HMT Watches Revival of A Failed Brand
HMT Watches Revival of A Failed Brand
HMT Watches Revival of A Failed Brand
HMT
Watches
2009-11
Kumar Mithilesh
Roll No. 2009A44
CONTENTS
Contents..................................................................................................................... 2
Topic........................................................................................................................... 3
Long-term Communication Objective for HMT watches..............................................3
Brand Identity............................................................................................................. 5
Brand Personality....................................................................................................... 6
Brand Elements.......................................................................................................... 7
NEW MARKETING MIX................................................................................................. 8
HMT Communication Mix............................................................................................ 8
One voice One Message : Timekeepers to the Nation..........................................8
Advertising.............................................................................................................. 8
Sales Promotions................................................................................................... 10
Events & Experiences............................................................................................ 11
Public relationS & Publicity.................................................................................... 12
Direct & Interactive Marketing.............................................................................. 13
Personal selling..................................................................................................... 14
Implementation Plan................................................................................................ 14
How will you ensure that the Communication Model works to your advantage? What
specifically will you do for this?................................................................................ 15
Touch points of communication and their synergy...................................................16
Partners in the communication plan and synergy of all the actions in the IMC
exercise with and through them...............................................................................17
Evaluation of results w.r.t the Marketing Communications Mix?...............................18
TOPIC
To make an Integrated Marketing Communication plan for HMT Watches in order to re-establish
them as the leading brand in the Indian watch market.
Situation Analysis
HMT watches, a household name in the yester years, 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. Thats why I have
taken HMT watches to discuss re-positioning strategy of HMT brand and to chalk-out
complete IMC plan for HMT watches.
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, CNC Systems
& 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. Currently it has annual turnover of Rs. 800 Cr., out of which watches account for 25%.
The product range of HMT WATCHES LIMITED include more than 1500 models catering to all
segments of the market, from Economy to Premium and from Young to the Old.
HMT brand has enjoyed very high brand equity in the Indian Market. The brand has been adjudged as
HMT brand has enjoyed very high brand equity in the Indian Market. The brand has been adjudged as
one of the best Indian brands in surveys by leading agencies in the past. The Quality and Reliability of
one of the best Indian brands in surveys by leading agencies in the past. The Quality and Reliability of
HMT watches has been the main selling feature and attraction for the consumer. HMT enjoyed 71 percent
HMT watches has been the main selling feature and attraction for the consumer. HMT enjoyed 71 percent
of the market share in the sales of mechanical watches and 55.22 percent market share of the total watch
of the market share in the sales of mechanical watches and 55.22 percent market share of the total watch
production in organized sector as of year 1991-92. However, with the advent of quartz watches and
production in organized sector as of year 1991-92. However, with the advent of quartz watches and
intense competition, HMT started losing ground to its competitors. Sales slumped drastically in the
intense competition, HMT started losing ground to its competitors. Sales slumped drastically in the
following two decades. However, HMT couldnt quite hold their ground in the previous two decades. As a
following two decades. However, HMT couldnt quite hold their ground in the previous two decades. As a
result, sales slumped drastically. HMT needs to come up with a strategy to cater the needs of prevailing
result, sales slumped drastically. HMT needs to come up with a strategy to cater the needs of prevailing
market and make a niche of its own.
market and make a niche of its own.
(Awareness -> Knowledge -> Liking -> Preference -> Conviction -> Purchase)
Automatic Day-date
- Desh Ki Dhadkan
Roman
Utsav
Sangam
Lalit
Pace
Swarna
- Good as Gold
Shreyas
Chandan
Braille
Knowledge
Target
Audience
Liking
Promote
the brand
Preference
Conviction
Purchase
POP &
POD
Impactful
promise
Display &
Promote
BRAND IDENTITY
For HMT, the brand identity can consist of:
1.
2.
3.
4.
Values
Promise
Benefits
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.
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
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 appraochable 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, kapferers brand identity prism can be
depicted as follows:
BRAND ELEMENTS
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.
