ACKNOWLEDGEMENT

Firstly, we would like to thank Prof. Mr. Mohan Kuruvilla, for his kind gratitude
and encouragement in doing this project in the field of sales and distribution.

We would also like to express our gratitude towards to Mr. N.H. Rizvi (Joint
general manager HMT), Mr. Sharma (Marketing Head HMT), and Mr. Gautam
(Sales Manager TITAN) Mr. Pradeep Sharma (Head of distribution) who helped us
in providing the relevant information and in completion of our study.

Lastly we would like to thank God for his blessing in successfully completion of
this project.
CONTENTS

Introduction.............................................................................................................................................................................. 3
Brand tagline of HMT…………………………………………………………………………………………………………………..4

Brand Identity…………………………………………………………………………………………………………………………5-6

Brand Personality……………………………………………………………………………………………………………………….7

Brand Element…………………………………………………………………………………………………………………………...8

Objective……………………………………………………………………………………………………………………………………9

HMT/India's watch Marketing………………………………………………………………………………………………….10

Distribution Channel………………………………………………………………………………………………………………..11

Industry analysis of watches……………………………………………………………………………………………………..12

PLC of HMT………………………………………………………………………………………………………………………………12

Strategies of HMT…………………………………………………………………………………………………………………….13

Comparison with TITAN……………………………………………………………………………………………………………14

Multi distribution channel of TITAN ………………………………………………………………………………………….15

Recruitment process…………………………………………………………………………………………………………………16

All over India's sales countribution……………………………………………………………………………………………17

Sales growth of TITAN & HMT…………………………………………………………………………………………………..18

Analysis of consumer behaviour………………………………………………………………………………………………...19

Conclusion……………………………………………………………………………………………………………………………….20

Recommendation…………………………………………………………………………………………………………………….21

2
INTRODUCTION

Situation Analysis

HMT watches, a household name in the recent past, have come to a stage where no
one is even aware of the brand name itself barring few of our elders. HMT, a
brand known for high quality and reliability has not done very well in the last
two decades.

About the Company

Based in Bangalore, HMT was incorporated in 1953 by the Government of India as
a Machine Tool manufacturing company. Over the years it diversified into
Watches, Tractors, Printing Machinery, Metal Forming Presses, Die Casting &
Plastic Processing Machinery, Agriculture & Bearings. Successful technology
absorption in all product groups through collaborations with world renowned
manufacturers and continuous in-house R&D have further strengthened the
company. During 09-10 it has annual turnover of 2,20,00(watches). The product
range of HMT WATCHES LIMITED includes more than 1500 models catering to
all segments of the market, from Economy to Premium and from Young to the
Old. 

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Brand Taglines of HMT watches: As-Is

TAGLINES
OF SUB BRANDS

The Mechanical Range

Hand wound Gents & Ladies - Desh Ki Dhadkan

Automatic Day-date - The Watch that lasts & lasts

Series of Quartz Watches

Elegance - It’s all about YOU

Roman   - ONLY For MEN

Utsav   - The Well Dressed Watch

- Absolutely Modern, Absolutely

Sangam
Indian

- Value for Money, For those

Lalit  
who value Money

Pace   - For cute faces

Swarna   - Good as Gold

Shreyas - Sign of Good Times

Chandan - The fragrance watch

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 Braille    - A gift of time to the blind

BRAND IDENTITY

For HMT, the brand identity can consist of:

1. Values
2. Promise
3. Benefits
4. Personality

1. Values: The value of Brand is derived from the heart of HMT corporate mission.

HMT Philosophy
 To achieve market leadership in India through ensuring customer satisfaction
 To provide affordable watches to common Indian by maintaining
technological leadership

The values of the brand can be derived from following factors:

A) Culture: Since the name itself (Hindustan Machine Tools) is synonym of

India; HMT stands for Indian culture that is familiar, diverse, honest and
responsible. One who wears HMT watches would feel proud of Indian
culture.

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 B) Innovation: HMT believes in providing world-class innovative product and
services. It believes in superior technology for providing delightful
experience to its customers.

C) People: HMT provides an active, pleasant and productive work

environment to its own employees

D) Passion: Passionate to provide product and services of global

competitiveness. HMT’s goal is to maintain India’s leap in high-quality,
technology led innovations.

2. Promise: The HMT brand promises to provide assured and confident moments
to its customers. HMT assures of a world-class product which an extremely
reliable and high-quality performance.

3. Benefits: It would provide benefit in the form of long-lasting products, Ease of

use, life-long bonding with common Indian - i.e. an extraordinary experience.

4. Personality: It reflects a Lively, Strong, Confident, Considerate and Friendly

person.

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BRAND PERSONALITY

The Brand personality is derived from its innovation, honesty and indian origin.

These core attributes of personality lead to following aspects of brand:

 Strong
 Honest
 Innovative
 Self Confident
 Inspiring
 Re-charged

All this makes HMT a brand which is deep-rooted in Indian hearts. It is

approachable and straightforward. It is honest and hard-working. It is youthful,
tech savvy and Nimble. It is sensitive and responsible too. It wins hearts.

Since we are clear about brand personality of HMT, kapferer’s brand identity
prism can be depicted as follows:

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BRAND ELEMENT

Logo

The HMT Watch logo should use the HMT Group master brand as the primary
identifier of all HMT products. In all geographic regions, emphasis and focus
should be on the HMT logo in all divisions and on all products. Even while
communicating the sub-brands; hmt logo should be emphasized in order to
promote awareness of the parent brand.

HMT COMMUNICATION MIX

HMT mechanical watches are at the decline stage of their PLC while Titan
watches are currently at the growth stage.

CHANGING CONSUMER OR CHANGING CATEGORIES?

