A project report on buying behaviour of gold with regards to tanisq
Project Report<br />On<br />“Buying behaviour<br />of gold<br />with regards to<br />Tanisq ”<br />SUBMITTED IN PARTIAL FULFILMENT OF THE<br />REQUIREMENT OF P.G.D.M. PROGRAM<br />Submitted To:<br />.....................................<br />Submitted By:<br />.............................<br />.............................<br />...................................<br />........................................<br /> <br /> <br />Academic Year:<br />2009-2010<br /> <br />DECLARATION<br />This project report entitled study of customer’s perception has been submitted to ..........................., in partial fulfilment of P.G.D.M. Degree. Here by us, undersign that this project report has been completed by us under the guidance of .................<br />Study of this Project Report is entirely resulting of our own efforts and research is original in nature. This Project Report is not submitted either in part or whole to any other institute for any other degree.<br />Place: <br />Date: <br /> <br /> <br /> <br /> <br />ACKNOWLEDGEMENT<br />We would like to express our gratitude to:<br /><ul><li>................................, for giving us a chance to learn things in a practical and innovative way, and gain some experience for the same. We would also like to thank her for all her support and to encourage us and motivate us to learn new things and in different ways.
The group members for showing their co-ordination for the project.</li></ul>We are greatly thankful to all the advisors who helped us knowingly and for giving information and interest in report.<br />Thanking You,<br /> <br /> <br /> <br /> <br />ITENARY<br /><ul><li>Executive Summary
Bibliography</li></ul>EXECUTIVE SUMMARY<br />INTRODUCTION<br />TANISHQ PROFILE<br />Evolution of Tanishq <br />Titan came into existence in July 1984, when the Tata Group joined hands with the Tamil Nadu Industrial Development Corporation (TIDCO) to make a foray into the watch industry. <br />Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully integrated Rs. 400 million-jewellery plant in Hosur. The plant had the capacity to manufacture four tonnes of gold in a year. Titan launched these products under the brand name of Tanishq, in 1995. The name Tanishq, a blend of two 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 accessories manufacturer, Titan was renamed Titan Industries Ltd. in 1995. Titan scaled the capacity of its Hosur plant to 4.18 million units in 1996 to meet the domestic and international demand. From the late 1990s, Titan's commitment to the jewellery business increased.<br />When Titan launched Tanishq in 1995, the jewellery industry in India valued at Rs 40,000 crore was mostly unorganized, with around 3.5 lakh players. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures.<br />Growth of Tanishq<br />Revenue in million Rupees<br />SWOT ANALYSIS<br />STRENGTHPurity (karat meter)Distribution network and retailing storeAward winning designsDiversity in jewellery gold/diamond/platinumCompetitive pricesOPPORTUNITIESGlobal markets Low cost jewellery Customized jewellery designs Concentrate on Gen-X by having trendy jewellery Expand retail storesWEAKNESSCapture Rs 70,000-crore Escalated gold costs lower marginsTHREATSCompetitionLack of Skilled workersGold not seen as s source of investment. (Luxury is needed).<br />Purity of jwellrey through karat meter is still the sign of total purity.<br />Distribution network and retailing store are in place for the company with <br />130 stores countrywide. Mind boggling/award winning designs have come <br />for the company. Diversity in jewellery gold/diamond/platinum enhances <br />the product range of the company. We also have competitive prices for <br />the entire product ranges as compared to the competitors.<br />Weaknesses<br />Capture Rs 70,000-crore Indian jewellery market. Tanishq comprises a<br />small share of the overall Rs 70,000-crore Indian jewellery market and<br />hence it needs to increase its market share in this huge industry. Escalated<br />gold costs has caused lower margins is to push sales as much as possible.<br />Opportunities<br />Global markets like USA needs to be looked at. Low cost and easy to<br />wear jewellery should be further promoted. Customized jewellery designs<br />should provided to the customers. Concentrate on Gen-X by having<br />trendy jewellery. Expand retail stores in India to further increase reach.<br />Threats<br />Competition from local jewellers all over India. Lack of Skilled workers<br />in jewellery industry. Gold is no longer seen as source of investment.<br />People are more concerned about design and luxury.<br />Three Major Products Of Tanishq In GOLD<br />Zoya<br />Secrets of the Egyptian pharaohs masked with the mystery of the comos; Oriental art embellished with occidental architecture<br />Fashion Earrings<br />The Fashion earring collection; has a ranged of over 300 exclusive designs<br />Wedding Collection<br />The bride blushes<br />ABOUT THE RESEARCH<br />THE PURPOSE OF THE RESEARCH<br />The basic purpose of this research is to find the buying behaviour of people of vapi toward gold.<br />PROBLEM<br />To find out problem is the first stage of the research process. It represents translating the management problem into research problem. It is right said, “A problem well defined is half – solved.”<br />Tanishq is one of the store who provides branded gold & have brand name.<br />Inspite of product quality , services tanishq provides why do still prefer buying gold from local retailers.<br />.<br />OBJECTIVES<br />The objectives of the study are as follows:<br /><ul><li>The objective of study was to find the actual reason why people are not going to Tanishq
To find what they like & dislike about Tanishq.
