Marketing Management

Introduction

The Hamilton History is a 120 years long and eventful travel from Lancaster in the US to Biel the world capital of watchmaking in Switzerland. Today highlights from Hamilton pioneering role in the worlds of aviation, cinema, electric and digital technology shape the collection. The Hamilton watches have unique shapes personality and design combining the American spirit with Swiss technologies.

Definition of Marketing Management (Theory 2000 – 2011) as per Hamilton Watch Marketing Management

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value. Hamilton Watch has chosen the aviators and navy people as their marketing niches; they have developed their product in considering these officers like khaki field officer, Hamilton Ventura etc. To obtain their specific goal Hamilton watches no longer use proprietary "in house" movements, instead using movements made by The Swatch Group's movement making subsidiary.

Definition of Marketing Management (Theory 2012 – 2016 ±) as per Hamilton Watch Marketing Management

Marketing management depends on the size of the business and the industry in which the business operates. Effective marketing management will use a company's resources to increase its customer base, improve customer opinions of the company's products and services, and increase the company's perceived value. So for making strong bases Hamilton Watch is developing its existing models, which is recognized as Ventura. As Hamilton watch has built its customers it is making higher its perceived values by using famous people like Elvis Presley.

Hamilton Watch Company

Vision

Hamilton has been running for six decades with the vision of attracting innovative minds with eye-catching shapes, unique designs and the use of modern materials to craft both a collection and iconic brand. 

Mission

Hamilton watch’s current mission is to play pioneering role in the world of aviation, cinema, electric and digital technology shaping the collection combining the brand’s American spirit with modern Swiss technology.

Business Plan

From the beginning Hamilton’s plan was to capture the mind of innovative and ambitious people. This brand has been targeting creative people with high personality. Hamilton doesn’t have that much of TV commercials rather the brand chose to get on the mind of people through movies or prestigious events like Air show.

Corporate Strategy

Hamilton’s corporate strategy reflects the brand’s motto American Spirit Swiss Precision. All the watches designed by Hamilton has the touch of American ideal, doing whatever anyone want to do and being what feels like to be. To design Watches to influence people to chase their own dream. At the same time Hamilton is ensuring the Swiss craft and precision at its maximum level.

SWOT

PESTEL Analysis

POLITICAL Hamilton’s assembly and production facilities are not prone to any political instabilities and the risk of operating there is relatively low. Hamilton is also present in less stable countries; however the continuity of Hamilton is not in danger, since none of their vital production facilities are located outside of Switzerland[1]. Apart from this, there is also a downside to operating in Switzerland.	ECONOMICAL As for the economic factors affecting the Hamilton company, it is clear that the recent economic downturn has its effect on almost every company. For example, it might decrease the purchasing power of consumers and they may also spend less money on luxury items such as watches. Another economic factor is the risk of foreign exchange exposure.
SOCIAL/SOCIO-CULTURAL Hamilton uses the age and life-cycle segmentation, where they offer different types of products, through various types of marketing, to many different age groups. Hamilton  appeals to the teenagers by offering a product line  which is a range of products designed by street painters and other artists . At the same time Hamilton targets the adults whom might prefer a more classic watch as for example from the “Full Blooded” collection.	TECNOLOGICAL In regard to the technological aspect of Hamilton’s external environment, watch making is a rather technological advanced field, watches become smaller and are more advanced than ever before. It is up to Hamilton to keep up with this technological development. It can also be seen that e-commerce is becoming more prevalent in today’s world, with the wide-spread use of computers, this might also be an technological development Hamilton  has to consider.
ECOLOGICAL/ENVIRONMENTAL Hamilton watch is always suitable for all types of weather and climate only because of their verities design on basis of weather.	LEGAL/ REGULATORY Hamilton watch is well known to all customers. So customers expectation getting increased day by day Manufacturing cost is high of Hamilton watch as employees are more expensive.

Porter’s 5 Forces of Hamilton Watch

                        

Marketing Strategy of HW

Marketing strategy is developed with the goal of increasing sales and achieving a sustainable competitive advantage. It includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies.

Developing a marketing strategy of HW

In Hamilton Watch, the marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. The strategies developed by HW are dynamic and interactive. They are partially planned and partially unplanned. In Hamilton Watch Company, their marketing strategy is always about long term view

In Hamilton Watch, marketing strategy involves careful and precise scanning of the internal and external environments. Internal environmental factors include the marketing mix of Hamilton Watch line its product, price, place, promotions and marketing mix modeling, plus performance analysis and strategic constraints. External environmental factors that are taken onto account by the management of Hamilton Watch include customer analysis, competitor analysis, target market analysis, as well as evaluation of any elements of the technological, economic, cultural or political/legal environment likely to impact success. A key component of marketing strategy is often to keep marketing in line with a company's overarching mission statement.

Once a thorough environmental scan is complete, a strategic plan is constructed by the management of Hamilton Watch to identify business alternatives, establish challenging goals, determine the optimal marketing mix to attain these goals, and detail implementation. At the final step in developing a marketing strategy, Hamilton Watch creates a plan to monitor progress and a set of contingencies if problems arise in the implementation of the plan.

Types of strategies followed by HW

Marketing strategies may differ depending on the unique situation of the individual business. However there are a number of ways of categorizing some generic strategies. A brief description of the most common categorizing schemes is presented below:

1.      Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are four types of market dominance strategies:

·         Leader

·         Challenger

·         Follower

·         Nicher

The marketer of THE HAMILTON WATCH follows the Nicher strategy. Its products are developed targeting the people who have got high income and who are brand conscious. If we look at the history of Hamilton Watch we would see that it always targeted the upper class people adding new and innovative feature in their watches.

