GUIDELINES:

 INTRODUCTION – what are diamonds, luxury good, emergence of diamonds as

precious stones chose over other jewels, how is it different from gold and other metals,
used for ornamental purposes.
 METHODOLOGY – what is a case study, why is case study the best method to study
this topic (secondary sources of information).
 FOCUS OF THE PROJECT –understanding the demand business, demand elasticity
of diamonds, understanding the luxury category of demand drivers, how are the
products different from one another and what audience do they cater to, impact of
product differentiation, the economic opportunity available in TAM (total addressable
market), is the demand of diamonds unit based or value based.
 FACTORS OF DEMAND OF LUXURY PRODUCTS – perceived value of the product,
uniqueness, quality, craftsmanship, protection & trust.
 PERCEIVED VALUE OF THE PRODUCT - heritage / historical value, investment/
saving, marketing strategies, economic trading value, status symbol, cultural norms,
ornamental value.
 TANISHQ & TIFFANY – introduction, history, % of diamond business, production
differentiation, notable marketing campaigns and how they changed the
demographics, 10 years growth and time around the recession period (2002 – 2012),
their standing today.
 CONCLUSION – scope to cater to more no. of people, diving into different divisions,
change in the aggregate demand with respect to India.
 CERTIFICATE

This is to certify that Miss Gargi Parkhe and Miss Maitri Vikram Singh, students of Ramnarain
Ruia College, FYBA, Division B have successfully completed their Economics Project on the
topic - Demand analysis of two jewellery brands : Tanishq and Tiffany & Co. This project is
completed under the guidance of Mrs. Varsha Malwade.

_________________________________
Mrs. Varsha Malwade
 ACKNOWLEDGEMENT

We would like to express our gratitude towards our Principal Dr. Anushree Lokur and Vice –
Principal Dr. Sucheta Ketkar, and our teacher Mrs Varsha Malwade for giving us the
opportunity to work on the project topic:
“Demand analysis of two jewellery brands: Tanishq and Tiffany & Co.”

This project required thorough research and analysis, which in turn deeply enriched us with
valuable knowledge that will help us in our future endeavours.
Index
PRODUCT DIFFERENTIATION & DEMAND ANALYSIS OF TANISHQ & TIFFANY & CO.

INTRODUCTION: DIAMONDS

A diamond, from the Ancient Greek: adámas, means "unbreakable", "proper", or

"unalterable", is one of the best-known and most sought-after gemstones.
The hardness of diamond and its high dispersion of light—giving the diamond its
characteristic "fire"—make it useful for industrial applications and desirable as jewellery.

Diamonds are such a highly traded commodity that multiple organizations have been
created for grading and certifying them based on the "four Cs", which are colour, cut,
clarity, and carat. Other characteristics, such as presence or lack of fluorescence, also
affect the desirability and thus the value of a diamond used for jewellery.

The first example of a diamond’s use in jewellery was in the form of a Hungarian queen’s
crown in 1074 AD. After that, the diamond became used in many crowns and royal jewels.
The first documentation of diamond cutting in Europe dates back to 1407 in Paris where
there was an active guild including jewel cutters. In documentation involving the guild there
were references to a diamond cutter named Herman. In 1458 Belgium a mad discovered
that diamonds could be cut using their own dust. The same man also invented a diamond
polishing wheel and first proposed symmetrically aligning the facets when cutting a
diamond.

The first known diamond engagement ring was gifted to Mary of Burgundy in 1477 by
Archduke Maximilian of Austria, thus marking the beginning of the tradition.
In 1866 the first diamond mines were discovered in South Africa by a child playing in a
river who found coloured stones. It was realized that one of the stones was a diamond.
The gem that was cut from the rough stone was aptly named the “Eureka” diamond. Since
the eureka moment, South Africa has been a major location for diamond mines and many
mines have been discovered throughout the world.
Today, in the simplest of economic terms diamonds are considered to be “luxury goods”.
The diamond market continues to grow rapidly and the jewellery plays a major role as it is
incorporated into the lives of a large sum across the globe due to its ornamental value.
METHODOLOGY
A Case study is a research methodology, typically seen in social and life sciences. There
is no one definition of case study research. However, very simply, ‘a case study can be
defined as,a method that provides a ground for generalization of data, for illustrating
statistical findings. It is a comprehensive method of data collection in social research. 

For this project, the ‘case study’ method has been put to use, as we carried out an in
depth and extensive study of the organizations, their history, their financials and their
campaigns. We compiled the data together to make a comparative analysis of the two and
to understand their changes in demand over the specified time period.
FOCUS OF THE PROJECT

Since the pre-historic times, man has found ways to adorn himself with pretty looking
flowers, stones, animal skins and shells. With the human evolution man continues to do
the same with precious metals and jewels cut and designed intricately to fit his
requirements.

