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Tanishq: Positioning to Capture

the Indian Woman͛s Heart

Prepared By:

India͛s Gold Jewelry Industry
‡ Indian gold jewelry market ~ $12 Billion ‡ Over 25000 small family ʹ owned independent jewelers. ‡ Jewelers were retail stockist. ‡ Back end of supply chain was unorganised group of karigars. ‡ Indian wedding jewelry - ~ 70% of jewelry market ‡ Wedding trousseau consisting of at least 5 pieces ~ $7500 (2008 Gold Price)where per capita income was ~ $1,089

India͛s Annual Gold Consumption .

The Rising Price of Gold .

service at a short notice. ‡ Consumer thinking : Tanishq was just about watches.high frequency of new product introductions.Titan Jewelry Watches ‡ Failure in Europe : Underestimation of factors such as pricing pressures. ‡ Failure in domestic market in 1995: Prices were too high. . watches appeared heavy and clunky.

Move From Watches To Jewelry Titan͛s decision to get into studded jewelery under Tanishq faced challenges: ‡ Changing consumer perception (from 22 karat gold to 18 karat) ‡ Consumer prefernces (from plain gold to studded jewelry) ‡ From traditional to western designs .

͚Not For Me͛ Reaction ‡ Boutiques resembled five star hotel lobbies: spacious. intimidating. and exclusive ‡ Limited inventory on display ‡ Designs were too western ‡ A change of pace product rather than mainstream ͞Do I need to speak english to go in? Do I have to get dressed up?͟ .

‡ ‡ ‡ ‡ . created a level of distrust around jewelers ‡ Retail sales for 2000-01 reached Rs. of footfalls inrease. 166 crores. Tanishq hit the 100 crores mark as a brand.Pioneer The Karatmeter ͚Invoking the Tata tradition of trust and quality͛ TV Ads showed how a karatmeter was used Over 5000 women checked their jewelry 60 % found their pieces to be underkaratage By 2000. ‡ No.

Conflict Over Markup ‡ Tanishq͛s markup for gold: 15% to 25 % ‡ Local jewelers͛ markup : 5% to 15% ͚Tanishq͛s continued losses coupled with with losses in its international watch initiative spelled trouble for titan͛ .

Traditional system Vs. Tanishq system Jewelers Tanishq Vendor or Middlemen Head Karigars Head Karigars Unorganized Karigars Unorganized Karigars .

2001:Disposable income increased ‡ Increased willingness to spend on fashion items ͚ Tanishq: Premium Indian brand targeting Modern Indian women͛ ‡ The seven store concept : Traditional looking jewelry ‡ Tiffany͛s blue box to tanishq red bag .

lightweight diamond and hoopla ‡ Collection G ͚Moving Towards Mainstream͛ Target Customer: Atleast 25 years old. college educated. a good homemaker.2002-2003 ‡ Launched Diva: pearls and diamonds in elegant design ‡ Lightweight gold. socially versatile. smart spender(spend extra if given value for money) . equally comfortable in both modernand traditional settings.

2004-05: Brand Revaluation Several new collections were launched Daytimes Colors Aarka Aamra Results were spectacular: Sales exceeded target of Rs. reached Rs. 570 crores . 550 crores.

2005: Gold Consumer Market Segmentation .

2005-06:Going Traditional ‡ Tanishq Paheli line : A Sellout success ‡ Competition with family jewelers who symbolized tradition ‡ Wedding designs were aggressively marketed ‡ Advertising was customized region-wise ‡ Incorporation of Tata name .

interested in ethnic and local design. lives in smaller town locations ‡ Advertising relied on ͚girl next door͛ ‡ Clever and personalized promotions: Quiz com petition . Engagement parties of couples held at goldplus stores ‡ In six months. Erode broke even with sales of Rs. Ratlam hit Rs 3 crore . 10 crore .The GoldPlus Proposal ‡ In mid 2004. Tanishq team proposed to go after a segment that Tanishq was not serving ‡ This segment only wants Gold . is very price conscious.

Tanishq SWOT Analysis Strengths ‡ ‡ ‡ ‡ ‡ Capital Flexibility Innovative Modern Style Excellent & outstanding advertisement strategy Weaknesses ‡ ͚Not for me͛ ‡ Gold Purchase Rituals ‡ Gold Perceptive .

Tanishq SWOT Analysis Opportunities ‡ TATA Support ‡ The Wedding Market ‡ Globalization Threats ‡ ‡ ‡ ‡ GoldPlus Local Jewelers Gold Significance Government Regulations .

GoldPlus SWOT Analysis Strengths ‡ Marketing Strategy ‡ TATA Support ‡ Traditions & Values Weaknesses ‡ Limited Outlets .

GoldPlus SWOT Analysis Opportunities ‡ Outlets ‡ The Rural Market Threats ‡ ‡ ‡ ‡ Tanishq Government Regualtions Design Stealers Vision of Undisciplined Boy! .

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Problem Analysis Heavy Competition Failure of Gold watches Failure to tap wedding Market ͚͚Not for Me͛͛ perception Internal conflicts between Tanishq and Goldplus .

Successful Strategies ‡ ‡ ‡ ‡ ‡ Complete positioning Introduction of studded Jewelery Very high promotion Pioneering the Karatmeter Elimination of traditional middlemen .

Graph showing the total sales of Tanishq from 1998-2007: .

Recommendations ‡ ‡ ‡ ‡ ‡ Tanishq & GoldPlus. compliment each other Understand their market territories & Characteristics Capitalize their strengths Cross Branding the market to own a larger share Going Global and teaming up with Indian entertainment products internationally .