Escolar Documentos
Profissional Documentos
Cultura Documentos
On
A study on the organization study of HMT Watches Limited At HMT Bhavan, Bangalore Submitted To Bangalore university, Bangalore In partial fulfilment for the award of the degree of Master of Commerce By Anil Kumar. S
TABLE OF CONTENTS
Sl. No. 1 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 3.4 3.4.1 3.4.2 3.4.3 3.4.4 3.4.5 3.4.6 3.4.7 3.5 4.1 4.2 4.3 4.4 4.5 5 6 7 7.1 7.2 7.3 7.4 8 9 10 11 12 Introduction CHAPTER-2 Industry Profile Evolution of watch industry History of Indian watch market Present situation of Indian watch market Future challenges of watch market CHAPTER-3 Company profile Company overview Mission and Vision Corporate Objectives and Goals History and Evolution of Organization HMT Machine Tools ltd. HMT Watches ltd. HMT Chinar Watches Ltd. HMT International Ltd. HMT Bearing Ltd. Praga Tools Ltd. HMT Tractor Business HMT Units, Divisions & Locations HMT Watch Factory at glance Introduction of HMT WF I & WF II at Bangalore Corporate objectives of HWL Important events of HWL Products of HWL Strategic Planning Organization Structure Departments of HMT Watch Factory HRM Department Finance Department Sales Department Marketing Department Product Profile Competitors of HMT Watches SWOT Analysis Suggestions & Recommendations conclusion Contents CHAPTER-1 Page No. 1 3 3 4 5 7 9 10 10 11 11 13 13 13 14 14 15 15 16 17 17 19 20 21 22 24 25 25 31 33 36 38 40 41 43 46
List of charts
Sl. no 2.3 4.2 6.0 7.1 7.2 7.3.1 7.3.2 Contents Watch market in India HMT Watches Limited Organization structure of HMT watches limited Organization chart of HR Department Organization chart of Finance Department Organization chart of Sales Department Activity flow chart Page no 6 19 24 25 31 34 35
List of tables
Sl. No. 3.5 7.1.1 7.1.2 7.1.3 Contents HMT Units, Divisions and Locations Job performance factors Managerial abilities factors General comment and overall assesment Page No. 16 28 28 29
Chapter-1 Introduction
Organization is a systematically designed, scientifically planned sum total of various function coordinate mutually, synchronized in a format to achieve the goals and objectives of the company. HMT is one of the Government of India undertakings, which was established in the year 1953, with the objective of producing a limited range of machine tools, required for building an industrial institute for the country. HMT Watches Limited comprises of three manufacturing units at Bangalore, Tumkur, Ranibagh and Uttarkhand. It manufactures Mechanical and Quartz Analog watches and Clocks. HMT limited, the first company to start Watch manufacturing in India, has incorporated HMT WATCHES LIMITED as its fully owned subsidiary. The manufacture of wristwatches started as part of diversification strategy of HMT in the year 1962, under Technical collaboration with CITIZEN Watch Company of Japan. The purpose of the study is primarily to explore the knowledge on HMT Watches and then gain the consumer insights for the acceptance of new watch models.
HMT is one of the reputed public sectors in India. It is an organization with all the departments under one roof and study of the
organization structure will be more useful and meaningful.
It has got many programs to help the students by giving exposure to the real working
environment.
The production and distribution network is very efficient and large size.
To gain practical knowledge while conducting the study. This study would help HMT Watches Limited to understand the gaps in the communication strategy regarding brand repositioning exercises and further measures to be taken for effective marketing communication.
33% 43%
13% 11%
Premium: (>Rs.5000) Swiss Brands: Tissot, Omega, Rolex Fashion Brands: Fossil, Calvin klein, Giordano, Espirit.
