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Letter of Transmittal
December 27, 2014
Prof. Dr. Md. Mahmodul Hasan
School of Business
MBA Program
North South University
Sub: Submission of Term Paper on Hamilton Watch Company

Dear Sir,
We are submitting our report titled, Term Paper on Hamilton Watch Company. In
accordance with the requirements of the program, we, the team Kochhoper Deem has
completed our Term Paper on Hamilton Watch Company. During our tenor, we were engaged
in
We believe that preparing this report has enhanced our understanding of the marketing
strategies of a world class brand and how they are influenced, and maintained through key
marketing tools.
Thank you for the opportunity to work on this paper.

Sincerely yours,

Md. Hasan Sajib

141 1708 060

----------------------

Shayam Arafat

133 0718 060

----------------------

Subeh us Sama

141 1663 060

---------------------

Tauhid Rahman

133 0535 060

----------------------

Acknowledgement

Page | 2

At the very beginning, we would like to express our deepest gratitude to

Almighty Allah for giving us the opportunity with strength and patience to
carry on this work. In conducting this study, we have received generous
help from many quarters, which we like to mention with gratitude and
great pleasure.
First and foremost, we are highly grateful to our honorable instructor,
Prof. Dr. Md. Mahmodul Hasan, Professor, School of Business, MBA
Program, North South University. His suggestion and direction have greatly
inspired us to prepare this report successfully.
Our gratitude goes to the family and friends without whom it was
impossible to be here wherever we are.
Finally, we extend our thanks to all of our well wishers for their help
during this work.

Executive Summary

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Hamilton has been a true pioneer since its foundation in 1892 in Lancaster, Pennsylvania,
USA. Very early in its history Hamilton established itself as the ultimate provider of accurate
timekeeping. Its first series of pocket watches became known as the Watch of Railroad
Accuracy. Later the company gained the prestigious rank of supplier to the US Armed
Forces. In 1957 the worlds first electric watch appeared and it was a Hamilton: the Ventura!
Elvis Presley was one of the first fans who chose this watch. Since over fifty years the
Ventura has been a best seller. The Hamilton Pulsar, the worlds first LED digital watch
started measuring time in 1970. In 1974 Hamilton became a member of the Swatch Group
(previously SSIH), the largest watch manufacturer and distributor in the world. It was only in
2003 that Hamilton transferred its headquarters from the United States to Switzerland. Since
then all Hamilton watches are manufactured in Switzerland and enjoy the Swiss Made Label.
The achievements of Hamilton are purely results of effective marketing strategies. This brand
has successfully orchestrated dynamic tools of marketing and strongly survived in the market
for a long period of time. To be precise Hamiltons branding strategy is incomparable to any
other brand. It has occupied the minds of its customer base so effectively that a sense of pride
always works on their mind. This single element forces its customer to be loyal to the brand.
Pricing strategy is also another most effective tactics behind Hamiltons success. This brand
has the image of superiority at the same time urge to conquer the unknown being passionate
in life. This image and message was lucratively delivered to the audience with the help of
major marketing tools.

Table of Contents
1.0 Introduction...............................................................................................................
2.0. Definition of Marketing Management (Theory 2000 2011) as per Hamilton
Watch Marketing Management...................................................................................

Page | 4
2.1. Definition of Marketing Management (Theory 2012 2016 ) as per
Hamilton Watch Marketing Management....................................................................
3.0. Hamilton Watch Company...................................................................................
3.1. Vision...................................................................................................................
3.2. Mission................................................................................................................
3.3. Business Plan.......................................................................................................
3.4. Corporate Strategy..............................................................................................
4.0. SWOT...................................................................................................................
5.0. PESTEL Analysis...................................................................................................
6.0. Porters 5 Forces of Hamilton Watch....................................................................
7.0. Marketing Strategy of HW.................................................................................
8.0. Core Marketing Concepts adopted by HW.........................................................
9.0. Marketing Mix....................................................................................................
10.0. Value Chain Model...........................................................................................
11.0. TQM-Loyalty-Quality & Control........................................................................
12.0. Brand: Hamilton..............................................................................................
12.1. Brand Elements Choosing Criteria...................................................................
12.2. Brand Dynamic Pyramid..................................................................................
13.0. The Five Ms of Advertising..............................................................................
14.0. Mass Communication:.....................................................................................
15.0. Marketing Budget & Expenditure.....................................................................
16.0. Pricing Strategies............................................................................................
17.0. Recommendation............................................................................................
18.0. Conclusion.......................................................................................................
References................................................................................................................

