Marketing Management i Final Project Report

MARKETING MANAGEMENT I FINAL PROJECT REPORT

SUBMITTED BY: Abhishek Kumar Sinha(8002) Hira Suryani(8015) Suryani(8015) Prodyut Kumar Saha(8037) Sachdev Pisharodi(8043) Shwetha Rao R ao Yermal(8048) Yermal(8048) Swati Bansal(8054) Varun Kumar(8056) Ku mar(8056)

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ACKNOWLEDGEMENT We are extremely thankful to Dr. H Gayathri for giving us the opportunity to undertake this project in Marketing Management and for her overall support, valu valuab able le gu guid idan ance ce,, astu astute te judg judgme ment nt,, cons constr truc ucti tive ve crit critic icism ism and and an eye eye for  for   perfection without which this project would would not have been in its present shape. And last but not the least; we are thankful to all our fellow classmates who made valuable contributions and constructive feedbacks towards the completion of  this project.

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Contents Executive Summary................... ...................................... ....................................... ........................................ .......................... ................ ................ ...... 5 Evolution of Tanishq .................. ...................................... ....................................... ....................................... ........................... .................. ............... .... 7 Growth of Tanishq ................... ...................................... ....................................... ............................................. .................................... ................... ........ 8 Competitors.................... ....................................... ....................................... ........................................ .............................. ...................... ....................... ........... 9 Carbon.................. ...................................... ....................................... ....................................... ........................................ ....................... ... ........... ................. ...... 9 Gili......................................................................................................................... Gili ......................................................................................................................... 10 4 P’s of Marketing ................................ .................................................... ....................................... ....................... ............... ...................... .............. ... 11 PRODUCT.................... ........................................ ........................................ ....................................... ..................................... ............................. .............. ... 11 PRODUCT VARIETY.................... ....................................... ....................................... ........................................ .......................... ............... ......... 11 QUALITY.................... ........................................ ....................................... ....................................... ........................................ ....................... ... ........ 11 DESIGN.................. ..................................... ....................................... ........................................ .................................... ........................... .................. ....... 12 BRAND NAME ..................... ......................................... ........................................ ....................................... ............................. ..................... ............. 12 SERVICES.................. ...................................... ....................................... ....................................... ..................................... ............................ .............. ... 13 PLACE................................................. ..................................................................... ........................................... .................................. ....................... .............. 16 PRICING....................................... ........................................................... ........................................ ....................... ... ........... ...................... .................... ......... 19 Ansoff’s Model.......................................................................................................... Model.......................................................................................................... 20 BRAND POSITION.................... ........................................ ........................................ ................................... .......................... ...................... ................ ..... 21 SEGMENTA SEGMENT ATION................. ..................................... ........................................ ........................................ ....................................... ..................... ........ 21 Niche Marketing .................. ...................................... ........................................ ....................................... ................................. ....................... ......... 21 Psychographic Segmentation.................. ..................................... .................................... ............................. ....................... .............. ... 21 Geographical Segmentation................... ....................................... ........................................... .................................. .................... ......... 22 SWOT ANAL ANALYSIS YSIS...................... .......................................... ........................................ ....................................... ..................... ........... ...................... ........... 22 Strength................... ...................................... ....................................... ........................................ ........................................ ............................ ........ ....... 24 Weaknesses.................. ...................................... ........................................ ....................................... ................................... ........................... .............. ... 24 Opportunities................. ..................................... ........................................ ........................................ ..................................... ............................ ........... 24 T   hreats.................................. ...................................................... ........................................ ........................... .................. ....................... ...................... .......... 25  THE MAKING OF A GREAT GLOBAL BRAND ................................................................................................................................. 25 RECOMMENDATIONS RECOMMENDA TIONS................. ..................................... ........................................ ....................................... ......................... ................ ............... ..... 29 REFERENCES.................. ...................................... ........................................ ........................................ ........................................ ...................... .......... 30 BOOKS .................. ..................................... ....................................... ........................................ ................................. ........................ ....................... .............. 30 WEB.................... ........................................ ....................................... ....................................... ........................................ ...................... .......... ................... ......... 30 3

