This action might not be possible to undo. Are you sure you want to continue?
Submitted in partial fulfillment for
MASTER OF BUSINESS ADMIMISTRATION
Programmed of United college of engineering and research A-31, UPSIDC, Industrial Area, Naini, Allahabad - 211010
Project guide: Mrs. Priya Varma Prateek Gupta Roll no. 0901070021 MBA UCER
United college of engineering and research
Naini, Allahabad March, 2011
I hereby declare that the project entitled “Tanishq Brand Value Research” has been prepared by me during the academic year 2010-2011 under the guidance of my project guide Mrs. Priya Varma and is based on secondary data found by me in various departments, books, magazines and websites & Collected by me. A copy of this project has been submitted to the organization where the project was developed. This project is not submitted to any other organization or university or college and is the outcome of my work.
Prateek Gupta MBA(UCER)
ACKNOWLEDGEMENT It is most difficult, to express in words, our heartfelt gratitude, to the various persons who have more than helped us in our endeavor. The word that follow, are merely the formal expression, of my deep sense of indebtedness that is better treasured in my heart, then said in words.
To a greater extent, than any number of acknowledgements could express, this work would have been impossible, without the valuable help, thoughts and motivation of my guide Mrs. Priya Varma. Lastly, but not the least, I would like to acknowledge, all those people who were associated with my study directly or indirectly.
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction CONTENTS Objective and scope of Study Market Research For Business Planning & Growth Tanishq – An Introduction Locating Tanishq Product Line & The Collections Tanishq For You Tanishq Retailing Marketing Tanishq Marketing Strategy The Jewellery Market Some of Tanishqs Competitors Tanishq – Market Research Tanishq – The Turnaround Story Promotion.INDEX SR.NO. Advertising & Public Relation Tanishq In The News Globalization .
the researcher can manage to understand the consumer. and most of all an effective and rational research methodology. what he wants. This requires a well developed marketing plan. It is like a homework task that a good advertising/marketing/sales person would always carry out before (and after) implementing the said product's advertising/marketing strategy. aim to reveal consumers’ different perceptions of the product. and ultimately determining the position of the product in the consumer's mind. Research methodologies. speculating on. more or less. Ultimately. . and where it can improve. a good know-how of the prospective consumer. research in advertising and marketing is very crucial in understanding. in large part about the way it is advertised. and how he wants it. The researcher wants to know how effective the advertisement is on his listeners. when he wants it. By collecting data with the help of research methods. where the strategy falls short.INTRODUCTION As we see it. it can be said that the most important task of advertising/marketing research is to increase the sales of the product.
conducted or tailored specifically to that product. interviews or observation.In secondary research. competitors and the market. surveys. Disadvantages of secondary research are that it is often not specific to your area of research and the data used can be biased and is difficult to validate. field tests. . the company uses information compiled from other sources that appears applicable to a new or existing product. fine tune existing products and services. Market research is generally either primary or secondary.Objective and scope of Study Market research is the process of systematically gathering. recording and analyzing data and information about customers. A list of questions that can be answered through market research: • What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? Which needs are important? Are the needs being met by current products? • • . based on variables like age. gender. location and income level. launch a new product or service. Its uses include to help create a business plan. and expand into new markets. Primary market research involves testing such as focus groups. The advantages of secondary research are that it is relatively cheap and easily accessible. Market research can be used to determine which portion of the population will purchase a product/service.
Widely used bases for segmenting include geographic differences. need. personality differences. Market trends . For the growth and plannning of a business there are a few things that are important: Market information Market information is making known the prices of the different commodities in the market. and psychographic differences. Once that research is complete it can be used to determine how to market your specific product. Examples of market information questions are: • • • • Who are the customers? Where are they located and how can they be contacted? What quantity and quality do they want? When is the best time to sell? Market segmentation Market segmentation is the division of the market or population into subgroups with similar motivations. It can also involve discovering how they act. or believe.MARKET RESEARCH FOR BUSINESS PLANNING & GROWTH Market research is for discovering what people want. use of product differences. Information about the markets can be obtained in several different varieties and formats. the supply and the demand. demographic differences.
your customers.The upward or downward movements of a market. In this case. you will have to derive the figures from the number of potential customers or customer segments. products etc. But besides information about the target market you also need information about your competitor. during a period of time. The market size is more difficult to estimate if you are starting with something completely new. A few techniques are: • • • • • • Customer analysis Choice Modelling Competitor analysis Risk analysis Product research Advertising research .
there was no help coming in. meaning love. But with India going through a foreign exchange crisis. But things began to change globally around this time. from Tan. 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. manufacturing. 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. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition . again. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. marketing and retailing skills. primarily fuelled by the fabled Tata entrepreneurial spirit and partly forced by circumstance. and the West entered a protracted period of slow economic growth followed by recession.TANISHQ – AN INTRODUCTION The Tanishq saga began in the early 1990’s. offering further proof that the two industries are intrinsically linked. The splendid Titan watches success story was already up and running. meaning body and Ishq. The best known brand names in both Europe and America had watches and jewellery together. and also happened to be a very good fit with the watch business as articles of adornment. It also called for an organization that inspired trust and had high order design. and happened to need more foreign exchange to purchase the imported components and machines required to keep up with the burgeoning watch production. 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.
the premises on which the project was based had altered substantially. India's most respected and widely diversified business conglomerate. and Ernest Jones all rolled in one. This year marks a decade of successful innings for Tanishq. is perhaps the only major Tata brand with a strong appeal for women. most desirable and fastest growing jewelry brand in India. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition Initially. Very importantly. import licences were easy to obtain and the global demand-supply equation forjewellery had shifted in favour of buyers. Started in 1995. But things began to change globally around this time. It has created a revolution in the Indian jewellery trade and in jewellery buying behavior. Foreign currency was no longer an issue. With a retail sales of 1200 crore last year and gunning for 2000 crores this year. on the other hand. 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. Tanishq. Tiffany. The Indian market. and the West entered a protracted period of slow economic growth followed by recession. today. opened its doors to the world. again. Tanishq is the jewelry business group of Titan Industries Ltd . Tanishq has arrived in the Indian jewelry market. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. and was now flooded with foreign currency. the critics were silenced. By the time Tanishq established its manufacturing facility and entered the market. the criticism for Titan’s foray into jewellery was loud and often bitter. Tanishq.promoted by the TATA group. however. and continues to set new parameters of excellence for others to follow. Esprit.Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning a necklace of gold coins) and. Eventually. in the process bringing about a transformation in the manner in which jewellery is bought and sold in India. Tanishq is India's largest. It is a story of a successful Indian . from Tan. Tanishq has brought to the market a whole new standard of business ethics and product reliability. meaning body and Ishq. meaning love.
much unorganized. the 1.000 sq. . it has remained so because this market is very fragmented.Harish Bhat.enterprise. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. which has delivered value to its customers and shareholders in a complex category. select from the best jewelry collections available in the Indian market. Jewelry at Tanishq is crafted in one of the world's most modern factories. Exquisite platinum jewelry is also part of the product range.35. 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". ft. as well as. Tanishq. Jewellery is one of the last great commodity frontiers in India. Located at Hosur. . Tanishq also introduced professional retailing in the dis-organised Indian jewelry bazaar. without worrying about the purity of the jewelry they are buying. CEO. marked by its completely localized front end as well as back end. Every product at Tanishq is painstakingly crafted to perfection. Tanishq challenged the age-old jeweller's word with TATA's guaranteed purity. the only non destructive means to check the purity of gold. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Tamil Nadu. factory is equipped with the latest and most modern machinery and equipment. where women can shop with comfort and peace. with an exquisite range of gold jewelry studded with diamonds or coloured gems and a wide range of equally spectacular jewelry in 22Kt pure gold. Tanishq introduced innovations like Karatmeter. The factory complies with all labour and environmental standards. It exploded the market with facts about rampant impurity across India. It introduced technology-backed challenge in a category completely governed by individual trust. Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities.