(Source: indiaindustrystatistics.blogspot.com)
10
Global Watches market to reach $46.65 billion and Clocks market to reach $5.42 billion by 2017 ( source: Global Industry Analysts, Inc)
Future watches Watch makers in Europe are building complex, intricate machines that tell time with micro-second accuracy. These are masterpieces where each component is handcrafted by Masters of Horology and designed by master designers. Breguet falls into that category. The demand for wrist watches, especially from Asia in so strong that watchmakers have been struggling to ensure adequate supply. There are watches already that read the pulse rate and watches that can be used in emergency as a cell phone. Soon there will be watches incorporating the GPS for navigating the cars and carrying entire medical history to be referred to by doctors in emergency. The Swiss watch industry holds 95 per cent of this market and is believed that this market will continue to grow at about 10 per cent a year over the next decade. Cheap watches priced between $1 and $30 and will grow at about 20 per cent annually. The Swiss have only a 5 per cent of this market. This is where all local players survive and grow. As this market will have enormous volume throughput, local watch brands will be beneficiaries of some interesting volume sales. (Source: http://www.thehindubusinessline.com/todayspaper/tpbrandline/article1112102.ece).
11
Chapter-3 3. COMPANY PROFILE Company Name Established : HMT WATCHES LIMITED : 1961
Registered Office : HMT Bhavan #59, Bellary Road, Bangalore-560032 Factories Website : Bangalore, Tumkur, Ranibagh and Uttarkhand. : www.hmtindia.com
12
HMT is one of the Government of India undertakings, which was established in the year 1953, with the objective of producing a limited range of machine tools, required for building an industrial institute for the country. HMT Ltd. a leading PSU, is a name to reckon with and has a significant presence in the capital goods, precision engineering, consumer goods and tractor markets in the country. The company has, over the years, imbibed and developed cutting edge technologies and today offers total manufacturing solutions to the engineering goods manufacturing sector. In its progression from a single-unit, single-product company to a multi-product, multi-unit conglomerate, HMT has laid the foundation for the evolution of a network of engineering component manufacturers throughout the nation that has since developed substantially and forms the bulwark f the manufacturing capability of the country. HMT has in its fold 18 manufacturing unit spread over 10 states. It is now restricted and comprise of six subsidiaries under order of words of Holding Company. Subsidiary units are: HMT Machine Tools Limited, Bangalore. HMT Watches Limited, Bangalore. HMT Chinar Watches Limited, Jammu & Kashmir. HMT Bearings Limited, Hyderabad. HMT Praga Tools Limited, Secunderabad. HMT International Limited, Bangalore. Joint Venture Company SUDMO-HMT Process Engineers (India) Limited.
3.2 Mission and Vision To establish ourselves as one of the worlds premier companies in the engineering field having strong international competitiveness. To achieve market leadership in India through ensuring customer satisfaction by supplying internationally competitive products and services. To achieve sustained growth in the earnings of the group on behalf of shareholders.
13
the application needs of every industry. HMT also has the distinction of manufacturing its own CNC systems in association with Siemens. During the 1960s with the success achieved in the initial years, the company launched a bold plan of diversification and expansion which resulted in the duplication of Bangalore unit and the setting up of new units at Pinjore, Kalamassery and Hyderabad to become the worlds widest range of machine tools manufacturers under a single corporate entity. With a Watch Factory already established in 1961-62, additional capacities for watch production were contemplated to provide a greater cushion against cyclical fluctuations in capital goods markets and also to meet the bargaining demand for watches. The 1970s witnesses the fructification of all the diversification plans as envisaged. HMT set up HMT International Limited as a subsidiary company to channel HMTs product and technical services abroad and took over Machine Tools Corporation at Ajmer as its Sixth Machine Tools unit. Two more units for watch manufacture set up at Srinagar(Jammu & Kashmir) and Tumkur(Karnataka). HMTs Tractor business commenced its operations in 1971 in technical collaboration with M/s MOTOKOV, Czechostovkia Republic. The company achieved market leadership in tractors by enlarging its range to cover most of the applications for the farming community. In the 1980s HMT as a part of vertical integration of efforts launched units to manufacture Watches at Ranibagh, Watch cases at Bangalore, Stepper motors at Tumkur. CNC systems and Ball Screws for use on CNC machines at Bangalore. Also, HMT Tools took over Indo-Nippon Precision Bearing Ltd. a state owned units as a subsidiary, which was renamed HMT BEARINGS Ltd. and PRAGA TOOLS Ltd. as another subsidiary. In 1990s, it involved n formation of a Machine Tools Business Group as part of Business Re-Organization, formation of Central Reconditioning Division at Bangalore. Today, HMT comprises six subsidiaries under admit of a Holding company which also manages the Tractors business directly.
