Post on 08-Apr-2018
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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
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%
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THANK YOU