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7/22/2019 Final Tanishq marketing strategy
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INTRODUCTION ABOUT TANISHQIn a market that has traditionally been dominated by
family jewelers, it took the entry of Tanishq, Indias
largest, most desirable and fastest growing jeweler brandfrom 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 ofcustomers and created a unique position for itself in the
marketplace.
The association with Bollywood blockbusters likes
Paheliand Jodhaa Akbar and the 2003 Miss India beautypageant have enhanced the brands appeal, lending it an
aura of elegance and grandeur.Tanishq stands out as a brand that abides by values of
Trust worthiness, credibility and respect. The power ofBrand was further enhanced with the introduction of
karatmetersa tool that helped customers gauge the
quality of their goldin every Tanishq outlet.
By introducing revolutionary, innovative designs in amarket 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 andethics. 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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TAN + ISHQ = BODY + LOVEThe essence of this name is derived from the Urdulanguage, a Persian Arabic form of dialect.
The reason d'tre behind electing this unique name forthis company is the fact that women and men alike had
realized the magnificence of the human anatomy sincetime immemorial.
Beautifying the human body was a primary part of thedaily routine, which took several hours of intense care.
Though today things have changed drastically, and time
very precious to one and all, nonetheless beauty remainsa primary concern in the day-to-day activities of everyman and woman.
Consequently the name Tanishq is synonymous to 'love
for your body', where Tan signifies the body and ishq,love.
LAUNCHING OF TANISHQTitan launched Tanishq in 1995, India's largest, mostdesirable and fastest growing jewelry brand in India.
Diligent care and quality processes ensure that theTanishq finish is unmatched by any other jeweler in thecountry.
Tanishq challenged the age-old jewelers word withTATA's guaranteed purity. It exploded the market with
facts about rampant impurity across India. It introduced
technology-backed challenge in a category completelygoverned by individual trust. Tanishq introducedinnovations like Karat meter, the only non destructivemeans to check the purity of gold.
In its early days, Tanishq was positioned as aninternational jewellery brand for the Indian elite. This
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meant it catered to a niche market. Moreover, its Italian
designs in 18-carat, mostly studded jewellery did not godown well with the traditional Indian woman, used as she
was to 22-carat jewellery. Abandoning its westernised
look, Tanishqs designers chose to work on a fusion ofcontemporary and traditional Indian motifs.
PRODUCTThe Tanishq portfolio comprises a wide range ofjewellery, including 18-carat studded products, 22-carat
plain-gold products, silverware and coins. Tanishq is thefirst brand in the jewellery category to introduce
collections designed exclusively for the modern Indian
woman, especially working women.
Among the Tanishq collections that have caught the
imagination of consumers is Aria, which draws
inspiration from the traditional seven-stone jewellery that
Indian women have worn for over 100 years. Aria addeda contemporary element to the traditional setting of the
seven-stone cluster by using diamonds of different shapesand sizes. The use of rhodium plating alongside the
yellow gold gives this product a unique look, modern aswell as traditional.
Other winners from the Tanishq stable include Diva,
which has pearls encircled by diamonds, Hoopla, which
boasts diamond hoops, and Solo, a collection that uses
solitaire diamonds. Collection G, with a selection of over90 designs, addressed the everyday jewellery needs of
working women. Positioned as 9-to-5 jewellery, thecollection is stylish and modern and is designed to suit all
forms of attire, western and Indian, casual and formal.
The introduction of lightweight goldjewellery thatlooked heavy but was light in weight and on the purse
marked another milestone in Tanishqs brand history.
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RECENT DEVELOPMENTSTanishq has veered away from the high-end French look
that it started out with to jewellery that is design-
differentiated and yet wearable. This shift in its designethos has helped make the brands products moreaccessible to Indian women.
The Tanishq of today has little to do with conspicuous
consumption and much to do with meeting theaspirations and emotional needs of consumers.
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 afestival. This gives Tanishq outlets a unique appeal andconsumers an opportunity to heighten their shopping
experience. The launch of new collections such as
Dancing Diamonds, Ethnic Gold, Paisley, Dewdrops and
Avataar has enabled Tanishq to establish itself as afrontrunner in the fashion jewellery scene.
One of Tanishqs more innovative ideas is to offer
special schemes during various festivals. Given Indiasdiversity, this is never a one-size-fits-all initiative; rather,
it means having different promotions at different times ofthe year in different parts of the country. So, whether it is
Varalakshmi Puja in Andhra Pradesh, Durga Puja in
Bengal, Onam in Kerala or Karva Chauth in the North,
the brand celebrates it with its consumers in the rightcultural spirit.