In India specifically the demand for gold is higher than any other country in the world.
Jewellery in the Indian market not only holds an economic value but also a cultural, social
and religious value. Weddings, festivals, status quo or just investments for that matter,
Indians always find a reason to buy precious metals, being a democracy of a multi –
religious population, the choices of every consumer vary greatly, making India a perfect
consumer for personalized, handcrafted jewellery.
Not only that, but with the integration of world economies, now Indians invest hefty sums
into contemporary designs and not just traditional ones. Although oriented towards gold
greatly, diamonds are becoming a popular choice as well, setting the bar for the Indian
jewellery retailers the same as that of international brands such as tiffany’s, Cartier,
Swarovski’s, as India the fastest growing economy this makes this case study an
interestingly diverse.
The main objective of this project is to understand the demand for diamonds in India and
USA. It caters to questions such as ‘how are the products different from one another? Is
the demand of diamonds, unit based or value based?’ and ‘what audience do they cater
to?, learning about the impact of product differentiation and the most important of all, the
economic opportunity available in TAM (total addressable market).
DEMAND DRIVERS FOR LUXURY PRODUCTS

Demand is an economic principle referring to a consumer's desire to purchase goods and

services and willingness to pay a price for a specific good or service. Holding all other
factors constant, an increase in the price of a good or service will decrease the quantity
demanded, and vice versa. Market demand is the total quantity demanded, across all
consumers in a market for a given product. Aggregate demand is the total demand for all
goods and services in an economy.

Businesses often spend a considerable amount of money to determine the amount of

demand the market has for their products and services. How much of their goods will they
actually be able to sell at any given price? Incorrect estimations either result in money left
on the table if demand is underestimated or losses if demand is overestimated. Demand is
what helps fuel the economy, and without it, businesses would not produce anything.
The demand drivers of luxury goods differ from regular goods and basic necessities. The
following are the factors of demand for luxury goods:

 UNIQUENESS – Today, with the heavy influx of similar products in the market, a
consumer craves for something that not only satisfies his needs, suits his means but
also differs from goods that are easily available. This, in terms of jewellery buying
plays a huge role, for example: engagement rings, tie two people in a rather special
bond for life. Most couples would prefer to for an uncommon option that speaks to
them rather than basic designs.

 QUALITY – High quality is the essential element of luxury products. High quality is the
result of creativity, colours, shapes, craftsmanship and attention to detail. A buyer
usually invests in a luxury product for the sake of the guarantee of a superior quality in
a commodity that comes with it.

 CRAFTSMANSHIP – Luxury helps us feel special in every moment of our lives and
helps us dream. Craftsmanship is the key. A craftsman is not just someone who works
with his hands, but an expert who performs his work with excellence. He has a deep
personal commitment to the final product, pays attention to detail and is innovative.
This, in itself is an incentive for a buyer to purchase hand crafted goods.

 BRAND LOYALTY & TRUST – Brand loyalty is the tendency of some consumers to
continue buying the same brand of goods rather than competing brands. This could be
due to their past experiences with the goods of the brand in question or because their
trust in a well-established brand. This brand loyalty plays a major role when one
decides to invest / buy jewellery as the authenticity of the gemstones is the buyer’s
prime concern.

 PERCIEVED VALUE OF THE PRODUCT - In marketing terminology, perceived value

is the customers' evaluation of the merits of a product or service and its ability to meet
their needs and expectations, especially in comparison with its peers. This is the most
defining driver that determines the demand and therefore, can be further broken down
into more factors –

1. Heritage / historical value: Heritage or historical values refer to as the

economic value of a good based on its authenticity and its significance in the
past.

2. Investment/ saving: Many consumers across the globe invest into luxury
products out of interest and pure fascination which proves to be economically
useful. For example – paintings and automobiles.
3. Marketing strategies: marketing campaigns of high – end brands or luxury
products are usually elegant, minimalist, and make the buyer believe in their
work ethic, quality of the craftsmanship and their deals aim to lure the upper-
middle class and the rich into making purchases.

4. Economic value: Economic value can be described as a measure of the

benefit from a good or service to an economic agent. It is typically measured in
units of currency. Another interpretation is that economic value represents the
maximum amount of money an agent is willing and able to pay for a good or
service. This characteristic plays a major role in terms of bidding events.

5. Status symbol:A great sum of the population believes in the line of division
between the rich and the poor and further feed onto this growing gap. Owning
luxury products directly makes one perceive that the other holds a higher status
in the society.

6. Cultural norms: the world comprises of a population that is multi- cultural,

what is important to one might be of no use to another, therefore, norms
influence the perceived value of a good.
TANISHQ BY TITAN

Tanishq is India's largest and most trusted jewellery brand with over 274 opulent stores in
more than 160 Indian cities. It is a division of Titan Company, promoted by the Tata Group in
collaboration with the Tamil Nadu Industrial Development Corporation (TIDCO). Tanishq's
headquarters is at Bengaluru (Bangalore) in Karnataka.

Tanishq has emerged as India’s fastest growing jewellery brand and is a name which signifies
superior craftsmanship, exclusive designs and superlative product quality. The term Tanishq
was coined by Mr. Xerxes Desai by marrying the words ‘Tan’ meaning body and ‘Nishk’
meaning a gold ornament.

With retail sales of over Rs. 10,000 crores in the last financial year, Tanishq continues to rule
the jewellery segment in India.
Tanishq as a brand is very consumer oriented, one can say that one basis of their excellent
schemes to make high-end jewellery available for the general public and the easy to carry yet
flawless jewellery designs which range from jewellery for everyday to jewellery for formal
events. The choices given to a buyer are never ending.

