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A marketing project report on tanishq - Document

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1. MARKETING MANAGEMENT I FINAL PROJECT REPORT SUBMITTED BY: - 1
2. ACKNOWLEDGEMENT We are extremely thankful to for giving us the
opportunity toundertake this project in Marketing Management and for her overall
support,valuable guidance, astute judgment, constructive criticism and an eye
forperfection without which this project would not have been in its present shape. And
last but not the least; we are thankful to all our fellow classmates whomade valuable
contributions and constructive feedbacks towards the completion ofthis project. 2
3. ContentsExecutive
Summary................................................................................................................................
......5Evolution of
Tanishq ..................................................................................................................................
.7Growth of
Tanishq ..................................................................................................................................
....8Competitors......................................................................................................................
...........................9
Carbon....................................................................................................................................
.................9
Gili.........................................................................................................................................
.................104 Ps of
Marketing ..............................................................................................................................
.......11
PRODUCT.............................................................................................................................
..................11 PRODUCT
VARIETY.............................................................................................................................1
1
QUALITY..............................................................................................................................
...............11
DESIGN.................................................................................................................................
..............12 BRAND
NAME....................................................................................................................................
.12
SERVICES.............................................................................................................................
...............13
PLACE...................................................................................................................................
..................16
PRICING...............................................................................................................................
...................19Ansoffs
Model.....................................................................................................................................
......20BRAND
POSITION.............................................................................................................................
..........21SEGMENTATION...................................................................................................
......................................21 Niche
Marketing ..............................................................................................................................
......21 Psychographic
Segmentation.................................................................................................................21
Geographical
Segmentation...................................................................................................................22S
WOT
ANALYSIS............................................................................................................................
.............22
Strength..................................................................................................................................
...............24
Weaknesses............................................................................................................................
...............24
Opportunities..........................................................................................................................
...............24
Threats....................................................................................................................................
...............25THE MAKING OF A GREAT GLOBAL
BRAND..................................................................................................................................
.................................25RECOMMENDATIONS..................................................................
..............................................................29REFERENCES....................................................
...........................................................................................30 3
4.
BOOKS .................................................................................................................................
..................30
WEB.......................................................................................................................................
................30 4
5. Executive SummaryAn Indian Brand, which can make big in the global market, is
Tanishq from TataGroup of Industries. Tanishq is Indias largest, most desirable and
fastest growingjewellery brand in India. Tanishq today is Indias most aspiration fine
jewellerybrand with an exquisite range of gold jewellery studded with diamonds or
coloredgems and a wide range of equally spectacular jewellery in 22Kt pure
gold.Exquisite platinum jewellery and designer silverware is also part of the
productrange.Though they faced with many difficulty in the early stages they for about
six yearsthey then came with up with good strategies The Tanishq strategy for the
comingcouple of years relies on two things increasing penetration in the
domesticmarkets and going abroad in order to diversify its revenue portfolio.To push
penetration in other markets, Tanishq will use the shop-in-shop conceptthat it already
does in 50 stores across different West Asian markets. Thisreduces distribution costs.
Also, for the consumer it remains a Tanishq store andhelps us get a foot into the
market.Their main core competency is in designing a wide range of products. They
werethe first to come up with the idea of karat meter, which proves the quality of thegold,
to win the trust of the customer. 5
6. The Gems & Jewellery industryThe Gems and Jewellery (G&J) market essentially
comprises of sourcing,processing, manufacturing and selling of precious metals and
gemstones, such as,Gold, Platinum, Silver, Diamond, Ruby, and Sapphire etc. The G&J
market is asignificant contributor to the Indian economy, based on the size of the
domesticmarket and through its contribution to the countrys exports. India is the
largestconsumer of gold (around 20 percent of global consumption) and also the
largestdiamond processor (around 90 percent by pieces and 55 percent by value of
theglobalmarket.Indias G&J industry is highly unorganized and fragmented with 96
percentof the total players being family owned businesses. The gold processing
industryhas around 15,000 players, with only 80 having revenues over USD 5
million.India is also home to around 450,000 goldsmiths, 100,000 gold jewelers along
with6,000 diamond processing players and 8,000 diamond jewelers.The value chain of
the industry starts from sourcing and mining of the metals andextends to jewellery retail.
