Positioning of Tanishq

VIVEK COLLEGE OF COMMERCE
CHAPTER 1: HISTORY AND EVOLUTION
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 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.
Positioning of Tanishq Brand
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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 behaviour, 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 licenses were easy to obtain and the global demand-supply equation for jewellery 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.
State Of Art Manufacturing Facility

Tanishq has set up its 1,35,000 sq ft production factory at Hosur, Tamil Nadu. Well equipped with modern machinery, this factory functions as the production and sourcing base for the research of the jewelry crafts in India. Every product here is painstakingly crafted to perfection to keep in line with Tanishqs repute. Presently, this factory employs more than three hundred and eighty highly skilled workforces, among who are award winning designers, who along with the rest of the team support the back end processes. The capability of Tanishq is supported by a number of tools such as the energetic Integrated Supply Chain Management system and the Vacuum Melting Unit (which ascertains the purity of the jewellery) among others. To maintain its status, Tanishq continuously incorporates different strategies from time to time to keep the fire of innovation burning, something that is most critical to todays organizations.
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CHAPTER 2: TANISHQ PRODUCTS
Tanishq Diamond
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.
Cut, Color, Carat & Clarity
The 4Cs are used throughout the world to classify the rarity of diamonds. Diamonds with the combination of the highest 4Cs ratings are more rare, and consequently more expensive. Light is the element that ignites a diamond's brilliance and fire. Its interplay with each of the 4Cs will help explain why one diamond can appear more beautiful than another. The good news is that you don't need to buy the rarest diamond to find one whose beauty speaks to you. Cut is the only one of the 4Cs of diamonds that is influenced by the human hand. The rest (color, clarity and carat) are created naturally as diamonds form in the earth. At Tanishq we ensure that the most ideal cut diamonds are used, so that the facets when arranged in precise proportions maximize brilliance and sparkle. Tanishq diamonds are certified by its own team of skilled gemologists or diamond graders, experts trained at GIA. The authenticity of each diamond is based on the GIA(Gemological Institute of America) standard, the highest measure for diamond grading in the world. When exchanged Tanishq provides you with the current value of diamonds, hence giving you the benefit of appreciation over a period of time. Positioning of Tanishq Brand Page 3
Tanishq Gold
Tanishq offers you a wide range of gold jewelry in pure 22k. Our range of gold jewelry has been designed to suit all occasions from wedding to everyday wear. 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.
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Gold Coin
Every Tanishq gold coin is precisely engineered with care using the latest state-of-theart facility and modern technologies to turn the solid gold into master crafted coins. Coins, available in 24K (9999 purity standard used by Swiss banks) and 22K Gold. At Tanishq, gold coins an excellent form of investment and are available in various denominations ranging from half a gram, one, two, four, five, eight, ten and 50 gms. Gold Bricks of 1 kg and Biscuits or Bars in denominations of 100 and 500 gms are also available These coins are also available with images of Ganesha, Laxmi, Balaji, Saibaba, Allah, Om, Ayyappa, Cross and any other motifs. We also undertake institutional orders. When you exchange any Tanishq gold coin with jewelry, you get the benefit of the appreciated current gold rate and there is no deduction, a full value exchange is done on the same.
Karat Meter
Karat meter is technically called X-Ray Fluorescence (XRF) Spectrometer. Tanishq named it as karat meter for easy understanding to customers. The analysis of gold in gold jewelry alloys has been performed during the last thirty centuries by the cupellation or fire assay method. Although it is the most accurate technique it is also destructive. The touch stone method has been there for centuries but is not an accurate method of testing gold. Its accuracy is dependent on composition and colour of alloy, quality of touch stone, strength of touch acid, lighting conditions and operator skill. The test is not suitable for very high karat gold or hard white gold.
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WHAT THEN ARE THE BENEFITS OF USING A TANISHQ KARATMETER?

It offers non-contact and non-destructive testing. Sample material is not consumed. It is extremely fast. Measurement takes only minutes, and results are obtained immediately.
It can identify all elements in the sample and their respective weight percentages (composition)
The results are operator independent, so different people using the system will get the same results.
X-ray assay is NIST (National Institute of Standards Technology) traceable and confirms with ASTM B568 and ISO 3497.