 Performance Timeline

By the end of the 1980s, the Titan Company launched Tanishq in an attempt to earn its own
foreign exchange, focused largely on exports. In the early 1990s, India's exchange issue was
fixed, and the Titan Company chose to focus the brand on the Indian market. The first
production plant launched in August 1992, and Tanishq's first store opened in 1996.
Tanishq was the first jewellery retail brand in India.

The first years of Tanishq recorded consistent losses. In 2000, Managing Director Xerxes
Desai chose Bhaskar Bhat to succeed him. Starting in 2000, its net worth started to grown,
and by 2003, Tanishq was among the top 5 retailers in India, and made up 40% of the Titan
group's revenue.

In the early 2000s, Tanishq opened stores internationally, in the Middle East and in the United
States (Chicago and New Jersey), but closed them before the end of the decade.

Tanishq made the beauty pageant crowns for the Femina Miss India 2007. By 2008, Tanishq
had 105 stores in 71 cities in India.In 2011, the Tanishq group launched the sub-brand called
Mia for working women. In November 2012, Tanishq reached a landmark when it opened its
150th showroom in India.

In April 2014, the brand started to export to the United Arab Emirates. In July 2014, Tanishq
announced it ceased its gold deposit schemes to comply with the Companies Act 2013,
schemes that enabled its clients to save up to buy gold,but launched it back just a few months
later in a format that complied with the new laws.

By June 2014, Tanishq had 167 retail stores nationwide, and announced the opening of 30
more by the end of 2015. In May 2015, Tanishq enrolled Deepika Padukone to be the brand's
ambassador.