While India is not a major miner of previous metals andstones, the countrys inexpensive
and well skilled workforce makes it a worldleader in processing of diamonds. The
countrys jewellery retail sector is alsoexpected to evolve with a shift among consumers
towards branded jewellery,driven by greater quality consciousness.There are a few major
players in the G&J segment, with Rajesh Exports being themost dominant name. Other
key players in the field include Gitanjali Gems,Suhashish Diamonds, Su-Raj Diamonds,
Vaibhav Diamonds and Tanishq. Many ofthese players are focused on developing strong
brands, large retail operations,strengthening their core manufacturing operations and
building a stronginternational presence.Indias large population and rapid economic
growth offer significant opportunitiesfor growth of the industry. The emergence of
jewellery retail chains providecustomers with convenience and assurance of quality. The
entry of foreign playersis also likely to increase competition and provide consumers with
greater choice.Apart from the above, there are other factors that contribute to a favorable
outlookfor the industry. 6
7. Evolution of TanishqTitan came into existence in July 1984, when the Tata Group joined
hands with theTamil Nadu Industrial Development Corporation (TIDCO) to make a foray
into thewatch industry.Titan started manufacturing jewellery watches and jewellery in
1994. It set up itsfully integrated Rs. 400 million-jewellery plant in Hosur. The plant had
thecapacity to manufacture four tonnes of gold in a year. Titan launched theseproducts
under the brand name of Tanishq, in 1995. The name Tanishq, a blend oftwo words, tan
(body) and ishq (love), was coined by Xerxes Desai, the Vice-Chairman and Managing
Director of Titan.To change its image from a watch manufacturer to a fashion
accessoriesmanufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled
thecapacity of its Hosur plant to 4.18 million units in 1996 to meet the domestic
andinternational demand. From the late 1990s, Titans commitment to the
jewellerybusiness increased.When Titan launched Tanishq in 1995, the jewellery industry
in India valued at Rs40,000 crore was mostly unorganized, with around 3.5 lakh players.
Before 1992,only the Metal and Mineral Trading Corporation and the State Bank of India
wereallowed to import gold. In 1992, as part of economic liberalization, the
governmentabolished the Gold Control Act of 1962, allowing free import of gold. In
1993,private companies were allowed to enter the hitherto restricted gold anddiamond
mining industry. Foreign investors were allowed to hold up to 50%equity in mining
ventures. 7
8. Growth of TanishqRevenue in million Rupees 8
9. Competitors CarbonIn early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd.,
(Peakok) wasincorporated and Mahesh Rao (Rao) was appointed director. Peakok
realized thatthe Indian consumers relationship with gold jewellery would grow beyond
aninvestment need towards a lifestyle and personality statement.In 1996, within the
Peakok fold a new brand of 18-carat gold-based jewellerycalled Carbon was launched. In
2000-01 Carbons focus had always been to movejewellery from the vault to the dressing
table and bring the selling of jewellery outof heavily guarded jewellery stores. This was
achieved by persuading a fewlifestyle stores to add branded jewellery to their vast array
of products. Besidesselling from lifestyle stores, Carbon also sold its products as gift
items over theinternet. Like Tanishq, Carbon laid emphasis on design.Most of its designs
were contributed by students at the National Institute ofFashion Technology (NIFT)
through the diploma programme which the companysponsored. In addition, Peakoks team
of six designers, (headed by Rajeswari Iyer,an alumnus of a German design school who
had worked in the U.K., Germany andIndia) turned out around 180 to 200 styles in a
year, with 75 designs per style.At any point in time, there are around 600 designs of
Carbon on sale. The creation,manufacture and marketing of Carbon was different from
the making and selling oftraditional jewellery.It is made available at `shop-in-shop outlets
in large lifestyle stores (such asShoppers Stop, Ebony, Globus, The Bombay Store,
Lifestyle and Taj Khazana) andsome premium boutiques (such as the Helvetica in
Chennai).Carbon products were priced between Rs. 2,750 and Rs. 20,000 per piece.
Whilethe cost of traditional jewellery was negotiable, the cost of Carbon items was
fixedand nationally uniform.The brand is available at 50 outlets in 23 cities. 9
10. GiliGili launched a collection of traditional Indian ornaments made of 18-carat gold.
In1999, the Gili Gold range was introduced. This range included rings, pendants,earrings,
necklaces and bangles made of 24-carat gold. All Gili products came witha guarantee of
diamond and gold qualityGili distributed its jewellery priced between Rs. 500 and Rs.