Shine A White Gold Collection By Tanishq
Shine, the white gold collection from Tanishq offers you jewellery you can wear anywhere. Whether at a wedding or a day at work, Shine has designs to suit every occasion. From floral motifs and intricate work to classy and contemporary designs, the Shine collection will lend you the kind of sophisticated elegance that only White Gold can. The White Gold metal owes its shine and longevity to being an alloy of gold and at least one white metal (nickel, manganese or palladium.) Usually, the White gold composition is 75% Gold and 25% Nickel (which gives the metal its white colour), Silver, Copper and Zinc. Just like yellow gold, its purity is measured in karats.
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Mia Tanishq
Tanishq gets young women to interpret design, utility for Mia. The jewellery brand had launched a crowd sourcing campaign 'My Expression to create a new line of jewellery for young working women On 26 December 2011, Tanishq launched an online contest inviting consumers to submit ideas for sub-brand Mia (launched in November2011) - a new line of jewellery for young working women. Through a crowd sourcing campaign called 'My Expression', Tanishq chose 10finalists who have gone on to co-create the Mia collection along with Tanishq's design team.
Mia Tanishq is a stunning range of fine, urban-chic, affordable jewellery starting at Rs. 4999/- exclusively crafted for Working Women to ensure that you're appreciated in your work place and makes you enjoy your work life like never before. Based on 2 design directions, Quest (no beginning and no end - Infinity) and Blossom (Born to Blossom - Born to Shine - Floral), this collection is truly a winner at work.
Truly capturing the essence of the urban, independent working women, Mia is inspired by the individuality of each one of you and truly projects power, confidence and taste. Titan Industries' Jewellery brand, Tanishq has created - Mia - specifically as a wearable jewellery brand for working women. Mia will be retailing through the 130 Tanishq stores in 79 towns. The price range for the products will be between Rs 6,000 and Rs 50,000.
The Mia range will include a modern range and an ethno-contemporary range spread across earrings, finger rings, pendants and bangles. The company expects the average ticket size for Mia to be around Rs 25,000. The brand was launched with an online teaser campaign, and the mass media campaign involving outdoor, print, television and online breaks.
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Tanishq comprises the majority of jewellery sales of Titan Industries, with other brands Gold Plus and Zoya estimated to contribute less than 10%. Of Titan's turnover of Rs 6,571 crore in 2010-11, jewellery accounted for Rs 5,014 crore.
The Wedding Collection

The bride blushes: Everton around smile; The shenai announces festivity The priests chant auspicious promises, She walks demurely, A vision of beauty, Her jeweler are exquisite, crafted by best in the land, as pure as the blessing bestowed to her.
The Zoya Collection

I n t r i c a c y c o u p l e d w i t h t h e s i m p l i c i t y ; T h e m a g n i f i c e n c e o f histor y interwoven with linear contemporary; Secrets of the pharaohs
m a s k e d w i t h t h e m y s t e r y o f t h e c o s m o s ; o r i e n t a l art embellished with occidental architecture; nature's bounty matched with man's ingenuity
The 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.
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The 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).I t i s d i f f i c u l t f o r j e w e l e r s t o e n s u r e t h e p u r i t y a n d c o r r e c t gram mage of the product since it involves so many stages. H o w e v e r , T a n i s h q e n s u r e s t h e k a r a t a g e a n d n e t w t o f t h e product
The Colours of Royalty Collection

Colour of Royalty a range of exquisite studded jewellery reminiscent of the magical Victorian era. T h e c o l l e c t i o n i s 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 T a n i s h q c o m p r i s e s m o r e t h a n 2 0 0 p i e c e s a n d i s b y f a r t h e 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
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The Moham Collection

The collection comprises designs, motifs inspired by nature t h a t h a v e b e e n b e a u t i f u l l y c r a f t e d t o m a k e t h e m t h e m o s t desirable possession this season M o h a m is a range of exclusive ruby studded
j e w e l l e r y t h a t embodies the auspiciousness the color red has in our lives. R u b i e s h a v e b e e n a s s o c i a t e d w i t h p r o s p e r i t y , p a s s i o n a n d 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
The Aria Collection

A r i a i s a c o l l e c t i o n o f v a r i e t y o f e v e r y d a y j e w e l l e r y w h i c h depict various moods and feelings: Mysteries of love, Mysteries of passion Mysteries of envy, Bewitching, Fascinating, Enchanting, Hypnotizing, and Sensuous
Exquisite Crowns and Jewelry

Tanishq, India's most innovative jewelry brand, unveiled the aweinspiring set of crowns and its 'Colors of Royalty' range of jewellery, specially crafted for Indias leading beauty pageant femina miss India 2007. Tanishq has built itself a reputation of bringing
innovatived e s i g n s t h a t s u i t t h e n e e d s o f " t h e e v e r c h a n g i n g n e v e r - changing" Indian woman. The crowns have been designed to c o n v e y t h e e s s e n c e o f I n d i a t h r o u g h t h e u s e o f distinctive motifs such as the traditional and auspicious 'teeka'.