Hamilton Watch Company pioneered brand marketing and few, if any, academics have mentioned the Lancaster based company. Beginning with the "Watch of Railroad Accuracy", "Explorers (Admiral Byrd) ", "Pilots", "Military", "Corporate Retirement", "Military", the marketing department used a number of strategies to create an emotional connection with consumers. Their policy is to target a small segment of the whole market that are aristocrat, stylish and demand precision and top quality. Their price range starts from $ 600 so it’s easily understood that they are targeting a focus group with their quality and innovation.

2.      Strategy based on Growth expectation:

The product market expansion grid is used for planning by a company when the company is looking to increase the sale of its products either by expanding product range or entering new markets. Thus, there are various strategies that the company can develop when it compares the product with the current market.

The product market expansion grid considers two main factors. The product and the market. The product can either be a current product or a new product. And the market can either be a current market or a new market. Thus, a grid is made, keeping in mind the two forms of products and the two forms of markets. This grid is the product market expansion grid. With the help of the grid, the proper market expansion strategy is decided. There are 4 main strategies of the product market expansion grid. These are mentioned below.

·         Market penetration strategy - Market penetration strategy is decided when the product is a current product in an existing market. It falls in quadrant 1. Thus, in such a case, the customers are aware about the product and due to one reason or another are not using the product. There are three main tactics which a company can implement to increase market penetration. The Hamilton Watch Company follows market penetration strategy while they open outlet in their currently operated countries like: USA, UK, Canada, Brazil etc. Usually when they open new store in the existing countries their purpose is attract more shoppers with existing product range. Another objective is fulfilled by this strategy which is to make more people aware about the brand and make the brand available to the target consumers.

·         Market development strategy - The market development strategy is used when the product is an existing product but the market is new. This strategy falls in quadrant 2 of the grid. A company might decide to increase its territorial reach and therefore enter a new market. The new market may have tough competitors, or it may happen that the new company may be received very positively. In either of the cases, there are three main tactics which the company can use for market development. To increase sales growth and fight against competition the Hamilton Watch Company also follows this strategy. It enters into new country with their existing product portfolio. For example: entering into the China market falls under market development strategy. Before entering into China the market was dominated by CASIO, TITAN brands. To bring sales growth and increase the business the company followed this strategy. 

·         Product development strategy - Product development is used when there is a new product which has to be introduced in an existing market. It falls in quadrant 3 of the matrix. This may be done because the company’s products are not selling anymore or that the company has identified new segments which it had missed before and wants to introduce new product to increase product sales. There are majorly three tactics which the company can use for Product development. The Hamilton Watch Company also follows the product development strategy with the purpose of being leader of innovation and renovation in watch making industry. For example, in 1957, the company introduced Ventura, the world's first battery powered watch. This astounding technology was accompanied by styling unseen and untried before in the watch industry. The asymmetrical case pointed and extended lugs and curved crystal of this technical marvel shook the watch industry up and changed the face of watch design.

·         Diversification strategy- Diversification strategy is used when a company enters new markets with new products. In such a scenario, the demands of the new market might be different from the current markets where the company exists. Thus, the company has to bring new products in new markets and hence the complication rises. In such a case, there are 3 different tactics which a company has to use to establish a diversification strategy. The Hamilton Watch Company is a true example of a global company. In most of the cases, it doesn’t cater the local style and design. It always focuses on bringing the American style in their watch design making.

Currently, the most used strategy by the Hamilton Watch Company is Market penetration, because the market is slowly becoming a crowded place with products being introduced daily in existing segments. However, for market leadership, the Hamilton Watch Company is trying hard to beat ROLEX, BRETLING, etc.

Core Marketing Concepts adopted by HW

Target Markets, Positioning, and Segmentation

The Hamilton Watch Company analyses the market and divide into different segmentation. While segmenting the market they focus on the demographic, psychographic, and behavioral differences among buyers. In terms of demographics they always focus on young people whose age is between 30 to 35. Their target group who are brand conscious and loyalty rate is high. Regarding psychographic, they always target people who are very concern about their lifestyle and value their life. Moreover, it target group of people to them, watches can function as a statement piece, a show of wealth, a pedometer, or simply as a timepiece.

 After analyzing all these things theydecideon the target group which will present the greatest business opportunities to them. For each, the firm develops a market offering that it positions in the minds of the target buyers as delivering some central benefit(s). For example: the Hamilton Watch Company focuses on bringing the American spirit and style in design with Swiss precision. So, those who possess the American spirit and love the American style in their day to day life buy their brand.

Offerings and Brands

The Hamilton Watch Company doesn’t only sell watch to its consumers. It sells the token of American style and Swiss precision to their shoppers. Its products ensure the ultimate comfort while customers wear it. It is well known for its precision in watch making. It has got long heritage of accurate watch making that provides accurate time always. So, the company also selling accuracy to the shoppers and ensuring that the customers will always get accurate time. Furthermore, its outlets are well decorated with lavish furniture that exhibits the ultimate luxury. It also offers uniqueness to its shoppers though their creative and stylish product design.

