1.4.

2 PORTFOLIO ANALYSIS FOR TTK PRESTIGE:

One of the most popular aids to developing corporate strategy in a multibusiness corporation is the portfolio analysis. Portfolio analysis is the wide set of tools to analyze elements of a firm's product mix to determine the optimum allocation of its resources. Two most common measures used in a portfolio analysis are market growth rate and relative market share. In portfolio analysis top management views its product lines and business units as a series of investments from which it expects a profitable return. The product lines/business units form a portfolio of investments that top management must constantly juggle to ensure the best return on the corporation's invested money. Two of the most popular approaches are the BCG growth share matrix and the GE business screen. The BCG MATRIX is a chart that had been created by Bruce Henderson for the Boston Consulting Group in 1968 to help corporations with analyzing their business units or product lines. This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis. Each of the corporation's product lines or business units is plotted on the matrix according to the 1> growth rate of the industry and 2> its relative market share. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: 1. Stars (=high growth, high market share) Use large amounts of cash and are leaders in the business so they should also generate large amounts of cash. Frequently roughly in balance on net cash flow. However if needed, any attempt should be made to hold share, because the rewards will be cash cow if market share is kept.

2. Cash Cows (=low growth, high market share) Profits and cash generation should be high , and because of the low growth, investments needed should be low. Keep profits high. Foundation of a company

3. Dogs (=low growth, low market share) avoid and minimize the number of dogs in a company. beware of expensive turn around plans. deliver cash, otherwise liquidate

4. Question Marks (= high growth, low market share) have the worst cash characteristics of all, because high demands and low returns due to low market share If nothing is done to change the market share, question marks will simply absorb great amounts of cash and later, as the growth stops, a dog. Either invests heavily or sells off or invests nothing and generates whatever cash it can. Increase market share or deliver cash.
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MARKETS:
The markets of prestige products can be mainly divided on the basis of some common characteristics into urban markets and rural markets. Although the urban markets are mostly saturated with low growth rates in the pressure cooker segment the rural market is experiencing a rapid double digit growth rate with the penetration into rural households being the hope for this segment. TTK prestige forayed into the rural markets in FY 06 in the modular kitchen segment in rural Karnataka and is drawing heavy footfalls in the retail outlets. The modular kitchen and the electrical appliances markets are experiencing a high growth rate in the urban markets. The non stick cookware segment is one in which prestige has a strong position and although the urban market is saturated the rural market is growing at a high rate. Thus in the BCG matrix the products of TTK Prestige can be divided into stars, question marks, cash cows and dogs according to the markets in which they are in i.e. according to the urban and rural markets.

URBAN MARKETS: STARS: NONE QUESTION MARKS: Electrical appliances, modular kitchens CASH COWS: pressure cookers, non-stick cookware DOGS: Gas stoves

RURAL MARKETS: STARS: Pressure cookers, electrical appliances, modular kitchens, non stick cookware, gas stoves QUESTION MARKS: none CASH COWS: none DOGS: none

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BCG MATRIX FOR TTK PRESTIGE: URBAN MARKETS

BCG MATRIX FOR TTK PRESTIGE: RURAL MARKETS

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2. ENVIRONMENTAL ANALYSIS
2.1 PESTLE [Political, Economic, Social, Technological, Legal and Environmental Profile]
PESTLE analysis factors are Political, Economic, Sociological, Technological, Legal and Environmental. The PESTLE analysis examines each factor to assess what their impact or potential impact on the organization. In this way, they can prepare strategically for any changes that need to be made in the organization or simply to have the awareness of the external market to give them a competitive edge over other firms in the industry. Examples of each PESTLE analysis factor are: Political: what is happening politically with regards to tax policies employment laws, trade restrictions, tariffs Economic: what is happening within the economy i.e. economic growth/ decline, minimum wage, unemployment (local and national), credit availability, cost of living, etc. Sociological: what are occurring socially i.e. cultural norms and expectations, health consciousness, population growth rate, career attitudes. Technological: new technologies are continually being developed. There are also changes to barriers to entry in given markets Legal: changes to legislation. This may impact employment, access to materials, resources, imports/ exports, taxation etc. Environmental: what is happening with respect to ecological and environmental aspects. EXTERNAL FACTORS POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL LEGAL Governments tax policy and other subsidiaries for usage of Pressure cookers Inflation, recession/ downturn, cost of inputs Urban india trends to eat outside Iso certfied and with us help tech-knowledge know how can be transferred Mantraa- variant of cooker which is exported to us, and less layoff at the time of recession EXTERNAL FACTORS AFFECTING ORGANISATION

ENVIRONMENTAL Stringent specefications for maintenance of product Quality, and other metallurgical measures

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2.3 Porters5forcesmodel:-

Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average. Porter's five forces include three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.