Ambedkar Road. Today it has over 60 showrooms in 47 cities. Agra 2 0562-2856280. 202001 0571. J. Civil Line.co.6453101. Elite Chowk. The Mall.in . Civi Line. 02 email@example.com JHANSI Tanishq.co.co.3295437 firstname.lastname@example.org. 43/9.co. Turab Nagar.co. 7/144. 35/2. There are eleven branches in Uttar Pradesh ALLAHABAD Tanishq.273001 0551-2342435.2794155/4559355 btqgbd@titan. Jhansi 0510-2471255.2527402 btqagr@titan. Jankipuram.6453555 btqjha@titan. 1022. Rail road Aligarh.in ALIGARH Tanishq. Ground Floor.K Motors.in AGRA Tanishq. Sanjay Place. Allahabad-211001 0532-2260085. Only eleven of these are owned by the company. Ghaziabad 0120 . Cross Road.2343830 email@example.com GORAKHPUR Tanishq. Gorakhpur .86.LOCATING TANISHQ Tanishq had its first showroom in Chennai in 1996.M. Bank Road.in GHAZIABAD Tanishq. G4B4. NanigRam Swarannalyay. The rest are run by franchisees. Sardar Patel Marg.
Viram Khand. 0120 . 1/8. Rath Yatra Crossing 0542-2226744.co.in VARANASI .6485522 firstname.lastname@example.org email@example.com. SECTOR . 13-16.UTTAR PRADESH. Kuber Complex. Opp-Shophiya Market.NOIDA . Pin-208001 0512-2302500.in MEERUT Tanishq.G-49.201 301.6553450 firstname.lastname@example.org LUCKNOW GOMTI NAGAR Titan.co. Saharanpur 0132-6450160. Abu Plaza.co. Gomti Nagar.KANPUR -BIRHANA ROAD Tanishq.4007630 btqtgn@titan. Birhana Road Kanpur.co.Court Road.in SAHARANPUR Tanishq.in . Meerut 0121-2657839-40/6547840 email@example.com firstname.lastname@example.org. Shop No-1. Lucknow 0522-2395220. Patrakarpuram Chorha. Abu Lane.in NOIDA TANISHQ.KUBER Tanishq.co. 24/66.
Tanishq propagates ethical practices not only by assuring the customer purity and selling policies. it is important that you make an educated decision. Cut and crafted with utmost care. to enable you to know exactly what you are paying for. However. stating the caratage. there is a lot to choose from at Tanishq. Tanishq Gold From the traditional harams. colour and clarity of the stone. bracelets and rings. When it comes to diamonds at Tanishq you will be spoilt for choice from many collections we have to offer. Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. In India Gold has always been associated with security and is the most valuable form of investment. Tanishq diamonds come with a certificate of authenticity. As with any significant purchase. No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these precious stones into breathtaking masterpieces. it has been observed that consumer is an easy target to several malpractices like under karatage. mangalsutras and thalis to the more fashionable earrings. each unique and splendid in design.PRODUCT LINE & THE COLLECTIONS PRODUCT LINE: Tanishq Diamonds The sparkle of diamonds has always attracted the human eye. chains. but also fair policies to the karigars who craft the jewelry . under valuation of the gold sold and unfair buy back policies due to the lack of awareness about these issues.
Rare Platinum is rare. we cater to every occasion. men's wear.Tanishq's designs in Pure 22k gold are not only unique. such as the Kohinoor diamond. At Tanishq. which gets its white colour due to palladium or nickel. All precious metals can scratch. . the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost. platinum jewelry does not fade or tarnish and keeps its looks for a lifetime. This helps to reflect the true radiance of diamonds. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki. teen's collection and regional specific designs. 9 to 5 for the working woman and high fashion. Platinum is a metallic element while White Gold is a Gold alloy. the coveted treasure of discerning individuals. Some of the world's most famous gems are set in platinum. Eternal Platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does not wear away and holds precious stones firmly and securely. Platinum and White Gold are distinctly different materials and must not be confused. We ensure that we have something for everyone with our baby range. However. Platinum's rarity makes it exclusive and distinctive . part of the British crown jewels. Because it is generally 95% pure (18 karat gold is 75% pure). Pure Platinum's purity endows it with a brilliant white luster. There is very little platinum on this earth and it is found in very few places around the world. and platinum is no exception. from the stunning Aarka collections to the exclusive Nakashi work. crafting and stone setting with stringent quality standards at every point. This exquisite metal is 30 times rarer than gold. Tanishq Platinum Metal at its best. expressing the wearer's individuality but each piece is subject to the intricate process of design.a celebration of your individuality.
beautiful. and the perfect host for diamonds. rare. classic. The price may be higher than a similar item in gold but platinum is pure. luxurious. precious qualities that make it worth paying that little bit extra for. .Tanishq's Platinum represents excellent value for money. enduring.
a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience. Cut and crafted with utmost care the diamond collection renders each piece eternal. .THE COLLECTIONS: The Diamond Collection No gemstone expresses human emotions more powerfully than a diamond After all.
The Wedding Collection
The bride blushes; Everyone around smiles; The shenai announces festivity; The priests chant auspicious promises; She walks demurely; A vision of beauty; Her jewels are exquisite; Crafted by the best in the land; As pure as the blessings bestowed on her.
The Zoya Collection
Intricacy coupled with the simplicity; The magnificence of history interwoven with linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos; oriental art embellished with occidental architecture; nature's bounty matched with man's ingenuity.
The Fashion Earring Collection
The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in tune with the raging popularity that earrings currently enjoy, the Tanishq design team has created the Fashion earring collection, inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate Stiletto designs
The Kundan and Polki Collection
each crafted by a different set of highly skilled karigars.Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages. Tanishq ensures the karatage and net wt of the product. However. Tanishq as a revitaliser of tradition brings to life techniques and motifs of the period through our exquisite collections of Kundan and Polki (uncut diamonds). The Colours of Royalty Collection . It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many stages.
fashion.Colors of Royalty a range of exquisite studded jewelry. drapes and patterns of the Victorian period. where the 25 finalists wore it. The Colors of Royalty is a line of exclusive gems and stone studded jewelry that reflects the grandeur of India's rich past represented through the varied meanings associated with colors in our lives The Moham Collection . Tanishq has incorporated the timelessness of these styles into exquisite jewelry designs to present a collection where fashion and tradition converge. reminiscent of the magical Victorian era. The collection is inspired by the classic design essence and sensibilities found in the architecture. This exclusive collection was launched at the Ponds Femina Miss India 2006. This line of precious stones and diamond jewelry in 18k from Tanishq comprises more than 200 pieces and is by far the largest studded collection launched by us. design.
Consumer survey indicates that women attach great inspirational value to rubies. India offers great potential for the Moham collection where Ruby studded jewelry enjoys great popularity and acceptance.It is a must have for a Indian women. second only to diamonds. passion and have been the most coveted gemstone for many years. rooted in her tradition.This range attempts to strike a balance between convention and fashion by creating designs suitable for the progressive Indian woman. Rubies have been associated with prosperity. This launch reiterates Tanishq's focus on catering to region specific tastes and preferences.The collection comprises designs. This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. . motifs inspired by nature that have been beautifully crafted to make them the most desirable possession this season Moham is a range of exclusive ruby studded jewelry that embodies the auspiciousness the color red has in our lives.
The Aria Collection Aria is a collection of variety of everyday jewellery which depict various moods and feelings: Mysteries of love Mysteries of passion Mysteries of envy Bewitching Fascinating Enchanting Hypnotizing Sensuous Captivating .
Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head. Inspired by interplanetary movements and colors of flora and fauna. The large red stone. round brilliant cuts. unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry. . a story of their "ORIGIN". The inspiration behind each crown is distinct and personifies the spirit of the title. is the symbolic and stylised 'teeka'. Femina Miss India 2007. Miss Universe: This crown has the perfect cosmic blend of elements. each of these crowns convey a story. India's most innovative jewelry brand. pears and specially cut colored crystals. specially crafted for India's leading beauty pageant.Exquisite crowns and jewelry Tanishq.the Indian touch to the contemporary styling. Crafted with painstaking detail. princess. these tiaras are a stunning combination of trillions. Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-changing never-changing" Indian woman. very like the universe itself. baguettes.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' . set slightly on the side.
is an ode to the ecstatic beauty and supreme power behind every woman. rhythm and symmetry of classic Indian motifs in an unconventional synthesis. The jewelry crafted beautifully with interspersion of diamonds and colored stones. balance. Based on the fabulous colours and movement of the peacock and its feathers. sizes and colors are sprinkled amongst diamonds to create a symphony that enhances the look of the stones and adds a dash of color to conventional designs. . And of course the vivid rectangular blue stone that expresses the teeka of victory. set slightly on the side. very like the universe itself. and sets off the varying hues of the sea on the rest of the crown.Miss Universe: This crown has the perfect cosmic blend of elements. The large red stone. These beautiful and vibrant gemstones in different shapes. Tanishq has translated the timelessness of these designs to a modern context and brought to life a collection where fashion. sitting snugly on the forehead of the wearer. is the symbolic and stylised 'teeka'. Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the base of the crown. this stunning piece is an intriguing study in harmony and contrast. Miss Earth: This crown derives its inspiration from the essence of natureher flora and fauna. design and tradition blend perfectly. The contemporary styling has been brought to life with sensuous curves.
Exchange of gold and diamonds etc. There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings Scheme. How much money must one invest to enroll in the Savings Scheme? You need to invest only Rs.You can choose from two convenient savings scheme options. it’s the experience that matters.TANISHQ FOR YOU At Tanishq its not just the products. Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget. Golden Harvest Saving Scheme Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes.500/. In addition.per month to enroll.500/. that enables to save each month with Tanishq and plan for wedding jewelry purchases. You could also deposit a larger sum. Tanishq not only has an exquisite range of designs to meet all your requirements we also offer the benefit of any modification or customization on products. as long as they are in multiples of Rs. Gift Voucher purchase. whereas savings at home could easily get spent. BONUS: . Your monthly installments are safe with us. This scheme provides you with much better returns than other saving options like bank deposits or post office savings schemes.an Annual Plan (12 month installments) and an Extended Plan (18 month installments). We make sure that we give you the premium quality of not only product but service as well.
• • 60% of monthly installment in Annual Plan 130% of monthly installment in “Extended Plan” At the end of the scheme period. a single gold rate is maintained for buying or selling gold jewelry. When you exchange any other bank’s gold coin with jewelry there is a 4% deduction on value. 8% of the value is deducted for costs involved with testing. When you exchange any Tanishq gold coin with jewelry. pick up Tanishq jewelry of your choice worth the amount deposited plus the BONUS Installment Amount (Rs) 500 1000 1500 2000 2500 3000 4000 5000 Bonus for 12 months scheme 300 600 900 1200 1500 1800 2400 3000 Bonus for 18 months scheme 650 1300 1950 2600 3250 3900 5200 6500 Exchange Policy in Tanishq Exchange your old jewelry for new with Tanishq Most retailers have a differential buy back or different rates for selling and buying gold jewelry. At Tanishq. This deduction is made for handling and transportation costs and for refining the metal received on exchange How are Diamonds exchanged in the market? How are diamonds exchanged at Tanishq? . you get the benefit of the current gold rate and full value exchange without deduction. refining and taxes for the jewelry given by the customer.
These are available at all Tanishq showrooms across India and are also redeemable across the country. which is the most scientific measure of purity in the world. 10001/. Gift vouchers are available in the following denomination Rs. Playing a significant role in this is the Karat meter. 2501/-. At Tanishq. It uses X-rays to give an exact reading of the purity of gold in just three minutes. thus giving you the benefit of any appreciation that would have taken place in the price of gold or diamonds Gift Vouchers Gift Vouchers make the perfect gift for friends and family.. 25001/. when you exchange diamond jewelry purchased from us it is exchanged for its current value.So now you no longer need to worry about gifting your loved one. 5001/.Most jewelers exchange jewelry returned to them at the purchase price hence any appreciation in the value of gold and diamonds are not accounted for. Rs. Rs. giving the .and Rs. something of her choice! Purity Checks Purity checks allow lovers of the yellow metal to test the purity of the gold they already own.
Anuttara You can also become the member of Tanishqs loyalty programme Anuttara and avail of various discounts and priveleges.consumer an unmatched benefit when buying or selling gold. X-ray analysis has been adopted by international agencies as well as by BIS in India as part of the certification process used to Hallmark Gold. . non-destructive means of testing the purity of gold. Due to its excellent precision. It is in fact the most scientifically proven.
Amid the keen competition in the Indian jewellery market. a management model of excellence and. This success of Tanishq is a result of an exclusive blend of exquisite designs. Tanishq will invest extensively during 2008 in marketing and retail initiatives to . Tanishq has also endeavored to be part of every occasion in an Indian woman’s life through festive promotions. C K Venkatraman. In just over a decade Tanishq has achieved several milestones and today is the largest jewelry brand in the country with a turnover of Rs. local sourcing strategy. COO. both company owned and franchisee outlets. 1250 crores in the last fiscal. Tanishq’s exclusive consumer reward programme etc. 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." Tanishq’s retail strength goes beyond its innovative identity and extensive reach. only the strong player can emerge victorious. highly focused communication strategy and innovative retail strategy. Tanishq has constantly formulated an innovative product strategy this journey in line with the evolving consumer tastes.TANISHQ RETAILING Tanishq ventured into jewellery retailing in 1996 through exclusive stores. Tanishq. Tanishq Design Studio has created exquisite and varied collections like Fashion earrings. market-leading brand position. As such Tanishq retail identity has evolved over the years to offer large format and concept stores that reflect the brand’s philosophy of being “Revitaliser of Tradition”. said "We have been able to capitalise on the trends of the local jewellery markets by building on our solid financial strength. wide network. a philosophy of customer care. high-end Zoya collection among others aimed at distinctive consumer segments. Following more than 40% percent growth in operations last year. Similarly Tanishq has undertaken several unique retail initiatives keeping in mind the customer demand for a world class shopping experience. Commenting on Tanishq’s success story. a concept unique to branded jewellery segment at that time. trust and reliability. In the future. innovation. innovation have been the hallmark of Tanishq all these years. the key to building stronger competitiveness will lie in enhancing network coverage. most importantly. Mr. Everydays. brand equity and logistics. customer contact programmes as well as through Anuttara.
more and more people will be able to share our mindset. Brand Tanishq is for every Indian woman. The offerings are in tune with fashion and yet do not lose touch with tradition. It conveys a feeling of self-confidence and individualism that characterizes the Indian woman. Tanishq will build new logistics centres and upgrade existing ones. As our company expands. it is at all times keyed-in to their ever-changing demands. moods and tastes. In addition. laying a solid foundation to meet future competition Tanishq is the first and only jewellery brand to have organized mass jewellery retail chains across the country.further develop the market.” .
South Extension Delhi. The concept stores will take Tanishq closer to making it the complete jewelry brand catering to varying consumer needs and tastes across all consumer segments and also provide customers a unique and innovative buying experience. Kormangala Bangalore and Bund Garden Pune . Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept stores across the country. .Tanishq the "Revitaliser of Tradition" Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata. The stores have a contemporary feel while retaining the flavor of the past. The introduction of the idea of a concept store catapults Tanishq's unique brand identity in the retail space and takes jewelry retailing in India to a new level. The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept stores. These stores reflect the new retail identity of Tanishq the 'Revitaliser of Tradition' and combine the grandeur of the past with the reality of the present without losing its inherent character and appeal. Traditional craftsmen were used to create a period ambience so that the store replicates the authentic period look with its stunning sand stone arches and special motifs inspired by the inlay work of the Taj Mahal for the North and East stores and the Chettinad influences for the South stores.
