world position.

Contribution of owned brands and retail. The profit isaccounted 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


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weakness

Pricing:

The average price of Titan in mid-price segment is very high than theothercompetitors. Average price for Titan is Rs.1100 while the price forHMT isRs.550. In the mid-price segment the company is not performing upto themark due to the lack of choice of consumers.

Market share:

As the average price of Titan wristwatch is far more than theothercompetitor, Titan has less market share. The market is moredemonstrate bymiddle class people and for them Titan is quite costly.Among 75% marketshare is in mid-segment and Titans 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.


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Opportunities

Seasonality:

At the time of festival, like Diwali Titan promotes Nebula, Bandhanbecausethere is demand for the products. - Gold watches and pairsare used duringthe wedding occasions. The fast track brand ispromoted in month of June-August when schools and colleges re-opens.

Gifting concept:

Titan started as a brand which was associated with gifting andrelations.

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 of25% on thepurchase of a brand new, stylish and technologicallyadvanced watch fromTitan


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Threats

Competitor:

Lots of foreign brands are entering in our country with theirbrandedwatches. As the removal of quantitative restrictions onimport watches leadto a threat to Titan.

Premium segment:- As in premium segment Titan is gettingthreats from reputed international

brand such as Espirit, Swatch and Citizen.

Mobile:

Nowadays people can get the time and the other feature onmobile phone.

So, the need of wristwatch is in decreasing trend


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Competitors to TITAN in India

HMT

RADO

CASIO

SEIKO

ESPRIT

CITIZEN

CIZER

MAXIMA


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Competitors in China

SWATCH

CARTIER

GIORDANO

LONGINESS

MAXIMA QUARTZ

IMFQ-INDIAN MADE FOREIGN QUARTZ

BVLGARY

RADO


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Exchange rate

Saturday, December 18, 2010

1 Chinese Yuan Renminbi = 6.94370 Indian Rupee

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


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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.1120Insignia Ladies CYN. 350 to CYN.1100


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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.


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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 whosaw a watch mainly as a time-keeping device and bought

mainly on the basis of price.


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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


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Target market: 50% of the retailers customers.

Target Retailers: Top 800

I assume that every retailer has to sell minimum 400 watches

per annum.


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Profit Expectation

(for men Watches)35

Product Price :- 700 (CHY) (Average cost)

Product Cost :- 650 (CHY) (Per Product)

Average profit margin :- 700 - 650 = 50 CHY 50 CHY Per Product

Estimated Quantity Sales: 1,60,000 watches


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Profit Expectation

(for women watches)36

Product Price :- 350 (CHY) (Average cost)

Product Cost :- 300 (CHY) (Per Product)

Average profit margin :- 350 - 300 = 50 CHY 50 CHY Per Product

Estimated Quantity Sales: 1,60,000 watches


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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.


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Finance

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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%


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THANK YOU

ankit im ppt

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