1.0 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.

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2.0. 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.

2.1. 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.

3.0. Hamilton Watch Company

3.1. 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.

3.2. Mission
Hamilton watchs current mission is to play pioneering role in the world of aviation, cinema,
electric and digital technology shaping the collection combining the brands American spirit
with modern Swiss technology.

3.3. Business Plan

From the beginning Hamiltons plan was to capture the mind of innovative and ambitious
people. This brand has been targeting creative people with high personality. Hamilton doesnt
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.

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3.4. Corporate Strategy

Hamiltons corporate strategy reflects the brands 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.

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4.0. SWOT

Weakness
Manufacturing cost is high
as the brand procures and
assembles from Switzerland
Hamilton watch targeted
only the aviators, navy
officers and field officers as
their targeted customer
group.

The Hamilton Brand name

owned by The Swatch Group
Ltd
The variety of design and
colors.
It uses efective marketing
strategy by satisfying its
target market well.
A wide range of products with
diferent designs across all
price ranges.

SWOT
Analy
Opportunitiessis
Strength

Intense competition between

diferent companies (Citizen,
Casio, Titan etc)
For its brand value increase
trade barriers.

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.

Threats
5.0. PESTEL Analysis
ECONOMICAL

Page | 8

POLITICAL
Hamiltons 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
Switzerland1. Apart from
this, there is also a
downside to operating in
Switzerland.

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

TECNOLOGICAL

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

In regard to the technological

aspect of Hamiltons 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
todays world, with the widespread use of computers, this
might also be an technological
development Hamilton has to

Page | 9

classic watch as for example

from the Full Blooded
collection.

consider.

ECOLOGICAL/ENVIRONMENTA LEGAL/ REGULATORY

L
Hamilton watch is well known
Hamilton watch is always
to all customers. So customers
suitable for all types of
expectation getting increased
weather and climate only
day by day
because of their verities
design on basis of weather.
Manufacturing cost is high of
Hamilton watch as employees
are more expensive.

developed by HW are dynamic and interactive. They are partially planned and partially
marketing plans designed to fill market needs and reach marketing objectives. The strategies
In Hamilton Watch, the marketing strategies serve as the fundamental underpinning of

7.1. Developing a marketing strategy of HW

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

7.0. Marketing Strategy of HW

RIVALRY
Threat of New
Entrants

Buyer Power

Thehautehorlogeriesegment has
very strong barriers to

entry
Its products are simple,
accessible, playful, and

colorful the exact

opposite ofhautehorlogeriewatches
Manufacturing costs,

Brand heritage
Distribution selection

Degree of Rivalry

Confronted to the
multitude of brands
competing and the
various segments
Number of
watchmakers is very
important
Price we can find
watches for 30 as well
as spending thousands
of euros
Quality made in
Swiss made
Style colorful watch
vs. Leather wristband
and silver & golden
watch

Rolex plays with the

elegant market
Titan has captured the
Asian market
Omega plays with the
market challenger and
follower
Diesel is the youth and
sport brand

Threat of
Substitutes

Supplier Power

use a watch shifted

drastically these years
the mobile phones are
changing the rules of
the industry
utilitarian aspect of a
watch a decreased a lot
Substitute are
relatively high

Challenged by all the

electronic devices
(mobile phones, mp3
players, Kindles/iPads,
laptops, etc)

Between the mass

market brands and
premium ones
Watch components are
usually made in a low
labor cost country, with
a low to medium
quality, and then are
assembled in
Switzerland which
Swatch does.
Both manufacturing the
components and
assembling them are
made in swiss by the
company which
Hamilton does
Diminishing their
bargaining power over
watch brands.

6.0. Porters 5 Forces of Hamilton Watch

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P a g e | 11

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.

7.2. 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.

P a g e | 12

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 its 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. The Hamilton Watch Company
follows market penetration strategy while they open outlet in their currently operated

P a g e | 13

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. 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. 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 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 doesnt 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.

8.0. Core Marketing Concepts adopted by HW

8.1. Target Markets, Positioning, and Segmentation

P a g e | 14

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 they decide on 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.