PLACE PRODUCT PROMOTION PRICE (COST) (DISTRIBUTION) Features Location Publicity List Price Optional Services Frequency of Service Sales Promotion Discounts Product Quality Transportation Personal Selling Credit Terms Staff Quality Distributors Advertising Inclusive/Not Style Inventory Mailing List Remoteness Brand Name Packaging Guarantees TANISHQ MARKETING STRATEGY When Titan launched Tanishq in 1995.5 lakh players.MARKETING Marketing Equals the Four Ps Part of marketing is identifying the mix of "Ps" that makes your service unique. with around 3. . was mostly unorganized. • Choose the position that is most valued by the consumer. Tanishq has excelled in 4 P’s of marketing and hence it is the top brand in India. This is also called your marketing mix.000 crore. The next step is to shape your marketing mix and position its components to create a unique identity for your business that attracts and retains customers. the jewellery industry in India valued at Rs 40. Your market position is one or more selected benefits or features that make your operation unique and different. The following steps will help you define your marketing mix: • Identify your target market. • Assess whether you have any advantages over your competition in delivering the desired service. • Determine what the target consumer desires.
given the diverse nature of Indian ethnicity. With its original focus on exports. only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. Other well known domestic players included Tribhovandas Bhimji Zaveri. Tanishq introduced 22-carat ornaments. Formal consumer surveys showed that though brand awareness was quite high. In 1992. Among the foreign players who entered the market were Cartiers. The critical success factors in the business were quality. Titan realized that there was a huge untapped market for branded jewellery in India. started selling 18carat gold jewellery under the brand name of Gili. Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Many potential customers thought the products were over priced and associated the brand only with the rich. private companies were allowed to enter the hitherto restricted gold and diamond mining industry. In the 1990s. Chandra. and good after-sales service. Mehrason's and P. Hence. it would have to satisfy the tastes of all regions. a number of brands entered the Indian jewellery market. Since the European designs in 18-carat gold did not find any takers in 1997. Customer surveys revealed that gold jewellery was not bought so much for design as for value.India was the second largest consumer of gold in the world after USA. Gitanjali Jewels. the government abolished the Gold Control Act of 1962. allowing free import of gold. Tanishq faced several problems. Before 1992. In 1995. Titan also observed that the changing lifestyles demanded lighter and trendier jewellery. Foreign investors were allowed to hold up to 50% equity in mining ventures. launched its 22-carat gold and diamond jewellery in 1997. Titan decided to change its strategy on two fronts: Value proposition Retailing. the designs became more ethnic. De Beers and Ashton Mining. Su-Raj (India) Ltd. C. After its launch. it suffered from several negative perceptions. Titan realized that. fashionable design. Mumbai based jewellery exporter. So. Tiffany. In 1993. Titan also decided to do away with the shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998. as part of economic liberalization. .
Titan also decided to transpose designs by stocking Bengali designs in Delhi. 20 crores to Maruti Udyog Ltd. which it had ignored for long. it made miniature gold cars for Hyundai Motors to be given to select dealers. Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. Tanishq delivered gold coins worth Rs. In 1998. to be given away as gifts to Maruti car owners.. the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. Worldwide. In 1999. In early 2000. Tanishq entered the studded jewellery segment. The same year. making this sector integral to the economy and one of the fastest growing industries in the country. say it in gold'. Titan also tapped institutional customers also. it launched the corporate gold gift scheme .'When you want to say thank you. The Tanishq strategy for the coming couple of years relies on two things — increasing penetration in the domestic markets and going abroad in order to diversify its revenue portfolio. In . THE JEWELLERY MARKET Jewellery play a significant role in Indian customs and traditions.
Oyzterbay. However. and some of them even launched their in-house brands. The Gold Rush In the late 1990s. 400 billion per annum jewellery market in 2002). it accounts for nearly 20 per cent of total Indian exports. 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. Given the opportunities the branded jewellery market offered. Traditional jewellers also began to bring out lightweight jewellery. the share of branded jewellery in the total jewellery market was still small (about Rs. jewellery was being prized for its aesthetic appeal. Gili and Carbon opened outlets in various parts of the country. In other words. though growing at a pace of 20 to 30 percent annually. Branded players such as Tanishq. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. The Indian market is laden with gold jewellery of varying karatage. the number of gold retailers in the country increased sharply. which has seen huge appreciation in value terms in recent times. Moreover. Consequently.3 million people directly and indirectly.India. the focus seemed to have shifted from content to design. Trendy. Instead of being regarded as only an investment option. the Indian jewellery market witnessed a shift in consumer perceptions of jewellery. affordable and lightweight jewellery soon gained familiarity. the branded jewellery players tried to change the mindset of the people and woo customers with attractive designs at affordable prices. consumers trusted only their family jewellers when buying jewellery. It provides employment to 1. 10 billion of the Rs. Gold Jewellery Market in India .
According to a survey done by the Bureau of Indian Standards (BIS). mostly family-owned. The late 1990s saw a number of branded jewellery players entering the Indian market.000 workshops supplying over 350. The bulk of the jewellery purchased in India was designed in the traditional Indian style. most gold jewellery advertised in India as 22-carat was of a lesser quality. The abolition of the Gold Control Act in 1992. In the 1990s. gold and diamond mining were opened up for private investors and foreign investors were allowed to own half the equity in mining ventures. In 2001. . Titan sold gold jewellery under the brand name Tanishq. while Gitanjali Jewels. India had the highest demand for gold in the world. the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act. Jewellery was fabricated mainly in 18. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market. sold 18-carat gold jewellery under the brand name Gili. only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold. under-caratage was prevalent. These measures led to the entry of foreign players like DeBeers.' This led to a highly fragmented and unorganized jewellery market with an estimated 100. Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22-carat gold jewellery. In 1993. 855 tons were consumed a year. 22 and 24-carat gold. In 1997. single shop operations. allowed large export houses to import gold freely.Before the liberalization of the Indian economy in 1991. Tiffany and Cartiers into the Indian market. As Hallmarking was not very common in India.000 retailers. a Mumbai-based jewellery exporter. overseas banks and bullion suppliers were also allowed to import gold into India. 95% of which was used for jewellery.
the average Indian bought jewellery for investment rather than for adornment. Carbon and Tribhovandas Bhimji Zaveri (TBZ). Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd. launched its own range of studded 18carat jewellery. Oyzterbay. which marketed the Tiffany range of products in India. launched its collection of diamond and 22 -carat gold jewellery in 1997. Gold Jewellery Becomes Fashion Accessory Till the early 1990s. Pranda Su-Raj (India) Ltd. Jewellery made of 18-karat gold was not favored . Beautiful. The Mumbai-based group.. Cartiers entered India in 1997 in a franchise agreement with Ravissant. Dagina.Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company.
who regarded jewellery as an accessory and not an investment. and to identify new trends and opportunities. In addition. In the late 1990s and early 2000s. 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. with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT). the local jeweller catered to the local taste for traditional jewellery. • The consumer wanted a wider selection at a single convenient location and expected an international shopping experience. The new millennium witnessed a definite change in consumer preferences. especially from consumers in the 16 to 25 age group. motivations and aspirations of consumers in the jewellery market." In October 2002. CEO of Trendsmith. "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. • The younger generation was looking at trendy. The buyer had implicit faith in his jeweller. since the late 1990s. Additionally. According to Samrat Zaveri. A jeweller or goldsmith in a local area had a fixed and loyal clientele. All these led to the proliferation of branded jewellery players. Confidence in the local jeweller was the hallmark of the gold jewellery trade in India.as it was considered a poor investment. the growing number of manufacturers needed a retailing platform with global and national reach. a wide range of new designs became available. However. contemporary jewellery and clearly avoiding heavy. • The Indian consumer was willing to experiment with new designs. traditional gold jewellery. . There was a rise in demand for lightweight jewellery. there was a shift in consumer tastes: women were increasingly opting for fashionable and lightweight jewellery instead of traditional chunky jewellery. The focus had shifted from content to design. Trendsmith conducted a survey to understand the shifting needs.
