Beruflich Dokumente
Kultur Dokumente
Watches
OBJECTIVES
• To study of a yester year market leader ‘HMT’.
• Discuss
• 4 P’s (Product, Price, Place Promotion)
• SWOT
• PLC (Product Life Cycle)
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
• Radio
• Newspaper
• Television
• Magzine
SWOT ANALYSIS
STRENGTH
• Strong govt. support
• Brand image
• Market leadership
• Good liquidity
• Prior experience
WEAKNESS
• No emphasis on R&D
• Rigidness
• Red tapism- Over reliance on the production
concept of marketing and hence ignoring the
marketing concept.
• Exports
• Market segmentation
• Product improvement
Threats
• Competitors
• Misuse of its brand name by spurious operators.
• Unorganized manufacturing
Causes Of Failure
• 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
Product
Few Designs as compared to competitors. HMT has only 40 odd variants
of four basic designs compared to competitor line, Titan which has 70
watches in its ranges with better looks & designs
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.
What Went Wrong?
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.
In less than a year the company had to reduce the price and followed
lifestyle advertising to justify the still higher price of the quartz, however
even this backfired as consumers were not convinced of the
differentiation between the quartz and other HMT watches.
What Went Wrong?
Place
Didn’t strategize its established marketing network according
to growing competition and new market trend like downtrend of
mechanical watches & the growing market for the quartz
watches.
Since retailers have enough foreign brands they were simply
not interested in HMT’s home grown products as a result it had
to sell through its 13 branch offices for Machine tool equipment.
In addition, the retailer margins provided by HMT were 2%
less than what its most prominent competitor, Titan, was
offering to the retailers.
What Went Wrong?
Promotion
• Though HMT’s advertising was distinctive and did cater to the lifestyle
segment, it failed to communicate the uniqueness of HMT’s quartz
design vis-à-vis other HMT watches.
1-Introduction
4-Decline
PLC
2-Growth
3-Maturity
New Marketing Mix
Segment (Demography) Product Price
• Retailers
• Authorized dealers
• Jewellary shops
• 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.
• Online Shopping
• Store Locations
• Suggestion box
Top level exercise 7 Discussion & decision making on all ends like-
Budget, Ads, etc.
Faster production of new models of watches for catering to the changing needs
of the customer.
Adoption of innovative and aggressive marketing policies.
Strengthening infrastructure for R&D.
Reduce man power by adopting new technologies and processes.
Institutional sales and sales through canteen stores department (CSD) and e -
commerce.
Enhancing customer services.
To seek collaboration with reputed international watch manufacturer.
• 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”