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Executive Summary An Indian Brand, which can make big in the global market, is   Tanishq from Tata Group of Industries. Tanishq is India's largest, most most desi desira rabl ble e and fast fastes estt grow growin ing g jewe jewell ller ery y bran brand d in India India..  Tanishq  Tanishq today is India's most aspirational fine jewellery brand with an exquisite range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt 22Kt pure pure gold gold.. Exqu Exquis isit ite e plat platin inum um jewe jewell ller ery y and and desi design gner er silverware is also part of the product range.   Though they faced with many difficulty in the early stages they for about six years they then came with up with good strategies  The Tanishq strategy for the coming couple of years relies on two thin things gs —inc —incre reas asin ing g pene penetr trat atio ion n in the the dome domest stic ic mark market ets s and and going abroad in order to diversify its revenue portfolio.  To push penetration in other markets, Tanishq will use the ‘shopin-shop’ concept that it already does in 50 stores across different West Asian markets. “This reduces distribution costs. Also, for the consumer it remains a Tanishq store and helps us get a foot into the market.   The Their ir main main core core comp compet eten ency cy is in desi design gnin ing g a wide wide ra rang nge e of  products. They were the first to come up with the idea of karat meter, meter, which which proves proves the qualit quality y of the the gold, gold, to win win the trust of  the customer.

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The Gems & Jewellery industry The Gems The Gems and and Jewe Jewell ller ery y (G&J (G&J)) mark market et essen essenti tial ally ly comp compri rise sess of sour sourci cing ng,,  processing, manufacturing and selling of precious metals and gemstones, such as, Gold, Platinum, Silver, Diamond, Ruby, and Sapphire etc. The G&J market is a significant contributor to the Indian economy, based on the size of the domestic market and through its contribution to the country’s exports. India is the largest consumer of gold (around 20 percent of global consumption) and also the largest diamond processor (around 90 percent by pieces and 55 percent by value of the globalmarket. India’s G&J industry is highly unorganized and fragmented with 96 percent of the total players being family owned businesses. The gold processing industry has 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 with 6,000 diamond processing players and 8,000 diamond jewelers. The value chain of the industry starts from sourcing and mining of the metals and extends to jewellery retail. While India is not a major miner of previous metals and stones, the country’s inexpensive and well skilled workforce makes it a world leader in processing of diamonds. The country’s jewellery retail sector is also expect expected ed to evolve evolve with with a shift shift among among consum consumer erss toward towardss brand branded ed jewell jewellery ery,, driven by greater quality consciousness. There are a few major players in the G&J segment, with Rajesh Exports being the most most domin dominant ant name. name. Other Other key key player playerss in the field field includ includee Gitanj Gitanjali ali Gems, Gems, Suhashish Diamonds, Su-Raj Diamonds, Vaibhav Vaibhav Diamonds and Tanishq. Many of  these players are focused on developing strong brands, large retail operations, stre streng ngth then enin ing g thei theirr core core manu manufa fact ctur urin ing g op oper erat atio ions ns and and bu buil ildi ding ng a stro strong ng international presence. India’s large population and rapid economic growth offer significant opportunities for growt growth h of the indust industry ry.. The emerg emergenc encee of jewell jeweller ery y retail retail chains chains provi provide de customers with convenience and assurance of quality. The entry of foreign players is also likely to increase competition and provide consumers with greater choice. Apart from the above, there are other factors that contribute to a favorable outlook  for the industry.

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Evolution of Tanishq 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. Titan started manufacturing jewellery watches and jewellery in 1994. It set up its fully fully integr integrate ated d Rs. 400 millio million-j n-jewe ewelle llery ry plant plant in Hosur Hosur.. The plant plant had the capaci capacity ty to manuf manufact acture ure four four tonnes tonnes of gold gold in a year year. Titan itan launch launched ed these 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 ViceChairman and Managing Director of Titan. To chan change ge its its imag imagee from from a watc watch h manu manufa fact ctur urer er to a fash fashio ion n acce access ssor orie iess 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. 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, liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, privat privatee compa companie niess were were allowe allowed d to ent enter er the the hithe hitherto rto rest restric ricted ted gold gold and diamond mining industry . Foreign investors were allowed to hold up to 50% equity in mining ventures.

