HMT

Watches

By
TEAM - 3
 A STUDY
ON
SALES AND DISTRIBUTION
OF
HMT WATCHES AND ITS COMPETITORS
 OBJECTIVES
• Discuss Marketing mix

• To find out the reasons for the downfall of

market share of HMT watches

• Strategies for Repositioning the product

and Recapturing the market share
DIVISION OF HMT & TITAN WATCHES

HMT   TITAN
 WATCHES  WATCHES

BEARINGS
   JEWELLERY

 INTERNATIONAL PED 

 TRACTORS  TITAN EYEWEAR

 AGRICULTURE  

 MACHINE TOOLS  
 HMT WATCHES OVERVIEW
• First major watch manufacturer in India, an undisputed market
leader till the change in govt. policy
• Established in 1962
• Main Strength of the product : sturdiness,durability and reliability
• As a Consumer product lacks aggressive Sales promotion Strategies
• Absence of advertisement for more than 5 years
• Continue to holds a small market share among the old faithful loyal
customers
• Lack of new and trendy design has led to the erosion of value among
the new generation
• Maintains Strong Brand image
 TITAN WATCHES OVERVIEW

• A joint venture between the Tata group and the Tamil Nadu Industrial
Development Corporation
• Established in 1987
• Titan is today world’s sixth largest, integrated watch manufacturer and in
India’s the largest
• 4 factories - main watch and jewellery plant in Hosur near Bangalore , Watch
Assembly plant at Dehradun and in Himachal Pradesh, with an ECB plant in
Goa
• Investment of over US$130 million with area of 4,50,000 sq. ft. state-of-the-art
facility
HMT ORGANISATION STRUCTURE

MD

GM

JGM JGM JGM

RM (N) RM (E) RM (W) RM (S)

TITAN ORGANISATION STRUCTURE

MD
COO
BUH

NSM NRM

RSM RRM
ASM RE

SALES TEAM
WATCHES MARKETING
NETWORK
MANFACTURING UNIT OF HMT
WATCHES
MANUFACTURING PLANT

BANGALORE RANIBAGH TUMKUR

• QUARTZ • BRAILLE WATCHES

• ADD
• HANDBOUND • QUARTZ
• MECHANICAL
• CLOCKS • QUARTZ

• WATCHES CASES
MANFACTURING UNIT OF TITAN
WATCHES

MANUFACTURING PLANT

HOSUR DEHRADUN BADDI ROORKEE GOA

 CHANNEL OF DISTRIBUTION
HMT TITAN CHINESE
WATCHES
WATCHES WATCHES
DOCK
FACTORY FACTORY
DISTRIBUTOR
CO. SHOWROOM CFA
RETAILER
DISTRIBUTOR DISTRIBUTOR
CUSTOMER
RETAILER RETAILER

CUSTOMER
CUSTOMER
 HMT WATCHES

POOJA MARKETING
(TERRITORY DEALER)

3 SALES STAFF

URBAN BANGALORE RURAL BANGALORE

 It has 100 retailers approx.

 It covers both urban and rural areas
 Uncovered areas are taken care by the company showrooms
 TITAN WATCHES

ARUN DISTRIBUTOR
(Redistribution stockist)

3 SALES STAFF

160 Dealers

• 30 days credit period is given to the

Dealers.
 ROUTING AND SCHEDULING OF SALES
PERSON AT POOJA MARKETING (HMT)
no. of retail shops
30

25

20

15
25
10 19
14
5 9
7 6
0
Monday tuesday Wednesday Thursday Friday saturday
Chikpet Majestic Jaynagar Chikbalapur Kanakpura Devanahalli
road

 Highest sales in chickpet

 No. of sales person employed is 3
 No specific route followed by SP
ROUTING AND SCHEDULING
(TITAN WATCHES)

 SALES PERSON

 PLAN JOURNEY CYCLE PLAN(PJCP)

 VAN OPERATION
THETHE
MARKETING MIX
MARKETING MIX
 PRODUCT LINE OF HMT WATCHES

PRODUCT PRICE(in Rs.)

Low end models
1. Handwound Plain (Ladies) 275-550
2. Handwound Plain (Gents) 515-1050
3. BRAILLE for blind 550-650

Mid size
4. Utsav plain (ladies) 650-2500
5. Automatic model (Gents) 950-1600
6. Elegance (Gents) 1200-2345

High end models

7. Automatic model(gents) 2495-8000
 PRODUCT LINE OF TITAN WATCHES

PRODUCT PRICE(in Rs.)

