• Like
  • Save
Consumer Buying Behaviour & Perception About Tanishq - The Jeweller
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Consumer Buying Behaviour & Perception About Tanishq - The Jeweller

  • 22,046 views
Published

 

Published in Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
22,046
On SlideShare
0
From Embeds
0
Number of Embeds
1

Actions

Shares
Downloads
0
Comments
0
Likes
15

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI PROJECT REPORT ON THE CONSUMER BUYING BEHAVIOUR AND PERCEPTION ABOUT TANISHQ SUBJECT: CONSUMER BEHAVIOUR SUBMITTED TO: PROF. (MRS.) SUSHEELA CHAMOLI SUBMITTED BY: GROUP NO E-187 GROUP MEMBERS VISHAL BEHANI NITESH PERIWAL SHEIKH ABDUL RAZZYAK SHILPI BARUA SHOMNATH H. CHOUDHARY
  • 2. ACKNOWLEDGEMENT We are greatly indebted to Mr. Munish Chawla, Regional Business Executive (North), Titan Industries Limited – Jewellery Division for providing this project on Consumer Perception and Behaviour so that we could study the same in respect to the brand Tanishq – The Jeweller. & Prof. (Mrs.) Susheela Chamoli, Member of Faculty, The Indian Institute of Planning & Management for giving me the much required impetus to take up the project on Consumer Perception and Behaviour for Tanishq – The Jeweller, a brand owned by Titan Industries Limited – Jewellery Division. We would like to bring to light the constant inspiration, which we gained from our family members, at several junctions, without which we would not have been able to accomplish the project. We would also like to take this opportunity and mention the contribution of our fellow classmates and friends without whom the report would not have been what it is right now. Vishal Behani Nitesh Periwal Sheikh Abdul Razzyak Shilpi Barua Shomnath H. Choudhary
  • 3. EXECUTIVE SUMMARY We would like to bring to light the focal point of the research in the executive summary over here. The same is below for your reading pleasure: Research Objective: Through this research, we would like to discover the following: ‘Top of the Mind’ brand recall for Branded Jewellery; The consumers’ reason to buy from a particular jeweller over a period of time; The consumers’ understanding about Tanishq based on various parameters, viz. brand affordability, brand awareness, etc; The consumers’ purchasing and gifting habit of jewellery; Jewellery – For Investment or Adornment; Limitations Of The Research: There were a few limitations that we had to experience when we took up this research, viz. deciding on the population, the different faces of the weather in Delhi, etc. Company Background & Industry Overview: In this segment, we bring forth details about how Tanishq evolved in the due course of time ever since it was conceptualised in the 1990s. We would also speak about the various aspects of the company as to how it grew in the hearts and minds of the masses in India and how it is trying to build an image of its own offshore as well. In the section on Industry Overview, we would like to throw light upon the Gems & Jewellery Industry on the whole.
  • 4. Research Methodology: Our research methodology includes the following: Sample Design: The respondents would mainly consist of college going and working females so that we get to know about how the brand is perceived in the market. Sample Size: We would conduct this research on population in and around Delhi and NCR. The sample size is around 30. Research Instrument: We would take feedback from our respondents by asking them to fill our questionnaires. Findings & Conclusions: This segment consists of what was deduced from the research along with the conclusions.
  • 5. RESEARCH OBJECTIVE The key objectives behind the research/study can be underlined as under: o To find consumers’ Top Of The Mind brand recall in case of branded jewellery o To study consumers’ frequency and reason to buy from a particular jeweller o Study the consumer’s understanding about ‘Tanishq – The Jeweller’ pertaining to:  Whether the brand is Expensive or Affordable;  How the consumers came to know about the brand;  Which segment of the society does the brand make jewellery for;  A Suitable Brand Ambassador and a reason for the same. o To find out the consumers’ purchasing and gifting habit:  In terms of money spent;  The people they go along with;  Do they consider buying jewellery as an investment;  The type of jewellery they buy: • Plain Gold Jewellery • Studded Jewellery • Platinum Jewellery • Coins and Bars
  • 6. LIMITATIONS Though we had taken up the research with a great enthusiasm, a few days into the research, we felt that there were certain hindrances that were in the way to a successful completion of the study. These are appended below: Population: Even though the research objective had been framed, there were questions on my mind regarding selection of population - on whom the research could be conducted upon – segment of the population that would be apt for the study, locations where one could find them, etc. were the questions that we had to encounter so that we could frame the right kind of questions Weather: The weather had been very unpredictable in and around Delhi and NCR, thereby affecting our research during those days. In the initial days, it was the scorching sun which was taking up our energy when we waited at places around Delhi to get the questionnaires filled from the respondents. We had learnt a new lesson, its not only water which drenches us, but the Sun also has the muscle to drench us… not with water though. This showed on the respondents’ personality as well. In the beginning, the respondents’ were reluctant to even stop-by and wait to fill in the questionnaire, but once we made them comfortable, it was a win-win situation for me. The respondents just came out with their views which helped complete the survey. It was not only the sun that we had to lose my energy to, but the lashing rains also took a breath away. The heavy downpour, in some of the locations in Delhi, drenched me from head to toe and we had nowhere to go. We were fortunate to find respondents even at this point in time.