Colour
So far HMT has used only heavy colours like black, yellow, white etc. The new logo should have
background such as navy blue/maroon with texts written in bright (gold) colour so that the
youthfulness and honesty gets reflected. Also, symbols should be used instead of just numbers
inside the dial.
Design
Likewise the designs of watch frames should reflect the freshness and smart appeal while
maintaining its core of honesty, familiarity and confidence. The appearance should be attractive
and relevant. Now-a-days people prefer variety of irregular shapes such as square, trapezoidal,
oval etc. Hence, the new logo should be designed in keeping with customer prefrerences. Style
has to be renewed so as to attract youth towards the brand.
Taglines
Segment
Price
(Demography)
Low end
Rs. 300-1000
Rs. 1,000-3,000
Rs.1,000-5,000
colorful
Executive/Achievers
Rs.5,000-30,000
Rs. =>30,000
platinum
Existing: In the previous commercials of HMT, it used to have very formal and staid look with
the age-old designs being flayed.
Proposed: Since indian middle class is growing fiancially and getting more and more
aspirational, ad campiagn should focus on independent and aspiring dimensions of its audience.
Also, HMT will need to focus on touching emotional sentiments of indian audience and come up
with emotional ads featuring indian middle class and targeting their strengths and adding to it.
Radio ads can be aired on special slots such as morning/evening and on weekends/holidays.
2. Print Ads
Existing: Not encountered any ad for HMT watches.
Proposed: Ads of products in local news papers like Sakaal in Maharashtra, Hindi newspapers in
north, The Hindu in Tamilnadu, Enaadu in A.P. etc. Popular entertainment and lifestyle
magazines like India Today, Outlook, Manohar Kahaaniyan, Femina etc. can also be used. Also,
to infuse liking for the HMT brand at an early stage, ads should be given in kids magazines like
Champak. HMT should come up with print ad for its target audience and showing them how
closely brand is associated with them.
3. Packaging
As in case of display devices packaging need not be so attractive but an Indian mindset seeks to
derive value from packaging also. Hence, packaging should be such that the customer feels
proud to show it to others. Also, the case should be of some utility to the Indian consumer; e.g.
keeping something precious or memorable.
Existing: The packaging is very dull & ineffective and reflects an ordinary product.
Proposed: Packaging should be made more attractive with coloured logo on the box. It should
also be simple and easy for customer to take out the product.
Kumar Mithilesh 2009A44
IMC : HMT Watches
10
It must convey the message of the brand that wearing HMT watches makes its consumers
confident and assured.
Brochure should be designed with contents that are helpful to customer to understand the
product better
It should be clear and concise. User guide should be written in simple language
It should contain images of product to show its usability to the customer
Booklets should also provide details of the various features
It should be multilingual, so that a relatively less educated person can read and
understand the instructions and product features easily.
Leaflets
5. Billboards
Billboard, danglers and cut-outs should be placed at all strategic locations especially on the
busiest routes of city, near the bus stops, railway stations, places where common man goes e.g.,
circus, nukkad, cinema halls, haats, city market entrance etc.
HMT can even tie-up with Indian Railways to provide display of time at some of its most crowded
HMT can even tie-up with Indian Railways to provide display of time at some of its most crowded
Railway Stations. This will help the HMT brand to remind the older generation about its great
Railway Stations. This will help the HMT brand to remind the older generation about its great
watches and to make younger people familiar with the brand. Time is of essence to people there
watches and to make younger people familiar with the brand. Time is of essence to people there
and presence of HMT will enforce that it is a considerate brand for the common man.
and presence of HMT will enforce that it is a considerate brand for the common man.
Navy blue/ Maroon colour with silver shades should be used to project the new, energetic image
of HMT brand.
Kumar Mithilesh 2009A44
IMC : HMT Watches
11
Point of purchase displays would be a very important part of IMC strategy since a good
display would be the minimum expected to attract customers towards the brand.
