INDEX

SR.NO. 1 2 3
4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction Market Research

CONTENTS

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

INTRODUCTION
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
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?

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need. Widely used bases for segmenting include geographic differences. . 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. It can also involve discovering how they act. the supply and the demand. Once that research is complete it can be used to determine how to market your specific product. 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. or believe.MARKET RESEARCH FOR BUSINESS PLANNING & GROWTH Market research is for discovering what people want. Information about the markets can be obtained in several different varieties and formats.

personality differences. 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. your customers. and psychographic differences. during a period of time. A few techniques are: • • • • • • Customer analysis Choice Modelling Competitor analysis Risk analysis Product research Advertising research . use of product differences. But besides information about the target market you also need information about your competitor. products etc. In this case. demographic differences. you will have to derive the figures from the number of potential customers or customer segments.

Tanishq is the jewelry business group of Titan Industries Ltd . the 1. The factory complies with all labour and environmental standards. It is a story of a successful Indian enterprise. factory is equipped with the latest and most modern machinery and equipment. jewelry at Tanishq is crafted in one of the world's most modern factories. India's most respected and widely diversified business conglomerate.promoted by the TATA group. which has delivered value to its customers and shareholders in a complex category. most desirable and fastest growing jewelry brand in India. Located at Hosur. This year marks a decade of successful innings for Tanishq.35.TANISHQ – AN INTRODUCTION Tanishq is India's largest. marked by its completely localized front end as well as back end. Every product at Tanishq is painstakingly crafted to perfection. Started in 1995.000 sq. . Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Tamil Nadu. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. ft. Tanishq has arrived in the Indian jewelry market. With a retail sales of 1200 crore last year and gunning for 2000 crores this year.

Tanishq. select from the best jewelry collections available in the Indian market. It exploded the market with facts about rampant impurity across India. as well as. . 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". Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities. CEO.Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. the only non destructive means to check the purity of gold. 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. it has remained so because this market is very fragmented. without worrying about the purity of the jewelry they are buying. very unorganized. . where women can shop with comfort and peace. Tanishq introduced innovations like Karatmeter.Harish Bhat. Exquisite platinum jewelry is also part of the product range. Jewellery is one of the last great commodity frontiers in India. Tanishq also introduced professional retailing in the disorganised Indian jewelry bazaar. It introduced technologybacked challenge in a category completely governed by individual trust.

There are six branches in Mumbai Tanishq 365/C. Mumbai .25128020 / 25127734 / 25128020 / 25127684 E-mail:btqgtk@tanishqmail. Kailash Plaza. 7.LOCATING TANISHQ Tanishq had its first showroom in Chennai in 1996. The rest are run by franchisees. Khar. Veer Nariman Rd .com . Ghatkopar East.400 077 Ph: 022.22875155 E-mail: btqmum@tanishqmail. Churchgate.com Tanishq No.Linking Road. Odeon Cinema.com Tanishq 19-21. Brabourne Stadium.26487979 E-mail: btqkha@tanishqmail. Opp. Today it has over 60 showrooms in 47 cities. Only six of these are owned by the company. Mumbai-400 052 Ph: 022-26484846 / 26495959 Fax: 022 . Mumbai-400 020 Ph: 022-22821621/ 22826043 / 22838801 Fax: 022 . Vallabh Baug Road.

Turner Road. Malad Link Road. Inorbit Malls Mind Space.Tanishq Level 2 R Mall Lbs Road. 40 Waterfield Road. Bandra(W). Malad.400068 Ph: 022 56406945 / 56406938 E-mail:btqorb@tanishqmail.com Tanishq G-11. Mumbai:400050 Ph: 022-67100687 / 26424846 .com Tanishq. Mumbai . Rk Patkar Marg. Plot # Ctsf-904. Durga Chambers. Mulund (W) Mumbai Ph: 022 67969627 / 67997874 / 39576922 E-mail:btqmln@tanishqmail.

it has been observed that consumer is an easy target to several malpractices like under karatage. each unique and splendid in design. mangalsutras and thalis to the more fashionable earrings. it is important that you make an educated decision. to enable you to know exactly what you are paying for. As with any significant purchase. Tanishq Gold From the traditional harams. there is a lot to choose from at Tanishq.PRODUCT LINE & THE COLLECTIONS PRODUCT LINE: Tanishq Diamonds The sparkle of diamonds has always attracted the human eye. colour and clarity of the stone. Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. bracelets and rings. When it comes to diamonds at Tanishq you will be spoilt for choice from many collections we have to offer. chains. Tanishq diamonds come with a certificate of authenticity. No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these precious stones into breathtaking masterpieces. under valuation of the gold . stating the caratage. However. Cut and crafted with utmost care. In India Gold has always been associated with security and is the most valuable form of investment.

teen's collection and regional specific designs. At Tanishq. 9 to 5 for the working woman and high fashion. Tanishq Platinum Metal at its best. men's wear. platinum jewelry does not fade or tarnish and keeps its looks for a lifetime. but also fair policies to the karigars who craft the jewelry Tanishq's designs in Pure 22k gold are not only unique.sold and unfair buy back policies due to the lack of awareness about these issues. we cater to every occasion. Eternal .a celebration of your individuality. This helps to reflect the true radiance of diamonds. expressing the wearer's individuality but each piece is subject to the intricate process of design. Pure Platinum's purity endows it with a brilliant white luster. This exquisite metal is 30 times rarer than gold. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki. crafting and stone setting with stringent quality standards at every point. Tanishq propagates ethical practices not only by assuring the customer purity and selling policies. from the stunning Aarka collections to the exclusive Nakashi work. the coveted treasure of discerning individuals. Rare Platinum is rare. There is very little platinum on this earth and it is found in very few places around the world. Platinum's rarity makes it exclusive and distinctive . We ensure that we have something for everyone with our baby range. Because it is generally 95% pure (18 karat gold is 75% pure).

luxurious. such as the Kohinoor diamond. rare. However. Tanishq's Platinum represents excellent value for money. Platinum and White Gold are distinctly different materials and must not be confused. Some of the world's most famous gems are set in platinum. 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. The price may be higher than a similar item in gold but platinum is pure. classic. Platinum is a metallic element while White Gold is a Gold alloy. and the perfect host for diamonds. which gets its white colour due to palladium or nickel. All precious metals can scratch. beautiful. precious qualities that make it worth paying that little bit extra for. and platinum is no exception. part of the British crown jewels. .Platinum jewelry is the perfect choice for a lifetime of everyday wear. enduring.

