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CONSUMER BEHAVIOUR:
Consumer behaviour refers to the study of consumers and the actions and the decision processes
they use to purchase goods and services to satisfy their needs and wants, including emotional, mental, and
behavioural responses with the aim of determining what influences consumers buying decisions.

WHY STUDY CONSUMER BEHAVIOUR:

 Better understanding of our own consumption behaviour.
 What consumers think and how they feel about various brands, products, services, etc.
 What influences consumers to choose between the various options available to them?
 Consumer behaviour while researching and shopping.
 How consumers’ environment (including their friends and family, the media they
consume etc) influences their behaviour.

FACTORS INFLUENCING CONSUMER BEHAVIOUR

 Internal and Psychological factors.

1. Motivation
2. Perception
3. Learning
4. Personality
 Firm’s marketing efforts.
1. Product
2. Price
3. Place
4. Promotion
 External or Socio-Cultural factors.
1. Culture
2. Subcultures
3. Social class

1. XERXES DESAI – TANISHQ-A TATA PRODUCT (INDIA)

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 In the late 1980s, Xerxes Desai introduced India to its first quartz watch when he founded Titan
Co. Ltd, a part of Tata Sons. Titan Company Limited began in 1984 when he inaugurated Titan Watches
Limited in Chennai. Despite challenges, Titan’s emergence as a leader in quartz analogue electronic watches
was marked by its pursuit of excellence. The expansion into other product ranges led to the company’s
transformation into Titan Industries Ltd. in 1993.

Desai joined Tata Administrative Services in 1961 after graduation, working at several of
their companies. He founded Titan as a joint venture with J. R. D. Tata in 1986, with support from the Tamil
Nadu Industrial Development Corporation. He had suggested the idea of a watchmaking company to Tata in
the 1970s, who liked it, but bureaucratic hassles took time till the company was opened in 1986 in Hosur.

After Titan's success, Desai founded Tanishq, a jewellery brand. He had innovative ideas like
asking people in Bangalore to get their jewellery appraised in 1999. The jewellery business grew over time,
after a slow start.

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The birth of Tanishq :
In 1994, Titan ventured into the world of jewellery, and Desai’s understanding of the Indian consumer
shone through. He coined the term “Tanishq” by combining “Tan” (body) and “Nishk” (gold ornament),
reflecting a deep connection to Indian culture. The name’s timeless appeal even extends to individuals, with
children being named after the iconic jewellery brand.

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UNDERSTANDING THE INDIAN CONSUMER BEHAVIOUR :

The research states that how Tanishq realised that instead of new design
patterns, they have to shift focus on traditional design from different states as India is diverse
in nature so different states has different taste of design. It also brought concept of Karat
meter which lead customers to realize that rates they were paying for Tanishq jewellery was
justified. Also Tanishq brought customer service enhancement where it launched direct
consumer contact program and conducted survey to monitor footfalls and walk-ins of repeated
customers. It also launched an entry-level price as low as Rs. 600 and offered a range which
no other jewellers would have offered yet. Also, Tanishq has 100% return guarantee and it
also started Customer Satisfaction Measurement Management program to measure customer
satisfaction on quarterly basis. It also offers scheme where consumers can repair Tanishq
jewellery free of cost across India.

Thus all this helped Tanishq to create a benchmark among all local and international brands
and helped to create trust consumers to buy from Tanishq.

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HOW TANISHQ IS TRYING TO CHANGE THE BUYING BEHAVIOUR OF
INDIAN CUSTOMERS ?

Indian households own around 2400 Metric tonnes which is approximately 11% of the total global
deposits. Gold has been of utmost importance to Indians and Indian culture. Festivals like Akshay Tritya and
Dhantiras are celebrated around it. With such a huge craze and importance of gold jewellery has
undoubtedly been a huge business in India since centuries. Earlier like a family Doctor, each family used to
have a family Jeweller and with an intent to capitalize this craze of gold and jeweller, TITAN industries
launched the first ever jewellery brand named TANISHQ in 1995.