Marketing Channels

To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver and receive messages from target buyers and include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. The Hamilton Watch Company doesn’t follow all these as the mean of their communication to target group. They are present in lifestyle magazines, TV commercials, big billboards and internet. In terms of sales and distribution they mainly follow direct selling which means they open shops in different parts of the world controlled by the company itself. In some part of the world, they provide distributorship or dealer, Dealer of the respective opens stores in different part of the county and sell the products. To better its customer, the Hamilton Watch Company also have online sales stores. One can buy its products form its online shop. Moreover, its product portfolio is also available in different on shopping websites also like Amazon.com, Ebay.com, Newway.com, Flipkar.com, Bestbuy.com etc. Moreover, the company is also presents in different other social network like Facebook, Twitter, Tumbler etc.

Competition

The watch making industry is very saturated. It’s an age old profession and all most each and every county have their local manufacturer. We can divide of the competitors of the Hamilton Watch Company in to two categories:

ü  Local Competitors: In USA, the top competitors of HW are DEVON. KOBOLD, LUM-TEC, Weiss Watch Company, RGM, Shinola, Keaton Myrick

ü  International Competitors:  Patek Phillip & Co, Rolex, Omega SA, AudemarsPiguet, Jaeger – LeCoultre, TAG Heuer, Tissot, Seiko, Breguet, Cartier, Loginess, Hublot, Casio etc

Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers, businesses, or countries who have common needs and priorities, and then designing and implementing strategies to target them. Market segmentation strategies may be used to identify the target customers, and provide supporting data for positioning to achieve a marketing plan objective. Businesses may develop product differentiation strategies, or an undifferentiated approach, involving specific products or product lines depending on the specific demand and attributes of the target segment.

Methods for Segmenting Consumer Markets

Geographic Segmentation

Marketers can segment according to geographic criteria—nations, states, regions, countries, languages, cities, neighborhoods, or postal codes. The geo-cluster approach combines demographic data with geographic data to create a more accurate or specific profile.[1] With respect to region, in rainy regions merchants can sell things like raincoats, umbrellas and gumboots. In hot regions, one can sell summer clothing. A small business commodity store may target only customers from the local neighborhood, while a larger department store can target its marketing towards several neighborhoods in a larger city or area, while ignoring customers in other continents. Geographic Segmentation is important and may be considered the first step to international marketing, followed by demographic and psychographic segmentation. The use of national boarders is the institutional use of geographic segmentation, although geographic segments may be classified by identified geological regions.

Demographic Segmentation

Segmentation according to demography is based on variables such as age, gender, and occupation and education level or according to perceived benefits which a product/service may provide. Benefits may be perceived differently depending on a consumer's stage in the life cycle. Demographic segmentation divides markets into different life stage groups and allows for messages to be tailored accordingly.

Behavioral Segmentation

Behavioral segmentation divides consumers into groups according to their knowledge of, attitude towards, usage rate, response, loyalty status, and readiness stage to a product. There is an extra connectivity with all other market related sources.

Psychographic Segmentation

Psychographic segmentation, which is sometimes called Lifestyle. This is measured by studying the activities, interests, and opinions (AIOs) of customers. It considers how people spend their leisure,[6] and which external influences they are most responsive to and influenced by. Psychographic is highly important to segmentation, because it identifies the personal activities and targeted lifestyle the target subject endures, or the image they are attempting to project. Mass Media has a predominant influence and effect on Psychographic segmentation. Lifestyle products may pertain to high involvement products and purchase decisions, to specialty or luxury products and purchase decisions.

Marketing Mix

7P of Marketing Mix

Product

 The Product should fit the task consumers want it for, it should work and it should be what the consumers are expecting to get.

Hamilton has a line of variety of watches. Each variety was developed on basis of customers taste. Each watch is unique than the other and one of a kind. Some varieties are like

            Khaki Aviation: The Khaki Aviation line is geared toward the skyward bound, providing classic aviator styling and/or functions specific to the needs of a pilot.

            Jazzmaster: Like musical harmonies, the Jazzmaster series contains outstanding variations on a theme combining innovations and modernity.

            Timeless Classic: The Timeless Classic series takes Hamilton back to its roots when Hamilton was chosen for its unrivaled reliability and style.

            Khaki Field Line: The Khaki Field line provides rugged construction and elegant design.

            Khaki navy: The Khaki Navy watches are perfectly equipped for their underwater travels.

            American Classic Ventura: Faithful tribute to the original 1957 model, which made watch-        making history as the world’s first electrical, battery powered watch.

Place 

The product should be available from where your target consumer finds it easiest to shop. This may be High Street, Mail Order or the more current option via e-commerce or an online shop.

Hamilton’s shops are located all around the first world countries. Mostly in Argentina, Australia, Austria, Belgium, Brazil, Colombia, Chile, China, Croatia, Cyprus, Czech Republic, Ecuador, Egypt, EL Salvador, Germany, Greece,  US, UK, Canada, Cayman, France, Germany, Indonesia, Malaysia and Othrs.

Price 

The Product should always be seen as representing good value for money. This does not necessarily mean it should be the cheapest available; one of the main tenets of the marketing concept is that customers are usually happy to pay a little more for something that works really well for them. Some of the prices of Hamilton Watches are stated below.

Product	Price
Pan Europ Auto	$1,195.00
Spirit Liberty Auto Chrono	$1,845.00
Intr-Matic Auto	$995.00
Flintridge Lady	$1,295.00
Flintridge Gent	$1,395.00
Boulton Quartz	$625.00
Spirit of Liberty Auto	$995.00
Railroad Small Second	$1,345.00
Railroad Auto chrono	$2,045.00
Pan Europ Auto Chrono	$1,945.00
Thin-O-Matic Auto	$845.00
Valiant Auto	$695.00

Promotion

Advertising, PR, Sales Promotion, Personal Selling and, in more recent times, Social Media are all key communication tools for an organization. These tools should be used to put across the organisation’s message to the correct audiences  in the manner they would most like to hear, whether it be informative or appealing to their emotions.