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Growth of Tanishq

Revenue in million Rupees

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Competitors •

Carbon

In early 1991, the Bangalore based Peakok Jewellery Pvt. Ltd., (Peakok) was incorporated and Mahesh Rao (Rao) was appointed director. Peakok realized that the Indian consumer's relationship with gold jewellery would grow beyond an investment need towards a lifestyle and personality statement. In 1996, within the Peakok fold a new brand of 18-carat gold-based jewellery called Carbon was launched. In 2000-‘01 Carbon's focus had always been to move  jewellery from the vault to the dressing table and bring the selling of jewellery out of heavil heavily y guarde guarded d jewell jewellery ery stores stores.. This This was achiev achieved ed by persu persuadi ading ng a few lifestyle stores to add branded jewellery to their vast array of products. Besides selling from lifestyle stores, Carbon also sold its products as gift items over the internet. Like Tanishq, Tanishq, Carbon laid emphasis on design. Most Most of its design designss were were contri contribut buted ed by studen students ts at the Nation National al Instit Institute ute of  Fashion Technology (NIFT) through the diploma programme which the company sponsored. In addition, Peakok's team of six designers, (headed by Rajeswari Iyer, an alumnus of a German design school who had worked in the U.K., Germany and India) turned out around 180 to 200 styles in a year, with 75 designs per style. At any point in time, there there are around 600 designs of Carbon on sale. The creation, creation, manufacture and marketing of Carbon was different from the making and selling of  traditional jewellery. It is made available at `shop-in-shop' outlets in large lifestyle stores (such as Shoppers Stop, Ebony, Globus, The Bombay Store, Lifestyle and Taj Khazana) and some premium boutiques (such as the Helvetica in Chennai). Carbon products were priced between Rs. 2,750 and Rs. 20,000 per piece. While the cost of traditional jewellery was negotiable, the cost of Carbon items was fixed and nationally uniform.The brand is available at 50 outlets in 23 cities.

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•

Gili

Gili launched a collection of traditional Indian ornaments made of 18-carat gold. In 1999, the Gili Gold range was introduced. This range included rings, pendants, earrings, necklaces and bangles made of 24-carat gold. All Gili products came with a guarantee of diamond and gold quality Gili Gili distri distribut buted ed its jewell jewellery ery priced priced betwee between n Rs. 500 and Rs. 40,000 40,000 throug through h lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. Gili distributed its jewellery priced  between Rs. 500 and Rs. 40,000 through lifestyle and department stores across the country to increase accessibility among its target segment, the 15 to 30 age group. The collection was promoted at college campuses with banners, pamphlets and a few advertisements targeted at teens. Gili soon realized that just pushing its product was was no nott enou enough gh;; it also also had had to cust custom omiz izee its its prod produc ucts ts for for spec specia iall occa occasi sion ons. s. Following this, it launched a Diamond Heart Collection specially designed for  Valentine's Day. This collection consisting of tiny, tiny, heart-shaped diamond jewellery was well received by teens. Special packaging, catchy advertising and extensive  press coverage contributed to the success of the collection. Gili also made special   promo promotio tional nal offer offerss during during festiv festivee season seasonss like like Christ Christma mass and Diwali Diwali.. Having Having captured the low price point market of Rs.2000 to Rs.10, 000, the company is focuse focused d on penetr penetrati ating ng the premi premium um marke markett of custom customize ized d jewell jewellery ery.. For For this this Gitanjali jewels opened a jewellery salon, Gianti, to provide customized jewellery to clients in India.

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4 P’s of Marketing PRODUCT •

PRODUCT VARIETY

Tanishq today is India's most aspirational fine jewellery brand with an exquisite range of gold jewellery studded with diamonds or colored gems and a wide range of equally spectacular jewellery in 22Kt pure gold. Exquisite platinum jewellery and designer silverware is also part of the product range. Tanishq designs and manufactures jewellery that is breath- taking, contemporary and yet has a tint of tradition. It produces 22 karat pure gold earrings that come in various shapes, sizes and designs. Some earrings are embedded with precious stones or colour gemstones. These jewellery sets are overwhelming and could  prove to be apt for occasions such as marriage, festivities etc. Furthermore, they also 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 diamo diamond nd jewell jewellery ery includ includee collec collectio tions ns such such as: All Day Diamo Diamonds nds,, Aria, Aria, Dewdrops, Tanishq Solo, Dancing Diamonds etc. These collections come with a certificate of authenticity that states the karatage, color and clarity of the diamond. •