15
3.4.1 HMT MACHINE TOOLS Ltd. HMT Ltd, the pioneer in machine tools industry in India and manufacturers of a diversified range of products has incorporated HMT MACHINE TOOLS Ltd. as its fully owned subsidiary on 9th august 1999. HMT Machine Tools Ltd is a multi unit, multi location, multi technology unit manufacturing a wide variety of State of the Art Machine Tools. All manufacturing units of HMT MTL are also ISO 9001 certified.
3.4.2 HMT WATCHES Ltd. HMT Ltd. the first company to start watch manufacturing in India has incorporated HMT WATCH Ltd. as its fully owned subsidiary on 9th august 1999. It manufactures mechanical and quartz analog watches. HMT WATCH Ltd comprises of three manufacturing units at Bangalore, Tumkur and Ranibagh while its marketing headquarters is based in Bangalore. All its manufacturing units have obtained the ISO 9001 certification. The product range of HMT WATCH Ltd include more than 1500 models to choose from catering to all segments of the market from economy to premium and young to the old. HMT brand enjoys very high brand equity in the Indian market. The brand has consecutively been adjusted as one of the best Indian brands in surveys by leading agency in the country. HMT brand continue to be the main stream brand among major watch dealers in the domestic market.
3.4.3 HMT CHINAR WATCHES Ltd. HMT Ltd., the first company to start watch manufacturing in India has incorporated Chinar Watch Ltd. as its fully owned subsidiary on 4th September 2000 with Jammu as its head quarters.
16
The product range of Chinar Watches Ltd. consists of the mechanical Gents hand wound watch. Marketing, Sales and after sales service for watches of HMTCWL is catered to by HMTWL. 3.4.4 HMT (INTERNATIONAL) Ltd. HMT (INTERNATIONAL) Ltd. was set up in 1974 as a wholly owned subsidiary of HMT Ltd., to undertake export goods manufactured by HMT and other leading Indian manufacturers. HMT(I) is headquarter at Bangalore and has a global network extending over 38 countries with 67 representations to service its all worldwide. HMT (I) has sold over 12,500 machines in more than 70 countries with efficient after sales service. HMT (I) also offers a comprehensive package of consultancy of technical and engineering services from concept to commissioning on turnkey basis its track record include prestigious in. Algeria, Indonesia, Kenya, Malaysia, Tanzania, UAE and other countries. HMT (I)s business portfolio include trading in : Machine tool and industrial machinery Watches Tractors and agricultural implements General engineering products. Industrial commodities Projects and services
3.4.5 HMT BEARING Ltd. HMT Bearings Ltd, formerly known as Indo-Nippon Bearings Ltd was incorporated in the year 1970.It is the only company of its kind in the public sector set up to manufacture Ball &Roller Bearings. The company was established in technical collaboration with M/s Koyo Seiko Co. Ltd. JAPANS an internationally reputed manufacturer of Bearings. In 1981, the company became a wholly owned subsidiary of HMT Ltd. The manufacturing unit is located in Hyderabad and marketing and sales offices cater to the whole India.
