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Watches
HMT : A Snapshot
Incorporated in 1953 by GOI as a Machine Tool manufacturing company.
HMT : A Snapshot
Incorporated in 1953 by GOI as a Machine Tool manufacturing company.
33%
43%
R Good brand image and market leadership due to high quality, low price
and reliability.
E HMT enjoyed 71 percent of the market share in the sales of
mechanical watches and 55.22 percent market share of the total watch
N production in organized sector (as of year 1991-92).
Its prime product category (mechanical watches) was in the decline stage
W of PLC.
E
Weak Organizational culture: It suffers from bad work habits, lack of
A discipline, low commitment of manpower, inadequate motivational
K strategies, lack of team spirit and low utilization of human and machine
capacities. Inadequate cost control system.
N
Over reliance on the production concept of marketing and hence ignoring
E
the marketing concept.
S
Insufficient emphasis on R&D and design engineering.
S
Contd…
Bureaucratic and centralized decision making inhibited
HMT’s ability to respond quickly with respect to market
changes.
W
E Virtually ignored to maintain good trade relations with retail
outlets vis a vis competition (retail margin was lower than what
A was provided by the competitor)
K
It restricted product development to quality development
N only.
E
Aesthetics and packaging of watches have not been duly
S attended to.
S
Contd…
O
The demand for Watches is growing rapidly both in domestic and
P
international market.
P Capitalize on attractive segments.
O In coming years Fashion brands, luxury watches and watches with
R multiple functions are considered as the product segment with the biggest
growth.
T
Leveraging brand equity of HMT to products such as sports gear,
U
personal accessories.
N
T
I
E
S
Contd…
Segmentation of market on
the basis of age group 18 –
35 years.
40% Luxury
30%
20%
11%
10%
0%
Reason to buy
% response to price
70%
60% 63% Over 60% of the people prefer price
50%
500-1000
1001-5000
between 1000 to 5000
40%
30% 5001-10000
10001-15000
20% 21%
15% 1% 0% 15000 & above
10%
0%
% response to price
% response
Price
8% 0% 17% Design
8%
Endorsement
Brand, Design, Price, Durability
2%
Durability is the sequence of factors that
21%
Brand
influence choice
22% Income
Trend
4% After sales service
17%
others
60%
54%
50% Ads and electronic media
Ads
40%
Electronic Media
account to over 50% as
30% Friends source of information
20% 23% Others
14% 3% 6% Salesman
10%
0%
% response
50% 43%
40%
30%
17%
20% % response
12%
8% 8% 5%
10% 4% 4%
0%
Titan Timex Citizen Omega Maxima Espirit Rado HMT
Demand for HMT is as low as 5% in comparison to 43 % for Titan and 17 % for Timex
HMT
MARKETING STRATEGY -PRODUCT
PRACTISED STRATEGY
clocks
New range of table and wall clocks
MARKETING STRATEGY –
PRICE
STRATEGY
PRACTISED
HMT positioned the quartz In the lower end HMT should seek to
watches as the space age achieve cost advantage by exploiting
generation watches & charged the differences in cost behavior, in
high prices for this category line with fast track
which means that only the
Zero outsourcing strategy
affluent middle aged consumer
could afford it. Offer competitive commission prices
Offering less commission than to whole sellers and retailers.
competition to retailers. whole
sellers.
MARKETING MIX - PLACE
BTL
Consumer engagement programs
Media engagement
Web and social media
Radio
PR
Events
Advertising
ATL:
TV Commercials
Sponsorship Prime time TV programs focusing youth eg: MT rodies,
Style check, Stunt mania, Channel V Exhausted , Khatron Ke Khiladi,
Big boss to name a few
Sponsoring major events like IPL, Major Fashion shows, associate sponsorship
Print Media:
Billboards Display of ads,
cut outs at all major traffic locations
Magazines, News paper, danglers, Cut outs
Advertising
BTL
Consumer engagement programs:
Festive offers, discounts, Exchange offers
Media engagement:
Sponsoring TV / radio shows, Tie ups
Web and social Media:
Mass mailing, Ads on the social networking sites
Radio:
Sponsoring morning / evening slots
Public relation:
Organizing press conference
Events:
Promotional activities at Malls, road shows, re launching of a product,
participating in live shows and exhibitions
Budget Microsoft Office
Excel Worksheet
Suggestions
Faster production of new models of watches for catering to the
changing needs of the customer.
THANK YOU