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4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction Market Research
Market Research For Business Planning & Growth Tanishq – An Introduction Locating Tanishq Product Line & The Collections Tanishq For You Tanishq Retailing Marketing Tanishq Marketing Strategy The Jewellery Market Some of Tanishqs Competitors Tanishq – Market Research Tanishq – The Turnaround Story Promotion, Advertising & Public Relation Tanishq In The News Globalization
As we see it, research in advertising and marketing is very crucial in understanding, speculating on, and ultimately determining the position of the product in the consumer's mind. It is like a homework task that a good advertising/marketing/sales person would always carry out before (and after) implementing the said product's advertising/marketing strategy. By collecting data with the help of research methods, the researcher can manage to understand the consumer, what he wants, when he wants it, and how he wants it. Research methodologies, more or less, aim to reveal consumers’ different perceptions of the product, in large part about the way it is advertised. The researcher wants to know how effective the advertisement is on his listeners, where the strategy falls short, and where it can improve. Ultimately, it can be said that the most important task of advertising/marketing research is to increase the sales of the product. This requires a well developed marketing plan, a good know-how of the prospective consumer, and most of all an effective and rational research methodology.
Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level. Market research is generally either primary or secondary.In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible. Disadvantages of secondary research are that it is often not specific to your area of research and the data used can be biased and is difficult to validate. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product. A list of questions that can be answered through market research:
What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? Which needs are important? Are the needs being met by current products?
MARKET RESEARCH FOR BUSINESS PLANNING & GROWTH
Market research is for discovering what people want, need, or believe. It can also involve discovering how they act. Once that research is complete it can be used to determine how to market your specific product. For the growth and plannning of a business there are a few things that are important:
Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. Examples of market information questions are: • Who are the customers? • Where are they located and how can contacted? • What quantity and quality do they want? • When is the best time to sell?
Market segmentation is the division of the market or population into subgroups with similar motivations. Widely used bases for segmenting include geographic differences,
personality differences, demographic differences, use of product differences, and psychographic differences.
The upward or downward movements of a market, during a period of time. The market size is more difficult to estimate if you are starting with something completely new. In this case, you will have to derive the figures from the number of potential customers or customer segments. But besides information about the target market you also need information about your competitor, your customers, products etc. A few techniques are: • • • • • • Customer analysis Choice Modelling Competitor analysis Risk analysis Product research Advertising research
TANISHQ – AN INTRODUCTION
Tanishq is India's largest, most desirable and fastest growing jewelry brand in India. Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group, India's most respected and widely diversified business conglomerate. This year marks a decade of successful innings for Tanishq. With a retail sales of 1200 crore last year and gunning for 2000 crores this year, Tanishq has arrived in the Indian jewelry market. It is a story of a successful Indian enterprise, which has delivered value to its customers and shareholders in a complex category, marked by its completely localized front end as well as back end. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. jewelry at Tanishq is crafted in one of the world's most modern factories. The factory complies with all labour and environmental standards. Located at Hosur, Tamil Nadu, the 1,35,000 sq. ft. factory is equipped with the latest and most modern machinery and equipment. Every product at Tanishq is painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country.
Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. It exploded the market with facts about rampant impurity across India. It introduced technologybacked challenge in a category completely governed by individual trust. Tanishq introduced innovations like Karatmeter, the only non destructive means to check the purity of gold. Tanishq also introduced professional retailing in the disorganised Indian jewelry bazaar, where women can shop with comfort and peace, without worrying about the purity of the jewelry they are buying, as well as, select from the best jewelry collections available in the Indian market. Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities, with an exquisite range of gold jewelry studded with diamonds or coloured gems and a wide range of equally spectacular jewelry in 22Kt pure gold. Exquisite platinum jewelry is also part of the product range. Jewellery is one of the last great commodity frontiers in India; it has remained so because this market is very fragmented, very unorganized. Tanishq has successfully taken on the challenge of transforming this frontier into a reliable consumer space by bringing to it all the virtues and benefits that branding offers". - Harish Bhat, CEO, Tanishq.
Tanishq had its first showroom in Chennai in 1996. Today it has over 60 showrooms in 47 cities. Only six of these are owned by the company. The rest are run by franchisees. There are six branches in Mumbai Tanishq 365/C,Linking Road, Khar, Mumbai-400 052 Ph: 022-26484846 / 26495959 Fax: 022 - 26487979 E-mail: firstname.lastname@example.org Tanishq No. 7, Brabourne Stadium, Veer Nariman Rd , Churchgate, Mumbai-400 020 Ph: 022-22821621/ 22826043 / 22838801 Fax: 022 - 22875155 E-mail: email@example.com Tanishq 19-21, Kailash Plaza, Vallabh Baug Road, Opp. Odeon Cinema, Ghatkopar East, Mumbai - 400 077 Ph: 022- 25128020 / 25127734 / 25128020 / 25127684 E-mail:firstname.lastname@example.org
Tanishq Level 2 R Mall Lbs Road, Mulund (W) Mumbai Ph: 022 67969627 / 67997874 / 39576922 E-mail:email@example.com Tanishq G-11, Inorbit Malls Mind Space, Malad Link Road, Malad, Mumbai - 400068 Ph: 022 56406945 / 56406938 E-mail:firstname.lastname@example.org Tanishq, Durga Chambers, Plot # Ctsf-904, 40 Waterfield Road, Rk Patkar Marg, Turner Road, Bandra(W), Mumbai:400050 Ph: 022-67100687 / 26424846
PRODUCT LINE & THE COLLECTIONS
PRODUCT LINE: Tanishq Diamonds
The sparkle of diamonds has always attracted the human eye.
Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. As with any significant purchase, it is important that you make an educated decision. Cut and crafted with utmost care, Tanishq diamonds come with a certificate of authenticity, stating the caratage, colour and clarity of the stone, to enable you to know exactly what you are paying for. No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these precious stones into breathtaking masterpieces, each unique and splendid in design. When it comes to diamonds at Tanishq you will be spoilt for choice from many collections we have to offer.
From the traditional harams, mangalsutras and thalis to the more fashionable earrings, chains, bracelets and rings, there is a lot to choose from at Tanishq. In India Gold has always been associated with security and is the most valuable form of investment. However, it has been observed that consumer is an easy target to several malpractices like under karatage, under valuation of the gold
sold and unfair buy back policies due to the lack of awareness about these issues. Tanishq propagates ethical practices not only by assuring the customer purity and selling policies, but also fair policies to the karigars who craft the jewelry Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's individuality but each piece is subject to the intricate process of design, crafting and stone setting with stringent quality standards at every point. At Tanishq, we cater to every occasion. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki, from the stunning Aarka collections to the exclusive Nakashi work. We ensure that we have something for everyone with our baby range, 9 to 5 for the working woman and high fashion, men's wear, teen's collection and regional specific designs.
