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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 sportand 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, its 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.

watch market

20.60%

5.90%

4.30%
69.20%

Titan
Swatch
Timex
Other

Segmentation of watch market


Column1

5%
35%

60%

Casual

Formal

Sports

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.

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 )

RECOMMENDATIO
NS:
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.
They should do the positioning
based on the factors like status,
prestige and ego gratification.
They should expand their brand
through other countries too.
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.