American watch brand Hamilton is featured in the film Men in Black 3, with its distinctive Ventura timepiece becoming part of the Men in Black uniform. Hamilton and Columbia Pictures have worked together on the film and are continuing the partnership with a global promotion campaign to support the movie’s international rollout. Hamilton watches also appeared in Men in Black and Men in Black II, and with each film, the scope of promotional activity has increased. 

Hamilton’s long history with Hollywood includes watch appearances in more than 400 films, but Men in Black 3 represent a new milestone for Hamilton.

For over six decades Hamilton’s distinctive watches have caught the attention of the world’s leading screen stylists. Their eye-catching shapes, materials and unique designs earn them roles in the most diverse movie genres, ranging from action pictures such as DIE HARD, OCEAN’S ELEVEN, PREDATORS, ABDUCTION, science fiction movies like MEN IN BLACK, INDEPENDENCE DAY, 2001:THE SPACE ODYSSEY, to comedy classics like KILLERS, GET SMART, YOU’VE GOT MAIL, BLUE HAWAII and dramas such as A BEAUTIFUL MIND, or THE GOOD GERMAN.

Hamilton hosts events like air shows in France where competitors compete with each others, behind the camera awards to honor special artist for their individual impact on movies and many more.

People 

All companies are reliant on the people who run them from front line Sales staff to the Managing Director. Having the right people is essential because they are as much a part of your business offering as the products/services you are offering.

Hamilton has a long history of relationship with the aviation sector. As a result they have Nicolas Ivanoff , the leading French aerobatic pilot as their ambassador. But Hamilton is not only has people in aviation they have a strong presence in movie industry as Stars have worn Hamilton from time to time in numerous movies. Some of the actors and their corresponding movie names are shown in the table:

MOVIE	ACTOR	WATCH WORN
Amelia (2010)	Hilary Swank	Khaki Field Automatic
The Aviator (2004)	Alec Baldwin	Dodson
A Beautiful Mind (2001)	Russell Crowe	Wilshire
Autumn in New York (2000)	Richard Gere	Ardmore
Bad Company (2002)	Chris Rock	Khaki Chrono
Bicentennial Man (1999)	Robin Williams	Everest
Big Fish (2004)	Ewan McGregor	Khaki Field Quartz
Blood Diamond (2006)	Jennifer Connelly	Khaki King
Blue Hawaii (1961)	Elvis Presley	Ventura
Buried (2010)	Ryan Reynolds	Khaki Field Officer
Chain Reaction (1996)	Keanu Reeves	Khaki King
Charlie's Angels (2002)	John Forsythe Tim Curry	Linwood Viewmatic Lloyd Chrono Auto
City of Angels (1998)	Meg Ryan	Boulton
Cliffhanger (1993)	Sylvester Stallone	Khaki
Daredevil (2003)	Ben Affleck	Linwood Viewmatic
Every Word is true (2005)	Toby Jones	Ardmore
Fantastic Four (2005)	Jessica Alba	Lloyd Chrono, white dial, metal bracelet
Fantastic Four and the rise of the silver surfer (2007)	Ioan Gruffud	Jazzmaster Auto Chrono
Get Smart (2008)	Steve Carrell	Multi touch
Grilled (2005)	Ray Romano Kevin James	Everest Khaki Action
Hairspray (2007)	Michelle Pfeiffer	Lady Hamilton
Handyman (2006)	Marco Rima Regula Grauwiler	Jazzmaster Chrono Auto Khaki X-Wind
Homeland Security (2007)	Antonio Banderas Tom Adams Eli Danker	Khaki GMT and Trent Khaki Aviation QNE Jazzmaster Auto Chrono
I am Legend (2007)	Will Smith	Khaki Aviation Twilight
Independance Day (1996)	Jeff Goldblum	Carlisle
In the Land of Women (2006)	Adam Brody	Blaine
In The Valley of Elah (2007)	Tommy Lee Jones	Khaki Field Mechanical
Into the Blue (2005)	Paul Walker	Khaki Navy GMT
Italian Job (2003)	Mark Wahlberg	Khaki Field Auto Chrono 38
Kennedy et moi (1999)	Jean-Pierre Bacri	Linwood Viewmatic
Kiss & Kill (2010)	Ashton Kutcher	Jazzmaster Open Secret
Lethal Weapon 4 (1998)	Danny Glover Chris Rock	Ardmore Linwood Viewmatic
Life (1999)	Eddy Murphy	Pocket Watch
Die Hard 4.0 (2007)	Bruce Willis	Khaki ETO
Men in Black (1997)	Will Smith, Tommy Lee Jones	Ventura
Men in Black II (2002)	Tommy Lee Jones Will Smith	Digital Pulsar Ventura Chrono
Nutty Professor II (2000)	Eddie Murphy Janet Jackson	Khaki III Khaki III Medium
Ocean's Eleven (2001)	George Clooney	Linwood Viewmatic
One Fine Day (1996)	Michelle Pfeiffer	Benton
Out of Towners (1999)	Steve Martin	Classic Line
Pearl Harbor (2001)	Josh Hartnett / Alec Baldwin	Khaki
Pink Panther (2006)	Steve Martin	Boulton
Predators (2010)	Adrian Brody	Khaki BeLOWZERO
2001: Space Odyssey (1968)	All Astronauts Characters	Custom Made
Spartan (2004)	Gene Hackmann/ Val Kilmer	Khaki Field Mechanical 38
Spiderman II (2004)	Alfred Molina	Llyod Chrono White /Metal
Superman Returns (2006)	James Marsden Frank Langella Brandon Routh Sam Huntington	Khaki Navy GMT Boulton Linwood Khaki King
SWAT (2003)	Samuel L. Jackson	Khaki Multi-Touch
Sweet November (2001)	Keanu Reeves	Linwood Viewmatic
Synergy (2004)	Marg Helgenberger	Benton
The 13th Floor (1999)	Armin Mueller-Stahl	Contour
The Edge (1997)	Anthony Hopkins	Pocket Watch (Broadway Ltd. w/cover)
The Frogmen (1951)	Robert Wagner	Frogman
The General's Daughter (1999)	John Travolta	Khaki Chrono 39mm
The Good German (2007)	George Clooney	Ardmore
The Majestic (2001)	Hal Holbrook	Wilshire
The Out-of-Towners (1999)	Steve Martin	Ardmore
The Producers (2005)	Nathan Lane	Pocket watch
The Talented Mr. Ripley (1999)	Matt Damon	Ardmore
Three to Tango (1999)	Matthew Perry	Khaki
Tin Cup (1996)	Renne Russo	Khaki Sub Medium
U.S. Marshalls (1998)	Tommy Lee Jones	Khaki King (fake blood on bracelet)
Vanilla Sky (2001)	Jason Lee Kurt Russell	Lloyd Chrono Sil /Bl Linwood Viewmatic Yellow
View from the Top (2003)	Gwyneth Paltrow Rob Lowe Mike Myers	American Traveler Llyod Chrono Yellow Khaki Chrono
Where the Truth Lies (2005)	Kevin Bacon Colin Firth/ Alison Lohmann	Ventura Linwood
Windtalkers (2002)	Nicolas Cage	Khaki
You've Got Mail (1998)	Tom Hanks	Classic Line