The display style should be similar in all the stores (distributors & HMT showrooms)
The look and feel of display should match with the aesthetic of the model that we are
planning to launch
Displays should also be very attractive and give a feel of probable feel of product to
customers if they bought it.
7. Symbols
HMT already have symbol that is familiar to Indians; so we dont need to modify it or change it.
However, consistency must be maintained across all models in the colour and usage of HMT
symbol. It should appear at every place where a customer can connect with the brand.
SALES PROMOTIONS
Following tools can be used for sales promotion:
1. Contest, Games & Lucky Draws
With the launch of new product company should come up with contest like small quiz etc.
There can be lucky draw coupons with each product sale.
During festival seasons, these contests should be publicized in ad campaigns.
2. Gifts
Surprise gifts can be sent as courier after the sale actually happened. This type of gift distribution
help to strengthen the brand message communication that HMT is an honest and considerate
brand which cares for its customers. This may not help in direct increase of sale but will help to
build brand loyalty and word- of- mouth publicity.
3. Road Shows and Fairs
Road show and fair are the place where customer gets a chance to interact with the product and
they start forming opinion from there on.
4. Demonstration
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a) People going to offices, working in factories, students etc. can be our prospective
customers. Demo vans should be built and these products can be taken to target group so
that they can have a look on it.
b) Also, demo should convey the sense of pride of having HMT watches in their wrists.
5. Special Discounts/ Rebates
a) Company can give special rebate to senior citizens, old customers who had worn HMT
watches earlier. This will help to trigger a feeling of nostalgia among all those who had
used HMT watches earlier. Also, reminding them again that HMT cares for them. Also,
rebate can be given to defense personals and attractive offers to lower end segments.
b) Special discounts can be given during festive seasons and wedding seasons.
6. Continuity programs
This type of communication may be very useful to increase brand usage. Since most of the older
generation consumer would have still preserved their old HMT watches, we should prompt them
to buy New HMT watch by replacing their old watch (which they are not using currently). By
offering articles (FREE) such as diary, calendar, relevant booklets etc. with the new watches can
help us retain old customers.
EVENTS & EXPERIENCES
This communication medium will help in building brand association and awareness in consumer.
1. Sports
Sports have a huge fan following in India and every brand has benefitted being attached to it. I
suggest HMT to get associated with Cricket events such as World Cup, IPL etc. because of the
strong appeal of game with Indians. Having HMT logo on Score Board, HMT timeouts, HMT
breaks etc. may help in brand awareness.
2. Celebrity Endorsement (proposed)
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3. Entertainment
HMT can also gain mass appeal by being associated with events like Star Nights, Kaun Banega
Crorepati (KBC), Commonwealth Games, World Cup Cricket (2011) etc. HMT can give free
passes for these events to customers who buy HMT watches. This again shows HMT cares for it
consumers. HMT can associate with channels like DD 1, Aaj Tak, Sahara TV, Star etc.
4. Festival
As Indian consumer spend more during festival so HMT need to increase its availability and
visibility of products during festivals.
During Festival like Diwali, Id, Ganesh Puja, Chrismas etc; HMT Shops need to be decorated in
sync with festival atmosphere. This will help HMT
communicate with its customers that BRAND is with
them always and it shares their happiness and
prosperity.
PUBLIC RELATIONS & PUBLICITY
1. Press kits
There is nothing like if an independent (& unbiased)
source like press appreciates your brand.
Kumar Mithilesh 2009A44
IMC : HMT Watches
14
Before launch of any model, press should be invited and be briefed about the new features
of product. Also, they should be told how HMT is striving to serve India and HMT would
like to be a companion for life for the common public.
Also, a sample can be installed at office cafeteria of some popular newspaper to get
publicity.
Press reporters can be called to manufacturing unit and shown high quality production and
quality facility there. Also, new designs should be shown to them. They then publish all this
in newspaper, helping company to gain acceptance from lost customers.
Various senior leaders of company like marketing head should keep meeting press regularly
giving their opinion on different issues and use that forum to discuss about new
products/models also.
2. Seminars
Value of time should be stressed upon and then the role of HMT in keeping time. HMT should
also look forward to support seminar related to emerging technologies to live up with its
personality of being technology leader.
3. Publications
HMT can come up with a monthly newsletter telling what extra can be done in the field of
watches. HMT can motivate its R & D people to write about their upcoming models of watches
in these editions. Also, these publications should cover emerging trends so that even lifestyle
oriented customers find it interesting.
4. Community relationship
It makes sense for HMT to support events like Literacy Missions, Computer Education, Welfare
programs, etc.
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1. Catalogs
HMT can build a database of its customers and catalogue of its products can be mailed to them
depending on the chances when we feel that that consumer will buy a new product.
e.g. Suppose a customer which is newly married
refrigerator the next expected buy for them is washing do we can send them catalogs of various
models and available feature of our product. By this we will bring our product in the awareness
set of our prospective consumers.
2. Mailings
If company builds data base of its customers, regular mails can be sent to them about new
models launches. They may not buy a second watch themselves but they may recommend that to
someone who is close to them and considering to buy a watch.
3. Telemarketing
SMSs can be sent to prospective customers about new schemes and new products. SMS would
be much better than giving calling customers as it wont interrupt in their privacy.
4. Electronic shopping
HMT needs to develop this channel so that customers can weigh their options against a variety of
models. This mode might help HMT to build a modern, renewed image quickly.
5. Blogs
HMT can build communities in which people who are using a model can give their views on that
product. This will help company understand its customers and their responses better and also
give customers freedom to raise their complaints and issues in context of that product. By
involving customers during the product evaluation process, HMT is trying to tell that they are
honest and they care for their customers.
This is again in line with companys one voice mess that they are a considerate brand.
6. Website
Website should contain the complete details of all the different models with their features.
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It should have facility to compare HMT product with competitors. Customers would get an
impression that HMT understands competition and is open to sharing information; i.e.
confident, reliable and trustworthy image is reflected.
It should also host communities of customers based on the product they use.
7. Word of Mouth marketing
Person to person HMTs performance, supreme designs and affordable costs should compel the
people to talk favorably about it.
8. Chat rooms
Chat rooms can be setup where the customers can interact with experts form companies to get
their queries solved, this also go in sync with HMT strategy of caring for customers.
PERSONAL SELLING
1. Sales presentations
HMT should organize meeting in various cities across country where existing consumers can
come and give their view about the product they are using currently. Also, customers can
suggest modifications or improvements. This exercise will help companies to understand
consumer requirements and plan future product lines accordingly. Consumers can be given small
gifts/mementos in lieu of taking out their time.
2. Sales meeting
Sales force is an important part of communication strategy as it is the team that can check that
communication that company is using is it actually reaching the target audience .This team need
to be highly motivated and should work in sync with the core strategy or communication
message of the Brand.
3. Samples
HMT can also think of placing few of its new models on display at position where it can catch
eyes of people and in a way can give a trial experience to customers at these types of places for
FREE! These positions could be Railway Station, Metro stations etc.
IMPLEMENTATION PLAN
Kumar Mithilesh 2009A44
IMC : HMT Watches
17
I am here suggesting an implementation plan of launching a new series of Quartz watches for
HMT. The Implementation plan for one such model can be as follows:
One month before launch
Start with a teaser campaign in first two weeks prior to launch. This campaign should be such
that it indirectly hints the differentiating factor of our product and projects the come-back of one
of the most valued brands in India.
Teaser campaign: Consider a series of Quartz models in which the USP is great performance
/technological superiority. If HMT distributes hand-bands with HMT logo it would keep people
expecting that something new is going to come.
Two week before launch
TV and Radio commercials should start appearing in prime-time programs and important
events. The message that should say that something special that will be there with you for life
long, is coming. The launch campaign should read as
<HINDI > Aapke naye samay ka naya saathi!