  • 7. Tanishq is India’s one of the largest, most desirable and fastest growing jewellery brand. A TATA Enterprise and the jewellery division of Titan Industries Limited, it started in 1995 with its first store opening in Chennai. Though Tanishq’s voyage began in 1995, it was in rough waters until a few years back. It was an uphill task for the brand to gain a firm foothold as its main competitor was not other brands, but all those household jewellers who had been serving the innumerable families from time immemorial and were as old as the civilization itself. Tanishq was here to change the rules of the game of how people perceived jewellery. It challenged the age-old jeweller’s word-of-mouth with TATA’s guaranteed purity. It was the first jeweller which exploded the market with facts about extensive impurity in jewellery throughout India. To support this it introduced KARAT METER, the only non-damaging metal testing equipment in which a consumer can have his/her jewellery tested without harming the jewellery. Backed by technology, it challenged the jewellers across India, by declaring a ‘Get Your Gold Tested’ Movement across India where it asked consumers to walk into any of the Tanishq Stores across India and get their GOLD Jewellery tested. The consumers were very reluctant because as a matter of fact, it was governed completely by individual trust built over time. But they did so and in due course of time, realized what they had been accumulating as investment for their sons’ and daughters’ wedding. The brand evidently was able to make its presence felt to the general household, where the Lady of the House has more say when it comes to purchasing jewellery – be it on the birth ceremony of a newly born or the wedding ceremony of her grandchildren. She is one person whom no man can pursue to change mind when it comes to buying jewellery.
  • 8. The story of Tanishq is not one full of achievements; it has had its share of ups and downs. Being from the House of TATA’s, it had many expectations to be met – of all those people who work for the organisation, of all those citizens of the country who have been with them for over a hundred years and of many more unnamed people who had great expectations even before Tanishq began its voyage. And yes, Tanishq has been successful in being up to their expectations by keeping their spirits high and providing them the ‘wealth’ that the stakeholders required. Tanishq has been able to achieve this by consistently providing the citizens the much needed assurance by being ‘The Gold Standard’ in the jewellery business. Tanishq has been successful in delivering value to its customers and shareholders in a complex category – BRANDED JEWELLERY. To achieve all this, Tanishq has set up production and sourcing bases throughout the country. With thorough research of the jewellery crafts in India, it has been able to locate the best places to meet its requirements of the various objects that might be required from time to time. Tanishq manufactures jewellery in a state-of-the-art manufacturing unit, spread across 135000 square feet in area and equipped with the latest technology and machines in jewellery making, in Hosur. One of the world’s most modern factories it is in compliance with all the labour and environmental norms. To meet the demands and requirements of the customers, Tanishq pioneered fashion & style in tradition bound category through its innovation driven ‘collections’ strategy, which are designed by the Tanishq Design Studio. Tanishq has been able to come out with collections like Aamra, Aarka, Aria, Chettinad, Circa, Collection-G, Colours of Royalty, Creepers, Daytimes, Diva, Hoopla, Zoya, etc. to name a few from time to time to suit the requirements of its consumer. These collections are designed by Tanishq Design Studio based on various themes that they have been able to choose from anything to everything
  • 9. they see or feel. ‘Daytimes’ is a range of diamond studded jewellery that can be worn day-in and day-out. ‘Aamra’ came from The King of Fruits, Mango. ‘Daisy’ evolved from floral patterns in pastel shades in enamel. The inspiration for ‘Arka’ came from The Sun God, a celestial body which has been shining in the firmament since long and would remain so. The design team also takes inspiration from wildlife, monuments (like The Taj Mahal), jewellery traditions (like that of Chettinad), and even The Mughal Era. These inspirations are crafted into modern forms for today’s woman, making her Tanishq jewellery, a truly prized possession. Tanishq has also appeared on the Silver Screen of Indian Cinema by making jewellery for the film ‘Paheli’. And it has also set foot on the beauty pageant stage by designing the crowns for the Miss India pageant. Tanishq makes these masterpieces, in jewellery, available to its various consumer segment through its various outlets that have been setup at various locations throughout India. Tanishq currently has 94 stores outlets spread across different cities throughout India, the latest being that in Jodhpur which opened on the 7th of July 2007. And to meet the demands of the off-shore customers, it has come up with stores in Dubai, Singapore and London. They are also planning to cater to the requirements of the consumers as far as The United States of America in the coming year. Customers can buy, exchange jewellery and avail special services like those of Savings Scheme at any of the stores across the country. Tanishq is India’s most inspirational fine jewellery brand with an exquisite range of gold jewellery studded with diamonds or coloured gems and a wide range of equally spectacular jewellery in 22Kt pure gold. It represents the aspiration of emerging Indian woman, who uses tradition rather than being used by it; who fulfils her responsibilities and lives her dreams; who celebrates festivals in her house with glamour and panache; who embraces modernity without breaking away from tradition.
