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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?
For the growth and plannning of a business there are a few things that are important: Market information Market information is making known the prices of the different commodities in the market.MARKET RESEARCH FOR BUSINESS PLANNING & GROWTH Market research is for discovering what people want. Widely used bases for segmenting include geographic differences. . 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? they be Market segmentation Market segmentation is the division of the market or population into subgroups with similar motivations. It can also involve discovering how they act. or believe. Once that research is complete it can be used to determine how to market your specific product. the supply and the demand. need. Information about the markets can be obtained in several different varieties and formats.
The market size is more difficult to estimate if you are starting with something completely new. Market trends The upward or downward movements of a market. In this case. demographic differences. A few techniques are: • • • • • • Customer analysis Choice Modelling Competitor analysis Risk analysis Product research Advertising research . your customers. during a period of time. But besides information about the target market you also need information about your competitor. and psychographic differences. you will have to derive the figures from the number of potential customers or customer segments. products etc. use of product differences.personality differences.
Tamil Nadu. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. Tanishq is the jewelry business group of Titan Industries Ltd . With a retail sales of 1200 crore last year and gunning for 2000 crores this year.TANISHQ – AN INTRODUCTION Tanishq is India's largest. most desirable and fastest growing jewelry brand in India. This year marks a decade of successful innings for Tanishq.35. which has delivered value to its customers and shareholders in a complex category. Tanishq has arrived in the Indian jewelry market. Every product at Tanishq is painstakingly crafted to perfection. It is a story of a successful Indian enterprise. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Started in 1995. marked by its completely localized front end as well as back end. Located at Hosur. jewelry at Tanishq is crafted in one of the world's most modern factories. ft.000 sq. the 1.promoted by the TATA group. . factory is equipped with the latest and most modern machinery and equipment. India's most respected and widely diversified business conglomerate. The factory complies with all labour and environmental standards.
Jewellery is one of the last great commodity frontiers in India.Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. the only non destructive means to check the purity of gold. Tanishq also introduced professional retailing in the disorganised Indian jewelry bazaar. it has remained so because this market is very fragmented. very unorganized.Harish Bhat. select from the best jewelry collections available in the Indian market. Exquisite platinum jewelry is also part of the product range. Tanishq introduced innovations like Karatmeter. 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". where women can shop with comfort and peace. 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. without worrying about the purity of the jewelry they are buying. as well as. It introduced technologybacked challenge in a category completely governed by individual trust. Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities. . . It exploded the market with facts about rampant impurity across India. Tanishq. CEO.
Opp. 7.com . Khar. Mumbai-400 020 Ph: 022-22821621/ 22826043 / 22838801 Fax: 022 . Kailash Plaza.LOCATING TANISHQ Tanishq had its first showroom in Chennai in 1996. Veer Nariman Rd . Only six of these are owned by the company.25128020 / 25127734 / 25128020 / 25127684 E-mail:email@example.com 077 Ph: 022.22875155 E-mail: btqmum@tanishqmail. Ghatkopar East. Mumbai-400 052 Ph: 022-26484846 / 26495959 Fax: 022 . Odeon Cinema. Mumbai . Vallabh Baug Road. Brabourne Stadium.Linking Road. Churchgate.26487979 E-mail: btqkha@tanishqmail. Today it has over 60 showrooms in 47 cities. There are six branches in Mumbai Tanishq 365/C.com Tanishq 19-21.com Tanishq No. The rest are run by franchisees.
Mumbai:400050 Ph: 022-67100687 / 26424846 .com Tanishq. Inorbit Malls Mind Space. Mulund (W) Mumbai Ph: 022 67969627 / 67997874 / 39576922 E-mail:btqmln@tanishqmail. Mumbai .Tanishq Level 2 R Mall Lbs Road.com Tanishq G-11. Bandra(W).400068 Ph: 022 56406945 / 56406938 E-mail:btqorb@tanishqmail. Malad Link Road. Durga Chambers. Rk Patkar Marg. Plot # Ctsf-904. 40 Waterfield Road. Malad. Turner Road.
it is important that you make an educated decision. mangalsutras and thalis to the more fashionable earrings. colour and clarity of the stone. Tanishq diamonds come with a certificate of authenticity. Tanishq Gold From the traditional harams. chains. bracelets and rings. When it comes to diamonds at Tanishq you will be spoilt for choice from many collections we have to offer. Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. However. No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these precious stones into breathtaking masterpieces. it has been observed that consumer is an easy target to several malpractices like under karatage. to enable you to know exactly what you are paying for. there is a lot to choose from at Tanishq. each unique and splendid in design. under valuation of the gold .PRODUCT LINE & THE COLLECTIONS PRODUCT LINE: Tanishq Diamonds The sparkle of diamonds has always attracted the human eye. stating the caratage. In India Gold has always been associated with security and is the most valuable form of investment. As with any significant purchase. Cut and crafted with utmost care.
but also fair policies to the karigars who craft the jewelry Tanishq's designs in Pure 22k gold are not only unique. teen's collection and regional specific designs. This helps to reflect the true radiance of diamonds. platinum jewelry does not fade or tarnish and keeps its looks for a lifetime. expressing the wearer's individuality but each piece is subject to the intricate process of design. Rare Platinum is rare.sold and unfair buy back policies due to the lack of awareness about these issues. At Tanishq.a celebration of your individuality. men's wear. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki. the coveted treasure of discerning individuals. This exquisite metal is 30 times rarer than gold. Eternal . Tanishq Platinum Metal at its best. We ensure that we have something for everyone with our baby range. Platinum's rarity makes it exclusive and distinctive . There is very little platinum on this earth and it is found in very few places around the world. 9 to 5 for the working woman and high fashion. Because it is generally 95% pure (18 karat gold is 75% pure). we cater to every occasion. Tanishq propagates ethical practices not only by assuring the customer purity and selling policies. Pure Platinum's purity endows it with a brilliant white luster. from the stunning Aarka collections to the exclusive Nakashi work. crafting and stone setting with stringent quality standards at every point.