17
3.4.6 PRAGA TOOLS Ltd. Praga Tools Ltd was incorporated on 20th May, 1943 as Praga Tools Corporation Ltd to manufacture Machine Tools with headquarter at Secundrabad. It was renamed as Praga Tools Ltd in 1963. HMT Ltd took over Praga Tools Ltd as one of its subsidiaries with the transfer of majority of the share holding in the year 1988. Praga Tools Ltd manufactures Machine Tools for various applications including CNC Machines. In the years Praga has collaboration with world famous machine tool manufacturers. 3.4.7 HMTS TRACTOR BUSINESS HMTs tractor business commenced its operations in 1971 in technical collaboration with M/s MOTOKOV, Czechoslovakia republic. Initially, HMT started the operation with the manufacture of 25 HP tractor at the manufacturing plant established in Pinjor, Haryana. Over the years, it has develops tractors ranging from 25HP to 75HP. The company achieved market leadership in tractors by enlarging its range to cover most of the applications for farming community. Currently the company has there three tractor manufacturing units in India located at Pinjor in Haryana, Mohali in Punajb and Hyderabad in Andhra Pradesh. It has a well equipped R&D center duly recognized by the department of scientific and industrial research, the government of India. The tractor business group of HMT has been a proud recipient of a number of national level-productivity awards. It has also been certified for ISO-9001 by KEMA, Netherlands. It has an installed capacity of 18,000 tractors for manufacturing and assembly operations. It has an in house marketing organization comprising b17 area offices, 11 stockyards and over 300 dealers spread across the country. HMT tractors is ably supported by over 40 ancillary units.HMT has produced and marketed over 3, 00,000 tractors since inception.
18
Harayana Kerala
Watch Factory I & Watches II Chinar Limited Watch Factory IV Watch Factory V Watches Watches Watches Watches
Srinagar
Jammu Kashmir
&
19
20
colony buildings were completed within a record time of 13 months. The assembly wrist watches from the important component was started. Initially , Watch Factory, Bangalore started with a humble production of 14439 watches with a turnover of Rs.100 Lakhs during the year 1962-63.The indigenous contents of a watch initially was about 32% & then increased to 64%.The unit started production of Hair spring , Main spring & shock absorbers during the year 1976 & increased the indigenous content of a watches.
21
Marketing Division
Manufacturing Units
Watch Factory Bangalore & Timing Systems Division Bangalore Watch Case Factory Bangalore Watch Factory Ranibagh Watch Factory Tumkur
Source: Sectional Manual HMT Watches Ltd. 4.3 CORPORATE OBJECTIVES of HWL Ensuring customer satisfaction through market leadership. Achieve sustainable competitive advertisement through the value edge and technological leadership. Achieve systematic business growth through generalization of adequate interest of the research. To globalize the co- operation by developing a mix of international market and net foreign exchange earnings. Development and retain human skills and talents. Improving the Quality of work life. Introducing the Innovative products.
22
Development of ancillaries, small industries, rural and backward areas. Promote ecological balance and quality of social life. Sound and ethical business practices.
1976- Project for manufacturing 1.25 million sets of Hair Spring, Main Spring and Shock Absorbers to cater to in-house requirement and other HMT Watch Units established. 1979- Establishment of FF-IV at Tumkur to manufacture 2 million Watch components. 1980- Enhancement of production capacity of Hair Spring, Main Spring and Shock Absorbers to 3.25 million sets. 1981- Quartz Analogue Watch Project started. 1983- Specialized Watch Case Division established at Banagalore.
23
1985- Establishment of WF-V at Ranibagh for manufacture of 2 million Watch components. Miniature Battery Unit at Guwahati started.
1989- Uday HMT Ladies Welfare Association established for the Assembly operations, exclusively employing dependents of deceased/retired employees of HMT. 1990- Quartz Ana-Digi Watch Assembly started in WFB. PCB Manufacturing established in WFB.
1991- Quartz Multi-Function Digital Display Watch Assembly started in WFB. 1993- To capture the growing urban market for fashionable watches, two new brands viz., Ramani for gents and Utsav for ladies were launched. 1997- Launched Swarna series on august 15. - Introduced ADD and dater watches priced at Rs. 750-900 in September 1998- Company launched 15 new models in automatic day/date range. - Introduced 350 range of Citizen watches in Mumbai along with its latest Eco-Drive models.
