XYLYSExploring consumer perception about premium watches in the Indian context

Submitted by Group 1, PGPM 2012-14MDI, Gurgaon

Group members:Aditya Kagliwal-12P001Saurabh Mishra-12P044

Nitish Gupta-12P088Gaurav Gaba-12P136

Rajesh Chaudhary-12P158Ravi Goel-12P161

ANALYSIS OF EXHIBIT 1,4(SELF CONCEPT) – CONSUMER BEHAVIOR PROFILEPotential Users Present Users

Ambitious : I am more concerned about professional success than most people I know(4.15)

Noticeable: I want my achievement to be recognized by others(4.225)

Ego: In a professional sense I am a very successful person(3.825)

Ego: Achieving greater success than my peers is important to me(3.925)

Conscious: I would feel embarrassed if I was around people and did not look my best(3.775)

Conscious It is important that I look good(3.75)

Noticeable: People notice how attractive I am(3.675)

Successful: I want others to look up to me because of my accomplishments(3.65)

ANALYSIS OF EXHIBIT 2,5(BRAND AND USER PERSONALITY)

Potential Users

Users Factors(Important) Brand Factors(Important)

Reliable(4.125) Reliable(4.075)

Down-to-earth(4) Successful(3.825)

Imaginative(3.975) Honest(3.8)

Present Users

Users Factors(Important) Brand Factors(Important)

Reliable(4.275) Reliable(4.025)

Successful(4.125) Honest(3.925)

Upper Class(3.975) Exciting(3.9)

Tough(3.975)

ANALYSIS OF EXHIBIT 3,6(ATTITUDES, INTEREST AND OPINIONS) – CONSUMER BEHAVIOR PROFILE

Potential Users Present Users

Confident : I will have more money to spend next year than I have now

Ego : I like to be considered a leader(4.125)

Up-to-date: I spend more than an hour everyday reading newspaper or watching the news(4.025)

Individualistic: I am more independent than most people

Ego: I like to be considered a leader(3.95)

Sophisticated: I take a lot of time and effort to teach my children good habits(3.95)

Influential: I sometimes influence what my friends buy(3.85)

Confident: I will have more money to spend next year than I have now(3.925)

PERCEPTUAL MAPPING(PREMIUM WATCHES)

Higher Price

Lower Price

High Value(Innovation, Technology)

Low Value(Innovation, Technology)

Tissot

Sieko

Xylys

CATEGORIZATION OF WATCHES IN INDIA

Technology

• Non-contemporary bulky mechanical watches with less than 5% market share

• Stylish light Quartz Analog watches being the main market driver

• Quartz digital watches that are perceived as low cost & unstylish

Benefit

• Casual (35% Market Share)

• Formal (60% Market Share)

• Sports (5% Market Share)

Price

• Mass Market (Price below Rs. 1000)

• Mid Market (between Rs. 1000 and Rs. 10,000)

• Premium Luxury Market (Price above Rs. 10,000)

CATEGORIZATION OF LUXURY WATCHES IN INDIA

Premium

•Price between Rs. 10,000 and Rs. 50,000•XYLYS, Tissot, Seiko, Citizen, Emporio Armani and Hugo Boss

Accessible

Luxury

•Price between Rs. 50,000 and Rs. 3,00,000•Rolex, Omega, Longines and Tag Heuer operate

Excl

usive

Luxury

•Price above Rs. 3,00,000•Breguet, Patek Philippe, Audemars Piguet, Breitling and Hublot

YANKELOVICH’S DEFINITION OF SEGMENTATION BY VALUE In a product, people look for nature of appeal & associations

like Glamour, Fashion, sports and Fun Four philosophies namely dress, classical, fashion &

sport Factors governing consumer needs:

Psychological needs to position themselves Value for money Self-perception Personality and style

Consumers look for Brands that offer benefits akin to: Functional benefits Symbolic benefits Experiential benefits like sensory pleasure, variety or

cognitive simulation. Preferences also influenced by Lifecycle stages

YANKELOVICH’S DEFINITION OF SEGMENTATION BY VALUE

Appeal & Associations

Glamour

Fashion

Sports

Fun

Look

Dress

Classical

Fashion

Sport

Consumer needs

Psychological needs to position

themselves

Value for money

Self-perception

Personality and style

Benefits

Functional benefits

Symbolic benefits

Experiential benefits

MAIN CONSUMER FOR A PREMIUM LUXURY WATCH 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 Target Consumers: CEOs, senior professionals,

entrepreneurs, people belonging to higher socio-economic strata These individuals constantly seek new and un-

conventional experiences Look for symbolic & experiential benefits rather than just

functional benefits

XYLYS – THE PRODUCT

Premium Luxury watch priced between Rs.10,000/- and Rs. 33,000/- Made in Switzerland Designed by renowned Swiss designer Laurent Rufenacht, along

with Titan's adviser Michael Foley Around 60 models under three collections namely Contemporary,

Classic & Sport Exquisite craftsmanship & impeccable detailing in a state-of-art

factory that has 80 year heritage of watch making

POSITIONING OF XYLYX

Appeal & Associations

Glamour

Fashion

Sports

Fun

Look

Dress

Classical

Fashion

Sport

Consumer Needs

Psychological needs to position

themselves

Value for money

Self-perception

Personality and style

Benefits

Functional benefits

Symbolic benefits

Experiential benefits

XYLYS – THE BRAND The Swiss-made tag is associated with

Quality Precision Premium

Positioned as a “Symbol of success” Target Segment- Upwardly successful people Depicted the “Power of X”

bold, unconventional, distinctive and underlined one’s power of attitude and confidence

THE RESULTS

All this care to consumer needs & diligence shown during

the production choices for XYLYS watches and bang-on-

target Brand position, resulted in doubling of sales volumes

in the initial years

It developed into a consistent growth rate of 33% since then

XYLYS has a consistent brand share of around 21% in the

Indian market even today

THANK YOU!