On the basis of in depth interview we got 6 criteria in which we could measure the attitude of people towards Tanishq. </li></ul>Limitations<br />The survey was conducted within the limited time frame; so few shortcoming may be expected.<br />The respondent’s personal bias may be another factor, which is uncontrollable.<br />The finding of the survey is strictly based on the responses of the respondents. It is difficult to find the euthenics be true, so we are assuming them to be true.<br />It was very difficult to explain the respondents about how to fill the questionnaire & it took time for data collection.<br />Hypothesis<br />Price doesnot affect the buying of gold.<br />Quality of gold does not effect the buying of gold<br />Service does not effect the buying of gold<br />Pattern does not effect buying of gold<br />Location of store does not effect buying behavior of gold.<br />Ambiance of store effect buying behavior of gold.<br />VIEW ABOUT THE TOPIC<br />SAMPLE<br />Sampling Frame:<br />A Sampling frame consists of a list of item from which the sample is to be drawn.<br />The sample frame for this research constitutes all the customers who have visited Tanishq store for purchasing gold.<br />Sampling Unit:<br />A decision has to be taken concerning a sampling unit before selecting sample sampling unit may be a geographical one, a construction unit, a social unit or it may be an individual.<br />The sample unit for this research constitutes the organization that is Tanishq only dealer in vapi<br />Sample Size:<br />The sample size of our research was 150 but only 121 people have visited tanishq store.<br />Sample Size Selection:<br />sample size was selected on the basis of the 3 factors.<br />It was difficult to locate the customer who have visited to tanishq.<br />The respondents were not much educated so it was difficult to make them understand about the questionnaire.<br />People were not easily available outside Tanishq.<br />RESEARCH METHODOLOGY<br />Research Tools:<br />The research tool used for this research is PRIMARY DATA<br />In primary data the following research design is being followed:<br />Exploratory Research:<br />Questionnaire Survey (Sample Size – 150)<br />Descriptive Research:<br />On the basis of the questionnaire survey, the analysis is done in order to find out the reason why people are not visiting Tanishq <br />We have used 2 types of reaserch design they are<br /><ul><li>Exploratory research
Descriptive research</li></ul>Exploratary research because we were not knowing the actual problem faced by tanishq. So for that we did an Indepth interview of 3 person to find what are the major findings & difficulties are faced by them.<br />We did Interview of <br /><ul><li>Mr Bhaskar who is the senior sales manger of tanishq of south Gujarat region.</li></ul>In the interview we asked him diifrent question regarding the sales & their way of operation & different aspects about tanishq<br />From the answers given by Mr Bhaskar we found that major reason why people are not turning out towards Tanishq is because of Price a bit higher & pattern availability in tanishq . he also told us the major reason why people are coming to tanishq is the quality of gold & services provided by them. He also said that people who loves the ambiance of store may affect the buying decision. <br />Then we interviewed Mr Azad the owner of Payal jwellers of vapi town & we asked him the same questions what we asked Mr. Bhaskar. <br />We found that<br /><ul><li>Major people who buy gold from there are their regular customers from long time
He also said that people are having bad experience of going to tanishq as the price of gold is more than what they are paying to normal retailers.
