SUMMER PROJECT REPORT ON

MARKET POTENTIAL ANALYSIS FOR MARKET ENTRY CONSULTING IN SWITZERLAND

In Partial Fulfillment of Award of Post Graduate Diploma in RESEARCH AND BUSINESS ANALYTICS
By (SONAM CHAUHAN)

Under the guidance of

(ATUL SANGAL )

PGDM (RESEARCH AND BUSINESS ANALYTICS) Entrepreneurship and Management Processes International New Delhi 74 July 2012

Declaration by the Student

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I hereby declare that the project entitled ___________________ ________________________ submitted for the PGDM is my original work and the project has not formed the basis for the award of any degree, associateship, fellowship or any other similar titles.

Signature of the Student: Place: Date:

Certificate by the Guide:

This is to certify that the project entitled ___________________________ _________________________________________ ______________ is the bonafide work carried out by ________________student of PGDM (Parttime), EMPI BSCHOOL, NEW DELHIr, during the year__________, in partial fulfillment of the requirements for the award of theDIPLOMA OF POST GRADUATE IN MANAGEMENT and that the project has not formed the basis for the award previously of any degree, diploma, associateship, fellowship or any other similar title.

Signature of the Guide : Place: Date

Acknowledgements:

Sincere gratitude is hereby extended to the following that never ceased in helping until the report is structured. Ms Smitha Girija, Market research lecturer helped me in the formation of the project in the best symmetric way. Entire Faculty for the knowledge they have shared in compiling the project and extended guidance. For the unwavering moral, emotional & financial support of the family & friends. Above all, utmost appreciation to the almighty God for the divine intervention in the academic endeavour

Table of Contents:
CHAPTER ONE: INTRODUCTION 1.1 Background of the Organization- Past History, Present Profile, and Future Plans. 1.2 Introduction of the study 1.3 Hypothesis/Objectives of the Project 1.4 Significance/Need of the Project 1.5 Scope of the Project extent and limitations CHAPTER TWO: METHODOLOGY 2.1 Research Design 2.2 Data collection Sources including literature review which must include quotations, Footnotes and exhibits 2.3 Data collection methods & Instruments 2.4. Analysis techniques and procedures 2.7 Assumptions and limitation of the study CHAPTER THREE: FINDINGS AND ANALYSIS 3.1 Findings Use of quantitative and qualitative techniques for the estimation. Maximum use to be made of tables and illustrations. 3.2 Analysis Must be from the findings. 3.3 Summery of Findings and analysis. CHAPTER FOUR: CONCLUSIONS AND RECOMMENDATIONS 4.1 Brief summery of the project. 4.3 Conclusion and recommendation. CHAPTER FIVE: BIBLIOGRAPHY APPENDIX

LIST OF TABLES

LIST OF CHARTS

CHAPTER ONE

INTRODUCTION

1.1 Background of the Organization- Past History, Present Profile, and Future Plans.
Research is an art of designing, collecting, analyzing and reporting customers data to a particular situation or we can say it as a detailed study of market. It also acts as important tool of study customers behavior, changes in their life style. Consulting firm is a firm of experts providing professional advice to an organization within a particular field. Dexter is also a consultancy firm which started as a group of young entrepreneurial Professionals from IIM-A, MICA, NIRMA, MS University, IBS, MDI-GGN, BKSBM, UVPCE etc., came from varied background, they have come together to create a team in multiple areas across domains with an ever-increasing array of services. It started as a one-room setup before 5 years without capital, client or experience. And now it has set up branches at Mumbai, Bangalore and NCR, apart from the headquarters at Ahmedabad. With the average age of the core team at about 27, Dexter has now built a panel of senior advisers and mentors whose experience and expertise in their domains combines with our ability to execute and helps us design and deliver on project time and again.Within a short
time, Dexter has completed more than 150 projects

Dexter have applied the philosophy of joint ownership and sharing of gains. In the area of technology Dexter have a lot of people with backgrounds in technology help them to easily leveraged technology for operational efficiencies in planning and execution. This has allowed Dexter at times to deliver work on impossible deadlines. With practices like 100% audio recording of interviews, 100 % data validation followed by 100 % telephonic verification in place now, Dexter has been trying to create practices and systems that assure authenticity of data for each primary research they undertake. Dexter are offering services in 8 areas: SME Consulting Dexter works on a specific consulting model based on end to end planning and execution of selection areas and functions for a SME. The idea is to aggregate strategy and execution of support functions like Marketing, Sales, PR, IT, HR, Administration and Processes for an SME so that the top

management at the clients place can focus on their core areas of expertise. Market Research Market Research is their flagship service offering. They offer qualitative as well as quantitative research through both- primary as well as secondary methodologies. Their service in this area include: Consumer Research & Brand Research Product/ Concept Testing Business Research Market Intelligence Technology Their offerings in technology includes all threeService, Solution, as well as Products. With a diverse experience across domain and technology platforms, both in design and development, their portfolio includes: IT Consulting ERP Solutions and Products Mobile based Remote Data Acquisition Systems Customized Web and Mobile Applications Domain Specific Products Off the Shelf Products Process Consulting Dexters expertise in technology and processes is combined here with their on-ground understanding of how SMEs work and their issues and priorities. Their offerings here are tailored to specific client requirements and include one of more of the followings: Process Re-engineering and Design Process Implementation and Monitoring Process Audits Technology Based Solution Design for Process Implementation IT Systems, Solutions and services Vendor Selection and Management Services

