product and marketing strategy of hmt
DESCRIPTION
in this details regarding different products of hmt watches and reasons of its success and failures have been given. along with that the marketing strategy have also been explained . a little description about the different memorendun have also been given.TRANSCRIPT
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Segment(Demography)Brand Appeal for ProductPriceLow endRugged, basic time function, mechanical or quartz, water resistance steel and gold makeRs. 300-1000Mid upper Automatic, steel or gold make, quartz/analog, water resistance and rich looksRs. 1,000-3,000Urban YouthTrendy, attractive, stylish, water resistance and colorfulRs.1,000-5,000Executive/AchieversAutomatic, multifunctional, quartz, digital, water resistance,gold and jewelledRs.5,000-30,000Affluentclassy and customized, Jewelled, automatic, gold, Rs. =>30,000Kumar Mithilesh 2009A44IMC : HMT Watches8
Incorporated in 1953 by the Government of India as a Machine Tool manufacturing company.
Over the years diversified into Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting & Plastic Processing Machinery, CNC Systems & Bearings.
HMT : A Snapshot
The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan.
HMT Limited, the first company to start watch manufacturing in India; has incorporated "HMT WATCHES LIMITED" as its fully owned subsidiary on 9th August 1999.
It manufactures Mechanical and Quartz Analog watches.
HMT Watches : Profile
STRENGTHS
Strong government support.
Good brand image and market leadership due to high quality, low price and reliability.
Record of good industrial relations.
In 1991 HMT set up a product development center for watch design.
Bureaucratic and centralized decision making
inhibited HMT’s ability to respond quickly with
respect to market changes. It restricted product development to quality
development only. Aesthetics and packaging of watches have not
been duly attended too.
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Worldwide decline in the production and
demand of mechanical watches due to growing
acceptance of Quartz watches. Significant competition from Allwyn and Titan. Competitors wooing HMT’s top managers.Competitors successfully exploited the lifestyle
segmentation which HMT failed too.
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Titan had started marketing its watches in
unconventional outlets like boutiques and
jewellery shops.
The authorized service agents (ASAs) for
foreign smuggled watches in the country are
also offering competition to HMT.
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The demand for Watches is growing rapidly
both in domestic and international market.
Capitalize on attractive segments.
In coming years Fashion brands, luxury
watches and watches with multiple functions are
considered as the product segment with the
biggest growth.
Leveraging brand equity of HMT to products
such as sports gear, personal accessories.
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Product Few Designs as compared to competitors. 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.
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WRONG WITH HMT
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.
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Product
Create competitive advantage by
differentiation through technological
leadership.
The products should be developed to
enhance quality and features matching
customers tastes and preferences and
there by increasing buyers value.
Mid & Premium segment: In this
segment HMT should seek differentiation
by providing better designs
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PAST REVIVAL PLANS
• In 1998 HMT did MOU with Govt. of India.• The fund allotted was 220 crore• In 2007 again 400 crore were allotted for
revival.• In 2013 again 1087 crore were allotted for the
revival.
REVIVAL STRATEGY
THE LONG TERM COMMUNICATION OBJECTIVE FOR HMT WATCHES• To position HMT brand as the preferred
choice of watch by making the target audience aware of the new, rejuvenated HMT watches and by communicating the brand promise of HMT to them.
NEW MARKETING MIXSegment Price(Rs.)
Low End 300-1000
Mid Upper 1000-3000
Urban Youth 1000-5000
Executive/Achievers 5000-30000
Affluent Above 30
HMT COMMUNICATION MIX
ADVERTISING:• Broadcasting ads• Print ads• Brochures and the booklets• Bill boards• Point of purchase display• Symbols
SALES PROMOTION
• Contest, games and lucky draws• Gifts• Road shows and the fairs• Special discounts• Demonstrations• Rebates• Continuity program
DIRECT AND INDIRECT MARKETING
• Mailing• Telemarketing• Electronic shopping• Blogs• Websites• Word of mouth• Chat rooms
IMPLEMENTATION PLAN
ONE MONTH BEFORE THE LAUNCH• Teaser campaignTWO WEEK BEFORE THE LAUNCH• TV and the radio commercials should start
appearing in the prime time programs and the important events.
ON THE DAY OF LAUNCH• Conduct a press conference
ONE TO TWO MONTH AFTER LAUNCH• Increase frequency of commercials on TVSIX MONTHS AFTER LAUNCH• Should start of launching a new series