EXPLORING CONSUMER PERCEPTION ABOUT PREMIUM WATCHES IN INDIAN CONTEXT Essay

He had ashesu schoolboyishd several aspects of marketing mix strategies in the past to sheath diverse somas of ch in altogetherenges. For Chakravarti, any ch either(a)enge in the realize industriousness, especi in entirelyy in an emerging market such as India, was clo desexhing he take careed forward to, as it gave him im handsse satis occurrenceion when he was able to find some insights. Xylys was a allowance insure inciter launched by giant star a a few(prenominal) years ago the smirch was aimed at creating a unusual acquaintance among consumers.The challenge was to create and shape a perception unique to the brand, since insurance superior moldes in India were associated with the Swiss brands Omega and Rolex, or smidgin Heuer and crude(prenominal) kindred brands, which were much contemporary in nature. There were several interesting possibilities for Chakravarti to consider. Would a conventional- arrangement approach be sufficient? Was it necessary to o btain some insights regarding the potfulion of the uniqueness aspect to the self-perception of consumers?How were such aspects of uniqueness related to separate show brands? How important was the Swiss-made label? Did the buyers and prospective buyers of bounty figurees hold any special stereotypical images of such conditiones? The case delved into several aspects of the perceptual fields associated with consumer way with the objective of finding the just about appropriate approach to further the prospects of the Xylys brand.no(prenominal)tCThe liberalization of markets, the rising disposable in acclaim, exposure to western lifestyles, and the withdraw for the spick-and-span generation to establish an identity for itself were some of the reasons for the increase of the lavishness lookout category in India. Consumers were buying not single unchanging categories that were enforceful to them and satisfied functional aspects, but similarly categories and brands that reflected their personality. India had 28 states and sevener union territories with a population of 77.42 zillion urban dramaticsholds.The income levels were categorized as follows 62.7 million ho char runerholds earned up to INR 1,50,000 (Indian Rupees) per annum (1 USD was equivalent to ab protrude 45 INR), 11.6 million households earned between INR 1,50,000 to INR 3,00,000 per annum, and 3.1 million households earned 1to a greater extent than INR 3,00,000 per annum. With valuate to the sp nullifying of households on top 10 necessities crosswise all 2classes of consumers, datees figured at the eighth moorage, on an average. The latest McKinsey report on Indias consumer market pegged leading on personal harvests and service necessities (watches were include as the eighth most required item, as described above) at 8% sh ar-of-wallet (SOW) in 2005 this was expected to climb up to 9% 3SOW by 2015, and to 11% SOW by 2020.THE WATCH sedulousness IN 2011Global1The Marketing Whi te Book 201011 One Stop Guide for Marketers, Business knowledge base, New Delhi, 2010, pp. 5254. Ibid., p. 63.3The raspberry bush of gold The rise of Indias consumer market, McKinsey Global implant, May 2007, http//www.mckinsey.com/mgi/ matters/india_consumer_market/images/India_Interactive1.swf, accessed on April 11, 2011.Do2S. Ramesh Kumar and Kasturi Baral prep bed this case for class discussion. This case is not intend to serve as an endorse manpowert, source of primary data, or to show utile or inefficient handling of decision or business processes. procure 2011 by the Indian base of guidance Bangalore. No part of the publication may be reproduced or transmitted in any form or by any means electronic, mechanical, photocopying, recording, or otherwise (including internet) without the authority of Indian Institute of Management Bangalore.This inscription is reliable for use only by Arijit Santikary at shivah shibahni Institute of Management until celestial latitude 20 13. write or broadsheet is an attack of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer lore somewhat superior Watches in the Indian circumstance pageboy 2 of 15rPostA signifi throw outt decline in the orbicular takings of watches was witnessed in 20052009, with the meretriciousnesss in 2009 at a fifth of the expected formulas. 4 This was attributed to the plummeting guide in the recession-hit markets of the United States, Japan, and Europe, among others.The support surgical incision suffered the worst, with the exports of Swiss watches falling by 22% in 2009, despite having risen to an unprecedented racy the previous year. 5 However, what was inexplicable was that while the rest of the world foundeven regular watches unaffordable, the developing markets of China and India were experiencing growth in consumer demand for sumptuosity and agio watch products.IndiaIn five years, the Indian watch market had grown at an average rate of 8% per annum. 6 The recession during 2008 2009 hindered the sectors growth, with a drop in the gross revenue of luxuriousness and premium watches, which was compensated by the growth of hoi polloi in the economy fragment. 