Phoenix_Welingkar Institute Of Management,Mumbai_Smiling Assassins

Competency

Cost Scope

Legacy

Legacy §  HMT was an erstwhile

market leader in the watch manufactur ing industry.

§  It had the market share of around 55.2% in watch industry(1990-‐1991).

Competency §  Only company in India

t h a t m a n u f a c t u r e s mechanical automaHc watches.

§  Foreign made mechanical watches are imported to India at high costs.

Scope §  According to a study by

Ken Research ConsulHng, the Watch industry in India is expected to rise at CAGR rate of 23.3 % in the period FY’2014-‐FY’2018.

Cost •  The high precision

engineering involved in Mechanical watches drives manufacturing costs. HMT has the capability to produce high quality watches at economical prices.

Why HMT History Ideas Sustainability PromoHon PosiHon Mapping Research Behavior

HMT Watch Business group was re-‐structured as HMT Watches Limited (a Wholly Owned Subsidiary of HMT Limited)..

Two watch factories were se t up i n B a n g a l o r e a n d S r i n a g a r w h i c h s t a r t e d m a k i n g components.

HMT Watches started making Floral Clocks, Solar Clocks, InternaGonal Clocks, Master-‐Slave clocks and Tower Clocks.

The manufacture of wrist watches started in the year 1962, under Technical collaboraGon with CITIZEN Watch Company of Japan.

1962 1972-‐75 1985 2000


Design Studio §  To introduce contemporary and

trendy design as most HMT watches sHll has a 1950’s look and feel.

§  An engraving of “Made in India” on watches to introduce a sense of Indian culture and pride in the watches.

Product Line(Brand PosiGoning) §  Introduce new lines to a_ract different

niche segments of customers. §  New segments like

ü  Professional-‐ Divers, Aviators,Racers ü  Nostalgia-‐Sangam, Utsav Sona ü  Jwellery ü  Designer ü  Special EdiHon-‐ Indianess

Revamp DistribuGon Network §  Introduce “HMT Age” a retail and

servicing arm of HMT to sell its watches in malls,markets.

§  Tie up with retail shops to display HMT watches in china cabinets.

§  Increase the conservaHve margin of 2% currently offered to retailers

Explore UnconvenGonal Avenues §  Set up duty free shops in airports with

special ediHon watches e.g watches engraved with the Taj Mahal to a_ract tourists.

§  Offer free watches and other goodies to consumers who convince their retailers to stock HMT watches.


Avoid Piracy §  Every HMT watch will have an unique

serial number engraved on it and will come with an cerficate of authencity to prevent customers gehng cheated with knock offs.

HMT Club §  A membership club which every consumer

is by default placed on purchase. §  Perks include free maintainence ,

cleaning ,polishing ,discounts on birthdays and other important days.

§  Premium customers will be given faciliHes like pick up and delivery, credit extension.

Consumer Engagement §  Conduct compeHHons and invite

winners to show them the process of manufacturing watches.

§  Consumers will be intrigued by the careful assembling of gears and other components like main spring,hair spring and shock absorber.

Go Digital §  Plan an extensive digital campaign and He

up with ecommerce websites to stock HMT watches.

§  AcHvely indulge in cosnumer forums like watchuseek to efficiently deal with consumer needs.


HMT INSTITUTE OF HOROLOGY •  1st insHtute of Horology in India.

•  Online and correspondence courses for watch enthusiasts’.

•  Free training for underprivileged students.

•  Will increase the brand value of HMT and increase interest in watches in India.


Indian Army §  The Indian armed forces are

synonymus to discipline and punctuality.

§  HMT can promote its brand by being a promoHon gij or a graduaHon gijs for army officers.

Indigo(HMT Indigo Standard Time) §  96% of Indigo flights are on Hme. §  HMT can He-‐in with Indigo to brand its

annouced Hme as HMT indigo Standard Hme.

§  It can offer premium range of watches in Indigo’s Hello 6E inflight magazine.