In 2017, Tanishq launched a sub-brand called Rivaah targeting the wedding segment. In
January 2017, the Titan group merged its Gold Plus stores with the larger Tanishq retail
brand.
In April 2017, Tanishq launched the sub-brand Mirayah to cater to women under their 40's.
In December 2017, Tanishq launched the Aveer line, its first line of products for men.
Tanishq is currently in a partnership with CaratLane which is the biggest online
jewellery company in India, it recently opened 6th store in Bangalore and 39th in country. It
was founded by Mithun Sacheti and Srinivasa Gopalan in 2008.
CaratLane's inventory includes diamond jewellery and gold coins.
Tanishq earns about 30 % of its profits from the sales in diamond jewellery.
Consolidated Yearly Results of Titan Company -------------------
in Rs. Cr. --------
-----------
Mar '19 Mar '18 Mar '17 Mar '16 Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
Net Sales/Income from operations 19,592.06 15,946.49 12,978.86 11,275.89 11,800.99 10,815.08 10,009.05 8,838.38 6,521.64 4,675.00
Other Operating Income 186.46 173.28 -- -- 112.42 100.71 103.62 0.9 -- --
Total Income From Operations 19,778.52 16,119.77 12,978.86 11,275.89 11,913.41 10,915.79 10,112.67 8,839.28 6,521.64 4,675.00
EXPENDITURE
Consumption of Raw Materials 12,230.63 10,452.82 8,572.71 7,415.94 7,831.92 6,558.78 6,772.92 6,145.08 4,454.66 3,148.90
Purchase of Traded Goods 2,940.03 2,212.01 1,170.16 956.23 1,123.94 1,591.42 1,555.09 1,160.68 -- --
Increase/Decrease in Stocks -776.41 -978.61 -313.71 -191.43 -204.37 -99.57 -812.88 -761.86 -500.28 -111.66
Power & Fuel -- -- -- -- -- -- -- -- -- --
Employees Cost 1,019.27 885.08 793.86 696.28 632.46 534.49 484.52 392.34 392.96 274.49
Depreciation 162.84 131.43 110.53 98.19 89.57 65.59 54.49 44.9 34.48 60.08
Excise Duty -- -- -- -- -- -- -- -- -- --
Admin. And Selling Expenses 599.2 493.99 462.95 429.47 382.13 404.43 377.09 381.42 303.27 211.15
R & D Expenses -- -- -- -- -- -- -- -- -- --
Provisions And Contingencies -- -- -- -- -- -- -- -- -- --
Exp. Capitalised -- -- -- -- -- -- -- -- -- --
Other Expenses 1,774.31 1,409.79 1,137.40 1,034.66 998.93 877.8 725.3 687.78 1,284.67 756.58
P/L Before Other Inc., Int., Excpt. Items & Tax 1,828.65 1,513.26 1,044.96 836.55 1,058.83
982.85 956.14 788.94 551.88 335.46
Other Income 182.94 88.86 70.49 73.92 70.75 120.19 100.77 93.21 55.33 11.28
P/L Before Int., Excpt. Items & Tax 2,011.59 1,602.12 1,115.45 910.47 1,129.58 1,103.04 1,056.91 882.15 607.21 346.74
Interest 52.54 52.92 37.74 42.36 80.69 87.11 50.64 43.71 8.21 25.42
P/L Before Exceptional Items & Tax 1,959.05 1,549.20 1,077.71 868.11 1,048.89 1,015.93 1,006.27 838.44 599 321.32
Exceptional Items -- -16.65 -102.69 -- -- -- -- -- -- --
P/L Before Tax 1,959.05 1,532.55 975.02 868.11 1,048.89 1,015.93 1,006.27 838.44 599 321.32
Tax 568.24 427.87 275.97 191.59 232.64 261.69 281.09 238.29 165.36 68.08
P/L After Tax from Ordinary Activities 1,390.81 1,104.68 699.05 676.52 816.25 754.24 725.18 600.15 433.64 253.24
Prior Year Adjustments -- -- -- -- -- -13.1 -- -- -3.22 -2.92
Extra Ordinary Items -- -- -- -- -- -- -- -- -- --
Net Profit/(Loss) For the Period 1,390.81 1,104.68 699.05 676.52 816.25 741.14 725.18 600.15 430.42 250.32
Minority Interest 15.5 28.18 14.19 -- -- 88.78 88.78 88.78 44.39 44.39
Share Of P/L Of Associates -2.16 -2.77 -1.77 -2 0.01 2,435.18 1,876.09 1,361.12 980.99 679.99
Net P/L After M.I & Associates 1,404.15 1,130.09 711.47 674.52 816.26 210 210 175 250 --
Equity Share Capital 88.78 88.78 88.78 88.78 88.78
Reserves Excluding Revaluation Reserves 5,981.37 4,998.46 4,144.26 3,417.50 2,995.09
8.35 8.17 6.76 96.96 --
Equity Dividend Rate (%) -- -- -- -- -- 8.35 8.17 6.76 96.96 --
EPS Before Extra Ordinary
Basic EPS 15.82 12.41 7.85 7.6 9.19 8.35 8.17 6.76 96.96 --
Diluted EPS 15.82 12.41 7.85 7.6 9.19 8.35 8.17 6.76 96.96 --
EPS After Extra Ordinary
Basic EPS 15.82 12.41 7.85 7.6 9.19 41.68 41.68 41.68 2.06 2.08
Diluted EPS 15.82 12.41 7.85 7.6 9.19 46.9 46.9 46.9 46.5 46.9
Public Share Holding
No Of Shares (Crores) -- -- -- -- 41.68
Share Holding (%) -- -- -- -- 46.9 0.26 0.26 -- -- --
Promoters and Promoter Group Shareholding
0.5 0.5 -- -- --
a) Pledged/Encumbered 0.3 0.3 -- -- --
- Number of shares (Crores) -- -- -- -- --
- Per. of shares (as a % of the total sh. of prom. -- -- -- -- --
and promoter group) 46.84 46.84 47.1 2.37 --
- Per. of shares (as a % of the total Share Cap. -- -- -- -- --
of the company) 99.5 99.5 100 100 --
b) Non-encumbered 52.8 52.8 53.1 53.5 --
- Number of shares (Crores) -- -- -- -- 47.1
- Per. of shares (as a % of the total sh. of prom. -- -- -- -- 100
and promoter group)
- Per. of shares (as a % of the total Share Cap. -- -- -- -- 53.1
of the company)
 Mar-19 Mar-18 Mar '17 Mar '16 Mar '15 Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
In Rs. Cr
Sales Turnover 19,069.97 15,655.85 13,382.13 11,310.02 11,949.33 10,969.00 10,123.29 8,848.43 6,533.14 4,706.90
Excise Duty 0 34.55 121.3 0 35.92 41.61 0 0 0 29.74
Net Sales 19,069.97 15,621.30 13,260.83 11,310.02 11,913.41 10,927.39 10,123.29 8,848.43 6,533.14 4,677.16
Other Income 108.5 -5.25 -32.2 73.92 70.75 120.22 100.89 94.47 56.8 9.48
Stock Adjustments 663.78 931.39 313.71 191.43 204.37 99.41 813.15 750.75 498.65 115.12
Total Income 19,842.25 16,547.44 13,542.34 11,575.37 12,188.53 11,147.02 11,037.33 9,693.65 7,088.59 4,801.76
Raw Materials 14,703.95 12,372.04 9,866.70 8,480.55 9,061.75 8,240.83 8,387.02 7,371.95 5,276.07 3,558.07
Power and Fuel Cost 42.11 39.83 43.84 41.2 89.54 37.74 33.84 25.52 21.63 17.73
Employee Cost 878.79 762.26 787.47 696.28 632.46 540.43 489.83 397.75 369.51 279
Other Manufacturing Expenses 0 0 481.16 429.47 0 0 0 0 0 6.31
Selling and Admin Expenses 522.6 440.99 1,239.88 885.08 1,185.63 0 0 0 0 392.66
Miscellaneous Expenses 1,584.09 1,204.25 12,419.05 10,532.58 10,969.38 1,163.47 1,013.27 968.61 748.51 139.32
Preoperative Exp Capitalised 0 0 1,155.49 968.87 1,148.40 0 0 0 0 -0.04
Total Expenses 17,731.54 14,819.37 1,123.29 1,042.79 1,219.15 9,982.47 9,923.96 8,763.83 6,415.72 4,393.05
Operating Profit 2,002.21 1,733.32 37.74 42.36 80.69 1,044.33 1,012.48 835.35 616.07 399.23
PBDIT 2,110.71 1,728.07 1,085.55 1,000.43 1,138.46 1,164.55 1,113.37 929.82 672.87 408.71
Interest 44.45 47.68 110.53 98.19 89.57 87.13 50.65 43.73 34.54 25.4
PBDT 2,066.26 1,680.39 975.02 902.24 1,048.89 1,077.42 1,062.72 886.09 638.33 383.31
Depreciation 138.89 109.67 975.02 902.24 1,048.89 67.55 56.23 45.62 35.11 60.69
Other Written Off 0 0 275.97 191.59 232.64 1,009.87 1,006.49 840.47 603.22 322.62
Profit Before Tax 1,927.37 1,570.72 713.24 676.52 816.25 0 0 0 0 -2.92
Extra-ordinary items 0 0 1.77 2 -0.01 1,009.87 1,006.49 840.47 603.22 319.7
PBT (Post Extra-ord Items) 1,927.37 1,570.72 799.97 708.65 816.26 275.12 281.56 238.98 170.08 68.39
Tax 553.01 407.85 2,552.35 2,052.03 1,907.63 734.76 724.94 601.5 433.14 251.3
Reported Net Profit 1,374.36 1,162.87 0 399.5 204.19 -0.19 -0.44 0.14 0.01 0
Total Value Addition 3,027.59 2,447.33 0 81.33 41.57 734.94 725.38 601.36 433.12 254.22
Preference Dividend 0 0 1,741.64 1,536.94 1,391.88 1,139.65 834.99
Equity Dividend 332.92 230.81 8,878.00 8,878.00 8,878.00 186.44 186.44 155.36 110.97 66.58
Corporate Dividend Tax 68.45 46.99 8.03 7.62 9.19 31.68 31.68 25.2 18 11.06
Shares in issue (lakhs) 8,878.00 8,878.00 47.68 39.49 34.74 8,877.86 8,877.86 8,877.86 443.89 443.89
Earning Per Share (Rs) 15.48 13.1 8.28 8.17 6.78 97.58 56.61
Equity Dividend (%) 500 375 28.42 22.19 16.46 233.31 164.89
Book Value (Rs) 69.63 58.5
SWOT ANALYSIS OF TANISHQ
Strength, weakness, opportunities and threats analysis is a strategic planning technique used
to help a person or organization identify strengths, weaknesses, opportunities, and threats
related to business competition or project planning. It is intended to specify the objectives of
the business venture or project and identify the internal and external factors that are
favourable and unfavourable to achieving those objectives.