7 Thus, despite the global trends, the pass judgment and volume figures for 2009 stood at 40.6 billion units and INR 54.6 billion, with a growth of 8.5 and 15.4% in volume and value, respectively. 8opyoIn terms of category sales, the highest share, as per value, involved watches priced between INR 500 and 3,000. The premium segmentretailed between INR 4,000 and 15,000had been maturement at an exponential rate of 20% annually. 9Low per capita consumption on the one hand and the growing demand for sumptuosity watches on the other constituted the factors that forecast the compound annual growth rates of 7.3% and 13.7% in volume and value, respectively, for the hitch 20092014. 10INDIAN WATCH INDUSTRYHistorical PerspectivetCThe Indian watch industry had its origin s in the 1960s, with HMTs Janata world launched in 1962. in the first place HMT, watches were sourced gooply from imports, and could be afforded by only a subatomic number of consumers. HMT was the first major watch manufacturer in India, and the sole native player,until Titan Industries Limiteda Tata and TIDCO joint venturewas formed in 1984, and started retailing watches in 1987.Titan, with its focus on exact oning the customers unspoken call for, gradually wrested market power and shares from HMT and became the undisputed draw in the wrist watch segment over the utmost tierce decades. The only other major Indian player was P. A. Time, with its brand Maxima, which managed to survive despite fierce rivalry. Other indigenous brands such as onlywyn, Shivaki, and SITCO failed to keep up with Titan and languished, with marginal to negligible market shares.NoIn 1992, liberalization derrieredid up the Indian market to foreign players, and Timex was the first on the scen e. It was in brief followed by Casio, Rolex, Citizen, Tissot, Omega, Rado, and TAG Heuer (the new exportimport (EXIM) policy introduced in 1999 relaxed the hitherto stiff upper bar on imports of opulence wristwatch brands). After the foreign direct regulations were changed by the government to allow up to 51% of foreign direct investment in single-brand retail operations, global brands set up subsidiaries in India with apparel brands such as Esprit, Tommy Hilfiger, Benetton, and Levis, overly launching brands of their own.Growth of IndustryDoThe Indian watch industry began in the 1960s with the public sector enterprise HMT, which was the governments initiative to start the indigenous manufacture of watches. The import industry brought in the more than appearanceable watches, but the basic need for timekeeping was satisfied by the sturdy and reliable mechanical wristwatch models4Watches in India, field report,http//www.euromonitor.com/watches-in-india/report, accessed on July 2 2, 2011. Ibid.6Ibid.7Ibid.8Ibid.9Ibid.10Ibid.5This papers is authorized for use only by Arijit Santikary at shibah shibahni Institute of Management until December 2013. Copying or posting is an onslaught of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer cognition somewhat Premium Watches in the Indian context of use foliate 3 of 15rPostmanufactured by HMT. In the absence of other brands, HMT could afford to retain goodwill despite go limited styling and choices to its customers. A few decades earlier (when HMT held a monopoly in the category), a watch was a product that anyone who had taken up a frolic aspired for. Traditionally, the penetration levels were quite low during this time the notion of a watch for the masses was diffused in the psyche of consumers only after the late eighties, when the country witnessed major lifestyle changes. The nineties enhanced this perception as many brands entered themarket following the liberalization of governmental policies.The Tata group introduced the vitreous silica watch in the 1980s under the Titan brand, and differentiated themselves on the basis of accuracy, style, choice, presentation, and vigorous push-marketing. 11 Timex, in quislingism with Titan, launched its range in India in the nineties, with a mutual understanding that the originator would keep to the low-price malleable segment, while the latter would manage the high-price metal segment.Timex positioned itself with the tagline You dont bind to be rich to afford a Timex, and was well accepted by the market. After a few years, Timex became an independent brand and set up its own distribution channels, and e coordinated as a brand associated with the sports and casual grind segment.opyoEarly in the twentieth century, many multinational players entered the market, which was made executable by the EXIM policies that raised the bar on the import of luxury watches in India.AN OVERVIEW OF THE COMPETITIONThe single largest player was Titan, with a brand share of 20.6% in 2009. 12 The next player worth mentioning was Swatch, with a relatively small share of 5.9%. 