PROJECT REPORT

ON
“PRE & POST COVID 19 EFFECTS ON
TANISHQ SELLING ”

Submitted to Partial Fulfillment for the Award of

Degree in

BACHELOR OF COMMERCE (HON.)

Submitted To: Submitted By:

Mr. Ms. Anchal Nigam NEMA SINGH

B.COM (HON.)

SCHOOL OF MANAGEMENT & SCIENCES

(Session- 2020-2021)

1
 CERTIFICATE

This is to certify that the project report entitled “PRE & POST COVID 19 EFFECTS

ON TANISHQ SELLING ” in the bonafide work of NEMA SINGH, ROLL No:

(19001022003) B.COM (HON.) from SCHOOL OF MANAGEMENT & SCIENCES.

Place: Lucknow

Date: MS. ANCHAL NIGAM

(Assistant Professor)

2
 DECLARATION

I NEMA SINGH, hereby declare this Summer Training Report entitled “PRE
& POST COVID 19 EFFECTS ON TANISHQ SELLING”. In portfolio
management submitted in the partial fulfilment of their requirement of
BACHELOR OF COMMERCE (HON.) of SCHOOL OF
MANAGEMENT & SCIENCES.

Date: Signature:

3
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would be a
mammoth task to place on record my gratitude to each and every one of them
but a whole hearted attempt would be made nevertheless, least I be branded
ungrateful.

NEMA SINGH
B.COM (HON.)

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 TABLE OF CONTENT

1. Introduction

2. Industry Overview

3. Company Profile

4. Research Methodology

5. Data Analysis & Interpretation

6. Conclusion

7. Reference

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 CHAPTER 1
INTRODUCTION
Introduction: The spread of the new coronavirus is a public health crisis that could action

a serious risk to the macro economy through the stop of production activities obstacle of

people‟s movement and cut-off of supply chain. Coronavirus (COVID-19) outbreak is

disrupting world trade and could result in a 50-billion-dollar decrease in exports across global

value chains. The trade impact of the coronavirus epidemic for India is estimated to be about

348 million dollars and the country figures among the top 15 economies most affected as

slowdown of manufacturing in China disrupts world trade. The coronavirus outbreak ensured

that the Year of the Rat didn‟t get off to the most propitious start. Over 2000 people dead so

more than 80000 infected and 40+ countries affected. Cities in lockdown, travel restrictions

in place, plant closures mounting. Global trade, commerce, tourism, investment and supply

chains in disarray. the slowdown of manufacturing in China due to the coronavirus (COVID-

19) outbreak is disrupting world trade and could result in a 50-billion-dollar decrease in

exports across global value chains. The most affected sectors include precision instruments,

machinery, automotive and communication equipment etc.

Circular Flow of Income: The circular flow of income is a model of the economy in

which the major exchanges are represented as flows of money, goods and services between

economic agents. The flows of money and goods exchanged in a closed circuit correspond in

value but run in the opposite direction. The circular flow analysis is the basis of national

accounts and hence of macroeconomics.

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This image shows the circular flow of income in a five-sector economy. The flow of money

is shown with purple, and the flow of goods and services is shown with orange. Money flows

in the opposite direction from goods and services.

 Market for Goods and Services: The goods and services market is

where households purchase consumable items and businesses sell their wares.

The market includes stores, the Internet, and any other place where

consumer goods and services are exchanged.

Global Effect: The Organization for Economic Co-operation and Development‟s

(OECD) recent report expects the outbreak of the coronavirus (COVID-19) to create a severe

impact on China and global economy.

“Restrictions on movement of people, goods and services, and containment measures such as

factory closures have cut manufacturing and domestic demand sharply in China,” the OECD

said. “The impact on the rest of the world through business travel and tourism, supply chains,

commodities and lower confidence is growing.”

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In the best-case scenario, a slowdown in world growth is expected in the first half of 2020 as

supply chains and commodities are hit, tourism decreases and confidence fades. The report

anticipates global economic growth to fall 2.4% for the whole year compared to 2.9% in

2019, while a rise to 3.3% in 2021 is expected.

The OECD revised China‟s growth to below 5% in 2020 compared to 6.1% in 2019.

But if COVID-19 continues to spread similarly as it did in China, it could decrease global

growth as low as 1.5%, the OECD noted.

Effect in India: Coronavirus has disrupted the demand and supply chain across the

country and with this disruption it can be seen that the tourism, hospitality, and aviation

sectors are among the worst affected sectors that are facing the maximum impact of the

current crisis. Closing of cinema theatres and declining footfall in shopping complexes has

affected the retail sector by impacting the consumption of both essential and discretionary

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items. As the consumption of any product or services goes down, it leads to an impact on the

workforce. In the current scenario, with all the retailers closing down their services, the jobs

of the employees are at a huge risk.

For India, the overall trade impact is estimated to be the most for the chemicals sector at 129

million dollars, textiles and apparel at 64 million dollars, the automotive sector at 34 million

dollars, electrical machinery at 12 million dollars, leather products at 13 million dollars,

metals and metal products at 27 million dollars and wood products and furniture at 15 million

dollars. As per UNCTAD estimates, exports across global value chains could decrease by

US$ 50 billion during the year in case there is a 2% reduction in China‟s exports of

intermediate inputs.

Major Survey Results

 A significant 53 per cent of Indian businesses indicate the marked impact of the

COVID-19 pandemic on business operations even at early stages.

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  The pandemic has significantly impacted the cash flow at organizations with almost

80 percent reporting a decrease in cash flow.

 The pandemic has had a major impact on the supply chains as more than 60 per cent

respondents indicate that their supply chains were affected. The companies also

highlighted that they are closely monitoring the situation and expect the impact of the

pandemic on the supply chain to worsen further.

 Organizations have brought in a renewed focus on hygiene aspects concerning the

pandemic. Almost 40 per cent have put in place stringent checks on people entering

their offices and disinfection. Nearly 30 per cent organizations have already put in

place Work-from-Home policies for their employees.

 Nearly 42 per cent of the respondents feel that it could take up to 3 months for

normalcy to return.

 Firm: - A firm is a commercial enterprise, a company that buys and sells

products and services to consumers with the aim of making a profit. A

business entity such as a corporation, limited liability company, public limited

company, sole proprietorship, or partnership that has products or services for

sale is a firm.

Global Effect on firms: -

 Based on a survey of SMEs in February, reports on China showed that a third of

SMEs only had enough cash to cover fixed expenses for a month, with another third

running out within two months, putting millions of Chinese SMEs at risk. Reporting

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 on 14 March, suggests 60% of Chinese SMEs are back in business, but now face

further challenges due to reduced demand from other markets.

 An early March survey of micro and small firms in Italy showed that 72% of the 6000

responding firms were directly affected by the situation because of a drop in demand

or problems along the supply chain and transport and logistics. One third of

respondents estimated a decrease in revenues greater than 15% and an additional 18%

of firms estimated that decrease to be between 5-15%. The most affected firms are

those in transport (98.9%) due to the demand downfall then tourism (89.9%), fashion

(79.9%) and agro-food (77.7%).

 February KfW-IFO barometer in Germany on the Mittelstand suggested that so far

small businesses in Germany are relatively less affected because of operating in

regional supply chains. While business sentiment among SMEs in February improved

by 0.8 points, business sentiment of larger firms declined by 2.4 points, reflecting the

coronavirus situation. However, a new survey by DIHK of over 10 000 German

companies (85% of which had less than 200 employees) released on 9 March

indicated that almost half of respondents expected a negative impact on business in

2020, with almost one third expecting a decline in turnover of more than 10%.

 In March, the Korean Federation of SMEs published a survey of SMEs engaging in

import/export. Of the 191 firms surveyed, 71.8% stated they would be affected by the

outbreak, with more than half of these firms stating that they were unable to meet

delivery dates due to factory closures in China.

 A13 March survey from the US National Federation of Independent Business among

300 of its 300,000 members from employers with up to 120 workers showed that 74%

of small businesses say they are not yet affected by the pandemic, while 23% say they

are being negatively affected. Of those indicating they were not affected, nearly half

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 anticipate the outbreak to negatively impact their business if the virus spreads to or

within their immediate area over the next three months. Among the businesses that

said they were being damaged, 42% reported seeing slower sales, while 39% were

experiencing supply-chain disruptions.17 A Survey in Seattle, showed that 60% of

small businesses are considering wage cuts and staffing cutbacks, while 35% said

they might have to close.

Effect on firms in India: -

Citing loss of business amid closure of stores due to the spread of the coronavirus, Retailers

Association of India (RAI) has asked the government for several financial “reliefs” including

a 90-day grace period for filing income tax, GST and provident funds and 120 days‟

moratorium for repaying bank loans.

The country‟s largest retail group comprising modern retailers including Future Group,

Reliance Retail and Shoppers Stop have also asked the government for April-June “job

support subsidy” of 50% of minimum wages for retail employees through direct benefit

transfer and said the retailers themselves would bear the rest.

“Currently, the retail industry is under lock-down (“closed”). With no revenue flow, the

impact is significant to all retailers small or big,” the group representing more than 5,000

retailers said in a press release. “The entire consumption value chain will feel the impact of

store closures. There is an urgent need for immediate economic stimulus to ensure continuity

of retail stores and consumption in India.” RAI said it has sent letters on Thursday to the

Prime Minister‟s Office (PMO) and the finance minister.

 Production Industry: - The branch of manufacture and trade based of the

fabrication, processing, or preparation of products from raw materials and

commodities. This includes all foods, chemicals, textiles, machines, and

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 equipment. This includes all refined metals and minerals derived from

extracted ores. This includes all lumber, wood, and pulp products.

Global Effect on Production Industry

COVID-19 did not just start anywhere in China. Wuhan, the city that hosted the first major

outbreak of the coronavirus, is one of China‟s major automotive production (parts & cars)

sites. GM, Honda, Nissan, Peugeot and Renault all have manufacturing plants in Hubei

Province, of which Wuhan is the capital. It is fair to say that the car industry was the first

economic victim of COVID-19, and the economic impact of the virus became global faster

than the virus itself.