Till then the Indian jewellery market was mostly unorganised with a few recognised names like
Tribhovandas Bhimji Zaveri and Mehrasons Jewellers. Thus carving a brand out of this unorganised
market wasn’t easy for Tanishq. After a few years of launch, Tanishq was at the verge of shutdown.

In 1995, when TITAN has achieved a stupendous success in the watchmaking and not just did they replace
the market leader HMT that is HINDUSTAN MACHINE TOOLS but also altered the CONSUMER
BEHAVIOUR from using the mechanical watches to Quad watches. And with the same intent, Tanishq
introduced 18Karat Gold jewellery. At the time, A 22 Karat variant was more popular among Indians but
the 18 karat has two main benefits over the 22Karat variant.

Two Main Benefits of 18 Karat Gold Varient :

 Scratch – Proof
 Lesser Price

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 DIFFERENTIATINNG FACTOR :

Moreover, To differentiate themselves from the traditional Indian offering, The designs
of Tanishq were heavily inspired from contemporary European brands like CHAUMENT PARIS,
TIFFANY & CO, PIAGET, W.A. BOLIN AND CARTIER. This attempt to alter the CONSUMER
BEHAVIOUR BACKFIRED TANISHQ such a way that, In five years of its launch, the brand was
standing at a humongous loss of ₹ 150 crores and In 2001, the share of TITAN industries, the parent
company of THANES plunged to just ₹2. At that time, the consultancy giant MC.KENSEY & COMPANY
suggested TATA to shutdown the jewellery arm of TITAN but RATAN TATA left the final decision to the
then chairman of Titan industries XERXES DESAI and HE refused to give up.

With the new struggle kicked off to rebuild Tanishq, the market preposition was redeveloped and after a
detailed study of the CONSUMER BEHAVIOUR, Tanishq noticed a major flaw in the model which was not
understanding the consumer needs and wrong market proposition.

Unlike European culture, In India, Jewellery is not just bought for an ornamental purposes but also
seen as an investment. In that case, 22 Karat gold is more pure compared to the 18 Karat variant and thus
considering and realising all such factors, Tanishq finally launched 22Karat variant. But despite these
changes, the main challenges for Tanishq was still the dependency of Indian consumers on their family
jewellers and only reason for this was Trust, Gold is the thing that is very much vulnerable to
impurities.Thus people stick only to their family jewellers or the jewellers from whom they are buying for
decades. But Tanishq noticed that these jewellers used to sell impure gold. Probably in a 22Karat gold
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jewellery, 19 to 20 karat of gold was present and rest impurities and then came the major breakthrough in the
journey of Tanishq which changed the game forever. Tanishq introduced and set up Karat Meters in their
stores where the customers can come and get the purity of gold tested for free. This checks the purity of gold
with the help of x-rays. Thus with this the people got a reality check and their blind faith over their family
jewellers started dwelling. However the surprising thing was nothing much changed even after that. People
used to come and Get their jewellery check and went out of the shop lambasting and abusing their jewellers.
Though the footfalls in the shop increased, the sales didn’t.

The main problem was Tanishq just made the customers realise the Problem but didn’t provide any
solution. After this, Tanishq launched the 19=22 offer. And this changed the entire landscape of Tanishq. As
per 19=22 offer, people could bring their gold jewellery and test it on the Karat Meter. If the purity of the
jewellery was lower than 22 karat and higher than 19 karat and it could be exchanged for Tanishq’s 22
karat jewellery of their choice by paying only the manufacturing charges. And Tanishq could bear the
entire cost of the gold. After this offer, there was no looking back for Tanishq and this substantially grew the
trust of the consumers over the brand Tanishq. With all such strategies in place, Tanishq has crossed 350
stores landmark across 200 cities in India with the turnover of 7500 crores.