 Training of top/ middle/ lower management as well as staff in processes & systems. Infrastructure Research The offerings in this area include traffic & transportation studies ( manual as well as video graphic), socioeconomic surveys, GIS exercises, Urban planning feasibility assessment studies, infrastructure project impact assessment studies and field operations for implementation of urban infrastructure projects. Social & Rural Projects from the very beginning, operational expertise in rural areas has been top priorities for Dexter and now they have set up a separate division for the same. With projects across in the social sector including work in: Public Health Tribal Affairs Primary and Secondary Education Women & Child Development Land Surveying Slum Development Employment & Livelihood Vocational Education Dexters work in this area includes Skill gap assessment studies Feasibility studies for skill development/ Up gradation centers Course and facility design exercise Planning and consulting in up gradation of ITIs Location selection studies Vendor and Equipment Selection and Setup Employer tie-ups for vocational jobs / Training Facility Audits Process Audits

B2B Sales & Marketing Dexter has now established a fullfledged division offering end to end marketing and sales as a service. To begin with, the product categories handled include: Interior Design Turnkey Projects Modular office Furniture Home Furnishing Products

Hierarchy of organisation:
MD & CEO Vertical Heads

Project Heads Research Associates Backend Employees Research Associates

Software Developer

1.2 Introduction of the study

Project is market potential analysis for market entry consulting in Switzerland. Numerous multinational companies have been eyeing India enthusiastically. They either want to supply to the Indian marketplace, supply products from India or subcontract businesses processes here. India has a extremely skilled manpower pool fluent in both spoken and written English language. Hence, beside modern telecom infrastructure makes it a good target for offshore outsourcing of business processes. Additionally, Indias technology conscious talent pool gives it a lead in low-priced development of engineered merchandise. However, India is a complex market with various economic strata, discrepancy in the growth of trade and industry across regions, dynamically altering government rules, different cultures, geographically scattered markets and an enormous low-cost unorganised distribution make-up. Thus, to comprehend this diversity is particularly imperative prior to product portfolios and/or deal flows for the Republic of India are planned. Choice of partners, acquisition targets and manufacturing site can also be vital for the success of the venture in the India market. This report highlights the business opportunities for foreign investors eyeing investment in Indian luxury Watch Market with the introduction to Luxury watch market. Primary objective of this report is to study the government policies for foreign investors to enter into Indian luxury watch industry and various changes made in investment policies by the government to increase the flow of FDI in India , it analyze past and present Market condition of Indian luxury watch market to understand the trend in the Luxury watch industry and growth Drivers and restrainers for FDI so as to predict the future Scope of the industry , it also talks about the strategies used by investors to enter into Indian Luxury watch Market

1.3 Objectives of the Project

The major objective of the research is to support foreign companies to enter into Indian luxury watch industry successfully.

To study the government policies for foreign investors to enter into Indian Luxury watch Industry. To Analyze past and present Market condition of Indian Luxury watch Industry(FDI Scope). To analyze the growth Drivers & Restrainers for Foreign Investors to enter into Indian Luxury Watch Market. Top five Retailers eyeing investment in Indian Luxury Watch Market & their entering Strategies.

1.4 Need of the Project

If a new firm wants to enter in India luxury watch market then it need to analyse market potentiol based on: Profitability Product availability Your desire to succeed in that market Time
Gain a more detailed understanding of consumers needs To Make Marketing Decisions Survive the Competition: Helps to Decide Target Markets chooseur distribution channel setur price

Profitability - One corner of a market may be wildly more profitable than another. Which one is the best? Product availability - Now that you've determined your most profitable market are there any products that you can sell in order to monetize it? Your desire to succeed in that market - Are you passionate about the market or are you just mildly interested?