PROMOTIONTanishq has deliberately moved away from mass-mediaadvertising and focussed on store promotions to make the
brand more accessible to consumers. This has been doneto correct the consumer perception that the brand is
highly priced and only meant for the rich and the famous.
This approach has also ensured that Tanishqs
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promotional approach is product-led. Promotions are
organised from time to time to activate the market.These events reinforce the image of Tanishq as a trusted
leader. The Impure to Pure Exchange offer is an
example of one such activation-based promotionalcampaign. Under this scheme, jewellery buyers could
exchange their impure jewellery of any caratage forTanishqs 22-carat jewellery. During the promotion it
offered to value consumers old gold jewellery of 17-carat and above on Tanishqs Karatmeters.
Between August 1st and August 15th 2001, Tanishqembarked on a promotion where discounts of up to 20%
were offered on all its jewellery. This was to say thank
you to a million consumers on the fifth anniversary of thebrands launch. Over 100,000 people shopped at Tanishqboutiques during this period.
Another consumer loyalty programme that has beeninitiated by Tanishq is called the Golden Harvest Savings
Scheme, which offers buyers the benefit of getting morejewellery than what they have paid for. The scheme
allows consumers to plan future purchases in advance
and pay for them in easy instalments. Consumers can
choose from two plans: a 12-month annual plan and an18-month extended plan (the monthly installment can be
for any amount upwards of Rs. 500). Tanishq contributes60% of the last monthly instalment in the annual plan and
130% of the last monthly instalment in the extended plan,
both of which are part of the final price that the consumerpays for the product.
BRAND VALUESIn sync with the Tata brand values, Tanishq is
synonymous with trust and purity in a category that is
fraught with questionable practices. Being a member ofthe Tata family has meant that it can leverage the groups
well-earned reputation for ethics and values in a businesswhere such attributes are critical to win the trust of
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consumers. Tanishq consumers can afford to take issues
such as purity for granted, and they know they candepend upon the brand to deliver quality products all the
time. The brands winning virtues in design and overall
quality have shaped a class of discerning buyers whoseek the best in jewellery products.
Leadership and innovation are two of the other brand
features that Tanishq is consistently identified with.These values have helped the brand bond with itsconsumers like no other Indian jewellery retailer.
TANISHQ IN INDIATANISHQ is India's largest, most desirable and fastestgrowing jewelry brand in India. Started in 1995, Tanishq
is the jewelry bu si ne ss gr ou p of Ti ta n Indu st ri esLtd - pr omot ed by t he TATA group, India's
most r espected and widely diversi fied businessconglomerate.
This year marks a decade of successful innings for
Tanishq. With a retail sales of 1200 crore lastyear and gunning for2000 cror e this year ,
Tani shq has arri ved in the Indi an jewelrymarket. It is a story of a successful Indian enterprise,
which has delivered value to its customers and
shareholders in a complex category, marked by it s
complete ly locali zed front end as well as backend .Tani shq has se t up p roduc t ion and
so ur ci ng ba se s w it h through research of thejewelry crafts of India. Jewelry at T a n i s h q i s
c r a f t e d i n o n e o f t h e w o r l d ' s m o s tm o d e r n f a c t o r i e s . T h e f a c t o r y
c o m p l i e s w i t h a l l t h e l a b o r a n denvironmental standards. Located at Hosur, Tamil Nadu,
the 1,35,000 sq. ft . factory is equipped with the latestand most modern machinery and equipment. Every
product at Tanishq i s p a i n s t a k i n g l y c r a f t e d t o
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p e r f e c t i o n . D i l i g e n t c a r e a n d q u a l i t y
p r o c e s s e s e n s u r e t h a t t h e T a n i s h qf i n i s h i s unmatched by any other jeweler in the
country.
Tanishq challenged the age-old jewelers word with
TATA's guaranteed purity. It exploded the marketwith facts about ram pa nt imp uri ty ac ros s Ind ia .
I t in t roduced technology-backed chal lenge ina category complete ly governed by
i n d i v i d u a l t r u s t . T a n i s h q i n t r o d u c e d
i n n o v a t i o n s l i k e K ar at me te r, t he on ly n onde st ru ct iv e me an s to ch ec k t he purity of gold.
Tanishq a lso in t roduced profess ionalre ta i l ing in the disorganized 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 ci ties, with an
exquisite range of gold jewelry studded with
diamonds or coloured gems and a wide r a n g e o f
e q u a l l y s p e c t a c u l a r j e w e l r y i n 2 2 K t p u r e
g o l d . Exquisite platinum jewelry is also part of the
product range.