QUALITY

Consistency in delivering on their promise - Tanishq promises superior quality   jewellery with purity in gold. It is the first and only jeweller that guarantees the purity purity of its gold gold jewell jewellery ery and certif certifies ies the qualit quality y of the precio precious/s us/sem emii precious stones in writing. They claim and deliver the exact carats and weight that they promise. Impurity in gold and not delivering what was promised is one of the main problems the consumers face when going for gold purchase. They eliminated this and have built its brand in trust. Tanishq now stands for quality and purity. They even have gold meters meters where one can check the purity purity of gold. Thus it has established established itself itself as a highly ethical player in a market that was rated as having the highest incidence of  under karatage (Bureau of Indian Standards).It maintains maintains its quality standards in all its products wherever they are sold. This shows that they have a resolute core 11

 purpose. This is what they will have to maintain even when they global. They have the right range of products for the different markets across the globe. Only they have to remember their differentiating factor. factor. The differentiating differentiating factor for Tanishq Tanishq will be the experience and quality they will be giving the consumers when they come to the store. •

DESIGN

Widely idely acknow acknowled ledged ged as a design design leader leader,, Tanishq anishq is kno known wn for its abilit ability y to develop 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 the largest design teams in the country. Every product at Tanishq is painstakingly crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish is unmatched by any other jeweller in the country. Tanishq was recently adjudged the Most Admired Jewellery brand (for the third consecutive time) in India at the Images Fashion awards 2004. It has also been  judged as the Images Retailer of Year Year in the fashion category. Positioned as ‘9-to-5  jewellery’, the collection is stylish and modern and is designed to suit all forms of  attire, western and Indian, casual and formal. •

BRAND NAME

"Jewellery is one of the last great commodity frontiers in India; it has remained so because this market is very fragmented, very unorganized. Tanishq Tanishq has successfully taken on the challenge of transforming this frontier into a reliable consumer 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 and most desirable brand in the jewellery segment in India. They have constantly introduced new offering to their consumers and have come up with new innovative idea ideas. s. Th Thee surv survey eyss show showed ed that that awar awaren enes esss of the the bran brand d was was qu quit itee high high.. Th Thee company believes that young urban women, with independent incomes, are looking

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at branded national jewellers. The brand believes that accretion to this segment is clearly in its favour due to the modern contemporary image among women. •

SERVICES

One One of the the comp compan any’ y’ss most ost impo import rtan antt init initia iati tive vess was was cust custom omer er serv servic icee enhancement. Tanishq launched a direct consumer contact program and conducted surveys 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) and offered a range, which far exceeded that offered by any other jeweler. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other other jewell jewellery ery after after deduct deduction ionss depend depending ing on purity purity.. A custome customerr satisf satisfact action ion meas measur urem emen entt prog progra ram m was was star starte ted d with with the the help help of Cust Custom omer er Sati Satisfa sfact ctio ion n Measur Measureme ement nt Manage Manageme ment nt (CSMM) (CSMM),, an associ associate ate of IMRB. IMRB. CSMM CSMM tracke tracked d customer satisfaction parameters for Tanishq Tanishq on a quarterly basis. This gave the company the benefit of benchmarking against local and international  players and also aided in improving repeat purchases. As a result, it was able to directly link the remuneration of franchisees with customer satisfaction. Since they have many stores across the country they give guarantee on their   jewellery and also offer to repair it free of cost anywhere across the country. They have excellent after sales service and they have been committed in providing good and honest service. They welcomes you to exchange your old gold jewellery for new designs. To ensure ensure you get the right valuation valuation for your old jewellery jewellery, use scientific, scientific, reliable reliable and transparent processes including testing it with the Karat meter. meter.

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PROMOTION

The Tata Group has promoted Tanishq as a jewellery store brand, which competes with close to three lakh traditional jewellers who dominate the domestic market. It has launched new collections at a quicker rate than its competitors, and conducted marketing promotions and fashion shows to enhance the shopping experience of  consumers. Given the diverse nature of Indian ethnicity, Titan made the designs more ethnic to satisfy the tastes of all regions. Titan transposed 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. ‘Concept’ stores, the first of which, costing Rs 10 crore, opened in Kolkata . The idea of such a store was to harmonize the tradition of the past with the modernity of the present. In 1998, it launched the corporate gold gift scheme - 'When you want to say thank  you, say it in gold'. In 1999, Tanishq delivered gold coins worth Rs. 20 crores to Maruti Udyog Ltd., to be given away as gifts to Maruti car owners. By 2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, TVS Group, Ceat and Liberty shoes. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers. Tanishq has also endeavored to be part of every occasion in an Indian woman’s life throug through h festiv festivee promot promotion ions, s, custom customer er contac contactt progr programm ammes es as well well as throug through h

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Anuttara, Tanishq’s exclusive consumer reward programme etc. Tanishq provides Gift vouchers in various denominations for gifting your friends and family. Tanishq, to set off competition, launched Jodhaa Akbar collection and managed to get lot of marketing hype. The collection is very pricey and suggested retail  price is between Rs 25,000 to Rs 15 Lakhs.