Said Kurian. To stay ahead of competition from local jewellers. lacked branding. Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers.Strategies for Wooing Customers In the late 1990s. and allowed many unethical practices to flourish."13 One way to create differentiation was through design. The emphasis had to be on design because local jewellers could offer to design any pattern according to the customer's specifications. trust takes care of lifelong loyalty. Chief Operating Officer of Tanishq. the challenges were many. it introduced caratmeters which showed the purity of gold. Tanishq worked hard on a twopronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase. According to Kurian. Tanishq decided to focus on quality control.Tanishq ."12 The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. the first part of the strategy was "to provide a point of differentiation in a highly commoditized category – which is the whole point of branding. In 1999. Tanishq's strategy was to create differentiation and build trust. The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. On the basis of this feedback. Tanishq formulated a strategy for luring people away from traditional neighborhood jewellers. . players in the branded gold jewellery market formulated strategies for wooing customers. For a national brand a generic design concept with regional variations had to be evolved. As the jewellery market was highly fragmented." To increase its marketshare. According to Kurian. each showroom could select the designs it would carry. For this. "We are changing the attitudes of customers from blind trust to informed trust. "If differentiation plays the role of primary attraction. According to Jacob Kurian (Kurian).
Besides the major brands. rings and chains in 22 karat gold with prices starting at Rs 1. bangles. the best returns on investment came from small towns. Real estate was less expensive in the small towns than in large urban centres. only a few of them experimented with the pink and white forms of gold. In November 2002. but small town markets as well. branded players require focused advertising and astute salesmanship to compete with traditional jewellers.' The collection featured neckwear. This is going to add to the competition in the branded jewellery market. According to Kurian. Besides. All That Glitters is Not Gold Branded jewellery players will continue to face lot of competition from local jewellers. In order to gain marketshare. Tanishq focused not only on urban markets. It also launched Lightweight Diamonds. earrings. branded players must also find some way to differentiate themselves. which appear to have a good future in the Indian jewellery market . Some of the players also used diamonds and platinum. with prices starting at Rs 3. Tanishq introduced a new collection of jewellery called 'Lightweights.100. Most of the branded jewellery players in India focused on yellow gold. Tanishq's USP was the purity of its gold. Oyzterbay. competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. Accordingly. affordability and quality will be a key element in sustaining a brand. 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. In addition.Tanishq.In fact. Carbon. Gili and Trendsmith.several regional players have opened branches to leverage the trust and reputation that they have built up over the years. While the success of a particular brand will depend on differentiation.000. the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. To compete with traditional players.
SOME OF TANISHQS COMPETITORS Asmi .
Mandira Bedi & Perizad. was launched. Asmi caters to the women of substance & satisfies her mind for rewards recognition. An Asmi woman is closely identifies with free-spirited. Nirvana diamonds are targeting at fashion conscious. Since then. . Nakshatra Diamonds The world renowned Nakshatra diamonds were launched in 2000. (DTC).Asmi. All these women epitomize the different strengths." Elegant and graceful Nakshatra diamonds are the epitome of passion. one of the leading diamond brands of the country. goal-oriented & with an inner fire. The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. In 2002 by The Diamond Trading Company Ltd. Gili Gili was launched in 1994. As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers. attitude and independence. The brand has been endorsed by various celebrities such as Kajol. The traditional diamond is the most wanted design among Nakshatra diamonds. was launched in 1987 in India. modern and independent thinking women. Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. evolving to suite her style & Personality. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. They have aptly put their slogan as "brightest circles of light. the brand has clocked a turnover of Rs. targeting mainly the youth who wanted to celebrate Valentine's day. with an equally dazzling Aishwarya Rai as its brand ambassador. Nakshatra diamonds claim to shine your glamour and love life. Nirvana Diamonds Nirvana Diamonds from Fine Jewellery (I) Ltd. 90 crores.
occasion. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. D'damas Diamonds claim to promote a range of emotions through their collections Adora Diamonds Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. On the latest Kiah diamonds have won the Best Showroom in the DTC Diamond Season for 2005-2006. Adora diamonds are for adornment of every moment.D'damas Diamonds D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. TANISHQ – MARKET RESEARCH . Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature. Kiah Diamonds World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched its exquisite Kiah diamond collection in October. The brand name 'Kiah' means beautiful place.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds. 2004. Kiah diamonds are claims to be for celebrating womanhood. and phase of life through its up and downs. Adora means glory in Spanish and claims that its diamond collection is themed on love. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India.
More than 65 per cent of the target audience had no hesitation in coming up with the name. New Delhi and Bangalore. Two decades in the business. India's Top Ten Best Known Jewellery Brands .MARKET research On TANISHQ Tanishq emerges as the best known brand with the highest awareness and recall.TNS Survey shows that Tanishq is the best known brand across the three cities of Mumbai.all these factors combined to make the brand into a household name. proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group company. Titan Industries) has paid off well. a finding which lends credence to the leadership factors. The difference between the leaders and the followers is always greater when the former have a head start. the possibility that they will continue to be at the top is a foregone conclusion. And when the pace and efforts of the leaders intensify. over 70 retail outlets across the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience . The Solitaire .
Kathy Ireland." says model-turneddesigner and CEO of a billion dollar company. New Delhi and Bangalore was targeted solely at women. corporate areas and commercial zones. Consumer behavior also is undergoing a transformation.TNS Survey across Mumbai. banks. a fact which jewellery brand managers in India will not refute. The Solitaire-TNS Survey to find out India's best known brands (and other pertinent details) was initiated with a view to assist and equips the industry with information that goes beyond the ordinary. 600+. the fact that the target group was covered in and around shopping malls. What Did Women Really Buy? . While the sample size was small. Hence the Solitaire . "Men buy products while women choose brands.The Survey The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants coming in all the time. The survey was conducted through personal interviews over a period of 15 days. made the sample more relevant to the objectives.
Thus. This may be because most jewellery brands have a varied price range that caters to women belonging to different segments of society.An interesting question is whether there is a difference in what women consider as India's best brands and what they finally opt for. A long history of fascination for the yellow metal as a status symbol and as an instrument of security and its easy . What Woman Want? While Tanishq and a few other regulars do occupy women's mind space. there has been little or no difference observed in our target group in their choices. the good news for other brands is that women are not unduly influenced by the aspirational longings of their hearts. Quite naturally. price structure and affordability are in conflict with aspirations. However. Even in a high-profile brand at least a few lines are made affordable to most people. the toppers in the best known category come up trumps even here.
picking up gold jewellery without precious stones as their most preferred jewellery. With the economy moving upwards and income levels increasing. both working and non-working. etc. Where Do Women Buy From? As constant as their liking for gold. 40 per cent of the working women are willing to try new jewellery outlets. WGC reports that there has already been a 50 per cent increase in the first half of 2005 over the same period last year! With established jewellery manufacturers (read brand owners) recognizing the everlasting appeal of gold among Indian women. jewellery brands in the future might see more visible usage of gold. malls. . But there are changes happening. 32 per cent of non-working women opt for this too. In this case. gold consumption in India is showing tremendous growth. 22 carat yellow gold jewellery is the most preferred gold jewellery. Indian women are totally rooted in the choice of the place from where they buy their jewellery. the traditional/independent jeweller seems to have no competition at all from the new generation brand stores. Diamond studded jewellery is the next highly preferred.convertibility to cash has most women.
the survey points out. With an amalgamation between the old and the new marketing strategies. are more open to trying out branded and new retail outlets. Thus. independent/family jewellers have also created indelible brands. most women are brandconscious and opt either for the ones that are highly visible or those that have been embedded in their buying culture through family association. . in the final reckoning.Working women.
