Retail network rationalization of Titan watches

Abstract

Titan is the largest and the finest watchmaker in the country. It is the market leader in the organised watch industry and commands 60 percent share of the organised market. Titan is present in 1800 plus cities and 550 districts; it virtually covers all the cities and districts of India. Titan by itself defines the watch category and has product range catering to wide range of demographics and income groups. At this juncture it wants to have a hard look at its existing network and wants to understand the future possibilities for expansion. At the same time it also wants to understand if there are regions where it has grown beyond the market potential so that network rationalisation can happen. We studied the existing the network of Titan and understood the possible gaps and potential districts for expansion. We used MPV (market potential value) as the parameter to measure the consumption propensity of the districts. MPV is based on three factors i.e. means, consumption and awareness. These three factors further depends on host of indicators e.g. consumption value index is derived from indicators such as consumption of consumer durables between Rs 1,000 and Rs 10,000, consumption of consumer durables above Rs 10,000, ownership of cars etc. Similarly means and awareness index values are also derived from other mutually exclusive indicators. Mathematical tools like regression analysis and ratio analysis are used to arrive at the market potential and relative market size estimations. Stepwise regression method is used for regression analysis. Results obtained from the mathematical analysis are further crystallised by using the future outlook and future demographic trends of districts. Top 146 districts are analysed and final recommendations are presented in a comprehensive matrix along with the suggested actions required.