Jewellery is one of the last great commodity frontiers i n
India; i t has remained so because this market i s
v e r y f r a g m e n t e d , v e r y m u c h u n o r g a n i z e d .
T a n i s h q h a s successfully taken on the challenge oftransforming t h i s f r o n t i e r i n t o a r e l i a b l e
c o n s u m e r s p a c e b y b r i n g i n g t o i t a l l t h e
v i r t u e s a n d b e n e f i t s t h a t branding offers
- Harish Bhatt, CEO, Tanishq
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GiliGili 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 DiamondsNirvana Diamonds from Fine Jewellery (I) Ltd. was
launched in 1987 in India. Nirvana diamonds are
targeting at fashion c o n s c i o u s , mo d e r n a n d
i n d e p e n d e n t t h i n k i n g w o m e n .I n t e r n a t i o n a l l y a c c l a i m e d
N i r v a n a d i a m o n d s a r e manufacturedby using s tate -of- the-ar t technology. As a
proof of their quality Nirvana was among one of the
brands to offer lifetime warranty to its consumers.
D'damas DiamondsD'damas Diamonds are part of Gitanjali Digi co
Group and one of the earlies t diamond housesestablished in India in1966. On the present day
D'damas Diamonds offer highly modernized
diamond cutting and polishing facilities at five
locations in India. D'damas Diamonds claim topromote arange of emotions through their collections
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Adora DiamondsA d o r a D i a m o n d s w e r e l a u n c h e d i n I n d i a i n
Ju l y 20 0 3 b y Mumbai based Concept Jewelry
(India) Ltd. On the present da y th e st i l le x p a n d i n g r e t a i l n e t w o r k c e n t e r s o f A d o r a
expands to 117 outlets in 47 cities of India.Adora means glory in Spanish and cl aims t hat
it s di amo nd co ll ec ti on is themed on love. Adoradiamonds are for adornment of every mo me n t ,
o c c a s i o n , a n d p h a s e o f l i f e t h r o u g h i t s u p
and downs. The Swaranjali signature collection
of living legend Lata Mang eshk ar is a un iq uefeature of Adora diamonds . Each piece of
Swaranjal i col lect ion i s conceptual ized andapproved by Lata Mangeshkar and bears her
laser printed signature
Kiah DiamondsWorld's largest volume manufacturer of
diamonds-Sheetal manufacturing Company(SMC) launched its exquisite Kiah diamond
col lect ion in October , 2004. Kiah diamondsare claims to be for celebrating womanhood.
The brand name 'Kiah' means beautiful place. Onthe latest Kiah diamonds have won the Best
Showroom in the DTC Diamond season for 2005
2006.
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TANISHQMARKET RESEARCH
MARKET research On TANISHQ
Tanishq emerges as the best known brand with the
highest awareness and recall. The differencebetween the leaders and the followers is always
greater when the former have a he ad st a rt . An dwhen the pace and ef for ts of the leaders
intensify, the possibility that they will continue to beat the top is a fore gone conc lusi on.
Th e So li ta ir e - TN S Su rv ey 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 65percent of the target audience had no hesitation
in coming up with the name, proving that the
extensive branding exercise u n d e r t a k e n b y
T a n i s h q ( a d i v i s i o n o f t h e T a t a g r o u pcompany, Titan Industries) has paid off well. Two
decades in the business, over 70 retail outletsacross the country and p i o n e e r i n g e f f o r t s
t o m a k e j e w e l l e r y b u y i n g i n t o a n
u n f o r g e t t a b l e s h o p p i n g e x p e r i e n c e - a l l
t h e s e f a c t o r s combined to make the brand into ahousehold name.
India's Top Ten Best Known Jewellery Brands
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THE SURVEYT h e I n d i a n j e w e l l e r y i n d u s t r y i s s e e i n gu n p r e c e d e n t e d activity on the market front with
new entrants coming in all t h e t i m e .C o n s u m e r b e h a v i o r a l s o i s
u n d e r g o i n g a transformation. The Solitaire-
TNS Survey to find out India's be s t k n o w n
b r a n d s ( a n d o t h e r p e r t i n e n t d e t a i l s ) w a sinitiated with a view to assist and equips the
indus try wi th information that goes beyond the
ordinary.
" M e n b u y p r o d u c t s w h i l e w o m e n c h o o s e
b r a n d s , " s a ys model-turned-designer and CEO ofa billion dollar company, Kathy Ireland, a fact which
jewellery brand managers in India wi l l n o t r e f u t e .H e n c e t h e S o l i t a i r e - T N S S u r v e y a c r o s s
Mumbai, New Delhi and Bangalore was targetedsolely at women.