PASSENGER VEHICLE SALES JANUARY/FEBRUARY

Country Jan/Feb 2019 Jan/Feb 2020 Y-o-Y

Japan 887,402 790,288 -10.94%

China 3,250,000 1,831,000 -43.66%

India 552,334 514,230 -6.90%

Malaysia 44,264 39,127 -11.61%

Philippines 16,958 14,636 -13.69%

Thailand 78,090 71,688 -8.20%

Australia 55,201 43,142 -21.85%

Korea 221,771 181,324 -18.24%

Domestic OEM sales only

Effect on Production Industry in India

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According to a report in ET Auto, the Indian automobile industry is likely to suffer an

estimated revenue loss of around 13,000 crores to 15,000 crores due to the coronavirus

outbreak. With the pandemic disrupting the domestic economy and several businesses in the

country, the automakers will have to bear the estimated revenue loss if they are forced to shut

down the operations for the next 10 days. A majority of the manufacturers like Maruti,

Hyundai, Honda, Suzuki, TVS & Tata Motors have already opted for the temporary

shutdown the operations. Some companies that are yet to announce closure are Kia

Motors and BMW India. However, MG Motor India has decided to introduce disinfect &

deliver program initiative for the customers wherein the vehicle will be completely sanitised

to ensure minimal risk of infections.

As per the ET Auto report, the Indian auto sector earns gross revenue of around 2,000 crores

each day and shutting down the production by the manufacturers for the next 10 days will

result in a revenue loss of up to 15,000 per day wherein the annual business of the sector

stands at ₹7.8 lakh crore. Additionally, the industry also contributes around 7.5 per cent to

India's overall GDP, which accounts for 49 per cent of its manufacturing sector.

However, the estimated loss can be recovered, once production resumes and the

manufacturers are willing to ramp up the production and increase the capacity utilisation. The

domestic automobile sector is already going through a negative phase as of now with severe

underutilisation of capacity due to slow demand over the last year. Now, the coronavirus

pandemic has forced the automakers to stop production at their facilities and force their non-

manufacturing employees to work from home.

As of now, the OEMs have halted the production at their selected facilities where the state

government have issued orders for the complete shutdown. But, seeing the magnitude of the

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impact and exponential rise in the cases of coronavirus in the last two days, some experts

believe that the auto sector may be heading towards a 100 per cent shutdown.

According to the latest data from the Union Health Ministry, there has been a steep rise in

coronavirus cases that jumped to 396 till Sunday.

 Financial Market: - A financial market is a market in which people

trade financial securities and derivatives at low transaction costs. Some of the

securities include stocks and bonds, and precious metals.

Global Effect on Financial Market

We begin our analyses with an overview of industry-level returns in China, the US, Europe,

and Asia ex China, throughout the full months of January and February 2020 (the latest data

available to us for countries other than the US). While discussions in the media have

generally used raw returns, we also compute CAPM-adjusted returns that is returns adjusted

for a firm‟s exposure to the overall market.

The industry averages of cumulative returns for China (top panel) and the US (bottom

panel). Energy, Retailing and Transportation were losers both in China and the US.

Healthcare gained substantially in both countries. There are also differences across regions.

For example, the Semiconductor sector gained sharply in China, but lost in the US. Utilities

lost in China but gained strongly in the US.

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 Stock returns by industry in China and the US, January to February 2020

Effect on Financial Market in India

In wake of the novel coronavirus (Covid-19) outbreak, over 50 per cent of Indian companies

see impact on their operations and nearly 80 per cent have witnessed decline in cash flows,

says a survey.

The pandemic has presented fresh challenges for the country's economy, causing severe

disruptive impact on both demand and supply side elements which has the potential to derail

the growth story, according to a poll conducted by industry body FICCI

The country is already experiencing a slowdown in growth. In the third quarter of the current

fiscal, the economy grew at 4.7 per cent, slowest in six years. A significant 53 per cent of

Indian businesses indicate the marked impact of the coronavirus pandemic on business

operations even at early stages, Federation of Indian Chambers of Commerce and Industry

(FICCI) said. The pandemic has significantly impacted the cash flow at organisations with

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almost 80 per cent reporting a decrease in cash flow, the survey showed.

The findings were based on interactive sessions and survey conducted by Ficci amongst the

industry members.

"Besides the direct impact on demand and supply of goods and services, businesses are also

facing reduced cash flows due to slowing economic activity, which in turn is having an

impact on all payments including to those for employees, interest, loan repayments and

taxes," it said.

It said combination of monetary, fiscal and financial market measures is needed to help the

businesses and people cope with the crisis.

"The Reserve Bank of India (RBI) need to support the Indian industry and economy at this

juncture by bringing down the cost of funds further through reduction in policy rates, say, by

close to 100 basis points," it said.

Banks should be given a flexibility to reschedule payment terms without the need for

provisioning.

The survey said there is need to maintain liquidity at surplus levels and provide special

liquidity support for any companies/NBFCs/banks that come under strain due to intensifying

risk aversion in financial markets or due to large demand shock.

With the corporate bond and commercial paper markets are facing liquidity challenges, the

RBI should intervene, either directly or through the commercial banking system, to ensure

adequate flow of funds into the market.

The government should not cut its capital expenditure plans despite any shortfall in tax

collections, it said. It also said the Insolvency and Bankruptcy Code (IBC) should be

suspended for a short period for sectors like aviation and hotel, that are severely impacted due

to Covid-19.

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The survey showed that more than 60 per cent of respondents have seen impact on their

supply chains and expect the situation to worsen further.

"Nearly 42 per cent of the respondents feel that it could take up to three months for normalcy

to return," the survey highlighted.

Most of the organisations have brought in a renewed focus on hygiene aspects concerning the

pandemic.

Almost 40 per cent have put in place stringent checks on people entering their offices and

disinfection while nearly 30 per cent organisation have already put in place work-from-home

policies for their employees.

 Households: A household consists of one or more people who live in the

same dwelling and share meals. It may also consist of a single family or

another group of people. The household sector includes the entire population

of society. It includes all of the consumption-seeking members of society--the

entire population. It is society. In effect, the economy exists to satisfy the

wants and needs of the household

Effect on Global Household:

The outbreak of coronavirus will have a larger negative effect on the global economy. The

virus has brought large parts of the world's second largest economy to a standstill and its

impact was felt across industries.

China was the sixth largest economy, accounting for only 4.2 per cent of world GDP. China

is now the world's second largest economy, accounting for 16.3 per cent of world GDP.

Therefore, any slowdown in the Chinese economy sends not ripples but waves across the

globe.

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The effects of coronavirus are most pronounced in household consumption and somewhat

mitigated in the industrial sector because factories are seasonally idle during this period.

Nevertheless, in many ways China's economy is more vulnerable today than it was in 2003,

with productivity and overall economic growth already slowing and the effects of the US-

China trade conflict.

Effect on Indian Household:

The effects of coronavirus are most pronounced in household consumption and somewhat

mitigated in the industrial sector because factories are seasonally idle during this period.

Nevertheless, in many ways China's economy is more vulnerable today than it was in 2003,

with productivity and overall economic growth already slowing and the effects of the US-

China trade conflict.

India‟s total electronic imports account for 45% of China. Around one-third of machinery and

almost two-fifths of organic chemicals that India purchases from the world come from

China? For automotive parts and fertilisers China‟s share in India‟s import is more than 25%.

Around 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile

phones come from China to India.

In terms of export, China is India‟s 3rd largest export partner and accounts for around 5%

share. The impact may result in the following sectors namely organic chemicals, plastics, fish

products, cotton, ores, etc.

It has been seen that some sectors of India have been impacted by the outbreak of coronavirus

in China including shipping, pharmaceuticals, automobiles, mobiles, electronics, textiles, etc.

Also, a supply chain may affect some disruptions associates with industries and

markets. Overall, the impact of coronavirus in the industry is moderate.

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Conclusion: Effect on trade about the impact of the COVID-19 on China‟s productive

capacity, the most recent statistics point to a significant downturn. The full effect of COVID-

19 on global value chains will become clearer in the coming months. However, one question

of importance is how a disruption in Chinese supply of intermediate inputs will affect the rest

of the world. Based on the analysis two key points can be made.

 If the outbreak of COVID-19 is contained mostly within China, the fact that Chinese

suppliers are critical for many companies around the world implies that any disruption

in China will be also felt outside China‟s borders. European, American and East

Asian regional value chains will be disrupted. The estimated global effects are subject

to change depending on the containment of the virus and or changes in the sources of

supply.

 It is expected that the spill over effects of a disruption in Chinese supply will be

diverse across economic sectors and dependent on the geographic localization of the

COVID-19 outbreak and of the containment measures within China. For example,

automotive industry‟s intermediate exports may fall relatively more as the industry is

geographically localized in the region where the outbreak of COVID-19 occurred.

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Importantly Because of lack of information this note does not consider this second

aspect. Once sectoral data on Chinese output is available the likely effect on the

various global value chains will become clearer.

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 CHAPTER 2
Industry Overview
Till the early 1990s, the average Indian bought jewellery for investment rather than for
adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor
investment. Branded jewellery also gained acceptance forcing traditional jewelers to go in for
branding. Given the opportunities the branded jewellery market offered; the number of gold
retailers in the country increased sharply. Branded players such as Tanishq opened outlets in
various parts of the country. Traditional jewelers also began to bring out lightweight
jewellery, and some of them even launched their in-house brands. However, the share of
branded jewellery in the total jewellery market was still small (about Rs. 10 billion of
the Rs. 400 billion per annum jewellery market in 2002), though growing at a pace of 20 to
30 percent annually. 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. Moreover, consumers trusted only their family jewelers when
buying jewellery. Consequently, the branded jewellery players tried to change the mindset of
the people and woo customers with attractive designs at affordable prices.

However branded jewellery players will continue to face lot of competition from local
jewelers. In order to gain market share, 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.