 STRENGTHS OF TANISHQ
1) The backing of Tata, Titan and TN government – Tanishq has a strong backing of Tata
Group and TN government giving it the necessary resources and markets to function well.
2) A trusted jewellery brand in India – It has been one of the most trusted jewellery brands
in India which brand recall is very high. This gives Tanishq an edge over its competitors.
3) Excellent promotional activities – There have been a lot of advertising
and promotions for the brand in terms of TV ads, hoarding, promotional offers. Again this is
helping in maintaining the brand value of Tanishq in the market.
4) Right Product Mix – Tanishq not only has wedding and diamond collections but also deals
in simple, low-priced, daily wear jewellery products giving it an opportunity to reach out to the
customers of every stratum of the society.
5) Widespread geographical presence – Tanishq has a store presence in more than 100
cities in India. This is huge feat being a jewellery brand and it again gives an edge over most
of the competitors since a product like jewellery is what people want to feel and buy.
6) Multiple award-winning brands – The brand has won many awards in the past for its
designs, marketing, and retail chain categories to further strengthen its brand value.
7) Endorsement by famous celebrities –Amitabh Bachchan, Jaya Bachchan, Deepika
Padukone and much more are the likes of celebrities this brand has got it associated with for
endorsement. These celebrities have every household reach in India which strengthens the
brand association of people of different categories with Tanishq.

 WEAKNESSES OF TANISHQ
1) Limited international presence – Tanishq has a very limited international presence as
compared to some of the international brands in the jewellery arena.
2) The limited scope of growth due to fierce competition – A large number of regionalized
competitors in India does not allow a fast-paced growth in the market. Tanishq has stores in
more than 100 cities but the growth rate is not as expected due to these direct competitors.
3) Initial negative perception of the brand being for rich only – The earlier perception that
Tanishq caters only to the rich people hurts a little. Even though they have products for low-
income groups as well now, this negative perception needs to be removed completely.

 OPPORTUNITIES FOR TANISHQ

1) Expand globally – This is a huge opportunity for Tanishq which will help in increasing the
reach, revenues, and profits if they can successfully expand themselves globally.
2) Improve growth rate and profitability – This is necessary for every company in every
industry but yes for Tanishq it becomes all the more important to make sure they are profitable
in this volatile market with such dynamics and competition.
3) Tap the growing economy – It is important to understand the growing demands of
growing economy and launch the right products at the right time. This is where Tanishq really
focuses upon to increase their market share.
4) Indian wedding market is a big opportunity – Indian wedding market is one of the
biggest areas where every jewellery company can see something for itself and Tanishq is no
different. This makes it significant to continuously keep this market interested in the brand.