Analysts decreed that the company's strategies were wary.200 outlets. Australia and West Asia. Tanishq fared equally well on the export front also with heavy exports to UK. as a concept. an entirely new concept in the Indian market.Tanishq COO. Till then. The story of Tanishq." Even if one agreed with Kurian. the Indian jewellery market was to a large extent unorganized. The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings. Tanishq was the largest overseas chain in US with 1. Industry watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. thus had to struggle hard to be accepted by the customers. Tanishq performed very badly in the next three years.8 million recorded in 1998-99 and reached Rs 2000 million in 2000-01.TANISHQ . Jacob Kurian. "Tanishq.THE TURNAROUND STORY When we started out we didn't think that we could achieve this. was far too ahead of its times. India's leading manufacturer of watches. with designs borrowed heavily from contemporary European brands. In the year 2000. exports contributed 10% to the company's turnover. Tanishq took various steps to correct the mistakes it had committed and very soon. posting a huge loss in 1997-98. in March 2000. Titan Industries. The Unsuccessful Launch In 1995. once written off as a losing proposition. Tanishq's chief operating officer admitted. At this point. it could not be denied that Tanishq did commit mistakes. but now being jewellers to the nation doesn't seem so distant. Vasant Nangia. posted its first ever operating profit in 1999. launched the Tanishq range of gold watches and jewellery. US. sales doubled to Rs 1532 million against Rs 743. Tanishq." . proving its detractors right. Tanishq began by offering jewellery in the 18-carat gold range. with a few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's. making a remarkable turnaround was an example of a company single-mindedly working to make . In 1999-00.
was started in technical collaboration with France Ebauches (a French company).' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. Titan changed its name from 'Titan Watches Ltd. Initially involved in the watches and clocks business. of course. these jewellers made the jewellery to order and often bought back their products at the prevailing market rates. it also started its jewellery division under the Tanishq brand. In 1992. Uttar Pradesh was started in 1990. Jewellery had predominantly been used as an investment rather than adornment. In the late 1990s.its own mark in the tradition bound Indian jewellery market. At this point of time. Background Note Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO). the jewellery business was highly localized and the concept of branded jewellery did not exist. Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewellery only from family jewellers. Timex Watches Limited. with Timex Corporation of USA to market Timex watches in India.2 million jewellers scattered across the country. India had around 0. one of the world's largest manufacturers of watch movements. Titan established its first manufacturing facility in Hosur. Titan later ventured into the jewellery businesses. incorporated in July 1984 in Chennai. Behind this success was. marketed under the Titan and Sonata brand names with a 25% share of the total domestic market.' to 'Titan Industries Ltd. a change in the perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about.1 And in 1995. The company. Hence. from the very beginning. The company was India's leading manufacturer of watches. Thus. In the same year. People generally bought gold from the same family jeweller they had trusted implicitly for generations. Moreover. The sleek and contemporary designs being offered did not go . Tamil Nadu and its first satellite watch assembly unit at Dehradun. Titan set up a joint venture. a well-planned and well-executed marketing plan.
"We also decided to go in for transmigration of designs. our designs were not appreciated initially as they were believed to be extremely Western. Also." Over a period of time. Onam in Kerala. divisional head.500 designs based on current trends and the feedback from stores. said. Therefore the first step was to change the brand positioning from that of an elitist and Westernized offering to a more mainstream. we offered only 18 carat gold. provided variety to what the people in a particular area were used to seeing.the product proposition and retailing. it would have to cater to tastes of all regions Therefore. when it shifted its focus to the domestic market. "When we launched the Tanishq range. Johnson Verghese. Tanishq realized that. Setting Things Right Tanishq found out that it had gone wrong mainly in two areas ." Tanishq's team of in-house designers came out with about 3. Indian one. etc. Tanishq also made attempts to redefine traditional styles in its designs. such as during Durga Puja in West Bengal. given the diverse nature of Indian ethnicity. traditional designs. Initially with a focus on the export market. sales and marketing. Diwali in north India. These designs. The company also began seasonal and localized promotions based on Indian festivals. erstwhile Chief Operating Officer. At least 10% of these designs were changed every quarter and fresh ones were added to the stock. and the same line of jewellery was sold in India as well. though Indian. Tanishq's research revealed many other loopholes in its strategies. it was unable to sell these designs. Vasant Nangia. However. the emphasis shifted from the erstwhile modern designs to more ethnic ones and traditional ornaments (based on designs from various states) were launched. Tanishq said. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well. its designs were predominantly Western. . So we not only got in more Indian motifs but also started stocking typical designs from Tamil Nadu in Mumbai and those from Bengal in Delhi.down well with the Indian customer who was used to heavy.
. In 1999. Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments. "They have begun to understand the total value proposition that Tanishq offers. The concept was later on heralded as a bold step towards professionalizing the Indian jewellery business. which did well across the country.Tanishq gave complete freedom to the retail outlets to pick up designs. The Karatmeter used X-rays to give an accurate reading of the constitution of gold in the ornament within three minutes. In some cases the caratage was found to be as low as 10% and almost 65% of the gold tested was below 22 carats. proved to be the biggest USP for Tanishq in the coming years. Almost all the outlets stocked the 'best selling' range of designs. Imported from Germany at a cost of Rs 1 million each. it was also alleged that a slight amount of gold was always lost while testing. Traditionally. the jewellers kept the making charges very low to entice customers. This had become the norm all over the country. replacing many long-standing relationships with the traditional jeweller. A Tanishq official commented. Fact. In order to add some value proposition to rise above the competition." An all-India customer satisfaction survey conducted by Tanishq in 2001 revealed that over 50% of all Tanishq customers intended to make it their jeweller. Tanishq introduced the revolutionary concept of Karatmeters in its retail boutiques. The customers had to accept this for want of an alternative. Tanishq decided to address the issue of gold purity. which was most important to the customers. Apart from the fact that the customers did not trust the method. Tanishq conducted tests on 10. conventional jewellers used the touchstone2 to test the purity of gold. When Tanishq was launched. As the concept of Karatmeter became more widely known. As the caratage offered was on the lower side in traditional jewels. In an attempt to elbow out competition. Karatmeters though expensive. which they thought would sell in their stores. customers began to realize that the rates they were paying for Tanishq jewellery were indeed justified. This did not help the Tanishq brand to make its mark. its sales increased by 20-30%. Tanishq had to struggle hard to break this convention.000 ornaments selected at random. it sold most of its products through multibrand stores.
Kolkata. "We already have a kind of standard pricing in place. This in-house manufacturing facility was the main reason.5 million such as Trichy. Tanishq based its gold prices on international exchange prices." Tanishq even had plans to link directly with the London Metal Exchange (LME) for daily quotes in the future. Nagpur. Amritsar and Patna. . Tanishq set up an ultra-modern and large-scale manufacturing unit in Hosur. resulting in prices often being lower than the local market prices. One of the company's most important initiatives was customer service enhancement. This proved to be a very wise move as sales picked up almost immediately.Having realized this.Delhi. By July 2001. In a bid to control gold price variations in different parts of the country. the rest in smaller cities with a population of at least 0. Nangia said. it had 47 'Tanishq boutiques' in 37 cities – 12 were in the metros . Tanishq decided to set up its own chain of retail showrooms in 1998. Tanishq's efforts to standardize the price of its ornaments proved to be another milestone in its success. Tanishq launched a direct consumer contact programme and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. The focus on smaller cities paid off well with the annual growth being as high as 150% as compared to the 45% growth in metros. Mumbai. Tamil Nadu at a cost of Rs 600 million. Gold prices differed across the country as they were based on different parameters concerning the local markets. Chennai and Bangalore. The standard price was made binding on all Tanishq showrooms. The number of boutiques was expected to reach 50 by the end of 2001 and to 70 by 2002. The unit had facilities like refining. Tanishq decided to have a standard gold price across all its showrooms from March 2000. alloying and stone casting and a dust-extraction system that kept gold losses down to 2% of the raw material while local jewellers typically lost 8-10%. but this would represent a formalization of that system to the public. which enabled Tanishq to charge the same price across the country.