1.5 SCOPE OF THE PROJECT EXTENT AND LIMITATION Future Scope of Indian Luxury Market
The current size of watch market in India is about Rs 4,0004,200 crore. Rs 4,000-crore watch industry could grow to a whopping Rs 9,000 crore in three-five years,MrArvindSinghal, Chairman,technopak, said, The watch market in India isexpected to grow between 10 and 15 per cent annually. For most of the international watch brands, India is one of the top prioritymarkets in the world. Companies are looking for an alternative to China to set uptheir manufacturing base and the government can play a vital role to make Indiathe next destination Seiko Watch India Vice President Sales and Marketing NiladriMazumder said. there is an opportunity to generate additional total employment of around80,000 people the sector is still facing several bottlenecks and challenges such ashigh import duties and varied taxations. The organised players currently command 40 per cent of the industry (around 460lakh units annually) and the rest 60 per cent by the unorganised segment, whichconsists of smuggled watches, cheap imported watches and those assembled bysmall unorganised players. However, in value terms, around 60 per cent of the total watch market in India iscontrolled by organised players that include domestic firms such asTitan,Timex,Maxima and HMT, and a host of international brands and companies such asLVMH, Seiko, the Swatch Group, Chanel and others. All India Federation of Horological Industries has sought lowering of import dutyon luxury watches to 20 per cent in the

forthcoming union budget. "the government should cut the import duty on these watches from 40 percentat present to 20 per cent, which would further stimulate the demand for luxuryand premium watches," AIFHI Vice President YashoSaboo told reporters heretoday. Emphasising the rationalisation of indirect tax structure, Saboo said the existingsystem of indirect taxation had proved to be a burden on the industry as it hadnot allowed the demand The policy makers continue to explore areas where FDI can be invited withouthurting the interest of local retail community. Government is considering openingup of the retail trading for select sectors such as electronic goods, Watches.

EXTENT
The change in the perception of the Indian consumers and the improved purchasing power, coupled with the liberalisation of the Indian market has led to a boom in the watch industry. The industry is witnessing tremendous growth and is growing at an average rate of 10 to 15 per cent per year. The estimated annual market size is around 195 million dollars. With the growth and the long standing Indian tradition of identifying watches with jewellery and other traditional items, many watch companies are now interested in entering the emerging Indian market via franchising. Moreover, the concept of gifting watches on several occasions like marriages, birthdays and so on have also added to their popularity.

Limitations
1 Acquiring the right set of talent challenges the firm in matching the clients requirements 2Increasing rate of attrition affects the organizational growth 3Maintaining long-term relationships with clients affects the long-term existence of the firm 4Market as a Challenge affects routine businesses: 5Off shoring/Outsourcing to India acts as a challenge as well as driver 6Threat of Substitutes impacts new business development

CHAPTER TWO

METHODOLGY

2.1 RESEARCH DESIGN

There are two types of research design: Exploratory Research Design Conclusive Research Design Exploratory research is most commonly unstructured, informal research that is undertaken to gain background information about the general nature of the research problem. Conclusive Resaerch is a Descriptive research can be either quantitative or qualitative. Survey research design /survey methodology is one of the most popular for dissertation research. The research was divided into five stages. Stage 1 was a survey of existing literature in order to be aware of, and to build on, existing scholarship in the areas of (a) strategy in general and (b) market entry strategies. This literature survey provided a qualitative feel and a broad understanding of the issues involved. Stage 2 consisted of search of web for detail of (a) the Indian watch industry in order to have a good insight into the governments policies and (b) foreign watch companies operating in India in order to discuss the strategies followed by them in the Indian market. Stage 3 was to select four companies that entered the Indian watch industry and to study the strategies followed by them that resulted in their success or failure in penetrating the watch industry in India. Stage 4 comprised critical analysis of the strategies of the four companies to explain their success or failure and to identify the success factors so as to arrive at a set of recommendations for successful market entry in India. Stage 5, the final stage in the research, was the writing of the report.

2.2 DATA COLLECTION SOURCE

The sources of data may be classified into (a) primary sources and (b) secondary sources. Secondary Source These are sources containing data that have been collected and compiled for another purpose. The secondary sources consist of readymade & readily available compendia and already compiled statistical statements and reports whose data may be used by researches for their studies, e.g., census reports, annual reports and financial statements of companies, Statistical statements, Reports of Government Departments, etc. Secondary sources consist of not only published records and reports, but also unpublished records. The latter category includes various records and registers maintained by firms and organisations, e.g., accounting and financial records, personnel records, register of members, minutes of meetings, inventory records, etc. they consist of data over which a researcher has no original control over collection and classification.Finally, secondary sources are not limited in time and space. That is, the researcher using them need not have been present when and where they were gathered.

USE OF SECONDARY DATA

Uses 1) used for refer-ence purposes. 2) used as bench marks against which the findings of a research is tested. 3) used as the sole source of information for a research project.

Advantages Secondary data, if available, can be secured quickly and cheaply. Wider geographical area and longer reference period may be covered without much cost. Thus the use of secondary data extends the researcher's space and time reach. The use of secondary data broadens the database from which scientific generalizations can be made. The use of secondary data enables a researcher to verify the findings based on primary data.

