XYLYS: Exploring Consumer Perception about Premium

Watches in the Indian Context

Written Analysis of Case

Submitted by
Bushra Javed Butt
Hira Tanveer
Mahnoor Malik
M. Sharjeel Shahid
Tehmas Zaki
Uzair Nasir

Submitted To: Ms. Tania Hasan

27th October, 2014

Introduction
Xylys was a premium Swiss made watch brand from the house of titan in India. Manoj
Chakravarti, Senior Advisor, Titan Industries reflected on his 28 years in the watch industry, both
in India and abroad. Xylys priced range between INR 10000 and INR 33000. However, the
Xylys range of watches was available in three collection i-e contemporary, classic and sport. It
also offered over 60 distinguishing 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 years ago. Brand was aimed at creating
unique perception among consumer. Xylys targeted the lower spectrum of the luxury watch
segment. 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 varieties 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. Universally, luxury brand watches have numerous factors which
associated with heritage, glamour and technology. 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. Xylys 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.
Qualitative Facts

Xylys was a premium watch brand launched by Titan a few years ago.

The brand was aimed at creating a unique perception among consumers.

Consumers wanted to buy not only durable categories that were useful to them and
satisfied functional aspects, but also categories and brands that reflected their personality.

The Indian watch industry had its origins in the 1960s, with HMTs Janata being
launched in 1962.

Before HMT, watches were sourced exclusively from imports, and were affordable by
only a small number of consumers.

HMT was the first major watch manufacturer in India, until Titan Industries Limited was
formed in 1984 and started retailing watches in 1987.

In 1992, liberalization opened up the Indian market to foreign players, and Timex was the
first on the scene.

It was soon followed by Casio, Rolex, Citizen, Tissot, Omega, Rado, and TAG Heuer.

Global brands set up subsidiaries in India with apparel brands such as Esprit, Tommy
Hilfiger, Benetton, and Levis.

The Tata group introduced the quartz watch in the 1980s under the Titan brand, and
differentiated themselves on the basis of accuracy, style, choice, presentation, and
vigorous push-marketing.

Timex, in collaboration with Titan, launched its range in India in the nineties.

Timex was to keep the low-price plastic segment, while Titan would manage the highprice metal segment.

Later, Timex became an independent brand and set up its own distribution channels, and
emerged as a brand associated with the sports and casual wear segment.

In early twentieth century, many multinational players entered the Indian market.

Competition arose from the increasing foray of multinational players into the lucrative
luxury segment.

Another challenge was to tackle the spurious imports sold by the unorganized sector.

During the eighties and nineties owing to significant lifestyle changes, watches as fashion
accessories were in competition with a variety of other products such as apparel and
fashion handbags.

Successful brands were able to sell because they positioned themselves based on the
benefits they offered to those who possessed them.

Quantitative Analysis
Time line of wrist watch Industry and India

Introduction of Quartz watch by Tata group.

In 1984 Titan Industries Limited was formed as a
joint venture of (Tata and TIDCO).
TIL differentiated themselves from HMT on the
basis of Accuracy, Style, Choice, and vigorousPush marketing through this phase.
In 1987 Titan started retailing its brand itself.

1980s
1960

1984

1987

Indian Watch Industry Originated

when HMT (Public sector Enterprise
Entered Indian Market)
Till 1980 HMT was only brand offering
watches at monopoly and was able to
rtain goodwill even from limited

1992

In 1990s TIMEX
(originated in
collaboration with Titan
Tag line: Do not have
to be rich to afford it

1999

The New exportImport (EXIM)

Policy introduced
relaxed imports
of luxury brands

Liberalization opened
Indian market to
Foreign Players:
Casio, Rolex,
Citizen, Tissot,
Omega, Rado, TAG
Heuer

Early 20th Century

Many
Multinational
brands entered
the market
because of EXIM
policies that
raised the bar on
imports of Luxury
watches in India

Facts

India had 28 States and seven union territories with a population of 77.42 million urban

households.
The income levels categorized as follows:
o 62.7 million households earned up to INR 1,50,000 (Indian Rupees) per annum (1
USD was equivalent to about 45 INR),
o 11.6 million households earned between INR 1,50,000 to INR 3,00,000 per

annum, and
o 3.1 million Households earned more than INR 3,00,000 per annum.
The latest McKinsey report on India's consumer market included watches as the eighth
most required item) at 8% share-of-wallet (SOW) in 2005; this was expected to climb up

to 9% SOW by 2015, and to 11% SOW by 2020.

