2. Titan industries
Incorporated in 1984
Joint venture between tata group and TIDCO
QUARTZ watches was a global standard.
Repositioned titan as not just a timepiece but as
gifts, accessories & fashion.
Brands in the portfolio : sonata, fast track,
nebula.
6. Two failures
1. International expansion in early 90’s
• Pricing pressure
• High frequency of new product introductions
• Demanding customers needed ordered
serviced at short notice
• Presence of low cost hongkong based
competitor
7. 2. Introduction of jewellery watches under a
new brand tanishq.
Positioned it as a jewellery that tells time
Target market : income of more than 1lakh
High snob value, ego satisfier
• Design problem : heavy, appeared clunky &
high price
8. Jewellery in india
• Gold jewellery market :60000 crores annually
• Considered streedhan – womans wealth
• Indian wedding has 2 bangles , necklace,
earings, a ring, nosepin.
• Investment of $2550 ; per capita income $350
• Dhanteres- biggest gold buying day.
• no national competitor but local bigger than
tanishq
9.
10. • 25000 family owned independent jewellers
• Buyers : men, target : woman
• Jewellers : Retail stockists
• Inventory owned by vendors
• Design ordered by jewellers
• Karigars ( craftsmen) controlled by vendors
• Received rs 30 per gram of gold
• Long standing relationships
11.
12. Move from watches to jewellery
• 1996:manufacture &marketpreciousstudded
jewelleryundertanishq.
• Indianmarketwasbasedon22-karatgold.
• Studdedgoldjewellerywasbasedon18-karatgold
• Asfirstnationaljewellerybrandchallenges:
i. Establishitself as differentiated jeweller
ii. Paradigmshiftinusage&attitude, educate
customers
Positioneditselfas“adornmentofbothbody&mind”
Westerninstyle&design
17. Repositioning tanishq : a gem of an
oppertunity.
• June 1997 ,piloted offering of 22 karat
• 400 designs + 1000 18 karat diamond studded
• Focused on traditional design to counter
perception
• Inuagral offer promoted to increase walk ins &
purchases
• Focused on jewellery for adornment not
investment
23. • By 2001 sales reached Rs.166 crores
• But struggled to maintain local brand
presence.
24. A changing of the guard
• A karigar park was set up
• Quick delivery, flexibility,reduced lead times &
logistics cost
• Continued to offer designs for wedding market,
karatmeter service & exchange schemes, running
promotions.
• Consumption habits changed
• A story was attached to each collection e.g. Aria
• In 2002, diva launched offering pearls &
diamonds
25.
26.
27. • Perception of “not for me”
• Target customer – woman
• Brand awareness was high but translation to
visits was low
• Perceived as too expensive, unapproachable,
with a low width and depth of product
offerings
• 2004 – titan underwent a brand valuation
exercise
29. • Daytimes , a diamond based collection to
reposition diamonds as affordable, casual,
young & contemporary.
• Colors, aimed to correct the perception that
Tanishq only had modern designs
• Aarka high fashion 22-karat gold collection to
position tanishq’s design & image leadership
• Aamra a collection of studded jewellery to
tackle its unapproachable image
30.
31.
32. • Associated with high profile fashion events
Femina Miss India, apsara film awards, Milan
fashion week
• Sales exceeded Rs. 550 core target
• In October 2005, segmented the market into 5
psychographic segments
• Confidentmatriarch, sanction speaker,thebalancer,
theindividualist, uninvolvedconformist
34. • Confident matriarch:
- 37% of the market
- woman in the age group mid 30’s or older
- open to new ideas
- confidence to adapt and to adopt cange
• Sanction Seeker:
- 30% of the market
- spread across all ages and life stages
- most widespread segments in small towns
35. • Balancer:
- 20% of the market
- younger woman married or unmarried
- drawn to the modernity of designs
• Individualist:
- 5% of the market
- upper class working women, primarily in
urban centers
- strongly identified with being “modern”
40. The GoldPlus Proposal
• The semi-urban/rural market was 36000
crores
• Leverage supply chain capabilities & compete
on price
• Erode & ratlam
• Goldplus ads “ girl next door look”
• Goldplus customers lived in small town &
wore jewlery in weddings & festivals
41. • Marketing expenses were 50lakhs
• Erode store had sales of 10 crores
• Ratlam hit 3 crores
42.
43. The dilemma
• Multibrandstrategywontworkinjewellerymarket
• Goldpluspositioning wasbasedontatasname
• Couldcannablisetanishqssales
• Goldpluspermitting pricenegotitation complicated
matter
• Tanishqwasabrandtochargepremiumprice
• Government passed excise duty on branded
jewellery
44. • Goldplus was positioned to serve gold
wedding jewellery market in smaller cities
• Both had positive results
• Should tanishq or goldplus pursue gold
wedding jewellery market in smaller cities &
rural locations.??????
45. • The decision would impact the goal to reach a
billion dollar sale by 2010 (5000 cr)