He also said that people of vapi are more price councius & not quality concius.
He also said that patterns which are available with them are the same or much more compared to tanishq people.</li></ul>From the detailed interview of these 2 people we thaught that major reasons which can effect the purchase decision of people buying gold are<br /><ul><li>Price
Ambiance of store</li></ul>DETAILED FINDINGS<br />Over All Sample size <br />The sample was 150 but out of which 29 people dint went to Tanishq for buying of gold. So our sample size came to 121.<br />Segmentation According to Gender<br />Out of 121 there were 65 female that constitute 54% of total sample & rest are male they are 56 which contributes 46% of total sample.<br />Annual income of Respondents<br />The respondents average income lies from 5000 to 30000 & above so respondents were<br />5000 – 10000 = 6 <br />10000 – 20000 = 11<br />20000 – 30000 = 18<br />30000 & above = 86<br />People who said they visit Tanishq & again goes for repurchase<br />The above charts gives us the detail of people who visits Tanishq for repurchase.<br />Hypothesis Testing<br />X2 = ∑ (o-e)2/ e<br />Price does not affect the buying of gold.<br />PriceParticular12345Total1312114030281531120663106741840011245000123Total122749258121<br />Observedexpectedo-e2(o-e)2(o-e)/e32.970.030.00090.000303126.695.3128.19614.2146641112.14-1.141.29960.10705146.19-2.194.79610.77481401.98-1.983.92041.9886.541.462.13160.3259331514.720.280.07840.0053263126.24.823.040.8793891213.63-1.632.65690.1949304.36-4.3619.00964.3611.78-0.780.60840.34179804.01-4.0116.08014.0167.28-1.281.63840.22505573.713.2910.82412.91754741.192.817.89616.63537800.39-0.390.15210.3900.89-0.890.79210.8911.61-0.610.37210.23111810.820.180.03240.03951220.261.743.027611.6446200.29-0.290.08410.2900.66-0.660.43560.6601.21-1.211.46411.2110.610.390.15210.24934420.191.813.276117.24263Total59.8194<br />The hypothesis of these question is that the price does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 as 59.8149<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho>H1 so hypothesis is rejected.<br />Quality of gold does not effect the buying of gold<br />QualityParticular12345total1322007214520123210201134646918854650244010Total122749258121<br />Observedexpectedo-e2(o-e)2(o-e)/e30.692.315.33617.73347821.560.440.19360.12410322.83-0.830.68890.24342801.44-1.442.07361.4400.46-0.460.21160.4611.19-0.190.03610.03033642.671.331.76890.66250954.850.150.02250.00463922.47-0.470.22090.08943300.79-0.790.62410.7924.56-2.566.55361.4371931010.26-0.260.06760.0065892018.621.381.90440.10227722.214.171.124.23684233.04-0.040.00160.00052664.561.442.07360.454737910.26-1.261.58760.1547371818.62-0.620.38440.02064489.5-126.96.36.19984253.041.963.84161.26368400.99-0.990.98010.9922.23-0.230.05290.02372244.04-0.040.00160.00039642.061.943.76361.8269900.66-0.660.43560.66Total18.99311<br />The hypothesis of these question is that the Quality does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 as 18.99311<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho<H1 so hypothesis is accepted.<br />So Quality does matter in buying gold.<br />Service does not affect buying behavior of consumer.<br />Particular12345total100100121000013165812146153310670546107128Total122749258121<br />ServiceObservedexpectedo-e2(o-e)2(o-e)/e00.09-0.090.00810.0900.22-0.220.04840.2188.8.131.520.900.2-0.20.040.200.06-0.060.00360.0610.090.910.82819.20111100.22-0.220.04840.2200.4-0.40.160.400.2-0.20.040.200.06-0.060.00360.0612.08-1.081.16640.56076964.681.321.74240.37230858.5-3.512.251.44117684.333.6713.46893.110611.3-0.30.090.06923166.94-0.940.88360.127321515.62-0.620.38440.0246093318.3514.65214.622511.696051014.46-4.4619.89161.37562964.631.371.87690.40537842.781.221.48840.53539666.25-0.250.06250.011011.34-1.341.79560.15834275.791.211.46410.25286711.85-0.850.72250.39054132.08133<br />The hypothesis of these question is that the service does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 as 32.0813<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho>H1 so hypothesis is rejected.