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Final Tanishq Marketing Strategy
Final Tanishq Marketing Strategy
LAUNCHING OF TANISHQ
Titan launched Tanishq in 1995, India's largest, most
desirable and fastest growing jewelry brand in India.
Diligent care and quality processes ensure that the
Tanishq finish is unmatched by any other jeweler in the
country.
Tanishq challenged the age-old jewelers 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. Tanishq introduced
innovations like Karat meter, the only non destructive
means to check the purity of gold.
In its early days, Tanishq was positioned as an
international jewellery brand for the Indian elite. This
PRODUCT
The Tanishq portfolio comprises a wide range of
jewellery, including 18-carat studded products, 22-carat
plain-gold products, silverware and coins. Tanishq is the
first brand in the jewellery category to introduce
collections designed exclusively for the modern Indian
woman, especially working women.
Among the Tanishq collections that have caught the
imagination of consumers is Aria, which draws
inspiration from the traditional seven-stone jewellery that
Indian women have worn for over 100 years. Aria added
a contemporary element to the traditional setting of the
seven-stone cluster by using diamonds of different shapes
and sizes. The use of rhodium plating alongside the
yellow gold gives this product a unique look, modern as
well as traditional.
Other winners from the Tanishq stable include Diva,
which has pearls encircled by diamonds, Hoopla, which
boasts diamond hoops, and Solo, a collection that uses
solitaire diamonds. Collection G, with a selection of over
90 designs, addressed the everyday jewellery needs of
working women. Positioned as 9-to-5 jewellery, the
collection is stylish and modern and is designed to suit all
forms of attire, western and Indian, casual and formal.
The introduction of lightweight gold jewellery that
looked heavy but was light in weight and on the purse
marked another milestone in Tanishqs brand history.
RECENT DEVELOPMENTS
Tanishq has veered away from the high-end French look
that it started out with to jewellery that is designdifferentiated and yet wearable. This shift in its design
ethos has helped make the brands products more
accessible to Indian women.
The Tanishq of today has little to do with conspicuous
consumption and much to do with meeting the
aspirations and emotional needs of consumers.
Tanishqs retail boutiques are temples for the brand and
are used as a platform for celebration, be it the launch of
a new collection, a new marketing promotion or a
festival. This gives Tanishq outlets a unique appeal and
consumers an opportunity to heighten their shopping
experience. The launch of new collections such as
Dancing Diamonds, Ethnic Gold, Paisley, Dewdrops and
Avataar has enabled Tanishq to establish itself as a
frontrunner in the fashion jewellery scene.
One of Tanishqs more innovative ideas is to offer
special schemes during various festivals. Given Indias
diversity, this is never a one-size-fits-all initiative; rather,
it means having different promotions at different times of
the year in different parts of the country. So, whether it is
Varalakshmi Puja in Andhra Pradesh, Durga Puja in
Bengal, Onam in Kerala or Karva Chauth in the North,
the brand celebrates it with its consumers in the right
cultural spirit.
PROMOTION
Tanishq has deliberately moved away from mass-media
advertising and focussed on store promotions to make the
brand more accessible to consumers. This has been done
to correct the consumer perception that the brand is
highly priced and only meant for the rich and the famous.
This approach has also ensured that Tanishqs
BRAND VALUES
In sync with the Tata brand values, Tanishq is
synonymous with trust and purity in a category that is
fraught with questionable practices. Being a member of
the Tata family has meant that it can leverage the groups
well-earned reputation for ethics and values in a business
where such attributes are critical to win the trust of
TANISHQ IN INDIA
TANISHQ is India's largest, most desirable and fastest
growing jewelry brand in India. Started in 1995, Tanishq
is the jewelry b u s i n e s s g r o u p o f Ti t a n I n d u s t r i e s
L t d - p r o mo t e d b y t h e TATA group, India's
most respected and widely diversified business
conglomerate.
This year marks a decade of successful innings for
Tanishq. With a retail sales of 1200 crore last
year and gunning for2 0 0 0 c r o r e t h i s ye a r ,
T a n i s h q h a s a r r i v e d i n t h e I n d i a n 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.T a n i s h q h a s s e t u p p r o d u c t i o n a n d
s o u r c i n g b a s e s w i t h through research of the
jewelry crafts of India. Jewelry at T a n i s h q i s
crafted in one of the world's most
modern f a c t o r i e s . T h e f a c t o r y
complies with all the labor 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 i s p a i n s t a k i n g l y c r a f t e d t o
Nakshatra Diamonds
The world renowned Nakshatra diamonds were
launched in2000, with an equally dazzling
Aishwarya Rai as its brand ambassador. In the
present scenario Nakshatra diamonds o c c u p y a
l e a d i n g p o s i t i o n i n t h e f a s h i o n d i a mo n d
j e we l r y 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 l i g h t . " El e g a n t a n d g r a c e f u l
N a k s h a t r a d i a mo n d s a r e t h e 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 c o n s c i o u s , m o d e r n a n d
independent thinking women.
