Final print out

Chapter - 1

TANISHQ – AN INTRODUCTION

Tanishq is India's largest, most desirable and fastest growing jewelry brand in India. Started in 1995, Tanishq is the jewelry business group of Titan Industries Ltd - promoted by the TATA group, India's most respected and widely diversified business conglomerate. This year marks a decade of successful innings for Tanishq. With a retail sales of 1200 crore last year and gunning for 2000 crores this year, Tanishq has arrived in the Indian jewelry market. It is a story of a successful Indian enterprise, which has delivered value to its customers and shareholders in a complex category, marked by its completely localized front end as well as back end. Tanishq has set up production and sourcing bases with through research of the jewelry crafts of India. jewelry at Tanishq 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 1,35,000 sq. ft. factory is equipped with the latest and most modern machinery and equipment. 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 challenged the age-old jeweller's word with TATA's guaranteed purity. It exploded the market with facts about rampant impurity across India. It introduced technology-backed challenge in a category completely governed by individual trust. Tanishq introduced innovations like Karatmeter, the only non destructive means to check the purity of gold. Tanishq also introduced professional retailing in the dis-organised Indian jewelry bazaar, where women can shop with comfort and peace, without worrying about the purity of the jewelry they are buying, as well as, select from the best jewelry collections available in the Indian market. Tanishq today is India's most aspirational fine jewelry brand with 91 stores in 64 cities, with an exquisite range of gold jewelry studded with diamonds or coloured gems and a wide range of equally spectacular jewelry in 22Kt pure gold. Exquisite platinum jewelry is also part of the product range.Jewellery is one of the last great commodity frontiers in India; it has remained so because this market is very fragmented, very unorganized. 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".

Chapter -2

PRODUCT LINE

› Tanishq Diamonds: The sparkle of diamonds has always attracted the human eye.Finding your perfect piece of diamond jewelry is an exhilarating and unique experience. As with any significant purchase, it is important that you make an educated decision. Cut and crafted with utmost care, Tanishq diamonds come with a certificate of authenticity, stating the caratage, colour and clarity of the stone, to enable you to know exactly what you are paying for. No gemstone expresses human emotions more powerfully than a diamond and Tanishq transforms these precious stones into breathtaking masterpieces, each unique and splendid in design. When it comes to diamonds at Tanishq you will be spoilt for choice from many collections we have to offer.

› Tanishq Gold: From the traditional harams, mangalsutras and thalis to the more fashionable earrings, chains, bracelets and rings, there is a lot to choose from at Tanishq. In India Gold has always been associated with security and is the most valuable form of investment. However, it has been observed that consumer is an easy target to several malpractices like under karatage, under valuation of the gold sold and unfair buy back policies due to the lack of awareness about these issues. Tanishq propagates ethical practices not only by assuring the customer purity and selling policies, but also fair policies to the karigars who craft the jewelry Tanishq's designs in Pure 22k gold are not only unique, expressing the wearer's individuality but each piece is subject to the intricate process of design, crafting and stone setting with stringent quality standards at every point. At Tanishq, we cater to every occasion. Our collections in gold abound from the grandiose wedding collection to exotic kundan and polki, from the stunning Aarka collections to the exclusive Nakashi work. We ensure that we have something for everyone with our baby range, 9 to 5 for the working woman and high fashion, men's wear, teen's collection and regional specific designs.

› Tanishq Platinum: Metal at its best. Pure platinum's purity endows it with a brilliant white luster. This helps to reflect the true radiance of diamonds. Because it is generally 95% pure (18 karat gold is 75% pure), platinum jewelry does not fade or tarnish and keeps its looks for a lifetime. Rare platinum is rare, the coveted treasure of discerning individuals. There is very little platinum on this earth and it is found in very few places around the world. This exquisite metal is 30 times rarer than gold. Platinum's rarity makes it exclusive and distinctive - a celebration of your individuality. Eternal platinum jewelry is the perfect choice for a lifetime of everyday wear. Platinum does not wear away and holds precious stones firmly and securely. All precious metals can scratch, and platinum is no exception. However, the scratch on a platinum piece is merely a displacement of the metal and none of its volume is lost. Some of the world's most famous gems are set in platinum, such as the Kohinoor diamond, part of the British crown jewels. Platinum and White Gold are distinctly different materials and must not be confused. Platinum is a metallic element while White Gold is a Gold alloy, which gets its white colour due to palladium or nickel. Tanishq's Platinum represents excellent value for money. The price may be higher than a similar item in gold but platinum is pure, rare, enduring, beautiful, luxurious, classic, and the perfect host for diamonds; precious qualities that make it worth paying that little bit extra for.

Chapter – 3

COLLECTIONS

› Diamond Collection:

No gemstone expresses human emotions more powerfully than a diamond After all, a diamond is timeless and finding your perfect piece of diamond jewelry is an exhilarating and unique experience. Cut and

crafted with utmost care the diamond collection renders each piece eternal.

› Wedding Collection:

The bride blushes; Everyone around smiles; The shenai announces festivity; The priests chant auspicious promises; She walks demurely; A vision of beauty; Her jewels are exquisite; Crafted by the best in the land; As pure as the blessings bestowed on her.

› Zoya Collection:

Intricacy coupled with the simplicity; The magnificence of history interwoven with linear contemporary; Secrets of the pharaohs masked with the mystery of the cosmos; oriental art embellished with occidental architecture; nature's bounty matched with man's ingenuity.

› Fashion Earring Collection:

The Fashion earring collection', has a range of over 300 exclusive designs. Keeping in tune with the raging popularity that earrings currently enjoy, the Tanishq design team has created the Fashion earring collection, inspired by the evergreen Jhumkas or Karnaphools and the trendy Chandelier and delicate Stiletto designs

› Kundan and Polki Collection:

Influenced by the mughal era Kundan work requires special craftsmanship and a myriad of stages, each crafted by a different set of highly skilled karigars. Tanishq as a revitaliser of tradition brings to life techniques and motifs of the period through our exquisite collections of Kundan and Polki (uncut diamonds). It is difficult for jewelers to ensure the purity and correct grammage of the product since it involves so many stages. However, Tanishq ensures the karatage and net wt of the product.