  • 10. INDUSTRY OVERVIEW 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 was shifting from content to design. Consumers were no more interested in the purity or colour of the gold, but were now focussing on the designs. They wanted the jewellery to be trendier and affordable. Lightweight jewellery soon gained popularity amongst the calorie conscious consumer. Their petite collarbones wanted something very elegant to adorn. This paved the way for branded jewellery. Now the traditional jewellers had to go if for branding of their jewellery. Foreseeing the opportunities that remained and the growth that they offered, the number of gold retailers increased sharply during this time. Players such as Tanishq, Oyzterbay, Gili Carbon, etc. opened outlets in various parts of the country. Traditional jewellers also began to bring out lightweight jewellery. Some of them had to launch 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 persuade customers with attractive designs at affordable prices. Today we can see a plethora of branded jewellers spread across the country, meeting the demands of the consumers from all parts of the country. The consumer has become more sensible and he knows that he is the KING. Sorry that’s supposed to be she knows that she is a QUEEN. Prior to the liberalization in 1991, only Minerals and Metals Trading Corporation (MMTC) and the State Bank of India (SBI) were allowed to import gold into the
  • 11. country. 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 given the freedom to import gold into the country. This led to the entry of international players like DeBeers, Tiffany and Cartier into the Indian market. Jewellery was fabricated in 18, 22 and 24 karat gold. The late 1990s saw a number of branded jewellers emerging and entering the Indian Jewellery Market. Titan Industries Limited, a household name for watches retailed under the brand name ‘Tanishq’, while Gitanjali Jewels sold 18-karat gold jewellery under the brand name ‘Gili’. Gitanjali Jewels also started selling 24-karat gold jewellery in association with a Thai company, Pranda. A Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India, launched its own range of studded 18-karat jewellery, Dagina. Cartier entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded gold jewellery market during the 1990s and 2001 include Intergold Gem Ltd., Oyzterbay, Carbon, etc. In 1994, Gili Jewellery was established as a distinct brand by Gitanjali Jewels. It offered a wide range of 18-karat plain gold and diamond-studded jewellery, designed for the contemporary Indian woman. Until the early 1990s, the average Indian bought jewellery for investment rather than for its beauty. Jewellery made of 18-karat gold was not favored as it was considered a poor investment due to less karatage of gold. Trust 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.
  • 12. RESEARCH METHODOLOGY SAMPLE DESIGN – The population consisted of respondents comprising mainly of school and college going females whom we randomly chose from various parts of New Delhi. Not only women, but men also took part in the survey whole-heartedly and provided us with valuable feedback when it comes to purchasing gold from any outlet. SAMPLE SIZE – Our sample size consisted of 30 respondents from in and around New Delhi and NCR Region. However it should be noted that a few of the respondents were inhabitants of other parts of the country. RESEARCH INSTRUMENT – To enable a smooth execution of the research, we prepared an interactive questionnaire to collect information from the population. We incorporated questions pertaining to various aspects of jewellery purchase and gifting. We enquired the respondents about their purchasing habit of the different categories of jewellery, viz., Plain Gold, Studded, Platinum Jewellery and Coins & Bars. It would be commendable to mention responses from a few of our respondents who are inhabitants of other parts of the country.
  • 13. FINDINGS & CONCLUSIONS From the research that was conducted, we could find out the following. The same is interpreted with the help of pie-charts, bar graphs, in the pages that follow: 1. Which brand comes to your mind, when you hear the word ‘JEWELLERY’? Most Recalled Brand of Jewellery 60 PERCENTAGE 50 50 40 30 20 20 16.67 13.33 10 0 D'Damas Nakshatra Tanishq Asmi BRANDS Of all the respondents that we asked this question to, 16.67% said that they were reminded about D’Damas. 20% said that it was Nakshatra that they visualized, whereas Asmi was recognised by 13.33% of the people. Tanishq however was the most recalled brand with 50% of the respondents having thought about it.