<br />So service does matter in buying gold.<br />4 ) Pattern does not effect effect buying behavior of consumers.<br />Particular12345total102400625716833933111672394364612051194117Total132749257121<br />PATTERNObservedexpectedo-e2(o-e)2(o-e)/e00.65-0.650.42250.6521.340.660.43560.32507540.453.5512.602528.0055601.25-1.251.56251.2500.35-0.350.12250.3554.190.810.65610.15658778.7-1.72.890.332184162.913.1171.6159.1758688.06-0.060.00360.00044732.260.740.54760.24230134.19-1.191.41610.337971184.108.40.2060.608046162.913.1171.6159.1758678.06-1.061.12360.13940422.26-0.260.06760.02991232.150.850.72250.33604764.461.542.37160.53174941.492.516.30014.22825564.131.873.49690.84670711.16-0.160.02560.02206921.830.170.02890.01579213.79-2.797.78412.05385291.267.7459.907647.5457143.510.490.24010.06840510.980.020.00040.000408206.4282<br />Pattern does not effect buying behavior of gold.<br />The hypothesis of these question is that the pattern does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 206.4282<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho>H1 so hypothesis is rejected.<br />So it has been analyzed that Tanishq has good variety of pattern.<br />Proximity does not affect buying of gold.<br />Particular12345total120620102223018346188440437149134511286229Total122749258121<br />ProximityObservedexpectedo-e2(o-e)2(o-e)/e20.991.011.02011.03040402.23-2.234.97292.2363.882.124.49441.15835122.07-0.070.00490.00236700.67-0.670.44890.6720.791.211.46411.85329120.791.211.46411.85329133.11-0.110.01210.00389101.65-1.652.72251.6510.530.470.22090.41679243.970.030.00090.00022768.93-2.938.58490.9613551815.542.466.05160.38942188.27-0.270.07290.00881542.641.361.84960.70060633.37-0.370.13690.04062377.59-0.590.34810.0458631413.210.790.62410.04724597.021.983.92040.55846212.25-1.251.56250.69444412.88-1.883.53441.227222126.475.5330.58094.726569811.26-3.2610.62760.94383765.990.011E-041.67E-0521.920.080.00640.003333Total21.21642<br />The hypothesis of these question is that the proximity does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 as 21.21<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho<H1 so hypothesis is accepted.<br />Ambiance does not affect buying behavior of gold.<br />Particular12345total1110417202620103561162304391781138549145436Total132748258121<br />ObservedExpectedo-e2(o-e)2(o-e)/e10.750.250.06250.08333311.56-0.560.31360.20102602.78-2.787.72842.7841.452.556.50254.48448310.460.540.29160.63391301.07-1.071.14491.0722.23-0.230.05290.02372263.972.034.12091.0380122.07-0.070.00490.00236700.66-0.660.43560.6653.221.783.16840.98397566.69-0.690.47610.0711661111.9-0.90.810.06806766.2-0.20.040.00645221.980.020.00040.00020234.08-1.081.16640.28588298.480.520.27040.0318871715.071.933.72490.24717387.850.150.02250.00286612.51-1.512.28010.90840643.870.130.01690.00436798.030.970.94090.1171731414.28-0.280.07840.0054957.44-2.445.95360.80021542.381.622.62441.102689Total15.61287<br />The hypothesis of these question is that the proximity does not effect the buying behavior of consumer that is Ho.<br />So from the calculation we got the value of H0 as 15.61<br />So when compared to tabulated value of the number that is (r-1)*(c-1) gives us the tabulated value so for my question (5-1)*(5-1) = 16 is the degree of freedom.<br />The value for the 16 is 26.3<br />So Ho<H1 so hypothesis is accepted.<br />Questionnaire<br />GIDC ROFEL BUSINESS SCHOOL<br />Dear Sir/Madam<br />We are the students of 2nd Year PGDM Course of GIDC ROFEL BUSINESS SCHOOL (VAPI). As a part of our research study we are conducting a survey regarding the perception of people regarding the purchase of gold from different organized & Un organized Retailers.<br />Guidelines for filling the form:-<br /><ul><li>Please check the box wherever required.
