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Marketing Management

Project Report

Submitted To:- Submitted By:-


A.N Bhattacharya Ahmad Nadeem
Ankur Sharma
Gaurav Pathak
Mohsin Ajaz
Jitendra Sharma
Acknowledgement

We are extremely thankful to Mr. A.N Bhattacharya for


giving us the opportunity to undertake this project in Marketing
Management and for his overall support, valuable guidance,
astute judgment, constructive criticism and an eye for
perfection without which this project would not have been in its
present shape.

And last but not the least we are also thankful to all our
group members who made valuable contributions and
constructive feedback towards the completion of this project.

Introduction
An Indian Brand, which can make big in the global market, is
Tanishq from Tata Group of Industries. Tanishq is India's largest,
most desirable and fastest growing jewellery brand in India. Tanishq
today is India's most aspirational fine jewellery brand with an
exquisite range of gold jewellery studded with diamonds or colored
gems and a wide range of equally spectacular jewellery in 22Kt pure
gold. Exquisite platinum jewellery and designer silverware is also
part of the product range.
Though they faced many difficulties in the early stages for about
six years, they then came with up with good strategies. The Tanishq
strategy for the coming couple of years relies on two things:—

● Increasing penetration in the domestic markets.


● Going abroad in order to diversify its revenue portfolio.

To push penetration in other markets, Tanishq will use the


‘shop-in-shop’ concept that it already follows in 50 stores across
different West Asian markets. “This reduces distribution costs. Also,
for the consumer it remains a Tanishq store and helps us get a foot in
to the market.

Their main core competency is in designing a wide range of


products. They were the first to come up with the idea of carat meter,
which proves the quality of the gold, to win the trust of the customer.

Evolution of Tanishq
Titan came into existence in July 1984, when the Tata Group
joined hands with the Tamil Nadu Industrial Development
Corporation (TIDCO) to make a foray into the watch industry.
Titan started manufacturing jewellery watches and jewellery in
1994. It set up its fully integrated Rs. 400 million-jewellery plant in
Hosur. The plant had the capacity to manufacture four tonnes of gold
in a year. Titan launched these products under the brand name of
Tanishq, in 1995. The name Tanishq, a blend of two words, 'tan'
(body) and 'ishq' (love), was coined by Xerxes Desai, the then Vice-
Chairman and Managing Director of Titan.
To change its image from a watch manufacturer to a fashion
accessories manufacturer, Titan was renamed Titan Industries Ltd. in
1995. Titan scaled the capacity of its Hosur plant to 4.18 million
units in 1996 to meet the domestic and international demand. From
the late 1990s, Titan's commitment to the jewellery business
increased.
When Titan launched Tanishq in 1995, the jewellery industry in
India valued at Rs. 40,000 crore was mostly unorganized, with
around 3.5 lakh players. Before 1992,only the Metal and Mineral
Trading Corporation and the State Bank of India were allowed to
import gold. In 1992, as part of economic liberalization, the
government abolished the Gold Control Act of 1962, allowing free
import of gold.
In 1993, private companies were allowed to enter the hitherto
restricted gold and diamond mining industry. Foreign investors were
allowed to hold up to 50% equity in mining ventures.

Competitors
• 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.

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

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

• Gili

Gili launched a collection of traditional Indian ornaments made


of 18-carat gold. In1999, the Gili Gold range was introduced. This
range included rings, pendants,earrings, necklaces and bangles made
of 24-carat gold. All Gili products came with a guarantee of diamond
and gold quality.
Gili distributed its jewellery priced between Rs. 500 and Rs.
40,000 through lifestyle and department stores across the country to
increase accessibility among its target segment, the 15 to 30 age
group. Gili distributed its jewellery priced between Rs. 500 and Rs.
40,000 through lifestyle and department stores across the country to
increase accessibility among its target segment, the 15 to 30 age
group. The collection was promoted at college campuses with
banners, pamphlets and afew advertisements targeted at teens. Gili
soon realized that just pushing its product was not enough; it also had
to customize its products for special occasions. Following this, it
launched a Diamond Heart Collection specially designed for
Valentine's Day. This collection consisting of tiny, heart-shaped
diamond jewellery was well received by teens. Special packaging,
catchy advertising and extensive press coverage contributed to the
success of the collection. Gili also made special promotional offers
during festive seasons like Christmas and Diwali. Having captured
the low price point market of Rs.2000 to Rs.10, 000, the company is
focused on penetrating the premium market of customized jewellery.
For this Gitanjali jewels opened a jewellery salon, Gianti, to provide
customized jewellery to clients in India.