.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. a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience.

A vision of beauty.The Wedding Collection The bride blushes. Her jewels are exquisite. As pure as the blessings bestowed on her. Everyone around smiles. . The shenai announces festivity. She walks demurely. Crafted by the best in the land. The priests chant auspicious promises.

The Zoya Collection Intricacy coupled with the simplicity. nature's bounty matched with man's ingenuity. The magnificence of history interwoven with linear contemporary. . oriental art embellished with occidental architecture. Secrets of the pharaohs masked with the mystery of the cosmos.

inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate Stiletto designs .The Fashion Earring Collection The Fashion earring collection'. the Tanishq design team has created the Fashion earring collection. has a range of over 300 exclusive designs. Keeping in tune with the raging popularity that earrings currently enjoy.

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. each crafted by a different set of highly skilled karigars.The Kundan and Polki Collection Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages. However. It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many 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.

drapes and patterns of the Victorian period. 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. design. Tanishq has incorporated the timelessness of these styles into exquisite jewelry designs to present a collection where fashion and tradition converge. This exclusive collection was launched at the Ponds Femina Miss India 2006. reminiscent of the magical Victorian era.The Colours of Royalty Collection Colors of Royalty a range of exquisite studded jewelry. The Colors of Royalty is a line of exclusive gems and stone studded jewelry . where the 25 finalists wore it. The collection is inspired by the classic design essence and sensibilities found in the architecture. fashion.

This range attempts to strike a balance between convention and fashion by creating designs suitable for the progressive Indian woman.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. . rooted in her tradition. 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. passion and have been the most coveted gemstone for many years. Rubies have been associated with prosperity.It is a must have for a Indian women.

This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. second only to diamonds. The Aria Collection Aria is a collection of variety of everyday jewellery which depict various moods and feelings: Mysteries of love Mysteries of passion Mysteries of envy Bewitching Fascinating Enchanting Hypnotizing Sensuous . India offers great potential for the Moham collection where Ruby studded jewelry enjoys great popularity and acceptance. Consumer survey indicates that women attach great inspirational value to rubies. This launch reiterates Tanishq's focus on catering to region specific tastes and preferences.

unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry. . Femina Miss India 2007. specially crafted for India's leading beauty pageant.Captivating Exquisite crowns and jewelry Tanishq. India's most innovative jewelry brand.

The large red stone. Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head. is the symbolic and stylised 'teeka'. The large red stone. princess. a story of their "ORIGIN". Inspired by interplanetary movements and colors of flora and fauna. each of these crowns convey a story. .the Indian touch to the contemporary styling. very like the universe itself. these tiaras are a stunning combination of trillions. set slightly on the side. is the symbolic and stylised 'teeka'. Miss Universe: This crown has the perfect cosmic blend of elements. Miss Universe: This crown has the perfect cosmic blend of elements. round brilliant cuts. very like the universe itself. set slightly on the side. The inspiration behind each crown is distinct and personifies the spirit of the title.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. baguettes. Crafted with painstaking detail. pears and specially cut colored crystals.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' .

her flora and fauna. And of course the vivid rectangular blue stone that expresses the teeka of victory. We make sure that we give you the premium quality of not only product but service as well. and sets off the varying hues of the sea on the rest of the crown. TANISHQ FOR YOU At Tanishq its not just the products. is an ode to the ecstatic beauty and supreme power behind every woman. Miss Earth: This crown derives its inspiration from the essence of nature. Based on the fabulous colours and movement of the peacock and its feathers. Tanishq not only has . These beautiful and vibrant gemstones in different shapes. rhythm and symmetry of classic Indian motifs in an unconventional synthesis.sitting snugly on the forehead of the wearer. this stunning piece is an intriguing study in harmony and contrast. design and tradition blend perfectly. 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. balance. Tanishq has translated the timelessness of these designs to a modern context and brought to life a collection where fashion. it’s the experience that matters. The jewelry crafted beautifully with interspersion of diamonds and colored stones. The contemporary styling has been brought to life with sensuous curves.

There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings Scheme.an Annual Plan (12 month installments) and an Extended Plan (18 month installments). How much money must one invest to enroll in the Savings Scheme? You need to invest only Rs. This scheme provides you with much better returns than other saving options like bank deposits or post office savings schemes. Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget. Golden Harvest Saving Scheme Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes. as long as they are in multiples of Rs. In addition.500/. Your monthly installments are safe with us. Gift Voucher purchase. Exchange of gold and diamonds etc. BONUS: • 60% of monthly installment in Annual Plan • 130% of monthly installment in “Extended Plan” .an exquisite range of designs to meet all your requirements we also offer the benefit of any modification or customization on products. You could also deposit a larger sum.500/. whereas savings at home could easily get spent.You can choose from two convenient savings scheme options.per month to enroll. that enables to save each month with Tanishq and plan for wedding jewelry purchases.

At Tanishq. When you exchange any Tanishq gold coin with jewelry. 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. 8% of the value is deducted for costs involved with testing. refining and taxes for the jewelry given by the customer. When you exchange any other bank’s gold coin with jewelry there is a 4% deduction on value. you get the benefit of the current gold rate and full value exchange without deduction. a single gold rate is maintained for buying or selling 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? .At the end of the scheme period.

and Rs. 5001/. 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.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.So now you no longer need to worry about gifting your loved one. Gift vouchers are available in the following denomination Rs. These are available at all Tanishq showrooms across India and are also redeemable across the country. 25001/. Rs. when you exchange diamond jewelry purchased from us it is exchanged for its current value. At Tanishq. 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. Playing a significant role . 10001/. 2501/-.