› Colours of Royalty Collection:

Colors of Royalty a range of exquisite studded jewelry, reminiscent of the magical Victorian era. The collection is inspired by the classic design essence and sensibilities found in the architecture, fashion, design, drapes and patterns of the Victorian period. Tanishq has incorporated the timelessness of these styles into exquisite jewelry designs to present a collection where fashion and tradition converge.This line of precious stones and diamond jewelry in 18k from Tanishq comprises more than 200 pieces and is by far the largest studded collection launched by us.This exclusive collection was launched at the Ponds Femina Miss India 2006, where the 25 finalists wore it. The Colors of Royalty is a line of exclusive gems and stone studded jewelry that reflects the grandeur of India's rich past represented through the varied meanings associated with colors in our lives.

› Moham Collection:

The collection comprises designs, motifs inspired by nature that have been beautifully crafted to make them the most desirable possession this seasonMoham is a range of exclusive ruby studded jewelry that embodies the auspiciousness the color red has in our lives. Rubies have been associated with prosperity, passion and have been the most coveted gemstone for many years.It is a must have for a Indian women.This range attempts to strike a balance between convention and fashion by creating designs suitable for the progressive Indian woman, rooted in her tradition.This line of Ruby studded jewelry from Tanishq is available in both 18k and 22k. This launch reiterates Tanishq's focus on catering to region specific tastes and preferences. India offers great potential for the Moham collection where Ruby studded jewelry enjoys great popularity and acceptance. Consumer survey indicates that women attach great inspirational value to rubies, second only to diamonds.

› Aria Collection:

Aria is a collection of variety of everyday jewellery which depict various moods and feelings:Mysteries of loveMysteries of passionMysteries of envyBewitching FascinatingEnchantingHypnotizingSensuousCaptivating

› Exquisite crowns and jewelry:

Tanishq, India's most innovative jewelry brand, unveiled the awe-inspiring set of crowns and its 'Colors of Royalty' range of jewelry, specially crafted for India's leading beauty pageant, Femina Miss India 2007.Tanishq has built itself a reputation of bringing innovative designs that suit the needs of "the ever-changing never-changing" Indian woman.The crowns have been designed to convey the essence of India through the use of distinctive motifs such as the traditional and auspicious 'teeka' - the Indian touch to the contemporary styling. Crafted with painstaking detail, each of these crowns convey a story; a story of their "ORIGIN". Inspired by interplanetary movements and colors of flora and fauna, these tiaras are a stunning combination of trillions, baguettes, round brilliant cuts, princess, pears and specially cut colored crystals. Each crown weighs about 450 gms and has a special spring mechanism designed to fit perfectly on any size or shape of head.The inspiration behind each crown is distinct and personifies the spirit of the title.

› Miss Universe: This crown has the perfect cosmic blend of elements, very like the universe itself. The large red stone, set slightly on the side, is the symbolic and stylised 'teeka'.

› Miss World: The natural essence of this piece is enhanced by the wave-like undulating shape on the base of the crown, sitting snugly on the forehead of the wearer. And of course the vivid rectangular blue stone that expresses the teeka of victory, and sets off the varying hues of the sea on the rest of the crown.

› Miss Earth: This crown derives its inspiration from the essence of nature- her flora and fauna. Based on the fabulous colours and movement of the peacock and its feathers, this stunning piece is an intriguing study in harmony and contrast.The jewelry crafted beautifully with interspersion of diamonds and colored stones, is an ode to the ecstatic beauty and supreme power behind every woman. The contemporary styling has been brought to life with sensuous curves, balance, rhythm and symmetry of classic Indian motifs in an unconventional synthesis. These beautiful and vibrant gemstones in different shapes, sizes and colors are sprinkled amongst diamonds to create a symphony that enhances the look of the stones and adds a dash of color to conventional designs. Tanishq has translated the timelessness of these designs to a modern context and brought to life a collection where fashion, design and tradition blend perfectly.

Chapter – 4

TANISHQ FOR YOU

At Tanishq its not just the products, it’s the experience that matters. We make sure that we give you the premium quality of not only product but service as well. Tanishq not only has an exquisite range of designs to meet all your requirements we also offer the benefit of any modification or customization on products.There are host of value added services that you can avail of at Tanishq like the Golden Harvest Savings Scheme, Gift Voucher purchase, Exchange of gold and diamonds etc.

› Golden Harvest Saving Scheme:

Tanishq’s “Golden harvest Savings Scheme” is one of the most lucrative savings schemes, that enables to save each month with Tanishq and plan for wedding jewelry purchases. Your monthly installments are safe with us, whereas savings at home could easily get spent. This scheme provides you with much better returns than other saving options like bank deposits or post office savings schemes. In addition, Tanishq’s special bonus at the end of the scheme period helps you stretch your jewelry budget.

How much money must one invest to enroll in the Savings Scheme?

You need to invest only Rs.500/- per month to enroll. You could also deposit a larger sum, as long as they are in multiples of Rs.500/- (11month installments) .

Exchange Policy in Tanishq exchange your old jewelry for new with Tanishq

Most retailers have a differential buy back or different rates for selling and buying gold jewelry. At Tanishq, a single gold rate is maintained for buying or selling gold jewelry. 8% of the value is deducted for costs involved with testing, refining and taxes for the jewelry given by the customer.

When you exchange any Tanishq gold coin with jewelry, you get the benefit of the current gold rate and full value exchange without deduction. When you exchange any other bank’s gold coin with jewelry there is a 4% deduction on value. This deduction is made for handling and transportation costs and for refining the metal received on exchange

How are Diamonds exchanged in the market? How are diamonds exchanged at Tanishq?

Most jewelers exchange jewelry returned to them at the purchase price hence any appreciation in the value of gold and diamonds are not accounted for.