One One of the the com company pany’’s most most impo import rtan antt init initia iati tive vess was was cust custom omer er serv servic icee enha enhanc ncem emen ent. t. Tanis anishq hq laun launch ched ed a dire direct ct cons consum umer er cont contac actt prog progra ramm mmee and and conducted surveys 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   pen penda dant nt)) and and offe offere red d a rang range, e, whic which h far far exce exceed eded ed that that offe offere red d by any any othe other  r   jeweller. A customer satisfaction measurement program was started with the help of Customer Customer Satisfact Satisfaction ion Measureme Measurement nt Manageme Management nt (CSMM), (CSMM), an associate associate of  IMRB. CSMM tracked customer satisfaction parameters for Tanishq Tanishq on a quarterly  basis. In 1999-2000 the communication and promotion budget was increased from Rs. 65 mill millio ion n to Rs 10 100 0 mill millio ion n in 20 2000 00-0 -01. 1. A majo majori rity ty of this this was was spen spentt towa toward rdss advertising, while a portion was also earmarked for promotions tailored to match region regional al prefe preferen rences ces.. For instan instance, ce, in New Delhi, Delhi, which which was Tanishq anishq’’s single single largest market, substantial promotions were carried out. The Rs 100 million was split into four parts, comprising national-level spends (both electronic and print media), regional budgets, direct mail and research. For the first time, Tanishq initia initiated ted a long-t long-term erm media media plan, plan, aiming aiming to give give the brand brand a round round-th -the-y e-year  ear   presence and enhance awareness. A customer survey revealed that despite its high-blitz ad campaign, many didn't know what Tanishq was about, others found it too expensive and some felt that the 15

  product was not for people like them .So, Kurian and his team then decided to launch the fifth anniversary celebrations of Tanishq that would offer discounts to customers and induce them to come to the store. The ploy worked and they had customers 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 Rs 399 was launch launched. ed.The The aim was to bring bring down down the price price barrie barrierr signif significa icantl ntly y. Collections for the working women and a new set of contemporary designs were  brought into the stores. Aria, for seven stone diamond jewellery, Hoopla, focused on diamond studded hoops and Collection-G for lower priced gold jewellery with an interesting twist are just a few lines that have come out of the Tanishq’s stable in the last three years. One of Tanishq’s more innovative ideas is to offer special schemes during various festivals. Tanishq has also initiated a loyalty program called the Golden Harvest Savings Scheme, which offers buyers the benefit of getting more jewellery than what they have paid for. The scheme allows consumers to plan future purchases in advance and pay for them in easy installments. Exchange offer offer - change impure gold gold for pure 22 kt gold gold - attracted more people people to the stores. It is estimated that roughly 2.85 lakh customers bought from - and close to a million people went through - 53 Tanishq stores across 41 cities. Since the Euro Eu rope pean an desi design gnss in 18 18-c -car arat at go gold ld did did no nott find find any any take takers rs in 19 1997 97,, Tanis anishq hq introduc introduced ed 22-carat 22-carat ornaments. ornaments. After hitting hitting six countries countries in the last four years, years, Tanishq entered the $57-billion US jewellery market with two exclusive stores, one in Chicago and the other in New Jersey, in the first quarter of 2007-08.

PLACE Tanishq jewellery is crafted in one of the world's most modern factories. The factory complies with all labour and environmental standards. Located at Hosur, Tamil Nadu, the 135,000 sq. ft. factory is equipped with the latest and most modern machinery and equipment. 16