Gold Jewellery Market in India

India is the largest consumer of gold in the world, followed by China and Japan. India
consumes nearly 800 tons of gold that accounts for 20 per cent of world Gold consumption,
of which nearly 600 tones go into making jewellery. Before the liberalization of the Indian
economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and
the State Bank of India (SBI) were allowed to import gold. The abolition of the Gold Control
Act in 1992, allowed large export houses to import gold freely Exporters in export processing
zones were allowed to sell 10 percent of their produce in the domestic market. In 1993, gold
and gold ornaments mining were opened up for private investors and foreign investors were
allowed to own half the equity in mining ventures. In 1997, overseas banks and bullion
suppliers were also allowed to import gold into India. These measures led to the entry of
foreign players like DeBeers, Tiffany and Carriers into the Indian market. In the 1990s, the
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number of retail jewellery outlets in India increased greatly due to the abolition of the Gold
Control Act. This led to a highly fragmented and unorganized jewellery market with an
estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single
shop operations. In 2001, India had the highest demand for gold in the world; 855 tons were
consumed a year, 95% of which was used for jewellery.

Jewellery Retail Sector

The Indian gems and jewellery market continues to be dominated by the Unorganized sector.
There are over 2.5 million jewellery shops in India and most of them are family run.
However, with the Indian consumer becoming more Aware and quality conscious, branded
jewellery is becoming very popular and the Market for branded jewellery is likely to be worth
US$ 2.2 billion by 2010. With an Increasing number of jewellery houses entering the branded
jewellery sector, Retail of jewellery is becoming organized. Moreover, the government
allows 51 percent foreign direct investment in single brand retail outlets, attracting both
Global and domestic players to this sector. A booming market has in recent years attracted a
large number of players to the Indian gems and jewellery.

Consumer behavior is a relatively new field of study emerged in late 1960s with no history or
body of research of its own unlike branches of economics. Many early theories concerning
consumer behavior were based on economic theory on the notion that individuals act to
maximize their benefits in the purchase of goods and services.

The gems and jewellery industry occupies an important position in the Indian economy and is
one of the fastest growing industries in the country. Hence the research conducted would help
me Understand the consumer‟s preference while purchasing jewellery. How much impact
does a brand have on their purchase decision? Does price play an important role in guiding
their purchase decision?

The previous research done on branded and non branded jewellery markets are Indian Gems
and Jewellery Market - Future Prospects to 2011, The impact of recession on the jewellery
industry, The growth of the Branded jewellery market in India The study would also help to
find out the consumer preference and their buying behavior towards branded and non branded
jeweler‟s, this would help both the retailers to know what are the consumer preference and
what strategies should they adapt to grab the market.

GOLD JEWELLERY BECOMES FASHION ACCESSORY

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Till the early 1990s, the average Indian bought jewellery for investment rather than for
adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor
investment. Confidence in the local jeweler was the hallmark of the gold jewellery trade in
India. "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."

In October 2002, Trend smith conducted a survey to understand the shifting needs,
motivations and aspirations of consumers in the jewellery market, and to identify new trends
and opportunities. 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. The focus had
shifted from content to design.
• The younger generation was looking at trendy, contemporary jewellery and
clearly avoiding heavy, traditional gold jewellery.
• The consumer wanted a wider selection at a single convenient location and
expected an international shopping experience.
• The Indian consumer was willing to experiment with new designs.

The late 1990s and early 2000s, with the increase in the number of designers from design
schools such as the National Institute of Fashion Technology (NIFT), a wide range of new
designs.

INDIAN CUSTOMERS SHOWING INTEREST IN BRANDED JEWELLERY

As per our recently published research report “Indian Gems and Jewellery Market – Future
Prospects to 2011”, gems and jewellery market in India posses tremendous potential for
future growth since it has an added advantage of low production cost and highly skilled labor
that separate it from its competitors. It is projected that the overall gems and jewellery market
will grow at a CAGR of around 14% during 2009-2012.

India possesses world‟s most competitive gems and jewellery market due to its low cost of
production and availability of skilled labor. As per our new research report “Indian Gems
and Jewellery Market - Future Prospects to 2011”, highly skilled and low cost manpower,
along with strong government support in the form of incentives and establishment of SEZs,
has been the major driver for the Indian gems and jewellery market. The market also plays a

24
vital role in the Indian economy as it is a leading foreign exchange earner and accounts for
more than 12% of India‟s total exports. Currently the Indian market remains highly
fragmented, but is rapidly transforming into an organized sector. Currently, the industry is
facing a slowdown due to global economic turmoil.

But due to various government efforts and incentives coupled with private sector initiatives,
the Indian gems and jewellery sector is expected to grow at a CAGR of around 14% from
2009 to 2012. At present, the Indian gems and jewellery market is dominated by the
unorganized sector; however, the trend is set to change in near future with the branded
jewellery market growing at an expected CAGR of more than 41% in the coming four years.
As per our research report, with its consumption pegged at nearly 20%, India remains world‟s
largest gold consumer and this share is expected to grow further.

Given the fact that majority of market share is occupied by family-owned jewelers, the
domination of unorganized segment still continues on the Indian gems and jewellery market.
However, this scenario is gradually changing with the entrance of organized players who
primarily focus on customer satisfaction by giving better and finer quality products. Thus,
consumers are now moving towards branded jewellery which is more reliable in terms of
quality and design.

TRADITIONAL V/S BRANDED JEWELERS

Gems and Jewellery sales and marketing received a facelift with the advent of the
supermarket culture. As India reacts to a retail revolution, the hitherto sober gems and
jewellery industry seems to have jumped on the bandwagon with a

clear plan of action. The industry has already made a mark by capturing 3 per cent of the
organized retail space thanks to the leadership shown by a handful of companies prepared to
dazzle the world. While organized retail under this segment impressively grows at over 50
per cent annually, deliberations are on to arrive at what the industry in general must do to
keep the customer perennially delighted. The gems and jewellery market in India is estimated
to be about Rs.80, 000 crore and the topmost agenda is to adopt the right strategy to
accelerate its growth keeping in mind current global dynamics. For now the industry faces
keen competition from other luxury goods such as electronic innovations and other personal
accessories. How far is it necessary for the gems and jewellery sector to seriously consider it?
There is no doubt that things are a lot more organized in stores inside malls. They also

25
showcase and present products very attractively. But in my opinion, real sales take place
through traditional jewellery stores as jewellery is mainly sold on trust- Ghanshyam
Dholakia.

The urgency in the industry indicates rapid changes in the way goods are produced and
marketed. The evolution of new formats for sale and the massive technology and to some
extent, sizeable infrastructural developments taking place all foretell a prospect of growth
way beyond the current overall 10 per cent. The Indian gems and jewellery industry boasts a
strength of over three lakh jewellery retailers across the length and breadth of this country.
The huge number indicates strength in itself but it also indicates a difficult diversity to
grapple with when exploring common grounds to formulate united approaches to tackle
common concerns.

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 CHAPTER 3
COMPANY PROFILE

Tanishq: A Sparkling Journey

The Tanishq saga began in the early 1990's, primarily fuelled by the fabled Tata
entrepreneurial spirit and partly forced by circumstance.

The splendid Titan watches success story was already up and running, and happened to need
more foreign exchange to purchase the imported components and machines required to keep
up with the burgeoning watch production. But with India going through a foreign exchange
crisis, there was no help coming in, forcing Titan to search for a business that would earn
them the required foreign currency.

Indian-made jewellery was already a big foreign currency earner and being strongly
supported by the central government, and also happened to be a very good fit with the watch
business as articles of adornment.The best known brand names in both Europe and America
had watches and jewellery together, offering further proof that the two industries are
intrinsically linked.

It was a business with a huge wealth potential and it added a very feminine offering to Tata's
long line of products that appealed mostly to the opposite gender. It also called for an
organization that inspired trust and had high order design, manufacturing, marketing and
retailing skills, and Tata fit the bill on all accounts.

Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning a necklace
of gold coins) and, again, from Tan, meaning body and Ishq, meaning love.

27
It was launched in 1994 as a range of jewellery and jewellery watches meant for the
European & American markets. But things began to change globally around this time, and the
West entered a protracted period of slow economic growth followed by recession. Supplying
jewellery to the Americans & Europeans suddenly no longer seemed an attractive
proposition.

Initially, the criticism for Titan's foray into jewellery was loud and often bitter. Eventually,
however, the critics were silenced. Tanishq, today, is perhaps the only major Tata brand with
a strong appeal for women. Very importantly, Tanishq has brought to the market a whole new
standard of business ethics and product reliability, in the process bringing about a
transformation in the manner in which jewellery is bought and sold in India.

It has created a revolution in the Indian jewellery trade and in jewellery buying behaviour,
and continues to set new parameters of excellence for others to follow.

The Indian market, on the other hand, opened its doors to the world, and was now flooded
with foreign currency. By the time Tanishq established its manufacturing facility and entered
the market, the premises on which the project was based had altered substantially.

Foreign currency was no longer an issue, import licences were easy to obtain and the global
demand-supply equation for jewellery had shifted in favour of buyers. Tanishq, therefore,
switched tracks and shifted its focus to the Indian market and develop a somewhat grandiose
vision of the brand as a composite avatar of Cartier, Tiffany, Esprit, and Ernest Jones all
rolled in one.

The Gems & Jewellery industry

The Gems and Jewellery (G&J) market essentially comprises of sourcing, processing,
manufacturing and selling of precious metals and gcmstoncs, such as, Gold, Platinum, Silver,
Diamond, Ruby, and Sapphire etc. The G&J market is a significant contributor to the Indian
economy, based on the size of the domestic market and through its contribution to the
country's exports. India is the largest consumer of gold (around 20 percent of global
consumption) and also the largest diamond processor (around 90 percent by pieces and 55
percent by value of the globalmarkct.
India's G&J industry is highly unorganized and fragmented with 96 percent of the
total players being family owned businesses. The gold processing industry has around 15,000

28
players, with only 80 having revenues over USD 5 million. India is also home to around
450,000 goldsmiths, 100,000 gold jewelers along with 6,000 diamond processing players and
8,000 diamond jewelers. The value chain of the industry starts from sourcing and mining of
the metals and extends to jewellery retail. While India is not a major miner of previous metals
and stones, the country's inexpensive and well skilled workforce makes it a world leader in
processing of diamonds. The country's jewellery retail sector is also expected to evolve with a
shift among consumers towards branded jewellery, driven by greater quality
consciousness.
There are a few major players in the G&J segment, with Rajcsh Exports being the
most dominant name. Other key players in the field include Gitanjali Gems, Suhashish
Diamonds, Su-Raj Diamonds, Vaibhav Diamonds and Tanishq. Many of these players arc
focused on developing strong brands, large retail operations, strengthening their core
manufacturing operations and building a strong international presence.
India's large population and rapid economic growth offer significant opportunities for
growth of the industry. The emergence of jewellery retail chains provide customers with
convenience and assurance of quality. The entry of foreign players is also likely to increase
competition and provide consumers with greater choice. Apart from the above, there arc other
factors that contribute to a favorable outlook for the industry.

