Tanishq Jwellery Brand Project
Tanishq Jwellery Brand Project
Tanishq Jwellery Brand Project
Programmed of United college of engineering and research A-31, UPSIDC, Industrial Area, Naini, Allahabad - 211010
Project guide: Mrs. Priya Varma Prateek Gupta Roll no. 0901070021 MBA UCER
Declaration
I hereby declare that the project entitled Tanishq Brand Value Research has been prepared by me during the academic year 2010-2011 under the guidance of my project guide Mrs. Priya Varma and is based on secondary data found by me in various departments, books, magazines and websites & Collected by me. A copy of this project has been submitted to the organization where the project was developed. This project is not submitted to any other organization or university or college and is the outcome of my work.
Date:
ACKNOWLEDGEMENT It is most difficult, to express in words, our heartfelt gratitude, to the various persons who have more than helped us in our endeavor. The word that follow, are merely the formal expression, of my deep sense of indebtedness that is better treasured in my heart, then said in words.
To a greater extent, than any number of acknowledgements could express, this work would have been impossible, without the valuable help, thoughts and motivation of my guide Mrs. Priya Varma. Lastly, but not the least, I would like to acknowledge, all those people who were associated with my study directly or indirectly.
INDEX
SR.NO. 1 2 3
4 5 6 7 8 9 10 11 12 13 14 15 16 17 Introduction
CONTENTS
Objective and scope of Study Market Research For Business Planning & Growth Tanishq An Introduction Locating Tanishq Product Line & The Collections Tanishq For You Tanishq Retailing Marketing Tanishq Marketing Strategy The Jewellery Market Some of Tanishqs Competitors Tanishq Market Research Tanishq The Turnaround Story Promotion, Advertising & Public Relation Tanishq In The News Globalization
INTRODUCTION
As we see it, research in advertising and marketing is very crucial in understanding, speculating on, and ultimately determining the position of the product in the consumer's mind. It is like a homework task that a good advertising/marketing/sales person would always carry out before (and after) implementing the said product's advertising/marketing strategy. By collecting data with the help of research methods, the researcher can manage to understand the consumer, what he wants, when he wants it, and how he wants it. Research methodologies, more or less, aim to reveal consumers different perceptions of the product, in large part about the way it is advertised. The researcher wants to know how effective the advertisement is on his listeners, where the strategy falls short, and where it can improve. Ultimately, it can be said that the most important task of advertising/marketing research is to increase the sales of the product. This requires a well developed marketing plan, a good know-how of the prospective consumer, and most of all an effective and rational research methodology.
What is happening in the market? What are the trends? Who are the competitors? How do consumers talk about the products in the market? Which needs are important? Are the needs being met by current products?
Market information
Market information is making known the prices of the different commodities in the market, the supply and the demand. Information about the markets can be obtained in several different varieties and formats. Examples of market information questions are: Who are the customers? Where are they located and how can they be contacted? What quantity and quality do they want? When is the best time to sell?
Market segmentation
Market segmentation is the division of the market or population into subgroups with similar motivations. Widely used bases for segmenting include geographic differences, personality differences, demographic differences, use of product differences, and psychographic differences.
