Tanishq – The Turnaround Story

FUTURE PROSPECTS Contd...

Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders. The Intranet was to contain a photo collection of all the designs in all the stores so that even those not in stock in a particular store could be ordered by customers. In a highly innovative move, Tanishq tied up with Countrywide Finance for providing pre-approved credit line to the customers at selective outlets. This was expected to boost sales significantly in the future.

In May 2000, Tanishq unveiled plans to surpass its parent company's turnover by 2002. Jacob Kurian who had taken over as the CEO the same month, said, “We have finally figured out the jewellery business and should be solidly profitable, shorn of any caveat, this year.”

QUESTIONS FOR DISCUSSION:

1. Comment on the reasons behind the initial failure of Tanishq. Do you agree that the concept of branded jewellery was too futuristic even in 1995?

2. Briefly discuss the corrective measures taken by Tanishq to make a success of the branded jewellery business.

3. Explain how the usage of Karatmeters helped Tanishq combat competition from traditional jewellers.

ADDITIONAL READINGS & REFERENCES:

1. Tanishq's retail reach to double by 2000, Mukta Magazine, November 3, 1999.
2. Titan to have uniform gold price, Business Standard, February 19, 2000
3. Thakur Punam, Shining through, Business India, March 6, 2000.
4. Bhushan Ratna, Tanishq plans four-pronged marketing approach, Business Line, May 3, 2000.
5. Kapoor Neha, Branded jewellery market en route to gaining maturity, Business Line, May 5, 2000.
6. Natarajan Nikhila, Titan Industries unwraps jewellery thrust, Business Standard, May 23, 2000.
7. Joseph K. Mini, Former Titan ‘Tanishq'team floats Oyzterbay.com for branded jewellery, Financial Express, July 18, 2000.
8. Zachariah Reeba & Dutta Rumi, Titan shelves Tanishq demerger plan, Business Standard December 8, 2000.
9. Tanishq rolls out silver collection, Financial Express, February 15, 2001.
10. Titan Industries Jewellery foray pays off, Financial Express, July 05, 2001.
11. Bose Sushmita, The Midas touch, Business Standard, July 31, 2001.

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