About us

Titan Company brought about a paradigm shift in the Indian watch market when it introduced
its futuristic quartz technology, complemented by international styling. Titan Company is the
fifth largest integrated own brand watch manufacturer in the world. In addition to 'Titan' the
watch brand, Titan Company has also built 'Tanishq' the leading jewellery brand over the past
few years. Both these brands are among the most recognised and loved brands in India.

The success story began in 1984 with a joint venture between the Tata Group and the Tamil
Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an
international look, Titan Company transformed the Indian watch market. After Sonata, a
value brand of functionally styled watches at affordable prices, Titan Company reached out to
the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 150
million watches world over and manufactures over 15 million watches every year.

29
With a license for premium fashion watches of global brands, Titan Company repeated its
pioneering act and brought international brands into the Indian market. Tommy Hilfiger,
FCUK, Timberland & Police as well as the Swiss made watch – Xylys owe their presence in
the Indian market to Titan Company.

Entering the largely fragmented Indian jewellery market with no known brands in 1995,
Titan Company launched Tanishq, India's most trusted and fastest growing jewellery brand.
Gold Plus, the later addition, focuses on the preferences of semi-urban and rural India.
Completing the jewellery portfolio is Zoya, the latest retail chain in the luxury segment.

Titan Company has also made its foray into eyewear, offering a variety of differentiated
products to the end consumer consisting of frames, lenses, contact lenses and accessories.
Frames are available in both international brands (Levis, Esprit, Hugo Boss etc.) and in-house
brands – Titan, Eye+ and Dash which is an offering for children. The company has leveraged
its manufacturing competencies and branched into precision engineering components & sub-
assemblies, machine building & automation solutions, tooling solutions and electronic sub-
assemblies. With over 1100 retail stores across a carpet area of over 1.5 million sq. ft.
Titan Company has India‟s largest retail network spanning over 220 towns. The company has
over 400 exclusive „World of Titan' showrooms and over 150 Fastrack stores. It also has a
large network of over 740 after-sales-service centres.

Titan Company is also the largest jewellery retailer in India with over 160 Tanishq boutiques
and 2 Zoya stores, over 30 Gold Plus stores. It also sports over 300 Titan Eye+ stores. In
addition the company retails personal accessories such as bags, belts, wallets and most
recently perfumes under Skinn Brand.

Backed by over 7,000 employees, two exclusive design studios for watches and jewellery, 12
manufacturing units, and innumerable admirers‟ world over, Titan Company continues to
grow and set new standards for innovation and quality. The organization is all geared to
repeat the Titan and Tanishq success story with each new offering.

Evolution of Tanishq

30
 Titan camc into cxistcncc in July 1984, when the Tata Group joined hands with the
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 its 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 products 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 Dcsai, the Vicc- Chairman and Managing Director of Titan.

To changc its image from a watch manufacturer 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 units in 1996 to meet the domestic and international demand.
From the late 1990s, Titan's commitment to the jewellery business increased.

When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs
40,000 crorc was mostly unorganized, with around 3.5 lakh players. Before 1992, only the
Metal and Mineral Trading Corporation and the State Bank of India were allowed to import
gold. In 1992, as part of economic liberalization, the government abolished the Gold Control
Act of 1962, allowing free import of gold. In 1993, private companies were allowed to
enter the hitherto restricted gold and diamond mining industry. Foreign investors were
allowed to hold up to 50% equity in mining ventures.

Heritage

Flashback
Turning back the hands of time to pre-1980s, Tata Press conceived an idea to conquer the
Watch Industry. Initial negated pioneering efforts aside, perseverance won the day. Titan
Watches sprang into being with the signing of a joint venture of Tata Industries with the
Tamil Nadu Industrial Development Corporation (TIDCO) in June of 1984. From that point
on, it has been full steam ahead.

First Milestone
Titan commenced production end 1986 and hit the market in March 1987 with its brand

31
„Titan‟. The analogue electronic Quartz range met instant acclaim, appeasing a hungry watch-
starved consumer market. This spurred encouragement and manufacture extended to
bracelets, cases, electronic circuitry and step motors.

Along the way

Spanning 25-years of growth, the Titan Watch Project became Titan Watches, Titan
Industries and ultimately Titan Company Limited. Production kept an impressive pace,
topping the 15 million plus mark per year. Three years down the trail produced a dividend of
15% – today, 2012, sees a declaration of 175%!

Numerous technologies and sources came into play during this period. Progress was swift,
steady and stamped with characteristic Titan Company aplomb. This led to innumerable
achievements and accolades. Audaciously challenging the Swiss, Titan now is the world's
largest integrated own brand manufacturer of watches. A major brand player, Titan stakes
claim to 60% of the organized watch market, with over 150 million pieces sold across 32
countries collectively.

In successive events the 'World of Titan' exclusive showrooms mushroomed nation-wide,

currently totalling 367 plus. The main manufacture facility is situated at Hosur in Tamil Nadu
with assembly units in Dehradun, Pantnagar and Roorkee and an electronic sub assembly
plant in Goa in India.

Titan Company notably left its footprint in Europe in 1993; then came a major one in the
Middle East and the Asia-Pacific regions. Titan now happily ticks its way across over 30
countries around the globe.

A brief joint venture with the American brand, Timex, between 1992 and 1998, focusing on
market mass, prospered. The brand Timex jumped to 2nd place next to Titan, in popularity.
On dissolution of the partnership, Titan reclaimed market share by launching Sonata, an
absolute winner, followed by an astute array of wrist wear - Titan, Fastrack, and Xylys
brands, luxury watches and designer timescapes - a range of outdoor clocks - defining
spectacular landmarks in several cities. Pacing on, the Swiss and Japanese watch fraternity
were justifiably astounded, not only with the state-of-art Production facility established by
Titan, but also with its highly trained, dedicated, youthful workforce.
32
Endorsing the Tata spirit, Charles Correa, a world-renowned architect, was commissioned
and fashioned a complete modern township at Mathigiri in Tamil Nadu, India to
accommodate over 2000 Titanians, complete with an excellent school that doubles as a
learning facility for neighbouring district schools.

Venturing on...
Diversification accelerates progress. Titan‟s expansion plans in 1993 turned to jewellery,
with a brand launch „Tanishq‟ in 1996. Then a spate of new ventures followed suit, Fastrack
– the youth watch and accessories line in 2003; Precision Engineering in 2005, Goldplus the
standardized mass marketing of jewellery in 2006 and the Titan Eyewear Division in 2007 - a
project of prescription eyewear, complete with specialized outlets, catering to customers‟
every need.

Catering primarily to a country which views gold as a prime investment, believes that it is
auspicious, and finds it an irresistible adornment, Titan Company literally struck it rich by its
entry into the world of traditional and designer jewellery. The concept of entering the glitter
field, in order to forge a way out of a foreign exchange crunch of the early 1990s, appealed to
Titan Company considerably. And yet again, though early steps were far from expected, the
innovative Titan spirit came to the fore, turning adversaries into achievement, and how!!

Foreign Exchange being no consequence subsequently caused Titan Company to focus

exclusively on the home market. Tanishq offers a stunning world of exquisite, precious
designer ware through over 160 stores in 89 cities across the nation. Goldplus has a proud
market share of around 40% in the semi-urban and rural scenario, whilst still in its infancy.

These two ventures are a pride to India and to Titan Company, for they certainly keep value
conscious customers happy and contented.

Products

Titan Company, best known as India's pioneering manufacturer of quartz watches, has also
etched a niche for itself in some of the most competitive spaces in the fashion industry such

33
as jewellery and eyewear. Precision engineering is another area of specialization that
Titan Company is proud of.

Watches: Being the world's fifth largest integrated own brand watch manufacturer,
Titan Company has created and sold more than a 150 million pieces the world over.

With a production rate of over 15 million watches per annum and a customer base of over
135 million globally, Titan Company owns manufacturing and assembly operation centres in
Hosur in Tamil Nadu , Dehradun, Roorkee, Pantnagar in Uttaranchal and an Electronic
Circuit Boards (ECB) plant in Goa, all in India.

Capturing the important market segments and the changing fashion trends, Titan Company
has brought forth four core watch brands:

Titan which is designed for the mid-premium segment Fastrack which is crafted to fit the
trendy fashion space with a focus on the youth • Sonata which is created for the mass
market and has emerged as India‟s largest selling watch brand

Xylys which is fashioned for the premium market, aiming at the connoisseur and new-
age achiever

The Titan brand architecture comprises several sub-brands, each of which is a market
leader in its own space. Notable among them are: Titan Edge, Titan Raga, Nebula and
several other collections like Zoop, Orion, Purple, Obaku, Automatic, Tycoon, Bandhan,
Octane and the HTSE series. The Titan brand portfolio owns over 60% of the domestic
market share in the organized watch market.

Titan Company's pride possession, a world-class design studio for watches and
accessories, is the place where some of the most coveted creations have been
conceptualized.

Exclusive World of Titan and Fastrack showrooms and over 11,000 outlets in more than
2,500 cities in India make these much-sought-after watches available to the buyers. The

34
watches are also offered internationally in over 30 countries, with a special focus on the
Middle East and Asia Pacific regions.

Helios, India's multibrand watch retailer offers an unmatched range of the latest designs
across 30 international brands in addition to Titan brands. The after-sales service, a
benchmarked operation with a large network of exclusive service centres spread across the
country, is one of the operation units with one of the fastest turnaround time in the world.

Jewellery: Following the suit of time products, Tanishq has been India‟s largest, fastest
growing and most popular jewellery brand.