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2.3.1 THREAT OF NEW ENTRANTS 2.3.1.1 New entrants

Prestige cooker is a brand of the company TTK which is known for its food kitchen utensils. The threat of new competitors is one of the forces of Porters model which in this case is less because of the cost advantage they provide to their customers on various sizes available in the market. It has established superior production operations and processes due to experience, patents and exercise huge control on particular inputs required for production, such as labor, materials, equipment, or management skills. On the other hand new entrants would have to undertake huge capital investment to build out their networks and match the scale advantage of established companies. This is especially true as Prestige Cooker is already in fierce competition with other more established brands like Hawkins, kanchan, Jaipan. Increasing urbanization and fastchanging demographics have led to a growing demand for additional homes, which in turn have increased demand for kitchen appliances. TTK Prestige has evolved from a pressure cooker company to a total kitchen solution provider. It has refurbished its product portfolio by introducing gas stoves, mixer-grinders, domestic kitchen appliances, non-stick cookware, chimneys, hobs, and modular kitchen solutions.

2.3.1.2 The threat of substitute products or services

The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives: Buyer propensity to substitute Relative price performance of substitute Buyer switching costs Perceived level of product differentiation Number of substitute products available in the market Ease of substitution. Information-based products are more prone to substitution, as online product can easily replace material product. Sub-standard product Quality depreciation

2.3.1.3 The threat of the entry of new competitors

Profitable markets that yield high returns will draw firms. This results in many new entrants, which eventually will decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition).
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The existence of barriers to entry (patents, rights, etc.). The most attractive segment is one which entry barriers are high and exit barriers are low. Few new firms can enter and non- performing firms can exit easily. Economies of product differences Brand equity Switching costs or sunk costs Capital requirements Access to distribution Customer loyalty to established brands Absolute cost advantages Learning curve advantages Expected retaliation by incumbents Government policies Industry profitability; the more profitable the industry the more attractive it will be to new competitors Internet era; today competitors need only a website to enter a market

2.3.2 The intensity of competitive rivalry 2.3.2.1 Competitive Rivalry

The competitive struggle is fought through price, advertising and promotion spending and direct selling efforts. Prestige Cooker is affecting its rivals by its price and the technology of being balanced cookers all through the world containing aesthetic styles and better technology efficient. TTK controls more than 60% of the pressure cooker market thus actions of other companies affect the market share of it but the growing need for cookers tend to moderate competition by providing scope for growth to the company. Thus fierce competition does exist but at the moment Prestige, with its variety of ranges seems to have advantage of price, distribution, perceived quality and thus, market share. TTK Prestige pioneered the concept of pressure-cooking in India. It has introduced many new concepts in pressure cookers like new shapes, non-stick pressure cookers and pressure indicator, which have now become standards for other manufacturers which makes difficult for other competitors for rivalry.

2.3.2.2 The intensity

For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry. Sustainable competitive advantage through innovation. Competition between online and offline companies; click-and-mortar -v- brick-andmortar
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Level of advertising expense. Powerful competitive strategy used by a company which can intensify competitive pressures on their rivals. How will competition react to certain behavior by another firm? Competitive rivalry is likely to be based on dimensions such as price, quality, and innovation. Technological advances protect companies from competition. This applies to products and services. Companies that are successful with introducing new technology are able to charge higher prices and achieve higher profits, until competitors imitate them. Examples of recent technology advantage in have been mp3 players and mobile telephones. Vertical integration is a strategy to reduce a business' own cost and thereby intensify pressure on its rival.