At Tanishq, when you exchange diamond jewelry purchased from us it is exchanged for its current value, thus giving you the benefit of any appreciation that would have taken place in the price of gold or diamonds

› Gift Vouchers: Gift Vouchers make the perfect gift for friends and family. These are available at all Tanishq showrooms across India and are also redeemable across the country, Gift vouchers are available in the following denomination Rs. 2501/-, Rs. 5001/- , Rs. 10001/- and Rs. 25001/- So now you no longer need to worry about gifting your loved one, something of her choice!

› Purity Checks:Purity checks allow lovers of the yellow metal to test the purity of the gold they already own. Playing a significant role in this is the Karat meter, which is the most scientific measure of purity in the world. It uses X-rays to give an exact reading of the purity of gold in just three minutes, giving the consumer an unmatched benefit when buying or selling gold. It is in fact the most scientifically proven, non-destructive means of testing the purity of gold. Due to its excellent precision, X-ray analysis has been adopted by international agencies as well as by BIS in India as part of the certification process used to Hallmark Gold.

› Anuttara: You can also become the member of Tanishqs loyalty programme Anuttara and avail of various

discounts and priveleges.

› TANISHQ RETAILING: Tanishq ventured into jewellery retailing in 1996 through exclusive stores, both company owned and franchisee outlets, a concept unique to branded jewellery segment at that time. In just over a decade Tanishq has achieved several milestones and today is the largest jewelry brand in the country with a turnover of Rs. 1250 crores in the last fiscal. This success of Tanishq is a result of an exclusive blend of exquisite designs, trust and reliability, innovation, highly focused communication strategy and innovative retail strategy.innovation have been the hallmark of Tanishq all these years. Tanishq has constantly formulated an innovative product strategy this journey in line with the evolving consumer tastes. Tanishq Design Studio has created exquisite and varied collections like Fashion earrings, Everydays, high-end Zoya collection among others aimed at distinctive consumer segments. Similarly Tanishq has undertaken several unique retail initiatives keeping in 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 philosophy of being “Revitaliser of Tradition”.

Commenting on Tanishq’s success story, Mr. C K Venkatraman, COO, Tanishq, said "We have been able to capitalise on the trends of the local jewellery markets by building on our solid financial strength, market-leading brand position, wide network, local sourcing strategy, a management model of excellence and, most importantly, a philosophy of customer care. In the future, the key to building stronger competitiveness will lie in enhancing network coverage,

brand equity and logistics. Amid the keen competition in the Indian jewellery market, only the strong player can emerge victorious."

Tanishq’s retail strength goes beyond 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. Tanishq has also endeavored to be part of every occasion in an Indian woman’s life through festive promotions, customer contact programmes as well as through Anuttara, Tanishq’s exclusive consumer reward programme etc.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 will build new logistics centres and upgrade existing ones, laying a solid foundation to meet future competition

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 be able to share our mindset. Brand Tanishq is for every Indian woman; it is at all times keyed-in to their ever-changing demands, moods and tastes. It conveys a feeling of self-confidence and individualism that characterizes the Indian woman. The offerings are in tune with fashion and yet do not lose touch with tradition.”

Tanishq the "Revitaliser of Tradition"

Tanishq has opened first-of-its-kind concept stores at Fort Knox Kolkata, South Extension Delhi, Kormangala Bangalore and Bund Garden Pune . These stores reflect the new retail identity of Tanishq the 'Revitaliser of Tradition' and combine the grandeur of the past with the reality of the present without losing its inherent character and appeal.

The introduction of the idea of a concept store catapults Tanishq's unique brand identity in the retail space and takes jewelry retailing in India to a new level. The concept stores will take Tanishq closer to making it the complete jewelry brand catering to varying consumer needs and tastes across all consumer segments and also provide customers a unique and innovative buying experience.

The theme 'Revitalizer of Tradition' has been incorporated in all the design aspects for the new concept stores. The stores have a contemporary feel while retaining the flavor of the past. Traditional craftsmen were used to create a period ambience so that the store replicates the authentic period look with its stunning sand stone arches and special motifs inspired by the inlay work of the Taj Mahal for the North and East stores and the Chettinad influences for the South stores.

Tanishq has plans to extend its retail experience to a larger consumer base by launching more concept stores across the country.

Marketing Mix

1)Product

2)price

3)place

4)promotion

1)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 breathtaking, 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 diamond jewellery include collections such as: All Day Diamonds, 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 of its gold jewellery and certifies the quality of the

precious/semi-precious stones in writing.

They claim and deliver the exact carats and weight that they promise. Impurity 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 where one can check the purity of gold. Thus it has established 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 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 different

markets across the globe. Only they have to remember their differentiating factor. The differentiating

factor for Tanishq will be the experience and quality they will be giving the consumers when they come to

the store.

Design

Widely acknowledged as a design leader, Tanishq is known for its ability 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 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 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".

2)price :

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 diamond jewellery is the ideal accessory for the

customers.This collection 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 at all Tanishq boutiques

across the country.

Tanishq offers gold and gem-set jewellery in over 6000 traditional, western and fusion

designs. The Tanishq retail chain currently includes 112 exclusive boutiques in 75 cities,

making it India's first and largest jewellery retail chain.

Brand Position

Tanishq has been projected as an impeachable mark of trust by raising the awareness of the people

about unethical practices in the jewellery business and then measuring the gold purity by 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.

3)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.

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 opened 30 retail stores during FY08, taking the tally to 130 stores. Currently, the

average store-size for Tanishq is 1,000-1,500 sq ft. The stores operate on the franchise model.

Tanishq has undertaken several unique retail initiatives keeping in 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 philosophy of being “Revitaliser of Tradition”.

Design and retail innovation have been the hallmark of Tanishq all these years. Tanishq has constantly

formulated an innovative product strategy in this journey 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 market. In addition, Tanishq will build new

logistics centres and upgrade 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

4) 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 through festive

promotions, customer contact programmes as well as through 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.