4.5 PRODUCTS OF HMT Keeping pace with the changing fashion, several different models of Hand Wound Watches, Pocket Watches, Ladies Watches, Braile watches for blind people, Automatic Day Date, Quartz Ana-Digi and Quartz Multi-Function Digital Display watches. Additionally printed circuit boards are also being manufactured for various electronic application including Quartz watches. The productivity Aids department manufactures and supply vibratory bowl feeders to other Watch Units.
24
5. STRATEGIC PLANNING To achieve the objectives and goals of the Unit and to optimize the utilization and capitalizing the strengths, the following strategies have been chalked out in major areas like Production, Procurement, Finance, Cost Reduction, Productivity Improvement and Personnel & Human Resource Development.
b) PROCUREMENT Preventing suppliers from forming cartels by reducing the dependence on them to the barest minimum by in-house manufacturing. Reducing the raw materials and other semi-finished good inventory by scientific planning.
c) FINANCE High accent on internal resources generation and ploughing back of WBG surpluses in expansion. Effective control measure on committed cost. Efficient Working Capital Management Better work-in-process and Inventory Control.
25
d) COST REDUCTION & PRODUCTIVITY IMPROVEMENT Incentives linked to productivity. Training and Development. Job enrichment and job rotation to break the monotony of work-life. Process improvements. Use of low cost work-aids, jigs & fixtures. Better Material Handling Systems. Quality Assurance. Energy Conservation Production redesign and Value Engineering. Standardization of products, raw-materials, tools etc
e) PERSONNEL Educating the employees about the difficult phase which the company is passing through. Exposing the employees to the market environment especially in regard to the competitors and their products. Retraining of existing manpower to take up new technology products. Reframing comprehensive personnel systems covering Discipline, Promotions, Motivation and Incentives. Addition of manpower for High technology areas such as CNC machining, computerization, ECB Manufacturing etc.
6. ORGANIZATION STRUCTURE of HWL Chairman heads the Board of Directors of the Company along with one GOI Nominee Director. Director Finance. Each Manufacturing Unit is head by General Manager. He is supported by a team of Joint General Manager, Deputy General Manager heading various departments/disciplines within the unit. Under them are Assistant General Manager (AGM), Manager & Deputy Manager. Officers and Workmen
26
Chairman
Managing Director
Finance Chief
27
Office/HRD/ Administration/PR
Legal
Functions of the General Manager Manpower planning, recruitment and selection. Induction and training. Performance appraisal. Wage and salary administration. Employment of casual contract labour. Industrial communication. Providing welfare facilities to the employees like houses, transport and award of compensation.
28
Recruitment Recruitment is the process of finding attracting capable applicants for employment. The process begins when their applicants are submitted. In HMT recruitments are done by i. ii. Campus recruitment Open all India advertisement.
Selection All the applicants have to undergo preliminary written tests for the selection. Written tests will be conducted by entrusting the work to a reputed institution in order to ensure objectivity. Candidates whose results have not been declared at the time of application will be permitted to appear for the test only on the condition that they should have passed successfully the course with requisite marks when they appear for interview. Candidates are ranked on basis of the performance in the test and will be called for the Interview/Group Discussion. Candidates are selected based upon the performance in the interview and they are sent appointment letters. Selection Committee consists of senior executives not below the rank of Joint General Manager & Officer-in-charge. Induction The selected candidates for engineering and other professional areas shall undergo induction training for a period of one year. The induction training will be coordinated by Center for Manpower Development and Research Department of Corporate Personnel Directorate which will plan the induction training schedule for the entire year. Induction training schedule is as follows: 1 month - classroom training to give the trainees knowledge of the company products, process and people. 2 months - implant training, to give an understanding of shop floor. 3 months - to give the trainees specialized inputs in their respective area of specialization.