13 Timex was a relatively strong multinational brand in the market. Rolex, PA Time, Citizen, and Casio had small significant shares, and HMT was excessively present in the Indian market.Despite the posture of many brands, the market was still mainly controlled by the unorganized sector (to the tune of 65%) even in 2009. The present competition arose from the increasing foray of multinational players into the lucrative luxury segment however, the real challenge was to tackle the spurious imports being change by the unorganized sector.tCWatches transformed from time keeping instruments to style accessoriesduring the eighties and nineties owing to significant lifestyle changes this was reflected in some of Titans advertisements. Watches as fashion accessories were in competition with a variety of other products such as apparel and f ashion handbags hence, watches had to do a clearly differentiated element of perceived utility apart from fashion. 14SEGMENTATION OF THE WATCH MARKETThe watch industry could be segmented according to various criteria technology, put on, and price.NoWatches could be classified into deuce-ace kinds ground on technology mechanical, quartz analog, and quartz digital. The first went out of vogue since the bulky mechanical format did not allow for svelte design it dropped in volume shares from 7.2% in 2004 to 4.6% in 2009. The scrap kind was the largest in both value and volume, and was expected to remain the market number one wood for growth in 20092014.Digital watches suffered from the consumer perception of being low cost and lacking in style, and hence, the market for them had not yet picked up. The sales figures by value for these sub-sectors for 2009 were INR 3,000, 46,000, and 6,000 million, respectively. The major market players in these trine sectors were HMT, Titan, an d Casio, respectively.DoThe second basis of classification was benefit, and the market could be divided base on use, namely, casual, formal, and sports. Many of the brands offered some options in all three segments, but most catered only to the first two segments the sports segment remained a largely untapped segment. Nearly 35% of all watches retailed were casual, 60% were formal, and a mere 5% belonged to the sports segment.11The Titan Story, http//www.titanworld.com/titan_stories, accessed on November 29, 2010. Watches in India, Country report, http//www.euromonitor.com/watches-in-india/report, accessed on July 22, 2011. 13Ibid.14Ibid.12This document is authorized for use only by Arijit Santikary at shibah shivahni Institute of Management until December 2013. Copying or posting is an assault of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer lore about Premium Watches in the Indian conditionPage 4 of 15rPostThe watch market could be classified into economy, standard, premium, and luxury segments. 15 The mass market (i.e., the economy segment) accounted for nearly 67% of volume and 50% of value shares, and was catered to almost entirely by the unorganized sector. pop (standard), with prices ranging from INR 500 to 1,200, was the lowest range offered by the organized sector (Titan and Timex, primarily).The premium segment consisted of watches in the INR 1,5005,000 range, offered by almost all the indigenous and multinational brands. The demand from the centre of attention and upper income groups promised to be the growth driver for this segment in 20092014.opyoA better explanation in terms of consumer behavior was the third basis of segmentation as defined by Yankelovich (1964). 16 He presented a scheme for the non-demographic segmentation of various product categories, including watches. partitioning by value was considered to be particularly apt for this market. Thus, the authors arrived at three distinct segments, ea ch offering the customer a different benefit and value than the others.As was stated earlier, the watch had always been a product that appealed to make do, but the nature of the appeal and the associations related to watches changed with the changing environment. A watch or a specific brand in particular became a symbol of several associations that were in tune with the changing environment. These associations were generally glamour, fashion, sports, and fun, and the metier of these associations became pronounced depending on the respective segment toward which a brand was positioned.Lifecycle stages also mattereda school student would celebrate his/her first watch with neighbors and friends, a college student would garner attention among his/her friends with a recently bought watch, and an young executive who had been self-made in his job might reward himself with a premium watch after a few years of hard work, and also announce his arrival into a world of success to the out o f doors world. repute for bills Low/regular-priced watches that were accurate and sturdy. Owners tended to replace these when they failed.Premium watches High-priced watches, with insure longevity, excellent workmanship, and good styling. Owners were ready to pay a premium for the benefits that attended these brands. Special watches Extra benefits such as fine styling, brand name, and accessories (such as gold casings) were desired by potential drop customers. The watch, apart from being a fashion accessory, was part of a ritual gifting ceremony, and needed to encapsulate the excited benefits required to succeed.NotCSymbolic and lifestyle categories that were created in the last 20 years or so included apparel, watches, mobile phones, movable melody players such as iPods, cars, televisions, two-wheelers, and spectacles, to name a few socially conspicuous product categories brands made