4 P’s of Marketing
PRODUCT
•PRODUCT VARIETY
Tanishq today is India's most aspirational fine jewellery brand
with an exquisite range of gold jewellery studded with diamonds or
colored gems and a wide range of equally spectacular jewellery in
22Kt pure gold.
Tanishq designs and manufactures jewellery that is breath-
taking, contemporary and yet has a tint of tradition. It produces 22
carat pure gold earrings that come in various shapes, sizes and
designs. Some earrings are embedded with precious stones or colour
gemstones. These jewellery sets are overwhelming and could prove
to be apt for occasions such as marriage, festivities etc. Furthermore,
they also make bangles, chains, nose pins, pendants, finger rings,
Mangal Sutras etc. They also produce products made from silver
such as deity idols etc. Recently,Tanishq has started producing
diamond jewellery that are affordable and stunning. The diamond
jewellery include collections such as: All Day Diamonds, Aria,
Dewdrops, Tanishq Solo, Dancing Diamonds etc. These collections
come with a certificate of authenticity that states the caratage, color
and clarity of the diamond.

•QUALITY

Consistency in delivering on their promise - Tanishq promises


superior quality jewellery with purity in gold. It is the first and only
jeweller that guarantees the purity of its gold jewellery and certifies
the quality of the precious/semi-precious stones in writing.
They claim and deliver the exact carats and weight that they promise.
Impurity in gold and not delivering what was promised is one of the
main problems the consumers face when going for gold purchase.
They eliminated this and have built its brand in trust. Tanishq now
stands for quality and purity. They even have gold meters where one
can check the purity of gold. Thus it has established itself as a highly
ethical player in a market that was rated as having the highest
incidence of under caratage (Bureau of Indian Standards).It
maintains its quality standards in all its products wherever they are
sold. This shows that they have a resolute core purpose. This is what
they will have to maintain even when they global. They havethe right
range of products for the different markets across the globe. Only
theyhave to remember their differentiating factor. The differentiating
factor for Tanishqwill be the experience and quality they will be
giving the consumers when theycome to the store.

•DESIGN

Widely acknowledged as a design leader, Tanishq is known for


its ability to develop specialized design collections.
Each piece of jewellery is designed by a team of award winning
designers. In fact, Tanishq is the only jeweler to have a full- fledged
design studio with one of the largest design teams in the country.
Every product at Tanishq is painstakingly crafted to perfection.
Diligent care and quality processes ensure that the Tanishq finish is
unmatched by any other jeweller in the country.
Tanishq was recently adjudged the Most Admired Jewellery brand
(for the third consecutive time) in India at the Images Fashion
awards 2004. It has also been judged as the Images Retailer of Year
in the fashion category. Positioned as ‘9-to-5jewellery’, the
collection is stylish and modern and is designed to suit all forms of
attire, western and Indian, casual and formal.

•BRAND NAME

"Jewellery is one of the last great commodity frontiers in India;


it has remained so because this market is very fragmented, very
unorganized. Tanishq has successfully taken on the challenge of
transforming this frontier into a reliable consumer space by bringing
to it all the virtues and benefits that branding offers", Harish Bhat,
CEO, Tanishq.
Tanishq within ten years years of establishment became the
largest and most desirable brand in the jewellery segment in India.
They have constantly introduced new offering to their consumers and
have come up with new innovative ideas. The surveys showed that
awareness of the brand was quite high. The company believes that
young urban women, with independent incomes, are looking at
branded national jewellers. The brand believes that accretion to this
segment is clearly in its favour due to the modern contemporary
image among women.

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 which, costing Rs 10 crore, opened in
Kolkata . The idea of such a store was to harmonize the tradition of
the past with the modernity of the present.
In 1998, it launched the corporate gold gift scheme - 'When you
want to say thank you, say it in gold'. In 1999, Tanishq delivered
gold coins worth Rs. 20 crores to Maruti Udyog Ltd., to be given
away as gifts to Maruti car owners. By 2001, the scheme accounted
for almost 5% of the turnover and over 30 corporate clients like
Coca-Cola, the UB Group, Whirlpool, TVS Group, Ceat and Liberty
shoes. In early 2000, it made miniature gold cars for Hyundai Motors
to be given to select dealers. Tanishq has also endeavored to be part
of every occasion in an Indian woman’s life through festive
promotions, customer contact programmes as well as through
Anuttara, Tanishq’s exclusive consumer reward programme etc.
Tanishq provides Gift vouchers in various denominations for gifting
your friends and family.
Tanishq, to set off competition, launched Jodhaa Akbar
collection and managed to get lot of marketing hype. The collection

is very pricey and suggested retail price is between Rs 25,000 to Rs


15 lacs.
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 apendant) and offered a
range, which far exceeded that offered by any other jeweller. 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.
In 1999-2000 the communication and promotion budget was
increased from Rs. 65million 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.
A customer survey revealed that despite its high-blitz ad campaign,
many didn't know what Tanishq was about, others found it too
expensive and some felt that the product was not for people like them
.So, Kurian and his team then decided to launch the fifth anniversary
celebrations of Tanishq that would offer discounts to customers and
induce them to come to the store. The ploy worked and they had
customers waiting for the store to open. Ad campaigns also started to