29
4-6 months - rotation between different sections. 7-12 months on the job training in the section in which the trainee is placed. After completion of the training period the trainees shall be on probation for a period of one year. On successful completion of their probation period, the trainees will be confirmed on their job. Performance Appraisal An accepted system of performance appraisal is a great asset in the development of human resources in an organization. Objectives To effect a system of promotion consistency with skills and opportunities for the various categories of workmen in the company. To provide for a planned growth for the different categories of workmen in the technical and other area providing scope for the reward for performance. To develop a workforce with multi skills that will match the future needs of the organization in terms of qualification on base, multi-skills, multi-operations and experience. Appraisal process in HMT 1. Appraisal rating of the employees on: i) Job Performance Factors ii) Managerial Abilities Factors 2. General comments and overall assessment including development needs. 3. A review discussion between the appraiser and appraise. 4. Follow up action.
Appraisal Rating Individual factors falling within the above broad areas, a separate weight age is given for Supervisory and Executive groups are as under:
30
Table No7.1.1 - Job Performance factors. Sl. No. Particulars Weight age Supervisory 1 2 3 4 5 Total Source: Sectional manual HMT Watches Ltd Job knowledge Quality of work Target fulfillment Cost/Time control Safety consciousness 6 6 6 6 6 30 Executive 4 4 4 4 4 20
Table No.7.1.2- Managerial abilities Factors Sl. No. Particulars Weight age Supervisory 1 2 3 4 5 6 7 8 9 10 Planning & Organizing Problem analysis and Decision making Inter-personnel skills Communication skills Self-motivation/initiative Commitment Responsiveness to change/innovation Developing subordinates Management of human resources Active discipline 2 2 2 2 2 2 2 2 2 2 20 Source: Sectional manual HMT Watches Ltd Executive 2 4 4 3 2 3 3 3 4 2 30
31
Table No.7.1.3 - General comment and overall assessment The final overall assessment is arrived at as under
Total appraisal score 200 & above 180 & above 150 & above 120 & above Below 120 Source: Sectional manual HMT Watches Ltd Attendance and Maintenance
Every employee is provided with punch card and they shall record the punching four times in their particular scheduled shift. Every workman shall when entering the establishment register his/her attendance near the gate. All workmen shall be at work at the times fixed and notified. No workman will be allowed to leave the workshop during working hours without prior permission in the prescribed form as amended from time to time. Manner of Entry and Exit No workmen shall enter or shall leave the premises of the establishment except by the gate provided for the purpose. Annual leave with wages A permanent employee is entitled for the following types of leave in a year: a) Casual leave Employees who are covered under ESI Act-10 days Employees who are not covered under ESI Act-7 days
c) Earned leave Covered under ESI Act-1.5 days Not covered under ESI Act Medical facilities Employees in the service avails the medical facilities provided by the company, which includes the employees eligible spouse, parents and children. Company also runs a hospital at its township. Medical bills exceeding basic and dearness allowance, the total of basic and dearness allowance will be reimbursed to the employees. Some of the good multi-specialty hospitals are being recognized by the Organization, where the employees can avail the medical facility. Canteen HMT has good canteen facility for its employees for both Executive and NonExecutives. It is operated under contract basis. Minimum amount of money is charged for the food consumed. Tea and coffee are also provided to the employee at their place of work. Transportation Excellent transportation facility is given to the employees with the buses covering all the routes of the city. A minimum amount of money is charged from the employee using the transportation facility. Security Each and every worker before entering the production unit and at the time of leaving the unit, are checked by the security department. When materials received from the suppliers security checking is done at the gate. Up to Manager level-2.5 days Above Manager level-2.75 days
33
7.2 FINANCE DEPARTMENT The finance department of a business takes responsibility for organizing the financial and accounting affairs including the preparation and presentation of appropriate accounts, and the provision of financial information for managers. The Finance department is divided into different sections Outward Billing System Material account section Financial concurrence and Inward bills section Main accounts section Costing section Wages section Expenses account section Cash section
General Manager
Accounts Officer
Functions Finance Manager To maintain accounts To adverse management on all financial matters Budget formulation Resource utilization Inventory management Cost ascertainment/costing system Pricing policy Taxation planning policy Customer credit policy Preparing operational plans of the unit
Duties of Finance department concerned with other department Purchase department Purchase orders and concurrence for the value of purchases ordered and to obtain authority sanction for the purchase order. The duties of the finance department is to Insist invoice from the suppliers If supplied more, finance department will ask the purchase department to regularize If supplied less or material is rejected the finance department will ask the purchase department to fulfill backlog or replacement of rejected material Stores department When the payment to suppliers arises, Accounts department needs the MIS (Material Inward Slips) which is the primary duty of Stores department to issue MIS as soon as material comes in. Finance department can raise objection regarding the acceptance of material towards low quality material, which will be found out by operator. Sub-contracting is done in this factory. The Accounts department keeps in touch with contracting section regarding material components which have been issued to the subcontractor for job works and obtain detailed statement for having issued the material to
35
enable the Accounts department to deduct the value of the same, if any the subcontractor fails to fulfill the obligation. Sales department Accounts department interacts with the Sales department to obtain model wise details of watches to be dispatched to marketing division.