Anuttara You can also become the member of Tanishqs loyalty programme Anuttara and avail of various discounts and priveleges. which is the most scientific measure of purity in the world. nondestructive means of testing the purity of gold. 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.in this is the Karat meter. It is in fact the most scientifically proven. TANISHQ RETAILING . It uses X-rays to give an exact reading of the purity of gold in just three minutes. Due to its excellent precision. giving the consumer an unmatched benefit when buying or selling gold.

1250 crores in the last fiscal. Tanishq has constantly formulated an innovative product strategy this journey in line with the evolving consumer tastes.Tanishq ventured into jewellery retailing in 1996 through exclusive stores. local sourcing strategy. In the future. only the strong player can emerge victorious. This success of Tanishq is a result of an exclusive blend of exquisite designs. a concept unique to branded jewellery segment at that time." Tanishq’s retail strength goes beyond its innovative identity and extensive reach. trust and reliability. Tanishq Design Studio has created exquisite and varied collections like Fashion earrings. a philosophy of customer care. a management model of excellence and. brand equity and logistics. highly focused communication strategy and innovative retail strategy. said "We have been able to capitalise on the trends of the local jewellery markets by building on our solid financial strength. most importantly. Similarly Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand for a world class shopping experience. wide network. Commenting on Tanishq’s success story. innovation have been the hallmark of Tanishq all these years. Everydays. innovation. market-leading brand position. the key to building stronger competitiveness will lie in enhancing network coverage. 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”. COO. Tanishq. both company owned and franchisee outlets. C K Venkatraman. Tanishq has undertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day / Professional Day etc that were . 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. Amid the keen competition in the Indian jewellery market. high-end Zoya collection among others aimed at distinctive consumer segments. Mr.

moods and tastes. customer contact programmes as well as through Anuttara. 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. . it is at all times keyed-in to their ever-changing demands. 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. more and more people will be able to share our mindset. 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.unexplored avenues in the industry. Tanishq’s exclusive consumer reward programme etc. Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. As our company expands. South Extension Delhi. In addition. Brand Tanishq is for every Indian woman. It conveys a feeling of self-confidence and individualism that characterizes the Indian woman. Kormangala Bangalore and Bund Garden Pune .” Tanishq the "Revitaliser of Tradition" Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata. Following more than 40% percent growth in operations last year. Tanishq will build new logistics centres and upgrade existing ones. 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. Tanishq has also endeavored to be part of every occasion in an Indian woman’s life through festive promotions. The offerings are in tune with fashion and yet do not lose touch with tradition.

The stores have a contemporary feel while retaining the flavor of the past. . Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept stores across the country.The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept stores. 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.

• Assess whether you have any advantages over your competition in delivering the desired service. 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. • Choose the position that is most valued by the consumer. PRODUCT PLACE (DISTRIBUTION) Location Frequency Service PROMOTION Publicity ofSales Promotion Personal Selling Advertising Mailing List PRICE (COST) List Price Discounts Credit Terms Inclusive/Not Remoteness Features Optional Services Product Transportation Quality Staff Quality Distributors Style Inventory Brand Name Packaging Guarantees Tanishq has excelled in 4 P’s of marketing and hence it is the top brand in India. This is also called your marketing mix. TANISHQ MARKETING STRATEGY . The following steps will help you define your marketing mix: • Identify your target market. • Determine what the target consumer desires.MARKETING Marketing Equals the Four Ps Part of marketing is identifying the mix of "Ps" that makes your service unique. Your market position is one or more selected benefits or features that make your operation unique and different.

Before 1992. the government abolished the Gold Control Act of 1962. Tiffany. Among the foreign players who entered the market were Cartiers. Chandra.5 lakh players. In 1993. Mehrason's and P. Titan realized that there was a huge untapped market for branded jewellery in India. and good aftersales service. With its original focus on exports. with around 3. C.000 crore. Formal consumer surveys showed that though brand awareness was quite high. The critical success factors in the business were quality. private companies were allowed to enter the hitherto restricted gold and diamond mining industry.When Titan launched Tanishq in 1995. Tanishq faced several problems. Titan also observed that the changing lifestyles demanded lighter and trendier jewellery. only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. as part of economic liberalization. Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Foreign investors were allowed to hold up to 50% equity in mining ventures. De Beers and Ashton Mining. In the 1990s. In 1995. . a number of brands entered the Indian jewellery market. it suffered from several negative perceptions. Su-Raj (India) Ltd. Mumbai based jewellery exporter. launched its 22carat gold and diamond jewellery in 1997. After its launch. started selling 18-carat gold jewellery under the brand name of Gili. was mostly unorganized. fashionable design. India was the second largest consumer of gold in the world after USA. the jewellery industry in India valued at Rs 40. Many potential customers thought the products were over priced and associated the brand only with the rich. In 1992. allowing free import of gold. Other well known domestic players included Tribhovandas Bhimji Zaveri. Gitanjali Jewels.

Tanishq introduced 22-carat ornaments. Titan also tapped institutional customers also. Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. 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. In 1998. . Tanishq entered the studded jewellery segment. In early 2000. Since the European designs in 18-carat gold did not find any takers in 1997. Titan also decided to transpose designs by stocking Bengali designs in Delhi. In 1999. Titan realized that. it made miniature gold cars for Hyundai Motors to be given to select dealers.. Titan decided to change its strategy on two fronts:  Value proposition  Retailing. which it had ignored for long. given the diverse nature of Indian ethnicity. it launched the corporate gold gift scheme . So. The same year. 20 crores to Maruti Udyog Ltd.Hence. Customer surveys revealed that gold jewellery was not bought so much for design as for value. the designs became more ethnic. to be given away as gifts to Maruti car owners.'When you want to say thank you. Tanishq delivered gold coins worth Rs. it would have to satisfy the tastes of all regions. say it in gold'. Titan also decided to do away with the shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998.

