INDEX

SR.NO. CONTENTS
1 Introduction

2 Market Research

3 Market Research For Business Planning &

Growth
4 Tanishq – An Introduction
5 Locating Tanishq
6 Product Line & The Collections
7 Tanishq For You
8 Tanishq Retailing
9 Marketing
10 Tanishq Marketing Strategy
11 The Jewellery Market
12 Some of Tanishqs Competitors
13 Tanishq – Market Research
14 Tanishq – The Turnaround Story
15 Promotion, Advertising & Public Relation
16 Tanishq In The News
17 Globalization
 INTRODUCTION

As we see it, research in advertising and marketing is very

crucial in understanding, speculating on, and ultimately
determining the position of the product in the consumer's
mind.

It is like a homework task that a good

advertising/marketing/sales person would always carry out
before (and after) implementing the said product's
advertising/marketing strategy.

By collecting data with the help of research methods, the

researcher can manage to understand the consumer, what
he wants, when he wants it, and how he wants it.

Research methodologies, more or less, aim to reveal

consumers’ different perceptions of the product, in large part
about the way it is advertised.

The researcher wants to know how effective the

advertisement is on his listeners, where the strategy falls
short, and where it can improve.

Ultimately, it can be said that the most important task of

advertising/marketing research is to increase the sales of the
product. This requires a well developed marketing plan, a
good know-how of the prospective consumer, and most of all
an effective and rational research methodology.
 MARKET RESEARCH

Market research is the process of systematically gathering,

recording and analyzing data and information about
customers, competitors and the market. Its uses include to
help create a business plan, launch a new product or service,
fine tune existing products and services, and expand into
new markets. Market research can be used to determine
which portion of the population will purchase a
product/service, based on variables like age, gender,
location and income level.

Market research is generally either primary or secondary.In

secondary research, the company uses information compiled
from other sources that appears applicable to a new or
existing product. The advantages of secondary research are
that it is relatively cheap and easily accessible.
Disadvantages of secondary research are that it is often not
specific to your area of research and the data used can be
biased and is difficult to validate. Primary market research
involves testing such as focus groups, surveys, field tests,
interviews or observation, conducted or tailored specifically
to that product.

A list of questions that can be answered through market

research:

• What is happening in the market? What are the trends?

Who are the competitors?

• How do consumers talk about the products in the

market?

• Which needs are important? Are the needs being met

by current products?
.
 MARKET RESEARCH FOR BUSINESS
PLANNING & GROWTH

Market research is for discovering what people want, need,

or believe. It can also involve discovering how they act. Once
that research is complete it can be used to determine how to
market your specific product.

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, the supply and the
demand. Information about the markets can be obtained in
several different varieties and formats.

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. Widely
used bases for segmenting include geographic differences,
personality differences, demographic differences, use of
product differences, and psychographic differences.

Market trends

The upward or downward movements of a market, during a

period of time. The market size is more difficult to estimate if
you are starting with something completely new. In this case,
you will have to derive the figures from the number of
potential customers or customer segments.

But besides information about the target market you also

need information about your competitor, your customers,
products etc.

A few techniques are:

• Customer analysis
• Choice Modelling
• Competitor analysis
• Risk analysis
• Product research
• Advertising research
 TANISHQ – AN INTRODUCTION

Tanishq is India's largest, most desirable and fastest growing

jewelry brand in India. Started in 1995, Tanishq is the jewelry
business group of Titan Industries Ltd - promoted by the
TATA group, India's most respected and widely diversified
business conglomerate.

This year marks a decade of successful innings for Tanishq.

With a retail sales of 1200 crore last year and gunning for
2000 crores this year, Tanishq has arrived in the Indian
jewelry market. It is a story of a successful Indian enterprise,
which has delivered value to its customers and shareholders
in a complex category, marked by its completely localized
front end as well as back end.

Tanishq has set up production and sourcing bases with

through research of the jewelry crafts of India. jewelry at
Tanishq is crafted in one of the world's most modern
factories. The factory complies with all labour and
environmental standards. Located at Hosur, Tamil Nadu, the
1,35,000 sq. ft. factory is equipped with the latest and most
modern machinery and equipment. Every product at Tanishq
is painstakingly crafted to perfection. Diligent care and
quality processes ensure that the Tanishq finish is
unmatched by any other jeweller in the country.
Tanishq challenged the age-old jeweller's word with TATA's
guaranteed purity. 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 introduced innovations like
Karatmeter, the only non destructive means to check the
purity of gold.

Tanishq also introduced professional retailing in the dis-

organised Indian jewelry bazaar, where women can shop
with comfort and peace, without worrying about the purity of
the jewelry they are buying, as well as, select from the best
jewelry collections available in the Indian market.

Tanishq today is India's most aspirational fine jewelry brand

with 91 stores in 64 cities, 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.
Exquisite platinum jewelry is also part of the product range.

Jewellery is one of the last great commodity frontiers

in India; it has remained so because this market is
very fragmented, very unorganized. Tanishq has
successfully taken on the challenge of transforming
this frontier into a reliable consumer space by
bringing to it all the virtues and benefits that
branding offers".

- Harish Bhat, CEO, Tanishq.

 LOCATING TANISHQ

Tanishq had its first showroom in Chennai in 1996. Today it

has over 60 showrooms in 47 cities. Only six of these are
owned by the company. The rest are run by franchisees.

There are six branches in Mumbai

Tanishq
365/C,Linking Road, Khar,
Mumbai-400 052
Ph: 022-26484846 / 26495959
Fax: 022 - 26487979
E-mail: btqkha@tanishqmail.com

Tanishq
No. 7, Brabourne
Stadium, Veer Nariman Rd ,
Churchgate,
Mumbai-400 020
Ph: 022-22821621/ 22826043 / 22838801
Fax: 022 - 22875155
E-mail: btqmum@tanishqmail.com

Tanishq
19-21, Kailash Plaza,
Vallabh Baug Road,
Opp. Odeon Cinema,
Ghatkopar East,
Mumbai - 400 077
Ph: 022- 25128020 / 25127734 / 25128020 / 25127684
E-mail:btqgtk@tanishqmail.com
Tanishq
Level 2 R Mall
Lbs Road, Mulund (W)
Mumbai
Ph: 022 67969627 / 67997874 / 39576922
E-mail:btqmln@tanishqmail.com

Tanishq
G-11, Inorbit Malls
Mind Space, Malad Link Road,
Malad,
Mumbai - 400068
Ph: 022 56406945 / 56406938
E-mail:btqorb@tanishqmail.com

Tanishq,
Durga Chambers, Plot # Ctsf-904,
40 Waterfield Road,
Rk Patkar Marg, Turner Road,
Bandra(W), Mumbai:400050
Ph: 022-67100687 / 26424846
 PRODUCT LINE & THE COLLECTIONS

PRODUCT LINE:

Tanishq Diamonds
The sparkle of diamonds has always attracted the human eye.

Finding your perfect piece of diamond jewelry is an

exhilarating and unique experience. As with any significant
purchase, it is important that you make an educated
decision.

Cut and crafted with utmost care, Tanishq diamonds come

with a certificate of authenticity, stating the caratage, colour
and clarity of the stone, to enable you to know exactly what
you are paying for.

No gemstone expresses human emotions more powerfully

than a diamond and Tanishq transforms these precious
stones into breathtaking masterpieces, each unique and
splendid in design. When it comes to diamonds at Tanishq
you will be spoilt for choice from many collections we have
to offer.

