ORGANISATION BEHAVIOUR 4

Assess the relationship between motivation theory and the practice of management (3c)

    The relationship between the motivation theory and the practice of management are many. For instance needs based theory provide framework for considering general approaches to making the organisation as a whole supportive of people aspiration at work. There are two elements to this, the reward system,  i.e the pay and condition of services which are available to employees and second the job itself how meaningful and interesting the job is.

     Again if we should look into Herzberg two-factor theory where he differentiate between the satisfy factors and dissatisfy factor. His main aim is about the high performance work system and the staff empowerment. Herzberg theory has helped the practice of management to know what they can do to make their workers works to their potentials.

    In the case of expectant theory which is also known as vroom which believes motivation is essentially extrinsic which means making decision on how we can work hard depending on the analysis of cost and the reward we will receive. From this we can see that there are direct link to the practice of management because the theory has shown to us if we do the right things we will achieve our goals.

    From what i have said above we can see that there are strong relationship between motivation theory and the practice of management.

ORGANISATION BEHAVIOUR 3

EXPLAIN THE DIFFERENT MOTIVATIONAL THEORIES AND THE APPLICATIONS WITHIN AN ORGANIZATIONS (3B)

There are three major motivational theories which are

·        The theory of Maslow hierarchy of needs

·        The Herzberg motivation-hygiene theory

·        The expectant theory.

·        Maslow hierarchy of needs- This is the type of motivational theory which believes that employee are motivated by way of meeting their needs so also Maslow believes that the needs of the people are arranged in order of importance. The first level of the pyramid deals with the physiological needs and if all this needs are not met Maslow believes that the next level of the pyramid will not be thought about but once it is met the top level of the pyramid that is associated with the psychological needs will be make a priority. Maslow also let us believes that if the physiological, safety, and esteem are not met the physical indication might not show on the body but the individual will be feeling tense and anxious, Maslow also made us believes that the only real motive all other motives being its various form is to realized ones maximum possibilities and potentials and this self-actualization and this can be possible after the lower level needs have been met.                                                                                   There are a lot of criticism for Maslow theories, they believe that since every individual have different needs and different level of meeting their needs they said there is no possible way to clarify ever changing needs as society changes.                                                                                               It is very difficult to apply this Maslow theory in present work context since it is the instrument of the likes of recognition, status and so on and as a result of this the role of pay is problematic. It is also difficult to offer self actualisation to employee since its nature is highly subjective.

·        The Herzberg motivation-hygiene theory- This is also known as two factor theory. According to Herzberg two factor theories he believes individual are influence by two factors he called the satisfaction and dissatisfaction factor.                                                                                                                                                                           Satisfaction factor- By this Herzberg believes that there are some factors that increases satisfaction but have little or no effect on dissatisfaction and this is primarily the result the result of a motivator factor and in the case of dissatisfaction factors, these are factors that if not present or inadequate have little or no effect on long term satisfaction and this are also the primary result of hygiene factors. Herzberg list motivator factors to include

·        Achievement.

·        Recognition.

·        Work it-self.

·        Responsibility.

·        Promotion.

·        Growth.                                                                                         

While the hygiene factors include

·        Pay and benefit.

·        Company policy and administration.

·        Relationship with co workers.

·        Physical environment.

·        Supervision.

·        Status.

·        Job security.

·        Salary.

In general what Herzberg was saying is that if managers does not want unpleasantness at work and also to deny unfair treatment the hygiene factors is necessary and also management should not only stop at this if they want positive motivation but also given attention to motivator factors.

There are some critics of Herzberg two-factor theory and one of the criticism is that the theory has only limited application to unskilled workers by this it means that the theory is only applies to people with unskilled, boring job and also limited in its application.

No matter the amount of criticism Herzberg two-factor theory has helped organisation in drawing their attention to the importance of job design in order to bring about self development and job enrichment.

The application of Herzberg two-factor theory can be seen clearly in an organisation because it is this factor that drew the attention of organisation to the importance of job design and job enrichment.