Tanishq also launched several other sub brands like NIVA with a focus on wedding related jewellery and
AVEER is the first line of product for men and most importantly MIA BY TANISHQ.

HOW MIA BY TANISHQ IS TRYING TO ALTER THE CONSUMER BUYING BEHAVIOUR ?

MIA is highly focused towards its target segment of working women. Previously heavy durable gold
jewellery were preferred by women which yielded enough to manage a financial need if mortgages or sold

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but Today’s young working women are more financially aware and look at jewellery as a style statement and
a means of self expression. Also as per the professional norms, heavy jewellery doesn’t go well in the office
and this is the exact set of people which MIA is targeting with its brand. Currently this segment of course
may comprise of a small percentage of jewellery buyers in India but MIA’s Intention was to sell more by
selling to the fewer.

The main aim of MIA is to give their product with minimalistic stylish designs and with the
affordable price range of ₹4000-₹30000. And also mostly 14 karat gold is used in the making and recently
MIA announced a change in their policy strategically to change that consumer buying behaviour. According
to which, they would be selling jewellery at a fixed price and will not disclosure of the weight or breakup of
making charges or anything. Considering the fact that gold will repurchase is considered more of a serious
purchase and factors like weight, making charges etc. are calculated, compared and bargained upon. Thus
this might seem a bit weird and Illogical in the Indian Market scenario but this is not new if we take a glance
at the International jewellery purchase trends. In the western market, the gold purity lies mostly in the range
of 9-15 Karats and the main focus out there is the design. Since the working women are stable, this strategy
will be effective in the market.

KEEPING UP WITH GEN Z :

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 The brand aimed to normalise accessibility and use of jewellery for all and introduced
brand IP ‘Mia for all.’

For pride month, the brand launched a two-week-long campaign aimed at promoting the
brand’s message of inclusivity, and the celebration of jewellery as a symbol of love, regardless
of gender. The campaign was a massive success and reached an audience of over 3 million
people. Through this campaign, Mia made a clear statement that their jewellery is made for
everyone.

The IP also introduced witty copies for Men’s day that slashed stereotypes like “Man up your
style with some diamonds.” and “Men will be men, even with bling.”

CONCLUSION:

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 Mia by Tanishq, a jewellery brand born out of the legacy of TATA, has successfully managed to connect
with the Gen Z audience by tapping into their conscious and individualistic nature. With the help of its
digital partner Schbang, the brand has crafted unique and relatable communication strategies and set the
bar high for other brands looking to connect with the Gen Z consumer cohort.

KIICHIRO TOYODA – TOYOTA AUTOMOBILE (JAPAN)

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 Kiichiro Toyoda spearheaded the creation of the first Toyota automobile
and the founding of Toyota Motor Corporation in 1937.Toyoda was born in
Shizuoka Prefecture, Japan in 1894. He was the son of Sakichi Toyoda, a noted
inventor and founder of Toyoda Automatic Loom Works in 1926. Kichiro
attended the University of Tokyo, where he studied engineering. After
graduation,
Kiichiro began working in the family business and later traveled to England and
the United States to further his education in manufacturing.

The vehicles were originally sold under the Toyoda name, but the division soon changed its name to
"Toyota" because it took eight brush strokes to write la lucky number in Japanese cultural and was visually
simpler. The new name was trademarked in 1936 and Toyota Motor Corporation was registered
independently of Toyoda Loom Works in 1937.

Toyoda was named Vice President of the Toyota Motor Company upon its formation. He became
President in 1941 and remained head of the company until his resignation in 1950. He passed away in 1952
having laid the groundwork for Toyota Motor Corporation's rise to the top of the automotive industry.