Internationally acclaimed
N i r v a n a d i a m o n d s a r e ma n u f a c t u r e d
b y u s i n g s t a t e - o f - t h e - a r t t e c h n o l o g y. 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 Digi co
Group and one of the earlies t diamond houses
established in India in1966. 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 arange of emotions through their collections
Adora Diamonds
Adora Diamonds were launched in India in
J u l y 2 0 0 3 b y Mumbai based Concept Jewelry
(India) Ltd. On the present d a y t h e s t i l l
expanding retail network centers of Adora
expands to 117 outlets in 47 cities of India.
Adora means g l o r y i n S p a n i s h a n d c l a i ms t h a t
i t s d i a mo n d c o l l e c t i o n i s themed on love. Adora
diamonds are for adornment of every m o m e n t ,
occasion, and phase of life through its up
a n d downs. The Swaranjali signature collection
of living legend La t a M a n g e s h k a r is a u n i q u e
f e a t u r e o f Ad o r a d i a mo n d s . E a c h p i e c e o f
S wa r a n ja l i c o l l e c t i o n i s c o n c e p t u a l i z e d a n d
approved by Lata Mangeshkar and bears her
laser printed signature
Kiah Diamonds
World's largest volume manufacturer of
diamonds-Sheetal manufacturing Company
(SMC) launched its exquisite Kiah d i a mo n d
c o l l e c t i o n i n Oc t o b e r , 2 0 0 4 . Ki a h d i a mo n d s
a r e 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 20 05
2006.
THE SURVEY
The Indian jewellery industry is seeing
u n p r e c e d e n t e d activity on the market front with
new entrants coming in all t h e t i m e .
Consumer behavior also is
u n d e r g o i n g a transformation. The SolitaireTNS Survey to find out India's b e s t k n o w n
brands (and other pertinent details) was
initiated with a view to assist a nd equips the
industry with information that goes beyond the
ordinary.
"Men buy products while women choose
b r a n d s , " s a y s model-turned-designer and CEO of
a billion dollar company, Kathy Ireland, a fact which
jewellery brand managers in India w i l l n o t r e f u t e .
Hence the Solitaire - TNS Survey across
Mumbai, New Delhi and Bangalore was targeted
solely at women.
Wh i l e t h e s a mp l e s i z e w a s s ma l l , 6 0 0 + , t h e
f a c t t h a t t h e t a r g e t g r o u p wa s c o v e r e d i n a n d
a r o u n d s h o p p i n g ma l l s , banks, corporate areas
and commercial zones, made the s a mp l e mo r e
r e l e v a n t t o t h e ob je c t i v e s . Th e s u r v e y w a s
conducted through personal interviews over a period
of 15days.
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.
Background Note
Ti t a n Wa t c h e s Li mi t e d wa s p r o mo t e d jo i n t l y
b y Qu e s t a r Investments Limited (a Tata group
company) and Tamil Nadu Industrial Development
Corporation Limited (TIDCO). The company,
incorporated in July 1984 in Chennai, was started in
technical collaboration with France Ebauches (a
French company), one of the world's largest
manufacturers of watch mo v e me n t s . I n i t i a l l y
i n v o l v e d i n t h e w a t c h e s a n d c l o c k s business,
Titan later ventured into the jewellery
businesses. The company was India's leading
manufacturer of watches, marketed under the Titan
and Sonata brand names with a25% share of the
total domestic market.
refining, alloying and stone casting and a dustextraction system that kept gold losses down to 2% of
the raw material while local jewellers typically lost 810%.
This in-house manufacturing facility was the main
reason, which enabled Tanishq to charge the same
price across the country. One of the company's most
important initiatives was customer service enhancement.
Tanishq launched a direct consumer contact programme
and conducted surveys to monitor store walk -ins
and footfalls and percentage of repeat customers.
The company also kept the entry-level price as low as Rs
600(for a pendant) and offered a range, which far
exceeded that o f f e r e d b y a n y o t h e r j e w e l l e r . Al l
Tanishq outlets gave a100% return guarantee
o n i t s b r a n d o f j e w e l l e r y a n d a l s o exchanged
other jewellery after deductions depending on
purity.
A customer satisfaction measurement program was
started w i t h t h e h e l p o f C u s t o m e r
S a t i s f a c t i o n M e a s u r e m e n t Management
(CSMM), an associate of IMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a
quarterly basis. This gave the company the
benefit of bench marking a g a i n s t l o c a l a n d
i n t e r n a t i o n a l p l a ye r s a n d a l s o a i de d i n
improving repeat purchases. As a result, Tanishq was
able to directly link the remuneration of franchisees
with customer s a t i s f a c t i o n . Th e c o mp a n y ' s
c o r p o r a t e g o l d g i f t s c h e me ('When you want to
say thank you, say it in gold'), launched in
December 1998 proved to be a major success.