In 1999-2000 the communication and promotion budget was increased from Rs. 65 million to Rs 100

million in 2000-01. A majority of this was spent towards advertising, while a portion was also earmarked

for promotions tailored to match regional preferences. For instance, in New Delhi, which was Tanishq’s

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.

STP analysis :

Segmentation : • Niche Marketing After its inception in 1995 focus on exports, Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Tanishq positioned itself as an international brand for the Indian elite. The brand was targeted at a niche market (However they later on started targeting the mass marketing since 1997).

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

• Geographical SegmentationTitan realized that, given the diverse nature of Indian ethnicity, it would have to satisfy the tastes of all regions. So, the designs became more ethnic. Titan also decided to transpose designs by stocking Bengali designs in Delhi, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people.

Positioning : The firm has to choose between an established brand, Tanishq, and a new skunkworks brand,

GoldPlus, to go after the Indian plain gold jewelry market: Tanishq, initially targeted at a western customer, has undergone strategic retooling and has currently been repositioned to serve the "traditional yet modern" Indian woman. The brand still carries some baggage from its past. GoldPlus, on the other hand, is a new brand that is positioned to serve the plain gold wedding jewelry market. A variety of strategic, economic, organizational and brand investment reasons make the decision an important one.

Targeting :

Tanishq mainly targeting young generation with it’s designing jewellery . Because Tanishq knows that buying power of young generation is much more and they thing buying jewellery is prestige.

Whenever you take name of gold the main target is women as they are in found of gold. So tanishq is working hard to give women more variety.

Also using celebrity like Amitabh Bachchan in diamond jewellery advertisement leads to increase in diamond jewellery sell. So they using Amitabh Bachchan popularity to diverts his fans towards diamond jewellery.

As the profit of each and every outlets are increasing tanishq targeted to open new shop in foreign also.

SWOT ANALYSIS :

• Strength

Purity of the jewellery through karat meter is still the sign of total 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. 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 Indian jewellery market. Tanishq comprises asmall share of the overall Rs 70,000-crore Indian jewellery market andhence it needs to increase its market share in this huge industry. Escalatedgold costs has caused lower margins is to push sales as much as possible.

• Opportunities

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

• Threats

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

THE JEWELLERY MARKET

Jewellery play a significant role in Indian customs and traditions, making this sector integral to the economy and one of the fastest growing industries in the country. Worldwide, the gems and jewellery industry has been growing at a good pace and is currently estimated at over US$ 130 billion. In India, it accounts for nearly 20 per cent of total Indian exports. It provides employment to 1.3 million people directly and indirectly.

The Indian market is laden with gold jewellery of varying karatage, which has seen huge appreciation in

value terms in recent times.

The Gold Rush

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 seemed to have shifted from content to design. Trendy, affordable and lightweight jewellery soon gained familiarity. Branded jewellery also gained acceptance forcing traditional jewellers to go in for branding. Given the opportunities the branded jewellery market offered; the number of gold retailers in the country increased sharply.

Branded players such as Tanishq, Oyzterbay, Gili and Carbon opened outlets in various parts of the country. Traditional jewellers also began to bring out lightweight jewellery, and some of them even launched 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 woo customers with attractive designs at affordable prices.

Gold Jewellery Market in India

Before the liberalization of the Indian economy in 1991, only the Minerals and Metals Trading Corporation of India (MMTC) and the State Bank of India (SBI) were allowed to import gold.

The abolition of the Gold Control Act in 1992, allowed large export houses to import gold freely. Exporters in export processing zones were allowed to sell 10 percent of their produce in the domestic market.

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 allowed to import gold into India. These measures led to the entry of foreign players like DeBeers, Tiffany and Cartiers into the Indian market. In

the 1990s, the number of retail jewellery outlets in India increased greatly due to the abolition of the Gold Control Act.'

This led to a highly fragmented and unorganized jewellery market with an estimated 100,000 workshops supplying over 350,000 retailers, mostly family-owned, single shop operations.

In 2001, India had the highest demand for gold in the world; 855 tons were consumed a year, 95% of which was used for jewellery.The bulk of the jewellery purchased in India was designed in the traditional Indian style. Jewellery was fabricated mainly in 18, 22 and 24-carat gold. As Hallmarking was not very common in India, under-caratage was prevalent.

According to a survey done by the Bureau of Indian Standards (BIS), most gold jewellery advertised in India as 22-carat was of a lesser quality.

Over 80% of the jewelers sold gold jewellery ranging from 13.5 carats to 18 carats as 22-carat gold jewellery. The late 1990s saw a number of branded jewellery players entering the Indian market.

Titan sold gold jewellery under the brand name Tanishq, while Gitanjali Jewels, a Mumbai-based jewellery exporter, sold 18-carat gold jewellery under the brand name Gili.

Gitanjali Jewels also started selling 24-carat gold jewellery in association with a Thai company, Pranda

Su-Raj (India) Ltd. launched its collection of diamond and 22 -carat gold jewellery in 1997. The Mumbai-based group, Beautiful, which marketed the Tiffany range of products in India, launched its own range of studded 18-carat jewellery, Dagina.

Cartiers entered India in 1997 in a franchise agreement with Ravissant. Other players who entered the Indian branded gold jewellery market during the 1990s and 2000-01 included Intergold Gem Ltd., Oyzterbay, Carbon and Tribhovandas Bhimji Zaveri (TBZ).

Gold Jewellery Becomes Fashion Accessory

Till the early 1990s, the average Indian bought jewellery for investment rather than for adornment. Jewellery made of 18-karat gold was not favored as it was considered a poor investment. Confidence 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. According to Samrat Zaveri, CEO of Trendsmith, "Research shows that the Indian jewellery sector is in the transition phase with consumers' desire for possession of jewellery for its aesthetic appeal and not as a form of investment."