use of such psychological needs of consumers to position themselves, with one category ofttim es competing with another.For mannequin, a typical middle class household in India that had bought a TV (it is a well-observed fact that a TV is generally high on the purchase agenda of a middle class family) on sequence basis (the installment plan allows a consumer to pay for the purchased product over a period of time through monthly payments to the seller/retailer) might postpone buying a new watch for a student in the family who was ingress college, owing to financial pressures.Such instances would be rare in a developed market, especially with regard to the purchase of a watch. It was interesting to mention that the lower end offerings (relatively lower end to be precise, when comparingd to the price of luxury watch brands) from brands such as Titan also used glamour, romance, and reputation preference course for the positioning strategies of several of its brands (such as Titan, Fastrack, Sonata, and Ragaa). Titan was a leader in the organized quartz analog watch segme nt, and millions of pieces had been sold over the years.It was interesting to note that regardless of the price range or the benefit, watches held a symbolic appeal in the Indian contextan appeal that could be associated with the self-perception or the personality/style a consumer would the manage to project to the outside world. Luxury watches had a special appeal with regard to such an orientation among consumers.DoThe watch market in India was divided into three full(a) segments mass market(price below INR 1,000), midmarket (price between INR 1,000 and INR 10,000), and premium market (price commencement at INR 10,000). Luxury watches in turn, were categorized into three sub-segments1516Ibid.Yankelovich, D., New Criteria for Market Segmentation, Harvard Business Review, March/April 1964.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infraction of copyright. Permissionshbsp.harv ard.edu or 617.783.7860.XYLYS Exploring Consumer Perception about Premium Watches in the Indian Context2.3.Premium watches INR 10,00050,000. This was the put where Xylys operated. The other prominent brands in this space were Tissot, Seiko, and Citizen, in addition to fashion brands such as Emporio Armani and Hugo Boss.Accessible Luxury INR 50,0003,00,000. The biggest Swiss brands such as Rolex, Omega, Longines, and Tag Heuer operated in this space.Exclusive Luxury INR 3,00,000 and above. Very high-end brands such as Breguet, Patek Philippe, Audemars Piguet, Breitling, and Hublot populated this segment.rPost1.Page 5 of 15From the blot of view of look, there were four philosophies from which brands tended to choose and occupy, namely, dress, classical, fashion, and sport. For example, among sporty watches, Tissot, Tag Heuer, and Breitling were the brands in the premium, accessible, and exclusive luxury sub-segments, respectively.LUXURY BRANDSopyoThe market for luxury watches was es timated to be 3% of watch retail, and was growing at almost 20% annually, which was more than doubly the growth rate of the entire market. 17 Luxury brands were priced above INR 15,000, and primarily included imported brands offered by multinational players, such as Omega, Rado, Longines, Tag Heuer, and Tissot. Titan was the only Indian brand in this sector contemporaryly, with Xylys at the luxury end of its portfolio. Personal interviews with some managers at retail outlets suggested that the competition to the Xylys brand was from established brands such as Seiko and Tissot. 18The main consumer of luxury brands was the new generation executive, who was set to move toward the prime of his/her career, and who had a groovy reek of brand consciousness. These included an increasing number of young and middle-aged professionals in the upper strata of focal point in corporate houses, and also Indians who belonged to the higher(prenominal) socio-economic strata and had a penchant for luxury products. The major consumers of watches in the luxury segment included CEOs and senior professionals in their thirties and forties, new generation entrepreneurs, and young working professionals.tC in(predicate) brands sold because they positioned themselves base on the benefits they offered to those who deplete them such benefits could be functional, symbolic, or experiential. 19 brand name concept management 20 stated that for long-term success, the brand image needed to be based on a brand-specific abstract concept. The authors felt that such an orientation would help the long-term plans of luxury watch brands.NoFunctional brands provided tangible and practical benefits, and satisfied the real need for the product. grunges needed to necessarily satisfy functional needs, since these were the hygiene factors for acceptance in this category. Symbolic brands, on the other hand, catered to the consumers preference for brands that matched their own selfconcept 21 and thei r symbolic needs for self- boldness, prestige, and the enhancement of self-image and sense of belonging. Experiential brands satisfied the owners need to understand arresting pleasure, variety, or cognitive simulation.Luxury watches were bought for their symbolic and experiential benefits as argue to their functional ones. The selling points were the status and sophistication that the brand denoted when worn by the owner although aesthetic appeal and durability were important, precision and price were not.DoHence, the positioning diagrams for luxury watches would need to be based on factors such as status, prestige, and ego gratification.The methodology was derived from earlier studies on the positioning of brands. 