8.2. Offerings and Brands

The Hamilton Watch doesnt 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.
8.3. Marketing Channels
The Hamilton Watch Company doesnt 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

P a g e | 15

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.
8.4. Competition
The watch making industry is very saturated. Its 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:
Local Competitors: In USA, the top competitors of HW are DEVON. KOBOLD,
LUM-TEC, Weiss Watch Company, RGM, Shinola, Keaton Myrick
International Competitors:
Patek Phillip & Co, Rolex,

Omega

SA,

AudemarsPiguet, Jaeger LeCoultre, TAG Heuer, Tissot, Seiko, Breguet, Cartier,

Loginess, Hublot, Casio etc

9.0. Marketing Mix

9.1. 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.

P a g e | 16

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 worlds first electrical, battery powered watch.
Place
Hamiltons 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

P a g e | 17

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
Promotion

$695.00

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 movies 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.
Hamiltons long history with Hollywood includes watch appearances in more than 400 films,
but Men in Black 3 represent a new milestone for Hamilton.
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, OCEANS ELEVEN,
PREDATORS, ABDUCTION, science fiction movies like MEN IN BLACK,
INDEPENDENCE DAY, 2001:THE SPACE ODYSSEY, to comedy classics like KILLERS,
GET SMART, YOUVE 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

P a g e | 18

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)
The Aviator (2004)
A Beautiful Mind (2001)
Autumn in New York (2000)
Bad Company (2002)
Bicentennial Man (1999)
Big Fish (2004)
Blood Diamond (2006)
Blue Hawaii (1961)
Buried (2010)
Chain Reaction (1996)
Charlie's Angels (2002)

Hilary Swank
Alec Baldwin
Russell Crowe
Richard Gere
Chris Rock
Robin Williams
Ewan McGregor
Jennifer Connelly
Elvis Presley
Ryan Reynolds
Keanu Reeves
John Forsythe
Tim Curry
Meg Ryan
Sylvester Stallone
Ben Affleck
Toby Jones
Jessica Alba
Ioan Gruffud

Khaki Field Automatic

Dodson
Wilshire
Ardmore
Khaki Chrono
Everest
Khaki Field Quartz
Khaki King
Ventura
Khaki Field Officer
Khaki King
Linwood Viewmatic
Lloyd Chrono Auto
Boulton
Khaki
Linwood Viewmatic
Ardmore
Lloyd Chrono, white dial, metal
bracelet
Jazzmaster Auto Chrono

Steve Carrell
Ray Romano
Kevin James
Michelle Pfeiffer
Marco Rima
Regula Grauwiler
Antonio Banderas
Tom Adams
Eli Danker
Will Smith
Jeff Goldblum
Adam Brody
Tommy Lee Jones
Paul Walker
Mark Wahlberg
Jean-Pierre Bacri
Ashton Kutcher
Danny Glover
Chris Rock
Eddy Murphy
Bruce Willis
Will Smith, Tommy Lee Jones
Tommy Lee Jones
Will Smith
Eddie Murphy
Janet Jackson
George Clooney
Michelle Pfeiffer
Steve Martin
Josh Hartnett / Alec Baldwin
Steve Martin
Adrian Brody

Multi touch
Everest
Khaki Action
Lady Hamilton
Jazzmaster Chrono Auto
Khaki X-Wind
Khaki GMT and Trent
Khaki Aviation QNE
Jazzmaster Auto Chrono
Khaki Aviation Twilight
Carlisle
Blaine
Khaki Field Mechanical
Khaki Navy GMT
Khaki Field Auto Chrono 38
Linwood Viewmatic
Jazzmaster Open Secret
Ardmore
Linwood Viewmatic
Pocket Watch
Khaki ETO
Ventura
Digital Pulsar
Ventura Chrono
Khaki III
Khaki III Medium
Linwood Viewmatic
Benton
Classic Line
Khaki
Boulton
Khaki BeLOWZERO

City of Angels (1998)

Cliffhanger (1993)
Daredevil (2003)
Every Word is true (2005)
Fantastic Four (2005)
Fantastic Four and the rise of the
silver surfer (2007)
Get Smart (2008)
Grilled (2005)
Hairspray (2007)
Handyman (2006)
Homeland Security (2007)

I am Legend (2007)
Independance Day (1996)
In the Land of Women (2006)
In The Valley of Elah (2007)
Into the Blue (2005)
Italian Job (2003)
Kennedy et moi (1999)
Kiss & Kill (2010)
Lethal Weapon 4 (1998)
Life (1999)
Die Hard 4.0 (2007)
Men in Black (1997)
Men in Black II (2002)
Nutty Professor II (2000)
Ocean's Eleven (2001)
One Fine Day (1996)
Out of Towners (1999)
Pearl Harbor (2001)
Pink Panther (2006)
Predators (2010)

