TTK PRESTIGE Presented By ARNAB DUTTA BALAJI PAVITRA

Company profile

It was in the year 1928 that T T Krishnamachari, the first finance minister of India. founded TTK Prestige.

TTK Prestige soon became the leading manufacture of Pressure cookers in India and offers the most comprehensive range of kitchenware.

India’s largest kitchenware company.IPO in 1994.1500 strong human capitalTwo brands in the portfolio- Prestige and

Manttra8 Manufacturing unitsVersatile distribution network

India’s most awarded company and brand

Star SME award for 2010

Consumer Durable Swot analysis

1. Rise in Disposable Income2. Easy-availability of consumer

financing3. Increasing share of Organized

Retail4. Consumer Preferences

1. Existing Potential in Rural Markets

1. Cheap imports from Asian Countries2. Increasing competition3. Fluctuating raw material prices4. Continuously changing technology

1. Electricity issue2. Poor networking system3. Globalization4. Poor geographic segmentation

Strengths Weakness

Opportunity Threats

Consumer Durable Sector

Consumer Durable Sales and Profits history

TTK Prestige

2006-07

2007-08

2008-

2009

2009-10

2010-11

0

200

400

600

800

293.25339.85416.21

516.8

775.58

sales

2006-07

2007-08

2008-09

2009-10

2010-11

0102030405060708090

11.7720.67 22.38

52.44

83.75

profit after tax

All data are in crore

Kitchen Appliances 2010-11Domestic export total

2009-10 domestic export total

Pressure Cookers(includingmicrowave pressurecookers)

29192 2498 31690

22515 1551 24066

Non-stick Cookware 15354 45 15399

8714 11 8725

Kitchen ElectricAppliances

19292 ---- 19292

10372 ----- 10372

Gas Stoves 8085 ----- 8085

6106 ----- 6106

Others 3027 65 3092

2362 49 2411

Total 74950 2608 77558

50069 1611 51680

PESTLE Analysis

Product Analysis

TTK’s Market Position & StrengthsLeading player in the organized, branded pressure cooker market Enjoys strong brand equity, benefits from wide distribution reachChallengesStiff competition from highly price competitive unorganized segment Vulnerable to input material price movements

TTKP’s Market Position & StrengthsEnjoys strong market position with ~35-40% market shareSuccessfully leveraged on ‘Prestige’ brand to expand its presence

ChallengesStiff competition from both organised/branded & unorganised players

TTKP’s Market Position & StrengthsRelatively new entrant & small player; market share ~8-9%Bajaj Elec. holds strong market position across categories Regular introductions and brand extension helping the CompanyLaunched induction tops, gaining tractionChallengesStiff competition cheaper imports, limited scope for differentiationEstablishing wide spread service network is imperative

TTKP’s Market Position & StrengthsRelatively small player; other players enjoy strong brand re-call

ChallengesStiff competition cheaper unorganised segmentLimited scope for differentiation

TTK’s Competition Grid

Sales mix across different channel

TTKP has a pan India strong networkof 25,000 direct dealers as on date. Given its product profile, its network compares fairly well with its closestpeers like Hawkins, Bajaj Electrical, and Havells etc.

Analysis

1. Domestic Sales registered a growth of 49.69% while exports registered a growth of 61.8%.

2. The traditional product categories, namely, Pressure cookers and Cookware registered a growth of approx 30% and 76% respectively in domestic market.

3. The growth in non-traditional product lines like gas stoves and kitchen electrical appliances has been very impressive at 32% and 82% respectively.

4. The growth is driven predominantly by volume expansion and introduction of new models and products. With respect to certain product categories the growth can also be attributed to sales mix consisting more of value added items and improved market penetration.