Metal at its best.
Pure Platinum's purity endows it with a brilliant white luster. This helps to reflect the true radiance of diamonds. Because it is generally 95% pure (18 karat gold is 75% pure), platinum jewelry does not fade or tarnish and keeps its looks for a lifetime. Rare Platinum is rare, the coveted treasure of discerning individuals. There is very little platinum on this earth and it is found in very few places around the world. This exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and distinctive - a celebration of your individuality. Eternal
Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does not wear away and holds precious stones firmly and securely. All precious metals can scratch, and platinum is no exception. However, the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost. Some of the world's most famous gems are set in platinum, such as the Kohinoor diamond, part of the British crown jewels. Platinum and White Gold are distinctly different materials and must not be confused. Platinum is a metallic element while White Gold is a Gold alloy, which gets its white colour due to palladium or nickel. Tanishq's Platinum represents excellent value for money. The price may be higher than a similar item in gold but platinum is pure, rare, enduring, beautiful, luxurious, classic, and the perfect host for diamonds; precious qualities that make it worth paying that little bit extra for.
THE COLLECTIONS: The Diamond Collection
No gemstone expresses human emotions more powerfully than a diamond After all, a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience. Cut and crafted with utmost care the diamond collection renders each piece eternal.
The Wedding Collection
The bride blushes; Everyone around smiles; The shenai announces festivity; The priests chant auspicious promises; She walks demurely; A vision of beauty; Her jewels are exquisite; Crafted by the best in the land; As pure as the blessings bestowed on her.
The Zoya Collection
Intricacy coupled with the simplicity; The magnificence of history interwoven with linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos; oriental art embellished with occidental architecture; nature's bounty matched with man's ingenuity.
The Fashion Earring Collection
The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in tune with the raging popularity that earrings currently enjoy, the Tanishq design team has created the Fashion earring collection, inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate Stiletto designs
The Kundan and Polki Collection
Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages, each crafted by a different set of highly skilled karigars. Tanishq as a revitaliser of tradition brings to life techniques and motifs of the period through our exquisite collections of Kundan and Polki (uncut diamonds). It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many stages. However, Tanishq ensures the karatage and net wt of the product.
The Colours of Royalty Collection
Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical Victorian era. The collection is inspired by the classic design essence and sensibilities found in the architecture, fashion, design, drapes and patterns of the Victorian period. Tanishq has incorporated the timelessness of these styles into exquisite jewelry designs to present a collection where fashion and tradition converge. This line of precious stones and diamond jewelry in 18k from Tanishq comprises more than 200 pieces and is by far the largest studded collection launched by us. This exclusive collection was launched at the Ponds Femina Miss India 2006, where the 25 finalists wore it. The Colors of Royalty is a line of exclusive gems and stone studded jewelry
that reflects the grandeur of India's rich past represented through the varied meanings associated with colors in our lives
The Moham Collection
The collection comprises designs, motifs inspired by nature that have been beautifully crafted to make them the most desirable possession this season Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness the color red has in our lives. Rubies have been associated with prosperity, passion and have been the most coveted gemstone for many years.It is a must have for a Indian women.This range attempts to strike a balance between convention and fashion by creating designs suitable for the progressive Indian woman, rooted in her tradition.
This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. This launch reiterates Tanishq's focus on catering to region specific tastes and preferences. India offers great potential for the Moham collection where Ruby studded jewelry enjoys great popularity and acceptance. Consumer survey indicates that women attach great inspirational value to rubies, second only to diamonds.
The Aria Collection
Aria is a collection of variety of everyday jewellery which depict various moods and feelings: Mysteries of love Mysteries of passion Mysteries of envy Bewitching Fascinating Enchanting Hypnotizing Sensuous
Exquisite crowns and jewelry
Tanishq, India's most innovative jewelry brand, unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry, specially crafted for India's leading beauty pageant, Femina Miss India 2007.
Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-changing neverchanging" Indian woman.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' - the Indian touch to the contemporary styling. Crafted with painstaking detail, each of these crowns convey a story; a story of their "ORIGIN". Inspired by interplanetary movements and colors of flora and fauna, these tiaras are a stunning combination of trillions, baguettes, round brilliant cuts, princess, pears and specially cut colored crystals. Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head. The inspiration behind each crown is distinct and personifies the spirit of the title. Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The large red stone, set slightly on the side, is the symbolic and stylised 'teeka'. Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The large red stone, set slightly on the side, is the symbolic and stylised 'teeka'. Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the base of the crown,
sitting snugly on the forehead of the wearer. And of course the vivid rectangular blue stone that expresses the teeka of victory, and sets off the varying hues of the sea on the rest of the crown. Miss Earth: This crown derives its inspiration from the essence of nature- her flora and fauna. Based on the fabulous colours and movement of the peacock and its feathers, this stunning piece is an intriguing study in harmony and contrast. The jewelry crafted beautifully with interspersion of diamonds and colored stones, is an ode to the ecstatic beauty and supreme power behind every woman. The contemporary styling has been brought to life with sensuous curves, balance, rhythm and symmetry of classic Indian motifs in an unconventional synthesis. These beautiful and vibrant gemstones in different shapes, sizes and colors are sprinkled amongst diamonds to create a symphony that enhances the look of the stones and adds a dash of color to conventional designs. Tanishq has translated the timelessness of these designs to a modern context and brought to life a collection where fashion, design and tradition blend perfectly.
TANISHQ FOR YOU
At Tanishq its not just the products, it’s the experience that matters. We make sure that we give you the premium quality of not only product but service as well. Tanishq not only has
an exquisite range of designs to meet all your requirements we also offer the benefit of any modification or customization on products. There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings Scheme, Gift Voucher purchase, Exchange of gold and diamonds etc.
Golden Harvest Saving Scheme
Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes, that enables to save each month with Tanishq and plan for wedding jewelry purchases. Your monthly installments are safe with us, whereas savings at home could easily get spent. This scheme provides you with much better returns than other saving options like bank deposits or post office savings schemes. In addition, Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget. How much money must one invest to enroll in the Savings Scheme? You need to invest only Rs.500/- per month to enroll. You could also deposit a larger sum, as long as they are in multiples of Rs.500/- You can choose from two convenient savings scheme options- an Annual Plan (12 month installments) and an Extended Plan (18 month installments).
