Tanishq - The Turnaround Strategy
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Case Details:
Case Code : MKTG013
Case Length : 6 Pages
Period : 1995 - 2001
Pub Date : 2001
Teaching Note : Available
Organization : Titan Industries India
Industry : Jewellery
Countries : India
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"When we started out we didn't think that we could achieve this, but now being jewellers to the nation doesn't seem so distant."
- Tanishq COO, Vasant Nangia, in March 2000.
The Unsuccessful Launch
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In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market was to a large extent unorganized, with a few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's.
Tanishq, an entirely new concept in the Indian market, thus had to struggle hard to be accepted by the customers. Industry watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat gold range, with designs borrowed heavily from contemporary European brands.
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The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings. Tanishq performed very badly in the next three years, posting a huge loss in 1997-98, proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted, "Tanishq, as a concept, was far too ahead of its times."
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Even if one agreed with Kurian, it could not be denied that Tanishq did commit mistakes. Analysts decreed that the company's strategies were wary.
At this point, Tanishq took various steps to correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999.
In 1999-00, sales doubled to Rs 1532 million against Rs 743.8 million recorded in 1998-99 and reached Rs 2000 million in 2000-01. Tanishq fared equally well on the export front also with heavy exports to UK, US, Australia and West Asia... |
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