Market trends
The upward or downward movements of a market, during a period of time. The market size is more difficult to estimate if you are starting with something completely new. In this case, you will have to derive the figures from the number of potential customers or customer segments. But besides information about the target market you also need information about your competitor, your customers, products etc. A few techniques are: Customer analysis Choice Modelling Competitor analysis Risk analysis Product research Advertising research
TANISHQ AN INTRODUCTION
The Tanishq saga began in the early 1990s, primarily fuelled by the fabled Tata entrepreneurial spirit and partly forced by circumstance. The splendid Titan watches success story was already up and running, and happened to need more foreign exchange to purchase the imported components and machines required to keep up with the burgeoning watch production. But with India going through a foreign exchange crisis, there was no help coming in, forcing Titan to search for a business that would earn them the required foreign currency Indian-made jewellery was already a big foreign currency earner and being strongly supported by the central government, and also happened to be a very good fit with the watch business as articles of adornment. The best known brand names in both Europe and America had watches and jewellery together, offering further proof that the two industries are intrinsically linked. It was a business with a huge wealth potential and it added a very feminine offering to Tatas long line of products that appealed mostly to the opposite gender. It also called for an organization that inspired trust and had high order design, manufacturing, marketing and retailing skills, and Tata fit the bill on all accounts Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning a necklace of gold coins) and, again, from Tan, meaning body and Ishq, meaning love. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. But things began to change globally around this time, and the West entered a protracted period of slow economic growth followed by recession. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition
Tanishq was coined from a combination of Tata/Tamil Nadu and Nishq (meaning a necklace of gold coins) and, again, from Tan, meaning body and Ishq, meaning love. It was launched in 1994 as a range of jewellery and jewellery watches meant for the European & American markets. But things began to change globally around this time, and the West entered a protracted period of slow economic growth followed by recession. Supplying jewellery to the Americans & Europeans suddenly no longer seemed an attractive proposition Initially, the criticism for Titans foray into jewellery was loud and often bitter. Eventually, however, the critics were silenced. Tanishq, today, is perhaps the only major Tata brand with a strong appeal for women. Very importantly, Tanishq has brought to the market a whole new standard of business ethics and product reliability, in the process bringing about a transformation in the manner in which jewellery is bought and sold in India. It has created a revolution in the Indian jewellery trade and in jewellery buying behavior, and continues to set new parameters of excellence for others to follow. The Indian market, on the other hand, opened its doors to the world, and was now flooded with foreign currency. By the time Tanishq established its manufacturing facility and entered the market, the premises on which the project was based had altered substantially. Foreign currency was no longer an issue, import licences were easy to obtain and the global demand-supply equation forjewellery had shifted in favour of buyers. Tanishq, therefore, switched tracks and shifted its focus to the Indian market and develop a somewhat grandiose vision of the brand as a composite avatar of Cartier, Tiffany, Esprit, and Ernest Jones all rolled in one. 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, much 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". - Harish Bhat, CEO, Tanishq.
LOCATING TANISHQ
Tanishq had its first showroom in Chennai in 1996. Today it has over 60 showrooms in 47 cities. Only eleven of these are owned by the company. The rest are run by franchisees. There are eleven branches in Uttar Pradesh
ALLAHABAD Tanishq, 43/9, Sardar Patel Marg, Civil Line, Allahabad-211001 0532-2260085,86,3295437 btqald@titan.co.in AGRA Tanishq, 35/2, G4B4, Sanjay Place, Agra 2 0562-2856280,2527402 btqagr@titan.co.in ALIGARH Tanishq, 7/144, NanigRam Swarannalyay, Rail road Aligarh, 202001 0571- 6453101, 02 btqagh@titan.co.in GHAZIABAD Tanishq, 1022, Ground Floor, Turab Nagar, Ambedkar Road, Ghaziabad 0120 - 2794155/4559355 btqgbd@titan.co.in GORAKHPUR Tanishq, Cross Road, The Mall, Bank Road, Gorakhpur - 273001 0551-2342435,2343830 btqgkp@titan.co.in JHANSI Tanishq, J.M.K Motors, Jankipuram, Civi Line, Elite Chowk, Jhansi 0510-2471255,6453555 btqjha@titan.co.in
KANPUR -BIRHANA ROAD Tanishq, 24/66, Birhana Road Kanpur, Pin-208001 0512-2302500,2302900,6553450 btqkbr@titan.co.in LUCKNOW GOMTI NAGAR Titan, 1/8, Viram Khand, Gomti Nagar, Patrakarpuram Chorha, Lucknow 0522-2395220,4007630 btqtgn@titan.co.in MEERUT Tanishq, 13-16, Abu Plaza, Abu Lane, Meerut 0121-2657839-40/6547840 btqtmt@titan.co.in NOIDA TANISHQ,G-49, SECTOR - 18,NOIDA - 201 301,UTTAR PRADESH, 0120 - 6485522 btqtno@titan.co.in SAHARANPUR Tanishq, Opp-Shophiya Market,Court Road, Saharanpur 0132-6450160,2729135,3103493 btqtsp@titan.co.in VARANASI - KUBER Tanishq, Shop No-1, Kuber Complex, Rath Yatra Crossing 0542-2226744,9918700606 btqvar@titan.co.in
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.
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
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.
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
The collection comprises designs, motifs inspired by nature that have been beautifully crafted to make them the most desirable possession this season Moham 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.
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 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 natureher 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.