Tanishq Gold

From the traditional harams, mangalsutras and thalis to the

more fashionable earrings, chains, bracelets and rings, there
is a lot to choose from at Tanishq.

In India Gold has always been associated with security and is

the most valuable form of investment. However, it has been
observed that consumer is an easy target to several
malpractices like under karatage, under valuation of the gold
sold and unfair buy back policies due to the lack of
awareness about these issues.

Tanishq propagates ethical practices not only by assuring the

customer purity and selling policies, but also fair policies to
the karigars who craft the jewelry

Tanishq's designs in Pure 22k gold are not only unique,

expressing the wearer's individuality but each piece is
subject to the intricate process of design, crafting and stone
setting with stringent quality standards at every point. At
Tanishq, we cater to every occasion. Our collections in gold
abound from the grandiose wedding collection to exotic
kundan and polki, from the stunning Aarka collections to the
exclusive Nakashi work. We ensure that we have something
for everyone with our baby range, 9 to 5 for the working
woman and high fashion, men's wear, teen's collection and
regional specific designs.

Tanishq Platinum
Metal at its best.

Pure
Platinum's purity endows it with a brilliant white luster. This
helps to reflect the true radiance of diamonds. Because it is
generally 95% pure (18 karat gold is 75% pure), platinum
jewelry does not fade or tarnish and keeps its looks for a
lifetime.

Rare
Platinum is rare, the coveted treasure of discerning
individuals. There is very little platinum on this earth and it is
found in very few places around the world. This exquisite
metal is 30 times rarer than gold. Platinum's rarity makes it
exclusive and distinctive - a celebration of your individuality.

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. All precious metals can
scratch, and platinum is no exception. However, the scratch
on a platinum piece is merely a displacement of the metal
and none of its volume is lost.

Some of the world's most famous gems are set in platinum,

such as the Kohinoor diamond, part of the British crown
jewels.

Platinum and White Gold are distinctly different materials

and must not be confused. Platinum is a metallic element
while White Gold is a Gold alloy, which gets its white colour
due to palladium or nickel.

Tanishq's Platinum represents excellent value for money. The

price may be higher than a similar item in gold but platinum
is pure, rare, enduring, beautiful, luxurious, classic, and the
perfect host for diamonds; precious qualities that make it
worth paying that little bit extra for.
THE COLLECTIONS:

The Diamond Collection

No gemstone expresses human emotions more powerfully
than a diamond After all, 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 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

Influenced by the mughal era Kundan work requires special

craftsmanship and a myriad of stages, each crafted by a
different set of highly skilled karigars.
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).
It is difficult for jewelers to ensure the purity and correct
grammage of the product since it involves so many stages.
However, Tanishq ensures the karatage and net wt of the
product.
The Colours of Royalty Collection

Colors of Royalty a range of exquisite studded jewelry,

reminiscent of the magical Victorian era. The collection is
inspired by the classic design essence and sensibilities found
in the architecture, fashion, design, drapes and patterns of
the Victorian period. Tanishq has incorporated the
timelessness of these styles into exquisite jewelry designs to
present a collection where fashion and tradition converge.
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.
This exclusive collection was launched at the Ponds Femina
Miss India 2006, 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

The collection comprises designs, 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.
Rubies have been associated with prosperity, passion and
have been the most coveted gemstone for many years.It is a
must have for a Indian women.This range attempts to strike
a balance between convention and fashion by creating
designs suitable for the progressive Indian woman, rooted in
her tradition.
This line of Ruby studded jewelry from Tanishq is available in
both 18k and 22k. This launch reiterates Tanishq's focus on
catering to region specific tastes and preferences. India
offers great potential for the Moham collection where Ruby
studded jewelry enjoys great popularity and acceptance.
Consumer survey indicates that women attach great
inspirational value to rubies, second only to diamonds.

The Aria Collection

Aria is a collection of variety of everyday jewellery which
depict various moods and feelings:

Mysteries of love
Mysteries of passion
Mysteries of envy
Bewitching
Fascinating
Enchanting
Hypnotizing
Sensuous
Captivating

Exquisite crowns and jewelry

Tanishq, India's most innovative jewelry brand, unveiled the

awe-inspiring set of crowns and its 'Colors of Royalty' range
of jewelry, specially crafted for India's leading beauty
pageant, Femina Miss India 2007.
Tanishq has built itself a reputation of bringing innovative
designs that suit the needs of "the ever-changing never-
changing" Indian woman.The crowns have been designed to
convey the essence of India through the use of distinctive
motifs such as the traditional and auspicious 'teeka' - the
Indian touch to the contemporary styling. Crafted with
painstaking detail, each of these crowns convey a story; a
story of their "ORIGIN". Inspired by interplanetary
movements and colors of flora and fauna, these tiaras are a
stunning combination of trillions, baguettes, round brilliant
cuts, princess, pears and specially cut colored crystals. Each
crown weighs about 450 gms and has a special spring
mechanism designed to fit perfectly on any size or shape of
head.

The inspiration behind each crown is distinct and

personifies the spirit of the title.

Miss Universe: This crown has the perfect cosmic blend of

elements, very like the universe itself. The large red stone,
set slightly on the side, is the symbolic and stylised 'teeka'.

Miss Universe: This crown has the perfect cosmic blend of

elements, very like the universe itself. The large red stone,
set slightly on the side, 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,
sitting snugly on the forehead of the wearer. And of course
the vivid rectangular blue stone that expresses the teeka of
victory, and sets off the varying hues of the sea on the rest
of the crown.

Miss Earth: This crown derives its inspiration from the

essence of nature- her flora and fauna. Based on the
fabulous colours and movement of the peacock and its
feathers, this stunning piece is an intriguing study in
harmony and contrast.

The jewelry crafted beautifully with interspersion of

diamonds and colored stones, is an ode to the ecstatic
beauty and supreme power behind every woman. The
contemporary styling has been brought to life with sensuous
curves, balance, rhythm and symmetry of classic Indian
motifs in an unconventional synthesis. These beautiful and
vibrant gemstones in different shapes, 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.

Tanishq has translated the timelessness of these designs to a

modern context and brought to life a collection where
fashion, design and tradition blend perfectly.

TANISHQ FOR YOU

At Tanishq its not just the products, it’s the experience that
matters. We make sure that we give you the premium quality
of not only product but service as well. 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.

There are host of value added services that you can avail of
at Tanishq like the Golden Harvest Savings Scheme, Gift
Voucher purchase, Exchange of gold and diamonds etc.

Golden Harvest Saving Scheme

Tanishq’s “Golden harvest Savings Scheme” is one of the

most lucrative savings schemes, that enables to save each
month with Tanishq and plan for wedding jewelry purchases.
Your monthly installments are safe with us, whereas savings
at home could easily get spent. This scheme provides you
with much better returns than other saving options like bank
deposits or post office savings schemes. In addition,
Tanishq’s special bonus at the end of the scheme period
helps you stretch your jewelry budget.

How much money must one invest to enroll in the

Savings Scheme?

You need to invest only Rs.500/- per month to enroll. You

could also deposit a larger sum, as long as they are in
multiples of Rs.500/- You can choose from two convenient
savings scheme options- an Annual Plan (12 month
installments) and an Extended Plan (18 month installments).