In India, in terms of category sales, the highest share, as per value, involved watches

priced between INR 500 and 3,000.

The premium segment of watches retailed between INR 4,000 and 15,000 and had been
growing at an exponential rate of 20% annually.

Issues
Customer perception issue
The potential target market was shifting towards the international brands for the premium
watches and it would be difficult for an Indian-made tag to impress the target market. This has
made it difficult to culturally adjust the product. As XYLYS was a subsidiary brand of the house
of Titan and Titan was already operating in India since long as a joint venture with other Indian
based companies for example with The TATA Group and with Timex, hence the Indian target
market mostly associated XYLYX as being a more or less an Indian brand whereas the potential
and current target market of premium watch users was shifting to multinational brands and most
did not regarded XYLYX as a multinational brand.

Increased Competition

The liberal government EXIM policies increased the level of competition the firms were facing.
Before the XYLYSs parent company had the major market share and little market penetration
was required but after these liberal government policies several large competitors entered the
Indian market which included Seiko, Casio, Rado etc. This decreased the market share of Titan
and negatively affected XYLYS.
Quartz analog issue
XYLYX was the quartz analog kind and the customers had this perception that the quartz is of
low cost and lacking in style which is quite a drawback for XYLYX because XYLYX is
exclusively targeting the premium watch users.
Untapped Sports market segment
Sports target market segment was largely untapped and only 5% of the total sports segment was
being targeted. XYSLYX should have specifically made an emphasis on this side of the target
market in order to capture more of the target market.
Major sales by unrecognized Sales
The majority of the sales in India were made by the unrecognized sector which mainly included
selling of imported brands through an unrecognized platform that is through black market and
this market formed the majority of the market share i.e. 65%.
Wrong Brand Positioning
In 2010, the brand changed its positioning from Symbol of Success to Feeling of Love. The
brand talked about falling in love with XYLYX. The brand was initially launched with the
positioning to target those individuals who are motivated by the passion to pursue their dreams
and the brand is recognized as bold, unconventional and distinctive. The customers of XYLYX
were highly individualistic persons. But this new positioning was a significant deviation from the
core positioning of the brand. The entire brand positioning was changed in the current campaign.
It reflected irrational desirability of the brand. However, later in 2011, when market research was
carried out the results proved to be indicating that this market positioning was a wrong idea as
the target market had a very individualistic and self-improvement approach. The target market

was high on self-consciousness, success, and professional achievement and capable of leading
others. They preferred reliability, honesty, spirit to excel, and success. They wanted to be
influential, rich, and informative. Their need for self-actualization and self-fulfillment was high.
None of these factors were supporting the idea of romance and feelings of love. Hence there was
a need for positioning of XYLYX to be changed on an immediate basis.
Core Issues:
XYLYS has been facing adverse competition due to liberalization, its become a challenging,
though with economy growth there was an improvement in watch industry but there was certain
problems which were challenging Mr Manoj Chakravarti, as mentioned in the case which are as
follows.

Would conventional or traditional approach of positioning is enough?

Does it necessary for the marketers to get some idea of the unique aspect of self
awareness of their consumers?

How the uniqueness of other well-known brands perceived by the consumers?

How important was the Swiss label?

Does the XYLYS being an Indian Brand, delivering the right message to the customers?

The case investigates into behavioral concepts that are important in terms of the perception of the
brand luxury brands.
Recommendations:
XYLYS should add accessible luxury brand watches in their product line with higher
prices than premium watches as the potential target market was shifting towards the
international brands for the high end watches. People perceive high price brand to be
reliable. As watches held a symbolic appeal in the Indian context regardless of the price
and most people are brand conscious. So, high end watches should be introduced to
change the perception of customers and stopping them to shift from their brand.
XYLYS should focus on untapped sports target market. As it is potential target market for
their sports collections. They should hire brand ambassadors as famous sports person

(example Dhoni) for their support category as people in India are highly influenced by
the stars. Competitors have famous brand ambassadors as Deepika Padukone for
TISSOT.
XYLYS change the perception of people by increasing advertising and brand
endorsement programs to be the reliable premium watches Indian brand.
Company should change their positioning from Feeling of Love back to Symbol of
Success. New positioning has significant deviation from the core positioning of the
brand. As most of results of their study showed achievement, success factors, Exciting,
personal ability, leader, achieving success, professional success imaginative the important
factors for potential users of premium watch brands. So they must focus on positioning
their brands as Symbol of Success. In their market mix strategy emphasize on success,
achievement, innovators, and imaginative people. This will help to change the perception
of people towards their premium brand.