 THREATS TO TANISHQ
1) Escalating gold rates – Gold rates are an ever-escalating affair which makes it difficult for
a company like Tanishq to have the consistent profit margins.
2) Dynamic fashion trends – Fashion trends are always in a change mode which needs to
be met on almost daily basis. This affects the monetary value of the inventory of such a big
organization.
3) Strong competition from both branded and traditional jewellers – Competitors are
always a threat to everyone is expanding which makes the window of growth even smaller.
4) Gold is not seen as an investment anymore – A big population in India which used to
buy jewellery by considering it as an investment is now moving to different options to invest. It
makes the industry more dependent on luxury and fashion targets.
5) Changes in government policies and taxes – This has been a big problem for luxury
items. Every budget sees a change in some of the other way in luxury products like jewellery
which affects the profitability of such companies in a big way.
6) Increasing rates of interest – This is again related to the changes in financing rates which
are increasing year on year making it more difficult to reach profitability consistently.
TIFFANY & CO.
Tiffany & Co. (known colloquially as Tiffany or Tiffany's) is an American luxury jewellery and
specialty retailer headquartered in New York City. It sells jewellery, sterling silver, china,
crystal, stationery, fragrances, water bottles, watches and personal accessories, as well as
some leather goods.

Tiffany is renowned for its luxury goods and is particularly known for its diamond and sterling
silver jewellery. It markets itself as an arbiter of taste and style. Many of these goods are sold
at Tiffany stores, as well as through direct-mail and corporate merchandising.

It was founded in 1837 by Charles Lewis Tiffany and John B. Youngin Brooklyn, Connecticut,

as a "stationery and fancy goods emporium", the store initially sold a wide variety of stationery
items, and operated as "Tiffany, Young and Ellis" as of 1838 at 259 Broadway in Lower
Manhattan. The name was shortened to Tiffany & Company in 1853, when Charles Tiffany
took control and established the firm's emphasis on jewellery. The company has since opened
stores in major cities all over the world. Unlike other stores at the time in the 1830s, Tiffany
clearly marked the prices on its goods to forestall any haggling over prices.

 Performance Timeline
The first Tiffany mail order catalog, known as the "Blue Book," was published in 1845 in the
United States and publishing of the catalog continues in the 21st century. In 1862, Tiffany
supplied the Union Army with swords (Model 1840 Cavalry Saber), flags and surgical
implements. In 1867, Tiffany was the first U.S. firm to win an award for excellence in
silverware at the Exposition Universelle in Paris. In 1868, Tiffany was incorporated.
In 1870, the company built a new store building at 15 Union Square West, Manhattan,
designed by John Kellum and costing $500,000. It was described by The New York Times as
a "palace of jewels".

In 1877, an insignia that would become the famous New York Yankees "NY" logo was struck
on a police medal of honor by Tiffany; the Yankees adopted the logo in 1909. In 1878, Tiffany
won the gold medal for jewelry and a grand prize for silverware at the Paris Exposition, which
gave the Tiffany brand name added prestige. In 1887, Tiffany bought the French Crown
Jewels, which attracted publicity and further solidified the Tiffany brand's association with
high-quality diamonds.The company revised the Great Seal of the United States in 1885. In
1902, after the death of Charles Lewis Tiffany, his son, Louis Comfort Tiffany, became the
company's first official Design Director.

In 1919, the company made a revision to the Medal of Honor on behalf of the United States
Department of the Navy. This "Tiffany Cross" version was rare because it was awarded only
for combat, using the previous design for non-combat awards. In 1942, the Navy established
the Tiffany version for non-combat heroism as well but, in August 1942, the Navy
subsequently eliminated the Tiffany Cross and the two-medal system.

Due to the 1990–1991 recession in the United States, Tiffany commenced an emphasis upon
mass merchandising. A new campaign was launched that stressed how Tiffany could be
affordable for all; for example, the company advertised that the price of diamond engagement
rings started at $850. “How to Buy a Diamond” brochures were sent to 40,000 people, who
called a toll-free number specifically set up to target the broader population.However, to
maintain its image as a luxury goods company, high-style images remained on display in
Tiffany stores.
The Tiffany & Co. Foundation was established in 2000 to provide grants to nonprofit
organizations working in the areas of the environment and the arts.
In 2009, a collaboration between the Japanese mobile-phone operator SoftBank and Tiffany &
Co. was announced. The two companies designed a cellphone, limited to ten copies, and
containing more than 400 diamonds, totaling more than 20 carats (4.0 g). Each cellphone cost
more than 100 million yen (£781,824).
A media report in early July 2013 revealed that former Tiffany & Co. vice president Ingrid
Lederhaas-Okun had been arrested and charged with stealing more than $1.3 million of
diamond bracelets, drop earrings, and other jewelry.

In February 2017, the company announced that CEO Frédéric Cuménal was out of a job,
effective immediately, after only 22 months, blaming weak sales results. He was replaced on
an interim basis by the company's longtime former CEO, Michael Kowalski.
Annual Financials for Tiffany & Co.