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Toyota Motor Corporation:

Toyota is a Japanese automotive manufacturer headquartered in Toyota, Aichi, Japan. In March 2014
the multinational corporation consisted of 338,875 employees world wide and, as of November 2014, is
the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in
2012 (by production) ahead of the Volkswagen Group and General Motors. In July of that year, the
company reported the production of its 200-millionth vehicle. Toyota is the world's first automobile
manufacturer to produce more than 10 million vehicles per year. It did so in 2012 according to OICA, and in
2013 according to company data. As of July 2014, Toyota was the largest listed company in Japan by
market capitalisation and by revenue.
The company was founded by Kichiro Toyota in 1937 as a spinoff from his father's company Toyota
Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries,
it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota
Motor Corporation produces vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and
Scion. It also holds a 51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu,
and a 0.27% stake in Tesla, as well as joint-ventures with two in China (GAC Toyota and Sichuan FAW
Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several
"nonautomotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the
world.

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CONSUMER BEHAVIOUR ON MARKETING STRATEGY OF TOYOTA :

The company uses a combination of marketing strategies to reach its primary target. Use
of print media (Magazines and Newspapers), mass media promotion (television) and use of
social media such as Twitter and Instagram direct selling are among me marketing strategies that Toyota
applies to engage with buvers and in the process persuade them to purchase vehicles.

However, consumer behaviour and technology advancement remain as the

main focus of Toyota's marketing strategy. To address the issue of consumer behaviour, Toyota
has focused on issues such as Economic conditions, Change in buying habits, changing lifestyle
and environmental conditions. Among others, Using these factors, the company can adopt a marketing
strategy that will easily reach potential customers. One way in which consumer behaviour has impacted
Toyota Corporation is the use of digital marketing. With the advancement in technology, social media has
now become a norm.. People use social media not only for having fun but also to acquire knowledge about
other products of importance to them. Having this in mind, Toyota upped its game and took advantage of
social media to market and reach their target audience. The company now has an active Twitter account
which is used for advertising its latest model vehicles and inventions, inform people on the latest company
activities such as racing and get views from people about their products. Toyota dealers from different
regions can be able to reach Toyota through a specific twitter account; for example, Toyota India addresses
the needs of India people who might require the service.

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 Consumers' changing lifestyle is another consumer behaviour that has affected Toyota marketing
strategy. For example, people from developed countries are associated with luxurious lifestyles which
necessitate the company to manufacture luxurious cars for them. Depending on the location of the dealer,
the company stocks the vehicles that people in that region like. For example, Land Cruiser SUV and Lexus
are luxurious vehicles which are mainly found in regions associated with wealthy people. In regions where
people purchasing power is high, Toyota uses dealership as their marketing strategy where they employ
direct selling technique. In this way, they can know the type of car people in that region prefers
and the vehicles least preferred.

There are many ways that Toyota uses to acquire knowledge of what its client needs. This ranges from
direct marketing, where the sales agents interact with potential buyers directly. Use of social media (Digital
Marketing) which enable the company to chat with the people, the information gathered by dealers from
different locations surveys and research is done on the automotive industry. These methods allow the
company to know what people think of the company's product and the changes they would like to be
made. The specific example of how Toyota has utilized its knowledge of consumer behaviour to adjust its
marketing strategy is through the use of social media. A survey conducted showed that the majority of
people prefer

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TARGETING OF CUSTOMERS USING CONSUMER BEHAVIOUR:

1. Toyota Prius customer targeting way:

o Targets on conscious customers who place an importance on the environment

o Targets individuals that wants to save as the gas pumps
o Targets individuals that care about safety, Quality, family etc

2. Toyota Tundra customer targeting way:

Targets on consumers interested in functionally and recreation

3.Toyota Lexus targeting way of customers:

o Targets a more sophisticated classy customers individuals interested in styles luxury comfort
status etc.
o Targets the middle aged consumer who care about family safety security prestige

4.Toyota Trucks customer targeting way:

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 Truck lovers or professional who need truck.

CONCLUSION:
Toyota motors always concerns on the consumers and understand the customers needs. They adapt
the recent trends in their market by various social media platforms and customers reviews. The consumer
behaviour in Toyota segments and targets the customers based on their behavioural purchase of their
product.

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