40,000 throughlifestyle and department stores across the country to increase accessibility
amongits target segment, the 15 to 30 age group. Gili distributed its jewellery
pricedbetween Rs. 500 and Rs. 40,000 through lifestyle and department stores across
thecountry to increase accessibility among its target segment, the 15 to 30 age group.The
collection was promoted at college campuses with banners, pamphlets and afew
advertisements targeted at teens. Gili soon realized that just pushing its productwas not
enough; it also had to customize its products for special occasions.Following this, it
launched a Diamond Heart Collection specially designed forValentines Day. This
collection consisting of tiny, heart-shaped diamond jewellerywas well received by teens.
Special packaging, catchy advertising and extensivepress coverage contributed to the
success of the collection. Gili also made specialpromotional offers during festive seasons
like Christmas and Diwali. Havingcaptured the low price point market of Rs.2000 to
Rs.10, 000, the company isfocused on penetrating the premium market of customized
jewellery. For thisGitanjali jewels opened a jewellery salon, Gianti, to provide
customized jewelleryto clients in India. 10
11. 4 Ps of MarketingPRODUCT PRODUCT VARIETYTanishq today is Indias most
aspirational fine jewellery brand with an exquisiterange of gold jewellery studded with
diamonds or colored gems and a wide rangeof equally spectacular jewellery in 22Kt pure
gold. Exquisite platinum jewelleryand designer silverware is also part of the product
range.Tanishq designs and manufactures jewellery that is breath- taking,
contemporaryand yet has a tint of tradition. It produces 22 karat pure gold earrings that
come invarious shapes, sizes and designs. Some earrings are embedded with
preciousstones or colour gemstones. These jewellery sets are overwhelming and
couldprove to be apt for occasions such as marriage, festivities etc. Furthermore, theyalso
make bangles, chains, nose pins, pendants, finger rings, Mangal Sutras etc.They also
produce products made from silver such as deity idols etc. Recently,Tanishq has started
producing diamond jewellery that are affordable and stunning.The diamond jewellery
include collections such as: All Day Diamonds, Aria,Dewdrops, Tanishq Solo, Dancing
Diamonds etc. These collections come with acertificate of authenticity that states the
karatage, color and clarity of the diamond. QUALITYConsistency in delivering on their
promise - Tanishq promises superior qualityjewellery with purity in gold. It is the first
and only jeweller that guaranteesthe purity of its gold jewellery and certifies the quality
of the precious/semi-precious stones in writing. They claim and deliver the exact carats
and weight that they promise. Impurity ingold and not delivering what was promised is
one of the main problems theconsumers face when going for gold purchase. They
eliminated this and have builtits brand in trust. Tanishq now stands for quality and purity.
They even have goldmeters where one can check the purity of gold. Thus it has
established itself as ahighly ethical player in a market that was rated as having the highest
incidence ofunder karatage (Bureau of Indian Standards).It maintains its quality standards
in allits products wherever they are sold. This shows that they have a resolute core 11
12. purpose. This is what they will have to maintain even when they global. They havethe
right range of products for the different markets across the globe. Only theyhave to
remember their differentiating factor. The differentiating factor for Tanishqwill be the
experience and quality they will be giving the consumers when theycome to the store.
DESIGNWidely acknowledged as a design leader, Tanishq is known for its ability
todevelop specialized design collections. Each piece of jewellery is designed by a team of
award winning designers. In fact,Tanishq is the only jeweler to have a full- fledged
design studio with one of thelargest design teams in the country. Every product at Tanishq
is painstakinglycrafted to perfection. Diligent care and quality processes ensure that the
Tanishqfinish is unmatched by any other jeweller in the country.Tanishq was recently
adjudged the Most Admired Jewellery brand (for the thirdconsecutive time) in India at
the Images Fashion awards 2004. It has also beenjudged as the Images Retailer of Year in
the fashion category. Positioned as 9-to-5jewellery, the collection is stylish and modern
and is designed to suit all forms ofattire, western and Indian, casual and formal.