Data collection method and instrument

Websites, articles, journals, Magazines and Online journals, books
Survey of literature
A thorough review of the existing literature is essential to get a qualitative feel and to increase the knowledge and understanding of the issues dealt in the research. In this research, the survey of literature gives a good understanding of strategy in general and a thorough knowledge of market entry strategies to be used in stage 1 of the project. It also gives a good overview of the watch industry in general and a clear understanding of the watch industry in India and the entry strategies in the Indian watch market to be used in stage 2 of the report. Stage 4 of the report too uses the literature survey indirectly for the critical analysis of the strategies followed by the companies to identify the success conditions for a successful market entry in India. Surveyof internet Using internet as a research tool potentially offers researchers many advantages such as easy access to world-wide samples, low administration costs both financially and temporally, and its unobtrusiveness and friendliness to respondents. Using e-mail as an interview tool eschews the conventional

constraints of spatial and temporal proximity between interviewer and respondent and offers the considerable practical advantage of providing ready-transcribed data. There is an emerging literature surrounding the use of electronic mail in academics. In this research, the survey of internet provides information for the stages 1, 2 and 3 of the report. Precisely, it provides some additional information on the strategy in general and market entry strategy for the stage 1 of the thesis. The web sites of the various Indian watch companies provide up- to-date information for stage 2 of the report. In stage 3 too, the information gathered from the web site of the company. Survey of company documents Survey of company documents are important as it provides lot of written information about the performance, turnover, market share, company policies, strategies, products and services of the company in detail. The company documents provide the primary data and are highly reliable and accurate. Above all, documents play an explicit role in the data collection for the report.10 In this research, the survey of the company documents are used in stages 2 and 3 of the report. The company documents of the various Indian watch companies provide information for stage 2 of the report. Similarly the information from the company documents of various companies also provides inputs for stage 3 of the report..

A) Market Study
How big is relevant market for client products/ services in India What is the current and emerging competition in India Profiles of competitors in India including their prices, business models, trade practices, SWOT etc. What is the track record other foreign enterprises in India in clients segment What are customer segments and their profiles What are key purchase criteria used by target customers What are the growth drivers for client products/ services in Indian market What are the key success factors for the client in Indian market What are the likely challenges in Indian market for client business

b)Entry strategy
Objectives of India market entry Right entry strategy Offerings for Indian market including their range, price, mix Target customer segments Target market territory Defining the Business Model Marketing & Distribution Model Legal structure of doing business in India

Government Foreign Direct Investment Policies IndianLuxury watch Industry

Currently, 51 per cent FDI is allowed in single brand retail and 100 per cent in cash and carry. It is banned in multibrand retail. the government is considering a proposal to scale up foreign direct investment(FDI) in single-brand retail to 100 per cent, as well as allow 51 per cent FDI inmulti-brand retail of watches. The proposal to relax investment norms in single-brand retail comes with a seriesof riders including mandatory sourcing from Indian vendors, For FDI above 51%,foreign investor to source 50% of annual sales from India over a five-year period If approved, the move will facilitate the entry of more singlebrand retail playerslike Catier, Armani,Tag-Heuer, Rolex, Swatch, Radoetc, A recent survey done bythe United Nations Conference onTrade and Development (Unctad) on 300international retailers found that more than a quarter of them have eitheropened or are planning to open their stores in India if the country relaxes thenorms further. The DIPP has seen this relaxation of FDI norms as an opportunity to boost thedomestic industry by linking the new

norms to domestic sourcing. Sources said if aforeign investor from the single-brand retail space decides to have FDI above 51 per cent, it will have to source 50 per cent of the projected sales from thecountry. In case the investor is not able to fulfil this condition within thestipulated five-year period, it will have to divest his equity to 51 per cent. Moreover, for FDI up to 51 per cent in the single-brand retail space, the productswill have to be sold under the same brand name internationally and will have tobe branded during the manufacturing process. The government had opened FDI in single brand retail trading up to 51 per cent inFebruary 2006, and has approved 33 proposals which mainly involved luxurybrands like Cartier and Armani

Introduction to Indian Luxury Watch Industry

Foreign Players in Luxury Watch Industry

1. Tag-Heuer Swiss 2. Rolex Swiss 3. Tissot Swiss 4. Cartier French Watchmaker 5. Rado Swiss Manufacturer 6. Seiko Japan 7. Citizen Japan 8. Guess American Brand 9. Swatch Swiss 10. Omega Swiss.

Major Domestic Brand

1.Titan India 2.Sonata India 3.Nebula India 4.HMTIndia

Data Analysis Techniques and procedure

Data analysis can take the form of simple descriptive statistics or more sophisticated statistical inference, which are among those shown in Figure 3.

Data analysis techniques include univariate analysis (such as analysis of single-variable distributions), bivariate analysis, and more generally, multivariate analysis. Multivariate analysis, broadly speaking, refers to all statistical methods that simultaneously analyze multiple measurements on each individual or object under investigation as such, many multivariate techniques are extensions of univariate and bivariate analysis. The diagram presented below as Figure 4 proposes an approach to decide when a specific type of data analysis technique is appropriate.

