Marketing Essay

7503 Words Nov 17th, 2015 31 Pages
S. RAMESH KUMAR AND KASTURI BARAL

rP os t

IMB 349

XYLYS: Exploring Consumer Perception about Premium Watches in the
Indian Context

BACKGROUND

op yo Manoj Chakravarti, Senior Advisor, Titan Industries reflected on his 28 years in the watch industry, both in India and abroad, and contemplated about Xylys, Titan’s premium watch brand, and its foray into the Indian market. He had formulated several aspects of marketing mix strategies in the past to face diverse kinds of challenges. For
Chakravarti, any challenge in the watch industry, especially in an emerging market such as India, was something he looked forward to, as it gave him immense satisfaction when he was able to find some insights. Xylys was a premium watch
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Consumers were buying not only durable categories that were useful to them and satisfied functional aspects, but also categories and brands that reflected their personality. India had 28 states and seven union territories with a population of 77.42 million urban households. The income levels were categorized as follows: 62.7 million households earned up to INR 1,50,000 (Indian Rupees) per annum (1 USD was equivalent to about 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
1
more than INR 3,00,000 per annum. With respect to the spending of households on top 10 necessities across all
2
classes of consumers, watches figured at the eighth position, on an average. The latest McKinsey report on India's consumer market pegged spending on personal products and service necessities (watches were included as the eighth most required item, as described above) at 8% share-of-wallet (SOW) in 2005; this was expected to climb up to 9%
3
SOW by 2015, and to 11% SOW by 2020.

THE WATCH INDUSTRY IN 2011
Global

1

“The Marketing White Book 2010–11: One Stop Guide for Marketers,” BusinessWorld, New Delhi, 2010, pp. 52–54.
Ibid., p. 63.
3
“The 'bird of gold': The rise of India's consumer market,” McKinsey Global Institute, May 2007, http://www.mckinsey.com/mgi/publications/india_consumer_market/images/India_Interactive1.swf, accessed on April

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