BONUS: • 60% of monthly installment in Annual Plan
130% of monthly installment in “Extended Plan”
At the end of the scheme period, pick up Tanishq jewelry of your choice worth the amount deposited plus the BONUS
Installment Amount (Rs) 500 1000 1500 2000 2500 3000 4000 5000
Bonus for 12 months scheme 300 600 900 1200 1500 1800 2400 3000
Bonus for 18 months scheme 650 1300 1950 2600 3250 3900 5200 6500
Exchange Policy in Tanishq
Exchange your old jewelry for new with Tanishq
Most retailers have a differential buy back or different rates for selling and buying gold jewelry. At Tanishq, a single gold rate is maintained for buying or selling gold jewelry. 8% of the value is deducted for costs involved with testing, refining and taxes for the jewelry given by the customer. When you exchange any Tanishq gold coin with jewelry, you get the benefit of the current gold rate and full value exchange without deduction. When you exchange any other bank’s gold coin with jewelry there is a 4% deduction on value. This deduction is made for handling and transportation costs and for refining the metal received on exchange How are Diamonds exchanged in the market? How are diamonds exchanged at Tanishq?
Most jewelers exchange jewelry returned to them at the purchase price hence any appreciation in the value of gold and diamonds are not accounted for. At Tanishq, when you exchange diamond jewelry purchased from us it is exchanged for its current value, thus giving you the benefit of any appreciation that would have taken place in the price of gold or diamonds
Gift Vouchers make the perfect gift for friends and family. These are available at all Tanishq showrooms across India and are also redeemable across the country, Gift vouchers are available in the following denomination Rs. 2501/-, Rs. 5001/- , Rs. 10001/- and Rs. 25001/- So now you no longer need to worry about gifting your loved one, something of her choice!
Purity checks allow lovers of the yellow metal to test the purity of the gold they already own. Playing a significant role
in this is the Karat meter, which is the most scientific measure of purity in the world. It uses X-rays to give an exact reading of the purity of gold in just three minutes, giving the consumer an unmatched benefit when buying or selling gold. It is in fact the most scientifically proven, nondestructive means of testing the purity of gold. Due to its excellent precision, X-ray analysis has been adopted by international agencies as well as by BIS in India as part of the certification process used to Hallmark Gold.
You can also become the member of Tanishqs loyalty programme Anuttara and avail of various discounts and priveleges.
Tanishq ventured into jewellery retailing in 1996 through exclusive stores, both company owned and franchisee outlets, a concept unique to branded jewellery segment at that time. In just over a decade Tanishq has achieved several milestones and today is the largest jewelry brand in the country with a turnover of Rs. 1250 crores in the last fiscal. This success of Tanishq is a result of an exclusive blend of exquisite designs, trust and reliability, innovation, highly focused communication strategy and innovative retail strategy. innovation have been the hallmark of Tanishq all these years. Tanishq has constantly formulated an innovative product strategy this journey in line with the evolving consumer tastes. Tanishq Design Studio has created exquisite and varied collections like Fashion earrings, Everydays, high-end Zoya collection among others aimed at distinctive consumer segments. Similarly Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand for a world class shopping experience. As such Tanishq retail identity has evolved over the years to offer large format and concept stores that reflect the brand’s philosophy of being “Revitaliser of Tradition”. Commenting on Tanishq’s success story, Mr. C K Venkatraman, COO, Tanishq, said "We have been able to capitalise on the trends of the local jewellery markets by building on our solid financial strength, market-leading brand position, wide network, local sourcing strategy, a management model of excellence and, most importantly, a philosophy of customer care. In the future, the key to building stronger competitiveness will lie in enhancing network coverage, brand equity and logistics. Amid the keen competition in the Indian jewellery market, only the strong player can emerge victorious." Tanishq’s retail strength goes beyond its innovative identity and extensive reach. Tanishq has undertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day / Professional Day etc that were
unexplored avenues in the industry. Tanishq has also endeavored to be part of every occasion in an Indian woman’s life through festive promotions, customer contact programmes as well as through Anuttara, Tanishq’s exclusive consumer reward programme etc. Following more than 40% percent growth in operations last year, Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. In addition, Tanishq will build new logistics centres and upgrade existing ones, laying a solid foundation to meet future competition Tanishq is the first and only jewellery brand to have organized mass jewellery retail chains across the country. As our company expands, more and more people will be able to share our mindset. Brand Tanishq is for every Indian woman; it is at all times keyed-in to their ever-changing demands, moods and tastes. It conveys a feeling of self-confidence and individualism that characterizes the Indian woman. The offerings are in tune with fashion and yet do not lose touch with tradition.”
Tanishq the "Revitaliser of Tradition"
Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata, South Extension Delhi, Kormangala Bangalore and Bund Garden Pune . These stores reflect the new retail identity of Tanishq the 'Revitaliser of Tradition' and combine the grandeur of the past with the reality of the present without losing its inherent character and appeal. The introduction of the idea of a concept store catapults Tanishq's unique brand identity in the retail space and takes jewelry retailing in India to a new level. The concept stores will take Tanishq closer to making it the complete jewelry brand catering to varying consumer needs and tastes across all consumer segments and also provide customers a unique and innovative buying experience.
The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept stores. The stores have a contemporary feel while retaining the flavor of the past. Traditional craftsmen were used to create a period ambience so that the store replicates the authentic period look with its stunning sand stone arches and special motifs inspired by the inlay work of the Taj Mahal for the North and East stores and the Chettinad influences for the South stores. Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept stores across the country.
Marketing Equals the Four Ps
Part of marketing is identifying the mix of "Ps" that makes your service unique. This is also called your marketing mix. The next step is to shape your marketing mix and position its components to create a unique identity for your business that attracts and retains customers. Your market position is one or more selected benefits or features that make your operation unique and different. The following steps will help you define your marketing mix: • Identify your target market. • Determine what the target consumer desires. • Assess whether you have any advantages over your competition in delivering the desired service. • Choose the position that is most valued by the consumer. PRODUCT PLACE (DISTRIBUTION) Location Frequency Service PROMOTION Publicity ofSales Promotion Personal Selling Advertising Mailing List PRICE (COST) List Price Discounts Credit Terms Inclusive/Not Remoteness
Features Optional Services Product Transportation Quality Staff Quality Distributors Style Inventory Brand Name Packaging Guarantees
Tanishq has excelled in 4 P’s of marketing and hence it is the top brand in India.
