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Chapter No. 1

2

Introduction

1.1 Introduction

Wrist Watches form an integral part of the personality of individuals in the present

era. Earlier seen as a luxury item, they are now witnessing a fundamental change in

perception, and are now gaining respect as an essential utility item. For the watch

industry, time seems in its favour what with the liberalization of the Indian market

coupled with the rising purchasing power of the young and consumerist Indians.

Indian watches market was for long dominated by public sector organisations like

Hindustan Machine Tools Ltd. (HMT) and Allwyn (also famous for its refrigerators

once upon a time!), and has now left the pioneers far behind or nowhere in market by

private sector enterprises like Titan, Sonata, Ajanta and Timex along with foreign

entities jostling for display space in the smallest of shops selling these products.

Before the establishment of HMT as the dominant player in the Indian markets

initially, the country was solely dependent on imports to meet the internal demand.

However, establishment of HMT as the leading player in the wrist watch segment in

the 1960‟s, changed the scenario.

In post liberalization India, the market stood to witness intensive competition between

foreign and Indian manufacturers like Timex, Titan, Movado, Longines, Rado, Rolex,

Fréderique Constant, Mont Blanc, Swatch, and many others. Many watch makers

have made significant inroads in the industry and others are in the process of

establishing themselves, currently.

Besides this, buyers are extremely choosy about the brand and type of wrist watches

they wear. Being extremely brand conscious, their tastes have evolved over the years

and have gone beyond the realms of durability to choose in terms of aesthetics and

elegance. Thus it is a buyers market with multitude of designs that have entered and

flooded the market place.

The size of the watch market currently is estimated to be around 40 to 45 million

pieces annually. The organized sector alone contributes up to 30 percent of this figure,

and the rest of the demand is being met by the unorganised grey sector. This data is

significant indeed in view of the socio economic distribution of the Indian populace.

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More than 58 percent of the population is under twenty five and more than 80 percent

of the population is below 45 years of age.

In the end, though India is still considered to be a difficult market to penetrate, due to

reasons like price sensitiveness and its largely unorganised sector. However, with the

right planning and the right partners and experienced collaborators, it is expected that

both international and domestic watch manufacturers will do well in the Indian

markets.

1.2 History

Patek Philippe created the first wristwatch in 1868 for Countess Koscowicz of

Hungary. In 1880, Constant Girard (Girard-Perregaux) developed a concept of

wristwatches, made for German naval officers and ordered by Kaiser Wilhelm I of

Germany. Two-thousand watches were produced, which represents the first important

commercialization of wristwatches for men; wristwatches were mostly worn by

women until the First World War.

In 1904, Brazilian aviator Alberto Santos-Dumont asked his friend Louis Cartier to

come up with an alternative that would allow him to keep both hands on the controls

while timing his performances during flight. Cartier and his master watchmaker

Edmond Jaeger soon came up with the first prototype for a man's wristwatch called

the Santos wristwatch. The Santos first went on sale in 1911, the date of Cartier's first

production of wristwatches.

Indian Watch industry is estimated to be around 1600 crores and Titan is riding on top

of it with a market share of over 50%.

This is a super brand that has changed the way we look at ( or wear) watches. A

marketing success story, Titan is a brand that will be of interest to most of the

marketers. Titan , a brand from TATA was launched in 1987. During that time Indian

watch market was dominated by HMT . At that time watches were seldom stylish and

was catering to the basic need of knowing the time. Titan changed all that. With its

stylish watches and smart advertising ,Titan took the market by storm. Titan infact

changed the way watches was manufactured and marketed in India. HMT , a public

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sector company seldom bothered to respond.

1.3 Indian Wrist Watch market

50 million wristwatches are sold in India every year. Notwithstanding the presence of

global players and the opening up of the market, the Indian market has always been

dominated by a single player. In the past, till the late 80‟s, in the mechanical era,

HMT dominated the market. And after that it has again been the domination of a

single company, Titan. Today Titan has almost 65% market share of the organized

watch market in the country. The organized watch market itself is estimated at 35% of

the total industry size.

In value terms the size of the organized market is estimated at around Rs. 1500 crores,

which means that the average price of watches sold even today is less than Rs.1000!!!

Watches are typically segmented into specialist watches and fashion watches. All

International watch brands have a clear position as to where they belong. In India

most sales are in the fashion segment and this fine distinction has not yet been used by

marketers. Male watch buyers far outnumber females and account for around 65% of

sales. Students are the largest segment of buyers accounting for approximately 30% of

the sales.

Since penetration is still low and the unorganized sector big, this industry has a lot of

scope to grow both in value and volume. The jury is still out though whether the

Indian companies like Titan will lead this growth or the global majors like Seiko,

Citizen etc. After all the domestic players have hitherto grown because of a retail

strategy and the wining global players are clearly focused on product

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1.4 About Wrist Watch

Mechanical movement

Compared to electronic movements, mechanical watches are less accurate, often with

errors of seconds per day, and they are sensitive to position, temperature and

magnetism. They are also costly to produce, require regular maintenance and

adjustment, and are more prone to failure. Nevertheless, the craftsmanship of

mechanical watches still attracts interest from part of the watch-buying public.

Skeleton watches are designed to leave the mechanism visible for aesthetic purposes.

Mainspring

Traditional mechanical watch movements use a spiral spring called a mainspring as a

power source. In manual watches the spring must be rewound periodically by the user

by turning the watch crown. Antique pocketwatches were wound by inserting a

separate key into a hole in the back of the watch and turning it. Most modern watches

are designed to run 40 hours on a winding and thus must be wound daily, but some

run for several days and a few have 192-hour mainsprings and are wound weekly.

Automatic watches

Automatic watch: An eccentric weight, called a rotor, swings with the movement of

the wearer's body and winds the spring

A self-winding or automatic watch is one that rewinds the mainspring of a mechanical

movement by the natural motions of the wearer's body. The first self-winding

mechanism was invented for pocket watches in 1770 by Abraham-Louis Perrelet, but

the first "self-winding", or "automatic", wristwatch was the invention of a British

watch repairer named John Harwood in 1923. This type of watch allows for constant

winding without special action from the wearer; it works by an eccentric weight,

called a winding rotor, which rotates with the movement of the wearer's wrist. The

back-and-forth motion of the winding rotor couples to a ratchet to automatically wind

the mainspring. Self-winding watches usually can also be wound manually so they

can be kept running when not worn or if the wearer's wrist motions are inadequate to

keep the watch wound.

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Chapter No. 2

7

Company Profile

Definition:

Concise description which, among other items of information, includes

(1) firm's history,

(2) number and quality of its human, financial, and physical resources

(3) organizational and management structure,

(4) past, current and anticipated performance, and

(5) its reputation, and the standing of its goods or services.

