automatic,gold,Rs.

=>30,0

: HMT Watches8

hhhhhhhh

HMT : A Snapshot

Incorporated
in 1953 by
the
Government
of India as a
Machine Tool
manufacturin
g company.
Over the years diversified into Watches, Tractors,
Printing Machinery, Metal Forming Presses, Die Casting
& Plastic Processing Machinery, CNC Systems &
Bearings.

HMT Watches : Profile

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.

SWOT ANALYSIS

Strength

Weakness

Oppo
rtuni
ty

Threats

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.

W
E
A
K

Bureaucratic and centralized decision making

inhibited HMTs 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.

S
S

Established marketing network

S
T
R
E
N
G
T
H
S

demand of mechanical watches due to growing

R
A

acceptance of Quartz watches.

Significant competition from Allwyn and Titan.
Competitors wooing HMTs top managers.

Competitors successfully exploited the lifestyle

segmentation which HMT failed too.

Worldwide decline in the production and

unconventional

jewellery shops.

Titan had started marketing its watches in

outlets

like

boutiques

and

E
The authorized service agents (ASAs) for

foreign smuggled watches in the country are

also offering competition to HMT.

O
P

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

U
N
T

considered as the product segment with the

biggest growth.

Leveraging brand equity of HMT to products

such as sports gear, personal accessories.

WRONG WITH HMT

M

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

A
K
E
S

watches segment & underestimation of this

segment.
Another flaw in its product strategy was scant
attention to aesthetics and packaging of its
watches.

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.

E
S

C
O
R

Product

Create

competitive

differentiation

leadership.

C
T

through

advantage

by

technological

The products should be developed to

enhance quality and features matching

customers tastes and preferences

N
S

and

there by increasing buyers value.

Mid

&

Premium

segment:

In

this

segment HMT should seek differentiation

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 ofHMT to them.

NEW MARKETING MIX

Segment

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 campaign
TWO 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 TV
SIX MONTHS AFTER LAUNCH
Should start of launching a new
series

THANK YOU

THANK YOU