400 billion per annum growing at a pace of 20 to branded jewellery in the total small (about Rs. . It provides employment to 1. it accounts for nearly 20 per cent of total Indian exports. Oyzterbay. Trendy. 10 billion of the jewellery market in 2002). However. Worldwide. making this sector integral to the economy and one of the fastest growing industries in the country. Traditional jewellers also began to bring out lightweight jewellery. the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. In other words. Given the opportunities the branded jewellery market offered.3 million people directly and indirectly. which has seen huge appreciation in value terms in recent times. jewellery was being prized for its aesthetic appeal. Gili and Carbon opened outlets in various parts of the country. In India. and some of them even launched their in-house brands. Instead of being regarded as only an investment option. the share of jewellery market was still Rs. The Gold Rush In the late 1990s. the focus seemed to have shifted from content to design. The Indian market is laden with gold jewellery of varying karatage.THE JEWELLERY MARKET Jewellery play a significant role in Indian customs and traditions. the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. though 30 percent annually. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. affordable and lightweight jewellery soon gained familiarity. the number of gold retailers in the country increased sharply. Branded players such as Tanishq.

only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. allowed large export houses to import gold freely.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.000 workshops supplying over 350.000 retailers.' This led to a highly fragmented and unorganized jewellery market with an estimated 100. Moreover. These measures led to the entry of foreign players like DeBeers. overseas banks and bullion suppliers were also allowed to import gold into India. Gold Jewellery Market in India Before the liberalization of the Indian economy in 1991. The abolition of the Gold Control Act in 1992. In 1997. Consequently. In 1993. Tiffany and Cartiers into the Indian market. the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices. . Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. single shop operations. 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. In the 1990s. the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. consumers trusted only their family jewellers when buying jewellery.

sold 18-carat gold jewellery under the brand name Gili. Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company. a Mumbai-based jewellery exporter. India had the highest demand for gold in the world. Dagina. As Hallmarking was not very common in India. Jewellery was fabricated mainly in 18.5 carats to 18 carats as 22-carat gold jewellery. . launched its collection of diamond and 22 -carat gold jewellery in 1997. According to a survey done by the Bureau of Indian Standards (BIS). Pranda Su-Raj (India) Ltd. Over 80% of the jewelers sold gold jewellery ranging from 13. most gold jewellery advertised in India as 22-carat was of a lesser quality. while Gitanjali Jewels. Oyzterbay.In 2001.. launched its own range of studded 18-carat jewellery. Carbon and Tribhovandas Bhimji Zaveri (TBZ). 855 tons were consumed a year. under-caratage was prevalent. The bulk of the jewellery purchased in India was designed in the traditional Indian style. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd. Titan sold gold jewellery under the brand name Tanishq. Cartiers entered India in 1997 in a franchise agreement with Ravissant. The late 1990s saw a number of branded jewellery players entering the Indian market. Beautiful. The Mumbai-based group. 95% of which was used for jewellery. which marketed the Tiffany range of products in India. 22 and 24-carat gold.

the local jeweller catered to the local taste for traditional jewellery. "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. Confidence in the local jeweller was the hallmark of the gold jewellery trade in India. the average Indian bought jewellery for investment rather than for adornment. 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. especially from consumers in the 16 to 25 age group. since the late 1990s. However. contemporary jewellery and clearly avoiding heavy. who regarded jewellery as an accessory and not an investment. Trendsmith conducted a survey to understand the shifting needs. • The younger generation was looking at trendy. and to identify new trends and opportunities.Gold Jewellery Becomes Fashion Accessory Till the early 1990s. there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. Additionally. CEO of Trendsmith. The buyer had implicit faith in his jeweller. motivations and aspirations of consumers in the jewellery market." In October 2002. . There was a rise in demand for lightweight jewellery. The focus had shifted from content to design. The new millennium witnessed a definite change in consumer preferences. A jeweller or goldsmith in a local area had a fixed and loyal clientele. Jewellery made of 18karat gold was not favored as it was considered a poor investment. According to Samrat Zaveri.

• The Indian consumer was willing to experiment with new designs. In the late 1990s and early 2000s." To increase its marketshare. lacked branding. the challenges were many. • The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. and allowed many unethical practices to flourish. a wide range of new designs became available. players in the branded gold jewellery market formulated strategies for wooing customers. the growing number of manufacturers needed a retailing platform with global and national reach. with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT).traditional gold jewellery. According to Jacob Kurian (Kurian). In addition. Tanishq's strategy was to create differentiation and build trust. Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers. 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. Chief Operating Officer of Tanishq. Said Kurian. All these led to the proliferation of branded jewellery players. As the jewellery market was highly fragmented. .Strategies for Wooing Customers In the late 1990s. Tanishq . "We are changing the attitudes of customers from blind trust to informed trust.

In fact. rings and chains in 22 karat gold with prices starting at Rs 1. On the basis of this feedback."13 One way to create differentiation was through design. the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. To stay ahead of competition from local jewellers. Besides. 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. The emphasis had to be on design because local jewellers could offer to design any pattern according to the customer's specifications. Accordingly."12 The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. Tanishq decided to focus on quality control.100. Tanishq's USP was the purity of its gold. For this.000. each showroom could select the designs it would carry. bangles. but small town markets as well.According to Kurian. with prices starting at Rs 3. Tanishq introduced a new collection of jewellery called 'Lightweights. In November 2002. For a national brand a generic design concept with regional variations had to be evolved. It also launched Lightweight Diamonds. earrings. . According to Kurian. Real estate was less expensive in the small towns than in large urban centres. it introduced caratmeters which showed the purity of gold. Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. the best returns on investment came from small towns. trust takes care of lifelong loyalty. competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. In 1999.' The collection featured neckwear. "If differentiation plays the role of primary attraction. According to Kurian.

