Titan Xylys – Communicating premium appeal

In India, luxury/premium watches estimated to constitute 5% of the total watch market during
the year 2010-11 and it was growing @ 20% annually which was double the growth of the
entire watch market’s growth.
Premium watches are categorized into three sub-segments. Premium Watches with a price
range of INR 10,000 – 50,000 includes brands like Tissot, Seiko, Citizen, Emporio Armani and
Hugo Boss; Luxury Watches with a price range of INR 50,000 – 2,00,000 includes brands
like Rolex, Rado, Omega, Longines and Tag Heuer; Exclusive Luxury Watches with a price
above INR 2,00,000 includes brands like Breguet, Patek Philippe, Breitling and Hublot.
The consumer segment who used to buy such premium watches were mostly new generation
brand conscious executives who have achieved considerable success in their professional
career. This group majorly consists of young and middle-aged professionals occupying senior
management roles in corporate houses, new generation entrepreneurs and others belonging to
higher socio-economic status.
During 2010-11, the premium watch market in India was primarily dominated by foreign
brands mainly imported Swiss-made watch brands. Witnessing impressive growth of premium
watches, Titan decided to launch “XYLYS” range of watched in the price band of INR 10,000
– 30,000. By doing so Titan was the only Indian brand to offer premium watch product. Before
this, Titan had watches in the range of INR 500 – 7000 with brands like Sonata, Titan classic
and Fastrack.
In Indian culture, traditionally watch has been associated with gifting purpose such as during
the occasion of marriage, or parents gifting to their son/daughter on their
success/accomplishment/achievements. Luxury/premium watches were primarily bought for
their symbolic benefits like glamour, status, prestige, ego gratification, sense of belonging, self-
expression and self-image enhancement than that of their functional benefits.
The main dilemma for Mr. Manoj Tadepalli (Head of Marketing, Titan) was how to position
XYLYS against the highly established foreign premium watch brands. Hence, he decided to
conduct a market research to understand some aspects of consumer behaviour of both present
users and potential users of premium watches. He tried to explore the personality/self –concept
and interests of both the group of consumers. Two questionnaires (one to understand consumer
self-concept and the other to understand their attitude/interest) were used to gather responses
on 1-5 point scale where 1 reflects least agreed and 5 reflects most agreed. Exhibits 1 & 2
represent the mean values for users and potential users against each item in the questionnaire.
Questions:
1. Analyze the given information and consumer research data to make meaningful
interpretation.
2. Based on the market research data, help Mr. Tadepalli by suggesting a viable approach
for positioning of Xylyx.
Exhibit-1: Self-Concept of present and potential users of premium watch brands
No. Items Potential Present
Users Users
1 I feel embarrassed if I don’t look my best when people are 3.25 3.35
around me
2 I always make it a point that I look good 3.10 3.75
3 People notice how attractive I am 3.25 3.45
4 My looks are very appealing to others 3.05 3.40
5 I want others to look up to me because of my accomplishments 3.10 3.65
6 I am more concerned about professional success than my 4.35 4.15
friends and peers
7 Achieving greater success than my peers is important to me 3.75 3.95
8 I want my achievements to be recognized by others 4.25 4.20
9 In a professional sense, I am a very successful person 3.85 4.01
10 My achievements are highly regarded by others 4.15 4.25
11 Others wish they were as successful as me 3.75 3.85
12 I am a good example of professional success 3.65 3.80
13 I often look for unique products or brands so that I create a 3.25 3.25
style that is all my own
14 The products and brands that I like best are ones that express 3.10 3.35
my individuality
15 I rarely act accordingly to what others think are the right things 3.35 2.75
to buy
16 I enjoy challenging the prevailing taste of people I know by 2.90 2.95
buying something radical
17 I often think of things I buy and do in terms of how I can use 3.05 3.02
them to shape a more unusual personal image
18 When a product I own becomes popular among the general 2.65 2.85
population, I use it less
19 Concern for being out of place does not prevent me from 2.85 3.10
wearing what I want to
Exhibit-2 (Attitude, Interest and Opinion of present and potential users of premium watch
brands)
No Items Potential Present
Users Users
1 Given the choice, I usually dress for fashion, not for comfort 3.35 2.85
2 While arranging home, my family’s convenience is more 2.95 3.65
important than its aesthetic appeal
3 I always make it a point to inculcate good habits in me and my 2.75 3.85
family members
4 I love to go to parties with lot of music and opportunity to talk 3.06 3.05
5 I would rather go to a sporting practice session than a movie 3.45 3.25
with friends
6 I would love to work in a political campaign, or for an issue 3.65 1.75
that gives me social exposure
7 I believe to have higher self-confidence than most people 2.65 3.75
8 I believe myself to be more independent than most people 3.75 4.1
9 I strongly believe in my personal ability to perform things 3.85 3.75
10 I like to be considered a leader 3.95 4.15
11 My friends or neighbours appreciate my friendliness to them 3.7 3.75
12 Very often I influence what my friends buy 3.75 3.35
13 People come to me more often than I go to them for 3.5 3.35
information about brands
14 I often seek out advice of my friends regarding which brand to 3.35 2.85
buy
15 I spend a lot of time talking with my friends about products and 3.65 2.95
brands
16 I would like to spend a year in London or Paris for fun 3.20 3.25
17 I would like to take a trip around the world to explore new 3.80 4.25
things and meet new people
18 I focus more on saving money than spending it 4.35 3.95
19 I always make it a point to spend at-least one hour everyday 4.15 3.70
reading news paper or watching news to enhance my
knowledge
20 I give high emphasis to meticulously plan for future savings 3.15 3.65
and expenditures