BONUS:
• 60% of monthly installment in Annual Plan

• 130% of monthly installment in “Extended Plan”

At the end of the scheme period, pick up Tanishq jewelry of
your choice worth the amount deposited plus the BONUS

Installment Bonus for 12 Bonus for 18

Amount (Rs) months scheme months scheme
500 300 650
1000 600 1300
1500 900 1950
2000 1200 2600
2500 1500 3250
3000 1800 3900
4000 2400 5200
5000 3000 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, a single gold
rate is maintained for buying or selling gold jewelry. 8% of
the value is deducted for costs involved with testing, refining
and taxes for the jewelry given by the customer.

When you exchange any Tanishq gold coin with jewelry, you
get the benefit of the current gold rate and full value
exchange without deduction. When you exchange any other
bank’s gold coin with jewelry there is a 4% deduction on
value. 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?
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.

At Tanishq, when you exchange diamond jewelry purchased

from us it is exchanged for its current value, 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.
These are available at all Tanishq showrooms across India
and are also redeemable across the country, Gift vouchers
are available in the following denomination Rs. 2501/-, Rs.
5001/- , Rs. 10001/- and Rs. 25001/- So now you no longer
need to worry about gifting your loved one, something of her
choice!

Purity Checks

Purity checks allow lovers of the yellow metal to test the

purity of the gold they already own. Playing a significant role
in this is the Karat meter, which is the most scientific
measure of purity in the world. It uses X-rays to give an
exact reading of the purity of gold in just three minutes,
giving the consumer an unmatched benefit when buying or
selling gold. It is in fact the most scientifically proven, non-
destructive means of testing the purity of gold. Due to its
excellent precision, 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.

Anuttara

You can also become the member of Tanishqs loyalty

programme Anuttara and avail of various discounts and
priveleges.

TANISHQ RETAILING
Tanishq ventured into jewellery retailing in 1996 through
exclusive stores, both company owned and franchisee
outlets, a concept unique to branded jewellery segment at
that time. 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. 1250 crores in the last fiscal.
This success of Tanishq is a result of an exclusive blend of
exquisite designs, trust and reliability, innovation, highly
focused communication strategy and innovative retail
strategy.
innovation have been the hallmark of Tanishq all these years.
Tanishq has constantly formulated an innovative product
strategy this journey in line with the evolving consumer
tastes. Tanishq Design Studio has created exquisite and
varied collections like Fashion earrings, Everydays, high-end
Zoya collection among others aimed at distinctive consumer
segments. Similarly Tanishq has undertaken several unique
retail initiatives keeping in mind the customer demand for a
world class shopping experience. As such Tanishq retail
identity has evolved over the years to offer large format and
concept stores that reflect the brand’s philosophy of being
“Revitaliser of Tradition”.

Commenting on Tanishq’s success story, Mr. C K

Venkatraman, COO, Tanishq, said "We have been able to
capitalise on the trends of the local jewellery markets by
building on our solid financial strength, market-leading brand
position, wide network, local sourcing strategy, a
management model of excellence and, most importantly, a
philosophy of customer care. In the future, the key to
building stronger competitiveness will lie in enhancing
network coverage, brand equity and logistics. Amid the keen
competition in the Indian jewellery market, only the strong
player can emerge victorious."

Tanishq’s retail strength goes beyond its innovative identity

and extensive reach. Tanishq has undertaken several unique
retail and marketing initiatives like creating purchase
triggers like Doctors Day / Professional Day etc that were
unexplored avenues in the industry. Tanishq has also
endeavored to be part of every occasion in an Indian
woman’s life through festive promotions, customer contact
programmes as well as through Anuttara, Tanishq’s exclusive
consumer reward programme etc.
Following more than 40% percent growth in operations last
year, Tanishq will invest extensively during 2008 in
marketing and retail initiatives to further develop the
market. In addition, Tanishq will build new logistics centres
and upgrade existing ones, laying a solid foundation to meet
future competition

Tanishq is the first and only jewellery brand to have

organized mass jewellery retail chains across the country. As
our company expands, more and more people will be able to
share our mindset. Brand Tanishq is for every Indian woman;
it is at all times keyed-in to their ever-changing demands,
moods and tastes. It conveys a feeling of self-confidence and
individualism that characterizes the Indian woman. The
offerings are in tune with fashion and yet do not lose touch
with tradition.”

Tanishq the "Revitaliser of Tradition"

Tanishq has opened first-of-its-kind concept stores at Fort

Knox Kolkata, South Extension Delhi, Kormangala Bangalore
and Bund Garden Pune . 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.

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 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.
The theme 'Revitalizer of Tradition' has been incorporated in
all the design aspects for the new concept stores. The stores
have a contemporary feel while retaining the flavor of the
past. 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.

Tanishq has plans to extend its retail experience to a larger

consumer base by launching more concept stores across the
country.
 MARKETING
Marketing Equals the Four Ps

Part of marketing is identifying the mix of "Ps" that makes

your service unique. This is also called your marketing mix.
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. 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.
• Determine what the target consumer desires.
• Assess whether you have any advantages over your
competition in delivering the desired service.
• Choose the position that is most valued by the
consumer.

PLACE
PRODUCT PROMOTION PRICE (COST)
(DISTRIBUTION)
Features Location Publicity List Price
Optional Frequency ofSales
Discounts
Services Service Promotion
Product Personal
Transportation Credit Terms
Quality Selling
Staff Quality Distributors Advertising Inclusive/Not
Style Inventory Mailing List Remoteness
Brand Name
Packaging
Guarantees

Tanishq has excelled in 4 P’s of marketing and hence it is the

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

In the 1990s, a number of brands entered the Indian

jewellery market. In 1995, Mumbai based jewellery exporter,
Gitanjali Jewels, started selling 18-carat gold jewellery under
the brand name of Gili. Su-Raj (India) Ltd. launched its 22-
carat gold and diamond jewellery in 1997. Other well known
domestic players included Tribhovandas Bhimji Zaveri,
Mehrason's and P. C. Chandra. Among the foreign players
who entered the market were Cartiers, Tiffany, De Beers and
Ashton Mining.

Titan realized that there was a huge untapped market for

branded jewellery in India. The critical success factors in the
business were quality, fashionable design, and good after-
sales service. Titan also observed that the changing
lifestyles demanded lighter and trendier jewellery.

After its launch, Tanishq faced several problems. With its

original focus on exports, Tanishq's designs had been
conceptualized for the Western markets and were introduced
in India without any alterations. Formal consumer surveys
showed that though brand awareness was quite high, it
suffered from several negative perceptions. Many potential
customers thought the products were over priced and
associated the brand only with the rich.
Hence, Titan decided to change its strategy on two fronts:
 Value proposition
 Retailing.

Since the European designs in 18-carat gold did not find any
takers in 1997, Tanishq introduced 22-carat ornaments.
Customer surveys revealed that gold jewellery was not
bought so much for design as for value. Titan also decided to
do away with the shop-in-shop formats and started retailing
its jewellery through exclusive Tanishq outlets from 1998.
Titan realized that, given the diverse nature of Indian
ethnicity, it would have to satisfy the tastes of all regions.
So, the designs became more ethnic.

Titan also decided to transpose designs by stocking Bengali

designs in Delhi, Keralite designs in Tamil Nadu and typical
designs from Tamil Nadu in Bombay in order to appeal to a
variety of people. The same year, Tanishq entered the
studded jewellery segment, which it had ignored for long.
Titan also tapped institutional customers also. In 1998, it
launched the corporate gold gift scheme - 'When you want to
say thank you, say it in gold'. In 1999, Tanishq delivered gold
coins worth Rs. 20 crores to Maruti Udyog Ltd., to be given
away as gifts to Maruti car owners. In early 2000, it made
miniature gold cars for Hyundai Motors to be given to select
dealers.

