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HMT HMT Watches Watches By By S. Shalini S. Shalini Mustafa Mhow wala Mustafa Mhow wala

HMT Repositioning

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HMT Repositioning by S.Shalini and Mustafa Mhow wala

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HMTHMT WatchesWatches

ByByS. Shalini S. Shalini

Mustafa Mhow walaMustafa Mhow wala

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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

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HMT : An IntroductionPRODUCTS OF HMT

The Company was converted into a Public Limited Company on May 13, 1977

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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.

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• 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

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Valued at Rs. 300 Crores

Grey market, Chinese, etc.

Mid-upper (Rs. 1k - 5k)

Valued at 938 Crores

Titan, Citizen, Timex,

Swatch, Espirit

Low-end (Rs. 400-1000)

Valued at 1200 Crores

Sonata, Maxima

Premium (> Rs. 5k)

Valued at 370 Crores

Swiss brands: Tissot, Omega, Rolex

Fashion brands: Fossil, Calvin Klein,

Giordano, Esprit

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Braille 495.00

Janata 515.00

Pilot 515.00

Kohinoor. 665.00

Dilip 750.00

Sona 780.00

Chinar 1175.00

Sweekar 1050.00

Kailash 1050.00

Rajat 995.00

Kedar 1500.00

ADSL-03 2295.00

ADSL 02 2095.00

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• Showrooms

• Dealers

• Retailers

• Whole sellers

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PLC of HMT Watches

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• Strong govt. support

• Brand image

• Market leadership

• Good liquidity

• Availability of tangible assets

• Established marketing network

• Prior experience


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• No emphasis on R&D

• Rigidness

• Red tapism

• Production was not market driven.

• No emphasis on design and


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• Growing domestic and international market.

• Exports

• Market segmentation

• Enlarge network of sale outlets

• Product improvement

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• Competitors

• Misuse of its brand name by spurious operators.

• Unorganized manufacturing

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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

SK Chaturvedi

HMT Executive


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• 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.

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Completed all the stages of PLC





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New Marketing Mix Segment (Demography) Product Price

Low end Rugged, basic time function, mechanical or quartz, water resistance steel and gold make.

Rs. 300-1000

Mid upper Automatic, steel or gold make, quartz/analog, water resistance and rich looks

Rs. 1,000-3,000

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

Rs. =>30,000

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• Company owned outlets

• Retailers

• Authorized dealers

• Jewellary shops

• Other retail outlets and stores

• Online shopping

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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

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Cont…• Radio:

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.

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• 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.

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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.

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The Repositioning Campaign (30 Days)

Campaign No. of days

Activities decided

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



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The Repositioning Campaign

Campaign No. of days

Activities decided

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.

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• 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.

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Although it is very uphill task

but HMT can once again emerge as the

“Market Leader”

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Q1. Which type of wrist watch do you like to wear?

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Q2. You prefer your watch as?

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Q3. Do you prefer a cell phone over watch for referring time?

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Q4. What features do you consider while purchasing a watch?

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Q5. For what level does the warranty of a watch affect you while making a purchase?

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Q6. Which brand of watch you are currently using?

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Q7. What motivates you to make your purchase?

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Q8. Does the publicity of watches by celebrities affect your buying decision?

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Q9. How often you switch off the brands?

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Q10. What additional feature would you like to go for?

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