Tanishq offers a premium range of gold jewellery studded with diamonds and precious, semi-
precious stones in various hues in 18 kt and a wide range of plain gold jewellery in 22 kt pure
gold. Platinum jewellery also forms part of the product range. Gold Plus retails plain gold
jewellery offerings with designs specifically created for the semi urban and rural Indian
market and offers unique designs crafted with diamonds, American diamonds and other
precious stones. Zoya offers premium studded jewellery catering to the needs of the elite. The
enchanting jewellery patterns originate in the well-equipped exclusive jewellery design studio
of Titan Company.

Eye wear: Titan Eye+ offers a variety of differentiated products to the end consumer
consisting of frames, lenses, contact lenses and accessories. Frames are available in both
international brands (Levis, Esprit, Hugo Boss etc.) and in-house brands – Titan, Eye+ and
Dash. Customers are offered a unique browse-select-buy format where all products are
accessible, using world class equipment for zero-error eye testing by qualified optometrists
trained at Sankara Netralaya, a renowned eye hospital in South India and style consultants to
help buyers make the right choice of frames and lenses.

Precision Engineering: The division‟s products span precision engineering components &
sub-assemblies, machine building & automation solutions, tooling solutions and electronic
sub-assemblies. The division is ISO 9001:2000 and ISO 14001:2004 certified. Additionally,
the unit catering to the aerospace segment is AS 9100B certified and the unit catering to
automotive segment is TS 16949 certified. The unit has recently been selected for the

35
National Aerospace and Defence Contractors‟ Accreditation Programme for its non
destructive testing capabilities.

Vision & Mission

Our Vision:

We create elevating experiences for the people we touch and significantly impact the
world we work in

Our Mission:

We will do this through a pioneering spirit and a caring, value-driven culture that fosters
innovation, drives performance and ensures the highest global standards in everything we
do.

Our Values and Standards:

Total customer orientation

• Customers take precedence over all else, always.

Employee appreciation

• We value and respect Titanians and endeavour to fulfil their needs and aspirations.

Performance culture and teamwork

• At Titan Company, high performance is a way of life and is nurtured by teamwork.

Creativity and Innovation

• Driven by innovation and creativity, we focus on smarter approaches and newer

technologies.

Passion for excellence

• In all our pursuits, we ceaselessly strive for excellence.

Corporate Citizenship

• We ensure that a part of our resources is invested in environment and community

betterment.

Competitors
• Carbon

36
 In early 1991, the Bangalore based Pcakok Jewellery Pvt. Ltd., (Pcakok) was
incorporated and Mahcsh Rao (Rao) was appointed director. Pcakok realized that the Indian
consumer's relationship with gold jewellery would grow beyond an investment need towards
a lifestyle and personality statement. In 1996, within the Pcakok 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 vault to the dressing table and bring the selling of jewellery
out of heavily guarded jewellery stores. This was achieved by persuading a few lifestyle
stores to add branded jewellery to their vast array of products. Besides selling from lifestyle
stores, Carbon also sold its products as gift items over the internet. Like Tanishq, Carbon laid
emphasis on design.
Most of its designs were contributed by students at the National Institute of Fashion
Technology (NIFT) through the diploma programme which the company sponsored. In
addition, Pcakok's team of six designers, (headed by Rajcswari Iyer, an alumnus of a German
design school who had worked in the U.K., Germany and India) turned out around 180 to 200
styles in a year, with 75 designs per style. At any point in time, there arc 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 is made available at 'shop-in-shop' outlets in large lifestyle stores (such as Shoppers
Stop, Ebony, Globus, The BoB.Com (Hon.)y Store, Lifestyle and Taj Khazana) and some
premium boutiques (such as the Helvetica in Chcnnai). Carbon products were priced between
Rs. 2,750 and Rs. 20,000 per piece. While the cost of traditional jewellery was negotiable, the
cost of Carbon items was fixed and nationally uniform.Thc brand is available at 50 outlets in
23 cities.

• Gili
Gili launched a collcction of traditional Indian ornaments made of 18-carat gold. In
1999, the Gili Gold range was introduced. This range included rings, pendants, 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 lifestyle
and department stores across the country to increase accessibility among its target segment,
the 15 to 30 age group. Gili distributed its jewellery priced 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 collcction was promoted at college campuses
37
with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that
just pushing its product was not enough; it also had to customize its products for special

4 P's of Marketing PRODUCT

PRODUCT VARIETY
Tanishq today is India's most aspirational fine jewellery 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 product range.

Tanishq designs and manufactures jewellery that is breath- taking, contemporary and
yet has a tint of tradition. It produces 22 karat pure gold earrings that come in various shapes,
sizes and designs. Some earrings arc embedded with precious stones or colour gcmstoncs.
These jewellery sets arc overwhelming and could prove to be apt for occasions such as
marriage, festivities etc. Furthermore, they also make bangles, chains, nose pins, pendants,
finger rings, Mangal Sutras etc. They also producc products made from silver such as deity
idols etc. Recently, Tanishq has started producing diamond jewellery that arc affordable and
stunning. The diamond jewellery include collections such as: All Day Diamonds, Aria,
Dcwdrops, Tanishq Solo, Dancing Diamonds etc. These collections come with a certificate of
authenticity that states the karatagc, color and clarity of the diamond.

QUALITY
Consistency in delivering on their promise - Tanishq promises superior quality
jewellery 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 prccious/scmi- prccious stones in writing.
They claim and deliver the exact carats and weight that they promise. Impurity in gold and
not delivering what was promised is one of the main problems the consumers face when
going for gold purchase. 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 incidence of under karatagc (Bureau of Indian Standards).It maintains its
quality standards in all its products wherever they arc sold. This shows that they have a
resolute core purpose. This is what they will have to maintain even when they global. They
have the right range of products for the different markets across the globe. Only they have to
38
remember their differentiating factor. The differentiating factor for Tanishq will be the
experience and quality they will be giving the consumers when they come to the store.

DESIGN
Widely acknowledged as a design leader, Tanishq is known for its ability to develop
specialized design collections.
Each piece of jewellery is designed by a team of award winning designers. In fact,
Tanishq is the only jeweler to have a full- fledged design studio with one of the largest design
teams in the country. Every product at Tanishq is painstakingly crafted to perfection. Diligent
care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller
in the country.
Tanishq was recently adjudged the Most Admired Jewellery brand (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 49-to-5 jewellery', the
collcction is stylish and modern and is designed to suit all forms of attire, western and Indian,
casual and formal.

BRAND NAME
"Jewellery is one of the last great commodity frontiers in India; it has remained so
because this market is very fragmented, very unorganized. 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 ". - Harish Bhat, CEO, Tanishq.

Tanishq was established in 1995 and within ten years it has bccomc 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 with new innovative ideas. The surveys
showed that awareness of the brand was quite high. The company believes that young urban
women, with independent incomes, arc looking at branded national jewellers. The brand
believes that accretion to this segment is clearly in its favour due to the modern contemporary
image among women.

• SERVICES

39
 One of the company's most important initiatives was customer service enhancement.
Tanishq launched a direct consumer contact program and conducted surveys to monitor store
walk-ins and footfalls and percentage of repeat customers. The company also kept the entry-
level price as low as Rs 600 (for a pendant) and offered a range, which far exceeded that
offered by any other jeweler. All Tanishq outlets gave a 100% return guarantee on its brand
of jewellery and also exchanged other jewellery after deductions depending on purity. A
customer satisfaction measurement program was started with the help of Customer
Satisfaction Measurement Management (CSMM), an associate of IMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a quarterly basis.
This gave the company the benefit of benchmarking against local and international
players and also aided in improving repeat purchases. As a result, it was able to directly link
the remuneration of franchisees with customer satisfaction.
Since they have many stores across the country they give guarantee on their jewellery
and also offer to repair it free of cost anywhere across the country. They have excellent after
sales service and they have been committed in providing good and honest service.
They welcomes you to exchange your old gold jewellery for new designs. To ensure
you get the right valuation for your old jewellery, use scientific, reliable and transparent
processes including testing it with the Karat meter.

PROMOTION
The Tata Group has promoted Tanishq as a jewellery store brand, which competes
with close to three lakh traditional jewellers who dominate the domestic market. It has
launched new collections at a quicker rate than its competitors, and conducted marketing
promotions and fashion shows to enhance the shopping experience of consumers. Given the
diverse nature of Indian ethnicity, Titan made the designs more ethnic to satisfy the tastes of
all regions. Titan transposed designs by stocking Bengali designs in Delhi, Kcralitc designs in
Tamil Nadu and typical designs from Tamil Nadu in BoB.Com (Hon.)y in order to appeal to
a variety of people.
'Concept' stores, the first of which, costing Rs 10 crorc, opened in Kolkata . The idea
of such a store was to harmonize the 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 crorcs to Maruti
Udyog Ltd., to be given away as gifts to Maruti car owners. By 2001, the scheme accounted

40
for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group,
Whirlpool, TVS Group, Ccat and Liberty shoes. In early 2000, it made miniature gold cars
for Hyundai Motors to be given to select dealers.

Anuttara, Tanishq's cxclusivc consumer reward programme etc. Tanishq provides Gift
vouchers in various denominations for gifting your friends and family.
Tanishq, to set off competition, launched Jodhaa Akbar collection and managed to
get lot of marketing hype. The collcction is very pricey and suggested retail price is between
Rs 25,000 to Rs 15 Lakhs.

One of the company's most important initiatives was customer service enhancement.
Tanishq launched a direct consumer contact programme and conducted surveys to monitor
store walk-ins and footfalls and percentage of repeat customers. The company also kept the
entry-level price as low as Rs 600 (for a pendant) and offered a range, which far exceeded
that offered by any other jeweller. A customer satisfaction measurement program was started
with the help of Customer Satisfaction Measurement Management (CSMM), an associate of
IMRB. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis.

In 1999-2000 the communication and promotion budget was increased from Rs. 65
million to Rs 100 million in 2000-01. A majority of this was spent towards advertising, while
a portion was also earmarked for promotions tailored to match regional preferences. For
instance, in New Delhi, which was Tanishq's single largest market, substantial promotions
were carried out. The Rs 100 million was split into four parts, comprising national-level
spends (both electronic and print media), regional budgets, direct mail and research. For the
first time, Tanishq initiated a long-term media plan, aiming to give the brand a round-thc-ycar
presence and enhance awareness.
A customer survey revealed that despite its high-blitz ad campaign, many didn't know
what Tanishq was about, others found it too expensive and some felt that the product was not
for people like them .So, 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. The ploy worked and they had customers waiting for the store to open.