Titan Watches

2.1 Introduction

Being the world's fifth largest integrated own brand watch manufacturer, Titan

Company has created and sold more than a 150 million pieces the world over.

With a production rate of over 15 million watches per annum and a customer base of

over 135 million globally, Titan Company owns manufacturing and assembly

operation centres in Hosur in Tamil Nadu , Dehradun, Roorkee, Pantnagar in

Uttaranchal and an Electronic Circuit Boards (ECB) plant in Goa, all in India.

Capturing the important market segments and the changing fashion trends, Titan

Company has brought forth four core watch brands:

• Titan which is designed for the mid-premium segment

• Fastrack which is crafted to fit the trendy fashion space with a focus on the youth

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• Sonata which is created for the mass market and has emerged as India‟s largest

selling watch brand

• Xylys which is fashioned for the premium market, aiming at the connoisseur and

new-age achiever

The Titan brand architecture comprises several sub-brands, each of which is a market

leader in its own space. Notable among them are: Titan Edge, Titan Raga, Nebula and

several other collections like Zoop, Orion, Purple, Obaku, Automatic, Tycoon,

Bandhan, Octane and the HTSE series. The Titan brand portfolio owns over 60% of

the domestic market share in the organized watch market.

Titan Company's pride possession, a world-class design studio for watches and

accessories, is the place where some of the most coveted creations have been

conceptualized.

Exclusive World of Titan and Fastrack showrooms and over 11,000 outlets in more

than 2,500 cities in India make these much-sought-after watches available to the

buyers. The watches are also offered internationally in 32 countries, with a special

focus on the Middle East and Asia Pacific regions.

Helios, India's multibrand watch retailer offers an unmatched range of the latest

designs across 30 international brands in addition to Titan brands. The after-sales

service, a benchmarked operation with a large network of exclusive service centres

spread across the country, is one of the operation units with one of the fastest

turnaround time in the world.

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2.2 Product Line of Titan watches

Fastrack – Cool, Trendy and Funky:

The latest trend in the fashion industry is the Titan Fastrack

watches. Currently, people are using watches as a fashion

necessity. This is an accessory that you need in order to achieve

an elegant and sophisticated look. A watch has several benefits

to offer. First and foremost, it helps in keeping time. In today‟s

world people are wearing watches as jewels. This is the reason

why a lot of effort is exerted in finding the right fastrack

watches. There are varieties of titan watches that you can choose

from. The watches come in different designs, styles, colors and size. There is always

something for you. All you need is to take your time and find the right one.

The quality of Titan Fastrack watches is incredible. It is important to know that the

watches are provided at an economical price. This is something that has led to the

increased popularity of the watches. Many people from different parts of the world

can afford the accessories. Currently, there is high demand of the watches. Many

women have realized that the watches are helping in making fashion statements.

Furthermore, they are adding some femininity to your looks. The allure of the watches

is irresistible it will actually make heads turn.

Sonata – Pride and Confidence:

Titan Sonata SF Watches is the second group. These are

the most price friendly watches, which can be found in

either digital or analogue. They are most bought by teens.

Next is the Titan Sonata Solid Steel collection. In this

group, there are 24 models and are designed to suit young

adults. They are mainly made with a steel finishing. Titan

Sonata delightful duo is also a group that is amongst

Titan Sonata watches. They come as a pair suiting a couple since one has a

rectangular dials which suits men and the other watch is similar but designed with a

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feminine taste. Notably, this brand of watches portrays a delicate golden finishing.

They are ideal for wedding and special anniversary gifts.

Titan Sonata watches that are Gold plated are also a member of this group. As the

name suggests, this series of watches have a finishing that is gold plated. Majority are

built with gold plated strap. However, some consist of leather straps. This brand is

quite popular with the middle aged. Despite being fairly priced, they are durable and

some in this group are waterproof. The watches are also manufactured with a great

deal of style and technology.

Nebula- Designed for distinct tastes and likes:

Exquisite, explicit designs are some of the words you could use

to describe titan nebula watches. Available in bracelets and kada

for women, strap made of classic leather or pure gold for men

and some with pearls and diamonds, this line of watches is a

serious ingenious way of combining character, style, elegance

and technology. Basically, it‟s a wrist watch that personifies

success, style, class, technology above reproach and taste at the

same time. Speaking of taste, Titan Nebula watches are designed

for distinct tastes and likes. Basically, it‟s a luxurious watch but affordable.

Titan Nebula watches are manufactured by Titans, established in 1984. They are in

fact, responsible for many series of world class watch designs that are sold in over 32

countries. The company was established under a joint venture between Tamil Nadu

Industrial Corporation and the TATA Group. Today, the company stands out as one

of the best manufacturers of watches in the world and has also ventured in jewelry

market, Tanishq being its own brand. It also manufactures the Sonata brand of

watches.

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Edge –TO give you the fashionable edge over your peers:

Titan Edge watches are unique and very fashionable.

Wearing the watch on your wrist will give the impression

of classiness and individuality. The watch comes in a

slim and sleek design which will sway you to get one for

yourself originally from India, Titan Edge watches will

offer the wearer the best service, just as anyone would

desire in a watch. Design, function, style and budget are

what you should look for in a good watch collection.

Titan Edge is the best collection that will give you a combination of values. The

designer watch is both stylish and caters for the needs of everyone whether in

business or in sports. Owning a watch has never been this easy. The watches are

available online and once you place your order and pay for the product, the watch is

delivered to your address

Titan Edge watches are pocket friendly and their benefits are numerous after

purchase. The fashionable watch collection matches the value of your money and

gives you pride when wearing it. Always ensure that the watch is within your budget

as you compare the distinct features of each model placed on the display shelf. The

watches are designed for both men and women. The men will love the gold and silver

branded watches designed especially for them while the ladies will enjoy the simple

feminine and elegant watches that will accessorize their outfits.

Raga Flora-Elegant and Unique:

First and foremost, it is important to understand that

there is a wide range of titan flora watchesavailable.

These watches are mainly designed to cater for the

needs of women who want an elegant and accessorized

look. These are the perfect accessories that you require

in order to make your look elegant and unique. The

watches can be worn during different occasion whether

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it is formal or casual situations. The designing of the raga watches is inspired by the

exotic flowers. There is a large collection of watches which are aiming at adding

sensuality. Furthermore, they will help in adding sparkle to your looks.

Due to the fact that there is a large collection of the watches, it is advisable that you

should take your time and select the best watch that meets your needs and

preferences. One thing that you will definitely love about the flora watches is the fact

that they help in adding some femininity to your looks. The watches are elegantly

designed in unique flower forms. They are also embellished using crystals. The flora

watches are available in different colors and finishes such as steel and gold. You can

buy different colored watches so that you can match them with different outfits.

