Team : 13

Format : Write Up

Name : Mustahid Ali &

Sachin Singh

CASE SYNOPSIS

Xylys was a premium Swiss made watch brand from the house of titan in India. Priced between

INR 10000 and INR 33000, the Xylys range of watches was available in three collection-

contemporary, classic and sport- and offered over 60 distinctive models. Xylys are available

at select world of titan showroom, key multi brands outlets and at exclusive flagship

boutiques in selected cities.

Xylys was a premium watch brand launched by titan a few year ago. Brand was aimed creating

unique perception among consumer.

Xylys, Titan's latest watch collection. Exuding style, attitude and power, the watch is all set to

storm the premium watch segment in India so far dominated by well-known European

brands. Titan aims to bring about a redefinition of sorts in the premium watch segment with

Xylys. It is targeted at new generation achievers who go beyond the obvious, who know who

they are and set their own standards and live by their own values. It is a style statement for

those who stand apart from the crowd.

The liberalization of markets, the growth of disposable income, the impact of the Western

way of life, and the need for a new generation to identify for themselves some of the reasons

for the growth of this category of luxury watches in India. In the market of luxury watches is

estimated at 3% of the retail hours, and grew by almost 20% per year, which is more than

twice the rate of growth of the market. Heritage, glamor and technology combination of

factors that have been associated with the luxury brand watches universally. While had

several brands of watches are sold in India at different price points, the task of leading Indian

company Titan Industries, which has made great strides in the watch market in the last two

decades successfully implement brand luxury watches. Manoj Chakravarti, Senior Advisor,

Titan Industries reflected on his 28 years in the watch industry, both in India and abroad, as

well as under Xylys, premium brand watches Titan, and its foray into the Indian market. He

formulated certain aspects of the marketing strategy in the past to deal with different types

of problems. Xylys a premium brand of watches Titan launched a few years ago, the brand

was aimed at creating a unique perception among consumers. There were a few interesting

possibilities for Chakravarti to consider. Will the traditional approach of positioning is

enough? This was necessary to get some idea of the unique aspect of self-awareness of

consumers? How were the aspects related to the uniqueness of other well-known brands?

How important was the “Swiss” label? Unless buyers and potential buyers of premium

watches carry any specific stereotypical images of such watches? As self-concept of matter

consumers of luxury brands watches? The case delves into behavioural concepts that are

important in terms of the perception of the brand luxury brands.

PROBLEM

DEFINATION/SUBPROBLEMS

With liberalization the competition will be at its edge, it’s become very challenging field,

though with economy growth there was an improvement in watch industry but there was

certain problems which were challenging Mr Manoj Chakravarti, which mention in the case

study and they are:

Main problems:

Would conventional or traditional approach of positioning is enough?

Was necessary to get some idea of the unique aspect of self-awareness of consumers?

How were the aspects related to the uniqueness of other well-known brands?

How important was the “Swiss” label?

Unless buyers and potential buyers of premium watches carry any specific

stereotypical images of such watches?

As self-concept of matter consumers of luxury brands watches?

The case delves into behavioural concepts that are important in terms of the

perception of the brand luxury brands.

SITUATIONAL ANALYSIS:

The liberalization of markets, the growth of disposable income, the impact of the Western

way of life, and the need for a new generation to identify for themselves some of the reasons

for the growth of this category of luxury watches in India. In the market of luxury watches is

estimated at 3% of the retail hours, and grew by almost 20% per year, which is more than

twice the rate of growth of the market.

After 1992 liberalization, Timex was the first off-shore brand to step into the Indian market.

Timex was followed by Casio, Rolex, Citizen, TAG Heuer, Tissot, Omega, Swatch etc.

In Indian market the Avg Growth Rate of watches was 8% per annum for five years, Despite

declining global trends, the value and volume figures for 2009 stood at 40.6 Billion units and

INR 54.6 billion, The rate of growth was 8.5% in value and 15.4% in volume, Premium Watch

Segment Growth Rate: 20% p.a.

Segmentation of watch market

The market for luxuries brand was estimated to be 3% of watch retail and was growing at

almost 20% annual rate which was more than twice the growth rate of entire market.

20.60%

5.90%

4.30%

69.20%

watch market

Titan Swatch Timex Other

35%

60%

5%

Column1

Casual Formal Sports

Luxury watches were bought for their symbolic and experiential benefits as opposed to their

functional ones, it was considered as sophisticated brand.

The positioning diagram for luxury watches need to be based on factors such as status,

prestige and ego gratification. XYLYS identity reflected the Attitude, lifestyle, and personality

of new generation consumer. After the launch in 2006 XYLYS grew at compound annual rate

of 54%.

Analysis of Indian Consumer Behaviour & Premium watch purchase decision

To analyse the case from consumer behaviour point of view on premium watch purchase

decision, the

Case study refers Segmentation by Value:

• It is found that in a product people look for nature of appeal & associations like Glamour,

Fashion,

Sports and Fun.

• They have four philosophies namely dress, classical, fashion & sport

• Consumer behaviours are governed by psychological needs to position themselves, Value

for

Money, Self-perception, personality and style.

• Consumers look for Brands that offered benefits akin to:

- Functional benefits like the real need of the product

- Symbolic benefits like status, self-expression, sophistication, aesthetic appeal, prestige,

Enhancement of self-image, ego gratification, and sense of belonging

- Experiential benefits like sensory pleasure, variety or cognitive simulation.

• Their preferences are also influenced by their Lifecycle stages whether they are a School

student,

College student, young working executive & experienced executive.

The authors feel that the main consumer for a Premium Luxury watch would be:

• A new generation executive who is set to move toward prime of his career

• Who after a few years of hard-work is ready to announce his arrival in the world of success?

• Who wants to display his status by associating himself with value brands & is very brand

conscious

• Generally CEOs, senior professionals, entrepreneurs, people belonging to higher socio-

economic

Status

• These individuals constantly seek new and un-conventional experiences.

• They are in their thirties and forties.

• Such consumers will purchase only products that will provide more Symbolic & experiential

Benefits rather than just functional benefits.

The above points very clearly provide insights on consumer behaviour point of view on

premium watch Purchase decision.

(All data is concluded on the basis of Exhibit 1, 2, 3, 4, 5 &6 )

RECOMMENDATIONS:

They should come up with mid premium segment as a percentage of buyers between Rs 3000-

5000 is much more as compared to the most premium segment.

1. They should do the positioning based on the factors like status, prestige and ego

gratification.

2. They should expand their brand through other countries too.

3. They should stick with those people who are obsessed for their lifestyle, personality.

CONCLUSIONS:

The opening of the Indian market and the arrival of premium Swiss brands has certainly led

to Indian consumers being exposed to global brands, styles and various price levels. To the

Indian consumers, the high price of Swiss watches has helped them to realize the value of

Indian brands, particularly of Titan, which offers equivalent quality, but at lower prices and

with better distribution and service. Titan has shown its differentiation, and customer centric

approach which helped them to get the market.