  • 14. 2. Where do you purchase your jewellery from and why? 12 10 Variety 8 Uniqueness 6 Customization 4 Buy Back Policy 2 Other Reason 0 Family Jew eller Local Jew eller Tanishq Other Brands Of the 13 respondents who purchase from their Family Jeweller, 28% said that they purchase for the variety of designs that are available, 4% purchase because of the uniqueness of the designs, and 48% go back as the jewellery can be customized according to their taste. 16% choose to go back for the Buy Back Policy that is offered to them. And the remaining 4% choose to purchase from the same outlet as they find it affordable. Local jewellers were chosen by 4 respondents, 20% people chose them for the uniqueness and 20% for the variety of the designs. The remaining 60% however chose them for the customization facility that is made available to the customers. The 5 customers who actually purchase from Tanishq do so because of the uniqueness of designs and the buy back policy. The respondents were drawn to the brand for the revised evaluation of their studded jewellery. And when it comes to other brands, people chose it for both the buy back policy and the uniqueness of the brand. 3. Is Tanishq Expensive or Affordable?
  • 15. Affordable 40% Expensive 60% Expensive Affordable According to 60% of the respondents, Tanishq is an Expensive brand as the making charges on the jewellery is very high, whereas the remaining 40% opined that it is an Affordable brand because the making charges that they ask for is reasonable enough if we take into consideration the purity of gold that they offer. Over here, the respondents don’t forget to mention how the Karat Meter has opened their eyes to the impure gold that they had been purchasing and accumulating long before Tanishq came into existence and opened their eyes.
  • 16. 4. Do you prefer gifting jewellery to any other item? Never Sometimes Sometimes 50% 50% Never For the 50% of the respondents, gifting jewellery in this age is like giving a person something which he might not want at that point of time, Moreover, they feel its better that the person herself buys what she wants instead of a person gifting her something. The remaining 50% though were not contradicting the ones who said ‘NO’ to gifting jewellery, but even they thought that one can’t keep on gifting jewellery every now and then looking at the alarming rate of gold. The main concern for them was the fluctuation of the gold rates. According to them if the gol rates hadn’t been fluctuating, might be they would switch over to ALWAYS GIFT JEWELLERY bandwagon.
  • 17. 5. Do you purchase jewellery for investment purpose? Always 7% Never 30% Sometimes 63% When enquired if they purchase jewellery as a mean for investment, 7% of the respondents said that they always purchased jewellery for investment purposes. However, 63% said that they consider it an investment only sometimes. There are instances when one purchases jewellery as an adornment too and not as investments. But there were 30% of the respondents who were of the opinion that they never purchased jewellery as an investment. For them it was just like any other commodity, though its intrinsic value was much more than compared to the other items that they bought.
  • 18. 6. How often do you purchase a particular type of jewellery? Type - Plain Gold Jewellery 60% 50% No. Of Respondents 40% 30% 20% 10% 0% Never Always Sometimes Frequency Necklace & Ear Rings Bangles / Bracelets Finger Rings Chains In the above diagram Type - Studded Jewellery 70% 60% No. Of Respondents 50% 40% 30% 20% 10% 0% Never Always Sometimes Frequency
  • 19. Type - Platinum Jewellery 100% 80% No. Of Respondents 60% 40% 20% 0% Never Always Sometimes Frequency Necklace & Ear Rings Finger Rings Chains Type - Coins & Bars 50% No. Of Respondents 40% 30% 20% 10% 0% Never Always Sometimes Frequency Coins & Bars
  • 20. 7. How much is your total annual purchase value for yourself? Annual Purchase Value Less Than Rs. 50% 25000 40% Between Rs. 25000 No. Of Respondents & Rs. 50000 30% 33.33% 20% Between Rs. 50000 47% & Rs. 1 Lakh 10% 13.33% 6.67% Above Rs. 1 Lakh 0% When we enquired our respondents about how much do they annually spend on jewellery purchase, they were reluctant to disclose the same. But then they started coming out with the actual figures and before long enough, we had come to know about the money that they spend for purchasing jewellery.
