Brand Revitalizing Strategy

HMT Watches
Anupreet Singh 09
Avleen Singh 13
Bhavya Murali 16
Natasha Ahuja 34
Neeharika K 36
Saahil Chotani 54
Sanchit Shandil 59
OBJECTIVES OF STUDY
 To analyze the reasons for the failure of the brands
 To rejuvenate and revitalize the HMT brand
 To reposition the brand in the best possible way
 To change the consumer attitude towards HMT

watches
 To give recommendations as to improve the sales of

HMT watches
INTRODUCTION
HMT: Hindustan Machine Tools
Established : 1962 by GOI
Corporate office: Kolkata
Manufacturing Centers: Srinagar, Ranibagh, Tumkur
& Bangalore
Chairman: A V Kamat
METHODS OF DATA COLLECTION
 Primary Research: Questionnaires

 Secondary Research:
 Online Case Studies
 HMT Website

 Sample Size: 35
SAMPLING
Age Group Frequenc
y
0 to 10 2
10 to 20 4
20 to 30 6
30 to 40 7
40 to 50 8
50 to 60 6
Above 60 2
Total 35

Gender Wise Distribution

Male Female Gender Frequency
Male 18
Female 17
49% 51% Total 35
FINDINGS
Brands Frequency
Brands worn by respondents
Titan 12
Fastrack 6 Titan Fastrack Timex Sonata HMT Any other

Timex 3
17%
Sonata 4 34%
HMT 4 11%

Any other 6 17%

11%
9%

Classification of Watches
22
15 Type of Watch Frequency
2 5 5
1
0
Frequency Corporate Watch 2
Sports Watch 5
Casual Watch 22
Luxury Watch 5
Theme Based Watch 1
Total 35
 FINDINGS
Perceived Quality of Watches of HMT
Perceived Quality of Watches of HMT Frequency
20 17
1 - Low 3
15 Frequency
2- Fair 2 8
10
5
3 - Medium 8 5 3 2
4 - Good 5 0
5 - High 17 1 - Low 2- Fair 3 - Medium 4 - Good 5 - High

Total 35

Attributes Consumers associate with HMT

Patriotic Ambitious Inspirational Attributes Consumer associate with HMT Frequency
Adventurous Trustworthy Any other Watches

4% Patriotic 26
28% Ambitious 10
33% Inspirational 18
Adventurous 4
11% Trustworthy 30
4%
20% Any other* 4
Total 92
FINDINGS
Advertisement on different mediums for
Advertisement Seen by HMT Watches Frequency HMT Watches
TV 26
30 26
Newspaper 5 Frequency

Magazine 4 20

Hoardings 0 10 5 4
Radio 0 0 0
0
Total 35 TV Newspaper Magazine Hoardings Radio

Awareness of HMT Watches Ads

Yes No

11%
Awareness of HMT Watches Ads Frequency
Yes 31
No 4
Total 35
89%
 FINDINGS
Motivation to buy a watch
Motivation to buy a Watch Frequency 26
30
Self 26
15
Friends/Family 3 3 3 2 1
0 Frequency
Electronic Media 3
lf ily ia r
gs
Se m ed ape in
Newspaper 2 a M sp rd
s /F ic w oa
on e
Hoardings 1 end tr N H
i
Fr ec
Total 35 El

Influence of celebrity Brand Ambassadors

Yes No

Influence by Celebrity Brand Ambassadors Frequency

20% Yes 28
No 7
Total 35

80%
 PERCEPTION MAPS

Quality Brand
Value

Price Aesthetic
Appeal
HMT

Fastrack

Titan

Others
SWOT ANALYSIS
 Strengths
◦ Strong government support

◦ Has an established marketing network

◦ Record of good industrial relations

◦ In 1991 HMT set up a product development center for watch design

◦ Indian Belief

 Weaknesses
◦ Weak Organizational culture

◦ Production Concept of Marketing

◦ Insufficient emphasis on R&D and design engineering

◦ Aesthetics and packaging of watches have not been duly attended to

SWOT ANALYSIS
 Opportunities
◦ High Demand in industry
◦ Leveraging brand equity of HMT to products such as sports gear, personal
accessories
◦ Capitalize on attractive segments

 Threats
◦ Declining Market Share
◦ Low Sales
◦ Competition from Titan, Fastrack
◦ Last Stage of PLC
Market Analysis
• Mass (< Rs. 400) • Price Range: Rs 400-1000
• Valued at Rs. 300 Crores • Valued at 1200 Crores
• Grey market, Chinese, etc • Sonata, Maxima

Mass Low End

Mid
Premium
Upper
• (Rs. 1k - 5k) • > Rs. 5k
• Valued at 938 Crores • Valued at 370 Crores
• Titan, Citizen, Timex, • Swiss brands: Tissot,
• Swatch, Espirit Omega, Rolex
• Fashion brands: Fossil,
Calvin Klein,
• Giordano, Esprit
REASONS OF FAILURE
 Did not plan for post liberalization.
 A large number of staff, including persons of general
manager's rank, had left the organization to join the rivals
 The biggest threat came from watch manufacturers in the
unorganized sector and fake parts and components.
 They have even detected our dealers' connivance in selling
other brands
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
BRAND REVITALIZING STRATEGY
TMS: Mid-upper Segment
Segment Product Price
(Demography)

Low end Rugged, basic time function, Rs. 400-1000

mechanical or quartz, water
resistance steel and gold
make.

Mid upper Automatic, steel or gold Rs 1000 – Rs 5000

make, quartz/analog, water
resistance and rich looks

Urban Youth Trendy, attractive, stylish, Rs 1,000 – Rs5,000

water resistance and colorful.

Executive/Achievers Automatic, multifunctional, Rs2,000 – 20,000

quartz, digital, water
resistance, gold and jeweled
PLACE
 Company owned outlets
 Retailers
 Authorized dealers
 Jewellery 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
PROMOTION
 Radio:
Sponsoring morning / evening slots

 Public relation:

Organizing press conference

 Events:
Promotional activities at Malls, road shows,
participating in live shows and trade fair, partnering with colleges, b-schools

 Social Media
◦ Facebook
◦ Youtube
◦ Twitter
REPOSITIONING STRATEGY
 USP: International Quality, The Indian Style
 Attractive Company logo and tag line like
 Undertake the socio marketing concept instead of product concept.
 Focus on two 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.
REPOSITIONING STRATEGY
 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.
PRODUCT OFFERINGS
Target Name of Watches Price (Rs)
Kids Splash – Bright Vibrant Colors, 600 - 1200
the Joy of Life
Toons – Your favourite Toon, 500 - 1000
Your Favourite Watch
Teenagers Xtreme (Males) – How strong 1500 - 2000
are you?
Elan (Females) – How beautiful 1500 - 2000
are you?
Women Pearl 2000 - 5000
Newly Married Rishtey – Ek Nayi Shuruwat 6000
Couples
Youth Catalyst 1500-3500
THE REPOSITIONING CAMPAIGN (30 DAYS)

Campaign No. of Activities decided

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

Training of 9 Training on New product features, competitors

sales teams weakness & new targets.

Selection of 3 • Media engagement

• Radio
activity and
• Web and social media
places • PR
• Events
REPOSITIONING CAMPAIGN
Campaign No. of Activities decided
days
Pre launch 4 Full dress rehearsal and review of it
activity
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
RECOMMENDATIONS
 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.
OO
NS
THANK YOU