Processes 

The delivery of service is usually done with the customer present so how the service is delivered is once again part of what the consumer is paying for.

Hamilton has interactive online shop to purchase their watches through online. Customers can easily pick their desired model and compare it with other models and then can complete payment online. After the order process is complete the package then shipped to the buyer’s desired location. Hamilton also has showrooms in major shopping malls all around the world where people can purchase them by themselves.

Physical Evidence

Almost all services include some physical elements even if the bulk of what the consumer is paying for is intangible. For example a hair salon would provide their client with a completed hairdo and an insurance company would give their customers some form of printed material. Even if the material is not physically printed (in the case of PDF’s) they are still receiving a “physical product” by this definition.

Hamilton has strong presence in the market. Whoever desire to put on a Hamilton watch can easily do it simply by going to the nearest shop and try it on.

4C’s of Marketing Mix

Clients/Customers

In the process of marketing it is important to find out what customers want and need. According to those findings companies need to create that product.

Hamilton closely work with the end users. Like Hamilton has developed a new pilot watch, the Khaki Flight Timer, in close collaboration with Air Zermatt, the prestigious transport and rescue helicopter company. The multi-functional model integrates a dedicated pilots’ logbook to record details of up to 20 flights.

The Khaki Twilight, also was created for the needs of the movie I AM LEGEND. It integrates the facility to countdown to the beginning and end of twilight.

Cost

Cost is equivalent to Pricing in the traditional marketing mix. Cost is a very important consideration during consumer decision making and hence in the 4 C’s principle, the cost variable is given special attention.

Hamilton’s watches ranges from $600 to $3000. It has the elegant line of watches which offers different functionality for different people of different profession. As their technology is state of the art in modern watch making industry and precision is one of the best in this world, high cost is truly justified for their watches.

Communication

Communication refers to how a company is integrating its product with its clients. How easily people are getting attached to the brand. The media vehicles used for marketing communications for a mass product and that for a niche product are different.

As Hamilton is a niche marketer they don’t go for that much advertising in the mass advertising media. Rather they target their customers through campaigning in the movie industries or aviation industries.

Convenience

Hamilton is primarily in house selling organization. Their showrooms are more like museums of watches. Variety of watches is displayed in their showrooms and let people choose from the collections. In house purchasing is also an experience for the customers as they have the opportunity to go through the history of Hamilton’s watch making. But that doesn’t stop Hamilton from delivering watches to the home bought online. People can go to the online shop of Hamilton and make their choices, pay for the product and get delivery within 3 to 5 working days.

Fifth Element: Packaging

Packaging plays an important role as a medium in the marketing mix, in promotion campaigns, as a pricing criterion, in defining the character of new products, as a setter of trends and as an instrument to create brand identity and shelf impact in all product groups. 

Hamilton has a simple packaging solution. The design of the boxes is simple yet unique. Some boxes come with simple functionality like hidden pockets to store tiny component. These boxes are made from strong component to provide full protection.