BONUS:
60% of monthly installment in Annual Plan 130% of monthly installment in Extended Plan
At the end of the scheme period, pick up Tanishq jewelry of your choice worth the amount deposited plus the BONUS
Installment Amount (Rs) 500 1000 1500 2000 2500 3000 4000 5000
Bonus for 12 months scheme 300 600 900 1200 1500 1800 2400 3000
Bonus for 18 months scheme 650 1300 1950 2600 3250 3900 5200 6500
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 banks 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 brands philosophy of being Revitaliser of Tradition. Commenting on Tanishqs 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." Tanishqs 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 womans life through festive promotions, customer contact programmes as well as through Anuttara, Tanishqs 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.
MARKETING
Marketing Equals the Four Ps
Part of marketing is identifying the mix of "Ps" that makes your service unique. This is also called your marketing mix. The next step is to shape your marketing mix and position its components to create a unique identity for your business that attracts and retains customers. Your market position is one or more selected benefits or features that make your operation unique and different. The following steps will help you define your marketing mix: Identify your target market. Determine what the target consumer desires. Assess whether you have any advantages over your competition in delivering the desired service. Choose the position that is most valued by the consumer. Tanishq has excelled in 4 Ps of marketing and hence it is the top brand in India. PLACE PRODUCT PROMOTION PRICE (COST) (DISTRIBUTION) Features Location Publicity List Price Optional Services Frequency of Service Sales Promotion Discounts Product Quality Transportation Personal Selling Credit Terms Staff Quality Distributors Advertising Inclusive/Not Style Inventory Mailing List Remoteness Brand Name Packaging Guarantees
India was the second largest consumer of gold in the world after USA. Before 1992, only the Metal and Mineral Trading Corporation and the State Bank of India were allowed to import gold. In 1992, as part of economic liberalization, the government abolished the Gold Control Act of 1962, allowing free import of gold. In 1993, private companies were allowed to enter the hitherto restricted gold and diamond mining industry. Foreign investors were allowed to hold up to 50% equity in mining ventures. In the 1990s, a number of brands entered the Indian jewellery market. In 1995, Mumbai based jewellery exporter, Gitanjali Jewels, started selling 18carat gold jewellery under the brand name of Gili. Su-Raj (India) Ltd. launched its 22-carat gold and diamond jewellery in 1997. Other well known domestic players included Tribhovandas Bhimji Zaveri, Mehrason's and P. C. Chandra. Among the foreign players who entered the market were Cartiers, Tiffany, De Beers and Ashton Mining. Titan realized that there was a huge untapped market for branded jewellery in India. The critical success factors in the business were quality, fashionable design, and good after-sales service. Titan also observed that the changing lifestyles demanded lighter and trendier jewellery. After its launch, Tanishq faced several problems. With its original focus on exports, Tanishq's designs had been conceptualized for the Western markets and were introduced in India without any alterations. Formal consumer surveys showed that though brand awareness was quite high, it suffered from several negative perceptions. Many potential customers thought the products were over priced and associated the brand only with the rich. Hence, Titan decided to change its strategy on two fronts: Value proposition Retailing. Since the European designs in 18-carat gold did not find any takers in 1997, Tanishq introduced 22-carat ornaments. Customer surveys revealed that gold jewellery was not bought so much for design as for value. Titan also decided to do away with the shop-in-shop formats and started retailing its jewellery through exclusive Tanishq outlets from 1998. 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, Keralite designs in Tamil Nadu and typical designs from Tamil Nadu in Bombay in order to appeal to a variety of people. The same year, Tanishq entered the studded jewellery segment, which it had ignored for long. Titan also tapped institutional customers also. 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. In early 2000, it made miniature gold cars for Hyundai Motors to be given to select dealers. The Tanishq strategy for the coming couple of years relies on two things increasing penetration in the domestic markets and going abroad in order to diversify its revenue portfolio.
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.
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 18carat 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).
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.
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.
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.
MARKET research On TANISHQ 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-turneddesigner 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.
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 brandconscious and opt either for the ones that are highly visible or those that have been embedded in their buying culture through family association.
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.
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 The communication and promotion budget was increased from Rs. 65 million in 1999-2000 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. For the first time, Tanishq initiated a long-term media plan, aiming to give the brand a round-the-year presence and enhance awareness. The communication focused on design and quality instead of the price.
Future Prospects
The Indian branded jewellery market, though nascent, grew at the rate of 2030% during 1998-2000. Besides Tanishq, other major players included Intergold, Gili and Carbon. However, in the Rs 400 billion Indian jewellery market, Tanishq's share was not even 1%.
