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Marketing Management Project Report Submitted To:A.

N Bhattacharya Submitted By:Ahmad Nadeem Ankur Sharma Gaurav Pathak Mohsin Ajaz Jitendra Sharma

Acknowledgement We are extremely thankful to Mr. A.N Bhattacharya for giving us the opportunity to undertake this project in Marketing Management and for his overall support, v aluable guidance, astute judgment, constructive criticism and an eye for perfect ion without which this project would not have been in its present shape. And last but not the least we are also thankful to all our group members who mad e valuable contributions and constructive feedback towards the completion of thi s project. Introduction

An Indian Brand, which can make big in the global market, is Tanishq from Tata G roup of Industries. Tanishq is India's largest, most desirable and fastest growi ng jewellery brand in India. Tanishq today is India's most aspirational fine jew ellery brand with an exquisite range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold . Exquisite platinum jewellery and designer silverware is also part of the produ ct range. Though they faced many difficulties in the early stages for about six years, they then came with up with good strategies. The Tanishq strategy for the coming couple of years relies on two things: Increasing penetration in the domes tic markets. Going abroad in order to diversify its revenue portfolio. To push penetration in other markets, Tanishq will use the shop-in-shop concept th at it already follows in 50 stores across different West Asian markets. This redu ces distribution costs. Also, for the consumer it remains a Tanishq store and he lps us get a foot in to the market. Their main core competency is in designing a wide range of products. They were the first to come up with the idea of carat m eter, which proves the quality of the gold, to win the trust of the customer. Evolution of Tanishq Titan came into existence in July 1984, when the Tata Group joined hands with th e Tamil Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry.

Titan started manufacturing jewellery watches and jewellery in 1994. It set up i ts fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four tonnes of gold in a year. Titan launched these prod ucts under the brand name of Tanishq, in 1995. The name Tanishq, a blend of two words, tan (body) and ishq (love), was coined by Xerxes Desai, the then Vice Chairman and Managing Director of Titan. To change its image from a watch manufa cturer to a fashion accessories manufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million unit s in 1996 to meet the domestic and international demand. From the late 1990s, Ti tan s commitment to the jewellery business increased. When Titan launched Tanish q in 1995, the jewellery industry in India valued at Rs. 40,000 crore was mostly unorganized, with around 3.5 lakh players. Before 1992,only the Metal and Miner al Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold C ontrol Act of 1962, allowing free import of gold. In 1993, private companies wer e allowed to enter the hitherto restricted gold and diamond mining industry. For eign investors were allowed to hold up to 50% equity in mining ventures. Competitors D damas Diamonds D damas Diamonds are part of Gitanjali Digico Group and one of the earliest diam ond houses established in India in 1966. On the

present day D damas Diamonds offer highly modernized diamond cutting and polishi ng facilities at five locations in India. D damas Diamonds claim to promote a ra nge of emotions through their collections. Asmi Asmi, one of the leading diamond brands of the country, was launched, In 2002 by The Diamond Trading Company Ltd, (DTC). The Asmi diamond Jewellery Collection i s crafted to beautifully compliment and complete her. Asmi caters to the women o f substance & satisfies her mind for rewards recognition, evolving to suite her style & Personality. The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi & Perizad. All these women epitomize the different strengths . An Asmi woman is closely identifies with free-spirited, goal-oriented & with a n inner fire. Carbon In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was inco rporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the I ndian consumer s relationship with gold jewellery would grow beyond an investmen t need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was

launched. In 2000-01 Carbon s focus had always been to move jewellery from the va ult to the dressing table and bring the selling of jewellery out of heavily guar ded jewellery stores. This was achieved by persuading a few lifestyle stores to add branded jewellery to their vast array of products. Most of its designs were contributed by students at the National Institute of Fashion Technology (NIFT) t hrough the diploma programme which the company sponsored. In addition, Peakok s team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the U.K., Germany and India) turned out around 180 to 2 00 styles in a year, with 75 designs per style. At any point in time, there are around 600 designs of Carbon on sale. The creation, manufacture and marketing of Carbon was different from the making and selling of traditional jewellery. It i s made available at shop-in-shop outlets in large lifestyle stores (such as Sh oppers Stop, Ebony, Globus, The Bombay Store, Lifestyle and Taj Khazana) and som e premium boutiques (such as the Helvetica in Chennai).Carbon products were pric ed between Rs. 2,750 and Rs.20,000 per piece. While the cost of traditional jewe llery was negotiable, the cost of Carbon items was fixed and nationally uniform. The brand is available at 50 outlets in 23 cities. Gili Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In1999, the Gili Gold range was introduced. This range included rings, pe ndants,earrings, necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold quality.