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CHAPTER 3: BRAND POSITIONING
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 carat meter. T a n i s h q a l s o h a s b e e n p o s i t i o n e d a s a b r a n d e d j e w e l l e r y o f l u x u r y r a t h e r t h a n commodity. It moves jewellery beyond investment to the fashion and adornment sector. The fact that it belongs to the Tata family assures the customer that with Tanishq, all that glitters is certainly pure gold. In a market that has traditionally been dominated by family jewelers, it took the entry of Tanishq, Indias largest, most desirable, and fastest growing jewellery brand from the house of Titan in 1995, to give Indians access to a product whose promise was truly as good as gold.
Tanishqs appeal lies in the wealth of its designs and purity of gold. It has won the trust and admiration of customers and created a unique position for itself in the marketplace. The association with Bollywood blockbusters like Paheli and Jodhaa Akbar and the 2003 Miss India beauty pageant have enhanced the brands appeal, lending it an aura of elegance and grandeur.
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Promotion in Bollywood movie paheli
Tanishq stands out as a brand that abides by values of trustworthiness, credibility and respect. The power of the brand was further enhanced with the introduction of karat meters a tool that helped customers gauge the quality of their gold in every Tanishq outlet By introducing revolutionary, innovative designs in a market that worships tradition, the brand created its own tradition of retail success. Yet Tanishq is more than just a jewellery retailer. It stands for reassurance of quality and ethics. The fact that it belongs to the Tata family assures the customer that with Tanishq, all that glitters is certainly pure gold.
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Promise of purity and a unique experience Design and retail innovation have been the hallmark of tanishq all thers years First and only jweller who guarantees the purity of its gold jewellery and cerifies the quality its diamond colored gems in writing.
Trust It has established itself as a highly ethical player in the market that was rates as having the highest incidence of under karatage (bureau of Indian standards) They even have gold meters where one can check the purity of gold. Luxury Tanishq also has been positioned as a branded jewellery of luxury rather than commodity. It moves jewellery beyond the investment to the fashion and adornment sector.
Superior product In order to compete with regional players, tanishq introduced the concept of consistency in delivering promise. Tanishq is known for its ability to develop specialized design collection. It is the only jeweler that houses the full-fledged design studio with the team of several international award winning Indian designer Offer a totally new prospective to jewellery buying especially when it comes to exquisite oriental jewellery.
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Tanishq Strategies
Piloted an offering of 22-karat plain gold jewellery with about 400 designs
Multimedia campaigns were launched in press and on TV to focus on traditional designs
Prevailing under-karatage problems industry wide were countered by installing karat-meter
Seven-stone concept helped Tanishq to overcome the perception of it being a Westernized brand
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CHAPTER 4: 4 PS OF MARKETING
Products
Tanishq today is India's most inspirational 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 a r e o v e r w h e l m i n g a n d c o u l d 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. Rec ently, 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 j e w e l l e r y w i t h p u r i t y i n g o l d . I t i s t h e f i r s t a n d o n l y jeweler that guarantees the purity of its gold jewellery and c e r t i f i e s t h e q u a l i t y o f t h e p r e c i o u s / s e m i - precious stones in writing. They claim and deliver the exact carats and weight that they promise. Positioning of Tanishq Brand Page 15
Impurity in g o l d a n d n o t d e l i v e r i n g w h a t w a s p r o m i s e d i s o n e o f t h e m a i n p r o b l e m s t h e 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 i t s p r o d u c t s w h e r e v e r t h e y a r e s o l d . T h i s s h o w s t h a t t h e y h a v e a r e s o l u t e c o r e 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 i t s a b i l i t y t o 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 9to-5 jewellery, the collection is stylish and modern and is designed to suit all forms of attire, western and Indian, casual and formal.
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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.