Carbon. Oyzterbay.several regional players have opened branches to leverage the trust and reputation that they have built up over the years. 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. branded players require focused advertising and astute salesmanship to compete with traditional jewellers. In addition. affordability and quality will be a key element in sustaining a brand.All That Glitters is Not Gold Branded jewellery players will continue to face lot of competition from local jewellers. This is going to add to the competition in the branded jewellery market. To compete with traditional players. only a few of them experimented with the pink and white forms of gold. Gili and Trendsmith. Besides the major brands. While the success of a particular brand will depend on differentiation. In order to gain marketshare. Most of the branded jewellery players in India focused on yellow gold.Tanishq. which appear to have a good future in the Indian jewellery market . Some of the players also used diamonds and platinum. branded players must also find some way to differentiate themselves.

All these women epitomize the different strengths. They have aptly put their slogan as "brightest circles of light. attitude and independence. The brand has been endorsed by various celebrities such as Kajol. with an equally dazzling Aishwarya Rai as its brand ambassador. Nakshatra Diamonds The world renowned Nakshatra diamonds were launched in 2000. In 2002 by The Diamond Trading Company Ltd. one of the leading diamond brands of the country.SOME OF TANISHQS COMPETITORS Asmi Asmi. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. . Asmi caters to the women of substance & satisfies her mind for rewards recognition. evolving to suite her style & Personality. The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. was launched." Elegant and graceful Nakshatra diamonds are the epitome of passion. Nakshatra diamonds claim to shine your glamour and love life. The traditional diamond is the most wanted design among Nakshatra diamonds. Mandira Bedi & Perizad. (DTC). An Asmi woman is closely identifies with free-spirited. goal-oriented & with an inner fire.

Nirvana Diamonds Nirvana Diamonds from Fine Jewellery (I) Ltd.Gili Gili was launched in 1994. occasion. 90 crores. 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 means glory in Spanish and claims that its diamond collection is themed on love. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. Nirvana diamonds are targeting at fashion conscious. the brand has clocked a turnover of Rs. 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. . As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers. targeting mainly the youth who wanted to celebrate Valentine's day. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. Since then.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds. modern and independent thinking women. was launched in 1987 in India. Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. Adora diamonds are for adornment of every moment. and phase of life through its up and downs.

The brand name 'Kiah' means beautiful place.Each piece of Swaranjali collection is conceptualized and 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 diamond collection in October. On the latest Kiah diamonds have won the Best Showroom in the DTC Diamond Season for 2005-2006. Kiah diamonds are claims to be for celebrating womanhood. . 2004.

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. And when the pace and efforts of the leaders intensify. a finding which lends credence to the leadership factors. Titan Industries) has paid off well. the possibility that they will continue to be at the top is a foregone conclusion. New Delhi and Bangalore.TANISHQ – MARKET RESEARCH MARKET research On TANISHQ Tanishq emerges as the best known brand with the highest awareness and recall. proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group company.TNS Survey shows that Tanishq is the best known brand across the three cities of Mumbai.all these factors combined to make the brand into a household name. over 70 retail outlets across the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience . India's Top Ten Best Known Jewellery Brands . The Solitaire . Two decades in the business.

"Men buy products while women choose brands. corporate areas and commercial zones. The survey was conducted through personal interviews over a period of 15 days. While the sample size was small. . Kathy Ireland. a fact which jewellery brand managers in India will not refute. Hence the Solitaire . 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. the fact that the target group was covered in and around shopping malls. Consumer behavior also is undergoing a transformation.The Survey The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants coming in all the time.TNS Survey across Mumbai. banks. made the sample more relevant to the objectives." says model-turned-designer and CEO of a billion dollar company. 600+. New Delhi and Bangalore was targeted solely at women.

Thus.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. This may be because most jewellery brands have a varied price range that caters to women belonging to different segments of society. price structure and affordability are in conflict with aspirations. . there has been little or no difference observed in our target group in their choices. the toppers in the best known category come up trumps even here. Quite naturally. However. Even in a high-profile brand at least a few lines are made affordable to most people.

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 . both working and non-working. 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. With the economy moving upwards and income levels increasing.What Woman Want? While Tanishq and a few other regulars do occupy women's mind space. picking up gold jewellery without precious stones as their most preferred jewellery. the good news for other brands is that women are not unduly influenced by the aspirational longings of their hearts. gold consumption in India is showing tremendous growth.

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

Behind this success was. Titan later ventured into the jewellery businesses. a well-planned and wellexecuted marketing plan. Titan established its first manufacturing facility in Hosur. Jewellery had predominantly been used as an investment rather than adornment. At this point of time. one of the world's largest manufacturers of watch movements. The company. Hence. the jewellery business was highly localized and the concept of branded jewellery did not exist. Initially involved in the watches and clocks business. Titan set up a joint venture. Tamil Nadu and its first satellite watch assembly unit at Dehradun.2 million jewellers scattered across the country. it also started its jewellery division under the Tanishq brand. Titan changed its name from 'Titan Watches Ltd.example of a company single-mindedly working to make its own mark in the tradition bound Indian jewellery market. marketed under the Titan and Sonata brand names with a 25% share of the total domestic market. India had around 0.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year. In 1992. Background Note Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO). a change in the perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about. In the late 1990s. Uttar Pradesh was started in 1990. incorporated in July 1984 in Chennai.1 And in 1995. People generally bought gold from the same family jeweller they had trusted implicitly for . was started in technical collaboration with France Ebauches (a French company). The company was India's leading manufacturer of watches. with Timex Corporation of USA to market Timex watches in India. of course. Timex Watches Limited.' to 'Titan Industries Ltd.