TANISHQ MARKETING STRATEGY
When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore, was mostly unorganized, with around 3.5 lakh players. India was the second largest consumer of gold in the world after USA. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures. In the 1990s, a number of brands entered the Indian jewellery market. In 1995, Mumbai based jewellery exporter, Gitanjali Jewels, started selling 18-carat gold jewellery under the brand name of Gili. Su-Raj (India) Ltd. launched its 22carat gold and diamond jewellery in 1997. Other well known domestic players included Tribhovandas Bhimji Zaveri, Mehrason's and P. C. Chandra. Among the foreign players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining. Titan realized that there was a huge untapped market for branded jewellery in India. The critical success factors in the business were quality, fashionable design, and good aftersales service. Titan also observed that the changing lifestyles demanded lighter and trendier jewellery. After its launch, Tanishq faced several problems. With its original focus on exports, Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Formal consumer surveys showed that though brand awareness was quite high, it suffered from several negative perceptions. Many potential customers thought the products were over priced and associated the brand only with the rich.
Hence, Titan decided to change its strategy on two fronts: Value proposition Retailing. Since the European designs in 18-carat gold did not find any takers in 1997, Tanishq introduced 22-carat ornaments. Customer surveys revealed that gold jewellery was not bought so much for design as for value. Titan also decided to do away with the shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998. Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. The same year, Tanishq entered the studded jewellery segment, which it had ignored for long. Titan also tapped institutional customers also. In 1998, it launched the corporate gold gift scheme - 'When you want to say thank you, say it in gold'. In 1999, Tanishq delivered gold coins worth Rs. 20 crores to Maruti Udyog Ltd., to be given away as gifts to Maruti car owners. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers. The Tanishq strategy for the coming couple of years relies on two things —increasing penetration in the domestic markets and going abroad in order to diversify its revenue portfolio.
THE JEWELLERY MARKET
Jewellery play a significant role in Indian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country. Worldwide, the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. In India, it accounts for nearly 20 per cent of total Indian exports. It provides employment to 1.3 million people directly and indirectly. The Indian market is laden with gold jewellery of varying karatage, which has seen huge appreciation in value terms in recent times.
The Gold Rush
In the late 1990s, the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. Instead of being regarded as only an investment option, jewellery was being prized for its aesthetic appeal. In other words, the focus seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply. Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional jewellers also began to bring out lightweight jewellery, and some of them even launched their in-house brands. However, the share of jewellery market was still Rs. 400 billion per annum growing at a pace of 20 to branded jewellery in the total small (about Rs. 10 billion of the jewellery market in 2002), though 30 percent annually.
The branded jewellery segment occupied only a small share of the total jewellery market because of the mindset of the average Indian buyer who still regarded jewellery as an investment. Moreover, consumers trusted only their family jewellers when buying jewellery. Consequently, the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices.
Gold Jewellery Market in India
Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion suppliers were also allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act.' This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop operations.
In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery. The bulk of the jewellery purchased in India was designed in the traditional Indian style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very common in India, under-caratage was prevalent. According to a survey done by the Bureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was of a lesser quality. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22-carat gold jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market. Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name Gili. Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda Su-Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997. The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India, launched its own range of studded 18-carat jewellery, Dagina. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).
Gold Jewellery Becomes Fashion Accessory
Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18karat gold was not favored as it was considered a poor investment. Confidence in the local jeweller was the hallmark of the gold jewellery trade in India. A jeweller or goldsmith in a local area had a fixed and loyal clientele. The buyer had implicit faith in his jeweller. Additionally, the local jeweller catered to the local taste for traditional jewellery. However, since the late 1990s, there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. There was a rise in demand for lightweight jewellery, especially from consumers in the 16 to 25 age group, who regarded jewellery as an accessory and not an investment. The new millennium witnessed a definite change in consumer preferences. According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment." In October 2002, Trendsmith conducted a survey to understand the shifting needs, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions: • The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design. • The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy,
• The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. • The Indian consumer was willing to experiment with new designs. In the late 1990s and early 2000s, with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT), a wide range of new designs became available. In addition, the growing number of manufacturers needed a retailing platform with global and national reach. All these led to the proliferation of branded jewellery players.
Tanishq - Strategies for Wooing Customers
In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the challenges were many. As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase. Said Kurian, "We are changing the attitudes of customers from blind trust to informed trust." To increase its marketshare, Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers. Tanishq's strategy was to create differentiation and build trust.
According to Kurian, the first part of the strategy was "to provide a point of differentiation in a highly commoditized category – which is the whole point of branding."12 The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty."13 One way to create differentiation was through design. The emphasis had to be on design because local jewellers could offer to design any pattern according to the customer's specifications. For a national brand a generic design concept with regional variations had to be evolved. For this, Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. On the basis of this feedback, each showroom could select the designs it would carry. To stay ahead of competition from local jewellers, Tanishq decided to focus on quality control. In 1999, it introduced caratmeters which showed the purity of gold. In fact, Tanishq's USP was the purity of its gold. Accordingly, the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. In November 2002, Tanishq introduced a new collection of jewellery called 'Lightweights.' The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. It also launched Lightweight Diamonds, with prices starting at Rs 3,000. Tanishq focused not only on urban markets, but small town markets as well. Real estate was less expensive in the small towns than in large urban centres. Besides, competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. According to Kurian, the best returns on investment came from small towns.
All That Glitters is Not Gold
Branded jewellery players will continue to face lot of competition from local jewellers. In order to gain marketshare, they will have to come up with designs that customers want and win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them. To compete with traditional players, branded players must also find some way to differentiate themselves. While the success of a particular brand will depend on differentiation, affordability and quality will be a key element in sustaining a brand. In addition, branded players require focused advertising and astute salesmanship to compete with traditional jewellers. Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili and Trendsmith- several regional players have opened branches to leverage the trust and reputation that they have built up over the years. This is going to add to the competition in the branded jewellery market. Most of the branded jewellery players in India focused on yellow gold; only a few of them experimented with the pink and white forms of gold. Some of the players also used diamonds and platinum, which appear to have a good future in the Indian jewellery market
SOME OF TANISHQS COMPETITORS
Asmi, one of the leading diamond brands of the country, was launched, In 2002 by The Diamond Trading Company Ltd, (DTC). The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. Asmi caters to the women of substance & satisfies her mind for rewards recognition, evolving to suite her style & Personality. The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi & Perizad. All these women epitomize the different strengths. An Asmi woman is closely identifies with free-spirited, goal-oriented & with an inner fire.