41
 Ad campaigns also started to list out the products that Tanishq had. Bracelets, rings,
chains, pendants were explicitly mentioned in each ad. A range starting at Rs 399 was
launchcd.Thc aim was to bring down the price barrier significantly. Collections for the
working women and a new set of contemporary designs were brought into the stores.
Aria, for seven stone diamond jewellery, Hoopla, focused on diamond studded hoops
and Collcction-G for lower priced gold jewellery with an interesting twist arc just a few lines
that have come out of the Tanishq's stable in the last three years.
One of Tanishq's more innovative ideas is to offer special schemes during various
festivals. Tanishq has also initiated a loyalty program called the Golden Harvest Savings
Scheme, which offers buyers the benefit of getting more jewellery than what they have paid
for. The scheme allows consumers to plan future purchases in advance and pay for them in
easy installments.
Exchange offer - change impure gold for pure 22 kt gold - attracted more people to
the stores. It is estimated 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 18-carat gold did not find any takers in 1997, Tanishq introduced 22-carat ornaments.
After hitting six countries in the last four years, Tanishq entered the $57-billion US jewellery
market with two exclusive stores, one in Chicago and the other in New Jersey, in the first
quarter of 2007-08.

PLACE
Tanishq jewellery is crafted in one of the world's most modem factories. The factory
complies with all labour and environmental standards. Located at Hosur, Tamil Nadu, the
135,000 sq. ft. factory is equipped with the latest and most modern machinery and equipment.
Tanishq rcachcd the ccntury mark as it unveiled its 100th store in Patna at Hathwa Market.
Having eB.Com (Hon.)rked on the retail journey a decade ago, Tanishq today is the largest
jewellery retailer in India. With a strong prcscncc in 70 citics across India, unmatched
collections and assured purity, Tanishq has quickly bccomc the first choice of discerning
customers.

Tanishq opened 30 retail stores during FY08, taking the tally to 130 stores. Currently,
the average store-size for Tanishq is 1,000-1,500 sq ft. The stores operate on the franchise
model.

42
Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand
for a world class shopping experience. As such Tanishq retail identity has evolved over the
years to offer large format and concept stores that rcflcct the brand's philosophy of being
"Revitaliser of Tradition".

Design and retail innovation have been the hallmark of Tanishq all these years.
Tanishq has constantly formulated an innovative product strategy in this journey in line with
the evolving consumer tastes.

Modern retail values and principles in the selling of branded jewellery in India arc
almost completely the handiwork of Tanishq. The brand has broken fresh ground in retailing
by creating exclusive outlets with hitherto unknown in-storc ambience and hospitality
touchstones.
Following more than 40% percent growth in operations last year, Tanishq will invest
extensively during 2008 in marketing and retail initiatives to further develop the market. In
addition, Tanishq will build new logistics centres and upgrade existing ones, laying a solid
foundation to meet future competition.
Besides catering to Indian consumers, Tanishq has successfully entered key export
markets such as the US, the UK, the Middle East, Singapore and Australia. This is testimony
to the brand's ability to craft products that meet the requirements of varied cultures and
sensibilities.
Tanishq's retail boutiques arc temples for the brand and arc used as a platform for
celebration, be it the launch of a new collcction, a new marketing promotion or a festival.
This gives Tanishq outlets a unique appeal and consumers an opportunity to heighten their
shopping experience.
Tanishq gave complete freedom to the retail outlets to pick up designs, which they
thought would sell in their stores. Almost all the outlets stocked the 'best selling' range of
designs, which did well across the country.
In fact, industry experts 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-
mctros and other towns where the company thought plain gold will be in more demand. It
was not a wcll-rcscarchcd move," says an industry expert.
It plans to open two pilot stores at Chicago and New Jersey with a retail format of
1,800-2,000 sq ft. Meanwhile, it plans to tap small cities by opening 15 Gold Plus outlets, its
43
jewellery store brand for semi-urban markets. Launched two years ago, Gold Plus clocked Rs
200 crorc revenues during FY08. Tanishq has entered the US markets. This is an amazing
achievement for Titan Industries," said V Govindraj, Vice President, Tanishq. "Retail is a
capital-intensive business. In America, having 1,000 stores is not unusual. Even for niche
retailing, 200-300 stores arc needed. But in India, although there arc several small scale
unorganized jewellery markets, Tanishq is the first and only jewellery brand to have
organized mass jewellery retail chains across the country. As our company expands, more
and more people will be able to share our mindset. Tanishq's retail strength goes beyond its
innovative identity and extensive reach. Tanishq has undertaken 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, Tanishq will invest extensively during 2008 in marketing and retail
initiatives to further develop the market. In addition, Tanishq will build new logistics centres
and upgrade existing ones, laying a solid foundation to meet future competition.
Add the world to this. After hitting six countries in the last four years, Tanishq 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 arc not looking at the NRI market only. We want to
understand the American consumer." He claims that Tanishq's market research team is
figuring out the market and a designer who can create new products for it.
Traditional jewellers have been rcbranding themselves and arc expanding in smaller
towns to widen reach. 'The emphasis for Tanishq will be on special collections, diamond
jewellery and bigger stores of about 4,500 sq ft," Vcnkataraman said.
Tanishq's team of in-housc designers camc out with about 3,500 designs based on
current trends and the feedback from stores. At least 10% of these designs were changcd
every quarter and fresh ones were added to the stock.

PRICING
We have very large collections of pendants, earrings and fingerings in this price 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 rcccnt, Colours - comprises
wearable everyday jewellery which has been designed for the urban working woman.
44
 The Tanishq Valentine's Day collcction includes pendants, earrings and finger rings
starting from Rs. 2,000 onwards. Daytime's collcction of all day diamonds, which starts at an
affordable Rs. 1,960. The collcction combines traditional motifs in sleek contemporary lines
with slight touches of black rhodium. The 'up to 25 per cent' off offer by Tanishq is a unique
opportunity. This attractive offer has been introduced to benefit the customers and provide
them with the best price and product options. Affordably priced from Rs 2,500/- onwards the
Tanishq range of diamond jewellery is the ideal accessory for the customcrs.This collcction is
crafted using a spccial process called electro-forming. The jewellery is targeted at customers
who arc looking for international designs, wcarability and value for money. The new
collcction starts from a price range of Rs6,000 onwards and available at all Tanishq boutiques
across the country. Tanishq offers gold and gem-set jewellery in over 6000 traditional,
western and fusion designs. The Tanishq retail chain currently includes 112 cxclusivc
boutiques in 75 citics, making it India's first and largest jewellery retail chain.
Ansoff s Model
Market Penetration (Present product-present market)
Currently Market Share of Tanishq is 2.9%.So Tanishq has a scope for increasing its market
share.
Provide EMI by tying up with banks.
Find new applications to current users: Increasing the versatility of the product in terms of
usage. For example, provision for using pendant as car- rings, finger rings and vice versa.
Market Development (Present Product- New Market)
1. Expand geographically: Opening new outlets in new cities and increasing the number of
outlets in the existing cities.
Diversification (New Product- New market)
1. Related: Gold and diamond studded buckles in belts and footwear.

BRAND POSITION
Tanishq has been projected as an impeachable mark of trust by raising the awareness
of the people about unethical practices in the jewellery business and then measuring the gold
purity by caratmctcr.
Tanishq also has been positioned as a branded jewellery of luxury rather than
commodity. It moves jewellery beyond investment to the fashion and adornment sector.

45
SEGMENTATION
Niche Marketing
After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized for
the Western markets and were introduced in India without 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 started targeting the mass marketing since 1997).
Psychographic Segmentation
Life Style: Tanishq has found that 40% of the Indian women arc 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 cthnicity, it would have to
satisfy the tastes of all regions. So, the designs became more cthnic. Titan also decided to
transpose designs by stocking Bengali designs in Delhi, Kcralitc designs in Tamil Nadu and
typical designs from Tamil Nadu in BoB.Com (Hon.)y in order to appeal to a variety of
people.

SWOT ANALYSIS

STRENGTH OPPORTUNITIES
Purity (karat meter) Global markets
Distribution network and Low cost jewellery
retailing store Customized jewellery
Award winning designs designs
Diversity in jewellery Concentrate on Gcn-X by
go ld/di amo nd/pl at i num having trendy jewellery
Competitive prices Expand retail stores
WEAKNESS THREATS
Capture Rs 70,000-crorc Competition
Escalated gold costs lower margins Lack of Skilled workers
Gold not seen as s source of

46
STRENGTH
Purity of the jewellery through karat meter is still the sign of total purity. Distribution
network and retailing store arc in place for the company with 130 stores countrywide. Mind
boggling/award winning designs have come for the company. Diversity in jewellery
gold/diamond/platinum enhances the product range of the company. We also have
competitive priccs for the entire product ranges as compared to the competitors.

WEAKNESSES
Capture Rs 70,000-crorc Indian jewellery market. Tanishq comprises a small share of
the overall Rs 70,000-crorc Indian jewellery market and hcncc it needs to increase its market
share in this huge industry. Escalated gold costs has caused lower margins is to push sales as
much as possible.

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 Gcn-X by having trendy jewellery. Expand 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 arc more concerned about
design and luxury.

THE MAKING OF A GREAT GLOBAL BRAND

Tanishq recognized that the real competition was not from the few other major
players but from the regional players in the highly fragmented industry. In order to compete
with the regional players, Tanishq introduced the concept of "consistency in delivering
promise". Also the new generation which used jewellery everyday preferred 18 carat modem
jcwclcry retaining the cthnicity.
Consistency in delivering on their promise

47
 Tanishq promises superior quality jewellery with purity in gold. They claim and
deliver the exact carats and weight that they promise. Impurity in gold and not delivering
what was promised is one of the main problems the consumers face when going for gold
purchase. Tanishq eliminated this and has built its brand in trust. Tanishq now stands for
quality and purity. They even have gold meters where one can check the purity of gold.