3. Vroom theory- This motivation theory is also called expectancy theory and this means the will of an individual motivation to do something depends on the level in which the individual expects the result of his efforts,  if achieved successfully it will contribute towards his goals or need. Vroom made us believe that the strength of an individual motivation is a product of two factors, the strength of his preference for a certain outcome and also the past experience.

There are not many critics of vroom theory except that there are difficulties in some of the concept involved.

The application of vroom theory within an organisation is a bit clear compare to other theories. In an organisation we can see managers rewarding individual according to their performance so the application of this theory is very easy.

 

 

 

ORGANISATION BEHAVIOUR 3

EXPLAIN THE DIFFERENT MOTIVATIONAL THEORIES AND THE APPLICATIONS WITHIN AN ORGANIZATIONS (3B)

There are three major motivational theories which are

·        The theory of Maslow hierarchy of needs

·        The Herzberg motivation-hygiene theory

·        The expectant theory.

·        Maslow hierarchy of needs- This is the type of motivational theory which believes that employee are motivated by way of meeting their needs so also Maslow believes that the needs of the people are arranged in order of importance. The first level of the pyramid deals with the physiological needs and if all this needs are not met Maslow believes that the next level of the pyramid will not be thought about but once it is met the top level of the pyramid that is associated with the psychological needs will be make a priority. Maslow also let us believes that if the physiological, safety, and esteem are not met the physical indication might not show on the body but the individual will be feeling tense and anxious, Maslow also made us believes that the only real motive all other motives being its various form is to realized ones maximum possibilities and potentials and this self-actualization and this can be possible after the lower level needs have been met.                                                                                   There are a lot of criticism for Maslow theories, they believe that since every individual have different needs and different level of meeting their needs they said there is no possible way to clarify ever changing needs as society changes.                                                                                               It is very difficult to apply this Maslow theory in present work context since it is the instrument of the likes of recognition, status and so on and as a result of this the role of pay is problematic. It is also difficult to offer self actualisation to employee since its nature is highly subjective.

·        The Herzberg motivation-hygiene theory- This is also known as two factor theory. According to Herzberg two factor theories he believes individual are influence by two factors he called the satisfaction and dissatisfaction factor.                                                                                                                                                                           Satisfaction factor- By this Herzberg believes that there are some factors that increases satisfaction but have little or no effect on dissatisfaction and this is primarily the result the result of a motivator factor and in the case of dissatisfaction factors, these are factors that if not present or inadequate have little or no effect on long term satisfaction and this are also the primary result of hygiene factors. Herzberg list motivator factors to include

·        Achievement.

·        Recognition.

·        Work it-self.

·        Responsibility.

·        Promotion.

·        Growth.                                                                                         

While the hygiene factors include

·        Pay and benefit.

·        Company policy and administration.

·        Relationship with co workers.

·        Physical environment.

·        Supervision.

·        Status.

·        Job security.

·        Salary.

In general what Herzberg was saying is that if managers does not want unpleasantness at work and also to deny unfair treatment the hygiene factors is necessary and also management should not only stop at this if they want positive motivation but also given attention to motivator factors.

There are some critics of Herzberg two-factor theory and one of the criticism is that the theory has only limited application to unskilled workers by this it means that the theory is only applies to people with unskilled, boring job and also limited in its application.

No matter the amount of criticism Herzberg two-factor theory has helped organisation in drawing their attention to the importance of job design in order to bring about self development and job enrichment.

The application of Herzberg two-factor theory can be seen clearly in an organisation because it is this factor that drew the attention of organisation to the importance of job design and job enrichment.

3. Vroom theory- This motivation theory is also called expectancy theory and this means the will of an individual motivation to do something depends on the level in which the individual expects the result of his efforts,  if achieved successfully it will contribute towards his goals or need. Vroom made us believe that the strength of an individual motivation is a product of two factors, the strength of his preference for a certain outcome and also the past experience.

There are not many critics of vroom theory except that there are difficulties in some of the concept involved.

The application of vroom theory within an organisation is a bit clear compare to other theories. In an organisation we can see managers rewarding individual according to their performance so the application of this theory is very easy.