2.3.3 The bargaining power of customers (buyers)

When the buyers purchase in large quantities then buyer can use their purchasing power as leverage to bargain for price reductions. The switching costs are low so buyers can play off the supplying companies against each other to force down prices. As mentioned earlier, the retail chains are exercising sufficient power over major brands of cookers. Prestige at present has many outlets; the company has entered the fast growing retail space with its exclusive Smart Kitchen outlets, which has helped in boosting brand image and demand. TTK Prestige is aggressively expanding the number of exclusive outlets, which is expected to go up from 164 in 92 towns to over 200 outlets by the end FY07. The change in the family structure in India is clearly reflected in the reducing number of persons per household, which has fallen from 5.7 persons in 1971 to 5.3 in 2001. Going forward, we expect the trend towards nuclear families to intensify, with the average number of people in a household set to fall to 5.1 by 2011.India is also fast moving from an agriculture-based to a services-driven economy. The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes. Buyer concentration to firm concentration ratio Degree of dependency upon existing channels of distribution Bargaining leverage, particularly in industries with high fixed costs Buyer volume Buyer switching costs relative to firm switching costs Buyer information availability Ability to backward integrate Availability of existing substitute products Buyer price sensitivity Differential advantage (uniqueness) of industry products RFM Analysis
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2.3.4 The bargaining power of suppliers

Suppliers are weak as the company has the opportunity to force down input prices and higher quality inputs. TTK Prestige is having a huge turnover, nearly half of which comes from its pressure cooker, so it could threaten to enter the suppliers industry and make the inputs as a tactic to lower down the prices of the input. Also, it must be remembered that TTK not only has its manufacturing plants but also the capability of importing with research and development units as, for the urban woman, whether she is a working woman or a housewife, the pressure cooker has become indispensable. The trend of pressure cooker has grown so widely that people from rural are also using the pressure cookers as even the government is stressing upon these people to use pressure cookers so that usage of liquid petroleum gas can be lessened. Its varied variety and its design which are very common and known to many people makes usability very easy which tends the people to purchase, also for its long time sustainable in the market makes them the first priority to purchase. The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm, when there are few substitutes. Suppliers may refuse to work with the firm, or, e.g., charge excessively high prices for unique resources. Supplier switching costs relative to firm switching costs Degree of differentiation of inputs Impact of inputs on cost or differentiation Presence of substitute inputs Supplier concentration to firm concentration ratio Employee solidarity (e.g. labour unions) Supplier competition - ability to forward vertically integrate and cut out the buyer

2.3.5 Threat of substitutes

TTK Prestige cooker provides cookers with different sizes like pressure cooker, pressure kadai, pressure handi etc; therefore the threat of having substitute is reduced as customer can buy according to his own preference within the same brand. Also, for the price conscious customer, who might migrate to cheaper, TTK prestige cooker, has low range or the low cost brand variant. Some brand concern persons who think that prestige cooker pressure is a low class cooker might shift to other brands like Hawkins, kanchan or Jaipan, as these come with some very good western aesthetic designs. The threat is minimal as Prestige has some flamboyant designs where all the utensils and
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other cookware are matched with to increase the uniqueness.

2.4 GE MATRIX FOR TTK PRESTIGE:

In consulting engagements with General Electric in the 1970's, McKinsey & Company developed a nine-cell portfolio matrix as a tool for screening GE's large portfolio of strategic business units (SBU). This business screen became known as the GE/McKinsey Matrix. The GE / McKinsey matrix is similar to the BCG growth-share matrix in that it maps strategic business units on a grid of the industry and the SBU's position in the industry. The GE matrix however, attempts to improve upon the BCG matrix in the following two ways: The GE matrix generalizes the axes as "Industry Attractiveness" and "Business Unit Strength" whereas the BCG matrix uses the market growth rate as a proxy for industry attractiveness and relative market share as a proxy for the strength of the business unit. The GE matrix has nine cells vs. four cells in the BCG matrix.

Industry attractiveness and business unit strength are calculated by first identifying criteria for each, determining the value of each parameter in the criteria, and multiplying that value by a weighting factor. The result is a quantitative measure of industry attractiveness and the business unit's relative performance in that industry

COMPETETIVE STRENGTH

HIGH

MARKET ATTRACTIVENESS HIGH MEDIUM PRESSURE NON STICK COOKERS COOKWARE MODULAR KITCHENS ELECTRICAL APPLIANCES

LOW

MEDIUM

GAS STOVES

LOW

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Criteria for market attractiveness:

Size of market Market rate of growth Nature of competition and its diversity Profit levels Ability to differentiate Impact of technology, the law and energy efficiency

Criteria for competitive strength:

Market share. Management profile. R & D. Quality of products and services. Branding and promotions success. Place (or distribution). Brand loyalty Efficiency. Cost reduction.