list out the products that Tanishq had. Bracelets,rings, chains,


pendants were explicitly mentioned in each ad. A range starting at

Rs.399 was 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.
Aria, for seven stone diamond jewellery, Hoopla, focused on
diamond studded hoops and Collection-G for lower priced gold
jewellery with an interesting twist are just a few lines that have come
out of the Tanishq’s stable in the last three years.
One of Tanishq’s more innovative ideas is to offer special schemes
during various festivals. Tanishq has also initiated a loyalty program
called the Golden Harvest Savings Scheme, which offers buyers the
benefit of getting more jewellery than what they have paid for. The
scheme allows consumers to plan future purchases in advance and
pay for them in easy installments.
Exchange offer - change impure gold for pure 22 kt gold - attracted
more people to the stores. It is estimated that roughly 2.85 lakh
customers bought from - and close to a million people went through -
53 Tanishq stores across 41 cities. Since the European designs in 18-
carat gold did not find any takers in 1997, Tanishq introduced 22-
carat ornaments. After hitting six countries in the last four years,
Tanishq entered the $57-billion US jewellery market with two
exclusive stores, one in Chicago and the other in New Jersey, in
the first quarter of 2007-08.

PLACE

Tanishq jewellery is crafted in one of the world's most modern


factories. The factory complies with all labour and environmental
standards. Located at Hosur, Tamil Nadu, the 135,000 sq. ft. factory
is equipped with the latest and most modern machinery and
equipment.
Tanishq reached the century mark as it unveiled its 100th store
in Patna at Hathwa Market. Having embarked on the retail journey a
decade ago, Tanishq today is the largest jewellery retailer in India.
With a strong presence in 70 cities across India,unmatched
collections and assured purity, Tanishq has quickly become the first
choice of discerning customers.
Tanishq opened 30 retail stores during FY08, taking the tally to
130 stores. Currently, the average store-size for Tanishq is 1,000-
1,500 sq ft. The stores operate on the franchise model.
Tanishq has undertaken several unique retail initiatives keeping
in mind the customer demand for a world class shopping experience.
As such Tanishq retail identity has evolved over the years to offer
large format and concept stores that reflect the brand’s philosophy of
being “Revitaliser of Tradition”.
Design and retail innovation have been the hallmark of Tanishq all
these years. Tanishq has constantly formulated an innovative product
strategy in this journey 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 inretailing by creating exclusive
outlets with hitherto unknown in-store ambience and hospitality
touchstones.

Following more than 40% percent growth in operations last


year, Tanishq will invest extensively during 2008 in marketing and
retail initiatives to further develop the market. In addition, Tanishq
will build new logistics centres and upgrade existing ones, laying a
solid foundation to meet future competition.
Besides catering to Indian consumers, Tanishq has successfully
entered key exportmarkets such as the US, the UK, the Middle East,
Singapore and Australia. This istestimony to the brand's ability to
craft products that meet the requirements ofvaried cultures and
sensibilities.
Tanishq’s retail boutiques are temples for the brand and are used
as a platform forcelebration, be it the launch of a new collection, a
new marketing promotion or afestival. This gives Tanishq outlets a
unique appeal and consumers an opportunityto heighten their
shopping experience. Tanishq gave complete freedom to the retail
outlets to pick up designs, which theythought would sell in their
stores. Almost all the outlets stocked the 'best selling'range of
designs, which did well across the country.
In fact, industry experts recall a period when plain gold gained
space in Tanishq stores at the cost of studded jewellery. "It was
perhaps an offshoot of its expansion into mini-metros and other
towns where the company thought plain gold will be in more
demand. It was not a well-researched move,'' says an industry expert.
It plans to open two pilot stores at Chicago and New Jersey with
a retail format of1,800-2,000 sq ft. Meanwhile, it plans to tap small
cities by opening 15 Gold Plus outlets, its jewellery store brand for
semi-urban markets. Launched two years ago,Gold Plus clocked Rs
200 crore revenues during FY08. Tanishq has entered the US
markets. This is an amazing achievement for Titan Industries,” said
V Govindraj, Vice President, Tanishq. “Retail is a capital-intensive
business. In America, having1,000 stores is not unusual. Even for