Tanishq reached the century mark as it unveiled its 100th store in Patna at Hathwa Market. Having embarked on the retail journey a decade ago, Tanishq today is the largest jewellery retailer in India. With a strong presence in 70 cities across India, unmatched collections and assured purity, Tanishq has quickly become the first choice of discerning customers. Tanishq anishq opened opened 30 retail retail stores stores during during FY08, FY08, taking taking the tally tally to 130 stores stores.. Curren Currently tly,, the averag averagee store store-si -size ze for Tanishq anishq is 1,000 1,000-1, -1,500 500 sq ft. The stores stores operate on the franchise model. Tanishq anishq has und undert ertake aken n severa severall unique unique retail retail initi initiati atives ves keepin keeping g in mind mind the customer demand for a world class shopping experience. As such Tanishq retail identity has evolved over the years to offer large format and concept stores that reflect the brand’s brand’s philosophy of o f 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 in line with the evolving consumer tastes. Modern retail values and principles in the selling of branded jewellery in India are almost completely the handiwork of Tanishq. The brand has broken fresh ground in retailing by creating exclusive outlets with hitherto unknown in-store ambience and hospitality touchstones. Following more than 40% percent growth in operations last year, Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the marke market. t. In additi addition, on, Tanishq anishq will will build build new logist logistics ics centre centress and upg upgrad radee existing ones, laying a solid foundation to meet future competition. Besides catering to Indian consumers, Tanishq has successfully entered key export markets such as the US, the UK, the Middle East, Singapore and Australia. This is testimony to the brand's ability to craft products that meet the requirements of  varied cultures and sensibilities. Tanishq’s retail boutiques are temples for the brand and are used as a platform for  celebrati celebration, on, be it the launch launch of a new collection, collection, a new marketing marketing promotion promotion or a festival. This gives Tanishq outlets a unique appeal and consumers an opportunity to heighten their shopping experience. 17

Tanishq gave complete freedom to the retail outlets to pick up designs, which they thought would sell in their stores. Almost all the outlets stocked the 'best selling' range of designs, which did well across the country. country. In fact, industry experts recall a period when plain gold gained space in Tanishq stores at the cost of studded jewellery. "It was perhaps an offshoot of its expansion into mini-metros and other towns where the company thought plain gold will be in more 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 of  1,800-2,000 sq ft. Meanwhile, it plans to tap small cities by opening 15 Gold Plus outlets, 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 US markets. This is an amazing achievement for Titan Industries,” said V Govindraj, Vice President, Tanishq. “Retail is a capital-intensive business. In America, having 1,000 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 jewellery retail chains across the country. As our company expands, more and more people will will be able able to shar sharee ou ourr mind mindse set. t. Tanis anishq hq’’s reta retail il stre streng ngth th go goes es beyo beyond nd its its innovative identity and extensive reach. Tanishq has undertaken several unique retail and marketing initiatives like creating purchase triggers like Doctors Day / Professional Day etc that were unexplored avenues in the industry. industry. Following more than 40% percent growth in operations last year, Tanishq will invest extensively during 2008 in marketing and retail initiatives to further develop the market. In addition, Tanishq Tanishq will build new logistics centres and upgrade existing ones, laying a solid foundation to meet future competition. Add the world to this. After hitting six countries in the last four years, Tanishq is entering the $57-billion US jewellery market with two exclusive stores, one in Chicago 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 NRI market only. We want to understand the American consumer.” He claims that Tanishq’s market research team is figuring out the market and a designer who can create new products for it.

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Traditi raditiona onall jewell jewellers ers have have been been rebran rebrandin ding g themse themselve lvess and are expand expanding ing in smalle smallerr towns towns to widen widen reach. reach. "The "The emphas emphasis is for Tani Tanishq shq will will be on specia speciall coll collec ecti tion ons, s, diam diamon ond d jewe jewell ller ery y and and bigg bigger er stor stores es of abou aboutt 4,50 4,500 0 sq ft," ft," Venkataraman said. Tanishq's team of in-house designers came out with about 3,500 designs based on current trends and the feedback from stores. At least 10% of these designs were changed every quarter and fresh ones were added to the stock.

PRICING We have very large collections of pendants, earrings and fingerings in this price range 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 most recent, Colours - comprises wearable everyday jewellery which has been designed for the urban working woman. The Tanishq Valentine’s Day collection includes pendants, earrings and finger rings 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 motifs in sleek contemporary lines with slight touches of black rhodium. The 'up to 25 per  cent' off offer by Tanishq is a unique opportunity. This attractive offer has been introduced to benefit the customers and provide them with the best price and  product options. Affordably priced from Rs 2,500/- onwards the Tanishq range of  diamo diamond nd jewell jewellery ery is the ideal ideal access accessor ory y for the custom customer ers.T s.This his collec collectio tion n is crafted using a special process called electro-forming. The jewellery is targeted at customers who are looking for international designs, wearability and value for  money. The new collection starts from a price range of Rs6,000 onwards and

available

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all

Ta n i s h q

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across

the

c o u n t r y.

