Tanishq - The Turnaround Story

Setting Things Right Contd...

The communication and promotion budget was increased from Rs. 65 million in 1999-2000 to Rs 100 million in 2000-01. A majority of this was spent towards advertising, while a portion was also earmarked for promotions tailored to match regional preferences. For instance, in New Delhi, which was Tanishq's single largest market, substantial promotions were carried out. The Rs 100 million was split into four parts, comprising national-level spends (both electronic and print media), regional budgets, direct mail and research. For the first time, Tanishq initiated a long-term media plan, aiming to give the brand a round-the-year presence and enhance awareness. The communication focused on design and quality instead of the price.

Future Prospects

The Indian branded jewellery market, though nascent, grew at the rate of 20-30% during 1998-2000. Besides Tanishq, other major players included Intergold, Gili and Carbon. However, in the Rs 400 billion Indian jewellery market, Tanishq's share was not even 1%.

Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity instead. The company planned to attain a 2% market share in the next few years. Kurian said, "The jewellery market is one of the largest consumer segments in the country. It has an estimated 2,50,000 retailers with no national or international brand and no corporate player.

Titan believes that this market is right for consolidation. A consumer-oriented, highly ethical corporate player will have great opportunity. Our growth rates in the past three years have fully substantiated this hypothesis." Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders. The Intranet was to contain a photo collection of all the designs in all the stores so that even those not in stock in a particular store could be ordered by customers. In a highly innovative move, Tanishq tied up with Countrywide Finance for providing pre-approved credit line to the customers at selective outlets. This was expected to boost sales significantly in the future. In May 2000, Tanishq unveiled plans to surpass its parent company's turnover by 2002. Jacob Kurian who had taken over as the CEO the same month, said, "We have finally figured out the jewellery business and should be solidly profitable, shorn of any caveat, this year."

Case Details

Case Code : MKTG013
Themes: Brand Management
Case Length : 6 Pages
Period : 1995-2001
Organization : Titan Industries India
Pub Date : 2001
Teaching Note : Available
Countries : India
Industry : Jewellery

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