While the sample s ize was smal l , 600+, thefact that the target group was covered in andarou nd shop ping mall s, banks, corporate areas
and commercial zones, made the samp le mor erelevant to the object ives . The survey was
conducted through personal interviews over a periodof 15days.
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TURNAROUND STORYWhen we started out we didn't think that wecould achieve this, but now being jewellers tothe na tion doesn't seem so distant
.
- Tanishq COO, Vasant Nangia, in March 2000.
The Unsuccessful Launch
In 1995, Ti tan Indus t r ies , India ' s leadingmanufacturer of watches, launched the Tanishq
range of gold watches and jewellery. Till then, theIndian jewellery market was to a large extent
unorganized, with a few recognized names suchas Tribhovandas Bhimji Jhaveri and Mehrason's.
Tani shq, an en t i r e l y n ew con cep t i n t heI nd i a n ma r ke t , t hus had t o s t ruggl e ha rd to
be accepted by the cus tomers . Indust rywatchers were extremely skeptical of Tanishq
and doubts were being cast over its prospects. Tanishqbegan by offering jewellery in the 18-carat gold
range, with designs borrowed heavily fromcontemporary European brands. The
company justified its decision saying that itwanted to be 'd iffe rent ' from the traditional Indian
offerings.
Tanishq per formed very badly in the nextthree years, posting a huge loss in 1997-98,
proving its detractors right. Jacob Kurian,
Tanishq ' s chief operat ing of f icer admit ted ,"Tanishq, as a concept, was far too ahead of its times."
Even if one agreed with Kurian, it could not be denied
that Tanishq did commit mistakes.
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Analysts decreed that the company's strategies were
wary. A t t h i s po i n t , T an i s hq t ook va r i o usst ep s to co rr ec t th e mistakes i t had committed
and very soon, posted its first ever operating
profit in 1999. In 1999-00, sales doubled to Rs1532 million against Rs 743.8 million recorded in 1998-
99a n d r e a c h e d R s 2 0 0 0 m i l l i o n i n 2 0 0 0 - 0 1 .Ta ni sh q fa re d equally well on the export front
also with heavy exports to UK, US, Australia andWest Asia.
Tanishq was the larges t overseas chain in
US wit h 1 ,20 0outlets. In the year 2000, exports
contributed 10% to the company's turnover. The
story of Tanishq, once written off as a losing proposition,
making a remarkable turnaround was anexample of acompany single-mindedly working to make its own
mark in the t radi t ion bound Indian jewel lery
ma rk et .Behind this success was, of course, a well-
planned and well-executed marketing plan.
Background NoteTitan Watches Limi ted was promoted jo int ly
by Ques ta r Investments Limited (a Tata group
company) and Tamil Nadu Indust rial DevelopmentCorporation Limited (TIDCO). The company,
incorporated in July 1984 in Chennai, was started intechnical collaboration with France Ebauches (a
French company), one of the world's largest
manufacturers of watch mo veme nts . In i t ial lyinvo lved in th e wat ches and c lock s business,Titan later ventured into the jewellery
businesses. The company was India's leadingmanufacturer of watches, marke ted under the Titan
and Sonata brand names with a25% share of the
total domestic market.
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Titan established its first manufacturing facilityin Hosur , Tamil Nadu and i ts f i rs t sate l l i te
wa tc h as se mbly un it at Dehradun, Uttar Pradesh
was started in 1990. In 1992, Titan set up a jointventure, Timex Watches Limited, with Timex
Corporation of USA to market Timex watches inIndia.1 Andin 1995, Titan changed its name from 'Titan
Watches Ltd.' to' Titan Industries Ltd.' in order tochange its image from that of a wat ch
manufacturer to that of a fashion accessor ies
manufacturer. In the same year, it also started itsjewellery division under the Tanishq brand. At th is
point of time, the jewellery business was highly
locali zed and the concep t o f branded jewellery didnot exist. In the late 1990s, India had around 0.2million 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 th e s a me
f a m i l y j e w e l l e r t h e y h a d t r u s t e d i m p l i c i t l y
f o rgenerations. Moreover, these jewellers made thejewellery to order and often bought back their
products at the prevailing market rates.
Thus , f rom the very beginning, Tanishq
f ound it har d to ove r c ome t he I nd i a n
co ns um er ' s pr efe re nc e for bu yin g 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.