The trick is in figuring out changing consumer trends and preferences and
rejuvenates the brand accordingly. Brand’s become obsolete due to a combination
of various factors. A brand can be defined as a set of images & perceptions that a
consumer has. If those perceptions are not in keeping with the changing consumer,
the brand could be obsolete. HMT watches come to mind as an example. It appears
that HMT failed to convert its perceived weakness of a mechanical watch into a
strength. It also failed to keep pace with the changing consumer trends by not
projecting a modern, attractive imagery through product innovation, advertising,
merchandising etc.

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OBJECTIVES:

 Discussing the distribution channel of HMT with its competitors

 To find out the reasons behind the downfall of HMT Watch ltd
 Strategies for Repostioning and Recapturing the Market share

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INDIA’S WATCHES MARKETING NETWORK

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11
PLC OF HMT WATCHES:

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RECRUITMENT PROCESS OF HMT:
• Post Subsidiarisation of HMTWL GOI in its approval and put a ban
on recruitment
• Recruitment is restricted to engagement of Professionally qualified
persons with specific approval of the board.
• Internal recruitment is resorted to fill vacancy
• On the job training
• Average age of employees 51 years

STRATEGIES FOR IMPROVING SALES

• Company is seeking DHI Intervention for sale to promote sales to

other public sector
• The employee resource network is been utilized for sale of watches
• All the manufacturing units have teams to visit districts to promote
rural marketing
• Co. is also participating in all state level events for promotion of
sales
• Co. has initiated the sale of watches through post office (Rs.20
discount )
• Co. has initiated rural sales through ITC e-choupal in UP and MP
• Co.is also promoting the watch as a corporate gift /service
momentums amongst private and public sector employees
• Promoting sales of watches by organizing camps on various
organisation

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 Comparison of HMT with
TITAN watches

• A joint venture between the Tata group and the Tamil Nadu Industrial
Development Corporation

• Launched in 1987

• Titan is today world’s sixth largest, integrated watch manufacturer and

India’s largest

• 4 factories - Main watch and Jewelry plants in Hosur near Bangalore

( India’s ‘Silicon valley’), Watch Assembly plants at Dehradun and in
Himachal Pradesh, with an ECB plant in Goa

• Investment of over US$130 million.with the area of 450,000 sq.ft. state-of-

the-art facility

Titan divided into 4 divisions

 Watches

 Jewelry

 PED

 Titan eye wear

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The watch division is divided into
 Titan

 Sonata

 Fastrack

MULTI DISTRIBUTION CHANNEL OF TITAN:

 World of titan
 Large format store
 Distributor dealer
 Direct dealer
 Corporate sales

CHANNEL DESIGN
 FACTORY
 CFA
 DISTRIBUTOR
 RETAILER

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DISTRIBUTION CHANNEL OF BANGALORE
ARUN DISTRIBUTOR

3 SALES STAFF (22TOWNS)

SMU 160 DEALERS

RS

RECRUITMENT PROCESS:

• 3 KINDS OF RECRUITMENT

• CAMPUS RECRUITMENT

• REGULAR RECRUITMENT (THROUGH CONSULTANCY)

• INTERMOBILITY

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SALES PERSON EVALUTION:

• Appraisal is done half yearly and yearly

• The sales team is given KRA (parameters, responsibilities to be

followed) will be matched with the performance of the sales
personnel at the time of evolution.

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ALL OVER INDIA SALES CONTRIBUTION REGION WISE

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19
ANALYSIS OF CONSUMER BEHAVIOUR AFTER
EXAMINING THROUGH QUESTIONNAIRE

 Transition from mere time keeping device with functional benefits like
durability, toughness and economy to a personal wear reflecting
people’s lifestyle and aspirations
 Price sensitive
 Durability and utility are important aspects
 Aesthetic appeal and trendy designs are very important
 Brand Name continues to be an important driver in the customer’s mind
 Availability in different segments and for different occasions makes the
watch a suitable gift item

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 CONCLUSION

 The distribution of channel of Titan is more wider as compared to HMT

watches.

 Titan adopts lot of promotional strategies which enhances the company’s

growth.

 Titan is very adaptive, flexible and interprets the market based on hard facts
and data which helps the management to place the products in the customers
mind in an attractive and trendy manner.

 Hmt has failed to do this, making products not keeping customers

requirements in mind therefore the position of Hmt as a watch maker has
stagnated and declined over the years.

 We feel the major contributor to the decline of Hmt is the inability of the
management to take immediate actions without the approval of government
which seriously hinders and impacts to the functioning of the company.

 Due to the above reason Hmt has become an unfavourable place of work
where people who are well capable also shy away from the opportunity.

21
 RECOMMENDATION

 HMT should invert much more on advertising, promotion, compensation.

A few more suggestion includes:-

• Since the major population in India is youth, they should come out with
trendy watches for them.

• Marketing strategy:-HMT could have emphasized on Mechanical watches

only and could have provided a greater competition to Titan by selling over
the strength of Mechanical watches.

• It could have innovated various ways of advertisement (celebrities,

discounts, sponsoring events etc.), sales and promotion, marketing
(renovating stores, making distribution channel more efficient etc.), getting
customer feedback, adopt the changing market conditions etc.

• Faster production of new models of watches for catering to the changing

needs of the customer.

• Visibility:-HMT can hire brand ambassador in which all latest designs

launched are displayed. This will increase the visibility.

• Majority of the population in India live in rural areas. So, showrooms should
be set up at places nearer to them.

22
• After sales service has to be improved. That is, the process of servicing and
repairing of watches should be made faster.

• Introduce sales promotion for Canteen sales depot as they do not have any.

23