2.5 A.D.LITTLE MATRIX FOR TTK PRESTIGE:

The Arthur D Little (ADL) Strategic Condition Matrix offers a different perspective on strategy formulation. ADL has two main dimensions - competitive position and industry maturity. Competitive position is driven by the sectors or segments in which a Strategic Business Unit (SBU) operates. The product or service which it markets, and the accesses it has to a range of geographically dispersed markets that are what makes up an organization's competitive position i.e. product and place. Industry maturity is very similar to the Product Life Cycle (PLC) and could almost be renamed an 'industry life cycle.' Of course not only industries could be considered here but also segments. It is a combination of the two aforementioned dimensions that helps us to use ADL for marketing decision-making. Now let's consider options in more detail.
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Competitive position has five main categories: Dominant - This is a particularly extraordinary position. Often this is associate with some form of monopoly position or customer lock. Strong - Here companies have a lot of freedom since position in an industry is comparatively powerful Favourable - Companies with a favourable position tend to have competitive strengths in segments of a fragmented market place. No single global player controls all segments. Here product strengths and geographical advantages come into play. Tenable - Here companies may face erosion by stronger competitors that have a o favourable, strong or competitive position. It is difficult for them to compete since they do not have a sustainable competitive advantage. Weak - As the term suggests companies in this undesirable space are in an unenviable position. Of course there are opportunities to change and improve, and therefore to take an organization to a more favorable, strong or even dominant position. From here the strategic position of an organization can be established. Managers then need to decide upon the best strategic direction for the business. For example they might use a Gap Analysis. According to ADL, there are six generic categories of strategy that could be employed by individual SBU's: Market strategies. Product strategies. Management and systems strategies. Technology strategies. Retrenchment strategies Operations strategies.

STAGES OF INDUSTRY GROWTH

EMBRYONIC GROWTH COMPANYS COMPETITIVE POSITION DOMINANT STRONG FAVOURABLE ELECTRICAL APPLIANCES MATURITY PRESSURE COOKER NON STICK COOKWARE GAS STOVES; KITCHEN ACCESORIES AGEING

TENABLE WEAK

MODULAR KITCHEN

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2.5 VALUECHAINANALYSIS
The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization.

PrimaryActivities Inbound Logistics. Here goods are received from a company's suppliers. They are stored until they are needed on the production/assembly line. Goods are moved around the organisation. Operations. This is where goods are manufactured or assembled. Individual operations could include room service in an hotel, packing of books/videos/games by an online retailer, or the final tune for a new car's engine. Outbound Logistics The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer.

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4. SWOT analysis
SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strengths: attributes of the person or company that is helpful to achieving the objective. Weaknesses: attributes of the person or company that is harmful to achieve the objective. Opportunities: external conditions that is helpful to achieving the objective. Threats: external conditions which could do damage to the objective.

Identification of SWOTs is essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs. First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

Matching and converting

Another way of utilizing SWOT is matching and converting. Matching is used to find competitive advantages by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. An example of conversion strategy is to find new markets. If the threats or weaknesses cannot be converted a company should try to minimize or avoid them.

Internal and external factors

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories: Internal factors The strengths and weaknesses internal to the organization. External factors The opportunities and threats presented by the external environment to the organization.
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The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's as well as personnel, finance, manufacturing capabilities, and so on. The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix. SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.

SWOT ANALYSISOF PRESTIGE S (Strength):

1. The product is treated as a matter of prestige which gave good brand image 2. .Pioneers in this industry, 3. Prestige has the largest range of pressure cookers in the country, 4. with years of trust, reliability and safety as our hallmarks, 5. Price of these cookers ranges in all income group people. 6. Customers review
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W (weakness):
1. Unable to reach huge sales volume. 2. Lacking in high diversified segmentation. 3. Hawkins provide neck to neck competition in terms of market share. 4. No innovative marketing strategy been adopted so as grab the market.

