Dheeraj | Somesh | Rahul | Rhea | Ritik Group 5

Question 1 Question 2 Question 3 Question 4

How do Titan’s recent new business launches – Eye+, Fastrack, and Gold Plus – differ from its original new
entry into jewellery (Tanishq)?

Strategy Titan Hexagon

• Unique value offered
• New customer segment to match the value
• Choosing best resource to deliver value to
customers
• Revenue stream should match value
Evaluation of new business launch based on few
conditions –
• Match the design and fit of the company
• Not to focus of cost as the fundamental driver
• Focus on new market categories

Employee’s Brain-Child
• New launches was a product of Future Shock
Program
• Launched by a team of 200 employees
• Focus on new business opportunities
• ‘Strategy is not decided in board room, but by
employees’
 Question 1 Question 2 Question 3 Question 4

What are the pros and cons of Titan’s current approaches to launching a new business? What is your
assessment of the Titan Hexagon?

Pros Cons Titan’s current method – The Titan

• Considers the competitive space
and evaluates elements of the
competitive space before
attempting to penetrate the
market.
• Considers the core competencies • Primary consideration is high
of the company and the brand
image(i.e. that it is a lifestyle
products company, provides items
of personal adornment)
• It is a collective process, built from
within the company, thus
employee engagement and skill
building becomes an additional
advantage.
• Shows preference to penetrate
only low competition areas. For
the company to be one of the top
players overall, it needs to aim at
more competitive markets.
margins/returns, but that may not
be so easy with consumer
products.
Hexagon:
1. It must be an unorganized, not regulated
category
2. It must be a personal product
3. The category must be amenable to
branding
4. Design should be an important element
in the purchase consideration
5. Cost should not be an important driver
6. The category should not be intensively
competitive. 
Assessment - Leaves a lot to be debated, and
the current success can be attributed to the
appropriate evaluation by the CEO and
executives. It cannot be considered a
foolproof framework, but does provide a
structure for evaluation.
 Question 1 Question 2 Question 3 Question 4

Do the profit and loss statement and the balance sheet suggest that Titan is following the right strategy?

• CAGR of Revenue in the last decade : 26.5%

• CAGR of Revenue last 5 years : 20%
• Growth rate last year (y-o-y) = 8.9% (Industry is expected to grow at similar rates)

Company Revenue Profit Margin (%) P/S

Titan 120,000 6.8 2.89

Gitanjali Gems Ltd. 72098 0.26 0.055

PC Jewellers Ltd. 64077 5.9 0.88

Rajesh Exports Ltd. 504630 1.29 0.13

• Titan’s profit margins are higher than its competitors

 Question 1 Question 2 Question 3 Question 4

Under what conditions does it make sense for a company to stop exploring for new businesses and focus
instead on exploitation?

• Exploitation is focused on short-term

goals

• Large potential market

• High Barriers to entry

• It is possible to increase the profit

levels by cost optimization or
economies of scale