Fiscal year is February-January. All values USD millions. 2015 2016 2017 2018 2019

Cash & Short Term Investments 731.46M 886.6M 985.8M 1.29B 855.3M
Cash Only 729.96M 843.6M 928M 970.7M 792.6M
Short-Term Investments 1.5M 43M 57.8M 320.5M 62.7M
Total Accounts Receivable 213.77M 208.5M 231.4M 231.2M 245.4M
Accounts Receivables, Net 195.17M 206.4M 226.8M 231.2M 245.4M
Accounts Receivables, Gross 205.77M 217.9M 238.3M 248.4M 276.9M
Bad Debt/Doubtful Accounts (10.6M) (11.5M) (11.5M) (17.2M) (31.5M)
Other Receivables 18.6M 2.1M 4.6M - -
Inventories 2.36B 2.23B 2.16B 2.25B 2.43B
Finished Goods 1.39B 1.29B 1.25B 1.31B 1.48B
Work in Progress 108.36M 118.4M 101.9M 117.5M 161.9M
Raw Materials 866.93M 813.7M 806.3M 821.4M 781.8M
Progress Payments & Other - - - - -
Other Current Assets 304.05M 188.3M 198.8M 207.4M 230.8M
Miscellaneous Current Assets 304.05M 188.3M 198.8M 207.4M 230.8M
Total Current Assets 3.61B 3.51B 3.57B 3.98B 3.76B
Net Property, Plant & Equipment 899.51M 935.8M 931.8M 990.5M 1.03B
Property, Plant & Equipment - Gross 2.27B 2.35B 2.46B 2.72B 2.89B
Buildings 125.85M 120.9M 122.5M 123M 122.6M
Land & Improvements 42.67M 45.6M 41.8M 41.8M 41.8M
Computer Software and Equipment - - - - -
Other Property, Plant & Equipment 1.3B 1.92B 2.04B 2.26B 2.43B
Accumulated Depreciation 1.37B 1.42B 1.52B 1.73B 1.87B
Total Investments and Advances 53.55M 31.8M 36.4M 22.5M 36.3M
Other Long-Term Investments 53.55M 31.8M 36.4M 22.5M 36.3M
Long-Term Note Receivable 40.75M 18.9M 4.4M - -
Intangible Assets 113.36M 108.3M 104.1M 105.8M 99.7M
Net Goodwill 38.84M 38.5M 38.4M 39.1M 38.7M
Net Other Intangibles 74.52M 69.8M 65.7M 66.7M 61M
Other Assets 138.61M 135.6M 145.5M 177.8M 195M
Tangible Other Assets 138.61M 135.6M 145.5M 177.8M 195M
Total Assets 5.18B 5.12B 5.1B 5.47B 5.33B

Liabilities & Shareholders' Equity

2015 2016 2017 2018 2019
ST Debt & Current Portion LT Debt 234.01M 305.8M 228.7M 120.6M 113.4M
Short Term Debt 234.01M 221.6M 228.7M 120.6M 113.4M
Current Portion of Long Term Debt - 84.2M - - -
Accounts Payable 118.01M 127.8M 108.6M 201.5M 217.1M
Income Tax Payable 61.63M 49M 48.8M 89.4M 21.4M
Other Current Liabilities 244.38M 247.3M 246.7M 313.3M 366.2M
Dividends Payable - - - - -
Accrued Payroll 83.95M 77.9M 96.3M 110M 120.9M
Miscellaneous Current Liabilities 160.43M 169.4M 150.4M 203.3M 245.3M
Total Current Liabilities 658.03M 729.9M 632.8M 724.8M 718.1M
Long-Term Debt 882.54M 790M 878.4M 882.9M 883.4M
Long-Term Debt excl. Capitalized Leases 882.54M 790M 878.4M 882.9M 883.4M
Non-Convertible Debt 882.54M 790M 878.4M 882.9M 883.4M
Convertible Debt - - - - -
Capitalized Lease Obligations - - - - -
Provision for Risks & Charges 524.22M 428.1M 318.6M 287.4M 312.4M
Deferred Taxes (323.45M) (382.8M) (301.8M) (188.2M) (215.8M)
Deferred Taxes - Credit - - - - -
Deferred Taxes - Debit 323.45M 382.8M 301.8M 188.2M 215.8M
Other Liabilities 265.15M 244.1M 239.4M 324.8M 288.2M
Other Liabilities (excl. Deferred Income) 200.68M 189M 193.5M 284.3M 257.1M
Deferred Income 64.47M 55.1M 45.9M 40.5M 31.1M
Total Liabilities 2.33B 2.19B 2.07B 2.22B 2.2B
Non-Equity Reserves - - - - -
Preferred Stock (Carrying Value) - - - - -
Redeemable Preferred Stock - - - - -
Non-Redeemable Preferred Stock - - - - -
Common Equity (Total) 2.84B 2.91B 3.01B 3.23B 3.12B
Common Stock Par/Carry Value 1.29M 1.3M 1.2M 1.2M 1.2M
Retained Earnings 1.95B 2.01B 2.08B 2.11B 2.05B
ESOP Debt Guarantee - - - - -
Cumulative Translation Adjustment/Unrealized For. Exch. Gain (76.28M) (135.3M) (143.7M) (48M) (108.2M)
Unrealized Gain/Loss Marketable Securities 1.91M (1M) 800,000 (1.8M) -
Revaluation Reserves - - - - -
Treasury Stock - - - - -
Total Shareholders' Equity 2.84B 2.91B 3.01B 3.23B 3.12B
Accumulated Minority Interest 15.61M 18.1M 14.9M 14.8M 13.5M
Total Equity 2.85B 2.93B 3.03B 3.25B 3.13B
Liabilities & Shareholders' Equity 5.18B 5.12B 5.1B 5.47B 5.33B
SWOT ANALYSIS OF TIFFANY & CO.