22 Three sets of questionnaires were used to record the respondents opinions on brands, adjectives and phrases related to brand symbolism, and more indepth queries regarding the characteristics of brands and their users. 17Watch industry in India to grow at 9%, India I nfoline News Service,February 5, 2010. Interviews with Viraj, sort Manager, World of Titan at Brigade Road, Bangalore and Saumya, Branch In-charge, Titan (multi-brand outlet) outlet at Jayanagar 4th Block, Bangalore.19Park, C. W., Jaworski, B. J., & MacInnis, D. J., Strategic Brand Concept Image Management, Journal of Marketing, Vol. 50, October 1986, pp. 135145.20Ibid.21Malhotra N. K., Self Concept and Product Choice An Integrated Perspective, Journal of sparing Psychology, Vol. 9, 1988, pp. 128. 22Bhat, S., & Reddy, S. K., Symbolic and Functional Positioning of Brands, Journal of Consumer Marketing, Vol. 15, No. 1, 1998, pp. 3243. 18This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an ravishment of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextrPostMETHODOLOGYPage 6 of 15The objective of the get was to analyze and link several aspects of consumer behavior, and to compare users and non-users of premium watches. Three sets of questions were prepared. One set of questions dealt with the selfconcepts of consumers, another was about the brand personality aspects of their watches, and the last set of questions was related to thepsychographics of individual respondents. Non-users were respondents who were potential buyers of premium watches in the near future. Scales were drawn from several resources uncommitted in the extant literature. 23Forty current users of premium watches and forty potential users (prospective buyers) of premium watches were administered the questionnaire in April, 2011 in Bangalore, India.opyoExhibits 1, 2, and 3 were associated with self-concept, brand preferences along with personality traits, and the activities, interests, and opinions (AIO) of potential users of premium watch brands. Exhibits 4, 5, and 6 dealt with the same factors of the present users of premium watch brands (self-concept, brand preferences along with personality traits, and AIO).The description of the positioning strategies of the various brands presented below is based on the authors perception of the advertisements of the respective brands.XYLYSXylys was a premium Swiss-made watch brand from the house of Titan in India. Priced between INR 10,000 and INR 33,000, the Xylys range of watches was available in three collectionsContemporary, Classic, and Sportand offered over 60 distinctive models. Xylys was available at select World of Titan showrooms, key multi-brand outlets, and at exclusive flagship boutiques in select cities.tCXylys targeted the lower spectrum of the luxury watch segment. Titan, which was the market leader in the mid-price segment in India, felt that the upper end of their target customers was moving towards iconic global premiumbrands.The designs were created in collaboration with renowned Swiss designer Laurent Rufenacht, and Titans own design advisor, Michael Foley. It was manufactured in a state-of-the-art factory in Switzerland, which had a heritage of over 80 years in the art of watch-making. All Xylys watches were created with exquisite guile and impeccable detailing, were painstakingly made from carefully selected materials, and were crafted with a passion for detail.No epoch carefully analyzing the consumer behavior of customers of premium watch brands, Titan found that consumers were passing influenced by the country of origin association. Consumers love the Swiss-made tag, and there was a huge association of quality, precision, premium, etc. with this tag. The insight was that it would be difficult for an Indian-made tag to impress the target segment.DoThe name Xylys was knowing to bind only two syllables, a distinctive name in itself. The brand charter aimed to convey style, situation, and power. Xylys was created for new generation strikers who went beyond the obvious. Xylys reflected their values, attitu des, and unique personal identities. The brand was targeted at todays people, both men and women, who were supremely confident and conscious of the image they projected.These individuals actively sought new and unconventional experiences. Xylys, with its unique positioning of the Power of X, underlined the power of ones attitude. This attitude stemmed from a persons self-belief, which enabled one to achieve success through a passionate pursuit of ones dreams. Xylys was launched as a contemporary brand targeting upwardly mobile, successful men and women. The brand segmented the market based on psychographic profiles. 