 

 

 

ORGANISATION BEHAVIOUR 2

COMPARE THE  DIFFERENT APPROACHES TO MANAGEMENT AND THEORIES OF ORGANISATION     USED BY TWO ORGANISATION(2B)

There are different organisational theories and these include the classical approach, the person approach, the system approach and the contingency approach and different organisation apply different approach. I will now compare the approach being used by a public organisation in the name of travel for London a transportation service provider and a private organisation in the name of Ethames Graduate School an educational services provider.

·        Travel for London(TFL)- This is a public organisation a provider of transport services and approach being used by this type of organisation is classical approach where the style of management is bureaucratic, the policy, rule and regulation are being set down to follow employee initiative is not needed how the job should be done is already laid down and as a result of this it has help them in maintaining some level of consistency, from one section or region of the organisation the same process is followed and when there is consistency there is efficiency compare this to many private organisation adopting different approaches like ethames graduate school an educational services provider adopting a system approach and because this is educational sector organisation there are a lot of stake holders like the principal, the lecturer, the student and the non academic staff e t c and all this group of people need to be consult before most of the decision will be made, contribution of all these group is allowed compared to public organisation like the travel for London where no contribution is allowed. From the top to the lower level of ethames graduate school there are some level of autonomy, lecturer are given autonomy to use their own initiative to deal with the student and as a result of this it allowed togetherness within the organisation and also reduce tension.

From what i have said above we can see that the classical approach is the best for a public organisation like the travel for London because it help them in attaining some level of consistency and efficiency but non contribution from the staff might make them not important and the employee might not give their best and in the case of ethames graduate school with the system approach where all the stakeholders are involved in decision making, it has help them in forging ahead as one and also make everybody to feel important within the organisation though sometimes allowed initiative from all stakeholders can sometimes delay decision making but also sometimes involvement of the stakeholders must be allowed to avoid tension. In general most of the organisation either public or private organisation always adopted more than one approaches depending on the situation around them.

 

ORGANISATION BEHAVIOUR

Compare and contrast different organizational structure and culture?(1A)

     We will need to know what we mean by organizational structure and culture before we can compare them.

     Organizational structure can be define as how the management and the employee relate together within an organization in other to achieve the aim and objective of the organization. Organization culture can be define as the rules that guide the conduct of the employee within an organization, by this I mean the way every employee should go about their job. In an organization, decision need to be taken  on various issue and when decision are made there are important factor that will be given some responsibilities by the management structure. Both organizational structure and culture actually work together I mean they are interwin, it is one that give rise to another. It is the structure that actually defined the culture. There are four types of organizational structure.

     ENTERPRENEURAL STUCTURE: This is type of structure where instruction actually come from the centre, it is a sort of centralised structure and the figurehead is the most powerful  and everybody do as he says, any instruction that comes from the centre you have to do this type of organizational structure actually deals with absolute power from the centre. It is this type of structure that gives birth to power culture. You can find this type of structure in small organization.

     POWER CULTURE: In entrepreneur structure, power culture is the order of the day the figurehead with the absolute power uses the power to control his employee within an organization without any objection from the employee to his order.  This type of culture can be found within an enterpreneural structure.   

   BUREACRATIC STRUCTURE: This is the type of organization structure where people are given role to perform, there is power sharing or distribution within the organization, people are given a responsibility and the type of culture you find in this type of organizational structure is role. This type of culture can be found within government organization.

      ROLE CULTURE:  This is a culture where people are given some level of responsibilities there is a role for people within the organization for it to achieve its objective. Role culture can be found with a bureaucratic structure.

                                                                                                                                                                                                                      

    MATRIX STRUCTURE: This is the type of organizational structure that brings people together to solve a task, employee are given the necessary things to work with in other to solve the task or project this organizational  structure deals with the skill and expertise of the employee. In this type of organizational structure only have to solve task to achieve the management objective and by this the culture within this type of organization will be task culture.

   TASK CULTURE: This is the culture within an organization that the employee had to solve some task to achieve the aim and objective of the organization. You find this type of culture in an organisation with matrix structure.

   INDEPENDENCE STRUCTURE: The people within this type of organizational structure are always on their own they only come together to make decision that affect everyone. Each person within this organizational structure had got their separate objectives and know-how.