Strengths weakness

1. The product is treated as a matter of prestige which gave good brand image

2. Constant innovation in terms of product, marketing and promotion.

3. Prestige has the largest range of pressure cookers in the country

4. with years of trust, reliability and safety as our hallmarks

5. Price of these cookers ranges in all income group people.

6. An extensive distribution network consisting of over 200 stores in 110 towns.7. Prestige is the only kitchen appliances brand in India to have its own exclusivelybranded outlets.8. Online Shopping facility

1.The company's products are mostlyrestricted to the southern states in India.

2. Low entry barriers in the pressure cooker segment have led to increased competition from the unorganized players and regional brands, which compete with unviable low pricing strategies. Like preethy, pigeon etc. 3. Hawkins provide neck to neck competition in terms of market share.

4. No innovative marketing strategy been adopted so as to grab the market. Like consumers unaware of gas stove.

Opportunity Threats

1. They have targeted newly married couples. As a promotion strategy, they offer wide range of their products with reasonable discount as a single.

2. They have introduced exchange-policy.

3. They have mudra communications as their marketing agent which is a good opportunity to explore.

4. Recently, Safety techniques like Gasket Release System” and the “Gasket Offset Device” add points in safe use for beginners. They will be able to tap potential consumers.

1. Competitors -“Futura cookers” are being planned to manufacture with Anodized aluminum.

2. Wide range of availability of competitors products.

3. Unbranded cookers in market are swallowing 50 percent of market share.

Hawkins

2206-07

2007-08

2008-09

2009-10

2010-11

050

100150200250300350400

184.59217.52

254.66295.41

343.6

sales

All data are in Crores

2006-07

2007-08

2008-09

2009-2010

2010-11

0

10

20

30

40

7.4911.26

19.12

36.8431.77

profit after tax

TTK Prestige Limited (TTKP) is positioned as the largest organized player in the fast-growing domestic kitchen appliances industry with a market share in access of 35-40% in the organized segment of the pressure cooker and non-stick cookware market.

BCG Matrix High Low

Low

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Market share

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BCG Matrix

Low

Hig

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High Low

Market share

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Pressure cooker

Inner lid cooker

Induction cooker

Non-stick cookware Gas stove

Modular kitchen

Kitchen Hoods and Hobs

Strategies taken by TTK1.Market Penetration strategy- by increases the size of the purchase.

Example- buy one induction oven and get 4 non-sticks cookware for free.

2. Market Development Strategy- By entering new geographic market.

Example-To tap the rural market, TTK Prestige has formed a new business model involving NGOs and self-help groups to sell pressure cookers to rural India. The company hopes to boost its revenues from the rural market with the help of this model.

3. Product Development Strategy- by developing new or improved product for present market.

Example- A.TTK is the first to produce a microwave pressure cooker in India and is the world’s first CE marked microwave pressure cooker. In fact the company has applied for worldwide patent for this product. This product is expected to make cooking faster by around 30-40% than any other vessel in a microwave.

B. Unique-shaped Apple range of Inner-lid Pressure Cookers to specifically target the north and east t markets(predominantly inner lid markets) and to attract modern, young households.

c. Launched induction cookers

Forward vertical Integration Strategy

Forward Integration- involves gaining ownership or increased control over distributors.

Example- TTK has a pan India strong network of 25,000 direct dealers as on date.

Advantages-

1. A secure supply of raw material or distribution channels.

2. Control over raw materials and others inputs required for production or distribution channels.

3.Access to new business opportunities and technologies.

4. Elimination of need to deal with a wide variety of suppliers and distributors.

Conglomerate diversification strategyTTK has taken conglomerate diversification strategy by accruing 6 different companies.

Summery A well-known kitchen appliances company with leading

position in pressure cookers and non-stick cookware. Strong brand recognition and extensive distribution set up. Favourable demographics + enhanced reach + expansion in

product range to sustain growth momentum. Positioned as a leading player in the domestic pressure

cooker market with strong brand equity. Emerged as a total kitchen appliances company with presence

across a range of products. Focus on innovation & regular product launches has

strengthened TTKP’s business profile & brand equity. Extensive distribution .

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