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.
 THE JEWELLERY MARKET

Jewellery play a significant role in Indian customs and

traditions, making this sector integral to the economy and
one of the fastest growing industries in the country.
Worldwide, the gems and jewellery industry has been
growing at a good pace and is currently estimated at over
US$ 130 billion. In India, it accounts for nearly 20 per cent of
total Indian exports. It provides employment to 1.3 million
people directly and indirectly.

The Indian market is laden with gold jewellery of varying

karatage, which has seen huge appreciation in value terms
in recent times.

The Gold Rush

In the late 1990s, the Indian jewellery market witnessed a

shift in consumer perceptions of jewellery. Instead of being
regarded as only an investment option, jewellery was being
prized for its aesthetic appeal. In other words, the focus
seemed to have shifted from content to design. Trendy,
affordable and lightweight jewellery soon gained familiarity.
Branded jewellery also gained acceptance forcing traditional
jewellers to go in for branding. Given the opportunities the
branded jewellery market offered; the number of gold
retailers in the country increased sharply.

Branded players such as Tanishq, Oyzterbay, Gili and Carbon

opened outlets in various parts of the country. Traditional
jewellers also began to bring out lightweight jewellery, and
some of them even launched their in-house brands.

However, the share of branded jewellery in the total

jewellery market was still small (about Rs. 10 billion of the
Rs. 400 billion per annum jewellery market in 2002), though
growing at a pace of 20 to 30 percent annually.
The branded jewellery segment occupied only a small share
of the total jewellery market because of the mindset of the
average Indian buyer who still regarded jewellery as an
investment. Moreover, consumers trusted only their family
jewellers when buying jewellery.

Consequently, the branded jewellery players tried to change

the mindset of the people and woo customers with attractive
designs at affordable prices.

Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only

the Minerals and Metals Trading Corporation of India (MMTC)
and the State Bank of India (SBI) were allowed to import
gold.

The abolition of the Gold Control Act in 1992, allowed large

export houses to import gold freely. Exporters in export
processing zones were allowed to sell 10 percent of their
produce in the domestic market.

In 1993, gold and diamond mining were opened up for

private investors and foreign investors were allowed to own
half the equity in mining ventures.

In 1997, overseas banks and bullion suppliers were also

allowed to import gold into India. These measures led to the
entry of foreign players like DeBeers, Tiffany and Cartiers
into the Indian market. In the 1990s, the number of retail
jewellery outlets in India increased greatly due to the
abolition of the Gold Control Act.'

This led to a highly fragmented and unorganized jewellery

market with an estimated 100,000 workshops supplying over
350,000 retailers, mostly family-owned, single shop
operations.
In 2001, India had the highest demand for gold in the world;
855 tons were consumed a year, 95% of which was used for
jewellery.
The bulk of the jewellery purchased in India was designed in
the traditional Indian style. Jewellery was fabricated mainly in
18, 22 and 24-carat gold. As Hallmarking was not very
common in India, under-caratage was prevalent.

According to a survey done by the Bureau of Indian

Standards (BIS), most gold jewellery advertised in India as
22-carat was of a lesser quality.

Over 80% of the jewelers sold gold jewellery ranging from

13.5 carats to 18 carats as 22-carat gold jewellery. The late
1990s saw a number of branded jewellery players entering
the Indian market.

Titan sold gold jewellery under the brand name Tanishq,

while Gitanjali Jewels, a Mumbai-based jewellery exporter,
sold 18-carat gold jewellery under the brand name Gili.

Gitanjali Jewels also started selling 24-carat gold jewellery in

association with a Thai company, Pranda

Su-Raj (India) Ltd. launched its collection of diamond and 22

-carat gold jewellery in 1997. The Mumbai-based group,
Beautiful, which marketed the Tiffany range of products in
India, launched its own range of studded 18-carat jewellery,
Dagina.

Cartiers entered India in 1997 in a franchise agreement with

Ravissant. Other players who entered the Indian branded
gold jewellery market during the 1990s and 2000-01
included Intergold Gem Ltd., Oyzterbay, Carbon and
Tribhovandas Bhimji Zaveri (TBZ).
Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for
investment rather than for adornment. Jewellery made of 18-
karat gold was not favored as it was considered a poor
investment. Confidence in the local jeweller was the
hallmark of the gold jewellery trade in India. A jeweller or
goldsmith in a local area had a fixed and loyal clientele.

The buyer had implicit faith in his jeweller. Additionally, the

local jeweller catered to the local taste for traditional
jewellery. However, since the late 1990s, there was a shift in
consumer tastes: women were increasingly opting for
fashionable and lightweight jewellery instead of traditional
chunky jewellery.
There was a rise in demand for lightweight jewellery,
especially from consumers in the 16 to 25 age group, who
regarded jewellery as an accessory and not an investment.
The new millennium witnessed a definite change in
consumer preferences. According to Samrat Zaveri, 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."

In October 2002, Trendsmith conducted a survey to

understand the shifting needs, motivations and aspirations
of consumers in the jewellery market, and to identify new
trends and opportunities. The research study arrived at the
following conclusions:

• The Indian market was witnessing an accelerated shift from

viewing jewellery as an investment to regarding it as
aesthetically appealing ornaments. The focus had shifted
from content to design.
• The younger generation was looking at trendy,
contemporary jewellery and clearly avoiding heavy,
traditional gold jewellery.

• The consumer wanted a wider selection at a single

convenient location and expected an international shopping
experience.

• The Indian consumer was willing to experiment with new

designs.

In the late 1990s and early 2000s, with the increase in the
number of designers from design schools such as the
National Institute of Fashion Technology (NIFT), a wide range
of new designs became available. In addition, the growing
number of manufacturers needed a retailing platform with
global and national reach. All these led to the proliferation of
branded jewellery players.

Tanishq - Strategies for Wooing Customers

In the late 1990s, players in the branded gold jewellery

market formulated strategies for wooing customers.
According to Jacob Kurian (Kurian), Chief Operating Officer of
Tanishq, the challenges were many.

As the jewellery market was highly fragmented, lacked

branding, and allowed many unethical practices to flourish,
Tanishq worked hard on a two-pronged brand-building
strategy: cultivate trust by educating customers about the
unethical practices in the business and change the
perception of jewellery as a high-priced purchase.

Said Kurian, "We are changing the attitudes of customers

from blind trust to informed trust." To increase its
marketshare, Tanishq formulated a strategy for luring people
away from traditional neighborhood jewellers. Tanishq's
strategy was to create differentiation and build trust.
According to Kurian, 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."12 The
second part of the strategy was to project Tanishq as an
unimpeachable mark of trust. According to Kurian, "If
differentiation plays the role of primary attraction, trust
takes care of lifelong loyalty."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. For a national brand a generic design concept
with regional variations had to be evolved. For this, Tanishq
set up a seven member in-house design team and also
outsourced designs from freelance designers.

The designers travelled the length and breadth of the

country to get feedback on Tanishq's designs and learn
about customer preferences. On the basis of this feedback,
each showroom could select the designs it would carry. To
stay ahead of competition from local jewellers, Tanishq
decided to focus on quality control. In 1999, it introduced
caratmeters which showed the purity of gold.

In fact, Tanishq's USP was the purity of its gold. Accordingly,

the company's ad campaigns emphasised the purity aspect
of all Tanishq ornaments. In November 2002, Tanishq
introduced a new collection of jewellery called 'Lightweights.'