7.3 SALES DEPARTMENT The Watches manufactured by the Watch Factory I & II are dispatched to the HMT Watch Marketing Division through Carrying and Forwarding Agents(C&FA) who are appointed by them. Under the Excise Act of the Central Government the manufactured items before being sent out of the factory premises has to complete the Excise formalities and Excise Duty has to be paid on it by the manufacturing concern. The different types of products classified from Central Excise point of view are as follows: i. ii. iii. iv. v. Watches (Mechanical & Quartz) Watch components spares Watch screws Tools Machine spares
36
General Manager
Sales
Workman 1 No.s
Activity in Sales The components are drawn from Finished Parts Stores (FPS) and issued to Watch Ancillary Units by observing the necessary formalities, Watches after assembly and inspection watches are sent to Strapping Unit for strapping and boxing operation. The required straps and boxes are drawn from Main Stores and supplied to strapping unit. After completion of strapping and boxing the watches are collected and handed over to Carrying & Forwarding Agents (C&FA).
37
The detailed dispatch procedure is as below: Chart No.7.3.2 - Activity flow chart A) Watches B) Spares/Components
Receive watches from FPS and dispatch to C & FA- against Central Excise Invoice
38
7.4 MARKETING DEAPARTMENT Marketing deals with the identification and meeting human and social needs. One of the shortest definitions of marketing can be meeting the need profitably. The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than the competitors in creating, delivering and communicating customer value to its chosen target markets. Functions of Marketing Manager To collect information for sales forecasting Search for new product area Pricing the products as per the demand To appoint new dealers and distributors To market the product that involves- launching, presentation, awareness and advertisement of the product To keep a watch on the actions and strategies of the competitors To have full and perfect knowledge of marketing conditions and policies To attend grievances, complaints if any regarding product and services To emphasis on product promotion in certain areas Assessing exact customer requirement
Four Ps of Marketing
39
Distribution Channels Companys exclusive showrooms for retail sale Franchise Dealers, Redistribution stockiest
Export network includes Australia Sultanate of Oman UAE Dubai Uganda Hong Kong Nepal Madagarskar Bhutan
40
8. PRODUCT PROFILE
Inox Wrist Watch We offer an elegant range of INOX Wrist Watches that are suited for people of all age groups. These INOX Wrist Watches are water resistant and display accurate time. These Wrist Watches available at market
Floral Clock We offer Floral Clocks that create a sense of natural aesthetics and enhance the look of gardens, parks and corporate houses. Our Floral Clock is manufactured using latest technology and can be customized
Elegance Wrist Watch We have an elegant range of ELEGANCE Wrist Watches that are suited for people of all age groups. These ELEGANCE Wrist Watches are water resistant and display accurate time
41
Inox gold Wrist Watch We offer a wide assortment of INOXGOLD Wrist Watches that is at par with the industry standards. These INOXGOLD Wrist Watches are a compulsory item in everyday life
Solar Clock We are offering Solar Clocks, which are available in round shape. These Solar Clocks are offered at industry leading price, range of Solar Clocks can be customized as per customers specifications
Tower Clock Tower Clocks are available in square shape. Offered at industry leading price, range of tower clocks can be designed with single sided dial to four sided dial.