The world renowned Nakshatra diamonds were launched in 2000, with an equally dazzling Aishwarya Rai as its brand ambassador. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. The traditional diamond is the most wanted design among Nakshatra diamonds. Nakshatra diamonds claim to shine your glamour and love life. They have aptly put their slogan as "brightest circles of light." Elegant and graceful Nakshatra diamonds are the epitome of passion, attitude and independence.
Gili was launched in 1994, targeting mainly the youth who wanted to celebrate Valentine's day. Since then, the brand has clocked a turnover of Rs. 90 crores.
Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India. Nirvana diamonds are targeting at fashion conscious, modern and independent thinking women. Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers.
D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. D'damas Diamonds claim to promote a range of emotions through their collections
Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. Adora means glory in Spanish and claims that its diamond collection is themed on love. Adora diamonds are for adornment of every moment, occasion, and phase of life through its up and downs.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds.
Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature.
World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched its exquisite Kiah diamond collection in October, 2004. Kiah diamonds are claims to be for celebrating womanhood. The brand name 'Kiah' means beautiful place. On the latest Kiah diamonds have won the Best Showroom in the DTC Diamond Season for 2005-2006.
TANISHQ – MARKET RESEARCH
MARKET research On TANISHQ Tanishq emerges as the best known brand with the highest awareness and recall. The difference between the leaders and the followers is always greater when the former have a head start. And when the pace and efforts of the leaders intensify, the possibility that they will continue to be at the top is a foregone conclusion. The Solitaire - TNS Survey shows that Tanishq is the best known brand across the three cities of Mumbai, New Delhi and Bangalore, a finding which lends credence to the leadership factors. More than 65 per cent of the target audience had no hesitation in coming up with the name, proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group company, Titan Industries) has paid off well. Two decades in the business, over 70 retail outlets across the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience - all these factors combined to make the brand into a household name. India's Top Ten Best Known Jewellery Brands
The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants coming in all the time. Consumer behavior also is undergoing a transformation. The Solitaire-TNS Survey to find out India's best known brands (and other pertinent details) was initiated with a view to assist and equips the industry with information that goes beyond the ordinary. "Men buy products while women choose brands," says model-turned-designer and CEO of a billion dollar company, Kathy Ireland, a fact which jewellery brand managers in India will not refute. Hence the Solitaire - TNS Survey across Mumbai, New Delhi and Bangalore was targeted solely at women. While the sample size was small, 600+, the fact that the target group was covered in and around shopping malls, banks, corporate areas and commercial zones, made the sample more relevant to the objectives. The survey was conducted through personal interviews over a period of 15 days.
What Did Women Really Buy? An interesting question is whether there is a difference in what women consider as India's best brands and what they finally opt for. Quite naturally, price structure and affordability are in conflict with aspirations. However, there has been little or no difference observed in our target group in their choices. This may be because most jewellery brands have a varied price range that caters to women belonging to different segments of society. Even in a high-profile brand at least a few lines are made affordable to most people. Thus, the toppers in the best known category come up trumps even here.
What Woman Want? While Tanishq and a few other regulars do occupy women's mind space, the good news for other brands is that women are not unduly influenced by the aspirational longings of their hearts. A long history of fascination for the yellow metal as a status symbol and as an instrument of security and its easy convertibility to cash has most women, both working and non-working, picking up gold jewellery without precious stones as their most preferred jewellery. With the economy moving upwards and income levels increasing, gold consumption in India is showing tremendous growth. WGC reports that there has already been a 50 per cent increase in the first half of 2005 over the same period last year! With established jewellery manufacturers (read brand owners) recognizing the everlasting appeal of gold among Indian
women, jewellery brands in the future might see more visible usage of gold.
22 carat yellow gold jewellery is the most preferred gold jewellery. Diamond studded jewellery is the next highly preferred. 40 per cent of the working women are willing to try new jewellery outlets. 32 per cent of non-working women opt for this too. Where Do Women Buy From?
As constant as their liking for gold, Indian women are totally rooted in the choice of the place from where they buy their jewellery. In this case, the traditional/independent jeweller
seems to have no competition at all from the new generation brand stores, malls, etc. But there are changes happening. Working women, the survey points out, are more open to trying out branded and new retail outlets. With an amalgamation between the old and the new marketing strategies, independent/family jewellers have also created indelible brands. Thus, in the final reckoning, most women are brand-conscious and opt either for the ones that are highly visible or those that have been embedded in their buying culture through family association.
TANISHQ - THE TURNAROUND STORY
When we started out we didn't think that we could achieve this, but now being jewellers to the nation doesn't seem so distant."
- Tanishq COO, Vasant Nangia, in March 2000.
The Unsuccessful Launch
In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market was to a large extent unorganized, with a few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's. Tanishq, an entirely new concept in the Indian market, thus had to struggle hard to be accepted by the customers. Industry watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat gold range, with designs borrowed heavily from contemporary European brands. The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings. Tanishq performed very badly in the next three years, posting a huge loss in 1997-98, proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted, "Tanishq, as a concept, was far too ahead of its times." Even if one agreed with Kurian, it could not be denied that Tanishq did commit mistakes. Analysts decreed that the company's strategies were wary. At this point, Tanishq took various steps to correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999. In 1999-00, sales doubled to Rs 1532 million against Rs 743.8 million recorded in 1998-99 and reached Rs 2000 million in 2000-01. Tanishq fared equally well on the export front also with heavy exports to UK, US, Australia and West Asia. Tanishq was the largest overseas chain in US with 1,200 outlets. In the year 2000, exports contributed 10% to the company's turnover. The story of Tanishq, once written off as a losing proposition, making a remarkable turnaround was an
example of a company single-mindedly working to make its own mark in the tradition bound Indian jewellery market. Behind this success was, of course, a well-planned and wellexecuted marketing plan.
Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO). The company, incorporated in July 1984 in Chennai, was started in technical collaboration with France Ebauches (a French company), one of the world's largest manufacturers of watch movements. Initially involved in the watches and clocks business, Titan later ventured into the jewellery businesses. The company was India's leading manufacturer of watches, marketed under the Titan and Sonata brand names with a 25% share of the total domestic market. Titan established its first manufacturing facility in Hosur, Tamil Nadu and its first satellite watch assembly unit at Dehradun, Uttar Pradesh was started in 1990. In 1992, Titan set up a joint venture, Timex Watches Limited, with Timex Corporation of USA to market Timex watches in India.1 And in 1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year, it also started its jewellery division under the Tanishq brand. At this point of time, the jewellery business was highly localized and the concept of branded jewellery did not exist. In the late 1990s, India had around 0.2 million jewellers scattered across the country. Jewellery had predominantly been used as an investment rather than adornment. Hence, a change in the perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about. People generally bought gold from the same family jeweller they had trusted implicitly for
generations. Moreover, these jewellers made the jewellery to order and often bought back their products at the prevailing market rates. Thus, from the very beginning, Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewellery only from family jewellers. The sleek and contemporary designs being offered did not go down well with the Indian customer who was used to heavy, traditional designs. Vasant Nangia, erstwhile Chief Operating Officer, Tanishq said, "When we launched the Tanishq range, our designs were not appreciated initially as they were believed to be extremely Western. Also, we offered only 18 carat gold." Over a period of time, Tanishq's research revealed many other loopholes in its strategies.
Setting Things Right
Tanishq found out that it had gone wrong mainly in two areas - the product proposition and retailing. Initially with a focus on the export market, its designs were predominantly Western, and the same line of jewellery was sold in India as well. However, when it shifted its focus to the domestic market, it was unable to sell these designs. Therefore the first step was to change the brand positioning from that of an elitist and Westernized offering to a more mainstream, Indian one. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well. Tanishq also made attempts to redefine traditional styles in its designs. Tanishq realized that, given the diverse nature of Indian ethnicity, it would have to cater to tastes of all regions Therefore, the emphasis shifted from the erstwhile modern designs to more ethnic ones and traditional ornaments (based on designs from various states) were launched. The company also began seasonal and localized promotions
based on Indian festivals, such as during Durga Puja in West Bengal, Onam in Kerala, Diwali in north India, etc. Johnson Verghese, divisional head, sales and marketing, said, "We also decided to go in for transmigration of designs. So we not only got in more Indian motifs but also started stocking typical designs from Tamil Nadu in Mumbai and those from Bengal in Delhi. These designs, though Indian, provided variety to what the people in a particular area were used to seeing." Tanishq's team of in-house designers came out with about 3,500 designs based on current trends and the feedback from stores. At least 10% of these designs were changed every quarter and fresh ones were added to the stock. Tanishq gave complete freedom to the retail outlets to pick up designs, which they thought would sell in their stores. Almost all the outlets stocked the 'best selling' range of designs, which did well across the country. Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments. In order to add some value proposition to rise above the competition, Tanishq decided to address the issue of gold purity, which was most important to the customers. Traditionally, conventional jewellers used the touchstone2 to test the purity of gold. Apart from the fact that the customers did not trust the method, it was also alleged that a slight amount of gold was always lost while testing. The customers had to accept this for want of an alternative. In 1999, Tanishq introduced the revolutionary concept of Karatmeters in its retail boutiques. The Karatmeter used Xrays to give an accurate reading of the constitution of gold in the ornament within three minutes. Imported from Germany at a cost of Rs 1 million each, Karatmeters though expensive, proved to be the biggest USP for Tanishq in the coming years.
Fact, its sales increased by 20-30%. The concept was later on heralded as a bold step towards professionalizing the Indian jewellery business. In an attempt to elbow out competition, Tanishq conducted tests on 10,000 ornaments selected at random. In some cases the caratage was found to be as low as 10% and almost 65% of the gold tested was below 22 carats. As the caratage offered was on the lower side in traditional jewels, the jewellers kept the making charges very low to entice customers. This had become the norm all over the country. Tanishq had to struggle hard to break this convention. As the concept of Karatmeter became more widely known, customers began to realize that the rates they were paying for Tanishq jewellery were indeed justified. A Tanishq official commented, "They have begun to understand the total value proposition that Tanishq offers." An all-India customer satisfaction survey conducted by Tanishq in 2001 revealed that over 50% of all Tanishq customers intended to make it their jeweller, replacing many long-standing relationships with the traditional jeweller. When Tanishq was launched, it sold most of its products through multibrand stores. This did not help the Tanishq brand to make its mark. Having realized this, Tanishq decided to set up its own chain of retail showrooms in 1998. This proved to be a very wise move as sales picked up almost immediately. By July 2001, it had 47 'Tanishq boutiques' in 37 cities – 12 were in the metros - Delhi, Mumbai, Kolkata, Chennai and Bangalore, the rest in smaller cities with a population of at least 0.5 million such as Trichy, Nagpur, Amritsar and Patna. The focus on smaller cities paid off well with the annual growth being as high as 150% as compared to the 45% growth in metros. The number of boutiques was expected to reach 50 by the end of 2001 and to 70 by 2002. Tanishq's
efforts to standardize the price of its ornaments proved to be another milestone in its success. Gold prices differed across the country as they were based on different parameters concerning the local markets. In a bid to control gold price variations in different parts of the country, Tanishq decided to have a standard gold price across all its showrooms from March 2000. The standard price was made binding on all Tanishq showrooms. Tanishq based its gold prices on international exchange prices, resulting in prices often being lower than the local market prices. Nangia said, "We already have a kind of standard pricing in place, but this would represent a formalization of that system to the public." Tanishq even had plans to link directly with the London Metal Exchange (LME) for daily quotes in the future. Tanishq set up an ultra-modern and large-scale manufacturing unit in Hosur, Tamil Nadu at a cost of Rs 600 million. The unit had facilities like refining, alloying and stone casting and a dust-extraction system that kept gold losses down to 2% of the raw material while local jewellers typically lost 8-10%. This in-house manufacturing facility was the main reason, which enabled Tanishq to charge the same price across the country. One of the company's most important initiatives was customer service enhancement. Tanishq launched a direct consumer contact programme and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. The company also kept the entry-level price as low as Rs 600 (for a pendant) and offered a range, which far exceeded that offered by any other jeweller. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deductions depending on purity.
A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM), an associate of IMRB. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis. This gave the company the benefit of benchmarking against local and international players and also aided in improving repeat purchases. As a result, Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. The company's corporate gold gift scheme ('When you want to say thank you, say it in gold'), launched in December 1998 proved to be a major success. Tanishq delivered 50,000 customized gold coins to 0.25 million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. By 2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, the TVS Group, Ceat and Liberty Shoes The communication and promotion budget was increased from Rs. 65 million in 1999-2000 to Rs 100 million in 200001. A majority of this was spent towards advertising, while a portion was also earmarked for promotions tailored to match regional preferences. For instance, in New Delhi, which was Tanishq's single largest market, substantial promotions were carried out. The Rs 100 million was split into four parts, comprising national-level spends (both electronic and print media), regional budgets, direct mail and research. For the first time, Tanishq initiated a long-term media plan, aiming to give the brand a round-the-year presence and enhance awareness. The communication focused on design and quality instead of the price.
