A marketing project report on tanishq

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A marketing project report on tanishq

  1. 1. Projectsformba.blogspot.com MARKETING MANAGEMENT I FINAL PROJECT REPORT SUBMITTED BY: - 1
  2. 2. Projectsformba.blogspot.comACKNOWLEDGEMENT 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. 3. Projectsformba.blogspot.comContentsExecutive Summary......................................................................................................................................5Evolution of Tanishq ...................................................................................................................................7Growth of Tanishq ......................................................................................................................................8Competitors.................................................................................................................................................9 Carbon.....................................................................................................................................................9 Gili..........................................................................................................................................................104 P’s of Marketing .....................................................................................................................................11 PRODUCT...............................................................................................................................................11 PRODUCT VARIETY.............................................................................................................................11 QUALITY.............................................................................................................................................11 DESIGN...............................................................................................................................................12 BRAND NAME.....................................................................................................................................12 SERVICES............................................................................................................................................13 PLACE.....................................................................................................................................................16 PRICING..................................................................................................................................................19Ansoff’s Model...........................................................................................................................................20BRAND POSITION.......................................................................................................................................21SEGMENTATION.........................................................................................................................................21 Niche Marketing ....................................................................................................................................21 Psychographic Segmentation.................................................................................................................21 Geographical Segmentation...................................................................................................................22SWOT ANALYSIS.........................................................................................................................................22 Strength.................................................................................................................................................24 Weaknesses...........................................................................................................................................24 Opportunities.........................................................................................................................................24 Threats...................................................................................................................................................25THE MAKING OF A GREAT GLOBAL BRAND...................................................................................................................................................................25RECOMMENDATIONS................................................................................................................................29REFERENCES...............................................................................................................................................30 3
  4. 4. Projectsformba.blogspot.com BOOKS ...................................................................................................................................................30 WEB.......................................................................................................................................................30 4
  5. 5. Projectsformba.blogspot.comExecutive 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. 6. Projectsformba.blogspot.comThe 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 country’s 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.India’s 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 country’s inexpensive and well skilled workforce makes it a worldleader in processing of diamonds. The country’s 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.India’s 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. 7. Projectsformba.blogspot.comEvolution 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. 8. Projectsformba.blogspot.comGrowth of TanishqRevenue in million Rupees 8
  9. 9. Projectsformba.blogspot.comCompetitors • 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. 10. Projectsformba.blogspot.com • 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. 11. Projectsformba.blogspot.com4 P’s 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. 12. Projectsformba.blogspot.compurpose. 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. 13. Projectsformba.blogspot.comat 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 company’s 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. 14. Projectsformba.blogspot.com 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 woman’s lifethrough festive promotions, customer contact programmes as well as through 14
  15. 15. Projectsformba.blogspot.comAnuttara, Tanishq’s 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 company’s 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 Tanishq’s 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. 16. Projectsformba.blogspot.comproduct 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 Tanishq’s stable in the last threeyears.One of Tanishq’s 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. 17. Projectsformba.blogspot.comTanishq 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 brand’s philosophy of being “Revitaliser of Tradition”.Design and retail innovation have been the hallmark of Tanishq all these years.Tanishq has constantly formulated an innovative product strategy in this journey 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.Tanishq’s 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. 18. Projectsformba.blogspot.comTanishq 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. Tanishq’s 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 thatTanishq’s market research team is figuring out the market and a designer who cancreate new products for it. 18
  19. 19. Projectsformba.blogspot.comTraditional 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 Valentine’s Day collection includes pendants, earrings and fingerrings starting from Rs. 2,000 onwards. Daytime’s 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. 20. Projectsformba.blogspot.com112 exclusive boutiques in 75 cities, making it Indias first and largestjewellery retail chain.Ansoff’s 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. 21. Projectsformba.blogspot.comBRAND 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. 22. Projectsformba.blogspot.com • 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. 23. Projectsformba.blogspot.comSTRENGTH 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. 24. Projectsformba.blogspot.com • 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. 25. Projectsformba.blogspot.com • 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. 26. Projectsformba.blogspot.comone 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. 27. Projectsformba.blogspot.comAn 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. 28. Projectsformba.blogspot.comTanishq 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. 29. Projectsformba.blogspot.comRECOMMENDATIONSThe 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. 30. Projectsformba.blogspot.comREFERENCESBOOKS 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

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