  PERSON CULTURE: This is the type of culture that exist within an organization with independence structure individual within this structure are only for himself or herself and it is how the decision make will favour individual person. This is the type of culture that is common  with independent structure.

 

ANALYSE THE RELATIONSHIP BETWEEN AN ORGANIZATION STRUCTURE AND THE                   EFFECTS ON BUSSINESS PERFOMANCE (1B)                                                                                                                                                                   

   ENTERPRENEUR STRUCTURE AND POWER CULTURE: This is the type structure  where  power is centralised decision to the various department comes from the centre and the type of culture in this type of structure is person culture.

 This type of organization structure and culture can help business grow,  especially  in small organization where this type of structure and culture can be found, decision are taken at the right time for a right thing so also because employee are not involved in the running of the organization it make them think they are stooge of the figurehead and this can cause revolt and have negative impact on the business.

BUREACRATIC STRUCTURE AND ROLE CULTURE: This is type of structure and culture in which authority is distributed people within this type of organization are involved in decision making because people are given role to perform. The type of culture you find in this type of structure is role culture where people are given role and responsibilities for the organization to achieve its objective

This type of structure an culture is good for business because it allow for contribution and participation from the employee and this make them to feel part of the organization compare to entrepreneur structure where employee feel as stooge of the figurehead.

   MATRIX SRUCTURE AND TASK CULTURE: In this type of culture people who are very skilful and expert in a particular field are given a task to solve base on their skill in this type of structure people always deal with task culture.

This type of structure and culture is very good for business because it is only people who are very skilful and have the know-how about the task that are given  the opportunity to work on the task and this guarantee quality.

INDEPENDENCE STRUCTURE AND PERSON CULTURE: Unlike in matrix where people come together to form a task in this type of structure individual only come together to discuss an issue that affects them as a whole and any positive thing that comes of it is meant for the individual as person because everyone is on their own. This type of organization structure is good for the business because every individual that come together share common ground and this can help individual business.

ANALYSE THE FACTORS WHICH INFLUENCE INDIVIDUAL BEHAVIOUR AT WORK.(1C)

There are lot of factors that influence individual behaviour at work and this include

1 .Perception factor.

2. Attitudes.

3. The individual.

4. The group.

5. The organization.

6. The environment.

All these will now be discuss below.

·         Perception-This type of behavioural factor can affect individual at work ie the way individual view things. If an individual in an organization view things within the organization should be done in a different way from which is being done at the moment, it can affect the individual behaviour by not given his total commitment because such individual view things from different way and this can affect individual behaviour.

·         Attitudes-This can mean feeling of an individual within an organization towards certain things. If the attitudes of an individual in an organization is positive the individual behaviour at work will also be positive but if it is negative the individual behaviour will also be negative and this can affect individual behaviour at work.

·          THE INDIVIDUAL: This is a situation whereby individual within an organization think they should be seen as very important as the objective the management are trying to achieve. If any organization should see achieving their objective as the only thing they have to achieve and the employee are not integrate with the organization then there is possibility of conflict but when individual within an organization are well integrate with the organization it makes them to feel being part of the organization and this will make them to work effectively and efficiently.

·         THE GROUP: In every organization there are group and individual within an organization are member of one group or the other and the group member always influence themselves and this can influence the behaviour of individual within an organization. There also pressure from group member for them to perform and this can have influence over the behaviour of the individual member at work.

·         THE ORGANIZATION: The type of organizational structure being adopted by organization also have influence on individual behaviour at work, some organizational structure allow for employee contribution while some are not and this will have effect on individual behaviour at work.

·         THE ENVIROMENT: As the environment we are living are very dynamic things changes and as the things are changing organization too will change For instance in this ages of science where mode of operation of most organization are changing in other to keep pace with what is going on within the environment. As the operational system are changing the individual behaviour too will be changing.

