product and marketing strategy of hmt

hhhhhhhh

Segment(Demography)Brand Appeal for ProductPriceLow endRugged, basic time function, mechanical or quartz, water resistance steel and gold makeRs. 300-1000Mid upper Automatic, steel or gold make, quartz/analog, water resistance and rich looksRs. 1,000-3,000Urban YouthTrendy, attractive, stylish, water resistance and colorfulRs.1,000-5,000Executive/AchieversAutomatic, multifunctional, quartz, digital, water resistance,gold and jewelledRs.5,000-30,000Affluentclassy and customized, Jewelled, automatic, gold, Rs. =>30,000Kumar Mithilesh 2009A44IMC : HMT Watches8

Incorporated in 1953 by the Government of India as a Machine Tool manufacturing company.

Over the years diversified into Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting & Plastic Processing Machinery, CNC Systems & Bearings.

HMT : A Snapshot

The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan.

HMT Limited, the first company to start watch manufacturing in India; has incorporated "HMT WATCHES LIMITED" as its fully owned subsidiary on 9th August 1999.

It manufactures Mechanical and Quartz Analog watches.

HMT Watches : Profile

Strength Weakness

Opportunity Threats

SWOT ANALYSIS

STRENGTHS

Strong government support.

Good brand image and market leadership due to high quality, low price and reliability.

Record of good industrial relations.

In 1991 HMT set up a product development center for watch design.

Bureaucratic and centralized decision making

inhibited HMT’s ability to respond quickly with

respect to market changes. It restricted product development to quality

development only. Aesthetics and packaging of watches have not

been duly attended too.

W

E

A

K

N

E

S

S

Established marketing network

S

T

R

E

N

G

T

H

S

Worldwide decline in the production and

demand of mechanical watches due to growing

acceptance of Quartz watches. Significant competition from Allwyn and Titan. Competitors wooing HMT’s top managers.Competitors successfully exploited the lifestyle

segmentation which HMT failed too.

T

H

R

E

A

T

S

Titan had started marketing its watches in

unconventional outlets like boutiques and

jewellery shops.

The authorized service agents (ASAs) for

foreign smuggled watches in the country are

also offering competition to HMT.

T

H

R

E

A

T

S

The demand for Watches is growing rapidly

both in domestic and international market.

Capitalize on attractive segments.

In coming years Fashion brands, luxury

watches and watches with multiple functions are

considered as the product segment with the

biggest growth.

Leveraging brand equity of HMT to products

such as sports gear, personal accessories.

O

P

P

O

R

T

U

N

T

I

E

S

Product Few Designs as compared to competitors. There is less emphasis on product research and

development. HMT has not been able to be a leader in Quartz

watches segment & underestimation of this

segment. Another flaw in its product strategy was scant

attention to aesthetics and packaging of its

watches.

M

I

S

T

A

K

E

S

WRONG WITH HMT

Price

HMT positioned the quartz watches as the

space age generation watches & charged high

prices for this category which means that only

the affluent middle aged consumer could afford

it.

M

I

S

T

A

K

E

S

Product

Create competitive advantage by

differentiation through technological

leadership.

The products should be developed to

enhance quality and features matching

customers tastes and preferences and

there by increasing buyers value.

Mid & Premium segment: In this

segment HMT should seek differentiation

by providing better designs

C

O

R

R

E

C

T

I

O

N

S

PAST REVIVAL PLANS

• In 1998 HMT did MOU with Govt. of India.• The fund allotted was 220 crore• In 2007 again 400 crore were allotted for

revival.• In 2013 again 1087 crore were allotted for the

revival.

REVIVAL STRATEGY

THE LONG TERM COMMUNICATION OBJECTIVE FOR HMT WATCHES• To position HMT brand as the preferred

choice of watch by making the target audience aware of the new, rejuvenated HMT watches and by communicating the brand promise of HMT to them.

NEW MARKETING MIXSegment Price(Rs.)

Low End 300-1000

Mid Upper 1000-3000

Urban Youth 1000-5000

Executive/Achievers 5000-30000

Affluent Above 30

HMT COMMUNICATION MIX

ADVERTISING:• Broadcasting ads• Print ads• Brochures and the booklets• Bill boards• Point of purchase display• Symbols

SALES PROMOTION

• Contest, games and lucky draws• Gifts• Road shows and the fairs• Special discounts• Demonstrations• Rebates• Continuity program

EVENTS AND EXPERIENCES

• Sports• Celebrity endorsements• Festival

PUBLIC RELATIONS AND THE PUBLICITY

• Press Kitts• Publications• Community relationship

DIRECT AND INDIRECT MARKETING

• Mailing• Telemarketing• Electronic shopping• Blogs• Websites• Word of mouth• Chat rooms

PERSONAL SELLING

• Sales meeting• Samples

IMPLEMENTATION PLAN

ONE MONTH BEFORE THE LAUNCH• Teaser campaignTWO WEEK BEFORE THE LAUNCH• TV and the radio commercials should start

appearing in the prime time programs and the important events.

ON THE DAY OF LAUNCH• Conduct a press conference

ONE TO TWO MONTH AFTER LAUNCH• Increase frequency of commercials on TVSIX MONTHS AFTER LAUNCH• Should start of launching a new series

THANK YOU

THANK YOU