O (Opportunities):
1. Currently the season which is going begin is marriage season so new families form they can target those customers in bulk pack. 2. They are declining the direct promotion to attain good market. 3. Capture the range of market namely low-medium users. 4. They have mudra communications as their marketing agent which is a good opportunity to explore. 5. Safety techniques like Gasket Release System and the Gasket Offset Device add points in safe use for beginners

T (Threats):
1. Competitors future cookers are being planned to manufacture with Anodized aluminum. 2. Wide range of availability of competitors products. 3. The expected moving of high income group towards the black berry of Hawkins is nearly threat. 4. Launching of anodized cookers in front challenge before all pressure cookware. 5. Unbranded cookers in market are swallowing 50 percent of market share.

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6.1 MARKETING AND SALES

In true customer orientated fashion, at this stage the organization prepares the offering to meet the needs of targeted customers. This area focuses strongly upon marketing communications and the promotions mix.

SERVICE.
This includes all areas of service such as installation, after-sales service, complaints handling, training and so on.

INBOUND LOGISICS

The dealers and distributors played a very important role in success of prestige. The dealers and distributors are dealing with the prestige products alone. Prestige strongly believes in trade partners and is committed to strengthen them and prepare them for the challenges ahead. With the current trend of organized retail growing, prestige believes as the leader in the segment. They educate and instigate change in the trade partners and help them get to next level. Prestige smart kitchens have been one of the most innovative marketing moves by prestige. PSK was conceptualized to do three things. To improve the visibility in terms of display the entire range of products, to improve the distribution of our new products and to offer the customer right ambience to shop and educate and communicate the right things about prestige.

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After three years of successful operation and over 100 stores PSK today offers that edge over the competition, which cannot be replicated. Besides the three benefits, that PSK offered, contributes 12% of the revenue. It has prepared to take the challenges of organized retail. PSK has instigated the nearby traders to keep the entire range of products. The same traders were not ready to stock and sell the entire range. This has actually resulted in prestige increasing its market share for its entire range in that area dramatically. They have plans to expand the stores across the country. The concentration would be on the tier 11 cities in south India and tier 1 in non south markets. By the end of this fiscal they shall be 400 in numbers with 80000sq.ft of retail space.

Outbound Logistics. The goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer.

SERVICE
The Pressure Cooker Centre has been supplying and servicing pressure cookers since 1968 when we started in a little shop in West Perth, Western Australia. With a devotion to a quality service to our customers, our business has expanded to the point of supplying pressure cookers now, on a daily basis, to all corners of Australia, New Zealand, various countries throughout SE Asia (including Thailand, Philippines, Malaysia, Indonesia) and beyond and spare parts to all corners of the world. The "little store", now in Subiaco, WA, still provides the personal friendly service that helped us grow to a truly National dimension.
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We specialize in Pressure Cookers and their Spare Parts and have sourced quality products from around the world (several brands are exclusive to the Pressure Cooker Centre) so that we can offer you a complete choice of quality pressure cookers for all budgets. We also carry a select range of quality kitchenware and kitchen accessories so that we can offer you world renowned top-of-the-range cookware and kitchenware. You will find a large range of SILAMPOS saucepans, stockpots, frypans, steamer sets and double boilers. This top-of-the range cookware with Thermoplan base (guaranteed for 25 years) is made of the finest 18/10 stainless steel and is imported directly from Portugal. The Silampos cookware range is of excellent quality, design and finish and is offered to our customers at the lowest retail prices. We also offer exclusive to Pressure Cooker Centre, the top quality SILIT cookware from Germany with its unique SILARGAN ceramic non-stick and scratch-proof coating, and ZWILLING HENCKELS knives also from Germany and much more. Goto Kitchenware.

STRATEGIC ALTERNATIVES/ SOLUTIONS

The main issues for Prestige pressure cookers are regarding the threat from other kitchen ware products, ensuring growth in kitchenware market, differentiating its products further so as to fend off competition. Alternatives to combat these very problems are as follows: Option 1. Launch large-scale promotions to make consumers aware of advantages of variant pressure cookers released by prestige 2. Employ cost-cutting methods to further lower prices while discontinuing unsustainable products 3. Investing more heavily in Research and Development so as to make more innovative products to compete better

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