Docstoc

HMT-Repositioning

Document Sample
HMT-Repositioning Powered By Docstoc
					   HMT
  Watches




        By
    S. Shalini
Mustafa Mhow wala
OBJECTIVES
• To study of a yester year market leader „HMT‟.

• Discuss
    • 4 P‟s
    • SWOT
    • PLC

• To find out the reasons behind failure of HMT
  Watch ltd.

• Reposition the product in the best possible way
        HMT : An Introduction
                       PRODUCTS 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.
       COMPETITION ANALYSIS
• 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 ANALYSIS
                                           Mass (< Rs. 400)
Low-end (Rs. 400-1000)
                                       Valued at Rs. 300 Crores
Valued at 1200 Crores
                                      Grey market, Chinese, etc.
   Sonata, Maxima




                             Premium (> Rs. 5k)
Mid-upper (Rs. 1k - 5k)      Valued at 370 Crores
 Valued at 938 Crores        Swiss brands: Tissot, Omega, Rolex
 Titan, Citizen, Timex,      Fashion brands: Fossil, Calvin Klein,
    Swatch, Espirit          Giordano, Esprit
THE MARKETING MIX
          PRODUCT AND PRICE
PRODUCT            PRICE
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
PLACE

• Showrooms

• Dealers

• Retailers

• Whole sellers
PROMOTION
PLC of HMT Watches
SWOT ANALYSIS
                   STRENGTH
• Strong govt. support

• Brand image

• Market leadership

• Good liquidity

• Availability of tangible assets

• Established marketing network

• Prior experience
Cont….
                  WEAKNESS
•   No emphasis on R&D

• Rigidness

• Red tapism

• Production was not market driven.

• No emphasis on design and
    packaging
                   Opportunity
• Growing domestic and international market.

• Exports

• Market segmentation

• Enlarge network of sale outlets

• Product improvement
                         Threats


• Competitors
• 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
                                                          SK Chaturvedi

                                                       HMT Executive Director
              OTHER REASONS
• 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

                            Introduction


      Decline
                      PLC
                                     Growth


                Maturity
  New Marketing Mix
Segment (Demography)              Product                                  Price

Low end                Rugged, basic time function,         Rs. 300-1000
                       mechanical or quartz, water
                       resistance steel and gold make.



Mid upper              Automatic, steel or gold make,       Rs. 1,000-3,000
                       quartz/analog, water resistance
                       and rich looks
Urban Youth            USB,MP3,trendy, attractive,          Rs.1,000-5,000
                       stylish, water resistance and
                       colorful.

Executive/Achievers    Automatic, multifunctional,          Rs.5,000-30,000
                       quartz, digital, water resistance,
                       gold and jeweled

Affluent               Jeweled, automatic, gold,            Rs. =>30,000
                       platinum, water resistance
                       ,classy and customize
 Place

• Company owned outlets

• Retailers

• Authorized dealers

• Jewellary shops

• Other retail outlets and stores

• Online shopping
                           Promotion
• Electronic Media:
   TV Commercials
   Sponsorship 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 locations
   Magazines
   News paper
   Danglers
                              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.
  REPOSITIONING STRATEGY
• 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 Activities decided


Top level exercise   7           Discussion & decision making on all ends like-
                                 Budget, Ads, etc.


Training of sales    9           Training on New product features, competitors
teams                            weakness & new targets.



Selection of        3            Media engagement
activity and places              Radio
                                 Web and social media
                                 PR
                                 Events
         The Repositioning Campaign
Campaign              No. of   Activities decided
                      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           7        Special counters whole week in shopping
activity                       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
   experience.

• 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
          “Market Leader”
Q1. Which type of wrist watch do you like to wear?


                              Other
                               10%
          Bracelete Watches           Sports Watches
                 10%                        30%




       Chain Watches
            30%                          Digital Watches
                                               20%
Q2. You prefer your watch as?


  70

  60

  50

  40

  30

  20

  10

   0
                       An Accessory   A neccesity
Q3. Do you prefer a cell phone over watch for
     referring time?

    80

    70

    60

    50

    40

    30

    20

    10

     0
                YES                  NO
Q4. What features do you consider while
     purchasing a watch?


                 Warranty
                  10%         Style/Design
                                  30%
      Quality
       30%


                              Brand Image
                  Price           20%
                  10%
Q5. For what level does the warranty of a watch affect
     you while making a purchase?



                                Priority
              Does’ nt affect    20%
                  30%




                  Rarely
                   10%          Often
                                40%
Q6. Which brand of watch you are currently using?


  45
  40
  35
  30
  25
  20
  15
  10
  5
  0
       Titan   Timex   TAG Heuer   Fasttrack   Other
Q7. What motivates you to make your purchase?
45
40
35
30
25
20
15
10
 5
 0
Q8. Does the publicity of watches by celebrities
         affect your buying decision?


                NO
                30%




                                  YES
                                  70%
Q9. How often you switch off the brands?

                       Very Often
                          10%
                                    Depends on the
    Affordablity
                                        Mood
        20%
                                        40%




                   Brand Loyal
                      30%
Q10. What additional feature would you like
                to go for?


                              Temprature
             Day, Month and
                                 20%
                  Date
                   30%



      Stop watch
         10%                        Alarm
                                     40%

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:442
posted:5/15/2010
language:English
pages:46