Services One of the companys most important initiatives as customer service enhancement. Tanishq launched a direct consumer contact program and conducted surveys to monitor store walk-ins and footfalls and percentage of repeat customers. The company also kept the entry-level price as low as Rs 600 (for a pendant) and offered a range, which far exceeded that offered by any other jeweler. All Tanishq outlets gave a 100% return guarantee on its brand of jewellery and also exchanged other jewellery after deduction depending on purity.
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. Ithas 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 Positioning of Tanishq Brand Page 17
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 C o c a - C o l a , t h e U B G r o u p , W h i r l p o o l , T V S G r o u p , C e a t a n d L i b e r t y s h o e s . I n 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 womens life through festive promotions, customer contact programs as well as through Anuttara Tanishqs exclusive consumer reward program etc.
The brand is very active across the media. Tanishq have a two prong branding strategy. The company has the main brand Tanishq and lot of sub brands for its different collections. Some of these brands are Solo, Aria, Diva , Collection G etc. Tanishq recently roped in the new Bollywood diva Asin to endorse a collection. To tide over the issue of low margins, Tanishq has recently launched the diamond collection which is considered to be a high margin product line.
Tanishq has been trying to differentiate on the designs. It had built lot of product lines
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and has branded these lines. The brand feels that consumers will chose Tanishq for its designs.
Tanishq provides Gift vouchers in various denominations for gifting your friends and family. Tanishq, to set off competition, launched Jodhaa Akbar collection and managedto get lot of marketing hype. The collection is very pricey and suggested retail price is between Rs 25,000 to Rs 15 Lakhs.
Tanishq, India's most desired jewellery brand unveils their new line of exquisite gold jewellery collection "Blush"- For the girl in you.
Place
Tanishq jewellery is crafted in one of the world's most modern f a c t o r i e s . T h e 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.
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Tanishq has undertaken several unique retail initiatives keeping i n m i n d t h e 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.Design and retail innovation have been the hallmark of Tanishq all these years. Tanishq has constantly formulated an innovative product strategy in this journey inline 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.
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. Tanishqs retail boutiques are temples for the brand and are used as a platform for celebration, be it the launch of a new collection, a new marketing promotion or a festival. This gives Tanishq outlets a unique appeal and consumers an opportunity to heighten their shopping experience.
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Pricing
Tanishq have very large collections of pendants, earrings and fingerings in this price range Rs 2000-5000. Tanishq range of products start at an accessible low of Rs.600 and the range - Solo, Aria, Diva, Hoopla, Lightweights, Bandhan and the most recent, Colours - comprises wearable everyday jewellery which has been designed for the urban working woman. The Tanishq Valentines Day collection includes pendants, earrings and finger rings starting from Rs. 2,000 onwards. Daytimes 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 b e s t p r i c e a n d product options. Affordably priced from Rs 2,500/- onwards the Tanishq range of diamond jewellery is the ideal accessory for the customers. T h i s c o l l e c t i o n i s 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.
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CHAPTER 5: SEGMENTATION
Niche Marketing
After
its
inception
in
1995
focus
on
exports,
Tanishq's
designs
had
beenconceptualized for the Western markets and were introduced in India withoutany alterations. Tanishq positioned itself as an international brand for theIndian elite. The brand was targeted at a niche market. However they later onstarted targeting the mass marketing since 1997
Psychographic Segmentation
Life Style: Tanishq has found that 40% of the Indian women are working andthey targeted this segment with a specific group of products called collection-G, a 9-to-5 jewellery for the working women.
Geographical Segmentation
Titan realized that, given the diverse nature of Indian ethnicity, it would haveto satisfy the tastes of all regions. So, the designs became more ethnic. Titanalso decided to transpose designs by stocking Bengali designs in Delhi,Keralite designs in Tamil Nadu and typical designs from Tamil Nadu inBombay in order to appeal to a variety of people
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Target Market
Class
Consumer Profile
Product Preference
Company Preference Tanishq and geetanjali
High
Inherited income/ professionals/ business/ exceptional ability
Branded designer jewellery and diamond studded jewellery Branded jewellery
Upper Middle
Professionals/ business/ career oriented/ executives
Tanishq
Middle
White collar, educated
Un branded jewellery as well as high quality artificial jewellery
Local shops like pp jewelers
Lower Middle
Blue collar, skilled
Artificial jewellery
No company preference
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Competitors
D'damas Diamonds
D'damas Diamonds are part of Gitanjali Digico Group and one o f t h e 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. Ddamas diamonds claims to promote a range of emotions
through their collection.