Value Chain Model

Firm Infrastructure: Business Strategy, Market Strategy, Marketing Policy
Human Resource Management: Product Development, Market Research, Staff Recruitment and Training
Technology Department: Database Marketing, Internet Sales, Transaction Processing System
Procurement: Equipment, Raw Materials
Inbound Logistics: Ø  Pricing Ø  Transportation Ø  Fuel Ø  Delivery Time Ø  Production Material	Operations: Ø  Production of Hamilton Watch Ø  Storage Facilities Ø  Maintenance	Outbound Logistics: Ø  Vending Machines Ø   Whole Sellers Ø  Retailers	Sales and Marketing: Ø  Promotions Ø  Advertising Ø  Events	Service: Ø  Online Feedbacks Ø  FAQs Ø  Ordering Online

The goal of these activities is to offer the customer a level of value that exceeds the cost of the activities, thereby resulting in a profit margin. The primary value chain activities are:

Ø  Inbound Logistics: the receiving and warehousing of raw materials and their distribution to manufacturing as they are required.

Ø  Operations: the processes of transforming inputs into finished products and services.

Ø  Outbound Logistics: the warehousing and distribution of finished goods.

Ø  Marketing & Sales: the identification of customer needs and the generation of sales.

Ø  Service: the support of customers after the products and services are sold to them.

These primary activities are supported by:

Ø  Infrastructure of the firm: organizational structure, control systems, company culture, etc.

Ø  Human resource management: employee recruiting, hiring, training, development, and compensation.

Ø  Technology development: technologies to support value-creating activities.

Ø  Procurement: purchasing inputs such as materials, supplies, and equipment.

Focus Differentiation of Hamilton: Serve highest end of wristwatch market (premium pricing & image). In 1971 it became the third company of what was to later become the Swatch Group and is today one of twenty brands belonging to the Swatch Group, the world's largest watch manufacturer and marketer. Modern Hamilton watches no longer use proprietary "in house" movements, instead using movements made by The Swatch Group's movement making subsidiary.

TQM-Loyalty-Quality & Control

TQM is a way of thinking that becomes a centre piece of an organization. It is defined as a management tool, philosophy and a set of principles which guides every member of organization who involved in the continuous improvement process to meet customer satisfaction. The TQM concept requires an effective involvement of all members of organization in decision making because their participation and contribution are considered as critical role in all business activities for providing services to customers with high quality products. However, there is no standard method as to how TQM should be implemented. The organization committed to customer satisfaction through continuous improvement varies from organization to organization and also from country to country, but it has common principles that can be applied to secure market share, increase profits and reduce costs. In brief, TQM is the management of quality throughout all members of organization. The organization must satisfy internal and external customer needs and then use strategic planning including all functional areas to achieve strategic goals. The key idea of TQM is that quality control must be an integral part of the production process. It includes continuous improvement to remove waste, doing things right first time (removing the need for inspection), and quantitative measurement to analyze deviations from quality. The purpose is to reduce costs by preventing unnecessary rework jobs and to conform customer needs by satisfying expectations of high quality. The principle of TQM is continuous improvement. No one can never be satisfied with the method used, because there always can be improvements. The competition is always improving, so it is necessary to strive to keep ahead of the game. Hamilton Watch has always followed the path of TQM with new design and new spirit. In the late 1980s and early 1990s, Hamilton began a marketing campaign that resulted in a comeback. Vintage designs were coming back in style and Hamilton had a large portfolio of popular designs from the 1920s, 1930s, 1940s, and 1950s from which to draw. Playing on this resurgence, Hamilton replicated several of these original designs, such as the Ardmore, Boulton, Cabot, Piping Rock, Spur, Wilshire, and the 1957 Hamilton Ventura. These reissued watches incorporate a modern Swiss-made quartz movement. In 2007, Hamilton introduced special editions of the Ventura to coincide with the 50th anniversary of the introduction of the electric watch. For the U.S. market, stainless steel quartz and automatic versions were released with a production of 1,957 each; for the Asian market, yellow and rose gold plated Ventura models were released with a total production of 1,000 each. In 2009, Hamilton released three new Ventura models to celebrate what would have been the 75th birthday of Elvis Presley. Presley wore a Ventura in the movie Blue Hawaii. The automatic PVD version is an updated design of the Ventura.

Brand: Hamilton

Historically, Hamilton was an American brand. Today they are one of the mid-level brands owned by Swatch Group, comparable to Tissot. They present a good value because they are fairly affordable, yet are 'Swiss Made' and feature robust and reliable ETA movements. Hamilton Watches are great watches, great value for the money, very good quality and very consistent in their manufacturing. They are easy to find at retailers or online, often at notable discounts.Most of their automatic movements say "Swiss" in them which means the movement is sourced in Switzerland and supplied by Swatch.

Both these used as the logo of HW where in the first one it tells us about its American origin and where the company is rooted. In the second logo we see that HAMILTON telling us the two founding pillars upon which the company is built on and they are the: American Spirit and Swiss precision. This slogan tells us that Hamilton Watch carries its American spirit in their heart while doing business and maintaining the Swiss precision in their watch making.  

Let’s have a look at the 7 brand elements of Hamilton Watch:

1. Brand Name: HAMILTON

2. Logo / Symbol:

3. URL:www.hamiltonwatch.com

4. Character: No character is used.

5. Slogan: AMERICAN SPIRIT. SWISS PRECISION

6. Jingle: No official jingle

7. Packaging: Like other watch companies HAMILTON makes innovative and unique watch boxes.

Brand Elements Choosing Criteria

There are six criterions for choosing the brand elements are:

1. Memorability: We all know how important a memorable and attention-getting brand name is to the success of a company because, it facilitates recall or recognition. The brand name HAMILTON has got its quality of memorability. The name is easy to pronounce and easy to remember also.

2. Meaningfulness: Brand elements may take on descriptive or persuasive meaning.The word HAMILTON is not strongly persuasive like many other name of the watch making companies. It can be a name of a person or a city. So this name doesn’t have the quality of meaningfulness. 