In October 2002, Trendsmith conducted a survey to understand the shifting needs, motivations and aspirations of consumers in the jewellery market, and to identify new trends and opportunities. The research study arrived at the following conclusions:

• The Indian market was witnessing an accelerated shift from viewing jewellery as an investment to regarding it as aesthetically appealing ornaments. The focus had shifted from content to design.• The younger generation was looking at trendy, contemporary jewellery and clearly avoiding heavy, traditional gold jewellery.

• The consumer wanted a wider selection at a single convenient location and expected an international shopping experience.

• The Indian consumer was willing to experiment with new designs.

In the late 1990s and early 2000s, with the increase in the number of designers from design schools such as the National Institute of Fashion Technology (NIFT), a wide range of new designs became available. In addition, the growing number of manufacturers needed a retailing platform with global and national reach. All these led to the proliferation of branded jewellery players.

Tanishq - Strategies for Wooing Customers

In the late 1990s, players in the branded gold jewellery market formulated strategies for wooing customers. According to Jacob Kurian (Kurian), Chief Operating Officer of Tanishq, the challenges were many.

As the jewellery market was highly fragmented, lacked branding, and allowed many unethical practices to flourish, Tanishq worked hard on a two-pronged brand-building strategy: cultivate trust by educating customers about the unethical practices in the business and change the perception of jewellery as a high-priced purchase.

Said Kurian, "We are changing the attitudes of customers from blind trust to informed trust." To increase its marketshare, Tanishq formulated a strategy for luring people away from traditional

neighborhood jewellers. Tanishq's strategy was to create differentiation and build trust.

According to Kurian, the first part of the strategy was "to provide a point of differentiation in a highly commoditized category – which is the whole point of branding."12 The second part of the strategy was to project Tanishq as an unimpeachable mark of trust. According to Kurian, "If differentiation plays the role of primary attraction, trust takes care of lifelong loyalty."13 One way to create differentiation was through design.

The emphasis had to be on design because local jewellers could offer to design any pattern according to the customer's specifications. For a national brand a generic design concept with regional variations had to be evolved. For this, Tanishq set up a seven member in-house design team and also outsourced designs from freelance designers.

The designers travelled the length and breadth of the country to get feedback on Tanishq's designs and learn about customer preferences. On the basis of this feedback, each showroom could select the designs it would carry. To stay ahead of competition from local jewellers, Tanishq decided to focus on quality control. In 1999, it introduced caratmeters which showed the purity of gold.

In fact, Tanishq's USP was the purity of its gold. Accordingly, the company's ad campaigns emphasised the purity aspect of all Tanishq ornaments. In November 2002, Tanishq introduced a new collection of jewellery called 'Lightweights.'

The collection featured neckwear, earrings, bangles, rings and chains in 22 karat gold with prices starting at Rs 1,100. It also launched Lightweight Diamonds, with prices starting at Rs 3,000. Tanishq focused not only on urban markets, but small town markets as well. Real estate was less expensive in the small towns than in large urban centres.Besides, competition from stores in small towns was less stiff than competition from the large jewellery stores in the metropolitan cities. According to Kurian, the best returns on investment came from small towns.

All That Glitters is Not Gold

Branded jewellery players will continue to face lot of competition from local jewellers. In order to gain marketshare, they will have to come up with designs that customers want and win the trust and confidence of consumers by hallmarking and demonstrating the purity of the gold used by them.

To compete with traditional players, branded players must also find some way to differentiate themselves. While the success of a particular brand will depend on differentiation, affordability and quality will be a key element in sustaining a brand. In addition, branded players require focused advertising and astute salesmanship to compete with traditional jewellers.

Besides the major brands- Tanishq, Carbon, Oyzterbay, Gili and Trendsmith- several regional players have opened branches to leverage the trust and reputation that they have built up over the years. This is going to add to the competition in the branded jewellery market. Most of the branded jewellery players in India focused on yellow gold; only a few of them experimented with the pink and white forms of gold. Some of the players also used diamonds and platinum, which appear to have a good future in the Indian jewellery market

SOME OF TANISHQS COMPETITORS

Asmi

Asmi, one of the leading diamond brands of the country, was launched, In 2002 by The Diamond Trading Company Ltd, (DTC). The Asmi diamond Jewellery Collection is crafted to beautifully compliment and complete her. Asmi caters to the women of substance & satisfies her mind for rewards recognition, evolving to suite her style & Personality.The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi & Perizad.All these women epitomize the different strengths. An Asmi woman is closely identifies with free-spirited, goal-oriented & with an inner fire.

Nakshatra Diamonds

The world renowned Nakshatra diamonds were launched in 2000, with an equally dazzling Aishwarya Rai as its brand ambassador. In the present scenario Nakshatra diamonds occupy a leading position in the fashion diamond jewelry segment. The traditional diamond is the most wanted design among Nakshatra diamonds.Nakshatra diamonds claim to shine your glamour and love life. They have aptly put their slogan as "brightest circles of light." Elegant and graceful Nakshatra diamonds are the epitome of passion, attitude and independence.

Gili

Gili was launched in 1994, targeting mainly the youth who wanted to celebrate Valentine's day. Since then, the brand has clocked a turnover of Rs. 90 crores.Nirvana Diamonds

Nirvana Diamonds from Fine Jewellery (I) Ltd. was launched in 1987 in India. Nirvana diamonds are targeting at fashion conscious, modern and independent thinking women. Internationally acclaimed Nirvana diamonds are manufactured by using state-of-the-art technology. As a proof of their quality Nirvana was among one of the brands to offer lifetime warranty to its consumers.

D'damas Diamonds

D'damas Diamonds are part of Gitanjali Digico Group and one of the earliest diamond houses established in India in 1966. On the present day D'damas Diamonds offer highly modernized diamond cutting and polishing facilities at five locations in India. D'damas Diamonds claim to promote a range of emotions through their collections

Adora Diamonds

Adora Diamonds were launched in India in July 2003 by Mumbai based Concept Jewelry (India) Ltd. On the present day the still expanding retail network centers of Adora expands to 117 outlets in 47 cities of India. Adora means glory in Spanish and claims that its diamond collection is themed on love. Adora diamonds are for adornment of every moment, occasion, and phase of life through its up and downs.The Swaranjali signature collection of living legend Lata Mangeshkar is a unique feature of Adora diamonds. Each piece of Swaranjali collection is conceptualized and approved by Lata Mangeshkar and bears her laser printed signature.