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Vasant Nangia, erstwhile Chief Operating
Officer, Tanishq said, " When we la unch ed t he
Tanishq r ange, ou r designs were not
appreciated initially as they were believed to be
ext remely Western . Also, we of fered only 18carat gold ."Over a per iod of t ime, Tanishq ' s
research revealed many other loopholes in its
strategies.
Setting Things RightTanishq found out that it had gone wrong mainly in twoareas- the product proposition and retailing. Initially
with a focus on th e ex po r t ma rk et , i t sde si gn s w er e p re do mi na n tl y Western, and the
same line of jewellery was sold in India as well.H o w e v e r , w h e n i t s h i f t e d i t s f o c u s t o t h e
do me st i c market, i t was unable to sell these
designs. Therefore the first step was to change
the brand positioning from that of an elitist andWesternized offering to a more mainstream,
Indian one. The 18-carat jewellery range wasexpanded to include 22 and 24 carat
ornaments as well . Tanishq also made
attempts to redefine traditional styles in its
designs. Tanishq real ized that , gi ven thedive rs e natu re of In dia n ethnicity, it would have to
cater to tastes of all regions.
Therefore, the emphasis shifted from the erstwhile
modern de s ig ns t o mo re e th n ic one s an dt ra di ti on al or n am e n t s (based on designs from
various states) were launched. The comp any al so
began seasonal and local ized promotions based on Indian festivals, such as during Durga Puja
in West Bengal, Onam in Kerala, Diwali in north
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India, etc. Johnson Verghese, divisional head,
sales and marketing, s aid, "We also decided to go in
for transmigration of designs. So we not only got in
more Indian mot i fs but a lso s tar ted s tocking
typical designs from Tamil Nadu in Mumbai andthose from Beng al in Delhi . These desi gns,
th oug h Ind ian , pro vi de the variety to what the
people in a particular area were used to seeing."
Tanishq's team of in-house designers came out with
about 3,500 designs based on current t rends
and the feedback f rom s tores . At leas t 10% of
these designs were changed every quarter and
fresh ones were added to the stock.
Tanishq gave complete freedom to the retail outlets
to pickup d esigns, which they thought woul d
sel l in thei r s tores . Almost a l l the out le ts
stoc ked the 'bes t se llin g' rang e o f designs,
which did well across the country. T a n i s h q wa s
n o w p i t t e d d i r e c t l y a g a i n s t t h e
t ra di ti on al jewellers who were offering similarornaments. In order to add some value
proposition to rise above the
competition, Tanishq decided to address the
issue of gold pur ity , which was most important to
the customers.
Traditionally, conventional jewellers used the
touchstone to t e s t t h e p u r i t y o f g o l d .
A p a r t f r o m t h e f a c t t h a t t h e customersdid 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 al ternative. In19 99 , Ta ni sh q
i n t r o d u c e d t h e r e v o l u t i o n a r y c o n c e p t
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o f caratmeters in its retail boutiques. The caratmeter
used X-rays to give an accurate reading of the
constitution of gold in the ornament within three
minutes. Imported from Germany a t a c o s t o f
R s 1 m i l l i o n e a c h , c a r a t m e t e r st h o u g h expensive, proved to be the biggest USP
for Tanishq in the coming years.
Fact, its sales increased by 20-30%. The conceptwas later on h eralded as a bold s tep to wards
professional iz ing the I n d i a n j e w e l l e r yb u s i n e s s . I n a n a t t e m p t t o e l b o w o u t
competition, Tanishq conducted tests on 10,000
ornaments selected at random. In some cases thecaratage was found to be as low as 10% and almost65% of the gold tested was below 22 cara ts. As the
caratage offered was on the lower s ide int radi t ional jewels , the jewel lers kept the
making charges very low to entice customers. Thishad become the norm all over the count ry.
Tanishq had to struggle hard to break thisconvention.
As the concept of caratmeter became more widelyknown, customers began to realize that the rates theywere paying for Tanishq jewellery were indeed justified.
A Tanishq official commented, "They have begun tounderstand the total value proposition that Tanishq offers."
A n a l l - I n d i a c u s t o m e r s a t i s f a c t i o n s u r v e yc o n d u c t e d b y T a n i s h q i n 2 0 0 1 r e v e a l e d
that over 50% of al l Tanishq customers
intended to make it their jeweller, replacing many long-s tanding re la t ionships wi th the t radi t ional
jeweller . When Tanishq was launched, i t so ldmost of i t s products through mul t i brand
s tores . This d id not help the Tanishq b r a n d
t o m a k e i t s m a r k . H a v i n g r e a l i z e d t h i s ,
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T a n i s h q decided to set up its own chain of retail
showrooms in 1998.
