Xylys case study solution
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Titan launched a premium Swiss watch brand called Xylys in India priced between INR 10,000-33,000. Xylys offered over 60 models across contemporary, classic, and sport collections. With economic liberalization and growth in disposable incomes, the luxury watch market in India was estimated to be growing at 20% annually. However, Titan's Xylys brand faced challenges in establishing itself against well-known European brands in terms of positioning and perception. The case examines behavioral concepts around how consumers perceive luxury watch brands and their self-identity.
Xylys case study solution
- 1. Team : 13 Format : Write Up Name : Mustahid Ali & Sachin Singh
- 2. 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.
- 3. 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.
- 4. 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
- 5. 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%.
- 6. 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
- 7. 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.