Not willing to accept this as a 'poor show,' Tanishq saw it as a vast opportunity instead. The company planned to attain a 2% market share in the next few years. Kurian said, "The jewellery market is one of the largest consumer segments in the country. It has an estimated 2,50,000 retailers with no national or international brand and no corporate player. Titan believes that this market is right for consolidation. A consumeroriented, highly ethical corporate player will have great opportunity. Our growth rates in the past three years have fully substantiated this hypothesis." Tanishq had ambitious plans to invest in information technology and utilize Intranets and the Internet to link all of its showrooms to one another. There were also plans to do online monitoring of sales and design popularity as well as using the Internet to place orders. The Intranet was to contain a photo collection of all the designs in all the stores so that even those not in stock in a particular store could be ordered by customers. In a highly innovative move, Tanishq tied up with Countrywide Finance for providing preapproved credit line to the customers at selective outlets. This was expected to boost sales significantly in the future. In May 2000, Tanishq unveiled plans to surpass its parent company's turnover by 2002. Jacob Kurian who had taken over as the CEO the same month, said, "We have finally figured out the jewellery business and should be solidly profitable, shorn of any caveat, this year.
Tanishq launched its "Get Gold free with Diamonds" promotional offer were customer be entitled to win at least one 22-kt one-gram gold coin on every purchase of diamond jewellery worth Rs 5,000 and above. "Get Gold free with Diamonds' caters to the aspirations of Indian woman by providing an opportunity to own diamond jewellery and win gold, which is a huge investment opportunity. Akshaya Tritiya is one of the four most auspicious days of the Vedic calendar. The Akshaya Tritiya pre-booking scheme along with the 10 per cent deduction on making charge offer is available across all Tanishq boutiques
Advertising
Ms Karishma Kapoor the bollywood actress is the brand ambassador of the Product Tanishq.
T V Advertisement: Tanishq focus on the emotional attachment in the advertisement like engagement, marriage and such other occasions. Print advertisement: In Leading news paper and famine magazines are targeted to do the advertisement. In short they know their target market and hence do advertising as required. Bollywood tie-up: Has done tie up with Paheli where in the movie Ms Rani Mukherji Was seen wearing Tanishq jewellery through out and in Jodha Akbar Movie were they launched a product line named Jodha Akbar.
It's a long way for a company that almost folded up before it could turn in its first ever profit. Since, its launch, Tanishq has not only been grappling the tough market conditions but also internal strife and Doubting Thomases.
"Many people believe we should not be here today. They have kept telling us that the business logic is against what we set out to do. But I am glad we have proved them wrong," says Kurian proudly. The estimated Rs 40,000 crore (Rs 400 billion) gold jewellery market in India is a rough one. There are over 300,000 jewellers, each powerful in his neighborhood. Till the last two years, national players were almost non-existent. One of the largest consumers of gold, the Indian household had a marked preference for 22-karat gold, as opposed to the 18-karat designs that jewellery chains worldwide chose to do their designs in. Not surprisingly, the skeptics were asking what was Titan doing in the jewellery business? In the late eighties, when India was facing a massive foreign exchange crisis, Titan, the watches division, was told to look for a way to earn its own foreign exchange. Jewellery seemed like a huge and interesting market to get into and Titan decided to set up Tanishq as a jewellery division that would be focused largely on exports. However, by the time it acquired the skills and set up the plant, the world had changed. India no longer had a foreign currency problem, imports were easy to come by, demand had come down in the global market, supply had grown in Asia and margins had become very thin. Tanishq then decided to focus on the Indian market. In August 1992 a pilot plant was set up and production started in two years later. In 1996, Tanshiq launched its first store. It was a hitherto untried concept. The jewellery business in India was highly fragmented and ruled over by local players. There was no national jeweler that people could buy from, despite that India is the largest consumer of gold in the world. Clearly, the local satraps had a very tight stranglehold on their markets and it was difficult for a pan-Indian player to break into. Being ethical too was a problem. Titan estimates that up customers and the Government is defrauded of up to Rs 5,000 crore (Rs 50 billion) annually due to unethical business practices like under-karatage of gold, misrepresentation of quality and tax evasion. As a company which was part of the Tata group, known for maintaining high ethical standards, Tanishq