T h i s p r o v e d t o b e a v e r y w i s e m o v e a s
s a le s pi c ke d up a l m o s t i m m e d i a t e l y . B yJ u l y 2 0 0 1 , i t h a d 4 7 ' T a n i s h q b ou t iq u es '
i n 3 7 c i t i e s 1 2 w e r e i n t h e m e t r o s -D e l h i , Mumbai, Kolkata, Chennai and Bangalore, the
rest in smaller cities with a population of at least 0.5million such as Trichy, Nagpur, Amritsar and Patna.
The focus on smal ler c i t ies paid of f wel l wi th
t he annua l g r owt h be i n g a s h i gh a s 150%
a s co mp ar ed to th e 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 c o u n t r y,
T a n i s h q d e c i d e d t o h a v e a s t a n d a r d g o l dp r i c e across all its showrooms from March 2000.
T h e s t a n d a r d p r i c e w a s m a d e b i n d i n g
o n a l l T a n i s h q showrooms . Tani shq based
its gold prices on international exchange prices,
result ing in pri ces o ften being lower than the local
market prices. Nangia said, "We already have a kind of
s t a n d a r d p r i c i n g i n p l a c e , b u t t h i s w o u l d
r e p r e s e n t a formalization of that system to thepublic." 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
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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 foot fa lls 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 out le ts gave a100% return guarantee
on i ts bran d of jewe llery and also exchanged
other jewellery after deductions depending on
purity.
A customer satisfaction measurement program wasstarted w i t h t h e h e l p o f C u s t o m e r
S a t i s f a c t i o n M e a s u r e m e n t Management
(CSMM), an associate of IMRB. CSMM tracked
customer satisfaction parameters for Tanishq on a
quarterly basis. This gave the company the
benefit of bench marking agains t local and
internat ional p layers and a lso a ided in
improving repeat purchases. As a result, Tanishq was
able to directly link the remuneration of franchisees
with customer sa ti sfa cti on . T he co mpa ny 's
co rpo rat e go ld gi ft sc he me('When you want to
say thank you, say it in gold'), launched in
December 1998 proved to be a major success.
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Tanishq de l i v e r ed 50 ,00 0 c us t o mi zed go l d
c o i n s t o 0 . 2 5 mi l l i o n Maruti car owners
nationwide as part of the 15th anniversary
c e l e b r a t i o n s o f M a r u t i U d y o g . B y
2 0 0 1 , t h e s c h e m e a c c ou n t ed f o r a l m o s t5 % o f t h e t u r n o v e r a n d o v e r 3 0 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 apportion
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 carr i ed out . The Rs 100 mi l l ion
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 g i ve th e br an d a ro un d- t he -y ea r p r e s e n c e a n d e n h a n c e a wa r e n e s s . T h e
c o m m u n i c at i o n f o c u s e d o n d e s i g n a n d
quality instead of the price.
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HOW DID TANISHQ TURN AROUND?Jacob Kurian, chief operating officer (jewellery),Tanishq isn't tired of saying that the story of his company
mirrors a Bollywood movie.
There's drama, celebration, then betrayal in the family,followed by action and, of course, a happy
ending.Tanishq, the jewellery business group of Titan
Industries is the blockbuster action thriller from the Tatagroup.
After five years of consistent losses, the company, onThursday, announced the completion of a dramatic three-
year turnaround culminating in annual sales growth of 39per cent and profit growth of 318 per cent.During 2002-03, Tanishq recorded a sales turnover of Rs 389 crore (Rs
3.89 billion) -- at consumer prices. By 2007, it hopes totake that to Rs 800 crore (Rs 8 billion)
Today, Tanishq has already become one of the top five
retailers in the country. It contributes 40 per cent to
Titan's business and is expected to account for 55 per
cent by 2007.By then, Tanishq's profitability will also begood enough to offer 28 per cent return on deployment of25 per cent of the capital.
Year Sales (Rs crore)
1996-97 32
1997-98 38
1998-99 731999-2000 141
2000-01 188
2001-02 299
2002-03 389
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It's a long way for a company that almost folded up
before it could turn in its first ever profit. Since, itslaunch, Tanishq has not only been grappling thetough market conditions but also internal strife andDoubting 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 haveproved them wrong," says Kurian proudly.
The estimated Rs 40,000 crore (Rs 400 billion) goldjewellery market in India is a rough one. There areover 300,000 jewellers, each powerful in hisneighborhood.
Till the last two years, national players were almostnon-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 jewellerychains worldwide chose to do their designs in.