Data processing and analyzing

After gathering the data, the information must be converted into language which is understandable for a wider audience. At this stage, the first step is editing and coding. The data is checked for any minor mistakes and then codes the data. Coding means recording, categorizing, and interpreting the data. The second step in this process is to analyze the data.

Exploratory Research
Exploratory research helps businesses to discover new ideas and find potential market opportunities. It is used to explore a situation or search for a problem. This research process is unstructured. In this we need not go through all the stages of the market research process from the defining stage to the analysis stage. The findings from exploratory research are usually based on secondary data (Data that is already available in different departments of the company), open ended questions, similar case studies, a pilot study, or even results from previous research The result is all too often generalised information about potential markets and the related products or services. It is conducted with an expectation that there is need for more comprehensive research..

the process of data analysis Data cleaning

Data cleaning is an important procedure during which the data are inspected, and erroneous data areif necessary, preferable, and possiblecorrected. Data cleaning can be done during the stage of data entry. If this is done, it is important that no subjective decisions are made. The guiding principle provided by Adr (ref) is: during subsequent manipulations of the data, information should always be cumulatively retrievable. In other words, it should always be possible to undo any data set alterations. Therefore, it is important not to throw information away at any stage in the data cleaning phase. All information should be saved (i.e., when altering variables, both the original values and the new values should be kept, either in a duplicate data set or under a different variable name), and all alterations to the data set should carefully and clearly documented, for instance in a syntax or a log.[2]

Initial data analysis

The most important distinction between the initial data analysis phase and the main analysis phase, is that during initial data analysis one refrains from any analysis that are aimed at answering the original research question. The initial data analysis phase is guided by the following four questions:[3]

Quality of data Quality of measurements Initial transformations Did the implementation of the study fulfill the intentions of the research design?

Final stage of the initial data analysis

During the final stage, the findings of the initial data analysis are documented, and necessary, preferable, and possible corrective actions are taken. Also, the original plan for the main data analyses can and should be specified in more detail and/or rewritten. In order to do this, several decisions about the main data analyses can and should be made: In the case of non-normals: should one transform variables; make variables categorical (ordinal/dichotomous); adapt the analysis method? In the case of missing data: should one neglect or impute the missing data; which imputation technique should be used? In the case of outliers: should one use robust analysis techniques? In case items do not fit the scale: should one adapt the measurement instrument by omitting items, or rather ensure comparability with other (uses of the) measurement instrument(s)? In the case of (too) small subgroups: should one drop the hypothesis about inter-group differences, or use small sample techniques, like exact tests or bootstrapping? In case the randomization procedure seems to be defective: can and should one calculate propensity scores and include them as covariates in the main analyses?[10]

Analyses
Several analyses can be used during the initial data analysis phase:[11] Univariate statistics Bivariate associations (correlations) Graphical techniques (scatter plots) It is important to take the measurement levels of the variables into account for the analyses, as special statistical techniques are available for each level:[12] Nominal and ordinal variables Frequency counts (numbers and percentages) Associations

 [edit]

circumambulations (crosstabulations) hierarchicalloglinear analysis (restricted to a maximum of 8 variables) loglinear analysis (to identify relevant/important variables and possible confounders) Exact tests or bootstrapping (in case subgroups are small) Computation of new variables Distribution Statistics (M, SD, variance, skewness, kurtosis) Stem-and-leaf displays Box plots

Continuous variables

Main data analysis

In the main analysis phase analyses aimed at answering the research question are performed as well as any other relevant analysis needed to write the first draft of the research report. [13] [edit]

Exploratory and confirmatory approaches

In the main analysis phase either an exploratory or confirmatory approach can be adopted. Usually the approach is decided before data is collected. In an exploratory analysis no clear hypothesis is stated before analysing the data, and the data is searched for models that describe the data well. In a confirmatory analysis clear hypotheses about the data are tested.

ASSUMPTION AND LIMITATION OF STUDY

CHAPTER THREE

FINDINGS AND ANALYSIS

FINDINGS Top Trading Countries in Luxury Watch Industry with reference to Import & Export Bank In terms of Export Quantity
(FIG.)

1.U.S.A 6,843,213 2.Switzerland 2,720,927 3.France 1,747,966 4.India 901,227 5.Japan 20,256

In terms of Import Quantity

(FIG.)

1.U.S.A10,533,545 2.France 2,191,206 3.Japan1,213,645 4.India 845,130 5.Switzerland 273,391

Emerging Markets for Luxury Watch Industry

1.Market for luxury watches is primarily export driven with Switzerlandleading the way 2.Europe also has a huge chunk in luxury goods like watches & jewelry havemade its Position as a luxurious market 3.Hong- Kong is also seen as a major Market for luxury watch Industry 4.China has emerged as the top spot for the luxury watches segment in Asia 5.The domestic market of Japan witnessed luxury boom in the recent yearswhich had a direct effect on the growth of the market. 6.Russia is one of the fastest developing markets, including China and India,which includes jewelry and watches, accessories and other products. 7.India is also seen as high growing market as only 27% of the market istapped many foreign investors eyeing for the investment in Indian marketdue to its high growth opportunities and the various government reforms.