Tanis anishq hq offe offers rs go gold ld and and gemgem-se sett jewe jewell ller ery y in ov over er 60 6000 00 trad tradit itio iona nal, l, western and fusion designs. The Tanishq retail chain currently includes 19

112 exclusive boutiques in 75 cities, making it India's first and largest  jewellery 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 Provide EMI by tying tying up with with banks. banks. Find new applica applicatio tions ns to current current users: users: 3. Find

Increa Increasin sing g the versati versatilit lity y of the  product in terms of usage. usage. For example, provision provision for using pendant pendant as earrings, finger rings and vice versa.

•

Market Development (Present Product- New Market)

1. Expand Expand geographica geographically: lly: Opening Opening new outlets outlets in new cities and increasin increasing g the number of outlets in the existing cities.

•

Diversification (New Product- New market)

1. Related: Related: Gold and and diamond diamond studded studded buckles buckles in belts and footwea footwearr.

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BRAND POSITION Tanis anishq hq has has been been proj projec ecte ted d as an impe impeac acha habl blee mark mark of trus trustt by rais raisin ing g the the awareness of the people about unethical practices in the jewellery business and then measuring the gold purity by caratmeter. caratmeter. Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It moves jewellery beyond investment to the fashion and adornment sector.

SEGMENTATION •

Niche Marketing After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized for the Western 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 started targeting the mass marketing since 1997).

•

Psychographic Segmentation Tanishq has found that 40% of the Indian women are working and Life Style: Tanishq they targeted this segment wth a specific group of products called collectionG, a 9-to-5 jewellery for the working women. 21

•

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, Kerali Keralite te design designss in Tamil amil Nadu Nadu and typica typicall design designss from from Tamil amil Nadu Nadu in Bombay in order to appeal to a variety of people.

SWOT ANALYSIS

22

STRENGTH

OPPORTUNITIES

•

Purity (karat meter)

•

Dist Distri ribu buti tion on

•

netw networ ork k

and and

retailing store •

Award winning designs

•

Diver iversi sitty

in

jewel ewelllery ery

•

Low cost jewellery

•

Cust Custom omiz ized ed

Competitive prices

WEAKNESS

jewe jewell ller ery y

designs •

gold/diamond/platinum •

Global markets

Concen Concentra trate te on Gen-X Gen-X by having trendy jewellery

•

Expand retail stores

THREATS

•

Capture Rs 70,000-crore 70,000-crore

•

Competition

•

Esca Escala late ted d go gold ld cost costss lowe lower  r 

•

Lack of Skilled workers

margins

•

Gold not seen as s source of  investment. needed).

23

(Luxury

is

•

Strength

Purity of the jewellery through karat meter is still the sign of total purity. purity. Distribution network and retailing store are in place for the company with 130 stores countrywide. Mind boggling/award winning designs have come for the company. company. Diversity in jewellery gold/diamond/platinum enhances the product range of the company. We also have competitive prices for  the entire product ranges as compared to the competitors. •

Weaknesses

Capture Rs 70,000-crore 70,000-crore Indian jewellery market. Tanishq Tanishq comprises a small share of the overall Rs 70,000-crore Indian jewellery market and hence it needs to increase its market share in this huge industry. Escalated gold costs has caused lower margins is to push sales as much as possible. •

Opportunities

Global markets like USA needs to be looked at. Low cost and easy to wear jewellery should be further promoted. Customized jewellery designs should provided to the customers. Concentrate on Gen-X by having trendy jewellery. jewellery. Expand retail stores in India to further increase reach.

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•

Threats

Competition from local jewellers all over India. Lack of Skilled workers in jewellery industry. industry. Gold is no longer seen as source of investment. People are more concerned about design and luxury.

THE MAKING OF A GREAT GLOBAL BRAND Tanishq recognized that the real competition was not from the few other major   players but from the regional players in the highly fragmented industry. In order to compete with the regional players, Tanishq introduced the concept of “consistency in delivering promise”. Also the new generation which used jewellery everyday  preferred 18 carat modern jewelery retaining the ethnicity. Consistency in delivering on their promise

Tanishq promises superior quality jewellery with purity in gold. They claim and deliver the exact carats and weight that they promise. Impurity in gold and not delivering what was promised is one of the main problems the consumers face when going for gold purchase. Tanishq eliminated this and has built its brand in trust. Tanishq Tanishq now stands for quality and purity. They even have gold meters where one

can

check

the

purity 25

of

gold.