 STRENGTHS OF TIFFANY’S

Strengths are defined as what each business does best in its gamut of operations which can
give it an upper hand over its competitors. The following are the strengths of Tiffany’s :
1) Rich History: Tiffany & Co was first established in the year 1883 and has a rich
history of more than a century and a half backing it. The jeweller which started off as a
stationery and fancy good store became one of the biggest luxury jewellery brands of
all times. The rich history has made the jeweller the frame of reference for most brands
sold in the market today.
2) Payment policy: Tiffany and Co right from the very early days of its operations set a
precedent of fixed pricing which was non-negotiable. The company also ensured that
there was in credit system with the agenda of attracting the elite customers who could
afford to pay upfront for their purchases. The company continues to maintain its pricing
policy even today.
3) Exquisite Designs: Tiffany & Co makes designs that are signature to the brandand
enjoys global recognition. The Tiffany Blue which is the colour of the Robin Egg is the
brand colour that is used across the globe. Some of the popular designs from Tiffany
include diamond bezel set, Montana sapphires, Kunzite and numerous sterling silver
designs.
4) Association with the rich and famous: Tiffany has a long list of association with the
rich and famous. Some of their elite clients include the Kings & Queens of Europe, the
Ottoman Emperor, and the Czar and Czarina of Russia, Jacqueline Kennedy, Onassis,
Elizabeth Taylor, Audrey Hepburn, and Lady Gaga.
5) High Product Quality: Tiffany & Co has been always associated with a high level of
trust amongst its customers which is attributed to its product quality. Tiffany’s is also a
specialist in gauging customer requirements and has established itself as an epitome
of luxury and style.
6) Branding: Tiffany has a strong brand case working in its favour. A customer may be
willing to pay a premium for a Tiffany product whereas they may be unwilling to pay
the same or even lesser for a non- branded item of higher quality.

 WEAKNESSES OF TIFFANY’S

1) Expensive: Tiffany’s is a brand that is highly expensive probably more than what it

is worth for. However, because of the strong brand image, people are willing to pay
for it but it is losing its sheen in the long run and people are slowly losing their trust
in the brand.
2) Inability to move from its conventional mindset: The designs of Tiffany & Co
are traditional American and the brand has been sticking to their old designs. This
has stagnated the brand and newer luxury brands are getting an upper hand.
3) Lack of appeal for millennial: Though an old name in the luxury business Tiffany
has been unable to capture the interest of youngsters and thus the millennials
prefer to shop with new generation luxury brands which have modern styles and
are trendy.

 OPPORTUNITIES FOR TIFANNY AND CO.

1) Growth potential for Asia: There has been a surge in the luxury budget of Asians
primarily because of the upwardly mobile population. Tiffany’s is a well-known
brand and people including tourists often invest in a Tiffany Product just as a token
of their visit to a place. This is also an opportunity that Tiffany could capitalize on.

 THREATS TO TIFFANY AND CO.

1) Competition: The biggest competitors of Tiffany & Co are Bvlgari, Blue Nile and a lot
of local players.
2) Online retailers: Currently there are lots of online retailers which exclusive deal in
jewellery. Some of them like Blue Stone or Carat Lane are quite popular and are taking
over the market.
CONCLUSION
All in all, to conclude this project we would like to mention that both these jewellery maker
giants are one of the most influential ones across the globe, enriched with the history of
more than 10 decades, they rule above their competitors with their experience, quality of
products, craftsmanship, authenticity, marketing campaigns, designs and innovative ways
to put up schemes that attract the target aggregate market.

Tiffany and Co. was established in the USA with its prime focus on which precious stones
were sold the most i.e diamonds. Being a western culture- based jewellery maker brand it
focused on contemporary designs which were a huge hit in their targeted area of
consumers whereas Tanishq has a much more diverse history as it wasn’t a brand on its
own but was started off as a segment of titan by Tata known for selling accessorised
watches of premium quality, from where Tanishq grew at a very slow pace and faced
some losses before it became the biggest Indian jewellery giant. Tanishq largely focus on
ornaments of gold, since the demand of it in India is higher than the demand of it
anywhere else in the world. It consisted largely of traditional jewellery designs until much
later when the Indian market started to get westernised and accepting contemporary
designs as daily wear, simplistic and lighter designs to carry. Now, Tanishq earns its
revenue of 30% from diamonds which is growing every year. Tanishq has always catered
to the general public while tiffany’s focus of a sect of economically powerful people as it
gave it the name of a brand with optimum quality.
In both their respective areas of business the companies continue to expand and flourish
as the sales go higher and higher with more and more profit due to their accurate sense of
understanding what a consumer wants.

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