 

Analyse How Organizational Theory Underpins Principle And Practise Of Organising                                               And Of Management.(2A)

   Organization theory support the principle and practise of organising and of management in many ways.                                                                                                        

There are four different approaches to management and these are

1. The classical approach
2. The human relations approach
3. The system approach
4. The contingency approach.

• The classical approach-this is the type of approaches that believe in the formal structure of an organisation they believe in work planning and organisation technical requirements and principal of management. This type of approaches place more emphases on bureaucratic setting of organisation and scientific management they pay more attention to job purposes compare to other approaches who place more emphases on people like the human relations approach.
• The human relations approach- this is the type of approaches that place emphases on social factors at work and the behaviour of employee. This approach believe in improving the welfare of the employee and so also this approach is an apostle of motivation to the employee and this can help in improving output. Again this type of approach is only human oriented and it does not take into consideration the purposes of the job at hand like in classical approach or the generality of the process of organisation or management like in the system approach.
• The system approach- unlike in the classical approach that place emphases on the work and the human relations approach that place its own emphases on the people, this type of approach actually see both work aspect and the human relations aspect as a system that is very important and one cannot work without the other that both the structural and the social factor have to work together for efficiency to be gain.
• The last approach that i will talk about is the CONTINGENCY approach that believes that no matter the type of approach you are applying you must have another one you can rely on if the first approach failed. In all organisation procedure you are using you must make sure you have another plan if that one should failed.

With all have said above we can see that all approaches are important and they can all be applying in solving organisation problem. 

 

STRATEGIC MANAGEMENT

EXECUTIVE SUMMARY

Titan watch is ranked sixth in the world and India number one watch producing company.

For every price segment Titan has got a model but they basically target three segment of the market which include

·         Low income segment

·         Middle income segment and

·         High income segment.

Titan market share in domestic market alone is 70% while it also held 60% in the organised market.

   The objective of Titan watch in the coming year is to increase its market share by 5% and also aim to increase company profitability by 10%. To achieve this aim of increasing its market share, Titan watch has laid down some marketing strategy to follow in order to beats its competitor and this include the marketing mix.

  Price:  Because both Titan competitor like the HMT and Maxima are doing good in the middle income segment where they hold 45% and 30% respectively, Titan watch has decided to reduce its price in this segment. Titan watch has also decided to bring some innovation into their product and at the same time adding creativity to their advertisement by showing importance of time to the mass.

Place: this is another market mix that Titan is using to beats its competitor by opening more show room in the rural area. Titan watch also uses its product affordability and availability as a strong selling point to beats its competitor. The company makes sure that all segment of the society is covered. For instance they launches  SONATA for the watch first time users and low income segment, Fast-Track for the young, Dash for the kids while the high income segment were made Regalia and Nebula

 

 

 

 Market share of the competitor are the following

HMT	19%
MAXIMA	13%
RADO	19%
CASIO	3%

 

The India watch market is estimated to be 25 million watches per year from this the domestic sales is said to be 6 million watches per year (www.thehindu.com). In this present scenario the rural segment is said to be diverse, the capturing of rural market on a large scale is the key success of the Titan watch and in this segment the range of Titan watch cost from Rs.495 to Rs.1200 and this model can be find available exclusively in Titan showroom and also mainly sold in India smaller towns.

  Though there are enormous challenges from competitors the company still remain the best and this is as a result of its good marketing mix so also the company ability to bring in new innovation to improve the product future.

   Titan watch has also done a lot to bring new revolution into the products model, style, features and pricing policies and as a result converting its weakness to strength and its threat to opportunity.

 

 

 

 

 

 

 

 

 

 

 

 

INTRODUCTION

Before Titan came to existence wristwatch market in India was a shabby market, people rely solely on imported watches it was Titan watch that brought revolution to this industry in India

   Tata group which is the parent company of Titan watch brand launched the company in 1987 when it discovered that there is potential consumer market for the product.

   Titan watch is a success story they offer classical design and quality product to the customer with advance technology. They also did a lot of effective marketing, rendered outstanding services and all these help the company to capture the market.

   In today`s wristwatch market in Indian, Titan has a model for every market and price segment, be it regional, rural and urban and also international.