P a g e | 19
2001: Space Odyssey (1968)
Spartan (2004)
Spiderman II (2004)
Superman Returns (2006)

SWAT (2003)
Sweet November (2001)
Synergy (2004)
The 13th Floor (1999)
The Edge (1997)
The Frogmen (1951)
The General's Daughter (1999)
The Good German (2007)
The Majestic (2001)
The Out-of-Towners (1999)
The Producers (2005)
The Talented Mr. Ripley (1999)
Three to Tango (1999)
Tin Cup (1996)
U.S. Marshalls (1998)
Vanilla Sky (2001)
View from the Top (2003)

Where the Truth Lies (2005)

Windtalkers (2002)
You've Got Mail (1998)

All Astronauts Characters

Gene Hackmann/ Val Kilmer
Alfred Molina
James Marsden
Frank Langella
Brandon Routh
Sam Huntington
Samuel L. Jackson
Keanu Reeves
Marg Helgenberger
Armin Mueller-Stahl
Anthony Hopkins
Robert Wagner
John Travolta
George Clooney
Hal Holbrook
Steve Martin
Nathan Lane
Matt Damon
Matthew Perry
Renne Russo
Tommy Lee Jones
Jason Lee
Kurt Russell
Gwyneth Paltrow
Rob Lowe
Mike Myers
Kevin Bacon
Colin Firth/ Alison Lohmann
Nicolas Cage
Tom Hanks

Custom Made
Khaki Field Mechanical 38
Llyod Chrono White /Metal
Khaki Navy GMT
Boulton
Linwood
Khaki King
Khaki Multi-Touch
Linwood Viewmatic
Benton
Contour
Pocket Watch (Broadway Ltd.
w/cover)
Frogman
Khaki Chrono 39mm
Ardmore
Wilshire
Ardmore
Pocket watch
Ardmore
Khaki
Khaki Sub Medium
Khaki King (fake blood on bracelet)
Lloyd Chrono Sil /Bl
Linwood Viewmatic Yellow
American Traveler
Llyod Chrono Yellow
Khaki Chrono
Ventura
Linwood
Khaki
Classic Line

Processes
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 buyers
desired location. Hamilton also has showrooms in major shopping malls all around the world
where people can purchase them by themselves.
Physical Evidence
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.

P a g e | 20

9.2. 4Cs of Marketing Mix

Clients/Customers
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
Hamiltons 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

P a g e | 21

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
Hamilton is a niche marketer they dont 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 Hamiltons watch making. But that doesnt 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
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.

P a g e | 22

10.0. Value Chain Model

Firm Infrastructure:
Marketing Policy

Business

Strategy,

Market

Strategy,

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:
Pricing
Transporta

tion
Fuel
Delivery
Time
Production
Material

Operations:
Productio

n of
Hamilton
Watch
Storage
Facilities
Maintena
nce

Outbound Sales and

Logistics: Marketing:
Vendin

Promoti

g
Machi
nes
Whole
Sellers
Retaile
rs

ons
Advertisi
ng
Events

Service:
Online

Feedba
cks
FAQs
Orderi
ng
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:
Inbound Logistics: the receiving and warehousing of raw materials and their

distribution to manufacturing as they are required.

Operations: the processes of transforming inputs into finished products and services.
Outbound Logistics: the warehousing and distribution of finished goods.
Marketing & Sales: the identification of customer needs and the generation of sales.
Service: the support of customers after the products and services are sold to them.

These primary activities are supported by:

P a g e | 23

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

etc.
Human resource management: employee recruiting, hiring, training, development, and
compensation.
Technology development: technologies to support value-creating activities.
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.

11.0. TQM-Loyalty-Quality & Control

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

P a g e | 24

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.

12.0. 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.
Lets 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.

P a g e | 25

5. Slogan: AMERICAN SPIRIT. SWISS PRECISION

6. Jingle: No official jingle
7. Packaging: Like other watch companies HAMILTON makes innovative and unique watch
boxes.

12.1. 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 doesnt 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.

P a g e | 26

12.2. 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.

P a g e | 27

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.

13.0. The Five Ms of Advertising

Mission
Hamiltons adverting is kind of indirect marketing. This brand doesnt 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 Hamiltons 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
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

P a g e | 28

worlds 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
Hamiltons 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
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
Hamiltons watches.
Measurement
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.