It is first and only jeweller who guarantees the purity of its gold jewellery and
certifies the quality of its diamonds and eolored gems in writing. Thus it has established itself
as a highly ethical player in a market that was rated as having the highest incidence of
undcrkaratagc (Bureau of Indian Standards).

Superior products and processes

Widely acknowledged as a design leader, Tanishq is known for its ability to develop
specialized design collections. Tanishq is the only jeweller that houses a full-fledged design
studio with a team of several international award winning Indian designers. Tanishq was
recently adjudged the Most Admired Jewellery brand (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. Tanishq jewellery is crafted in one of the world's most modem factories.
The factory complies with all labor and environmental standards. Locatcd at Hosur, Tamil
Nadu, the 1, 35,000 sq. ft. factory is equipped with the latest and most modern machinery and
equipment. Every product at Tanishq is painstakingly crafted to perfection. Diligent care and
quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the
country. Distinctive positioning and customer experience. Yet another aspect of Tanishq that
sets it apart is a whole new jewellery buying cxpcricncc offered by its exclusive retail
showrooms. Tanishq has not only developed a national retail chain with uniform and
transparent practices and policies but also maintained consistency of retailing standards
across all these showrooms on an ongoing basis. It has a distinctive positioning in India as it
is known for its high quality and jewellery with international standards. Also, since they have
many stores across the country they give guarantee on their jewellery and also offer to repair
it free of cost anywhere across the country.

An ability to stay relevant

Tanishq was established in 1995 and within ten years it has become the largest and most
desirable brand in the jewellery segment in India. They have constantly introduced new

48
offering to their consumers and have come up with new innovative ideas. They have
excellent after sales service and they have been committed in providing good and
honest service.
A compelling idea
The idea of having branded jewellery was a totally unique idea. Coupled with a promise of
purity and a unique experience was very compelling. It persuaded a lot of people especially
the people in the mctros and semi mctros to leave their traditional jewelers and go for
Tanishq.
There was always lack of trust among the consumers for their jewelers. Tanishq
removed that with a promise of purity. Hence what it did in India it can replicate across the
globe. Offer a totally new perspective to Jewellery buying especially when it comes to
exquisite oriental jewellery. Oriental Jewellery across the world is usually found in flea
markets or place like China Town or Indian Markets. Going into the main markets in the
Western world will give Tanishq the edge.

A resolute core purpose and supporting values

Tanishq maintains its quality standards in all its products wherever they arc sold. This
shows that they have a resolute core purpose. This is what they will have to maintain even
when they global. They have the right range of products for the different markets across the
globe. Only they have to remember their differentiating factor. The differentiating factor for
Tanishq will be the experience and quality they will be giving the consumer when s/hc comcs
to the store.

A central organizational principle

Tanishq has to translate what its brand signifies to the whole of their organizations.
They have done that exceptionally well in the Indian context. A visit to any
Tanishq outlet shows that. The people behind the counter arc polite and courteous. They
know that they arc there to deliver the promised exceptional services. The people at Tanishq
know what is required of them and hence this will prove bcncficial when Tanishq goes global
to maintain its global standards. Tanishq, as and when it decides to go global will make a
great global brand. As we can sec they have all the characteristics, which all the global brands
have, it can be said that Tanishq has all the potential to become a leading global brand.

49
 CHAPTER 4

RESEARCH METHODOLOGY

Research Design

The main purpose of this study is to know about customer preferences in buying Branded and
Unbranded Jewellery and find various factors affecting their satisfaction. Statistical research
Descriptive research also known as descriptive research is used here for studying customer
preferences and consumer buying characteristics. The main goal of this Descriptive research
is to describe the data and characteristics about the subject that is under study.

Area of the Study

The study is conducted on customers at Tanishq Jewellery Shops in the Lucknow City. The
sampling frame used in this study included the customers of TANISHQ and various
goldsmith outlets in Lucknow. Structured Questionnaires were being distributed to customers
on a random basis.

Research Approach

Customer Survey and Questionnaires Method

Customer Survey method is used for collecting the required data from customers at Jewellery
outlets.

We requested the respondents to fill the given questionnaire, by self after clearly explaining
the various questions in it.

Sample Size

The Size of the sample taken in this study is 110.

Period of Study

The study was done during August 2020 to September 2020 timeline.

Data Usage

For analysis and interpretation, only primary data is used. However for conclusion and
recommendations both primary and the secondary data along with the verbal knowledge and
information although obtained from respondents, though they are outside the parameters of
questionnaire were also included. The data collected from these sources were analyzed using
various tools like percentage analysis, chi-square test, cross table analysis method.

Research Instrument

50
A standard questionnaire is formulated for the collection of survey data from
various customers. The Questionnaire is designed in such a way that it would collect all the
needed information for the study and cover all the aspects defined in the objectives.

Tools

SPSS version 16 will be used to tabulate and analyze the valid responses. Initially, a
comprehensive data file was created. Then, variables and their labels were defined.
Statistical tools like Chi-Square and cross tabling were used for the analysis.

STATEMENT OF THE PROBLEM

A STUDY ON PRE & POST COVID EFFECTS ON TANISHQ SELLING.

OBJECTIVE OF THE STUDY

 To Study the performance of Tanishq selling.

 To study the Pre & Post covid effects on Tanishq selling
 To Study the Socio-economic background of respondent.
 To Study the Psycho-social impact on respondant consumer behavior turing Covid 19.

HYPOTHESIS

• Is there a Relation between Safety & Hygeine and AMOUNT OF JEWELLERY

PURCHASE?
• Is there a Relation between DISCOUNTS of BRANDED JEWELLERY and
AMOUNT of JEWELLERY PURCHASE?

LIMITATIONS

• Questionnaire research has its limitations. As such bias if any pertaining to the
subject be considered as a limitation of the study.
• The tests were administered at different points considering the availability of the
subjects, their mood states which might have had influenced their response pattern
on a particular scale/instrument. This was another limitation imposed on the
investigation inadvertently.
• Certain factors like purchasing behavior. Were beyond the control of the
investigation and were considered as limitations of the study.
• As the subject come from different socio-economic groups their purchase habits,

51
 life style, routine of study and play were different which were considered as
limitations of the study.
• No special motivation technique was used during the test, therefore the difference
that may have occurred in performance due to lack of motivation was recorded as
the limitation of the study.

52
 CHAPTER 5

ANALYSIS AND INTERPRETATION

General Profile of the Respondents

1. Sex

Sex Respondents
Male
29
Female
71

Respondents

Male
Female

53
2. Age

Age Respondents
19-30
56
31-40
26
>40
17

Respondents

19-30
31-40
>40

54
3. Income

Income Respondents
>5,00,000
43
<5,00,000
57

Respondents

>5,00,000
<5,00,000

55
 4. AVE YEARLY PURCHASE

AVE YEARLY PURCHASE Respondents

Below 50,000
55
50,001-2,50,000
31
>2,50,000
14

Respondents

Below 50,000
50,001-2,50,000
>2,50,000

Interpretation

From the above table, we infer that 29% of the total respondents are male and 71% are
female. On further classification according to age group, we find that of all the respondents
17% are 19-30 years old and below, 26% are of the age group 31-40 and 56% are above
40 years. On the basis of Yearly income, 43% are below the income of 5, 00,000,
57% are above the income level of Rs 5, 00,000. On the basis of Average Yearly Purchases,
55% spend below 50, 000, 31% spend between 50,001 – 2, 50, 000, and 14% spend above 2,
50,000 for Jewellery Shopping.

56
Customer Satisfaction Levels of Various Parameters of Service Provided at Tanishq
Retail Outlets

Table 2: Jewellery

Parameter HS S Nuetral DS HDS

Hygiene & safety provided by Outlets? 44 41 25 0 0
How well is the survive during covid 19 TANISHQ 46 35 29 0 0
JEWELLERY OUTLETS?
Quality of BRANDED JEWELLERY 41 32 37 0 0
Satisfied with Precaution followed byTanishq Outlets 29 20 27 34 0
Is shopping at BRANDED JEWELLERY STORES a pleasant 39 35 36 0 0
and
Pleasurable Experience?
Your Satisfaction that makes You Visit Only BRANDED 21 18 27 19 25
JEWELLERY
What is the purpose of visit to Jewellery Shop frequently? 44 20 29 14 3

Figure 1

50
45
40
35
30
25
20 HS
15
10 S
5
0 Nuetral
DS
HDS

57
Chi-Square Test

Is There a Relation between Covid 19 and AVERAGE YEARLY JEWELLERY

PURCHASE?

Table 3: Case Processing Summary

Cases
Valid Missing Total

Covid 19 N Percent N Percent N Percent

*AVGYEARLYPURCHASE 110 100.0% 0 .0% 110 100.0%

Table 4: Covid 19* AVGYEARLYPURCHASE Cross Tabulation

Count AVG YEARLY

PURCHASE
1 2 3 Total
INCOME 1 27 9 6 42
2 8 26 34 68
Total 35 35 40 110

CHI-Square

Table 5: Covid 19

Observed N Expected N Residual

1 42 55.0 -13.0
2 68 55.0 13.0
Total 110

58
 Table 6: AVG YEARLY PURCHASE

Observed N Expected N Residual

1 35 36.7 -1.7
2 35 36.7 -1.7
3 40 36.7 3.3
Total 110

Table 7: Test Statistics

INCOME AVG YEARLY

PURCHASE
Chi-Square 6.145a .455b
Df 1 2
Asymp. Sig. .013 .797
0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
55.0.
0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
36.7.
From the above SPSS calculation we infer that there is a significant relation between Covid
19 and AVERAGE YEARLY JEWELLERY PURCHASE.

59
Is there a Relation between Safety & Hygeine and AMOUNT OF JEWELLERY
PURCHASE?

Table 8: YEARLY PURCASE* QUALITY Cross Tabulation

Count QUALITY
1 2 3 Total
YEARLYPURCAS 9 16 10 35
E1
2 14 15 6 35
3 14 10 16 40
Total 37 41 32 110

CHI-Square

Table 9: YEARLY PURCASE

Observed N Expected N Residual

1 35 36.7 -1.7
2 35 36.7 -1.7
3 40 36.7 3.3
Total 110

Table 10: QUALITY

Observed Expected N Residual

N
1 37 36.7 .3
2 41 36.7 4.3
3 32 36.7 -4.7
Total 110

60
 Table 11: Test Statistics

YEARLY QUALIT
PURCASE Y
Chi-Square .455a 1.109a
Df 2 2
Asymp. Sig. .797 .574
0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
36.7.
From the above SPSS calculation we infer that there is a significant Relation between Safety
& Hygeine and AMOUNT OF JEWELLERY PURCHASE.