Zoop – For kids:

Titan zoop watches are a must have in order to make

your wardrobe complete. The advantage of these

accessories is that they help in making bold fashion

statements. Actually, they will make heads turn in

whichever place you will be at. The amazing issue is

that despite the attractive designs of the watches, they

are provided at an affordable price. The watches come

with different colors, sizes, styles and designs. The

advantage of the watches is that they help in adding

some femininity to your looks.

Titan zoop watches have good quality. This is something that makes them to last for

long while they are still efficient in their operation. The watches are manufactured by

titan industries which are reputable. There is a wide range of watches that will meet

your preferences. The watches are readily available in various local outlets and online

sites. In order to benefit from amazing deals, it is advisable that you should shop for

the watches online. This will not only help to save your time but also energy.

Remember that you should take your time and compare the prices. This will help you

to go for an outlet that is offering the watches at a good discounted price.

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2.3 Vision and Mission Statement

Vision:

We create elevating experiences for the people we touch and significantly impact the

world we work in

Mission:

We will do this through a pioneering spirit and a caring, value-driven culture that

fosters innovation, drives performance and ensures the highest global standards in

everything we do.

Hmt Watches

2.4 Introduction

“Long years ago we made a tryst with destiny, and now the time comes when we shall

redeem our pledge ……” declared our beloved Prime Minister Pandit Jawaharlal

Nehruji at the stroke of midnight of August 14, 1947 as India attained independence.

This led to a phase of vigorous initiatives in agriculture, industry, infrastructure and

other such core sectors to make independent India self-reliant.

HMT was entrusted the vital task of building machine tools and in 1953 the first

Machine tool factory was set up in Bangalore.

Panditji‟s vision to bring-in a sense of time consciousness among the Indians, his

belief that India was capable of manufacturing precision components generated the

pace for setting up a watch manufacturing unit within the country. In 1961,

Government of India entrusted the job to HMT due to its capability, name and fame

amongst the public sectors.

HMT set up a watch manufacturing Unit at Bangalore in collaboration with M/s

Citizen Watch Co., Japan in 1961. As the first manufacturer of Wrist watches in the

country, HMT successfully absorbed the totally new precision manufacturing

technology for mass production, and assembly of micro sized components. This tryst

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with „firsts‟ continued and led to launch of India‟s first Automatic Day-Date watch ,

first Quartz watch , first Braille watch, first Ana-Digi watch and so on.

The first batch of Hand Wound Wrist Watches was released by the Hon‟ble Prime

Minister Pandit Jawaharlal Nehru.

Popularity and demand of watches was increasing which led the company to expand

its capacity. Accordingly, the expansion was done as mentioned below.

In 1972, Watch factory II was set up alongside the Bangalore Factory to manufacture

Automatic Day Date Watches with Japanese Technology.

Watch factory III was set up at Srinagar in 1972 with the entire Technical Knowhow

from HMT engineers.

In 1975, Watch factory at Bangalore was further expanded to manufacture Main

Spring, Hair spring and Shock absorber components. By this, HMT totally acquired

the technology of Mechanical Watch making.

Later on HMT set up manufacturing facility to produce 2 million watch components

sets at Tumkur and Ranibagh in the year 1978 and 1985 respectively and watches

were assembled at various assembly units spread over the country. This was done

with the objective of dispersal of Industry and creation of employment besides

catering to the demand for the product which got accepted very well in the market. In

line with the market trend , Watch factory at Tumkur was partially converted to

manufacture Quartz Analog Watches in collaboration with M/S Citizen Watch Co,

Japan. To cater to the Niche market, a specialized watch case manufacturing facility

was set up at Bangalore in 1983 .The project was implemented with in-house

expertise, without any foreign collaboration .

Since 1985 , HMT Watches has been actively involved in making Floral Clocks, Solar

Clocks, International Clocks, Master-Slave clocks and Tower Clocks. The Garden

clock at Bangalore thrills thousands of visitors everyday.

In the year 2000, HMT Watch Bussiness group was re-structured as HMT Watches

Limited (a Wholly Owned Subsidiary of HMT Limited).

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HMT Watches, having over 100 million satisfied customers, is a household name in

the country and enjoys a good Brand Equity.

2.5 Product Line of Hmt Watch

Elegance –It all about you :

A watch that is truly a sight to behold. The HMT elegance is

adorned with classic styling. And equipped with all the

features of a precision time keeper. Elevating watch making to

a fine art. It is normally seen in places frequented by the

luminaries of the society.

Utsav- The well-dressed watch :

The scintillating masterpiece is a tribute to the eternal beauty of

women. Sporting dials embellished with colourful motifs, the utsav

watch weaves a kind of timeless appeal around it. Utsav is in fact

created as an inseparable companion to the contemporary women of

today.

Sangam-Absolutely modern, Absolutely Indian:

Unveiling a watch personifying an unique blend of the east and

west. The sangam offers perfect harmony to men and women

who live international lifestyle without forgetting their Indian

roots. In other words it is modern and yet absolutely Indian.

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Sona- Good as Gold:

The sona watch object of sheer majesty Aptly name

„sona‟, meaning gold, this watch comes with a gold case

leather strap what`s even better, it is priced very

reasonably.

Mechanical-Desh ki dhadkan:

Who said rugged and sturdy things can`t look beautiful? One

look at the mechanical range of watches will make you

change your mind immediately. Those watches are elegantly

crafted and enshrined in a well-designed case to offer a quiet

dignity to the wearer.

2.6 Vision and Mission Statement

VISION

To provide high quality and trend setting watches that combine performance with

value pricing

MISSSION

To introduce a broad range of watches and clocks to satisfy all segments of society

To strengthen HMT Brand and create lasting impression on the customer

OBJECTIVES

To develop innovative business model that supports production and marketing

To develop and launch new models with contemporary styling

Focused approach on optimum utilization of resources

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Chapter No. 3

18

Marketing Strategy

3.1 Marketing Mix

Definition of 'Marketing Mix'

The marketing mix refers to the set of actions, or tactics, that a company uses to

promote its brand or product in the market.

Definition: The marketing mix refers to the set of actions, or tactics, that a company

uses to promote its brand or product in the market. The 4Ps make up a typical

marketing mix - Price, Product, Promotion and Place. However, nowadays, the

marketing mix increasingly includes several other Ps like Packaging, Positioning,

People and even Politics as vital mix elements.

Description: What are the 4Ps of marketing?

Price: refers to the value that is put for a product. It depends on costs of production,

segment targeted, ability of the market to pay, supply - demand and a host of other

direct and indirect factors. There can be several types of pricing strategies, each tied

in with an overall business plan. Pricing can also be used a demarcation, to

differentiate and enhance the image of a product.

Product: refers to the item actually being sold. The product must deliver a minimum

level of performance; otherwise even the best work on the other elements of the

marketing mix won't do any good.

Place: refers to the point of sale. In every industry, catching the eye of the consumer

and making it easy for her to buy it is the main aim of a good distribution or 'place'

strategy. Retailers pay a premium for the right location. In fact, the mantra of a

successful retail business is 'location, Promotion: this refers to all the activities

undertaken to make the product or service known to the user and trade. This can

include advertising, word of mouth, press reports, incentives, commissions and

awards to the trade. It can also include consumer schemes, direct marketing,

contests and prizes.

What is the importance of the marketing mix?

All the elements of the marketing mix influence each other. They make up the

business plan for a company and handled right, can give it great success. But handled

wrong and the business could take years to recover. The marketing mix needs a lot of

understanding, market research and consultation with several people, from users to

trade to manufacturing and several others.

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Marketing mix of Titan watches

Product strategy:

Product strategy titan started making and marketing over 6 million watches

titan used an aggressive approach in producing it‟s product.

Usually the quality of watches were contemporary in style titans produced new

models and dials at regular intervals.

Titan started producing quartz watches.

It produced more than 1000 models in corporate world trends.

Titan produced watches which matched ones dress on occasions and even it

produced jewelry watches.

Finally it launched „nebula‟ which were gold plated watches.

Pricing strategy :

Titan prices according to the features and value delivered. They get the maximum

market share from Sonata. Since there is no one offering pure gold watches and

jewellary watches so it is able to skim the market with their distinct products. Titan

comes out every year with a price discount sale on watches. The differences in the

prices are justified with its important features and style. They are trying to maximize

their profits with the help of different product mix.

Initially titan‟s produced watches were sold at a mere price rate.

Gradually titan quartered two distinct segments - RS 9000 to RS 15000

(medium category) and RS 15000 to RS 80000 (top of the line category). It

emerged it‟s business by successfully tapping the middle and the upper market

segments which produced watches costing more than RS 500.

It conferred a dominant position in the market by pricing it‟s watches at a

range of RS 350-500

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It even produced high priced watches for the upper class society named-

NEBULA costing around 5950-32000

Designed watches for children – DASH and priced them at a cost of RS 250-

395

And finally in the year 1999-2000 titan‟s sales turnover came to RS 630 cr. ,

net profits were 19.2 cr. And watch business generated 20% return on capital

employed.

Promotion strategy:

Promotion strategy Titan , started promoting both of its kinds – mechanical

and quartz. The promotion was so vigorous that market got an impression

titan‟s the first to produce quartz watches , but HMT had already introduced it

back in 1981 It started selling and promoting it‟s watches in two segments –

person to person gifting , and using it as a corporate gift.

Titan made it‟s product available at localities such as , bookstores , gift shops

and boutiques.

It followed a principle , ONCE YOU HAVE TARGETTED YOUR

CUSTOMER , FOLLOW HIM WHEREVER HE GOES.

Titan voted for showrooms idea and started franchising a network of trends

titan showrooms. It spent over RS 20 cr /yr.

For promotion in the initial years One of its SALES PROMOTION scheme

was GOLD BONAZA , which offered a first prize of jewelry worth RS 1.5

lakhs and RS 1 lakhs in cash.

Further it allocated a promotion budget of RS 42 cr. As compared to 35 cr.

The prev. Year.

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Place strategy:

PLACE STARTEGY The company‟s watches are currently sold in about 40

countries of the world , through marketing subsidiaries based in London ,

Dubai , and Singapore.

It has more than 6000 retail shops spread through out the country , covering

1200 towns. Currently titan has spread over 350 shops in the UAE , OMAN ,

BAHRIAN , and QATAR.

Marketing mix of Hmt watches

Product strategy:

HMT Watches , a pioneer in horological industry in India since 1961, welcomes you

to its products from the Brand name known for decades for its accurate time keeping

and trouble free performance that lasts a life time. The models come in a wide range

of attractive designs and prices, there surely is a model to suit your taste and pocket.

HMT watches unveils its stupendous creations. Watches that are an exquisite blend of

form and function, of style and substance.

Elegance, Utsav, Sangam, Sona, HQ, Inox Gold, Inox, Economy from Quratz

collections and Mechanical - handwound and automatic series, the Braille, the Pocket

Watch- each a true masterpiece in its class, representing the most exhaustive range of

watches in the country. Come , discover HMT watches. It will change the way you

look at time.

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Price strategy:

For lower segment attractive pricing and discounts would be helpful hmt set prices

according to the type of customers .

For students

600-1500 Price range: functional quartz, digital, attractive colors.

Labors Price range: 400-1000

carefree, not money conscious, wants cool

farmers price range

1500-2500 Product: steel or gold make, quartz/analog, rich looks on big festivals

when he has a good harvest

Urban youth Price range:

1000-5000 Product : flankier, trendy, attractive, must go with the style, colorful.

Festival discount: HMT also provide festival discount to their customer which

increase their sale

Promotion strategy:

Customers can choose the color and dial shape for the low end watches, but for the

high end ones customers can have choice of choosing functions(alarm, chronometer,

cosmographetc.) at a little extra premium. company can launch a second campaign for

its new product series with a tag line “WATCH YOURSELF”. This campaign would

be targeted towards urban and fashionable youth whose demands keep changing with

the latest fashion. Company will capitalize on the current fashion trend and make

watches according to the market demand Company can also improvise the website by

providing features of online shopping, exhibiting various designs, new products, store

locations etc. Ladies can come and choose their colors, style, matching jewelry etc.

They will have an option to customize their needs. Special orders for marriages and

engagements will be considered. Promotions can be done through TV and ladies

specific events like teej, raksha bandhan, karva choth, etc.

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Place strategy:

HMT's Watch Factory at Bangalore (WFB) was established in 1961 to manufacture

Hand Wound Watches in technical collaboration with Citizen Watch Co., Japan. This

Unit has facilities to manufacture all the required watch components under one roof.

A second unit was established in the same premises in the year 1972 to manufacture

Automatic Day Date Watches. In 1990 the activities of this factory were Broad

banded to include Quartz analog watch production also.

3.2 Segmentation, Targeting, Positioning(STP)

Segmentation

Segmentation : Identifying al segments for the product/service. Many of the resources

listed in module 3 will be helpful to you when you develop segments. To be useful,

segments should be:

Measurable

Accessible (can you reach them)

Profitable

Distinct from one another

The objective of segmentation is to find attractive markets. Strategies include

Break market into components

Regroup into market segments

Select which segment to target

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Positioning.