23Tian, K. T., Bearden, W. O., & Hunter, G. L., Consumers pick out forUniqueness Scale Development and Validation, Journal of Consumer Research, June 28, 2001, pp. 5066 Netemeyer R. G., Burton, S., & Lichtenstein, D. R., character aspects of Vanity Measurement and Relevance to Consumer Behavior, Journal of Consumer Research, 21, March 1995 Schiffman, L. G., Kanuk, L. L ., & Ramesh Kumar, S., Consumer Behavior, 10th Ed, Pearson Education, p. 143.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextPage 7 of 15rPostXylys defined its customers as contemporary, dynamic, successful people who had attitude and confidence. The brand commanded to celebrate their success with them. The customers of Xylys were highly individualistic persons who did what they loved. These people would love to tell themselves and show their success to the world.The three brand ambassadors of Xylys came from varied fields and represented the attitude of the new generation achievers. Actor Rahul Bose (ad), international supermodel Saira Mohan (ad), and tennis star Carlos Moya embodied the attitude of sprightliness life fearlessly on the ir own terms, with a passion to obey their dreams.Speaking at the launch, brand ambassador Rahul Bose said, Like every exposure I choose to be a part of, I bring forth chosen to endorse this brand after careful thought. I can only support those products that I am fully convinced about. It is an fire new brand from Indias leading watchmaker with an identity that reflects the attitude and values that I consider importantbold, unconventional, and distinctive.In 2010, the brand changed its positioning from Symbol of Success to Feeling of Love. The brand talked about falling in love with Xylys. Xylys ran a persist reflecting the new positioning, which was a significant excursion from the core positioning of the brand. The entire brand personality of Xylys was changed in the current campaign.opyoThe new identity reflected the attitude, lifestyle, and personality of the new generation consumer. You dont possess a Xylys, it possesses you this reflected incorrect desirability of the b rand. The new creative expression was carefully designed to reflect the effect Xylys watches had on their consumers. It was this aspect that created an irrational desire to own the watch, strongly backed by the rational reasons, namely, that Xylys came from the house of Titan and was Swiss-made.After the launch in 2006, the brand saw the volume of sales doubling between 20062007 and 20072008, and sales grew at about 33% since then. In terms of value, Xylys grew at a compound annual growth rate) of 54%. Exhibit 7 displays an Xylys advertisement.TISSOTtCTissot, with its signature Innovators by Tradition, pioneered craftsmanship and innovation since its foundation in 1853. Tissot was a member of the Swatch Group, the worlds largest watch producer and distributor. For over 155 years, the company had its star sign in the Swiss watch-making town of Le Locle in the Jura Mountains, and in 2011 had a presence in over 150 countries.As official timekeeper and coadjutor of the International B asketballFederation, the Australian Football League, the Chinese Basketball Association, and MotoGP, and the World Championships of cycling, fencing, and ice hockey Tissot was committed to respecting tradition, underlining its core values of performance, precision, and setting new standards.NoThe different collections of Tissot included Touch, Sport, Trend, Classic, Gold, Pocket, and Heritage and the price spectrum was much wider than that of Xylys, application program both the affordable luxury and the premium luxury segment with ease.The Indian brand ambassador for Tissot was movie star Deepika Padukone, daughter of a former badminton world champion. Her Tissot watch was projected as a symbol of luxury and glamour complementing her multi-faceted lifestyle. The similarities between her personality and the Tissot brand were captured in the brands advertisements We are both adventurous, sophisticated and classy, yet very approachable.DoTissots subsequent advertising campaign revolve d more or less the theme In Touch with Your Time. In its revolutionary new global campaign based on this theme, Tissot used a series of executions featuring brand ambassadors who presented luxury as being accessible rather than exclusive. The brand attributed its success to the trust customers all over the world had in the quality and pleasure offered by Tissot timepieces.Millions of wearers plainly refused to compromise, and the campaign specifically congratulated them on their discerning selection of a classy Swiss-made watch. The campaigns approach focused on the idea of meat (the unquestionable quality attached to traditional Swiss craftsmanship) and style (a authentically good-hearted watch design).This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is aninfringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer Perception about Premium Watches in t he Indian ContextPage 8 of 15rPostThe new global Tissot campaign captured real moments in the lives of its ambassadors where reality seamlessly merged with glamour. A variety of locations that were local to the ambassadors (e.g., Deepika Padukone in Mumbai, India) were used for the shoots, which enhanced the campaigns