The collection featured neckwear, earrings, bangles, rings

and chains in 22 karat gold with prices starting at Rs 1,100.
It also launched Lightweight Diamonds, with prices starting
at Rs 3,000. Tanishq focused not only on urban markets, but
small town markets as well. Real estate was less expensive
in the small towns than in large urban centres.
Besides, competition from stores in small towns was less stiff
than competition from the large jewellery stores in the
metropolitan cities. According to Kurian, the best returns on
investment came from small towns.
All That Glitters is Not Gold

Branded jewellery players will continue to face lot of

competition from local jewellers. In order to gain
marketshare, 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.

To compete with traditional players, branded players must

also find some way to differentiate themselves. While the
success of a particular brand will depend on differentiation,
affordability and quality will be a key element in sustaining a
brand. In addition, branded players require focused
advertising and astute salesmanship to compete with
traditional jewellers.

Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili

and Trendsmith- several regional players have opened
branches to leverage the trust and reputation that they have
built up over the years. This is going to add to the
competition in the branded jewellery market. Most of the
branded jewellery players in India focused on yellow gold;
only a few of them experimented with the pink and white
forms of gold. Some of the players also used diamonds and
platinum, which appear to have a good future in the Indian
jewellery market
 SOME OF TANISHQS COMPETITORS

Asmi

Asmi, one of the leading diamond brands of the country, was

launched, In 2002 by The Diamond Trading Company Ltd,
(DTC).
The Asmi diamond Jewellery Collection is crafted to
beautifully compliment and complete her. Asmi caters to the
women of substance & satisfies her mind for rewards
recognition, evolving to suite her style & Personality.
The brand has been endorsed by various celebrities such as
Kajol, Mandira Bedi & Perizad.
All these women epitomize the different strengths. An Asmi
woman is closely identifies with free-spirited, goal-oriented &
with an inner fire.

Nakshatra Diamonds

The world renowned Nakshatra diamonds were launched in

2000, with an equally dazzling Aishwarya Rai as its brand
ambassador. In the present scenario Nakshatra diamonds
occupy a leading position in the fashion diamond jewelry
segment. The traditional diamond is the most wanted design
among Nakshatra diamonds.
Nakshatra diamonds claim to shine your glamour and love
life. They have aptly put their slogan as "brightest circles of
light." Elegant and graceful Nakshatra diamonds are the
epitome of passion, attitude and independence.
Gili

Gili was launched in 1994, targeting mainly the youth who

wanted to celebrate Valentine's day. Since then, the brand
has clocked a turnover of Rs. 90 crores.
Nirvana Diamonds

Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched

in 1987 in India. Nirvana diamonds are targeting at fashion
conscious, modern and independent thinking women.
Internationally acclaimed Nirvana diamonds are
manufactured by using state-of-the-art technology. As a
proof of their quality Nirvana was among one of the brands
to offer lifetime warranty to its consumers.

D'damas Diamonds

D'damas Diamonds are part of Gitanjali Digico Group and

one of the earliest diamond houses established in India in
1966. On the present day D'damas Diamonds offer highly
modernized diamond cutting and polishing facilities at five
locations in 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 present
day the still expanding retail network centers of Adora
expands to 117 outlets in 47 cities of India. Adora means
glory in Spanish and claims that its diamond collection is
themed on love. Adora diamonds are for adornment of every
moment, occasion, and phase of life through its up and
downs.The Swaranjali signature collection of living legend
Lata Mangeshkar is a unique feature of Adora diamonds.
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, 2004. Kiah diamonds are
claims to be for celebrating womanhood. The brand name
'Kiah' means beautiful place. On the latest Kiah diamonds
have won the Best Showroom in the DTC Diamond Season
for 2005-2006.
 TANISHQ – MARKET RESEARCH

MARKET research On TANISHQ

Tanishq emerges as the best known brand with the highest

awareness and recall. The difference between the leaders
and the followers is always greater when the former have a
head start. And when the pace and efforts of the leaders
intensify, the possibility that they will continue to be at the
top is a foregone conclusion. The Solitaire - TNS Survey
shows that Tanishq is the best known brand across the three
cities of Mumbai, New Delhi and Bangalore, a finding which
lends credence to the leadership factors. More than 65 per
cent of the target audience had no hesitation in coming up
with the name, proving that the extensive branding exercise
undertaken by Tanishq (a division of the Tata group
company, Titan Industries) has paid off well. Two decades in
the business, over 70 retail outlets across the country and
pioneering efforts to make jewellery buying into an
unforgettable shopping experience - all these factors
combined to make the brand into a household name.

India's Top Ten Best Known Jewellery Brands

The Survey

The Indian jewellery industry is seeing unprecedented

activity on the market front with new entrants coming in all
the time. Consumer behavior also is undergoing a
transformation. 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.

"Men buy products while women choose brands," says

model-turned-designer and CEO of a billion dollar company,
Kathy Ireland, a fact which jewellery brand managers in India
will not refute. Hence the Solitaire - TNS Survey across
Mumbai, New Delhi and Bangalore was targeted solely at
women.

While the sample size was small, 600+, the fact that the
target group was covered in and around shopping malls,
banks, corporate areas and commercial zones, made the
sample more relevant to the objectives. The survey was
conducted through personal interviews over a period of 15
days.
What Did Women Really Buy?

An interesting question is whether there is a difference in

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

While Tanishq and a few other regulars do occupy women's

mind space, the good news for other brands is that women
are not unduly influenced by the aspirational longings of
their hearts. A long history of fascination for the yellow metal
as a status symbol and as an instrument of security and its
easy convertibility to cash has most women, both working
and non-working, picking up gold jewellery without precious
stones as their most preferred jewellery. With the economy
moving upwards and income levels increasing, gold
consumption in India is showing tremendous growth. 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.

22 carat yellow gold jewellery is the most preferred

gold jewellery.
 Diamond studded jewellery is the next highly preferred.
 40 per cent of the working women are willing to try new
jewellery outlets.
 32 per cent of non-working women opt for this too.
Where Do Women Buy From?

As constant as their liking for gold, Indian women are totally

rooted in the choice of the place from where they buy their
jewellery. In this case, the traditional/independent jeweller
seems to have no competition at all from the new generation
brand stores, malls, etc. But there are changes happening.
Working women, the survey points out, are more open to
trying out branded and new retail outlets. With an
amalgamation between the old and the new marketing
strategies, independent/family jewellers have also created
indelible brands. Thus, in the final reckoning, most women
are brand-conscious and opt either for the ones that are
highly visible or those that have been embedded in their
buying culture through family association.

TANISHQ - THE TURNAROUND STORY

When we started out we didn't think that we could achieve

this, but now being jewellers to the nation doesn't seem so
distant."
- Tanishq COO, Vasant Nangia, in March 2000.

The Unsuccessful Launch

In 1995, Titan Industries, India's leading manufacturer of

watches, launched the Tanishq range of gold watches and
jewellery. Till then, the Indian jewellery market was to a large
extent unorganized, with a few recognized names such as
Tribhovandas Bhimji Jhaveri and Mehrason's. Tanishq, an
entirely new concept in the Indian market, thus had to
struggle hard to be accepted by the customers. Industry
watchers were extremely skeptical of Tanishq and doubts
were being cast over its prospects. Tanishq began by offering
jewellery in the 18-carat gold range, with designs borrowed
heavily from contemporary European brands. The company
justified its decision saying that it wanted to be 'different'
from the traditional Indian offerings.