" Over a period of time. from the very beginning. Initially with a focus on the export market. given the diverse nature of Indian ethnicity. The company also began seasonal and localized promotions . Setting Things Right Tanishq found out that it had gone wrong mainly in two areas . Vasant Nangia. Also. Thus. Tanishq said.generations. Tanishq realized that. our designs were not appreciated initially as they were believed to be extremely Western. Tanishq also made attempts to redefine traditional styles in its designs. its designs were predominantly Western. when it shifted its focus to the domestic market. traditional designs. 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. and the same line of jewellery was sold in India as well. "When we launched the Tanishq range. it would have to cater to tastes of all regions Therefore. we offered only 18 carat gold. The sleek and contemporary designs being offered did not go down well with the Indian customer who was used to heavy. Tanishq's research revealed many other loopholes in its strategies. it was unable to sell these designs. However. Moreover. Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewellery only from family jewellers. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well. Indian one.the product proposition and retailing. these jewellers made the jewellery to order and often bought back their products at the prevailing market rates. erstwhile Chief Operating Officer.

In 1999. Tanishq gave complete freedom to the retail outlets to pick up designs. though Indian. which did well across the country." Tanishq's team of in-house designers came out with about 3. In order to add some value proposition to rise above the competition. sales and marketing. Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments. etc.500 designs based on current trends and the feedback from stores. Almost all the outlets stocked the 'best selling' range of designs. such as during Durga Puja in West Bengal. which was most important to the customers. Onam in Kerala. Tanishq introduced the revolutionary concept of Karatmeters in its retail boutiques.based on Indian festivals. The customers had to accept this for want of an alternative. Tanishq decided to address the issue of gold purity. Karatmeters though expensive. These designs. conventional jewellers used the touchstone2 to test the purity of gold. 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. which they thought would sell in their stores. provided variety to what the people in a particular area were used to seeing. The Karatmeter used Xrays to give an accurate reading of the constitution of gold in the ornament within three minutes. proved to be the biggest USP for Tanishq in the coming years. Apart from the fact that the customers did not trust the method. Johnson Verghese. it was also alleged that a slight amount of gold was always lost while testing. . divisional head. said. Diwali in north India. Traditionally. Imported from Germany at a cost of Rs 1 million each. At least 10% of these designs were changed every quarter and fresh ones were added to the stock. "We also decided to go in for transmigration of designs.

replacing many long-standing relationships with the traditional jeweller. Tanishq's . In an attempt to elbow out competition. When Tanishq was launched. Kolkata. Nagpur. The number of boutiques was expected to reach 50 by the end of 2001 and to 70 by 2002. it had 47 'Tanishq boutiques' in 37 cities – 12 were in the metros . the jewellers kept the making charges very low to entice customers. Tanishq decided to set up its own chain of retail showrooms in 1998. Mumbai. the rest in smaller cities with a population of at least 0. Amritsar and Patna. Having realized this.Delhi. "They have begun to understand the total value proposition that Tanishq offers. customers began to realize that the rates they were paying for Tanishq jewellery were indeed justified. By July 2001. it sold most of its products through multibrand stores. A Tanishq official commented. In some cases the caratage was found to be as low as 10% and almost 65% of the gold tested was below 22 carats." 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. As the concept of Karatmeter became more widely known. Chennai and Bangalore.5 million such as Trichy. Tanishq conducted tests on 10. This proved to be a very wise move as sales picked up almost immediately. This had become the norm all over the country. As the caratage offered was on the lower side in traditional jewels.Fact. This did not help the Tanishq brand to make its mark. Tanishq had to struggle hard to break this convention. The focus on smaller cities paid off well with the annual growth being as high as 150% as compared to the 45% growth in metros. The concept was later on heralded as a bold step towards professionalizing the Indian jewellery business. its sales increased by 20-30%.000 ornaments selected at random.

Tanishq decided to have a standard gold price across all its showrooms from March 2000. This in-house manufacturing facility was the main reason. "We already have a kind of standard pricing in place. Tanishq based its gold prices on international exchange prices. One of the company's most important initiatives was customer service enhancement. The company also kept the entry-level price as low as Rs 600 (for a pendant) and offered a range. Tanishq launched a direct consumer contact programme and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. which enabled Tanishq to charge the same price across the country. . Nangia said. 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%. which far exceeded that offered by any other jeweller. but this would represent a formalization of that system to the public. The standard price was made binding on all Tanishq showrooms. 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 unit had facilities like refining. Tamil Nadu at a cost of Rs 600 million.efforts to standardize the price of its ornaments proved to be another milestone in its success. Tanishq set up an ultra-modern and large-scale manufacturing unit in Hosur. In a bid to control gold price variations in different parts of the country." Tanishq even had plans to link directly with the London Metal Exchange (LME) for daily quotes in the future. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deductions depending on purity.

By 2001.A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM). This gave the company the benefit of benchmarking against local and international players and also aided in improving repeat purchases. Tanishq initiated a long-term media plan. an associate of IMRB. As a result. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis. Gili and Carbon. while a portion was also earmarked for promotions tailored to match regional preferences. The Rs 100 million was split into four parts. comprising national-level spends (both electronic and print media). though nascent. Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. substantial promotions were carried out. Whirlpool. . say it in gold').000 customized gold coins to 0. For instance. launched in December 1998 proved to be a major success. other major players included Intergold. in New Delhi. Ceat and Liberty Shoes The communication and promotion budget was increased from Rs. which was Tanishq's single largest market. the TVS Group. A majority of this was spent towards advertising. the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola. The communication focused on design and quality instead of the price. For the first time. the UB Group. The company's corporate gold gift scheme ('When you want to say thank you. 65 million in 1999-2000 to Rs 100 million in 200001. aiming to give the brand a round-the-year presence and enhance awareness.25 million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. direct mail and research. grew at the rate of 20-30% during 1998-2000. regional budgets. Tanishq delivered 50. Besides Tanishq. Future Prospects The Indian branded jewellery market.