  • 21. 8. How much do you spend annually on gifting jewellery? 37% 46% 7% 10% Less Than Rs. 10000 Between Rs. 10000 & Rs. 25000 Between Rs. 25000 & Rs. 50000 I don’t buy gifts When we asked our respondents about how much do they usually spend when it comes to gifting jewellery, we had mixed responses. A majority of 46% said that they spend not more than Rs. 10000, where as 10% of the respondents said that they spent anything between Rs. 10000 and Rs. 25000. 7% said that they spent between Rs. 25000 and Rs. 50000 on an average every year. There were however 37% of the respondents who didn’t feel the need to buy gifts and as such they didn’t buy jewellery for gifting.
  • 22. 9. Whom do you take along for buying jewellery? 3% 23% 74% Alone With Friends With Family To this question, 3% of the respondents said that they prefer going alone to buy jewellery, whereas 23% chose to take friends along when buying jewellery. The largest share of the pie however was of the impression that you should take your family along when you are purchasing jewellery.
  • 23. 10. Which segment of the society does the brand make jewellery for? 7% 40% 53% Women Men & Women Others When we asked the respondents that according to them which is the segment for which Tanishq makes its jewellery, we were amazed to witness that 40% of the respondents thought that Tanishq makes jewellery for men and women both. 53% of the respondents thought that Tanishq makes jewellery only for women, while there were 7% of the respondents who thought that there was yet another group for which it has been making jewellery – along with women, they were said to manufacture jewellery for kids.
  • 24. 11. How did you come to know about the brand – Tanishq? 10% 7% 20% 63% Friends News Papers Hoardings & Banners TV We came to know that our respondents came to know of Tanishq – The Jeweller mainly from the advertisements in the newspapers. Almost 63% of our respondents said that they came to know about Tanishq from the newspapers. There were 20% people who came to know about Tanishq from their friends. 10% of the respondents came to know about the brand from the hoardings and banners that are setup everywhere. 7% of the respondents came to know about Tanishq from the other media, i.e., Television.
  • 25. 12. Who is the most suitable person to be Brand Ambassador of Tanishq? Vidya Balan 7% 10% Rani 36% Mukherjee Diya Mirza 30% Preity Zinta 17% Others 36% of the respondents are of the opinion that Vidya Balan is the most suitable personality to be The Brand Ambassador of Tanishq – The Jeweller because they think that like Tanishq’s jewellery; even she is contemporary, elegant and traditional but modern at the same time. She can easily carry the image of Tanishq to a traditional family and at the same time woo the modern at heart with her beauty. Not far behind her is Diya Mirza, at 30%. Respondents chose her because she is indeed an Indian Beauty and a brand like Tanishq requires nothing less than her. At 17% is Rani Mukherjee, and at 10% it is Preity Zinta. Personalities like Sushmita Sen and Zeenat Aman have also been chosen by 7% of the respondents as Brand Ambassadors. RECOMMENDATION
  • 26. If we take a look at the kind of responses that we have obtained from the masses through our research, we come to know that Tanishq is popular with 50% of the respondents, but looking at the time factor which has gone into its making, we would like to provide the following recommendations:  In spite of being in business for so many years now, Tanishq hasn’t been able to ward off the Family Jewellers out of their way. 43% of the respondents still shop with their Family Jeweller as they give them better variety, possibility of customization and buy-back option as well. On the contrary, the same set of respondents doesn’t find the designs of the family jeweller unique enough. Tanishq can lure these customers to its stores as these customers want Uniqueness. But the company should also look at those segments of customers who are of the idea that Tanishq lacks variety and possibility of customized jewellery. To grow, the company should make sure that it stocks the right quantity of designs so as to attract more and more consumers to its stores.  There are 60% of the respondents who have expressed that Tanishq is an Expensive Brand. The company should take out a range of jewellery catering to the demands and requirements of the segment of people who can’t afford expensive jewellery. Though the company has been taking out various collections of jewellery like Tanishq Daytimes, Tanishq Collection – G, the consumers still think that these are not something which can be worn on a daily basis by a medium wage earner.  The company should with its Golden Harvest Saving Scheme, bring more and more people under its roof so that they can continue to provide them business from time to time.
  • 27.  The company should take up initiatives and start letting know about how jewellery can be regarded as an investment. For this the company can take the assistance of the newspapers and television as medium so as to reach almost 70% of the population to educate them on the same. Newspapers accounted for 63% and television for 7% when we asked the respondents as to how they came to know about Tanishq.  The success of any brand lies not by value of sale that it makes, but by the number of people who make it happen; Tanishq should not be contemplating about the amount of sale that it has been making year after year, but try and figure out as to what these people are buying at their stores. During the research, there were many instances where people had more fancy towards a particular piece of jewellery than others. The organisation should try to understand the reason behind the same at their store level, so that if the same consumer visits their store she should be enthralled by the range of jewellery she thought she would never buy.