Tanishq performed very badly in the next three years,

posting a huge loss in 1997-98, proving its detractors right.
Jacob Kurian, Tanishq's chief operating officer admitted,
"Tanishq, as a concept, was far too ahead of its times." Even
if one agreed with Kurian, it could not be denied that Tanishq
did commit mistakes.

Analysts decreed that the company's strategies were wary.

At this point, Tanishq took various steps to correct the
mistakes it had committed and very soon, posted its first
ever operating profit in 1999. In 1999-00, sales doubled to
Rs 1532 million against Rs 743.8 million recorded in 1998-99
and reached Rs 2000 million in 2000-01. Tanishq fared
equally well on the export front also with heavy exports to
UK, US, Australia and West Asia.

Tanishq was the largest overseas chain in US with 1,200

outlets. In the year 2000, exports contributed 10% to the
company's turnover. The story of Tanishq, once written off as
a losing proposition, making a remarkable turnaround was an
example of a company single-mindedly working to make its
own mark in the tradition bound Indian jewellery market.
Behind this success was, of course, a well-planned and well-
executed marketing plan.

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
company, incorporated in July 1984 in Chennai, was started
in technical collaboration with France Ebauches (a French
company), one of the world's largest manufacturers of watch
movements. Initially involved in the watches and clocks
business, Titan later ventured into the jewellery businesses.
The company was India's leading manufacturer of watches,
marketed under the Titan and Sonata brand names with a
25% share of the total domestic market.

Titan established its first manufacturing facility in Hosur,

Tamil Nadu and its first satellite watch assembly unit at
Dehradun, Uttar Pradesh was started in 1990. In 1992, Titan
set up a joint venture, Timex Watches Limited, with Timex
Corporation of USA to market Timex watches in India.1 And
in 1995, Titan changed its name from 'Titan Watches Ltd.' to
'Titan Industries Ltd.' in order to change its image from that
of a watch manufacturer to that of a fashion accessories
manufacturer. In the same year, it also started its jewellery
division under the Tanishq brand. At this point of time, the
jewellery business was highly localized and the concept of
branded jewellery did not exist. In the late 1990s, India had
around 0.2 million jewellers scattered across the country.

Jewellery had predominantly been used as an investment

rather than adornment. Hence, a change in the perception of
jewellery from an asset to a fashion accessory was extremely
difficult to bring about. People generally bought gold from
the same family jeweller they had trusted implicitly for
generations. Moreover, these jewellers made the jewellery to
order and often bought back their products at the prevailing
market rates.

Thus, from the very beginning, Tanishq found it hard to

overcome the Indian consumer's preference for buying
traditional jewellery only from family jewellers. The sleek and
contemporary designs being offered did not go down well
with the Indian customer who was used to heavy, traditional
designs.

Vasant Nangia, erstwhile Chief Operating Officer, Tanishq

said, "When we launched the Tanishq range, our designs
were not appreciated initially as they were believed to be
extremely Western. Also, we offered only 18 carat gold."
Over a period of time, Tanishq's research revealed many
other loopholes in its strategies.

Setting Things Right

Tanishq found out that it had gone wrong mainly in two areas
- the product proposition and retailing. Initially with a focus
on the export market, its designs were predominantly
Western, and the same line of jewellery was sold in India as
well. However, when it shifted its focus to the domestic
market, it was unable to sell these designs. Therefore the
first step was to change the brand positioning from that of
an elitist and Westernized offering to a more mainstream,
Indian one. The 18-carat jewellery range was expanded to
include 22 and 24 carat ornaments as well. Tanishq also
made attempts to redefine traditional styles in its designs.
Tanishq realized that, given the diverse nature of Indian
ethnicity, it would have to cater to tastes of all regions

Therefore, the emphasis shifted from the erstwhile modern

designs to more ethnic ones and traditional ornaments
(based on designs from various states) were launched. The
company also began seasonal and localized promotions
based on Indian festivals, such as during Durga Puja in West
Bengal, Onam in Kerala, Diwali in north India, etc. Johnson
Verghese, divisional head, sales and marketing, said, "We
also decided to go in for transmigration of designs. 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. These designs, though Indian, provided
variety to what the people in a particular area were used to
seeing."

Tanishq's team of in-house designers came out with about

3,500 designs based on current trends and the feedback
from stores. At least 10% of these designs were changed
every quarter and fresh ones were added to the stock.

Tanishq gave complete freedom to the retail outlets to pick

up designs, which they thought would sell in their stores.
Almost all the outlets stocked the 'best selling' range of
designs, which did well across the country.

Tanishq was now pitted directly against the traditional

jewellers who were offering similar ornaments. In order to
add some value proposition to rise above the competition,
Tanishq decided to address the issue of gold purity, which
was most important to the customers.

Traditionally, conventional jewellers used the touchstone2 to

test the purity of gold. Apart from the fact that the
customers did not trust the method, it was also alleged that
a slight amount of gold was always lost while testing. The
customers had to accept this for want of an alternative. In
1999, Tanishq introduced the revolutionary concept of
Karatmeters in its retail boutiques. The Karatmeter used X-
rays to give an accurate reading of the constitution of gold in
the ornament within three minutes. Imported from Germany
at a cost of Rs 1 million each, Karatmeters though
expensive, proved to be the biggest USP for Tanishq in the
coming years.
Fact, its sales increased by 20-30%. The concept was later
on heralded as a bold step towards professionalizing the
Indian jewellery business. In an attempt to elbow out
competition, Tanishq conducted tests on 10,000 ornaments
selected at random. In some cases the caratage was found
to be as low as 10% and almost 65% of the gold tested was
below 22 carats. As the caratage offered was on the lower
side in traditional jewels, the jewellers kept the making
charges very low to entice customers. This had become the
norm all over the country. Tanishq had to struggle hard to
break this convention.

As the concept of Karatmeter became more widely known,

customers began to realize that the rates they were paying
for Tanishq jewellery were indeed justified. A Tanishq official
commented, "They have begun to understand the total value
proposition that Tanishq offers."

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, replacing many
long-standing relationships with the traditional jeweller.
When Tanishq was launched, it sold most of its products
through multibrand stores. This did not help the Tanishq
brand to make its mark. Having realized this, Tanishq
decided to set up its own chain of retail showrooms in 1998.

This proved to be a very wise move as sales picked up

almost immediately. By July 2001, it had 47 'Tanishq
boutiques' in 37 cities – 12 were in the metros - Delhi,
Mumbai, Kolkata, Chennai and Bangalore, the rest in smaller
cities with a population of at least 0.5 million such as Trichy,
Nagpur, Amritsar and Patna.

The focus on smaller cities paid off well with the annual
growth being as high as 150% as compared to the 45%
growth in metros. The number of boutiques was expected to
reach 50 by the end of 2001 and to 70 by 2002. Tanishq's
efforts to standardize the price of its ornaments proved to be
another milestone in its success.

Gold prices differed across the country as they were based

on different parameters concerning the local markets. In a
bid to control gold price variations in different parts of the
country, Tanishq decided to have a standard gold price
across all its showrooms from March 2000.
The standard price was made binding on all Tanishq
showrooms. Tanishq based its gold prices on international
exchange prices, resulting in prices often being lower than
the local market prices. Nangia said, "We already have a kind
of standard pricing in place, but this would represent a
formalization of that system to the public." Tanishq even had
plans to link directly with the London Metal Exchange (LME)
for daily quotes in the future. Tanishq set up an ultra-modern
and large-scale manufacturing unit in Hosur, Tamil Nadu at a
cost of Rs 600 million. The unit had facilities like refining,
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%.

