THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT
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
SHEIKH ABDUL RAZZYAK
SHOMNATH H. CHOUDHARY
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 –
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
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.
Sheikh Abdul Razzyak
Shomnath H. Choudhary
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
‘Top of the Mind’ brand recall for Branded Jewellery;
The consumers’ reason to buy from a particular jeweller over a period of
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.
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.
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
o To study consumers’ frequency and reason to buy from a particular
o Study the consumer’s understanding about ‘Tanishq – The Jeweller’
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
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
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
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.
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.
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
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
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
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
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
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.
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.
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
1. Which brand comes to your mind, when you hear the word
Most Recalled Brand of Jewellery
D'Damas Nakshatra Tanishq Asmi
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.
2. Where do you purchase your jewellery from and why?
4 Buy Back Policy
2 Other Reason
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
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
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?
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.
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
5. Do you purchase jewellery for investment purpose?
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
6. How often do you purchase a particular type of jewellery?
Type - Plain Gold Jewellery
No. Of Respondents
Necklace & Ear Rings Bangles / Bracelets
Finger Rings Chains
In the above diagram
Type - Studded Jewellery
No. Of Respondents
Type - Platinum Jewellery
No. Of Respondents
Necklace & Ear Rings Finger Rings Chains
Type - Coins & Bars
No. Of Respondents
Frequency Coins & Bars
7. How much is your total annual purchase value for yourself?
Annual Purchase Value
Less Than Rs.
Between Rs. 25000
No. Of Respondents
& Rs. 50000
20% Between Rs. 50000
47% & Rs. 1 Lakh
6.67% Above Rs. 1 Lakh
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
8. How much do you spend annually on gifting jewellery?
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.
9. Whom do you take along for buying jewellery?
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.
10. Which segment of the society does the brand make jewellery for?
Men & Women
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.
11. How did you come to know about the brand – Tanishq?
10% 7% 20%
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.
12. Who is the most suitable person to be Brand Ambassador of
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.
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.
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