Positioning is an essential component -- and skill - in good marketing. Perceptual

maps are used to determine the position of a product, firm, person, service or idea.

Positioning maps, or perceptual maps can be simple, yet very effective marketing

tools. One definition of Positioning Theory is: the science of perceptual strategy. It is

based on a theory that strategy can only be planned in the mind of the consumer, not

the marketplace*.

It is important to understand the levels of competition because positioning applies at

all levels of competition. For example:

Product Level (e.g., Pepsi vs. Coke)

Category Level (e.g., Cola vs. Root beer)

Corporate Level (e.g., Pepsi Inc. vs. Coca Cola Company)

Industry Level (e.g., Beverage Industry vs. Snack food Industry)

Targeting.

What is target?. This is the real goal/objective in market that marketer want to reach.

As a simple questions are :

What percent of the population uses the product at all?

What percent uses your brand?

How does that compare to competing brands?

What is the demographic profile of the product category?

Which media reach the users of this category?

Segmentation, Targeting, Positioning(STP) of Titan Watches:

STP

Segment Watch brands from luxury to sporty to fashion

Target Group Mid and Premium Market Working men and women

Positioning Not just a watch, but a style statement

25

Segmentation:

A market comprises of different consumers possessing innumerable tastes and

preferences. Depending on their marketing approach and the nature of the products

marketerscan adopt different level s of segmentation. The levels of market

segmentation are:

•Segment Marketing

•Individual Marketing

•Niche Marketing

•Local Marketing

A)SEGMENT MARKETING :

Marketers target more than one segment when it is noteconomically feasible to design

products and services for individual segments. The focusof segmenting the market

will be on providing enhanced service to the customer byoffering

customized

products that will satisfy the needs and wants of customer in that particular segment to

a large extent. Segmentation is also sometimes identifying,capturing and retaining

potential new markets.

TITAN PERSPECTIVE

Titan has segmented its business into three main categories:

➢Mass

➢Mid-premium

➢luxury

26

B)INDIVIDUAL MARKETING :

Individual Marketing is the extreme level of segmentation in which marketers focus

on individual customers.

TITAN PERSPECTIVE

Titan has not applied this for its marketing.

C)NICHE MARKETING :

A niche is more narrowly defined group, typically a smallmarket whose needs are not

well served. Marketers usually identify niches by dividing asegment into sub

segments or defining a group seeking a distinctive mix of benefits.

TITAN PRESPECTIVE

In a study conducted to study the customers of watch market, it is revealed that 42%

of them are youth. So, TITAN tried to target this by:

•introducing FAST TRACK

•price offering from Rs 500(affordable)

•watches with style statements

D)LOCAL MARKETING :

Marketing programs being tailored to the needs and wants of local customer groups.

The prominence of local marketing has also become verydominant.

TITAN PERSPECTIVE

All the products of TITAN are addressed to all the customers as a whole. Localized

products are not available. But some products which are available in UK have some

pictures of eminent personalities on their Dial like M.K. Gandhi, Mr. Jawaharlal

Nehru,etc. so that the customers can identify the product with those dignitaries

27

Targeting:

The first is the single segment with a single product. In other word, the marketer

targetsa single product offering at a single segment in a market with many segments.

For example, Titan‟s sub brand, Raga is targeting the upwardly mobile ladies in the

upper premium segment.

Secondly, the marketer could ignore the differences in the segments, and choose to

aim asingle product at all segments i.e. the whole market. For example, Sonata

and Fast track brands of Titan are targeting mass and mid premium segment.

Finally , there is a multi-segment approach. Here a marketer will target a variety

of different segments with a series of differentiated products. For example, Titan

itself provides with the number of different brands/products which are targeting

differentsegments in the market. Following is the table which represents the various

sub brandsand their targeted segments of TITAN.

Segmentation, Targeting, Positioning(STP) of Hmt Watches:

STP

Segment Mass Market looking for watches and accessories

Target Group Lower and Middle income groups

Positioning Reliable and quality product for the masses

28

3.3 Boston Consulting Group Matrix

The growth-share matrix (aka the product portfolio, BCG-matrix, Boston matrix,

Boston Consulting Group analysis, portfolio diagram) is a chart that was created by

Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations

with analyzing their business units or product lines. This helps the company allocate

resources and is used as an analytical tool in brand marketing, product management,

strategic management, and portfolio analysis.Analysis of market performance by

firms using its principles has called its usefulness into question, and it has been

removed from some major marketing textbooks.

To use the chart, analysts plot a scatter graph to rank the business units (or products)

on the basis of their relative market shares and growth rates.

Cash cows are units with high market share in a slow-growing industry. These units

typically generate cash in excess of the amount of cash needed to maintain the

business. They are regarded as staid and boring, in a "mature" market, and every

corporation would be thrilled to own as many as possible. They are to be "milked"

continuously with as little investment as possible, since such investment would be

wasted in an industry with low growth.

29

Dogs, more charitably called pets, are units with low market share in a mature, slow-

growing industry. These units typically "break even", generating barely enough cash

to maintain the business's market share. Though owning a break-even unit provides

the social benefit of providing jobs and possible synergies that assist other business

units, from an accounting point of view such a unit is worthless, not generating cash

for the company. They depress a profitable company's return on assets ratio, used by

many investors to judge how well a company is being managed. Dogs, it is thought,

should be sold off.

Question marks (also known as problem children) are business operating in a high

market growth, but having a low market share. They are a starting point for most

businesses. Question marks have a potential to gain market share and become stars,

and eventually cash cows when market growth slows. If question marks do not

succeed in becoming a market leader, then after perhaps years of cash consumption,

they will degenerate into dogs when market growth declines. Question marks must be

analyzed carefully in order to determine whether they are worth the investment

required to grow market share.

Stars are units with a high market share in a fast-growing industry. They are

successful question marks and become a market leader in a high growth sector. The

hope is that stars become next cash cows. Stars require high funding to fight

competitions and maintain a growth rate. When growth slows, if they have been able

to maintain their category leadership stars become cash cows, else they become dogs

due to low relative market share.

30

Boston Consulting Group Matrix of Titan watches:

Stars- Stars represent business units having large market share in a fast growing

industry.. Example- Fastrack.

Cash Cows- Cash Cows represents business units having a large market share in a

mature, slow growing industry Example- Titan, Sonata.

Question Marks- Question marks represent business units having low relative market

share and located in a high growth industry. None of the brands of Titan Industry falls

under this cell.

Dogs- Dogs represent businesses having weak market shares in low-growth markets.

Titan brand does not fall under this cell.

Boston Consulting Group Matrix of Hmt watches:

Stars- Stars represent business units having large market share in a fast growing

industry.. Example- Mechanical.

