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 India’s GDP and having the biggest market capitalization in India.

The TATA group is India’s 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 World’s least expensive car (Tata Nano) India’s largest software company (TATA CONSULTANCY SERVICES)

India’s largest watch & jewelley manufacturing company (TITAN & TANISHQ)

BUSINESS OF TITAN INDUSTRIES…

WATCHES

EYEWEAR

JEWELLERY

PRECISION ENGINEERING

Currently

Marketing

Products in 26

countries with a larger

footprint in the Middle-

East and

Asia-Pacificregions

Brands:

• TITAN• SONATA• FASTRACK• XYLYS• RAGA• OCTANE• REGALIA• TITAN EYE+• ZOOP!• ZOYA• GOLD PLUS+

• TANISHQ

2008-2009, SUMMARISED REPORTS

(Rupees in Crores) Watches Jewellery Others Corporate Total

Sales / Income from Operations 946.19 2760.23 141.3 - 3847.72Less : Excise Duty 39.22 - 5.12 - 44.34Net Sales / Income from Operations 906.97 2760.23 136.18 - 3803.38Add : Other income 1.52 2.97 0.11 0.66 5.26Net Sales / Income from Segments 908.49 2763.20 136.29 0.66 3808.64Profit before interest and taxes 137.86 164.40 -24.11 -18.16 259.99Less : Interest 29.43Profit before taxes 230.56Less : Taxes for the year 60.68 Taxes of prev ious years 10.92Net profit after taxes 158.96

Source: INDIA BRAND EQUITY FOUNDATION REPORT, 2009.

0

500

1000

1500

2000

2500

3000

2006-07

2007-08

2008-09

1292

2027

2763

Inco

me

in R

s. C

r.

Year

TANISHQ

36%

JEWELLERY BUSINESS- TANISHQ 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

x Key players: Fragmented market, mainly retailer driven.

x Most retailers are unorganisedx Absence of hallmarking x Tanishq is the first branded

jewellery playerx Increased investment by

industry bodies (DTC, PGI, WGC) is spurring rapid growth of branded jewellery market in India

MARKET

PLAYERS

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

India’s 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

NETWORK

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

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 month’s instalment.

Scheme Type 11+1 18 month

You Pay 3000 3000

No of months 11 18

Total Paid33000 54000

Bonus 3000 3900

Total amount 36000 57900

Time periodafter 12 months

after 18 months

AdvantageBonus - 100%

of monthly instalment

Flexible deposits every

monthInstallment

Amount (Rs)

Bonus for 12 months scheme

Bonus for 18 months scheme

1000 1000 1300

2000 2000 2600

2500 2500 3250

3000 3000 3900

5000 5000 6500

10000 10000 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

segment of products, with varieties like bridal collection, party wear etc. Issue purity certificates along with items

Price Premium pricing of the product Price to vary as per the design and purity

Place Target markets of US, UK and Canada Target population - NRIs and fashion conscious Tie up with high-end retailers like Harrods, Cohls

Promotion Fashion Shows International Jewellery Fairs International Jewellery and Art Magazines

Action Plan Kick-start operations by securing export license Sell internationally in malls and high-end retail stores Promote the Tanishq brand through advertisements, reviews in magazines, news papers etc. Impose symbolic positioning of the brand during show- room innaugrations Experiential positioning by providing unique shopping ambience Station a resident trainee graphics designer in-store Enable computerized customization of designs Launch a website to increase visibility of the collections

THANK YOU

‘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