BRAND NAME"Jewellery is one of the last great commodity frontiers in India; it has
remained sobecause this market is very fragmented, very unorganized. Tanishq
hassuccessfully taken on the challenge of transforming this frontier into a
reliableconsumer space by bringing to it all the virtues and benefits that branding offers".-
Harish Bhat, CEO, Tanishq.Tanishq was established in 1995 and within ten years it has
become the largest andmost desirable brand in the jewellery segment in India. They have
constantlyintroduced new offering to their consumers and have come up with new
innovativeideas. The surveys showed that awareness of the brand was quite high.
Thecompany believes that young urban women, with independent incomes, are looking
12
13. at branded national jewellers. The brand believes that accretion to this segment isclearly
in its favour due to the modern contemporary image among women. SERVICES One of
the companys most important initiatives was customer serviceenhancement. Tanishq
launched a direct consumer contact program and conductedsurveys 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) andoffered a range, which far exceeded
that offered by any other jeweler. All Tanishqoutlets gave a 100% return guarantee on its
brand of jewellery and also exchangedother jewellery after deductions depending on
purity. A customer satisfactionmeasurement program was started with the help of
Customer SatisfactionMeasurement Management (CSMM), an associate of IMRB.
CSMM trackedcustomer satisfaction parameters for Tanishq on a quarterly basis.This
gave the company the benefit of benchmarking against local and internationalplayers and
also aided in improving repeat purchases. As a result, it was able todirectly link the
remuneration of franchisees with customer satisfaction.Since they have many stores
across the country they give guarantee on theirjewellery and also offer to repair it free of
cost anywhere across the country. Theyhave excellent after sales service and they have
been committed in providing goodand honest service.They welcomes you to exchange
your old gold jewellery for new designs. Toensure you get the right valuation for your old
jewellery, use scientific, reliableand transparent processes including testing it with the
Karat meter. 13
14. PROMOTIONThe Tata Group has promoted Tanishq as a jewellery store brand, which
competeswith close to three lakh traditional jewellers who dominate the domestic market.
Ithas launched new collections at a quicker rate than its competitors, and
conductedmarketing promotions and fashion shows to enhance the shopping experience
ofconsumers. Given the diverse nature of Indian ethnicity, Titan made the designsmore
ethnic to satisfy the tastes of all regions. Titan transposed designs by stockingBengali
designs in Delhi, Keralite designs in Tamil Nadu and typical designs fromTamil Nadu in
Bombay in order to appeal to a variety of people.Concept stores, the first of which,
costing Rs 10 crore, opened in Kolkata . Theidea of such a store was to harmonize the
tradition of the past with the modernityof the present. In 1998, it launched the corporate
gold gift scheme - When you want to say thankyou, say it in gold. In 1999, Tanishq
delivered gold coins worth Rs. 20 crores toMaruti Udyog Ltd., to be given away as gifts
to Maruti car owners. By 2001, thescheme accounted for almost 5% of the turnover and
over 30 corporate clients likeCoca-Cola, the UB Group, Whirlpool, TVS Group, Ceat and
Liberty shoes. Inearly 2000, it made miniature gold cars for Hyundai Motors to be given
to selectdealers.Tanishq has also endeavored to be part of every occasion in an Indian
womans lifethrough festive promotions, customer contact programmes as well as
through 14
15. Anuttara, Tanishqs exclusive consumer reward programme etc. Tanishq providesGift
vouchers in various denominations for gifting your friends and family.Tanishq, to set off
competition, launched Jodhaa Akbar collection and managedto get lot of marketing hype.
The collection is very pricey and suggested retailprice is between Rs 25,000 to Rs 15
Lakhs.One of the companys most important initiatives was customer
serviceenhancement. Tanishq launched a direct consumer contact programme
andconducted surveys to monitor store walk-ins and footfalls and percentage of
repeatcustomers. The company also kept the entry-level price as low as Rs 600 (for
apendant) and offered a range, which far exceeded that offered by any otherjeweller. A
customer satisfaction measurement program was started with the helpof Customer
Satisfaction Measurement Management (CSMM), an associate ofIMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a quarterlybasis.In 1999-2000 the
communication and promotion budget was increased from Rs. 65million to Rs 100
million in 2000-01. A majority of this was spent towardsadvertising, while a portion was
also earmarked for promotions tailored to matchregional preferences. For instance, in
New Delhi, which was Tanishqs singlelargest market, substantial promotions were
carried out. The Rs 100 million wassplit into four parts, comprising national-level spends
(both electronic and printmedia), regional budgets, direct mail and research. For the first
time, Tanishqinitiated a long-term media plan, aiming to give the brand a round-the-
yearpresence and enhance awareness.A customer survey revealed that despite its high-
blitz ad campaign, many didntknow what Tanishq was about, others found it too
expensive and some felt that the 15
16. product was not for people like them .So, Kurian and his team then decided tolaunch the
fifth anniversary celebrations of Tanishq that would offer discounts tocustomers and
induce them to come to the store. The ploy worked and they hadcustomers waiting for the
store to open.Ad campaigns also started to list out the products that Tanishq had.