Tanishq d e l i v e r e d 5 0 , 0 0 0 c u s t o m i z e d g o l d
c o i n s t o 0 . 2 5 m i l l i o n Maruti car owners
nationwide as part of the 15th anniversary
celebrations of Maruti Udyog. By
2 0 01 , th e s c h eme accounted for almost
5 % o f t h e t u r n o v e r a n d o v e r 3 0 corporate
clients like Coca-Cola, the UB Group, Whirlpool,
the TVS Group, Ceat and Liberty Shoes.
The communication and promotion
budget was increased from Rs. 65 million in 19992000 to Rs 100 million in 2000-01. A majority of
this was spent towards advertising, while apportion
was also earmarked for promotions tailored to match
regional preferences. For instance, in New Delhi,
which was Tanishq's single largest market, substantial
promotions were c a r r i e d o u t . Th e R s 1 0 0 mi l l i o n
w a s s p l i t i n t o f o u r p a r t s , comprising nationallevel spends (both electronic and print media),
regional budgets, direct mail and research. For the
first time, Tanishq initiated a long-term media plan,
aiming to g i v e t h e b r a n d a r o u n d - t h e - y e a r
presence and enhance awareness. The
communication focused on design and
quality instead of the price.
Year
1996-97
1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03
32
38
73
141
188
299
389
PROFITS GENERATED
Year
1996-97
1997-98
K
1998-99
u
- 21.96
- 10.40
2000-01
r
i
2001-02
a
2002-03
2.07
1.87
7.82
n
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.
Year
1996-97
1997-98
1999-2000
8
14
24
2002-03
43
Since the last three years, Kurian and his team have
brought in quite a few changes to the way Tanishq
operates. A steady stream of jewellery collections
each with its distinct target audience has been
launched. Aria, for seven stone diamond jewellery,
Hoopla, focused on diamond studded hoops and
Collection-G for lower priced gold jewellery with an
interesting twist are just a few lines that have come
out of the Tanishq stable in the last three years.
Manufacturing has been made more flexible. New
Japanese manufacturing machines have been
introduced at the Hosur, Tamil Nadu plant of the
company. The emphasis is now on customisation
according to customer demands. The challenges
remain. Profit figures have yet to rise significantly. In
2002-03, on revenues of Rs 389 crore (Rs 3.89
billion), Tanishq made a profit of only Rs 7.82 crore
(Rs 78.2 million).
CONSISTENCY IN DELIVERING
ON THEIR PROMISE:
Tanishq promises superior quality jewellery with purity
in gold. They claim and deliver the exact carats and
weight that they promise. Impurity in gold and not
delivering what was promised is one of the main
problems the consumers face when going for gold
purchase. Tanishq eliminated this and has built its brand
in trust. Tanishq now stands for quality and purity. They
even have gold meters where one can check the purity of
gold.
It is first and only jeweller who guarantees the purity of
its gold jewellery and certifies the quality of its diamonds
and colored gems in writing. Thus it has established itself
as a highly ethical player in a market that was rated as
having the highest incidence of under karatage (Bureau
of Indian Standards).
A COMPELLING IDEA:
The idea of having branded jewellery was a totally
unique idea. Coupled with a promise of purity and a
unique experience was very compelling. It persuaded a
lot of people especially the people in the metros and semi
metros to leave their traditional jewelers and go for
Tanishq.
There was always lack of trust among the consumers for
their jewelers. Tanishq removed that with a promise of
purity. Hence what it did in India it can replicate across
the globe. Offer a totally new perspective to Jewellery
buying especially when it comes to exquisite oriental
jewellery. Oriental Jewellery across the world is usually
found in flea markets or place like China Town or Indian
Markets. Going into the main markets in the Western
world will give Tanishq the edge.
A CENTRAL ORGANISATIONAL
PRINCIPLE:
Tanishq has to translate what its brand signifies to the
whole of their organizations. They have done that
exceptionally well in the Indian context. A visit to any
Tanishq outlet shows that. The people behind the counter
are polite and courteous. They know that they are there to
deliver the promised exceptional services. The people at
Tanishq know what is required of them and hence this
will prove beneficial when Tanishq goes global to
maintain its global standards.
Tanishq, as and when it decides to go global will make a
great global brand. As we can see they have all the
characteristics, which all the global brands have, it can be
said that Tanishq has all the potential to become a
leading global brand.
BIBLOGRAPHY
www.rediff/business.com
www.tanishq.co.in
www.wikipedia/tanishq.com
www.google.com
OTHER SOURCES:Newspaper
Business magazines.
INDEX / CONTENTS
1. Introduction about Tanishq
2. Launching of Tanishq
3. Product
4. Recent development
5. Promotion
6. Price value
7. Tanishq in India
8. Tanishqs competitors in India
9. Tanishqs market research and
survey
10.
Turnaround story
11.
12.