Kiah Diamonds

World's largest volume manufacturer of diamonds-Sheetal manufacturing Company (SMC) launched its exquisite Kiah diamond collection in October, 2004. Kiah diamonds are claims to be for celebrating womanhood. The brand name 'Kiah' means beautiful place. On the latest Kiah diamonds have won the Best Showroom in the DTC Diamond Season for 2005-2006.

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 now stands for quality and purity. They even have gold meters where

one can check the purity 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 (Bureau of Indian Standards).Superior products and processesWidely acknowledged as a design leader, Tanishq is known for its ability to develop specialized design collections. Tanishq is the only jeweller that houses a full-fledged design studio with a team of several international award winning Indian designers. 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 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 machinery and equipment. 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. 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 retailing standards across all these showrooms on an ongoing basis.

It has a distinctive positioning in India as it is known for its high quality 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 relevantTanishq 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. 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 valuesTanishq maintains its quality standards in all its products wherever they are sold.

This shows that they have a resolute core purpose. This is what they will have 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. 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 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 has all the potential to become a leading global brand.

RECOMMENDATIONS

The high tech machineries which the branded companies use are able to produce 250 kgs of gold to produce good designers at very less time. Even if goldsmiths work six months for 12 hrs they are not able to produce the same design. So the branded companies are able to offer good designers at cheap price.

So most of the goldsmiths are forced to close the shops so its a appropriate time to target the tyre-3 cities to increase the market share and to increase the profits to a large extent.

TANISHQ - THE TURNAROUND STORY

When we started out we didn't think that we could achieve this, but now being jewellers to the nation doesn't seem so distant."- Tanishq COO, Vasant Nangia, in March 2000.

The Unsuccessful Launch

In 1995, Titan Industries, India's leading manufacturer of watches, launched the Tanishq range of gold watches and jewellery. Till then, the Indian jewellery market was to a large extent unorganized, with a few recognized names such as Tribhovandas Bhimji Jhaveri and Mehrason's. Tanishq, an entirely new concept in the Indian market, thus had to struggle hard to be accepted by the customers. Industry

watchers were extremely skeptical of Tanishq and doubts were being cast over its prospects. Tanishq began by offering jewellery in the 18-carat gold range, with designs borrowed heavily from contemporary European brands. The company justified its decision saying that it wanted to be 'different' from the traditional Indian offerings.

Tanishq performed very badly in the next three years, posting a huge loss in 1997-98, proving its detractors right. Jacob Kurian, Tanishq's chief operating officer admitted, "Tanishq, as a concept, was far too ahead of its times." Even if one agreed with Kurian, it could not be denied that Tanishq did commit mistakes.

Analysts decreed that the company's strategies were wary. At this point, Tanishq took various steps to correct the mistakes it had committed and very soon, posted its first ever operating profit in 1999. In 1999-00, sales doubled to Rs 1532 million against Rs 743.8 million recorded in 1998-99 and reached Rs 2000 million in 2000-01. Tanishq fared equally well on the export front also with heavy exports to UK, US, Australia and West Asia.

Tanishq was the largest overseas chain in US with 1,200 outlets. In the year 2000, exports contributed 10% to the company's turnover. The story of Tanishq, once written off as a losing proposition, making a remarkable turnaround was an example of a company single-mindedly working to make its own mark in the tradition bound Indian jewellery market. Behind this success was, of course, a well-planned and well-executed marketing plan.

Background Note

Titan Watches Limited was promoted jointly by Questar Investments Limited (a Tata group company) and Tamil Nadu Industrial Development Corporation Limited (TIDCO). The company, incorporated in July 1984 in Chennai, was started in technical collaboration with France Ebauches (a French company), one of the world's largest manufacturers of watch movements. Initially involved in the watches and clocks business, Titan later ventured into the jewellery businesses. The company was India's leading manufacturer of watches, marketed under the Titan and Sonata brand names with a 25% share of the total domestic market.

Titan established its first manufacturing facility in Hosur, Tamil Nadu and its first satellite watch assembly unit at Dehradun, Uttar Pradesh was started in 1990. In 1992, Titan set up a joint venture, Timex Watches Limited, with Timex Corporation of USA to market Timex watches in India.1 And in 1995, Titan changed its name from 'Titan Watches Ltd.' to 'Titan Industries Ltd.' in order to change its image from that of a watch manufacturer to that of a fashion accessories manufacturer. In the same year, it also started its jewellery division under the Tanishq brand. At this point of time, the jewellery business was highly localized and the concept of branded jewellery did not exist. In the late 1990s, India had around 0.2 million jewellers scattered across the country.

Jewellery had predominantly been used as an investment rather than adornment. Hence, a change in the perception of jewellery from an asset to a fashion accessory was extremely difficult to bring about. People generally bought gold from the same family jeweller they had trusted implicitly for generations. Moreover, these jewellers made the jewellery to order and often bought back their products at the prevailing market rates.

Thus, from the very beginning, Tanishq found it hard to overcome the Indian consumer's preference for buying traditional jewellery only from family jewellers. The sleek and contemporary designs being offered did not go down well with the Indian customer who was used to heavy, traditional designs.

Vasant Nangia, erstwhile Chief Operating Officer, Tanishq said, "When we launched the Tanishq range, our designs were not appreciated initially as they were believed to be extremely Western. Also, we offered only 18 carat gold." Over a period of time, Tanishq's research revealed many other loopholes in its strategies.