Bracelets,rings, chains, pendants were explicitly mentioned in each ad. A range starting at
Rs399 was launched.The aim was to bring down the price barrier
significantly.Collections for the working women and a new set of contemporary designs
werebrought into the stores.Aria, for seven stone diamond jewellery, Hoopla, focused on
diamond studdedhoops and Collection-G for lower priced gold jewellery with an
interesting twistare just a few lines that have come out of the Tanishqs stable in the last
threeyears.One of Tanishqs more innovative ideas is to offer special schemes during
variousfestivals. Tanishq has also initiated a loyalty program called the Golden
HarvestSavings Scheme, which offers buyers the benefit of getting more jewellery
thanwhat they have paid for. The scheme allows consumers to plan future purchases
inadvance and pay for them in easy installments.Exchange offer - change impure gold for
pure 22 kt gold - attracted more people tothe stores. It is estimated that roughly 2.85 lakh
customers bought from - and closeto a million people went through - 53 Tanishq stores
across 41 cities. Since theEuropean designs in 18-carat gold did not find any takers in
1997, Tanishqintroduced 22-carat ornaments. After hitting six countries in the last four
years,Tanishq entered the $57-billion US jewellery market with two exclusive stores,
onein Chicago and the other in New Jersey, in the first quarter of 2007-
08.PLACETanishq jewellery is crafted in one of the worlds most modern factories.
Thefactory complies with all labour and environmental standards. Located at Hosur,Tamil
Nadu, the 135,000 sq. ft. factory is equipped with the latest and mostmodern machinery
and equipment. 16
17. Tanishq reached the century mark as it unveiled its 100th store in Patna at HathwaMarket.
Having embarked on the retail journey a decade ago, Tanishq today is thelargest jewellery
retailer in India. With a strong presence in 70 cities across India,unmatched collections
and assured purity, Tanishq has quickly become the firstchoice of discerning
customers.Tanishq opened 30 retail stores during FY08, taking the tally to 130
stores.Currently, the average store-size for Tanishq is 1,000-1,500 sq ft. The storesoperate
on the franchise model.Tanishq has undertaken several unique retail initiatives keeping in
mind thecustomer demand for a world class shopping experience. As such Tanishq
retailidentity has evolved over the years to offer large format and concept stores
thatreflect the brands philosophy of being Revitaliser of Tradition.Design and retail
innovation have been the hallmark of Tanishq all these years.Tanishq has constantly
formulated an innovative product strategy in this journey inline with the evolving
consumer tastes.Modern retail values and principles in the selling of branded jewellery in
India arealmost completely the handiwork of Tanishq. The brand has broken fresh ground
inretailing by creating exclusive outlets with hitherto unknown in-store ambience
andhospitality touchstones.Following more than 40% percent growth in operations last
year, Tanishq willinvest extensively during 2008 in marketing and retail initiatives to
further developthe market. In addition, Tanishq will build new logistics centres and
upgradeexisting ones, laying a solid foundation to meet future competition.Besides
catering to Indian consumers, Tanishq has successfully entered key exportmarkets such as
the US, the UK, the Middle East, Singapore and Australia. This istestimony to the brands
ability to craft products that meet the requirements ofvaried cultures and
sensibilities.Tanishqs retail boutiques are temples for the brand and are used as a
platform forcelebration, be it the launch of a new collection, a new marketing promotion
or afestival. This gives Tanishq outlets a unique appeal and consumers an opportunityto
heighten their shopping experience. 17
18. Tanishq gave complete freedom to the retail outlets to pick up designs, which theythought
would sell in their stores. Almost all the outlets stocked the best sellingrange of designs,
which did well across the country.In fact, industry experts recall a period when plain gold
gained space in Tanishqstores at the cost of studded jewellery. "It was perhaps an offshoot
of its expansioninto mini-metros and other towns where the company thought plain gold
will be inmore demand. It was not a well-researched move, says an industry expert.It
plans to open two pilot stores at Chicago and New Jersey with a retail format of1,800-
2,000 sq ft. Meanwhile, it plans to tap small cities by opening 15 Gold Plusoutlets, its
jewellery store brand for semi-urban markets. Launched two years ago,Gold Plus clocked
Rs 200 crore revenues during FY08. Tanishq has entered the USmarkets. This is an
amazing achievement for Titan Industries, said V Govindraj,Vice President, Tanishq.