§  It can target premium high earning customers.

Watches in StaGons §  HMT can adverHse the watches in

railway plamorms across India. §  By doing so,it can promote its

products to the farthest corners of India and also reach out to millions of consumers across India.

Novelty Watch AXracGon §  HMT maintains the clock towers, floral

clocks ,solar clocks across India. §  It can promote its products by adverHsing

in popular tourist a_racHon like the Bangalore garden clock.


Time keepers of Test Cricket §  Sessions in test cricket are Hmed

according to the tower clock in the stadium.

§  HMT can sponsor such clocks across different stadiums in India and reach out to fans across India.

Event PromoGons §  Brand can promote specific Product lines

by parHcipaHng in related events. Eg: Car Racing Rallies, Swimming/Diving compeHHons, etc.

§  HMT can sponsor F1 racing , NASCAR and internaHonal events to promote its racing line.

Celebrate Indianness §  Offer lucraHve discounts on naHonal

holidays like Republic Day. §  Special ediHon watches which

depicts Indian culture and tradiHon. §  Promote HMT watches by sehng up

kiosks in tourist places like TajMahal.

Design your Time §  Offer customized line of watches in

premium category. §  Watches in this segment can be assembled

with the premium components. §  CustomizaHon may include engraving of

names , iniHals in dimonds, rubies etc.


ObjecGve §  The objecHve of this report

is to derive a perceptual mapping of HMT with other compeHng brands of its segment.

§  The method of mapping to be used is non-‐a_ribute based mapping.

§  The perceptual map created will help us determine the distance between HMT and other bands


Perceptual map of Watch brands

Methodology §  The product segment, which was

analyzed, was watch industry. §  The brands menHoned were divided into

7c2 = 21 pairs. §  The data were collected from 60

respondents. §  Respondents were asked to rate the 21

pairs with the raHngs between the range of (1-‐10)

1= Most Similar 2=Most Dissimilar

Brands §  HMT §  Titan §  CiHzen §  Seiko §  Skagen §  Fast Track §  Sonata

Key Insights §  Customers perceive HMT as a

compeHHon to market leader Titan with similar a_ributes.

§  The distance between HMT and Titan is low indicaHng customers feel that both brands have similar a_ributes


Sample Overview §  No Of Respondentsè 50 §  Males è 62% §  Females è 38%

Age group §  16-‐20 years à 28% §  21-‐25 years à 6 % §  26-‐30 years à 40 % §  31-‐ 35 years à 14 % §  >35 years à 12 %

Income Range §  < 5 lakhs ! 22% §  5 – 10 lakhs ! 62% §  > 10 lakhs à 16%

84%

16%

HMT Brand Knowledge

Yes

No

54%

8%

38%

0% 10% 20% 30% 40% 50% 60%

Titan

Timex

Others

Brand preference

Brand preference


8%

60%

20%

2%

Essence Of Watch

Collecter's Item

Style Statement

Tells Time

Obselete

Behavior /AspiraGons §  Wearing watches is a fashion statement

rather than a uHlity. §  Consumers are more concerned about the

brand of the product, the technology used and design of the watches.

§  Though watches now a days can be delivered at consumer’s door step availability is not a major concern.

§  Titan is the most preferred brand but the others consisHng a major internaHonal players have a strong demand

34%

26%

10%

24%

6%

0% 10% 20% 30% 40%

Brand

Look

Cost

Technology

availability

CriGcal AXribute

CriHcal A_ribute


Channels(TradiHonal)-‐ •  TV •  Bill boards •  Posters •  Radio •  Newspapers •  Magazines (Digital) •  Facebook •  Twi_er •  Email •  Search Engine OpHmizHon •  Mobile(Apple, Android)

Tag line “Timekeepers to the naGon”

•  Tagline showcases the rich history and tradiHon of HMT watches.

•  HMT can build on this trust and legacy by providing its customers quality products.

Phoenix_Welingkar Institute Of Management,Mumbai_Smiling Assassins

Marketing

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