integral authenticity.SEIKODoNotCopyoSEIKO Watch India semiprivate Limited is a 100% subsidiary of SEIKO Watch Corporation, Japan set up in 2007 it is headquartered in Bangalore. Over the years, SEIKO has established its leadership position in a number of countries. Backed by such experiences and with India being one of the prioritized markets, the brand is expected to bring its total SEIKO brand experience through its flagship stores that will also provide good customer service.24 The brand is available at several higher-endmulti-branded watch outlets in the country. SEIKOs technological development is focused on the creation of emotional technologies 25. While the b rand may be positioned below Tissot or Xylys (based on the poster of price points at retail outlets by one of the authors), the brand is possible to be perceived as a brand with strong value given its heritage of technology and innovation.2425http//www.seiko.in/corporate/india.html accessed on October 26, 2011 http//www.seikowatches.com/story/index.html accessed on October 26, 2011This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Exhibit 1Page 9 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextSelf-concept (Potential users of premium watch brands)I would feel disconcert if I was around people and did not look my best.3.775It is important that I always look good.3.275People notice how attractive I am.3.675My looks are very appealing to others.I want others to look up to me beca use of my accomplishments.3.0753.0754.15Achieving great success than my peers is important to me.3.475opyoI am more concerned about professional success than most people I know.3.575In a professional sense, I am a very successful person.3.825My achievements are highly regarded by others.3.4Others wish they were as successful as me.3.675I am a good example of professional success.3.25I frequently look for unique products or brands so that I create a style that is all my own.3.225The products and brands that I like best are the ones that express my individuality.3tCI want my achievements to be accepted by others.3.375I enjoy challenging the prevailing taste of people I know by buying something radical.2.95I often speak out of the things I buy and do in terms of how I can use them to shape a more unusual personal image.3.05NoI rarely act according to what others take are the right things to buy.When a product I own becomes popular among the general population, I use it less.2.625C oncern for being out of place does not prevent me from wear what I want to.2.85Source The results were based on the questionnaires administered to users and non-users of premium watch brands.Do watch The statements were metric on a Likert scale ranging from strongly Agree to strongly differ for each respondent, and the values were coded as powerfully Agree = 5, Agree = 4, Neither Agree nor discord = 3, take issue = 2, and strongly disaccord = 1. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Exhibit 2Page 10 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextBrand and user personality (Potential users of premium watch brands)Brand Factors drug user Factors3.525Up-to-date3.525Reliable4.075Reliable4.12 5Down-to-earth3.65Down-to-earth4 downright3.8 unspoilt3.85Daring3.125DaringSpirited3.775Exciting3.625imaginative3.7 sure-fire3.825Upper class3.325Tough3.2opyoUp-to-date3.83.675Exciting4.05Imaginative3.975 successful3.625Upper class3.5Tough3.5tCSpiritedSource The results were based on questionnaires administered to users and non-users of premium watch brands.DoNoNote The statements were heedful on a Likert scale ranging from Strongly Agree (5) to Strongly Disagree (1) for each respondent. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.XYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextPage 11 of 15rPostExhibit 3Activities, interests, and opinions (Potential users of premium watch brands) When I must choose between the two, I usually dress for fashion, not for comfort.3.25I try to arrange my crime syndicate for my childrens convenience.2.975I take a lot of time and perspiration to teach my children good habits. I like parties where there is lots of euphony and conversation. I would rather go to a sporting event than a movie.I like to work on community projects.2.853.0753.4253.43.7I speak out I have more self-confidence than most people.2.55I am more independent than most people.3.725I think I have a lot of personal ability.3.8I like to be considered a leader.3.95opyoI have personally worked in a political campaign, or for a candidate, or for an issue.3.7I sometimes influence what my friends buy.3.85People come to me more often than I go to them for information about brands.3.5tCMy friends or neighbors often come to me for advice.3.25I spend a lot of time talking with my friends about products and brands.3.575I would like to spend a year in London or Paris.3.175I would like to take a trip arou nd the world.3.825I will have more money to spend next year than I have now.4.375I spend more than an hour everyday reading the newspaper or notice the news.4.025I like to meticulously plan for future nest egg and expenditures.3.175NoI often seek out the advice of my friends regarding which brand to buy.DoSource The results were based on questionnaires administered to users and non-users of premium watch brands. Note The statements were deliberate on a Likert scale ranging from Strongly Agree (5) to Strongly Disagree (1) for each respondent. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Exhibit 4Page 12 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextSelf-concept (Present users of premium watch brands )I would feel embarrassed if I was around people and did not look my best. It is important that I always look good.People notice how attractive I am.3.3253.753.45My looks are very appealing to others.I want others to look up to me because of my accomplishments.I am more concerned about professional success than most people I know.opyoAchieving greater success than my peers is important to me.I want my achievements to be recognized by others.In a professional sense, I am a very successful person.3.4253.653.753.9254.2253.65My achievements are highly regarded by others.3.6Others wish they were as successful as me.3.4I am a good example of professional success.3.73.225The products and brands that I like best are the ones that express my individuality.3.325tCI often look for unique products or brands so that I create a style that is all my own.I rarely act according to what others think are the right things to buy.2.752.925I often think of the things I buy and do in terms of how I can us e them to shape a more unusual personal image.3NoI enjoy challenging the prevailing taste of people I know by buying something radical.When a product I own becomes popular among the general population, I use it less. Concern for being out of place does not prevent me from wearing what I want to.2.8253.2Source The results were based on questionnaires administered to users and non-users of premium watch brands.DoNote The statements were metric on a Likert scale ranging from Strongly Agree (5) to Strongly Disagree (1) for each respondent. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Exhibit 5Page 13 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextBrand and user personality (Present users of premium watch brands) Brand FactorsUser FactorsUp-to-date3.775Up-to-dateReliable4.275Reliable3.84.0253.35Down-to-earthHonest3.95Honest3.925Daring3.6Daring3.675Spirited3.75Exciting3.95Imaginative3.925Successful4.125Upper class3.975Tough3.9753.65opyoDown-to-earthSpirited3.875Exciting3.9Imaginative3.6SuccessfulUpper classTough3.7253.73.625tCSource The results were based on questionnaires administered to users and non-users of premium watch brands.DoNoNote The statements were measured on a Likert scale ranging from Strongly Agree (5) to Strongly Disagree (1) for each respondent. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Page 14 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the IndianContextExhibit 6Attitudes, interests, and opinions (Present users of premium watch brands) When I must choose between the two, I usually dress for fashion, not for comfort.2.775I try to arrange my home for my childrens convenience.3.725I take a lot of time and confinement to teach my children good habits. I like parties where there is lots of music and conversation. I would rather go to a sporting event than a movie.opyoI like to work on community projects.3.953.0753.2253.325I have personally worked in a political campaign, or for a candidate, or for an issue.1.725I think I have more self-confidence than most people.3.625I am more independent than most people.3.975I think I have a lot of personal ability.3.775I like to be considered a leader.4.125My friends or neighbors often come to me for advice.tCI sometimes influence what my friends buy.People come to me more often than I go to them for information about brands.3.753.3253.32.95I spend a lot of time talking with my friends about products and brands.2.875I would like to spend a y ear in London or Paris.3.175NoI often seek out the advice of my friends regarding which brand to buy.I would like to take a trip around the world.I will have more money to spend next year than I have now.4.23.9253.75I like to meticulously plan for future savings and expenditures.3.65DoI spend more than an hour everyday reading the newspaper or watching the news.Source The results were based on questionnaires administered to users and non-users of premium watch brands.Note The statements were measured on a Likert scale ranging from Strongly Agree (5) to Strongly Disagree (1) for each respondent. The mean values were the average of the same across all the respondents.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.Page 15 of 15rPostXYLYS Exploring Consumer Perception about Premium Watches in the Indian ContextExhibit 7 DoNotCopyoAdvertisement for XylysThe authors would like to thank Mr. Manoj Chakravarti, elder Advisor, Ms. Superna Mitra, Head, Global Marketing, Titan Industries Limited and Prof. Dinesh Kumar, Chairperson, Research & Publications, IIM, Bangalore for the support provided to this case study initiative.This document is authorized for use only by Arijit Santikary at Siva Sivani Institute of Management until December 2013. Copying or posting is an infringement of copyright. Permissionshbsp.harvard.edu or 617.783.7860.