Asmi
Asmi, one of the leading diamond brands of the countr y, w as launched, In 2002 by The diamond Trading Company Limited. (DTC). The Asmi diamond jewellery collection is crafted to beautifully compliment and complete her. Asmi caters to the women of substance and satisfies her mind for rewards, recognition, evolving to suit her style and personality.
The brand has been endorsed by various celebrities such as Kajol, Mandira Bedi & Perizad. A l l t h e s e w o m e n e p i t o m i z e t h e d i f f e r e n t s t r e n g t h s . A n A s m i woman is closely identifies wi th free-spirited, goal-oriented & with an inner fire.
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CHAPTER 6: TANISHQ IDENTITY CRISIS AND RE-POSITIONING
Tanishq started off selling 18 carat gold jewelers. The brand at that time was positioned as a jewellery for daily wear . But the brand ran into difficulties since the consumers were too sticky about 22 carat ornaments. The light weight jewellery was still alien to the consumers. Tanishq was depending heavily on the pull factor. The brand relied on the design ranges, the trust that the Tata brand carries and also the reliability factor. One of the major hurdles that the brand faced was the brand recognition during its initial stages. People did not know about the Tanishq brand . Since gold is a high value- high involvement purchase, consumers were risk averse in trying out a new retail format like Tanishq. The consumers were also less responsive to the premium that Tanishq jewellery commanded.
Sold to a more westernized audience evoking Nice but not for me reaction Underwent several strategic retooling to reach the traditional but modern Indian woman segment
Focused primarily on studded jewelry but grappled with the 18 karat vs. 22karat issue
The setting of their stores intimidated the Indian consumers They had always positioned themselves as Jewelry for adornment and notfor investment
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Re-Positioning Strategy
It takes lot of time to change the consumer perception. It is harder if this behavior is rooted in tradition. Gold retailing is heavily rooted in tradition. If we look at the genesis of local jewelers, most of them have a long tradition and their business and clientele has been built over generations.
Since the pricing of gold jewellery is tricky and complex, consumers also tended to rely on their traditional store rather than experimenting with new stores. But these have changed in recent times. The stores has been exploiting the consumers by complex pricing policies like making charges", value addition etc which an ordinary consumer seldom understand. Tanishq has been trying to tap on this need for a honest gold retailer.
Along the way , the brand also had to fight the perception of being a premium brand. In a classic case of over positioning, the brand had to convince the consumer that Tanishq had jewellery which was affordable. Over positioning is where the brand narrowly positions itself and consumer tend to have a narrow image of the brand.
To tide over this issue, Tanishq came out with small priced collections which to an extend corrected the perception problem. According to the company website, Tanishq had a turnover of over Rs 1200 crores.
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Daytimes, diamond based collection was launched as affordable, casual, young and contemporary
Colors- colored jewellery corrected the impression of Tanishq having only modern designs
Aarka positioned Tanishq as high fashion 22-karat gold collection
Aamra, a collection of studded jewellery was an attempt to move Tanishq from being a traditional studded collection inspired by mango motif.
Designed jewellery for the movie Paheli and subsequent incorporation of the themes in TV ads which echoed Paheli theme acted as a springboard for Tanishq
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CHAPTER 7: MICHAEL PORTERS FIVE FORCE MODEL FOR JEWELLERY INDUSTRY
Inter-Firm Rivalry High
Two t ypes of rivalr y. 1. Inside India 2. Outside India
Large presence of unorganized sector. 0.2 Million Gold jewelers and over 8,000 Diamond jewelers International rivals Such as China Threat from producing nation like S.A. & Russia.
Bargaining Power of Suppliers Medium
In jewellery industry the suppliers are S.A., UAE, Australia, US, Congo, Botswana,Russia, DTC.
Bargaining power
of India is
enhanced
because
India
is
largest consumer of gold jewellery. Skilled labor Few alternatives of cutting and polishing
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Bargaining Power Of Buyers Low
Divided in two types 1. Domestic buyers 2 . Foreign buyers
As investment (Demand increase)
Bargaining power of Indian
exporter is high because of the worlds rough diamond production is cut and polished in India
Threat of Substitute- Low
Substitutes are Real assets, Stock market, & Bank deposits & mutual fund investment and Other types of jewellery like imitation jewellery, bagasra jewellery, stone jewellery etc
Second preferred investment behind bank deposits
Status and standard of living increase so demand is increasing at high rate.