Gili distributed its jewellery priced between Rs. 500 and Rs. 40,000 through lif estyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. Gili distributed its jewellery price d between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. The collection was promoted at college campuses with banners, pamphlets and afew advertisements targeted at teens. Gili soon realized that just pushing its product was not enough; it also had to customize its products for special oc casions. Following this, it launched a Diamond Heart Collection specially design ed for Valentine s Day. This collection consisting of tiny, heart-shaped diamond jewellery was well received by teens. Special packaging, catchy advertising and extensive press coverage contributed to the success of the collection. Gili als o made special promotional offers during festive seasons like Christmas and Diwa li. Having captured the low price point market of Rs.2000 to Rs.10, 000, the com pany is focused on penetrating the premium market of customized jewellery. For t his Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jew ellery to clients in India. 4 Ps of Marketing PRODUCT

PRODUCT VARIETY Tanishq today is India s most aspirational fine jewellery brand with an exquisit e range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold. Tanishq designs and manufac tures jewellery that is breathtaking, contemporary and yet has a tint of traditi on. It produces 22 carat pure gold earrings that come in various shapes, sizes a nd designs. Some earrings are embedded with precious stones or colour gemstones. These jewellery sets are overwhelming and could prove to be apt for occasions s uch as marriage, festivities etc. Furthermore, they also make bangles, chains, n ose pins, pendants, finger rings, Mangal Sutras etc. They also produce products made from silver such as deity idols etc. Recently,Tanishq has started producing diamond jewellery that are affordable and stunning. The diamond jewellery inclu de collections such as: All Day Diamonds, Aria, Dewdrops, Tanishq Solo, Dancing Diamonds etc. These collections come with a certificate of authenticity that sta tes the caratage, color and clarity of the diamond. QUALITY Consistency in delivering on their promise - Tanishq promises superior quality j ewellery with purity in gold. It is the first and only jeweller that guarantees the purity of its gold jewellery and certifies the quality of the precious/semiprecious stones in writing.

They claim and deliver the exact carats and weight that they promise. Impurity i n gold and not delivering what was promised is one of the main problems the cons umers face when going for gold purchase. They eliminated this and have 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. Thus it has established itself as a highly ethical player in a market that was rated as having the highest incide nce of under caratage (Bureau of Indian Standards).It maintains its quality stan dards in all its products wherever they are sold. This shows that they have a re solute core purpose. This is what they will have to maintain even when they glob al. They havethe right range of products for the different markets across the gl obe. Only theyhave to remember their differentiating factor. The differentiating factor for Tanishqwill be the experience and quality they will be giving the co nsumers when theycome to the store. DESIGN Widely acknowledged as a design leader, Tanishq is known for its ability to deve lop specialized design collections. Each piece of jewellery is designed by a tea m of award winning designers. In fact, Tanishq is the only jeweler to have a ful l- fledged design studio with one of the largest design teams in the country. Ev ery product at Tanishq is painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jewe ller in the country. Tanishq was recently adjudged the Most Admired Jewellery br and (for the third consecutive time) in India at the Images Fashion awards 2004. It has also been judged as the Images Retailer of Year in the fashion category. Positioned as 9-to-5jewellery, the

collection is stylish and modern and is designed to suit all forms of attire, we stern and Indian, casual and formal. BRAND NAME "Jewellery is one of the last great commodity frontiers in India; it has remaine d so because this market is very fragmented, very unorganized. Tanishq has succe ssfully taken on the challenge of transforming this frontier into a reliable con sumer space by bringing to it all the virtues and benefits that branding offers" , Harish Bhat, CEO, Tanishq. Tanishq within ten years years of establishment bec ame the largest and most desirable brand in the jewellery segment in India. They have constantly introduced new offering to their consumers and have come up wit h new innovative ideas. The surveys showed that awareness of the brand was quite high. The company believes that young urban women, with independent incomes, ar e looking at branded national jewellers. The brand believes that accretion to th is segment is clearly in its favour due to the modern contemporary image among w omen. PROMOTION The Tata Group has promoted Tanishq as a jewellery store brand, which competes w ith close to three lakh traditional jewellers who dominate the domestic market. Ithas launched new collections at