Present Scenario of Indian Luxury watch Industry

Despite a growing economy, increasing consumerism, favorable demographicsand more than a million high net worth individuals, the Indian timewear industryis not able to grow to its full potential; thanks to government restrictions onforeign direct investment (FDI). A White Paper, 'The Indian Watch Industry', prepared by the All India Federationof Horological Industries (AIFHI) andTechnopak Advisors says the watch industry,one of the oldest in India, has a penetration level of just 27 per cent and themarket size is much less compared to other countries.

The Paper lists FDI restrictions as a key impediment to the growth of the watchmarket in India,It is now the turn of the watch industry to push for relaxing theforeign direct investment cap on single brand retail The last mile connectivity to the consumer is provided by the retailer. FDIrestrictions are not allowing international brands to have complete control overretailing. Currently, 51 per cent FDI is allowed in single brand retail and 100 per cent in cashand carry. It is banned in multibrand retail. In the past few years, the sector has seen a growth of 8 -10 per cent. Stating that the Rs 4,000-crore watch industry could grow to a whopping Rs 9,000crore in three-five years,The watch market in India is expected to grow between10 and 15 per cent annually. The white paper also sought lower import duty on luxury watches andrationalized taxation structure. It said factors such as growing economy, increasing consumerism, strong middleclass and a large number of high net worth individuals would favor the growth of the market, It also said employment in watch retail can reach up to 2.15 lakh people in the next five years. Only 40 out of 100 people in India wear a watchtoday.The industry would ideally like the number to move to 70 in the nextcouple of years. However, in value terms, around 60 per cent of the total watch market in India iscontrolled by organised players that include domestic firms such asTitan,Timex,Maxima and HMT, and a host of international brands and companies such asLVMH, Seiko, the Swatch Group, Chanel and others

ANALYSIS Analysis of the trends for Indian market

There is been a gradual decrease in the Investments inIndia Mainly due to three major reason 1.Heavy import duty 2.Fdi Restrictions imposed by the government 3.Recession But the Government now is taking many initiatives andreforms in the Foreign Direct Investments policies focusing on new market. The government is considering a proposal to scale up foreign direct investment(FDI) in single-brand retail to 100 per cent, as well as allow 51 per cent FDI inmultibrand retail of watches. For FDI above 51%,foreign investor to source 50% of annual sales from India over a five-year period. All India Federation of Horological Industries has sought lowering of importduty on luxury watches to 20 per cent in the forthcoming union budget.

The year 2009 has shown a high dip in the exports due tothe recession.
Major Trading nations have seen a sag in the profits due to the recession in Indiaother nations being U.S.A, Switzerland, and France A watch collector from the Middle East dropped $3.3 million on Piaget's new,one-of-a-kind tourbillon watch studded with 1,200 diamonds and shaped like anancient temple In ChinaRecession hit in 2009 with a 24 per cent drop in exports and the loss of some 4,000 jobs in a sector that employs 53,000.

In the U.S., sales of watches costing more than $100 declined by 33% in 2009,according to Port Washington (N.Y.)-based retail analytics group NPD Swiss exports of watches dropped 22% in 2009, the biggest decline since 1932,according to the Federation of the Swiss Watch Industry The outlook for 2010 is more optimistic. Swiss watch shipments, the barometerfor the watch industry, rose 14% in February, led by a 174.1% increase inMorocco, a 157.4% gain in Saudi Arabia, a 68.2% increase to the United ArabEmirates and a 49.5% increase to China.The luxury sector, which had the steepestlosses in 2009, is recovering at a slower pace than the rest of the industry.

Analysis of trends in Import

Luxury watch industry has seen a growth of around 8 to 15 % attracting manyplayers to enter into luxury watch market tieing up with many domestic players asJoint ventures or mergers to locally source the products as a mode of entry in theForeign market As a result the Imports is gradually decreasing year by year many foreign playersare trying for joint ventures, Mergers & Acquisition to enter into the foreignmarket Few examples being Timex Group has acquired Versace S.A., a subsidiary of Gianni Versace, with operations in Lugano,Switzerland Timex, a subsidiary of Timex Corp, USA started business in India in 1991 through a joint venture withTitan Industries.