Retail is a capital-intensive business. In America, having1,000 stores is not unusual.
Even for niche retailing, 200-300 stores are needed.But in India, although there are
several small scale unorganized jewellery markets,Tanishq is the first and only jewellery
brand to have organized mass jewelleryretail chains across the country. As our company
expands, more and more peoplewill be able to share our mindset. Tanishqs retail strength
goes beyond itsinnovative identity and extensive reach. Tanishq has undertaken several
uniqueretail and marketing initiatives like creating purchase triggers like Doctors Day
/Professional Day etc that were unexplored avenues in the industry. Following morethan
40% percent growth in operations last year, Tanishq will invest extensivelyduring 2008 in
marketing and retail initiatives to further develop the market. Inaddition, Tanishq will
build new logistics centres and upgrade existing ones, layinga solid foundation to meet
future competition.Add the world to this. After hitting six countries in the last four years,
Tanishq isentering the $57-billion US jewellery market with two exclusive stores, one
inChicago and the other in New Jersey, by the first quarter of 2007-08. S. Ravi
Kant,COO (international business division), Titan, says: We are not looking at the
NRImarket only. We want to understand the American consumer. He claims
thatTanishqs market research team is figuring out the market and a designer who
cancreate new products for it. 18
19. Traditional jewellers have been rebranding themselves and are expanding insmaller
towns to widen reach. "The emphasis for Tanishq will be on specialcollections, diamond
jewellery and bigger stores of about 4,500 sq ft,"Venkataraman said.Tanishqs team of in-
house designers came out with about 3,500 designs based oncurrent trends and the
feedback from stores. At least 10% of these designs werechanged every quarter and fresh
ones were added to the stock.PRICINGWe have very large collections of pendants,
earrings and fingerings in this pricerange Rs 2000-5000. Tanishq range of products start
at an accessible low of Rs.600 and the range - Solo, Aria, Diva, Hoopla, Lightweights,
Bandhan and the mostrecent, Colours - comprises wearable everyday jewellery which has
been designedfor the urban working woman.The Tanishq Valentines Day collection
includes pendants, earrings and fingerrings starting from Rs. 2,000 onwards. Daytimes
collection of all day diamonds,which starts at an affordable Rs. 1,960. The collection
combines traditional motifsin sleek contemporary lines with slight touches of black
rhodium. The up to 25 percent off offer by Tanishq is a unique opportunity. This
attractive offer has beenintroduced to benefit the customers and provide them with the
best price andproduct options. Affordably priced from Rs 2,500/- onwards the Tanishq
range ofdiamond jewellery is the ideal accessory for the customers.This collection
iscrafted using a special process called electro-forming. The jewellery is targeted
atcustomers who are looking for international designs, wearability and value formoney.
The new collection starts from a price range of Rs6,000 onwardsand available at all
Tanishq boutiques across the country.Tanishq offers gold and gem-set jewellery in over
6000 traditional,western and fusion designs. The Tanishq retail chain currently includes
19
20. 112 exclusive boutiques in 75 cities, making it Indias first and largestjewellery retail
chain.Ansoffs Model Market Penetration (Present product-present market) 1. Currently
Market Share of Tanishq is 2.9%.So Tanishq has a scope for increasing its market share.
