Lecture Notes: The Story of Tanishq

Overview

• Main Topic: The rise of Tanishq from near shutdown to becoming a profitable jewelry brand.
• Key Focus: Understanding the evolution, challenges, and strategies that led to Tanishq's success.

Early Days of Titan and Tanishq

• Titan's Origin:

  • Titan launched in 1984 with iconic watches, dominating the Indian market.
  • Expansion into other industries, including gold jewelry.

• Tanishq Launch:

  • Launched in 1996 by Titan to capture the gold jewelry market.
  • Initial strategy focused on design and craftsmanship with 18 karat gold.

Challenges Faced by Tanishq

• Initial Struggles:

  • Low sales and increasing losses due to consumer preference for 22 karat gold as an investment.
  • Losses amounted to 150 crores from 1996 to 2001.

• Market Perception:

  • Consumers preferred local, trusted Jewelers.
  • Concerns over purity and investment value of jewelry.

Strategic Changes and Innovations

• Carat Meter Introduction:

  • To address purity concerns, Tanishq introduced carat meters for testing gold purity.
  • This move was instrumental in increasing footfall despite revealing local Jewelers' impurities.

• Customer Feedback and Adaptation:

  • Realized the need to not only inform but also solve customers' problems.
  • Introduced "Impure to Pure" scheme allowing exchange of impure gold for Tanishq jewelry.

Turning Point and Growth

• Revamping Strategy:

  • Shifting focus to 22 karat gold in stores.
  • Enhanced customer trust and satisfaction through direct problem-solving.

• Business Expansion:

  • Tanishq introduced sub-brands for specific segments:
    • Mia: For working women.
    • Rewa: Wedding jewelry.
    • Raga: Jewelry-styled watches.
  • Acquired Carat Lane, an online jewelry platform.

Current Success

• Market Position:
  • Transitioned from loss-making to generating $3 billion in annual revenue by last year.
  • Stock market success, rising from 2 rupees in 2003 to 2700 rupees.

Key Learnings

• Customer Engagement:
  • Importance of direct consumer feedback to improve business strategies.
  • Adaptive problem-solving based on customer insight can transform a business.

Conclusion

• Tanishq's Story:
  • Represents resilience, innovation, and the power of listening to customer needs.
  • A valuable case study of turning challenges into opportunities for success.