 

• ENVIRONMENTAL ANALYSIS

Ø  Marketing Environment

v  Competitive forces

The following are the main Titan competitor in the wristwatch industry in India. While some are local others are international and they include

1. Domestic Competitors

                      I.        Rado watch

                    II.        Casio

                   III.        HMT

                  IV.        Maxima-quartz

2. International competitors

                      I.        Citizen

                    II.        Swatch

                   III.        Espirt

                  IV.        Seiko

Among all I have mentioned above only two of them are the main Titan competitors and they are

• Maxima-quartz-which its main strength target lies in the mid-price market but its weakness lies in the quality of its watches compared to that of Titan watch.
• HMT- this is state owned organisation and its main strength is its ability to offer its watches at a low price. HMT average price is said to be Rs.550 while that of Titan is Rs.1100.

The main weakness compare to that of Titan is that it has little varieties of wristwatches and also the attractiveness and quality cannot be compared to that of Titan.

 

Expectation from the competitors in relation to 4Ps. 4 Ps can be best be describe as the known way that marketing mix can be define, these are the choices firm have to make in the process of bringing their product and services to the market  

• Price: this all about the price of titan watch product compare to competitors own, so also it is about whether the customer are price sensitive. The expectations of the competitor in relation to Titan price will be as follows

Advantage

The whole market will be captured by competitor of mid-place segment because of the high price

Disadvantages

The market will be enjoyed more by the premium price segment competitor.

• Product- this is all about what does customer wants in this product, the needs it satisfy and the expectation of competitor in relation to their product is that

Advantage

The cost will increase as a result of increased in quality which in turn gives benefit to competitor. For example in the middle income segment of Titan watch that are not doing well if Titan decided to increase the quality of the watch in this segment it will increase the cost of producing the watch and the price will go up.

Disadvantages

Try to decrease the quality will result into competitor capturing the whole market.

• Place- this is all about where customers have to look for the product, accessibility of right distribution channel. The expectation  of competitors in relation to the place to buy Titan product is

Advantage

Having larger number of place of operation will weaken the competitor because for them to have larger showroom to sell their watch will mean incurring more cost.

Disadvantage

Having a lesser numbers of places of operations will lead to wipe out from markets.

• Promotion- this is all about how to get across to Titan target market with their marketing message and how does Titan want to reach its target, is it by above the line promotion like using of TV, billboards or radio or is it by direct marketing mailshot or through internet? The expectation of competitor in relation to the promotion of Titan watch is as follows

Advantage

There will be more market share as a result of increase in sales promotion which in turn will force competitors to do the same and as a result increasing the cost of competitor`s product which transfer into their product price being increased.

Disadvantages

Reducing sales promotion will give competitor benefits of taken over the market most especially the middle income segment which Titan are not doing well.

 

Industry Role

Since there are lot of competitor that exist in this industry and if there is any changes to any company marketing mix other company also implement changes to their own marketing mix for them to sustain competition and as a result of this the industry structure will be changing and in effect affecting the competitive forces in the industry.

 

Political Forces

Because of changing of government in India especially in 2004/2005, the government took some measure to develop the GDP by reducing the rate of cash reserves ratio (CRR) and also reducing inflation and all these steps had positive impact on Indian company so also Titan in order to compete within its industry, some of the advantages of this measure are

• It has brought significant growth for the company in recent years
• So also the cordial relationship between the government and Titan parents group Tata has helped the company so much because some of the government policy had been to the advantages of the company.

Legal and Regulatory forces

This is a global market in which organisation operates and as a result rules and regulation have to be followed and this can affect company positively or negatively. Some of this rules and regulations can be either

• Changing in taxation rate- if this occur this can affect the company in the sense that it have to pay more tax and doing this will mean shifting the burden to the last consumer by increasing the price of the wristwatch.

 

Economic factors

Ø  Economic landscape

Because of last recession in which many countries are still suffering from, India corporate sector are still nervous about their future and going by the report of FICCI which is Federation Of India Chamber Of Commerce and Industry it is said that for the last twelve months that 264 out 413 companies are currently running in worst condition.

Ø  Consumer view

Though inflation is in double digit but still people remain optimistic that economy will improve in a near future.