Not surprisingly, the skeptics were asking what wasTitan 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 onexports.
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However, by the time it acquired the skills and set up
the plant, the world had changed. India no longer hada foreign currency problem, imports were easy to
come by, demand had come down in the global
market, supply had grown in Asia and margins hadbecome very thin.
Tanishq then decided to focus on the Indian market.
In August 1992 a pilot plant was set up andproduction started in two years later. In 1996,
Tanshiq launched its first store. It was a hitherto
untried concept. The jewellery business in India washighly fragmented and ruled over by local players.
There was no national jeweler that people could buy
from, despite that India is the largest consumer ofgold in the world.
Clearly, the local satraps had a very tight stranglehold
on their markets and it was difficult for a pan-Indianplayer to break into. Being ethical too was a problem.
Titan estimates that up customers and theGovernment 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 valuethrough a fair and transparent business model.
But that wouldn't help.
Till 2000, Tanishq could not find its feet in themarket 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 thecompany, Xerxes Desai had a choice between
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Bhaskar Bhat and Vasant Nangia when it came todeciding who would succeed him.
Bhat won and was anointed as the next managingdirector by Desai himself and Nangia became thechief operating officer.
Nangia was the hands-on man at Tanishq. A twenty-year veteran of the group, he was the one who hadcharted 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 ofaccessories.
But a day after Bhat was announced at the successorto Desai, Nangia quit. He took along with him sixsenior executives of Titan. It was a blow that manythought would sink the company.
"The entire sales and marketing team resigned on thatday. The company was rocked by what happened.
Many thought this would be finally the way Titanclosed 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 Tatacompany to go. And like Kurian says it was too soonfor the movie to end.
So, a new and admittedly inexperienced team was puttogether. The team had an onerous task on its
shoulders. It had to not only stem the increasinglosses 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. Astream of adverse media reports had instilled the fear
that its shareholders would pull out anytime. Andworse, it had very little time on its hands to show aturnaround.
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But as Kurian saw it, Tanishq's woes were rather
simple: There were just not enough customers in itsstores."For a retailing chain, that's the worst thing that
can happen: having no traffic in the stores," saysKurian.
A customer survey revealed multiple problems.
Despite its high-blitz ad campaign, many didn't know
what Tanishq was about, others found it tooexpensive and some felt that the product was not forpeople like them.
Either way, getting customers back into the storebecame a priority.
PROFITS GENERATED
Ku
r
i
an
Kurian and his team then decided to launch the fifthanniversary celebrations of Tanishq that would offer
discounts to customers and induce them to come tothe store.
Year Profits generated (Rs crore)
1996-97 - 10.60
1997-98 - 21.96
1998-99 - 10.40
2000-01 2.07
2001-02 1.87
2002-03 7.82
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The ploy worked. "We had customers waiting for the
store to open. Sometimes we had to call the securityguards because of the crowds. We just couldn'tbelieve it," smiles Kurian.
There were other minor tweaks made too. Adcampaigns now started to list out the products thatTanishq had. So bracelets, rings, chains, pendants
were explicitly mentioned in each ad. A range
starting at Rs 399 was launched.The aim was to bringdown 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 entireexistence 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 towrite off some of the financial baggage it had beencarrying. 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 firstshowroom in Chennai in 1996. Today it has over 60showrooms in 47 cities. Only six of these are ownedby 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 toRs 27 crore (Rs 270 million).
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Contribution to Titan's growth
Year Tanshiq contribution to Titan (in percent)
1996-97 8
1997-98 14
1999-2000 24
2002-03 43
Post September 11 attack on the World Trade Centerthe volatility in the gold prices led to a steep decline
in the demand for gold. In 2002, the gold demanddeclined by 19 per cent, from 843 tons to 680 tons.
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 salesand exports. Corporate and institutional sales had
become an unexpected money-spinner for thejewellers.
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 customeracquisition. Institutional sales help us beat targets,"says Kurian.
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CONCLUSION WITH THE
QUESTION OF GLOBALISATION
An Indian Brand, which can make big in the globalmarket, 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 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.Now the question arises why Tanishq will make a greatGlobal Brand.
CONSISTENCY IN DELIVERINGON THEIR PROMISE:Tanishq promises superior quality jewellery with purity
in gold. They claim and deliver the exact carats and
weight that they promise. Impurity in gold and notdelivering what was promised is one of the mainproblems the consumers face when going for gold
purchase. Tanishq eliminated this and has built its brandin trust. Tanishq now stands for quality and purity. They
even have gold meters where one can check the purity ofgold.
