Tanishq Jewellery कैसे कमाता है सालाना ₹23,268 करोड़? | Tata Case Study Ep 2 | Rahul Malodia

Summary

The script discusses Titan Company, a part of the Tata Group, highlighting its journey from a watch-making business to a leading jewelry brand in India. It emphasizes the company's strategic moves, such as launching the Tanishq brand, focusing on customer needs, and improving employee productivity through initiatives like the 'Karigar Park'. The story illustrates how Titan turned a potential loss into a profitable venture by understanding the market and valuing its employees.

Takeaways

• 😀 Titan, one of the Tata Group's Navratna companies, started with watches in 1999 and has seen a significant return on investment, offering 60,000% return.
• 🔍 Titan's success story includes the transformation of Rakesh Jhunjunwala, highlighting the company's impact on individuals and its 25% contribution to his total network.
• 💎 Titan is not just a watch company; it also deals in eyewear, jewelry, and the jewelry segment contributes 88% to Titan's total sales.
• 🌟 The Tanishq brand, part of the Titan group, is a significant contributor to the company's success, focusing on jewelry sales.
• 🚀 Despite initial struggles, Titan managed to turn around its fortunes, achieving sales of 23,268 crore rupees and generating 2.5 thousand crore in cash annually.
• 🏭 Titan's manufacturing strategy involved starting a jewelry segment to overcome financial challenges, adapting to market needs and regulations.
• 💼 The company's focus on employee welfare, including health checks and financial support, has been a key factor in its productivity and success.
• 💡 Titan's marketing strategies, such as using celebrity endorsements and movie placements, have helped build brand recognition and trust among consumers.
• 🏪 Titan's retail expansion strategy, including the launch of mega showrooms and focusing on various customer segments, has contributed to its growth.
• 💍 The company's innovative approach to product launches, such as the Golden Harvest scheme and the introduction of light jewelry for working women, has broadened its market reach.
• 💬 Titan's commitment to customer satisfaction and employee welfare demonstrates a holistic business approach that values both internal and external stakeholders.

Q & A

What is Titan Company and how did it start?

Titan Company is one of the Navratna companies under the Tata Group. It was launched in 1999 with its first product, watches. If someone had invested 1 lakh in its shares at that time, the value today would be around 60 crores, indicating a return of 60,000%.

What is the significance of Titan's jewelry segment in its total network?

Titan's jewelry segment is a significant part of its total network, contributing to 25% of its business. The jewelry brand under Titan is Tanishq, which alone accounts for 88% of Titan's total sales.

Why was the launch of Tanishq considered a necessity and not just a strategy?

The launch of Tanishq was considered a necessity due to the financial struggles Titan faced initially. The company had to diversify its product offerings to survive, and jewelry was a natural extension of their watch business.

What challenges did Titan face in the early years of its jewelry business?

In the early years, Titan faced significant challenges, including a 5-year period of severe losses. The company accumulated a loss of 150 crores by the year 2000, leading to discussions about shutting down or selling the business.

How did Titan manage to turn around its fortunes after the economic liberalization of 1991?

After the liberalization of the Indian economy in 1991, Titan was able to access more foreign exchange, which helped them import equipment and materials for their watch and jewelry business. This, along with the decrease in oil prices, eased the financial pressure and allowed Titan to invest in its business.

What was the impact of the introduction of the 'Masterstroke' machine on Titan's jewelry business?

The 'Masterstroke' machine significantly improved the purity testing of jewelry, which was a major concern for consumers. This innovation helped build trust and confidence in Titan's jewelry, leading to increased sales.

How did Titan's marketing strategies contribute to the success of Tanishq?

Titan used effective marketing strategies, including celebrity endorsements and product placements in popular movies like 'Padmavati', to create a strong brand image for Tanishq. This helped in gaining customer trust and increasing market share.

What was the significance of the 'Golden Harvest' scheme launched by Titan?

The 'Golden Harvest' scheme was a financial plan that allowed customers to save a certain amount every month towards purchasing gold jewelry. This scheme helped in increasing sales and customer engagement by providing a flexible and affordable way to buy jewelry.

How did Titan address the issue of employee productivity and satisfaction in its manufacturing units?

Titan introduced the 'Karigars' Park', a facility that provided a comfortable working environment with modern equipment, training, and amenities. This initiative not only improved employee productivity but also their overall satisfaction and loyalty.

What was the role of the 'Mr. Perfect' program in improving the quality and efficiency of Titan's manufacturing process?

The 'Mr. Perfect' program was an initiative aimed at providing all necessary resources and training to the craftsmen in the 'Karigars' Park'. This program helped in reducing manufacturing time, improving product quality, and increasing overall efficiency.

How did Titan's expansion strategy contribute to its growth and success?

Titan's expansion strategy involved launching new products, brands, and retail outlets. They opened mega showrooms in major cities and introduced a variety of jewelry collections catering to different customer segments. This strategy helped in reaching a wider audience and increasing sales.