MARKET REVIEW FOR TANISHQ...

AMRITAKSHA DUTTAGUPTA

TANISHQ WHAT IS IT?

The company was founded in 1995 and is based in Bengaluru, India. Tanishq (India), Ltd. operates jewellery stores in India. It offers necklaces, finger rings, earrings, pendants, bangles, kadas, mangal-sutras, chains, and wedding sets.

Tanishq (India), Ltd. operates as a subsidiary of Titan Industries, Ltd

TITAN INDUSTRIES & THE TATA GROUP

Titan is a JV between TATA Sons & Tamil Nadu Industrial Development Corporation (TIDCO). Titan is a part of the TATA Group having a turnover of about USD 30 billion, equivalent to over 2.5% of Indias GDP and having the biggest market capitalization in India. The TATA group is Indias largest employer in the private sector 222,000+ employees across 85 companies The TATA group has achieved many Firsts for India:

First private sector Steel mill (TATA STEEL) First private sector Power utility (TATA POWER) First luxury hotel (Taj Hotel) First Airline (now Air India) The Worlds least expensive car (Tata Nano) Indias largest software company (TATA CONSULTANCY SERVICES)

Indias largest watch & jewelley manufacturing company (TITAN & TANISHQ)

BUSINESS OF TITAN INDUSTRIES

Currently Marketing Products in 26 countries with a larger footprint in the MiddleEast and AsiaPacific
WATCHES

Brands:
TITAN SONATA FASTRACK XYLYS RAGA OCTANE REGALIA TITAN EYE+ ZOOP! ZOYA GOLD PLUS+ TANISHQ

EYEWEAR

JEWELLERY

PRECISION ENGINEERING

2008-2009, SUMMARISED REPORTS

(Rupees in Crores) Watches Jewellery Others Corporate Total

TANISHQ 3000 2500

Income in Rs. Cr.
2027 1292 2763

Sales / Income from Operations 946.19 Less : Excise Duty 39.22 Net Sales / Income from Operations 906.97 Add : Other income 1.52 Net Sales / Income from Segments 908.49 Profit before interest and taxes 137.86 Less : Interest Profit before taxes Less : Taxes for the year Taxes of prev ious years Net profit after taxes

2760.23 2760.23 2.97 2763.20 164.40

141.3 5.12 136.18 0.11 136.29 -24.11

3847.72 44.34 3803.38 0.66 5.26 0.66 3808.64 -18.16 259.99 29.43 230.56 60.68 10.92 158.96

2000

1500 1000 500 0

36%

200607

200708

200809

Year

Source: INDIA BRAND EQUITY FOUNDATION REPORT, 2009.

JEWELLERY BUSINESS- TANISHQ

MARKET

x
x x x x

PLAYERS

Size of Market: Rs. 80,000 crores. Urban Market- 38% of this base. Branded jewellery is <10% of the market. Product Mix: Largely plane 22 karat with gem set jewellery constituting less than 10% of the market Key players: Fragmented market, mainly retailer driven. Most retailers are unorganised Absence of hallmarking Tanishq is the first branded jewellery player Increased investment by industry bodies (DTC, PGI, WGC) is spurring rapid growth of branded jewellery market in India

TANISHQ- A BRIEF OVERVIEW

Strongest and most inspirational brand in the jewellery category Awarded most admired brand and Retailer of the year by Images Fashion Enjoys a market share of over 40% in branded jewellery Indias only national jewellery retailer 117 stores in 70 towns prime high street locations Many of these stores are run by franchisees Over 1.5 million customers shopped at Tanishq last year

BRAND

NETWOR K CONSUMER BASE

MARKET SEGMENTATION

Tanishq targets the mid-premium segment in retail of jewellery business. (premium segment by ZOYA, mass segment by GOLDPLUS+) Cater with superior craftsmanship, design expertise, product innovation, and guaranteed quality. Gold jewellery in 22k pure gold, Also make platinum jewellery, with diamond and other precious stones. Innovated karat meter, the only non-destructive method to check purity of metal and jewellery. No astrology division. To promote glamour value of metals (gold) besides its status as a secure source of investment.

BRANDING

Strategic tie-up with organisations like DTC & WGC. Sponsors of the three crowns for PONDS FEMINA MISS INDIA 2009 Beauty Pageant. Launching a new product-line to keep in regular time intervals, to keep the interest of the customers, latest being ZOYA, a collection of diamonds with kundan/polki. Special showcasing on purity and craftmanship. Zodiac Rings & Bhagwad-Gita pendants on offer. Brand ambassador: Amitabh Bachchan. State-of-art factory at Hosur, virtual tour through website. Online tracking of jewellery, all designs have specific codes. Value-added-services.

MARKET MIX
Experience

products, experience

Scheme Type You Pay No of months Total Paid Bonus Total amount Time period

11+1 3000 11 33000 3000 36000

18 month 3000 18 54000 3900 57900

services Gold Harvest Savings Scheme Selling Gift Vouchers Gold & Silver coins Free Gold Purity Testing! Collection for weddings, birthdays, specific occasions (Valentines Day, Anniversary) Custom made jewellery on offer (to cater individual needs) Provision of savings account transfer!! Scope of missing a months instalment.

after 12 months after 18 months Bonus - 100% of monthly Flexible deposits instalment every month Advantage Installment Bonus for 12 Bonus for 18 Amount (Rs) months scheme months scheme

1000
2000 2500 3000 5000 10000

1000
2000 2500 3000 5000 10000

1300
2600 3250 3900 6500 13000

FUTURE STRATEGIES

With a view to expand in the estimated INR 1,000 billion Indian jewellery market, Tanishq will come out with specific traditional collections to cater to brides from the regional communities. To maximise the Tanishq brand presence across regional markets in India. Large format outlets are intended to act as a one-stop solution and enhance sales. At present, Tanishq offers only standard jewellery in its wedding range. The brand is planning an expansion of its retail business in order to cross the INR 30 billion sales mark by the end of fiscal year 2010.

The company will be opening a total of 17 more Tanishq boutiques in 2010 and its major focus will be on large format stores of over 4,000 sq ft, as against the currently existing ones which have an area of around 2,500 sq ft.

GLOBAL BRANDING STRATEGY, 2010-11

Product Focus on ethnic Indian jewellery Indian and International Action Plan Kick-start operations by securing export license Selletc. segment of products, with varieties like bridal collection, party wear internationallycertificates along with items stores Promote the Tanishq Issue purity in malls and high-end retail brand through advertisements, reviews in magazines, news papers etc. Impose symbolic positioning of the brand during show- room innaugrations Experiential the product by Price to vary as per the design and Price Premium pricing of positioning providing unique shopping purity ambience Station a resident trainee graphics designer in-store Enable computerized customization of designs Launch a website to increase visibilitymarkets of US, UK and Canada Target population - NRIs Place Target of the collections and fashion conscious Tie up with high-end retailers like Harrods, Cohls Promotion Fashion Shows International Jewellery Fairs International Jewellery and Art Magazines

A TATA PRODUCT IN INDIA, NOTHING INCURS MORE TRUST THAN THIS TAGLINE -JEHANGIR RATAN DADABHOY TATA, EX-GROUP CHAIRMAN, TATA SONS.

TANISHQ: TA: First two letters of TATA; NISHQ (NISHK: Gold, in sanskrit). SIGNIFIES: LOVE [ISHQ] YOUR TATA GOLD

THANK YOU