This in-house manufacturing facility was the main reason,

which enabled Tanishq to charge the same price across the
country. One of the company's most important initiatives was
customer service enhancement.

Tanishq launched a direct consumer contact programme and

conducted surveys to monitor store walk-ins and footfalls
and percentage of repeat customers.

The company also kept the entry-level price as low as Rs 600

(for a pendant) and offered a range, which far exceeded that
offered by any other jeweller. All Tanishq outlets gave a
100% return guarantee on its brand of jewellery and also
exchanged other jewellery after deductions depending on
purity.
A customer satisfaction measurement program was started
with the help of Customer Satisfaction Measurement
Management (CSMM), an associate of IMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a quarterly
basis. This gave the company the benefit of benchmarking
against local and international players and also aided in
improving repeat purchases. As a result, Tanishq was able to
directly link the remuneration of franchisees with customer
satisfaction. The company's corporate gold gift scheme
('When you want to say thank you, say it in gold'), launched
in December 1998 proved to be a major success. Tanishq
delivered 50,000 customized gold coins to 0.25 million
Maruti car owners nationwide as part of the 15th anniversary
celebrations of Maruti Udyog. By 2001, the scheme
accounted for almost 5% of the turnover and over 30
corporate clients like Coca-Cola, the UB Group, Whirlpool, the
TVS Group, Ceat and Liberty Shoes

The communication and promotion budget was increased

from Rs. 65 million in 1999-2000 to Rs 100 million in 2000-
01. A majority of this was spent towards advertising, while a
portion was also earmarked for promotions tailored to match
regional preferences. For instance, in New Delhi, which was
Tanishq's single largest market, substantial promotions were
carried out. The Rs 100 million was split into four parts,
comprising national-level spends (both electronic and print
media), regional budgets, direct mail and research. For the
first time, Tanishq initiated a long-term media plan, aiming to
give the brand a round-the-year presence and enhance
awareness. The communication focused on design and
quality instead of the price.

Future Prospects

The Indian branded jewellery market, though nascent, grew

at the rate of 20-30% during 1998-2000. Besides Tanishq,
other major players included Intergold, Gili and Carbon.
However, in the Rs 400 billion Indian jewellery market,
Tanishq's share was not even 1%.

Not willing to accept this as a 'poor show,' Tanishq saw it as

a vast opportunity instead. The company planned to attain a
2% market share in the next few years. Kurian said, "The
jewellery market is one of the largest consumer segments in
the country. It has an estimated 2,50,000 retailers with no
national or international brand and no corporate player.

Titan believes that this market is right for consolidation. A

consumer-oriented, highly ethical corporate player will have
great opportunity. Our growth rates in the past three years
have fully substantiated this hypothesis." Tanishq had
ambitious plans to invest in information technology and
utilize Intranets and the Internet to link all of its showrooms
to one another. There were also plans to do online
monitoring of sales and design popularity as well as using
the Internet to place orders. 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. In a highly innovative move, Tanishq tied up
with Countrywide Finance for providing pre-approved credit
line to the customers at selective outlets. This was expected
to boost sales significantly in the future. In May 2000,
Tanishq unveiled plans to surpass its parent company's
turnover by 2002. Jacob Kurian who had taken over as the
CEO the same month, said, "We have finally figured out the
jewellery business and should be solidly profitable, shorn of
any caveat, this year.”
 PROMOTION, ADVERTISING & PUBLIC
RELATION
Promotion

Tanishq launches ‘Free gold coin offer’ campaign

July 19, 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 5,000 and above.
"Get Gold free with Diamonds' caters to the aspirations of
Indian woman by providing an opportunity to own
diamond jewellery and win gold, which is a huge investment
opportunity.

Akshaya Tritiya is one of the four most auspicious days of the

Vedic calendar. 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.
T V Advertisement: Tanishq focus on the emotional
attachment in the advertisement like engagement, marriage
and such other occasions.

Print advertisement: In Leading news paper and famine

magazines are targeted to do the advertisement.
In short they know their target market and hence do
advertising as required.

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.
 TANISHQ IN THE NEWS

Priya Ganapati in Bangalore | July 04, 2003

Jacob Kurian, chief operating officer (jewellery), Tanishq isn't

tired of saying that the story of his company mirrors a
Bollywood movie. There's drama, celebration, then betrayal
in the family, followed by action and, of course, a happy
ending. Tanishq, the jewellery business group of Titan
Industries, is the blockbuster action thriller from the Tata
group.

After five years of consistent losses, the company, on

Thursday, 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. During 2002-03,
Tanishq recorded a sales turnover of Rs 389 crore (Rs 3.89
billion) -- at consumer prices. By 2007, it hopes to take that
to Rs 800 crore (Rs 8 billion).

Today, Tanishq has already become one of the top five

retailers in the country. It contributes 40 per cent to Titan's
business and is expected to account for 55 per cent by 2007.
By then, Tanishq's profitability will also be good enough to
offer 28 per cent return on deployment of 25 per cent of the
capital.

Sales
Year Sales (Rs crore)

1996-97 32
1997-98 38
1998-99 73
1999-2000 141

2000-01 188
2001-02 299
2002-03 389

It's a long way for a company that almost folded up before it

could turn in its first ever profit. Since, its launch, Tanishq
has not only been grappling the tough market conditions but
also internal strife and Doubting Thomases.

"Many people believe we should not be here today. They

have kept telling us that the business logic is against what
we set out to do. But I am glad we have proved them
wrong," says Kurian proudly.
The estimated Rs 40,000 crore (Rs 400 billion) gold jewellery
market in India is a rough one. There are over 300,000
jewellers, each powerful in his neighborhood.

Till the last two years, national players were almost non-
existent.
One of the largest consumers of gold, the Indian household
had a marked preference for 22-karat gold, as opposed to
the 18-karat designs that jewellery chains worldwide chose
to do their designs in. Not surprisingly, the skeptics were
asking what was Titan doing in the jewellery business?

In the late eighties, when India was facing a massive foreign

exchange crisis, Titan, the watches division, was told to look
for a way to earn its own foreign exchange. 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.

However, by the time it acquired the skills and set up the

plant, the world had changed. India no longer had a foreign
currency problem, imports were easy to come by, demand
had come down in the global market, supply had grown in
Asia and margins had become very thin.

Tanishq then decided to focus on the Indian market. In

August 1992 a pilot plant was set up and production started
in two years later. In 1996, Tanshiq launched its first store. It
was a hitherto untried concept. The jewellery business in
India was highly fragmented and ruled over by local players.
There was no national jeweler that people could buy from,
despite that India is the largest consumer of gold in the
world.

Clearly, 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. Titan estimates that up
customers and the Government is defrauded of up to Rs
5,000 crore (Rs 50 billion) annually due to unethical business
practices like under-karatage of gold, misrepresentation of
quality and tax evasion. As a company which was part of the
Tata group, known for maintaining high ethical standards,
Tanishq prided itself on delivering customer value through a
fair and transparent business model. But that wouldn't help.
Till 2000, Tanishq could not find its feet in the market and its
losses were mounting. In 1998-99 it showed losses of Rs
10.40 crore (Rs 104 million) though sales turnover was
increasing.
May 2000 turned out to be the defining period in the
company's history. The then managing director of the
company, Xerxes Desai had a choice between Bhaskar Bhat
and Vasant Nangia when it came to deciding who would
succeed him. Bhat won and was anointed as the next
managing director by Desai himself and Nangia became the
chief operating officer. Nangia was the hands-on man at
Tanishq. A twenty-year veteran of the group, he was the one
who had charted out the expansion plans, which included
increasing the number of exclusive boutiques to 67 from the
then 30 and launching a new men's range of accessories.