 

 

 

 

 

Ø  Purchasing power of consumer

 

BRAND	PURCHASING POWER   (PRICE) Rs	CATEGORY
FAST TRACK	550-1430	YOUTH
EXCTA	595-1430	LOWER MIDDLE CLASS
SPECTRA	650-1830	COMMON CLASS
ROYAL	960-2830	UPPER MIDDLE CLASS
RAGA	1420-4000	UPPER CLASS
BANDHAN	1675-8085	CORPLES
REGALIA	1725-7770	UPPER MIDDLE CLASS &UPPER CLASS

 

There had been increasing in the income from Rs.255.35 Crore and this is as a result of Titan sales which grew by 18% (www.hindu.com)  Looking at the table above and the profit figure the consumer buying power can be easily understand.

 

Ø  Spending habit of the consumer

Even in unfavourable economic condition Titan watch is doing well, its sales income has increased during the first quarter of last year from Rs.168.83 crore to Rs. 171 .89 crore in the corresponding period this year(www.economictimes.com).  This show increment in consumer spending and this is as a result of its brand name, quality of the product, new innovations and attractive models.

 

Social Factor

It is the believe of Titan that they should improve the quality of life of their workers and people of the area in which they operates and as a result they have adopted the Tata business excellence model and corporate citizenship index for sustainable development and this reflect Titan commitment to its corporate social responsibility. It is recorded that Titan spend up to 70% of its profit after tax on its corporate social responsibility initiation and this is spread across the area such as environment, workers and the whole community (www.titanworld.com).

 

 

 

Technological Factor

Ø  Impact of technology

The impact of technology is much in wristwatch industry and as a result of changes in technology Titan watch has gone a step further ahead of his competitor. As a result of technological changes, Titan watch had been able to bring some innovations into wristwatch industry, it has allow Titan watch to be producing quartz which is the Analog and the digital watch compared to mechanical one which was so common before Titan came into the market. Another things brought into wristwatch industry in India as a result of technological changes are

• Wristwatch with blood pressure checking system.
• Wristwatch with heart beat checking system
• Wristwatch with the ability to know the mood of the person.

 

 

 

v  Target Market

Titan basically targeted three (3) segment of the market and they are

·         Lower-income segment- this is the segment of people who buy watches based on low price and also just for time keeping only.

·         Middle-income segment – this is the segment of people who likes fashion, they purchased wristwatch based on how fashionable it is and also likes to compare different watches before buying.

·         High-income segment- this is the most fashionable group, they buy watch based on fashion and don`t care how much it cost.

 

v Need Analysis

Consumer Needs – consumer needs and demand are not the same in all the three market segment, either based on price and quality and to satisfied this current needs at different segment of the market the following steps was taken by Titan watch

·         Low-income segment – Timex wristwatch was offered and when the arrangement of Timex was terminated, the range of SONATA was introduced.

·         Middle-income segment – to satisfy the needs of consumer in this group the stainless Exacta range was offered.

·         High-income segment- the stylish gold plated Royale and Aurum was offered to this group to satisfy their needs.

 

v Review Of Marketing Objective

Strengthen India wristwatch industry through the proper utilization of resources is the current marketing objectives of Titan watch and also to reach an excellence height in which it is free from threat and fear.

 

 

 

 

 

v Performance Analysis

During the year ended 2009/2010, Titan watch has achieved a significant growth, every segment of Titan watch sales grew by 17.2% to Rs.918.7 crore (titanworld.com). The newly introduced range of Raga crystal for ladies also did remarkably well.

 

Ø  Swot Analysis

v Strength

Some of the strengths of Titan watch are

·         Style- Titan watch was the first wristwatch company to introduce style into their range of wristwatches and this has made India people to accept them more than the other brand and they still remain style leader in the industry in India.

·         Models- Titan watch is the only wristwatch company that offer varieties of wrist watch, they have got 10 models with more than 12 different varieties.

·         Exclusive- Titan watch offer the slimmest watch in the whole world in the name of EDGE and the product is doing well.

Implication of this to Titan is that India people are offer more choices by Titan than other maker given Titan the opportunity of increasing their market share.

v Weakness

·         Pricing- Titan watch products in the middle-income class segment are too expensive compare to its competitors and as a result the company is not performing very well because consumer prefer competitors product ahead of Titan watch because they are cheap.

