TTK PRESTIGE
Presented By ARNAB DUTTA BALAJI PAVITRA
Company profile
It was in the year 1928 that T T Krishnamachari, the first finance minister of India. founded TTK Prestige.
TTK Prestige soon became the leading manufacture of Pressure cookers in India and offers the most comprehensive range of kitchenware.
Indias largest kitchenware company. IPO in 1994. 1500 strong human capital Two brands in the portfolio- Prestige and
Manttra 8 Manufacturing units Versatile distribution network
Indias most awarded company and brand
Star SME award for 2010
Consumer Durable Swot analysis
Strengths
1. Rise in Disposable Income 2. Easy-availability of consumer financing 3. Increasing share of Organized Retail 4. Consumer Preferences 1. 2. 3. 4.
Weakness
Electricity issue Poor networking system Globalization Poor geographic segmentation
1. Existing Potential in Rural Markets
1. Cheap imports from Asian Countries 2. Increasing competition 3. Fluctuating raw material prices 4. Continuously changing technology
Opportunity
Threats
Consumer Durable Sector
Consumer Durable Sales and Profits history
TTK Prestige
sales
900 775.58 800 700 600 516.8 500 416.21 339.85 400 293.25 300 200 100 0 90 80 70 60 50 40 30 20 10 0
profit after tax
83.75
52.44
20.67 22.38 11.77
All data are in crore
Kitchen Appliances
2010-11 Domestic export total Pressure Cookers (including microwave pressure cookers) Non-stick Cookware Kitchen Electric Appliances Gas Stoves Others Total 29192 2498 31690 2009-10 domestic export total 22515 1551 24066
15354 19292 8085 3027 74950
45 -------65 2608
15399 19292 8085 3092 77558
8714 10372 6106 2362 50069
11 --------49 1611
8725 10372 6106 2411 51680
PESTLE Analysis
Product Analysis
TTKs Market Position & Strengths
Leading player in the organized, branded pressure cooker market Enjoys strong brand equity, benefits from wide distribution reach Challenges Stiff competition from highly price competitive unorganized segment Vulnerable to input material price movements
TTKPs Market Position & Strengths Enjoys strong market position with ~35-40% market share Successfully leveraged on Prestige brand to expand its presence Challenges Stiff competition from both organised/branded & unorganised
TTKPs Market Position & Strengths Relatively new entrant & small player; market share ~8-9% Bajaj Elec. holds strong market position across categories Regular introductions and brand extension helping the Company Launched induction tops, gaining traction Challenges Stiff competition cheaper imports, limited scope for differentiation Establishing wide spread service network is imperative
TTKPs Market Position & Strengths Relatively small player; other players enjoy strong brand re-call Challenges Stiff competition cheaper unorganised segment Limited scope for differentiation
TTKs Competition Grid
Sales mix across different channel
TTKP has a pan India strong network of 25,000 direct dealers as on date. Given its product profile, its network compares fairly well with its closest peers like Hawkins, Bajaj Electrical, and Havells etc.
Analysis
1.
Domestic Sales registered a growth of 49.69% while exports registered a growth of 61.8%.
2. The traditional product categories, namely, Pressure cookers and Cookware registered a growth of approx 30% and 76% respectively in domestic market.
3.
The growth in non-traditional product lines like gas stoves and kitchen electrical appliances has been very impressive at 32% and 82% respectively.
4. The growth is driven predominantly by volume expansion and introduction of new models and products. With respect to certain product categories the growth can also be attributed to sales mix consisting more of value added items and improved market penetration.
Strengths 1. The product is treated as a matter of prestige which gave good brand image 2. Constant innovation in terms of product, marketing and promotion. 3. Prestige has the largest range of pressure cookers in the country 4. with years of trust, reliability and safety as our hallmarks 5. Price of these cookers ranges in all income group people. 6. An extensive distribution network consisting of over 200 stores in 110 towns. 7. Prestige is the only kitchen appliances brand in India to have its own exclusively branded outlets. 8. Online Shopping facility
weakness [Link] company's products are mostly restricted to the southern states in India.
2. Low entry barriers in the pressure cooker segment have led to increased competition from the unorganized players and regional brands, which compete with unviable low pricing strategies. Like preethy, pigeon etc.
3. Hawkins provide neck to neck competition in terms of market share. 4. No innovative marketing strategy been adopted so as to grab the market. Like consumers unaware of gas stove.
Opportunity
Threats
1. They have targeted newly married 1. Competitors -Futura cookers are being couples. As a promotion strategy, they offer planned to manufacture with Anodized wide range of their products with aluminum. reasonable discount as a single. 2. Wide range of availability of competitors 2. They have introduced exchange-policy. products.
3. They have mudra communications as their marketing agent which is a good opportunity to explore. 4. Recently, Safety techniques like Gasket Release System and the Gasket Offset Device add points in safe use for beginners. They will be able to tap potential consumers. 3. Unbranded cookers in market are swallowing 50 percent of market share.
Hawkins
sales
400 350 300 250 200 150 100 50 0
profit after tax
343.6
295.41 40 35 30 25 20 15 10 5 0
36.84 19.12 7.49
11.26
31.77
184.59
217.52
254.66
All data are in Crores
TTK Prestige Limited (TTKP) is positioned as the largest organized player in the fast-growing domestic kitchen appliances industry with a market share in access of 35-40% in the organized segment of the pressure cooker and non-stick cookware market.
BCG Matrix
High Low
Growth rate
Low
High
Market share
BCG Matrix
High Low
Induction cooker
Growth rate
High
Pressure cooker
Modular kitchen
Low
Non-stick cookware
Gas stove
Inner lid cooker
Kitchen Hoods and Hobs
Market share
Strategies taken by TTK
[Link] Penetration strategy- by increases the size of the purchase.
Example- buy one induction oven and get 4 non-sticks cookware for free.
2. Market Development Strategy- By entering new geographic market.
Example-To tap the rural market, TTK Prestige has formed a new business model involving NGOs and self-help groups to sell pressure cookers to rural India. The company hopes to boost its revenues from the rural market with the help of this model. 3. Product Development Strategy- by developing new or improved product for present market. Example- [Link] is the first to produce a microwave pressure cooker in India and is the worlds first CE marked microwave pressure cooker. In fact the company has applied for worldwide patent for this product. This product is expected to make cooking faster by around 30-40% than any other vessel in a microwave.
B. Unique-shaped Apple range of Inner-lid Pressure Cookers to specifically target the north and east t markets(predominantly inner lid markets) and to attract modern, young households. c. Launched induction cookers
Forward vertical Integration Strategy
Forward Integration- involves gaining ownership or increased control over
distributors. Example- TTK has a pan India strong network of 25,000 direct dealers as on date.
Advantages1. A secure supply of raw material or distribution channels. 2. Control over raw materials and others inputs required for production or distribution channels. [Link] to new business opportunities and technologies. 4. Elimination of need to deal with a wide variety of suppliers and distributors.
Conglomerate diversification strategy
TTK has taken conglomerate diversification strategy by accruing 6 different companies.
Summery
A well-known kitchen appliances company with leading
position in pressure cookers and non-stick cookware. Strong brand recognition and extensive distribution set up. Favourable demographics + enhanced reach + expansion in product range to sustain growth momentum. Positioned as a leading player in the domestic pressure cooker market with strong brand equity. Emerged as a total kitchen appliances company with presence across a range of products. Focus on innovation & regular product launches has strengthened TTKPs business profile & brand equity. Extensive distribution .
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