a quicker rate than its competitors, and conducted marketing promotions and fash ion shows to enhance the shopping experience of consumers. Given the diverse nat ure of Indian ethnicity, Titan made the designs more ethnic to satisfy the taste s of all regions. Titan transposed designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. Concept stores, the first of which, costi ng Rs 10 crore, opened in Kolkata . The idea of such a store was to harmonize th e tradition of the past with the modernity of the present. In 1998, it launched the corporate gold gift scheme - When you want to say thank you, say it in gold . In 1999, Tanishq delivered gold coins worth Rs. 20 crores to Maruti Udyog Ltd ., to be given away as gifts to Maruti car owners. By 2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, TVS Group, Ceat and Liberty shoes. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers. Tanishq ha s also endeavored to be part of every occasion in an Indian womans life through f estive promotions, customer contact programmes as well as through Anuttara, Tani shqs exclusive consumer reward programme etc. Tanishq provides Gift vouchers in v arious denominations for gifting your friends and family. Tanishq, to set off co mpetition, launched Jodhaa Akbar collection and managed to get lot of marketing hype. The collection is very pricey and suggested retail price is between Rs 25, 000 to Rs 15 lacs. One of the companys most important initiatives was customer se rvice enhancement. Tanishq launched a direct consumer contact programme and cond ucted surveys to monitor store walk-ins and footfalls and percentage of repeat c ustomers. The company also kept

the entry-level price as low as Rs 600 (for apendant) and offered a range, which far exceeded that offered by any other jeweller. A customer satisfaction measur ement program was started with the help of Customer Satisfaction Measurement Man agement (CSMM), an associate of IMRB. CSMM tracked customer satisfaction paramet ers for Tanishq on a quarterly basis. In 1999-2000 the communication and promoti on budget was increased from Rs. 65million to Rs 100 million in 2000-01. A major ity of this was spent towards advertising, while a portion was also earmarked fo r promotions tailored to match regional preferences. For instance, in New Delhi, which was Tanishqs single largest market, substantial promotions were carried ou t. The Rs 100 million was split into four parts, comprising national-level spend s (both electronic and print-media), regional budgets, direct mail and research. For the first time, Tanishq initiated a long-term media plan, aiming to give th e brand a round-the-year presence and enhance awareness. A customer survey revea led that despite its high-blitz ad campaign, many didn t know what Tanishq was a bout, others found it too expensive and some felt that the product was not for p eople like them .So, Kurian and his team then decided to launch the fifth annive rsary celebrations of Tanishq that would offer discounts to customers and induce them to come to the store. The ploy worked and they had customers waiting for t he store to open. Ad campaigns also started to list out the products that Tanish q had. Bracelets,rings, chains, pendants were explicitly mentioned in each ad. A range starting at Rs.399 was launched. The aim was to bring down the price barr ier significantly. Collections for the working women and a new set of contempora ry designs were brought into the stores.

Aria, for seven stone diamond jewellery, Hoopla, focused on diamond studded hoop s and Collection-G for lower priced gold jewellery with an interesting twist are just a few lines that have come out of the Tanishqs stable in the last three yea rs. One of Tanishqs more innovative ideas is to offer special schemes during vari ous festivals. Tanishq has also initiated a loyalty program called the Golden Ha rvest Savings Scheme, which offers buyers the benefit of getting more jewellery than what they have paid for. The scheme allows consumers to plan future purchas es in advance and pay for them in easy installments. Exchange offer - change imp ure gold for pure 22 kt gold - attracted more people to the stores. It is estima ted that roughly 2.85 lakh customers bought from - and close to a million people went through 53 Tanishq stores across 41 cities. Since the European designs in 18carat gold did not find any takers in 1997, Tanishq introduced 22carat ornamen ts. After hitting six countries in the last four years, Tanishq entered the $57billion US jewellery market with two exclusive stores, one in Chicago and the ot her in New Jersey, in the first quarter of 2007-08. PLACE Tanishq jewellery is crafted in one of the world s most modern factories. The fa ctory complies with all labour and environmental standards. Located at Hosur, Ta mil Nadu, the 135,000 sq. ft. factory

