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HMT Repositioning by S.Shalini and Mustafa Mhow wala
ByByS. Shalini S. Shalini
Mustafa Mhow walaMustafa Mhow wala
OBJECTIVES• To study of a yester year market leader ‘HMT’.
• Discuss • 4 P’s
• To find out the reasons behind failure of HMT Watch ltd.
• Reposition the product in the best possible way
HMT : An IntroductionPRODUCTS OF HMT
The Company was converted into a Public Limited Company on May 13, 1977
In 1953 Incorporated in Bangalore.
In 1961 started it’s wrist watch plant.
"H.W. L. was the first to enter in the market.
In 1979 sales touch to 4 lakh watches.
In 1980 it was 5 lakh watches.
In 1990 got ISO 9001 certified.
On 9th August 1999 fully owned subsidiary.
Plants was located at Bangalore, Tumkur and Ranibagh.
• Titan sells around 7 million watches annually
• Timex sells under 1.2 million watches
• Other Brands (all put together sell less than 0.5 million watches)
• The Japanese – Citizen, Casio.
• The Swiss – Rolex, Omega, Rado, Tissot, Tag, Longiness, Cartier, Ebel
are the major.
• The fashion brands – Esprit, Giordano, Tommy Hilfiger, Calvin Klein,
Fossil, Swatch and many more have recently entered the Indian market
MARKET ANALYSISMass (< Rs. 400)
Valued at Rs. 300 Crores
Grey market, Chinese, etc.
Mid-upper (Rs. 1k - 5k)
Valued at 938 Crores
Titan, Citizen, Timex,
Low-end (Rs. 400-1000)
Valued at 1200 Crores
Premium (> Rs. 5k)
Valued at 370 Crores
Swiss brands: Tissot, Omega, Rolex
Fashion brands: Fossil, Calvin Klein,
THE MARKETING MIX
PRODUCT AND PRICEPRODUCT PRICE
ADSL 02 2095.00
• Whole sellers
PLC of HMT Watches
• Strong govt. support
• Brand image
• Market leadership
• Good liquidity
• Availability of tangible assets
• Established marketing network
• Prior experience
• No emphasis on R&D
• Red tapism
• Production was not market driven.
• No emphasis on design and
• Growing domestic and international market.
• Market segmentation
• Enlarge network of sale outlets
• Product improvement
• Misuse of its brand name by spurious operators.
• Unorganized manufacturing
Causes Of Failure• We had not care to brace with the liberalization.
• A large number of staff, including persons of general manager's rank, had left
the organization to join the rivals.
• Our biggest threat was to come from watch manufacturers in the unorganized
sector and fake parts and components.
• We have even detected our dealers' connivance in selling other brands
• Few Designs as compared to competitors.
• Offering less commission to retailers and whole sellers.
• Limited service agencies.
• Selective Policy while choosing retailers.
• Centralized organizational structure.
• It could not communicate its uniqueness to customers.
REASONS FOR REPOSITIONING
Completed all the stages of PLC
New Marketing Mix Segment (Demography) Product Price
Low end Rugged, basic time function, mechanical or quartz, water resistance steel and gold make.
Mid upper Automatic, steel or gold make, quartz/analog, water resistance and rich looks
Urban Youth USB,MP3,trendy, attractive, stylish, water resistance and colorful.
Executive/Achievers Automatic, multifunctional, quartz, digital, water resistance, gold and jeweled
Affluent Jeweled, automatic, gold, platinum, water resistance ,classy and customize
• Company owned outlets
• Authorized dealers
• Jewellary shops
• Other retail outlets and stores
• Online shopping
Promotion• Electronic Media:TV CommercialsSponsorship Prime time TV programs Sponsoring major events like IPL, Major Fashion shows, associate
sponsorship On line marketing
• Print Media: Billboards, Cut outs at all major traffic locationsMagazinesNews paperDanglers
Sponsoring morning / evening slots
• Public relation:Organizing press conference
• Events:Promotional activities at Malls, road shows,participating in live shows and trade fair.
• Special offers during wedding and festive time.
• Organize village fairs and conduct various publics welfare programs.
• Go for innovative and stylish ad campaign that reflects the aspirant,
independent and modern dimensions of the consumer.
• Attractive Company logo and tag line like
• Undertake the socio marketing concept instead of product concept.
• Focus on all the segment instead of one (low end)
• Capitalize on the brand equity of HMT
• Use promotional and advertising strategy zeroing on the emotional
attachment and bond with the customers.
• Make customize watches.
• Open customer help desk.
Cont…• Make celebrity as a Brand Ambassador.
• Improve the website by providing features like-
• Online Shopping
• Store Locations
• Exhibiting new products
• Showcasing the existing designs
• Suggestion box
• Open an exclusive outlet only for ladies.
The Repositioning Campaign (30 Days)
Campaign No. of days
Top level exercise 7 Discussion & decision making on all ends like-
Budget, Ads, etc.
Training of sales teams
9 Training on New product features, competitors weakness & new targets.
Selection of activity and places
3 Media engagement
Web and social media
The Repositioning Campaign
Campaign No. of days
Pre launch activity
4 Full dress rehearsal and review of it.
The launch 1 The full fledged launch by the chairman and the brand ambassador in the presence of media and the dignitaries.
Post launch activity
7 Special counters whole week in shopping centers, frequent commercial on T.V. and radio, road shows and village fairs.
Cover entire market with HMT cut outs.
• HMT should focus first on tier 1 and tier 2 cities and then gradually
penetrate towards tier 3 towns and cities.
• Company has to position itself very carefully because other product
variants like mobi-watch (watch with a cell phone) and handheld
devices may try to snatch the market share.
• The whole idea of buying and wearing a watch must be an
• If HMT can deliver above mentioned offerings with a strong
distribution chain, a controlled retailer policy, with a wide market
research, future is no longer beyond their control. HMT will emerge
as a winner.
Although it is very uphill task
but HMT can once again emerge as the
Q1. Which type of wrist watch do you like to wear?
Q2. You prefer your watch as?
Q3. Do you prefer a cell phone over watch for referring time?
Q4. What features do you consider while purchasing a watch?
Q5. For what level does the warranty of a watch affect you while making a purchase?
Q6. Which brand of watch you are currently using?
Q7. What motivates you to make your purchase?
Q8. Does the publicity of watches by celebrities affect your buying decision?
Q9. How often you switch off the brands?
Q10. What additional feature would you like to go for?