3. Likability: The customers find the brand element of HAMILTON aesthetically appealing. Its dark black color represents gorgeousness while its orange color represents aristocracy and boldness. 

4. Transferability: The brand name HAMILTON has got quality of transferability. The name is useful line or category extensions. This brand name can used in any other business like aviation, education etc.

5. Adaptability: The brand name HAMILTON is very adaptable and flexible. This brand name can be used in other business categories also.

6. Protect ability: The brand elements of HAMILTON are legally protected internationally. Its dark black color with orange square shape clearly differentiates itself from other watch making companies.

Brand Dynamic Pyramid

For each brand, each person interviewed is assigned to one level of the pyramid depending on their responses to a set of questions. The Brand Dynamics Pyramid shows the number of consumers who have reached each level.

• Bonding – As dealing with marketing niches Hamilton watch has never gained this stage of rational and emotional attachments to the brand to the exclusion.
• Advantage – Regarding Marine chronometers and deck watches customers have felt to have an emotional or rational advantage over other brands in the category.
• Performance – Regarding the Vintage model watches customers have felt to deliver acceptable product performance and are on the consumer's short-list.
• Relevance – Regarding the Ventura models customers have felt relevant to consumer's needs, in the right price range or in consideration set.
• Presence – New Ventura models have gained the active familiarity based on past trial, saliency or knowledge of brand promise

Purchasing loyalty increases at higher levels of the Pyramid - consumers at the level of bonding are likely to be active advocates of the brand. There is also an increase in share of wallet - the proportion of consumer expenditure within the category on that brand - as you ascend the Pyramid.
The goal is to build as large a group as possible of truly loyal consumers, by sustaining a suitable relationship and increasing their loyalty to the brand.

The Five M’s of Advertising

Advertising is a form of communication where organizations’ brands or products are marketed to an audience. It is a paid form of communication; the message is disseminated to an audience through a message channel. These channels could include the World Wide Web, televisions, radios and print based advertisements. Advertising objectives have a flow structure through which the ad is disseminated to a particular group of individuals. The flow structure consists of 5 Ms, popularly known as the 5 Ms of Advertising. The five Ms are mission, money, message, media and measurement; these elements combined create advertisements.

Mission

Every action an organization or brand does have an underlying mission, this is the main idea or selling proposition that they want to propagate to the target audience. These missions have sub goals and objectives depending on the kind of advertisement they are making. A sales goal is usually common for an advertisement.

Hamilton’s adverting is kind of indirect marketing. This brand doesn’t have much TVC in the media channels or websites. This advertising is usually done through actors on the movies or sponsoring air shows in different places or giving awards to the creative people who have contribution in making movies. So Hamilton’s advertising mission consist of targeting and influencing people who are ambitious in their life. Their advertisement tells people to be open and hopeful about life at the same time chasing dreams of their own.

Money

Advertisement is a paid form of communication, depending on the product life cycle (PLC) the brand or organization needs to set a budget. Factors such as market share and consumer base play a significant role in budget allocation for an advertisement. Frequency of the advertisement depends on the money allotted to the ad campaign.

Hamilton allocates a big portion of their budget for the purpose of promoting their product. As Hamilton has big passion for flying this brand has established relation with Nicolas Ivanoff a professional aerobatic pilot as an ambassador of the brand. Every year Hamilton gives away big portion of money as awards to creative people for their contribution in making movies. Also the brand has its own team in EAA Air venture which is known as world’s greatest aviation celebration. This team has its own planes which perform tricks up in the sky. So maintaining this team is a huge money consuming work. But all the things are done only to serve one purpose that is advertising.

Message

Message generation is an integral stage; the ad agency needs to come up with a tagline and a campaign based on the budget allocated for the campaign. Advertisers are always seeking “The Big Idea” that connect with consumers rationally and emotionally, sharply distinguishes the brand from competitors and is broad and flexible enough to translate to different media, markets and time periods.

Hamilton’s belief that is sky is the limit is spread through all of its advertising activities. People by naturally love to fly. They always wanted to conquer the sky by any means. Hamilton tried to influence this passion of flying by naming their product with aviation terms. The new movie, Interstellar, where a team of explorers travel through a wormhole in an attempt to ensure humanity's survival, is the recent advertising move for Hamilton. Through this brand association with the blockbuster movie, Hamilton once again tried to send one passionate message that future is now and reach for it.

Media

Media or the mode of communication needs to be chosen carefully, the reach and the impact needs to be understood before choosing a medium of communication.

Hamilton has an aviation heritage dating back to 1919. That was the year in which a Hamilton aeronautical watch accompanied the very first American airmail postal service between Washington and New York. From the starting of the company Hamilton have been using plane as its media. But at the same time this brand was using the power of movie industry to influence people. Hamilton has been penetrating the market successfully using the personality of movie stars. Movie stars also became an important medium promoting Hamilton’s watches.

Measurement

The last step or factor is that of measurement, agencies study the impact of the advertisement through market research and also by analyzing sales figures of the product. This helps in understanding the return of investment of an advertisement.

Hamilton collects feedback from customers at a regular interval. From the feedbacks the company sales personnel try find out the lacking. Marketing manages try to figure out the overall market condition after a major campaign has been launched. Like Hamilton Ventura model was an iconic model for this brand in its history but since its association with the movie Man In Black III, Ventura XII has seen a rise in sell of this particular model.