<ENGLISH> Your companion for new time coming soon!
Various other communication medium that can be used are billboard, mailing, blogs, roadshows to create initial hype of product. Also, print ads should start appearing in newspapers like
Navbharat Times, Dainik Jagran, TOI, HT etc. and in magazines like India Today, Outlook etc.
Campaign should be started only a month before the launch because the watch market is very
competitive and it may lead to competitor launching similar product before us. So, we shouldnt
give competitors much time to respond. Idea here is to leverage on buzz of new HMT watches.
On the Day of launch
Model should be launched by some celebrity preferably the brand ambassador of company. Full
fledge press coverage should be provided. Also billboard should convey that product is in
market. On the day of launch, there should be one page advertisement in all important news
papers.
1 to 2 months after launch
Increase frequency of commercial on TV, radio and print media. Try to communicate the benefit
of product in these messages i.e. how this product is offering confidence to its customers. Other
communication mix elements to be used at this stage are emails, web sites, blogs, fairs etc.
In case we feel that communication strategy that we implement is not working, we can look back
and try to figure out where we went wrong and improve on it.
Six months after the launch
This is the time when sales will start showing less growth of that model and also company about
to start launching a new series. The resources in commercial can be reduced but product
completely shouldnt be removed out of communication.
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Campaign
No. of
days
Activities decided
Discussion & decision making on all ends like- busget,
ads etc.
Training on New product features, competitors weakness
& new targets.
Selection of activity
and places
Media engagement
Nine months after the launch, it is time to evaluate our IMC strategy.
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2. Sales Person: He /she is the person who will give first demo of the product to the
consumer, it is essential that he/she understand the message of brand and communicate
same to the customer.
3. Modern retail stores: This type of channel is emerging strongly these days .As this store
contain products of other brands to hence there are chances that your message can get
diluted in this. Therefore it is essential for a Brand to take care how communication is done
at these places.
4. HMT Shoppe: These are company owned outlets and are very important as these are the
place where brand messages should be communicated in purest form.
After Sales partners
1. Customer care representatives: These are very important partner as after buying for any
problem this will the first person in whose contact the consumer will come . The way
behave with consumer indicate the brand attitude.
2. Service Engineers: These are the people who will visit customer place for any problem
resolution hence these are also very critical part of IMC.
Since we see a wide variety of channel partners associated with our IMC campaign. Hence, it is
very much required that we send the same signal and message to consumers. This can be
archived by setting strong processes in the system. Consider following case for example:
Suppose we want a particular type of point of sale structure for our product display. Our sales
managers need to make sure that same type of structure is used at every palace where product
is available. It is very much possible that different partners have conflicting goals. We have to
make sure our message doesnt get diverted as it very important for us to build a brand strong
irrespective of the channel used.
As a brand owner we need to set check points and evaluation criteria to make sure our
message is getting correctly transferred to our target audiences.
HMTs ASMs need to make sure that all channel partners are working in sync. To bring synergy
with the mass media partners and publicity partners, at the onset of the campaign a small
corporate party will be held after the contracts with the respective parties are signed. The party
will not only brief up the partners about the campaign but also help them understand the
message to be sent across, and also spread the importance of the campaign among them.
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Way ahead: HMT should focus first on tier-1 and tier-2 cities and then gradually penetrate towards tier-3
Way ahead: 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 mobitowns and cities. Company has to position itself very carefully because other product variants like mobiwatch (watch with a cell phone) and handheld devices may try to snatch the share. The whole idea of buying
watch (watch with a cell phone) and handheld devices may try to snatch the share. The whole idea of buying
and wearing a watch must be an experience. If HMT can deliver above mentioned brand offerings with a
and wearing a watch must be an experience. If HMT can deliver above mentioned brand offerings with a
strong distribution chain, a controlled retailer policy, with a wide market research, future is no longer
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.
beyond their control. HMT will emerge as a winner.
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