. Platinum does not wear away and holds precious stones firmly and securely. the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost. and platinum is no exception. beautiful. Tanishq's Platinum represents excellent value for money. rare. and the perfect host for diamonds. which gets its white colour due to palladium or nickel. However. precious qualities that make it worth paying that little bit extra for. The price may be higher than a similar item in gold but platinum is pure. such as the Kohinoor diamond. Platinum is a metallic element while White Gold is a Gold alloy. Platinum and White Gold are distinctly different materials and must not be confused.Platinum jewelry is the perfect choice for a lifetime of everyday wear. part of the British crown jewels. Some of the world's most famous gems are set in platinum. enduring. classic. All precious metals can scratch. luxurious.
a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience. .THE COLLECTIONS: The Diamond Collection No gemstone expresses human emotions more powerfully than a diamond After all. Cut and crafted with utmost care the diamond collection renders each piece eternal.
Crafted by the best in the land. A vision of beauty. Her jewels are exquisite. As pure as the blessings bestowed on her. . The shenai announces festivity. Everyone around smiles. She walks demurely. The priests chant auspicious promises.The Wedding Collection The bride blushes.
oriental art embellished with occidental architecture.The Zoya Collection Intricacy coupled with the simplicity. . nature's bounty matched with man's ingenuity. Secrets of the pharaohs masked with the mystery of the cosmos. The magnificence of history interwoven with linear contemporary.
inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate Stiletto designs . has a range of over 300 exclusive designs. Keeping in tune with the raging popularity that earrings currently enjoy.The Fashion Earring Collection The Fashion earring collection'. the Tanishq design team has created the Fashion earring collection.
However.The Kundan and Polki Collection Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages. 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). Tanishq ensures the karatage and net wt of the product. It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many stages. each crafted by a different set of highly skilled karigars. .
reminiscent of the magical Victorian era. The Colors of Royalty is a line of exclusive gems and stone studded jewelry . where the 25 finalists wore it. drapes and patterns of the Victorian period.The Colours of Royalty Collection Colors of Royalty a range of exquisite studded jewelry. fashion. The collection is inspired by the classic design essence and sensibilities found in the architecture. This exclusive collection was launched at the Ponds Femina Miss India 2006. design. 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. Tanishq has incorporated the timelessness of these styles into exquisite jewelry designs to present a collection where fashion and tradition converge.
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. rooted in her tradition.This range attempts to strike a balance between convention and fashion by creating designs suitable for the progressive Indian woman.It is a must have for a Indian women. passion and have been the most coveted gemstone for many years.
This launch reiterates Tanishq's focus on catering to region specific tastes and preferences.This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. Consumer survey indicates that women attach great inspirational value to rubies. India offers great potential for the Moham collection where Ruby studded jewelry enjoys great popularity and acceptance. 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 . second only to diamonds.
Captivating Exquisite crowns and jewelry Tanishq. specially crafted for India's leading beauty pageant. . Femina Miss India 2007. India's most innovative jewelry brand. unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry.
The large red stone. very like the universe itself. round brilliant cuts. Miss Universe: This crown has the perfect cosmic blend of elements. Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head. princess. Inspired by interplanetary movements and colors of flora and fauna. each of these crowns convey a story.Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-changing neverchanging" Indian woman. Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the base of the crown.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' . set slightly on the side. set slightly on the side. baguettes. a story of their "ORIGIN". Crafted with painstaking detail. Miss Universe: This crown has the perfect cosmic blend of elements. The large red stone. is the symbolic and stylised 'teeka'. . very like the universe itself.the Indian touch to the contemporary styling. The inspiration behind each crown is distinct and personifies the spirit of the title. these tiaras are a stunning combination of trillions. is the symbolic and stylised 'teeka'. pears and specially cut colored crystals.
Miss Earth: This crown derives its inspiration from the essence of nature.her flora and fauna. 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. and sets off the varying hues of the sea on the rest of the crown. Based on the fabulous colours and movement of the peacock and its feathers. design and tradition blend perfectly. The contemporary styling has been brought to life with sensuous curves. Tanishq not only has .sitting snugly on the forehead of the wearer. rhythm and symmetry of classic Indian motifs in an unconventional synthesis. Tanishq has translated the timelessness of these designs to a modern context and brought to life a collection where fashion. And of course the vivid rectangular blue stone that expresses the teeka of victory. TANISHQ FOR YOU At Tanishq its not just the products. The jewelry crafted beautifully with interspersion of diamonds and colored stones. this stunning piece is an intriguing study in harmony and contrast. balance. We make sure that we give you the premium quality of not only product but service as well. These beautiful and vibrant gemstones in different shapes. is an ode to the ecstatic beauty and supreme power behind every woman. it’s the experience that matters.
There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings Scheme. that enables to save each month with Tanishq and plan for wedding jewelry purchases. as long as they are in multiples of Rs. Gift Voucher purchase. This scheme provides you with much better returns than other saving options like bank deposits or post office savings schemes. Your monthly installments are safe with us. Golden Harvest Saving Scheme Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes.an exquisite range of designs to meet all your requirements we also offer the benefit of any modification or customization on products. BONUS: • 60% of monthly installment in Annual Plan • 130% of monthly installment in “Extended Plan” . whereas savings at home could easily get spent.per month to enroll. You could also deposit a larger sum.an Annual Plan (12 month installments) and an Extended Plan (18 month installments).500/. Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget.500/. In addition.You can choose from two convenient savings scheme options. How much money must one invest to enroll in the Savings Scheme? You need to invest only Rs. Exchange of gold and diamonds etc.
refining and taxes for the jewelry given by the customer. At Tanishq. 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. 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? . When you exchange any Tanishq gold coin with jewelry. 8% of the value is deducted for costs involved with testing. When you exchange any other bank’s gold coin with jewelry there is a 4% deduction on value. a single gold rate is maintained for buying or selling gold jewelry.At the end of the scheme period. you get the benefit of the current gold rate and full value exchange without deduction.