prided itself on delivering customer value through a fair and transparent business model. But that wouldn't help. Till 2000, Tanishq could not find its feet in the market and its losses were mounting. In 1998-99 it showed losses of Rs 10.40 crore (Rs 104 million) though sales turnover was increasing. May 2000 turned out to be the defining period in the company's history. The then managing director of the company, Xerxes Desai had a choice between Bhaskar Bhat and Vasant Nangia when it came to deciding who would succeed him. Bhat won and was anointed as the next managing director by Desai himself and Nangia became the chief operating officer. Nangia was the hands-on man at Tanishq. A twenty-year veteran of the group, he was the one who had charted out the expansion plans, which included increasing the number of exclusive boutiques to 67 from the then 30 and launching a new men's range of accessories. But a day after Bhat was announced at the successor to Desai, Nangia quit. He took along with him six senior executives of Titan. It was a blow that many thought would sink the company. "The entire sales and marketing team resigned on that day. The company was rocked by what happened. Many thought this would be finally the way Titan closed down its jewellery business. After all, we were in our fifth consecutive year of losses then," says Kurian. It seemed an ignominious way for a Tata company to go. And like Kurian says it was too soon for the movie to end. So, a new and admittedly inexperienced team was put together. The team had an onerous task on its shoulders. It had to not only stem the increasing losses shown by Tanishq and but also show some profits if the company was to remain in business. Tanishq had quite a few problems on its hands then. Its high decibel media advertising wasn't working. A stream of adverse media reports had instilled the fear that its shareholders would pull out anytime. And worse, it had very little time on its hands to show a turnaround. But as Kurian saw it, Tanishq's woes were rather simple: There were just not enough customers in its stores. "For a retailing chain, that's the worst thing that can happen: having no traffic in the stores," says Kurian. A customer survey revealed multiple problems. Despite its high-blitz ad campaign, many didn't know what Tanishq was about, others found it too expensive and some
felt that the product was not for people like them. Either way, getting customers back into the store became a priority. Profits generated Year Profits generated (Rs crore) 1996-97 1997-98 1998-99 2000-01 2001-02 2002-03 - 10.60 - 21.96 - 10.40 2.07 1.87 7.82
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. "We had customers waiting for the store to open. Sometimes we had to call the security guards because of the crowds. We just couldn't believe it," smiles Kurian. There were other minor tweaks made too. Ad campaigns now started to list out the products that Tanishq had. So bracelets, rings, chains, pendants were explicitly mentioned in each ad. A range starting at Rs 399 was launched. The aim was to bring down the price barrier significantly. Collections for the working women and a new set of contemporary designs were brought into the stores. Almost all of the efforts paid off. A year later, Tanishq had made its first ever profit in the entire existence of the company. It was a measly sum of around Rs 2 crore (Rs 20 million), yet it was a beginning. The next year, the company decided to write off some of the financial baggage it had been carrying. Profits generated dipped as a result but Tanishq was clearly on a revival. The company changed quite a few of its
original strategies along the way. Tanishq had its first showroom in Chennai in 1996. Today it has over 60 showrooms in 47 cities. Only six of these are owned by the company. The rest are run by franchisees. The model has helped take away capital costs from the company and pass them on to franchisees who will invest money to help the company grow. In all, Tanishq managed to limit its fixed asset investment to Rs 27 crore (Rs 270 million). Contribution to Titan's growth Year 1996-97 1997-98 1999-2000 2002-03 Tanshiq contribution to Titan (in percent) 8 14 24 43