It is first and only jeweller who guarantees the purity of its gold jewellery and certifies the quality of its diamonds and colored gems in writing. Thus it has established itself as a highly ethical player in a market that was rated as having the highest incidence of underkaratage underkaratage (Bureau of Indian Standards). Superior products and processes

Widely idely acknow acknowled ledged ged as a design design leader leader,, Tanishq anishq is kno known wn for its abilit ability y to develop specialized design collections. Tanishq is the only jeweller that houses a full-f full-fled ledged ged design design studio studio with with a team team of severa severall inter internat nation ional al award award winnin winning g Indian Indian design designers ers.. Tanishq anishq was recent recently ly adjudg adjudged ed the Most Most Admir Admired ed Jewell Jewellery ery  brand (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 world's most modern factories. The factory 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 most modern modern machin machinery ery and equipm equipment ent.. Every Every produc productt at Tanishq anishq is painst painstaki akingl ngly y crafted to perfection. Diligent care and quality processes ensure that the Tanishq finish

is

unmatched

by

any

other

jeweller

in

t he

country.

Distinctive positioning and customer experience. Yet another aspect of Tanishq that sets it apart is a whole new jewellery buying experience offered by its exclusive retail showrooms. Tanishq has not only developed a national retail chain with uniform and transparent practices and policies but also maintained consistency of  reta etailin iling g sta stand ndaards rds acros crosss all all these hese sho showroo wroom ms on an on ongo goiing basi basis. s. It has a distinctive positioning in India as it is known for its high quality and  jewellery with international standards. Also, since they have many stores across the country they give guarantee on their jewellery and also offer to repair it free of cost anywhere across the country. An ability to stay relevant 26

Tanishq was established in 1995 and within ten years it has become the largest and most desirable brand in the jewellery segment in India. They have constantly introduced new offering to their consumers and have come up with new innovative ideas. They have excellent after sales service and they have been committed in providing

good

and

honest

service.

A compelling idea

The idea of having branded jewellery was a totally unique idea. Coupled with a  promise of purity and a unique experience was very compelling. It persuaded a lot of people especially the people in the metros and semi metros to leave their  traditional

jewelers

and

go

for

Tanishq.

There was always lack of trust among the consumers for their jewelers. Tanishq removed that with a promise of purity. Hence what it did in India it can replicate across the globe. Offer a totally new perspective to Jewellery buying especially when it comes to exquisite oriental jewellery. jewellery. Oriental Jewellery across the world is usually found in flea markets or place like China Town or Indian Markets. Going into the main markets in the Western world will give Tanishq the edge. A resolute core purpose and supporting values

Tanishq 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 to maintain even when they global. They have the right range of products for the diff ifferen erentt marke arkets ts acro across ss the glob lobe. Only nly they they have ave to remem ememb ber thei their  r  differentiating factor. The differentiating factor for Tanishq will be the experience and quality they will be giving the consumer when s/he comes to the store. A central organizational principle

Tanishq 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 Tanishq outlet shows that. The people behind the counter are polite and courteous. They 27

know that they are there to deliver the promised exceptional services. The people at Tanishq know what is required of them and hence this will prove beneficial 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 we can see they have all the characteristics, which all the global brands have, it can be said that Tanishq Tanishq has all the potential to become a leading global brand.

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RECOMMENDATIONS The high tech machineries which the branded companies use are able to produce 250 kgs of gold to to produce good designers designers at very less time. Even if goldsmiths goldsmiths work six months for 12 hrs they are not able to produce the same sa me design. So the  branded companies are able to offer o ffer good designers at cheap price. So most of the goldsmiths goldsmiths are forced to close the shops so its a appropriate appropriate time to target the tyre-3 cities to increase the market share and to increase the profits to a large extent.

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REFERENCES BOOKS Marketing Management by Philip Kotler, Keller, Koshy and Jha, Pearson Prentice Hall, 13th edition

WEB • • • • • • • •

•

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.the hindubusinessline.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__CosmeticsJewellery/Gitanjali_Tanishq_Adora_expect_50_sales_grow th/articleshow/3169571.cms Econ Econo omic mic Times imes - 14 Dec, ec, 2007, 007, Vidyal dyala axmi xmi & Pree eetti Kulk ulkarni http://economictimes.indiatimes.com/Personal_F http://economictimes.indiatimes.com/P ersonal_Finance/Savings_Centre/Savi inance/Savings_Centre/Savin n gs_News/How_to_do_your_bridal_shopping/rssarticleshow/msid2621101,curpg-2.cms

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