is equipped with the latest and most modern machinery and equipment. Tanishq rea ched the century mark as it unveiled its 100th store in Patna at Hathwa Market. Having embarked on the retail journey a decade ago, Tanishq today is the largest jewellery retailer in India. With a strong presence in 70 cities across India,u nmatched collections and assured purity, Tanishq has quickly become the first ch oice of discerning customers. Tanishq opened 30 retail stores during FY08, takin g the tally to 130 stores. Currently, the average store-size for Tanishq is 1,00 01,500 sq ft. The stores operate on the franchise model. Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand for a worl d class shopping experience. As such Tanishq retail identity has evolved over th e years to offer large format and concept stores that reflect the brands philosop hy of being Revitaliser of Tradition. Design and retail innovation have been the h allmark of Tanishq all these years. Tanishq has constantly formulated an innovat ive product strategy in this journey inline with the evolving consumer tastes. M odern retail values and principles in the selling of branded jewellery in India are almost completely the handiwork of Tanishq. The brand has broken fresh groun d inretailing by creating exclusive outlets with hitherto unknown in-store ambie nce and hospitality touchstones. Following more than 40% percent growth in opera tions last year, Tanishq will invest extensively during 2008 in marketing and re tail initiatives to further develop the market. In addition, Tanishq will build new logistics centres and upgrade existing ones, laying a solid foundation to me et future competition.

Besides catering to Indian consumers, Tanishq has successfully entered key expor tmarkets such as the US, the UK, the Middle East, Singapore and Australia. This istestimony to the brand s ability to craft products that meet the requirements ofvaried cultures and sensibilities. Tanishqs retail boutiques are temples for th e brand and are used as a platform forcelebration, be it the launch of a new col lection, a new marketing promotion or afestival. This gives Tanishq outlets a un ique appeal and consumers an opportunityto heighten their shopping experience. T anishq gave complete freedom to the retail outlets to pick up designs, which the ythought would sell in their stores. Almost all the outlets stocked the best se lling range of designs, which did well across the country. In fact, industry exp erts recall a period when plain gold gained space in Tanishq stores at the cost of studded jewellery. "It was perhaps an offshoot of its expansion into mini-met ros and other towns where the company thought plain gold will be in more demand. It was not a well-researched move, says an industry expert. It plans to open two pilot stores at Chicago and New Jersey with a retail format of1,800-2,000 sq ft. Meanwhile, it plans to tap small cities by opening 15 Gold Plus outlets, it s jewellery store brand for semi-urban markets. Launched two years ago,Gold Plus clocked Rs 200 crore revenues during FY08. Tanishq has entered the US markets. This is an amazing achievement for Titan Industries, said V Govindraj, Vice Presi dent, Tanishq. Retail is a capital-intensive business. In America, having1,000 st ores is not unusual. Even for niche retailing, 200-300 stores are needed. But in India, although there are several small scale unorganized jewellery markets, Ta nishq is the first and only jewellery brand to have organized mass jewellery ret ail chains across the country. As our company expands, more and more peoplewill be able to share our mindset. Tanishqs retail

strength goes beyond its innovative identity and extensive reach. Tanishq has un dertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day /Professional Day etc that were unexplored avenues in the industry. Following more than 40% percent growth in operations last year, Ta nishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. In addition, Tanishq will build new logistics centr es and upgrade existing ones, laying a solid foundation to meet future competiti on. Add the world to this. After hitting six countries in the last four years, T anishq is entering the $57-billion US jewellery market with two exclusive stores , one in Chicago and the other in New Jersey, by the first quarter of 2007-08. S .Ravi Kant, COO (international business division), Titan, says: We are not lookin g at the NRI market only. We want to understand the American consumer. He claims that Tanishqs market research team is figuring out the market and a designer who can create new products for it. Traditional jewellers have been rebranding thems elves and are expanding in smaller towns to widen reach. "The emphasis for Tanis hq will be on special collections, diamond jewellery and bigger stores of about 4,500 sq ft", Venkataraman said. Tanishq s team of in-house designers came out w ith about 3,500 designs based on current trends and the feedback from stores. At least 10% of these designs were changed every quarter and fresh ones were added to the stock. PRICE We have very large collections of pendants, earrings and fingerings in this pric e range Rs 2000-5000. Tanishq range of