Rs. something of her choice! Purity Checks Purity checks allow lovers of the yellow metal to test the purity of the gold they already own. thus giving you the benefit of any appreciation that would have taken place in the price of gold or diamonds Gift Vouchers Gift Vouchers make the perfect gift for friends and family. 2501/-. At Tanishq. 25001/.So now you no longer need to worry about gifting your loved one. Gift vouchers are available in the following denomination Rs. 5001/.and Rs.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. These are available at all Tanishq showrooms across India and are also redeemable across the country. 10001/. Rs.. Playing a significant role . when you exchange diamond jewelry purchased from us it is exchanged for its current value.
which is the most scientific measure of purity in the world. Anuttara You can also become the member of Tanishqs loyalty programme Anuttara and avail of various discounts and priveleges. nondestructive means of testing the purity of gold. giving the consumer an unmatched benefit when buying or selling gold.in this is the Karat meter. It is in fact the most scientifically proven. TANISHQ RETAILING . 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. It uses X-rays to give an exact reading of the purity of gold in just three minutes.
innovation have been the hallmark of Tanishq all these years. the key to building stronger competitiveness will lie in enhancing network coverage. 1250 crores in the last fiscal. wide network. a concept unique to branded jewellery segment at that time. This success of Tanishq is a result of an exclusive blend of exquisite designs. Tanishq Design Studio has created exquisite and varied collections like Fashion earrings. trust and reliability." Tanishq’s retail strength goes beyond its innovative identity and extensive reach. C K Venkatraman. Everydays. Mr. 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. a philosophy of customer care. only the strong player can emerge victorious. Tanishq. highly focused communication strategy and innovative retail strategy. Tanishq has constantly formulated an innovative product strategy this journey in line with the evolving consumer tastes. most importantly. 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. In the future. brand equity and logistics. innovation. Tanishq has undertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day / Professional Day etc that were . a management model of excellence and. Amid the keen competition in the Indian jewellery market. local sourcing strategy. 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. both company owned and franchisee outlets. COO. 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.Tanishq ventured into jewellery retailing in 1996 through exclusive stores.
It conveys a feeling of self-confidence and individualism that characterizes the Indian woman. it is at all times keyed-in to their ever-changing demands. Kormangala Bangalore and Bund Garden Pune . Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market.” Tanishq the "Revitaliser of Tradition" Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata. more and more people will be able to share our mindset. As our company expands. 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. Brand Tanishq is for every Indian woman. In addition. 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. 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. 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. . moods and tastes. Tanishq’s exclusive consumer reward programme etc. Tanishq will build new logistics centres and upgrade existing ones. South Extension Delhi. The offerings are in tune with fashion and yet do not lose touch with tradition. Tanishq has also endeavored to be part of every occasion in an Indian woman’s life through festive promotions.unexplored avenues in the industry. Following more than 40% percent growth in operations last year. customer contact programmes as well as through Anuttara.
Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept stores across the country. . 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. The stores have a contemporary feel while retaining the flavor of the past.The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept stores.
• Choose the position that is most valued by the consumer. This is also called your marketing mix. Your market position is one or more selected benefits or features that make your operation unique and different. • Determine what the target consumer desires. TANISHQ MARKETING STRATEGY .MARKETING Marketing Equals the Four Ps Part of marketing is identifying the mix of "Ps" that makes your service unique. The following steps will help you define your marketing mix: • Identify your target market. 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. • Assess whether you have any advantages over your competition in delivering the desired service. 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.
Su-Raj (India) Ltd. Many potential customers thought the products were over priced and associated the brand only with the rich. Titan also observed that the changing lifestyles demanded lighter and trendier jewellery. started selling 18-carat gold jewellery under the brand name of Gili. The critical success factors in the business were quality. was mostly unorganized. Formal consumer surveys showed that though brand awareness was quite high. it suffered from several negative perceptions. Mumbai based jewellery exporter. Before 1992. Chandra. With its original focus on exports. private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Other well known domestic players included Tribhovandas Bhimji Zaveri. Gitanjali Jewels. as part of economic liberalization. Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Titan realized that there was a huge untapped market for branded jewellery in India. fashionable design. Tanishq faced several problems. Tiffany.000 crore. De Beers and Ashton Mining. In 1992. the government abolished the Gold Control Act of 1962. launched its 22carat gold and diamond jewellery in 1997. In the 1990s. Among the foreign players who entered the market were Cartiers.5 lakh players. After its launch. only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. a number of brands entered the Indian jewellery market. . India was the second largest consumer of gold in the world after USA. Mehrason's and P. In 1993. Foreign investors were allowed to hold up to 50% equity in mining ventures. In 1995.When Titan launched Tanishq in 1995. allowing free import of gold. the jewellery industry in India valued at Rs 40. with around 3. C. and good aftersales service.
'When you want to say thank you. given the diverse nature of Indian ethnicity. it would have to satisfy the tastes of all regions. Titan also decided to do away with the shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998. Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people.Hence. 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. Tanishq delivered gold coins worth Rs. the designs became more ethnic. Tanishq introduced 22-carat ornaments. which it had ignored for long. Titan also tapped institutional customers also. Tanishq entered the studded jewellery segment. The same year. Titan realized that. . Titan also decided to transpose designs by stocking Bengali designs in Delhi.. In 1998. In early 2000. So. 20 crores to Maruti Udyog Ltd. In 1999. say it in gold'. Titan decided to change its strategy on two fronts: Value proposition Retailing. to be given away as gifts to Maruti car owners. it made miniature gold cars for Hyundai Motors to be given to select dealers. it launched the corporate gold gift scheme . Customer surveys revealed that gold jewellery was not bought so much for design as for value. Since the European designs in 18-carat gold did not find any takers in 1997.
Branded players such as Tanishq. and some of them even launched their in-house brands. However. In other words. It provides employment to 1. Oyzterbay. Given the opportunities the branded jewellery market offered. 400 billion per annum growing at a pace of 20 to branded jewellery in the total small (about Rs. affordable and lightweight jewellery soon gained familiarity. . 10 billion of the jewellery market in 2002). In India. it accounts for nearly 20 per cent of total Indian exports. Instead of being regarded as only an investment option. Trendy. The Indian market is laden with gold jewellery of varying karatage. which has seen huge appreciation in value terms in recent times. Gili and Carbon opened outlets in various parts of the country. The Gold Rush In the late 1990s. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. making this sector integral to the economy and one of the fastest growing industries in the country. jewellery was being prized for its aesthetic appeal. though 30 percent annually. Worldwide. the Indian jewellery market witnessed a shift in consumer perceptions of jewellery.3 million people directly and indirectly. the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. the number of gold retailers in the country increased sharply. Traditional jewellers also began to bring out lightweight jewellery.THE JEWELLERY MARKET Jewellery play a significant role in Indian customs and traditions. the focus seemed to have shifted from content to design. the share of jewellery market was still Rs.
In the 1990s.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. Gold Jewellery Market in India Before the liberalization of the Indian economy in 1991. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. consumers trusted only their family jewellers when buying jewellery. .000 retailers. In 1993. Consequently. The abolition of the Gold Control Act in 1992. only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. mostly family-owned. gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures.000 workshops supplying over 350. These measures led to the entry of foreign players like DeBeers. the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices. the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. overseas banks and bullion suppliers were also allowed to import gold into India.' This led to a highly fragmented and unorganized jewellery market with an estimated 100. Moreover. single shop operations. Tiffany and Cartiers into the Indian market. allowed large export houses to import gold freely. In 1997.
under-caratage was prevalent. Titan sold gold jewellery under the brand name Tanishq. Jewellery was fabricated mainly in 18.. while Gitanjali Jewels. launched its collection of diamond and 22 -carat gold jewellery in 1997. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd. which marketed the Tiffany range of products in India. India had the highest demand for gold in the world.In 2001. . 22 and 24-carat gold. 855 tons were consumed a year. most gold jewellery advertised in India as 22-carat was of a lesser quality. According to a survey done by the Bureau of Indian Standards (BIS). Carbon and Tribhovandas Bhimji Zaveri (TBZ). Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company. Oyzterbay. Beautiful. Over 80% of the jewelers sold gold jewellery ranging from 13. As Hallmarking was not very common in India. a Mumbai-based jewellery exporter. 95% of which was used for jewellery. Pranda Su-Raj (India) Ltd. sold 18-carat gold jewellery under the brand name Gili. The bulk of the jewellery purchased in India was designed in the traditional Indian style. Cartiers entered India in 1997 in a franchise agreement with Ravissant. The Mumbai-based group.5 carats to 18 carats as 22-carat gold jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market. Dagina. launched its own range of studded 18-carat jewellery.
the average Indian bought jewellery for investment rather than for adornment. Trendsmith conducted a survey to understand the shifting needs. Jewellery made of 18karat gold was not favored as it was considered a poor investment. since the late 1990s. Additionally. • The younger generation was looking at trendy. 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. A jeweller or goldsmith in a local area had a fixed and loyal clientele. there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. The buyer had implicit faith in his jeweller. motivations and aspirations of consumers in the jewellery market. contemporary jewellery and clearly avoiding heavy. and to identify new trends and opportunities. The focus had shifted from content to design." In October 2002. especially from consumers in the 16 to 25 age group. "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. According to Samrat Zaveri. who regarded jewellery as an accessory and not an investment.Gold Jewellery Becomes Fashion Accessory Till the early 1990s. the local jeweller catered to the local taste for traditional jewellery. Confidence in the local jeweller was the hallmark of the gold jewellery trade in India. There was a rise in demand for lightweight jewellery. . CEO of Trendsmith. The new millennium witnessed a definite change in consumer preferences. However.
the challenges were many.Strategies for Wooing Customers In the late 1990s. the growing number of manufacturers needed a retailing platform with global and national reach. Chief Operating Officer of Tanishq. players in the branded gold jewellery market formulated strategies for wooing customers. According to Jacob Kurian (Kurian). "We are changing the attitudes of customers from blind trust to informed trust. Tanishq's strategy was to create differentiation and build trust. with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT). 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. • The Indian consumer was willing to experiment with new designs. and allowed many unethical practices to flourish.traditional gold jewellery. a wide range of new designs became available. Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers." To increase its marketshare. As the jewellery market was highly fragmented. lacked branding. In addition. All these led to the proliferation of branded jewellery players. In the late 1990s and early 2000s. Said Kurian. . • The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. Tanishq .
rings and chains in 22 karat gold with prices starting at Rs 1. On the basis of this feedback. According to Kurian. the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. but small town markets as well. each showroom could select the designs it would carry. In fact. Tanishq's USP was the purity of its gold. 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. Tanishq focused not only on urban markets. earrings. In 1999. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. Tanishq decided to focus on quality control. the best returns on investment came from small towns. it introduced caratmeters which showed the purity of gold.According to Kurian. "If differentiation plays the role of primary attraction. It also launched Lightweight Diamonds.' The collection featured neckwear. competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. In November 2002. bangles. with prices starting at Rs 3. For this. Real estate was less expensive in the small towns than in large urban centres. To stay ahead of competition from local jewellers. . Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers. According to Kurian."12 The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. For a national brand a generic design concept with regional variations had to be evolved. Tanishq introduced a new collection of jewellery called 'Lightweights.000. Accordingly. trust takes care of lifelong loyalty. The emphasis had to be on design because local jewellers could offer to design any pattern according to the customer's specifications. Besides.100."13 One way to create differentiation was through design.
several regional players have opened branches to leverage the trust and reputation that they have built up over the years. branded players must also find some way to differentiate themselves. Besides the major brands. Carbon. affordability and quality will be a key element in sustaining a brand. Oyzterbay. branded players require focused advertising and astute salesmanship to compete with traditional jewellers. In addition. which appear to have a good future in the Indian jewellery market .All That Glitters is Not Gold Branded jewellery players will continue to face lot of competition from local jewellers. While the success of a particular brand will depend on differentiation. In order to gain marketshare. 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.Tanishq. Some of the players also used diamonds and platinum. To compete with traditional players. 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. only a few of them experimented with the pink and white forms of gold. Gili and Trendsmith.
with an equally dazzling Aishwarya Rai as its brand ambassador. They have aptly put their slogan as "brightest circles of light. The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. Nakshatra diamonds claim to shine your glamour and love life. evolving to suite her style & Personality. one of the leading diamond brands of the country. Asmi caters to the women of substance & satisfies her mind for rewards recognition. attitude and independence. goal-oriented & with an inner fire. The traditional diamond is the most wanted design among Nakshatra diamonds. Nakshatra Diamonds The world renowned Nakshatra diamonds were launched in 2000.SOME OF TANISHQS COMPETITORS Asmi Asmi. was launched. In 2002 by The Diamond Trading Company Ltd." Elegant and graceful Nakshatra diamonds are the epitome of passion. Mandira Bedi & Perizad. The brand has been endorsed by various celebrities such as Kajol. All these women epitomize the different strengths. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. . (DTC). An Asmi woman is closely identifies with free-spirited.
occasion. targeting mainly the youth who wanted to celebrate Valentine's day. Since then. modern and independent thinking women. and phase of life through its up and downs. D'damas Diamonds D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. Adora diamonds are for adornment of every moment.Gili Gili was launched in 1994. Nirvana diamonds are targeting at fashion conscious. was launched in 1987 in India. 90 crores. D'damas Diamonds claim to promote a range of emotions through their collections Adora Diamonds Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. . Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. the brand has clocked a turnover of Rs. Nirvana Diamonds Nirvana Diamonds from Fine Jewellery (I) Ltd. As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. Adora means glory in Spanish and claims that its diamond collection is themed on love.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds.
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. 2004. Kiah Diamonds World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched its exquisite Kiah diamond collection in October. .Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature.
India's Top Ten Best Known Jewellery Brands . proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group company. More than 65 per cent of the target audience had no hesitation in coming up with the name. The difference between the leaders and the followers is always greater when the former have a head start. over 70 retail outlets across the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience . Titan Industries) has paid off well. the possibility that they will continue to be at the top is a foregone conclusion.all these factors combined to make the brand into a household name.TANISHQ – MARKET RESEARCH MARKET research On TANISHQ Tanishq emerges as the best known brand with the highest awareness and recall.TNS Survey shows that Tanishq is the best known brand across the three cities of Mumbai. Two decades in the business. The Solitaire . a finding which lends credence to the leadership factors. And when the pace and efforts of the leaders intensify. New Delhi and Bangalore.
The survey was conducted through personal interviews over a period of 15 days. the fact that the target group was covered in and around shopping malls. New Delhi and Bangalore was targeted solely at women. "Men buy products while women choose brands. banks. a fact which jewellery brand managers in India will not refute. made the sample more relevant to the objectives. corporate areas and commercial zones. Hence the Solitaire . While the sample size was small.The Survey The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants coming in all the time. 600+. Consumer behavior also is undergoing a transformation.TNS Survey across Mumbai. ." says model-turned-designer and CEO of a billion dollar company. Kathy Ireland. 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.
Thus. Quite naturally. . the toppers in the best known category come up trumps even here. Even in a high-profile brand at least a few lines are made affordable to most people. price structure and affordability are in conflict with aspirations. This may be because most jewellery brands have a varied price range that caters to women belonging to different segments of society. However.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. there has been little or no difference observed in our target group in their choices.
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.What Woman Want? While Tanishq and a few other regulars do occupy women's mind space. gold consumption in India is showing tremendous growth. both working and non-working. With the economy moving upwards and income levels increasing. 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 . picking up gold jewellery without precious stones as their most preferred jewellery.
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
of course. Tamil Nadu and its first satellite watch assembly unit at Dehradun. Titan set up a joint venture. Behind this success was. At this point of time. The company. it also started its jewellery division under the Tanishq brand. incorporated in July 1984 in Chennai. The company was India's leading manufacturer of watches. In the same year. marketed under the Titan and Sonata brand names with a 25% share of the total domestic market.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. with Timex Corporation of USA to market Timex watches in India. a change in the perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about. one of the world's largest manufacturers of watch movements. Background Note Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO). Initially involved in the watches and clocks business. Hence. Jewellery had predominantly been used as an investment rather than adornment.' to 'Titan Industries Ltd. Titan changed its name from 'Titan Watches Ltd.1 And in 1995. In the late 1990s. the jewellery business was highly localized and the concept of branded jewellery did not exist.example of a company single-mindedly working to make its own mark in the tradition bound Indian jewellery market. Titan established its first manufacturing facility in Hosur. Uttar Pradesh was started in 1990. a well-planned and wellexecuted marketing plan. In 1992. Timex Watches Limited.2 million jewellers scattered across the country. Titan later ventured into the jewellery businesses. People generally bought gold from the same family jeweller they had trusted implicitly for . India had around 0. was started in technical collaboration with France Ebauches (a French company).
given the diverse nature of Indian ethnicity. However. from the very beginning.generations. these jewellers made the jewellery to order and often bought back their products at the prevailing market rates. when it shifted its focus to the domestic market. Tanishq said. Tanishq also made attempts to redefine traditional styles in its designs. The company also began seasonal and localized promotions . Setting Things Right Tanishq found out that it had gone wrong mainly in two areas . "When we launched the Tanishq range. its designs were predominantly Western. Vasant Nangia. traditional designs. Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewellery only from family jewellers. our designs were not appreciated initially as they were believed to be extremely Western. and the same line of jewellery was sold in India as well. Moreover. The sleek and contemporary designs being offered did not go down well with the Indian customer who was used to heavy. erstwhile Chief Operating Officer. Also. it was unable to sell these designs. we offered only 18 carat gold. Tanishq realized that. Tanishq's research revealed many other loopholes in its strategies. Thus. Therefore the first step was to change the brand positioning from that of an elitist and Westernized offering to a more mainstream. the emphasis shifted from the erstwhile modern designs to more ethnic ones and traditional ornaments (based on designs from various states) were launched. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well.the product proposition and retailing. Initially with a focus on the export market." Over a period of time. it would have to cater to tastes of all regions Therefore. Indian one.
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. such as during Durga Puja in West Bengal. Onam in Kerala.based on Indian festivals. Karatmeters though expensive. Traditionally. These designs. etc. In 1999. conventional jewellers used the touchstone2 to test the purity of gold. though Indian. Tanishq introduced the revolutionary concept of Karatmeters in its retail boutiques. Johnson Verghese.500 designs based on current trends and the feedback from stores. which was most important to the customers. proved to be the biggest USP for Tanishq in the coming years. divisional head. Tanishq decided to address the issue of gold purity. which did well across the country. "We also decided to go in for transmigration of designs. Diwali in north India." Tanishq's team of in-house designers came out with about 3. Apart from the fact that the customers did not trust the method. Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments. Almost all the outlets stocked the 'best selling' range of designs. it was also alleged that a slight amount of gold was always lost while testing. The Karatmeter used Xrays to give an accurate reading of the constitution of gold in the ornament within three minutes. Tanishq gave complete freedom to the retail outlets to pick up designs. Imported from Germany at a cost of Rs 1 million each. said. In order to add some value proposition to rise above the competition. At least 10% of these designs were changed every quarter and fresh ones were added to the stock. . which they thought would sell in their stores. provided variety to what the people in a particular area were used to seeing. The customers had to accept this for want of an alternative. sales and marketing.
the rest in smaller cities with a population of at least 0. Kolkata. Tanishq conducted tests on 10.Fact. This had become the norm all over the country. This did not help the Tanishq brand to make its mark. In an attempt to elbow out competition.5 million such as Trichy. it had 47 'Tanishq boutiques' in 37 cities – 12 were in the metros . Tanishq had to struggle hard to break this convention. its sales increased by 20-30%. 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.000 ornaments selected at random. Chennai and Bangalore. The concept was later on heralded as a bold step towards professionalizing the Indian jewellery business." 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. Tanishq decided to set up its own chain of retail showrooms in 1998. By July 2001.Delhi. Nagpur. customers began to realize that the rates they were paying for Tanishq jewellery were indeed justified. Mumbai. A Tanishq official commented. it sold most of its products through multibrand stores. In some cases the caratage was found to be as low as 10% and almost 65% of the gold tested was below 22 carats. Tanishq's . Having realized this. the jewellers kept the making charges very low to entice customers. "They have begun to understand the total value proposition that Tanishq offers. replacing many long-standing relationships with the traditional jeweller. As the caratage offered was on the lower side in traditional jewels. Amritsar and Patna. When Tanishq was launched. The number of boutiques was expected to reach 50 by the end of 2001 and to 70 by 2002. This proved to be a very wise move as sales picked up almost immediately. As the concept of Karatmeter became more widely known.
Tanishq set up an ultra-modern and large-scale manufacturing unit in Hosur. which far exceeded that offered by any other jeweller.efforts to standardize the price of its ornaments proved to be another milestone in its success." Tanishq even had plans to link directly with the London Metal Exchange (LME) for daily quotes in the future. which enabled Tanishq to charge the same price across the country. Tanishq decided to have a standard gold price across all its showrooms from March 2000. Nangia said. The unit had facilities like refining. This in-house manufacturing facility was the main reason. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deductions depending on purity. One of the company's most important initiatives was customer service enhancement. but this would represent a formalization of that system to the public. Tanishq based its gold prices on international exchange prices. In a bid to control gold price variations in different parts of the country. Tanishq launched a direct consumer contact programme and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. resulting in prices often being lower than the local market prices. . Gold prices differed across the country as they were based on different parameters concerning the local markets. The standard price was made binding on all Tanishq showrooms. "We already have a kind of standard pricing in place. 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%. The company also kept the entry-level price as low as Rs 600 (for a pendant) and offered a range. Tamil Nadu at a cost of Rs 600 million.
Tanishq delivered 50. comprising national-level spends (both electronic and print media). By 2001. the TVS Group. Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. an associate of IMRB. though nascent. grew at the rate of 20-30% during 1998-2000. For the first time. Gili and Carbon. while a portion was also earmarked for promotions tailored to match regional preferences. Ceat and Liberty Shoes The communication and promotion budget was increased from Rs.25 million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. say it in gold'). The communication focused on design and quality instead of the price. launched in December 1998 proved to be a major success. The company's corporate gold gift scheme ('When you want to say thank you. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis. 65 million in 1999-2000 to Rs 100 million in 200001. regional budgets. Whirlpool. Future Prospects The Indian branded jewellery market. This gave the company the benefit of benchmarking against local and international players and also aided in improving repeat purchases. aiming to give the brand a round-the-year presence and enhance awareness. For instance. which was Tanishq's single largest market. As a result. the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola. .000 customized gold coins to 0. substantial promotions were carried out. in New Delhi. The Rs 100 million was split into four parts. Tanishq initiated a long-term media plan. direct mail and research.A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM). other major players included Intergold. A majority of this was spent towards advertising. the UB Group. Besides Tanishq.
Tanishq tied up with Countrywide Finance for providing pre-approved credit line to the customers at selective outlets. Jacob Kurian who had taken over as the CEO the same month. In a highly innovative move. It has an estimated 2. This was expected to boost sales significantly in the future. Kurian said. "The jewellery market is one of the largest consumer segments in the country. this year. said." Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. in the Rs 400 billion Indian jewellery market. Tanishq unveiled plans to surpass its parent company's turnover by 2002. Not willing to accept this as a 'poor show. "We have finally figured out the jewellery business and should be solidly profitable. 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. A consumer-oriented. Tanishq's share was not even 1%.” .50. In May 2000. highly ethical corporate player will have great opportunity.000 retailers with no national or international brand and no corporate player. There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders. Titan believes that this market is right for consolidation. shorn of any caveat. The company planned to attain a 2% market share in the next few years.However.' Tanishq saw it as a vast opportunity instead. Our growth rates in the past three years have fully substantiated this hypothesis.
which is a huge investment opportunity. "Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing an opportunity to own diamond jewellery and win gold. ADVERTISING & PUBLIC RELATION Promotion Tanishq launches ‘Free gold coin offer’ campaign July 19.PROMOTION. .000 and above. 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 Advertising Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product Tanishq. 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.
T V Advertisement: Tanishq focus on the emotional attachment in the advertisement like engagement. . Print advertisement: In Leading news paper and famine magazines are targeted to do the advertisement. 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. marriage and such other occasions. In short they know their target market and hence do advertising as required.
of course. followed by action and.TANISHQ IN THE NEWS Priya Ganapati in Bangalore | July 04. the jewellery business group of Titan Industries. then betrayal in the family. the company. Tanishq isn't tired of saying that the story of his company mirrors a Bollywood movie. is the blockbuster action thriller from the Tata group. celebration. on Thursday. 2003 Jacob Kurian. a happy ending. After five years of consistent losses. There's drama. chief operating officer (jewellery). Tanishq. announced the completion of a dramatic threeyear turnaround culminating in annual sales growth of 39 per .
The estimated Rs 40. There are over 300. Till the last two years. Tanishq has not only been grappling the tough market conditions but also internal strife and Doubting Thomases. By then. "Many people believe we should not be here today. Tanishq's profitability will also be good enough to offer 28 per cent return on deployment of 25 per cent of the capital. Since. It contributes 40 per cent to Titan's business and is expected to account for 55 per cent by 2007. But I am glad we have proved them wrong. During 2002-03. By 2007. its launch. 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." says Kurian proudly. it hopes to take that to Rs 800 crore (Rs 8 billion). national players were almost nonexistent. Tanishq recorded a sales turnover of Rs 389 crore (Rs 3.000 jewellers.000 crore (Rs 400 billion) gold jewellery market in India is a rough one.cent and profit growth of 318 per cent. .89 billion) -. They have kept telling us that the business logic is against what we set out to do. Tanishq has already become one of the top five retailers in the country. Today.at consumer prices. each powerful in his neighborhood.
the watches division. Tanshiq launched its first store. However.000 crore (Rs 50 billion) annually due to unethical business practices like under-karatage of gold. In 1996. As a company which was part of the Tata group. the Indian household had a marked preference for 22-karat gold. by the time it acquired the skills and set up the plant. India no longer had a foreign currency problem. Tanishq then decided to focus on the Indian market. imports were easy to come by. demand had come down in the global market. Titan estimates that up customers and the Government is defrauded of up to Rs 5. Clearly. despite that India is the largest consumer of gold in the world. Being ethical too was a problem. when India was facing a massive foreign exchange crisis. the skeptics were asking what was Titan doing in the jewellery business? In the late eighties. Not surprisingly. But that wouldn't help. . the local satraps had a very tight stranglehold on their markets and it was difficult for a pan-Indian player to break into. known for maintaining high ethical standards. Titan. There was no national jeweler that people could buy from. as opposed to the 18-karat designs that jewellery chains worldwide chose to do their designs in. misrepresentation of quality and tax evasion. Tanishq prided itself on delivering customer value through a fair and transparent business model. 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. the world had changed. was told to look for a way to earn its own foreign exchange.One of the largest consumers of gold. supply had grown in Asia and margins had become very thin. In August 1992 a pilot plant was set up and production started in two years later. The jewellery business in India was highly fragmented and ruled over by local players. It was a hitherto untried concept.
he was the one who had charted out the expansion plans. The team had an onerous task on its shoulders. a new and admittedly inexperienced team was put together. So. And like Kurian says it was too soon for the movie to end. But a day after Bhat was announced at the successor to Desai. And worse. It seemed an ignominious way for a Tata company to go.40 crore (Rs 104 million) though sales turnover was increasing. He took along with him six senior executives of Titan. Bhat won and was anointed as the next managing director by Desai himself and Nangia became the chief operating officer.Till 2000. it had very little time on its hands to show a turnaround. In 1998-99 it showed losses of Rs 10. The company was rocked by what happened. A stream of adverse media reports had instilled the fear that its shareholders would pull out anytime. Tanishq could not find its feet in the market and its losses were mounting. After all. Nangia quit." says Kurian. It was a blow that many thought would sink the company. The then managing director of the company. Nangia was the hands-on man at Tanishq. Its high decibel media advertising wasn't working. 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. "The entire sales and marketing team resigned on that day. Many thought this would be finally the way Titan closed down its jewellery business. . Xerxes Desai had a choice between Bhaskar Bhat and Vasant Nangia when it came to deciding who would succeed him. we were in our fifth consecutive year of losses then. Tanishq had quite a few problems on its hands then. A twenty-year veteran of the group. which included increasing the number of exclusive boutiques to 67 from the then 30 and launching a new men's range of accessories. May 2000 turned out to be the defining period in the company's history.