2. Provide EMI by tying up with banks. 3. Find new applications to current users:
Increasing the versatility of the product in terms of usage. For example, provision for
using pendant as ear- rings, finger rings and vice versa. Market Development (Present
Product- New Market) 1. Expand geographically: Opening new outlets in new cities and
increasing the number of outlets in the existing cities. Diversification (New Product-
New market) 1. Related: Gold and diamond studded buckles in belts and footwear. 20
21. BRAND POSITIONTanishq has been projected as an impeachable mark of trust by
raising theawareness of the people about unethical practices in the jewellery business
andthen measuring the gold purity by caratmeter.Tanishq also has been positioned as a
branded jewellery of luxury rather thancommodity. It moves jewellery beyond investment
to the fashion and adornmentsector.SEGMENTATION Niche Marketing After its
inception in 1995 focus on exports, Tanishqs designs had been conceptualized for the
Western markets and were introduced in India without any alterations. Tanishq positioned
itself as an international brand for the Indian elite. The brand was targeted at a niche
market (However they later on started targeting the mass marketing since 1997).
Psychographic Segmentation Life Style: Tanishq has found that 40% of the Indian
women are working and they targeted this segment wth a specific group of products
called collection- G, a 9-to-5 jewellery for the working women. 21
22. Geographical Segmentation Titan realized that, given the diverse nature of Indian
ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more
ethnic. 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.SWOT ANALYSIS 22
23. STRENGTH OPPORTUNITIES Purity (karat meter) Global markets Distribution
network and Low cost jewellery retailing store Customized jewellery Award winning
designs designs Diversity in jewellery Concentrate on Gen-X by
gold/diamond/platinum having trendy jewellery Competitive prices Expand retail
storesWEAKNESS THREATS Capture Rs 70,000-crore Competition Escalated gold
costs lower Lack of Skilled workers margins Gold not seen as s source of investment.
(Luxury is needed). 23
24. StrengthPurity of the jewellery through karat meter is still the sign of total
purity.Distribution network and retailing store are in place for the company with130
stores countrywide. Mind boggling/award winning designs have comefor the company.
Diversity in jewellery gold/diamond/platinum enhancesthe product range of the company.
We also have competitive prices forthe entire product ranges as compared to the
competitors. WeaknessesCapture Rs 70,000-crore Indian jewellery market. Tanishq
comprises asmall share of the overall Rs 70,000-crore Indian jewellery market andhence
it needs to increase its market share in this huge industry. Escalatedgold costs has caused
lower margins is to push sales as much as possible. OpportunitiesGlobal markets like
USA needs to be looked at. Low cost and easy towear jewellery should be further
promoted. Customized jewellery designsshould provided to the customers. Concentrate
on Gen-X by havingtrendy jewellery. Expand retail stores in India to further increase
reach. 24
25. ThreatsCompetition from local jewellers all over India. Lack of Skilled workersin
jewellery industry. Gold is no longer seen as source of investment.People are more
concerned about design and luxury.THE MAKING OF A GREAT
GLOBALBRANDTanishq recognized that the real competition was not from the few
other majorplayers but from the regional players in the highly fragmented industry. In
order tocompete with the regional players, Tanishq introduced the concept of
consistencyin delivering promise. Also the new generation which used jewellery
everydaypreferred 18 carat modern jewelery retaining the ethnicity.Consistency in
delivering on their promiseTanishq promises superior quality jewellery with purity in
gold. They claim anddeliver the exact carats and weight that they promise. Impurity in
gold and notdelivering what was promised is one of the main problems the consumers
facewhen going for gold purchase. Tanishq eliminated this and has built its brand intrust.
Tanishq now stands for quality and purity. They even have gold meters where 25
26. one can check the purity of gold.It is first and only jeweller who guarantees the purity of
its gold jewellery andcertifies the quality of its diamonds and colored gems in writing.
Thus it hasestablished itself as a highly ethical player in a market that was rated as having
thehighest incidence of underkaratage (Bureau of Indian Standards).Superior products
and processesWidely acknowledged as a design leader, Tanishq is known for its ability
todevelop specialized design collections. Tanishq is the only jeweller that houses afull-
fledged design studio with a team of several international award winningIndian designers.