Cash Cows- Cash Cows represents business units having a large market share in a

mature, slow growing industry Example- Sona

Question Marks- Question marks represent business units having low relative market

share and located in a high growth industry. Example- Sangam

Dogs- Dogs represent businesses having weak market shares in low-growth markets.

Example- Elegance.

31

3.4 SWOT Analysis

SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to

evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project

or in a business venture. A SWOT analysis can be carried out for a product, place,

industry or person. It involves specifying the objective of the business venture or

project and identifying the internal and external factors that are favorable and

unfavorable to achieving that objective. The technique is credited to Albert

Humphrey, who led a convention at the Stanford Research Institute (now SRI

International) in the 1960s and 1970s using data from Fortune 500 companies. The

degree to which the internal environment of the firm matches with the external

environment is expressed by the concept of strategic fit.

Setting the objective should be done after the SWOT analysis has been performed.

This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over

others

32

Weaknesses: are characteristics that place the team at a disadvantage relative to

others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or

project

Identification of SWOTs is important because they can inform later steps in planning

to achieve the objective.

First, the decision makers should consider whether the objective is attainable, given

the SWOTs. If the objective is not attainable a different objective must be selected

and the process repeated.

Users of SWOT analysis need to ask and answer questions that generate meaningful

information for each category (strengths, weaknesses, opportunities, and threats) to

make the analysis useful and find their competitive advantage

Swot analysis of Titan Watches:

Strength

1. Large network of exclusive stores and service centres

2. High Top of the mind recall, especially for the Mid market segment

3. Different sub-brands under the brand Titan have been successful in their

positioning based on Demographic segmentation

4. One of the world‟s top five and India‟s biggest watch manufacturer

5. Titan watches are exported in over 40 countries

6. Watches as a fashion accessory

7. Quality or price positioning Brand image

33

8. Market segments with large potential: women, youth, children, sportsmen, the

budget-conscious and, of course, the big spenders.

9. Customer value and offered after sales service in a showroom environment.

Weakness

1. Premium category Titan brands like Xylys have been camouflaged by the Titan

brand Image of being a mid-market player

2. Haven‟t penetrated the global market as some other international watch makers

3. Main USP is low cost watch.

4. Lack of futuristic approach

5. Lack of flexible thinking

Opportunity

1. India is an under penetrated market for watches

2. Global expansion and tie-ups with global watch and Jewellry brands

3. Nearly 34 million watches are sold through gray market channels.

4. Currently, sales in India stand at an low number of 25 watches per 1,000 people,

5. Exchanging offer

6. Rural market

Threats

1. Broad Target segment may lead to lack of focus in Brand strategy

2. Stiff Competition faced by foreign brands, particularly in the premium segment

3. Too many players will dilute the market & the profit margin

34

4. Low priced China watches

5. Mobile phones

Swot analysis of Hmt Watches:

Strength

1. Market leader in Mechanical watches

2. „Honest‟ Brand Image with excellent brand equity

3. High Emotional connect with its customers

4. One of the most trusted names in the Indian watch industry

5. Advertising and marketing with celebrities add more value to the products

6. Also has an expertise in tower clocks, solar clocks and population clocks

Weakness

1. Entry of international and other brands has restricted its market share

2. Brand has been unable to reposition with the changing times

3. Limited global presence as compared to some other international brands

Opportunity

1. Can leverage its reliable image by right advertising

2. Product range can be expanded to more market segments

3. Global penetration would help brand grow and target youth worldwide

Threats

1. Declining demand of Mechanical Watches

2. Lack of innovation in design can lead to decline in sales

3. With lots of options available, brand switching is quite high

35

Chapter No. 4

36

Primary Data

4.1 Research Study

Research objective:

The objective of research is to understand preference between Titan VS Hmt Watches

brands. And the reason behind failure of Hmt

Research Methodology:

The research is descriptive research wherein on-field survey is done with the help of

questionnaire. Questions are formulated with the help pilot analysis

Research sample:

30 respondents were selected for research

Research location:

Customer using wrist watch across Mumbai were selected for study

Research limitations:

1. Only 30 respondents were selected for survey due to time and geographical

constraints

2. Some biasness by respondents cannot be ruled out

37

4.2 Analysis and Interpretation

Sex Male 70% Female 30%

As per the survey conducted, in that 70% survey forms where filled by the

male and remaining 30% survey forms where filled by female.

This point state that more males are interested in wrist watch then the females

70%

30%

Male Female

38

50%

47%

3%

0%

18-25 25-35 35-40 above 45

87%

13%

yes no

Age category

In this research it is observed that buyers in age group of 18 – 25 years were

50% of the total buyers whereas buyer in age group of 25 – 35 is 47%, in 35-

40 is 3%, and there were no buyers above 45 years of age.

It shows that majority of the buyers fall in the age group of 18-25 and 25-35

i.e. total of both is 97%.

Do you usually wear wrist watch ?

39

35%

19% 8%

38%

television newspaper hoarding word of mouth

In this 87 % of respond had said yes and remaining 13% said no.

From here onwards the further survey is conducted with this 87 % responder

who said yes

1. How often you wear wrist watch?

69% of responders are regular user of wrist watch.

From the 87 % of responders some said that they wear watch only few

days a week. i.e. 12%

19% of responders fall on occasionally.

2. From where do you came to know about this brand ?

69%

12%

19%

Regularly few days a week occasionally

40

Televisions advertise help the company to attract 38% of respond.

As per the watch industry customer cannot be reached as there want according

to the taking use of newspaper 19 % and hoarding 8 %

But, here the word of mouth plays a major role with 38 %

3. Which of these brands is trustworthy?

Here Titan is suggest as a best trustworthy brand from the other brands like HMT,

Citizen. 100% of the responder suggested Titan

4. Which brand of wrist watch do you wear ?

100%

Titan

71%

0%

18%

4% 7%

Titan Hmt Citizen rolex tissot

41

77%

23%

0% 0%

satisfied somewhat satisfied somewhat dissatisfied dissatisfied

As per the standard, purchasing power the brand had been different from

person to person here 71% of the responders wear Titan watch which

acquiring major parts in the Indian watch industry.

And other brands like Hmt 0%, Citizen 18%, Rolex 4% and Tissot 7%.

5. How satisfied are you with your watch that you wear most often as mentioned

in Q5 above?

Around 77% of the respond were satisfied with the watch brand they wear. And

somewhat satisfied are only 23% and no one is dissatisfied with their watch they use.

6. What features do you consider while purchasing a watch?

35%

23%

27%

15%

style brand image quality price

42

58% 31%

7% 4%

self decision friends peer group celebrities

Major purchase are made in the area of style 35% and brand image 23% which goes

upto 58%.