Tanishq's woes were rather simple: There were just not enough customers in its stores. There were other minor tweaks made too. pendants were explicitly mentioned in each ad. So bracelets.96 1998-99 .60 1997-98 . chains. "For a retailing chain.87 7. We just couldn't believe it. that's the worst thing that can happen: having no traffic in the stores. Despite its high-blitz ad campaign. A range starting at Rs 399 was launched.21. many didn't know what Tanishq was about. Sometimes we had to call the security guards because of the crowds. others found it too expensive and some felt that the product was not for people like them. "We had customers waiting for the store to open.But as Kurian saw it. getting customers back into the store became a priority.40 2000-01 2001-02 2002-03 2.82 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. Profits generated Year Profits generated (Rs crore) 1996-97 ." smiles Kurian. Either way. rings. A customer survey revealed multiple problems.10. Ad campaigns now started to list out the products that Tanishq had.07 1." says Kurian. The ploy worked.10. .
In 2002.39 billion). However. Collections for the working women and a new set of contemporary designs were brought into the stores. The rest are run by franchisees. the volatility in the gold prices led to a steep decline in the demand for gold. A year later. from 843 tonnes to 680 tonnes. Tanishq was on a roll. the gold demand declined by 19 per cent. Almost all of the efforts paid off. In all. The company changed quite a few of its original strategies along the way. Tanishq had its first showroom in Chennai in 1996. the company decided to write off some of the financial baggage it had been carrying. 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.The aim was to bring down the price barrier significantly. Tanishq managed to limit its fixed asset investment to Rs 27 crore (Rs 270 million). Tanishq had made its first ever profit in the entire existence of the company.32 billion) from Rs 239 crore (Rs 2. 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. It grew its retail sales during 2002-03 to Rs 332 crore (Rs 3. It was a measly sum of around Rs 2 crore (Rs 20 million). Today it has over 60 showrooms in 47 cities. Almost Rs 57 crore (Rs 570 million) came through corporate . yet it was a beginning. Only six of these are owned by the company. The next year. Profits generated dipped as a result but Tanishq was clearly on a revival.
Since the last three years. Institutional sales help us beat targets. for seven stone diamond jewellery." he grins Tanishq News Headlines Tanishq launches ‘Free gold coin offer’ campaign July 19. 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.89 billion). Kurian and his team have brought in quite a few changes to the way Tanishq operates.82 crore (Rs 78. on revenues of Rs 389 crore (Rs 3. From Nakshatra to TBZ to Carbon. Tanishq made a profit of only Rs 7. New Japanese manufacturing machines have been introduced at the Hosur. Today. A slew of national brands have sprung up. Hoopla. 2008 (India) Tanishq to spread its radiance with new stores . Profit figures have yet to rise significantly. Yet. WalMart-proof' kind of businesses. In 2002-03. Tanishq has to battle a lot more at the market place. A steady stream of jewellery collections each with its distinct target audience has been launched. Tata Tea and Tata Chemicals among its clients. "We believe jewellery business is one of the few 'China-proof. Corporate and institutional sales had become an unexpected money-spinner for the jewellers.2 million). Tanishq counts companies like Hindustan Lever Limited. The emphasis is now on customisation according to customer demands. The challenges remain. UB Group. Manufacturing has been made more flexible. Tamil Nadu plant of the company. Aria.sales and exports. National Panasonic. Pfizer. Kurian says now it's a great time to be in business. "We saw corporate sales as a new route to customer acquisition." says Kurian.
2007 (India) Tanishq unveils coveted Miss India 2007 crown March 23. 2007 (India) Tanishq is a perfect gift for your sister! August 18. 2008 (India) Celebrate Akshaya Trithiya with Tanishq jewellery May 02. 2008 (India) Tanishq opens 3rd exclusive showroom in Chandigarh November 20. 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 . 2007 (India) 100th store in Patna & still counting…Tanishq October 26. 2007 (India) Tanishq targets US jewelry market April 09.prêt January 28. 2008 (India) Royal Mughal appearance in Tanishq jewelry January 28. 2007 (India) Tanishq launches elegant fashion earring collection November 16.May 15. 2008 (India) Tanishq Jodhaa Akbar collection . 2006 (India) US to shine with Indian jewellary November 03.
2006 (India) Tanishq launches Colors of Royalty range jewelry April 17. Company aims to expand this into a 10-store chain with initial investment of US $6-7 million. 2005 (India) Tanishq Launches Aria Collection October 07. 2006 (India) Tanishq to strengthen its presence July 31. 2005 (India) Tanishq and Titan declared ‘The Most Admired Brands Of The Year’ at LIFA January 27. 2005 (India) Tanishq introduces exclusive 'Paheli' collection June 24.August 03. 2006 (India) Tanishq introduces exquisite 'Paheli Collection' July 02. 2005 (India) Tata’s Tanishq registers sales worth Rs 570 cr in FY-05 May 06. . 2006 (India) Tanishq's 'up to 25 per cent off’ scheme January 31. Tanishq has targeted the world’s biggest jewelry market. 2005 (India) Tanishq launches exquisite collection for women’s day March 07. 2003 (UAE) GLOBALIZATION Titan opened its first Tanishq jewelry brand outlets in Chicago and New Jersey by January 2008.
in July. US.000. while native American influences – like a local tree in New York have also inspired the jewellery collections. The designs at the store have been inspired and themed basis the lifestyle of modern American women.through either franchisee or self-owned outlets. Price points for the jewellery have been determined between $400-$12. Currently.ft. . with concepts like Rain. US jewelry market is valued at around $16 billion. Yoga. in New Jersey. Tanishq would inch its way to open a second store in the next three to four months. The Indian jewellery manufacturer plans to launch its pilot retail jewellery store in Chicago. Facility. The store is proposed as a 2000 sq. where the jeweller would retail 18 karat gold and diamond studded jewellery.
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