Population Clock Population Clock is manufactured using latest technology and can be customized as per the specifications provided by clients. These Population Clocks are widely known for its durability and quality
42
9. COMPETITORS TO HMT WATCHES Internal Environment Titan Purewal Omega Maxima Sonata Orpat Ajanta Indo-Swiss External Environment Citizen Casio Seiko Swatch Rado Maxima Quartz
43
44
Titan had started marketing its watches in unconventional outlets like boutiques and jewellery shops. The authorized service agents (ASAs) for foreign smuggled watches in the country are also suffering competition to HMT.
OPPORTUNITIES The demand for watches is growing rapidly both in domestic and international market. Capitalize on attractive segments. Leveraging brand equity of HMT to products such as gear, personal accessories.
45
11.1 SUGGESTIONS The suggestions to improve brand strategy of HMT Watches are as follows: To increase its visibility, HMT Company can sponsor events similar to fashion shows in which all latest designs launched are displayed. This would have multiplier effect as the latest designs launched by the company get noticed by different segments of the customers in varied ways. Tie up with FM radio channels for reminder advertisements and informing customers about various sales promotion offers from time-to-time. Invest more in R&D as customer expectations are changing rapidly. Though HMT has got more product collections, it should focus on introducing more varieties in already existing product collections. In other words, having a limited but more depth in product collections would be more advantageous. Introduce exclusive collection for youth segment which is more contemporary and complements both traditional and western wear. Majority of the population in India belongs to middle class segment so more innovative design should be made for them in a reasonable price and more of the exclusive show room should be set up. After sales service has to be improved. That is, the process of servicing and repairing of watches should be made faster. This can be done by ensuring the spare parts availability and training all sales personnel in Citizen Service centre to undertake these tasks. Tie up with international watch brands and make them available locally. Make use of internet to spread awareness among consumers about the brand.
46
11.2 RECOMMENDATIONS Conduct market survey Involve leading market research organization along with your sales. Do it periodic every six months involve retail shops, shopping centres, department stores, dealers, sales force. Most popular, 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 dear marketing hardly attract consumers in the marketing gutted with commodities. Train agents to set forth dear brand vision and efficient campaign. Shift to quality with new added value. Provide consumers with lot of information select their watch wisely and professionally according to their own taste.
Place Since retailers have enough foreign brands they were simply not interested in HMTs home grown products as a result it had to sell through its 13 branch offices for machines tool equipment. In mid 80s HMTs 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 HMTs advertising was distributive and did cater to the lifestyle segment, it failed to communicate the uniqueness of HMTs quartz design vis--vis other HMT watches.
47
Distribution Prepare retailer to meet the changing consumers 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 services. 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 understand main competitor by 10% using market penetration strategy. Promotion Special focus on sales during festival time like Diwali, Christmas, along with discount offer and finance schemes. Go for innovation and independent and modern dimensions of the watch collection.
48
CONCLUSION
Now a days cell phones are substituted for watches for referring time, but with the cut throat competition all the leading brands, watches are managing well in the market and this shows that the charm of watches will never end. Whether it is an accessory for some and necessary for others. Interning at the HMT Watches Ltd. gave me a good insight and exposure to the watch industry. Internship training gave me deeper understanding and appreciation of the watch industry in our country. It has helped me gain knowledge about the organization structure and functions of the company. Working at HMT Watch Ltd. gave me the practical knowledge about the work carried on in different departments. Interning at the HMT Watches Ltd. has motivated me to continue working diligently as well as to further my studies in order to contribute greatly to the development of my country.
49