P a g e | 29

14.0. Mass Communication:

Hamilton watch uses some great technique of mass communication under being
conglomerate of swatch group. Like advertising, Sales promotion, Event, Public relation and
CSR responsibility.
Advertising Budget:
The greatest surge in spending last year came from a surprising place: the Swatch brand. In
2011 Swatch spent less than half a million ($454,000). In 2012, its ad buy grew by nearly
1,000 percent to $4.98 million, placing it at #17 in the ranking.
Sales Promotion and Budget:
Hamilton watch uses 5 to 7 percent of their sales for spending as their sales promotion
budget.
Event Budget and Expenditure:
In this sector of event Hamilton watch is one of the best companies of the world. They have
added themselves behind the camera award, air race championship, different popular movies,
free fight world masters etc. So they spend a great deal of money in this sector.
Public Relation/ Government Lobbying:
Hamilton watch is the official sponsor of Switch National Aerobatics Champion, Official
partner of Roma international air show etc.
CSR Responsibility:
The Hamilton History is a 120 years long and eventful travel from Lancaster in the US to
Biel the world capital of watch making in Switzerland. Today highlights from Hamilton
pioneering role in the worlds of aviation, cinema, electric and digital technology shape the
collection.

P a g e | 30

15.0. Marketing Budget & Expenditure

Marketing Budget Plan

Jan

Feb

Ma
r

Apr

Ma
y

Jun

Jul

Au
g

Se
p

Oct

No
v

De
c

Total

Primary research

30

24

16

10

45

34

12

44

21

13

34

56

$339

Secondary research

10

73

Market Research

Library management
Market Research Total

0
$40

$32

$21

$18

$50

$37

$18

$51

$30

$18

$38

$59

$412

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

12

10

34

23

12

24

42

54

46

35

307

$38
9

3
$35
2

$31
5

$35
6

$28
9

$37
5

$32
8

$40
7

3
$4,10
7

Marketing Communications

Events
Marketing Communications
Total

$28
4

$40
1

$30
1

$31
0

Channels
Channel communications and
training
Channel promotions and
incentives
Channel
commissions/bonuses
Channels Total

10
10

10

10

10

10

10

10

$10

$10

$10

$10

$10

$10

$10

10

10

10

10
10

10

$10

$10

10

10

10
10

$20
10

10

100

$10

$10

$120

10

$70

$10

$120

0
$10

$10

$10

Customer Acquisition &

Retention (CAR)
Lead generation
Customer loyalty

10
CAR Total

$10

$10

$10

$10

10

10

10

$10

10

10
10

$10

$10

10
$10

$10

10

10

50

Other
Postage
Telephone
Travel
Computers and office
equipment
Other Total
Total Marketing Budget

10

10

$40
10

10

20

10
$10
$35
4

$10
$46
3

$10
$35
2

$10
$35
8

$10
$46
9

50

10
$10
$41
9

$10
$36
3

$10
$43
7

$10
$34
9

$10
$42
3

$10
$39
6

$10
$49
6

$120
$4,87
9

P a g e | 31

16.0. 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.
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 luxuriesproducts 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,

Hamiltons 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.

Its really hard to compare the quality of the Hamiltons 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

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 Hamiltons products ensure
superior durability, superior reliability, superior service, longer warranty on parts, and last but
not least superior value.

P a g e | 32

17.0. 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.

18.0. 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;
its 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.

References
1

Marketing Management by Philip Kotler, Keller, Koshy, 14e, 2014.

"Brief History: Hamilton Watch Company".

P a g e | 33

"Hamilton Watch History". Hamiltonwatch.info

USDOJ FOIA Division Manual

Richard H. Arbib: 1917-1995 Visionary American Designer. Newburyport Press.

"Astra-Gnome: $?". Popular Science

"History Of The Hamilton Electric". Hamiltonwristwatch.com.

"Richard H. Arbib, 77, Designer Of Array of Consumer Products". The New York
Times.

Haines, Reyne (2010). Warman's watches field guide. Krause Publications.

10 "Hamilton Ricoh Watch Company". Electric-watches.co.uk.

11 "Buren Watch". Finertimes.com.
12 "Polerouter - movements". Polerouter.de.]
13 "Hamilton History Timeline".
14 "Smithsonian Inventors Bergey"
15 TQM, Six Sigma and Lean.Boundless Business. Boundless,
www.boundless.com/business/textbooks/boundless-business-textbook/operationsmanagement-10/quality-management-70/tqm-six-sigma-and-lean-331-3172/