65 million in 1999-2000 to Rs 100 million in 2000-01. in the Rs 400 billion Indian jewellery market. However. an associate of IMRB. Tanishq's share was not even 1%. Future Prospects The Indian branded jewellery market. A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM). Ceat and Liberty Shoes The communication and promotion budget was increased from Rs.25 million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. grew at the rate of 2030% during 1998-2000. The company's corporate gold gift scheme ('When you want to say thank you. Whirlpool. substantial promotions were carried out. say it in gold'). . which far exceeded that offered by any other jeweller. The Rs 100 million was split into four parts. other major players included Intergold. Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola. which was Tanishq's single largest market. direct mail and research. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deductions depending on purity. regional budgets. aiming to give the brand a round-the-year presence and enhance awareness. CSMM tracked customer satisfaction parameters for Tanishq on a quarterly basis. For instance. the TVS Group. in New Delhi. This gave the company the benefit of benchmarking against local and international players and also aided in improving repeat purchases. For the first time. The communication focused on design and quality instead of the price. As a result. Tanishq initiated a long-term media plan. By 2001.The company also kept the entry-level price as low as Rs 600 (for a pendant) and offered a range. comprising national-level spends (both electronic and print media). launched in December 1998 proved to be a major success. Tanishq delivered 50. the UB Group. though nascent. Besides Tanishq. Gili and Carbon.000 customized gold coins to 0. A majority of this was spent towards advertising. while a portion was also earmarked for promotions tailored to match regional preferences.
There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders." Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. shorn of any caveat. In a highly innovative move. This was expected to boost sales significantly in the future. It has an estimated 2. said.50.' Tanishq saw it as a vast opportunity instead. The company planned to attain a 2% market share in the next few years. Our growth rates in the past three years have fully substantiated this hypothesis. In May 2000.” . The Intranet was to contain a photo collection of all the designs in all the stores so that even those not in stock in a particular store could be ordered by customers. Tanishq tied up with Countrywide Finance for providing preapproved credit line to the customers at selective outlets. Kurian said. Jacob Kurian who had taken over as the CEO the same month. highly ethical corporate player will have great opportunity. "The jewellery market is one of the largest consumer segments in the country. this year.000 retailers with no national or international brand and no corporate player. A consumeroriented. Titan believes that this market is right for consolidation.Not willing to accept this as a 'poor show. Tanishq unveiled plans to surpass its parent company's turnover by 2002. "We have finally figured out the jewellery business and should be solidly profitable.
PROMOTION. The Akshaya Tritiya pre-booking scheme along with the 10 per cent deduction on making charge offer is available across all Tanishq boutiques Advertising Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product Tanishq. 2008 (India) Tanishq launched its "Get Gold free with Diamonds" promotional offer were customer be entitled to win at least one 22-kt one-gram gold coin on every purchase of diamond jewellery worth Rs 5. which is a huge investment opportunity. "Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing an opportunity to own diamond jewellery and win gold. . ADVERTISING & PUBLIC RELATION Promotion Tanishq launches ‘Free gold coin offer’ campaign July 19. Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar.000 and above.
Bollywood tie-up: Has done tie up with Paheli where in the movie Ms Rani Mukherji Was seen wearing Tanishq jewellery through out and in Jodha Akbar Movie were they launched a product line named Jodha Akbar. In short they know their target market and hence do advertising as required. marriage and such other occasions.T V Advertisement: Tanishq focus on the emotional attachment in the advertisement like engagement. Print advertisement: In Leading news paper and famine magazines are targeted to do the advertisement. .
Tanishq has already become one of the top five retailers in the country. After five years of consistent losses. a happy ending. the company. Tanishq recorded a sales turnover of Rs 389 crore (Rs 3. Since. There's drama. During 200203. 2003 Jacob Kurian. chief operating officer (jewellery).at consumer prices. Sales Year 1996-97 1997-98 1998-99 1999-2000 2000-01 2001-02 2002-03 Sales (Rs crore) 32 38 73 141 188 299 389 It's a long way for a company that almost folded up before it could turn in its first ever profit. celebration. By 2007. announced the completion of a dramatic three-year turnaround culminating in annual sales growth of 39 per cent and profit growth of 318 per cent. Tanishq. is the blockbuster action thriller from the Tata group. its launch. it hopes to take that to Rs 800 crore (Rs 8 billion). By then. Tanishq has not only been grappling the tough market conditions but also internal strife and Doubting Thomases. . then betrayal in the family.89 billion) -. the jewellery business group of Titan Industries. Today. It contributes 40 per cent to Titan's business and is expected to account for 55 per cent by 2007. of course. Tanishq's profitability will also be good enough to offer 28 per cent return on deployment of 25 per cent of the capital. Tanishq isn't tired of saying that the story of his company mirrors a Bollywood movie. on Thursday. followed by action and.TANISHQ IN THE NEWS Priya Ganapati in Bangalore | July 04.
" says Kurian proudly. by the time it acquired the skills and set up the plant. misrepresentation of quality and tax evasion. when India was facing a massive foreign exchange crisis. Titan estimates that up customers and the Government is defrauded of up to Rs 5. Not surprisingly. Till the last two years. demand had come down in the global market. India no longer had a foreign currency problem.000 jewellers. each powerful in his neighborhood. The estimated Rs 40. One of the largest consumers of gold. Jewellery seemed like a huge and interesting market to get into and Titan decided to set up Tanishq as a jewellery division that would be focused largely on exports. In August 1992 a pilot plant was set up and production started in two years later. Clearly. the Indian household had a marked preference for 22-karat gold. the local satraps had a very tight stranglehold on their markets and it was difficult for a pan-Indian player to break into. Being ethical too was a problem. supply had grown in Asia and margins had become very thin. was told to look for a way to earn its own foreign exchange. the skeptics were asking what was Titan doing in the jewellery business? In the late eighties. known for maintaining high ethical standards."Many people believe we should not be here today. Tanshiq launched its first store. However. But I am glad we have proved them wrong. The jewellery business in India was highly fragmented and ruled over by local players. It was a hitherto untried concept. national players were almost non-existent. Tanishq then decided to focus on the Indian market. They have kept telling us that the business logic is against what we set out to do.000 crore (Rs 400 billion) gold jewellery market in India is a rough one. There was no national jeweler that people could buy from. There are over 300. As a company which was part of the Tata group. as opposed to the 18-karat designs that jewellery chains worldwide chose to do their designs in. despite that India is the largest consumer of gold in the world. the watches division. Tanishq . Titan. imports were easy to come by.000 crore (Rs 50 billion) annually due to unethical business practices like under-karatage of gold. In 1996. the world had changed.
it had very little time on its hands to show a turnaround. May 2000 turned out to be the defining period in the company's history. Xerxes Desai had a choice between Bhaskar Bhat and Vasant Nangia when it came to deciding who would succeed him. But a day after Bhat was announced at the successor to Desai. It was a blow that many thought would sink the company. The then managing director of the company. Bhat won and was anointed as the next managing director by Desai himself and Nangia became the chief operating officer. The team had an onerous task on its shoulders. But that wouldn't help. And worse. So. he was the one who had charted out the expansion plans. Tanishq had quite a few problems on its hands then. many didn't know what Tanishq was about." says Kurian. others found it too expensive and some . A twenty-year veteran of the group. It had to not only stem the increasing losses shown by Tanishq and but also show some profits if the company was to remain in business. Tanishq could not find its feet in the market and its losses were mounting. The company was rocked by what happened. He took along with him six senior executives of Titan. Nangia quit. Tanishq's woes were rather simple: There were just not enough customers in its stores.prided itself on delivering customer value through a fair and transparent business model. In 1998-99 it showed losses of Rs 10.40 crore (Rs 104 million) though sales turnover was increasing. Nangia was the hands-on man at Tanishq. After all. And like Kurian says it was too soon for the movie to end." says Kurian. we were in our fifth consecutive year of losses then. It seemed an ignominious way for a Tata company to go. Many thought this would be finally the way Titan closed down its jewellery business. that's the worst thing that can happen: having no traffic in the stores. "The entire sales and marketing team resigned on that day. a new and admittedly inexperienced team was put together. A customer survey revealed multiple problems. Despite its high-blitz ad campaign. Its high decibel media advertising wasn't working. Till 2000. "For a retailing chain. But as Kurian saw it. A stream of adverse media reports had instilled the fear that its shareholders would pull out anytime. which included increasing the number of exclusive boutiques to 67 from the then 30 and launching a new men's range of accessories.