It is first and only jeweller who guarantees the purity ofits gold jewellery and certifies the quality of its diamonds
and colored gems in writing. Thus it has established itselfas a highly ethical player in a market that was rated as
having the highest incidence of under karatage (Bureauof Indian Standards).
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SUPERIOR PRODUCTS ANDPROCESSESWidely acknowledged as a design leader, Tanishq is
known for its ability to develop specialized designcollections. Tanishq is the only jeweller that houses afull-fledged design studio with a team of several
international award winning Indian designers. Tanishqwas recently adjudged the Most Admired Jewellery brand
(for the third consecutive time) in India at the ImagesFashion awards 2004. It has also been judged as the
Images Retailer of Year in the fashion category.
Tanishq jewellery is crafted in one of the world's mostmodern factories. The factory complies with all labor and
environmental standards. Located at Hosur, Tamil Nadu,the 1, 35,000 sq. ft. factory is equipped with the latest
and most modern machinery and equipment. Every
product at Tanishq is painstakingly crafted to perfection.
Diligent care and quality processes ensure that theTanishq finish is unmatched by any other jeweller in thecountry.
Distinctive positioning and customer experience. Yet
another aspect of Tanishq that sets it apart is a whole newjewellery buying experience offered by its exclusive
retail showrooms. Tanishq has not only developed anational retail chain with uniform and transparent
practices and policies but also maintained consistency ofretailing standards across all these showrooms on anongoing basis.
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It has a distinctive positioning in India as it is known for
its high quality and jewellery with internationalstandards. Also, since they have many stores across the
country they give guarantee on their jewellery and also
offer to repair it free of cost anywhere across the country.
AN ABILITY TOP STAY RELEVANTTanishq was established in 1995 and within ten years it
has become the largest and most desirable brand in thejewellery segment in India. They have constantly
introduced new offering to their consumers and havecome up with new innovative ideas. They have excellent
after sales service and they have been committed inproviding good and honest service.
A COMPELLING IDEA:The idea of having branded jewellery was a totallyunique idea. Coupled with a promise of purity and a
unique experience was very compelling. It persuaded alot of people especially the people in the metros and semi
metros to leave their traditional jewelers and go forTanishq.
There was always lack of trust among the consumers for
their jewelers. Tanishq removed that with a promise ofpurity. Hence what it did in India it can replicate across
the globe. Offer a totally new perspective to Jewellerybuying especially when it comes to exquisite oriental
jewellery. Oriental Jewellery across the world is usuallyfound in flea markets or place like China Town or Indian
Markets. Going into the main markets in the Westernworld will give Tanishq the edge.
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A RESOLUTE CORE PURPOSE ANDSUPPORTING VALUES:Tanishq maintains its quality standards in all its productswherever they are sold. This shows that they have a
resolute core purpose. This is what they will have tomaintain even when they global. They have the right
range of products for the different markets across theglobe. Only they have to remember their differentiating
factor. The differentiating factor for Tanishq will be the
experience and quality they will be giving the consumerwhen s/he comes to the store.
A CENTRAL ORGANISATIONALPRINCIPLE:Tanishq has to translate what its brand signifies to the
whole of their organizations. They have done thatexceptionally well in the Indian context. A visit to anyTanishq outlet shows that. The people behind the counter
are polite and courteous. They know that they are there todeliver the promised exceptional services. The people at
Tanishq know what is required of them and hence thiswill prove beneficial when Tanishq goes global to
maintain its global standards.
Tanishq, as and when it decides to go global will make agreat global brand. As we can see they have all the
characteristics, which all the global brands have, it can besaid that Tanishq has all the potential to become aleading global brand.
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BIBLOGRAPHYwww.rediff/business.comwww.tanishq.co.inwww.wikipedia/tanishq.comwww.google.com
OTHER SOURCES:-NewspaperBusiness magazines.
http://www.rediff/business.comhttp://www.rediff/business.comhttp://www.tanishq.co.in/http://www.wikipedia/tanishq.comhttp://www.wikipedia/tanishq.comhttp://www.google.com/http://www.google.com/http://www.google.com/http://www.wikipedia/tanishq.comhttp://www.tanishq.co.in/http://www.rediff/business.com7/22/2019 Final Tanishq marketing strategy
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INDEX / CONTENTS1.Introduction about Tanishq2.Launching of Tanishq3.Product4.Recent development5.Promotion6.Price value7.Tanishq in India8.Tanishqs competitors in India9.Tanishqs market research andsurvey10. Turnaround story11. How did tanishq turnaround12. Conclusion with Globalization