CHAPTER FOUR

CONCLUSION AND RECOMMENDATION

23

SUMMARY OF THE PROJECT

This report highlights the business opportunities for foreign investors eyeing investment in Indian luxury Watch Market with the introduction to Luxury watch market. Primary objective of this report is to study the government policies for foreign investors to enter into Indian luxury watch industry and various changes made in investment policies by the government to increase the flow of FDI in India , it analyze past and present Market condition of Indian luxury watch market to understand the trend in the Luxury watch industry and growth Drivers and restrainers for FDI so as to predict the future Scope of the industry , it also talks about the strategies used by investors to enter into Indian Luxury watch Market It also lists top five retailers interested in investing in Indian market ,problems faced by foreign retailers to enter into Indian market, also the impact of FDI on Domestic brands and challenges faced by domestic brand in coping up with foreign brands, to clearly understand the Indian Market conditions and their competitors both global and domestic.It consists of list of top countries in terms of import and export quantities including past fiveyear trends and their major export destination and sources of import and respective revenuesto help investors in decision making process.Report also highlights most emerging market for luxury watch Industry to grab the opportunityby foreign investors to invest into emerging markets around the world, and brands those whohave already taken advantage of Indian Demography.

CONCLUSION AND RECOMMENDATION

CHAPTER FIVE

BIBLIOGRAPHY

APPENDIX
ANOTHER 2 PROJECT CARRIED BY ME 1) project was based on a project given by Government of Haryana to undertake an enumeration survey of manufacturing and service industrial units in the state. The survey has been because of the current voluntary nature of the registration of industries with District Industries Centres (DIC). This survey would help the department to know the nature of requirements of industries, skilled manpower etc. for future growth of the industries in terms of factors of production like land, credit needs, power and natural gas linkages, skilled manpower. After the completion of the survey as industry will be allotted A Unique Registration Number which shall be used as a unique registration number across the related departments like Labour, Pollution Board, Commercial taxes, Power Utility etc. for the creation of a common platform for various approvals/clearances in the eGovernance mode. DIC has engaged M/S Mott MacDonald, India to undertake this survey of manufacturing and service sector units in state of Haryana. Mott MacDonald India has retained the services of Dexter Consultancy Limited, for engaging and supervising representatives/executives for the implementation and execution for implementation and execution of operations for the study throughout the state of Haryana. The company officials and students would map the location of industries using handheld Global Positioning System (GPS) device which would help understand the distribution of units in the state as well as future infrastructure planning. The information was collected through questionnaires and the information collected was kept confidential by Industries and Commerce Dept. which will be used just for improving the delivery of services for the Industrial Sector. The survey would help the government to get an idea about the number of industries, employment generated by them, level of investments and production and exports. This data would help the state government in framing policies and initiative for industrial development. This would also help to know the number of micro, small, medium and large enterprises in Haryana and whether government was able to help them in their expansion plan. The type of industries for survey was basically service and manufacturing industries. Service industry included Advertising Agencies, Marketing Consultancy, Industrial Consultancy, Equipment Rental And Leasing, Photocopying Centres, Industrial Photography, Industrial R&D Labs, Industrial Testing Labs, Desk Top Publishing, Auto Repair, Services And Garages, Documentary Films, Laboratory For Testing Raw Materials And Finished Products, Serving Industry For Maintenance, Repair, Testing Electronic/Electrical Equipment/Instruments, Servicing Of Agriculture Farm Equipment, Weigh Bridge, Blue Printing And Enlargement Of Drawing/Designs Facilities , Subcontracting Exchanges By Industry Associations, Ropeways In Hilly Areas, Vocational Education, Data Conversion/Data Processing, Website Design And Development, Call Centres Using Voice Or Data Communication Links, Back Office Processing For Banks/Insurance Companies, Airlines etc., Video Film Making, Computer & Peripherals Assembling. Manufacturing Industry Will Include Bread And Biscuits Manufacturing, Bricks And Tiles, Cardboard Boxes, Carpets, Chemicals, Cold Storage, Die Making, Embroidery,

Footwear/Shoe Making, Furniture Works, Handloom, Ice Factory, Iron Castings, Job Work, Lathe Machine, Leather Products, Machinery Repair, Manufacturing Of Furniture, Masalas, Motor Repair, Notebooks And Registers, Pickles, Rice Milling And Polishing, Servicing Of Motor, Servicing Of Tractor, Tractor Repairing And Parts, TV Repair. Learning and Outcomes The project was based on marketing research where we students had to collect information about the industries and analyse the type of industry, which industry is more and why it is so. Is increase in the number of industries is due to the steps taken by Government or whether the demand of the product/service is more etc.? We students had to face different challenges such as meet customers in unorganised sector, climate condition, illiterate customer and communication barrier. Thus, the data required for the survey were dealing with the tax details, expansion details, income, and number of workers which were highly confidential. Most of the entrepreneur doesnt reveal their data as we approach. Then we have to convince them that we are for their benefit and not for harming them. Thus our approach was to make entrepreneurs feel that we are for your benefit. But approach with guard was different as we have to make a perception in their mind as we have the authority to have the meeting with the entrepreneur. To make awareness among illiterate owner was easy as if they are convinced they will give full details but if not they wont give any data. But literate owner give relevant data and they already have awareness about the survey. The data analysis had objectives such as: 1. Allot a Unique Registration Number to each industry in Haryana 2. To know whether there is any expansion in industries after the last Government. 3. Are the owners of the industry interested in having land in developed industrial area? 4. Percentage of industries making profit or loss 5. Percentage increase in employment in different industries. The analysis was done through making data validation, data entry, data cleaning and data interpretation in excel through pie charts and interpreting the results through the graph with figures and numbers. From the data collected are many times the contact person may give wrong information but it should be cross checked and made the data valid for survey results. So data validation helps in making valid data for survey purpose. Data cleaning is done through filtering the data and data interpretation is done through facts and figures received through survey and then sorting them according to different factors such as turnover value, capacity utilisation, total asset value, their initial investment and expansion value if they have done. Thus with the facts what can categorise the type of industry and what turnover it has and whether they are getting any benefits from government. Government is also giving subsidy and interest free loan for promoting certain industries to have a better development as in the case of agriculture, mining industry in certain regions. The analysis was able to make a research analysis on the industrial growth rate and employment percentage increase in the State of Haryana after the present Government has come to power. The facts are figures are not supposed to be given as it is confidential and the data is about government which should not be disclosed.