Setting Things Right

Tanishq found out that it had gone wrong mainly in two areas - the product proposition and retailing. Initially with a focus on the export market, its designs were predominantly Western, and the same line of jewellery was sold in India as well. However, when it shifted its focus to the domestic market, it was unable to sell these designs. Therefore the first step was to change the brand positioning from that of an elitist and Westernized offering to a more mainstream, Indian one. The 18-carat jewellery range was expanded to include 22 and 24 carat ornaments as well. Tanishq also made attempts to redefine traditional styles in its designs. Tanishq realized that, given the diverse nature of Indian ethnicity, it would have to cater to tastes of all regions

Therefore, the emphasis shifted from the erstwhile modern designs to more ethnic ones and traditional ornaments (based on designs from various states) were launched. The company also began seasonal and localized promotions based on Indian festivals, such as during Durga Puja in West Bengal, Onam in Kerala, Diwali in north India, etc. Johnson Verghese, divisional head, sales and marketing, said, "We also decided to go in for transmigration of designs. So we not only got in more Indian motifs but also started stocking typical designs from Tamil Nadu in Mumbai and those from Bengal in Delhi. These designs, though Indian, provided variety to what the people in a particular area were used to seeing."

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.

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.

Tanishq was now pitted directly against the traditional jewellers who were offering similar ornaments. In order to add some value proposition to rise above the competition, Tanishq decided to address the issue of gold purity, which was most important to the customers.

Traditionally, conventional jewellers used the touchstone2 to test the purity of gold. Apart from the fact that the customers did not trust the method, it was also alleged that a slight amount of gold was always lost while testing. The customers had to accept this for want of an alternative. In 1999, Tanishq introduced the revolutionary concept of Karatmeters in its retail boutiques. The Karatmeter used X-rays to give an accurate reading of the constitution of gold in the ornament within three minutes. Imported from Germany at a cost of Rs 1 million each, Karatmeters though expensive, proved to be the biggest USP for Tanishq in the coming years.

Fact, its sales increased by 20-30%. The concept was later on heralded as a bold step towards professionalizing the Indian jewellery business. In an attempt to elbow out competition, Tanishq conducted tests on 10,000 ornaments selected at random. In some cases the caratage was found to be as low as 10% and almost 65% of the gold tested was below 22 carats. As the caratage offered was on the lower side in traditional jewels, the jewellers kept the making charges very low to entice customers. This had become the norm all over the country. Tanishq had to struggle hard to break this convention.

As the concept of Karatmeter became more widely known, customers began to realize that the rates they were paying for Tanishq jewellery were indeed justified. A Tanishq official commented, "They have begun to understand the total value proposition that Tanishq offers."

An all-India customer satisfaction survey conducted by Tanishq in 2001 revealed that over 50% of all Tanishq customers intended to make it their jeweller, replacing many long-standing relationships with the traditional jeweller. When Tanishq was launched, it sold most of its products through multibrand stores. This did not help the Tanishq brand to make its mark. Having realized this, Tanishq decided to set up its own chain of retail showrooms in 1998.

This proved to be a very wise move as sales picked up almost immediately. By July 2001, it had 47 'Tanishq boutiques' in 37 cities – 12 were in the metros - Delhi, Mumbai, Kolkata, Chennai and Bangalore, the rest in smaller cities with a population of at least 0.5 million such as Trichy, Nagpur, Amritsar and Patna.

The focus on smaller cities paid off well with the annual growth being as high as 150% as compared to the 45% growth in metros. The number of boutiques was expected to reach 50 by the end of 2001 and to 70 by 2002. Tanishq's efforts to standardize the price of its ornaments proved to be another milestone in its success.

Gold prices differed across the country as they were based on different parameters concerning the local markets. In a bid to control gold price variations in different parts of the country, Tanishq decided to

have a standard gold price across all its showrooms from March 2000.The standard price was made binding on all Tanishq showrooms. Tanishq based its gold prices on international exchange prices, resulting in prices often being lower than the local market prices. Nangia said, "We already have a kind of standard pricing in place, but this would represent a formalization of that system to the public." Tanishq even had plans to link directly with the London Metal Exchange (LME) for daily quotes in the future. Tanishq set up an ultra-modern and large-scale manufacturing unit in Hosur, Tamil Nadu at a cost of Rs 600 million. The unit had facilities like refining, alloying and stone casting and a dust-extraction system that kept gold losses down to 2% of the raw material while local jewellers typically lost 8-10%.

This in-house manufacturing facility was the main reason, which enabled Tanishq to charge the same price across the country. One of the company's most important initiatives was customer service enhancement.

Tanishq launched a direct consumer contact programme 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 jeweller. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deductions depending on purity.

A customer satisfaction measurement program was started with the help of Customer Satisfaction Measurement Management (CSMM), an associate of IMRB. CSMM tracked customer satisfaction parameters for 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, Tanishq was able to directly link the remuneration of franchisees with customer satisfaction. The company's corporate gold gift scheme ('When you want to say thank you, say it in gold'), launched in December 1998 proved to be a major success. Tanishq delivered 50,000 customized gold coins to 0.25 million Maruti car owners nationwide as part of the 15th anniversary celebrations of Maruti Udyog. By 2001, the scheme accounted for almost 5% of the turnover and over 30 corporate clients like Coca-Cola, the UB Group, Whirlpool, the TVS Group, Ceat and Liberty Shoes

Market Research

Tanishq emerges as the best known brand with the highest awareness and recall. The difference between the leaders and the followers is always greater when the former have a head start. And when the pace and efforts of the leaders intensify, the possibility that they will continue to be at the top is a foregone conclusion. The Solitaire - TNS Survey shows that Tanishq is the best known brand across the three cities of Mumbai, New Delhi and Bangalore, a finding which lends credence to the leadership factors. More than 65 per cent of the target audience had no hesitation in coming up with the name, proving that the extensive branding exercise undertaken by Tanishq (a division of the Tata group company, Titan Industries) has paid off well. Two decades in the business, over 70 retail outlets across the country and pioneering efforts to make jewellery buying into an unforgettable shopping experience - all these factors combined to make the brand into a household name.

