HMT Repositioning

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HMT Repositioning by S.Shalini and Mustafa Mhow wala

Text of HMT Repositioning



By S. Shalini Mustafa Mhow wala

OBJECTIVES To study of a yester year market leader HMT. Discuss 4 Ps

SWOT PLC To find out the reasons behind failure of HMT Watch ltd. Reposition the product in the best possible way

HMT : An IntroductionPRODUCTS OF HMT

The Company was converted into a Public Limited Company on May 13, 1977

In 1953 Incorporated in Bangalore. In 1961 started its 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 ANALYSISLow-end (Rs. 400-1000) Valued at 1200 Crores Sonata, Maxima Mass (< Rs. 400) Valued at Rs. 300 Crores Grey market, Chinese, etc.

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


PRODUCT AND PRICEPRODUCTBraille Janata Pilot Kohinoor. Dilip Sona Chinar Sweekar Kailash Rajat Kedar ADSL-03 ADSL 02

PRICE495.00 515.00 515.00 665.00 750.00 780.00 1175.00 1050.00 1050.00 995.00 1500.00 2295.00 2095.00

PLACE Showrooms Dealers Retailers Whole sellers


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PLC of HMT Watches


STRENGTH Strong govt. support Brand image Market leadership Good liquidity Availability of tangible assets

Established marketing network Prior experience


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


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 brandsSK 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 REPOSITIONINGCompleted all the stages of PLCIntroduction




New Marketing MixSegment (Demography)Low end

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


Mid upper

Automatic, steel or gold make, quartz/analog, water resistance and rich looks USB,MP3,trendy, attractive, stylish, water resistance and colorful. Automatic, multifunctional, quartz, digital, water resistance, gold and jeweled

Rs. 1,000-3,000

Urban Youth





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 Top level exercise No. of days Activities decided

7 9

Discussion & decision making on all ends likeBudget, Ads, etc. Training on New product features, competitors weakness & new targets.

Training of sales teams

Selection of activity 3 and places

Media engagement Radio Web and social media PR Events

The Repositioning CampaignCampaign Pre launch activity No. of days Activities decided

4 1

Full dress rehearsal and review of it.

The launch

The full fledged launch by the chairman and the brand ambassador in the presence of media and the dignitaries. Special counters whole week in shopping centers, frequent commercial on T.V. and radio, road shows and village fairs. Cover entire market with HMT cut outs.

Post launch activity


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?

Q2. You prefer your watch as?

Q3. Do you prefer a cell phone over watch for referring time?

Q4. What features do you consider while purchasing a watch?

Q5. For what level does the warranty of a watch affect you while making a purchase?

Q6. Which brand of watch you are currently using?

Q7. What motivates you to make your purchase?

Q8. Does the publicity of watches by celebrities affect your buying decision?

Q9. How often you switch off the brands?

Q10. What additional feature would you like to go for?