Barriers to Entry- Low To Medium
Low capital requirement Government subsidy Exim policy and Governments rules and regulations are high Skilled men power is essential Advanced technology is required
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CHAPTER 8: CONCLUSION AND RECOMMENDATIONS
Recommendations
India is a huge country, consisting of a wide variety of people having different income segments. The middle income group in India is yet not strong enough to sport branded jewellery. That is the only reason that they still prefer going to traditional jewelers. For Tanishq the company should carry on with the concept of Gold Plus, as it caters to this potential segment that cannot afford Tanishq but definitely aspire for it. This would not only help the company to retain and expand its customer base, but would also ensure that as and when this segment grows (as projected by many reports on Indian middle income group) would buy Tanishq only.
Company has to be careful in retailing the Gold Plus brand, there should not be any mixing of the two brands in the same store, the Gold Plus stores should be separate and the store ambience should click to the minds of the target segment. The quality of service and designs should be at par so that the brand equity of Tanishq is not dissolved.
As the communication strategy of the brand is very good there should not be any dissonance in the minds of the customers regarding GoldPlus and Tanishq.
The return on investment for GoldPlus during first year was 19% as mentioned in Erode franchisee balance sheet, which depicts a good picture of the new business model by Titan group. The cumulative profit earned by each business model is much more than what it would be if its merged into a single business model.
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As the target segment for Tanishq and Gold Plus are very different from each other therefore the chances of cannibalization are rare.
The ROE of Tanishq as estimated in year 2011 is 90.60% while that of Gold Plus is 66%.To make this possible the company will have to follow a branded house strategy for both the brands. A branded house, when done properly, has an overarching reassurance to the customer that those that choose this BRAND share an attribute not a product attribute but an identifiable personal attribute that not only sets them apart but is integral to their own personal identification. Choosing such a brand is not necessarily a matter of showing off or display. Rather it is absolutely a means of selfdiscovery and personal fulfillment instead of having to rely solely on product attributes like in the house of brands model.
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Conclusion
This is the era of technology. Technology and new innovation could lead Tanishq to new heights and in this way it could outdo its
weaknesses. Like, the high tech machineries which the b r a n d e d 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 a p p r o p r i a t e t i m e t o t a r g e t t h e t y r e - 3 c i t i e s t o i n c r e a s e t h e m a r k e t share and to increase the profits to a large extent. If all measures are taken properly then it could easily increase its market share.
Tanishq have to capture the market, it will have to take the brand promotion to the local market. Since the brand is operating on a franchise model, it will have difficulty in localizing its brand promotional activities. I do not remember any campaign which is highly memorable for this brand. In this business, one has to have a higher share of mind and share of voice in order to be successful.
The brand also faces the issue of fluctuating gold prices. The concept of a fixed MRP in gold jewellery will not work and usually the mark-up and other charges vary with seasons and demand. When you are operating on a national scale, these issues makes the operations very complex. Jewellery business has not become a commodity business and margins also have come down drastically.
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When Tanishq launched the everyday -wear, it was a concept that was ahead of its time. But I feel that the younger generation is now opening up to the concept of such a collection. The ballooning gold prices are also an opportunity for Tanishq to rejuvenate such a line of jewelery.
Tanishq has reached a position from where it can scale up the business to the next level . The brand has to localise its promotional campaigns which will inturn make the brand more visible among the local consumers.
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WEBLIOGRAPHY
http://www.scribd.com/doc/18335903/Marketing-Management-i-Final-ProjectReport
http://www.scribd.com/doc/57358547/MM-Project-on-Tanishq
http://www.scribd.com/doc/49186225/MARKETING-JEWELLERY-PROJECT
http://hbr.org/product/tanishq-positioning-to-capture-the-indian-woman-s/an/507025-PDF-ENG
http://www.123helpme.com/tanishq-positioning-to-capture-indian-womens-heartsview.asp?id=167603
http://marketingpractice.blogspot.in/2009/02/tanishq-revitaliser-of-tradition.html
http://www.tata.com/media/articles/inside.aspx?artid=bpa1UvBryIM=
http://www.scribd.com/doc/13047373/TANISHQ-JWELLERY-BRAND-PROJECT
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VIVEK COLLEGE OF COMMERCE

CHAPTER 1: HISTORY AND EVOLUTION