India's Top Ten Best Known Jewellery Brands

The Survey

The Indian jewellery industry is seeing unprecedented activity on the market front with new entrants coming in all the time. Consumer behavior also is undergoing a transformation. The Solitaire-TNS Survey to find out India's best known brands (and other pertinent details) was initiated with a view to assist and equips the industry with information that goes beyond the ordinary.

"Men buy products while women choose brands," says model-turned-designer and CEO of a billion dollar company, Kathy Ireland, a fact which jewellery brand managers in India will not refute. Hence the Solitaire - TNS Survey across Mumbai, New Delhi and Bangalore was targeted solely at women.

While the sample size was small, 600+, the fact that the target group was covered in and around shopping malls, banks, corporate areas and commercial zones, made the sample more relevant to the objectives. The survey was conducted through personal interviews over a period of 15 days.

What Did Women Really Buy?

An interesting question is whether there is a difference in what women consider as India's best brands and what they finally opt for. Quite naturally, price structure and affordability are in conflict with aspirations. However, there has been little or no difference observed in our target group in their choices. This may be because most jewellery brands have a varied price range that caters to women belonging to

different segments of society. Even in a high-profile brand at least a few lines are made affordable to most people. Thus, the toppers in the best known category come up trumps even here.

What Woman Want?

While Tanishq and a few other regulars do occupy women's mind space, the good news for other brands is that women are not unduly influenced by the aspirational longings of their hearts. A long history of fascination for the yellow metal as a status symbol and as an instrument of security and its easy convertibility to cash has most women, both working and non-working, picking up gold jewellery without precious stones as their most preferred jewellery. With the economy moving upwards and income levels increasing, gold consumption in India is showing tremendous growth. WGC reports that there has already been a 50 per cent increase in the first half of 2005 over the same period last year! With established jewellery manufacturers (read brand owners) recognizing the everlasting appeal of gold among Indian women, jewellery brands in the future might see more visible usage of gold.

22 carat yellow gold jewellery is the most preferred gold jewellery. Diamond studded jewellery is the next highly preferred. 40 per cent of the working women are willing to try new jewellery outlets. 32 per cent of non-working women opt for this too.Where Do Women Buy From?

As constant as their liking for gold, Indian women are totally rooted in the choice of the place from where they buy their jewellery. In this case, the traditional/independent jeweller seems to have no competition at all from the new generation brand stores, malls, etc. But there are changes happening. Working women, the survey points out, are more open to trying out branded and new retail outlets. With an amalgamation between the old and the new marketing strategies, independent/family jewellers have also created indelible brands. Thus, in the final reckoning, most women are brand-conscious and opt either for the ones that are highly visible or those that have been embedded in their buying culture through family association.

Research Based on qustionnire

Primary Data : It has been taken from previous record’s of Tanishq and some office members.

Secondary Data : From qustionnire and survey.

Questionnire :

1) Please tell us range of your annual income (in lakhs )

a) 1-3 b) 3-5 c) more than 5

2) How often do you invest in gold ?a) Generally b) Annually c) Special occasion

3) Do you prefer tanishq or any other brand ?

4) If yes , why ?

5) On scale of 1-10 (1 being the lowest ) rate yourself about the knowledge of gold and diamond ?

6) What would you prefer, investing in gold, Bank FD’s or Shares etc ?

7) Which jewellery do you prefer more gold or diamond and why ?

8) What are your main reason of buying gold ?

9) Apart from certified authenticity, What are the other aspect you look for when buying gold ?

10) Please give us your feedback,

1) Please tell us the range of your annual income (in lakhs)

a) 1-3 b) 3-5 c) >5

1 to 3 3 to 5 7 to 50

5

10

15

20

25

30

persentage

persentage

Inference: The people whose income is more than five lakhs are the frequent customer’s

Of the Tanishq.

2) How often do you invest in gold ?

a) Generally b) Annually c) Special Occasions

generally annually special occasions0

5

10

15

20

25

persentaegs

persentaegs

Inference : Most of the people buy jewellery on special occasion like Diwali, Akshayaa

Trutiya, Dashera , their Anniversary etc.

3) Do you prefer Tanishq or any other brand ?

Tanishq other05

10152025303540

persentages

persentages

Inference : Most of the customer’s buy gold form Tanishq because of it’s after sales service .

4) If yes, Why ?

Inference : i) Most of the customer’s say because of it’s authenticity and brand. ii) Some customer’s like the designer jewellery.

iii) Some the customer like to buy their diamond jewellery only form tanishq.

5) On scale of 1-10 (1 being the lowest ) rate yourself about the knowledge of gold and diamond ?

gold dimond0

102030405060708090

persentage

persentage

Inference : Most of the customer’s have knowledge about gold and there is some electronic devices of can check the purity of gold but in case of diamond there is not a such a device who can check purity of diamond.

6) What would you prefer, investing in gold, Bank FD’s or Shares etc ?

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Inference : Most of the people likes to invest in gold as the prices are increasing day by day.

7) Which jewellery do you prefer more gold or diamond and why ?

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Inference : In India most of the people buy gold jewellery than the diamond jewellery.

8) What are your main reason of buying gold ?

Inference : i) Most of the customer’s thing gold is an asset. ii) In India wearing gold is royality and prestige.

iii) Women like to wear golds jewellery.

9) Apart from certified authenticity, What are the other aspect you look for when buying gold ?

Inference : i) Trust on brand.

ii) After sales service.

iii) Gold exchange rate.

10) Please give us your feedback,

Inference : i) Many people says it has been always great to come in Tanishq.

ii) As Retail Sales Officer’s are very helpful and co operative in nature.

iii) Ambiance of Tanishq is very good.

Recommendation :

a) Tanishq should go for low range jewellery for lower middle class customer.

b) Tanishq should decrease there making charge.c) People are more service conscious so they can target young business man & young

professional as they are more interested investing money in gold.d) Gold price are increasing day by day so they should increase their sales by selling biscuits

of gold rather than selling more of ornaments.

Final print out

Lifestyle

Transcript of Final print out