The Indian branded jewellery market, though nascent, grew at the rate of 20-30% during 1998-2000. Besides Tanishq, other major players included Intergold, Gili and Carbon.
However, in the Rs 400 billion Indian jewellery market, Tanishq's share was not even 1%. Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity instead. The company planned to attain a 2% market share in the next few years. Kurian said, "The jewellery market is one of the largest consumer segments in the country. It has an estimated 2,50,000 retailers with no national or international brand and no corporate player. Titan believes that this market is right for consolidation. A consumer-oriented, highly ethical corporate player will have great opportunity. Our growth rates in the past three years have fully substantiated this hypothesis." 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.”
PROMOTION, ADVERTISING & PUBLIC RELATION
Tanishq launches ‘Free gold coin offer’ campaign
July 19, 2008 (India)
Tanishq launched its "Get Gold free with Diamonds" promotional offer were customer be entitled to win at least one 22-kt one-gram gold coin on every purchase of diamond jewellery worth Rs 5,000 and above. "Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing an opportunity to own diamond jewellery and win gold, which is a huge investment opportunity. Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar. The Akshaya Tritiya pre-booking scheme along with the 10 per cent deduction on making charge offer is available across all Tanishq boutiques
Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product Tanishq.
T V Advertisement: Tanishq focus on the emotional attachment in the advertisement like engagement, marriage and such other occasions. Print advertisement: In Leading news paper and famine magazines are targeted to do the advertisement. In short they know their target market and hence do advertising as required. Bollywood tie-up: Has done tie up with Paheli where in the movie Ms Rani Mukherji Was seen wearing Tanishq jewellery through out and in Jodha Akbar Movie were they launched a product line named Jodha Akbar.
TANISHQ IN THE NEWS
Priya Ganapati in Bangalore | July 04, 2003
Jacob Kurian, chief operating officer (jewellery), Tanishq isn't tired of saying that the story of his company mirrors a Bollywood movie. There's drama, celebration, then betrayal in the family, followed by action and, of course, a happy ending. Tanishq, the jewellery business group of Titan Industries, is the blockbuster action thriller from the Tata group. After five years of consistent losses, the company, on Thursday, announced the completion of a dramatic threeyear turnaround culminating in annual sales growth of 39 per
cent and profit growth of 318 per cent. During 2002-03, Tanishq recorded a sales turnover of Rs 389 crore (Rs 3.89 billion) -- at consumer prices. By 2007, it hopes to take that to Rs 800 crore (Rs 8 billion). Today, Tanishq has already become one of the top five retailers in the country. It contributes 40 per cent to Titan's business and is expected to account for 55 per cent by 2007. By then, Tanishq's profitability will also be good enough to offer 28 per cent return on deployment of 25 per cent of the capital. Sales Year 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 Sales (Rs crore) 32 38 73 141 188 299 389
It's a long way for a company that almost folded up before it could turn in its first ever profit. Since, its launch, Tanishq has not only been grappling the tough market conditions but also internal strife and Doubting Thomases. "Many people believe we should not be here today. They have kept telling us that the business logic is against what we set out to do. But I am glad we have proved them wrong," says Kurian proudly. The estimated Rs 40,000 crore (Rs 400 billion) gold jewellery market in India is a rough one. There are over 300,000 jewellers, each powerful in his neighborhood. Till the last two years, national players were almost nonexistent.
One of the largest consumers of gold, the Indian household had a marked preference for 22-karat gold, as opposed to the 18-karat designs that jewellery chains worldwide chose to do their designs in. Not surprisingly, the skeptics were asking what was Titan doing in the jewellery business? In the late eighties, when India was facing a massive foreign exchange crisis, Titan, the watches division, was told to look for a way to earn its own foreign exchange. Jewellery seemed like a huge and interesting market to get into and Titan decided to set up Tanishq as a jewellery division that would be focused largely on exports. However, by the time it acquired the skills and set up the plant, the world had changed. India no longer had a foreign currency problem, imports were easy to come by, demand had come down in the global market, supply had grown in Asia and margins had become very thin. Tanishq then decided to focus on the Indian market. In August 1992 a pilot plant was set up and production started in two years later. In 1996, Tanshiq launched its first store. It was a hitherto untried concept. The jewellery business in India was highly fragmented and ruled over by local players. There was no national jeweler that people could buy from, despite that India is the largest consumer of gold in the world. Clearly, the local satraps had a very tight stranglehold on their markets and it was difficult for a pan-Indian player to break into. Being ethical too was a problem. Titan estimates that up customers and the Government is defrauded of up to Rs 5,000 crore (Rs 50 billion) annually due to unethical business practices like under-karatage of gold, misrepresentation of quality and tax evasion. As a company which was part of the Tata group, known for maintaining high ethical standards, Tanishq prided itself on delivering customer value through a fair and transparent business model. But that wouldn't help.
Till 2000, Tanishq could not find its feet in the market and its losses were mounting. In 1998-99 it showed losses of Rs 10.40 crore (Rs 104 million) though sales turnover was increasing. May 2000 turned out to be the defining period in the company's history. The then managing director of the company, Xerxes Desai had a choice between Bhaskar Bhat and Vasant Nangia when it came to deciding who would succeed him. Bhat won and was anointed as the next managing director by Desai himself and Nangia became the chief operating officer. Nangia was the hands-on man at Tanishq. A twenty-year veteran of the group, he was the one who had charted out the expansion plans, which included increasing the number of exclusive boutiques to 67 from the then 30 and launching a new men's range of accessories. But a day after Bhat was announced at the successor to Desai, Nangia quit. He took along with him six senior executives of Titan. It was a blow that many thought would sink the company. "The entire sales and marketing team resigned on that day. The company was rocked by what happened. Many thought this would be finally the way Titan closed down its jewellery business. After all, we were in our fifth consecutive year of losses then," says Kurian. It seemed an ignominious way for a Tata company to go. And like Kurian says it was too soon for the movie to end. So, a new and admittedly inexperienced team was put together. The team had an onerous task on its shoulders. It had to not only stem the increasing losses shown by Tanishq and but also show some profits if the company was to remain in business. Tanishq had quite a few problems on its hands then. Its high decibel media advertising wasn't working. A stream of adverse media reports had instilled the fear that its shareholders would pull out anytime. And worse, it had very little time on its hands to show a turnaround.