*Some of the analysis factors and their outcomes are given in the pie chart analysis: Financial Status of Industries:
New Financial condition of Industries companies 15%

Loss 12%

No Profit No Loss 13%

Profit making 60%

Here from the above pie chart we can see that the maximum number of companies is making profit from their business. Some industries are going to shut down as they were able to make neither profit nor normal profit. Many companies are new to business which has started in 2012. These companies are doing job work as their business. Expansion Done by Industries:

Expansion Rate of Industries

Never 23% Yearly 33%

Only Once 44%

From the pie chart we can see that the expansion in industries in terms of machinery, plant and capacity are considered to have expansion to the industry. Thus the above diagram we can see that most companies had expansion plan for only once in their whole business. But some companies (approx. 33%) had expansion in every year. Rest of companies didnt mind to expand their business because they had no sufficient demand and their profit making was decreasing. Demand for Industrial Area:

Requirement for an Industrial Developed Area Can't Say

10% No 17%

Yes 73%

From the above diagram it is evident that most of the industries are demanding for an organised industrial area from the government. Employment opportunity analysis: The employment opportunity is not increasing proportionally as the number of industries increase. This is because new industries are mostly micro industries where there is not much employment opportunity. In some, employees are leaving the job as the working conditions were really bad and the company was not able to afford many employees as their profit was decreasing. Thus government has to take steps to promote more number of small, medium and large industries. *The facts and figures in the pie chart are not exact figures we cant use real figures and facts as the survey is of Government of Haryana. So we are no supposed to disclose the real facts and figures. Distribution Channel: Distribution channel means move services from service provider to the consumer. Many a times it happens that the channel becomes direct in case of service as it is mostly provided from the service provider to the clients or the end customer. In Dexter Consultancy Ltd, we saw direct distribution channel. Dexter has main office in Ahmedabad and branches in Pune, Delhi and Bangalore. Many times it happens that the clients are from remote location. Then, first of all they try to understand the business problem via telecom or video conferencing. Then, according to the understanding they mail the proposal to the client, having details like research objective, methodology and pricing. Once the client approves the proposal, the research associates will personally visit the geographic location and collect data. To maintain the quality of data, they engage themselves in the data collection process. Rest of the work like data validation, data verification, data entry and analysis are done in office. If company have to provide IT support to any of the client then it is done by remote hosting but in that case too the Business Analyst will physically visit the site and does the documentation. Dexter Consultancy Ltdhas online marketing promotional strategy. Selling Process: In our live project, we didnt have any pre approach. We directly approached the owner and had presentation. We mostly used to face minor objections but still we were able to make up with the objections, then we did trial close and used to close up

the sale. But in some cases there used to be somemajor objections which made the survey to be followed up. Objections: When a salesperson is approaching a customer objections are always common. The objections faced by us during our live project were stalling objection and no-need objection. Stalling objection is objection to get rid of the salesperson. When they say my boss is not here, Im busy, Ill think of it again etc. In this case we had to convince them the benefits of the survey and made them understand the outcomes of the registration number. Other type of objection was no-need objection by objecting in a descent way. In this case, many has raised objection like I dont know the figures, I forgot the figures, the survey is good but Im not interested in giving the data. In this case, we asked questions regarding the objections, compensation method and third party answer. Limitation: 1. Illiterate people 2. Communication Barrier 3. Reluctant to give details about the company 4. Climatic conditions Recommendations: 1. Create awareness through publishing news in local newspaper 2. Before the survey, a person should go and create awareness to owners of the company 3. Make appointments in large and medium companies Thus the project gave us a great exposure towards the real life marketing research experience. Inspite of the limitations we had to meet our targets and make analysis with the collected data and interpret it in a meaningful way to the client.

2) PREPARATION OF BUSINESS PLAN FOR DEXTER CONSULTANCY