·         Market share- In India wristwatch industry the market share is more demonstrated by the middle-income segment and because Titan watch wristwatches are very expensive in this group, not much people were given the opportunity to buy their watch and as a result they go for other maker. In this segment there is 75% market share but Titan watch only control 20%compared to HMT and Maxima who have 35% and 30% respectively (www.thehindu.com).

·         Globalisation- Because of much concentration of Titan watch on domestic market, their focus on international market is very low and in the world market today for any organisation to have a grip on its industry it has to exploit globalisation to the fullest and this is what Titan watch has not done effectively and efficiently.

Implication of this to Titan watch is that though they are controlling largest share of India watch market but this is because they are controlling the lower income and high income segment but India wristwatch market is best demonstrated by the middle income segment meaning averagely the market leader in the middle income segment on average will be more profitable than Titan.

 

v Opportunity

·         Because the highest sales of watch fall into the lower income group of India population and the highest number of India population falls into this group and also this is the group that makes the highest number of sales for Titan, it gives big opportunity for Titan to exploit this group.

Advantages

·         The implication of this is that Titan will remain India number one watch producing company since competitors cannot match Titan in this segment and this will make the firm profitable.

Disadvantages

·         Having this type of advantages can cause distraction from exploiting other market segment and also it shows that Titan watch is the market leader in this segment it will be less costly for the competitor to operate in this group because the will just be copying what Titan does.

 

v Threat

·         Competitor- Because there are lot of competitor in this industry both domestic and international, so also the government policy on removing quantitative restriction on important watches is going to lead to threat to Titan.

·         Mobile phone trend- the need for wristwatch is now decreasing since one can check for time in his/her mobile phone, people tends not to bother about having a wristwatch and this is a big threat for Titan watch.

The implication of this on Titan is that there will be reduction in sales but with good new market development strategy, Titan has turned its threat to opportunity.

Ø  Marketing Objective

Marketing objective of Titan is to increase its market share by 5% which stood currently at 70% in the domestic market and 6o% in the organised sector.

 

Ø  Recommendations

• Though Titan watch are doing well in the low income segment but it will be good if the go for market development in this segment of the market by bringing new product and new innovation into the market, though the product in this segment are doing fine but in this segment Titan are only controlling 60% of the market and since they know the market in this segment very well it will be good for Titan to do some market penetration with the existing product through advertising and promotion by using some of well known India celebrities in their advert and also developed the market by developing new product that will make them winning more market share from their competitors.
• Loss leader strategy- in the middle income group that Titan are not doing well  because of high price of their product, it will be better if they can adopt the loss leader strategy, this is a business strategy in which a business offer a product or services at a price  that is not profitable for the sake of offering another product/services at a greater profit or to attract new customer (investopedia.com) since Titan is the dominant force in watch production in India they (Titan) can use this position to its advantage by reducing the price of its current range of watches in the middle income segment and as a result making it hard for competitor to compete which in turn knocked them(competitor) of the market so Titan can then be controlling this segment. Titan can then develop new product and also dictates what goes on in this segment of the market since they are now the main player.
• Another thing that I will recommend is that Titan watch should try to find a point between being an asset led firm and market led firm. From their middle income segment market it shows that Titan just offer their products to the market according to the amount of resources in their control without thorough research about what markets want. Though the segment want quality wristwatches but what is their attitudes towards price, this is the segment that compare different brand before buying, so if thorough research had been done their will not be any need for Titan to make mistake of over pricing its product in this segment and to avoid this it will be good for Titan watch to find a meeting point from being an asset led organisation and market led organisation.

 

 

• Market development- Titan can go for market development in international market by introducing more variety of watches to international market and also try to exploit other markets that have not been really exploited. Globalisation is the key word for product development in business world now so it will be profitable and less costly if a market like Africa market can be developed which in turn will make them achieve their objective of increasing their market share.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bibliography

1. www.economictimes.com   10/12/2010, 10:33 am
2. www.invetopedia.com    13/12/2010,  14:22 pm
3. www.mindtools.com  13/12/2010, 14:01pm
4. www.tata.com/titan 07/12/2010, 08:47am
5. www.thehindu.com  07/12/2010, 09:20am
6. www.titanworld.com 07/12/2010, 09:00am