But a day after Bhat was announced at the successor to

Desai, Nangia quit. He took along with him six senior
executives of Titan. It was a blow that many thought would
sink the company.
"The entire sales and marketing team resigned on that day.
The company was rocked by what happened. Many thought
this would be finally the way Titan closed down its jewellery
business. After all, we were in our fifth consecutive year of
losses then," says Kurian. It seemed an ignominious way for
a Tata company to go. And like Kurian says it was too soon
for the movie to end.
So, a new and admittedly inexperienced team was put
together. The team had an onerous task on its shoulders. 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 had quite a few problems on its
hands then. Its high decibel media advertising wasn't
working. A stream of adverse media reports had instilled the
fear that its shareholders would pull out anytime. And worse,
it had very little time on its hands to show a turnaround.
But as Kurian saw it, Tanishq's woes were rather simple:
There were just not enough customers in its stores. "For a
retailing chain, that's the worst thing that can happen:
having no traffic in the stores," says Kurian. A customer
survey revealed multiple problems. Despite its high-blitz ad
campaign, many didn't know what Tanishq was about, others
found it too expensive and some felt that the product was
not for people like them. Either way, getting customers back
into the store became a priority.

Profits generated
Year Profits generated (Rs crore)

1996-97 - 10.60

1997-98 - 21.96

1998-99 - 10.40

2000-01 2.07

2001-02 1.87

2002-03 7.82

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.
The ploy worked. "We had customers waiting for the store to
open. Sometimes we had to call the security guards because
of the crowds. We just couldn't believe it," smiles Kurian.
There were other minor tweaks made too. Ad campaigns now
started to list out the products that Tanishq had. So
bracelets, rings, chains, pendants were explicitly mentioned
in each ad. A range starting at Rs 399 was launched.
The aim was to bring down the price barrier significantly.
Collections for the working women and a new set of
contemporary designs were brought into the stores. Almost
all of the efforts paid off. A year later, Tanishq had made its
first ever profit in the entire existence of the company. It was
a measly sum of around Rs 2 crore (Rs 20 million), yet it was
a beginning.

The next year, the company decided to write off some of the
financial baggage it had been carrying. Profits generated
dipped as a result but Tanishq was clearly on a revival. The
company changed quite a few of its original strategies along
the way. Tanishq had its first showroom in Chennai in 1996.
Today it has over 60 showrooms in 47 cities. Only six of
these are owned by the company. The rest are run by
franchisees. 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. In all, Tanishq
managed to limit its fixed asset investment to Rs 27 crore
(Rs 270 million).

Contribution to Titan's growth

Year Tanshiq contribution to Titan

(in percent)
1996-97 8
1997-98 14
1999-2000 24
2002-03 43

Post September 11 attack on the World Trade Center, the

volatility in the gold prices led to a steep decline in the
demand for gold. In 2002, the gold demand declined by 19
per cent, from 843 tonnes to 680 tonnes. However, Tanishq
was on a roll. It grew its retail sales during 2002-03 to Rs 332
crore (Rs 3.32 billion) from Rs 239 crore (Rs 2.39 billion).
Almost Rs 57 crore (Rs 570 million) came through corporate
sales and exports. Corporate and institutional sales had
become an unexpected money-spinner for the jewellers.

Today, Tanishq counts companies like Hindustan Lever

Limited, Pfizer, National Panasonic, UB Group, Tata Tea and
Tata Chemicals among its clients. "We saw corporate sales as
a new route to customer acquisition. Institutional sales help
us beat targets," says Kurian.

Since the last three years, Kurian and his team have brought
in quite a few changes to the way Tanishq operates. A steady
stream of jewellery collections each with its distinct target
audience has been launched. Aria, for seven stone diamond
jewellery, Hoopla, focused on diamond studded hoops and
Collection-G for lower priced gold jewellery with an
interesting twist are just a few lines that have come out of
the Tanishq stable in the last three years. Manufacturing has
been made more flexible. New Japanese manufacturing
machines have been introduced at the Hosur, Tamil Nadu
plant of the company. The emphasis is now on customisation
according to customer demands.

The challenges remain. Profit figures have yet to rise

significantly. In 2002-03, on revenues of Rs 389 crore (Rs
3.89 billion), Tanishq made a profit of only Rs 7.82 crore (Rs
78.2 million).
A slew of national brands have sprung up. From Nakshatra to
TBZ to Carbon, Tanishq has to battle a lot more at the
market place.
Yet, Kurian says now it's a great time to be in business. "We
believe jewellery business is one of the few 'China-proof,
WalMart-proof' kind of businesses," he grins

Tanishq News Headlines

Tanishq launches ‘Free gold coin offer’ campaign

July 19, 2008 (India)

Tanishq to spread its radiance with new stores

May 15, 2008 (India)

Celebrate Akshaya Trithiya with Tanishq jewellery

May 02, 2008 (India)

Tanishq Jodhaa Akbar collection - prêt

January 28, 2008 (India)

Royal Mughal appearance in Tanishq jewelry

January 28, 2008 (India)

Tanishq opens 3rd exclusive showroom in Chandigarh

November 20, 2007 (India)

100th store in Patna & still counting…Tanishq

October 26, 2007 (India)

Tanishq is a perfect gift for your sister!

August 18, 2007 (India)

Tanishq targets US jewelry market

April 09, 2007 (India)

Tanishq unveils coveted Miss India 2007 crown

March 23, 2007 (India)

Tanishq launches elegant fashion earring collection

November 16, 2006 (India)

US to shine with Indian jewellary

November 03, 2006 (India)

Celebrate DHANTERAS with exquisite jewellery from Tanishq

October 10, 2006 (India)

Tanishq Jewellery adds glamour to women's ensemble

October 04, 2006 (India)

Tanishq expects 15-20% sales gain this year

August 03, 2006 (India)

Tanishq to strengthen its presence

July 31, 2006 (India)

Tanishq launches Colors of Royalty range jewelry

April 17, 2006 (India)

Tanishq's 'up to 25 per cent off’ scheme

January 31, 2006 (India)

Tanishq introduces exquisite 'Paheli Collection'

July 02, 2005 (India)

Tanishq introduces exclusive 'Paheli' collection

June 24, 2005 (India)

Tata’s Tanishq registers sales worth Rs 570 cr in FY-05

May 06, 2005 (India)

Tanishq launches exquisite collection for women’s day

March 07, 2005 (India)

Tanishq and Titan declared ‘The Most Admired Brands Of

The Year’ at LIFA
January 27, 2005 (India)

Tanishq Launches Aria Collection

October 07, 2003 (UAE)

GLOBALIZATION
Titan opened its first Tanishq jewelry brand outlets in
Chicago and New Jersey by January 2008.

Company aims to expand this into a 10-store chain with

initial investment of US $6-7 million.

Tanishq has targeted the world’s biggest jewelry market,

through either franchisee or self-owned outlets. Currently, US
jewelry market is valued at around $16 billion.

The Indian jewellery manufacturer plans to launch its pilot

retail jewellery store in Chicago, US, in July. The store is
proposed as a 2000 sq.ft. Facility, where the jeweller would
retail 18 karat gold and diamond studded jewellery.

The designs at the store have been inspired and themed

basis the lifestyle of modern American women, with
concepts like Rain, 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-$12,000.

Tanishq would inch its way to open a second store in the next
three to four months, in New Jersey.