However. There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders. In a highly innovative move. A consumer-oriented. Titan believes that this market is right for consolidation. Not willing to accept this as a 'poor show. Tanishq tied up with Countrywide Finance for providing pre-approved credit line to the customers at selective outlets. highly ethical corporate player will have great opportunity. "The jewellery market is one of the largest consumer segments in the country. It has an estimated 2. this year. Jacob Kurian who had taken over as the CEO the same month. in the Rs 400 billion Indian jewellery market. Tanishq unveiled plans to surpass its parent company's turnover by 2002.' Tanishq saw it as a vast opportunity instead. 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. shorn of any caveat. In May 2000.” ." Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. Tanishq's share was not even 1%. Our growth rates in the past three years have fully substantiated this hypothesis. "We have finally figured out the jewellery business and should be solidly profitable. This was expected to boost sales significantly in the future.50.000 retailers with no national or international brand and no corporate player. Kurian said. said. The company planned to attain a 2% market share in the next few years.

ADVERTISING & PUBLIC RELATION Promotion Tanishq launches ‘Free gold coin offer’ campaign July 19. 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.000 and above. Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar. 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. which is a huge investment opportunity. .PROMOTION. "Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing an opportunity to own diamond jewellery and win gold.

In short they know their target market and hence do advertising as required. Print advertisement: In Leading news paper and famine magazines are targeted to do the advertisement. marriage and such other occasions.T V Advertisement: Tanishq focus on the emotional attachment in the advertisement like engagement. 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. .

celebration. After five years of consistent losses. There's drama. 2003 Jacob Kurian. of course.TANISHQ IN THE NEWS Priya Ganapati in Bangalore | July 04. is the blockbuster action thriller from the Tata group. followed by action and. Tanishq isn't tired of saying that the story of his company mirrors a Bollywood movie. a happy ending. Tanishq. on Thursday. the jewellery business group of Titan Industries. the company. chief operating officer (jewellery). announced the completion of a dramatic threeyear turnaround culminating in annual sales growth of 39 per . then betrayal in the family.

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. "Many people believe we should not be here today. Tanishq has already become one of the top five retailers in the country. Since. its launch. There are over 300. By then.000 crore (Rs 400 billion) gold jewellery market in India is a rough one. Till the last two years.000 jewellers. During 2002-03. The estimated Rs 40. . It contributes 40 per cent to Titan's business and is expected to account for 55 per cent by 2007. it hopes to take that to Rs 800 crore (Rs 8 billion). national players were almost nonexistent. But I am glad we have proved them wrong. Today. By 2007. Tanishq has not only been grappling the tough market conditions but also internal strife and Doubting Thomases." says Kurian proudly. Tanishq's profitability will also be good enough to offer 28 per cent return on deployment of 25 per cent of the capital.cent and profit growth of 318 per cent. Tanishq recorded a sales turnover of Rs 389 crore (Rs 3. each powerful in his neighborhood.89 billion) -. They have kept telling us that the business logic is against what we set out to do.at consumer prices.

the skeptics were asking what was Titan doing in the jewellery business? In the late eighties. The jewellery business in India was highly fragmented and ruled over by local players. as opposed to the 18-karat designs that jewellery chains worldwide chose to do their designs in. imports were easy to come by. was told to look for a way to earn its own foreign exchange. the Indian household had a marked preference for 22-karat gold. Being ethical too was a problem. 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. As a company which was part of the Tata group. demand had come down in the global market. by the time it acquired the skills and set up the plant. In August 1992 a pilot plant was set up and production started in two years later. Tanshiq launched its first store. . supply had grown in Asia and margins had become very thin.000 crore (Rs 50 billion) annually due to unethical business practices like under-karatage of gold. when India was facing a massive foreign exchange crisis. the watches division. It was a hitherto untried concept. In 1996. But that wouldn't help. India no longer had a foreign currency problem.One of the largest consumers of gold. the local satraps had a very tight stranglehold on their markets and it was difficult for a pan-Indian player to break into. misrepresentation of quality and tax evasion. Not surprisingly. Tanishq then decided to focus on the Indian market. There was no national jeweler that people could buy from. Tanishq prided itself on delivering customer value through a fair and transparent business model. known for maintaining high ethical standards. Clearly. Titan. the world had changed. Titan estimates that up customers and the Government is defrauded of up to Rs 5. However. despite that India is the largest consumer of gold in the world.

And worse." says Kurian. So. "The entire sales and marketing team resigned on that day. it had very little time on its hands to show a turnaround. Nangia was the hands-on man at Tanishq. a new and admittedly inexperienced team was put together. The team had an onerous task on its shoulders. He took along with him six senior executives of Titan. After all. he was the one who had charted out the expansion plans. Nangia quit. The then managing director of the company. A twenty-year veteran of the group.40 crore (Rs 104 million) though sales turnover was increasing. Bhat won and was anointed as the next managing director by Desai himself and Nangia became the chief operating officer. And like Kurian says it was too soon for the movie to end. It was a blow that many thought would sink the company. we were in our fifth consecutive year of losses then. Tanishq had quite a few problems on its hands then. It seemed an ignominious way for a Tata company to go. 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. Its high decibel media advertising wasn't working. Many thought this would be finally the way Titan closed down its jewellery business.Till 2000. . But a day after Bhat was announced at the successor to Desai. May 2000 turned out to be the defining period in the company's history. Tanishq could not find its feet in the market and its losses were mounting. In 1998-99 it showed losses of Rs 10. A stream of adverse media reports had instilled the fear that its shareholders would pull out anytime. which included increasing the number of exclusive boutiques to 67 from the then 30 and launching a new men's range of accessories. The company was rocked by what happened. Xerxes Desai had a choice between Bhaskar Bhat and Vasant Nangia when it came to deciding who would succeed him.