niche retailing, 200-300 stores are needed. But in India, although


there are several small scale unorganized jewellery markets, Tanishq
is the first and only jewellery brand to have organized mass jewellery
retail chains across the country. As our company expands, more and
more peoplewill be able to share our mindset. Tanishq’s retail
strength goes beyond its innovative identity and extensive reach.
Tanishq has undertaken several unique retail and marketing
initiatives like creating purchase triggers like Doctors Day
/Professional Day etc that were unexplored avenues in the industry.
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.
Add the world to this. After hitting six countries in the last four
years, Tanishq is entering the $57-billion US jewellery market with
two exclusive stores, one in Chicago and the other in New Jersey, by
the first quarter of 2007-08. S.Ravi Kant, COO (international
business division), Titan, says: “We are not looking at the NRI
market only. We want to understand the American consumer.” He
claims that Tanishq’s market research team is figuring out the market
and a designer who can create new products for it.
Traditional jewellers have been rebranding themselves and are
expanding in smaller towns to widen reach. "The emphasis for
Tanishq will be on special collections, diamond jewellery and bigger
stores of about 4,500 sq ft", Venkataraman said.
Tanishq's team of in-house designers came out with about 3,500
designs based on current trends and the feedback from stores. At
least 10% of these designs were changed every quarter and fresh
ones were added to the stock.

PRICE

We have very large collections of pendants, earrings and


fingerings in this price range Rs 2000-5000. Tanishq range of
products start at an accessible low of Rs.600 and the range - Solo,
Aria, Diva, Hoopla, Lightweights, Bandhan and the most recent,
Colours - comprises wearable everyday jewellery which has been
designed for the urban working woman.
The Tanishq Valentine’s Day collection includes pendants, earrings
and finger rings starting from Rs. 2,000 onwards. Daytime’s
collection of all day diamonds, which starts at an affordable Rs.
1,960. The collection combines traditional motifs in sleek
contemporary lines with slight touches of black rhodium. The 'up to
25 percent' off offer by Tanishq is a unique opportunity. This
attractive offer has been introduced to benefit the customers and
provide them with the best price and product options. Affordably
priced from Rs 2,500/- onwards the Tanishq range of diamond
jewellery is the ideal accessory for the customers. This collection is
crafted using a special process called electro-forming. The jewellery
is targeted at customers who are looking for international designs,
wearability and value for money. The new collection starts from a
price range of Rs.6,000 onwards and available at all Tanishq
boutiques across the country. Tanishq offers gold and gem-set
jewellery in over 6000 traditional,western and fusion designs. The
Tanishq retail chain currently includes 112 exclusive boutiques in 75
cities, making it India's first and largest jewellery retail chain.

BRAND POSITION
Tanishq has been projected as an impeachable mark of trust by
raising the awareness of the people about unethical practices in the
jewellery business and then measuring the gold purity by carat meter.
Tanishq also has been positioned as a branded jewellery of luxury
rather than commodity. It moves jewellery beyond investment to the
fashion and adornment sector.

SEGMENTATION

•Niche Marketing

After its inception in 1995 focus on exports, Tanishq's designs


had been conceptualized for the Western markets and were
introduced in India without any alterations. Tanishq positioned itself
as an international brand for the Indian elite. The brand was targeted
at a niche market(However they later on started targeting the mass
marketing since 1997).

•Psychographic Segmentation

Life Style: Tanishq has found that 40% of the Indian women are
working and they 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 have to 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

Targeting
Tanishq was initally targeted at a niche market.However, the
traditional India woman who prefers 22-carat gold jewellery didnot
appreciated the International design made out of 18-carat gold. It was
then when the company went back to the drawing board and decided
to target the larger segment of the young Indian women, having a
modern, comtemporary outlook towards life while still being rooted
in the traditional Indian values. The target segment was thus,
changed to the mainstream Indian customer and the product was
differentiated from standard fares through the fusion of
comtemporary and traditional Indian motis.
This approach encouraged Tanishq to bring out new product
lines such as Aamra, Day Times, and Light weight color.
Accordingly, the collection was introduced with modern innovative
designs, creating a first-ever customized market to target such
segment.

SWOT ANALYSIS
•Strengths
➢Purity of the jewellery through carat meter is still the sign
of total purity.
➢Distribution network and retailing store are in place for the
company with130 stores countrywide.
➢Mind boggling/award winning designs have come
for the company.
➢Diversity in jewellery gold/diamond/platinum enhances
the product range of the company.
➢We also have competitive prices for the entire product
ranges as compared to the competitors.

•Weaknesses

➢ Tanishq comprises a small share of the overall Rs 70,000


crore Indian jewellery market and hence it needs to
increase its market share in this huge industry.
➢ Escalated gold costs has caused lower margins is to push
sales as much as possible.

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

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

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

So most of the goldsmiths are forced to close the shops so its a


appropriate time to target the tyre-3 cities to increase the market
share and to increase the profits to a large extent.
If all measures are taken properly then it could easily increase
its market share.

Refrences

• Marketing Management : Kotler-Keller-Koshy-Jha


• Wikipedia: http://en.wikipedia.org/wiki/Titan_Industries
• Tanishq's Official Website: http://tanishq.com
• Case Studies And Management Resources: http://www.icmrindia.org/

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