But as Kurian saw it, Tanishq's woes were rather simple: There were just not enough customers in its stores. "For a retailing chain, that's the worst thing that can happen: having no traffic in the stores," says Kurian. A customer survey revealed multiple problems. Despite its high-blitz ad campaign, many didn't know what Tanishq was about, others found it too expensive and some felt that the product was not for people like them. Either way, getting customers back into the store became a priority. Profits generated Year Profits generated (Rs crore) 1996-97 - 10.60 1997-98 - 21.96 1998-99 - 10.40 2000-01 2001-02 2002-03 2.07 1.87 7.82
Kurian and his team then decided to launch the fifth anniversary celebrations of Tanishq that would offer discounts to customers and induce them to come to the store. The ploy worked. "We had customers waiting for the store to open. Sometimes we had to call the security guards because of the crowds. We just couldn't believe it," smiles Kurian. There were other minor tweaks made too. Ad campaigns now started to list out the products that Tanishq had. So bracelets, rings, chains, pendants were explicitly mentioned in each ad. A range starting at Rs 399 was launched.
The aim was to bring down the price barrier significantly. Collections for the working women and a new set of contemporary designs were brought into the stores. Almost all of the efforts paid off. A year later, Tanishq had made its first ever profit in the entire existence of the company. It was a measly sum of around Rs 2 crore (Rs 20 million), yet it was a beginning. The next year, the company decided to write off some of the financial baggage it had been carrying. Profits generated dipped as a result but Tanishq was clearly on a revival. The company changed quite a few of its original strategies along the way. Tanishq had its first showroom in Chennai in 1996. Today it has over 60 showrooms in 47 cities. Only six of these are owned by the company. The rest are run by franchisees. The model has helped take away capital costs from the company and pass them on to franchisees who will invest money to help the company grow. In all, Tanishq managed to limit its fixed asset investment to Rs 27 crore (Rs 270 million). Contribution to Titan's growth Year 1996-97 1997-98 1999-2000 2002-03 Tanshiq contribution to Titan (in percent) 8 14 24 43
Post September 11 attack on the World Trade Center, the volatility in the gold prices led to a steep decline in the demand for gold. In 2002, the gold demand declined by 19 per cent, from 843 tonnes to 680 tonnes. However, Tanishq was on a roll. It grew its retail sales during 2002-03 to Rs 332 crore (Rs 3.32 billion) from Rs 239 crore (Rs 2.39 billion). Almost Rs 57 crore (Rs 570 million) came through corporate
sales and exports. Corporate and institutional sales had become an unexpected money-spinner for the jewellers. Today, Tanishq counts companies like Hindustan Lever Limited, Pfizer, National Panasonic, UB Group, Tata Tea and Tata Chemicals among its clients. "We saw corporate sales as a new route to customer acquisition. Institutional sales help us beat targets," says Kurian. Since the last three years, Kurian and his team have brought in quite a few changes to the way Tanishq operates. A steady stream of jewellery collections each with its distinct target audience has been launched. Aria, for seven stone diamond jewellery, Hoopla, focused on diamond studded hoops and Collection-G for lower priced gold jewellery with an interesting twist are just a few lines that have come out of the Tanishq stable in the last three years. Manufacturing has been made more flexible. New Japanese manufacturing machines have been introduced at the Hosur, Tamil Nadu plant of the company. The emphasis is now on customisation according to customer demands. The challenges remain. Profit figures have yet to rise significantly. In 2002-03, on revenues of Rs 389 crore (Rs 3.89 billion), Tanishq made a profit of only Rs 7.82 crore (Rs 78.2 million). A slew of national brands have sprung up. From Nakshatra to TBZ to Carbon, Tanishq has to battle a lot more at the market place. Yet, Kurian says now it's a great time to be in business. "We believe jewellery business is one of the few 'China-proof, WalMart-proof' kind of businesses," he grins
Tanishq News Headlines
Tanishq launches ‘Free gold coin offer’ campaign July 19, 2008 (India) Tanishq to spread its radiance with new stores
May 15, 2008 (India) Celebrate Akshaya Trithiya with Tanishq jewellery May 02, 2008 (India) Tanishq Jodhaa Akbar collection - prêt January 28, 2008 (India) Royal Mughal appearance in Tanishq jewelry January 28, 2008 (India) Tanishq opens 3rd exclusive showroom in Chandigarh November 20, 2007 (India) 100th store in Patna & still counting…Tanishq October 26, 2007 (India) Tanishq is a perfect gift for your sister! August 18, 2007 (India) Tanishq targets US jewelry market April 09, 2007 (India) Tanishq unveils coveted Miss India 2007 crown March 23, 2007 (India) Tanishq launches elegant fashion earring collection November 16, 2006 (India) US to shine with Indian jewellary November 03, 2006 (India) Celebrate DHANTERAS with exquisite jewellery from Tanishq October 10, 2006 (India) Tanishq Jewellery adds glamour to women's ensemble October 04, 2006 (India) Tanishq expects 15-20% sales gain this year
August 03, 2006 (India) Tanishq to strengthen its presence July 31, 2006 (India) Tanishq launches Colors of Royalty range jewelry April 17, 2006 (India) Tanishq's 'up to 25 per cent off’ scheme January 31, 2006 (India) Tanishq introduces exquisite 'Paheli Collection' July 02, 2005 (India) Tanishq introduces exclusive 'Paheli' collection June 24, 2005 (India) Tata’s Tanishq registers sales worth Rs 570 cr in FY-05 May 06, 2005 (India) Tanishq launches exquisite collection for women’s day March 07, 2005 (India) Tanishq and Titan declared ‘The Most Admired Brands Of The Year’ at LIFA January 27, 2005 (India) Tanishq Launches Aria Collection October 07, 2003 (UAE)
Titan opened its first Tanishq jewelry brand outlets in Chicago and New Jersey by January 2008. Company aims to expand this into a 10-store chain with initial investment of US $6-7 million. Tanishq has targeted the world’s biggest jewelry market,
through either franchisee or self-owned outlets. Currently, US jewelry market is valued at around $16 billion. The Indian jewellery manufacturer plans to launch its pilot retail jewellery store in Chicago, US, in July. The store is proposed as a 2000 sq.ft. Facility, where the jeweller would retail 18 karat gold and diamond studded jewellery. The designs at the store have been inspired and themed basis the lifestyle of modern American women, with concepts like Rain, Yoga, while native American influences – like a local tree in New York have also inspired the jewellery collections. Price points for the jewellery have been determined between $400-$12,000. Tanishq would inch its way to open a second store in the next three to four months, in New Jersey.