A range starting at Rs 399 was launched. pendants were explicitly mentioned in each ad.96 . Profits generated Year Profits generated (Rs crore) 1996-97 1997-98 1998-99 2000-01 2001-02 2002-03 . There were other minor tweaks made too.82 Kurian and his team then decided to launch the fifth anniversary celebrations of Tanishq that would offer discounts to customers and induce them to come to the store. yet it was a beginning.87 7. The aim was to bring down the price barrier significantly.60 ." smiles Kurian.21. Sometimes we had to call the security guards because of the crowds. Either way.07 1. Collections for the working women and a new set of contemporary designs were brought into the stores. So bracelets. The next year.felt that the product was not for people like them.40 2. the company decided to write off some of the financial baggage it had been carrying. We just couldn't believe it. chains.10. Almost all of the efforts paid off. The ploy worked. Ad campaigns now started to list out the products that Tanishq had. It was a measly sum of around Rs 2 crore (Rs 20 million). "We had customers waiting for the store to open. Profits generated dipped as a result but Tanishq was clearly on a revival. rings. The company changed quite a few of its . A year later. Tanishq had made its first ever profit in the entire existence of the company. getting customers back into the store became a priority.10.
Corporate and institutional sales had become an unexpected money-spinner for the jewellers.32 billion) from Rs 239 crore (Rs 2. National Panasonic. Pfizer. Tanishq was on a roll. It grew its retail sales during 2002-03 to Rs 332 crore (Rs 3. Today. Tanishq counts companies like Hindustan Lever Limited. Tanishq managed to limit its fixed asset investment to Rs 27 crore (Rs 270 million). Institutional sales help us beat targets. In 2002. Almost Rs 57 crore (Rs 570 million) came through corporate sales and exports. from 843 tonnes to 680 tonnes. Tanishq had its first showroom in Chennai in 1996. Only six of these are owned by the company. A steady stream of jewellery collections each with its distinct target audience has been launched. UB Group. The model has helped take away capital costs from the company and pass them on to franchisees who will invest money to help the company grow. Kurian and his team have brought in quite a few changes to the way Tanishq operates. the volatility in the gold prices led to a steep decline in the demand for gold. The rest are run by franchisees. In all. Contribution to Titan's growth Year 1996-97 1997-98 1999-2000 2002-03 Tanshiq contribution to Titan (in percent) 8 14 24 43 Post September 11 attack on the World Trade Center.original strategies along the way. However. Today it has over 60 showrooms in 47 cities. Hoopla. Aria. Tata Tea and Tata Chemicals among its clients. focused on diamond studded hoops and Collection-G for lower priced gold jewellery with an interesting twist . for seven stone diamond jewellery." says Kurian. the gold demand declined by 19 per cent. "We saw corporate sales as a new route to customer acquisition.39 billion). Since the last three years.
New Japanese manufacturing machines have been introduced at the Hosur. 24 march 2011 (India) . A slew of national brands have sprung up. The challenges remain. Tanishq made a profit of only Rs 7.are just a few lines that have come out of the Tanishq stable in the last three years.82 crore (Rs 78." he grins Tanishq News Headlines Bollywood's golden couple Amitabh and Jaya Bachchan is finally back together on screen after 10 years but not for a film but for a Tanishq jewellery ad. The emphasis is now on customisation according to customer demands. "We believe jewellery business is one of the few 'China-proof. WalMart-proof' kind of businesses. In 200203.2 million). Tanishq has to battle a lot more at the market place. on revenues of Rs 389 crore (Rs 3.89 billion). Manufacturing has been made more flexible. Tamil Nadu plant of the company. Profit figures have yet to rise significantly. From Nakshatra to TBZ to Carbon. Kurian says now it's a great time to be in business. Yet.
2007 (India) Tanishq unveils coveted Miss India 2007 crown March 23.prêt January 28. 2006 (India) . 2008 (India) Tanishq to spread its radiance with new stores May 15. 2008 (India) Royal Mughal appearance in Tanishq jewelry January 28. 2006 (India) US to shine with Indian jewellary November 03. 2007 (India) Tanishq launches elegant fashion earring collection November 16. 2007 (India) Tanishq targets US jewelry market April 09. 2008 (India) Tanishq Jodhaa Akbar collection .Tanishq launches ‘Free gold coin offer’ campaign July 19. 2006 (India) Celebrate DHANTERAS with exquisite jewellery from Tanishq October 10. 2008 (India) Celebrate Akshaya Trithiya with Tanishq jewellery May 02. 2008 (India) Tanishq opens 3rd exclusive showroom in Chandigarh November 20. 2007 (India) 100th store in Patna & still counting…Tanishq October 26. 2007 (India) Tanishq is a perfect gift for your sister! August 18.
2005 (India) Tata’s Tanishq registers sales worth Rs 570 cr in FY-05 May 06. 2006 (India) Tanishq's 'up to 25 per cent off’ scheme January 31. 2006 (India) Tanishq to strengthen its presence July 31. 2003 (UAE) Titan opened its first Tanishq jewelry brand outlets in Chicago and New Jersey by January 2008.Tanishq Jewellery adds glamour to women's ensemble October 04. 2005 (India) Tanishq introduces exclusive 'Paheli' collection June 24. 2006 (India) Tanishq expects 15-20% sales gain this year August 03. 2005 (India) Tanishq Launches Aria Collection October 07. 2005 (India) Tanishq and Titan declared ‘The Most Admired Brands Of The Year’ at LIFA January 27. 2006 (India) Tanishq launches Colors of Royalty range jewelry April 17. 2005 (India) Tanishq launches exquisite collection for women’s day March 07. . 2006 (India) Tanishq introduces exquisite 'Paheli Collection' July 02.
with concepts like Rain.GLOBALIZATION Company aims to expand this into a 10-store chain with initial investment of US $6-7 million. Tanishq would inch its way to open a second store in the next three to four months. The store is proposed as a 2000 sq. where the jeweller would retail 18 karat gold and diamond studded jewellery. US. . Yoga. while native American influences – like a local tree in New York have also inspired the jewellery collections. Price points for the jewellery have been determined between $400-$12. through either franchisee or self-owned outlets. in New Jersey. in July. Tanishq has targeted the world’s biggest jewelry market. US jewelry market is valued at around $16 billion.000. The designs at the store have been inspired and themed basis the lifestyle of modern American women. Currently.ft. Facility. The Indian jewellery manufacturer plans to launch its pilot retail jewellery store in Chicago.
3. There is a great potential for the Tanishq jewelry because the people are ready to invest in the gold as there is a positive responses.SUGGESTIONS 1. . 2. 4. Tanishq should focus on the increasing the chain of store in small cities to promote the branded jewelry market. People are focusing on the purity and new design in jewelry as well as traditional jewelry. An aggressive advertising campaigning should be there to encourage more people to buy.
Retail Management (Pearson education.Bibliography BOOKS ► Kotler Philip.Environment and operations(Vikas.) INTERNET WEB PAGE • • • • tanishq. 12th edition) ► Malhotra K.co. and Cullen P. Graw hill.in Organizedretail. marketing management.co. (Pearson education. 10th edition) ► Louden D. 5th edition) ► Berman B and Evans J.L.Retailing. In Retailing.R. 4th edition ) ► Newman A. (Prentice hall of India pvt. Research design.in . Naresh. marketing research (An applied orientation).co.J.in Retail seminar. & bitta delia consumer behavior ( tata Mc.1st Ed.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.