Other than the quality and price the customer r seeing for the style and brand.

7. What motivates you to make your purchase?

Self-decision purchase is the more from the report of the survey.i.e 58%

Then the suggestion from the friends 31% and peer group 7% comes to around 38%

There are some people who attract through celebrities they are 4 %

8. What additional feature would you like to go for?

47%

24%

24%

5%

day,month and date temperature alarm stopwatch

43

0%

84%

8%

4% 4%

Hmt Titan Rolex rado timex

Major customers are interested to have day,month and date on their watch. The

companies can take advantage of this and they can acquire more customers.

Then the next thing the customer are also want of temperature and alarm on the

watch.

9. What is your price range when you buy a watch?

While purchasing some product the customer always see toward the price range they

are looking for according to the survey, 42% of responders said they prefer to buy

watch from the price range of 1500-2000.

Then comes the range from 500-1000 where 28% and then range from 1000-1500.

The least is the range of above 2000

10. If you want to purchase a wrist watch which brand will you prefer?

28%

24%

42%

6%

500-1000 1000-1500 1500-2000 above2000

44

Major of respond going for the brand of Titan here 84% of the customer interest is

acquired. Even though the other foreign brand a lacking behind like rolex and rado

8and 4 % respectively. And the brand timex is just 4 %.

4.3 Recommendation as per survey.

These are the mistakes which Hmt had Made.

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.

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.

Place Didn‟t strategize its established marketing network according to

growing competition. Since retailers have enough foreign brands they were

simply not interested in HMT‟s home grown products as a result it had to sell

through its 13 branch offices for Machine tool equipment. In mid 80‟s HMT‟s

selective retailer policy began going against it. the retailer margins provided

by HMT were 2% less than what its most prominent competitor, Titan.

Promotion Though HMT‟s advertising was distinctive and did cater to the

lifestyle segment, it failed to communicate the uniqueness of HMT‟s quartz

design vis-à-vis other HMT watches

45

Some of the recommendations for the Hmt watches

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

Conduct market survey Involve leading market research organization along

with your sales force. Do it periodic every six month; Involve retail-shops,

shopping centers, department stores, dealers, sales force. Most popular brands,

trend of consumers etc. Competition Competition among brands has been also

getting stronger, and a lot of effort to keep sales has been required. Watches

without an appeal, watches without clear marketing hardly attract consumers

in the market glutted with commodities. Train agents to set forth clear brand

vision and efficient campaign.

Competition Shift to quality with new added value.. Provide consumers with a

lot of information select their watch wisely and professionally according to

their own taste. Distribution Prepare retailer to meet the changing consumer‟s

trend. Watches just displayed in showcases cannot sell. It is absolutely

necessary to present them together with the background such as original story

of the watch, its functionality and benefits of after sales service. Pricing In the

lower end HMT should seek to achieve cost advantage by exploiting the

differences in cost behavior. The pricing strategy can be to undercut main

competitor by 10%, using market penetration strategy. Promotion Special

focus on sales during festive time like Diwali, Christmas along with discount

offer & finance schemes. Go for innovative and stylish ad campaign that

reflects the aspirational, independent and modern dimensions of the watch

collection.

46

As per survey conducted :

1. Do you think that Hmt can overcome their Failure ?

54% of the responders believe that Hmt can recover the failure by using this strategy

which are stated above.

2. What can Hmt do to Overcome their failure? ( the answer given by the

responders who said yes to the above question)

Many of the responders have even forgot the brand Hmt, so the company should

improve their promotional activity

54%

46%

yes no

8%

31%

46%

15%

product line distribution channel promotional activity features all the above

47

Chapter No. 5

48

5.1 Conclusion

After going through all the observation, analysis and inference it can be concluded

that though there are many factors associated with watch purchase decision, some of

the factors like purchasing power, comfort, pricing factor, style, brand image, quality.

And customer are also want additional features like stopwatch, temperature,

day,month and date.

The watch producing company can make sure that they take the use of this features

which the customer are demanding by which the company sales can be increased. As

the brand Titan had acquired the Indian watch industry. Most of the customers who

purchase watch they came to know their brand through the marketing communication

of Word of mouth, so the company should maintain a good market reputation with its

current and future customers.

Has many of the responders on the survey have replied that the brand Hmt can

overcome their failure by improving the factors like product line, distribution channel,

promotional activity and features. Hmt been a government company can see towards

it and ensure that they can re-launch their watches in the market.

It is very clear from the study that even though watch industry is on rise, Hmt is not

able to capitalize on the market. Titan is clearly front runner into the watch category

with Fastrack and Sonata etc,; however Hmt does not have such good brands in the

portfolio. Thus Hmt needs to focus more on its watch category. I am very sure that

with it‟s a government company , Hmt can turn around game of the watch industry.

49

5.2 BIBLIOGRAPHY

BOOKS

Marketing management Phillip kotler

Strategic Management Dr.K.Govinda Bhat

SHOWROOM

Titan Company Store.

378, N.C. Kelkar road, opp. Dadar Emporium Dadar West Mumbai- 400 028

WEBSITES

Buy Branded Watches for Men & Women, Wrist watches Online in india

Watch - Wikipedia, the free encyclopedia

Titan Watches

http://www.hmtwatches.in/

www.titanworld.com

50

5.3 ANNEXURE

Questionnaire NAME: ___________________

AGE: 18-25 25-35 35-45 Above 45

SEX: MALE FEMALE.

Qualifying Question: Do you usually wear wrist watch? Y □ N □

Proceed if answer is yes. If ‘No’, thank and terminate the interview.

1. How often you wear a wrist watch?

Regularly few days a week occasionally

2. What are the various brands of wrist watches you know?

Titan HMT Citizen Others

(Specify)____

3. From where do you come to know about this brand?

Television Newspaper Hoarding Word to

mouth

4. Which of these brands is trustworthy?

Titan HMT Citizen Others

(Specify)___

5. Which brand of wrist watch do you wear?

Titan HMT Citizen Others

(Specify)____

6. How satisfied are you with your watch that you wear most often as mentioned

in Q5 above?