Marketing Budget & Expenditure

Marketing Budget Plan
	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Total
Market Research
Primary research	30	24	16	10	45	34	12	44	21	13	34	56	$339
Secondary research	10	8	5	8	5	3	6	7	9	5	4	3	73
Library management													0
Market Research Total	$40	$32	$21	$18	$50	$37	$18	$51	$30	$18	$38	$59	$412
Marketing Communications
Branding	12	32	12	33	33	12	44	53	23	23	34	43	$354
Advertising	56	45	64	34	56	67	55	56	43	67	85	45	673
Web sites	56	43	23	23	45	66	12	23	34	53	23	24	425
Direct marketing	34	56	23	56	65	23	54	23	31	42	12	32	451
Internet marketing	34	56	35	34	35	34	24	53	24	34	34	53	450
Collateral	24	56	24	56	43	45	35	45	34	35	45	56	498
Press relations	35	56	45	34	24	34	45	56	34	32	24	54	473
Public relations	24	45	65	34	54	45	34	23	24	35	25	65	473
Analyst relations	9	12	10	6	34	23	12	24	42	54	46	35	307
Events						3							3
Marketing Communications Total	$284	$401	$301	$310	$389	$352	$315	$356	$289	$375	$328	$407	$4,107
Channels
Channel communications and training								10		10			$20
Channel promotions and incentives	10	10	10	10	10	10	10		10		10	10	100
Channel commissions/bonuses													0
Channels Total	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$120
Customer Acquisition & Retention (CAR)
Lead generation		10	10	10	10			10		10		10	$70
Customer loyalty	10					10	10		10		10		50
CAR Total	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$120
Other
Postage						10	10			10	10		$40
Telephone		10	10	10				10				10	50
Travel	10								10				20
Computers and office equipment					10								10
Other Total	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$10	$120
Total Marketing Budget	$354	$463	$352	$358	$469	$419	$363	$437	$349	$423	$396	$496	$4,879

Pricing Strategies

Companies do their pricing in a variety of ways. In small companies, prices are often set by the boss. In large companies, pricing is handled by division and product-line managers. In large companies, top management sets general pricing objectives, policies, and often approves the prices proposed by lower levels of management. In industries where pricing is a key factor, companies will often establish a pricing department to set or assist others in determining appropriate prices. Many companies do not handle pricing well. Others use price as a key strategic tool. There are customized prices and offerings based on segment value and costs. Effectively designing and implementing pricing strategies requires a thorough understanding of consumer pricing psychology and a systematic approach to setting, adapting, and changing prices.

Pricing Objective of Hamilton Watch

Hamilton follows the objective of Product Quality Leadership. It aims to be the product quality leader in the market. Since the beginning Hamilton strives to be “affordable luxuries”-products characterized by high level of perceived quality, taste, and status with a price just high enough not to be out of consumers reach. So the brand always charges a premium price from their customers.

Price Sensitivity

Hamilton knows that their users are less sensitive to price because of couple of factors. like,

·         Hamilton’s watches are different from other branded watches. This brand has successfully linked up American Spirit with the Swiss crafting precision. So their design and technology is unbeatable.

·         It’s really hard to compare the quality of the Hamilton’s watch with other high end brand. Because all the high end brands have high quality materials. And getting all high end brands together is kind of an impossible job.

·         Users of Hamilton watches are mainly high income people; as a result price is not a matter of negotiation for those customers.

·         Hamilton has the element of aristocracy which leads its users to feel proud of their watches. This prestige issue results in less price sensitivity of the users towards Hamilton.

Perceived Value Pricing

Perceived value is made up of a host of inputs, such as the buyer’s image of the product performance, the channel deliverables, the warranty quality, customer support, and softer attributes such as the supplier’s reputation, trustworthiness, an esteem. Companies must deliver the value promised by their value proposition, and the customer must perceive this value. Firms use the other marketing program elements, such as advertising, sales force, and the Internet, to communicate and enhance perceived value in buyers’ minds.

Hamilton watches follow this strategy of setting up perceived value pricing. They set their prices at a level higher than some of its competitors. Because Hamilton’s products ensure superior durability, superior reliability, superior service, longer warranty on parts, and last but not least superior value.

Recommendation

•         Manufacturing cost is high as the brand procures and assembles from Switzerland so they should use least cost country for assembly.  

•         Hamilton watch target only the aviators, navy officers and field officers as their targeted customer group. So they should make product for civilians also.

•         Hamilton should continue performance and work and involve vigorously in R & D about marketing environment adjusting marketing strategy timely, become creative and innovative brand in global market.

•         Hamilton watch can establish a strong image in the mind of customer. As people carry watch.

Conclusion

Hamilton is established as one of the leading brands in the world in the price range from 500 to 3000 Dollars, with a proven reputation for creating elegant, unique and reliable watches.  The watches combine a strong American spirit with the unrivalled precision of the latest Swiss movements and technology. Without the help of the strong marketing effort this achievement would have been impossible. There are some scopes where Hamilton could do better if the company wants to focus on expanding its business. Other than that the existing marketing strategy is enough for this modern era. But still there is no end in modern world; it’s a continuous reality where everybody who wants to survive must act fast with mind blowing creative ideas. Hamilton can always pursue a greater deal of market through targeting the broader market.

Source: Boundless. “TQM, Six Sigma and Lean.”Boundless Business. Boundless, 02 Jul. 2014. Retrieved 18 Dec. 2014 from https://www.boundless.com/business/textbooks/boundless-business-textbook/operations-management-10/quality-management-70/tqm-six-sigma-and-lean-331-3172/

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