Only 1 check per question.</li></ul>Q 1 ) Name:-________________________________________________________<br />Q 2) Gender - malefemale<br />Q 3) Age :- _________________<br />Q 4) Occupation: - Service BusinessOthers<br />Others:-__________________________<br />Q 5) Monthly average INCOME?<br />5000-1000010000-2000020000-3000030000 & above <br />Q 6) how often you visit jewellery store?<br />Once a monthonce a year<br />On Occasion<br />Q 7) You Buy jewellery from<br />PlaceStore Name<br />Vapi___________________<br />Valsad___________________<br />Surat___________________<br />Bombay___________________<br />Others___________________<br />Q 8) do you buy jewellery from same store every time ?<br />Yes No <br />If Yes/No Why?___________________________________________________________<br />Q 9 ) Rate your jewellery store from 1 to 5 <br />where 1 is the WORST & 5 is the BEST<br /><ul><li>Product are worth price you pay ?
Ambiance of Store ?</li></ul>Q 10) Are You aware about tanishq showroom opened in vapi?<br />YesNo<br />Q 11) How did you come to know about Tanishq?<br />TV News Paper Hoardings<br />Pamphlets Friends/relatives Others<br />Q 12) Have you visited Tanishq Store?<br />YesNo<br />Q 13) Rate Tanishq On flowing Criteria Given below<br /><ul><li>ParticularV.GoodGoodAverageBadV.badPricePurity & Quality of GoldService OfferedPatterns AvailableLocation of StoreAmbiance of store</li></ul>Q 14) During Re-Purchase you often go to Tanishq?<br />YesNo<br />Q 15) Would you recommend others for Buying Tanishq Products?<br />YesNo<br />Q 16) Rate tanishq on over all basis?<br />ParticularV.GoodGoodAverageBadV.badTanishq As a Store<br />Thank You<br />FINDINGS<br />On the basis of chi-square test the relation between the variables are significant & few are not significant.<br />Variables which were significant in the research & which affects the buying behavior of gold are<br />Because of price people are not visiting Tanishq.<br />People are happy with the quality of Tanishq & they go to Tanishq only because the purity & quality of gold.<br />The people also visit Tanishq because they provide better services then the other retailers.<br />The pattern are also major factor because of which people does not prefer Tanishq.<br />The people says that the location of store is not affecting them to visit Tanishq. <br />People are not affected by the ambiance of store<br />From these we can conclude that people are more sencisitve towards price , Quality & availability of pattern. If they find these 3 things ok & they fill that this is what they wanted they will buy from there only.<br />For people of vapi ambiance , proximity to market & service are less important.<br />Recommendation<br />&<br />Conclusion<br />Conclusion<br />People are more price conscious & they feel that the price in Tanishq are more than what the normal retailers have. They also feel that the quality they get is much higher than the quality what the normal retailers give. They also found that the patterns available are lesser than what they get in the normal retail store. They also are service oriented so they are more attracted because of service they get. People are not affected with the ambiance of the shop.<br />Recommendation<br />We would recommend Tanishq following things<br />The making charge is affecting their sales so they should cut down their prices.<br />The patterns are comparative less so they should provide more number of patterns & also should increase their market share by bringing more innovative scheme & loyalty programs.<br />People are more service conscious so they can target young business man & young professional as they are now more in investing money in gold.<br />Gold price are increasing day by day so they should increase their sales by selling biscuits of gold rather than selling more of ornaments.<br />Bibliography<br />Tanishq Website<br />Tanishq Outlet<br />Marketing Research TextBook<br />THANK YOU<br />