Post September 11 attack on the World Trade Center, the volatility in the gold prices led to a steep decline in the demand for gold. In 2002, the gold demand declined by 19 per cent, from 843 tonnes to 680 tonnes. However, Tanishq was on a roll. It grew its retail sales during 2002-03 to Rs 332 crore (Rs 3.32 billion) from Rs 239 crore (Rs 2.39 billion). Almost Rs 57 crore (Rs 570 million) came through corporate sales and exports. Corporate and institutional sales had become an unexpected money-spinner for the jewellers. Today, Tanishq counts companies like Hindustan Lever Limited, Pfizer, National Panasonic, UB Group, Tata Tea and Tata Chemicals among its clients. "We saw corporate sales as a new route to customer acquisition. Institutional sales help us beat targets," says Kurian. Since the last three years, Kurian and his team have brought in quite a few changes to the way Tanishq operates. A steady stream of jewellery collections each with its distinct target audience has been launched. 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 stable in the last three years. Manufacturing has been made more flexible. New Japanese manufacturing machines have been introduced at the Hosur, Tamil Nadu plant of the company. The emphasis is now on customisation according to customer demands. The challenges remain. Profit figures have yet to rise significantly. In 200203, on revenues of Rs 389 crore (Rs 3.89 billion), Tanishq made a profit of only Rs 7.82 crore (Rs 78.2 million). A slew of national brands have sprung up. From Nakshatra to TBZ to Carbon, Tanishq has to battle a lot more at the market place. Yet, Kurian says now it's a great time to be in business. "We believe jewellery business is one of the few 'China-proof, WalMart-proof' kind of businesses," he grins
Tanishq launches Free gold coin offer campaign July 19, 2008 (India) Tanishq to spread its radiance with new stores May 15, 2008 (India) Celebrate Akshaya Trithiya with Tanishq jewellery May 02, 2008 (India) Tanishq Jodhaa Akbar collection - prt January 28, 2008 (India) Royal Mughal appearance in Tanishq jewelry January 28, 2008 (India) Tanishq opens 3rd exclusive showroom in Chandigarh November 20, 2007 (India) 100th store in Patna & still countingTanishq October 26, 2007 (India) Tanishq is a perfect gift for your sister! August 18, 2007 (India) Tanishq targets US jewelry market April 09, 2007 (India) Tanishq unveils coveted Miss India 2007 crown March 23, 2007 (India) Tanishq launches elegant fashion earring collection November 16, 2006 (India) US to shine with Indian jewellary November 03, 2006 (India) Celebrate DHANTERAS with exquisite jewellery from Tanishq October 10, 2006 (India)
Tanishq Jewellery adds glamour to women's ensemble October 04, 2006 (India) Tanishq expects 15-20% sales gain this year August 03, 2006 (India) Tanishq to strengthen its presence July 31, 2006 (India) Tanishq launches Colors of Royalty range jewelry April 17, 2006 (India) Tanishq's 'up to 25 per cent off scheme January 31, 2006 (India) Tanishq introduces exquisite 'Paheli Collection' July 02, 2005 (India) Tanishq introduces exclusive 'Paheli' collection June 24, 2005 (India) Tatas Tanishq registers sales worth Rs 570 cr in FY-05 May 06, 2005 (India) Tanishq launches exquisite collection for womens day March 07, 2005 (India) Tanishq and Titan declared The Most Admired Brands Of The Year at LIFA January 27, 2005 (India) Tanishq Launches Aria Collection October 07, 2003 (UAE)
Titan opened its first Tanishq jewelry brand outlets in Chicago and New Jersey by January 2008.
GLOBALIZATION
Company aims to expand this into a 10-store chain with initial investment of US $6-7 million. Tanishq has targeted the worlds biggest jewelry market, through either franchisee or self-owned outlets. Currently, US jewelry market is valued at around $16 billion. The Indian jewellery manufacturer plans to launch its pilot retail jewellery store in Chicago, US, in July. The store is proposed as a 2000 sq.ft. Facility, where the jeweller would retail 18 karat gold and diamond studded jewellery. The designs at the store have been inspired and themed basis the lifestyle of modern American women, with concepts like Rain, Yoga, while native American influences like a local tree in New York have also inspired the jewellery collections. Price points for the jewellery have been determined between $400-$12,000. Tanishq would inch its way to open a second store in the next three to four months, in New Jersey.
SUGGESTIONS
1. An aggressive advertising campaigning should be there to encourage more people to buy.
2.
There is a great potential for the Tanishq jewelry because the people are ready to invest in the gold as there is a positive responses. People are focusing on the purity and new design in jewelry as well as traditional jewelry.
3.
4. Tanishq should focus on the increasing the chain of store in small cities to promote the branded jewelry market.
Bibliography
BOOKS
Kotler Philip, marketing management, (Pearson education, 12th edition)
Malhotra K. Naresh, marketing research (An applied orientation), Research design, (Prentice hall of India pvt. 5th edition) Berman B and Evans J.R, Retail Management (Pearson education, 10th edition)
Louden D.L. & bitta delia consumer behavior ( tata Mc. Graw hill, 4th edition ) Newman A.J. and Cullen P,Retailing,Environment and operations(Vikas,1st Ed.)