Is there a Relation between DISCOUNTS of BRANDED JEWELLERY and AMOUNT

of JEWELLERY PURCHASE?

Table 12: DISCOUNTS* PUCHASE AMOUNT Cross Tabulation

PUCHASE Total
AMOUNT
1 2 3
DISCOUNTS 15 6 8 29
1
2 8 7 5 20
3 5 12 10 27
4 7 10 17 34
Total 35 35 40 110

61
CHI-Square

Table 13: DISCOUNTS

Observed N Expected N Residual

1 29 27.5 1.5
2 20 27.5 -7.5
3 27 27.5 -.5
4 34 27.5 6.5
Total 110

Table 14: PUCHASE AMOUNT

Observed N Expected N Residual

1 35 36.7 -1.7
2 35 36.7 -1.7
3 40 36.7 3.3
Total 110

Table 15: Test Statistics

DISCOUNT PUCHASE
S AMOUNT
Chi- Square 3.673a .455b
df 3 2
Asymp. Sig. .299 .797
0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
27.5.
0 cells (.0%) have expected frequencies less than 5.The minimum expected cell frequency is
36.7.

62
From the above SPSS calculation we infer that there is a significant Relation between
DISCOUNTS OF BRANDED JEWELLERY and AMOUNT OF JEWELLERY
PURCHASE.

Is There a Relation between VARIETIES OF BRANDED JEWELLERY and

FAVOURITISM FOR ONLY BRANDED JEWELLERY?

Table 16: VARIETY* ONLY BRANDED Cross Tabulation

ONLY BRANDED Total

1 2 34 5
VARIETY 11 5 88 14 46
1
2 5 8 12 5 5 35
3 5 5 76 6 29
Total 21 18 27 19 25 110

CHI-Square

Table 17: VARIETY

Observed N Expected N Residual

1 46 36.7
2 35 36.7 9.3
3 29 36.7 -1.7
Total 110 -7.7

63
 Table 18: ONLYBRANDED

Observed N Expected N Residual

1 21 22.0 -1.0
2 18 22.0 -4.0
3 27 22.0 5.0
4 19 22.0 -3.0
5 25 22.0 3.0
Total 110

Table 19: Test Statistics

VARIETY ONLYBRANDE
D
Chi-Square 4.055a 2.727b
df 2 4
Asymp. Sig. .132 .604
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 36.7.
b. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 22.0.

From the above SPSS calculation we infer that there is a significant Relation between
VARIETIES OF BRANDED JEWELLERY and FAVOURITISM FOR ONLY BRANDED
JEWELLERY.

64
Is There a Relation between VARIETIES OF BRANDED JEWELLERY and AMOUNT
OF PURCHASED JEWELLERY?

Table 20: VARIETY* PUCHASE AMOUNT Cross Tabulation

PUCHASE Total
AMOUNT
1 2 3
VARIETY 1 16 14 16 46
2 9 11 15 35
3 10 10 9 29
Total 35 35 40 110

CHI-Square

Table 21: VARIETY

Observed N Expected N Residual

1 46 36.7 9.3
2 35 36.7 -1.7
3 29 36.7 -7.7
Total 110

Table 22: PUCHASE AMOUNT

Observed N Expected N Residual

1 35 -1.7
2 35 36.7 -1.7
3 40 36.7 3.3
Total 110

65
 Table 23: Test Statistics

VARIETY PUCHASE
AMOUNT
Chi-Square 4.055a .455a
df 2 2
Asymp. Sig. .132 .797

a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
36.7.

From the above SPSS calculation we infer that there is a significant Relation between
VARIETIES OF BRANDED JEWELLERY and AMOUNT OF PURCHASED JEWELLERY.

66
 CHAPTER 6
CONCLUSION

The word „Crisis‟ creates a gloomy scenario in most minds. The current pandemic is an example
of the unprecedented and unanticipated impact that crises can create. Crises make change
mandatory – systemic change, organisational change, infrastructural change, and above all
behavioural change. Research has shown that people are averse to change. Hence, most fear
crisis. Nevertheless, it is during crises that the mettle of a leader is amply assessed. It is during
crises that the strength of an organisation‟s culture is truly tested. And it is a crisis that an
organisation and its leadership can transform into an opportunity. Usually, the word
„opportunity‟ is assumed to mean more market share, more productivity, and more financial
success. It may or may not lead to any of them, but something totally unforeseen. In the case, the
crisis led to innovation, which brought astonishing success in the long-term.

In 1995, a decade into its existence, Titan Company (then Titan Industries) ventured into a sector
that was hitherto unexplored by the Tata Group – gold and branded jewellery. Inspired by the
western model where watches and jewellery are sold together by renowned international brands,
Titan launched its own jewellery brand called Tanishq („Tan‟ meaning body; „Ishq‟ meaning
love, both in Hindustani language) in 1995. With a market size of ₹50,000 crores, and second in
size only to the Indian food industry, it was a promising opportunity. India has consistently
ranked among the top countries in the world with maximum gold consumption at 800 to 975
metric tonnes per year. So, with much anticipation for another success story in the making, the
first Tanishq store was inaugurated in Chennai in 1996.

In the previous decade, Titan had achieved stupendous success in its watch-making business. Not
only had it replaced HMT as the market leader, but also succeeded in changing consumer
behaviour from using mechanical watches to the electronic quartz-based technology. It had
successfully transformed a watch from a utilitarian time-keeping device to a fashion accessory. It
aimed to do the same with its jewellery business.

Several Missteps

67
Titan attempted to change consumer behaviour by launching 18-karat gold and diamond
jewellery is delicate and largely western designs, instead of the 22-karat gold jewellery that was
popular in India for centuries. It believed that the less expensive and scratch-proof 18-karat
jewellery would enable consumers to buy more and larger pieces. The company leadership
believed that it would be able to transform the Indian customer and build an appetite for 18-karat
jewellery.

However, they missed a major point. Unlike the west, jewellery in India is not purchased just for
personal consumption. Gold has a central role in Indian culture. It is considered a store of value,
a symbol of wealth and status and a fundamental part of many rituals. It is purchased for gifting
the daughter during her wedding, and as a valuable investment for rainy days. In fact, Indians
buy as little as a gram of gold on holy days for good luck. It is considered auspicious in the
Hindu and Jain cultures. In fact, the ancient law-giver Manu decreed that gold ornaments should
be worn for important ceremonies and occasions. We see this practice pan-India, whether it is
Pongal, Onam and Ugadi in the south; Baisakhi and Karva Chauth in the north; Durga Puja in the
east; Gudi Padwa in the west; and during Diwali and Akshaya Tritiya across the country. For all
these reasons, the 22-karat „purer‟ version of gold was the preferred choice.

However, for nearly half a decade Titan espoused its understanding of the market and
consumers. In the process, it continued to bleed from its jewellery vertical. Cumulative losses
from Tanishq mounted to over ₹150 crores. In early-2002, when Titan engaged McKinsey &
Company to draw up a feasibility study about its business and brands, the key question that the
latter asked was, „Tell us why the jewellery business shouldn‟t be shut down?‟ BoB.Com
(Hon.)y House was consistently nudging Titan to reconsider their „adventure‟ into the jewellery
business. However, Chairman Ratan Tata left the final decision to Xerxes Desai, then Managing
Director of Titan.

Crisis leads to Product and Process Innovation

After five years of experimentation, Titan realised and accepted the Indian consumers‟ psyche.
To woo them to its stores, it launched 22-karat jewellery suited to Indian tastes. However, the
real gamechanger was the introduction of the Karatmeter, a spectroscopic device that used X-ray
to provide an accurate and non-destructive method of testing the purity of gold in its major retail

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stores. Any customer could use the services of the Karatmeter to test the quality of their family
jewellery, at no cost. Scores of urban women started pouring into Tanishq stores in leading metro
cities to test the quality of their gold ornaments. While this exposed them to the „Tanishq‟
experience, variety and service, it shocked most of them beyond measure. Nearly 60 per cent of
the jewellery tested was below the caratage their family jeweller had assured them. This led to a
considerable loss of faith in traditional family jewellers, a vital stakeholder in the Indian
jewellery ecosystem, which was until then considered undefeatable due to the relationship and
trust built over several generations. However, when the trust was broken due to methodical
evidence, there was a consequent increase in confidence in the scientific assurance provided by
Titan‟s Karatmeter. Much to the amazement of the leadership, it was a simple process innovation
that turned the tables in their favour for good.

The company capitalised on this change of heart. Over the next decade, it introduced a series of
product innovations that balanced tradition with modernity. Whether it was Mia – the sub-brand
of jewellery for working women, Rivah – the sub-brand of beautiful handcrafted wedding
jewellery for Indian brides, or Raga – the only women‟s brand of watches aesthetically designed
as a jewellery piece; Titan mastered the art of winning a woman‟s heart and draining the man‟s
wallet!

Under the leadership of the new Managing Director – Bhaskar Bhat, Titan‟s success Mantras in
its jewellery business were lower prices, Indian designs, superior craftsmanship, assurance of
purity, guaranteed quality, and proactive dealing with customers. The company not only
leveraged its expertise in the retail business but also kept design at the centre of its DNA. Within
a decade of the turnaround, Tanishq was creating over 14,000 new jewellery designs every year.
Their design capability was in full display in Bollywood blockbusters „Jodhaa Akbar‟ (2008) and
„Padmaavat‟ (2018). By 2019, Tanishq contributed 86 per cent of Titan‟s sales and became the
largest branded player in the Rs 2,50,000-crore Indian jewellery market. In the same year, riding
on the Tanishq success, Titan rose to become the second-largest Tata company by market
capitalization of over Rs 1,00,000 crores, second only to TCS.

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WEBSITES:-

 https://www.tanishq.co.in

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