Market Analysis of HMT watches with motive of increasing sales

EXECUTIVE SUMMARY
Hindustan Machine Tools was incorporated in 1953 by the Government of India as a machine tool manufacturing company. Over the years it diversified into watches, tractors, printing machinery, CNC systems & bearings. HMT was the first watch company to be introduced in India in 1962, which ruled the Indian market till 1991 with its collection of watches. We initiated this project to assess the market potentiality of HMT Watches with motive of increasing sales. This study involves carrying out the preliminary research to gain insight into the watch market, by analyzing the demographic of the customer, its competitors, promotional activities and the way they can improve. Analyzing the requirement and designing the questionnaire, taking interviews, collecting and analyzing data and identifying leads that will give the results of analysis. The following article made us to do this project on this topic.

HMT Watches prunes losses, turnover up 51 pc

From BUSINESS LINE, April 06, 2006 Bangalore, April 5 HMT Watches reduced its losses by more than 50 per cent to Rs 74.71 crore during the fiscal 2005-06 against Rs 134.52 crore in the previous year, according to provisional figures released by the company. The ailing subsidiary of the public sector HMT Group recorded a 51 per cent growth in its turnover at Rs 29.22 crore HMT Watches had entered into a strategic alliance with Godrej Boyce as the national distributor in January. The company hoped to further improve its sales and the result of the tie-up is expected to be reflected from the first quarter of the current fiscal. HMT Group Meanwhile, HMT Group continued with its improved performance to regain its hold over the market. It recorded a nine per cent growth in its overall turnover at Rs 541 crore (Rs 528 crore), thanks to its better off subsidiaries such as HMT International and HMT Ltd (Tractors) making significant contributions. HMT Ltd, with its tractors production recording a 26 per cent rise, chipped in with Rs 243 crore during fiscal2005-06. The Unit also earned a profit of Rs 12.74 crore.HMT International continued to improve its performance by recording more than three- fold increase in its profit to Rs 23 lakh (Rs 7 lakh). HMT Machine Tools with its Rs 224 crore turnover managed to reduce the accumulated losses to Rs 13.59 crore (Rs 73.8 crore). HMT scrip traded at Rs 79.50 on the BSE today, losing 0.81 per cent from its previous close of Rs 80.15
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Market Analysis of HMT watches with motive of increasing sales

1. Company Profile:
1.1 Company Background
HMT Limited, the first company to start watch manufacturing in India. It has incorporated "HMT WATCHES LIMITED" as its fully owned subsidiary on 9th August 1999. It manufactures Mechanical and Quartz Analog watches. 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 with a manufacturing unit at Bangalore. HMT WATCHES LIMITED comprises of three manufacturing units at Bangalore, Tumkur and Ranibagh while its marketing headquarters is based in Bangalore. The product range of HMT WATCHES LIMITED include more than 1500 models to choose from catering to all segments of the market, from Economy to Premium and Young to the Old. HMT brand enjoys a very high brand equity in the India Market. The brand has consecutively been adjudged as one of the best Indian brands in surveys by leading agencies in the country. HMT brand continues to be the main stream brand among major watch dealers in the domestic market. The Quality and Reliability of HMT watches has been the main selling feature and attraction of the consumers

BIET MBA Programme, Davangere

Market Analysis of HMT watches with motive of increasing sales

1.2 Vision & Mission:

The Citizen Charter is making their continue commitment towards Business growth in development of Precision, Timing, and fashion related products with their prime concern on consumer being treated as most important visitor in their premises. Their intention is to develop need-based establishment of products as a component of many peoples every day lifestyle to the extent of time related horizons. To achieve market leadership utilizing its manufacturing facilities / operations to produce fashionable reliable and durable lifestyle products demanded by society of diversified regions with changing times while continue to grow with community both globally and locally. Vision:

Be a market leader in all of their products and services Be a market driven company by technological and process innovations To provide quality products at competitive price for addressing national and International markets To pursue sound and ethical business practices for the benefit of the customers and the stake holders

Mission:

As a good corporate citizen, be a proactive, integral and responsible member of the community and environment in which we operate. Promote the interest of the stake holders through planned business growth To develop and retain human skills necessary for Corporate growth and performance excellence To improve and sustain the quality of work life for employees To provide value for money products to customers in order to achieve customer delight.

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Market Analysis of HMT watches with motive of increasing sales

1.3 Expectation & Commitment:

Expectation:

Be fair, honest and transparent in all transactions To be cordial in solving problems To transact with company authorized dealers Loyalty in implementation of marketing policy in our business interest Affirm mutual trust in commitments Extended your co-operation in all our endeavors Adhere to time and delivery schedules with quality components

Commitment:

Perform, Deliver and get Rewarded Good relationship with customer Total integrity and dedication towards business goals Products with greater value to customer by innovation To envisage continuous business growth taking care of stake holders interest

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Market Analysis of HMT watches with motive of increasing sales

1.4 SWOT ANALYSIS:

Strengths: Mechanical watches: HMT is the market leader in mechanical watches, which serves to the lower segment of the society. HMT has a strong hold in this segment but to make sure that players like Titan and Timex do not occupy the stance HMT needs to do its homework. Brand equity: HMT has a very strong brand image. People know HMT because of its quality and reliability. Production and training facility: Production facility is flexible enough to adapt to new Technologies. Training program is one of the best in the country. Adequate assets: Company has commensurate amount of land, building and machinery available. Weakness: No emphasis on R&D and design: HMT did not pay much attention to aesthetics and design. While its competitor titan kept innovating its products with latest technology, features and design, HMT was still grappling with its basic design models. Retailer policy: HMT did not have control measures over its retailers; hence they lost control over prices and the trade. Lack of team spirit and awareness: HMTs motivational strategies-punishment/reward has been inadequate, resulting in low utilization of human and machine capacities. Trade audits: No regular trade audit was being carried out by the company to check what was actually happening in the market. Management levels: The ground level HMT staff has nearly six rungs of bureaucracy to go through before a general manager in sales or marketing could take a field decision.

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Market Analysis of HMT watches with motive of increasing sales

Opportunities: Diversification of products: There are good diversification possibilities in products. Apart from mechanical watches HMT can also focus on Anadigi, Digiana, Multifunction, digital, stopwatch, alarm, thin etc. Exports: Export market can be tapped. Market segmentation: Company can expand the market launching products suitable for different customer profiles e.g.: youth, gift fashion, sports, novelty etc. Enlarge network of sale outlets: An effective distribution system is mandatory for companys success. Product improvement: Company can manufacture product based on current customer Preferences, Combining technology aesthetic appeals together to enhance the experience. Threats: From competitors: Titan, Timex, Citizen, Swatch etc. Spurious operators: People who indulge in fraudulent activities. Misusing the brand name. Authorized Service agents: For foreign smuggled watches. Regional Players: With their cheap prices and availability.

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Market Analysis of HMT watches with motive of increasing sales

2.1 Title of the project:

Market analysis of HMT watches with motive of increasing sales.

2.2 Research Problem:

What is the demographic profile of the customer of the watch? On what basis customer purchase the watch? Does HMT brand image will help to increase sales? Will advertising help to increase the sales?

2.3 Objectives of the study:

To access the demographic profile of the customer. To know on what basis customer buys the watch. To access HMT brand image will increase the sales. To know that advertising helps to increase the sales.

2.4 Scope of the study:

This study is conducted for 100 respondents in Davangere city. This gives more emphasis on the preference of customer about HMT watches and suggestion to improve its sales. The research of this kind helps to put the theoretical aspects into practice. The research aim is to give information about the HMT company, name of the study used findings of the investigation conclusion and recommendation inferred from the findings. This also enables HMT Company to implement the recommendations made at the end of the study.

BIET MBA Programme, Davangere

Market Analysis of HMT watches with motive of increasing sales

3.1 Methodology:
The source of information or study and the research design go hand in hand. The both expend on how much is known about the problem. It relatively little is known about the phenomenon to be investigated. Exploratory research will be warranted. Typically exploratory research is used when the problem to be solved is broad and vague.

3.2 Type of research:

The descriptive research is a type of research, which describes data and characteristic about the population and phenomenon being studied. The descriptive research is also known as statistical research, which focuses on providing accurate description about the variables. 3.2.1 Sources of data: 1. Primary data 2. Secondary data Primary Data: Systematic collection of information is done directly from 100 respondents. Random basis primary is nothing but, it is data collected for the first time as fresh. Secondary data is not in original form, and which is collected and used by others. Both primary and secondary data has been collected. Primary has been collected through administering the questionnaire personally. Secondary Data: Secondary data is not in original form and which is collected and used by others The data has been collected from company brochure, company websites, Newspapers, Magazines and Internet library. The secondary data was collected from Retailers of HMT watches.

3.3 Data collection methods:

Data collection method used here to collect the primary data is personal interview with prepared questionnaire.

BIET MBA Programme, Davangere

Market Analysis of HMT watches with motive of increasing sales

3.4 Data collection instruments:

Questionnaire: Questionnaire consists of questions for respondent, which are of following types. A) Multiple choice questions B) Likert Rating Scale C) Open ended Question

3.5 Sampling Process:

Sampling and data analysis plays a vital role in the research process. Sample size must be taken in such a way that it should represent the population. The sampling process consist of v Definition of population v Elements The population is designed in terms of elements, units, extent and time. The aggressive of all the units pertaining the study is called population. A part of population is known as sample. 3.5.1 Sampling Frame: The sampling frame is the list of population elements from which the sample is being drawn. 3.5.2 Sample Elements & Sampling Units: All the individuals who are of the age 15 years & above and wear watch. 3.5.3 Sampling Method: The Sample survey is been adopted as the number of respondents is large and 100 respondents from them are selected. 3.5.4 Sampling Size & Extend: The total size is of 100 respondents from Davangere city. 3.5.5 Sampling Plan: Personally visited 100 respondents in Davangere city and get filled the questionnaires as the time provided by them. 3.5.6 Sampling Time: This survey was conducted during the month of May 2011.

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Market Analysis of HMT watches with motive of increasing sales

3.6 Hypothesis: 1. H0: The watch brands are dependent on the age of the customer. H1: The watch brands are not dependent on the age of the customer. 2. H0: There is relation between income & reasons to purchase the watch. H1: There is no relation between income and reason to purchase the watch. 3. H0: TV Celebrity doesnt play an important role in the promotion of watch. H1: TV Celebrity plays an important role in the promotion of watch. 4. H0: TV Advertisement will play major role in influencing the purchase of watch. H1: TV Advertisement will not play major role in influencing the purchase of watch.

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Market Analysis of HMT watches with motive of increasing sales

1.To know the age of the Respondents:

Table 1: Shows the age of Respondents

Age Frequency 15-25 years 26-35 years 36-45 years 45 & above Total 34 23 14 29 100 Percent 34.0 23.0 14.0 29.0 100.0 Valid Percent 34.0 23.0 14.0 29.0 100.0 Cumulative Percent 34.0 57.0 71.0 100.0

age

15-25 years 26-35 years 36-45 years 45 & above

Fig 1:Pie chart showing age frequencies

Interpretation: Respondents using watch in the age group 15-25 years is 34%, 26-35 years is 23%, 36-45% is 14% and remaining 29% is of age 45 and above.

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Market Analysis of HMT watches with motive of increasing sales

2. To Know the Percentage of what Gender are respondents:

Table 2: Shows the Gender of Respondents

Gender Frequency Valid Male Female Total 69 31 100 Percent 69.0 31.0 100.0 Valid Percent 69.0 31.0 100.0 Cumulative Percent 69.0 100.0

Gender
70 60 50 40 30 20 10 0 Male Female
Fig 2:Bar chart showing the gender percentage

Percent

Interpretation: Data collected from the male respondents is 69% and female respondents are 31%.

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Market Analysis of HMT watches with motive of increasing sales

3.To Know the Occupation of Respondents:

Table 3: shows the Occupation of Respondents

Occupation Gov. Employee Private employee Businessman Student Housewife Others Total

Frequency Percent Valid Percent Cumulative Percent 9 19 23 27 7 15 100 9.0 19.0 23.0 27.0 7.0 15.0 100.0 9.0 19.0 23.0 27.0 7.0 15.0 100.0 9.0 28.0 51.0 78.0 85.0 100.0

Occupation
30 25 20 15 10 5 0

Frequency

Fig 3:Bar chart showing the occupation of the respondents

Interpretation: From the above table it can be concluded that 9% of Govt. Employee, 19% of Private Employee, 23% of Businessman, 27% students, 7% housewife and 15% wears others brands of watches.

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Market Analysis of HMT watches with motive of increasing sales

4.To Know the Income of Respondents:

Table 4: shows the Income of Respondents

Income (Rs) Below 10000 10001 to 15000 15001 to 20000 20001 & above Total

Frequency Percent Valid Percent Cumulative Percent 31 29 15 25 100 31.0 29.0 15.0 25.0 100.0 31.0 29.0 15.0 25.0 100.0 31.0 60.0 75.0 100.0

Income
35 30 25 20 15 10 5 0 below 10000 10001 to 15000 15001 to 20000 20001 & above Percentage

Fig 4:Bar chart showing Income of Respondents

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Market Analysis of HMT watches with motive of increasing sales

5.To Know type of watch respondents use:

Table 5: shows the Brand of watch used by Respondents

Watch Frequency Percent Valid Percent Cumulative Percent HMT Titan Timex Sonata Others Total 20 43 3 23 11 100 20.0 43.0 3.0 23.0 11.0 100.0 20.0 43.0 3.0 23.0 11.0 100.0 20.0 63.0 66.0 89.0 100.0

Watch users in %
hmt titan timex sonata others

Fig 5: Piechart showing Brand of watch used by Respondents

Interpretation: From the table we can analyze that Titan users are more compare to other brands. The respondents who use HMT watches are 20%, Titan 43%, Timex 3%, Sonata 23% and other brands are 11%.

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Market Analysis of HMT watches with motive of increasing sales

6. To Know on what basis customer purchase watch:

Table 6: shows the percentage of customers purchases watch on what basis

Reasons to Purchase Price Availability Design Durability Brand name Others Design & Durability Design & brand name Total Missing System Total

Frequency 12 2 25 14 21 6 9 10 99 1 100

Percent 12.0 2.0 25.0 14.0 21.0 6.0 9.0 10.0 99.0 1.0 100.0

Valid Percent 12.1 2.0 25.3 14.1 21.2 6.1 9.1 10.1 100.0

Cumulative Percent 12.1 14.1 39.4 53.5 74.7 80.8 89.9 100.0

Reason to purchase
30 25 20 15 10 5 0

Frequency

Fig6: shows the percentage of customers purchases watch on what basis

Interpretation: From the above fig we can conclude that most of the respondents purchase watch based on design and brand name.

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Market Analysis of HMT watches with motive of increasing sales

7. To know which factor influences to purchase watch:

Table 7: shows the factors influencing the customers to purchase the watch

Factors Friends Relatives Any celebrity Retailer TV advertisement Others Total

Cumulative Frequency Percent Valid Percent Percent 24 20 3 5 24 16 100 24.0 20.0 3.0 5.0 24.0 8.0 16.0 100.0 24.0 20.0 3.0 5.0 24.0 8.0 16.0 100.0 24.0 44.0 47.0 52.0 76.0 84.0 100.0

Paper advertisement 8

Factors In8luencing Purchase

25 20 15 10 5 0

Frequency

Fig 7 : shows the factors influencing the customers to purchase the watch

Interpretation: 24% of the respondents came to know about the watches through their friends and TV Advertisement.

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Market Analysis of HMT watches with motive of increasing sales

8. Dependency of watch brands on age of the customer

Table 8: Shows the dependency of watch brand on age of customer

Age

HMT Titan Timex Sonata Others Total 10 11 6 16 43 1 0 1 1 3 11 6 4 2 23 6 3 0 2 11 34 23 14 29 100

15-25 years 6 26-35 years 3 36-45 years 3 45 & above 8 Total 20

Fig8: Shows the dependency of watch brand on age of customer

Interpretation: From SPSS Software we get the Chi-Square value as 0.309, which is higher than .05. Hence the Null hypothesis i.e. The watch brands are dependent on the age of the customer is accepted.

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Market Analysis of HMT watches with motive of increasing sales

9. Relation Between Income & Reasons to purchase the watch:

Table 9:Shows the relation between Income & Reasons to purchase the watch:

Income Below 10000 10001 to 15000 15001 to 20000 20001 & above Total

Price 7 1 3 1 12

Availability 0 0 1 1 2

Design 6 11 3 5 25

Du rab ility 6 3 0 5 14

Brand name 6 6 4 5 21

Oth ers 1 2 2 1 6

Design & durabilit y 0 5 1 3 9

Design & brand name 5 1 0 4 10

Total 31 29 14 25 99

Fig9: Relation between Income & Reasons to purchase the watch

Interpretation: From SPSS Software we get the Chi-Square value as 0.112, which is higher than .05. Hence the Null hypothesis i.e. There is relation between income & reasons to purchase the watch is accepted.

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Market Analysis of HMT watches with motive of increasing sales

5. FINDINGS
v About 20% of the Customers use HMT watches and 43% and 23% uses Titan & Sonata respectively. v 25% of respondents purchase watch on the bases of design and 21% respondents purchase on the bases of Brand name. v 48% of the watches are purchased based on the influence of Friends suggestion and TV advertisement. v All age group respondents prefer Titan than any other brand. v The respondents whose income is below Rs.15000 will go for design rather then any other attributes.

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Market Analysis of HMT watches with motive of increasing sales

6. RECOMMENDATION
v Company should release number of watches with alluring designs. v Company must provide a gift or discounts on Purchase of watches. v Exchange offer must be given so that customer can shift from other brands to HMT watches. v Company should go with Internet advertisement & TV Advertisement. v Exclusive retail outlets must be opened. v Low cost watches must be launched to attract middle and low class customers.

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Market Analysis of HMT watches with motive of increasing sales

7. CONCLUSION
After going through detailed study, we come to the conclusion that the respondents are not satisfied with the existing designs and promotional activities of the company. Company has a good name in the market and it can use its brand name to make more sales. In Davangere city 66% people are using Titan and Sonata watches and in that near about 75% are ready to shift to HMT watches if new designs are provided.

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Market Analysis of HMT watches with motive of increasing sales

ANNEXURE- 1 CUSTOMERS QUESTIONNAIRE

Dear Sir, We are the students of B.I.E.T MBA PROGRAMME, Davangere. We have undertaken a project on HMT watches. In this connection a questionnaire is enclosed for your response. Kindly spare your valuable time in filling the following particulars. Thanking you, Shreeshaila, Shreya Shalini & Shivkumar 1.Name: __________________________________________ 2.Address: ________________________________________ ________________________________________ ________________________________________ Mobile No.:______________________________________ 3. Age a) 15- 25 yrs [ ] c) 36- 45 yrs [ ] 4. Gender a) Male [ ] 5. Occupation a) Government Employee c) Businessmen e) Housewife [ ] [ ] [ ] b) Private Employee d) Student f) Others [ ] [ ] [ ] b) Female [ ] b) 26- 35 yrs [ ]

d) 45 & above [ ]

6. House hold income per month (in Rs.) a) Below 10,000 c) 15,001-20,000 [ ] [ ] b) 10,001-15,000 d) Above 20,000 [ ] [ ]

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Market Analysis of HMT watches with motive of increasing sales

7. You know HMT as: (You can tick more than one) a) Tractor Company [ ] b) Watch Company c) Govt. Company [ ] [ ]

d) Machine Tools Company [ ]

e) Others (Specify) _______________________________ 8. Which Brand watch do you own? a) HMT c) Timex [ ] [ ] b) Titan d) Sonata [ ] [ ]

e) Others (Specify) _______________________ 9. You purchase above specified watch because of its a) Price [ ] b) Availability e)Brand name [ ] [ ] c) Design [ ]

d) Durability [ ]

f) Others (Specify) ______________________ 10. If the same attributes are offered by HMT Watches will you intend to purchase? a) Definitely No d) Yes [ ] [ ] b) No [ ] c) May be [ ] [ ]

e) Definitely Yes

Note question no. 11 is only for USER of HMT watch: 11. Did the knowledge of HMT brand help you to purchase the watch? a) Definitely No d) Yes [ ] [ ] b) No [ ] c) May be [ ] [ ]

e) Definitely Yes

12. Which factors influence you to purchase the watch? (Can tick more than one) a) b) c) d) e) f) g) Friends [ ] Relatives [ ] Any celebrity [ ] Retailer [ ] TV advertisement [ ] Paper advertisement [ ] Others (Specify) _____________

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Market Analysis of HMT watches with motive of increasing sales

13. Please rank the following brands of Watches in order of their importance. 1= Strongly Disagree; 2= Disagree; 3= Neither Agree Nor Disagree; 4= Agree; 5= Strongly Agree. Brands HMT Attribute Price Brand Image Design Durability Availability Advertisement After Sale service Titan Timex Sonata Others

14. Please provide your valuable suggestions for the improvement in HMT watches. a)_____________________________________________________________ b)_____________________________________________________________ c)_____________________________________________________________

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Market Analysis of HMT watches with motive of increasing sales

Bibliography:
Books Referred: Malhotra Naresh K and Dash Satyabhusan. Marketing Research An applied orientation. Pearson Prentice Hall. 2009. 5th edition, New Delhi. Nargundkar Rajendra. Marketing Research- Text and cases. Tata McGraw Hill. 2007. 2nd Edition, New Delhi. Murthy S N and Bhojannan U. Business Research Methods. Excel Publications. 2010. 3rd Edition, New Delhi. Website referred: http://www.hmti.com/Html/Watches/dsp_watcheshome.asp for history and information about the company and watches. 3rd March 2011. www.umiproquest.com for articles on the HMT watches. 23rd March 2011. www.ibm.com/software/analytics/spss/downloads for download of SPSS software and learning of SPSS software. 1st May 2011.

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Market Analysis of HMT watches with motive of increasing sales

Project Associates
SHIVKUMAR
S/O

Omprakash Baldava

# 9-9-50, Giri Building, Behind Axis Bank, Akkamahadevi Colony Bidar- 585403 Email-id: koolshiv22@gmail.com Mobile: 9449888898 SHREYA SHALINI
D/O

A.K.Sinha

Flat no-G-3, Ganapati Apartments, Near Reliance Fresh, DHANBAD-828127. Email-id: shalinishreya7@gmail.com Mobile: 8970853174 SHREESHAILA P. VIJAYPUR
S/O

Prabhuswamy R. Vijaypur

#313/2, Pavilion road, P.J extension, Davanagere-577004. Email-id: shreeshaila34@gmail.com Mobile: 8105249635

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