The jewellery division of watch major Titan Industries Ltd has unveiled a new marketing strategy with plans to overtake the watch business turnover within the next two years and an immediate target to achieve a 400 per cent growth in profits during 2000-2001.
"We have finally figured out the jewellery business and should be solidly profitable, shorn of any caveat, this year," Jacob Kurian, chief executive officer of Titan's newly constituted jewellery business unit, said.
Tanishq, which made an operating profit for the first time last year, is also increasing its advertising spend significantly this year.
"Last year, the Tanishq advertisements hammered away at the 'trust' line which worked very well for us in terms of actually driving traffic and sales, and we will have to build on that now," Kurian said.
The increased adspend will also look at drumming in the concept of Tanishq as a jewellery brand, something that is still curbed by the earlier perception of Tanishq as Titan's gold watch line.
Recently, Titan's businesses have broken into two distinct units - time keeping and jewellery - along with a significant top level managerial reshuffle.
"Looking ahead, both businesses face different challenges. Titan has no significant local competition and a huge market share. New competition coming in will help grow the market, our volumes will continue to grow, but the high market shares we have will come down to more rational levels," Kurian said.
On the other hand, Tanishq is really starting out only now. With a minuscule market share at present, the only way for it to go is up, says Kurian.
Tanishq is also looking at expanding its exclusive boutiques to 51 by year-end from the present level of 37.
"We have covered all the large towns and are now into smaller towns like Raipur and Meerut.We are also in discussions with the Taj Khazana chain to establish a shop-in-shop to fuel further growth," Kurian said.
While the bulk of Titan watches and clocks sell through multi-brand stores, Tanishq does its business purely through exclusive boutiques, so the company is also looking at multiplying Tanishq outlets within key cities such as Delhi, Mumbai, Bangalore, Hyderabad, and Chennai.
Starting out with contemporary designs, Tanishq now has a very comprehensive, traditional 22 carat jewellery line that compares well with any traditional Indian jeweller, Kurian said.
"Because we launched with 18 carat, there is a perception that we are not strong in the 22 carat line. But, nationally, we are selling more 22 carat than 18 carat," Kurian said.