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Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into subsets of consumers who have common needs as well as common applications for the relevant goods and services. Depending on the specific characteristics of the product, these subsets may be divided by criteria such as age and gender, or other distinctions, such as location or income. Marketing campaigns can then be designed and implemented to target these specific customer segments, addressing needs or desires that are believed to be common in this segment, using media that is used by the market segment. Successful market segmentation and corresponding product differentiation strategy can give a firm a commercial advantage, due to the more effective match between target customer and product. Types of Market Segmentation

Psychographic segmentation The basis of such segmentation is the lifestyle of the individuals. The individuals attitude, interest, value help the marketers to classify them into small groups.

Behaviouralistic Segmentation The loyalties of the customers towards a particular brand help the marketers to classify them into smaller groups, each group comprising of individuals loyal towards a particular brand.

Geographic Segmentation Geographic segmentation refers to the classification of market into various geographical areas. A marketer cant have similar strategies for individuals living at different places.

CRITERIA FOR SEGMENTAING


An ideal market segment meets all of the following criteria:

It is possible to measure. It must be large enough to earn profit. It must be stable enough that it does not vanish after some time. It is possible to reach potential customers via the organization's promotion and distribution channel. It is internally homogeneous. It is externally heterogeneous, that is, potential customers from different segments have different quality preferences. It can be reached by market intervention in a cost-effective manner. It is useful in deciding on the marketing mix.

Steps in Market Segmentation 1. Identify the target market The first and foremost step is to identify the target market. The marketers must be very clear about who all should be included in a common segment. Make sure the individuals have something in common. A male and a female cant be included in one segment as they have different needs and expectations. 2. Identify expectations of Target Audience Once the target market is decided, it is essential to find out the needs of the target audience. The product must meet the expectations of the individuals. The marketer must interact with the target audience to know more about their interests and demands. 3. Create Subgroups The organizations should ensure their target market is well defined. Create subgroups within groups for effective results. 4. Review the needs of the target audience It is essential for the marketer to review the needs and preferences of individuals belonging to each segment and sub-segment. The consumers of a particular segment must respond to similar fluctuations in the market and similar marketing strategies. 5. Name your market Segment Give an appropriate name to each segment. It makes implementation of strategies easier. 6. Marketing Strategies Devise relevant strategies to promote brands amongst each segment. Remember you cant afford to have same strategies for all the segments. Make sure there is a connect between the product and the target audience. Advertisements promoting female toiletries cant afford to have a male model, else the purpose gets nullified. 7. Review the behavior Review the behavior of the target audience frequently. It is not necessary individuals would have the same requirement all through the year. Demands vary, perceptions change and interests differ. A detailed study of the target audience is essential. 8. Size of the Target Market It is essential to know the target market size. Collect necessary data for the same. It helps in sales planning and forecasting.

MARKET RESEARCH
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. For the growth and planning 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, 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 they be contacted? What quantity and quality do they want? When is the best time to sell?

Market segmentation 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. Market trends 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. A few techniques are: Customer analysis Choice Modelling Competitor analysis

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 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 technology-backed challenge in a category completely governed by individual trust.

PRODUCT LINE & THE COLLECTIONS


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. Tanishq Gold 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'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.

Tanishq Platinum 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.

MARKETING
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.

Tanishq has excelled in 4 Ps of marketing and hence it is the top brand in India.

PRODUCT Features Optional Services Product Quality Staff Quality Style Brand Name Packaging Guarantees

PLACE (DISTRIBUTION) Location Frequency of Service Transportation Distributors Inventory

PROMOTION Publicity Sales Promotion Personal Selling Advertising Mailing List

PRICE (COST) List Price Discounts Credit Terms Inclusive/Not Remoteness

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 22-carat 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 after-sales 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.

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. 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 centers. 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.

SOME OF TANISHQS COMPETITORS Asmi 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.

Nakshatra Diamonds 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 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

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

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

TANISHQ MARKET RESEARCH


MARKET RESEACRCH 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 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

GLOBALIZATION
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 worlds biggest jewelry market, through either franchisee or selfowned 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 years, in New Jersey.