A customer survey revealed multiple problems." smiles Kurian. Despite its high-blitz ad campaign.21. that's the worst thing that can happen: having no traffic in the stores. getting customers back into the store became a priority. . "For a retailing chain.10. Ad campaigns now started to list out the products that Tanishq had.But as Kurian saw it. others found it too expensive and some felt that the product was not for people like them. So bracelets.40 2000-01 2001-02 2002-03 2. "We had customers waiting for the store to open. pendants were explicitly mentioned in each ad. Profits generated Year Profits generated (Rs crore) 1996-97 . rings.96 1998-99 . Sometimes we had to call the security guards because of the crowds." says Kurian. chains.87 7. A range starting at Rs 399 was launched. We just couldn't believe it. The ploy worked.10.60 1997-98 . Either way. Tanishq's woes were rather simple: There were just not enough customers in its stores. many didn't know what Tanishq was about. There were other minor tweaks made too.07 1.82 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.

Tanishq had made its first ever profit in the entire existence of the company. Tanishq was on a roll. Contribution to Titan's growth Year 1996-97 1997-98 1999-2000 2002-03 Tanshiq contribution to Titan (in percent) 8 14 24 43 Post September 11 attack on the World Trade Center.The aim was to bring down the price barrier significantly. The next year. Tanishq managed to limit its fixed asset investment to Rs 27 crore (Rs 270 million). Almost Rs 57 crore (Rs 570 million) came through corporate .32 billion) from Rs 239 crore (Rs 2. Today it has over 60 showrooms in 47 cities. Almost all of the efforts paid off. Profits generated dipped as a result but Tanishq was clearly on a revival. the company decided to write off some of the financial baggage it had been carrying. the volatility in the gold prices led to a steep decline in the demand for gold. yet it was a beginning. In all. The company changed quite a few of its original strategies along the way. Collections for the working women and a new set of contemporary designs were brought into the stores. It grew its retail sales during 2002-03 to Rs 332 crore (Rs 3. 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. Tanishq had its first showroom in Chennai in 1996. However.39 billion). A year later. from 843 tonnes to 680 tonnes. Only six of these are owned by the company. The rest are run by franchisees. the gold demand declined by 19 per cent. In 2002. It was a measly sum of around Rs 2 crore (Rs 20 million).

" says Kurian.sales and exports. New Japanese manufacturing machines have been introduced at the Hosur. 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. A slew of national brands have sprung up. The emphasis is now on customisation according to customer demands. Kurian says now it's a great time to be in business. The challenges remain. Institutional sales help us beat targets. for seven stone diamond jewellery. "We believe jewellery business is one of the few 'China-proof.2 million). on revenues of Rs 389 crore (Rs 3. Kurian and his team have brought in quite a few changes to the way Tanishq operates. 2008 (India) Tanishq to spread its radiance with new stores . A steady stream of jewellery collections each with its distinct target audience has been launched." he grins Tanishq News Headlines Tanishq launches ‘Free gold coin offer’ campaign July 19. Today. "We saw corporate sales as a new route to customer acquisition. Tanishq counts companies like Hindustan Lever Limited.89 billion). Pfizer. Tata Tea and Tata Chemicals among its clients. Since the last three years. Yet. Corporate and institutional sales had become an unexpected money-spinner for the jewellers. Aria. Profit figures have yet to rise significantly. Manufacturing has been made more flexible. WalMart-proof' kind of businesses. Tamil Nadu plant of the company. Hoopla. Tanishq made a profit of only Rs 7.82 crore (Rs 78. From Nakshatra to TBZ to Carbon. UB Group. National Panasonic. Tanishq has to battle a lot more at the market place. In 2002-03.

prêt January 28. 2008 (India) Tanishq opens 3rd exclusive showroom in Chandigarh November 20. 2007 (India) 100th store in Patna & still counting…Tanishq October 26. 2007 (India) Tanishq is a perfect gift for your sister! August 18.May 15. 2007 (India) Tanishq targets US jewelry market April 09. 2006 (India) Celebrate DHANTERAS with exquisite jewellery from Tanishq October 10. 2007 (India) Tanishq unveils coveted Miss India 2007 crown March 23. 2007 (India) Tanishq launches elegant fashion earring collection November 16. 2008 (India) Tanishq Jodhaa Akbar collection . 2008 (India) Royal Mughal appearance in Tanishq jewelry January 28. 2008 (India) Celebrate Akshaya Trithiya with Tanishq jewellery May 02. 2006 (India) US to shine with Indian jewellary November 03. 2006 (India) Tanishq expects 15-20% sales gain this year . 2006 (India) Tanishq Jewellery adds glamour to women's ensemble October 04.

August 03. 2003 (UAE) GLOBALIZATION Titan opened its first Tanishq jewelry brand outlets in Chicago and New Jersey by January 2008. 2005 (India) Tanishq and Titan declared ‘The Most Admired Brands Of The Year’ at LIFA January 27. Company aims to expand this into a 10-store chain with initial investment of US $6-7 million. 2006 (India) Tanishq launches Colors of Royalty range jewelry April 17. 2006 (India) Tanishq to strengthen its presence July 31. 2006 (India) Tanishq's 'up to 25 per cent off’ scheme January 31. 2005 (India) Tata’s Tanishq registers sales worth Rs 570 cr in FY-05 May 06. 2005 (India) Tanishq Launches Aria Collection October 07. 2005 (India) Tanishq launches exquisite collection for women’s day March 07. . Tanishq has targeted the world’s biggest jewelry market. 2005 (India) Tanishq introduces exclusive 'Paheli' collection June 24. 2006 (India) Tanishq introduces exquisite 'Paheli Collection' July 02.

000. Yoga. where the jeweller would retail 18 karat gold and diamond studded jewellery.ft. in July. US jewelry market is valued at around $16 billion. The Indian jewellery manufacturer plans to launch its pilot retail jewellery store in Chicago. while native American influences – like a local tree in New York have also inspired the jewellery collections. Currently. Price points for the jewellery have been determined between $400-$12.through either franchisee or self-owned outlets. US. The store is proposed as a 2000 sq. . Tanishq would inch its way to open a second store in the next three to four months. with concepts like Rain. Facility. in New Jersey. The designs at the store have been inspired and themed basis the lifestyle of modern American women.

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