Tanishq was recently adjudged the Most Admired Jewellerybrand (for the third
consecutive time) in India at the Images Fashion awards 2004.It has also been judged as
the Images Retailer of Year in the fashion category.Tanishq jewellery is crafted in one of
the worlds most modern factories. Thefactory complies with all labor and environmental
standards. Located at Hosur,Tamil Nadu, the 1, 35,000 sq. ft. factory is equipped with the
latest and mostmodern machinery and equipment. Every product at Tanishq is
painstakinglycrafted to perfection. Diligent care and quality processes ensure that the
Tanishqfinish is unmatched by any other jeweller in the country.Distinctive positioning
and customer experience. Yet another aspect of Tanishqthat sets it apart is a whole new
jewellery buying experience offered by itsexclusive retail showrooms. Tanishq has not
only developed a national retail chainwith uniform and transparent practices and policies
but also maintainedconsistency of retailing standards across all these showrooms on an
ongoing basis.It has a distinctive positioning in India as it is known for its high quality
andjewellery with international standards. Also, since they have many stores across
thecountry they give guarantee on their jewellery and also offer to repair it free of
costanywhere across the country. 26
27. An ability to stay relevantTanishq was established in 1995 and within ten years it has
become the largest andmost desirable brand in the jewellery segment in India. They have
constantlyintroduced new offering to their consumers and have come up with new
innovativeideas. They have excellent after sales service and they have been committed
inproviding good and honest service.A compelling ideaThe idea of having branded
jewellery was a totally unique idea. Coupled with apromise of purity and a unique
experience was very compelling. It persuaded a lotof people especially the people in the
metros and semi metros to leave theirtraditional jewelers and go for Tanishq.There was
always lack of trust among the consumers for their jewelers. Tanishqremoved that with a
promise of purity. Hence what it did in India it can replicateacross the globe. Offer a
totally new perspective to Jewellery buying especiallywhen it comes to exquisite oriental
jewellery. Oriental Jewellery across the worldis usually found in flea markets or place
like China Town or Indian Markets. Goinginto the main markets in the Western world
will give Tanishq the edge.A resolute core purpose and supporting valuesTanishq
maintains its quality standards in all its products wherever they are sold.This shows that
they have a resolute core purpose. This is what they will have tomaintain even when they
global. They have the right range of products for thedifferent markets across the globe.
Only they have to remember theirdifferentiating factor. The differentiating factor for
Tanishq will be the experienceand quality they will be giving the consumer when s/he
comes to the store.A central organizational principleTanishq has to translate what its
brand signifies to the whole of their organizations.They have done that exceptionally well
in the Indian context. A visit to any 27
28. Tanishq outlet shows that. The people behind the counter are polite and courteous.They
know that they are there to deliver the promised exceptional services. Thepeople at
Tanishq know what is required of them and hence this will provebeneficial when Tanishq
goes global to maintain its global standards.Tanishq, as and when it decides to go global
will make a great global brand. As wecan see they have all the characteristics, which all
the global brands have, it can besaid that Tanishq has all the potential to become a leading
global brand. 28
29. RECOMMENDATIONSThe high tech machineries which the branded companies use are
able to produce250 kgs of gold to produce good designers at very less time. Even if
goldsmithswork six months for 12 hrs they are not able to produce the same design. So
thebranded companies are able to offer good designers at cheap price.So most of the
goldsmiths are forced to close the shops so its a appropriate time totarget the tyre-3 cities
to increase the market share and to increase the profits to alarge extent. 29
30. REFERENCESBOOKS Marketing Management by Philip Kotler, Keller, Koshy and
Jha,Pearson Prentice Hall, 13th editionWEB Case Studies and Management Resources -
www.icmrindia.org/ Tanishq official website - www.tanishq.com Management
students forum - http://www.managementparadise.com/ The Hindu Business Line -
www.thehindubusinessline.com/ Business Standard - www.business-standard.com/ E-
bay Shopping website - http://www.ebay.in/ Moneycontrol.com -
http://www.moneycontrol.com/ Economic Times - 27 Jun, 2008, Sreeradha D Basu -
http://economictimes.indiatimes.com/News/News_By_Industry/Cons_Products/Fashion_
_Cos
meticsJewellery/Gitanjali_Tanishq_Adora_expect_50_sales_growth/articleshow/3169571
.cms Economic Times - 14 Dec, 2007, Vidyalaxmi & Preeti Kulkarni -
http://economictimes.indiatimes.com/Personal_Finance/Savings_Centre/Savings_News/
How_ to_do_your_bridal_shopping/rssarticleshow/msid-2621101,curpg-2.cms 30