Satisfied Somewhat satisfied somewhat dissatisfied

Dissatisfied

51

7. What features do you consider while purchasing a watch?

Style Brand image Quality Price

8. What motivates you to make your purchase?

Self-decision Friends Peer group Celebrities

9. What additional feature would you like to go for?

Day, month and date Temperature Alarm Stop

watch

10. What is your price range when you buy a watch?

500-1000 1000-1500 1500-2000 Above

2000

11. Rate the brands of wrist watches below on the aspects provided on a 5 point

scale – 1- below average, 2 average, 3 good, 4-very good, 5-

excellent

12. If you want to purchase a wrist watch which brand will you prefer?

HMT Titan Other (Specify) ________

13. Do you think that HMT can overcome their failure?

Yes No

14. What can HMT do to overcome their failure? (Ignore if your answer for

previous question was “No”)

Titan HMT

a. Style

b. Durability

c. Technology

d. Brand name

/reputation

e. Price

f. Overall

52

Improve product line Improve distribution channel

Improve promotional activity Other (Specify) ______

THANK YOU

53

Newspaper Articles

The age of luxury watches

By Chencho Sherin Thomas - THIRUVANANTHAPURAM

Published: 23rd October 2013 10:41 AM

Last Updated: 23rd October 2013 10:41 AM

Lustrous gold in all its glory was the Malayali‟s only idea of accessorising until a few years

ago. In those days, the oval shaped watch set in yellow gold adorned every housewife‟s wrist

like a proud piece of jewelry. While men went berserk for square dials and wide gold bands,

women adored the sheer feminine designs that came with affordable tags. Later brands like

Rado and Omega became the Gulf returnees‟ luxe trophies. When Indian watches such as

HMT and Alwyn disappeared in a heap, came Titan as a breath of fresh air with its array of

novel designs in the 80s. And recently, luxury brands such as Rado, Tissot, Calvin Klein and

Gucci entered Kerala market with a bang. Ardent watch lovers couldn‟t stay away from the

lure of luxury watches for long.

Today, a wristwatch for a Malayali is a style statement that reveals his taste for good life.

Kerala markets first witnessed a watch revelation in the early 2000s with Titan‟s Fastrack.

It arrived in loud colours, snazzy designs and affordable price ranges easily becoming the first

choice of youngsters. At the time, owning a Fastrack was even an issue of pride for the youth.

Following Titan‟s footsteps, many a watch brand came with innovative and fluid designs that

shook the market. Calvin Klein, one of the current favorites among watch aficionados, has a

wide range of feminine and masculine time-tellers.

“For a man, a watch signifies his personality since that is the only ornament he may wear.

Hence, ever since I started earning, it was my dream to own a good watch. During those days

Rado with all its sheen was a Gulf returnee‟s signature style and I did not want that tag

attached to me. I did my research and bought my first Tissot, which was comparitively less

known in Kerala, from Bombay in 2000,” says Aravind, an entrepreneur.

The times have changed and the same youngsters who vouched for Fastracks for its style and

popularity are now favouring Tissot and Rado for their quality and brand value. Feminine

designs and thin straps are no more a fad among ladies; they go for chunky dials and fat metal

chains as their wrist buddy.

“The concept of spending less on a watch is passé. Today, we have customers who buy three

or four luxury watches as a collection,” says Reneesh, manager of the newly established

Malabar Watches in the city. The outlet which has exclusive ranges of Swiss luxury brands

such as Rado and Tissot swears that the Kerala crowd is ready to spend as much as ` 4 lakhs

on a piece of metal.

When the IT crowd go for the informal Calvin Kleins and Casios, the business class is all for

Omega, Rado and Tissot. Brands like Cartier, Bvlgari, Tag Heur and Chopard are yet to arrive

in Kerala markets, but that does not stop watch lovers from owning them. Those who travel

abroad find time to browse through watch shops until they stumble on their best bargain.

54

“When I returned after my studies in London, I had brought back eleven watches with me, all

belonging to big brands like D&G and Calvin Klein. I bought all of them during sale seasons

and got them at good prices,” says Ananya, a hotelier.

Swatch watches, a hot favourite among youngsters for its vivid patterns, have recently

released a range of touch screen watches. “The youngsters are looking for novelties and they

will certainly experiment if something new is in the market,” says Reneesh.

Style Plus, a lifestyle store in the city which also has a range of imported watches, has

DKNY, Tommy Hilfiger, Guess, Fossil, Diesel, Police and Titan in its collection. The shop

says Guess, known for its gaudy styling, is one of the most sought-after brands in the city.

“Even though there are many takers for the imported brands, Titan‟s demand is no less. The

women still come asking for Titan‟s Raga range. While youngsters are all for style and

design, the middle-aged men and women prefer traditional brands such as Citizen and Titan,”

says the watch sales man of Style Plus.

The current trend shows that it is not only the elite class that goes for expensive watches. The

middle-class youth who clinch jobs at a young age like to splurge on brands rather than going

for replicas.

“I believe a watch represents one‟s personality. My belief is that it is better to not wear a

watch rather than going for a replica of a branded watch,” says Diya, a software engineer.

HMT revival plan makes no headway

Plans to revive the loss-making HMT Watches Ltd's factory at Ranibagh

in Uttarakhand are making no headway despite efforts by top politicians in the state.

N D Tiwari, former Uttarakhand chief minister, claimed recently that the Centre had

approved a Rs 834 crore revival plan for the factory, and took credit for the purported

initiative. But the HMT management denied the report, saying no such plan had been

worked out.

"We have not received any intimation regarding the revival plan of HMT Watches,"

said HMT Managing Director S Paul Raj. On previous occasions, leaders like Union

Water Resources Minister Harish Rawat and the former chief minister, Ramesh

Pokhriyal Nishank, had made efforts to revive the factory.

The company has for the past few years been expecting a Central government

package that would nurse it back to health. "We have sent a proposal to the Centre for

a revival package of Rs 1,500 crore," said Paul Raj. HMT Watches has also hired a

consultant, which however did not submit a positive report.

The strategy involves introducing new models, infusing fresh capital, selling surplus

55

land at Ranibagh and other places, and entering into tie-ups with retail outlets, malls

and post offices.

HMT Watches has also been discussing revival plans with top state government

officials including the additional chief secretary, Rakesh Sharma. One such plan,

worked out by the state's department of industry, provided for the cash-rich State

Infrastructure and Industrial Corporation of Uttarakhand Limited (Sidcul) to enter into

a joint venture with HMT to revive the Ranibagh factory by infusing fresh capital.

Sidcul is credited with having set up key industrial estates in Haridwar and Pantnagar

where some of India's leading companies have built factories.

HMT Watches expects the Central government to intervene and infuse fresh capital of

Rs 300-500 crore, which is needed for the company's revival. A report on the

company, prepared by Pricewaterhouse Coopers, will shortly be placed before the

Board for Reconstruction of Public Sector Enterprises (BRPSE), Paul Raj said. He

said he expects a positive decision by the Union government on the revival plan.

The company intends to introduce an array of new models at attractive prices. Paul

Raj said HMT Watches is also looking to have tie-ups with stores and malls across the

country to increase visibility. It also wants to retail its watches in all of India's

150,000 post offices.