Low end models
1. Titan sonata 275-1400
2. Titan fast track 1000-1495

Mid size
3. Titan fast track 1495-2495
2. Titan(Ex:-Octane,purple,Orion,wild) 2995-7995

High end models

4. Titan(flora,Heritage,Obaku,Raga diva) 8000-10,000
5. Xylys 8500-24000
Mid size -Rs.2995-10,000 High end models-Rs.58000-85,000

Top most models by TITAN NEBULA 18000-1,50,000

 PLACE
HMT TITAN
• Co. Showrooms • World of titan
• Territory Dealers • LFS(large format stores)
• Retailers • Distributors/Restockist
• Time Mart dealer

• CSD • Direct dealers

• Corporate Sales
 PROMOTION
HMT TITAN
• Normal dealer discount • Seasonal sales

• Normal retailer discount • Brand ambassador

• Advertising
• Consumer Discount

• Credit policy
PRODUCT LIFE
PRODUCT LIFECYCLE
CYCLE

TITAN
WATCHES

HMT
WATCHES
STRATEGIES FOR IMPROVING THE SALES
STRATEGIES FOR IMPROVING SALES
OF HMT WATCHES

•Company is seeking Intervention 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 sale promotions

•Co. has initiated the sale of watches through post office (Rs.20 discount)
 CONTD….
• Co. has initiated rural sale through ITC e-choupal in 2 states,

UP and MP

• Co. is also promoting the watch as a corporate gift /service

momentums amongst private and public sector employees

• Promoting sale of watches by organizing camps on various

organisations
• Few Examples such as:-
 BHEL 50TH ANNIVERSARY, BSNL 4,00,000 PAIRED WATCHES

 VISHWA KANADA SAHITHYA SAMELANA, AIR INDIA, UCO BANK

RECRUITMENT PROCESS OF HMT

• Post Subsidiarisation of HMTWL GOI in its approval , put a

ban on recruitment in the year 2000
• 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

RECRUITMENT PROCESS OF TITAN

• 3 KINDS OF RECRUITMENT
• CAMPUS RECRUITMENT

• REGULAR RECRUITMENT (THROUGH CONSULTANCY)

• INTERMOBILITY
 PERFORMANCE APPRAISAL AT HMT
WATCHES
The Employees are Categorized in 3 ways:-

• DGM’s & Above - Twice in a year

• AGM’s & Officers - Once in a year

• Workmen - On achieving the desired

targets, Increments are given
 SALES PERSON EVALUATION
(TITAN WATCHES)

• Appraisal are 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 evalution
ALL OVER INDIA HMT WATCHES SALES
COUNTRIBUTION REGION WISE

EAST
SOUTH 15%
35%

WEST
15%

NORTH
35%
 HMT AND TITAN
WATCH SEGMENT
HMT WATCHES TITAN WATCHES
Year Turnover in cr. Company Turnover in cr. Company
(Value in Rs.) growth% (Value in Rs.) growth%

2008-2009 9.22 Negligent 980 17%

2009-2010 10.3 Negligent 1180 21%

 Titan watches is growing at a High pace, year on year growth rate

 COMPARISON BETWEEN
HMT AND TITAN
COMPANY SALES INDUSTRY SALES
YEAR 2009-10 2009-10 Industry
(sales in units) (sales in units) market share
COMPANY Lakhs Lakhs

TITAN 100L 153.2 L 65%

HMT 2.2L 153.2L 1.44%

 SALES GROWTH RATE OF
HMT AND TITAN WATCHES
10

5
Sales growth in percentage

0
2008-09 2009-10
-5

-10

-15

-20

-25

-30
INDUSTRY ANALYSIS FOR THE
YEAR 2009-2010
Chart Title

Others
13%
Timax
10%

Maxima
10%

Titan
65%

HMT
1%
QUESTIONNAIRE
ITS CONSIDERED LUXURY BY JUST 11%
OF THE PEOPLE

90%
80% 89%
70%
Watches
60%
50%
Necessity Luxury
40%
30%
20%
10% 11%

0%
Reason to buy
OVER 60% OF THE PEOPLE PREFER PRICE
BETWEEN Rs. 1000 TO 5000
% Response to price

70% Figures in Rs.

60% 63%
50% 500-1000

40% 1001-5000

30% 5001-10000

20% 10001-15000
21%
10% 15% 1% 0% 15000 & above

0%
% response to price
 Brand,Design,Price,Durability is the
sequence of factors that influence choice

Response in %
Others; 0.18

Maxima;
0.03

HMT; 0.05 Titan; 0.46

Titan

Timex

Sonata
Sonata; 0.1
Maxima

HMT
Timex; 0.18
Others
Ads and electronic media account to
over 50% as source of information
60%

54%
50%

Ads
40%
Electronic Media
30% Friends

23% Others
20%
Salesman
14% 6%
10% 3%

0%
% response
 DEMAND FOR HMT IS AS LOW AS 2% IN COMPARISON TO 46 %
FOR TITAN AND 18 % FOR TIMEX
50%
46%
45%

40%

35%

30%

25%

20%
18% 20%

15%

10%
10%
TITAN Others
4%
5%
2%
TIMEX SONATA
HMT
Maxima
0%
 CONCLUSION

• The distribution channel of Titan is more wider as compared

to HMT
• 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
 CONTD……
•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
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