products start at an accessible low of Rs.600 and the range - Solo, Aria, Diva, Hoopla, Lightweights, Bandhan and the most recent, Colours - comprises wearable everyday jewellery which has been designed for the urban working woman. The Tani shq Valentines Day collection includes pendants, earrings and finger rings starti ng from Rs. 2,000 onwards. Daytimes collection of all day diamonds, which starts at an affordable Rs. 1,960. The collection combines traditional motifs in sleek contemporary lines with slight touches of black rhodium. The up to 25 percent off offer by Tanishq is a unique opportunity. This attractive offer has been int roduced to benefit the customers and provide them with the best price and produc t options. Affordably priced from Rs 2,500/- onwards the Tanishq range of diamon d jewellery is the ideal accessory for the customers. This collection is crafted using a special process called electro-forming. The jewellery is targeted at cu stomers who are looking for international designs, wearability and value for mon ey. The new collection starts from a price range of Rs.6,000 onwards and availab le at all Tanishq boutiques across the country. Tanishq offers gold and gem-set jewellery in over 6000 traditional,western and fusion designs. The Tanishq retai l chain currently includes 112 exclusive boutiques in 75 cities, making it India s first and largest jewellery retail chain. BRAND POSITION

Tanishq has been projected as an impeachable mark of trust by raising the awaren ess of the people about unethical practices in the jewellery business and then m easuring the gold purity by carat meter. Tanishq also has been positioned as a b randed jewellery of luxury rather than commodity. It moves jewellery beyond inve stment to the fashion and adornment sector. SEGMENTATION Niche Marketing After its inception in 1995 focus on exports, Tanishq s designs h ad been conceptualized for the Western markets and were introduced in India with out any alterations. Tanishq positioned itself as an international brand for the Indian elite. The brand was targeted at a niche market(However they later on st arted targeting the mass marketing since 1997). Psychographic Segmentation Life Style: Tanishq has found that 40% of the Indian w omen are working and they targeted this segment with a specific group of

products called collection-G, a 9-to-5 jewellery for the working women. Geographical Segmentation Titan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titanalso decided to transpose designs by stocking Bengali d esigns in Delhi,Keralite designs in Tamil Nadu and typical designs from Tamil Na du inBombay in order to appeal to a variety of people Targeting Tanishq was initally targeted at a niche market.However, the traditional India w oman who prefers 22-carat gold jewellery didnot appreciated the International de sign made out of 18-carat gold. It was then when the company went back to the dr awing board and decided to target the larger segment of the young Indian women, having a modern, comtemporary outlook towards life while still being rooted in t he traditional Indian values. The target segment was thus, changed to the mainst ream Indian customer and the product was differentiated from standard fares thro ugh the fusion of comtemporary and traditional Indian motis.

This approach encouraged Tanishq to bring out new product lines such as Aamra, D ay Times, and Light weight color. Accordingly, the collection was introduced wit h modern innovative designs, creating a first-ever customized market to target s uch segment. SWOT ANALYSIS Strengths Purity of the jewellery through carat meter is still the sign of total p urity. Distribution network and retailing store are in place for the company with 130 stores countrywide. Mind boggling/award winning designs have come for the com pany. Diversity in jewellery gold/diamond/platinum enhances the product range of the company. We also have competitive prices for the entire product ranges as com pared to the competitors. Weaknesses Tanishq comprises a small share of the overa ll Rs 70,000 crore Indian jewellery market and hence it needs to increase its ma rket share in this huge industry.

Escalated gold costs has caused lower margins is to push sales as much as possib le. Opportunities Global markets like USA needs to be looked at. Low cost and easy to wear jewellery should be further promoted. Customized jewellery designs should provided to the customers. Concentrate on Gen-X by having trendy jewellery. Expa nd retail stores in India to further increase reach. Threats Competition from local jewellers all over India. Lack of Skilled workers in jewellery industry. Gold is no longer seen as source of investment. People ar e more concerned about design and luxury. Conclusion This is the era of technology. Technology and new innovation could lead Tanishq to new heights and in this way it could outdo its

weaknesses. Like, the high tech machineries which the branded companies use are able to produce 250 kgs of gold to produce good designers at very less time. Eve n if goldsmiths work six months for 12 hrs they are not able to produce the same design. So the branded companies are able to offer good designers at cheap pric e. So most of the goldsmiths are forced to close the shops so its a appropriate time to target the tyre-3 cities to increase the market share and to increase th e profits to a large extent. If all measures are taken properly then it could ea sily increase its market share. Refrences Marketing Management : Kotler-Keller-Koshy-Jha Wikipedia: http://en.wikipedia.or g/wiki/Titan_Industries Tanishq s Official Website: Case Stud ies And Management Resources: